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Following the recommendations from the 53rd GST Council Meeting on 22nd June 2024, Central Board of Indirect Taxes and Customs has released 16 circulars to clarify various GST-related issues. Here are the New Goods and Service Tax circulars issued based on the recommendations of the 53rd Goods and Service Tax Council meeting: Here are the key highlights:
Circular No. 207: Fixing monetary limits for filing appeals or applications by the Department before Goods and Services Tax Appellate Tribunal, High Courts, and Supreme Court. Monetary Limits for Appeals:
| Number | Date | Subject | Download |
| 207/01/2024-GST | 26-Jun-2024 | Reduction of Government Litigation – fixing monetary limits for filing appeals or applications by the Department before GSTAT, High Courts and Supreme Court | English |
Circular No. 208: Clarifications on various issues pertaining to the special procedure for the manufacturers of specified commodities. Special Procedure for Specified Commodities:
Not Applicable: To SEZ Units and manual packing operations.
| Number | Date | Subject | Download |
| 208/02/2024-GST | 26-Jun-2024 | Clarifications on various issues pertaining to special procedure for the manufacturers of the specified commodities. | English |
Circular No. 209: Clarification on the provisions of clause (ca) of Section 10(1) of the Integrated Goods and Service Tax Act, 2017, relating to the place of supply. Place of Supply for Unregistered Persons: When billing and delivery addresses differ, the place of supply is the delivery address.
| Number | Date | Subject | Download |
| 209/03/2024-GST | 26-Jun-2024 | Clarification on the provisions of clause (ca) of Section 10(1) of the Integrated Goods and Service Tax Act, 2017 relating to place of supply | English |
Circular No. 210: Clarification on the valuation of the supply of import of services by a related person where the recipient is eligible for full input tax credit. Valuation of Import of Services: Value declared in the invoice by the foreign affiliate is deemed the open market value if the domestic entity is eligible for full ITC. If no invoice, the value is deemed Nil.
| Number | Date | Subject | Download |
| 210/04/2024-GST | 26-Jun-2024 | Clarification on valuation of supply of import of services by a related person where recipient is eligible to full input tax credit. | English |
Circular No. 211: Clarification on the time limit u/s 16(4) of the Central Goods and Services Tax Act, 2017, in respect of Reverse Charge Mechanism supplies received from unregistered persons. Time Limit for RCM Supplies from Unregistered Persons: Relevant financial year is when the recipient issues the invoice.
| Number | Date | Subject | Download |
| 211/05/2024-GST | 26-Jun-2024 | Clarification on time limit under Section 16(4) of CGST Act, 2017 in respect of RCM supplies received from unregistered persons. | English |
Circular No. 212: Clarification on the mechanism for providing evidence of compliance with the conditions of Section 15(3)(b)(ii) of the Central Goods and Services Tax Act, 2017, by the suppliers. Verification of ITC Reversal for Discounts: Suppliers can obtain a certificate from a CA/CMA or an undertaking from the recipient if the discount tax amount is ≤ ₹5,00,000.
| Number | Date | Subject | Download |
| 212/06/2024-GST | 26-Jun-2024 | Clarification on mechanism for providing evidence of compliance of conditions of Section 15(3)(b)(ii) of the CGST Act, 2017 by the suppliers | English |
Circular No. 213: Seeking clarity on the taxability of the reimbursement of securities/shares as SOP/ Restricted Stock Units / Employee Stock Purchase Plans provided by a company to its employees. Taxability of Securities/Shares as SOP/ESPP/RSU: Transfer of shares/securities is not subject to GST. Reimbursement on a cost-to-cost basis is not subject to GST.
| Number | Date | Subject | Download |
| 213/07/2024-GST | 26-Jun-2024 | Seeking clarity on taxability of re-imbursement of securities/shares as SOP/ESPP/RSU provided by a company to its employees. | English |
Circular No. 214: Clarification on the requirement of reversal of input tax credit in respect of the portion of the premium for life insurance policies which is not included in the taxable value. ITC Treatment for Life Insurance Premium: No requirement for ITC reversal on the premium component allocated for investment.
| Number | Date | Subject | Download |
| 214/08/2024-GST | 26-Jun-2024 | Clarification on the requirement of reversal of input tax credit in respect of the portion of the premium for life insurance policies which is not included in taxable value | English |
Circular No. 215: Clarification on the taxability of wreck and salvage values in motor insurance claims. Taxability of Wreck and Salvage Values: No GST liability if the salvage value is deducted from the claim amount. GST liability if the insurance company settles the claim for the full IDV without deducting the salvage value.
| Number | Date | Subject | Download |
| 215/09/2024-GST | 26-Jun-2024 | Clarification on taxability of wreck and salvage values in motor insurance claims. | English |
Circular No. 216: Clarification in respect of Goods and Services Tax liability and input tax credit availability in cases involving warranty/extended warranty, in furtherance to Circular No. 195/07/2023-GST dated 17.07.2023. GST Liability and ITC for Warranty Replacement: No GST or ITC reversal for distributors replacing parts from their stock.Extended warranty is a separate supply of services.
| Number | Date | Subject | Download |
| 216/10/2024-GST | 26-Jun-2024 | Clarification in respect of GST liability and input tax credit (ITC) availability in cases involving Warranty/ Extended Warranty, in furtherance to Circular No. 195/07/2023-GST dated 17.07.2023 | English |
Circular No. 217: Entitlement of input tax credit by insurance companies on the expenses incurred for the repair of motor vehicles in case of reimbursement mode of insurance claim settlement. ITC for Insurance Companies on Repair Expenses: ITC available for repair expenses in reimbursement mode if the invoice is in the name of the insurance company.
| Number | Date | Subject | Download |
| 217/11/2024-GST | 26-Jun-2024 | Entitlement of ITC by the insurance companies on the expenses incurred for repair of motor vehicles in case of reimbursement mode of insurance claim settlement. | English |
Circular No. 218: Clarification regarding the taxability of the transaction of providing a loan by an overseas affiliate to its Indian affiliate or by a person to a related person. Taxability of Loans Between Related Entities: Loans are considered a supply but exempt from GST. Processing fees are taxable.
| Number | Date | Subject | Download |
| 218/12/2024-GST | 26-Jun-2024 | Clarification regarding taxability of the transaction of providing loan by an overseas affiliate to its Indian affiliate or by a person to a related person. | English |
Circular No. 219: Clarification on the availability of input tax credit on ducts and manholes used in the network of optical fiber cables in terms of section 17(5) of the Central Goods and Services Tax Act, 2017. ITC for Ducts and Manholes in OFC Networks: ITC not restricted for ducts and manholes as they are part of “plant and machinery.”
| Number | Date | Subject | Download |
| 219/13/2024-GST | 26-Jun-2024 | Clarification on availability of input tax credit on ducts and manholes used in network of optical fiber cables (OFCs) in terms of section 17(5) of the CGST Act, 2017 | English |
Circular No. 220: Clarification on the place of supply applicable for custodial services provided by banks to Foreign Portfolio Investors. Determined by the location of the recipient, not covered under Section 13(8)(a) of the IGST Act.
| Number | Date | Subject | Download |
| 220/14/2024-GST | 26-Jun-2024 | Clarification on place of supply applicable for custodial services provided by banks to Foreign Portfolio Investors | English |
Circular No. 221: Time of supply on annuity payments under Hybrid Annuity Model Projects- Payments considered as continuous supply of services.
| Number | Date | Subject | Download |
| 221/15/2024-GST | 26-Jun-2024 | Time of supply on Annuity Payments under HAM Projects | English |
Circular No. 222: Time of supply in respect of the supply of the allotment of Spectrum to Telecom companies. GST payable on deferred payments as and when they are due or made. Complete Circular
| Number | Date | Subject | Download |
| 222/16/2024-GST | 26-Jun-2024 | Time of supply in respect of supply of allotment of Spectrum to Telecom companies in cases where an option is given to the Telecom Companies for payment of licence fee and Spectrum usage charges in instalments in addition to an option of upfront payment. | English |
If you need detailed explanations or have specific questions about any of these circulars, please let me know!
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