For CA Intermediate

Amendment Booklet

INDIRECT
TAXES
G S T
For May 2021 Exam

CA. Raj Kumar

AUTHOR

ALL RIGHTS ARE RESERVED. NO PART OF THIS BOOK SHALL BE REPRODUCED, STORED IN A
RETRIEVAL SYSTEM, OR TRANSMITTED BY ANY MEANS WITHOUT WRITTEN PERMISSION OF
AUTHOR.

“Every effort has been made to avoid errors or omissions in this publication. In-spite of this, error may creep in. Any
mistake, error or discrepancy noted might be brought to our notice, which shall be taken care of in the next edition.”
 CONTENTS
Chapter 2 DEFINITIONS ................................................... 2.1

Chapter 6 EXEMPTIONS .................................................... 6.1

Chapter 7 COMPUTATION OF GST ........................................ 7.1

Chapter 8 REVERSE CHARGE MECHANISM ............................... 8.1

Chapter 9 INVOICE ......................................................... 9.1

Chapter 11 REGISTRATION ............................................... 11.1

Chapter 13 MANNER OF PAYMENT ....................................... 13.1

Chapter 14 RETURN ........................................................ 14.1

Chapter 15 E-WAY BILL ................................................... 15.1

About CA RAJ KUMAR

CA Raj Kumar is a dynamic & qualified Chartered Accountant. As a brilliant student and a
position holder at Graduation & Post Graduation level, during his 12 years of glorious teaching
experience in the field of Indirect Taxation he has taught over 1,25,000 students.

He is a favorite amongst CA Students for the astute & insightful academic inputs provided by
him and for his pleasing & endearing personality and lucid art of teaching.

He firmly believes in blending studies with fun and this is quite evident in his classes wherein he
goes beyond theoretical reading of the subject, makes students solve practical problems, gives
them practical real life examples and pushes them to achieve their goals with full precision.

In the subject Indirect Tax Laws, his students have continued to score All India Highest Marks
for 10 times till now. He has also been entrusted by Government agencies to show the ropes to
IRS Officers in training, which is a testament to his caliber as a subject matter expert.

He is famous for concepts linkage from the very beginning till the end which helps in
understanding the topic, acing the exams and in post CA life as well. His unique use of GST
portal during the class to link theory with Practical makes him stand apart from the crowd.
His classes are practical, conceptual and concise. He is also the author of bestselling titles 'GST
Compact Book'.
 Amendments Summary
CA Intermediate: For May 2021 Exam
FINANCE ACT, 2020 APPLICABLE.
Notifications, Circulars etc. Upto 31st October 2020

GST: Chapter wise Amendments

Introduction and
Constitution

Definitions Demerger of State of J&K: into 2 UTs

 J&K [UT with legislature, which is deemed as state]
 Ladakh [UT without Legislature]
Merger of 2 UTs:
 Dadra and Nagar Haveli and Daman and Diu;

Goods and services

Supply

Taxable person

Exemptions *Services by way of transportation of goods by an aircraft/ Vessel in respect of export of

goods will be exempted by 30th September 2021. (Instead of 2020)
*Satellite launch services supplied by
 Indian Space Research Organisation,
 Antrix Corporation Limited or
 New Space India Limited.
Will be exempted.

Computation Corresponding change in Rule 7 of CGST Rules.[In reality not an Amendment]

Registered persons not eligible for goods 3% of the turnover of supplies of goods and
focused composition scheme but eligible services in the State or Union territory.
for service focused composition scheme

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www.carajkumar.com CA RAJKUMAR
RCM Where a whole time director who is deemed as an employee works in dual capacity

(i) As an employee and NOT a supply no question of GST

(ii) Separate contract for provision of Liable to GST under RCM.

service for which he is separately
compensated

Invoice E – INVOICE
*Limit for applicability of provisions of E – INVOICE increased to Rs. 500 Crore from
Rs.100 crore
*Following shall be part of E- Invoice - Quick Response code, having embedded Invoice
Reference Number (IRN) in it.
Normal Invoicing [ie other than E-INVOICE]
An invoice issued by a registered person, whose aggregate turnover in any preceding
financial year from 2017-18 onwards exceeds Rs.500 crore,
 to an unregistered person (ie B2C invoice),
 shall have Dynamic Quick Response (QR) code. [PAYMENT QR CODE]
QR Code through DIGITAL DISPLAY: Provided that where such registered person
makes a Dynamic Quick Response (QR) code available to the recipient through a digital
display,
 Such B2C invoice issued by such registered person containing cross-reference of the
payment using a Dynamic Quick Response (QR) code,
 shall be deemed to be having Quick Response (QR) code.

Time of supply

Input tax credit

Registration Aadhaar Authentication

Effective date of Where an applicant, opts for authentication of Aadhaar number,

submission of  He shall, while submitting the Registration application,
Registration  undergo authentication of Aadhaar number and
Application  the date of submission of the application in such cases
 shall be the date of authentication of the Aadhaar number,
or 15 days from the submission of the application
whichever is earlier.
If no Aadhaar Where a person,
authentication then
 fails to undergo authentication of Aadhaar number OR
registration shall be
granted only after  does not opt for authentication of Aadhaar number,
physical verification or
verification of  the registration shall be granted only after physical
documents verification of the place of business in the presence of
the said person.

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CA RAJKUMAR www.carajkumar.com
Provided that The proper officer may,
 For reasons to be recorded in writing and
 with the approval of an officer not below the rank of
Joint Commissioner,
 in lieu of the physical verification of the place of
business,
 carry out the verification of such documents as he may
deem fit.

If no Aadhaar Where a person,

authentication then
notice with 21 days by
officer
 fails to undergo authentication of Aadhaar number OR
 does not opt for authentication of Aadhaar number,
 the notice in FORM GST REG-03 may be issued not
later than 21 days from the date of submission of the
application.

If no reply of notice or Where

officer not satisfied
 No reply is furnished by the applicant in response to the
with the reply then
notice issued or
officer MAY reject the
application  where the proper officer is not satisfied with the
clarification, information or documents furnished,
 he [MAY], for reasons to be recorded in writing, reject
such application and inform the applicant
electronically.

If the proper officer fails to take any action, -

(a) Within a period of In cases where a person successfully undergoes

3 working days from authentication of Aadhaar number ; or
the date of submission
of the application

(b) Within the time in cases where a person, fails to undergo authentication
period prescribed of Aadhaar number
under the proviso to
sub-rule (2),

(c) Within a period of in cases where a person does not opt for authentication
21 days from the date of Aadhaar number; or
of submission of the
application

(d) within a period of 7 working days from the date of the receipt of the clarification,
information or documents furnished by the applicant.
the application for grant of registration shall be deemed to have been approved.

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www.carajkumar.com CA RAJKUMAR
Rule 25: One more reason added for physical verification of premises as not opting for
Aadhaar authentication

Filing of Return * Now NIL - GSTR 1/ GSTR 3B/ GST CMP 08 may be filed through MOBILE SMS.
* For GSTR 9C [audited annual accounts and a reconciliation statement] limit of 2 crore
increased to Rs 5 crore financial year 2018-2019 and 2019-2020.

Manner of payment Amendment of section 50.

Provided that the interest on tax payable
 in respect of supplies made during a tax period and
 declared in the return for the said period
 furnished after the due date in accordance with the provisions of section 39,
 except where such return is furnished after commencement of any proceedings
under section 73 or section 74 in respect of the said period,
 shall be levied on that portion of the tax that is paid by debiting the electronic
cash ledger.

E-way bill In case, E- Invoice,

 The Quick Response] (QR) code having an embedded Invoice Reference Number
(IRN) in it,
 may be produced electronically, for verification by the proper officer
 in lieu of the physical copy of such tax invoice.

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 Chapter
2
Definitions
STATES AND UT

(103) “State” includes union Territory with legislature.

(114) “Union territory” means the territory of-
(a) the Andaman and Nicobar Islands;
(b) Lakshadweep;
(c) Dadra and Nagar Haveli; AND DAMAN and DIU
(d) LADAKH Daman and Diu
(e) Chandigarh; and
(f) Other territory
81. OTHER TERRITORY- Includes territories other than
 Delhi and Puducherry
 the Andaman and Nicobar Islands;
 Lakshadweep;
 Dadra and Nagar Haveli; AND DAMAN and DIU
 LADAKH Daman and Diu
 Chandigarh
IN simple wordings: other territory Means Residuary PART. [eg Oil Rigs Area in EEZ]

2.1
 Chapter
6
Exemptions
Transportation of Goods
(9B) Supply of services associated with transit cargo to Nepal and Bhutan.
Nepal/ Bhutan
Analysis:

INDIA NEPAL
“TRANSIT-Cargo” BHUTAN
Associated Services given by
Indian Service Provider/Supplier
eg. insurance service
eg. transportation service
eg. loading /unloading service (Exempted)

(18) & (19) (18) Services by way of transportation of goods-

(19A) & (19B) (a) By ROAD [But service of goods transportation agency, courier agency will be taxable]
(b) By Inland waterways.
Transportation
of goods (19) Services by way of transportation of goods by an aircraft from a place outside India upto the
customs station of clearance in India.

(19A) Services by way of transportation of goods by an aircraft from customs station of clearance in
India to a place outside India. But this exemption is upto 30th day of September, 2021

(19B) Services by way of transportation of goods by a vessel from customs station of clearance in
India to a place outside India. But this exemption is upto 30th day of September, 2021.
(19C) Satellite launch services supplied by Indian Space Research Organisation, Antrix
Corporation Limited or New Space India Limited.

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Chapter 6: Exemptions CA. Raj Kumar
Analysis:
INLAND WATER- WAYS
JAL @ Boat (Exempted)

OTHERS (Taxable)
G.T.A. & Courier
(Taxable)
BY ROAD
THAL OTHERS @ Bullock Cart
(Exempted) @ Tonga
BY RAIL
(Taxable) @ Hand Rickshaw
@ etc.
VAYU Service of Transportation of goods by aircraft or vessel in relation to export of Goods
exempted from GST. Moreover service of transportation of goods by air from outside
India to India is also exempted.

6.2
 Chapter
7
Computation of GST
Rule 7 of CGST Rules 2017: RATE AND VALUE UNDER COMPOSITION SCHEME:

SN Category of registered persons Rate of tax

1. Manufacturers, other than manufacturers of such 0.5% of the turnover in the State or Union territory
goods as may be notified by the Government.

2. Restaurant / catering services 2.5% of the turnover in the State or Union territory

3. Any other supplier 0.5% of the turnover of TAXABLE supplies of goods

and services in the State or Union territory

4. Registered persons not eligible under the 3% of the turnover of supplies of goods and services
composition levy under sub-sections (1) and (2), but in the State or Union territory.
eligible to opt to pay tax under Section 10(2A).

7.1
 Chapter
8
Reverse Charge Mechanism
Question: How the GST will be levied on remuneration paid by companies to the independent directors or those
directors who are not the employee of the said company?
Ans:

Leviability of GST on remuneration paid by companies to the PART

TIME directors, who are NOT an employee of the said company
Fees liable to GST under RCM: In respect of such directors who are not the employees of the said company, the
services provided by them to the Company, in lieu of remuneration as the consideration for the said services, are
clearly outside the scope of Schedule III of the CGST Act and are therefore taxable. Moreover the recipient of the
said services i.e. the Company is liable to discharge the applicable GST on it on reverse charge basis.

Leviability of GST on remuneration paid by companies to the directors,

who are also an employee [Whole Time Director] of the said company
Work in dual capacity: Once, it has been ascertained whether a director, irrespective of name and designation, is an
employee, it would be pertinent to examine whether all the activities performed by the director are..
 In the course of employer-employee relation (i.e. a “contract OF service”) or
 is there any element of “contract FOR service”.

“Contract OF service” “Contract FOR service”.

(Employer-employee relation )

TDS scenario: Treatment of the Director’s
remuneration is also present in the Income Tax Act,
1961 wherein the salaries paid to directors are subject
to 'TDS' under Section 192 of the Income Tax Act,
1961 .
TDS scenario: However, in cases where the
remuneration is in the nature of professional fees and not
salary, the TDS is liable for deduction under Section
194J of the IT Act.

8.1
Chapter 8: Reverse Charge Mechanism
Salary not liable to GST: Accordingly, it is clarified
that the part of Director’s remuneration which are
declared as “Salaries’ in the books of a company and
subjected to TDS under Section 192 of the IT Act, are
not taxable being consideration for services by an
employee to the employer in the course of or in
relation to his employment in terms of Schedule III of
the CGST Act, 2017.
8.2
CA. Raj Kumar
Fess liable to GST under : It is further clarified that the
part of employee Director’s remuneration which is
declared separately other than “salaries’ in the
Company’s accounts and subjected to TDS under Section
194J of the IT Act as Fees for professional or Technical
Services shall be treated as consideration for providing
services which are outside the scope of Schedule III of
the CGST Act, and is therefore, taxable.
Moreover the recipient of the said services i.e. the
Company, is liable to discharge the applicable GST
on it on reverse charge basis.
 Chapter
9
Invoice
CGST RULES, 2017
Rule 48: Manner (1) The invoice shall be prepared in triplicate, in the case of supply of goods, in the following
of issuing invoice manner, namely,-
(a) The original copy being marked as ORIGINAL FOR RECIPIENT;
(b) The duplicate copy being marked as DUPLICATE FOR TRANSPORTER; and
(c) The triplicate copy being marked as TRIPLICATE FOR SUPPLIER.
(2) The invoice shall be prepared in duplicate, in the case of the supply of services, in the
following manner, namely,-
(a) The original copy being marked as ORIGINAL FOR RECIPIENT; and
(b) The duplicate copy being marked as DUPLICATE FOR SUPPLIER.
(3) The serial number of invoices issued during a tax period shall be furnished electronically
through the common portal in FORM GSTR-1.
E-Invoice: (4) The invoice shall be prepared by such class of registered persons
 whose aggregate turnover in a financial year exceeds Rs.500 crore
 by including such particulars contained in FORM GST INV-01
 after obtaining an Invoice Reference Number
 by uploading information contained therein on the Common Goods and Services Tax
Electronic Portal in such manner and subject to such conditions and restrictions as may
be specified in the notification.
Provided that the Commissioner may, by notification, exempt a person or a class of registered
persons from issuance of invoice under this sub-rule for a specified period, subject to such
conditions and restrictions as may be specified in the said notification.

Notification @ E Invoicing :- Hereby notifies registered person,

 Whose aggregate turnover in any preceding financial year from 2017-18
onwards exceeds Rs.500 crore , as a class of registered person

9.1
Chapter 9: Invoice CA. Raj Kumar
 who shall prepare invoice and other prescribed documents, in terms of Rule 48(4)
 in respect of supply of goods or services or both
 to a registered person or
 for exports.
 other than a Special Economic Zone unit and those referred to in Rule
54(2),(3),(4),(4A),

Rule 54 (2) of said Rules, Insurance company, Banking

company/NBFC/Financial Institution

Rule 54 (3) of said Rules, Goods transport agency

Rule 54 (4) of said Rules, Passenger Transporter

Rule 54 (4A) of said Rules, Cinema halls

Registered person referred to in section OIDAR supplier

14 of the IGST Act, 2017.

Rule 46: Tax Subject to Rule 54, a tax invoice referred to in section 31 shall be issued by the registered person
invoice: content containing the following particulars, namely,-….
………………..
(r) Quick Response code, having embedded Invoice Reference Number (IRN) in it, in case
invoice has been issued in the manner prescribed under Rule 48(4) [E- Invoice]
Provided that the Board may, on the recommendations of the Council, by notification,
specify-

The number of digits of HSN code for goods or services that a class of registered persons
shall be required to mention; or

A class of supply of goods or services for which specified number of digits of HSN code
shall be required to be mentioned by all registered
taxpayers; and

The class of registered persons that would not be required to mention the HSN code
for goods or services.

Annual Turnover in the preceding Financial Year Number of Digits of HSN code

Upto ` 5 Crore 4 Digit

More than `5 crore 6 Digit

9.2
CA. Raj Kumar Chapter 9: Invoice

IN CASE OF NORMAL INVOICING: Provided also that the Government may, by notification,
on the recommendations of the Council, and subject to such conditions and restrictions as
mentioned therein, specify that the tax invoice shall have Quick Response (QR) code.[FOR
PAYMENT PURPOSE]

NOTIFICATION No. 71/2020: IN CASE OF NORMAL INVOICING

An invoice issued by a registered person, whose aggregate turnover in any preceding financial
year from 2017-18 onwards exceeds Rs.500 crore,
 to an unregistered person (hereinafter referred to as B2C invoice),
 shall have Dynamic Quick Response (QR) code:
 [other than those referred to in

Rule 54 (2) of said Rules, Insurance company, Banking

company/NBFC/Financial Institution

Rule 54 (3) of said Rules, Goods transport agency

Rule 54 (4) of said Rules, Passenger Transporter

Rule 54 (4A) of said Rules, Cinema halls

Registered person referred to in section OIDAR supplier

14 of the IGST Act, 2017.

QR Code through DIGITAL DISPLAY: Provided that where such registered person makes a
Dynamic Quick Response (QR) code available to the recipient through a digital display,
 Such B2C invoice issued by such registered person containing cross-reference of the
payment using a Dynamic Quick Response (QR) code,
 shall be deemed to be having Quick Response (QR) code.

9.3
 Chapter
11
Registration
Who is required to take Registration?

Registration After crossing the NO Registration Mandatory Registration

Limit of ` 20/10 LAKH: Sec. 22 Section: 23 Sec. 24

# Supplier making taxable supply if his Person making  Person making INTER STATE TAXABLE
AGGREGATE TURNOVER in a financial supply which is supply (However for taxable supply of services
year exceeds the limit of ` 20 lakh. NON TAXABLE and for Handicraft goods exemption limit of `20
However if the person makes TAXABLE /EXEMPTED /10 lakh will be available)
SUPPLIES from ANY of the special (Exclusively)  Casual Taxable Person(However for handicraft
category states then the limit will be Agriculturist goods exemption limit of `20 /10 lakh will be
reduced to ` 10 lakh. means an available)
HOW TO PROCEEDS…. individual or a
Hindu Undivided
 Non Resident taxable person.
Step 1: Find out aggregate turnover. Family who  Person required to pay tax under RCM
Step 2: Check the applicable limit for the undertakes  Taxable person u/s 9(5) [3 Specified services:
person. (if made taxable supplies from cultivation of transportation, accommodation, misc. utilities]
any of the 4 special category state, then land–
 Person making supply on behalf of other taxable
limit of ` 10 lakh shall be applicable) NOTIFIED
person (However for taxable supply of services
otherwise limit of ` 20 lakh shall apply PERSONS: eg
supplier where exemption limit of `20 /10 lakh will be
Step 3: If the aggregate turnover exceed his supplies available)
the applicable limit (` 20/10 /40 lakh) then exclusively fall  E-Commerce Operator (other than sec. 9(5).
the person will be required registration in under RCM  OIDAR supplier from abroad to a person other
all those states/UT FROM where he made
than Registered Taxable person.
TAXABLE SUPPLIES.
 Input service Distributor (whether or not
…………………………………………
separately registered under the act)
# Existing registered person: need
 TDS Deductor (whether or not separately reg.
compulsory migration and required
under the act)
registration if aggregate turnover exceeds `
20 /10 lakh.  TCS collector (whether or not separately reg.
under the act)
# Transferee/Successor: Transferee/
Successor need registration afresh.  Other specified person
# Transferee (transfer under scheme,
order of high court etc.): new owner
required registration afresh.
# Voluntarily Registration

11.1
Chapter 11: Registration CA. Raj Kumar
Registration limit of ` 40 lakh
The Central Government, hereby specifies as the category of persons exempt from obtaining
registration upto aggregate turnover of ` 40 lakh ie the person required to get registration only
after the limit of ` 40 lakh.
Any person;
 Who is engaged in EXCLUSIVE SUPPLY OF GOODS and
 Whose aggregate turnover in the financial year does not exceed ` 40 lakh.
But limit of ` 40 lakh will not be applicable in following cases ie in the following cases either the
person required to get mandatory registration or limit of ` 10/20 Lakh
(i If Persons required to take compulsory registration under section 24of the said Act;
(ii) If persons engaged in making supplies of 3 types of specified goods (Tobacco, Pan Masala,
Icecream)
(iii) If the persons engaged in making intra-State supplies in the States of Arunachal Pradesh,
Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura,
Uttarakhand;
(iv) If the persons takes voluntary registration.

When to Generally registration is required to be obtained within 30 days from the date on which he
take becomes liable to registration.
registration
In special cases:
Casual Taxable Person and Non Resident:
Application for RC : (5 Days in advance) The person shall apply for registration at least 5
DAYS PRIOR to commencement of business in and such person shall make taxable supplies only
after issuance of RC.
Period of RC: (90 +90 days) RC issued to such persons shall be valid for a period of 90 days +90
days OR as specified in application for reg. from the effective date of registration (whichever is
earlier).
Advance deposit of Tax: such person MAY deposit advance estimated tax liability for the period
specified in application at the time of application for registration on the basis of TRN. However if
applied for extension then SHALL deposit advance tax on estimation basis for such extended
period. Such amount shall be credited in his E- cash Ledger account.
Circular No. 71/45/2018: Clarifications of issues under GST related to casual taxable person

Issue Clarification

Whether the amount required to
be deposited as advance tax
should be 100% of the estimated
gross tax liability or the
estimated tax liability payable in
It is accordingly clarified that the amount of advance tax
which a casual taxable person is required to deposit while
obtaining registration should be calculated after
considering the due eligible ITC which might be
available to such taxable person.

11.2
CA. Raj Kumar Chapter 11: Registration

cash should be calculated after

deducting the due eligible ITC
which might be available to
CTP?

As per section 27 of the Central
Goods and Services Tax Act,
2017, period of operation by
causal taxable person is ninety
days with provision for extension
of same by the proper officer for
a further period not exceeding
ninety days. Various
representations have been
received for further extension of
the said period beyond the period
of 180 days, as mandated in law.
It is clarified that in case of long running exhibitions (for
a period more than 180 days), the taxable person
cannot be treated as a CTP and thus such person would
be required to obtain registration as a normal taxable
person.
While applying for normal registration the said person
should upload a copy of the allotment letter granting him
permission to use the premises for the exhibition and the
allotment letter/consent letter shall be treated as the
proper document as a proof for his place of business.
In such cases he would not be required to pay advance
tax for the purpose of registration.
He can surrender such registration once the exhibition is
over.

Registration after Survey/ Investigation etc.: It is found during any survey, inspection, search,
enquiry or any other proceeding that- Person required registration but fails to get register himself:
- then such officer may register the said person on a temporary basis and issue an order
- and it will be effective from the date of order of Registration.[penalty etc. will also be
there]
- And such person shall within 90 Days
[within 30 days of order of Appellate Authority if file appeal against grant of such
temporary registration]
from the date of grant of such registration shall file an application for registration in
prescribed form and such RC will be effective from the date of ORDER by officer.

Where Place of Registration: Every person who is liable to be registered shall apply for registration in
EVERY SUCH STATE/UT from where he makes a taxable supply.
and
What about TWI: Every person who makes a supply FROM the Territorial Waters of India shall
how many
obtain registration in the Coastal State or Union territory where the NEAREST point of the
Registratio appropriate baseline is located.
ns are
Number of Registration:
required
One state/UT@ one Registration
- In general if the person making taxable supplies from one state/ UT then he is required to take
registration one registration.

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Chapter 11: Registration CA. Raj Kumar
One state/UT @Multiple Registration:
- The person MAY obtain a SEPARATE REGISTRATION for each Place of Business
located within the state/UT.
- A person having a unit(s) in a Special Economic Zone or being a Special Economic Zone
developer shall make a separate application for registration distinct from his other units
located outside the Special Economic Zone with in the same state.
- Every person being an Input Service Distributor shall make a separate application for
registration as such Input Service Distributor even with in the same state.
Note: No Place of Business shall be granted registration to pay tax under composition scheme if
any of the Place of Business of the same person paying tax under normal scheme.
Multiple state @ single Registration
In case of unique identity number embassy/ UN etc is required to take only one registration
which is valid for all over India.

How Main document for registration:

 PAN (Generally)
 TAN (In case of TAX DEDUCTOR/COLLECTOR)
 Any other document (In case of NR eg. Self- Attested Copy of Passport)
 Now Aadhaar mandatory for registration purpose at the time of registration [But not for
non-citizen] otherwise registration will be granted only after physical verification of place
of business in maximum 60 days. Aadhaar card required for ……
- Individual;
- authorised signatory of all types;
- Managing and Authorised partner; and;
- Karta of a Hindu undivided family.
- Member of Association of Person.
- Etc.
Registration process:
Part A of Application:
(i) Disclose PAN (to whom it is needed), Mob. No., Email id.
(ii) Verification of above : by GST PORTAL, by OTP (for mob no and Email)
(iii) Generation of Transaction reference number [TRN] by portal which is valid for 15 days.
Part B of Application:
(iv) File registration APPLICATION by using reference no.
(v) Acknowledgement [Application reference number i.e. ARN] by portal on mob no. and
Email id.

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CA. Raj Kumar Chapter 11: Registration
(vi) Note: Casual taxable person shall be given temporary id number[TRN] for making
advance deposit of tax on estimation basis. After payment of advance tax ARN shall be
generated and thereafter registration certificate shall be granted.
(vii) The application forwarded to officer and the officer verifies the application along with
documents. Whether Officer is Satisfied

YES NO

Then the officer GRANT
registration within 3
working days from the
date of submission of
application
Then the officer intimate the deficiency within 3
working days from the date of submission of application.
And applicant shall provide clarification or satisfy
officer within 7 working days of receipts of information.
After this the officer is-
 Satisfied: ok grant registration within 7
working days.
 Not satisfied: Reject the application.

Note: 1 Where a person, fails to undergo authentication of Aadhaar number or does not opt for
authentication of Aadhaar number, the notice may be issued not later than 21 days from the date of
submission of the application.

Note: 2 Where a person, fails to undergo authentication of Aadhaar number or does not opt for
authentication of Aadhaar number, the registration shall be granted only after physical verification of
the place of business in the presence of the said person.
Note: 3 If no response by the officer within 3 days from application date or 7 days from receiving
the clarification then the registration shall be deemed to be granted.
(viii) A Registration certificate shall be issued in firm GST REG -6 mentioning principal
place of business and additional places therein as declared in application form.
And the RC will be effective:
 From the date on which applicant liable for registration [if application made within
time]
 Otherwise it will be effective from the date of GRANT of Registration.
Structure of RC: State wise PAN based GSTIN-----
 First two digits: State code
 Next 10 digit : PAN
 Next digit: SN of Registration in same state on same PAN
 Next digit: blank for further use
 Next digit: Checksum digit (department use)

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Chapter 11: Registration CA. Raj Kumar
Migrated Person
 Old registered taxable person required to get registration WEF appointed date (1-07-
2017) subject to above.
 Old registered person having PAN shall be granted registration on provisional basis
and RC shall be made available on the PORTAL.
 After that such person shall submit an application along with information and
documents.
 After that RC in form GST REG -6 shall be made available electronically on
common portal.
 Cancellation: Every person registered under any of the existing laws, who is not
liable to be registered under the Act may,on or before 31/03/2018,at his option,
submit an application electronically at the common portal for the cancellation of
registration granted to him and the proper officer shall, after conducting such enquiry
as deemed fit, cancel the said registration.

Amendment Changes in Core fields: [Business Name Change, Address change, change in
in RC Directors/Partners etc.]
Every RC/UIN holder shall inform the Proper Officer ANY changes in the information furnished
at the time of application of thereafter.
However officer may approve within 15 working days or reject (after giving SCN and
OPPORTUNITY OF BEING HEARD) such changes.
Changes in None core fields: [Change in Phone Number, E-mail id of authorised signatory]
Every RC/UIN holder shall inform the Proper Officer ANY changes in the information furnished
at the time of application of thereafter.

Cancellation On Application: cancellation on application [Along with the detail of inputs, work in
of progress, finished goods, capital goods] By registered taxable person OR by legal heirs (in case
Registration
of death), manner and period as may be prescribed, having regard to:
 If not to provide bank details with-in 45 days of registration,
 discontinuation of business,
 transfer of business,
 amalgamation,
 demerger or otherwise dispose of,
 change in constitution of business or
 registered person no longer liable to registered.
 A TDS deductor or TCS Collector – now no longer remain to deduct or collect.

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BY Proper officer himself:
 On contravention of act or rules, [eg. issue bogus invoices etc.]
 Person paying tax under composition scheme has not furnished return for 3 consecutive
tax periods,
 Any Registered person (other than immediate preceding) has not filed return for a
continuous period of 6 months,
 person having reg. on voluntarily basis has not commenced business within 6 months from
the date of registration,
 Registration obtained by means of fraud etc.
Then the proper officer may cancel the registration FROM SUCH DATE as he may deem
[prospectively or retrospectively] after giving SCN and opportunity of being heard However if
found satisfactory reply then drop the proceedings and pass an order.
Note: During pendency of the proceedings relating to cancellation of registration, the proper
officer may suspend the registration for such period and in such manner as may be
prescribed.

Liability on cancellation:
Every registered person whose registration is cancelled shall pay an amount, by way of debit in
the
 E-Credit ledger or
 E-Cash ledger,
equivalent to the credit of input tax in respect of inputs held in stock and inputs contained in
semi-finished or finished goods held in stock or capital goods or plant and machinery on
the day immediately preceding the date of such cancellation OR the output tax payable on
such goods, whichever is higher, calculated in such manner as may be prescribed:
Provided that in case of capital goods or plant and machinery, the taxable person shall pay an
amount equal to the input tax credit taken on the said capital goods or plant and
machinery, reduced by such percentage points as may be prescribed OR the tax on the
transaction value of such capital goods or plant and machinery under section 15,
whichever is higher.

On cancellation no effect on Prior period liabilities: Such cancellation does not affect the
liability of taxable person for any period prior or after the date of cancellation.

Revocation Where registration is cancelled by Proper Officer, any registered taxable person may apply for
revocation of such cancellation within 30 days of cancellation and Proper Officer may accept or
reject the application with in 30 days. (after giving SCN and opportunity of being heard).
Where registration is cancelled because non filing of return then revocation application shall be
files only after filing return and payment of tax, interest, penalties and late fee.

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Moreover where registration is cancelled with retrospective effect then first of all file application
for revocation and after that need to file all due returns till revocation order with in 30 days.
Filing of application for revocation of cancellation of registration: Circular No. 99/18/2019

Prospective Where the registration has been cancelled with effect from the date
cancellation of order of cancellation of registration, all returns due till the date of
such cancellation are required to be furnished before the
application for revocation can be filed.
Further, in such cases, all returns required to be furnished in respect of
the period:
o from the date of order of cancellation
o till the date of order of revocation of cancellation of registration
have to be furnished within a period of 30 days from the date of the order
of revocation

Retrospective Where the registration has been cancelled with retrospective effect,
Cancellation the common portal does not allow furnishing of returns after the
effective date of cancellation.
In such cases it was not possible to file the application for revocation of
cancellation of registration. For enabling filing of application for
revocation of cancellation of registration, subject to the condition that
all returns relating to the period
o From the effective date of cancellation of registration
o till the date of order of revocation of cancellation of registration
shall be filed within a period of 30 days from the date of order of such
revocation of cancellation of registration

MISC: RC Display: Display RC in a prominent location at his principal and additional place (s) of
business and shall display the registration number on the name board exhibited at entry of his
principal place of business and any other place of business.
All Documents/notices @ electronically and Digital signed: Each document filed online shall be
signed by person specified. All orders and notices under this chapter shall be issued electronically
by proper officer.
All applications/replies @ electronically and digitally signed: All applications, including reply,
if any, to the notices, returns including the details of outward and inward supplies, appeals or any
other document required to be submitted under the provisions of these rules shall be so submitted
electronically with digital signature certificate or through e-signature as or through e signature.

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Physical verification of business premises:
*Due to failure of Aadhaar authentication or
*Due to not opting for Aadhaar authentication before the grant of registration, or
*Due to any other reason after the grant of registration,
Officer may get such verification of the place of business, in the presence of the said person, done and
the verification report along with the other documents, including photographs, shall be uploaded in on
the common portal within a period of 15 working days following the date of such verification.

Clarification in respect of transfer of ITC in case of death of sole proprietor: Cir No. 96/15/2019
In case of death of sole proprietor if the business is continued by any person being transferee or successor, the
input tax credit which remains un-utilized in the electronic credit ledger is allowed to be transferred to the
transferee as per provisions and in the manner stated below –
(a)Registration liability of the transferee/successor: As per provisions of section 22 (3) of the CGST Act, the
transferee or the successor, as the case may be, shall be liable to be registered with effect from the date of such
transfer or succession, where a business is transferred to another person for any reasons including death of the
proprietor.
(b)Cancellation of registration on account of death of the proprietor: Section 29 of the CGST Act, allows the
legal heirs in case of death of sole proprietor of a business, to file application for cancellation of registration.
The GSTIN of transferee to whom the business has been transferred is also required to be mentioned to link the
GSTIN of the transferor with the GSTIN of transferee.
(c)Transfer of input tax credit and liability: In case of death of sole proprietor, if the business is continued by
any person being transferee or successor of business, it shall be construed as transfer of business. section 18 of
the CGST Act, allows the registered person to transfer the unutilized input tax credit lying in his electronic credit
ledger to the transferee in the manner prescribed in rule 41 of the CGST Rules, where there is specific provision
for transfer of liabilities.
The transferor and the transferee/successor shall jointly and severally be liable to pay any tax, interest or any
penalty due from the transferor.
Furthermore, Where a person, liable to pay tax, interest or penalty under the CGST Act, dies, then the person
who continues business after his death, shall be liable to pay tax, interest or penalty due from such person under
this Act. It is therefore clarified that the transferee/successor shall be liable to pay any tax, interest or any penalty
due from the transferor in cases of transfer of business due to death of sole proprietor.
(d)Manner of transfer of credit: In case of transfer of business on account of death of sole proprietor, the
transferee/successor shall file Application in respect of the registration which is required to be cancelled on
account of death of the sole proprietor.
Upon acceptance by the transferee/successor, the un-utilized input tax credit specified in such application shall
be credited to his electronic credit ledger of transferee/successor.

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Chapter 11: Registration CA. Raj Kumar

CGST Rules, 2017 – Registration

Rule 8: (4) Using the reference number generated under sub-rule (3), the applicant shall electronically
Application for submit an application in Part B of FORM GST REG-01, duly signed or verified through
registration electronic verification code, along with the documents specified in the said Form at the
common portal, either directly or through a Facilitation Centre notified by the Commissioner.

(4A) The applicant shall, while submitting an application under sub-rule (4), with effect from
01.04.2020, undergo authentication of Aadhaar number for grant of registration.
(4A) Where an applicant,
 Other than a person notified under section 25(6D) [ie. NON CITIZEN]
 opts for authentication of Aadhaar number,
 he shall, while submitting the application under sub-rule (4),
 with effect from 21st August, 2020, undergo authentication of Aadhaar number and
 the date of submission of the application in such cases shall be
 the date of authentication of the Aadhaar number, or
 15 days from the submission of the application in Part B of FORM GST REG-
01 under sub-rule (4),
 whichever is earlier.

(5) On receipt of an application under sub-rule (4), an acknowledgement shall be issued

electronically to the applicant in FORM GST REG-02.
(6) A person applying for registration as a casual taxable person shall be given a temporary
reference number by the common portal for making advance deposit of tax in accordance with
the provisions of section 27 and the acknowledgement under sub-rule (5) shall be issued
electronically only after the said deposit.

Rule 9 (1) The application shall be forwarded to the proper officer who shall examine the application
Verification of and the accompanying documents and if the same are found to be in order, approve the grant
the application of registration to the applicant within a period of 3 working days from the date of submission
and approval of the application.
Registration After Physical Verification: Provided that
 Where a person, other than a person notified under section 25(6D),[NON CITIZEN]
 fails to undergo authentication of Aadhaar number as specified in Rule 8(4A) or
does not opt for authentication of Aadhaar number,
 the registration shall be granted only after physical verification of the place of business in
the presence of the said person, in the manner provided under Rule 25.
Alternate of Physical Verification @ Document Verification : Provided further that
 the proper officer may, for reasons to be recorded in writing and

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CA. Raj Kumar Chapter 11: Registration
 with the approval of an officer not below the rank of Joint Commissioner,
 in lieu of the physical verification of the place of business,
 carry out the verification of such documents as he may deem fit.
(2) Where the application submitted under Rule 8 is found to be deficient, either in terms of
any information or any document required to be furnished under the said rule, or where the
proper officer requires any clarification with regard to any information provided in the
application or documents furnished therewith,
 He may issue a notice to the applicant electronically in FORM GST REG-03 within a
period of 3 working days
 from the date of submission of the application and the applicant shall furnish such
clarification, information or documents electronically, in FORM GST REG-04,
within a period of 7 working days from the date of the receipt of such notice.
Notice in 21 days: Provided that
 Where a person,
 other than a person notified under section 25(6D),
 fails to undergo authentication of Aadhaar number as specified in Rule 8 (4A) or
does not opt for authentication of Aadhaar number,
 the notice in FORM GST REG-03 may be issued
 not later than 21 days from the date of submission of the application.
Explanation.- For the purposes of this sub-rule, the expression “clarification” includes
modification or correction of particulars declared in the application for registration, other than
Permanent Account Number, State, mobile number and e-mail address declared in Part
A of FORM GST REG-01.
(3) Where the proper officer is satisfied with the clarification, information or documents
furnished by the applicant, he may approve the grant of registration to the applicant within a
period of seven working days from the date of the receipt of such clarification or information
or documents.
(4) Where no reply is furnished by the applicant in response to the notice issued under sub-
rule (2) or where the proper officer is not satisfied with the clarification, information or
documents furnished, he 4[may], for reasons to be recorded in writing, reject such application
and inform the applicant electronically in FORM GST REG-05.
(5) If the proper officer fails to take any action, -
(a) Within a period of 3 working days from in cases where a person successfully
the date of submission of the application undergoes authentication of Aadhaar
number or is notified under section 25(6D);
or
(b) Within the time period prescribed under in cases where a person, other than a person
the proviso to sub-rule (2), notified under section 25(6D), fails to
undergo authentication of Aadhaar
number as specified in Rule 8(4A); or

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Chapter 11: Registration CA. Raj Kumar
(c) Within a period of 21 days from the date in cases where a person does not opt for
of submission of the application authentication of Aadhaar number; or

(d) within a period of 7 working days from the date of the receipt of the clarification,
information or documents furnished by the applicant under sub-rule (2),

the application for grant of registration shall be deemed to have been approved.
Where the proper officer is satisfied that the physical verification of the place of business of a
Rule 25:
Physical person is required
verification of
business  due to failure of Aadhaar authentication before the grant of registration, or
premises in  due to not opting for Aadhaar authentication before the grant of registration, or
certain cases
 due to any other reason after the grant of registration,

 he may get such verification of the place of business, in the presence of the said person, done
and the verification report along with the other documents, including photographs, shall be
uploaded in FORM GST REG-30 on the common portal within a period of 15 working days
following the date of such verification.

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13
Manner of Payment
Section 50: Interest on delayed payment of tax

Interest for (1) Every person who is liable to pay tax in accordance with the provisions of this Act or
belated period @ the rules made thereunder, but fails to pay the tax or any part thereof to the Government
18% [max] for within the period prescribed, shall for the period for which the tax or any part thereof
belated period remains unpaid, pay, on his own, interest at such rate, not exceeding 18%, as may be
notified by the Government on the recommendations of the Council.
Provided that the interest on tax payable
 in respect of supplies made during a tax period and
 declared in the return for the said period
 furnished after the due date in accordance with the provisions of section 39,
 except where such return is furnished after commencement of any proceedings under
section 73 or section 74 in respect of the said period,
 shall be levied on that portion of the tax that is paid by debiting the electronic cash
ledger.

CBIC- 20/01/08/2019-GST:Administrative instructions for

recovery of interest on net cash tax liability w.e.f. 01.07.2017
1.Amended provisions of section 50 to provide for charging interest on the net cash
tax liability. The said amendment was to be made effective from a date to be notified by the
Government. Accordingly, the said provision was made effective w.e.f. 01.09.2020.
2. The GST Council, in its 39th meeting, held on 14th March, 2020 recommended interest to
be charged on the net cash tax liability w.e.f. 01.07.2017 and accordingly, recommended the
amendment of section 50 of the CGST Act retrospectively w.e.f. 01.07.2017. The
retrospective amendment in the GST laws would be carried out in due course through
suitable legislation.
3. Post amendment, there were apprehensions raised by taxpayers that the said notification
is issued contrary to the Council's recommendation to charge interest on net cash liability
w.e.f. 01.07.2017. Consequently, a press release, dated 26.08.2020 was issued to clarify the
position. Further, in order to implement the decision of the Council in its true spirit, and at

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Chapter 13: Manner of Payment CA. Raj Kumar
the same time working within the present legal framework, it has been decided to address
the issue through administrative arrangements, as under:

(a) For the period 01.07.2017 to 31.08.2020, field formations in your jurisdiction may
be instructed to recover interest only on the net cash tax liability (i.e. that portion of
the tax that has been paid by debiting the electronic cash ledger or is payable
through cash ledger); and

(b) Wherever SCNs have been issued on gross tax payable, the same may be kept in
Call Book till the retrospective amendment in section 50 of the CGST Act is carried
out.

How to calculate (2) The interest under sub-section (1) shall be calculated, in such manner as may be
interest prescribed, from the day succeeding the day on which such tax was due to be paid.

Interest @ higher (3) A taxable person

% [24%
 who makes an undue or excess claim of input tax credit under section 42(10) or
maximum]
 undue or excess reduction in output tax liability under section 43(10),
shall pay interest on such undue or excess claim or on such undue or excess reduction,
as the case may be, at such rate not exceeding 24%, as may be notified by the Government
on the recommendations of the Council.

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 Chapter
14
Return
CGST Rules, 2017
Rule. 67A. Manner
of furnishing of Notwithstanding anything contained in this Chapter,
return or details of  for a registered person who is required to furnish a Nil return under section 39
outward supplies by in FORM GSTR-3B or
short messaging
service facility  a Nil details of outward supplies under section 37 in FORM GSTR-1 or
 a Nil statement in FORM GST CMP-08 for a tax period,
 any reference to electronic furnishing shall include
o furnishing of the said return or the details of outward supplies or
statement
o through a short messaging service using the registered mobile number
and
 the said return or the details of outward supplies or statement shall be
verified by a registered mobile number based One Time Password facility.
Explanation: For the purpose of this rule, a Nil return or Nil details of outward supplies
or Nil statement shall mean
 a return under section 39 or
 details of outward supplies under section 37 or
 statement under rule 62,

for a tax period that has nil or no entry in all the Tables in FORM GSTR-
3B or FORM GSTR-1 or FORM GST CMP-08, as the case may be.

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Chapter 14: Return CA. Raj Kumar

Rule 80: Annual (1) Every registered person, other than an Input Service Distributor, a person paying tax
return under section 51 or section 52, a casual taxable person and a nonresident taxable person,
shall furnish an annual return as specified under sub-section (1) of section 44
[FORM: GSTR
electronically in FORM GSTR-9 through the common portal either directly or through a
9A,9B,9C] Facilitation Centre notified by the Commissioner:
Provided that a person paying tax under section 10 shall furnish the annual return in
FORM GSTR-9A.
(2) Every electronic commerce operator required to collect tax at source under section 52
shall furnish annual statement referred to in sub-section (5) of the said section in FORM
GSTR -9B.
(3) Every registered person other than those referred to in the proviso to section 35 (5)
,whose aggregate turnover during a financial year exceeds 2 crore rupees shall get his
accounts audited and he shall furnish a copy of audited annual accounts, in FORM
GSTR-9C, electronically.
Provided that for the financial year 2018-2019 and 2019-2020,
 every registered person whose aggregate turnover exceeds 5 crore rupees
 shall get his accounts audited as specified under section 35(5) and
 he shall furnish a copy of audited annual accounts and a reconciliation statement, duly
certified,
 in FORM GSTR-9C for the said financial year, electronically
 through the common portal either directly or through a Facilitation Centre notified by
the Commissioner.

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 Chapter
15
E-Way Bill

Rule 138A (1) The person in charge of a conveyance shall carry—

Documents and
devices to be (a) the invoice or bill of supply or delivery challan, as the case may be; and
carried by a person- (b) a copy of the e-way bill in physical form or the e-way bill number in electronic form or
in-charge of a mapped to a Radio Frequency Identification Device embedded on to the conveyance in
conveyance such manner as may be notified by the Commissioner:
Provided that nothing contained in clause (b) of this sub-rule shall apply in case of movement
of goods by rail or by air or vessel.
Provided further that in case of imported goods, the person in charge of a
conveyance shall also carry a copy of the bill of entry filed by the importer of such
goods and shall indicate the number and date of the bill of entry in Part A of FORM
GST EWB-01.
(2) In case,
 Invoice is issued in the manner prescribed under Rule 48(4)[E-INVOICE]
 the Quick Response] (QR) code having an embedded Invoice Reference
Number (IRN) in it, may be produced electronically,
 for verification by the proper officer
 in lieu of the physical copy of such tax invoice.
(2) A registered person may obtain an Invoice Reference Number from the common portal
by uploading, on the said portal, a tax invoice issued by him in FORM GST INV-1and
produce the same for verification by the proper officer in lieu of the tax invoice and such
number shall be valid for a period of thirty days from the date of uploading.
(3) Where the registered person uploads the invoice under sub-rule (2), the information in
Part A of FORM GST EWB-01 shall be auto-populated by the common portal on the basis
of the information furnished in FORM GST INV-1.

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