Q.42 I have query regarding payment of interest for the excess claim of ITC. whether the taxable value for the excess claim of ITC should be considered after deducting the 5% of provisional itc allowed or the total excess claim without deducting provisional itc. 

Ans. Ideally, provisional ITC should be reduced from the wrongly availed ITC.

However, calculation needs to be reviewed properly whether 5% provisional ITC is calculated on the wrongly availed ITC or not.

Q.41 Hall marking charges statutorily to be charged in bill to the customer, whether GST will be paid @ 18% or 3% as bundled service, while jewelry is taxed @ 3% ?  

Ans. It is to be seen from the point of view whether the supply is mixed or composite or both are independent supply.

In case jewelry if hallmark charges are inseparable from the Jewelry or in other words, without hallmark charges if Jewelry cannot be sold in that case it shall be considered as composite supply and tax rate of Jewellery shall be applicable. In case both are separate components, then the respective rate of Jewelry and Hallmark Charges shall apply.

Q.40 Can you please share any CBIC instruction for GST refund under limitation period / SC judgment applicability on GST Refund application after Bombay HC/Madras HC Decision ? 

Ans. The Hon’ble Supreme Court took the suo-moto cognizance and vide its order dated 10.01.2022 held to restore the limitation extension upto 28.02.2022, therefore the validity period of 90 days shall be counted from 01.03.2022.

The Hon’ble High Court of Madras and Bombay also referred that the period of limitation as extended by the Apex Court shall apply on refund cases too. Therefore, by applying the same ratio, the period of limitation in case of refund application shall also be extended overriding the effect of a circular issued by the department.