January, 2023 – Issue No. I


Recent developments and clarifications

1.  A new functionality has been made available on the common portal for unregistered persons to take a temporary registration and apply for refund under the category ‘Refund for Unregistered person’.
2. No Claim Bonus (NCB) is a permissible deduction under clause (a) of sub-section (3) of section 15 of the CGST Act  for the purpose of calculation of value of supply of the insurance services provided by the insurance company to the insured. Accordingly, where the deduction on account of No claim bonus is provided in the invoice issued by the insurer to the insured, GST shall be leviable on actual insurance premium amount, payable by the policy holders to the insurer, after deduction of No Claim Bonus mentioned on the invoice.
3. In case of transportation of goods, including by mail or courier, where the transportation of goods is to a place outside India, and where the supplier and recipient of the said supply of services are located in India, the place of supply is the concerned foreign destination where the goods are being transported.  It is interstate supply and IGST is applicable. Recipient is eligible for ITC. Supplier shall report it under state code ‘96-Foreign Country’ in GSTR-1.
4. Difference of ITC between GSTR-3B and GSTR-2A for 2017-18 and 2018-19. Difference exceeds Rs 5 lakhs, the registered person has to produce a certificate for the concerned supplier from the Chartered Accountant (CA) or the Cost Accountant (CMA), certifying that supplies in respect of the said invoices of supplier have actually been made by the supplier to the said registered person and the tax on such supplies has been paid by the said supplier in his return in FORM GSTR-3B.

The Indian Tax Advisors