Record diplomatic bodies UIN : Centre

Record diplomatic bodies UIN : Centre

Context

• The government has clarified that sales or supply to foreign diplomatic missions or UN organisations will not have any additional effect on the supplier’s tax liability
• Supplies of such nature must be recorded along with the Unique Identification Number (UIN) of the recipient.

What is Unique Identification Number (UIN)?

• Unique Identification Number, UIN, is a special class of GST registration for foreign diplomatic missions and embassies which are not liable to taxes in the Indian territory.
• Any amount of tax (direct or indirect) collected from such bodies is refunded back to them.

Why is the signification of UIN?

• This clarification follows several foreign diplomatic missions complaining that their suppliers are refusing to record their UIN during transactions.
• Recording of UIN will enable foreign diplomatic missions/UN organisations to claim refund of the taxes paid by them in India

What was the issue?

• Foreign diplomats posted in New Delhi have complained to the Ministry of External Affairs that the Goods and Services Tax regime has modified the tax-exempt status of the foreign missions
• The diplomats also complained that the UIN system infringed on the confidentiality of diplomatic practices and privacy of foreign diplomats posted in India.