GST Council Recommends to Issue Clarifications on Certain Issues to Trade and Tax Officers: Here’s the List of Areas Included

The 53rd GST (Goods and Services Tax) council has recommended to issue clarifications on certain issues to trade and tax officers and to reduce the litigation.

Finance Minister Nirmala Sitharaman chaired the 53rd meeting of the GST Council today, June 22, 2024, in New Delhi, alongside the Revenue Secretary and CBIC Chairman. The following clarifications were recommended for issuance:

1. Clarification on taxability of reimbursement of securities/shares as ESOP/ESPP/RSU provided by a company to its employees
2. Clarification on requirement of reversal of input tax credit in respect of amount of premium in Life Insurance services, which is not included in the taxable value as per Rule 32(4) of CGST Rules.
3. Clarification on taxability of wreck and salvage values in motor insurance claims
4. Clarification in respect of Warranty/ Extended Warranty provided by Manufacturers to the end customers
5. Clarification regarding availability of input tax credit on repair expenses incurred by the insurance companies in case of reimbursement mode of settlement of motor vehicle insurance claims.
6. Clarification on taxability of loans granted between related person or between group companies.
7. Clarification on time of supply on Annuity Payments under HAM Projects.
8. Clarification regarding time of supply in respect of allotment of Spectrum to Telecom companies in cases where payment of licence fee and Spectrum usage charges is to be made in instalments.
9. Clarification relating to place of supply of goods supplied to unregistered persons, where delivery address is different from the billing address
10. Clarification on mechanism for providing evidence by the suppliers for compliance of the conditions of Section 15(3)(b)(ii) of CGST Act, 2017 in respect of post-sale discounts, to the effect that input tax credit has been reversed by the recipient on the said amount.
11. Clarifications on various issues pertaining to special procedures for the manufacturers of the specified commodities, like pan masala, tobacco etc.

The clarifications are expected to be issued by the CBIC within the next few days.

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