Circular No.: 23/23/2017-GST (as amended by Corrigendum)
Date of Circular: 21st December 2017
Date of Corrigendum: 4th September 2018
Relevant Sections and Rules:
- Central GST Act, 2017:
- Section 35(1): Books of accounts at each place of business
- Section 168(1): Power to issue instructions for uniformity
Summary of Circular (As Amended):
This circular provides clarification on the maintenance of books of accounts by principals and auctioneers involved in the supply of tea, coffee, rubber, etc., especially through auctions held at different locations.
- Declaration of Additional Places of Business:
- Warehouses used for storing goods before auction must be declared as additional places of business by the principal, the auctioneer, and the buyer (if goods are to be stored post-auction).
- Maintenance of Books of Accounts:
- Though Section 35(1) requires maintaining books at each place, principals and auctioneers may maintain records at their principal place of business instead.
- They must intimate the jurisdictional proper officer in writing about this arrangement.
- Input Tax Credit (ITC) Eligibility:
- Principals and auctioneers are eligible to claim ITC on supplies made between them, subject to all other GST conditions.
- Corrigendum Update – Timing of ITC Claim:
- The original circular allowed ITC claim only if supply was made before the auction.
- The corrigendum modifies this to allow ITC whether supply occurs before or after the auction, provided goods are exclusively supplied through auction.
Source: Circular No.: 23/23/2017-GST (as amended by Corrigendum)
