CBIC Issues Important Clarification on the Scope of “As Is / As Is, Where Is Basis” in GST Circulars Based on Recommendations from the 54th GST Council

By: Admin
October 12, 2024
Categories: 54th GST Council
4 Min Read

The Central Board of Indirect Taxes and Customs (CBIC), vide Circular No. 236/30/2024-GST dated October 11, 2024, has issued crucial clarifications on the scope of “as is / as is, where is basis” mentioned in various GST Circulars issued on the recommendation of the GST Council during its meetings.

Key Clarifications:

  1. Clarification on Regularization:
    The Board received instances of confusion about the scope of regularization on an “as is” or “as is, where is basis” related to GST rates and classifications. The 54th GST Council, in its meeting held on September 9, 2024, recommended issuing clarifications to address these doubts. The circular clarifies that taxpayers who have paid a lower GST rate (or claimed exemptions) in genuine cases will be considered as having fully discharged their tax liability. No refund will be given to those who have paid higher rates.
  2. Interpretation of “As Is, Where Is” in GST:
    In the context of GST, the term means that the taxpayer’s payments at the lower or nil rate, as declared in their returns, are treated as full payment. Suppliers who have paid at higher rates are not entitled to refunds.
  3. Examples to Illustrate Clarifications:

In cases where some taxpayers paid 5% GST and others paid 12% on the same supply, the GST paid at the lower rate will be considered fully discharged.

Where nil GST was claimed due to an exemption and others paid 5%, no further tax will be collected from those who paid nil, nor will refunds be made to those who paid 5%.

Conclusion:
The CBIC’s clarifications aim to ensure uniformity in the interpretation and implementation of GST regulations. Field officers are instructed to apply these guidelines effectively.

GSTCouncil #CBICUpdates #GSTRates #AsIsBasis #TaxCompliance #GSTCirculars #IndirectTax #GSTClarification #GSTIndia #TaxUpdates #FinanceRegulations

Share on Facebook Share on Twitter