GST Circulars

CGST Circulars
IGST Circulars
UTGST Circulars
Cess Circulars
CGST Circulars

Circular No.


74/2018 dated

Circular clarifying collection of tax at source by Tea Board of India.

Tea Board of India is the operator of the electronic auction system for trading of tea across the country. It, therefore, falls under definition of e-commerce operator.
Clarified that TCS u/s 52 shall be collected by Tea Board respectively from the –

(i) sellers (i.e. tea producers) on the net value of supply of goods i.e. tea; and
(ii) auctioneers on the net value of supply of services (i.e. brokerage).

73/2018 dated

Scope of principal & agent relationship under Schedule I in the context of del-credre agent (DCA).

The factor that differentiates a DCA from other agents is that the DCA guarantees the payment to the principal. In order to guarantee timely payment to the supplier, the DCA can resort to extending transaction-based loans to the buyer or paying the supplier himself and recovering the amount from the buyer with some interest at a later date (which shall also fall in the ambit of Loan).
Whether or not DCA falls in ambit of agent under Schedule I of CGST Act is to be determined as per circular No. 57/31/2018-GST.
If DCA does not falls in the ambit of agent under Schedule I, loan extended by DCA to buyer is independent supply which is exempt from GST by way of NN 12/2017-Central Tax (Rate) dated 28th June, 2017 (S. No. 27).
If DCA falls in the ambit of agent under Schedule I, it cannot be termed as independent supply. The value of the interest charged for such credit would be included in the value of supply of goods by DCA to the buyer as per section 15(2)(d) of the CGST Act.

72/2018 dated

Clarification on the procedure for return of time expired drugs or medicines

A) Return of time expired goods as fresh supply:

  • The retailer/ wholesaler may return time expired goods to manufacturer as a fresh supply.

  • If retailer/ wholesaler is registered person (other than composition taxable person), he may levy tax in a tax invoice on such time expired goods and manufacturer shall be able to claim ITC on the same.

  • If retailer/ wholesaler is composition taxable person, he may issue bill of supply and pay tax on such supply at composition rates. ITC will not be available to manufacturer.

  • If retailer/ wholesaler is unregistered, he may return said goods by issuing commercial invoice, without any tax.

  • If manufacturer destroys such goods, ITC availed on such supply shall be reversed.

B) Return of time expired goods by issuing Credit Note (CN):

  • Supplier may take return of such expired goods by issuing CN u/s 34.

  • If CN issued prior to expiry of time period u/s 34, supplier may adjust his output tax liability, provided recipient has not taken ITC or reversed if taken. Supplier shall be required to declare such CN in his GST return

  • If CN issued after expiry of time period u/s 34, supplier cannot adjust it against his output tax liability. So, supplier shall not be required to declare such CN in his GST return.

The Circular may be applicable in other scenarios where the goods are returned on account of reasons other than the one detailed above as well.

71/2018 dated

Clarification on issues pertaining to registration as a casual taxable person & recovery of excess ITC distributed by an ISD

Q. Whether the amount required to be deposited as advance tax while taking registration as a casual taxable person (CTP)?
Ans. Amount to be deposited in advance by CTP is 100% of estimated net tax liability (Net of eligible ITC)

Q. CTP registration is valid for maximum period of 180 days (including extension). What if the exhibition runs for more than 180 days?
Ans. The taxable person cannot be treated as a CTP and thus such person would be required to obtain registration as a normal taxable person. Upload copy of allotment letter for place of business.

Q. What is manner of recovery of excess credit distributed by an Input Service Distributor (ISD) in contravention of the provisions contained in Section 20 of the CGST Act?
Ans. As per Section 21, Unit receiving the excess ITC should reverse the excess amount voluntarily along with interest by using Form GST DRC 03. Otherwise, proceedings may be initiated u/s 73 or 74 of CGST Act using Form GST DRC 07. ISD would also be liable to a general penalty under the provisions contained in Section 122(1)(ix) of the CGST Act.

70/2018 dated

Clarification on certain issues related to refund

Status of refund claim after issuance of deficiency memo (FORM GST RFD-03) for refund application

Currently, Common portal does not allow filing fresh application for same period. Rectified refund application can be filed using the ARN of original application. Therefore, re-credit of electronic credit ledger shall not be required to be carried out after issuance of deficiency memo.

Allowing exporters who have received capital goods under EPCG to claim refund of IGST paid on exports:

Exporters receiving capital goods under EPCG are eligible to claim refund even after issuance of notification No. 54/2018-Central Tax dated the 9th October, 2018.

69/2018 dated

Circular on Standard Operating Procedure for Processing of Applications for Cancellation of Registration submitted in Form GST REG 16

As per Rule 20, application for cancellation should be submitted within 30 days of the “occurrence of the event warranting the cancellation”. If it is difficult to pinpoint such event, the 30-day deadline may be liberally interpreted and application for cancellation of registration may not be rejected on ground of delay.

The POs are directed to accept the application for cancellation within 30 days from the date of filing of application except when (i) the application in Form GST REG 16 is incomplete. Or (ii) In case of transfer, merger or amalgamation of business, the new entity is not registered.

Cancellation to be effective from the date from which applicant has sought cancellation.

Debiting the Credit/ Cash ledger for closing stock is not pre-requisite for applying for cancellation. It can be done at the time of submission of GSTR 10 u/s 45.

Notice under Rule 68 for non-filing of return u/s 39/44/45 shall not be required to be issued if registered person has not made any taxable supply during the intervening period and has furnished an undertaking in this regard.

68/2018 dated

Notifications issued under CGST Act, 2017 applicable to Goods and Services Tax (Compensation to States) Act, 2017

It is clarified that UN and specified international organizations, foreign diplomatic missions or consular posts in India, or diplomatic agents or career consular officers posted therein, having being specified under section 55 of the CGST Act, 2017, are entitled to refund of Compensation Cess payable on intra-State and inter-State supply of goods or services or both received by them subject to the same conditions and restrictions, mutatis mutandis, as prescribed in Notification No. 16/2017-Central Tax (Rate) dated 28.06.2017.

67/2018 dated

Modification to the Guidelines for Deductions and Deposits of TDS by the DDO under GST as clarified in Circular No. 65/39/2018-DOR dated 14.09.2018

66/2018 dated

GST on Residential programmes or camps meant for advancement of religion, spirituality or yoga by religious and charitable trusts

Residential programmes or camps where the fee charged includes cost of lodging and boarding shall also be exempt as long as the primary and predominant activity, objective and purpose of such residential programmes or camps is advancement of religion, spirituality or yoga. However, if charitable or religious trusts merely or primarily provide accommodation or serve food and drinks against consideration in any form including donation, such activities will be taxable. Similarly, activities such as holding of fitness camps or classes such as those in aerobics, dance, music etc. will be taxable.

65/2018 dated

Guidelines for Deductions and Deposits of TDS by the DDO (Drawing and Distribution Office) under GST

For payment process of Tax Deduction at Source under GST two options can be followed, which are as under:

Option I: Generation of challan for every payment made during the month

Option II: Bunching of TDS deducted from the bills on weekly, monthly or any periodic manner

64/2018 dated

Modification of the procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances, as clarified in Circular Nos. 41/15/2018-GST dated 13.04.2018 and 49/23/2018-GST dated 21.06.2018 – regarding

It is clarified that in case a consignment of goods is accompanied with an invoice or any other specified document and also an e-way bill, proceedings under section 129 may not be initiated, inter alia, in the following situations:

(i) Spelling mistakes in the name of the consignor or the consignee but the GSTIN, wherever applicable, is correct;

(ii) Error in the pin-code but the address of the consignor and the consignee mentioned is correct, subject to the condition that the error in the PIN code should not have the effect of increasing the validity period of the e-way bill;

(iii) Error in the address of the consignee to the extent that the locality and other details of the consignee are correct;

(iv) Error in one or two digits of the document number mentioned in the e-way bill;

(v) Error in 4 or 6 digit level of HSN where the first 2 digits of HSN are correct and the rate of tax mentioned is correct;

(vi) Error in one or two digits/characters of the vehicle number.

In case of the above situations, Penalty to the tune of Rs. 500 under CGST & Rs. 500 under SGST or Rs. 1000 under IGST shall be imposed.

63/2018 dated

Clarification regarding processing of refund claims filed by UIN entitles

In order to expedite the processing of the refund applications filed by the UIN entities, the following formats/documents are hereby specified:

  • Refund Checklist as Annexure A

  • Certificate: Sample given in Annexure-B for Embassy/ Mission/ Consulate and Annexure B-1 for UNO/Specified International Organizations

  • Undertaking: Sample given in Annexure-C for Embassy/ Mission/ Consulate and Annexure C-1 for UNO/Specified International Organizations

  • Detailed Statement of Invoices: in the format specified in Annexure D.

Prior Permission letter from Protocol Special Section of Ministry of External Affairs required for GST refund for purchase of vehicles.

Personnel/ officials of UN and other International organizations are not eligible to claim refund. Eligibility of refund for the personnel/ officials of Embassy/ Mission/ Consulate shall be determined based on the principle of reciprocity.

A one-time waiver given from recording the UIN on the input invoices issued for the quarters from Apr 18 to Mar 19 provided such invoices are attested by the authorized representative.

Monthly report under Circular No. 36/10/2018-GST to be furnished in format as per Annexure E.

62/2018 dated

Levy of GST on Priority Sector Lending Certificate-reg.

It is clarified that GST on PSLCs for the period 1.7.2017 to 27.05.2018 will be paid by the seller bank on forward charge basis and GST rate of 12% will be applicable on the supply

61/2018 dated

E-way bill in case of storing of goods in godown of transporter.

In case the consignee/ recipient taxpayer stores his goods in the godown of the transporter, then the transporter’s godown has to be declared as an additional place of business (POB). Once the goods have reached the transporter’s godown, the transportation under the e-way bill shall be deemed to be concluded. Whenever the goods move from the transporter’s godown (APOB) to the recipient taxpayer’s any other POB, a new e-way bill shall be required.

Transporter shall be obligated to maintain accounts and records as per section 35 of CGST Act read with rule 58 of CGST Rules.

Facility of declaring additional place of business by the recipient taxpayer is in no way putting any additional compliance requirement on the transporters.

60/2018 dated

Processing of refund applications filed by Canteen Stores Department (CSD)

  • Invoice based refund shall be granted

  • Refund application to be filed manually in Form GST RFD-10A (not prescribed in Rules. Format is available in this circular) until online utility is made available along with undertaking and declaration prescribed in the circular, GSTR 3B return, GSTR 2A copies, Bank account details.

  • Acknowledgement (RFD-2), deficiency memo (RFD-3), refund sanction/ rejection order (RFD-6), Payment advice (RFD-5) to be issued manually

59/2018 dated

Clarification on refund related issues

Refund claim shall be accompanied by a print-out of GSTR-2A of the claimant for the relevant period. It is emphasized that the proper officer shall not insist on the submission of an invoice (either original or duplicate) the details of which are present in FORM GSTR-2A of the relevant period submitted by the claimant. Claimant also to furnish details of input invoices on which ITC is taken in Annexure-A manually along with refund application.

Restriction under rule 96(10) of CGST Rules applies only to those purchasers/importers who are directly purchasing/importing supplies on which the benefit of certain notifications [NN 48/2017-CT (Except EPCG), NN 40/2017-CT(R), NN 41/2017-IT(R), NN 78/2017-Customs, NN 79/2017-Customs] has been availed.

Disbursing authority can’t refuse to disburse the refund amount sanctioned by PO except u/s 54(11) of CGST Act. It should instead bring it to the notice of sanctioning authority.

Show-cause-notices are not required to be issued where deficiency memos (GST RFD-3) have been issued. A refund application which is re-submitted after the issuance of a deficiency memo shall have to be treated as a fresh application.

The minimum limit of Rs. 1000 for refund is applicable for each tax head (CGST, SGST, IGST, Compensation cess) separately. It is not applicable in case of refund of excess balance of cash ledger.

58/2018 dated

Recovery of arrears of wrongly availed CENVAT credit under the existing law and inadmissible transitional credit

As per Circular No. 42/16/2018-GST dated 13th April, 2018, recovery of arrears arising under the old law shall be made as central tax liability to be paid through the utilization of the amount available in the E-credit ledger or E-cash ledger of the registered person, and the same shall be recorded in Part II of the E-Liability Register.

Currently, the functionality to record this liability in the electronic liability register is not available on the common portal. Therefore, taxpayer may reverse the wrongly availed credit through Table 4(B)(2) of Form GSTR-3B along with applicable interest and penalty in Column 9 of Table 6.1 of Form GSTR-3B.

57/2018 dated

Scope of Principal-agent relationship in the context of Schedule I of the CGST Act

56/2018 dated

Clarification on removal of restriction on refund of accumulated Input Tax Credit on fabrics

55/2018 dated

Taxability of services provided by Industrial Training Institutes (ITI) .

54/2018 dated

Circular No. 54/28/2018-GST dated 09.08.2018 i.r.o. classification of fertilizers supplied for use in the manufacture of other fertilizers at 5 % GST rate.

53/2018 dated

Circular No. 53/27/2018-GST dated 09.08.2018 i.r.o. clarification regarding applicability of GST on petroleum gases retained for the manufacture of petrochemical and chemical products

52/2018 dated

Circular No. 52/26/2018-GST dated 09.08.2018 i.r.o. clarification regarding applicability of GST rates on various goods and services.

51/2018 dated

Applicability of GST on ambulance services provided to Government by private service providers under the National Health Mission (NHM)

50/2018 dated

Seeks to withdraw Circular No. 28/02/2018-GST dated 08.01.2018 as amended vide Corrigendum dated 18.01.2018 and Order No 02/2018–CT dated 31.03.2018 – reg.

49/2018 dated

Seeks to modify Circular No. 41/15/2018-GST

48/2018 dated

Circulars clarifying miscellaneous issues related to SEZ and refund of unutilized ITC for job workers

47/2018 dated

Clarifications of certain issues under GST

46/2018 dated

Applicable GST rate on Priority Sector Lending Certificates (PSLCs), Renewable Energy Certificates (RECs) and other similar scrips -regarding

45/2018 dated

Clarification on refund related issues

44/2018 dated

Issue related to taxability of ‘tenancy rights’ under GST- Regarding.

43/2018 dated

clarifying the issues arising in refund to UIN.

42/2018 dated

clarifying the procedure for recovery of arrears under the existing law and reversal of inadmissible input tax credit.

41/2018 dated

clarifying the procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances.

40/2018 dated

Clarification on issues related to furnishing of Bond/Letter of Undertaking for exports – Reg.

39/2018 dated

Setting up of an IT Grievance Redressal Mechanism to address the grievances of taxpayers due to technical glitches on GST Portal-reg.

38/2018 dated

Clarifications on issues related to Job Work

37/2018 dated

Clarifications on exports related refund issues

36/2018 dated

Processing of refund application for UIN entities

35/2018 dated

Clarification regarding taxable services provided by the member of the Joint Venture(JV) to the JV and vice versa and inter se between the members of the JV

34/2018 dated

Clarification regarding GST in respect of certain services.

33/2018 dated

Directions under Section 168 of the CGST Act regarding non-transition of CENVAT credit under section 140 of CGST Act or non-utilization thereof in certain cases-reg..

32/2018 dated

Clarifications regarding GST in respect of certain services as decided in 25th GST Council meeting.

31/2018 dated

Proper officer under sections 73 and 74 of the Central Goods and Services Tax Act, 2017 and under the Integrated Goods and Services Tax Act, 2017.

30/2018 dated

GST dated 25.01.2018 clarificationregarding supplies made to the Indian Railways classifiable under any chapter, other than Chapter 86 .

29/2018 dated

GST dated 25.01.2018 seeks to clarify applicability of GST on Polybutylene feedstock and Liquefied Petroleum Gas retained for the manufacture of Poly Iso Butylene and Propylene or Di-butyl para Cresol.

28/2018 dated

Clarifications regarding GST on College Hostel Mess Fees

27/2017 dated

Clarifications regarding levy of GST on accommodation services, betting and gambling in casinos, horse racing, admission to cinema, homestays, printing, legal services etc.

26/2017 dated

Filing of returns under GST

25/2017 dated

Manual filing of applications for Advance Ruling and appeals before Appellate Authority for Advance Ruling

24/2017 dated

Manual filing and processing of refund claims on account of inverted duty structure, deemed exports and excess balance in electronic cash ledger

23/2017 dated

Issues in respect of maintenance of books of accounts relating to additional place of business by a principal or an auctioneer for the purpose of auction of tea, coffee, rubber etc

22/2017 dated

Clarification on issues regarding treatment of supply by an artist in various States and supply of goods by artists from galleries

21/2017 dated

GST dated 22.11.2017 is issued to clarify on Inter-state movement of rigs, tools and spares, and all goods on wheels [like cranes].

20/2017 dated

GST dated 22.11.2017 is issued to clarify classification and GST rate on Terracotta idols.

19/2017 dated

Clarification on taxability of custom milling of paddy.

18/2017 dated

Refund of unutilized input tax credit of GST paid on inputs in respect of exporters of fabrics.

17/2017 dated

Manual filing and processing of refund claims in respect of zero-rated supplies .

16/2017 dated

Clarifications regarding applicability of GST and availability of ITC in respect of certain services.

15/2017 dated

Due date for generation of FORM GSTR-2A and FORM GSTR-1A in accordance with the extension of due date for filing FORM GSTR-1 and FORM GSTR-2 respectively

14/2017 dated

Procedure regarding procurement of supplies of goods from DTA by (EOU)/(EHTP Unit /STP Unit/BTP Unit .

13/2017 dated

Clarification of classification of cut pieces of fabric under GST

12/2017 dated

Seeks to clarify the applicability of GST on the superior kerosene oil [SKO] retained for the manufacture of Linear Alkyl Benzene [LAB].

11/2017 dated

Clarification on taxability of printing contracts

10/2017 dated

Clarification on movement of goods on approval basis

09/2017 dated

Authorized officer for enrollment of Goods and Services Tax Practitioner

08/2017 dated

Clarification on issues related to furnishing of Bond/LUT for exports

07/2017 dated

System based reconciliation of information furnished in FORM GSTR-1 and FORM GSTR-2 with FORM GSTR-3B – regarding

06/2017 dated

CGST dated 27.08.2017 is issued to clarify classification and GST rate on lottery

05/2017 dated

Circular on Bond/LUT in case of exports without payment of integrated tax

04/2017 dated

Reagrding issues related to Bond/Letter of Undertaking for exports without payment of integrated tax – Reg.

03/2017 dated

Proper officer relating to provisions other than Registration and Composition under the Central Goods and Services Tax Act, 2017–Reg

02/2017 dated

Issues related to furnishing of Bond/ Letter of Undertaking for Exports–Reg

01/2017 dated

Proper officer for provisions relating to Registration and Composition levy under the Central Goods and Services Tax Act, 2017 or the rules made thereunder – Reg

IGST Circulars

Circular No.


3/1/2018-IGST dated

Applicability of Integrated Goods and Services Tax (integrated tax) on goods supplied while being deposited in a customs bonded warehouse-reg.

2/1/2017-IGST dated

Clarification on supply of satellite launch services by ANTRIX Corporation Ltd

1/1/2017-IGST dated

Clarification on Inter-state movement of various modes of conveyance, carrying goods or passengers or for repairs and maintenance- regarding

UTGST Circulars

No circulars have been issued so far under UTGST law.

Cess Circulars

Circular No.


1/1/2017-Compensation Cess dated

Seeks to provide clarification regarding applicability of section 16 of the IGST Act, 2017, relating to zero rated supply for the purpose of Compensation Cess on exports.