Key Highlights of the CGST Circular No. 90/09/2019
<p><span>In Circular No. 90/09/2019-GST, issued on February 18, 2019, the Indian Ministry of Finance addresses compliance with rule 46(n) of the CGST Rules, 2017. Here are the key highlights:</span></p><ol start="1"><li><span><strong>Mandatory Mention of Place of Supply</strong>: The Circular mandates that registered persons making inter-State supply of goods or services must include the place of supply and the name of the State in the tax invoice. This is crucial to ensure that tax accrues to the State where the consumption occurs.</span></li><li><span><strong>Impact on Banking, Insurance, and Telecom Sectors</strong>: The Circular specifically targets sectors such as banking, insurance, and telecom, where compliance has been lagging. Ensuring that the place of supply is mentioned in invoices will help align tax practices with the destination-based consumption tax principle.</span></li><li><span><strong>Penal Consequences for Non-Compliance</strong>: Failure to comply with these requirements may attract penal action under sections 122 or 125 of the CGST Act. This adds a layer of accountability for businesses to adhere to the invoicing norms.</span></li><li><span><strong>Trade Notices and Implementation</strong>: The Circular requests issuing suitable trade notices to publicize its contents and ensure uniform implementation across field formations.</span> <a href="https://cms.plasament.com/storage/nisha/circular-cgst-90.pdf">circular-cgst-90</a><br> </li></ol>