From Our Bureau
NEW DELHI: The GST Council on Saturday prescried a procedure for refund of tax by the unregistered buyers in case of contract for supply of services, like construction of flat/house and long-term insurance policy is cancelled and the time period of credit note by the supplier is over.
It approved a circular to prescribe the procedure for the unregistered buyers filing applications for refund. It also granted in-principle approval for allowing unregistered suppliers and composition taxpayers to make intra-state supply of goods through e-commerce. The scheme will be implemented from 01.10.2023 to allow development of the portal and providing sufficient time for preparedness of the E-Commerce Operators (ECOs).
Also, sub-rule 1 of Rule 37 of CGST Rules 2017 is amended retrospectively from 01.10.2022 for reversal of input tax credit, proportionate to the amount not paid to the supplier.
A circular to be issued to clarify that No Claim Bonus offered by the insurance companies to the insured as admissible deduction for valuation of the insurance services.
COMPLIANCE: Proposal to conduct a pilot in State of Gujarat for Biometric-based Aadhaar authentication and risk-based physical verification of registration applicants. Amendment in rule 8 and rule 9 of CGST Rules, 2017 to be made to facilitate the same. This will help in tackling the menace of fake and fraudulent registrations.
PAN-linked mobile number and e-mail address (fetched from CBDT database) to be captured and recorded in FORM GST REG-01 and OTP-based verification to be conducted at the time of registration on such PAN-linked mobile number and email address to restrict misuse of PAN of a person by unscrupulous elements without knowledge of the said PAN-holder.
