The 48th GST Council met today under the Chairmanship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman via virtual mode in New Delhi.
“There is no procedure for claim of refund of tax borne by the unregistered buyers in cases where the contract/agreement for supply of services, like construction of flat/house and long-term insurance policy, is cancelled and the time period of issuance of credit note by the concerned supplier is over”, the GST Council observed.
The Council also recommended an amendment in the Central Goods and Services Tax Rules, 2017, along with issuance of a circular, to prescribe the procedure for filing application of refund by the unregistered buyers in such cases.
The decision of the Customs, Excise and Service Tax Appellate Tribunal on the same matter in MSYS Tech India Private Limited vs The Commissioner of GST & CE [2020 TAXSCAN (CESTAT) 204] is noteworthy.
The meeting was also attended by the Union Minister of State for Finance Shri Pankaj Choudhary besides the Finance Ministers of States & UTs (with legislature) and senior officers of the Ministry of Finance & States/ UTs.
The GST Council has also made many other recommendations relating to changes in GST tax rates, measures for facilitation of trade and measures for streamlining compliances in GST.
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