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CircularNo.236/30/2024-GST
F.No.CBIC-190354/149/2024-TO(TRU-II)-CBEC
GovernmentofIndia
MinistryofFinance
DepartmentofRevenue
(TaxResearchUnit)
NorthBlock,NewDelhi
Datedthe11
th
October2024
To,
ThePrincipalChiefCommissioners/PrincipalDirectorsGeneral,
TheChiefCommissioners/DirectorsGeneral,
ThePrincipalCommissioners/CommissionersofCentralExcise&CentralTax
Subject:Clarificationregardingthescopeof“asis/asis,whereisbasis”mentionedin
theGSTCircularsissuedonthebasisofrecommendationoftheGSTCouncilinits
meetings
InstanceswerebroughttothenoticeoftheBoardpertainingtotheprevailingdoubts
amongthefieldformations/tradeasregardsthescopeofregularizationon“asis”or“asis,
whereisbasis”videvariousGSTCircularsissuedforclarificationregardingapplicableGST
ratesandappropriateclassificationofspecifiedgoodsorserviceorbothonthebasisof
recommendationoftheGSTCouncilinitsvariousmeetings.
2. TheGSTCouncilinits54
th
Meetingheldon9
th
September2024hasrecommended
issuanceofclarificationtoclarifytheintentbehindtheregularizationdoneinthepast
meetings.Therefore,thisCircularisbeingissuedinexerciseofpowerunderSection168of
CGSTAct2017toclarifyscopeof“asis”or“asis,whereisbasis”.
3. CircularshavebeenissuedbasedonrecommendationoftheGSTCouncilwherein
GSTnon-payment/short-paymentsforpastperiodhavebeenregularized“Asis”orAsis,
whereisbasis”incertaincasesforsupplyofgoodsorservicesorboth.Regularizationforthe
pastperiodhasbeendone,ontherecommendationsoftheCouncil,insituations,suchas,
wheregenuinedoubtshavearisenastherearetwocompetingentrieswithdifferentratesin
thenotificationsorissueshavearisenduetodiverseinterpretationresultinginasituation

wheresomesuppliershavepaidalowerrateofGST(includingnilrateonaccountofan
exemptionentry)andsomesuppliershavepaidahigherrateofGST.Ithasalsobeenclarified
thatwheretaxpayershadpaidatthehigherGSTrate,insuchsituationstheyshallnotbe
entitledtoanyrefund.
4. Thephrase'asiswhereis’isgenerallyusedinthecontextoftransferofpropertyand
meansthatthepropertyisbeingtransferredinitscurrentcondition,whateverthiscondition
happenstobeandthetransfereeofpropertyhasaccepteditwithallitsfaultsanddefects,
whetherornotimmediatelyapparent.InthecontextofGST,thephrase‘regularizedonasis
whereis’basismeansthatthepaymentmadeatlowerrateorexemptionclaimedbythe
taxpayershallbeacceptedandnorefundshallbemadeiftaxhasbeenpaidatthehigherrate.
TheintentionoftheCouncilistoregularizepaymentatalowerrateincludingnilratedueto
thetaxpositiontakenbytaxableperson,asfulldischargeoftaxliability.Thetaxpositionof
ataxablepersonisreflectedinthereturnsfiledbythepersonwheretheapplicablerateoftax
(orrelevantexemptionentry)onatransaction/supplyisdeclared.
5. Thus,incaseswherethemattershavebeenregularizedon“asis”or“asis,whereis
basis”,incaseoftwocompetingratesandtheGSTispaidatlowerofthetworates,oratnil
ratewhereoneofthecompetingrateswasnilundernotificationentry,bysomesuppliers
whileothersuppliershavepaidathigherrate,paymentatlowerrateshallbetreatedastax
fullypaidfortheperiodthatisregularized.
Illustration1:
Inasituationwherecertaintaxpayershavepaid5%GSTonsupplyof“X”,while
somehavepaid12%andtheGSTCouncilrecommendstoreducetherateto5%
prospectivelyandregularizethepaston“asiswhereisbasis”whichisnotifiedon
1.12.2023,thismeansthatfortheperiodpriorto1.12.2023,the5%GSTpaidbytax
payerwillbetreatedastaxfullypaidandtheywouldnotberequiredtopayduty
differentialof7%between5%and12%.Forthosetaxpayerswhohavepaid12%
GST,norefundwouldbeallowed.
Illustration2:
Inasituationwherecertaintaxpayershavepaid5%GSTonsupplyof“X”while
somehavepaidnildutyduetothegenuinedoubtthattherewasanexemptionentry

for“X”,andtheGSTCouncilrecommendstoclarifythattheapplicablerateis5%
andtoregularizethepaston“asiswhereisbasis”,inviewofprevailinggenuine
doubts,whichisnotifiedon1.12.2023,thismeansthatfortheperiodpriorto
1.12.2023,nonpaymentofGSTanddeclaringsuchtransactionsasexemptedsupply
intheirreturnbythetaxpayerwillbetreatedasfulldischargeoftaxliabilityand
theywouldnotberequiredtopaydutydifferentialof5%betweenNiland5%.For
thosetaxpayerswhohavepaid5%,norefundwouldbemade.
Illustration3:
Inasituationwheretheinterpretationalissueisbetween5%and12%ratesand
sometaxpayershavepaid5%,othershavepaid12%whilecertaintaxpayershave
notpaidGSTonsupplyof“X”,andtheGSTCouncilrecommendstoclarifythatthe
applicablerateis12%andregularizethepaston“asiswhereisbasis”whichis
notifiedon1.12.2023,thismeansthatfortheperiodpriorto1.12.2023,the5%GST
paidbytaxpayerwillbetreatedastaxfullypaidandtheywouldnotberequiredto
paydutydifferentialbetween5%and12%.Forthosetaxpayerswhohavepaid12%,
norefundwouldbemade.However,theregularizationwouldnotapplytosituations
wherenotaxhasbeenpaid.Insuchcases,theapplicabletaxi.e.12%shallbe
recovered.
6. Accordingly,suitableinstructionsshallbepassedontothefieldformationsunder
yourcharge.
7. Difficulty,ifany,intheimplementationofthiscircularmaybebroughttothenotice
oftheBoard.
Yoursfaithfully,
(LimatulaYaden)
JointSecretary(TRU)
Tel:011-23092687