Post the 35th GST Council meeting at New Delhi on 21st June 2019, notifications and circulars have been issued by CBIC to implement the decisions taken by the GST Council.
The summary of such Notifications, Circular and Order has been enumerated under below sections.
1. Treatment of Secondary or Post Sales Discount (Circular No 105/24/2019-GST dated 28th June 2019)
The Circular is issued for clarification for Post Sales discount issued pursuant to Sec 15(3)(b) of the CGST Act, 2017 –
| Category | Obligation of Dealer | Treatment |
| Post sales discount given by supplier to Dealer | Dealer not to undertake any further activity or action to obtain such discount | Value of such discount not to be included in the value of supply subject to fulfilment of provisions of Sec 15(3) of the CGST Act, 2017 |
| Post sales discount given by supplier to Dealer | Dealer to undertake some special sales drive, advertisement campaign, exhibition, etc | Such transaction is treated as a separate transaction. Additional discount shall be consideration for such activity.
The dealer being supplier of such services, shall raise an invoice and charge applicable GST. Supplier of Goods (being recipient of Service) shall claim ITC of the GST so charged. E.g. ABC Ltd is a manufacturer of Motor Vehicles, provides a special discount to PQR Ltd (dealer of ABC Ltd) for undertaking a special marketing campaign. PQR Ltd shall raise an invoice for such marketing campaign (amount reimbursed by M/s ABC) to ABC Ltd and ABC Ltd shall claim ITC on such Invoice. |
| Additional Discount from Supplier to Dealer | Dealer to offer special reduced price to customer to augment the sales volume | Such additional discount shall be treated as consideration from supplier to dealer for supply of goods from dealer to customer. It should be added to the consideration payable by customer. The customer, if registered, shall be eligible to claim ITC on such additional consideration. |
| Post sales discount by supplier by way for financial or commercial credit notes | Financial/Commercial Credit Notes (Refer to Circular No 92/11/2019-GST dated 7th March 2019) | Dealer is not required to reverse the ITC attributable to such post sales discount received by way of financial/ commercial credit note if:
The dealer pays the value of supply less the amount of credit note plus amount of original tax charged by the supplier |
2. Clarification regarding Place of Supply in certain cases (Circular No 103/22/2019-GST dated 28th June 2019)
| Issue | Clarification |
| Services Provided by Ports –
Various services are being provided by the port authorities to its clients in relation to cargo handling. E.g. services in respect of arrival of wagons at port, haulage of wagons inside port area up-to place of unloading, siding of wagons inside the port, unloading of wagons, movement of unloaded cargo to plot and staking hereof, movement of unloaded cargo to berth, shipment/loading on vessel, etc |
Such services are ancillary to or related to cargo handling services. They are not related to immovable property.
Accordingly, the place of supply of such services will be determined as per the provisions contained in sub-section (2) of Section 12 or sub-section (2) of Section 13 of the IGST Act, as the case may be, depending upon the terms of the contract between the supplier and recipient of such services. |
| Services rendered on goods temporarily imported in India
Place of supply in case of supply of various services on unpolished diamonds such as cutting and polishing activity which have been temporarily imported into India and are not put to any use in India |
In case of cutting and polishing activity on unpolished diamonds which are temporarily imported into India are not put to any use in India, the place of supply would be determined as per the provisions contained in sub-section (2) of Section 13 of the IGST Act |
3. Central Tax Notifications:
| Notification (Central Tax) | Notification Summary |
| Notification No 26/2019 | Extends the due date of filing returns for Form GSTR 7 (Return for GST TDS) |
| Notification No 27/2019 | Prescribes the due date of filing returns in Form GSTR 1 (for T/O up to 1.5 Crores) for the months of July 19 to September 19 (31st October 2019) |
| Notification No 28/2019 | Prescribes the due date of filing returns in Form GSTR 1 (for T/O more than 1.5 Crores) for the months of July 19 to September 19 (11th day of the Succeeding month) |
| Notification No 29/2019 | Prescribes the due date of filing returns in Form GSTR 3B for the months of July 19 to September 19 (20th day of the Succeeding month) |
| Notification No 30/2019 | Filing of Reconciliation Statement in Form GSTR 9C for suppliers of Online Information Access and Database Retrieval Services (“OIADR Services”) |
| Notification No 31/2019 | Proposes changes in the CGST Rules, 2017. Some important ones being:
– Value of supply in cases where Kerala Cess is applicable – Rule 32A – Refund of taxes to the retail outlets established in departure area of an international Airport beyond immigration counters making tax free supply to an outgoing international tourist – Rule 95A |
| Notification No 32/2019 | Extends the due date of furnishing declaration for Job Work in Form GST ITC 04 |
4. Central Tax Removal of Difficulty Orders:
| Removal of Difficulty | Notification Summary |
| Order 06/2019 | Extends the due date of filing Annual return in Form GSTR 9, Form GSTR 9A and Reconciliation Statement in Form GSTR 9C u/s 44 of the CGST Act, 2017 to 31st August 2019 (Earlier due date was 30th June, 2019) |
Extract of the Provisions of the IGST Act, 2017 – Place of supply
Section 12 (2) of the IGST Act, 2017 – Place of supply of services where location of supplier and recipient is in India
(a) Place of supply for services if made to a registered person shall be the location of such person;
(b) If made to any person other than a registered person shall be,––
(i) the location of the recipient where the address on record exists; and
(ii) the location of the supplier of services in other cases.
Section 13(2) of the IGST Act, 2017 – Place of supply of services where location of supplier or location of recipient is outside India.
(2) The place of supply of services shall be the location of the recipient of services:
Provided that where the location of the recipient of services is not available in the ordinary course of business, the place of supply shall be the location of the supplier of services.
Note – This is for information only. For exact details of changes, the notification/Circular may please be referred to, as and when they are issued.
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