28.12.2022: Circulars issued by CBIC for effecting the recommendation of the 48th GST Council meeting


The CBIC has issued various clarifications on 27.12.2022, This is following the recommendations of the 48th GST Council Meeting held on 17th December, 2022.

However, the notifications to give effect the decisions taken in the meeting in respect to the changes in GST rates, reverse charge mechanism, decriminalization of certain offences under the GST law are yet to be issued.

The circulars are as under:

  1. Circular No. 183/15/2022-GST

The CBIC issued clarification to deal with difference in Input Tax Credit (ITC) availed in FORM GSTR-3B as compared to that detailed in FORM GSTR-2A for FY 2017-18 and 2018-19. This is a major step in curbing litigation going on in GST as various judgements are available which held that mapping of ITC with GSTR 2A in the initial stage of implementation of GST is not applicable as the GSTR 2A was made operational from September 2018 only.

These guidelines are clarificatory in nature. Further, the instructions will be applicable only to the ongoing proceedings in scrutiny/audit/ investigation, etc. for FY 2017-18 and 2018-19 and not to the completed proceedings. However, these instructions will apply in those cases for FY 2017-18 and 2018-19 where any adjudication or appeal proceedings are still pending. 

The Circular can be accessed at https://taxo.online/wp-content/uploads/2022/12/cir-183-15-2022-cgst.pdf

  1. Circular No. 184/16/2022-GST

The Board has issued the clarification regarding the entitlement of input tax credit where the place of supply is determined in terms of the proviso to sub section (8) of section 12 of the Integrated Goods and Services Tax Act, 2017.

Vide this circular, the Board clarifies the issues w.r.t. the supply of services by way 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. This will help in reducing the ambiguities in claiming ITC pertaining to supply made in the form of export of goods through transporters. The clarifications are as under:

  • These supply of services would be considered as inter-State supply in terms of sub-section (5) of section 7 of the IGST Act and IGST would be chargeable, since  the location  of  the  supplier  is  in  India  and  the place  of supply  is  outside 
  • The recipient of service of transportation of goods shall be eligible to avail input tax credit in respect of the IGST so charged by the supplier, subject to the fulfilment of other conditions laid down in section 16 and 17 of the CGST Act.
  • The supplier of service shall report place of supply of such service by selecting State code as ‘96-Foreign Country’ from the list of codes in the drop-down menu available on the portal in FORM GSTR-1.

The Circular can be accessed at https://taxo.online/wp-content/uploads/2022/12/cir-184-16-2022-cgst.pdf

  1. Circular No. 185/17/2022-GST

The CBIC issued clarification with regard to applicability of provisions of section 75(2) of Central Goods and Services Tax Act, 2017 and its effect on limitation.

This is to clarify regarding the time limit within which the proper officer is required to re-determine the amount of tax payable considering notice to be issued under sub-section (1) of section 73, specially in cases where time limit for issuance of order as per sub-section (10) of section 73 has already been over. Further. regarding the methodology for computation of such amount payable by the noticee, deeming the notice to be issued under sub-section (1) of section 73.

The Circular can be accessed at https://taxo.online/wp-content/uploads/2022/12/cir-185-17-2022-cgst.pdf

  1. Circular No. 186/18/2022-GST

The CBIC issued clarification on the various issue pertaining to GST Law with respect to:

  1. Taxability of No Claim Bonus offered by Insurance companies
  • It is clarified that there is no supply provided by the insured to the insurance company in form of agreeing to the obligation to refrain from the act of lodging insurance claim during the previous year(s)and No Claim Bonus cannot be considered as a consideration for any supply provided by the insured to the insurance company.
  • Further, clarified that 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.

ii. Applicability of e-invoicing w.r.t an entity

It is clarified that the exemption from mandatory generation of e-invoices in terms of NN. 13/2020- Central Tax, is for the entity as a whole and is not restricted by the nature of supply being made by the said entity.

The Circular can be accessed at https://taxo.online/wp-content/uploads/2022/12/cir-186-18-2022-cgst.pdf


  1. Circular No. 187/19/2022-GST

The CBIC has issued clarification regarding the treatment of statutory dues under GST law in respect of the taxpayers for whom the proceedings have  been  finalised under Insolvency and Bankruptcy Code, 2016.

The Circular can be accessed at https://taxo.online/wp-content/uploads/2022/12/cir-187-19-2022-cgst.pdf

  1. Circular No. 188/20/2022-GST

The CBIC through this circular has prescribed the manner of filing an application for refund by the unregistered persons, in cases where the contract/agreement for supply of services of construction of flat/ building has been cancelled or where long-term insurance policy has been terminated and the time limit for issuance of credit note has elapsed.

A new functionality has been made available on the common portal which allows unregistered persons to take a temporary registration and apply for refund under the category ‘Refund  for Unregistered  person’. Also, Rule 89 of the CGST Rules, 2017 has been amended and statement 8 has been inserted in FORM GST RFD-01 vide by Notification No. 26/2022-Central Tax dated 26.12.2022, to  provide for the documents required to be furnished along with the application of refund by the unregistered persons and the statement to be uploaded along with the said refund application.

Vide this Circular, the Board clarifies on the following:

  • Filing of refund application
  • Relevant date for filing of refund
  • Minimum refund amount

The Circular can be accessed at https://taxo.online/wp-content/uploads/2022/12/cir-188-20-2022-cgst.pdf

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