CA Inter GST Amendments May 25

Table of Contents

1. Supply Under GST
2. Charge of GST
3. Place of Supply
4. Exemptions from GST
5. Time of Supply
6. Input Tax Credit
7. Tax Invoice; Credit and Debit Notes
8. Tax Deduction at Source and Collection of Tax at Source
9. Returns

Other Relevent Blogs

1. CA Inter Income Tax Amendments
2. CA Inter National Test Series May 25
3. CA Inter Syllabus (New Update)
4. CMA Inter Syllabus (New Updates)

---

SUPPLY UNDER GST 

Sec 2(105) - Supplier

in relation to any goods or services or both, shall mean the person supplying the said goods or services or both and shall include an agent acting as such on behalf of such supplier in relation to the goods or services or both supplied.

However, a person who organises or arranges, directly or indirectly, supply of specified actionable claims, including a person who owns, operates or manages digital or electronic platform for such supply, shall be deemed to be a supplier of such actionable claims, whether such actionable claims are supplied by him or through him and whether consideration in money or money's worth, including virtual digital assets, for supply of such actionable claims is paid or conveyed to him or through him or placed at his disposal in any manner, and all the provisions of this Act shall apply to such supplier of specified actionable claims, as if he is the supplier liable to pay the tax in relation to the supply of such actionable claims [Section 2(105)].

Analysis 

• ⚠️ Actionable claims are legally goods, but not all are taxable under GST.
• Only Specified actionable claims such as mentioned below are taxable.
• betting; 
• casinos; 
• gambling; 
• horse racing
• lottery
• online money gaming
• Anyone involved in ? organizing, arranging, or facilitating such supplies (especially via platforms) is deemed a supplier, even if they are not directly selling.
• GST liability applies even if consideration doesn’t come directly to them.

---

Circular No. 201/13/2023 GST dated 01.08.2023

GST on Food & Beverages at Cinema Halls

Scenario	GST Treatment	Applicable GST Rate
You buy food/beverages separately from a kiosk/stall/restaurant inside the cinema hall	Treated as Restaurant Service	✅ 5% (No ITC)
Food/beverages are bundled with the cinema ticket as a combo (single price)	Treated as Composite Supply, with Cinema Exhibition as principal supply	18% (on total combo)

 

Key Notes:

• ✅ Restaurant service includes: kiosks, counters, stalls, and vending machines inside the cinema.
• ❗ GST depends on how the food is offered – separately or with ticket.
• Whether the cinema runs the food counter or outsources it doesn't affect GST treatment.

---

CHARGE OF GST

Circular No. 177/09/2022 GST dated 03.08.2022

GST on Renting vs Passenger Transport Services – RCM Clarification

The circular clears confusion on whether Reverse Charge Mechanism (RCM) applies to:

1. ✅ Renting of motor vehicle (designed to carry passengers); OR
2. ✅ Passenger transport services

Key Difference Between the Two Services

Criteria	Renting of Motor Vehicle	Passenger Transport Services
Tariff Heading	Different Tariff heading from passenger transport	Separate tariff heading
Nature of Use	Vehicle is hired for a period of time, kept at disposal	Used for specific journey (fixed route & schedule)
Control & Customization	✅ Renter controls routes, timings, usage	❌ Fixed by service provider
Example	Company hires car for staff full day use, with full control	Bus transport on fixed route to pick & drop employees
RCM Applicable?	✅ Yes (Body Corporate to pay GST under RCM)	❌ No (RCM not applicable)

 

Detailed Clarification:

✅ RCM is Applicable when:

• Body corporate rents a motor vehicle for employee transportation.
• Vehicle is hired for a time period, not specific journeys.
• Vehicle is at the disposal of the company.
• Company decides how/when to use it.

➡️ GST to be paid by the Body Corporate under RCM

❌ RCM is Not Applicable when:

• Body corporate uses passenger transport services
• Services are for specific routes or pre-determined schedules
• Company does not control the vehicle

➡️ GST is paid by the service provider under forward charge, not by body corporate.

Example-Based Understanding

Scenario	GST Under RCM?
Company rents a car for 8 hours daily to drop employees anywhere	✅ Yes
Company books Ola/Uber or bus for a fixed route & timing	❌ No
Monthly contract with vehicle provider with driver for office errands	✅ Yes
Using shared cab service on per-trip basis	❌ No

---

Circular No. 201/13/2023 GST dated 01.08.2023

GST on Services by Directors – RCM Clarification

✅ General Rule (as per RCM):

When a director provides services to the company in the capacity of a director,

➡️ GST is payable by the company under Reverse Charge Mechanism (RCM).

 But what if the director provides services in his personal capacity?

This circular clarifies that:

❌ RCM is NOT applicable when a director supplies services in their personal/private capacity.

Comparison Chart: When RCM Applies & When It Doesn’t

Scenario	Director’s Capacity	GST under RCM?
Director attends board meetings, advisory roles, etc.	As Director	✅ Yes (RCM applicable)
Director rents out personal property (e.g., flat/office space) to company	In Personal Capacity	❌ No (RCM not applicable)
Director provides legal/consulting services under a personal business name	In Personal Capacity	❌ No (RCM not applicable)
Director receives sitting fees or commissions from the company	As Director	✅ Yes (RCM applicable)

---

Electronic Commerce Operator (ECO) under GST

Who is an ECO?

✅ An ECO is any person who owns, operates, or manages a digital/electronic platform through which goods or services or both are supplied.

Two Ways ECOs Are Involved in Supply:

Scenario	Who Supplies?	Who Owns Platform?	Who Collects Payment?
1. ECO supplies directly	ECO itself	ECO	ECO
2. ECO enables supply by others	Actual seller/vendor	ECO	ECO (then passes on to seller after deducting commission)

 

Example:

You order a product on an app like Amazon or a ride via Uber:

• The product/service is supplied by a third-party seller/driver
• But the platform (ECO) handles payment, and earns commission

Tax Implications for ECOs:

✅ Normal Rule:

The actual supplier (restaurant, driver, seller) pays GST
ECO only collects and passes payment after deducting commission (on which ECO pays GST)

Special Rule – Notified Services [Section 9(5)]:

The Government may notify certain services where: ? GST is to be paid by the ECO, not the actual supplier, even though the supplier is different.

Examples of Notified Services under Section 9(5):

Service Category	GST Liability Falls On
Passenger Transport (e.g., Ola, Uber)	ECO
Restaurant Services (via apps like Zomato, Swiggy)	ECO
Housekeeping Services (when supplied via ECO)	ECO

 

➡️ These services have been notified by the government, based on GST Council recommendations.

Notification No. 17/2017 CT (R) dated 28.06.2017/ Notification No. 14/2017 IT (R) dated 28.06.2017

GST on Services Supplied via ECO – Notified Categories (RCM on ECO)

Sl. No	Type of Service Supplied Through ECO	Is GST Payable by ECO?	Exceptions / Notes
(a)	Passenger transport by: radio taxi, motorcab, maxicab, motorcycle, or other motor vehicle (except omnibus)	✅ Yes – GST payable by ECO	None
(b)	Passenger transport by omnibus	✅ Yes, except when supplier is a company	If the service is supplied by a company, it must pay GST itself
(c)	Accommodation services: in hotels, inns, guest houses, clubs, campsites, or other lodging places	✅ Yes (GST by ECO)	If supplier is registered under Sec. 22(1) it must pay GST itself
(d)	Housekeeping services: e.g., plumbing, carpentering, etc.	✅ Yes (GST by ECO)	If supplier is registered under Sec. 22(1) it must pay GST itself
(e)	Restaurant services (delivered through ECOs like Zomato, Swiggy)	✅ Yes (GST by ECO)	Excludes restaurants at specified premises (accommodation above ₹ 7,500 per unit per day) it must pay GST itself

 

Quick Reference – Who Pays GST?

Service Type	GST Payable By
Taxi/Bike/Maxicab via app	ECO ✅
Omnibus (non-company supplier)	ECO ✅
Omnibus (company supplier)	ECO ❌ Supplier ✅
Hotel stays via app (unregistered hotels)	ECO ✅
Hotel stays via app (registered hotels)	ECO ❌ Supplier ✅
Plumber/carpenter via app (unregistered)	ECO ✅
Restaurant via Zomato/Swiggy (normal premises)	ECO ✅
Restaurant via Zomato/Swiggy (5-star hotel)	ECO ❌ Supplier ✅

 

---

PLACE OF SUPPLY

Place of Supply of Goods (Other than Import/Export) – Section 10 of the IGST Act

Section 10(1): Clause-wise Summary

Clause	Situation	Place of Supply (POS)
(a)	Supply involves movement of goods (by supplier, recipient, or any third party)	POS = Where movement terminates for delivery
(b)	Bill-to–Ship-to model — goods delivered to one person on direction of another	POS = Principal place of business of the directing person (i.e., Bill-to party)
(c)	Supply does NOT involve movement (e.g., ex-warehouse sale)	POS = Location of goods at the time of delivery
(ca) NEW	Supply to an unregistered personOverrides (a) and (c)	✅ If address of delivery of goods is on invoice (even just state) → POS = That address ❌ If no address of delivery of goods is on invoice → POS = Supplier’s location
(d)	Goods are assembled or installed at site	POS = Place of installation or assembly
(e)	Supply on board a conveyance (e.g., aircraft, train, ship)	POS = Location where goods were taken on board
(2)	If none of the above clauses apply	POS = As may be prescribed

 

Why (ca) - For instance, migrant workers, tourists, etc. who come to a State for work, tourism, etc. and purchase goods in that State to take it to their respective State. Similarly, in the automobile sector, the residents of a State may travel to another State to purchase vehicle from that State to take advantage of lower registration charges and road tax, which vary from State to State and thereafter, take the vehicle to their State. 

Clause (ca) – Special Rule for Supplies to Unregistered Persons

Inserted via Finance Act, 2023, effective 1st October 2023.

To address ambiguity in B2C transactions, Clause (ca) overrides Clauses (a) and (c) only for unregistered recipients.

Invoice Status	Place of Supply
Address (even just State name) is recorded	✅ That address (State)
❌ No address recorded on invoice	✅ Location of the supplier

 

Practical Impact:

Even if goods physically move across States, if the invoice doesn’t show the recipient’s address, the supply is treated as intra-State, and CGST + SGST apply.

Examples on Place of Supply of Goods – Section 10 IGST Act

Case	Supplier Location	Buyer (Bill-to)	Movement of Goods	Movement Terminates at	Address on Invoice	Clause Applied	Place of Supply (POS)
1	Gujarat	Maharashtra (Registered)	✅ Yes	Maharashtra	✅ Yes	Clause (a)	Maharashtra
2	Gujarat	Tamil Nadu (Unregistered)	✅ Yes	Tamil Nadu	✅ Yes	Clause (ca) (overrides a)	Tamil Nadu
3	Gujarat	Tamil Nadu (Unregistered)	✅ Yes	Tamil Nadu	❌ No	Clause (ca) (overrides a)	Gujarat

 

Examples on Place of Supply of Goods – Section 10 IGST Act

Case	Supplier Location	Buyer (Bill-to)	Movement of Goods	Movement Terminates at	Address on Invoice	Clause Applied	Place of Supply (POS)
4	Gujarat	Maharashtra (Registered)	❌ No	Gujarat	✅ Yes	Clause (c)	Gujarat
5	Gujarat	Rajasthan (Unregistered)	❌ No	Gujarat	✅ Yes	Clause (ca) (overrides c)	Rajasthan
6	Gujarat	Rajasthan (Unregistered)	❌ No	Gujarat	❌ No	Clause (ca) (overrides c)	Gujarat

 

Circular No. 209/3/2024 GST dated 26.06.2024

Place of supply of the goods (particularly being supplied through e-commerce platform) to unregistered persons where billing address is different from the address of delivery of goods

Mr. A (unregistered person) located in X State places an order on an e-commerce platform for supply of a mobile phone, which is to be delivered at an address located in Y State. Mr. A, while placing the order on the e-commerce platform, provides the billing address located in X State. 

In such a scenario, what would be the place of supply of the said supply of mobile phone, whether the State pertaining to the billing address i.e. State X or the State pertaining to the delivery address i.e. State Y?

ANSWER :  As per the provisions of section 10(1)(ca) discussed above, the place of supply of goods shall be the address of delivery of goods recorded on the invoice i.e. State Y in the present case where the delivery address is located.  

---

Clarification on Place of Supply – Advertising Sector (Circular No. 203/15/2023)

Case (i) and (ii):

Point	Case (i) –	Case (ii) –
	Grant of Space/Right	Ad Display Service
What’s supplied?	Space or right to use space	Visibility/exposure service
Who occupies the space?	Advertising company	Vendor
Legal nature	Linked to immovable property	Pure service
POS determined by	Section 12(3)(a)	Section 12(2)
POS result	Where the hoarding is located	- If recipient is registered ➝ Location of recipient - If recipient is unregistered ➝ Location of recipient as per invoice, otherwise location of supplier

 

---

Exemptions from GST

Entry 66A + Circular No. 234/28/2024 GST dated 11.10.2024 - 

Affiliation Services

Affiliation refers to the process by which an educational board, council, or university evaluates whether a school or college meets certain standards (infrastructure, faculty, finances, etc.) to operate under its banner and offer recognized courses or programs.

• Clarified that affiliation is not related to admission or exams

Provider	Recipient	Type	GST?	Circular/Entry
University	College	Affiliation	✅ Taxable	Circular No. 234/28/2024
Board/Council	Govt School	Affiliation	❌ Exempt	Entry 66A
Board/Council	Private School	Affiliation	✅ Taxable	Circular No. 234/28/2024

 

Gov School includes - Central Government, State Government, Union Territory, local authority

---

Entry 9E – Services by Ministry of Railways to Individuals

Exempt from GST:

 

Entry 9F – Inter-departmental Services within Railways

---

Circular No. 190/02/2023 – GST on Accommodation by Armed Forces Messes

---

Circular No. 177/09/2022 - Hiring of Non-A/C Contract Carriages – GST Clarification

Some businesses hire non-air-conditioned buses or vans to transport employees to and from work. The question is whether such services are exempt under GST.

 

---

Composite Supply by GTA – Circular No. 234/28/2024

Goods Transport Agencies (GTAs) often perform additional services along with transport, such as:

• Loading / unloading
• Packing / unpacking
• Transshipment
• Temporary warehousing

The question is: Are these services separately taxable, or are they part of the GTA service?

✅ CBIC Clarification:

Ancillary or incidental services provided in the course of transportation of goods by road by a GTA shall be treated as part of a composite supply

• The principal supply = transportation of goods
• Other services are naturally bundled and in conjunction with the transport

➡️ Tax treatment = as applicable to transportation of goods (principal supply)

• Whether the GTA issues a single invoice or separates charges for each component does not change the nature of supply.

• As long as services are part of the same transport contract, they are considered composite supply.

❌ When Are Ancillary Services Taxable Separately?

If services like loading/unloading, warehousing, or packing are:

• ✅ Not provided in the course of transportation of goods and are invoiced separately

---

Entry 3B – Exemption for Services Provided to Governmental Authority

✅ Exempt Services (When Provided to a Governmental Authority):

---

Entry 12 – Renting of Residential Dwelling

Renting of residential dwelling for use as residence is exempt from GST when provided:

• To an unregistered person
• Or to a registered person who qualifies under Explanation 1

Explanation 1

• •  is a proprietor of a proprietorship concern
  • The property is rented in his personal capacity
  • The dwelling is used as his own personal residence
  • The rental is not booked as business expense

Explanation 2

• Exemption under entry 12 does not apply to 
  • accommodation services for students in student residences
  • accommodation services provided by Hostels, Camps, Paying Guest accommodations and the like. 

 

Entry 12A – Accommodation Service for Long-Term Stay

✅ Exempt When All 3 Conditions Are Met:

1. Value of supply ≤ ₹20,000 per person per month
2. Stay is for ≥ 90 continuous days
3. Supplied as accommodation service (e.g., hostel, dorm, etc.)

✔️ This is mainly for long-term affordable stays like for working professionals or students

---

Time of Supply

GST Clarification – Time of Supply under HAM Model (NHAI Projects) [Circular No. 221/15/2024-GST dated 26.06.2024]

What is the HAM Model? (Hybrid Annuity Mode)

Under HAM:

• NHAI awards a single contract for both:
• Construction of the National Highway, and
• Operation & Maintenance (O&M) for a defined period (usually 15–17 years)
• Payment is made by NHAI in installments spread across several years

➡️ This model falls under Design, Build, Operate, and Transfer (DBOT) framework.

 The entire project is to be treated as a single continuous supply of service under Section 2(33) of the CGST Act, 2017

 Time of Supply (ToS) Rules Applicable in HAM Contracts

 As it's a continuous supply of service, Section 13(2)/13(5) of CGST Act applies.

 

Interest Component in Annuity Installments

If annuity installments paid by NHAI include an interest component, That interest must be included in the taxable value, as per Section 15(2)(d) of the CGST Act.

---

Input Tax Credit

Section 16(4) – Time Limit for Availing ITC

5 Cut-off date for availing ITC on any invoice or debit note is:

 

✅ You can take ITC only up to the earlier of these two dates.

 Section 16(4) + RCM from Unregistered Suppliers – Time Limit Clarified - Circular No. 211/5/2024

 When you receive supplies from unregistered persons, and you’re liable to pay GST under Reverse Charge Mechanism (RCM):

• Who issues the invoice? ? The recipient must issue it under Section 31(3)(f)
• But: Which Financial Year (FY) should be considered for the ITC claiming deadline under Section 16(4)?
  • The FY of the actual supply?
  • Or the FY in which you (the recipient) issue the invoice?

Example:

 

• Supply Relevant FY = 2023–24 | Self- Invoice FY = 2024–25
• 16(4) limit - ITC can be claimed till 30 Nov 2025 or annual return filed date whichever is  earlier 

ICAI Clarification on Section 16(6) – Revoked Registration & ITC Eligibility

What’s the Issue?

• If your GST registration is cancelled which you challenge and get the cancellation revoked
• During this time, 
  • you may receive invoices and want to claim ITC later.

  • you cannot file returns for that period.

• But the normal ITC time limit under Section 16(4) may expire while your registration is inactive.
• So you might lose ITC just because you couldn’t file the return.

Example for Absolute Clarity:

 

So your 16(4) limit was 30 Nov 2024 … but you were not eligible to fill up return and claim ITC as your registration was cancelled on 1st Oct 2024, hence as per 16(6) is the registration is revoked on 15th Jan 2025 so you can file a return within next 30 days and claim the ITC even after the 16(4) deadline. 

---

ITC on Demo Vehicles – Clarified by Circular 231/25/2024

Background Issue:

Section 17(5)(a) of the CGST Act blocks ITC on motor vehicles for transportation of persons with ≤13 persons (including driver), except in certain specified cases.

One of the key exceptions [sub-clause (A)] is:

ITC is allowed if the motor vehicle is used for making further supply of such motor vehicles (i.e., resale). Hence Dealers of cars could get ITC on the cars they sold.

What Was the Confusion?

Dealers purchase demo vehicles to:

• Provide test drives
• Showcase features to potential buyers
• Promote sales

But they don't sell the demo car itself immediately.

So, the question arose:

❓ Are demo vehicles considered to be used “for further supply of such motor vehicles”?

✅ Clarification by CBIC:

✔️ Yes — demo vehicles are used for further supply, indirectly promoting sale of the same kind of vehicles.

Therefore:

✅ ITC on demo vehicles is NOT blocked under Section 17(5)(a)

---

Clarification by CBIC – Circular 219/13/2024:

✅ ITC is NOT restricted on ducts and manholes used in Optical Fiber Cable Networks

✅ Why ITC is Allowed:

1. They qualify as “plant and machinery”:
   • Ducts and manholes are essential components of OFC infrastructure
   • They form part of the system used to transmit telecommunication signals
   • Used in the course of business for making outward supply of telecom services
2. They are not excluded from the definition of plant and machinery:
   • As per Explanation to Section 17, "plant and machinery" excludes:
     • Land
     • Buildings or civil structures
     • Telecommunication towers
     • Pipelines laid outside factory premises
   • ✔️ Ducts and manholes are not any of these ➝ ✅ So they are included

---

Tax Invoice; Credit and Debit Notes

E-Invoicing Applicability to Government Departments Registered for TDS (Section 51) - Circular No. 198/10/2023

The Issue:

Is a supplier (who crosses the e-invoicing turnover threshold) required to generate e-invoices when making supplies to:

• Government Departments
• Local Authorities
• PSUs
• Government Agencies
  which are registered solely for the purpose of deducting TDS under Section 51?

Supplies made to such Government entities (registered only for TDS purposes)

➡️ Must be e-invoiced by suppliers exceeding the e-invoicing turnover threshold, as these entities qualify as registered persons under GST.

---

Utilization of GST Ledgers – Circular 172/04/2022

 

---

Wrong Availment and Reversal of IGST ITC – Interest Applicability under Section 50(3) - Circular No. 192/04/2023

If IGST credit is wrongly availed and later reversed should we only check the balance in IGST ledger, or should we also consider CGST + SGST balances?

 ✅ CBIC Clarification:

Since IGST liability can be paid using ITC from IGST, CGST, or SGST,
➡️ You must consider the total ITC available in the Electronic Credit Ledger (ECL) — across IGST + CGST + SGST — combined, not just IGST head.

Example:

 

But if combined ITC balance dropped to ₹70,000 for any day before reversal:

➡️ ✅ Interest applies on ₹30,000 for that period (i.e., the utilized portion)

---

Tax Deduction at Source and Collection of Tax at Source

TDS Under GST (Section 51) 

Who has to deduct TDS under GST?

There are 4 categories of such people/entities:

 

1. Boards, authorities, or bodies that are:

• • Created by law (Act of Parliament or State) or
  • Set up by any Govt., and
  • Govt has 51% or more control or equity

2. Societies made by Govt or local authority
3. Public Sector Undertakings (PSUs)
4. ✅ NEW: 

Any registered person who buys metal scrap  falling under Chapters 72 to 81 in the First Schedule to the Customs Tariff Act, 1975 from another registered person

➡️ If you buy scrap, you have to deduct TDS now

❌ When TDS is NOT Required (Exemptions):

1. PSU to PSU - No TDS
2. No TDS among clause (a), (b), (c) and (d) except (d-4)

---

Steps to determine whether ECO is liable to collect tax at source  

---

Returns