Understanding of “As-is” / “As-is where is basis”

Notification No.: No. 236/30/2024 – GST

Notification Date: 11th October 2024

Relevant Act/Rule : Goods and Service Tax Act, 2017

Various GST circulars have used the term “As-Is” or “As-Is Where is Basis” while issuing clarifications regarding applicable GST rates and appropriate classification of specified goods or services or both.

 

Regularization for the past period has been done, on the recommendations of the Council.

 

In the context of GST, the phrase ‘regularized on as is where is’ basis means that the payment made at lower rate or exemption claimed by the taxpayer shall be accepted and no refund shall be made if tax has been paid at the higher rate.

 

The intention of the Council is to regularize payment at a lower rate including nil rate due to the tax position taken by taxable person, as full discharge of tax liability.

 

Thus, in cases where the matters have been regularized on “as is” or “ as is, where is basis”, in case of two competing rates and the GST is paid at lower of the two rates, or at nil rate where one of the competing rates was nil under notification entry, by some suppliers while other suppliers have paid at higher rate, payment at lower rate shall be treated as tax fully paid for the period that is regularized.

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