The government on Monday clarified that supplies to foreign diplomatic missions and United Nations (UN) organisations will not have any additional impact on the businesses tax liability.
Amid reports of businesses showing an unwillingness to give their Good and Services Tax (GST) Unique Identify Number (UIN) while supplying to foreign diplomatic missions and UN bodies, the government said such supplies were like any other business-to-consumer (B2C) sale and hence would not attract any extra tax liability.
“It may be noted that sale or supply to foreign diplomatic missions/UN organisations is like any other B2C sale and will not have any additional effect on the supplier’s tax liability.
“Recording of UIN while making such sales will enable foreign diplomatic missions/UN organisations claim refund of the taxes paid by them in India. Therefore, it is advised that under no circumstance any supplier should decline to record the UIN of the diplomat/official on the tax invoice,” the Finance Ministry said in a statement.
The ministry said several representations had been received from foreign diplomatic missions/UN organisations regarding unwillingness of the vendors/suppliers to record the UIN while making sales to such missions/consulates or UN organisations.
“The diplomats/consulate staff may quote the same UIN as allotted to their missions/consulates or UN organisations while making any purchases,” it said.
UIN is a 15-digit unique number allotted to any specialised agency of the UN organisation or any multilateral financial institution and organisation notified under the United Nations (Privileges and Immunities) Act, 1947, Consulate or Embassy of foreign countries. The first two digits of the UIN denote state code where the diplomatic mission/ consulate/embassy is located.
“Search functionality for UIN is available on the GST common portal in “search taxpayer” option. On entering UIN and captcha, details of the diplomatic mission/consulate/embassy will be available,” the statement added.