TMI BlogClarification on various issue pertaining to GSTX X X X Extracts X X X X X X X X Extracts X X X X ..... , Government of India, New Delhi, has issued Circular No. 172/04/2022-GST, dated 06.07.2022 on the recommendations of the GST Council. Hence, following pari materia circular is issued:- Various representations have been received by GST Council seeking clarification on certain issues with respect to - i. refund claimed by the recipients of supplies regarded as deemed export; ii. interpretation of section 17(5) of the TNGST Act, 2017; iii. perquisites provided by employer to the employees as per contractual agreement; and iv. utilisation of the amounts available in the electronic credit ledger and the electronic cash ledger for payment of tax and other liabilities. 2. In order to clarify the issue and to ensure uniformity i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ITC so availed by the recipient of deemed export supplies would not be subjected to provisions of Section 17 of the TNGST Act, 2017. 2. Whether the ITC availed by the recipient of deemed export supply for claiming refund of tax paid on supplies regarded as deemed exports is to be included in the Net ITC for computation of refund of unutilised ITC under rule 89(4) rule 89 (5) of the TNGST Rules, 2017. The ITC of tax paid on deemed export supplies, allowed to the recipients for claiming refund of such tax paid, is not ITC in terms of the provisions of Chapter V of the TNGST Act, 2017. Therefore, such ITC availed by the recipient of deemed export supply for claiming refund of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dustry through the Press Note on Recommendations made during the 28 th meeting of the GST Council, dated 21.07.2018. It had been clarified that scope of input tax credit is being widened, and it would now be made available in respect of Goods or services which are obligatory for an employer to provide to its employees, under any law for the time being in force. 3. Accordingly, it is clarified that the proviso after sub-clause (iii) of clause (b) of sub-section (5) of section 17 of the TNGST Act is applicable to the whole of clause (b) of sub-section (5) of section 17 of the TNGST Act. 4. Whether the provisions of sub- clause (i) of clause (b) of sub- section (5) of section 17 of the TNG ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Perquisites provided by employer to the employees as per contractual agreement 5. Whether various perquisites provided by the employer to its employees in terms of contractual agreement entered into between the employer and the employee are liable for GST? 1. Schedule III to the TNGST Act provides that services by employee to the employer in the course of or in relation to his employment will not be considered as supply of goods or services and hence GST is not applicable on services rendered by employee to employer provided they are in the course of or in relation to employment. 2. Any perquisites provided by the employer to its employees in terms of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. Further, output tax in relation to a taxable person (i.e. a person who is registered or liable to be registered under section 22 or section 24 of the TNGST Act) is defined in clause (82) of section 2 of the TNGST Act as the tax chargeable on taxable supply of goods or services or both but excludes tax payable on reverse charge mechanism . 4. Accordingly, it is clarified that any payment towards output tax, whether self-assessed in the return or payable as a consequence of any proceeding instituted under the provisions of GST Laws, can be made by utilization of the amount available in the electronic credit ledger of a registered person . 5. It is further reiterated that as output tax does not include tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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