IGST Payable
on Supply of PSLC (Priority Sector Lending Certificates) Traded Over e-Kuber Portal of RBI from Now Onwards, CGST and SGST
Payments Regularised
[Circular No. 93/12/2019-GST dated 8 March 2019]
Subject: Nature of Supply of Priority Sector Lending
Certificates (PSLC) – regarding
Representations have been received requesting to clarify
whether IGST or CGST/ SGST is payable for trading of PSLC by the banks on e-Kuber portal of RBI.
2. In this regard, it is stated that Circular No.
62/36/2018-GST dated 12.09.2018 was issued clarifying 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. Further,
Notification No. 11/2018-Central Tax (Rate) dated 28.05.2018 was
issued levying GST on PSLC trading on reverse charge basis from
28.05.2018 onwards to be paid by the buyer bank.
3. It is further clarified that
nature of supply of PSLC between banks may be treated as a supply of goods in
the course of inter-State trade or commerce. Accordingly, IGST shall be payable
on the supply of PSLC traded over e-Kuber portal of
RBI for both periods i.e 01.07.2017 to 27.05.2018 and
from 28.05.2018 onwards. However, where the bank liable to pay GST has already
paid CGST/SGST or CGST/UTGST as the case may be, such banks for payment already
made, shall not be required to pay IGST towards such
supply.
4. Difficulty, if any, in the implementation of this
circular may be brought to the notice of the Board
immediately.
F. No. 354/124/2018-TRU