For - BBA/B.

COM (H)

BY: BRIJESH KUMAR

B.COM(H), M.COM
University of Delhi BRIJESH KUMAR 1
 Course Contents:

UNIT-II UNIT-III
UNIT-I
• Assessment of Tax • Demand & Recovery
GST In India- • Inspection
• Tax Invoice
• Provisions of Indirect • Search, Seizure &
• Credit & Debit Note
Tax
• Accounts & Records Arrest
• Basic Concept of • Advance Ruling
• Input Tax Credit
Supply • Appeal & Revisions
• Place & Time of
• Composite & Mix
Supply
Supplies
• Valuation & UNIT- IV
• Services under GST
Exemption • Audit
•Levy & Charges of GST
• Job Work • Offences & Penalties
•Procedure of
• Refund
Registration
UNIT- III • Activities Neither
• Person & Taxable
Supply of Goods nor
Person
• Return & Due Dates Services
• Payment of Tax
• TCS • Role of GST
Practitioner
BRIJESH KUMAR 2
The word levy means an amount (such as tax) which is to be collected by legal
Authority (Govt.)

The provision relating to levy and collection of CGST and IGST are contained in,
Section 9 of the CGST Act, 2017 and Section 5 of the IGST Act, 2017 respectively

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As a general rule, where the location of the supply and the place of supply of
goods or services are in the same State/Union territory, it is treated as Intra-State
Supply of goods or Services respectively.

Similarly, where the location of the supply and the place of the supply of goods
or services are (i) two different States or (ii) two different Union Territories or
(iii) A State and a Union Territory, it is treated as inter-State supply of goods or
services respectively.

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 SECTION 9 OF CGST ACT 2017

Levy & Collection of GST In Case of Intra State

Supply

Sec.9(1) Sec.9(2) Sec.9(3) Sec.9(4) Sec.9(5)

CGST Still not RCM in Case

CGST will levy RCM of
levied but might
Recommended
on all Intra be levied in Unregistered
future on
by Govt. on RCM for ECO
state supply Specific Goods Person supply
except- recommendatio to Registered
& Services
n of Govt. Person

1. Petroleum
Supply of 2.High speed diesel
alcoholic liquor 3.Motor Spirit
for human 4.Natural gas
consumption
5.Aviation turbine
fuel

BRIJESH KUMAR 5
 SECTION 9 OF CGST ACT 2017

Levy

Reverse Forward
Charge Charge
Sec. 9(3),
9(4), 9(5)
of CGST Composition
Regular Levy
Act 2017 Levy

Sec. 9(1) Sec. 10

of CGST of CGST
Act.2017 Act.2017

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 Goods Goods
Receiver Receiver

Receiver make payment Receiver make payment

To Supplier Including GST To Supplier without GST

Goods Goods
Supplier Supplier

Supplier Deposit GST to Govt.

Govt. Govt.
Receiver Deposit GST to
Govt. on the behalf of
Supplier

BRIJESH KUMAR 7
 SECTION 9 OF CGST ACT 2017

Sec. 9(1) CGST will be levied on all Intra-State supplies of goods or services or Both,
Except on :
The supply of alcoholic liquor for human consumption

Note: It should be noted that the CGST rates should not exceed 20%

Sec. 9(2) Central tax on the supply of

Petroleum
high speed diesel
motor spirit (Petrol)
Natural Gas
Aviation Turbine Fuel

Shall be levied with effect from such date as may be notified by the Govt.
On the recommendations of the Council.

BRIJESH KUMAR 8
 SECTION 9 OF CGST ACT 2017

Sec. 9(3) The Govt. may, on the recommendations of the council, by notification,
specify categories of supply of goods or services or both, the tax on which
shall be paid on reverse charge basis by the recipient of such goods or
services or both.

Name of Services Service Provider Service Receiver

Goods Transport Agency GTA Any Reg. Person,
Company
Legal service from Advocate Individual or Firm Any Business Entity
Sponsorship Any Person Any Body Corporate or
Firms
Service Supplied by a Director A Director of Companies or body of
Companies corporate

BRIJESH KUMAR 9
 SECTION 9 OF CGST ACT 2017

Sec. 9(4)

If a unregistered person supplies goods or services or both to a registered

person then the central tax shall be paid by recipient of goods or services
or both on the reverse charge basis and all the provisions of this Act shall
apply to such recipient as if he is the person liable for paying the tax in
relation to the supply of such goods or services or both.

i.e. Supplies made to promoters of Real State Projects

BRIJESH KUMAR 10
BRIJESH KUMAR 10
 SECTION 9 OF CGST ACT 2017

Sec. 9(5)
If an electronic commerce operator (ECO) supplies services then he is
liable to pay tax.

Govt. may, on the recommendations of the Council, by notification, specify

categories of services the tax on intra-State supplies of which shall be paid
by electronic commerce operator if such services are supplied through it.

Supply of Services Supplier of Service Person Liable to pay GST

Transportation of Passengers Any Person E-Commerce Operator
by Radio Taxi, Motor Cab
Provide Accommodation in Any Person E-Commerce Operator
Hotel, Guest House

BRIJESH KUMAR 11
 SECTION 9 OF CGST ACT 2017

Sec. 9(5)

If The Electronic Commerce Operator Is Located In

Taxable Territory

If he is physically If he is not physically

Present Present

Electronic Commerce If his representative is also

operator is liable to pay not present then Electronic
tax commerce operator
Appoint representative for
paying tax
If his representative is
physically present then
he has to pay tax

BRIJESH KUMAR 12
 LEVY OF GST IN CASE OF INTER STATE SUPPLY

Inter State Supply can be defined as supply of goods or services or both between
two different state or union territory of the country.

Under Inter-state supply single GST is levied. On all inter-state supply Integrated
Goods and Services Tax (IGST) (Section 7 of IGST Act) will be levied.

Inter-State Supply can further divided into three parts :

I. Goods II. Services III. Both Goods and Services

Sec.7(1) Sec.7(2) Sec.7(3) Sec.7(4)

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 LEVY OF GST IN CASE OF INTER STATE SUPPLY

I. Inter-State Sale In Case of Supply of Goods:

Section 7(1). Supply of Goods will be within India and the location of supplier
of Goods and place of recipient of Goods are situated in-
(a) Two State
(b) One State One Union Territory
(c) Two Union Territory

Section 7(2). Supply of Goods imported into the territory of India, till they cross
the customs frontiers of India, shall be treated to be a supply of
Goods in the course of inter-state or commerce.

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 LEVY OF GST IN CASE OF INTER STATE SUPPLY

II. Inter-State Sale In Case of Supply of Services:

Section 7(3). Supply of Services will be within India and the location of supplier
of Service and place of recipient of Service are situated in-
(a) Two State
(b) One State One Union Territory
(c) Two Union Territory

Section 7(4). Supply of Services imported into the territory of India,

Shall be treated to be a supply of Services in the course of
Inter-State or commerce.

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 LEVY OF GST IN CASE OF INTER STATE SUPPLY

III. Inter-State Sale In Case of Both Supply Goods and Services:

a. When the supplier is located in India and the place of supply is outside India

b. Supply of goods and services or both to Special Economic Zone (SEZ)

c. Supply of goods or services or both in the taxable territory, not being Intra
State Supply and not covered elsewhere in this section.

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