CBIC issues circular clarifying issues as per recommendation of GST Council 54th meeting

CBIC issues circular clarifying certain issues as per the recommendation of GST Council 54th meeting.

CBIC has issued CGST Circulars to implement the recommendation of GST Council 54th meeting. The GST Council has inter alia recommended for:

1. To clarify that where the inputs were initially imported without payment of integrated tax and compensation cess by availing benefits under Notification No. 78/2017-Customs dated 13.10.2017 or Notification No. 79/2017-Customs dated 13.10.2017, but IGST and compensation cess on such imported inputs are subsequently paid, along with applicable interest, and the Bill of Entry in respect of the import of the said inputs is got reassessed through the jurisdictional Customs authorities to this effect, then the IGST paid on exports, refunded to the said exporter shall not be considered to be in contravention of provisions of sub-rule (10) of rule 96 of CGST Rules.

Further, considering the difficulty being faced by the exporters due to restriction in respect of refund on exports, imposed vide rule 96(10), rule 89(4A) & rule 89(4B) of CGST Rules, 2017, in cases where benefit of the specified concessional/ exemption notifications is availed on the inputs, the Council recommended to prospectively omit rule 96(10), rule 89(4A) & rule 89(4B) from CGST Rules, 2017. This will simplify and expedite the procedure for refunds in respect of such exports.

2. Clarification on Place of Supply of data hosting services provided by service providers located in India to cloud computing service providers located outside India.

3. Clarification regarding availability of Input Tax Credit on demo vehicles by the dealers of the vehicle manufacturers.

4. Clarification on the Place of Supply of advertising services provided by Indian advertising companies to foreign entities

Accordingly, the following clarifications have been issued:

• Deduction u/s 80-IA(7) not allowed for delayed filing of audit report in Form 10CCB
• Is CSR expenditure is allowable under section 80G of Income Tax Act – ITAT says “Yes”
• Territorial jurisdiction of ITAT is determined on the basis of situs of Assessing Officer
• Notice u/s 148 set-aside as assessee’s e-mail was inactive and notices went un-noticed
• AO after dropping an issue for lack of evidence may re-open it on gathering information