CIRCULAR NO-62/2018-F. No. 354/124/2018-TRU-Levy of GST on Priority Sector Lending Certificate-reg.

CIRCULAR No.62/36/2018-GST

F. No. 354/124/2018-TRU
Government Of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs

New Delhi, 12th September, 2018


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


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

Representations have been received requesting to clarify the following:

(i) Mechanism for discharge of tax liability on trading of Priority Sector LendingCertificate (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 theperiod 1.7.2017 to 27.05.2018 will be paid by the seller bank on forward charge basis andGST rate of 12% will be applicable on the supply.

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

Yours Sincerely,

(Parmod Kumar)
Tele No.: 011-23092374


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