11A. Notwithstanding anything contained in this Act, if the Government is satisfied that –– 

(a) a practice was, or is, generally prevalent regarding levy of central tax (including non-levy thereof) on any supply of goods or services or both; and 

(b) such supplies were, or are, liable to, –

(i) central tax, in cases where according to the said practice, central tax was not, or is not being, levied, or

(ii) a higher amount of central tax than what was, or is being, levied, in accordance with the said practice,

the Government may, on the recommendation of the Council, by notification in the Official Gazette, direct that the whole of the central tax payable on such supplies, or, as the case may be, the central tax in excess of that payable on such supplies, but for the said practice, shall not be required to be paid in respect of the supplies on which the central tax was not, or is not being levied, or was, or is being, short-levied, in accordance with the said practice.

Anivesh (ALC) Comments:

• Section 11A allows the government to issue a notification exempting total CGST or excess CGST on certain supplies of goods or services if the following conditions are met:

1. A generally prevalent practice existed or exists regarding the levy or non-levy of central tax.
2. The supplies in question were or are liable to central tax, either:

• When no central tax was or is being levied according to the practice, or
• When a higher amount of central tax was or is being levied according to the practice.

If these conditions are satisfied, the government may, upon recommendation from the Council, direct that total CGST or excess CGST need not be paid for those supplies.

Issues:

• What should be classified as general prevalent practice?
• Whether the Notification will exempt future supplies also or only rationalize past transactions?
• Whether refund will be allowed to taxpayers who has paid the higher tax?

(3) In case of supplies in respect of which tax is paid or liable to be paid on reverse charge basis, the time of supply shall be the earlier of the following dates, namely:––

(a) the date of payment as entered in the books of account of the recipient or the date on which the payment is debited in his bank account, whichever is earlier; or

(b) the date immediately following sixty days from the date of issue of invoice or any other document, by whatever name called, in lieu thereof by the supplier:

Provided that where it is not possible to determine the time of supply under clause (a) or clause (b), the time of supply shall be the date of entry in the books of account of the recipient of supply:

3) In case of supplies in respect of which tax is paid or liable to be paid on reverse charge basis, the time of supply shall be the earlier of the following dates, namely:––

(a) the date of payment as entered in the books of account of the recipient or the date on which the payment is debited in his bank account, whichever is earlier; or

(b) the date immediately following sixty days from the date of issue of invoice or any other document, by whatever name called, in lieu thereof by the supplier, in cases where invoice is required to be issued by the supplier; or

(c) the date of issue of invoice by the recipient, in cases where invoice is to be issued by the recipient:

Provided that where it is not possible to determine the time of supply under clause (a) or clause (b) or clause (c), the time of supply shall be the date of entry in the books of account of the recipient of supply:

Anivesh (ALC) Comments:

• Section 13(3) deals with time of supply of services on which RCM is applicable. Section 31(3)(f) mandates the issuance of self-invoice in case of where RCM is payable on the supplies received from unregistered person as the supplier in such cases is not required to issue the invoice as per the GST Act.
• Now, clarity has been provided in Section 13(3) that wherever supplier is required to issue the invoice, time of supply shall be earlier of clause (a) or clause (b) and wherever recipient is required to the issue the invoice, time of supply shall be earlier of clause (a) or clause (c).

Issues:

• Which date is to be considered if self-invoice is raised after the prescribed period i.e. due date of invoice or actual date of invoice?
• What if the self-invoice is not issued at all?

(5) Notwithstanding anything contained in sub-section (4), in respect of an invoice or debit note for supply of goods or services or both pertaining to the Financial Years 2017- 18, 2018-19, 2019-20 and 2020-21, the registered person shall be entitled to take input tax credit in any return under section 39 which is filed upto the thirtieth day of November, 2021.

(6) Where registration of a registered person is cancelled under  section  29  and  subsequently  the  cancellation  of registration is revoked by any order, either under section 30 or pursuant to any order made by the Appellate Authority or the Appellate Tribunal or court and where availment of input tax credit in respect of an invoice or debit note was not restricted  under  sub-section  (4)  on  the  date  of  order  of cancellation of registration, the said person shall be entitled to take the input tax credit in respect of such invoice or debit note for supply of goods or services or both, in a return under section 39,

(i) filed upto thirtieth day of November following the financial year to which such invoice or debit note pertains or furnishing of the relevant annual return, whichever is earlier; or

(ii) for the period from the date of cancellation of registration or the effective date of cancellation of registration, as the case may be, till the date of order of revocation of cancellation of registration, where such return is filed within thirty days from the date of order of revocation of cancellation of registration,

whichever is later.”. 

Anivesh (ALC) Comments:

• Relief has been provided to the taxpayers where the ITC was denied solely on the ground that the credit has been taken after the due date as per Section 16(4).

• Such relief has been provided from FY 2017-18 to FY 2020-21 on the condition that the ITC should have been availed upto 30^th November 2021.

• Further, sub-section (6) has been inserted to provide relief to those taxpayers who could not avail the ITC as per the timelines of Section 16(4) because of cancellation of GST registration.

• As per proposed sub-section (6), if the taxpayer was eligible to claim the ITC as per Section 16(4) on the date of order of cancellation of GST registration, then such ITC should be allowed in a return under Section 39:

• By the 30th of November of next FY to which the invoice or debit note pertains, or by the date of furnishing the relevant annual return, whichever is earlier; or
• For the period from the date of cancellation of registration to the date of the order revoking the cancellation, if the return is filed within 30 days from the date of the revocation order.

• A lot of pending litigations on this point will be settled with such beneficial amendments.

Issue:

• Section 16(5) is not covered in Section 16(6). Thus, cases getting covered under Section 16(5) but not under Section 16(4) will not get the benefit of Section 16(6).

(5) Notwithstanding anything contained in sub-section (1) of section 16 and subsection (1) of section 18, input tax credit shall not be available in respect of the following, namely:-

….

(i) any tax paid in accordance with the provisions of sections 74, 129 and 130.

(5) Notwithstanding anything contained in sub-section (1) of section 16 and subsection (1) of section 18, input tax credit shall not be available in respect of the following, namely:-

….

(i) any tax paid in accordance with the provisions of section 74 in respect of any period upto Financial Year 2023-24

Anivesh (ALC) Comments:

• ITC of any tax paid under Section 74 for the period upto FY 2023-24 shall not be allowed. The said amendment has been introduced in light of the proposed Section 74A.
• Further, reference to Section 129 and 130 has been removed as the said section only prescribes penalty and not tax.

Issue:

It is important to note that although a limit up to FY 2023-24 has been introduced for Section 74, the reference to proposed Section 74A has not been included in clause (i) of Section 17(5). This raises the question: If tax is paid under the proposed Section 74A, which involves allegations of fraud, wilful misstatement, etc., can ITC be allowed in such cases?

(2) The proper officer may, in such manner and within such period as may be prescribed, by order, either revoke cancellation of the registration or reject the application:

Provided that the application for revocation of cancellation of registration shall not be rejected unless the applicant has been given an opportunity of being heard.

(2) The proper officer may, in such manner and within such period as may be prescribed, by order, either revoke cancellation of the registration or reject the application:

Provided that the application for revocation of cancellation of registration shall not be rejected unless the applicant has been given an opportunity of being heard.

Provided further that such revocation of cancellation of registration shall be subject to such conditions and restrictions, as may be prescribed.

Anivesh (ALC) Comments:

• The Government has the power to prescribe the condition on the basis of which the registration of the taxpayer will be revoked.

(3) Notwithstanding anything contained in sub-sections (1) and (2)––

…

(f) a registered person who is liable to pay tax under sub-section (3) or sub-section (4) of section 9 shall issue an invoice in respect of goods or services or both received by him from the supplier who is not registered on the date of receipt of goods or services or both;

(3) Notwithstanding anything contained in sub-sections (1) and (2)––

…

(f) a registered person who is liable to pay tax under sub-section (3) or sub-section (4) of section 9 shall, within the period as may be prescribed, issue an invoice in respect of goods or services or both received by him from the supplier who is not registered on the date of receipt of goods or services or both;

Anivesh (ALC) Comments:

• Government through rules will introduce the period within which the self-invoice u/s 31(3)(f) will be required to be issued.
• The said amendment co-relates to Section 13(3) where the time of supply will be determined based on date of issue of self-invoice.
• Further, it has been clarified that a person registered solely for the purpose of TDS will be treated as unregistered person for purposes of Section 31.

“(3) Every registered person required to deduct tax at source under section 51 shall electronically furnish a return for every calendar month of the deductions made during the month in such form and manner and within such time as may be prescribed:

Provided that the said registered person shall furnish a return for every calendar month whether or not any deductions have been made during the said month.”.

Anivesh (ALC) Comments:

• Earlier, TDS deductors were required to file return in GSTR-7 within 10 days from the end of the month. Now, the time limit to file the said return will be prescribed under Rules.
• Further, TDS deductors are mandated to file even the nil returns.

(3) Subject to the provisions of sub-section (10), a registered person may claim refund of any unutilised input tax credit at the end of any tax period:

Provided that no refund of unutilised input tax credit shall be allowed in cases other than––

(i) zero rated supplies made without payment of tax;

(ii) where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies (other than nil rated or fully exempt supplies), except supplies of goods or services or both as may be notified by the Government on the recommendations of the Council:

Provided further that no refund of unutilised input tax credit shall be allowed in cases where the goods exported out of India are subjected to export duty:

Provided also that no refund of input tax credit shall be allowed, if the supplier of goods or services or both avails of drawback in respect of central tax or claims refund of the integrated tax paid on such supplies.

“(15) Notwithstanding anything contained in this section, no refund of unutilised input tax credit on account of zero-rated supply of goods or of integrated tax paid on account of zero rated supply of goods shall be allowed where such zero rated supply of goods is

subjected to export duty.”.

Anivesh (ALC) Comments:

• The 2nd proviso to sub-section (3) of Section 54 has been omitted, and a new sub-section (15) is proposed to be introduced.
• Previously, the refund of unutilized ITC was not allowed only for goods that were exported and subject to export customs duty. However, under the proposed amendment, such restriction has been added to refund of IGST paid as well.
• Further, now zero-rated supplies will be covered instead of only export of goods.

Anivesh (ALC) Comments:

The proposed changes aim to align the CGST Act with current practices under the Central Excise Act and the Customs Act, thereby enhancing the administrative efficiency and legal clarity of the GST framework.

Anivesh (ALC) Comments:

After the proposed Section 74A, applicability of Section 73 has been limited to FY 2023-24. After FY 2023-24, provisions of proposed Section 74A will be applicable.

Anivesh (ALC) Comments:

After the proposed Section 74A, applicability of Section 74 has been limited to FY 2023-24. After FY 2023-24, provisions of proposed Section 74A will be applicable.

(1)Where it appears to the proper officer that any tax has not been paid or short paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised, he shall serve notice on the person chargeable with tax which has not been so paid or which has been so short paid or to whom the refund has erroneously been made, or who has wrongly availed or utilised input tax credit, requiring him to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under section 50 and a penalty leviable under the provisions of this Act or the rules made thereunder:

Provided that no notice shall be issued, if the tax which has not been paid or short paid or erroneously refunded or where input tax credit has been wrongly availed or utilised in a financial year is less than one thousand rupees.

(2) The proper officer shall issue the notice under subsection (1) within forty-two months from the due date for furnishing of annual return for the financial year to which the tax not paid or short paid or input tax credit wrongly availed or utilised relates to or within forty-two months from the date of erroneous refund.

(3) Where a notice has been issued for any period under sub-section (1), the proper officer may serve a statement, containing the details of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for such periods other than those covered under subsection (1), on the person chargeable with tax.

(4) The service of such statement shall be deemed to be service of notice on such person under sub-section (1), subject to the condition that the grounds relied upon for such tax periods other than those covered under sub-section (1) are the same as are mentioned in the earlier notice.

(5) The penalty in case where any tax which has not been paid or short paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised,––

(i) for any reason, other than the reason of fraud or any wilful-misstatement or suppression of facts to evade tax, shall be equivalent to ten per cent. of tax due from such person or ten thousand rupees, whichever is higher;

(ii) for the reason of fraud or any wilful-misstatement or suppression of facts to evade tax shall be equivalent to the tax due from such person.

(6) The proper officer shall, after considering the representation, if any, made by the person chargeable with tax, determine the amount of tax, interest and penalty due from such person and issue an order.

(7) The proper officer shall issue the order under subsection (6) within twelve months from the date of issuance of notice specified in sub-section (2):

Provided that where the proper officer is not able to issue the order within the specified period, the Commissioner, or an officer authorised by the Commissioner senior in rank to the proper officer but not below the rank of Joint Commissioner of Central Tax, may, having regard to the reasons for delay in issuance of the order under sub-section (6), to be recorded in writing, before the expiry of the specified period, extend the said period further by a maximum of six months.

(8) The person chargeable with tax where any tax has not been paid or short paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised for any reason, other than the reason of fraud or any wilfulmisstatement or suppression of facts to evade tax, may, ––

(i)before service of notice under sub-section (1), pay the amount of tax along with interest payable under section 50 of such tax on the basis of his own ascertainment of such tax or the tax as ascertained by the proper officer and inform the proper officer in writing of such payment, and the proper officer, on receipt of such information shall not serve any notice under sub-section (1) or the statement under sub-section (3), as the case may be, in respect of the tax so paid or any penalty payable under the provisions of this Act or the rules made thereunder;

(ii) pay the said tax along with interest payable under section 50 within sixty days of issue of show cause notice, and on doing so, no penalty shall be payable and all proceedings in respect of the said notice shall be deemed to be concluded.

(9) The person chargeable with tax, where any tax has not been paid or short paid or erroneously refunded or where input tax credit has been wrongly availed or utilised by reason of fraud, or any wilful-misstatement or suppression of facts to evade tax, may, ––

(i) before service of notice under sub-section (1), pay the amount of tax along with interest payable under section 50 and a penalty equivalent to fifteen per cent. of such tax on the basis of his own ascertainment of such tax or the tax as ascertained by the proper officer and inform the proper officer in writing of such payment, and the proper officer, on receipt of such information, shall not serve any notice under sub-section (1), in respect of the tax so paid or any penalty payable under the provisions of this Act or the rules made thereunder;

(ii) pay the said tax along with interest payable under section 50 and a penalty equivalent to twenty-five per cent. of such tax within sixty days of issue of the notice, and on doing so, all proceedings in respect of the said notice shall be deemed to be concluded;

(iii) pay the tax along with interest payable thereon under section 50 and a penalty equivalent to fifty per cent. of such tax within sixty days of communication of the order, and on doing so, all proceedings in respect of the said notice shall be deemed to be concluded.

(10) Where the proper officer is of the opinion that the amount paid under clause (i) of sub-section (8) or clause (i) of sub-section (9) falls short of the amount actually payable, he shall proceed to issue the notice as provided for in subsection (1) in respect of such amount which falls short of the amount actually payable.

(11) Notwithstanding anything contained in clause (i) or clause (ii) of sub-section (8), penalty under clause (i) of subsection (5) shall be payable where any amount of self-assessed tax or any amount collected as tax has not been paid within a period of thirty days from the due date of payment of such tax.

(12) The provisions of this section shall be applicable for determination of tax pertaining to the Financial Year 2024- 25 onwards.

Explanation 1.––For the purposes of this section,––

(i) the expression “all proceedings in respect of the said notice” shall not include proceedings under section 132;

(ii) where the notice under the same proceedings is issued to the main person liable to pay tax and some other persons, and such proceedings against the main person have been concluded under this section, the proceedings against all the persons liable to pay penalty under sections 122 and 125 are deemed to be concluded.

Explanation 2.––For the purposes of this Act, the expression “suppression” shall mean non-declaration of facts or information which a taxable person is required to declare in the return, statement, report or any other document furnished under this Act or the rules made thereunder, or failure to furnish any information on being asked for, in writing, by the proper officer.

Anivesh (ALC) Comments:

• On recommendation of the GST council in the 53rd Council Meeting, a new Section 74A has been proposed to be inserted wherein the common time limit to issue show cause notice for fraud and non-fraud cases has been prescribed.
• Earlier, time limit to issue order was defined and the time limit to issue SCN was dependent upon the time limit to issue order.
• In the proposed Section, time limit to issue SCN has been defined as 42 months from the due date of annual return.
• Further, order is required to be issued within 1 year from the date of SCN.
• Joint Commissioner or any officer above that rank has the power to extend the time limit to issue order maximum upto 6 months by recording the reasons in writing.
• Earlier, wherever the amount was required to be paid within 30 days to get the benefit of interest, all such time limit has been increased to 60 days to take the benefit of reduced/ no penalty.

Anivesh (ALC) Comments:

This amendment is the effect of proposed Section 74A and the same is similar to Section 75(2) of the CGST Act.

(5) The Principal Bench and the State Bench shall hear appeals against the orders passed by the Appellate Authority or the Revisional Authority: Provided that the cases in which any one of the issues involved relates to the place of supply, shall be heard only by the Principal Bench.

Provided further that the matters referred to in subsection (2) of section 171 shall be examined or adjudicated only by the Principal Bench:

Provided also that the Government may, on the recommendations of the Council, notify other cases or class of cases which shall be heard only by the Principal Bench.

Sub-section(8): No appeal shall be filed under sub-section (1), unless the appellant has paid-

(a) in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him, and

(b) a sum equal to twenty per cent. of the remaining amount of tax in dispute, in addition to the amount paid under sub-section (6) of section 107, arising from the said order, subject to a maximum of fifty crore rupees, in relation to which the appeal has been filed.

Sub-section(8): No appeal shall be filed under sub-section (1), unless the appellant has paid-

(a) in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him, and

(b) a sum equal to ten per cent of the remaining amount of tax in dispute, in addition to the amount paid under sub-section (6) of section 107, arising from the said order, subject to a maximum of twenty crore rupees, in relation to which the appeal has been filed.

Anivesh (ALC) Comments:

• W.e.f. 01.08.2024, the date of filing an appeal before the GST Appellant Tribunal available to the taxpayer shall be 3 months from date of communication of order or date notified by the government whichever is later.
• Similarly, the Commissioner can file an appeal before the GST Appellant Tribunal within 6 months from the date of order or date notified by government whichever is later.
• The amount of pre-deposit to be paid for filing an appeal to the tribunal has been reduced from 20% of the tax under dispute to 10% of the tax in dispute. Further, the max pre-deposit has been reduced from Rs. 50 crores to Rs. 20 crores.

128A.  (1)  Notwithstanding anything to the contrary contained in this Act, where any amount of tax is payable by a person chargeable with tax in accordance with,––

(a) a notice issued under sub-section (1) of section 73 or a statement issued under sub-section (3) of section 73, and where no order under sub-section (9) of section 73 has been issued; or

(b) an order passed under sub-section (9) of section 73, and where no order under sub-section (11) of section 107 or sub-section (1) of section 108 has been passed; or

(c) an order passed under sub-section (11) of section 107 or sub-section (1) of section 108, and where no order under sub-section (1) of section 113 has been passed, 

pertaining to the period from 1st July, 2017 to 31st March, 2020, or a part thereof, and the said person pays the full amount of tax payable as per the notice or statement or the order referred to in clause (a), clause (b) or clause (c), as the case may be, on or before the date, as may be notified by the Government on the recommendations of the Council, no interest under section 50 and penalty under this Act, shall be payable and all the proceedings in respect of the said notice or order or statement, as the case may be, shall be deemed to be  concluded,  subject  to  such  conditions  as  may  be prescribed:

Provided that where a notice has been issued under sub- section (1) of section 74, and an order is passed or required to  be  passed  by  the  proper  officer  in  pursuance  of  the direction of the Appellate Authority or Appellate Tribunal or a court in accordance with the provisions of sub-section (2) of section 75, the said notice or order shall be considered to be a notice or order, as the case may be, referred to in clause (a) or clause (b) of this sub-section:

Provided further that the conclusion of the proceedings under this sub-section, in cases where an application is filed under sub-section (3) of section 107 or under sub-section (3) of section 112 or an appeal is filed by an officer of central tax under sub-section (1) of section 117 or under sub-section (1) of section 118 or where any proceedings are initiated under  sub-section  (1)  of  section  108,  against  an  order referred to in clause (b) or clause (c) or against the directions of the Appellate Authority or the Appellate Tribunal or the court referred to in the first proviso, shall be subject to the condition that the said person pays the additional amount of tax payable, if any, in accordance with the order of the Appellate Authority or the Appellate Tribunal or the court or the Revisional Authority, as the case may be, within three months from the date of the said order:

Provided also that where such interest and penalty has already been paid, no refund of the same shall be available.

(2)  Nothing contained in sub-section (1) shall be applicable in respect of any amount payable by the person on account of erroneous refund. 

(3)  Nothing contained in sub-section (1) shall be applicable in respect of cases where an appeal or writ petition filed by the said person is pending before Appellate Authority or Appellate Tribunal or a court, as the case may be, and has not been withdrawn by the said person on or before the date notified under sub-section (1).

(4)  Notwithstanding  anything  contained  in  this  Act, where any amount specified under sub-section (1) has been paid and the proceedings are deemed to be concluded under the said  sub-section,  no  appeal  under sub-section  (1)  of section 107 or sub-section (1) of section 112 shall lie against an order referred to in clause (b) or clause (c) of sub-section (1), as the case may be.

Anivesh (ALC) Comments:

• Amnesty scheme has been introduced in the law to provide relief to the taxpayers.
• Notices issued u/s 73 or any subsequent order passed thereunder in respect of the said notice can be settled by payment of only tax. Interest and penalty are not required to be paid.
• The said scheme is applicable only for notices/ orders issued for the period 1^st July 2017 to 31^st March 2020.
• If a notice was issued under Section 74(1) and a subsequent period order is passed by an authority as per Section 75(2), then such notice or order will be covered by this scheme.
• The said scheme will not apply in cases of erroneous refund or the cases of pending appeal or writ petition which has not been withdrawn by the notified date.
• No refund will be allowed where the interest and penalty has already been paid.

Issue:

• Whether entire amount in the notice is required to be paid in case the notices involve multiple issues or taxpayers can settle limited issues from single notice?

Notwithstanding anything to the contrary contained in this Act, the input tax credit on account of any services received prior to the appointed day by an Input Service Distributor shall be eligible for distribution as credit under this Act, within such time and in such manner as may be prescribed, whether the invoices relating to such services are

received prior to, on or after, the appointed day.

(2) The Central Government may, on recommendations of the Council, by notification, constitute an Authority, or empower an existing Authority constituted under any law for the time being in force, to examine whether input tax credits availed by any registered person or the reduction in the tax rate have actually resulted in a commensurate reduction in the price of the goods or services or both supplied by him.

Provided that the Government may by notification, on the recommendations of the Council, specify the date from which the said Authority shall not accept any request for examination as to whether input tax credits availed by any registered person or the reduction in the tax rate have actually resulted in a commensurate reduction in the price of the goods or services or both supplied by him.

Explanation.––For  the  purposes  of  this  sub-section, “request for examination” shall mean the written application filed  by  an  applicant  requesting  for  examination  as  to whether input tax credits availed by any registered person or the reduction  in the tax rate  have actually resulted  in a commensurate reduction in the price of the goods or services or both supplied by him.

Explanation 2.––For the purposes of this section, the expression  “Authority”  shall  include  the  “Appellate Tribunal”

Anivesh (ALC) Comments:

• The proposed amendment provides for transferring of anti-profiteering cases to Principal bench of GST Appellate Tribunal (GSTAT). At present, they are being heard by Competition Commission of India.
• Further, Council has also recommended the sun-set date of 01.04.2025 for receipt of any new application regarding anti-profiteering. The said power is now available with Central Govt.

9. Activity of apportionment of co-insurance premium by the lead insurer to the co-insurer for the insurance services jointly supplied by the lead insurer and the co-insurer to the insured in coinsurance agreements, subject to the condition

that the lead insurer pays the central tax, the State tax, the Union territory tax and the integrated tax on the entire amount of premium paid by the insured.

10. Services by insurer to the reinsurer for which ceding commission or the reinsurance commission is deducted from reinsurance premium paid by the insurer to the reinsurer, subject to the condition that the central tax, the State tax, the Union territory tax and the integrated tax is paid by the reinsurer on the gross reinsurance premium payable by the insurer to the reinsurer, inclusive of the said ceding

commission or the reinsurance commission.

Anivesh (ALC) Comments: The following activities have been incorporated in Schedule III therefore such activities shall not constitute as a supply under GST: -

• In case of co-insurance agreements where the risk is borne jointly by the lead insurer and co-insurer, the activity of apportionment of premium between the lead insurer and co-insurer shall be out of scope of supply if the insured has paid GST on the entire amount of premium.
• In case of re-insurance agreements, if the ceding commission is deducted from the re-insurance premium which is paid by the insurer to re-insurer and reinsurer pays GST on the gross reinsurance premium including ceding commission, then the services provided by insurer to reinsurer shall be out of scope of supply.

(4) The Government may, on the recommendation of the Council, and subject to such conditions, safeguards and procedures, by notification, specify-

(i) a class of persons who may make zero rated supply on payment of integrated tax and claim refund of the tax so paid;

(ii) a class of goods or services which may be exported on payment of integrated tax and the supplier of such goods or services may claim the refund of tax so paid.

(4) The Government may, on the recommendation of the Council, and subject to such conditions, safeguards and procedures, by notification, specify-

(i) a class of persons who may make zero rated supply on payment of integrated tax and claim refund of the tax so paid in accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules made thereunder

(ii) a class of goods or services or both, on zero rated supply of which, the supplier may pay integrated tax and claim the refund of tax so paid, in accordance with the provisions of section 54 of the Central Goods and

Services Tax Act or the rules made thereunder.

Anivesh (ALC) Comments:

• Earlier, the suppliers who has paid IGST on export of goods or services (except tobacco, pan masala etc.) were eligible to claim refund of such IGST paid as per the provisions of Section 54. However, inadvertently, SEZ supplies were missed to be included in the said provision.

After the amendment, not just exports but the zero-rated supplies as a whole are covered and IGST paid on such zero-rated supplies shall be eligible for refund.

• Refund of unutilized ITC cannot be claimed in case of zero-rated supply of goods where export duty is payable on such goods. Before the amendment, only export of such goods was covered.
• This amendment is only clarificatory in nature wherein the reference to Section 54 has been added.

Insertion of Section 74A at various places in the Act namely:

1. Sub-Section of Section 10
2. Section 21
3. Sub-Section of Section 35
4. Sub-Section of Section 49
5. Sub-Section of Section 50
6. Sub-Section of Section 51
7. Sub-Section of Section 61
8. Sub-Section of Section 62
9. Section 63
10. Sub-Section of Section 64
11. Sub-Section of Section 65
12. Sub-Section of Section 66
13. Sub-Section of Section 75
14. Sub-Section of Section 107
15. Section 127