GST Update | Recent circulars-AAR's

Dear All,

 We are hereunder providing brief update on recent GST circulars & Advance Rulings as under:

  1. A) CGST Circular No-90/09/2019 GST dt.18thFebruary-2019

It has been brought to the notice of the CBIC that several taxpayers (specifically in the banking, insurance & telecom sectors)  are not mentioning the ‘Place of Supply’ along with the name of the State  in case of supply made in the course of inter-state trade or commerce in contravention of the CGST Rule 46, which mandates that the said details must be mentioned in the Tax invoice.

It is therefore, instructed that all registered taxpayers making supply of goods/ services or both in the course of inter-state trade or commerce shall specify the place of supply along with name of the State in the tax invoice. Contravention of any provisions of the Act or the Rules made there under attracts penal action under the provisions of sec.122 of 125 of CGST Act, 2018.

  1. B) CGST Circular No-89/08/2019 GST dt.18thFebruary-2019

The CBIC has issued instruction under the power conferred under sec.168 of the CGST Act, 2018 that the registered persons while making inter-state supplies to unregistered persons shall report the details of such supplies along with place of supply in table 3.2 of FORM GSTR-3B and table 7B of FORM GSTR-1 as mandated by law.

Contravention of any of the provisions of the Act or Rule made there under attract penal action under the provisions of sec.125 of the CGST Act,2018 which may extend to INR 25,000

  1. C) AAR: Merger of Proprietorship firm, un-utilized ITC balance of the firm can be transferred to the Company:Advance Ruling HAR/ HAAR/R/2018-19/02

In the above mentioned Advance Ruling given by Haryana Authority it was held that,

  1. a) Merger of a proprietorship firm as a going concern with a company is not a supply and hence it does not involve payment of GST on the fixed or current assets.
  2. b) further, un-utilized ITC balance of the firm can be transferred to the company which is taking over.

We request you to kindly take into consideration above updates.