Central Tax Circulars

CGST Circular 62/2018

To

The Principal Chief Commissioners / Chief Commissioners/ Principal
Commissioners/ Commissioner of Central Tax (All) /

The Principal Director Generals/ Director Generals (All).

Madam/Sir,

Subject: Levy of GST on Priority Sector Lending Certificates (PSLC) –
regarding

1) Representations have been received requesting to clarify the
following:

(i) Mechanism for discharge of tax liability on trading of Priority
Sector Lending
Certificate (PSLC) for the period 1.7.2017 to 27.5.2018.

(ii) GST rate applicable on trading of PSLCs.

2) The representations have been examined. With the approval of the GST
Implementation Committee of the GST Council, it is clarified that GST on
PSLCs for the period 1.7.2017 to 27.05.2018 will be paid by the seller
bank on forward charge basis and GST rate of 12% will be applicable on
the supply.

3) Difficulty, if any, in the implementation of this circular may be
brought to the notice
of the Board immediately.