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GST notes

Llb 3 years (Karnataka State Law University)

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Goods and Services Tax (GST)

KSLU Past Examination Questions:

1.An assessee was an authorized dealer of Sony electronics products which were sold to
different customers in Karnataka under the Direct billing from Sony Ltd in Delhi. Is there a
sale in the course of inter – state trade or commerce? Give reasons [D,15] [D,17]
2.What is Dual GST Model? Explain its features? [Dec 17]

Meaning of Goods and Services Tax (GST)

 “GST is a tax on supply of Goods, or Services or both except on supply of the
Alcoholic Liquor for Human Consumption”. [ Article 366 (12a) ]
 It is implemented from 01.07.2017
 It extends to whole of India including Jammu and Kashmir.

 Set –off of taxes

The Supplier at each stage is permitted to avail credit of GST paid on purchase of Goods and/
or Services which can be set-off against taxes paid on supply of Goods and Services made by
him.

 Accrual of tax
The tax would accrue to the taxing authority which has the jurisdiction over the place of
consumption which is also termed as place of supply. Hence, GST is a destination based
consumption tax.

Existing taxes that are subsumed under GST:

GST would replace the following taxes levied and collected by the

Central Government State Government

a. central Excise Duty a. State VAT

b. Duties of Excise (Medicinal & Toilet b. Central Sales Tax
preparation) c. Luxury Tax

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c. Additional Duties of Excise (Goods of d. Entry Tax (all forms)

Special Importance) e. Entertainment & Amusement Tax (except
d. Additional Duties of Excise (Textiles & when levied by the local bodies)
Textiles Product) f. Taxes on advertisements
e. Additional Duties of Customs (commonly g. Purchase Tax
known as CVD) h. Taxes on lotteries, betting & gambling
f. Special Additional Duty of Customs i. State Surcharges & Cesses so far as they
(SAD) relate to supply of goods and services
g. Service Tax, Central Surcharges &
Cesses so far as they relate to supply of
goods and services a.

How GST would work ?

A being the “Manufacturer” of soap, sold the soap for ₹100 to B being the “Wholesaler”. A
used services of E for manufacturing of goods of ₹20 and paid tax of ₹1.
B sold the soap for ₹150 to C who was the “Retailer”. C sold the soap to D being
“Consumer” for ₹200.
If in this case tax rate in GST is 5% then,
Transaction Particulars Transaction Tax Tax Input Tax
value rate Tax payable
Credit
Service E to A 20 5% 1.00 0.00 1.00
Sale A to B 100 5% 5.00 1.00 4.00
Sale B to C 150 5% 7.50 5.00 2.50
Sale C to D 200 5% 10.00 7.50 2.50

(a.) E would be collecting ₹1 i.e. 5% of ₹20 on services provided to A. E would be

depositing ₹1 to the Government. For the sake of simplicity, it has been assumed that E does
not have any claim of Input Tax Credit against the output tax liability of ₹1.
(b). A would be collecting ₹5 i.e. 5% of ₹100 on sales made to B. A would be depositing ₹4
to thegovernment after taking credit of the tax of ₹1 paid to E. Credit of taxes paid on service
is allowed to be set off in GST. However, if it would have been earlier taxes, than service tax
was not allowed as set off against Sales Tax.
(c). B would be collecting ₹7.5 i.e. 5% of 150 on sales made to C and he would be depositing
₹2.5 to the Government after deducting ₹5 paid on purchases made from A out of ₹7.5.
(d) C would be collecting ₹10 i.e. 5% of 200 on sales made to D and he would be depositing
₹2.5 to the government after deducting ₹7.5 out of ₹10 paid on Purchases made from B.
Therefore, in GST, total revenue collected from the entire chain of transaction would be ₹10

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at a tax rate of 5% after allowing set-off of entire taxes paid earlier in the supply chain and
not having any cascading effect of levy of tax on tax.
Coverage of GST on Transactions:
 Central GST will replace the existing Central Excise Duty and Service Tax. CGST
would also cover sale transactions
 State GST will replace State VAT, Entry Tax, Octroi, Luxury Tax, Entertainment tax
etc. SGST would be levied on services as well
 Integrated GST (equal to CGST + SGST ) will be levied on all supplies of goods and/
or services in the course of Inter State Trade or Commerce. IGST would be applicable
to import of goods or services also.

Deficiencies in the earlier indirect tax regime

 No set-off:
Certain taxes levied by State Government were not allowed as set-off for payment of
other taxes levied by them. Eg: when goods are manufactured and sold, both excise
duty (CENVAT) and State VAT were levied. Though CENVAT and State level VAT
are essentially Value Added Taxes, Set-off of one against the credit of another was
not possible as CENVAT was a Central Government Levy and State VAT was a State
Government levy.

 Variety of Taxes and Rates:

The variety of Value Added Tax laws in the country with disparate tax rates and
dissimilar tax practices divides the country into separate economic spheres.

 Double Taxation :
Earlier some items are treated both as a commodity as well as a service. Eg: software.
This resulted in double taxation of a transaction as both goods and services.

 High Compliance Cost:

The creation of tariff and non tariff barriers such as Octroi, Entry Tax, Check Posts,
etc. hindered the free flow of trade throughout the country. Besides that, the large
number of taxes created high compliance cost for the tax payers in the form of
number of returns, payments etc.

 Others:
a) Non inclusion of several local levies in State VAT such as luxury tax, entertainment tax
etc.
b) No CENVAT after manufacturing stage
c) Non integration of VAT and Service Tax

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Existing taxes that will continue even after the introduction of GST
1. Central Excise Duty levied on manufacture / production of Tobacco, Petroleum
Crude, Diesel, Petrol, ATF and Natural Gas.
2. State Excise Duty levied on manufacture / production of Alcoholic Liquor, Opium,
Indian Hemp and Narcotics.
3. VAT levied on Intra-State sale of Petroleum Crude, Diesel, Petrol, ATF, Natural and
Alcoholic Liquor
Benefits of GST:
 GST is a win – win situation for the entire country.
 It brings benefits to all the stakeholders of industry, Government and the consumer.
 It will lower the cost of goods and services, give a boost to the economy and make
the products and services globally competitive.

Other significant benefits of GST

1. Creation of unified national market:
 GST aims to make India a common market with common tax rates and
procedures and remove the economic barriers thus paving the way for an
integrated economy at the national level.
2. Mitigation of ill effects of cascading:
 By subsuming most of the Central and State taxes into a single tax and by
allowing a set – off of prior – stage taxes for the transactions across the entire
value chain, it would mitigate the ill effects of cascading, improving
competitiveness and improve liquidity of the businesses.
3. Elimination of multiple taxes and double taxation:
 GST will subsume majority of existing indirect tax levies both at Central and
State level into one tax i.e., GST which will be leviable uniformly on goods and
services.
 This will make doing business easier and will also tackle the highly disputed
issues relating to double taxation of a transaction as both goods and services.
4. Boost to ‘Make in India’ initiative:
 GST will give a major boost to the ‘Make in India’ initiative of the Government
of India by making goods and services produced in India competitive in the
national as well as international market.
5. Buoyancy to the Government Revenue:
 GST is expected to bring buoyancy to the Government Revenue by widening the
tax base and improving the taxpayer compliance.
 GST shall be implemented in India on a dual structure basis i.e., the Centre and
the States shall have concurrent powers to levy, collect and administer GST.
 The proposed GST system shall have two components – Central GST and State
GST / UTGST.

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Conceptual framework (Dual Model of GST)

The significant features of Dual GST in India, are as under
1. CGST is to be administered by the Central Government and SGST is to be administered
by State Governments. UTGST is to be administered by Administrator appointed by the
Central Government for the Union Territory.
2. CGST has replaced existing Central Excise, Service Tax, Additional Excise Duty,
Special Additional Duty of Customs, etc. whereas SGST has replaced State VAT, CST,
Luxury Tax, Octroi and Entry Tax, Purchase Tax, etc.
3. Taxable Event under GST shall be supply of goods or services or both. It is an event the
occurrence of which attracts the liability to tax.
Under earlier system of indirect taxes there were different taxable event in each of the
indirect taxes. “Manufacture” was a taxable event under Central Excise, “Transfer of property
in goods” under VAT/CST, and services “Provided or agreed to be provided” in Service Tax.
4. GST is based on destination based consumption tax principle. On the contrary, erstwhile
Central Sales Tax was origin based tax.
5 . Supplies of goods or services or both as specified in Schedule – I is to be treated as Supply
of goods or services or both and subject to tax under GST even if such supplies are made
without consideration.
What is Schedule - I?
ACTIVITIES TO BE TREATED AS SUPPLY EVEN IF MADE WITHOUT
CONSIDERATION
1. Permanent transfer or disposal of business assets where input tax credit has been availed on
such assets.
2. Supply of goods or services or both between related persons or between distinct persons as
specified in section 25, when made in the course or furtherance of business:
Provided that gifts not exceeding fifty thousand rupees in value in a financial year by an
employer to an employee shall not be treated as supply of goods or services or both.
3. Supply of goods—
(a) by a principal to his agent where the agent undertakes to supply such goods on behalf of
the principal; or
(b) by an agent to his principal where the agent undertakes to receive such goods on behalf of
the principal.
4. Import of services by a taxable person from a related person or from any of his other
establishments outside India, in the course or furtherance of business.
Conceptual framework:

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GST shall be implemented in India on a dual structure basis i.e. the Centre and the States
shall have concurrent powers to levy, collect and administer GST.
The proposed GST system shall have two components – Central GST and State GST /
UTGST.
The Central GST and the State GST / UTGST would be levied simultaneously on every
transaction of supply of goods or services or both except the exempt supply and the
transactions which are upto the prescribed threshold limits.
Conceptual framework:
1. CGST:
GST levied by the Centre on intra – State supply of goods or services or both would
be called the Central GST (CGST)
2. SGST:
GST levied by the states on intra – State supply of goods or services or both would be
called the State GST (SGST). State under the GST Law is defined to include a Union
Territory with Legislature.
2. SGST:
GST levied by the states on intra – State supply of goods or services or both would be
called the State GST (SGST). State under the GST Law is defined to include a Union
Territory with Legislature.
Thus, on every supply of goods or services or both within the Union territories of
Delhi and Pondicherry, State GST (SGST) will be levied.
In Uttar Pradesh SGST is named as UP GST. In Rajasthan, it is named as Rajasthan
GST and the same way in all other states.
3. UTGST:
On every supply of goods or services or both within the Union territories of Andaman
and Nicobar Islands, Lakshadweep, Dadra and Nagar Haveli, Daman and Diu,
Chandigarh, Union Territory GST (UTGST) will be levied.
4. IGST:
On every inter – State supply of goods or services or both, integrated GST (IGST)
will be levied and collected by Centre. IGST shall be apportioned between the centre
and the states in the manner as may be provided in due course by the GST Council.
5. Import of goods or services or both:
Import of goods or services or both shall be treated as inter – state supply and would
be liable to IGST.
Since GST is a destination based consumption tax, IGST on import shall be levied
and collected by the state in which goods or services or both are finally consumed /
used.
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 at the point when duties of
custom are levied on the said goods under section 12 of the Customs Act, 1962.
6. Export of goods or services or both:
Exports will be treated as ‘Zero rated supplies’.
No tax will be payable on export of goods or services or both, however credit of input
tax credit will be available and exporters can claim refund of the same

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Persons liable for Registration under GST (Sec23)

 Every supplier shall be liable to be registered under the Act in the State from which
he makes a taxable supply of Goods or Services or both.
 Registration is required if his aggregate turnover in a financial year exceeds ₹ 20
Lakhs.
 This threshold limit will be ₹ 10 Lakhs if a taxable person conducts his business in
any of the special category states i.e. Arunachal Pradesh, Assam, Jammu and
Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal
Pradesh and Uttarakhand.
Persons not liable for Registration under (Sec 22)
1. The following persons shall not be liable to registration, namely:
 Any person engaged exclusively in the business of supplying goods or services or
both that are not liable to tax or wholly exempt from tax;
 An agriculturist, to the extent of supply of produce out of cultivation of land.
2. The Government may, on the recommendation of the Council, by notification, specify the
category of persons who may be exempted from obtaining registration under this Act.

E-Commerce Operator: sec 2(45) of GST Act

 “Electronic commerce operator” means any person who owns, operates or manages
digital or electronic facility or platform for electronic commerce.
 It includes every person who, directly or indirectly, owns, operates or manages a
digital/ electronic facility or platform for supply of goods or services or both.
 While an aggregator (Ola, Swiggy, etc.) only connects the customer with the
supplier / service provider, an e – commerce operator (Flipkart) facilitates the entire
process of the supply of goods / provision of service. Under the GST law, even
aggregators would be covered under the definition of ‘electronic commerce operator’.
 The following aspects need to be noted:
 The threshold limits of registration would not apply and he would be required
to obtain registration irrespective of his turnover.
 He is required to deduct an amount as tax out of the consideration paid or
payable by him to the actual supplier of goods or services or both made
through such operator.
 The law requires the operator to collect tax at source in respect of supplies
where the consideration is collected by the electronic commerce operator.
However, these provisions would not apply to a transaction where monies are
received by the supplier on delivery (COD basis) and the delivery is made
directly by the supplier.

Classification system under GST

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Classification of Goods Classification of

Service
Classification of Goods:
 Classification of goods under the GST regime shall be made according to the
Harmonised System of Nomenclature (HSN). A code shall be allotted to each
commodity and such code shall be mentioned on the invoice issued by the taxable
person:
 Taxable person having a turnover of less than ₹ 1.5 crores shall not be required to
mention the HSN code in their invoice.
 Taxable person whose turnover is above ₹ 1.5 crores but below ₹ 5 crores shall use
two digit HSN code, and
 The taxpayers whose turnover is ₹ 5 crores and above shall use four digit HSN code
in their invoice.
 In case of imports / exports, HSN code of 8 digits shall be compulsory.
Classification of Service
Services under the GST regime shall be classified as per Services Accounting Code (SAC). It
is 8 digit code of which first 2 digit is zero.
Goods and Services Tax (compensation to States Act 2017)
The Goods and Services Tax (Compensation to States) Act, 2017 provides for a mechanism
to compensate the States on account of loss of revenue which may arise due to
implementation of the Goods and Services Tax read together with the Constitutional (101st
Amendment) Act, 2016, for a period of 5 years.
This Act, inter alia provides:
 That the base year during the transition period shall be reckoned as the
financial year 2015-16 for the purpose of calculating compensation amount
payable to the states;
 That the revenue proposed to be compensated would consist of revenues from
all taxes that stands subsumed into GST law, as audited by the CAG;
 Levy of a cess over and above the GST (named as GST Compensation Cess)
on certain notified goods to compensate States for 5 years on account of
revenue loss suffered by them.

Notified Goods are:

 Pan Masala (60% to 204%)
 Aerated Water (12%)
 Tobacco & Tobacco Product (71%)
 Cigarettes, Cigar, Hookah (21%)
 Motor vehicle ( Nil to 15%)
 Coal, Lignite (₹ 400 / tonne)

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 That the proceeds of the cess will be utilized to compensate States that warrant
payment of compensation;

 That 50% of the amount remaining unutilized in the fund at the end of the fifth year
will be transferred to the Centre and the balance 50% would be distributed amongst
the State and Union Territories in the ratio of total revenues from SGST / UTGST of
the fifth year;

 GST Compensation Cess (under section 8 of the Act) will be levied on all intra-State
and inter-State supplies of goods or services or both, including import of goods;

 The Cess would not be leviable on supplies made by a person who has opted for
composition levy;

What is Composition Levy (sec 10(1) of CGST Act 2017

 Composition scheme under the GST Law is for small taxpayers. The objective of
composition scheme is to bring simplicity and give relief to small taxpayers so that
they need not be burdened with the compliance provisions under the GST Law.
 Moreover, it is an optional scheme and the eligible person can opt to pay a fixed
percentage of turnover as fees every quarter instead of paying at normal rate.
 A registered person, whose aggregate turnover in the preceding financial year did not
exceed ₹ 1.5 crore, may opt to pay, in lieu of the normal tax payable by him, an
amount calculated at such rate as may be prescribed, but not exceeding,-
a. 1 % of the turnover in State or turnover in Union territory in case of a manufacturer
(CGST rate),
b. 2.5 % of the turnover in State or turnover in Union territory in case of persons engaged in
making supplies referred to in clause (b) of paragraph 6 of schedule II, [i.e. supply, by way of
or as part of any service or in any other manner whatsoever, of goods, being food or any other
article for human consumption or any drink (other than alcoholic liquor for human
consumption), where such supply or services is for cash, deferred payment or other valuable
consideration] (CGST rate), and
c. 0.5 % of the turnover in State or turnover in Union territory in case of other suppliers
(CGST rate)

Note:
Like CGST rate, there shall be equivalent rate of SGST / UTGST payable in case of
composition levy. As a result, total GST payable shall be double of the above mentioned
CGST rates. Thus, the maximum total GST rate shall be 2 % or 5 % or 1 %, as the case may
be instead of 1 % or 2.5 % or 0.5%.

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Composite and Mixed Supplies (sec8)

Composite supply means a supply made by a taxable person to a recipient and:
• Comprises two or more taxable supplies of goods or services or both, or any
combination thereof.
• Are naturally bundled and supplied in conjunction with each other, in the ordinary
course of business.
This means that in a composite supply, goods or services or both are bundled owing to
natural necessities. The elements in a composite supply are dependent on the principal
supply.
How to determine the tax liability on composite supplies?
A composite supply comprising of two or more supplies, one of which is a principal supply,
shall be treated as a supply of such principal supply.
Example: Elite Manufacturers entered into a contract with XYZ Ltd. for supply of Ready
made shirts packed in designer boxes at XYZ Ltd.’s outlet. Further, Elite Manufacturers
would also get them insured during transit. In this case, packing materials, transport &
insurance is a composite supply, wherein supply of goods is principal supply.
Example: When a consumer buys a television set and he also gets warranty and a
maintenance contract with the TV, this supply is a composite supply. In this example, supply
of TV is the principal supply, warranty and maintenance services are ancillary.
What is principal supply (sec 2(90) of CGSTAct)
“Principal supply” means the supply of goods or services which constitutes the predominant
element of a composite supply and to which any other supply forming part of that composite
supply is ancillary;
The concept of ‘a principal supply’ emerges only for determining whether a supply is a
composite supply or not, and where it is a composite supply, the rate of tax applicable for the
composite supply.
Principal supply recognizes two or more supplies, and arranges them in a two – step
hierarchy – a single predominant supply and the ancillary supply(ies).
a. Supply of a laptop and a carry case – In this case, the case only adds value to the
supply of laptop and therefore, the case would be ancillary while the laptop comprises
the predominant element of the supply. Even where the brand of the case is not the
same as that of the laptop, and the supplier can establish that the case is naturally
bundled with the laptop in the ordinary course of his business, the supply can be
treated as a composite supply.
b. Supply of equipment and installation / commissioning of the same – While the
recipient actually purchases the equipment, making the equipment the principal
supply, the installation makes the equipment usable by the recipient. Even if there is a
separate charge for the installation of the equipment, since the service is naturally
bundled and Provided in the ordinary course of business, the supply would be a
composite supply.

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Mixed supplies
Mixed supplies means:
 Two or more individual supplies of goods or services, or any combination thereof,
made in conjunction with each other by a taxable person.
 For a single price where such supply does not constitute a composite supply.
The individual supplies are independent of each other and are not naturally bundled.
How to determine the tax liability on mixed supplies?
A mixed supply comprising of two or more supplies shall be treated as supply of that
particular supply that attracts highest rate of tax.
Example: A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry
fruits, aerated drink and fruit juices when supplied for a single price is a mixed supply.
Each of these items can be supplied separately and is not dependant on any other. It shall not
be a mixed supply if these items are supplied separately.
Example: A shopkeeper selling storage water bottles along with refrigerator. Bottles and the
refrigerator can easily be priced and sold separately. So, such supplies are mixed supplies

Procedure for Registration (sec25)

1. Every person who is liable to be registered under section 22 or section 24 shall apply for
registration in every such State or Union territory in which he is so liable within 30 days
from the date on which he becomes liable for registration, in such manner and subject to
such conditions as may be prescribed;
2. A person seeking registration under this Act shall be granted a single registration in a
State or Union territory;
3. A person, though not liable to be registered under section 22 or section 24 may get
himself registered voluntarily, and all provisions of this Act, as are applicable to a
registered person, shall apply to such person.
4. Where a person who has obtained, or is required to obtain registration in a State or Union
territory in respect of an establishment, has an establishment in another State or Union
territory, then such establishments shall be treated as establishments of distinct persons
for the purposes of this Act.
5. Every person shall have a Permanent Account Number issued under the Income-tax Act,
1961 in order to be eligible for grant of registration:
Provided, that a person required to deduct tax under section 51 may have, in lieu of
Permanent Account Number, a Tax Deduction and Collection Account Number issued under
the said Act in order to be eligible for grant of registration.
6. Where a person who is liable to be registered under this Act fails to obtain registration,
the proper officer may, without prejudice to any action which may be taken under this
Act or under any other law for the time being in force, proceed to register such person in
such manner as may be prescribed.

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7. Notwithstanding anything contained in sub-section (1),-

 Any specialized agency of the United Nations Organization or any Multilateral
Financial Institution and Organization notified under the United Nations (Privileges
and Immunities) Act, 1947, Consulate or Embassy of foreign countries; and
 Any other person or class of persons, as may be notified by the Commissioner, shall
be granted a Unique Identity Number in such manner and for such purposes, including
refund of taxes on the notified supplies of goods or services or both received by them,
as may be prescribed.
8. The registration or the Unique Identity Number shall be granted or rejected after due
verification in such manner and within such period as may be prescribed.
9. A certificate of registration shall be issued in such form and with effect from such date as
may be prescribed.

Cancellation of Registration (29)

Any Registration granted under this Act may be cancelled by the Proper Officer when –
 The business is discontinued, transferred fully for any reason including death of
proprietor, amalgamate with other legal entity, demerged or otherwise disposed of; or
 There is any change in the constitution of the business; or
 The taxable person is no longer liable to be registered under section 22.
This is possible after the persons is afforded an opportunity of being heard (except no such
opportunity need to be provided in case the application is filed by the registered taxable
person or his legal heirs, in the case of death of such person, for cancellation of registration)
when –
 The registered taxable person has contravened such provisions of the Act or the rules
made there under as may be prescribed; or
 A person paying tax under Composition Scheme has not furnished returns for three
consecutive tax periods; or
 Any taxable person who has not furnished returns for a continuous period of six
months; or
 Any person who has taken voluntary registration and has not commenced business
within six months from the date of registration;
Where registration has been obtained by means of fraud, wilful misstatement or
suppression of facts.
As such, cancellation of registration, shall not affect the liability of the taxable person to pay
tax and other dues under the Act for any period prior to the date of cancellation whether or
not such tax and other dues are determined before or after the date of cancellation.
PLACE OF SUPPLY
The ‘location of the supplier’ and ‘place of supply’ is principally essential to determine
whether the supply is an inter – State or an intra – State supply (i.e., where location of
supplier and place of supply are in the same State or Union Territory, the supply would be an
intra – State, and will be an inter – State supply in any other case).

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Location of Supplier of Goods

Location of supplier of goods is the term not defined in law.
The word ‘location’ in this phrase refers to the site or premises (geographical point) where
the supplier is situated with the goods in his control ready to be supplied or in other words it
is the physical point where the goods are situated under the control of the person wherever
incorporated or registered, ready to be supplied.
Location of the supplier of services” Sec2 (15) of IGST Act)
“Location of the supplier of services” means,-
a) Where a supply is made from a place of business for which the registration has been
obtained, the location of such place of business;
b) Where a supply is made from a place other than the place of business for which
registration has been obtained (a fixed establishment elsewhere), the location of such
fixed establishment;
“Location of the supplier of services” means,-
c) Where a supply is made from more than one establishment, whether the place of
business or fixed establishment, the location of the establishment most directly
concerned with the provisions of the supply; and
d) In absence of such places, the location of the usual place of residence of the supplier.

Place of supply of goods- supplies within India (sec 10 of IGST Act)

i. Where ‘supply involves movement’, the place of supply will be the place where
the goods are located at the time at which the movement terminates for delivery to
the recipient.
ii. Where the goods are assembled or installed at site, the place of supply will be the
location of such installation or assembly.
iii. Where goods are supplied on – board a conveyance, the place of supply will be
the location at which the goods are taken on – board.

Place of supply of goods –imported or Exported (sec 11 of IGST Act)

 Import of Goods [ Sec. 2 (10) of IGST Act]
Means bringing goods into India from a place outside India.
 Export of Goods [Sec 2(5) of IGST Act]
Means taking goods out of India to a place outside India.
With these definitions which are with reference to the movement of goods and not the
location of the supplier or recipient. The place of supply will be:
i.In the case of import of goods, the location of the importer and
ii. In the case of export of goods, the location outside India where the goods are exported

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KSLU Past Examination Questions:

1. An assessee was an authorized dealer of Sony electronics products which were sold to
different customers in Karnataka under the Direct billing from Sony Ltd in Delhi. Is
there a sale in the course of inter – state trade or commerce? Give reasons [D,15]
[D,17]

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