This circular provides clarifications on several interpretational issues under GST to ensure uniform application of law.

It clarifies that supply of used vehicles, seized or confiscated goods, old and used goods, waste and scrap by Government departments is a taxable supply under GST. Where such supplies are made to registered persons, tax is payable by the recipient under reverse charge. However, where supplies are made to unregistered persons, the concerned Government department is required to obtain registration and pay GST, subject to the registration provisions of the CGST Act.

On levy of penalty under section 73(11), it is clarified that such penalty is not applicable merely for delayed filing of Form GSTR-3B where tax along with interest has been paid. In such cases, a general penalty under section 125 may be imposed after following due process.

The circular clarifies that debit notes or credit notes issued under section 142(2) of the CGST Act for price revisions relating to pre-GST supplies will attract GST at the applicable GST rate and not the pre-GST rate.

With regard to notification No. 50/2018-Central Tax relating to TDS, it is clarified that the provisions apply only to authorities or bodies set up by law or established by Government where 51% or more ownership or control vests with the Government.

It is also clarified that the value for GST purposes shall include tax collected at source (TCS) under the Income Tax Act, as it forms part of the consideration payable. Lastly, for detention of goods under section 129, the consignor or consignee will be treated as owner if valid documents accompany the goods; otherwise, ownership is to be determined by the proper officer.