22/09/2021
Dear all, sharing the update on the Circular 159, 160 and 161 issued by CBIC on 20 September 2021.
1. After the amendment in Section 16(4) delinking the issuance of debit notes with underlying invoices, the financial year in which debit note was issued shall be considered. Input tax credits availed post amendment (on debit notes issued either before or after the amendment) shall be governed by the amended provisions.
2. Physical copies of the tax invoice would not be required for the transport of goods when an IRN (e-invoice) has been generated.
3. Restrictions to claim a refund of unutilised input tax credits under proviso to Section 54(3) in case of export of goods shall be applicable only when export duty has been paid.
4. A branch or an agency or a representational office of a company in other territory and the company itself shall be treated as establishments of distinct persons, and supply between them will not be treated as export of services.
However, a company incorporated in India and a body corporate incorporated by or under the laws of any other country shall be treated as separate persons (legal entities) i.e. would not be considered as 'merely establishments of a distinct person' in accordance with Explanation 1 in Section 8 and may qualify as an export of service.
5. Clarification on the scope of intermediary services
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