GST Circulars and Orders Summary

Notification Number

Date

Subject

Description

Clarification on treatment of secondary or post-sale discounts under GST:

• No need to reverse Input tax credit when suppliers issue financial or commercial credit notes that do not reduce the original tax liability or transaction value.
• Post-sale discounts given by manufacturers to dealers are not considered when the dealer sells on a principal-to-principal basis, and there is no agreement between the manufacturer and the end customer.
• If the manufacturer has an agreement with the end customer and funds a price reduction via credit notes to the dealer, the discount is an inducement and becomes part of the consideration for the dealer’s supply to the end customer.
• General post-sale discounts are not applicable to separate services provided by the dealer. GST is payable only when the dealer provides specified promotional or support services under a clear agreement with defined consideration (for example, advertising, co-branding, special sales drives, exhibitions, customer support).
• Administrative actions: Issue suitable trade notices and report any implementation difficulties to the Board.

Review, revision and appeal for O-I-Os passed by Common Adjudicating Authorities (CAA) in DGGI cases

• Scope: Standardises authorities for review, revision, and appeals against O-I-Os issued by CAAs (Addl./Joint Commissioners posted in specified Commissionerates).
• Reviewing authority (Sec. 107): Principal Commissioner/Commissioner of Central Tax under whom the CAA is posted.
• Revisional authority (Sec. 108): Same Principal Commissioner/Commissioner.
• Appellate authority (Sec. 107): Commissioner (Appeals) having territorial jurisdiction over the Principal Commissioner/Commissioner under whom the CAA is posted, per Notification 02/2017-Central Tax.
• Department representation: Principal Commissioner/Commissioner under whom the CAA is posted is the respondent authority; may authorise an officer to represent.
• Process aid: Reviewing/revisional authority may seek comments from the relevant DGGI formation before making a decision.
  Administrative: Issue trade notices; report implementation issues to the Board.

• Quoting of Document Identification Number (DIN) on communications issued via the GST common portal
  Communications generated and served through the GST common portal carry a verifiable Reference Number (RFN) that can be validated on the portal, displaying details such as RFN date, document date, module, type of communication, and issuing office.
• Under Section 169(1)(d) of the CGST Act and related instructions, summaries/notices and orders must be served electronically on the common portal (e.g., DRC-01, DRC-07).
• Since portal communications already bear an RFN, quoting a DIN is unnecessary; RFN-bearing communications are valid.
• Earlier guidance in Circulars 122/41/2019-GST (dated 05.11.2019) and 128/47/2019-GST (dated 23.12.2019) is modified to this extent.

Section 128A benefit under the CGST Act

1. Coverage: Section 128A with Rule 164 grants relief for Section 73 demands for FY 2017–18 to 2019–20.
2. Payment eligibility: Tax paid via GSTR-3B before 1st Nov 2024 counts toward the 128A benefit, even if paid before notice or order, subject to verification.
3. Procedure: Payments are through the electronic liability register; it applies even where amounts were already paid via GSTR-3B.
4. Mixed-period notices: Pay the portion for periods covered by 128A and file Form SPL-01/SPL-02 to drop the appeal for that portion; the appellate authority proceeds for the remaining period. Point 6 in the Table at para 4 of Circular 238/22/2024-GST is withdrawn to this extent.
5. Administrative: Issue trade notices and report implementation issues to the Board

247/2025

14/02/2025

Clarification regarding GST rates & classification (goods) based on the 55th GST Council meeting recommendations

1. Pepper of genius piper, whether green(fresh), white or black is covered under HSN 0904 and attracts 5% GST.
2. Agriculturists supplying dried pepper from their plantations are not liable to take registration to the extent of supply of produce out of cultivation of land and is exempt from GST.
3. Agriculturists supplying raisins are not liable to be registered and are exempt from GST.
4. Ready to eat popcorn which is mixed with salt and spices are classifiable under HS 21069099 
   1. Attracts 5% GST if other than pre-packaged and labelled vide S.No. 101A of Schedule I of N/N 1/2017-CT(Rate)
   2. Attracts 12% GST if other than pre-packaged and labelled vide S.No. 46 of Schedule II of N/N 1/2017-CT(Rate)

1. Popcorn mixed with sugar would be classified under HS 17049090 and attract 18% GST.
2. Fly ash bricks, aggregates and blocks are classifiable under HS 6815 and attract 12% GST.
3. Articles of cement, of concrete or of artificial stone, whether or not reinforced are classifiable under HS 6810 and attract 18% GST
4. Autoclaved aerated concrete (AAC) blocks containing more than 50% fly ash content will fall under HS 6815 and attract 12% GST.

246/2025

30/01/2025

Clarification on applicability of late fee for delay in furnishing of Form GSTR-9C

Clarification regarding the conditional waiver of late fees for delayed filing of Form GSTR-9C.

The scheme restricts the late fee to delays associated with filing Form GSTR-9, provided Form GSTR-9C is submitted by 31 March, 2025.

Taxpayers who have filed form GSTR-9 (annual return) but failed to file for GSTR-9C (reconciliation statement) for the FY 2017-18, 2018-19, 2019-20, 2020-21, 2021-22 or 2022-23 are provided relaxation from the payment of late fees.

No refund of late fee will be provided if the amount is already paid in respect of delayed furnishing of Form GSTR-9C for the said financial years.

245/2025

28/01/2025

Clarifications regarding applicability of GST on certain services.

1. GST on penal charges being levied by the Regulated Entities (REs).
2. GST exemption is available to RBI regulated Payment Aggregators (PAs) in relation to settlement of an amount, up to Rs. 2000 in a single transaction, transacted through credit card, debit card, charge card or other payment card services.
3. GST  on  the  supply  of  research  and  development  services by  Government  Entities  against  grants  received  from  the Government Entities is regularised for the period 01.07.2017 to 09.10.2024, on ‘as is where is’basis. 
4. DDA cannot be treated as local authority under GST law.
5. GST  on  Reverse  Charge  (RCM)  basis  on  renting  of immovable  property  other  than  residential  dwelling (commercial  property) by unregistered person to registered person under composition levy is hereby regularized for the period from 10.10.2024 to 15.01.2025 on ‘as is where is’ basis

244/2025

28/01/2025

Regularising payment of GST on co-insurance premium apportioned by the lead insurer to the co-insurer and on ceding /re-insurance commission deducted from the reinsurance premium paid by the insurer to the reinsurer.

GST on the following activities or transactions was regularized for the period 01.07.2017 to 31.10.2024, on ‘as is where is’ basis:

1. 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 co-insurance agreements.
2. 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.