GST Circular No 236/2024
This circular clarifies the scope of the “asis/asis, where is” basis used in GST regularization as per the recommendations of the GST Council. The Council, in its 54th meeting, recommended issuing a clarification to resolve doubts regarding past GST payments where competing rates or exemptions led to discrepancies in GST payments.
Under this clarification, if GST has been paid at a lower rate or an exemption claimed (due to genuine doubt), it will be considered fully discharged for the past period, and no differential GST will be due. However, if a higher GST rate was paid, no refund will be provided. The term “”asis/asis, where is”” means the tax situation will be accepted in its current state, and no further adjustments will be made once regularized.
Examples include:
If some taxpayers paid 5% GST while others paid 12%, and the rate is later clarified to 5%, those who paid 5% will be considered as having fully discharged their tax, and no additional payment is required. No refund will be given to those who paid 12%.
If some taxpayers did not pay GST due to a genuine doubt, and the rate is clarified to 5%, the non-payment will be treated as full discharge of tax liability.
Instructions will be issued to the field formations for implementation, and any difficulties should be reported to the Board.
