Circular No. 71/45/2018-GST [C10-2FZ]

Representations have been received seeking clarification on certain issues under the GST laws. The same have been examined and the clarifications on the same are as below:

S. No Issue Clarification

1 Whether the amount required to be 1. It has been noted that while applying deposited as advance tax while taking for registration as a casual taxable registration as a casual taxable person person, the FORM GST REG-1 (S. (CTP) should be 100% of the estimated No. 11) seeks information regarding the gross tax liability or the estimated tax “estimated net tax liability” only and liability payable in cash should be not the gross tax liability. calculated after deducting the due 2. It is accordingly clarified that the eligible ITC which might be available amount of advance tax which a casual to CTP? taxable person is required to deposit while obtaining registration should be calculated after considering the due eligible ITC which might be available to such taxable person.

Circular No. 71/45/2018-GST

2. As per section 27 of the Central Goods 1. It is clarified that in case of long and Services Tax Act, 2017 (hereinafter running exhibitions (for a period more referred to as the said Act), period of than 180 days), the taxable person operation by causal taxable person is cannot be treated as a CTP and thus ninety days with provision for extension such person would be required to of same by the proper officer for a obtain registration as a normal taxable further period not exceeding ninety person. days. Various representations have been 2. While applying for normal received for further extension of the registration the said person should said period beyond the period of 180 upload a copy of the allotment letter days, as mandated in law. granting him permission to use the premises for the exhibition and the allotment letter/consent letter shall be treated as the proper document as a proof for his place of business.

3. In such cases he would not be required to pay advance tax for the purpose of registration.

4. He can surrender such registration once the exhibition is over.

3. Representations have been received 1. According to Section 21 of the regarding the manner of recovery of CGST Act where the ISD distributes excess credit distributed by an Input the credit in contravention of the Service Distributor (ISD) in provisions contained in section 20 of contravention of the provisions the CGST Act resulting in excess contained in section 20 of the CGST distribution of credit to one or more Act. recipients of credit, the excess credit so distributed shall be recovered from such recipients along with interest and penalty if any.

2. The recipient unit(s) who have received excess credit from ISD may deposit the said excess amount voluntarily along with interest if any by

Circular No. 71/45/2018-GST

using FORM GST DRC-03.

3. If the said recipient unit(s) does not come forward voluntarily, necessary proceedings may be initiated against the said unit(s) under the provisions of section 73 or 74 of the CGST Act as the case may be. FORM GST DRC-07 can be used by the tax authorities in such cases.

4. It is further clarified that the ISD would also be liable to a general penalty under the provisions contained in section 122(1)(ix) of the CGST Act.

2. It is requested that suitable trade notices may be issued to publicize the contents of this Circular.

3. Difficulty if any, in the implementation of this Circular may be brought to the notice of the Board. Hindi version will follow.