1. INTRODUCTION [S.

1]
GST Stands for Goods & Services Tax.

GST was introduced in India on 1-7-2017. GST is a comprehensive tax regime

covering both goods and services. GST is a national level tax based on Value
Added Principle.

GST is levied in India on the basis of destination principle i.e. GST is a destination
based tax. Goods and Services Tax (GST) is a tax levied on goods and services
imposed at each point of supply.

The main objective of GST implementation is

1. To consolidates multiple indirect taxes levies into single tax
2. Overcoming limitation of existing indirect tax structure
3. Creating efficiencies in tax administration

The law Purpose

The Central Goods and Services Tax, 2017
(CGST Act)
The States Goods and Services Tax, 2017
(SGST Act)
The Union Territory Goods and Services
Tax, 2017 (UTGST Act)
The Integrated Goods and Services Tax,
2017 (IGST Act)
GST (Compensation to States) 2017
To Levy & collect CGST on intrastate / UT
supplies
To Levy & collect SGST on intrastate
supplies
To Levy & collect UTGST on intra UT
supplies
To Levy & collect IGST on interstate
supplies.
To compensate states for the loss of
revenue, if any, due to introduction of
GST.

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GST is not Levied on
1. Alcoholic liquor for human consumption. (Subjected to state excise duty
and CST / VAT respectively)
2. Petroleum products like petroleum crude, diesel, petrol (motor spirit),
Aviation Turbine Fuel (ATF) and Natural Gas temporarily.
(GST will be levied on these 5 products from a date to be notified on the
recommendation of the GST Council)
(Till such date these 5 products are subjected to state excise duty and CST /
VAT respectively)
3. Real Estate Sector (Transfer of immovable properties is still subject to
stamp duty levied by state governments)
Note:
1. Tobacco & Tobacco products are subject to GST as well as Central Excise
Duty.
2. IGST = CGST + SGST
3. Import will attract Basic Custom Duty + IGST.

In India, GST structure is dual in nature. Indian GST model has 4 tier rate
structure.

CGST has replaced / subsumed / absorbed existing laws relating to goods and
services such as Central Sales Tax, Central Excise, Service Tax, Additional Excise
duty, Special Additional duty of Customs etc.
SGST has replaced / subsumed / absorbed existing laws relating to goods and
services like State VAT, CST, Luxury tax, Octroi and Entry tax, Purchase tax,
Entertainment Tax, Betting tax etc.

Article 246A enabled states to levy tax on services.

GST council was formed under article 279A. The Union Finance Minister is the
chairperson of the GST council. The GST council shall recommend the date on
which the Goods and Services Tax be levied on petrol.

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GST (Compensation to States) Act, 2017
Compensation under the GST Compensation to States Act, 2017 will be provided
to a state for a period of 5 years from the date on which the state brings its SGST
Act into force.
For the purpose of calculating the compensation amount in any financial year
under the GST Compensation to States Act, 2017 year 2015-16 will be assumed to
be the base year, for calculating the revenue to be protected.

GSTN Stands for Goods and Services Tax Network.

(The Goods and Service Tax Network (or GSTN) is a non-profit, non-government organization. It
manages the entire IT system of the GST portal, which is the mother database for everything GST. This
portal is used by the government to track every financial transaction, and provide taxpayers with all
services – from registration to filing taxes and maintaining all tax details.)

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 2. DEFINITIONS [S.2]

BUSINESS [S. 2(17)]

According to S. 2(17), “business” includes –
(a) Any trade, Commerce, manufacture, profession, vocation, adventure,
wager or any other similar activity, whether or not it is for a
pecuniary benefit;
(b) Any activity or transaction undertaken by the central government, a
state government or any local authority in which they are engaged as
public authorities.

ELECTRONIC COMMERCE OPERATORS [S. 2(45)]

According to [S. 2(45)], “electronic commerce operator” means any person who
owns, operates or manages digital or electronic facility or platform for electronic
commerce.

While an aggregator (Uber, Ola, Zomato, Swiggy etc.) only connects the customer
with the supplier / service provider, an e-commerce operator (Amazon, Flipkart)
facilitates the entire process of the supply of goods / provision of service. Under
the GST law, even aggregators would be covered under the definition of
‘electronic commerce operator'.

GOODS [S. 2(52)]

According to [S. 2(52)] “goods” Means every kind of movable property other than
money and securities but includes actionable claim, growing crops, grass and
things attached to or forming part of the land which are agreed to be severed
before supply or under a contract of supply;
Note: Thus standing trees & crops are not goods, but once they are severed/cut
for purpose of supply, they will be considered as goods. (therefore standing
timber are considered as goods.)

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Actionable Claims
• Only activities relating to lottery, betting and gambling will be subject to
GST.
• Examples of actionable claims not subject to GST are
- Insurance policy
- A Partner’s right to sue for account of a dissolved partnership
- Claim of arrears of rent
- Right to claim Provident fund
- Unsecured Loans
- Option to purchase securities / movable or immovable property.
- Right to sue for infringement of brand or copyright.

SERVICES [S. 2(102)]

According to S. 2(102), “services” means anything other than goods, money and
securities but includes activities relating to the use of money or its conversion by
cash or by any other mode, from one form, currency or denomination, to another
form, currency or denomination for which a separate consideration is charged.

Examples
No. Transaction Service? Why
1. Deposit / Withdrawal from Bank A/c No Transaction in money
2. Borrowing / Repayment of Loan No Transaction in money
3. Interest on Loans / Deposits Yes Use of money
4. Loan Processing Fees Yes Use of money
5. Conversion of Currency No No separate
consideration charged
6. Commission on Conversion of Yes Separate consideration
Currency charged
7. Conversion of rupee into coins No Transaction in money
8. Commission for Exchange of soiled Yes Separate consideration
notes. charged

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SUPPLIER [S. 2(105)]
According to S. 2(105), “Supplier” in relation to any goods or services or both,
shall mean the person supplying the said goods or services or both and shall
include an agent acting as such on behalf of such supplier in relation to the goods
or services or both supplied.
A Supplier is a ‘person’ supplying goods and/or services. Supplier is not
necessarily a ‘taxable person' or a ‘registered person'.

TAXABLE PERSON [S. 2(107)]

According to S. 2(107), “Taxable person” means a person who is registered or
liable to be registered under section 22 or section 24 (GST Laws).

Taxable Supply Non-Taxable Supply

As per Section 2(108) of CGST Act,
means supply of goods or services or
both which is leviable to GST under
this Act.
For e.g. Supply of gold jewellery or
Silver Articles.
As per section 2(78) of CGST Act,
means supply of goods or services or
both which is not leviable to GST
under this act or under IGST Act.
For e.g. Supply of Alcoholic Liquor,
Petrol or Diesel.

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 3. SCOPE OF SUPPLY [S. 7 – 8]
The definition of supply vide section 7(1) is inclusive. Thus, any supply of goods or
services would get covered, even if not specified in any of subsections of Section
7(1) of CGST Act.
Supply includes import of services for consideration whether or not in the course
or furtherance of business.
Supply should be in the course of business of the supplier.
IGST will be levied on imports.
Management consultancy services not in course or furtherance of business is not
a supply as per Section 7 of the CGST Act.
Types of supplies (covered under the scope of supply)
a) Supplies made with consideration
b) Supplies made without consideration.

CGST ACT
Schedule I
Schedule I specifies the activities to be treated as supply even if made without
consideration.
Schedule II
The activities to be treated as supply of goods or supply of services as referred to
in Schedule II.
Schedule III
Schedule III specifies the activities which are neither to be treated as supply of
goods nor a supply of services.

Schedule II

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SUPPLY OF GOODS
1) Transfer
Transfer of the title in goods
Transfer of title in goods under an
agreement with stipulates that property
in goods shall pass at a future date upon
payment of full consideration as agreed
(Hire Purchase)
2) Land and Building
3) Treatment or Process
4) Transfer of Business Assets
Goods forming part of the assets of a
business are transferred or disposed off
by or under the directions of the person
carrying on the business so as no longer
to form part of those assets, whether or
not for a consideration.
5) Supply of Services
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SUPPLY OF SERVICES
Transfer of right in goods/
undivided share in the goods
without the transfer of title in
goods. (Rent a Car)
Lease, tenancy, easement, license
to occupy land.
Lease or letting out of the building
including a commercial, industrial
or residential complex for business
or Commerce, either wholly or
partly.
Any treatment or process which is
applied to another persons goods.
Under the direction of a person
carrying on a business, goods held
or used for the purpose of the
business are put to any private use
or are used, or made available to
any person for use, for any
purpose other than a purpose of
the business, whether or not for a
consideration
Renting of immovable property
Construction of a complex,
building, civil structure or a part
thereof, including a complex or
 building intended for sale to a
buyer, wholly or partly, except
where the entire consideration has
been received after issuance of
completion certificate, where
required, by the competent
authority or after its first
occupation, whichever is earlier.
Temporary transfer or permitting
the use or enjoyment of any
intellectual property right.
Development, design,
programming, customization,
adaptation, upgradation,
enhancement, implementation of
information technology software.
Agreeing to the obligation to
refrain from an act, or to tolerate
and act or a situation, or to do an
act.
Transfer of the right to use any
goods for any purpose (whether or
not for a specified period) for cash,
deferred payment or other
valuable consideration.
6) Composite Supply
Works contract as defined in
Section 2(119)
Supply, by way of or as part of any
service or in any other manner
whatsoever, of goods, being food
or any other article for human
consumption or any drink (other
than alcoholic liquor for human
consumption), where such supply
or service is for cash, deferred

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 payment or other valuable
consideration.
7) Supply of Goods
Supply of goods by any unincorporated
Association or body of persons to a
member thereof for cash, deferred
payment or other valuable consideration.

Schedule III
Neither Supply of Goods nor supply of Services

1) Services by an employee to the employer in the course of or in relation to

his employment
2) Services by any court or tribunal established under any law for the time
being in force
3) The functions performed by the Members of Parliament, Members of State
Legislature, Members of Panchayats, Members of Municipalities and
Members of other local authorities
4) The duties performed by any person who holds any post in pursuance of
the provisions of the constitution in that capacity
5) The duties performed by any person as a chairperson or a member or a
director in a body established by the central government or a state
government or local authority and who is not deemed as an employee
before the commencement of this clause
6) Services of funeral, burial, crematorium or Mortuary including
transportation of the deceased
7) Actionable claims, other than lottery, betting and gambling

Gifts not exceeding ₹ 50,000 in value in a financial year by an employer to an

employee shall not be treated as supply of goods or services or both.

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Schedule I

The following shall be treated as supply even if made without consideration S.

7(1)
a) Supply of goods by a principal to his agent where the agent undertakes to
supply such goods on behalf of the principal
b) Supply of goods by an agent to his principal where the agent undertakes to
receive such goods on behalf of the principal
c) Permanent transfer or disposal of business assets where input tax credit
has been availed on such assets.
d) Stock transfer out to another state
e) Temporary application of business asset for a non business needs
f) Free transfer of business asset
g) Permitting employees to make use of the office assets for personal use is
supply.

Consignment agent is liable for GST on goods supplied by him on behalf of the
principal.
A Commission agent is liable for GST only on his Commission.
Import of services by a taxable person from related person or from any of his
other establishments outside India, in the course or furtherance of business shall
be treated as supply even when made without consideration.
Services received by a taxable person in India from its branches located outside
India would be considered to be a supply even when made without consideration.

A combined study of goods and services may be a mixed supply or a composite

supply.

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Composite & Mixed Supplies (Section 8)
Composite Supply
1. Consist of 2 or more taxable
supplies
2. Naturally bundled in
conjunction with each other
one of which is principal supply
3. Trade practice is to bundle such
items together
4. Prices may be charged
separately
5. Taxed at the rate of principal
supply
6. Example: Charger supplied
along with mobile phones
Brief of Schedule II
Supply of Goods
Transfer of the title in goods
Instalment of sale of goods
Hire purchase of goods
Financial lease of goods
Disposal of goods
Mixed Supply
1. Consist of 2 or more individual
supplies
2. Not naturally bundled, only
supplied together
3. No such trade practice
4. A single price is charged
5. Taxed at rate applicable to the
supply with the highest rate of
tax
6. Example: A gift pack
comprising of chocolate’s and
sweets.
Supply of laptop and printer
for a single price.
Supply of Services
Transfer of right in goods
Transfer of undivided share in
goods
Any lease / tenancy / easement
/ license to occupy land
Delivery on CD of customised
software made as per the
requirement of customer
Composite supply
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Coaching by teacher at his residence → taxable supply of service. (Ref. Sch II – 2)
Job work performed by a job worker → taxable supply of service. (Ref. Sch II – 3)
Notice pay paid by an employee to the employer → taxable supply of service.
(Ref. Sch II – 5)
Penalty for violation of contract → taxable service. (Ref. Sch II – 5)

Section Covers
Supply vide S. 7(1)(a) Barter
Exchange
Disposal

Supply vide S. 7(1)(b) Import of services with consideration but not in

course of business.
Import of services from related person without
consideration

Supply vide Schedule I Stock transfers between 2 branches

Supply of goods between principal and agent
without consideration where the agent undertakes
to supply such goods on behalf of the principal.

Deemed Supply of Goods Hire purchase of goods

vide Schedule II
Supply of goods by CHS to a member

Deemed Supply of Operating lease of goods

Services vide Schedule II
Job work

No Supply vide Schedule Services by an employee to the employer in the

III course of or in relation to his employment.
Services of funeral

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Related Persons Officers or directors of one another's businesses

Employer and employee

Distinct Persons Establishments under a single PAN registered

separately
Establishments under a single PAN located in
different states

Composite supply Two taxable supplies naturally bundled together.

Tax rate applicable to the principal supply
Predominant element of a composite supply is the
Principal supply.

Mixed supply 2 individual supplies, not naturally bundled only

supplied together
Highest tax rate applicable

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 4. LEVY & COLLECTION OF TAX [S. 9]

An Intra-state supply will be subject to levy of CGST u/s 9 of CGST Act.

An intrastate supply within a state will also be subject to levy of SGST u/s 9 of the
respective SGST Act, in addition to the CGST.
An Inter-state supply or import will be subject to IGST
IGST on goods imported into India shall we levied and collected in accordance
with the provision of the Customs Tariff Act, 1975.

BASIS OF CHARGE
CGST shall be levied at such rates, not exceeding 20%, as may be notified.
[Maximum CGST rate → 20%]
[Maximum SGST/UTGST rate → 20%]
[Maximum IGST rate → 40%]
ELEMENTS/INGREDIENTS OF CHARGE
CGST Act covers all supplies within the whole of India including Jammu and
Kashmir.
SGST Act covers all states including union territories having state legislatures
(Delhi and Puducherry)
UTGST Act covers all union territories of
(i) the Andaman and Nicobar islands
(ii) Lakshadweep
(iii) Dadra and Nagar Haveli
(iv) Daman and Diu
(v) Chandigarh and
(vi) Other territory.

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Taxable Person
The person liable to pay tax may be the supplier or the recipient.
Levy of tax on the supplier is known as Forward / Normal charge, i.e. Supplier is
liable to pay tax.
Levy of tax on the receipt is known as Reverse charge, i.e. Recipient is liable to pay
tax.

1) Services supplied by GTA (Goods Transport Agency) are subject to RCM

2) Legal Services supplied by an advocate are subject to RCM

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Reverse Charge
The supplies on which reverse charge mechanism would apply at present are on
notified categories of goods or services or both u/s 9(3) of CGST Act.
Reverse charge is applicable on both Intra-state and Inter-state supplies.

Examples
1) In Case of Sponsorship services provided by Mr. A to M/s AB Ltd., liability to
pay GST is on M/s AB Ltd.
2) In case of renting of land, inside an industrial estate, by state government
to a registered manufacturing company, (GST is applicable under reverse
charge) the registered manufacturing company is liable to pay tax.
3) In case of services by an insurance agent to M/s ABC Insurance Company
Ltd., GST is to be paid by M/s ABC Insurance Company Ltd..
4) Sitting fees received by director of XYZ Ltd., is liable for GST in the hands of
XYZ Ltd.
5) Services by a recovery agent to M/s XYZ Bank Ltd., are liable for GST in the
hands of M/s XYZ Bank Ltd.
6) In case of lottery procured from state government by a Lottery distributor,
GST is payable by lottery distributor.
7) If tobacco leaves procured from an agriculturist by a registered person,
then (Reverse Charge is applicable) the registered person is liable to pay
tax.
8) In case M/s PQR Ltd., a registered person, has availed rent-a-cab service
from M/s ABC travels (proprietor) then reverse charge is applicable if ABC
travels is not registered.

ELECTRONIC COMMERCE OPERATORS (ECO) [S. 9(5)/ S. 5(5)]

In case of ecommerce transaction the person liable to pay is e-commerce
operator.
If the ECO is located in taxable territory → the ECO is liable to pay tax.

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 If the ECO is located in taxable Person liable to pay tax is the ECO
territory

If the ECO does not have physical Person liable to pay tax is the
presence in the taxable territory person representing ECO.

If the ECO has neither physical Person liable to pay tax is the
presence nor any representative person appointed by the ECO for
in the taxable territory the purpose of paying the tax

IMPORTS AND EXPORTS

Import of goods means bringing goods into India from a place outside India.
IGST will be levied on imports as additional duty of customs.
Imports are taxed at Basic Custom Duty + IGST
The importer located in the taxable territory is liable to pay the IGST on imports

Exports are treated as zero rated supplies.

Export of goods of SEZ unit will be zero rated supply

4. LEVY & COLLECTIIN OF TAX

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 5. COMPOSITION LEVY [S. 10]

Section 10(1) states that the eligible person may opt to pay, in lieu of the CGST
payable by him, and amount calculated at the prescribed rate. This is known as
the composition levy.
Composition levy is an optional scheme.
The tax payer registered under composition levy scheme has to pay an amount
equal to certain fixed percentage of his annual turnover as tax to the government.
This tax has to be paid on quarterly basis. Such tax payer does not have to
maintain elaborate accounts and records. he has to file a simple quarterly return.
however after opting for this scheme, he cannot issue taxable invoice under GST
law and can neither collect GST from his customers nor can claim Input Tax Credit
on his purchases.

Aggregate Turnover
a) Meaning: The term aggregate turnover means the aggregate value of all
taxable supplies (excluding the value of inward supplies on which tax is
payable by a person on reverse charge basis), exempt supplies, export of
goods or services or both and interstate supplies of persons having the
same Permanent Account Number, to be computed on All India basis but
excludes central tax, state tax, union territory tax, integrated tax and cess.
b) PAN-wise: The aggregate turnover will be computed PAN wise
c) Firm: The turnover of the partner and partnership firm will not be
aggregated
d) HUF: Turnover of karta of HUF in his individual capacity and turnover of
karta as a karta of HUF will not be aggregated.
e) Job-work: Supply of goods after completion of job work, by a registered job
worker shall be included in the turnover of principal.

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 The Prescribed States
threshold limit is
(a) ₹ 75 Lacs In case of Special Category States (SCS) -
Arunachal Pradesh, Manipur, Meghalaya,
Mizoram, Nagaland, Sikkim, Tripura and
Uttarakhand.
(b) ₹ 1.5 Crore Other states (including SCS Assam, Himachal
Pradesh and Jammu and Kashmir)
The aggregate turnover of the registered person should not exceed the said
prescribed limit during the financial year in which the scheme has been availed.
Composition tax payer is a person who can continue under composition levy till
end of financial year and can collect tax on reverse charge basis.
If aggregate turnover exceeds limit then the person cannot continue under
composition levy with immediate effect and cannot collect any tax from
recipients.

Tax Rates

S.no Category of registered CGST SGST/ Total Basis

persons UTGST
1. Manufacturers 0.5% 0.5% 1% TO in State/UT
2. Restaurant Services & 2.5% 2.5% 5% TO in State/UT
Outdoor catering
services
3. Any other eligible 0.5% 0.5% 1% TO of Taxable
supplier (trader) Supplies of Goods
& Services in
State/UT
4. Supplier of only 3% 3% 6% TO of Taxable
Services or Mixed Supplies in
Suppliers (Goods & State/UT
Services)

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ELIGIBLE PERSONS [S. 10(2)]
Section 10(2) of the CGST Act, 2017 specifies the benefit of compositions scheme
shall not be granted if a taxable person is
a) engaged in the supply of services other than provided vide Section 10(1)
b) engaged in making any supply of goods which are not leviable to tax under
this Act
c) engaged in making any Inter-state outward supplies of goods
d) engaged in making any supply of goods through an electronic Commerce
operator who is required to collect tax at source under Section 52
e) A manufacturer of the following goods
S. No Description
1 Ice cream and other edible ice, whether or not containing cocoa
2 Pan Masala
3 Tobacco and manufactured tobacco substitutes
4 Aerated water
f) A casual taxable person or a non resident taxable person.

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 6. EXEMPTION FROM TAX [S. 11]

General exemption by Notification [S. 11(1)]

Exemption should be on the recommendation from the GST council
Exemption by special order notification [S. 11(2)]
Goods are exempt vide Notification No. 2/2017
Services are exempt vide Notification No. 12/2017.
Services under IGST exempt vide Notification No. 9/2017
Inter-state supplies received by registered supplier from unregistered supplier are
exempt vide Notification No. 8/2017
Services imported by SEZ unit are exempt from IGST vide Notification No. 18/2017

A registered person supplying exempt goods is not entitled to collect a tax higher
than the effective rate

Exempt Services
1. Services provided by Central Government to a business entity with an
aggregate turnover of up to ₹ 20,00,000 in the preceding financial year are
exempt
2. Services provided by Central Government where the consideration for such
services does not exceed ₹ 5,000 are exempt
3. Services by a person by way of conduct of any religious ceremony are
exempt
4. Services by way of right to admission to a dance are exempt, if admission
ticket per person is not more than ₹ 500.
5. Services by a hotel for lodging purposes, having declared tariff of a unit of
accumulation below ₹ 1,000 per day are exempt
6. Services provided by an incubatee upto a total turnover of ₹ 50,00,000 in a
financial year are exempt subject to conditions

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7. Services by a veterinary clinic in relation to healthcare of animals or birds
are exempt
8. Services by way of slaughtering of animals is exempt
9. Services provided by the Indian Institutes of Management, by way of 5
year integrated program in management are exempt
10. Services provided by the cord blood bank by way of preservation of stem
cells are exempt
11. Services by an artist by way of performance in folk or classical art form of
music if the consideration charged for such performance is not more than
₹ 1,50,000
12. Services by an entity registered under section 12AA of the Income Tax Act,
1961 by way of charitable activities are exempt
13. Service of transportation of passengers in Metro will be exempt
14. Services by way of transfer of a going concern, as a whole or an
independent part thereof are exempt
15. Service of transportation of passengers by metered cabs or auto rickshaws
is exempt
16. Services by way of transportation of goods by an aircraft from a place
outside India up to the Customs Station of clearance in India is exempt
17. Services by way of transportation by rail of agricultural produce is exempt
18. Services by way of ripening of fruits are exempt
19. Service by way of access to a road or a bridge on payment of toll is exempt
(Toll charges are exempt)

Not Exempt/Taxable Services

1. Services by the Department of post by way of speed post are not exempt
2. Services provided by the central government, state government, union
territory or local authority to a business entity by way of renting of
immovable property are not exempt
3. Services to the Reserve Bank of India are not exempt
4. Services by an organizer to any person in respect of a business exhibition
held outside India are subject to IGST
5. Rearing of horses is not exempt

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Supply of Alcoholic liquor and Petroleum products is non-taxable supply
Exemption from CGST automatically operates as exemption from SGST
Exemption from IGST automatically operates as exemption from GST on imports

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 7. TIME OF SUPPLY [S. 12-14]
TIME OF SUPPLY OF GOODS (SECTION 12)
In Case of Forward Charges
The Time of Supply of goods, in case of forward charge is
(a) date of issue of invoice or
(b) due date of issue of invoice
whichever is earlier.
Tax invoice must be issued by every registered person not paying tax under
composition scheme on supplies made by him
An invoice must be issued at the time of removal of goods

The date on which the supplier receives the payment shall be

(a) The date on which the payment is entered in his books of account or
(b) the date on which the payment is credited to his bank account
whichever is earlier.

Time of Supply of Goods

Section 12 states that the Time of Supply (TOS) of goods (when supply involves
movement of goods)
(i) Invoice (date of actual issue or last date when it should be issued)
or
(ii) Payment
whichever is earlier
The date of Advance received should be ignored

When the supply does not involve movement of goods, a registered person
supplying taxable goods shall issue a tax invoice - before or at the time of delivery
of goods or making goods available to the recipient

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The time of supply of goods when the supply does not involve movement of
goods
(i) Date of actual issue of Invoice
or
(ii) Date of Delivery (Date when goods made available to the receipent)
Whichever is earlier

Goods on Approval Basis

In case of goods sent on approval basis invoice has to be issued
(a) when the recipient accepts the goods
or
(b) 6 months from the date of supply
whichever is earlier.
Where the goods being sent on approval for sale or return are removed before
the supply takes place, the invoice shall be issued
(a) Before / at the time of supply
or
(b) 6 months from the date of removal
whichever is earlier

Assumption: A dealer has sent some goods to another dealer for sale on approval
basis, in absence of any confirmation even after 6 months, it will be treated as
deemed supply of goods.

In Case of Reverse Charge

The Time of Supply of goods liable to tax under reverse charge mechanism is
(a) Date of receipt of goods
or
(b) Date on which the payment is made

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 or
(c) Date immediately following 30 days from the date of supply of service by
the supplier
whichever is earlier

Vouchers
When the supply with respect to the voucher is identifiable the TOS of vouchers is
the date of issue of voucher
When the supply with respect to the voucher is not identifiable, the TOS of
vouchers is the date of redemption of voucher.

The date of Receipt of Payment is

a) Date of entry in the books
or
b) Date of payment credited into bank account
whichever is earlier

TIME OF SUPPLY OF SERVICES

In Case of Forward Charges
If the invoice is issued within 30 days from the date of provision/supply of service
then, the TOS of service is
a) Date of issue of invoice
or
b) Date on which the supplier receives payment
whichever is earlier

If the invoice is not issued within 30 days from the date of provision/supply of
service & no advance payments are received then, the TOS of service is - Date of
Completion of supply of service

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Tax Invoice
If supply of services has ceased under a contract before the completion of supply
then invoice has to be issued at the time of cessation to the extent of the supply
affected.
The tax invoice should be issued within 30 days from the date of supply of service
i.e. In case of taxable supply of services, invoice shall be issued within a period of
30 days from the date of supply of service.

Continuous supply of services

Continuous supply of services means a supply of services who provided, or agreed
to be provided, continuously or on recurrent basis, under a contract, for a period
exceeding Three months with periodic payment obligations and includes supply of
such services as the government may subject to such conditions, as it may, by
notification, specify
In case of continuous supply of services, where due date of payment is
ascertainable from the contract, invoice shall be issued on or before the due date
of payment.
In case of continuous supply of services, where due date of payment is not
ascertainable from the contract, invoice shall be issued before or at the time
when the supplier of service receives the payment.
(Minimum service periods required to constitute a continuous supply of services
with periodic payment is exceeding Three months.)

In Case of Reverse Charge

The TOS in case of Reverse Charge Mechanism is
a) Date of payment as entered in the books of accounts of the recipient
or
b) Date immediately following 60 days from the date of Supply of Service
whichever is earlier.

In Case of Associates

29
The TOS of service in case an associated enterprise receives service from the
service provider located outside India is
a) Date of entry in the books of account of associated enterprise (recipient)
or
b) Date of payment
whichever is earlier

Vouchers
In respect of Services, when the supply with respect to the voucher is identifiable
the TOS of vouchers is the date of issue of voucher
In respect of Services when the supply with respect to the voucher is not
identifiable, the TOS of vouchers is the date of redemption of voucher.

30
 8. NATURE & PLACE OF SUPPLY [S. 7 - 13]

IGST Act
The provisions relating to nature and place of supply are found in the IGST Act.
Section 7 of the IGST Act deals with Interstate supply.
IGST is levied on Inter-state supply of goods and services. IGST means Integrated
GST
IGST = CGST + SGST
A Supply is an Inter-state Supply
1) Where the location of the supplier and the place of supply are in 2 different
states.
2) Where the location of the supplier and the place of supply are in 2 different
Union Territories
3) Where the location of the supplier and the place of supply are in a State &
Union Territory.
4) Import/Export of goods will be treated as Interstate supply.
5) Supply to international tourist at a shop located in India is Interstate supply.
For ex: Supply to international tourist from USA at a shop in Mumbai is
Interstate supply.
Note: Import will attract Basic Custom Duty + IGST. Customs port is known as
Customs Frontier.

PLACE OF SUPPLY OF GOODS & SERVICES

Broadly place of supply is based on the place of consumption of goods or services.
PLACE OF SUPPLY OF GOODS
Generally the place of supply of goods is the place of delivery of goods
Where the supply involves movement of goods, the place of supply of such goods
shall be the location of the goods at the time at which the movement of goods
terminates for delivery to the recipient.

31
Where the supply does not involve movement of goods, the place of supply shall
be the location of such goods at the time of the delivery to the recipient.
Where the goods are assembled at site, the place of supply shall be the place of
assembly
Place of supply of goods, other than supply of goods imported into, or exported
from India, where the goods are supplied on board a conveyance such as vessel,
an aircraft, a train or motor vehicle is the location at which such goods are taken
on board.
The place of supply when the goods are supplied on the direction of the Third
party is the location of the Third party.
The place of supply of goods imported into India shall be the location of the
importer.
The place of supply of goods exported from India shall be the location outside
India.
Re-import of goods exported earlier will be liable to GST.
Place of supply of a transaction in territorial waters is Coastal State where the
nearest point of the appropriate baseline is located.
Examples:
1) Place of supply in case of installation of elevator is where the installation of
elevator is made.
2) Place of supply of food taken on board at Delhi for an aircraft departing
from Delhi to Bengaluru via Hyderabad is Delhi
3) Place of supply of goods supplied in a train which is heading towards Delhi
from Chennai, if the goods are taken on board at Coimbatore is
Coimbatore.

PLACE OF SUPPLY OF SERVICES

In a B2B (Business to Business) supply, the place of supply is normally the location
of the registered recipient.
1) The Place of supply of services made to a registered person shall be the
location of the registered person

32
 2) The Place of supply of services made to any person other than a registered
person if address on record exist shall be the location of the recipient
3) The Place of supply of service made to any person other than a registered
person if the address on record doesn't exist shall be the location of the
service provider.

‘Import of Services' means the supply of any Service, where

a) The supplier of service is located outside India
b) The recipient of service is located in India
The Place of Supply of service in case of ‘import of services' is in India.
Examples:
1) The place of supply of training and performance appraisal services to a
registered recipient is the location of the recipient.
2) The place of supply of training services will be where services are actually
performed if the recipient is unregistered.
3) The place of supply of Post-paid mobile connection services is the address
on record of the recipient.
4) The place of supply of Pre-paid mobile connection services is the location of
service provider if the location / address of the recipient is not available.
5) The place of supply of services by an architect in relation to immovable
property outside India is the location of recipient.
6) The place of supply of services by way of lodging accommodations in a
Shikara on Jhelum River in Srinagar is the location of the boat.
7) The place of supply of services on board a conveyance shall be the location
of the first scheduled point of departure of that conveyance for the journey

Determining POS
1. An event management company registered in New Delhi organises
an art exhibition displaying works of an international painter based in
Dubai at Dubai and New Delhi. (The place of supply is New Delhi.)
2. Mr D of Delhi being an event organiser hosted an exhibition at
Mumbai to exhibit the products of M/s S Silk Ltd. of Singapore. (The
place of supply is Mumbai.)

33
3. Mr D of Dhaka being an event organiser hosted an exhibition in
Mumbai to exhibit the products of M/s S Silks Ltd. of Shimla. (The
place of supply is Mumbai.)
4. If XYZ bank in USA charges loan processing charges to ABC Co.
located in India, (the place of supply is USA.)
5. Place of supply of service for DTH by ABC Pvt. Ltd. located in Mumbai
to Customer in Patna is Patna.
6. Mr X of Hyderabad not having bank account takes a demand draft in
Kolkata from ABC bank for his visa purpose. (The place of supply is
Kolkata.)
7. The provider of AMC service outside India has entered into an
agreement for an aircraft company PQR Ltd. in India AMC. The
service provider provides repair service to the aircraft when it was in
India. (The place of service in this case is India.)
8. Real estate agent in Delhi charges brokerage fee to company a
located in Chandigarh for assistance in getting a commercial property
in Kolkata (the place of supply in this case is Kolkata.)
9. The place of supply of service where restaurant provides catering
service at the premise of the customer is customer premise where
catering service is provided.
10. Mr X, a resident from Pune conducts training for employees of P Ltd.
(being a registered person under GST) based out in Chennai at a
resort in Darjeeling. The place of supply in this case is Chennai.
11. If XYZ Ltd. a company based out of Bengaluru awards online
maintenance contract of its servers located in Mumbai office to Y
incorporation, a company based out of USA, and as per the terms of
the online maintenance Y incorporation shall be required to perform
regular maintenance from USA using Internet, then the place of
supply is Bengaluru.
12. Mr Y residing in Ahmedabad appoints an architect in Delhi to provide
Indian traditional home design for his proposed construction at Los
Angeles, the place of supply of service is Los Angeles.
13. If NM shipping Co. Located in Chennai charges ocean freight charges
for transport of goods to California for a customer located in
Bengaluru, the place of supply of service will be California.
14. Place of supply of architects in relation to the design of office
building shall be the location of such office building.

34
 15. Place of supply of services in relation to lodging accommodations
shall be the location at which the lodging accommodations is located.
16. ABC Ltd. of Delhi has entered into a contract with KSM training Ltd.
of Mumbai for training and performance appraisal of its employees.
The services were performed at Nainital training centre of KSM
training Ltd.. The place of supply of services in case ABC Ltd. is not
registered will be Nainital.
17. The place of supply of services provided by way of admission to a
cultural, artistic, sporting, scientific, educational, entertainment
event or amusement park or any other place and services ancillary
thereto shall be the place where the event is actually held.
18. The place of supply of services provided by way of transportation of
goods, including by Mail or Courier, to a person other than a
registered person, shall be the place at which such goods are handed
over for their transportation.
19. Place of supply of services in relation to mobile connection for
prepaid customers other than through Internet banking shall be the
location where such pre payment is received and such vouchers are
sold
20. The place of supply of passenger transportation services to a person
other than a registered person, shall be the place where the
passenger embarks on the conveyance for a continuous journey.
21. The place of supply of insurance services to a registered person, shall
be the location of the recipient.

Important Sections
Provision Sections
1 Inter-state Supply Section 7
2 Intra-state supply Section 8
3 Supplies in territorial waters Section 9
4 Place of supply of goods within India Section 10
5 Place of supply of imports / exports of goods Section 11
6 Place of supply of services within India Section 12
7 Place of supply when supplier / recipient of Section 13
services outside India

35
Identifying Inter-state & Intra-state Supplies
1) Supplier of goods located in Delhi and place of supply of goods in Jaipur –
Inter-state supply
2) Supplier of goods located in Delhi and place of supply of goods is to a SEZ
located in Delhi – Inter-state supply
3) Supplier of goods located in Delhi and place of supply of goods is to a SEZ
located in Chandigarh – Inter-state supply
4) Location of supplier and place of supply is Lucknow, UP – Intra-state supply
5) Location of supplier is in Lucknow, UP and place of supply is Mumbai –
Inter-state supply
6) Location of supplier is in Bengaluru and location of recipient is in Mumbai
and goods are shipped to Kolkata – Inter-state supply
7) Location of supplier is in Bengaluru and place of supply is Mumbai – Inter-
state supply
8) Location of supplier and place of supply is Bengaluru - Intra-state supply
9) Supply of goods in the course of import into the territory of India – Inter-
state supply

36
 9. VALUE OF SUPPLY [S. 15]
The value of supply of goods and services shall be the Transaction Value
Transaction value is the price actually paid or payable as the sole consideration
for the supply.
In most of the cases of Regular Normal Trade, Invoice value will be the transaction
value.

When the buyer and seller are related or price is not the sole consideration
1) The transaction value can be rejected for computation of value of supply
2) If goods are supplied to related persons then the taxable person should
refer to rules which are prescribed for this purpose to ascertain the value of
supplies.

Persons shall be deemed to be ‘related persons' if

1) Such persons are officers or directors of one another’s business.
2) Such persons are legally recognised partners in business.
3) Such persons are employer and employee. (A Company & its Sole agent are
related persons)
4) Any person directly or indirectly owns, controls or holds 25% or more of the
outstanding voting stock or shares of both of them
5) One of them directly or indirectly controls the other
6) Both of them are directly or indirectly controlled by a 3rd person.
7) Together they directly or indirectly control a 3rd person or
8) They are members of the same family.

INCLUSIONS [S. 15(2)]

The value of supply (Taxable Supply) should include
1) Any non GST taxes, duties, cesses, fees charged by supplier separately
2) Incidental expenses, including Commission and packing, charged by the
supplier to the recipient of a supply.

37
 3) Interest, late fees or penalty for delayed payment of any consideration for
any supply of goods or services
4) Subsidies directly linked to the price except subsidies provided by the
central and state government.
Examples
a) Excise duty on manufactured tobacco is included in the taxable value
of supply
b) Installation and testing charges at the recipients site are included in
the taxable value of supply.
c) Late fee for delayed payment of any consideration for any supply is
included in the taxable value of supply.
d) The basic customs duty charged on imports is included in the taxable
value of imports.

The value of supply should not include GST

The value of Supply (Taxable Supply) should not include
1) Taxes levied under SGST Act, 2017
2) Taxes levied under CGST Act, 2017
3) Taxes levied under GST Compensation Cess Act, 2017

DISCOUNT [S. 15(3)]

Discounts offered to customers, subject to conditions are allowed as deductions
from the transaction value.
Discount given after the supply is deducted from the value of taxable supply, if
1) Such discount is given as per the agreement entered into at/or before the
supply.
2) Such discount is linked to the relevant invoices.
3) Proportionate input tax credit is reversed by the recipient of supply.
Note: Trade discount given in the invoice is not included in the taxable value of
supply.

38
 Particulars Section
1 Inclusion of Taxes in Transaction Value S. 15(2)(a)
2 Inclusion of Incidental Expenses in Transaction Value S. 15(2)(b)
3 Inclusion of Additional Charges in Transaction Value S. 15(2)(c)
4 Inclusion of Interest in Transaction Value S. 15(2)(d)
5 Inclusion of Subsidies in Transaction Value S. 15(2)(e)
6 Exclusion of Discount from Transaction Value S. 15(3)
7 Valuation of Supply to related persons S. 15(4)

Notes
1) When value cannot be determined under Section 15, the same is
determined under Chapter 4: Determination of Value of Supply of CGST
Rules.
2) Provisions of value of supply under CGST Act are made applicable to IGST
Act.

39
 10.INPUT TAX CREDIT [S. 16, 18]

Every registered person shall be entitled to ITC charged on inward supply of goods
and/or services.
Input tax for the purpose of ITC includes
- IGST on imports
- CGST payable under reverse charge mechanism
- IGST payable under reverse charge mechanism
- SGST payable under reverse charge mechanism

Input tax for the purpose of ITC excludes composition levy.

Electronic Credit Ledger (ECL)

The ITC, as self-assessed in his return, can be credited on a provisional basis to the
persons Electronic Credit Ledger.
The self-assessed input tax credit in the ECL can be utilised for payment of self-
assessed output tax as per the return.
The self-assessed input tax credit in the ECL can be utilised for payment of output
tax on taxable supply made by his agent.

Order of ITC set-off

IGST shall first be utilised towards payment of IGST, And the amount remaining, if
any may be utilised towards payment of Central Tax and State Tax / Union
Territory Tax.
CGST shall be first utilised towards payment of CGST, and the amount remaining if
any, may be utilised towards payment of Integrated Tax.
SGST shall be first utilised towards payment of SGST, and the amount remaining,
if any, may be utilised towards payment of integrated tax.

40
Note:
1) The Central Tax shall not be utilised towards payment of State/Union
Territory Tax and
2) The State/Union Territory Tax shall not be utilised towards payment of
Central Tax.

ITC available only on receipt of last lot

When goods are received in lots, ITC is availed only at the time of receipt of the
last lot.

Avail ITC
1) To avail ITC, the invoice value including the tax should be paid to the
supplier within 180 days of the date of invoice.
2) The registered person will be entitled to ITC on the basis of an invoice
issued under reverse charge.
3) The registered person will be entitled to ITC on the basis of the relevant
debit note.
4) The registered person will be entitled to ITC on the basis of a bill of entry
for imports.
5) The registered person is not entitled to take ITC on input tax paid in
advance before supply.
6) ITC will be available to the registered person on whose order the goods are
delivered to 3rd person.
7) To avail ITC, the registered person taking the ITC must have filed his return
under section 39.
Note: The Condition (1) for availing ITC, on payment of value of supply plus tax
within 180 days does not apply on which tax is payable on reverse charge
basis.

41
When exempt supply becomes a taxable supply
1) Credit of inputs can be taken, only if relatable to such exempt supply.
2) Credit on capital goods is available, only if exclusively used for such
exempt supply.

IMPORTANT POINTS TO REMEMBER

1) Who can Claim ITC? ➔ Every registered person

2) Which input taxes are eligible for
ITC?
3) Which inputs are eligible for ITC?
4) Which taxes can be paid by using
ITC?
5) When goods are received in Lots
6) To Avail ITC, the invoice value
including the tax should have
been paid to the supplier
7) ITC will be available to the
registered person
8) A person who takes voluntary
registration under S. 25(3)
➔ GST excluding composition levy
➔ Inputs used for business
➔ Output tax except under RCM
➔ Entire ITC is availed only at the
time of receipt of the last lot
➔ Within 180 days of the date of
invoice
➔ On whose order the goods are
delivered to 3rd person
➔ Can claim ITC on input held in
stock on the day registration is
granted

Examples
1) Mr Z becomes liable to pay tax on 1-8-2020 and has obtained registration
on 15-8-2020.
Then
Mr Z is eligible for ITC on inputs held in stock and inputs held as part of
semi finished goods or finished goods in stock as on 31-7-2020. (the day
immediately preceding the date from which he becomes liable to pay tax)
And
Mr Z cannot take ITC on capital goods.

42
 2) Mr. A applies for voluntary registration on 5-6-2020 and obtains
registration on 22-6-2020.
Then
Mr. A is eligible for ITC on inputs held in stock as on 21-6-2020. (The day
immediately preceding the date of grant of registration)
And
Mr. A cannot take ITC on capital goods.

Capital Goods
1) The definition of inputs does not include capital goods
2) It is mandatory to capitalize the capital goods in books of accounts
3) Credit on capital goods can be taken immediately on receipt of goods
4) Input tax credit on capital goods and inputs can be availed in one
installment
5) Input tax credit is eligible if depreciation on tax component is not availed of
capital goods like plant machinery.

The term “used in the course or furtherance of business” means it is used or

intended to be used in the course of business.
Under section 16(2) of CGST Act all 4 conditions are to be fulfilled for the
entitlement of credit
1) He has a tax invoice / debit note / other prescribed tax paying documents
2) He has received the goods and / or services
3) The tax charged in respect of such supply has been actually paid to the
government
4) He has furnished the return under section 39.

43
 1) The tax paying documents in section 16(2) are
- Bill of entry, invoice raised on RCM supplies, debit note etc.
Credit on inputs should be availed based on both receipt of documents
and receipt of goods
2) In specific instances credit can be availed without actual receipt of goods
where goods are transferred through transfer of document of title before
or during the movement of goods
3) In case supplier has deposited the taxes but the receiver has not received
the documents, the receiver is not entitled to avail credit as one of the
conditions of Section 16(2) is not fulfilled
The time limit to pay the value of supply with taxes to avail the input tax
credit is 180 days
The recipient can avail the input tax credit for the part payment of the
amount to the supplier within 180 days but proportionately to the extent of
value and tax paid

The maximum time limit to claim the input tax credit is

a) The date of filing annual return
b) Due date of September month which is following the financial year
Whichever is earlier

If an Assessee obtains new registration, voluntary registration, change of scheme

from composition to regular scheme and from exempted goods/services to
taxable goods services
➢ it can avail credit on inputs lying in stock and the time limit for taking said
credit is one year from the date of invoice
➢ Credit on input services or capital goods held in stock cannot be availed

In case of voluntary registration

input tax credit can be availed on stocks held on the day immediately preceding
the day of grant of registration under the provisions of this act

44
In case of compulsory registration
input tax credit can be availed on stocks held on the day immediately preceding
the date from which he becomes liable to pay tax under the provisions of this act,
provided application for registration is filed within 30 days from the due date

Eligibility of credit on capital goods in case of change of scheme from composition

scheme to regular scheme is immediately before the date from which he becomes
liable to pay tax under regular scheme

The unutilised input tax credit can be transferred in case of change in the
constitution of business only if there is provision of transfer of liabilities.

In case of switchover from taxable to exempt supplies

➢ Input tax fully restricted
➢ Input tax is to be paid equivalent to the credit in respect of inputs held in
stock including semi-finished and finished goods and on capital goods held
in stock

Input tax is to be reversed in case of supply of capital goods to the extent of credit
taken as reduced by prescribed percentage or tax on transaction value whichever
is higher

ITC can be taken on goods even if goods not received by registered person but
1) By his agent on his direction
2) By the job worker on his instruction
3) By any other person on his direction

45
ITC can be availed on
1) Position of prescribed invoice / debit note
2) Receipt of goods / services
3) Tax on supply has been paid to the government and return being furnished
by the supplier

Maximum time limit for availing ITC is

a) The date of filing of annual return
b) Due date of filing return under section 39 for the month of
September
whichever is earlier

ITC can be claimed by a registered person for taxable supplies for business
purpose

46
 11. REGISTRATION UNDER GST LAW [S. 22 – 30]

The registration in GST is State specific

If a person makes a single taxable supply from a branch in any of the special
states, the threshold limit is ₹ 10 lacs.
Aggregate turnover

Includes Excludes
1 All Taxable supplies 1 The value of inward supplies
on which tax is payable by a
person on reverse charge
basis. (Inward supplies
taxed under RCM)
2 Exempt supplies
3 Supplies with nil rate of tax
4 Supplies wholly exempt from tax
5 Supplies not taxable under the act
6 Supplies of alcoholic liquor for human
consumption
7 Supplies listed in Schedule III
8 Export of goods / services
9 Zero-rated supplies
10 Interstate supplies between units of a
person under same PAN
11 Interstate supplies made by the
taxable person on his account or on
behalf of all his Principals.

All the taxpayers who were registered under various earlier indirect tax laws are
liable to be registered under GST with effect from 22/6/2017

47
Where the business is transferred, pursuant to a sanction of a scheme for
amalgamation the transferee is to be registered with effect from the date on
which the ROC issues a certificate of incorporation.
Any person engaged exclusively, in supplying goods that are not liable to tax /
wholly exempt from tax shall not be liable to registration.

Casual Taxable Person

➢ Casual taxable persons are required to obtain GST registration at least 5
days prior to undertaking business.
➢ A casual tax person shall not be required to file annual return.
➢ Input tax credit can be availed in respect of goods and / or services received
by a casual taxable person.
➢ A casual taxable person does not have a fixed place of business in a state /
UT in India.

Non Resident Taxable Person

➢ A non resident taxable person cannot exercise the option to pay tax under
composition levy.
➢ Non resident taxable person should apply for registration using a valid
passport.
➢ The taxes paid by a non resident taxable person shall be available as credit
to the respective recipients.
➢ Input tax credit shall be available in respect of goods imported by a non
resident taxable person.
➢ A non resident taxable person does not have a fixed place of business in a
state / UT in India.

Every person who is liable to be registered shall apply for registration within 30
days from the date on which he becomes liable to registration.

48
 Forms
1 Part A of Form ➔ Details of Name, Pan, Mobile No., e-mail and State / UT
GST REG-01
Part B of Form ➔ Part of application form to be signed and submitted
GST REG-01 electronically along with specified documents.
2 GST REG-02 ➔ Acknowledgement of application for registration
3 GST REG-03 ➔ e-notice by proper officer for deficiency in application for
registration
4 GST REG-04 ➔ e-reply to e-notice by proper officer for deficiency in
application for registration
5 GST REG-05 ➔ Rejection of application for registration by proper officer
6 GST REG-06 ➔ Certificate of registration

GST Identification Number (GSTIN)

Each taxpayer is assigned a state-wise PAN-based 15-digit GSTIN.
➢ Digits 1st and 2nd of GSTIN ➔ State Code
➢ Digits 3rd – 12th of GSTIN ➔ PAN
➢ 13TH Digit of GSTIN ➔ Entity No. of same PAN Holder in State
➢ 14TH Digit of GSTIN ➔ Default Digit for entity code
➢ 15TH Digit of GSTIN ➔ Check Sum

Unique Identity Number (UIN)

➢ Any specialised agency of the United nations organization is required to
obtain a UIN.
➢ UIN is needed for claiming refund of taxes paid on notified supplies of
goods received by a consulate of a foreign country.

49
Every supplier shall be liable to be registered under this act in the state or union
territory, other than special category states from where he makes a taxable
supply of goods or services or both, if his aggregate turnover in a financial year
exceeds ₹ 20 lacs
Where a person makes taxable supplies of goods or services or both from any of
the special category states he shall be liable to be registered if his aggregate
turnover in a financial year exceeds ₹ 10 lacs.
Taxable minimum turnover limit in GST that is applicable to the state of
Maharashtra is ₹ 20 lacs.
1) All persons are mandatorily required to obtain registration however
registration is not required if a person is an agriculturist or person
exclusively engaged in supplying exempt goods or services.
2) A person can’t collect tax unless he is registered.
3) Form GST REG-01 is used for registration.
4) Non-Resident taxable person can submit application for registration in form
GST REG-09.
5) A person should apply for registration within 30 days from the date he
becomes liable for registration.
6) A person having multiple business verticals in a state may obtain a separate
registration for each business vertical.
Voluntary Registration
1) A person may get himself registered voluntarily and shall comply with all
the provisions of GST.
2) Voluntary registration can be cancelled
a. If the person does not start the business within six months from the
date of registration
b. Business has been discontinued or transferred for any reason
c. Non filing of returns for a continuous period of six months or for 3
consecutive tax period in case of composite dealer.
PAN issued under the Income Tax Act is mandatory for grant of registration
however non resident taxable person may be granted registration on the basis of
any other document.
An ecommerce operator should get registered if he is liable to collect tax at
source and / or his aggregate turnover exceeds the threshold limit.

50
Registration Certificate
1) Where the application for grant of registration has been approved, a
certificate of registration in form GST REG-06 shall be made available to the
applicant on the common portal.
2) Every registered taxable person shall display his certificate of registration in
a prominent location at his principal and at every other place of business
also GST in shall be displayed on the name board at the entry of such
places.
3) The Registration certificate is valid till it is cancelled.
4) The validity of the registration certificate issued to a casual taxable person
and non-resident taxable person is
3) 90 days from the effective date of registration
4) Period specified in the application for registration
Whichever is earlier.
Cancellation of Registration
1) Consequences of obtaining registration by misrepresentation – Liable to
cancellation of registration by proper officer.
2) Cancellation does not affect the liability of taxable person to pay tax and
other dues under CGST / SGST / IGST.
3) Cancellation of registration under CGST Act shall be deemed to be
cancellation of registration under SGST Act and vice versa.
4) Revocation of cancellation of registration under CGST Act shall be deemed
to be revocation of cancellation of registration under SGST Act.
An application for revocation of cancellation of registration can be made within
thirty days from the date of service of the cancellation order.
Every person registered under any of the existing laws, who is not liable to be
registered under the act may, on or before 31st March at his opinion, submit an
application in form GST REG-29 for the cancellation of registration granted to him

51
An Unique Identity Number will be allotted to the following persons - Specialised
agency of the UNO or any multilateral financial institution or consulate or
embassy of foreign countries.

Physical verification of business premises is a discretionary power of proper

officer.
Business which has centralised registration under ______ Act shall obtain
separate registration in each state from where it is making taxable supplies.
GTA will take registration on services in relation to the transportation of goods
(including used household for personal use) if, GT avails ITC on supplies made by
him.

The following persons requires compulsory registration, irrespective of threshold

limit
1) Casual taxable person
2) Non-Resident taxable person
3) Person liable to pay under reverse charge mechanism
4) Ecommerce operator.

For example
1) Mr. A has started supply of goods and services in Delhi. He is required to
obtain registration if he is aggregate turnover exceeds ₹ 20 lacs during a
financial year.
2) Rohan toys is a registered supplier of goods in Delhi. It intends to attain a
seven days business fair organised in Mumbai next month where it does
not have a fixed place of business, then Rohan toys has to obtain
registration as a casual taxable person for attending the business fair.
3) A dealer who is a resident of Delhi has business places both at Delhi and
Uttar Pradesh then he has to take separate GST registration both at Delhi
and Uttar Pradesh with the same PAN.

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4) One multinational company (MSC) has places of business all over India then
it cannot take a single centralised GST registration but it has to take
registration in all the states from where it makes supplies of goods or
services.

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 9. DOCUMENTATION

Tax invoice must be issued by every registered person not paying tax under
composition scheme.
An invoice must be issued at the time of removal of goods.
In case of goods sent on approval basis, invoice has to be issued
a) When the reciepent accepts the goods
OR
b) Six Months from the date of Supply.
Whichever is earlier.
Where the goods being sent or taken on approval for sale or return are removed
before the supply takes place, the invoice shall be issued
a) Before / at the time of supply
OR
b) 6 months from the date of removal
Whichever is earlier.
If a dealer has sent some goods to another dealer for sales on Approval Basis. In
absence of any confirmation even after 6 months, it will be treated as deemed
supply of goods.
If supply of Services has ceased under a contract before the completion of supply
then, invoice has to be issued at the time of cessation to the extent of the supply
effected.
The tax invoice should be issued within 30 days from the date of supply of service.
In case of taxable supply of services, invoice shall be issued within a period of 30
days from the date of supply of service.
Continuous supply of services means a supply of services who provided, or agreed
to be provided continuously or on recurrent basis, under a contract, for a period
exceeding Three months with periodic payment obligations, and includes supply
of such services as the government may subject to such conditions, as it may, by
notification, specify.

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In case

13. COMPUTATION OF LIABILITY AND TAX

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Value of Supply
1) Refundable Security Deposit
2) Commission on purchase and sale of food grains – Food grain is an
agricultural products and services of agent causing sale and purchase
thereof is exempt vide entry 54 - NN 12 / 2017
3) Job – work For agriculture - exempt wide entry 54 - NN 12 / 2017

Charitable Institution
5) Membership fees received from its own members at less than ₹1000
each is an exempt supply vide entry 77A - NN 12 / 2017
6) Amount received for advancement of educational programs relating
to Abandoned or orphanage or homeless children is a charitable
activity and is an exempt supply.
7) Amount received from counseling of terminally ill person is a
charitable activity and is an exempt supply.
8) Fees for yoga camp is a charitable activity and is exempt.
9) Amount received relating to preservation of forest and wildlife is
exempt.

Post Office Exempt vide Entry 6 of Exemption Notification No. 12/2017.

1) Basic mail service exempt
2) Transfer of money through money orders
3) Operation of savings account
4) Issuance of postal orders
5) Pension payment service.

Charitable Trust
1) Renting of residential dwelling for use as a residence.
2) Renting of rooms for devotees (charges per day below ₹1000)
3) Renting of halls and open space (charges per day below ₹ 10,000)
4) Renting of shops for business (charges per month below ₹ 10,000)

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Properties
1) Rent from vacant land used for agriculture
2) Rent from properties let for residential purposes.

Hotels
1) Tariff per room less than ₹1000

Transport of Passengers

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