H4 -GST @ GVC – Class

1st March 2021, Monday

Spark for the Day “…Success is the sum of small efforts

repeated day in and day out” -Robert Collier

Today’s Topics:

1. Place of supply
2. Levy and collection of Central/State GST

3. Power to grant exemption from tax

Place of Supply

Nature of supply Place of supply

Where supply involves the movement of Location of the goods at the time of
goods, whether by the supplier or the delivery to the recipient
recipient or by any other person
Goods are delivered to the recipient, or Principal place of business of such
any person on the direction of the third person – Example- Midhun of
person by way of transfer of title or Palakkad ships goods to Murukan of
otherwise, it shall be deemed that the Tamil Nadu on the instructions of
third person has received goods Hariraj in Palakkad. The transaction is
intra-state supply
Where there is no movement of goods Location of such goods at the time of
either by supplier or recipient delivery to the recipient
Where goods are assembled or installed The place where the goods are
at site assembled or installed
Where the goods are supplied on-board The place where such goods are taken

Page 1 of 5
a conveyance like a vessel, aircraft, train onboard
or motor vehicle
Import of goods Location of importer
Export of goods Location of the exporter
Immovable property related to services, Location of hotel
including hotel accomodation
Passenger Transportation B2B: Location of such registered
person
B2C: Place where the passenger
embarks the conveyance for continuous
journey.
Organisation of an event Location where the event is actually
held
Example 1: Vijay of Tamil Nadu has been advised to take an ayurvedic

treatment at Palakkd. What is place of supply?

Supply: supply of service, Place of supply –Palakkad Kerala, CGST + SGST

Example 2: Best Event Managers of Kerala is hired by Mahindra Ltd

(Gujarat) to organize their annual sales event in Kochi. What is place of

supply?

Supply: supply of service, place of supply – Kochi, Kerala, CGST + SGST

Example 3: Raj is travelling from Mumbai to Delhi by air. He purchases

coffee and snacks while on the plane. The airlines is registered in both

Mumbai and Delhi.

Place of supply will be Mumbai as the food items were loaded into the plane

at Mumbai. So, place of supply becomes Mumbai.

Page 2 of 5
Levy and Collection of GST

Levy of Tax means the imposition of taxes as well as assessment of tax

but it does not include collection of tax. Levy of GST means imposition of

GST and then determining the amount of tax.

Collection of tax means the point of time for payment of tax.

Levy of tax occurs as soon as taxable event takes place i.e., supply of goods

or services. Collection of tax is done at the later stage i.e., either monthly

or quarterly for administrative convenience.

Levy and collection of IGST

1. To be levied on all inter-state supplies of goods and/ or services

2. Supplies to be in the course of inter-state trade or commerce

3. Value determined u/s 15 of CGST Act (Value of taxable supply)

4. To be paid by every taxable person

5. IGST shall also be collected at the time of import of goods into India

6. Alchoholic liquor is out of the purview of GST. Hence IGST cannot be

imposed.

7. Maximum rate of IGST shall not exceed 40%

Levy and collection of CGST

1. CGST shall be levied on all intra state supplies

2. Alcoholic Liquor is out of the purview of GST.

Page 3 of 5
3. The value on which CGST imposed shall be determined as per section 15

4. Maximum rate of CGST shall not exceed 20%

5. Rate of CGST shall be notified by Central Government on

recommendation of GST Council from time to time.

6. Selected petroleum goods are non taxable supply under GST

7. Composition levy is the method of levy of tax for small tax payers.

Power to grant exemption from GST

Power to grant exemption may be:

1. By notification: Where the Government is satisfied that it is necessary in

the public interest so to do, it may, on the recommendations of the Council,

by notification, exempt either absolutely or subject to such condition as may

be specified therein, goods or services or both of any specified description

from the whole or any of the tax leviable thereon with effect from such

date as may be specified in the notification.

a. Central / State Government has the power to reduce GST rates by

issuing exemption notification.

b. The exemption should be in the public interest

c. The exemption notification can be issued only based on the

recommendations of GST Council.

d. The exemption can be either absolute or subject to conditions.

Page 4 of 5
e. The exemption can be in respect of goods or services or both of any

specified description

f. The exemption can be from the whole or any part of the tax leviable

thereon

2. By way of special order in exceptional cases

1. The Central Government has the power to grant the exemption, in

the public interest, in exceptional circumstances by special order.

2. Such exemption can be only on the recommendation of the GST

Council.

3. It is not necessary to publish the order in the official gazette.

4. Special exemption can be given to a specific category.

Examples for Exempted Goods under GST

Fruits and vegetables, cereals, meat and fish, potatoes, tender coconut, tea
leaves, jaggary, coffee beans, ginger, turmeric, milk, curd, salt etc.
Raw silk, wool, Gandhi topi, Khadi yarn, handloom, Indian National Flag,
News papers, journals and periodicals, firewood etc.
Agricultural tools, handmade musical instruments, hearing aids, tools used
by physically challenged persons, maps, vaccines etc.
Examples for exempted services under GST
Services by RBI, public conveniences, services by veterinary clinic, entity
registered (Income tax Act) for charitable activities, providing information
under RTI Act, 2005, renting of residential property for residential purpose
etc.

Thank you…. Have a nice day…

Page 5 of 5