Summary of Circular No. 208/02/2024-GST

Circular No. 208/02/2024-GST​

Subject: Clarifications on Special Procedures for Manufacturers of Specified Commodities

Issued by: Central Board of Indirect Taxes and Customs (CBIC), GST Policy Wing

Date: June 26, 2024

Context:

  • Based on recommendations from the 50th GST Council meeting.
  • A special procedure for manufacturers of specified commodities was initially notified in Notification No. 30/2023 and subsequently revised in Notification No. 04/2024.

Clarifications Provided:

  1. Details of Packing Machines:
    • Make and model numbers are optional in Table 6 of FORM GST SRM-I.
    • Year of purchase can be used as the make number if the actual make is unavailable.
    • Machine number is mandatory; if not available, a numeric number can be assigned by the manufacturer.
  2. Electricity Consumption Rating:
    • Declare based on available machine specifications.
    • If unavailable, calculate and certify the consumption per hour through a Chartered Engineer using FORM GST SRM-III.
    • Upload the certificate with FORM GST SRM-I.
  3. Goods without MRP:
    • For goods without MRP (e.g., export goods), enter the sale price in Column 8 of Table 9 of FORM GST SRM-II.
  4. Qualifications of Chartered Engineers:
    • A Practicing Chartered Engineer with a certificate from the Institute of Engineers India (IEI) is eligible to certify under the special procedure.
  5. Applicability to SEZ Units:
    • The special procedure does not apply to manufacturing units in Special Economic Zones (SEZs).
  6. Manual Processes:
    • Not applicable to manual seamer/sealer or manual packing operations like post-harvest tobacco leaf packing.
  7. Multiple Machines in Manufacturing:
    • Report the machine used for final packing in Table 6 of FORM GST SRM-I.
  8. Job Work or Contract Manufacturing:
    • The special procedure applies to all involved in manufacturing, including job workers/contract manufacturers.
    • If the job worker/contract manufacturer is unregistered, the principal manufacturer is responsible for compliance.

Actions Requested:

  • Issue suitable trade notices to publicize this Circular.
  • Report any implementation difficulties to the Board