53rd GST Council Meeting – Clarifications Issued By CBIC

The 53^rd Goods and Services Tax (GST) Council meeting was held on 22^nd June 2024, which made several key recommendations with the objective to promote ease of doing business and reduce protracted litigation. In line with these recommendations, the Central Board of Indirect Taxes and Customs (CBIC) has issued certain circulars which seek to clarify some of the recommendations made. We have explained below the key circulars and its impact.

1. Circular No 210/4/2024 – relating to import of services between related person where Indian recipient is eligible to full input tax credit
   • Import of services from a related entity outside India is considered as a supply, even in cases where there is no consideration involved (Entry 4 of Schedule 1 to CGST Act, 2017). This provision resulted in issuance of notices for discharging GST (under reverse charge) by attributing certain activities of the overseas related entity as a service being rendered to the Indian related