In a clarification for consulates, embassies and diplomatic locations based in India, the Finance Ministry on Friday advised them to maintain consistency in reporting \u2018place of supply\u2019 in invoices and goods and services tax returns filed by them to claim refunds under the indirect tax regime.<\/p>\n
The advisory comes in the wake of discrepancies being found by the GST authorities in the refund applications filed by diplomatic missions and embassies and the details in the invoices of their purchases.<\/p>\n
Unique Identification Number is a 15-digit unique number allotted to any specialised agency of the United Nations Organisation or any Multilateral Financial Institution and Organisation notified under the United Nations (Privileges and Immunities) Act, 1947, consulate or embassy of foreign countries. The GST-related laws enable such entities to claim refund of GST paid by them. The UIN entities can claim refunds by filing invoice level data in their FORM GSTR-11 on the common portal.<\/p>\n
The Finance Ministry said there are common discrepancies which have been noticed by GST Authorities while processing refund applications.<\/p>\n
Citing an example, the ministry said many UIN entities while filling invoice data have been reporting their \u2018place of supply\u2019 as the state where they are registered instead of the place of supply as reflected in the invoice.<\/p>\n
\u201cFor example, it was observed that embassies registered in Delhi have been consistently declaring their place of supply as \u201cNew Delhi\u201d even on hotel service consumed in the state of Maharashtra for which the place of supply is Maharashtra,\u201d the ministry said.<\/p>\n
Under the GST-related laws, place of supply determines the chargeability of CGST or SGST or IGST on an invoice. Barring few exceptions, if the location of the supplier and the place of supply are in the same state then CGST and SGST are charged on an invoice and if the location of the supplier and the place of supply are in separate said, then IGST is charged.<\/p>\n
\u201cIt is advised that while reporting the \u201cplace of supply\u201d and charging of CGST \/ SGST or IGST on an invoice, the details shall be exactly as per the details mentioned in the invoice issued by the supplier of goods or services. Wrong reporting of invoice level data in FORM GSTR-11 or in the statement of invoice submitted may lead to delay in processing \/ rejection of refund claims,\u201d the ministry said.<\/p>\n
Earlier in April this year, the government had advised suppliers\/vendors\/e-commerce operators to record the UIN of the embassies\/missions\/consulates or UN organisations on the tax invoice. It had said the supply to foreign diplomatic missions\/UN organisations is like any other Business to Consumer (B2C) supply and will not have any additional impact on the supplier\u2019s tax liability and that recording of UIN while making such supplies by the suppliers will enable foreign diplomatic missions\/UN organisations to claim refund of the taxes paid by them in India.<\/p>\n","protected":false},"excerpt":{"rendered":"
In a clarification for consulates, embassies and diplomatic locations based in India, the Finance Ministry on Friday advised them to maintain consistency in reporting \u2018place of supply\u2019 in invoices and goods and services tax returns filed by them to claim refunds under the indirect tax regime. The advisory comes in the wake of discrepancies being […]<\/p>\n","protected":false},"author":1,"featured_media":46797,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[410],"tags":[],"class_list":["post-46796","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/46796","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/comments?post=46796"}],"version-history":[{"count":1,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/46796\/revisions"}],"predecessor-version":[{"id":46798,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/46796\/revisions\/46798"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/media\/46797"}],"wp:attachment":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/media?parent=46796"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/categories?post=46796"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/tags?post=46796"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}