The Central Council of Indirect Taxes and Customs (CBIC), upon issuing the clarification on GST-related issues, said that goods actually subject to export duties will be covered by the restrictions imposed by the refund of taxes. ITC accumulated.

Various representations were received from taxpayers and other stakeholders seeking clarification on certain issues relating to GST laws. The issues have been reviewed. In order to ensure uniformity in the implementation of the provisions of the law in all the formations on the ground, the Council, in the exercise of its powers conferred by article 168 (1) of the Central Law of 2017 on the goods and services tax, issued clarification.

“With effect from 01.01.2021, article 16 (4) of the CGST Law of 2017 has been amended see the 2020 finance law, in order to dissociate the date of issue of the debit note from the date of issue of the underlying invoice for the purpose of benefiting from the input tax credit ”, stated the CBIC.

The ITC’s enjoyment of debit notes under the amended provision is applicable from 01.01.2021. Therefore, for the use of the CII from 01.01.2021, with respect to debit notes issued before or after 01.01.2021, eligibility for the use of the CII will be governed by the amended provision of the ‘Article 16 (4), while any ITC used before 01.01.2021, in relation to debit notes, is governed by the provisions of Article 16 (4), as it existed before said modification on 01.01.2021.

For example, a a debit note dated 07.07.2021 is issued for the original invoice dated 16.03.2021. As the invoice relates to fiscal year 2020-21, the relevant fiscal year for the use of ITC under said invoice under Article 16 (4) of the CGST will be 2020-21. However, since the debit note was issued during the 2021-2022 fiscal year, the relevant fiscal year for the use of the ITC under that debit note will be 2021-2022 under the terms of the provision. amended from article 16 (4) of the CGST. Act.

In addition, the CBIC added, Rule 138A (1) of the CGST Rules, 2017 among others, provides that the person responsible for a means of transport must bear the invoice or the delivery or delivery slip, as the case may be; and a copy of the electronic waybill or electronic waybill number, either physically or mapped to a radio frequency identification device integrated into the conveyance in a manner that may be notified by the Commissioner.

It was clarified that only goods which are actually subject to export duties, i.e. on which export duties must be paid at the time of exportation, will be covered by the restriction imposed in under Article 54 (3) from the benefit of the reimbursement of CII accumulated. Goods which are not subject to any export duty and for which an NIL rate is specified in the Second Schedule of the Customs Tariff Act 1975 or which are fully exempt from payment of export duties by virtue of a notification customs or which are not covered by the second schedule of the Customs Tariff Act 1975, would not be covered by the restriction imposed under the first provision of Article 54 (3) of the CGST Act on for the reimbursement of accrued ITCs.

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