Notes GST

“ANTI PROFITEERING UNDER GST
LAW”
Anti Profiteering under GST law
Section 171 of the Central Goods and Services Tax Act, 2017
provides for Anti Profiteering measure.
As per Sub Section1 of Sec 171 of C GST ACT,2017, “Any reduction in
rate of tax on any supply of goods or services
or the benefit of input tax credit shall be passed on to the recipient by
way of commensurate reduction in prices.”
Major areas where Anti profiteering cases registered in GST law
Restaurants
Real Estates
Works Contracts
Residential construction services
Malls
FMCG Sector
Pharmaceuticals
The anti-profiteering body under the goods and services tax
framework is seeking details on pricing strategies from consumer
goods companies and over-the-counter (OTC) drug makers to check
whether they have passed on the benefits of reduced GST rates to
consumers.
Letters seeking details were issued to companies in and sales heads of
these companies were asked to give details of their cost accounting,”
In the past, some companies, including Patanjali Ayurved, Hindustan Unilever

(HUL), Procter & Gamble (P&G), Nestle and Hard castle Restaurants, had
been either slapped with a fine or questioned for apparently failing to
pass on the benefits of a tax rate reduction to consumers.
Objective of Anti profiteering
In simple words, it meant that if businesses failed to pass
on higher availability of credit, and therefore lower
input costs, to the ultimate consumer, they could face
penal action.
Mostly, this meant that GST benefits must result in a fair
reduction of prices.
To counter these anti-profiteering rules became a must. Thus, anti-
profiteering measures at the retail level to protect consumers from
price hikes were initiated. These rules were initiated in India to avoid
making any profits on cost of others.
The best part under GST is that mostly all industries will be affected
with respect to passing of credit benefit due to a better credit
claiming mechanism under the this regime.
Be it service sector, manufacturing, trading, or any specific
industry, all are going to gain due to a better flow of input tax
credit
CONSUMER WELFARE FUND
Consumer Welfare Fund
The Consumer Welfare Fund Rules were framed and notified in the
Gazette of India in 1992, which have been incorporated in Consumer
Welfare Fund Rule 97 of the CGST Rules, 2017. Consumer Welfare
Fund has been setup under section 57 of the CGST Act, 2017.
Consumer Welfare Fund was created to promote and protect the
welfare of consumer, create consumer awareness and strengthen
consumer movement in the country, particularly in rural areas.
Amount of refund which is not payable to the applicant is credited to
the Consumer Welfare Fund. The amount of refund is paid to the
applicant in case where there is no unjust enrichment; i.e. the incidence
of tax has not been passed by the supplier to the recipient as also in
the circumstances where the principle of unjust enrichment is not
applicable. Otherwise, the said amount is credited to the Consumer
Welfare Fund.
Financial assistance from CWF is given to various Institutions including Universities, Voluntary
Consumer Organization (VCOs) and States to promote and protect the welfare and interests
of the consumers, create consumer awareness and strengthen consumer movement in the
country. Grants from CWF have been given for the following major projects:
Creation of Consumer Law Chairs/ Centres of Excellence in Institutions/Universities of repute

to foster research and training on consumer related issues.
Projects for spreading consumer literacy and awareness.
Establish Corpus Fund at the State level, through co-contribution.
Before sanctioning grants proposals are invited for seeking financial assistance from the
Consumer Welfare Fund from eligible VCOs/NGOs/Academic Institutions in
digital/electronic format.
Utilization of consumer welfare fund
All sums credited to the Consumer Welfare Fund shall be utilized by the Government for the
welfare of the consumers in such manner as may be prescribed
The Government shall, by an order, constitute a Standing Committee who shall make
recommendations for proper utilization of the money credited to the Consumer Welfare Fund
for welfare of the consumers.
The Central Consumer Protection Council and the Bureau of Indian Standards shall
recommend to the GST Council, the broad guidelines for considering the projects or
proposals for the purpose of incurring expenditure from the Consumer Welfare Fund.
The Government or the authority specified by is required to maintain proper and separate
account and other relevant records in relation to the Fund and prepare an annual statement
of accounts in such form as may be prescribed in consultation with the Comptroller and
Auditor-General of India.
Person who may apply for grant from Consumer
Welfare Fund
Any agency or organization engaged in consumer welfare activities for a
period of 3 years registered under the provisions of the Companies Act,
2013 or under any other law for the time being in force, including village
or mandal or samiti level cooperatives of consumers especially
Women, Scheduled Castes and Scheduled Tribes, or any industry as
defined in the Industrial Disputes Act, 1947 recommended by the Bureau of
Indian Standards to be engaged for a period of five years in viable and
useful research activity which has made significant contribution in
formulation of standard mark of the products of mass consumption.
The Central Government or the State Government may make an application
for a grant from the Consumer Welfare Fund
Person who may apply for grant from Consumer
Welfare Fund
Any agency or organization engaged in consumer welfare activities for a
period of 3 years registered under the provisions of the Companies Act,
2013 or under any other law for the time being in force, including village
or mandal or samiti level cooperatives of consumers especially
Women, Scheduled Castes and Scheduled Tribes, or any industry as
defined in the Industrial Disputes Act, 1947 recommended by the Bureau of
Indian Standards to be engaged for a period of five years in viable and
useful research activity which has made significant contribution in
formulation of standard mark of the products of mass consumption.
The Central Government or the State Government may make an application
for a grant from the Consumer Welfare Fund
ADVANCE RULINGS
What is Advance Rulings?
“Advance ruling” means a decision provided by the Authority or the
Appellate Authority to an applicant on matters or on questions specified
in sub-section (2) of section 97 or subsection (1) of section 100 of the
CGST Act, 2017, in relation to the supply of goods or services or both
being undertaken or proposed to be undertaken by the applicant.
Advance Rulings
An advance ruling helps the applicant in planning his activities which are
liable for payment of GST, well in advance. It also brings certainty in
determining the tax liability, as the ruling given by the Authority for
Advance Ruling is binding on the applicant as well as Government
authorities.
A legally constituted body called Authority for Advance Ruling (AAR) can
give a binding ruling to an applicant who is a registered taxable person or
is liable to be registered. The advance ruling given by the Authority can be
appealed before an Appellate authority for Advance Ruling (AAAR). There
are time lines prescribed for passing an order by AAR and by AAAR.
Objectives of Advance Ruling
The broad objectives for setting up a mechanism of Advance Ruling
are:
a. Provide certainty in tax liability in advance in relation to an activity
proposed to be undertaken by the applicant;
b. Attract Foreign Direct Investment (FDI)
c. Reduce litigation
d. Pronounce ruling expeditiously in a transparent and inexpensive
manner
What are the matters/questions specified in Section 97(2) & Section
100(1) of the CGST Act, 2017
A. Classification of any goods or services or both

B. Applicability of a notification issued under the provisions of CGST Act
C. Determination of time and value of supply of goods or services or both
D. Admissibility of input tax credit of tax paid or deemed to have been
paid services or both
E. Whether applicant is required to be register
F. Whether any particular thing done by the applicant with respect to any
goods or services or both amounts to or results in a supply of goods or
services or both, within the meaning of that term.
Authority for advance ruling’ (AAR) and ‘Appellate authority for
advance ruling’ (AAAR)
The Authority for advance ruling constituted under the provisions of State Goods and
Services Tax Act or Union Territory Goods and Services Tax Act shall be deemed to be the
Authority for advance ruling in respect of that State or Union territory under the CGST Act,
2017 also.
The Appellate Authority for Advance Ruling constituted under the provisions of a State
Goods and Services Tax Act or a Union Territory Goods and Services Tax Act shall be
deemed to be the Appellate Authority in respect of that State or Union territory under the
CGST Act, 2017 also.
Thus it can be seen that both the Authority for Advance Ruling (AAR) & the Appellate
Authority for Advance Ruling (AAAR) is constituted under the respective State/Union
Territory Act and not the Central Act. This would mean that the ruling given by the AAR &
AAAR will be applicable only within the jurisdiction of the concerned state or union
territory. It is also for this reason that questions on determination of place of supply
cannot be raised with the AAR or AAAR.
To whom the Advance Ruling is applicable
An advance ruling pronounced by AAR or AAAR shall be binding only

on the applicant and on the concerned officer or the jurisdictional
officer in respect of the applicant. This clearly means that an advance
ruling is not applicable to similarly placed other taxable persons in
the State. It is only limited to the person who has applied for an
advance ruling.
Procedure for obtaining Advance Ruling
The applicant desirous of obtaining advance ruling should make application to AAR in a prescribed form and manner. The
format of the form and the detailed procedure for making application have been prescribed in the Advance Ruling Rules.
Upon receipt of an application, the AAR shall send a copy of application to the officer in whose jurisdiction the applicant falls
and call for all relevant records. The AAR may then examine the application along with the records and may also hear the
applicant. Thereafter he will pass an order either admitting or rejecting the application.
Application for advance ruling will not be admitted in cases where the question raised in the application is already pending or
decided in any proceedings in the case of an applicant under any of the provisions of this Act
If the application is rejected, it should be by way of a speaking order giving the reasons for rejection.
If the application is admitted, the AAR shall pronounce its ruling within ninety days of receipt of application. Before giving its
ruling, it shall examine the application and any further material furnished by the applicant or by the concerned departmental
officer.
Before giving the ruling, AAR must hear the applicant or his authorised representative as well as the jurisdictional officers of
CGST/SGST.
If there is a difference of opinion between the two members of AAR, they shall refer the point or points on which they differ to
the AAAR for hearing the issue. If the members of AAAR are also unable to come to a common conclusion in regard to the
point(s) referred to them by AAR, then it shall be deemed that no advance ruling can be given in respect of the question on
which difference persists at the level of AAAR.
Powers and procedure of AAR and AAAR
Both the AAR and AAAR are vested with the powers of a civil court under Code of Civil
Procedure, 1908, for discovery and inspection, enforcing the attendance of a person
and examining him on oath, and compelling production of books of account and other
records.
Both the authorities are deemed to be a civil court for the purposes of section 195 of
the Code of Criminal Procedure, 1973.
Any proceeding before the authority shall be deemed to be judicial proceeding under
section 193 and 228 and for the purpose of section 196, of the Indian Penal Code,
1860.
The AAR and AAAR also have the power to regulate their own procedure.
Composition Levy
Composition levy is an alternate method of levy of GST
for small taxpayers. This levy is popularly known as
Composition Scheme and is applicable for supplier of
goods/restaurant service.
A service provider (except restaurant service provider)

cannot opt for the Composition Scheme.
Alternative Composition Levy
GST Council (in its 32nd Meeting) has recommended an
Alternative Composition Scheme for mixed suppliers (who
are engaged in supply of services as well as goods).
Under the Alternative Composition Scheme, a supplier of
service ( and/or goods) can opt for payment of GST at
the rate of 6 per cent, if a few conditions are satisfied.
Casual taxable person
Casual taxable person means a person who
occasionally under takes transactions involving supply of
goods/ services in the course or furtherance of business
(whether as principal, agent or in any other capacity) in a
State/Union Territory where he has no fixed place of
business.
A casual taxable person making taxable supply in India has
to compulsorily take registration under normal provisions.
There is no threshold limit for registration.
A casual taxable person cannot exercise the option to pay
tax under Composition Scheme.
Casual taxable person must apply for registration at least 5
days prior to the date of commencement of Trade Fair.
Threshold limit for small taxpayers
Small taxpayers having turnover up to Rs . 20 lakh [Rs.
10 lakh in the case of specified States [Manipur,
Mizoram, Nagaland and Tripura] or Rs.40 lakh in case
the taxpayer is exclusively engaged in supply of goods,
if a few conditions are satisfied, are not required to
register under GST.
Once a person obtains registration, he is liable for GST
even if his turnover is less than Rs . 20 lakh (or Rs. 10
lakh/Rs. 40 lakh).
Conditions for Opting Composition Levy
Turnover
Aggregate turnover of the taxpayer in the immediately preceding
financial year should not exceed the amount given below:
Applicable from April 1, 201 9
Eligible registered person This limit was Rs. 75L up to October 12, 2017 and
Rs. 1.5 crore
(in any State other than given below ) Rs.1 Cr. during October 13, 2017 and March 31, 2019
Eligible registered person in
a.Arunachal Pradesh
Prior to April 1, 2019, these States are
Arunachal Pradesh, Assam, Manipur,
b.Manipur
Meghalaya, Mizoram, Nagaland, Sikkim,
c.Meghalaya
Tripura and Himachal Pradesh.
d.Mizoram Rs. 75 lakh This limit was Rs. 50 lakh upto October 12,
e.Nagaland 2017
f.Sikkim
g.Tripura
h.Uttarakhand
Aggregate Turnover
To become eligible for Composition Scheme, aggregate turnover
of the taxpayer in the immediately preceding financial year is
considered.
For this purpose, aggregate turnover means the aggregate
value of -
1. All taxable supplies. Aggregate turnover
is computed on all
2. Exempt supplies. India basis.
3. Exports of goods/services.
4. Inter-State supplies.
Aggregate turnover does not include the following -
- Value of inward supplies on which tax is payable under
reverse charge mechanism.
- Amount of GST (i.e. , IGST, CGST, SGST /UTGST).
Eligible person
SUPPLY OF GOODS:
A registered person, who is in the business of supply of goods,
can opt for Composition Scheme. However, a manufacturer of
the following goods is not eligible for Composition Scheme -
- Ice-cream and other edible ice, whether or not containing
cocoa.
- Pan masala.
- Aerated water.
- Tobacco and manufactured tobacco.
Eligible person
SUPPLY OF SERVICES:
Supply of food - If the taxpayer is engaged in supply of
services [being supply of food/ any other article for human
consumption/ any drink (other than alcoholic liquor) for cash,
deferred or any other valuable consideration], then he can opt
for Composition Scheme, if other condition are satisfied.
Supply of any other service: If the taxpayer is engaged in
supply of any other service, he cannot opt for Composition
Scheme.
With a view to enable such taxpayer to avail of the benefit of
Composition Scheme, the relevant provision has been amended
(with effect from February 1, 2019). However, after the
amendment, one can opt for Composition Scheme only if the
value supply of services does not exceed 10 per cent of the
turnover in the preceding financial year in a State/Union
Territory or Rs. 5 lakh, whichever is higher
Conditions and restrictions
1. He is neither a casual taxable person nor a non-resident
taxable person.
2. He is not engaged in making any supply of goods which is
not leviable to tax under GST.
3. He is not engaged in making any inter-State outward supply
of goods.
4. He was not engaged in the manufacture of Ice-cream and
other edible ice, Pan masala, Aerated water, Tobacco during
the preceding financial year.
5. He is not engaged in making any supply of goods through
an e-commerce operator who is required to collect tax under
section 52.
Conditions and restrictions (Continued.)
6. Goods held in stock by him on the day (when he becomes
eligible for Composition Scheme) should not have been
purchased in the course of inter-State trade/ commerce or
imported from a place outside India. Likewise, he should not
have received goods from his branch situated outside the
State or from his agent/ principal outside the State.
7. The goods held in stock by him should not have been
purchased from an unregistered supplier.
8. If any inward supply is covered by reverse charge
mechanism; the registered person opting for Composition
Scheme will have to pay tax under reverse charge
mechanism.
9. He shall mention the words "Composition taxable person, not
eligible to collect tax on supplies" a t the top of the bill of
supply issued by him.
Conditions and restrictions (Continued.)
10. He shall mention the words " composition taxable person" on
every notice or signboard displayed at a prominent place at his
principal place of business and at every additional place or places
of business.
11. The registered person paying tax under Composition Scheme may
not file fresh intimation every year and he may continue to pay
tax under the said scheme subject to relevant conditions.
12. A registered person who has opted for Composition Scheme is not
permitted to collect GST. He will have to pay GST out of his
pocket (in other words, he cannot collect GST from his customers,
GST will have to be borne out of sale proceeds)
13. A registered person opting for Composition Scheme, cannot avail
the benefit of input tax credit.
14. All registered persons having the same permanent account number
(PAN) will have to opt for Composition Scheme.
GST Rates under composition scheme
A Registered person who has opted for Composition Scheme,
cannot collect GST from his customers He will have to pay
GST out of his own pocket.
Category of Registered Person Rate of Tax
1% [CGST 0.5% and SGST 0.5%]
Manufacturers other than Manufacturers of Ice-cream and
of turnover in the state or union
other edible ice, Pan masala, Aerated water, Tobacco
territory
5% [CGST 2.5% and SGST 2.5%]
Restaurant services of turnover in the state or union
territory
1% [CGST 0.5% and SGST 0.5%]
Traders or any other supplier eligible for Composition Levy of turnover of taxable supplies in
the state or union territory
Voluntary withdrawal from Composition Scheme
registered person under Composition Scheme can withdraw
from the Composition Scheme voluntarily.
For withdrawal, one has to file a duly signed or verified
application in Form GST CMP-04.
Compulsory withdrawal from Composition Scheme
Compulsory withdrawal is required, if a person (availing
Composition Scheme ) crosses the turnover of Rs. 75 L / Rs.
1.5 Cr during the financial year.
Alternative Composition Scheme
GST Council (in its 32nd Meeting) has recommended an
Alternative Composition Scheme for mixed supplier to pay GST
at the rate of 6 per cent. To give effect to this
recommendation, the Government has issued Notification No.
2/2019, dated March 7, 2019. The Finance (No. 2) Act, 2019
has inserted sub-section (2A) in section 10 of CGST Act for this
purpose .
Salient features of Alternative Composition
Scheme
Effective date:
The Alternative Composition Scheme is applicable with effect from
April 1, 2019.
Intra-State supply:
The Alternative Composition Scheme is applicable for intra-State
supply of goods or services or both.
Turnover not more than Rs. 50 lakh of preceding year:
The Alternative Composition Scheme is available to registered
persons whose "aggregate turnover" in the preceding financial year
is Rs. 50 lakh (or less). The aggregate turnover has to be calculated
on PAN-India basis.
Not applicable to a person covered by Composition Scheme:
The Alternative Composition Scheme applies to a registered
person only if he is not eligible for Composition Scheme.
Ineligible person
The registered person (who wants to avail of the benefit of
Alternative Composition
Scheme)-
a. should not be engaged in making any supply which is not
leviable to GST;
b. should not be engaged in making any inter-State outward
supply;
c. should not be a casual taxable person or a non-resident
taxable person;
d. should not be engaged in making supply through e-
commerce operator (who is liable to TDS under section 52),
and
e. should not be engaged in making supply of a few goods
[i.e., ice cream and other edible ice , panmasala , aerated
water or tobacco and manufactured tobacco substitutes
Special GST rate 6 per cent
GST is payable under the Alternative Composition Scheme at
the rate o f 6
per cent (ie., CGST : 3 per cent+ SGST : 3 percent) .
Applicable only f or first supplies of Rs. 50 Lakh/,

GST at the aforesaid rate of 6 percent under the Alternative
Composition Scheme is applicable for the first supplies of
goods or services or both up to an aggregate turnover of Rs.
50 lakh made on or after April 1 in any financial year by a
registered person .
Question 1
X is engaged in intra state supply of goods and services in Chennai. His turn over for
the financial years 2018-19 and 2019 -20 are given below:
Financial year Financial year
Particulars 2018-19 2019-20
Taxable Exempt Total Taxable Exempt Total
Supply of goods (stationery items / books) 10 5 15 11 6 17
Supply of services by way of ex tending deposits,
loans or advances where consideration is - 42 42 - 44 44
represented by way of interest or discount)
Supply of other services 22 8 30 20 10 30
Total 32 55 87 31 60 91
Up to March 31, 2019, X is a registered person who has not opted for Composition
Scheme/ Alternative Composition Scheme under section 10. He wants to op t for
Alternative Composition Scheme with effect from April 1, 2019 .
Is it possible? If yes , find out the tax liability of X for the financial year 2019-20 under
Alternative Composition Scheme.
X is not engaged in making inter-State supply . He does not supply through e-commerce
operator.
Answer 1
Taxpayer is not engaged in making inter-State supply. He does not supply
through e-commerce operator. From the information given in the problem it
appears that the taxpayer is not a casual taxable person/non-resident taxable
person.
Apart from satisfying these conditions, a taxpayer can opt for Alternative
Composition Scheme, if he satisfies the following criteria –
Criteria 1 - The aggregate turnover of the preceding financial year does not
exceed Rs. 50 lakh. Aggregate turnover, for this propose, includes all taxable
and exempt supplies but does not include the value of exempt supply by way
of extending Loan / advance/ deposit (if consideration is payable by way of
interest or discount).
Criteria 2 - The taxpayer is not eligible for normal Composition Scheme under
section 10(1) (i.e., he is not engaged in supply of services or quantum of
supply of services is not more than 10% of total turnover or Rs. 5 lakh,
whichever is higher).
To find out whether X satisfies these criteria, one has to redraft the table given
in the problem (after ignoring interest on deposit/loan/ advance, which is not
included in turnover for this purpose). After excluding interest on deposits, the
data will be as follows -
Answer
Financial year Financial year
Particulars 2018-19 2019-20
Taxable Exempt Total Taxable Exempt Total
Supply of goods (stationery items / books) 10 5 15 11 6 17
Supply of services by way of ex tending deposits,
loans or advances where consideration is - 42 42 - 44 44
represented by way of interest or discount)
Total 32 55 87 31 60 91
Financial year
Particulars
2018-19 2019-20
Supply of goods (stationery items/books) 10 5 15 11 6 17
Total 32 13 45 31 16 47
Answer
Financial year
Particulars
2018-19 2019-20
Supply of goods (stationery items/books) 10 5 15 11 6 17
Total 32 13 45 31 16 47
On April 1, 2019, X wants to opt for Alternative Composition Scheme. His turnover for the
preceding financial year 2018-19 does not exceed Rs . 50 lakh. He satisfies Criteria 1.
Turnover of supply of services of the preceding year is Rs . 30 lakh out of the total turnover
of Rs . 45 lakh. Turnover of supply of service is more than 10% of total turnover.
Consequently, he satisfies Criteria 2 [i.e., he is not eligible for normal Composition Scheme
under section 10(1)].
Answer
X can opt for Alternative Composition Scheme with effect from April 1, 2019 . His tax
liability for the financial year 2019-20 will be a s follows –
Turnover of the financial year 2019-20 4700000
CGST (3% of Rs. 47,00,000) 141000
SGST (3% of Rs. 47,00,000) 141000
GST 282000
X is required to pay GST of Rs. 2,82,000 out of his pocket. He cannot collect any GST from
the recipients of supply made by him.
Special features for GST payments under Alternative
Composition Scheme
GST not to be collected from outward supply :
Input tax credit not available
Bill of supply ,instead of tax invoice, to be issued
Liable for payment of GST under reverse charge mechanism (wherever applicable)
GST at 6 per cent applicable even on exempt supplies
GST at 6 Percent applicable on first supplies of goods / services up to Rs.50L
GST Returns Mechanism: Basic Features
• The basic features of the returns mechanism in GST include:

• Electronic filing of returns,
• Uploading of invoice level information and auto-population of information relating to input tax credit from returns of supplier to that of
recipient,
• Invoice-level information matching and
• Auto-reversal of input tax credit in case of mismatch.
• Mechanism is designed to assist the taxpayer to file returns and avail input tax credit.
• A regular taxpayer needs to furnish monthly/quarterly returns and one annual return.
• There are separate returns for a taxpayer registered under the Composition Scheme/Alternative Composition Scheme, non-resident
taxpayer, taxpayer registered as an Input Service Distributor, a person liable to deduct or collect the tax (TDS/TCS) and a person granted
Unique Identification Number.
• Taxpayers are required to file returns depending on the activities they undertake.
Basic Features Contd..
• All the returns are to be filed online.

• Returns can be filed using any of the following method –
• GSTN portal (www.gst.gov.in).
• Offline utilities provided by GSTN.
• GST Suvidha Providers (GSPs) [if a taxpayer uses the services of ERP providers
(such as Tally, SAP, Oracle, etc.),
Different Types of Returns and their Details
Description Who files Filing date
Return
GSTR -1 Monthly statement of outward Registered person 10th of the next month
supplies of goods or services
GSTR-2 Monthly statement of inward Registered person 15th of the next month
supplies of goods or services
GSTR-3 Monthly return for a normal Registered person 20th of the next month
taxpayer
GST Quarterly return Taxable person opting 18th of the month succeeding the quarter
CMP-08 for Composition
Scheme or Alternative
Composition Scheme
GSTR-5 Monthly return for a non-resident Non-resident taxpayer 20th of the month succeeding the tax
tax payer period and within 7 days after expiry of
registration
Return Description Who files Filing date
GSTR-6 Monthly return for an input Inputs Service Distributor 13th of the next month
service distributor (ISD)
GSTR -7 Monthly return for authorities Tax deductor 10th of the next month
deducting tax at source
GSTR-8 Monthly statement by e- E-commerce operator 10th of the next month
commerce operator depicting
supplies effecting through it
GSTR-9 Annual return Registered person (other than ISD, 3lst December of next financial year
TDS/TCS taxpayer, casual taxable
person and non-resident taxpayer)
GSTR-10 Final return Taxable person whose registration Within 3 months of the date of
has been surrendered or cancelled cancellation
GSTR-9A Annual return Taxable person opting for April 30 th after the end of financial
Composition Scheme or Alternative year
Composition Scheme
Matching, Reversal and Reclaim of Input Tax Credit
• Details of every inward supply furnished by a recipient for a tax period are
matched as follows:
• With the corresponding details of outward supply furnished by the corresponding supplier in
his valid return for the same tax period or any preceding tax period
• With the IGST paid under section 3 of the Customs Tariff Act (in respect of goods imported)
For duplication of claims of input tax credit.
• The claim of input tax credit in respect of invoices relating to inward supply that
match with the details of corresponding outward supply (or with the IGST paid on
imports) shall be finally accepted and such acceptance shall be communicated to
the recipient through common portal.
• Claim of input tax credit accepted - The claim of input tax credit in respect of
invoices relating to inward supply that match with the details of corresponding
outward supply (or with the IGST paid on imports) shall be finally accepted and
such acceptance shall be communicated to the recipient in Form GST MIS-1
through common portal.
• Subsequent acceptance - The claim of input tax credit in respect of any tax
period which had been communicated as mismatched but is found to be matched
after rectification by the supplier or recipient shall be finally accepted and made
available electronically to the person making such claim in Form GST MIS-1
through the common portal.
• Excess claim - Where the input tax credit claimed by a recipient in respect of an inward
supply is in excess of the tax declared by the supplier for the same supply (or the
outward supply is not declared by the supplier) in his valid returns, the discrepancy shall
be communicated to both such persons.
• Where the discrepancy is not rectified, an amount to the extent of discrepancy shall be
added to the output tax liability of the recipient in his return to be furnished in Form
GSTR-3 for the month succeeding the month in which the discrepancy is made available
• The amount claimed as input tax credit that is found to be in excess on account of
duplication of claims shall be added to the output tax liability of the recipient in his
return for the month in which the duplication is communicated.
• Interest payable by recipient - If because of aforesaid adjustments, output

tax liability of recipient is increased, he shall be liable to pay interest at the rate
of 18 per cent per annum on the amount so added from the date of availing the
credit till the corresponding additions are made.
Electronic Liability Ledger
• All liabilities of a taxable person under GST shall be recorded and maintained in Electronic
Liability Ledger
• It shall be maintained for each person liable to pay tax, interest, penalty, late fee or any other
amount
• All amounts payable by him shall be debited to the said register.
• Payment of every liability by a person as per his return shall be made by debiting the electronic
credit ledger or the electronic cash ledger and the Electronic Liability Register shall be credited
accordingly.
• The amount of TDS/TCS or amount payable on reverse charge basis, or the amount payable by
a Composition Scheme/Alternative Composition Scheme dealer, any amount payable towards
interest, penalty, fee or any other amount under the Act shall be paid by debiting the electronic
cash ledger and the electronic liability register shall be credited accordingly.
Electronic Credit Ledger
The Electronic Credit Ledger shall be maintained in Form GST PMT-02 for each
registered person eligible for input tax credit on the common portal.
.
Every claim of input tax credit shall be credited to the said ledger.
The electronic credit ledger shall be debited to the extent of discharge of any
liability.
Where a registered person has claimed refund of any unutilized amount from the
Electronic Credit Ledger, the amount to the extent of the claim, shall be debited in
the said ledger.
If the refund so filed is rejected, the amount debited (as stated above), to the
extent of rejection, shall be re-credited to the electronic credit ledger
Electronic Cash Ledger
• The Electronic Cash Ledger shall be maintained for each person, who is liable
to pay tax, interest, penalty, late fee or any other amount under GST.
• This ledger is maintained on the common portal for crediting the amount
deposited and debiting the payment therefrom towards tax, interest, penalty, fee
or any other amount.
• Challan - Any person shall generate a challan on the common portal and enter
the details of the amount to be deposited by him towards tax, interest, penalty,
fees or any other amount.
• Challan is generally valid for a period of 15 days.
• Mode of deposit - The deposit of tax, interest, penalty, etc., shall be made through any of the following
modes:
• Internet Banking through authorised banks.
• Credit card or Debit card through the authorised bank
• National Electronic Fund Transfer or Real Time Gross Settlement from any bankOver the counter
payment through authorised banks for deposits up to Rs. 10,000 per challan per tax period by cash,
cheque or demand draft.
• Payment by unregistered person - Any payment required to be made by a person who is not registered,
shall be made on the basis of a temporary identification number generated through the common portal.
• Challan Identification Number (CIN) –

• On successful credit of the amount to the concerned government account maintained in the authorised
bank, a CIN shall be generated by the collecting bank and the same shall be indicated in the challan.
• On receipt of the CIN from the collecting bank, the said amount shall be credited to the Electronic Cash
Ledger of the person on whose behalf the deposit has been made and the common portal shall make
available a receipt to this effect.
• Transfer - A registered person may, on the common portal, transfer any amount of tax, interest, penalty,
fee or any other amount available in the Electronic Cash Ledger to the electronic cash ledger for IGST,
CGST, SGST/ UTGST or GST cess
• Refund - Where a person has claimed refund of any amount from the electronic cash ledger, the said
amount shall be debited to the electronic cash ledger.
Different Types of Assessments Under GST
1. Self Assessment
2. Provisional Assessment
3. Scrutiny of Return
4. Best judgement Assessment for Non-filers of return
5. Assessment of Unregistered person
6. Summery Assessment
Types of Assessments contd ..
• Self Assessment
• Every registered person shall self assess GST payable and furnish a return for each tax period as
specified under section 39.
• Provisional Assessment
• One can avail the facility of provisional assessment in following two cases 1. When the taxable
person is unable to determine the value of goods/services. 2. When the taxable person is unable to
determine rate of GST applicable.
• An application requesting for payment of tax on provisional basis shall be submitted along with
documents – Proper officer shall issue an order within 90 days – A bond along with security in the
form of bank Guarantee shall be executed by the registered person – Final assessment should be
completed within six months of the Provisional order – Liable to pay interest on GST not paid on
due date – Application for and release of security deposited
• Scrutiny of Return
• Procedure for scrutiny of return in brief:
• Selected returns are scrutinised by the proper officer to verify the correctness
• In case of any discrepancy, a notice is issued to the registered person seeking explanation
• Registered person is required to submit his explanation within 30 days
• The registered person may accept the discrepancy and pay the tax, interest & any other amount and
inform the same
• Alternatively, registered person may furnish an explanation which, if satisfactory, shall be accepted by the
proper officer – no further action is required
• In case of no satisfactory explanation within 30 days, the proper officer shall initiate appropriate action
against the registered person to recover the amount due.
• Best judgement Assessment for Non-filers of return

• Where a registered person fails to furnish the return under section 39 or section 45, even
after the service of a notice under section 46, the proper officer may proceed to assess
the tax liability of the said person to the best of his judgment.
• The best judgment assessment may be completed by the proper officer taking into
account all the relevant material which is available or which he has gathered.
• Where the registered person furnishes a valid return within 30 days of the service of best
judgment assessment order, the said assessment order shall be deemed to have been
withdrawn.
• However, the liability for payment of interest or for payment of late fee under shall
continue.
• Assessment of Unregistered person

• Where a taxable person fails to obtain registration, though liable to do so, or whose registration has
been cancelled but liable to pay tax, the proper officer may proceed to assess the tax liability ,to
the best of his judgment for the relevant tax periods.
• The aforesaid assessment order shall not be passed without giving the person an opportunity of
being heard.
• Summery Assessment
• Permitted only to protect interest of revenue - prior approval of the Additional Commissioner/Joint
Commissioner required – only when the proper officer has evidence – on an application by the
registered person within 30 days, the order for summery assessment may be withdrawn.
Interest and Late fee under GST
• Interest:
• Failure to pay tax within the prescribed period @18%
• Making excess / undue claim of Input Tax Credit or undue reduction in Output Tax @ 24%
• Where a refund is withheld, for the period of delay, he is entitled for interest @ 6%
• Late Fee:
• If a registered person fails to furnish details of outward / inward supplies, he will be liable to pay a
late fee of Rs 100/- for every day during the period of default. (Maximum late fee Rs 5000/-)
• This late fee may be waived by the government notification from time to time.
Penalty under GST
• The incidence of short payment of tax / erroneous refund / wrong availment of input tax
credit etc shall attract penalty.
• Such incidences may be because of the following reasons –
• Normal cases - An inadvertent bona fide mistake
• Fraud cases - It may be a deliberate attempt to evade the tax.
• Bona fide mistakes are dealt with mildly (often no penalty, if the amount is paid within 30
days of notice & 10% of tax or Rs 10,000/- whichever is higher, if paid later )
• Cases of fraud are dealt with severely (Penalty shall be 15%, 25%, 50% or 100% of tax
payable depending on when the same is paid )
E-way Bill in GST
• A way bill is a receipt or a document issued by a carrier giving details and
instructions relating to the shipment of a consignment of goods.
• Electronic Way Bill (E-Way Bill) is basically a compliance mechanism.
• Under this mechanism, by way of a digital interface, the person causing the
movement of goods uploads the relevant information.
• E-way bill is compulsory for inter-state and intra state movements of goods
• An e-way bill contains two parts.
• Part A of Form GST EWB-01 is to be furnished by the person who is causing movement of
goods of consignment value exceeding Rs. 50,000.
• Part B (transport details) to be furnished by the person who is transporting the goods.
Provisions relating to E-Commerce
• E-commerce has been defined under section 2(44) to mean the supply of goods
or services or both, including digital products over digital or electronic network.
• E-commerce operator has been defined under section 2(45) to mean any person
who owns, operates or manages digital or electronic facility or platform for
electronic commerce.
• Special Provisions under GST:
• 1. Payment of tax by e-commerce operators on behalf of suppliers under section 9(5)( Liable
to pay GST on services made available through it )
• 2. Tax collection at source by e-commerce operators under section 52.(TCS @1% of value)
3. Registration requirement for suppliers and e-commerce operators. ( Registration is
compulsory even if turnover is below the threshold limit)
Tax Deducted at Source (TDS) under GST
• TDS is one of the modes to collect tax on ad hoc basis.

• The payer deduct tax out of the amount payable to the recipient. Recipient gets credit of the same at the
time of his assessment.
• Who is liable for TDS in GST?
• Govt departments
• Local authorities
• Governmental agencies
• Authority/ Board set up by an Act ( with 51% govt equity participation)
• Authority/ Board established by a govt ( with 51% govt equity participation)
• Society established under Societies Registration Act, 1860
• Public sector undertakings
Tax Deducted at Source (TDS) under GST contd ..
• The tax will be deducted @ 2 per cent of the payment made to the supplier of taxable goods/services.
• However, tax is deductible only when the total value of such supply, under a contract, exceeds Rs.
2,50,000 (excluding the amount of GST)
• Thus, individual supplies may be less than Rs. 2,50,000, but if contract value is more than Rs. 2,50,000,
TDS provisions will be applicable.
• A TDS deductor has to compulsorily register itself without any threshold limit.
• The amount of TDS should be deposited to the Government account by the deductor by 10th of the
succeeding month (if not liable to pay interest)
• A TDS certificate is required to be issued by the deductor to the deductee
• Deductor is required to file a return within 10 days from the end of the month.
Cases where TDS is not required :

1. When total value of taxable supply is Rs. 2,50,000 (or less) under a
contract.
2. When contract value is more than Rs. 2,50,000 (for both
taxable supply and exempted supply) but the value of taxable
supply under the said contract is Rs. 2,50,000 or less.
3.When supply of goods/services is exempt under Exemption
Notification.
4. When on supply of goods GST is not leviable (e.g., petrol, diesel,
petroleum crude, gas, aviation turbine fuel and alcohol for human
consumption).
5. Where the activity/transaction is covered by Schedule III.
• Cases where TDS is not required :

6. Where the payment relates to a tax invoice that has been issued before
October 1 2018.
7. Where any amount was paid in advance prior to October 1, 2018 and
the tax invoice has been issued on or after October 1, 2018
8. Where the tax is to be paid on reverse charge by the recipient
9. Where the payment is made to an unregistered supplier.
10. Where the payment relates to “cess” component.
Tax invoice
• An invoice is a commercial instrument issued by a seller to a buyer.

• It identifies the trading parties, describes, and quantifies the items sold, shows the date of
shipment and mode of transport, prices and discounts, if any, and the delivery and payment
terms.
• It is not necessary that only a person supplying goods or services needs to issue an invoice.
• The GST law mandates that any registered person buying goods or services from an
unregistered person needs to issue a payment voucher as well as a tax invoice.
• The type of invoice to be issued depends upon the category of registered person making
the supply.
• An invoice or a bill of supply need not be issued if the value of the supply is less than Rs.
200, subject to specified conditions.
Importance of Tax Invoice Under GST
.
• Under GST, a tax invoice is an important document.
• It not only evidences the supply of goods or services, but is also an essential document for the recipient
to avail input tax credit.
• A registered person cannot avail input tax credit unless he is in possession of a tax invoice or a debit
note.
• GST is chargeable at the time of supply. Invoice is an important indicator of the time of supply.
• Broadly speaking, the time of supply of goods is the date of issuance of an invoice.
• The time of supply of services is the date of issuance of an invoice or receipt of payment, whichever is earlier.
• Thus, the importance of an invoice under GST cannot be over-emphasised.
• Tax invoice is the primary document evidencing the supply and vital for availing input tax credit.
Time of Issuance of Tax Invoice/Bill of Taxable Supply of Goods
• Invoice is required to be issued before or at the time of –

• a. removal of goods for supply to the recipient (where the supply involves movement of goods); or
• b. delivery of goods; or
• c. making available of goods to the recipient.
• Continuous supply of goods –
• In case of continuous supply of goods, where successive statements of accounts or successive
payments are involved, the invoice shall be issued before or at the time each such statement is
issued or each such payment is received.
• Goods on approval –
• Invoice of goods sent on approval is required to be issued –
• a. within 6 months from the date of removal of goods, or
• b. the date when recipient indicates that he has accepted the supply of goods, whichever is earlier.
Time for issue of tax invoice in the case of taxable supply of
services
• Such invoice should be issued before the provision of service.

• Alternatively, it can be issued after the provision of service but within 30 days from the date of supply of
service
• When supplier of services is an insurer, banking company, financial institution or non-banking financial
company, invoice can be issued within 45 days from the date of the supply of service.
• Continuous supply of services –
• “Continuous supply of services” means a supply of services which is provided (or agreed to be
provided) continuously or on recurrent basis, under a contract. Such a contract is for a period
exceeding 3 months with periodic payment obligations.
• In the case of continuous supply of service –
• Where the due date of payment is ascertainable from the contract, the invoice shall be issued
on or before the due date of payment.
• Where the due date of payment is not ascertainable from the contract, the invoice shall be
issued before or at the time when the supplier of service receives the payment.
• Where the payment is linked to the completion of an event, the invoice shall be issued on or
before the date of completion of that event.
Contents of Tax Invoice
a) Name, address and GSTIN of the supplier.

b) A consecutive serial number (not exceeding 16 characters, in one or multiple series, containing alphabets or
numerals or special characters – hyphen or dash and slash symbolised as “-” and “/” respectively, and any
combination thereof, unique for a financial year).
c) Date of its issue.
d) If recipient is registered - Name, address and GSTIN or UIN of the recipient.
e) . If recipient is unregistered and value of taxable supply is Rs. 50,000 or more - Name and address of the recipient
and the address of delivery, along with the name of the State and its code.
f) If recipient is unregistered and value of taxable supply is less than Rs. 50,000 - Name and address of the recipient
and the address of delivery, along with the name of the State and its code (if the recipient requests that such details
be recorded in the tax invoice
g) Harmonised System of Nomenclature (HSN) code for goods or services
Contents of Tax Invoice contd …
h) Quantity in case of goods and unit or Unique Quantity Code thereof.

i) Total value of supply of goods or services or both.
j) Taxable value of the supply of goods or services or both taking into account discount or abatement, if any.
k) Rate of tax (CGST, SGST, IGST, UTGST or GST cess).
l) Amount of tax charged in respect of taxable goods or services (CGST, SGST, IGST, UTGST or GST cess).
m) Place of supply along with the name of the State, in the case of a supply in the course of inter-State trade or
commerce.
n) Address of delivery where the same is different from the place of supply.
O) Whether the tax is payable on reverse charge basis.
p) Signature or digital signature of the supplier or his authorised representative.
Harmonized System of Nomenclature (HSN)
• HSN was developed by the World Customs Organization (WCO) with the vision of
classifying goods all over the World in a systematic manner.
• HSN contains six digit uniform code that classifies 5,000+ products and which is
accepted worldwide.
• India is using HSN in indirect taxes since 1986.
• Indian version is a much more detailed classification that added another two digits to the
6-digit structure.
• Under GST regime, suppliers of goods/ services are required to follow a 3-tiered
structure of HSN as follows –
• If annual turnover of the supplier (in the immediately preceding financial year) is
up to Rs. 1.50 crore, the supplier need not mention HSN in the invoice,
more than Rs. 1.50 crore but up to Rs. 5 crore, the supplier shall use 2 digit HSN code,
more than Rs. 5 crore, the supplier should use 4 digit HSN codes
Tax invoice – other relevant points
• Revised invoice in the case of new registration –

• A registered person may, within 1 month from the date of issuance of certificate of registration, issue a revised invoice
against the invoice already issued during the period beginning with the effective date of registration till the date of
issuance of certificate of registration to him
• Bill of supply –
• A registered person supplying exempted goods/services or paying tax under Composition Scheme/Alternative
Composition Scheme shall issue, instead of a tax invoice, a bill of supply. However, a consolidated bill of supply may
be issued if specified conditions are satisfied.
• Receipt voucher --
• In case payment is received in advance , a registered person shall, on receipt of advance payment with respect to any
supply of goods/services, issue a receipt voucher or any other document, evidencing receipt of such payment.
• Invoice - A registered person, who is liable to pay tax under reverse charge mechanism shall issue an invoice in respect
of goods/services received by him from the supplier who is not registered on the date of receipt of goods/services.
Tax invoice – other relevant points
• Consolidated invoice in cases covered by section 9(4) –

• A consolidated invoice may be issued at the end of a month for supplies covered under section 9(4) (the aggregate
value of such supplies exceeds Rs. 5,000 in a day from all or any suppliers)
• Payment voucher –
• A registered person [who is liable to pay tax under reverse charge mechanism under section 9(3)/(4)] shall issue a
payment voucher at the time of making payment to the supplier
• Export of goods/services - In the case of the export of goods/services, the invoice shall carry an endorsement. Besides,
the tax invoice should contain the following details – name and address of the recipient, address of delivery, and name
of the country of destination.
• Invoice-cum-bill of supply –
• Notwithstanding anything contained in rule 46 or rule 49 or rule 54, where a registered person is supplying taxable as
well as exempted goods or services or both to an unregistered person, a single “invoice-cum-bill of supply” may be
issued for all such supplies.
Manner of issuing invoice
• The invoice shall be prepared in triplicate, in the case of supply of goods, in the following manner –
• Original copy being marked as ORIGINAL FOR RECIPIENT.
• Duplicate copy being marked as DUPLICATE FOR TRANSPORTER.
• Triplicate copy being marked as TRIPLICAE FOR SUPPLIER.
• In the case of the supply of services, in the following manner –
• The invoice shall be prepared in duplicate
• Original copy being marked as ORIGINAL FOR RECIPIENT. -
• Duplicate copy being marked as DUPLICATE FOR SUPPLIER.
• The serial number of invoices issued during a tax period shall be furnished electronically through the common
portal in Form GSTR-1.
• Electronic invoice - Signature or digital signature of the supplier or his authorised representative shall not be
required in the case of issuance of an electronic invoice in accordance with the provisions of the Information
Technology Act, 2000.
Credit and Debit Notes
• Credit notes –
• A credit note may be issued in the following circumstances –
• 1. Where a tax invoice has been issued for supply of any goods/services and the taxable value (or tax charged) in that tax invoice is found to exceed the
taxable value (or tax payable) in respect of such supply.
• 2. Where the goods supplied are returned by the recipient (or where goods/services supplied are found to be deficient). In the above two cases, the
registered person (who is supplier) may issue to the recipient a credit note.
• A credit note should contain the details as prescribed by rule 53
• Declaration of credit note in return - Any registered person who issues a credit note in relation to a supply of goods/services shall declare
the details of such credit note in the return for the month during which such credit note has been issued.
• However, credit note cannot be issued later than –
• a. September following the end of the financial year in which such supply was made, or
• b. the date of furnishing of the relevant annual return, whichever is earlier.
• The tax liability shall be adjusted in such manner as may be prescribed. However, no reduction in output tax liability of the supplier shall
be permitted, if the incidence of tax and interest on such supply has been passed on to any other person.
Credit and Debit Notes
• Debit notes –
• A debit note may be issued in the following case –
• Where a tax invoice has been issued for supply of any goods/services and the taxable value (or tax
charged) is found to be less than the taxable value (or tax payable in respect of such supply). In the
aforesaid case, the registered person (who is the supplier) shall issue to the recipient a debit note.
• A debit note should contain the details as prescribed by rule 53 :
• Declaration of debit note in return - Any registered person who issues a debit note in relation to a supply
of goods/ services shall declare the details of such debit note in the return for the month during which
such debit note has been issued.
• Tax liability shall be adjusted in such manner as may be prescribed.
Contents of Credit and Debit Notes
a) Name, address and GSTIN of supplier

b) Nature of the document.
c) A consecutive serial number (not exceeding 16 characters, in one or multiple series unique for a financial year).
d) Date of issue of the document;
e) Name, address and GSTIN or Unique Identity Number, if registered, of the recipient.
f) Name and address of the recipient and the address of delivery, along with the name of State and its code, if such
recipient is unregistered.
g) Serial number(s) and date(s) of the corresponding tax invoice(s) or, as the case may be, bill(s) of supply.
h) Value of taxable supply of goods or services, rate of tax and the amount of the tax credited or, as the case may be,
debited to the recipient.
i) Signature or digital signature of the supplier or his authorized representative.
GST: Registration
SIGNIFICANCE OF REGISTRATION
• For identification of a taxpayer, registration is must for ensuring tax

compliance.
• Registration of any business entity implies obtaining a unique number
(GSTIN) from the GST authorities for the purpose of collecting GST on
behalf of the Government and to avail input tax credit on inward supplies.
• Without registration, a person can neither collect tax from his customers
nor claim any input tax credit of tax paid by him.
Advantages of Registration to a taxpayer
• A GST registered person is legally recognized as supplier of goods or services.

• He is legally authorized to collect taxes from his customers and pass on the credit
of the taxes paid on the goods/services supplied to the purchaser/recipient.
• He can claim input tax credit pertaining to GST paid on inward supply and can
utilize the same for payment of taxes due on outward supply of goods/services.
• Seamless flow of input tax credit from suppliers to recipients at the national
level.
WHO IS LIABLE FOR REGISTRATION UNDER GST?
• GST is a tax which arises on the event of “supply” of goods/services.

• Section 22 requires that a supplier of goods/services should get himself/itself registered under GST.
• Compulsory registration if aggregate turnover exceeds threshold limit [Sec. 22]
• If “aggregate turnover” of a financial year exceeds threshold limit, registration is required on compulsory basis under
section 22.
• Threshold limit - Threshold limit is as follows – Aggregate turnover in the State/Union Territory (other than special
category States) Rs. 20 lakh .Aggregate turnover in special category States (i.e., Arunachal Pradesh, Assam, Himachal
Pradesh, Manipur, Mizoram, Nagaland and Tripura) Rs 10 lakh
• With effect from April 1, 2019, registration is not required in the case of a person who is engaged in exclusive supply of
goods and whose aggregate turnover in the financial year does not exceed Rs. 40 lakh, if a few conditions are satisfied
• Voluntary registration - Small businesses (having aggregate turnover below the threshold limit given
above) can, however, voluntarily opt for registration.
Aggregate turnover
• Aggregate turnover means the aggregate value of –

• All taxable supplies.
• Exempt supplies
• Exports of goods/services.
• Inter-State supplies.
• All supplies made by the taxable person, whether on his own account or made on behalf of all his principles. These
supplies shall be determined for all units/branches of the taxpayer having the same Permanent Account Number
(PAN) and aggregate turnover is computed on all India basis.
• However, aggregate turnover does not include the following –
• Value of inward supplies on which tax is payable under reverse charge mechanism.
• Amount of GST (i.e., IGST, CGST, SGST/UTGST).
• Supply of goods, after completion of job work, by a registered job worker shall be treated as the supply of goods by the principal and
the value of such goods shall not be included in the aggregate turnover of the registered job worker.
Persons not liable for registration
• The following persons are not liable for registration even if aggregate turnover exceeds the threshold limit given above
• Engaged Exclusively In Making Exempt Supplies
• Any person who is engaged exclusively in the business of supplying goods/services that are not liable to GST or wholly exempt
from GST
• An agriculturist is not liable for registration to the extent of supply of produce out of cultivation of land.
“Agriculturist” means an individual/HUF who undertakes cultivation of land –
• a. by own labour, or b. by the labour of family, or c. by servants on wages payable in cash or kind or by hired labour under
personal supervision or the personal supervision of any member of the family
• Engaged Only In Making Taxable Supplies, GST On Which Is Payable By Recipient Under Reverse Charge
Mechanism
• If a person is engaged only in making taxable supply of goods/services, GST on which is liable to be paid on reverse charge basis
by the recipient, registration is not required (even if aggregate turnover is more than the threshold limit of Rs. 20 lakh/Rs.10 lakh
Persons not liable for registration - Contd
• Engaged Exclusively In Supply Of Goods And Aggregate Turnover Does Not Exceed Rs. 40 Lakh
• If the following conditions are satisfied registration is not required (with effect from April 1, 2019) by
virtue of Notification No. 10/2019, dated March 7, 2019 –
• Condition 1: Engaged in supply of goods only - The person is engaged in exclusive supply of goods
• Condition 2: Aggregate turnover up to Rs. 40 lakh - Aggregate turnover of the aforesaid person in the
financial year does not exceed Rs. 40 lakh.
• Condition 3: Compulsory registration under section 24 not required - The aforesaid person is not required
to take compulsory registration under section 24 .For instance, if the aforesaid person is engaged in inter
State supply of goods, GST registration is required under section e 24(i), even if aggregate turnover is not
more than Rs. 40 lakh
Persons not liable for registration contd …
• Condition 4: Not engaged in supply of certain goods - The aforesaid person is not
engaged in making supplies of ice-cream (and other edible ice), pan masala or
tobacco goods (and manufactured tobacco substitutes).
• Condition 5: Not engaged in making intra-State supply in certain States - The
aforesaid person is not engaged in making intra-State supplies in the State of
Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry,
Sikkim, Telangana, Tripura and Uttarakhand.
• Condition 6: Not opted for voluntary registration - The aforesaid person has not
opted for voluntary registration under section 25(3).
Compulsory registration in a few cases
• Even if aggregate turnover is less than Rs. 20 lakh/Rs. 10 lakh/ Rs. 40 lakh, the following persons
are required to get registration on compulsory basis:
Inter-state Taxable Supply of Goods
Casual Taxable Person Making Taxable Supply
Persons Who Are Required To Pay Tax On Inward Supply Under Reverse Charge Mechanism
Electronic Commerce Operators
Non-resident Taxable Person without fixed place of business making taxable supply in India
A Person Who Is Required To Deduct Tax At Source
Agent making taxable supply on behalf of other taxable persons
Input Service Distributor – ( required to take separate registration as ISD)
Online Information and Database Access Service
Procedure for Registration
• The registration in GST is PAN based and State specific. Supplier has to register in each
of such State or Union Territory from where he effects supply.
• In GST registration, the supplier is allotted a 15-digit GST identification number called
“GSTIN”, and a certificate of registration incorporating therein this GSTIN is made
available to the applicant on the GSTN common portal.
• A given PAN based legal entity would have one GSTIN per State, that means a business
entity having its branches in multiple States will have to take separate State-wise
registration for the branches in different States.
• But within a State, an entity with different branches would have single registration
wherein it can declare one place as principal place of business and other branches as
additional place of business.
• However, one can have more than one registration in one State/Union Territory if he has
multiple places of business within a State or Union Territory.
Procedure for Registration contd..
1) Verification before registration
• Every person shall (before applying for registration) declare his PAN, mobile number, e-mail
address, State/Union Territory in Part A of Form GST REG-01 on the GST portal (i.e.,
www.gst.gov.in). It can be done either directly or through a Facilitation Centre. On successful
verification of the PAN, mobile number and e-mail address, a temporary reference number shall be
generated and communicated to the applicant on his mobile number and e-mail address.
2) Registration application-
• Using the aforesaid reference number, the applicant shall electronically submit an application in
Part B of Form GST REG-01, duly signed (or verified through electronic verification code), along
with the documents specified in the said Form at the GST common portal.
• 3) Examination of application –
• The application shall be forwarded to the proper officer who shall examine the application and the accompanying
documents and if the same are found to be in order, approve the grant of registration to the applicant within a period of 3
working days from the date of submission.
• Deficiency in application - If the application is found to be deficient, the proper officer may issue a notice to the
applicant electronically within a period of 3 working days from the date of submission of the application.
• In such a case, the applicant shall furnish such clarification, information or documents electronically, within a period of 7
working days from the date of the receipt of such notice.
• If the proper officer is satisfied with the clarification, information, etc., he may approve the grant of registration to the
applicant within a period of 7 working days from the date of the receipt of such clarifications.
• Where no reply is furnished by the applicant (or where the proper officer is not satisfied with the clarifications), the
proper officer may reject such application and inform the applicant electronically in Form GST REG-05.
• Registration - If the proper officer fails to take any action within the time limit of 3 days (7 days in the case of
deficiency), the application for grant of registration shall be deemed to have been approved.
4) Registration certificate –
• Where the application for grant of registration has been approved, a certificate of registration in Form
GST REG-06 will be issued.
• The registration certificate shows the principal place of business and additional place or places of
business and is made available to the applicant on the common portal and a Goods and Services Tax
Identification Number (GSTIN) shall be assigned.
• GSTIN contains the following characters –
• 2 characters for the State code
• 10 characters for PAN or TAN
• 2 characters for the entity code
• 1 checksum character.
6) Cancellation or suspension of registration
• - The proper officer may cancel GST registration. It can be done by him either on his own motion or on an application filed by the
registered person or by his legal heirs (in case of death of such person).
• Application - Application for cancellation of registration shall be submitted electronically in Form GST REG- 16.
• Cancellation of registration under section 29(1) - The registration can be cancelled‡ in the following circumstances –
• 1. The business has been discontinued, transferred fully for any reason
• 2. There is any change in the constitution of the business.
• 3. The taxable person (not being a person who has taken voluntary registration) is no longer liable to be registered under section 22
or section 24.
• Cancellation or suspension of registration under section 29(2) in case of a default - In the cases given below, the proper officer may
cancel the registration from such date (including a retrospective date) as he may deem fit –
• 1. Where a registered person has contravened such provisions of the Act or the rules made thereunder as may be prescribed.
• 2. Where a person covered by Composition Scheme/Alternative Composition Scheme has not furnished returns for 3 consecutive tax
periods.
• 3. Where any registered person (not being a Composition Scheme/Alternative Composition Scheme taxpayer)
7) Revocation of cancellation of registration –

• Registered person, whose registration is cancelled may apply to such officer for
revocation of cancellation of the registration.
• Such application can be submitted in Form GST REG-21.
• The application has to be submitted electronically within a period of 30 days from the
date of the service of the order of cancellation of registration
• However, no application for revocation shall be filed, if the registration has been
cancelled for the failure of the registered person to furnish returns, unless such returns
are furnished and tax due is deposited with interest, penalty and late fee in respect of the
said returns.
OFFENCES & PENALTIES
SEC 122 : PENALTY FOR CERTAIN OFFENCES
The Act lists 21 offences in sec 122. The offences enumerated in

section are as follows:
× Making supply without invoice or with false or incorrect invoice
× Issuing an invoice without making any supply
× Not paying tax collected for a period exceeding 3 months
× Not paying tax collected in contravention of CGST/SGST Act for a
period exceeding 3 months
× Non deduction or lower deduction of tax at source or not
depositing tax deducted at source
Contd…
× Availing / utilizing ITC without actual receipt of goods &/or services
× Non collection or lower collection of or non payment of tax
collectible at source
× Fraudulently obtaining any refund
× Furnishing false information or falsification of financial records or
furnishing of fake accounts / documents with intent to evade tax
× Failure to register despite being liable to pay tax
× Furnishing false information regarding registration particulars
either at time of applying for registration or subsequently
× Obstructing or preventing any official in discharge of his duty
× Transporting goods without prescribed documents
× Suppressing turnover leading to tax evasion
Contd…
× Failure to maintain accounts / documents in the manner specified
in the act or failure to retain accounts / documents for the period
specified in the act
× Failure to furnish information / documents required by an officer in
terms of the act / rules or furnishing false information / documents
during the course of any proceedings
× Supplying / transporting / storing any goods liable for confiscation
× Issuing invoice or document using GSTN of another person
× Tampering or destroying any material evidence
× Disposing of / tampering with goods detained / seized / attached
under the act
× Availing / distributing ITC by input tax distributor in contravention
of the act & rules
General Penalty u/s 122(1) shall be higher of
Amount of tax evaded / fraudulently obtained as refund / availed as

credit / not deducted or collected / short deducted or short collected
OR
Rs.10,000/-
Specific Penalty imposed on any person who has not paid tax or
makes short payment of tax on supplies u/s 122(2) shall be higher of
10% of tax not paid or short paid

OR
Rs.10,000/-
SEC 123 : PENALTY FOR FAILURE TO FURNISH INFORMATION RETURN
INFORMATION RETURN IS
Return to be filed by various government authorities within
prescribed time u/s 150
PENALTY IF NOT FILED WITHIN PRESCRIBED TIME
per day of continuing default subject to maximum

amount of
SEC 124 : FINE FOR FAILURE TO FURNISH STATISTICS
PERSON LIABLE TO FURNISH STATISTICS

• Commissioner may by notification direct that
• Statistics may be collected relating to any matter dealt with or in connection with the act
• The same will be collected by him or person authorized by him from concerned person
• The person so concerned is liable to furnish information for statistics
Without reasonable cause

fails to furnish such
information PENALTY will be
Upto Rs.10,000/-; if
Person Liable to furnish
default continues then
information
Rs.100/day subject to
Willfully furnishes or Rs.25,000/-
causes to furnish false
information
SEC 125 : GENERAL PENALTY
For contravention of any provision / rules of this Act for which no

penalty is separately provided, then such contravention shall
attract penalty which may extend to rupees
25,000/-
SEC 126 : GENERAL DECIPLINES RELATING TO PENALTY
(TO BE FOLLOWED BY OFFICERS)
The section provides for general disciplines to be followed by the officer imposing penalty
under the act. The disciplines to be followed are:
No penalty should be imposed without issuance of SCN or proper opportunity of being
heard as against the natural rule of justice
No penalty should be imposed without considering the totality of the facts
The penalty imposed must be commensurate with degree of severity of offence
Nature of breach is to be mentioned clearly in the order of penalty to be issued
The provisions under which the penalty has been imposed should be mentioned
specifically
No penalty should be imposed in case of minor breach
( Tax involved < Rs.5,000/- )
No penalty for any procedural lapse or mistake easily rectifiable made without
fraudulent intent & which can be seen apparently on the face of the record
SEC 129 : DETENTION, SEIZURE & RELEASE OF GOODS &
CONVEYANCES IN TRANSIT
The section provides for provision relating to detention, seizure &

release goods & conveyance in transit & penalty payable thereon
If a person
• transports any goods or stores any such goods
• while in transit
• without prescribed documents or
• supplies or stores any goods that have not been recorded in books of
accounts maintained by him,
• then such goods shall be liable for detention along with vehicle on
which they are being transported
Penalty for release of such detained
goods & conveyance
Owner comes Owner does not

forward comes forward
If goods If goods If goods If goods

taxable exempted taxable exempted
Tax + 100% of 2% of value of

5% of value of
tax as penalty / goods or Tax + 50% of value of goods or
equivalent Rs.25,000/- goods as penalty / Rs.25,000/- w.e.l.
security w.e.l. equivalent security
SEC 130 : CONFISCATION OF GOODS OR CONVEYANCE & LEVY OF PENALTY
Notwithstanding anything contained in this act, if a person
Supplies or receives any goods in contravention of any of the provisions of this Act or the
rules made thereunder with intent to evade payment of tax or
Does not account for any goods on which he is liable to pay tax under this Act or
Supplies any goods liable to tax under this Act without having applied for registration
Contravenes any of the provisions of this Act or the rules made thereunder with intent to
evade payment of tax
Uses any conveyance as a means of transport for carriage of goods in
contravention of the provisions of this Act or the rules made thereunder unless the
owner of the conveyance proves that it was so used without the knowledge or
connivance of the owner himself, his agent, if any, and the person in charge of the
conveyance
Then, all such goods or conveyances shall be liable to confiscation and the person shall be
liable to penalty under section 122
CONSEQUENCES OF CONFISCATION
The title of confiscated goods shall vest in the government & every police
officer to whom proper officer makes a request, shall assist in taking
possession of the goods
The owner or in charge of goods liable for confiscation is to be given option
for fine not exceeding an amount of market value of goods less the tax
chargeable thereon
Any conveyance carrying goods without cover of any documents prescribed
under the act shall be liable for confiscation; However if owner of
conveyance proves that the goods were being transported without
documents without his knowledge or without the knowledge of his agent
then the conveyance shall not be liable for confiscation.
SEC 131 : CONFISCATION OR PENALTY NOT TO INTERFERE WITH OTHER
PUNISHMENTS
The Section clarifies that

Confiscation made or penalty imposed under the provisions of the act
Shall not prevent infliction of any other punishments
Under any other proposed act or
Any other law for the time being in force
SEC 132 : PUNISHMENT FOR CERTAIN OFFENCES
Sec 132 of the act lists offences which warrant institution of criminal
proceedings & prosecution. The offences enumerated in section are
as follows:
× Making supply without invoice or with false or incorrect invoice
× Issuing an invoice without making any supply
× Not paying tax collected for a period exceeding 3 months
× Availing / utilizing ITC without actual receipt of goods &/or services
× Fraudulently obtaining any refund
× Obstructing or preventing any official in discharge of his duty
× Supplying / transporting / storing any goods liable for
confiscation
× Furnishing false information or falsification of financial records
or furnishing of fake accounts / documents with intent to
evade tax
× Receiving / dealing with supply of service in contravention of
the act
× Tampering or destroying any material evidence
× Failing to supply any information required under the act / rules
or supplying false information
× Attempting to commit or abetting the commission of any of
the above offences
PUNISHMENTS UNDER SECTION 132
OFFENCE INVOLVING PUNISHMENT EXTENDING TO

Tax evaded exceeding Rs.5 Crore or repeat offenders 5 years and Non Bailable
Tax evaded between Rs.2 Crore to Rs.5 crore 3 years and Bailable
Tax evaded between Rs.1 Crore to Rs.2 crore 1 years and Bailable
× False Records 6 Months or or both

× Obstructing Officer
× Tamper Records
SEC 133 : OFFENCE & PENALTY FOR OFFICERS & CERTAIN OTHER PERSONS
Upto 6 months
Compilation of
Where a person statistical data &
either officer / other information Willfully discloses
government Engaged in the information Or
servant or any otherwise than in
other person or execution of his Fine Upto 25,000/-
agent of above duties
Provision of service Or
persons
of common portal
Both
For government servant – sanction from government for initiating proceedings

For non government servant - sanction from commissioner for initiating proceedings
SEC 134 : COGNIZANCE OF OFFENCE
The section restricts courts to take cognizance of any offence punishable

under the act
or rules except with previous permission of the commissioner
No court inferior to that of first class magistrate shall try offences
SEC 135 : PRESUMPTION OF CULPABLE MENTAL STATE
The section presumes the existence of a state of mind required to commit

an offence if it can not be committed without such state of mind
SEC 136 : RELEVANCY OF STATEMENTS UNDER CERTAIN CIRCUMSTANCES
The section provides for relevancy of statements made & signed by person on
appearance in response to any summons
Such statement shall be relevant for proving truth of facts when

a) When the person who made the statement is dead or cannot be found or
b) Is incapable of giving evidence or
c) Is kept out of the way by the adverse party or
d) Whose presence cannot be obtained without an amount of delay or expense which is
not reasonable or
e) The person who made the statement is examined as a witness in the case before the
court and the court is of the opinion that, having regard to the circumstances of the
case, the statement should be admitted as evidence in the interest of justice.
SEC 137 : OFFENCES BY COMPANIES
Offence Committed by Person to be held guilty Person not to be held

guilty
Company Every person who, at the If person proves that the

time the offence was offence was committed
committed was in charge without his knowledge or
of, and was responsible to, that he had exercised all
the company for the due diligence to prevent
conduct of business of the the commission of such
company, as well as the offence.
company, shall be deemed
to be guilty
Partnership Firm / LLP / The partner or karta or

HUF / Trust managing trustee shall be
deemed to be guilty of -----do-----
that offence
SEC 138 : COMPOUNDING OF OFFENCES
The section provides for compounding of specified offences under the

proposed act either before or after the institution of prosecution, by
the commissioner on payment of prescribed compounding amount
Compounding is permitted only after payment of tax, interest &
penalty and compounding shall affect any proceedings already
instituted under any other law
Lower limit for compounding is
50% of tax involved or Rs.10,000/- w.e.h.
Upper limit for compounding is
150% of tax involved or Rs.30,000/- w.e.h.
On payment of compounding amount, no further proceedings to be
initiated under the act & criminal proceedings shall stand abated
Salient Features of GST
in India
• 1. supply as the base: GST would be applicable on “supply” of goods or services as
against the erstwhile concept of tax on the manufacture of goods or on sale of goods or on
provision of services.
• 2. destination-based tax: As opposed to the previous principle of origin-based taxation,
GST would be based on the principle of destination-based consumption taxation.
• 3. dual GsT: The Centre and the States would simultaneously levy tax on a common base.
The GST to be levied by the Centre would be called Central GST (CGST) and the GST to
be levied by the States (including Union territories with legislature) would be called State
GST (SGST). Union territories without legislature would levy Union territory GST
(UTGST).
• 4. inter-state supply: An integrated GST (IGST) would be levied on inter-State supply of
goods or services. This would be collected by the Centre so that the credit chain is not
disrupted. Imports of goods and services would be treated as inter-State supplies and would
be subject to IGST. (This would be in addition to applicable customs duties).
• 5. central taxes subsumed: GST would subsume the following taxes that were
levied and collected by the Centre: Central excise duty; Additional duties of excise;
Additional duties of customs (commonly known as countervailing duty); special
additional duty of customs (SAD); service tax; and cesses and surcharges insofar as
they relate to supply of goods or services.
• 6. state taxes subsumed: GST would subsume the following taxes that were levied
and collected by the State: State VAT; Central Sales Tax; purchase tax; luxury tax;
entry tax; entertainment tax (except those levied by the local bodies); taxes on
advertisements; taxes on lotteries, betting and gambling; and State cesses and
surcharges insofar as they relate to supply of goods or services.
• 7. applicability: GST would apply to all goods and services except alcohol for
human consumption. GST on five specified petroleum products (crude, petrol,
diesel, aviation turbine fuel, natural gas) would be applicable from a date to be
recommended by the GST Council.
• 8. Threshold for GsT: A common threshold exemption would apply to both CGST and SGST.
Taxpayers with an annual turnover of Rs.20 lakh (Rs.10 lakh for special category States (except
J&K) as specified in article 279A of the Constitution) would be exempt from GST. A
compounding option (i.e. to pay tax at a flat rate without credits) would be available to small
taxpayers (including to manufacturers other than specified category of manufacturers and service
providers) having an annual turnover of up to Rs.1 crore (Rs.75 lakh for special category States
(except J&K and Uttarakhand) enumerated in article 279A of the Constitution). The threshold
exemption and compounding scheme is optional.
• 9. exports: All exports and supplies to Special Economic Zones (SEZs) and SEZ units would
be zero-rated.
• 10. input tax credit: Credit of CGST paid on inputs may be used only for paying CGST on the
output and the credit of SGST/UTGST paid on inputs may be used only for paying SGST/
UTGST. In other words, the two streams of input tax credit (ITC) cannot be cross utilized,
except in specified circumstances of inter-State supplies for payment of IGST.
• 11. electronic filing of returns: There will be electronic filing of returns by different class of
persons at different cut-off dates. various modes of payment of tax available to the taxpayer
including internet banking, debit/credit card and National Electronic Funds Transfer
(NEFT)/Real Time Gross Settlement (RTGS).
• 12. Tax deduction on payment made: While the provision for TDS has not been
notified yet, it is obligatory on certain persons including government departments,
local authorities and government agencies, who are recipients of supply, to deduct
tax at the rate of 1% from the payment made or credited to the supplier where total
value of supply, under a contract, exceeds Rs.2,50,000.
• 13. Tax collection at source by e-commerce operators: While the provision for
TCS has not been notified yet,it is obligatory for electronic commerce operators to
collect ‘tax at source’, at such rate not exceeding 2% of net value of taxable
supplies, out of payments to suppliers supplying goods or services through their
portals.
• 14. refund: Refund of tax can be sought by taxpayer or by any other person who
has borne the incidence of tax within two years from the relevant date. Refund is to
be granted within 60 days from the date of receipt of complete application and
interest is payable if refund is not sanctioned within 60 days.
• 15. anti-profiteering clause: An anti-profiteering clause has been provided in
order to ensure that business passes on the benefit of reduced tax incidence on
goods or services or both to the consume
• The Consumer Welfare Fund Rules were framed and notified in the Gazette
of India in 1992, which have been incorporated in Consumer Welfare Fund
Rule 97 of the CGST Rules, 2017. Consumer Welfare Fund has been setup
under section 57 of the CGST Act, 2017.
• Earlier, the Central Excise and Salt Act, 1944 was amended in 1991 to enable
the Central Government to create a Consumer Welfare Fund (CWF) where
the money which is not refundable to the manufacturers, etc. is being
credited. The Consumer Welfare Fund Rules were notified in the Gazette of
India in 1992. Guidelines for seeking financial assistance from Consumer
Welfare Fund were framed based on the report of a Working Group set-up
in 1993, which was subsequently revised twice, in 2007 and 2014.
• Financial assistance from CWF is given to various Institutions including
Universities, Voluntary Consumer Organization (VCOs) and States to
promote and protect the welfare and interests of the consumers, create
consumer awareness and strengthen consumer movement in the
country. Grants from CWF have been given for the following major
projects:
a. Creation of Consumer Law Chairs/ Centres of Excellence in
Institutions/Universities of repute to foster research and training on consumer
related issues.
b. Projects for spreading consumer literacy and awareness.
c. Establish Corpus Fund at the State level, through co-contribution.
• Before sanctioning grants proposals are invited for seeking financial
assistance from the Consumer Welfare Fund from eligible
VCOs/NGOs/Academic Institutions in digital/electronic format.
• Consumer Welfare Fund was created to promote and protect the welfare of
consumer, create consumer awareness and strengthen consumer
movement in the country, particularly in rural areas. Amount of refund
which is not payable to the applicant is credited to the Consumer Welfare
Fund. The amount of refund is paid to the applicant in case where there is
no unjust enrichment; i.e. the incidence of tax has not been passed by the
supplier to the recipient as also in the circumstances where the principle of
unjust enrichment is not applicable. Otherwise, the said amount is credited to
the Consumer Welfare Fund.
Amount to be credited to Consumer Welfare Fund
• Section 57 of the CGST Act stipulates that the Government shall constitute
a Fund, to be called the Consumer Welfare Fund and there shall be
credited to the Fund:
• Amount of refund determined by an order passed under section 54(5), any
income from investment of the amount credited to the Fund; and such other
monies received by it,
Refund is normally credited to the Consumer Welfare Fund constituted by the
Government except under following cases, where it shall be paid to the
applicant:
• Refund of tax paid on zero-rated supplies of goods or senders or both or on inputs
or input services used in making such zero-rated supplies;
• Refund of unutilized input tax credit under subsection 54(3);
• Refund of tax paid on a supply which is not provided, either wholly or partially, and
for which invoice has not been issued, or where a refund voucher has been issued;
• Refund of tax in pursuance of section 77;
• The tax and interest, if any, or any other amount paid by the applicant, if he had
not passed on the incidence of such tax and interest to any other person; or
• The tax or interest borne by such other class of applicants as the Government may,
on the recommendations of the Council, by notification, specify
Refund is normally credited to the Consumer Welfare Fund constituted by the
Government except under following cases, where it shall be paid to the
applicant:
• Refund of tax paid on zero-rated supplies of goods or senders or both or on inputs
or input services used in making such zero-rated supplies;
• Refund of unutilized input tax credit under subsection 54(3);
• Refund of tax paid on a supply which is not provided, either wholly or partially, and
for which invoice has not been issued, or where a refund voucher has been issued;
• Refund of tax in pursuance of section 77;
• The tax and interest, if any, or any other amount paid by the applicant, if he had
not passed on the incidence of such tax and interest to any other person; or
• The tax or interest borne by such other class of applicants as the Government may,
on the recommendations of the Council, by notification, specify

Notes GST

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Notes GST

Uploaded by

Copyright:

Available Formats

“ANTI PROFITEERING UNDER GST

In the past, some companies, including Patanjali Ayurved, Hindustan Unilever

Creation of Consumer Law Chairs/ Centres of Excellence in Institutions/Universities of repute

A. Classification of any goods or services or both

An advance ruling pronounced by AAR or AAAR shall be binding only

A service provider (except restaurant service provider)

Applicable only f or first supplies of Rs. 50 Lakh/,

• The basic features of the returns mechanism in GST include:

• All the returns are to be filed online.

• Interest payable by recipient - If because of aforesaid adjustments, output

• Challan Identification Number (CIN) –

• Best judgement Assessment for Non-filers of return

• Assessment of Unregistered person

• TDS is one of the modes to collect tax on ad hoc basis.

Cases where TDS is not required :

• Cases where TDS is not required :

• An invoice is a commercial instrument issued by a seller to a buyer.

• Invoice is required to be issued before or at the time of –

• Such invoice should be issued before the provision of service.

a) Name, address and GSTIN of the supplier.

h) Quantity in case of goods and unit or Unique Quantity Code thereof.

• Revised invoice in the case of new registration –

• Consolidated invoice in cases covered by section 9(4) –

a) Name, address and GSTIN of supplier

• For identification of a taxpayer, registration is must for ensuring tax

• A GST registered person is legally recognized as supplier of goods or services.

• GST is a tax which arises on the event of “supply” of goods/services.

• Aggregate turnover means the aggregate value of –

1) Verification before registration

7) Revocation of cancellation of registration –

The Act lists 21 offences in sec 122. The offences enumerated in

Amount of tax evaded / fraudulently obtained as refund / availed as

10% of tax not paid or short paid

PENALTY IF NOT FILED WITHIN PRESCRIBED TIME

per day of continuing default subject to maximum

PERSON LIABLE TO FURNISH STATISTICS

Without reasonable cause

For contravention of any provision / rules of this Act for which no

The section provides for provision relating to detention, seizure &

Owner comes Owner does not

If goods If goods If goods If goods

Tax + 100% of 2% of value of

The Section clarifies that

OFFENCE INVOLVING PUNISHMENT EXTENDING TO

× False Records 6 Months or or both

For government servant – sanction from government for initiating proceedings

The section restricts courts to take cognizance of any offence punishable

SEC 135 : PRESUMPTION OF CULPABLE MENTAL STATE

The section presumes the existence of a state of mind required to commit

Such statement shall be relevant for proving truth of facts when

Offence Committed by Person to be held guilty Person not to be held

Company Every person who, at the If person proves that the

Partnership Firm / LLP / The partner or karta or

The section provides for compounding of specified offences under the

You might also like