1-11(8)-TAC/GST/Circular/2024 I/289317/2024

GOVERNMENT OF TRIPURA
OFFICE OF THE CHIEF COMMISSIONER OF STATE TAX
PANDIT NEHRU COMPLEX, GURKHABASTI
AGARTALA, TRIPURA WEST, PIN-799006.
Dated, Agartala, the / / 2024.

Circular No. 29/2024 – GST (State)

To
The Additional Commissioner of State Tax/
Joint Commissioner of State Tax /
Assistant Commissioner of State Tax (All)
Superintendent of State Tax (All)/
Inspector of State Tax (All)

Subject: Clarification regarding the scope of “as is / as is, where is basis” mentioned in the
GST Circulars issued on the basis of recommendation of the GST Council in its
meetings.

Madam / Sir,

The Government of India, Ministry of Finance, Department of Revenue (Tax Research

Unit) vide Circular No. 236/30/2024–GST dated 11th October, 2024 has issued a clarification
regarding the scope of “as is / as is, where is basis” mentioned in the GST Circulars issued on the
basis of recommendation of the GST Council in its meetings, in order to ensure uniformity in the
implementation of the provisions of law across the field formations, which is annexed herewith.

In exercise of powers conferred by section 168 of the Tripura State Goods and Services Tax
Act, 2017 (Tripura Act No. 9 of 2017) for the purpose of uniformity in the implementation of the
Act it is instructed to follow the guidelines issued vide Circular No. 236/30/2024–GST dated 11th
October, 2024 by the Government of India, Ministry of Finance, Department of Revenue (Tax
Research Unit).

Enclo.: Circular No. 236/30/2024–GST.

(VIVEK H.B, IAS)

Chief Commissioner of State Tax
Government of Tripura

Copy to:
1. The P.S. to the Secretary, Finance, Government of Tripura for favour of kind information to
the Secretary, Finance.
2. The Assistant Statistical Officer, Statistical Section, O/o the Commissioner of Taxes & Excise,
Agartala with request to upload the Circular in the Official website www.tripurataxes.nic.in.
3. Guard File.
1-11(8)-TAC/GST/Circular/2024 I/289317/2024

Circular No. 236/30/2024-GST

F. No. CBIC-190354/149/2024-TO(TRU-II)-CBEC
Government of India
Ministry of Finance
Department of Revenue
(Tax Research Unit)
North Block, New Delhi
Dated the 11th October 2024
To,

The Principal Chief Commissioners/ Principal Directors General,

The Chief Commissioners/ Directors General,
The Principal Commissioners/ Commissioners of Central Excise & Central Tax

Subject : Clarification regarding the scope of “as is / as is, where is basis” mentioned in
the GST Circulars issued on the basis of recommendation of the GST Council in its
meetings

Instances were brought to the notice of the Board pertaining to the prevailing doubts
among the field formations/trade as regards the scope of regularization on “as is” or “as is,
where is basis” vide various GST Circulars issued for clarification regarding applicable GST
rates and appropriate classification of specified goods or service or both on the basis of
recommendation of the GST Council in its various meetings.

2. The GST Council in its 54th Meeting held on 9th September 2024 has recommended
issuance of clarification to clarify the intent behind the regularization done in the past
meetings. Therefore, this Circular is being issued in exercise of power under Section 168 of
CGST Act 2017 to clarify scope of “as is” or “ as is, where is basis”.

3. Circulars have been issued based on recommendation of the GST Council wherein
GST non-payment/ short-payments for past period have been regularized “As is” or As is,
where is basis” in certain cases for supply of goods or services or both. Regularization for the
past period has been done, on the recommendations of the Council, in situations, such as,
where genuine doubts have arisen as there are two competing entries with different rates in
the notifications or issues have arisen due to diverse interpretation resulting in a situation
1-11(8)-TAC/GST/Circular/2024 I/289317/2024

where some suppliers have paid a lower rate of GST (including nil rate on account of an
exemption entry) and some suppliers have paid a higher rate of GST. It has also been clarified
that where taxpayers had paid at the higher GST rate, in such situations they shall not be
entitled to any refund.

4. The phrase 'as is where is’ is generally used in the context of transfer of property and
means that the property is being transferred in its current condition, whatever this condition
happens to be and the transferee of property has accepted it with all its faults and defects,
whether or not immediately apparent. In the context of GST, the phrase ‘regularized on as is
where is’ basis means that the payment made at lower rate or exemption claimed by the
taxpayer shall be accepted and no refund shall be made if tax has been paid at the higher rate.
The intention of the Council is to regularize payment at a lower rate including nil rate due to
the tax position taken by taxable person, as full discharge of tax liability. The tax position of
a taxable person is reflected in the returns filed by the person where the applicable rate of tax
(or relevant exemption entry) on a transaction/supply is declared.

5. Thus, in cases where the matters have been regularized on “as is” or “ as is, where is
basis”, in case of two competing rates and the GST is paid at lower of the two rates, or at nil
rate where one of the competing rates was nil under notification entry, by some suppliers
while other suppliers have paid at higher rate, payment at lower rate shall be treated as tax
fully paid for the period that is regularized.

Illustration 1:
In a situation where certain tax payers have paid 5% GST on supply of “X”, while
some have paid 12% and the GST Council recommends to reduce the rate to 5%
prospectively and regularize the past on “as is where is basis” which is notified on
1.12.2023, this means that for the period prior to 1.12.2023, the 5% GST paid by tax
payer will be treated as tax fully paid and they would not be required to pay duty
differential of 7% between 5% and 12%. For those tax payers who have paid 12%
GST, no refund would be allowed.

Illustration 2:
In a situation where certain tax payers have paid 5% GST on supply of “X” while
some have paid nil duty due to the genuine doubt that there was an exemption entry
1-11(8)-TAC/GST/Circular/2024 I/289317/2024

for “X”, and the GST Council recommends to clarify that the applicable rate is 5%
and to regularize the past on “as is where is basis”, in view of prevailing genuine
doubts, which is notified on 1.12.2023, this means that for the period prior to
1.12.2023, nonpayment of GST and declaring such transactions as exempted supply
in their return by the tax payer will be treated as full discharge of tax liability and
they would not be required to pay duty differential of 5 % between Nil and 5%. For
those tax payers who have paid 5%, no refund would be made.

Illustration 3:
In a situation where the interpretational issue is between 5% and 12% rates and
some taxpayers have paid 5 % , others have paid 12% while certain tax payers have
not paid GST on supply of “X”, and the GST Council recommends to clarify that the
applicable rate is 12% and regularize the past on “as is where is basis” which is
notified on 1.12.2023, this means that for the period prior to 1.12.2023, the 5% GST
paid by tax payer will be treated as tax fully paid and they would not be required to
pay duty differential between 5% and 12% . For those tax payers who have paid 12%,
no refund would be made. However, the regularization would not apply to situations
where no tax has been paid. In such cases, the applicable tax i.e. 12% shall be
recovered.

6. Accordingly, suitable instructions shall be passed on to the field formations under

your charge.

7. Difficulty, if any, in the implementation of this circular may be brought to the notice
of the Board.

Yours faithfully,

(Limatula Yaden)
Joint Secretary (TRU)
Tel: 011 -2309 2687