GOODS AND

SERVICE TAX
GST- ONE NATION ONE TAX
  Introduction to indirect taxes
 Constitutional provision for indirect taxes
Unit -1  Concept of supply

Following 


Composite and mixed supply
Services under GST
topics are  Levy and charge

covered:- 


Procedure for registration
Taxable person
 Payment of tax
PRIMARY SOURCE OF REVENUE FOR GOVERNMENT.

COLLECTION OF TAX IS USED TO PROVIDE VARIOUS

PUBLIC SERVICES AND FUFILL SOCIO ECONOMIC
OBJECTIVES

IT IS ALSO AN INSTRUMENT OF FISCAL POLICY TO

STIMULATE ECONOMIC GROWTH.
 Tax
is an enforced
contribution on people
enacted by legislative
authority.
TYPES OF

Direct
Taxes
Indirect
Imposed on a person Paid directly to govt

Eg. INCOME TAX

PROPERTY TAX
 Indirect tax is not directly levied on the
taxpayers. This tax is often levied on
goods and services which results in their
higher prices. This tax is basically levied on
the seller of goods or the provider of
service but in most cases, it gets passed
on to the end consumer and therefore, it
is generally the consumer paying the tax,
indirectly.
 Examples of indirect taxes in India include
service tax, central excise and customs
duty, value added tax (VAT) and most
importantly now Goods and Services Tax
(GST).
 Pay bill to owner which includes Owner pays service tax
Dine out at restaurant
service tax portion to govt.
 • Idea of adopting GST was first suggested by the Atal Bihari Vajpayee
Government . The state finance ministers formed an Empowered
Committee (EC) to create a structure for GST, based on their experience
2000 in designing State VAT.

• A task force that was headed by Vijay L. Kelkar the advisor to the finance
ministry, indicated that the existing tax structure had many issues that
2004 would be mitigated by the GST system.

• The finance minister set 1 April 2010 as the GST introduction date.
2006
 India’s new finance minister, Arun
Jaitley, submits the Constitution The Congress-led opposition finally
(122nd Amendment) Bill, 2014 in the agrees to the Government’s proposal
parliament. The opposition on the four broad amendments to
demanded that the Bill be sent for the Bill. The Bill was passed in the
discussion to the standing committee. Rajya Sabha.

2014 2015 Aug. 2016

The Lok Sabha passes the Constitution

Amendment Bill. Jaitley also
announced that petroleum would be
kept out of the ambit of GST for the
time being.

SEPTEMBER 2016: THE HONORABLE PRESIDENT OF INDIA

GIVES HIS CONSENT FOR THE CONSTITUTION
AMENDMENT BILL TO BECOME AN ACT .
 In 2017: Four Bills related to GST become Act, following
approval in the parliament and the President’s assent:
GST
Integrated GST Union Territory
Central GST Bill (Compensation
Bill GST Bill
to States) Bill

The GST Council also finalized on the GST rates and GST
rules. The Government declares that the GST Bill will be
applicable from 1 July 2017
The Constitution provides for clear
division of powers in respect of
The Constitution needs to be
taxation between the Centre and
amended to provide for giving
states. While the Centre at present
power to both the Centre and
does not have the right to tax sale
states in respect of GST, a single
of goods, except in the case of
tax on goods and services.
inter-state sale, states cannot levy
tax on services.
 Article 246 of the Indian Constitution, distributes
legislative powers including taxation, between the
Parliament of India and the State Legislatures;
 Schedule VII enumerates the subject matters on
which the Parliament and State Legislature have the
powers to make laws in three lists:
 List I (Union List);
 List II (State List); and
 List III (Concurrent list)
Article Article
246 A 279 A

Article
Article 366
269 A (12A)
GST is an Indirect Tax which has replaced many Indirect
Taxes in India. The Goods and Service Tax Act was passed
in the Parliament on 29th March 2017. The Act came into
effect on 1st July 2017; Goods & Services Tax Law in India is
a comprehensive, multi-stage, destination-based tax that is
levied on every value addition.

In simple words, Goods and Service Tax (GST) is an

indirect tax levied on the supply of goods and
services. This law has replaced many indirect tax laws
that previously existed in India.

GST is one indirect tax for the entire country.

 PRE- GST REGIME

So, before Goods

and Service Tax,
the pattern of tax
levy was:
Features of GST
1. Multi-stage
 There are multiple change-of-hands an item goes through alon
supply chain: from manufacture to final sale to the consumer.
 Let us consider the following case:
 Purchase of raw materials
 Production or manufacture
 Warehousing of finished goods
 Sale to wholesaler
 Sale of the product to the retailer
 Sale to the end consumer
Goods and Services Tax is levied on each of these stages which
makes it a multi-stage tax.
MULTI –STAGE TAX
Features of GST contd……
2.Destination-Based
 Consider goods manufactured in Maharashtra and are sold to the
final consumer in Karnataka. Since Goods & Service Tax is levied
at the point of consumption. So, the entire tax revenue will go to
Karnataka and not Maharashtra.
Features of GST contd……
3.Taxpayers with an aggregate turnover in a financial year up to
Rs.20 lakhs would be exempt from tax.
4.For special category states specified in Article 279A, the
threshold exemption shall be Rs. 10 lakhs.
5.Taxpayers making inter-State supplies or paying tax on reverse
charge basis shall not be eligible for threshold exemption.
6.Small taxpayers with an aggregate turnover in a financial year
up to Rs. 50 lakhs shall be eligible for composition levy.
Normally, the supplier of goods or services pays the tax on supply. In
the case of Reverse Charge, the receiver becomes liable to pay the
tax, i.e., the chargeability gets reversed.
A. Supply from an Unregistered dealer to a Registered dealer
 If a vendor who is not registered under GST, supplies goods to a
person who is registered under GST, then Reverse Charge would
apply. This means that the GST will have to be paid directly by the
receiver to the Government instead of the supplier.
B. Services through an e-commerce operator
 If an e-commerce operator supplies services then reverse charge will
be applicable to the e-commerce operator. He will be liable to pay
GST.
For example, UrbanClap provides services of plumbers, electricians,
teachers, beauticians etc. UrbanClap is liable to pay GST and collect it
from the customers instead of the registered service providers.
C. Supply of certain goods and services specified by CBEC
 CBEC has issued a list of goods and a list of services on which reverse
charge is applicable.
RCM is applicable on following goods
RCM is applicable on following Services
 Composition Scheme is a simple and easy scheme
under GST for taxpayers. Small taxpayers can get rid
of tedious GST formalities and pay GST at a fixed rate
of turnover. This scheme can be opted by any
taxpayer whose turnover is less than Rs. 1.5 crore*.
 A composition dealer cannot issue a tax invoice. This
is because a composition dealer cannot charge tax
from their customers. They need to pay tax out of
their own pocket.
 Hence, the composite dealer issues a Bill of Supply.
 The dealer should also mention “composition
taxable person, not eligible to collect tax on
supplies” at the top of the Bill of Supply.
F O L L O WI N G C H A R T E X P L A I N S T H E R A T E O F T A X O N T U R N O V E R
APPLICABLE FOR COMPOSITION DEALERS :
TAN – SUM3
 Features of GST contd……

7.An Integrated GST (IGST) would be levied and collected by the

Centre on inter-State supply of goods and services.
8.HSN code shall be used for classifying the goods under the GST
regime.
9.Taxpayers whose turnover is above Rs. 1.5 crores but below Rs. 5
crores shall use 2-digit code and the taxpayers whose turnover is
Rs. 5 crores and above shall use 4-digit code.
10. For Services, Service Accounting Codes (SAC) shall be used
Many countries in the world have a single unified GST system i.e. a
single tax applicable throughout the country. (National GST)

However, in federal countries like Brazil and Canada, a dual GST

system is prevalent

In India, a dual GST is proposed whereby a Central Goods and

Services Tax (CGST) and a State Goods and Services Tax (SGST) will
be levied on the taxable value of every transaction of supply of
goods and services
❖
Components in GST
Central Goods and Services Tax Act, 2017 (CGST): CGST levied and collected by
Central Government. It is a revenue source to the Central Government of India, on
intra-state supplies of taxable goods or services or both.
❖ State Goods and Services Tax Act, 2017 (SGST): SGST levied and collected by State
Governments/Union Territories with State Legislatures (namely Delhi and Pondicherry)
on intra-state supplies of taxable goods or services or both. It is a revenue source of
the respective State Government.
❖ Union Territory Goods and Services Tax (UTGST): UTGST levied and collected by Union
Territories without State Legislatures, on intra-state supplies of taxable goods or
services or both.
 Note: India is a Union of States. The territory of India comprises of the territories of the
States and the Union Territories. Currently, there are 29 States and 7 Union Territories; of
which, two (Delhi and Pondicherry) are having state Legislature.
❖ Integrated Goods and Services Tax Act, 2017 (IGST): IGST is a mechanism to monitor
the inter-state trade of goods and services and ensure that the SGST component
accrues to the Consumer State. It would maintain the integrity of ITC chain in inter-
state supplies. The IGST rate would broadly be equal to CGST rate plus SGST rate.
Central Taxes
 •Central Excise Duty
 •Additional Excise Duties
 •Excise Duty levied under the Medicinal and
Toiletries Preparation Act
 •Service Tax
 •Additional Customs Duty, commonly known as
Countervailing Duty (CVD)
 •Special Additional Duty of Customs - 4% (SAD)
 •Surcharges, and
 •Cesses.
 VAT including purchase tax
 •Entertainment tax (unless it is levied
by the local bodies).
 •Luxury tax
 •Taxes on lottery, betting and
gambling.
 •State Cesses and Surcharges in so
far as they relate to supply of goods
and services.
 •Entry tax not in lieu of Octroi
CENTRAL TAXES
•Customs Duty
•Excise on tobacco products and
petroleum products
STATE TAXES
•Excise duty on liquor
•Octroi
•Sales Tax on petroleum products
(Natural Gas is undecided)
•Stamp duty
•Taxes and duties on Electricity
HSN Example
 Supply is the most important
term under GST as the
TAXABLE EVENT in case of
GST is Supply of Goods or
Services or Both made for
consideration in course or
furtherance of business.
 According to sec 7(1) “Supply” includes
 All forms of supply of goods or services or both such as sale,
transfer, exchange, barter, license, rental, lease and disposal
made or agreed to be made for a consideration by a
person in the course or furtherance of business
 Import of Services for a consideration whether or not in
course or furtherance of business.
 The Activities specified in schedule 1 made or agreed to be
made without consideration
The expression “supply "excludes -
a) Activities or transaction specified in Schedule
III; or
b) Such activities or transactions undertaken by
Central Government or State Government or
any local Authority in which they are engaged
in public authority, as may be notified by
Government on the recommendations of GST
council.
 Supply has two important elements:
 Supply is done for a consideration
 Supply is done in course of furtherance of business
 Examples:
1. Mr. A buys a table for Rs.10,000 for his personal use and sells it
off after 10 months of use to a dealer. This is not considered as
supply under CGST as this is not done by Mr. A for the
furtherance of business.
2. Mrs. B provides free coaching to neighboring students as a
hobby. This is not considered as supply as this act is not
performed for a consideration.
B) Import of services:
 Import of goods/services with consideration
is considered as supply whether for personal or
business use.
Thus, if the person avails any service from outside India,
whether for a business or for personal use that person
will have to pay GST under Reverse charge Basis
 Activities specified in Schedule I of GST Act,
certain activities are considered as supply
even if it is made without consideration.
1) Permanent transfer or disposal of asset on
which ITC has been availed,
2) Supply between related person or distinct
person
3) Supply of goods by principal to his agent or
by agent to his principal in certain cases
4) Import of services by a taxable person
 Permanent transfer or sale of business assets on which input
tax credit has been availed will also be treated as supply
even if there is no consideration received. GST is applicable
to the sale of business assets only. It does not apply to the
sale of personal land/building and other personal assets.
 “Permanent transfer” means transfer without any intention of
receiving the goods back.
A person who has obtained
more than one registration
,whether is one state or more
than one state or union
territory shall in respect of
each registration be treated
as distinct person for the
purpose of this Act.
 For example, a company
1. By a principal to his agent 2. By an agent to his principal
based in Mumbai employs an
and the agent will supply when the agent receives
agent in Pune (Maharashtra)
them on behalf of the these goods on behalf of the
and sends goods to him. GST
principal. principal.
is applicable.

For example, a company in

the suburbs employs an
agent in the city. The agent
buys goods from the city and
sends them to the principal
to sell in the suburbs.
 Import of services by a taxable person from a related person or
from any of his other establishments outside India, for business
purposes, will be treated as supply.
 For example, ABC Inc. is incorporated in the US by A Ltd. along
with B Ltd. in India. Services are imported by B Ltd from ABC Inc.
without any consideration, the import will be deemed to be a
supply. GST will be paid by B Ltd. on reverse charge basis.
Supply of Service
Activities or transactions treated neither as the sale of goods nor sale of services as per Schedule III
of GST Act
Following are the transactions covered under negative list:
➢ Services provided by an employee to the employer.
➢ Gifts up to Rs.50,000/- in value in a Financial Year, by an employer to an employee
➢ Services of the funeral, burial, crematorium or mortuary including transportation of the
deceased
➢ Services by any court or Tribunal.
➢ Duties performed by the MP/MLA/MLC/ Members of Local Bodies.
➢ Duties performed by any person as a Chairperson or a Member or a Director in a body
established by the Central Government or a State Government or local authority.
➢ Duties performed by any person who holds any post in pursuance of the provisions of the
Constitution in that capacity.
➢ Sale of Land
➢ Sale of Building (However, If construction of a complex /building intended for sale to a buyer
and part of the consideration is received before completion, then it will be treated as Supply of
Services)
➢ Actionable claims, other than lottery, betting and gambling.
Classification of supply and types
Composite supply and
Mixed Supply:

Composite Supply
A supply comprising of two or more goods/services, which are
necessarily supplied in conjunction with each other as per frequent
business practices followed in that area. In other words, these items
cannot be supplied individually. There is a principal supply and a
secondary supply in the whole transaction. In such cases, the tax
rate on principal supply will apply on the entire supply.
E.g. Buying a Dry Fruit Gift Box for Diwali. It includes dry fruits, a box
and a wrapper. Box and wrapper cannot be sold individually
without the main content which is dry fruit. This is composite supply.
Composite
supply
Mixed Supply
A supply comprising of two or more goods/services, wherein the
supplies are independent of each other and are not necessarily
required to be sold together is called a mixed supply. The first
condition to be met for mixed supply is that ‘it should not be a
composite supply’. In such cases, the tax rate that is higher of the two
supplies will be applicable to the entire supply.
E.g Buying a Christmas package consisting of cakes, aerated drinks,
chocolates, Santa caps and other gift items. Each of these items can
be sold separately and are not dependent on each other. This is mixed
supply.
Mixed
Supply
Levy and
charge of
GST
 Levy
Stages of
tax Assessment
collection
collection
 Section 9(1) of CGST Act, 2017 provides that there shall be levied of tax called Central
Goods and Services Tax on all intra-State supplies of goods or services or both, except
on the supply of alcoholic liquor for human consumption, on the value determined
under section 15 of the CGST Act, 2017 and at such rates, not exceeding 20%, as may
be notified by the Government on the recommendation of the Council and collected
in such manner as may be prescribed and shall be paid by the taxable person. It
means maximum GST rate not exceeding 40% (i.e. CGST 20% and SGST 20%) on all
intra-state supplies of goods or services.
 Section 5(1) of IGST Act, 2017, provides that there shall be levied of a tax called
Integrated Goods and Services Tax (IGST) on all inter-State supplies of goods or
services or both at such rates not exceeding 40%. IGST on goods imported into India
shall be levied and collected in accordance with the provisions of Section 3 of the
Customs Tariff Act, 1975.
Section 9(2) of CGST Act, 2017, GST will be levied on the supply of
(Memory Technique MAN –HP)
 Petroleum crude,
 High speed diesel,
 Motor spirit (commonly known as petrol),
 Natural gas and
 Aviation turbine fuel
 Shall be levied with effect from such date as may be notified by the
Government of India on the recommendation of the GST Council
(similar provision under section 5(2) of IGST Act, 2017).
 Section 9(3) of CGST Act, 2017 the Government may, on the recommendation of the
GST Council, may notify categories of supply of goods or services or both, the tax on
which shall be paid on reverse charge basis (similar provision under section 5(3) of
IGST Act, 2017).
 Section 9(4) of CGST Act, 2017, central tax (i.e. CGST) in respect of the supply of
taxable goods or services or both by a supplier, who is not registered, to a registered
person shall be paid by such person on reverse charge basis as the recipient (Similar
provision under section 5(4) of IGST Act, 2017). This provision suspended till date.
 Section 9(5) of CGST Act, 2017 Electronic Commerce Operator (ECO) is
liable to pay tax. If ECO does not have a physical presence in the taxable
territory, any person representing such electronic commerce operator for
any purpose in the taxable territory shall be liable to pay tax. Provided
further that where an ECO does not have a representative in the taxable
territory, such ECO shall appoint a person in the taxable territory for the
purpose of paying tax and such person shall be liable to pay tax (similar
provision under section 5(5) of IGST Act, 2017)
 Composition Scheme The Government of India provides for simplified and easy of
doing business scheme for payment of taxes and filling of returns to certain
categories of taxable person. As a result such taxable person is not required to
maintain elaborate records and filing detailed returns. Section 10 of the CGST Act,
provides for composition levy to such person.
 As per Section 10(1) of CGST Act, 2017, Registered person,
whose aggregate turnover in the financial year did not
exceed ` 1.5crore (` 75 Lakhs for north-eastern states), may
opt to pay composition levy. (vide notification No. 46/2017
- Central Tax, Dt.-13/10/2017). Note: North eastern states
includes
 1. Arunachal Pradesh;
 3. Manipur
 4. Meghalaya
 5. Mizoram;
 6. Nagaland;
 7. Sikkim;
 8. Tripura;
Memory Technique …TAN – SUM3
 Exempt Supply: As per Section 2(47) of CGST Act, 2017
“exempt supply” means supply of any goods or services or
both which attracts nil rate of tax or which may be wholly
exempt from tax under section 11, or under section 6 of
the Integrated Goods and Services Tax Act, and includes
non-taxable supply;
 Exempt supply includes the supply of following type of
goods and services:
 (a) Supply attracting nil rate of tax;
 (b) Supplies wholly exempt from tax;
 (c) Non-taxable supply;
 Registration will confer the following advantages to a
taxpayer:
 He is legally recognized as supplier of goods or services.
 He is legally authorized to collect tax from his customers
and pass on the credit of the taxes paid on the goods or
services supplied to the purchasers/ recipients.
 He can claim input tax credit of taxes paid and can utilize
the same for payment of taxes due on supply of goods or
services.
 Seamless flow of Input Tax Credit from suppliers to
recipients at the national level.
MMT -N SUM -PAT Others
Persons Not Liable to be Registered
U/Sec. 23
Goods or Services
Not liable to tax or Notified Categories of persons
Wholly exempt from tax

Agriculturist
On supply of produce out
of cultivation
Compulsory Registration sec 24

01-09-2020
Person making any inter-state Supply between two
taxable supply states

Casual taxable persons making Handicraft Goods

taxable supply Exempt 32/2017

Person who required to pay tax 9(3) RC Exempt

under RCM 05/2017

Supplier of Services
Person who required to pay tax through ECO Exempt
under section 9(5) 65/2017
Compulsory Registration sec 24 Cont…

01-09-2020
Non resident taxable person making
taxable supply

Person who required to deduct tax at source

Person making taxable supply on behalf of

other taxable person

Input service distributor

Compulsory Registration sec 24 Cont…

01-09-2020
SUPPLIER THROUGH ECO LIABLE TO TCS

ELECTRONIC COMMERCE OPERATOR

SUPPLIER OF OIDAR SERVICES

NOTIFIED PERSONS
Procedure of Registration (SEC25)
STEP 1 : Submission of all documents in the portal in
FORM GST REG-01.

STEP 2 : On receipt of the above application, an

acknowledgement shall be issued electronically to the
applicant in FORM GST REG-02.

STEP 3 : The application shall be forwarded to the proper officer who shall examine
the application and the accompanying documents and if the same are found to be
in order, approve the grant of registration to the applicant within a period of 3
working days from the date of submission of the application.

• Where the application is found to be deficient either in terms of any information or

any document required to be furnished or where the proper officer requires any
clarification, he may issue a notice in FORM GST REG-03 within a period of 3
working days from the date of submission of application.

The person shall submit a reply to FORM GST REG-04 within a period of 7 working
days from the date of the receipt of such notice.
STEP 4 : When no reply is submitted or where the proper officer is not satisfied with the clarification,
information or documents, the application shall be rejected and the reasons are to be recorded in
writing and communicated to the applicant in FORM GST REG-05.
• If no action is taken by the officer, within 3 working days from date of application or within 7 working
days of receipt of clarification, the application shall be deemed to be approved. The certificate of
registration shall be made available on the common portal within 3 working days.

STEP 5 : A certificate of registration in FORM GST REG-06

showing the principal place of business and additional place or
places of business shall be made available to the applicant on
the common portal and a Goods and Services Tax Identification
Number shall be assigned.
• Such certificate shall be duly signed or verified through
electronic verification code by the proper officer.
 Deemed Registration Sec 26

01-09-2020
• Registration deemed to have been granted if the officer fail to take any action within
3 working days from the date of submission of application

• In case of deficient is found and if it is replied within specific time limit, the registration
shall be either granted or deemed to be granted upon expiry of 7 working days
 How to Register on the GST Portal?
Access https://www.gst.gov.in/ URL. The GST Home page is displayed

Click Services > Registration > New Registration option. Alternatively, you can also click
REGISTER NOW link.
Who is a Casual Taxable Person under GST?
 A person who occasionally supplies goods and/or services in a territory where
GST is applicable, but he does not have a fixed place of business. Such a
person will be treated as a casual taxable person as per GST.
 Example: A person who has a place of business in Bangalore supplies taxable
consulting services in Pune where he has no place of business would be
treated as a casual taxable person in Pune.
Who is a Non-Resident Taxable person under GST?
 When a non-resident occasionally supplies goods/services in a territory where
GST applies, but he does not have a fixed place of business in India. As per
GST, he will be treated as a non-resident taxable person. It is like above
except the non-resident has no place of business in India.
 Casual and Non-Taxable person
U/Sec. 27
Given a registration for specific period or 90 days whichever is earlier

01-09-2020
▪

▪ Additional 90 days can be given based on specific approval

▪ Can make taxable supply only after registration

▪ Should pay advance tax equivalent to the estimated tax liability

Eg: A is having a business in Chennai. He wants to popularise his products
in Andhra Pradesh by conducting a Exhibition. He has booked a hall for
30 days. He closes and comes back to Chennai
 Amendments to the Registration
U/Sec. 28
▪ Amendments to the registration is permitted
• Every amendment have to be duly notified electronically

• The following amendments requires an order from proper

officer
o Changing legal name of business
o Address of principal place of business
o Addition/Deletion/Retirement of
Partner/Director/Managing Committee/CEO or
equivalent
Cancellation of Registration Sec 29

01-09-2020
▪ VOLUNTARY CANCELLATION due to:
• Discontinuation of business
• Change in constitution of business
• No longer required to be registered
under Section 22 or Section 24
 Cancellation of Registration Sec 29
Cont…

01-09-2020
CANCELLATION BY DEPARTMENT DUE TO:

• Registered person contravened such provisions of the Act

• Person paying tax under Section 10 has NOT furnished returns
for the 3 consecutive period
• Registered person other than covered under section 10 has
not furnished returns for a continuous period of 6 months
 Cancellation of Registration Sec 29
Cont…
CANCELLATION BY DEPARTMENT DUE TO:

01-09-2020
• A person who has taken registration voluntary has not
commenced the business within 6 months from the date
of registration
• Registration has been obtained by means of fraud, wilful
misstatement, suppression of facts

ALL PENDING LIABILITIES TO BE SETTLED

WHO IS A “PERSON”

 'Person’ is defined under section 2(84) of the CGST Act, 2017 to

include individuals, Hindu Undivided Family, company including
government company, firm, limited liability partnership, association
of persons, body of individuals, co-operative society, local authority,
government including a corporation established by or under any
Central, State or provincial Act, trust and artificial juridical person.
Anybody incorporated by or under the laws of a country outside
India is also a person under GST law.
 ‘Person’ here includes individuals,
HUF, company, firm, LLP, an AOP/
A ‘taxable person’ under GST, is a
BOI, any corporation or
person who carries on any business
Government company, body
at any place in India and who is
corporate incorporated under
registered or liable to be registered
laws of foreign country, co-
under section 22 or 24 the CGST
operative society, local authority,
Act,2017
government, trust, artificial juridical
person.
Payment of
tax
Electronic Tax Liability Register
 Maintained in form GST PMT 01 for each person liable to pay tax, interest,
penalty, late fee or other amount on the common portal and all amount
payable by him shall be debited in this ledger.

 Payment of liability by registered person as per his return shall be made by

debiting electronic credit ledger or electronic cash ledger and electronic
liability ledger shall be credited.

 The amount payable on reverse charge basis or amount payable under

composition scheme, amount payable toward interest, penalty, fee or
other amount under the act shall be paid only by debiting electronic
cash ledger and crediting electronic liability ledger.
Electronic Credit Ledger

 Maintained in form GST PMT 02 - also known as electronic input tax

credit ledger
 Every claim of ITC shall be credited to this ledger; it shall be debited
to the extent of discharge of any liability.
 Payment of tax
On successful credit of
Payment is made through a amount in government a/c –
challan which can be a challan identification no.
Unregistered person has to
generated online on the GST (CIN) will be generated by
make payment on the basis
portal. E challan is valid for the collecting bank which
of temporary identification
15 days. The mandate form is will be indicated on the
no. generated through
obtained after making challan. CIN is 17 digit no. 14
common portal.
NEFT/RTGS payment has to digit is CPIN (Common portal
be submitted in the bank. identification no.) plus 3 digit
for bank code.

On receipt of CIN from the

CIN is communicated by the
bank the receipt will be
authorised bank to taxpayer
generated by the common
as well as GSTN.
portal.
Interest on
delayed
payment of
Tax
E- FPB

 E-FPB stands for Electronic Focal Point Branch. These are branches of
authorized banks which are authorized to collect payment of GST.
Each authorized bank will nominate only one branch as its E-FPB for
pan India Transactions. The E-FPB will have to open accounts under
each major head for all governments. Total 38 accounts (one each
for CGST, IGST and one each for SGST for each State/UT Govt.) will
have to be opened. Any amount received by such E-FPB towards
GST will be credited to the appropriate account held by such EFPB.