The Indian Government has clarified that supplies to foreign diplomatic missions and United Nations (UN) organisations will not have any additional impact on the businesses tax liability, said media reports. Amid reports of businesses showing 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 ,” the Finance Ministry said. "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," it added. 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.