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

Sub:    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

Clarification

The Circular provides clarification where ITC is claimed in the GSTR-3B without the same appearing in the GSTR-2A for FY 2017-18 and 2018-19, due to-

1. The vendor not filing GSTR-1 but only filing GSTR-3B.
2. The vendor filing GSTR-1 and GSTR-3B but not showing a particular invoice in the GSTR-1.
3. The vendor wrongly recording a B2B invoice as a B2C invoice in the GSTR-1.
4. The vendor filing GSTR-1 and mentioning the wrong GSTIN

In any of the above four situations, the officer ahs to first check the below parameters:

1. The recipient is in possession of a tax invoice or debit note issued by the supplier;
2. The recipient has received the goods or services or both;
3. The recipient has made payment for the amount towards the value of supply, along with tax payable thereon, to the supplier; and
4. ITC is availed within the time period prescribed u/s 16(4).

In case of satisfying the condition of payment of tax by the supplier, the officer has to

1. Where ITC amount is more than Rs. 5 lakhs, then the officer has to ask the recipient to produce CA / CMA certificate certifying that tax payment has already been made in respect of invoices of the supplier; or

2. Where ITC amount is less than Rs. 5 lakhs, then the officer has to ask the recipient to get the certificate from the respective supplier certifying that tax payment has already been made in respect of invoices of the supplier.

Circular No. 184/16/2022-GST dated 27^th December 2022

Sub:    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 IGST Act, 2017

Clarification

In simple words, this Circular provides clarification on the place of supply of services for transport of goods, including by mail or courier, to a place outside India, and where both the supplier and recipient are located in India.

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, 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.

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.

Section 16 of the CGST Act lays down the eligibility and conditions for taking input tax credit. 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.

The supplier of service shall report place of supply of such service by selecting State code as ‘96-Foreign Country’ while filing GSTR-1.

Circular No. 186/18/2022-GST dated 27^th December 2022

Sub:    Clarification on various issues which includes – applicability of e-invoicing w.r.t. an entity

Clarification

Whether the exemption from mandatory generation of e-invoices in terms of Notification No. 13/2020-Central Tax, dated 21st March, 2020, as amended, is available for the entity as whole, or whether the same is available only in respect of certain supplies made by the said entity?

It is 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.

For example – 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, 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.