Page 35 - GSTL_16 April 2020_Vol 35_Part 3

Novel Corona Virus (COVID-19) — Relief measures —
Challenges faced by registered persons in
implementation of provisions of GST Laws — Further
clarifications
Subject : Clarification in respect of certain challenges faced by the registered
persons in implementation of provisions of GST Laws - Regarding.
Circular No. 136/06/2020-GST, dated 3-4-2020 [2020 (35) G.S.T.L. C15]
had been issued to clarify doubts regarding relief measures taken by the
Government for facilitating taxpayers in meeting the compliance requirements
under various provisions of the Central Goods and Services Tax Act, 2017
(hereinafter referred to as the “CGST Act”) on account of the measures taken to
prevent the spread of Novel Corona Virus (COVID-19). It has been brought to
the notice of the Board that certain challenges are being faced by taxpayers in
adhering to the compliance requirements under various other provisions of the
CGST Act which also need to be clarified.
2. The issues raised have been examined and in order to ensure
uniformity in the implementation of the provisions of the law across the field
formations, the Board, in exercise of its powers conferred under section 168(1) of
the CGST Act hereby clarifies as under :

S. Issue Clarification
No.
1. An advance is received by a In case GST is paid by the supplier on
supplier for a Service advances received for a future event which
contract which subsequently got cancelled subsequently and for which
got cancelled. The supplier invoice is issued before supply of service, the
has issued the invoice before supplier is required to issue a “credit note”
supply of service and paid in terms of section 34 of the CGST Act. He
the GST thereon. Whether shall declare the details of such credit notes
he can claim refund of tax in the return for the month during which
paid or is he required to such credit note has been issued. The tax

GST LAW TIMES  16th April 2020  155