Define the Person under GST

A ‘taxable person’ under GST, is a person who carries on any business at any place in India and
who is registered or required to be registered under the GST Act. Any person who engages in
economic activity including trade and commerce is treated as a taxable person.

‘Person’ here includes individuals, HUF, company, firm, LLP, an AOP/ BOI, any corporation or
Government company, body corporate incorporated under laws of foreign country, co-operative
society, local authority, government, trust, artificial juridical person.
Custom duty
List of items prohibited for importation and exportation under section 11

Export Import

1. Sandalwood oil 1.Explosives

2. Cardamom 2. Arms and ammunition
3. Psychotropic substances 3.Psychotropic substances
4. Obscene books and other 4.Narcotic drugs
publication 5.Counterfeit coins
5. Tussar or Muga silk 6. Quinine
6. Indian made wool 7.Saccharine
7. Chillies and oil product 8. Matches
8. Animal casings 9. Fictitious stamps
9. Specified fruits 10.Armoured cars
10. Mechanical lighters 11.Antiquities
11. Wildlife and their parts 12Negative film.
12. Exotic birds
13. Endangered species
14. Beef
15. Human skeletons
16. Tallow
17. Fat
18. Wood and wood products
19. Sandal wood
20. Chemicals for weapon
21. Red sandal wood

Reasons for prohibition of importation and exportation by union govt

The maintenance of the security of India;

The maintenance of public order and standards of decency or morality;

The prevention of smuggling;

The prevention of shortage of goods of any description;

The conservation of foreign exchange and the safeguarding of balance of payments;

The prevention of injury to the economy of the country by the uncontrolled import or export of gold or
silver;

The prevention of surplus of any agricultural product or the product of fisheries;

The maintenance of standards for the classification, grading or marketing of goods in international trade;

The establishment of any industry;

The prevention of serious injury to domestic production of goods of any description;

The protection of human, animal or plant life or health;

The protection of national treasures of artistic, historic or archaeological value;

The conservation of exhaustible natural resources;

The protection of patents, trade marks and copyrights;

The prevention of deceptive practices;

The carrying on of foreign trade in any goods by the State, or by a Corporation owned or controlled by
the State to the exclusion, complete or partial, of citizens of India;

The fulfilment of obligations under the Charter of the United Nations for the maintenance of
international peace and security;

The implementation of any treaty, agreement or convention with any country;

The compliance of imported goods with any laws which are applicable to similar goods produced or
manufactured in India

Merits of Custom duty

1. Source of revenue: Custom duty is an important source of revenue for the government. The
revenue generated from custom duty can be used for the development of the country.

2. Protection of domestic industries: Custom duty helps in protecting the domestic industries from
the competition of foreign industries. It makes the imported goods expensive and gives a
competitive edge to the domestic industries.

3. Control of imports: Custom duty is an effective tool for controlling the imports of goods. It helps
in regulating the flow of goods in the country.
 4. Encourages local production: Custom duty encourages local production by making imported
goods expensive. It promotes the growth of domestic industries and reduces dependence on
foreign goods.

5. Employment generation: Custom duty helps in generating employment opportunities in the

country. It promotes the growth of domestic industries, which in turn creates job opportunities.

Demerits of Custom duty

1. Increase in prices: Custom duty increases the prices of imported goods, which makes them
expensive for the consumers. It can lead to inflation and affect the purchasing power of the
consumers.

2. Smuggling: Custom duty can lead to increased smuggling of goods, as people try to avoid paying
the duty. This can lead to a loss of revenue for the government and affect the domestic
industries.

3. Trade barriers: Custom duty can act as a trade barrier and restrict the free flow of goods. It can
lead to trade disputes between countries and affect the international relations.

4. Dependence on domestic industries: Custom duty can lead to dependence on domestic

industries, which may not be able to meet the demand for certain goods. This can lead to
shortages and affect the availability of goods in the country.

5. Unfair competition: Custom duty can lead to unfair competition between domestic and foreign
industries. It can give an advantage to the domestic industries, which may not be able to
compete on a level playing field

Notified goods

Notified goods means goods specified in the notification issued under section 11B. Power of Central
Government to notify , having regard to the magnitude of the illegal import of goods of any class or
description, the Central Government is satisfied that it is expedient in the public interest to take special
measures for the purpose of checking the illegal import, circulation or disposal of such goods, or
facilitating the detection of such goods, it may, by notification in the Official Gazette, specify goods of
such class or description. 11C. Persons possessing notified goods to intimate the place of storage etc

Notified goods means coffee, rubber, cardamom, pepper, arecanut, other than tender arecanut, cashew,
iron and steel, cement, timber, plywood, glass, tread rubber and any other goods notified by the
Government from time to time.

Specified goods.

If duties are based on the value of goods, then they are called ad valorem duties, while quantity/weight-
based duties are called specific duties. Compound duties on goods are a combination of value as well as
various other factors.

Who is the person not liable for registration under

GST?
Section 23 of the CGST act 2017 provides the detailed list of persons not liable for GST
registration. As per the said section the following are the persons not liable for
registration under GST:

1. Person engaged exclusively in supplying goods or services or both not liable to tax.
2. Person engaged exclusively in supplying goods or services or both exempt from tax.
3. Agriculturist engaged in supply of produce cultivated out of land.
4. Any other person as may be notified by the government.

Till date the government has notified the following persons who are not liable
for registration under GST:
1.Person making interstate supply of service and having an aggregate turnover not exceeding
Rs. 20 Lakhs on all India basis (Rs. 10 lakhs in case of Mizoram, Nagaland, Manipur and Tripura).

2.Person making interstate supply of goods and having an aggregate turnover not exceeding
Rs. 40 Lakhs on all India basis (Rs. 20 lakhs in case of Mizoram, Nagaland, Manipur and Tripura).

3.Persons who are engaged in making supplies of taxable goods or services or both, the total
tax on which is liable to be paid on reverse charge basis by the recipient of such goods or
services or both as per section 9(3) of the CGST act, 2017.

4 Persons making interstate supply of notified handicraft goods and having turnover not
exceeding Rs. 20 Lakhs on all India basis (Rs. 10 lakhs in case of Mizoram, Nagaland, Manipur
and Tripura).

5. Casual taxable person making interstate taxable supply of handicraft goods and other
notified handicraft goods not exceeding Rs. 20 Lakhs on all India basis (Rs. 10 lakhs in case of
Mizoram, Nagaland, Manipur and Tripura).
6. Job workers engaged in interstate supply of services to a registered person except person
who is liable to get registered as per section 22 of the CGST act, 2017 i.e. he is liable for
registration after the threshold limit is crossed.

7.Person supplying goods through e commerce operator and whose aggregate turnover does
not exceed Rs. 20 lakhs (Rs. 10 lakhs in case of special category states of Mizoram, Tripura,
Manipur and Nagaland.

Mention the items included in Value of supply or

Transactional value under GST
1.Any taxes, duties, cess, fees, and charges levied under any act, except GST. GST
Compensation Cess will be excluded if charged separately by the supplier.

2.Any amount that the supplier is liable to pay which has been incurred by the recipient.

3.The value will include all incidental expenses in relation to sale such as packing, commission
etc.

4. Any Subsidies Except the government subsidies will be included.

5.Late fee/Penalty/ Interest for delayed payment

Mention the items not included in Value of supply or Transactional value

1.Discounts before or at the time of supply – The amounts of discounts given before or at the time of
supply are allowed to be deducted only when proper invoices have been made of such supplies. For
example – XYZ Ltd. Gives a discount of 15% on a carton of perfumes of the amount Rs. 10,000. Here, the
taxable amount of value of supply shall be Rs. 8500 because the discount amount was known at the time
of supply and shown in the invoice properly.

2.Discounts after supply – The amount of discounts given after supply is not allowed to be
deducted.

Manner of distribution of ITC by Input service distributor

The CGST Rules, 2017 prescribes the procedural conditions to be complied with by ISD, the
Manner and Quantum of Input tax credit ( ITC ) to be distributed by Input Service Distributor to
the eligible recipients, the invoice to be issued, return to be filed by ISD and how to deal with
ITC on the credit and debit notes issued to the ISD.