Summary of ITC on Vehicle repair expense to insurance company in Claim reimbursement  The Insurance Company insures the cost of repairs/damages of motor vehicles and settles the claims in two ways. (i) Cashless Mode:- The Insurance company pay the garage directly for the repair work. The Garage issues the invoice in the insurance Company’s name … Read more

Summary of Clarification on Place of Supply for Custodial service Clarification on Place of Supply for Custodial service offered by Banks to Foreign Portfolio Investors (FPIs).Custodial service means services where banks manage and safeguard financial assets on behalf of FPIs.As per section 13(8) (a) of IGST Act, certain services like banking, financial and intermediary services, … Read more

Summary of Clarification on How GST rules apply to warranty related transactions. Circular No 216/10/2024 issued to provide Clarification on How GST rules apply to warranty related transactions. The original clarification in Circular No 195/07/2023-GST mainly focused on the case where only part of product were replaced under warranty, not entire product. However, guidance provided … Read more

Summary of Time of Supply for Construction and Maintainance of NHAI Projects in HAM Model Clarification has been issued for Time of Supply for constuction and Maintainance of NHAI Projects in HAM Model.The Government has received queries for when to apply GST on Road construction and Maintainance Project under HAM model. In this model some … Read more

Summary of Clarification on the taxability of ESOP/ESPP/RSU  Comapnies and tax authorities have asked for Clarification on the taxability of ESOP/ESPP/RSU provided to employees are taxable.These are forms of compensation where employee receives company shares or the option to buy the shares, and there is confusion about how they should be taxed under existing rules. … Read more

Summary of Taxability of Loans from Overseas or Related Affiliates Clarification has been issued for whether there is any supply involved in the transaction of granting of loan by a person to a related person or by an overseas affiliate to its Indian entity, where the consideration being paid is only by way of interest … Read more

Summary of the Valuation of Import Services from Related Person with Full ITC Eligibility Circular No 210/04/2024 has been issued for the Valuation of Import Services from Related Person with Full ITC Eligibility. If a business import services from a related person or from one of its own establishments located outside India, it will be … Read more

Summary of Clarification on Issues related to special procedure for the manufacturers of the specified commodities as per Notification No. 04/2024  Circular No 208/2/2024 states the issues related to special procedure for the manufacturers of the specified commodities as per Notification No. 04/2024-Central Tax dated 05-01-2024. The Government issued the Notification No 30/2023-Central Tax to … Read more

Summary of the Mechanism for verification of ITC Reversal on Post sale discounts GST Circular No 212/06/2024 states the Mechanism for verification of ITC Reversal on Post sale discounts. Where the discounts are offered by supplier after delievring goods or services, they issue tax credit notes. Section 15(3)(b)(ii) of the CGST Act,2017 specifies that, this discount … Read more

Summary of Place of Supply in case of goods sold to unregistered person The government has clarified the Place of Supply in case of goods sold to unregistered person by Circular No 209/3/2024 dated 26-06-2024. The new rule clause (ca) has been added to the IGST Act. This rule states that when goods are sold … Read more