Circulars Released by CBIC in follow up of 53rd GST Council Meeting
- July 4, 2024
- Posted by: SHM & Associates, Chartered Accountants
- Categories:
Background
Following the 53rd Meeting of the GST Council convened on June 22, 2024, a plethora of recommendations were introduced for easing the tax and compliances burden for the taxpayers. As invigorated by our SHM Insight released recently, we are pleased to present the most recent update in the tax world pertaining to the circulars issued by the Central Board of Indirect Taxes in lieu of the recommendations proposed by the council. A glimpse of the trailing insights is as follows:
| S.No. | Particulars | Details |
| 1. | Taxability of ESOP/ ESPP/ RSU | In case of Employee Stock Option Plan (ESOPs), since the reimbursement by the domestic subsidiary company to the foreign holding company is for transfer of securities/shares, there is no supply of service and hence, not leviable to GST. |
| 2. | Reversal of ITC in the case of Credit notes. | In case of GST credit notes for post supply discount, the supplier needs to obtain self- certificate/ Chartered Accountant certificate certifying that the recipient has reversed the proportionate input tax credit (ITC) in respect of such credit notes. |
| 3. | Place of Supply in the case of unregistered person where billing and delivery address is different. | Where the invoice mentions billing address as well as delivery address, the place of supply in case of supply of goods to an unregistered person shall be the delivery address. |
| 4. | Valuation of import of services from related person. | In cases where full ITC is available to the recipient, if the invoice is not issued by the domestic entity with respect to any service provided by the foreign affiliate to it, the value of such services may be deemed to be declared as Nil and may be deemed as open market value. |
| 5. | Monetary Limit on Appeals | The monetary limits have been prescribed for filing appeal before Tribunal (INR 20 lakhs), High Court (INR 1 crore) and Supreme Court (INR 2 crores). Principles have been laid down for determining such monetary limits in various scenarios. Further, certain exceptions are provided where the said monetary limits will not apply. |
In this Tax alert, we have summarized the key circulars issued and the clarifications in GST law and GST rates related changes.
To read the complete alert: Click Here
Please note that the above narration is only a summary based on our understanding of the ruling. This summary should not be construed as advice, including any advice that may only be provided by a qualified legal professional. It serves as a technical summary to keep you informed about the latest tax issues. Please reach out to your SHM SPOC for specific queries and applicability.
We hope you find this update useful.
