(Gdriveitbot) CA Final GST Smart Summary Notes For Nov 23 May 24 & Onwards Compressed

CA/CS/CMA FINAL IDT SMART SUMMARY BOOK 1
CA/CS/CMA
FINAL
IDT SMART
SUMMARY BOOK
Relevant for Nov 23/May 24
BY CA SHIVAM NAGPAL
+91 7015451014
SHIVAM NAGPAL CLASSES
www.shivamnagpalclasses.com
PART A: GST
Copyright © 2023 CA shivam Nagpal
WWW.SHIVAMNAGPALCLASSES.COM CONT. 7015451014 CA SHIVAM NAGPAL

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Important Instructions
before we read this book...
• This book covers CA/CS/CMA Final IDT Summary relevant for Nov-23 & May-24
Attempt.
SPECIAL FEATURES:
• Content and language of this book has been picked from Institute’s material.
• Short & concise explanation to memorise.
• Memory technique.
• No Need to Refer Sperate Question bank (ALL Q MARKED)
• Keywords are highlighted
• Examples to Understand
• Arranged in Best Manner to Understand
• Charts & Diagrams & Picture for Visualisation
• Fully Exam Oriented
IN CLASS TEACH IN PRACTICAL WAY THROUGH:

• PPT
• GST PORTAL
• REAL LIFE EXAMPLES
• ANIMATIONS
IT WILL HELP TO UNDERSTAND & MEMORISE EASILY & YOU ENJOY LEARNING.
Watch free revision video on YouTube...
CLICK HERE

PARTA: GST
INDEX
Sr. No. Particulars Page No.
1 Introduction 5
2 Supply 15
3 Charge of GST & RCM 29
4 Composition Scheme 38
5 Time of supply 41
6 Value of supply 44
7 Exemptions 52
8 Registration 67
9 Input Tax Credit 80
10 Payment of Tax 96
11 TDS & TCS under GST 101
12 Return under GST 105
13 Tax Invoice 113
14 Account & records 120
15 E-way Bill 122
16 Place of supply 127
17 Job work 134
18 Assessment & audit 136
19 Inspection search & seizure 140
20 Demand & recovery 143
21 Offence & penalty 147
22 Appeal & revision 152
23 Advance ruling 157
24 Liability in certain cases 159
25 Miscellaneous provisions 161
26 Import + export + refund under GST 164

CHAPTER: 1 INTRODUCTION
In India Tax was introduced in 1860, by Sir James Wilson in order to meet losses sustained by Government on
account of Military Mutiny (War) of 1857.
1. TAX
• Tax is nothing but money that people have to pay to the Government, which is
used to provide public services. (compulsory payment)
• Taxes are broadly classified into Direct & Indirect Taxes.
Difference between direct taxes and indirect taxes
Direct Taxes Indirect Taxes

1) Payer of tax directly paid to Government 1) Payer of tax paid tax to the Government collects same
from ultimate customer
2) Person bears incidence of tax. 2) Shifting burden of tax.
3) Progressive nature. 3) Regressive nature.
4) Example: Income tax 4) Example: Goods & Services Tax (GST), Custom Duty
2. Features of indirect taxes [Govt, Busi. & Society]
1. An important source of revenue: Indirect taxes contribute more than 50% of total tax revenues.
2. Wider tax base: Unlike direct taxes, the indirect taxes have a wide tax base
3. Tax on commodities and services: It is levied on commodities at time of manufacture/ purchase/sale.
4. Shifting of burden: GST paid by supplier of goods is recovered from buyer.
5. Promotes social welfare: High taxes are imposed on consumption of harmful products such as
alcoholic products, tobacco products etc.
6. Regressive in nature: Generally, same for everyone.
3. Position before GSTs
GST was introduced in 2017 with aim to consolidate & simplify indirect taxes into one simple tax i.e. GST
(One nation One tax)
Earlier there were many indirect taxes such as Excise duty (levied on manufacturing), Value added tax
(VAT on intra state sale), Central sales tax (CST on interstate sale), service tax (on supply of services),
entertainment tax, etc.
*Intra state supply means supply within same state
*Interstate supply means from one state to another

Let us understand the position before GST with the help of an example:
Mr. A manufactured component of Air conditioner @ cost of 5000, added 1000 as his profits, total 6000.
Now wants to sell the same to Mr. B – so on manufacturing, excise duty was payable @12.5% and on sale
VAT or CST was levied.
Particulars Amount (INR)

Assessable value (cost + profit) 6000
Excise duty payable to central govt. 750
@12.5%
Sale price 6750

VAT @ 5% 338
Invoice Amount 7088
Note: - That first excise duty is levied & then on whole amount VAT is charged that means VAT is charged on
Assessable value & on excise duty (tax on tax), this lead to double taxation.
4. Need for GST in India or deficiencies in existing indirect tax laws [CM OD(AUDI)]
1. Cascading effect of tax i.e. VAT charged on excise (tax on tax)

2. Multiple taxes to be paid as VAT, service tax, luxury tax, entertainment tax etc were not integrated.
3. CENVAT (central levy) & (state levy) VAT were essentially value added taxes, set off of one against
another not possible.
4. Distinction between goods & services is blurred. Certain transaction subject to double taxation i.e.
Software, restaurant.
5. Taxes to be subsumed in GST (SMQ)

Mainly there are 17 types of major Taxes subsumed in GST.
Central levies: [3 Central, 2 Additional & 1 Service]

• Central Excise Duty
• Additional Duties of excise (Goods of Special Importance)
• Additional Duties of Custom
• Service Tax
• Central Sales Taxes
• Central Surcharges and Cesses
State levies: [2 State, 2L, 1 Advertisement & Entertainment]

• State Value Added Tax/Sales Taxes
• Luxury Tax
• Taxes on Advertisement
• Tax on Lottery, Betting & Gambling
• Entertainment tax (Except those levied by local bodies)
• State surcharges and cesses.

6. Principles that were borne in mind while subsuming various central, state and local levies, under GST [NTRF]
[NTRF]
1. Taxes or levies to be subsumed should be primarily in Nature of indirect taxes.
2. Taxes or levies to be subsumed should be part of Transaction chain.
3. subsuming of taxes should result in Free flow of tax credit in intra & inter-State levels.
4. Revenue fairness for both Union & States individually would need to be attempted.
7. Genesis of GST in India
• France was first country to implement GST in year 1954
• ABOUT 160 countries across world have adopted GST
• In year 2000, Prime Minister PUT concept of GST & set

up a committee to design Goods and Services Tax (GST)
model for country
• The Union Finance Minister, Shri P. Chidambaram, while presenting Central Budget (2007-2008),
announced that GST would be introduced from April 1, 2010.
• The GST introduction gained momentum in year 2014 when NDA Government tabled the Constitution
(122nd Amendment) Bill, 2014.
• The Lok Sabha passed Bill on 6th May, 2015 & Rajya Sabha on 3rd August, 2016.
• Subsequently, assent of President received on 8th September, 2016 and Constitution (101st
Amendment) Act, 2016 on 8th September, 2016
• Finally, GST introduced in India on 1st July 2017.
8. What is GST/ concept of GST: [V3C]
WHAT IS GST?
Goods and services tax means a tax on supply of goods/services/both, except taxes on supply of alcoholic
liquor for human consumption.
• GST is a value added tax
• continuous chain of tax credit.
• burden borne by final consumer.
• eliminate cascading effect of tax.
GST is a destination-based tax on consumption of goods & service. tax will be accrue to place of consumption
State / UT

EXAMPLE: intra state sell i.e. Haryana
How GST Works (‘No Tax on Tax’ in GST)

Particulars Manufacturer Wholesaler Retailer
Purchase 100.00 110.00 120.00
Profit 10.00 10.00 10.00
Consideration 110.00 120.00 130.00
Add CGST@ 9%
SGST@ 9% 9.90 (110*9%) 10.80 (120*9%) 11.70 (130*9%)
9.90 (110*9%) 10.80 (120*9%) 11.70 (130*9%)
Invoice Value 129.80 141.60 153.40
Output Tax Payable {A} 19.80 21.60 23.40
Input Tax {B} 0.00 19.80 21.60
Net Tax Payable{A-B} 19.80 1.80 1.80
9. Benefits of GST (SMQ)
GST is a win-win situation for entire country:

1. Creation of unified national market: GST aims to make India a common market with common tax rates &
procedures.
2. Boost to ‘Make in India' initiative: by making goods and services at competitive in national market.
3. Ease of doing business: The uniformity in laws, procedures & tax rates across country makes doing
business easier.
4. Reduction in compliance costs: variety of tax records is not needed.
5. Mitigation of ill effects of cascading: By subsuming most of the Central and State taxes into a single tax.
6. Benefits to small traders and entrepreneurs: GST has increased threshold for GST registration for small
businesses.
10. GST is a simplified tax structure

• GST is simplified tax structure.
• Simpler tax regime with fewer exemptions along with reduction in multiplicity of taxes.
• The uniformity in laws, procedures and tax rates across country makes doing business easier.
• Common system of classification of goods & services across country ensures certainty in tax administration
11. Framework of GST as introduced in India
1) Dual GST: (SMQ)

• India has adopted a dual GST which is imposed by Centre and States,
i.e. Centre & States simultaneously tax goods & services.
• Now, Centre has power to tax intra-State sales in addition to services &
States are empowered to tax services in addition to goods.
• GST extends to whole of India.
2) CGST/SGST/UTGST/IGST:
a) Central Goods and Service Tax (CGST) – levied & collected by Central Government,
b) State Goods and Service Tax (SGST) - levied & collected by State Governments/Union Territories with
State Legislatures
c) Union Territory Goods and Service Tax (UTGST) - levied & collected by Union Territories without
State Legislatures, on intra- State supplies of taxable goods/services.
d) Inter-State supplies of taxable goods and/or services are subject to Integrated Goods and Service Tax
(IGST).

e) IGST is approximately the sum total of CGST and SGST/UTGST & is levied by Centre on all inter-State
supplies.
Body of GST Law:
• Central Goods & Services Tax Act, 2017
Acts • Integrated Goods & Services Tax Act, 2017
• Union Territory Goods & Services Tax Act, 2017
• State Goods & Services Tax Acts 2017
• Goods & Services Tax (Compensation to States) Act, 2017
• CG has power to issue rules.
Rules • It is for proper & effective implementation of law.
• It is issued by SG & CG.

Notifications • Mostly It is related to procedure or exemption from tax (for changes in rules).
• It is issued by CBIC
Circulars • It is issued as direction or instruction in area where law is ambiguous or have lack of
clarity.
States & UT’s for GST Purpose
28 states + 5 UT’s without

3 UT’s with legislature legislature (ALL DC)
• Delhi A - Andaman & Nicobar

• J&K L - Lakshadweep
• Puducherry L - Ladakh
D - Dadra & Nagar Haveli and
daman & diu
C - Chandigarh
CGST + SGST
CGST+UTGST
3) Registrations:
Every supplier of goods/service is required to obtain registration in State/UT from where he makes
taxable supply if his aggregate turnover exceeds specified limit (10/20/40 Lakhs) during FY.
4) Composition Scheme:
For providing relief to small businesses making intra-State supplies, a simpler method of paying taxes &
accounting thereof is also prescribed, known as Composition Levy, if turnover does not exceed specified
limits (150/ 75 Lakhs)
5) Exemptions:
The law also contains provisions for granting exemption from payment of tax on essential goods/
services.
6) Seamless flow of credit:

IGST Credit available for CGST, SGST, UTGST. CGST, SGST, UTGST
Credit available for IGST.

7) Manner of utilization of ITC:
IN WHICH ORDER TO ADJUST INPUT TAX CREDIT
SGST payable CGST payable IGST payable
(2) IGST credit (2) IGST credit (1) IGST credit

(4) SGST credit (3) CGST credit (5) CGST credit
(6) SGST credit
1) Firstly, IGST credit needs to be utilized completely +

2) ITC of IGST should be first used for payment of IGST then can be used for payment of SGST or CGST as
per wish +
3) SGST/UTGST credit can be used to adjust IGST liability only when CGST credit has been fully utilized
This means SGST credit cannot be used pay CGST & CGST credit cannot be used to pay SGST.
8) GST Common Portal:(SMQ)

• Common GST Electronic Portal –https://www.gst.gov.in– a website managed by Goods & Services
Network (GSTN).
• The GST portal is accessible over internet (by tax
payers & their CAs/ Tax Advocates) & Intranet by Tax
Officials etc.
• The portal is one single common portal for all GST
related services.
9) Goods and Services Network (GSTN):

A non-government private limited company [incorporated under provisions of section 8 of Companies Act,
2013] has been set by Government to establish a uniform interface for tax payer & a common and shared
IT infrastructure between Centre & States.
The functions of the GSTN include: [CM 2 PF] MTP-2018

• Facilitating Registration
• Forwarding returns to Central & State authorities
• Computation & settlement of IGST
• Matching of tax payment details with banking network
• Providing various MIS reports to Central & State Govt
• Providing analysis of taxpayers' profile.
10) GSPs/ ASPs:

• GSTN has selected certain IT enabled Services & financial technology companies, to be called GST
Suvidha Providers (GSPs).
• GSPs develop applications to be used by taxpayers for interacting with GSTN.
• GSPs facilitate tax-payers in uploading invoices as well as filing of returns & act as single stop shop for
GST related services.
• GSPs may take help of Application Service Providers (ASPs) who act as a link between taxpayers and
GSPs.

GST N GSP’S TAXPAYERS

(GST Suvidha Providers)
ASP’S
(Application Suvidha Provider)
11) Compensation Cess:

• GST Compensation Cess is levied to compensate loss incurred by states/UT on implementation of
GST.
• It shall be levied for period of 5 years from date of implementation of GST & can be extended for
further period, as decided by GST Council.
• Therefore, levy of GST Compensation Cess expired on 1.7.2022 (i.e., 1.7.2017 + 5 years)
• However, with effect from 01.07.2022, the period for levy and collection of Compensation Cess has
been extended up to 31st March 2026.
Need for Constitutional

12. Constitution [101st amendment] act, 2016
Amendment??(SMQ)
To Enable Integration of various taxes in GST
It was enacted on 8th September, 2016, with Next & to empower both centre and state to levy
significant amendments: & collect it.
No tax can be levied without authority of law

Seventh Schedule to Article 246: (SMQ) (ICAI Nov 2018 – 2 Marks]
It contains three lists which enumerate matters under which Union & State Governments have authority to
make laws
LIST-I LIST-II LIST-III

UNION LIST STATE LIST CONCURRENT LIST
It contains matters in respect of which It contains matters i n It contains matters i n respect
Parliament ( Central Govt.) has respect of which State Govt. o f w h i c h b o t h Central &
exclusive right to make laws. has exclusive right to make State Govt. have power to make
i.e. income tax, railway, other. laws. i.e. police laws. i.e. education
Article 246A: Concurrent powers to both, Parliament and State Legislatures is given to make laws with respect
to GST
Except: parliament has exclusive power with respect to interstate supply
Article 269A: GST on inter-State trade/commerce shall be levied & collected by Government of India & such
tax shall be apportioned between Union & States in manner as may be provided by Parliament by law on
recommendations of the GST Council.
Article 366(12A): GST will be levied on all supply of goods & services except alcoholic liquor for human
consumption.

Article 279A (5): (SMQ) (MCQ)
TAXES NOT SUBSUMED IN GST

1. Alcoholic Liquor for Human Consumption Outside GST (power to tax remain with states)
State Excise + VAT / CST
(Intra) (Inter)
2. 5 PETROLIUM PRODUCTS (DP MAN) GST Council to decide the date from which GST will be
• High Speed Diesel applicable
• Petroleum Crude Central Excise + VAT / CST
• Motor Spirit
• Aviation turbine Fuel (ATF) (Intra) (Inter)
• Natural Gas
3. ENTERTAINMENT TAX Power Still Remain with Local Bodies

(By Local Bodies)
4. TOBACCO
Central Excise + GST
5. OPIUM, INDIAN HUMP, OTHER NARCOTICS
State Excise + GST
6. REAL ESTATE SECTOR & ELECTRICITY duty Out of GST

(SALE & PURCHASE OF
IMMOVABLE PROPERTY)
(Stamp Duty, Property Tax)

13. GST Council (imp.)
ARTICLE 279A: GST COUNCIL
President Constitute the Council (33 MEMBERS)

Chairperson: Union Finance Minister
2 MEMBERS 31 MEMBERS
(Union) (Minister in Charge of Finance Or
Taxation or Any Other Minister
Nominated by Each State)
1. CHAIR PERSON
2. UNION MINISTER OF STATE
IN CHARGE OF REVENUE & FINANCE CHOOSE VICE-PRESIDENT AMONG
THEMSELF
• For Quorum: Half (i.e. 17) Members

• Decision: Majority not less than 3/4th (75%) of members present & voting
• Weights: 1/3rd (33%) Centre No decision unless CG Assents.

2/3rd (67%) state
i.e.
• 2 members of union & 31 member of state present & voting
• Mater put in council
• 2 union say no
• & 31 members of state say yes
STATE:31/31×67% = 67% It means no decision until assent of

UNION:0/2×33%=0% union i.e. 2 votes 33% value rkhte h
Functions of the GST Council

GST Council is to make recommendations to Central Government & State Governments on
1. Tax rates to be applied
2. Goods & services to be Exempted
3. Threshold limits for registration
4. Dispute resolution
5. GST legislations including rules & notifications etc.
6. GST on HP MAN
STUDENT NOTE

14. LIST THE SPECIAL CATEGORY STATES AS PRESCRIBED IN CONSTITUTION OF INDIA:

(SMQ)
THERE ARE 11 SPECIAL CATEGORY STATES
MT NAGMANI USA JAM in HIMACHAL
• Mizoram • Uttarakhand,
• Tripura • Sikkim
• Nagaland • Arunachal Pradesh
• Manipur • J&K
• Assam
• Meghalaya
• Himachal Pradesh
STUDENT NOTE

CHAPTER: 2 SUPPLY
Taxable event: Supply + Composite / mixed supply
(SMQ) Sec.7 of CGST Act, 2017 Sec.8 of CGST Act, 2017
• Schedule I = Activity: treated as supply even if made without Consideration

• Schedule II = Activity or transactions treated as “SOG” or “SOS”
• Schedule III = Negative list of GST (not liable to GST)
SOME IMPORTANT TERMS:
1. GOODS & SERVICES
Goods Services
• ANY movable property • Anything other than goods
• Actionable claim • Use of money
• Growing crops, grass and things
• Conversion of Money
attached to land
EXCLUDE
Money and Securities
Actionable claim means: i.e. Lottery, betting and gambling, secured debt, insurance.
2. CONSIDERATION
Money
• Any payment in Against supply of goods/services
Other
than money
(act or forbearance)
Paid by recipient/3rd person

Not include subsidy given CG/SG
Note: Deposit to be considered as payment only when applied as consideration for said supply.

3. BUSINESS
Include:
• Trade/commerce/manufacture/profession/vocation
• Facility by club to its members
• Admission to any premises (zoo, movie hall etc.)
• Race club, book maker etc
• Any other business activity for profit/not for profit
4. RELATED PERSON PET FB DP

• partner/officer/directors
• employer & employee *Related
• together they control a third person*
• direct/indirect control/share > 25%
• principle agent
• Both of them controlled by a third person* Related*
• same family members
Spouse/Children Parents/Grand Parents/Bro/Sis.

ALWAYS IF DEPENDENT UPON YOU
5. DISTINCT PERSON(SMQ)
Whether Same State/Ut
Separate
Registration Distinct persons
Or Different States/Ut’s
E.g. 1. Stock transfer from Gurgaon to Rohtak branch under same registration – Not Distinct person
2. If Gurgaon and Rohtak were separately registered even though same state – Distinct person
6. ESTABLISHMENT OF DISTINCT PERSONS
One Registered These establishment are Another Establishment

Establishment establishment of distinct person in Different State/Ut
In A State/Ut (not necessarily registered)
E.g. A registered restaurant in Haryana & an unregistered liquor shop in Mumbai.

Sec 7: Scope of supply
SEC 7 (1) SUPPLY INCLUDE
If for a consideration Without consideration
Sec 7(1)(a) Sec 7(1)(c) Activities specified in schedule I (SMQ)

All forms of supply of goods or services or both [TRAI]
- such as sale, transfer, barter, exchange, license, 1. Permanent transfer or disposal of business
rental, lease or disposal * asset.
- made/agreed to be made by a person(advance) (input tax credit has been availed on such assets)
- in the course or furtherance of business
E.g.
(a)Holding company Asset transfer for nil subsidiary company
Sec 7(1)(b) Import of services Consideration
• Personal (b) Dhruv gives old laptops being used in his business to his
or friend free of cost. This will qualify as supply If ITC has been
• business purpose availed by Dhruv on such laptops.
Sec 7(1) (aa)

Activities or transactions 2. Supply between related person/distinct persons
(only if business purpose) (SMQ)
By a person to its members E.g. Stock transfer between branches: supply even
(other than an individual) /constituents without consideration
Exception:
For: cash, deferred payment or other valuable Employer Employee
consideration. Gift up to Rs 50000
(per employee per year)
Expln: person & its constituents treated as sperate
person. Note: Incentive not gift i.e. production /sales bonus
E.g. (SMQ)
Tenants of a society form a club & club procure
beverage items & provide to members when 3. Supply of goods (only goods not service)
required on sale basis
So, any goods supplied by club to its members a) by a principal to his agent where agent
Considered as supply of goods undertakes to supply such goods on behalf of
principal; or (agent issuing his own invoice)
* (Examples) b) by an agent to his principal where agent
• Sale (A laptop dealer sells laptop to ram) undertakes to receive such goods on behalf of
principal (agent issuing his own invoice)
• Transfer (hire purchase)
• Disposal (sale of old machine) 4. Import of services from (SMQ)
• Barter (goods k badle me goods)
• Exchange (goods + money for goods or goods related person/Oun establishment
+money)
in the course or furtherance of business
• License (software license)
(business purpose)
• Lease (machine given on finance/operating lease)
• Rental (bike is given on rent)

Clarification regarding import of services Goods
With Consideration Without Consideration
Business personal Business other cases
SUPPLY SUPPLY Related/Distinct NOT SUPPLY

Person
SUPPLY
EXAMPLES FOR PRACTICE:
1. A doctor got his hair cut from a barber and provides him medical consultancy in return
- It is supply under 7(1)(a) (BARTER)
2. Salman khan received interior design service for residential house from japan for yen 5000
- It is supply under 7(1)(b) (personal + consideration)
3. Papu & co. received legal service from Dubai for $200
- It is supply under 7(1)(b) (business + consideration)
4. Rahul obtained consultancy service from his son staying in Canada for his office purpose without any
consideration
- It is supply under 7(1)(c) (business + related + no consideration)
5. Shivam Nagpal & co. chartered accountant donated its old laptop in charity to CA students (ITC Taken)
- It is supply under 7(1)(c) (business asset transfer+ ITC taken + no consideration)
6. Modi pvt. Ltd. Sold old car for 2 lakhs

- It is supply under 7(1)(a) (furtherance of business + consideration)
7. Jetha gifted a mobile worth Rs 50000 to Daya

- No consideration, no supply (related person but not for business purpose hence not covered under
schedule I)
8. Jetha gifted a mobile worth Rs 60000 to bagha

- It is supply under 7(1)(c) (as gift to employee & value > 50000 GST applicable on entire Rs 60000)

Schedule II: Determining supply of goods or service
1. Transfer of goods: (SMQ)
a. Title in goods: supply of goods

Transfer of b. Title in goods at a future date: supply of goods (hire purchase)
c. Right in goods: supply of services
2. Transfer of business assets:

a. Permanent transfer/disposal: supply of goods
b. Temporary transfer or private use: supply of services
c. On closure of business/
Business cease to be taxable person: supply of goods
Exception:
• Transfer as a going concern
• business carried on by representative
3. Land and Building:

a. Any lease, tenancy, letting out: supply of services
b. Renting of immovable property: supply of services
c. Construction of building, civil structure: supply of service
* consideration should be received “before”

- issuance of completion certificate w.e.is
- 1st occupation earlier
Note: Here “before” word is important as “after” would treated as sale of land & building
Which is outside scope of GST
E.g.: Construction Service (flat value 80 lakh)
) Before completion After completion Taxable value for

1. 2. 3. GST= Rs 80 Lacs
40,00,000 20,00,000 20,00,000
) Taxable value for

1. 2. GST= Rs 80 Lacs
Rs 1 79,99,999
) After completion Not Taxable

1. As per sch- III
80,00,000
4. Software:
a. Customized software (or licence): supply of services
b. Readymade software: supply of goods
5. Intangible Property:
a. Permanent transfer: supply of goods
b. Temporary transfer: supply of services
i.e. patents
6. Always Supply of Services:
a. Restaurant/ catering: supply of service
b. Work contract: supply of service
c. Job work: supply of service (SMQ)
Job work means: Any treatment or process applied to another person’s goods.
d. Agreeing to obligation to refrain from an act or to tolerate an act or to do an act: supply of service
(SMQ) e.g. Non-compete agreement
Schedule III: Negative list (not treated as supply - no GST)

[ECG LAB HWN]
1. Services under employer -employee relationship.
Include exclude
a) Premature termination a) contractual basis
b) Wages to casual worker b) non-compete fees
c) Salary to director c) salary to director
[if TDS u/s192] [if TDS other than 192]
Clarification
Perquisites provided by employer to employee: if
a) in terms of contract then not be treated as supply under Schedule III
b) Not in terms of contract then value more than 50000 is taxable under schedule I
i.e. company car, medical facility, rent free home
2. Services by any Court (SC, HC, DC) /Tribunal.

Note: consumer dispute redressal commission also deemed as tribunal
3. Services by Govt.
• MP/MLA/Member of local authority
• Duties on constitutional post
• Chairperson/member/director of body established by govt. (not deemed employee)
4. Sale of land and building [except: Schedule II]
Clarification: sale of land after levelling, laying down of drainage line/water line/electricity is considered as sale
of land only & no supply
5. Actionable claims other than lottery, betting and gambling.

6. Services of funeral, burial, crematorium or mortuary including transportation of the deceased.
7. High sea sale (SMQ, MTP N21)
8. Supply of Warehouse goods before home consumption

9. Supply of goods (SMQ)

Non-Taxable territory to Non-Taxable territory
Without entering into INDIA
**Govt may notify on recommendations of Council, certain activities undertaken by the Central Government,
a State Government or any Local Authority as neither supply of goods nor services
Activities in article 243G(panchayat) & 243W(municipality)

Two activities
Notified up to now
Grant of alcoholic liquor license by state govt (SMQ)
Circular & clarifications (imp.)
1. Donation received by charitable institutions from individual donors without quid pro quo. (SMQ)
i.e. nothing is to be done by done in return
If all below conditions satisfied then – no supply otherwise supply
Gift/donation payment in terms of purpose is philanthropic

To charitable institution gift/donation & not advertisement
(no commercial gain)
*Merely displaying name plate for gratitude is no consideration, no GST.
2. Art work send by artist to galleries for exhibition

• Till it’s not sold No consideration No supply
• Sold from exhibition supply GST payable
3. Clarity on course or furtherance of business

GST is essentially a tax on commercial transactions
• Selling personal car after use

Not Supply
• Selling old jewellery after use
• A famous actor paints painting Supply

& sell them & donate the earning
*donating the earning will have no impact

4. Tenancy right taxability (Pagdi system) (SMQ)
Tenancy right Tenancy right
Rent + Tenancy premium Tenancy Premium

Owner Tenant Tenant
A B
RIGHT TO RENT
FURTHER
Transfer of tenancy right against premium: supply of service

*However, rent on residential dwelling is exempt
5. Sale promotion scheme: (SMQ)
- Free Samples and Gifts: No Consideration, No Supply

Except: Schedule I
i.e. Pharmaceutical companies which provide drug samples to their stockiest, dealers, medical practitioners, etc.
Without charging any consideration.
- Buy One Get One Free Offer: This is not without consideration as two or more goods supplied at a single price
Apply provisions of composite & mixed supply.
6. Principal-agent-relationship
Clarification: -
(1) Supply by Principal to Agent, where Agent shall issue, for further supply
• Invoice in his name: - Agent shall be covered under, Schedule I
• Invoice in the name of Principal: - Agent shall not be covered under, Schedule I
(2) Supply by Agent to Principal, where goods being procured by Agent on behalf of Principal
• Invoice in his name: - Agent shall be covered under, Schedule I
• Invoice in the name of Principal: - Agent shall not be covered under, Schedule I
7. Perquisites provided in terms of contractual agreement to employee
NOT liable to GST [schedule III]

E.g. Rent-free accommodation, company car, medical facility

8. Del credere agent (DCA)
• A selling agent engaged by principle to assist in supply of goods/ service by contracting potential buyers on
behalf of principal
• DCA for guarantee timely payment to principal
• DCA provide various loans to buyers & paying to supplier himself and recover amount from buyer after some
time with interest.
So How Interest Is Treated in This Case??
Invoice of Original Supply in Whose Name??
PRINCIPLE AGENT
loan given by agent is an independent Interest on loan will form part of value
supply & thus outside of original goods supplied & not
preview of GST considered as sperate supply
9. Inter-State movement of various modes of conveyance (SMQ)

Inter-State movement of various modes of conveyance, between distinct persons including-
• Trains,
• Buses,
• Trucks,
• Tankers,
• Trailers,
• Vessels,
• Containers,
• Aircrafts,
1. Conveyance carrying goods/ passenger/ both: - Treated neither as SOG/SOS, No IGST.

2. Conveyance for repair & maintenance: - Treated neither as SOG/SOS, No IGST.
(On such Repair and maintenance charges: - GST payable)
3. Conveyance moved for further supply: - Treated as SOG/SOS, IGST shall be levied.
[Same treatment in case of interstate movement of rigs, tools and spares and all goods on wheels [like cranes].
10. Taxability of joint venture

▪ Cash calls in terms of capital contribution transaction in money not supply
▪ Cash call against service provided by operating members supply
11.
Moulds and dies owned free component
by Original Equipment Manufacturers of cost manufacturer
• Not supply as no consideration involved also both aren’t Related/distinct persons

12. Cost/profit petroleum taxability
Licence to explore crude/gases
Royalty + share of profit petroleum

Govt. contractor
GST
applicable
Total Sale xxx

- cost petroleum (xx)
(exploration cost
& royalty)
Profit petroleum xxx
Govt. Contractor
Exempt
13. Special circumstances related to goods & services
a) Transaction in money (loan/advance) No supply

b) Issuance of letter of credit/bank guarantee No supply
c) Issuance of certificate of deposit/commercial paper No supply
d) Activities related to above products (SMQ) Supply
e) [i.e. fee/brokerage/transfer fee etc.]
f) Future/forward (with delivery) Supply
g) Future/forward (without delivery) (SMQ) No Supply
h) Interest & discount Supply but exempt
i) Facilitation & Arranging Transaction in Securities Supply
14. Security lending scheme (SMQ)
Securities Securities
Lender clearing agent Borrower
Lending fees RSE Lending fees
Commission/fee Taxable
Taxable
15. Priority sector lending scheme
• PSLC not security It is Goods – Interstate (IGST always)

(taxable @12%)

Sec 8: Composite and mixed supplies
• When goods or/& service supplied in combination, each individual component may attract a different rate of tax
creating challenges for decision of rate of tax.
• GST law identify composite & mixed supplies and provide certainty in respect of tax treatment.
1. Composite or mixed supply? (SMQ)

Composite supply
Condition:
• two or more taxable supplies
• naturally bundled
• one of them is a principal supply
if all condition satisfies composite supply otherwise mixed supply.
2. Tax rates? (SMQ)
Composite supply Mixed supply
Tax rate applicable on Highest tax rate out of tax rate on

principle supply supplies involved
Principal Supply: predominant element in combination and other supply forming part of that composite
supply is ancillary.
Naturally bundled: whether combination made is bundled in ordinary course of business
Factors: 1. Normal business practice
2. Consumer perception
3. Ancillary service hep in better enjoyment of main service/goods
4. Normally advertised as package.
Example of composite supply:
1. television set with mandatory warranty: TV is principal supply; warranty is ancillary.
2. Stay in hotel with breakfast: stay in hotel is principal supply; breakfast is ancillary.
Example of mixed supply:
1. A package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drinks and fruit
juices when supplied for a single price is a mixed supply.
2. Face cream with nail paint.

Note:
EXTRA ANALYSIS:
Particulars Composite Mixed

Supply Supply
Naturally bundled Yes No
Supplied together Yes Yes
Other supplies are ancillary or they are received because of predominant Yes No
supply
All supplies can be goods Yes Yes
All supplies can be services Yes Yes
Some supplies can be goods & others can be services Yes Yes
Note: More than one supply made together & taxed at individual rates
• When both supplies carry independent significance
• Sperate consideration is indicated & charged against each supply
• Neither considers as composite nor mixed
Shall be charged @ respective applicable rate to particular supply
i.e. you buy Maggi, Kurkure, Pepsi, from a shop & shopkeeper make a single bill & show each item separately
Circular & clarifications
1. Printing services (SMQ)
Content Given by Recipient

Supplier Recipient
Paper & Printing Service
CASE 1. CASE 2.
Books, pamphlets, Envelopes, printed boxes,

brochures, annual tissues, napkins etc. Where
reports, where logo/design ancillary to supply
content is principal of physical input
Supply of Service Supply of Goods
2. Activity of bus body building
Determined on the basis of facts and circumstances of each case.

3. Retreading of tyres
Old Tyres Belong to Supplier Old Tyres Belong to Recipient
supply of goods supply of service
4. GST applicability on liquidated damages, compensation & penalty arising out of breach of contract/other
provisions of law
Expression “Agreeing to the obligation

to refrain from an act or to tolerate an Covered in
act or a situation, or to do an act” has schedule II &
three limbs considered as
supply of service
REFRAIN FROM AN ACT TOLERATE AN ACT TO DO AN ACT
e.g. e.g. e.g.

• non-compete • Shopkeeper allow • Industry agree to
agreement
There should be
hawker to operate install zero emission
• even after having for a monthly contract
equipment (no legal
permission builder payment (expressed/implied)
req.) against amt.
not building more • Society toleration paid by neighbours +
floor against loudspeaker for consideration
compensation from compensation
neighbours
Taxability of some transaction in this regard:

1) Liquidated damages:
compensation payable to aggrieved party for breach of contract
• Where amt. is paid only to compensate for injury/loss/damage suffered by aggrieved party, there is no
agreement by aggrieved, hence not taxable.
E.g.:
a) damages resulting from damage to property, negligence, piracy, unauthorized use of trade name, copyright
• If payment represents consideration for another independent contract, it constitutes a 'supply' &
taxable @principal supply rate
E.g.:
a) Security deposit forfeiture for cancelled package tour.
b) Early termination fee/penalty in lease contracts. (We are tolerating the early termination)
2) Cheque dishonour fine/penalty:

Not taxable, no contract (supplier wants to receive payment, there is no implied/expressed willingness
of supplier to earn from fine)
3) Penalty imposed for violation of laws:

Not taxable, no contract

i.e. traffic violations, pollution norms
4) Forfeiture of salary for pre-termination:

Not taxable (Imposed for discourage non-serious employees & also employee doesn’t get anything in
return)
5) Late payment surcharge or fee:

Late payment with interest/penalty/fee are ancillary supply naturally bundled with principal supply,
taxable rate of principal supply.
6) Fixed Capacity charges for Power:

minimum fixed amt. payable even if 0 units electricity consumed. Not taxable as electricity is exempt
from GST.
7) Cancellation charges:
Supplier of service like hotel accommodation, tour and travel, transportation, etc., normally provide
facility of cancellation. Taxable @ rate of principal supply.
8) Forfeiture of Earnest Money:

Forfeiture of earnest money in cases like breach of agreement to sell immovable property is not a
consideration for any supply & is not taxable.
5. Taxability of No Claim Bonus offered by Insurance companies
No-claim bonus (NCB) is discount in premium offered by insurance companies if

vehicle owner has not made a single claim during term of motor insurance policy.
The no-claim bonus is reward to vehicle owner for prudent use of vehicle.
• The customer buys insurance policy to indemnify himself from any loss, & not under any contractual
obligation not to claim insurance claim during any period covered under policy, in lieu of No Claim
Bonus.
• there is no supply provided by insured to insurance company in form of agreeing to obligation to refrain
from the act of lodging insurance claim
• No Claim Bonus cannot be considered as a consideration for it.
STUDENT NOTE

CHAPTER: 3 CHARGE OF GST & RCM
• Basis of Charge Is Taxable Event I.e. Occurrence of An Event Which Triggers Levy of Tax
• Taxable Event in GST Is Supply
• GST Extend to Whole of India
1. INDIA MEANS:
Land 1) territory of India as referred to in Article 1

of the Constitution
(state and the union territories)
2) >its territorial waters (12NM),
Water >seabed and sub-soil underlying such waters,
>continental shelf
>exclusive economic zone or
>any other maritime zone (200 NM)
Air 3) the air space above its territory & territorial waters
2. INTER & INTRA STATE SUPPLY MEANS:
Intra State Supply – Sec 8 of IGST Act, 2017 Inter State Supply – Sec 7 of IGST Act, 2017
Supply of goods/services shall be treated as Supply of goods/services shall be treated as
intrastate supply where location of interstate supply where location of
recipient & place of supply are in recipient & place of supply are in
a) Same state a) Two different states
b) Same union territory b) Two different union territory
c) A state and a union territory
Levy & collection [sec 9 of CGST act /sec 5 of IGST act]
9(1) 9(2) 9(3) 9(4) 9(5)

Normal GST on 5 petroleum RCM on notified RCM on supplies Electronic commerce
Levy products g/s/b by unregistered operator (ECO)
Supplier
To be levied from
Date notified by govt.
Recomm. By GST council

Sec 9(1): Normal levy
GST ON
Intra State Supply Inter State Supply
CGST/SGST/UTGST IGST
On Value as Per Sec 15
Collected and paid by taxable person
At rate notified by govt. Max 20%/40%
1. SUPLIER
• Means person supplying the said goods/service/both
• shall include an agent acting in his behalf
2. RECIPIENT OF GOODS & SERVICE

MEANS
Where Consideration Where No Consideration Shall Include Agent

Payable Payable Acting on Behalf of Recipient
Person Liable to Person to Whom Goods

Pay Consideration Delivered/Service Rendered
3. REVERSE CHARGE MACHANISAM(RCM)
• Normally supplier liable to collect & pay tax to govt.

• In RCM recipient is liable for same
(all the burden which was on supplier is on recipient in RCM for compliance & tax deposit)

4. TAXABLE PERSON
• Means a person who is registered or liable to registered u/s22 or sec u/s24
Forward Charge Sec 9(1) Person Making Supply

Reverse Charge Sec 9(3)/9(4) Recipient of Supply
E-Commerce Sec 9(5) E-Commerce Operator
Sec 9(3): Supply of service taxable under RCM

Note: RCM in case of goods not applicable for exam
SI. No Services Supplier Recipient
Transport and Motor vehicle Sector
1. Transport of goods BY (GTA) T0 Specified person

Goods Transport Agency » Regd. factory
Not Opted for FCM » Regd. Society
» Cooperative Society
» ANY Regd. person
» Body Corporate
» Regd./unregd.
Partnership Firm/AOP
» Casual Taxable Person
[CTP]
Located in taxable territory
[3RCB PC]
Note: However not applicable in case of service provided to
1. Unregistered individual customers Exempt
2. Dept./establishment of government
local authority Taken registration only for
Government agency TDS purpose
» TAX rate applicable in case of GTA
OPTED FOR FCM* OPTED FOR RCM

5%
12% 5% WITHOUT
ALONG WITH ITC
ITC
*Condition for opting FCM

• GTA has to take registration under GST
Note: Recipient should be person who is liable to pay freight. • issue tax invoice & make declaration
on such invoice about it

2. Services of renting BY Any Person other than T0 Any Body corporate

of motor vehicle a Body corporate in TT
(passenger)
cost of fuel is included

in the consideration
ANALYISIS
Provided by provided by other than

body corporate body corporate
FCM
Provided to body corporate provided to other
than body corporate
opted for opted for FCM

@12% @5%
FCM RCM
Clarification
Renting of motor vehicle designed to carry passenger – RCM
There is distinction
Between
Service of transportation of passenger – NO RCM
i.e. RCM apply when company hires a bus on rent for transportation of employee & not when co. buy ticket in
bus for fixed route
Legal Sector
3. Legal services BY individual advocate/ T0 Any business entity

Senior adv./firm in TT
4. Tribunal services BY Arbitral Tribunal T0 Any business entity

in TT
"legal service" advice, consultancy/assistance in any branch of law, representational services.
Insurance & Banking Service Sector
5. Service BY Insurance Agent T0 Insurance Business

in TT
(life/general)
6. Service BY Recovery Agent T0 » Banking Co./

» Financial Inst./
» NBFC in TT
7. Service BY Members of T0 RBI

Overseeing Committee
8. Service BY Individual direct T0 Banking Co/NBFC

Selling agents (DSA) in TT
9. Service BY Business Facilitator T0 Banking Co

In TT
FCM RCM
AGENT OF B.F. B.F BANK
NO Liability in either case
10. Service BY agents of business T0 business correspondent

correspondent
RCM FCM
AGENT OF B.C. B.C. BANK
Liability in both the cases
Govt. Sector
11. Service BY CG/SG/Local authority T0 Business entity

Courts/Tribunals in TT
EXCEPT:
[PATI]
1. Post department Service
2. Aircraft or vessel related services inside/outside port
3. Transportation of goods/passengers
4. Immovable property renting.
12. Renting of immovable BY CG/SG/Local authority T0 Any registered person

Property Courts/Tribunals
Note: services by court/tribunal are in schedule III (negative list), however, RCM Apply to above limited purpose
i.e. renting of premise to telecom co. for towers, rending of chamber to lawyers
Construction Service Sector
13. Transfer of BY Any person T0 Promoter

Development rights
or floor space index [FSI]
For construction
14. Long-term lease BY Any person T0 Promoter

of land
[30 years or more]
Un-organized to Organized Service Sector
15. Sponsorship services BY Any person T0 Any Body Corporate/

Partnership firm in TT
Babu ltd. RCM

E.g. IPL Shivam Nagpal FCM
Apple Inc. EXPORT
16. Service BY Director T0 Any Co./ Body

Corporate in TT
ANALYSIS
REMUNERATION Declared REMUNERATION Declared

as TDS U/S 192 as OTHER THAN TDS U/S 192
NOT SUPPLY SUPPLY
SCHEDULE III TAX Paid by Co. Under RCM
17. Security services BY Any person other than T0 Registered person

(as a security personnel) Body Corporate in TT
Except:
• Department of Govt./local authority/Govt. Agency
• Composition Reg. person
Other Service Sector
18. Copyright relating to BY Author, music composer, T0 Publisher, Music Co.

Original work photographer, artist producer & Like in TT
(2ACP)

However, Author has option tax under FCM subj, to these conditions: (RTP MAY 20)
1. The author has taken registration, and filed a declaration
2. Shall not withdraw the option within a period of 1 year from the date of exercising option
3. Make declaration on invoice
19. Renting of BY Any person T0 Registered person

residential dwelling
Clarification: RCM not applicable when residential dwelling is used by proprietor as his residence - exempt
i.e. RCM apply on when used for business purpose
20. Lending BY Lender T0 Borrower

of securities
• Any Supply Of G/S LOS in India & POS Outside India (Export) – Inter State
• Supply of service imported In India (import) – Inter State
Additional services Notified under RCM in IGST Act
1 Service BY Any Person in T0 Any Person in TT

Non-TT other than NTOR
2 Transportation of goods by vessel BY Any Person in T0 Importer

From outside India to custom station Non-TT
NTOR (Nontaxable online recipient)
• Any unreg. Person or CG/SG/LA/individual (in TT) Receiving OIDAR service for non-business purpose.
SPECIAL PONTS:
1. LLP will be included in Partnership Firm (SMQ)
2. Body Corporate
• Include – Company incorporated outside India
• Exclude – Regd. Cooperative society
D – Director
Development Right/Floor Space Index/Long-Term Lease
Direct Selling Agent (Individual)
I – Insurance Agent
Immovable property renting by government
A – Advocate/Senior Advocate
Arbitral Tribunal
Author
G – Goods Transport Agency
Government (CG/SG/LA/Court) services DIAGRAMS Sec 9(3) – RCM
R – Recovery Agent
Renting of Motor Vehicle
Renting of residential dwelling
A – Agent of Business Correspondent/Business Facilitator
M – Music Composer/Photographer/Artist
Members of Overseeing Committee (RBI)
S – Sponsorship Services
Security Services
Securities lending services

Sec 9(4)
Unregistered Supplier Supply Notified G/S Specified Class of
Regd. Recipient
1. Notified in this section: REAL ESTATE SECTOR
Effective rate of GST on real estate sector for new projects by promotor
Construction of Construction of All Houses Commercial Apartment

Affordable Other Than Affordable in A RREP (Residential
Houses Houses Real Estate Project)
Commercial Carpet Area < 15%
Of Total Carpet Area
1% WITHOUT ITC 5% WITHOUT ITC 5% WITHOUT ITC
AFFORDABLE HOUSES: AREA 60 SQM IN METRO & VALUE UP

90 SQM IN NON-METRO TO 45 LAKHS
2. Notified supplies: Promoter has to pay GST on RCM on Next-

• CEMENTS: RCM @ APPLICABLE RATE
• CAPITAL GOODS: RCM @28%
• On other goods or services: Purchased from registered suppliers <80% then pay under RCM on such
(80% - % actually purchased from registered suppliers).
(Excluding TDR/FSI, Electricity, 5 petroleum pdts.)
Sec 9(5): Electronic commerce operator (ECO)

Means any person who ouns, operate or manage digital/electronic facility or platform for electronic commerce
GST payable by ECO: - THAR

(a) Passenger Transportation: Always ECO pay tax. (e.g.: OLA, UBER)
by
• Radio taxi
• Motor cab / maxi cab
• Motor cycle
• Omnibus/other motor vehicle
(b) Hotel Accommodation residential /lodging purpose
Except supplier liable to register (e.g.: OYO)
(c) Housekeeping service:
Except supplier liable to register (e.g.: Urban Clap, like plumber/Carpenter)
(d) Restaurant service:
Except through specified premise (e.g. Zomato, swiggy)
Specified premise: where hotel accommodation tariff > 7500 per day or equivalent
Note: any service supplied through ECO considered in aggregate Turnover of supplier
PERSON LIABLE TO PAY:
• If ECO in India – then ECO liable to pay.
• If ECO not a physical presence in India, - Person representing ECO liable to pay.
• If ECO not have a physical presence & representative in India – Person appointed by ECO for GST
purposes.

Clarification:
1. Supply through ECO u/s 9(5) shall not be considered as inward supply for ECO (as no RCM)
2. Liability u/s 9(5) must be paid in cash by ECO
3. Other supply of G/S under same order, advisable to bill separately, normal TCS provision applicable in that case
STUDENT NOTE
LET’S UNDERSTAND TYPE OF SUPPLY
Taxable supply Non-taxable supply Exempt supply
Chargeable Zero rate G/S not subject Nil rate wholly exempt
Supply supply to levy GST Supply supply
G/S G/S GST rate G/S subject to

G/S subject to rate of GST
subject to itself is nil
rate of GST but exempted
rate of i.e. nil in tariff
but export by govt.
GST
incentive is
given
Also include non- taxable supply

CHAPTER: 4 COMPOSITION LEVY
Composition levy Advantages

An option for specified categories of small taxpayers • Low rates of tax
to pay GST at a very low rate on the basis of • Hassel free simple procedures for such taxpayers
turnover. (voluntary & optional) • Simple calculation of tax based on turnover
• A very simple annual return.
1. Applicability
COMPOSITION
LEVY SEC 10
SEC 10(1) & 10(2) 10 (2A)

GOODS/& RESTURENT Other SERVICES
Agg. T/o Limit = 50 lakhs

Special category For Remaining states in preceding F.Y.
State (except H.P.,
Assam, J&k)
[MT NAGMANI Aggregate T/o Limit = 1.5 crore
USA JAM IN HIMACHAL] In preceding F.Y.
Aggregate T/o Limit = 75 lakhs

In preceding F.Y.
May opt To Pay Tax @ Specified Rate on Total T/o In State
Aggregate Turnover
• All India Basis of Person Having Same PAN
Total Outward Supply of

• Taxable Supply
• Exempt Supply T/o Before Became
• Inter State Supply Liable to Register
• Export Of G/S
Exclude
• Inward Supplies Under RCM
• Taxes Incl. Cess Under GST
• Value of Exempt Service i.e. Interest on Loan /Deposit/Advance

Turnover in State/UT
• In State/Ut in Current F.Y
Total Outward Supply of

• Taxable Supply
• Exempt Supply T/o Before Became
• Inter State Supply Liable to Register
• Export Of G/S
Exclude
• Inward Supplies Under RCM
• Taxes Incl. Cess Under GST
• Value of Exempt Service i.e. Interest on Loan /Deposit/Advance
Exempt Supply
Means a supply of any goods or services or both
• Which attracts nil rate of tax
• Wholly exempt from tax
Include non-taxable supply
Rates of tax
For Goods Manufacturer 0.5% + 0.5% of turnover in State/Ut
Trader 0.5% + 0.5% of turnover of taxable supplies* in State/Ut (IMP.)
Restaurant service 2.5% + 2.5% of turnover in State/Ut
For Services 3% + 3% of turnover in State/Ut
2. Procedure for opting for the scheme
I. New registration under GST:
• Intimation in the registration form GST REG-O1 PART B

• Effective From the date of registration
II. Registered person opting for composition levy
• Intimation in form CMP-02 before commencement of F.Y.

• Effective from beginning of F.Y.
Also provide statement within 60 days from commencement of F.Y (for ITC Reversal)
Other points:
• Bill of supply to be issued (tax invoice) mention “composition tax payer not eligible to collect tax’’.
• Mention “composition taxable person’’ at every place of business.
• Can’t claim ITC, no tax to be collected from customer pay liability in cash.
• Irregular availment of the composition scheme penalty + tax u/s 73 & 74.
• Same PAN All business opts for composition scheme.
(If one ineligible/opt out then all ineligible)

3. Condition to fulfill (not eligible to opt if) (RTP N21)
COMPOSITION
LEVY SEC 10
SEC 10(1) & 10(2) 10 (2A)

GOODS/& RESTURENT COMMON CONDITIONS Other SERVICES
[T MINES]
1. Maintain aggregate T/o Within 75/150/50 L limit in C.F.Y also[T]
2. Supply of Goods/Service Not leviable to tax [N] (5 petroleum pdt & alcohol)
3. Inter-State Outward supplies [I] (Procurement allowed)
4. Supply through an Electronic commerce operator (ECO) [E]
Turnover limit for 5. Casual taxable person (CTP) or non-resident taxable person [N]
Composition levy 6. Manufacturer of (trader)[M]
• fly ash bricks/product [PAIT 3BR]
• bricks of fossil meals
• building bricks
• earthen/roofing tiles
• ice cream
• Aerated waters
• Pan masala
• Tobacco & substitute
6. Supply of service other than restaurant service[S]

Allowed:
• 10% of T/o in State/Ut in preceding F.Y.
OR whichever is higher
• 5 Lakh
(for value of service, exempt interest on loan/advance/deposit shall not considered)
4. Withdrawal from composition scheme
(a) Mandatory (SMQ)

▪ Fails to comply prescribed conditions.
▪ Pay tax under normal tax system.
▪ File within 7 days intimation(formCMP-O4) for such event.
(b) Voluntary
▪ File an application for withdrawal
Note: IN all withdrawal cases furnish statement within 30 days of withdrawal date
Of
[Stock of input raw material, semi- finished goods, finished goods]

CHAPTER: 5 TIME OF SUPPLY(TOS)
• Liability to pay GST arise at time of supply (TOS) (20th of next month)
AN OVERVIEW(TOS)
GOODS SERVICES COMMON PONTS

FOR G/S
a. Under FCM a. Under FCM a. Voucher’s

b. Under RCM b. Under RCM b. Int./Late/Penalty
c. In case of associate c. Residual Cases
1. Time of supply for goods (sec 12) (SMQ)
a. Forward charge mechanism b. Reverse charge mechanism
(i) Date of issue of Invoice or (i) Date of Receipt of goods or

(ii) Last Date of issue of Invoice (ii) Date of Payment or
Whichever is earlier (iii) 31st Day from Supplier's Invoice
Whichever is earlier
Note: TOS is not on receipt of advance Note: If (i) (ii) or(iii)is not possible
(Not apply to composition supplier) Date of Entry in Books of Accounts
Last date for invoice issue for goods (sec 31):
1. Movement of goods involved 2. Movement of goods not involved
Removal of goods Making goods available to recipient
3. Continuous supply of goods

At time of
▪ Issuance of periodical statement or
▪ Receipt of payment
e.g. Gas supply through pipelines, supply to builder etc.
4. Goods sent on approval/return basis

▪ At the time of supply or
▪ 6 months from the date of removal
Whichever is earlier.

2. Time of supply for service (sec 13)
a. Forward charge mechanism b. Reverse charge mechanism
(i) Date of Payment or

(ii) 61st Day from Supplier's Invoice
Note: If (i) or (ii) is not possible
Date of Entry in Books of Accounts
Invoice issued within time Invoice not issued within time
(i) Date of invoice or (i) Date of service provision or
(ii) Date of payment (ii) Date of payment
Whichever is earlier Whichever is earlier
Note:
1. if above not possible date when recipient show receipt in his books
2. Payment 1000 in excess of Invoice:
At option of supplier
▪ Receipt/date of invoice issue
c. In case of associate enterprise (RCM)

& supplier located outside India
• Date of entry in books of recipient or

• Date of payment
Last date for invoice issue for services (sec 31):
1. Within 30 days of provision of service

(45 days in case of insurance/banking/financial institution/Nbfc.)
2. In case of continuous supply of service in this order
• Due date of payment visible Due date of payment

• Due date not clear Date of receipt of payment
• Millstone/even based On completion of milestone/event
However, if supply of service ceased before completion

Raise invoice before such cessation

3. Common points for goods & service (sec 12 & 13)
a. Vouchers for goods/service

• If supply is identifiable: date of issue of voucher i.e. Zomato voucher
• In other cases: date of redemption of voucher i.e. reliance trend voucher
b. Interest/late fee/penalty for delayed payment of consideration

Date on which supplier receive such addition in value
c. Residual cases
• If periodical return is filled - due date of return
• Otherwise - date of payment of tax
Note:
Date of payment (received):
-date of book entry
-credited to bank w.e Earlier
Date of payment (RCM):

Date of payment entered in books
Date of debit to bank w.e Earlier
4. TOS in case of change in rate (sec 14)
1/07/2023 10/07/2023
Rate: 12% Which Rate To be applied?? Rate: 18%
Payment Delivery
I: Invoice DOI: Date of invoice
P: Payment DOP: Date of Payment
G/S supplied before rate change G/S supplied After rate change
I Before TOS: DOI I After TOS: DOI

1
P After RATE: OLD P Before RATE: NEW
I After TOS: DOP I Before TOS: DOP

2
P Before RATE: OLD P After RATE: NEW
I After FOR GOODS: TOS: DOI

TOS: W.E.IS EARLIER I Before TOS: W.E.IS EARLIER FOR GOODS: TOS: DOI
3
P After RATE: NEW P Before RATE: OLD
IN SHORT:
• IF any of two supply/invoice/payment are before rate change then old rate apply & TOS ‘’before’’
• And if any two are after rate change then New rate apply & TOS ‘’After’’
In case of rate change

Date of Payment: earlier of book entry or bank debit
Only if amount credited in bank within 4 days from date of change in rate
Otherwise DOP = Bank credit date

CHAPTER: 6 VALUE OF SUPPLY(VOS)
AN OVERVIEW(VOS) SEC 15
TRANSACTION INCLUSIONS EXCLUSIONS

VALUE 15(2) 15(3)
15(1) 3 TIPS D
Discount
a. Duties & Taxes
b. 3rd party payment
c. Incidental expenses
d. Interest, late fee, penalty
e. Subsidy
When value cannot be determined under section 15, the same is determined using CGST rules.
1. Sec 15(1):
VALUE OF A SUPPLY = TRANSACTION VALUE
Price actually paid or payable.

Condition:
• Not Related Party
• Price Is Sole Consideration
2. Sec 15(2): Inclusions
a. Duties & taxes, fees, cess other than GST i.e. municipal tax, excise duty
Note: Tax collected at source (TCS) not included as it is not sperate tax it’s just a mechanism of tax collection
b. Payment to 3rd party by recipient

Only if supplier contractually liable to provide that part of supply
Even
• Amount not added in bill
• Directly paid to 3rd party by recipient Doesn’t matter include in VOS
i.e.
1. transport cost paid by recipient supplier liable to pay(contract) – yes include
2. transport cost paid by recipient but supplier liable to arrange transport – not include
c. Incidental expenses (SMQ)

• Amount charged for anything done by the supplier in respect of the supply of goods (before delivery)
i.e. commission, packing, loading exp., customisation, testing, transportation
Clarification
When supplier pay for freight/insurance Composite supply GST @ applicable rate on main supply
Supply on ex- factory basis (buyer pays Not to be included in VOS
freight /insurance)
d. Interest or late fee or penalty for delayed payment

• Only if actually recovered, if waived not part of supply
• Considered composite supply tax rate same as main supply
• Interest usually considered inclusive of GST
Hence value of interest INTEREST × 100

To be included in VOS 100 + RATE
Note: only interest on loan/advance exempt but above interest if different from it (in form of penalty)
e. Subsidies (SMQ)
Only if:
1. Provided by other than CG/SG &
2. directly linked to the price
3. Sec 15(2): Exclusions

Pre /on supply discount
DISCOUNT
Post supply discount
(A) Pre or on supply discount: Discount given before or on making supply

& shown in invoice
(B) Post supply discount: all discount can’t be decided on or before delivery
i.e. payment discount, volume discount
Post supply discount not reduced from VOS however discount allowed if:
1. Prior agreement
2. Can be linked to invoices
3. Proportionate ITC reversed by the recipient
Clarification on discounts
1. Staggered discount 2. Periodic/volume/ 3. Secondary discount

‘Buy more Save more’ Year-end discount Not known at time of contract
more’ offers’ Later on, given due to price
revaluation or other reason
Discount shown in invoice, Exclude from discount if
hence exclude from VOS 3 condition satisfied
Not deduct from VOS
GST to be paid on
original invoice
EXAMPLES
1. Example - Get 10 % discount for purchases above Rs. 5,000/-, 20% discount for purchases above Rs. 10,000/- and
30% discount for purchases above Rs. 20,000/-.
2. Example- Get additional discount of 1% if you purchase 10,000 pieces in a year, get additional discount of 2% if you
purchase 15,000 pieces in a year.
3. Example- A supplies 10,000 packets of biscuits to M/s B at Rs. 10/- per packet. Afterwards M/s A re-values it at Rs.
9/- per packet. Subsequently, M/s A issues credit note to M/s B for Rs. 1/- per packet.

Deduction of No Claim Bonus permissible as Discount: (imp.)

Discount given before or on making supply (pre-supply discount) Are deducted from VOS
& shown in invoice
As Insurance companies make disclosure in policy documents about it. It is, therefore, clarified that No Claim
Bonus (NCB) is permissible deduction. GST payable on actual insurance premium amount, payable by the policy
holders, after deduction of No Claim Bonus mentioned on invoice.
Q. Samriddhi Advertisers conceptualised and designed the advertising campaign for a new product launched by New Moon Pvt Ltd.
for a consideration of ₹ 5,00,000. Samriddhi Advertisers owed ₹ 20,000 to one of its vendors in relation to the advertising service
provided by it to New Moon Pvt Ltd. Such liability of Samriddhi Advertisers was discharged by New Moon Pvt Ltd. New Moon Pvt
Ltd. delayed the payment of consideration and thus, paid ₹ 15,000 as interest. Assume the rate of GST to be 18%.
Determine the value of taxable supply made by Samriddhi Advertisers.

Solution:
Computation of value of taxable supply
Particulars ₹
Service charges 5,00,000
Payment made by New Moon Pvt. Ltd to vendor of Samriddhi Advertisers [Liability of the supplier being 20,000
discharged by the recipient, is includible in the value in terms of section 15(2)(b)]
Interest for delay in payment of consideration [Includible in the value in terms of section 15(2)(d) – Refer note 12,712
below] (rounded off)
Value of taxable supply 5,32,712
Note: The interest for delay in payment of consideration will be includible in the value of supply but the time of supply of such interest
will be the date when such interest is received in terms of section 13(6). Such interest has been assumed to be inclusive of GST and
thus, the value has been computed by making back
calculations Interest ×100. It is also possible to assume the interest to be
100 + tax
rate
exclusive of GST. In that case, the value of supply will work out to be ₹ 5,35,000.
STUDENT NOTE

AN OVERVIEW(VOS) SEC 15
15(4) Apply Rules 15(5) Special Rules

Where value cannot be determined For notified supplies
by sec 15(1)
4. Sec 15(4): Apply Rules Where value cannot be determined by sec 15(1)
Rule 27: Value of supply Rule 28: Value of supply Between Rule29: Value of supply of
where the consideration is not distinct or related persons Goods made or received through
wholly in money (not apply to agent) an agent
I.e. barter/exchange
(a) Open Market Value (OMV) (a) Open Market Value (OMV) (a) Open Market Value (OMV)
or
90% of price charged for LIKE
KIND & QUALITY by recipient to
his unrelated customer
(b) Money (b) Value (b) If not determinable in
+ of like kind and quality. (a)
FMV of consideration not then follow
In money Rule 30 or Rule 31
(c) Value (c) If not determinable in
of like kind and quality. (a) & (b)
then follow
Rule 30 or Rule 31
(d) If not determinable in
(a), (b) & (c)
then follow
Rule 30 or Rule 31
Special provision for rule 28

Following independent option are available
1. 90% of price charged for LIKE KIND AND QUALITY by recipient
to his unrelated customer.
2. If recipient eligible for full ITC, value = declared in invoice = OMV
(means invoice value ko hi OMV man Liya jayega & also VOS)
Rule 30 value based on cost

110% of the cost of production/manufacture/acquisition of such G/S/B
NOTE: Service providers have option to directly move to rule 31 by passing rule 30
Rule 31 Residual method (best judgement)
determined using reasonable means by applying sec 15 & earlier rule

5. Sec 15(5): Special Rules for notified supplies

Rule 31A
(a) VOS in case of lottery organized by State govt. racing: -
100/128 × face value of ticket or
100/128 × price notified by SG in Official Gazette
whichever is higher.
(b) VOS in case of lottery/betting/gambling/horse racing
100% of the face value of bet or amount paid to totalisator.
EV = Exchange value
FC = Foreign Currency
Rule 32 value in special cases
1) Purchase or sale of foreign currency
Option 1 Option 2
a) Exchanged Value up to ₹ 100000

FC to ₹ FC to FC Value = 1% of Gross Amount exchanged, min ₹ 250/-
b) Exchanged Value more than 1 lac but up to 10 lacs
Value = ₹ 1,000 + 0.50% (EV − 1 Lacs)
RBI Ref. rate available RBI RBI Ref. rate not available c) Exchanged Value Above 10Lacs
Value = ₹ 5,500 +0.1% of (EV − 10 Lacs)
value = value = but max ₹ 60,000
Buy RBI units Note: once opted can’t be changed during year
1% of Gross amount
or Sell − Ref. × of foreign
Rate rate currency
of currency exchanged in ₹
Convert both currency in Indian ₹

by applying RBI rate
value = 1% of lower above amounts
Example:
X Pvt. Ltd., money changer, has exchanged US $ 10,000 to Indian rupees @ ₹ 74 per US $. X Pvt. Ltd. wants to value supply in
accordance with rule 32(2)(b) of CGST Rules.
Determine VOS made by X Pvt. Ltd.
Solution:
As per rule 32(2)(b) of CGST Rules, value in relation to supply of foreign currency, including money changing, is deemed to be-
(i) 1% of the gross amount of currency exchanged for an amount up to ₹ 1,00,000, subject to a minimum amount of ₹ 250;
(ii) ₹ 1,000 and 0.5% of the gross amount of currency exchanged for an amount exceeding ₹ 1,00,000 and up to ₹ 10,00,000.
Therefore, the value of supply, made by X Pvt. Ltd., under rule 32(2)(b) of CGST Rules is computed as under:
Particulars ₹ ₹
Value of currency exchanged in Indian rupees [₹ 74 x US $ 10,000] 7,40,000
Up to ₹ 1,00,000 1,000
For ₹ 6,40,000 [0.50% x ₹ 6,40,000] 3,200
Value of supply 4200
2) Service of booking of air ticket

Domestic Travel: 5% of Basic Fare
International Travel: 10% of Basic Fare
Note: amt. on which airline normally pay commission, excluding charges & taxes

Example:
UB & Sons an air travel agent. Compute VOS of service made by firm during a month
Particulars Basic fare (₹) Other charges Taxes (₹) Total value of
and fee (₹) tickets (₹)
Domestic Bookings 1,00,900 9,510 4,990 1,15,400
International Bookings 3,16,880 20,930 15,670 3,53,480
Solution:
Computation of value of supply of services made by UB & Sons in a month
Particulars ₹ ₹
Basic fare in case of domestic bookings 1,00,900
Value of supply @ 5% [A] Refer Note below 5,045
Basic fare in case of international bookings 3,16,880
Value of supply @ 10% [B] Refer Note below 31,688
Value of supply [A] + [B] (rounded off) 36,733
Note:
As per rule 32(3) of CGST Rules, value of supply of services in relation to booking of tickets for travel by air provided by an air travel
agent is 5% of the basic fare in case of domestic bookings, and 10% of the basic fare in case of international bookings.
3) Life insurance business

1. Saving policy (risk +investment)
a. Investment intimated to policy holder VOS = Gross premium ̶ investment
b. Investment not intimated to policy holder • 1st year 25% premium charged
• subsequent year 12.5% of premium charged
2. Single premium annuity policy VOS = 10% of single premium charged
3. Risk policy VOS = Entire premium (100%)
Example:
Chirayu Life Insurance Company Limited (CLICL) has collected premium from policy subscribers. It does not intimate amount
allocated for investment to subscribers of policy at time of collection of premium. The company has provided following details
S. No. Particulars Amount
1. Premium for only risk cover 25,00,000
2. Premium from new policy subscribers 40,00,000
3. Renewal premium 80,00,000
4. Single premium on annuity policy 1,00,00,000
All amount exclusive of tax. You are required to compute VOS by CLICL
Solution:
As per rule 32(4), VOS of services in relation to life insurance business, when amount allocated for investment/ savings on behalf of
policy holder is not intimated to policy holder at time of supply of service, is-
(i) in case of single premium annuity policies,10% of single premium charged
(ii) in all other cases, 25% of the premium charged from the policy holder in first year and 12.5% of the premium charged from policy
holder in subsequent years;
(iii) in case entire premium paid by policy holder is only towards risk cover in life insurance, premium so paid.
Computation of VOS for CLICL
Particulars Amount (₹)
Premium for only risk cover 25,00,000
Premium from new policy subscribers 25% of ₹ 40,00,000 10,00,000
Renewal premium 12.5% of ₹ 80,00,000 10,00,000
Single premium on annuity policy10% of ₹ 1,00,00,000 10,00,000
Total value of supply 55,00,000

4) Value of supply in case of second-hand goods:
When ITC not availed When ITC availed

Value = Selling Price – Purchase Price Value = Transaction value sec 15(1)
(Ignore Negative Value)
In case of repossessed goods from defaulting borrower

Purchase = Purchase price ̶ 5% of each qtr. or part
of defaulting From date of purchase by defaulting
price borrower to date of disposal by person
borrower
5) Value of redeemable token/voucher/coupon:

VOS = money value for which redeemable
Rule 33: Value of supply of services in case of pure agent: -

expenditure incurred by supplier as pure agent is not includable in VOS
If following condition satisfied:
(a) payment made on behalf of recipient as a pure agent
(b) payment auth. By recipient to supplier
(c) supplier shows amt. separately in invoice.
(d) Payment made in addition to main supplies on his own a/c.
Who is a pure Agent: A person who

1. Enters into contract to act as a pure agent to incur expenditure
2. Neither intends nor hold any title of g/s/b procured as pure agent
3. Doesn’t use goods/service for his oun
4. Receives only actual amt. incurred
Note: hotel exp, travelling exp, telephone exp, etc. reimbursed to perform service can’t considered as pure
agent reimbursement
Rule 34: Rate of exchange to be used

• For Goods - Rate notified by CBIC
At time of supply
• For Services – Rate of exchange as per GAAP
Rule 35: Value inclusive of tax
Tax Amount = Value inclusive of Tax × Tax Rate %

(100 + tax rate %)

Circular & clarification
1) Incl. or excl. from VOS
Moulds/dies provided by
To component manufacturer (CM)
Original Equipment
Manufacturers (OEM) on free of cost (FOC) basis
• Component mfg. (CM) liable to use their moulds/dies Yes include

• OEM is liable to provide moulds/dies Not include
2) Levy of GST on Airport dues collected by Airlines as pure agent

User Development Fee (UDF) & Passenger Service Fee (PSF)
UDF & PSF levied by Airport operator
1. For airport services
on passenger
collected by Airlines 2. Provide collection

on behalf of airport operator services (commission)
1. Taxable by Airport operator

So, tax on UDF & PSF paid by operator & collected by airline
2. Taxable on airline
Commission by airline from operator
Note: The airline shall not take ITC of GST paid on PSF/UDF
STUDENT NOTE

CHAPTER: 7 EXEMPTIONS FROM GST
which attracts nil rate of tax

Exempt supply includes non-taxable supply.
Means wholly exempt from tax i.e. petrol, alcohol
(SMQ)
Exempt goods Exempt service

(NOT IN SYLLABUS) COVER IN THIS CHAPTER
• CG/SG grants exemption (on the recommendations of GST council) by

issue of notification or special order [exceptional circumstances]
• If govt add any explanation to entry in notification/order within 1 year
Such explanation shall have retrospective effect since date of original notification/order
Example: New entry is inserted w.e.f. 21.09.2018. Subsequently, an explanation is also inserted with respect to
entry on 26.07.2019. (within 1 year of insertion of entry). The said explanation will be effective retrospectively
From 21.09.2018.
How to cover this chapter
1. We have divided services Sector wise:
Health Care Agriculture Charitable Education Entertainment Transport Legal Govt. Other
1. Banking
2. Insurance
2. Also, bifurcation done 3. Specified
Body
A. LEARN - 4. Sports
5. Construction
6. Other
Memorise & Write limit based Difficult to
As it is Exemption Understand
MEMORY LIMIT BASED CHARTS & EXAMPLE

TECHNIQUES SUMMARY
B. READ ONLY - Just do plane reading

Health Care Sector
Part A:
Health care services means
• Diagnosis • Injury in recognized system of medicines

or • Illness in India
• Treatment FOR • Deformity (i.e. Allopathy, Yoga, Naturopathy,
or • Abnormality Ayurveda, Homeopathy, Siddha, Unani)
• Care • Pregnancy [Nani HASNA Yoga]
*acupressure, reiki, Chinese med. - taxable
[DTC] [2i PAD]
Includes: Transportation of the patient to and from a clinical establishment i.e. ambulance
Exclude: Hair transplant or cosmetic/plastic surgery
(Except: restore/restructure due to defect/injury)
1. Health care services by

• A clinical establishment i.e. Hospitals
• An authorised medical practitioner i.e. Reg. Individual doctor
• Para- medics i.e. Trained healthcare professional like nurse, physiotherapist
However, service by way of providing room charges > 5000 per day Taxable
Except: ICU (intensive care unit), CCU (Critical Care Unit), ICCU (Intensive Cardiac Care Unit), NICU (Neo natal
Intensive Care Unit) exempt (any amt.)
Some clarifications (IMP.)
1. Senior doctors/ consultants/ technicians hired by hospital & remuneration paid to them by
hospital exempt
i.e. Hospitals charge patient Rs.10,000 & pay to doctors only Rs. 7,500 and keep 2,500 for
providing ancillary services then entire amount is exempt.
2. Retention money charged from patient exempt
3. Renting of shops, auditoriums in hospitals, display of advertisements etc. will be taxable
4. Food services (SMQ)
Provided by hospital Outsourced to third party
In patient others taxable
Exempt taxable
5. IVF (In virto fertilisation) service: exempt
Part B:
2. Transportation of a patient in an ambulance(other)

3. Services by veterinary clinic in relation to health care of animals or birds

Agriculture Sector
Part A:
Agriculture:
• Food
• Cultivation of plants
• Fibre
& FOR • Fuel
• Rearing of animals,
• Raw Material
[except horses]
• Similar Things
Agriculture produce (AP):

Any produce of agriculture on which
• Either no further processing is done
• such processing is done Usually done by a cultivator/producer
Doesn’t alter essential characteristics to make makes it marketable
1. Service by Agriculture operation such as

a. Cultivation, harvesting, threshing, plant protection or testing
(intermediate production process such as job work)
b. supply of farm labour
c. processes carried at agricultural farm which do not alter the essential characteristics of
agricultural produce & make it marketable for primary market
(Milling of paddy into rice - not an intermediate production process. Hence not exempt)
d. Renting of agro machinery or vacant land
e. loading, unloading, packing, storage or warehousing of agricultural produce RICE
f. Agricultural extension services (i.e. farmer education & training)
g. services by any Agricultural Produce Marketing Committee (APMC)by a commission agent
for agricultural produce.
• Other than AP: not exempt
• Renting of shop: not exempt
Agriculture produce (AP) or not??
Tomato = AP
Tomato ketchup = NOT AP Wheat = AP Sugar cane = AP Jaggery = Not AP
Grams = AP
Pulses = Not AP Wheat flour = Not AP Potato = AP Chips = Not AP
• Processed products such as tea (i.e. black tea, white tea), processed coffee beans or powder, pulses(split),
jaggery, processed spices, processed dry fruits, processed cashew nuts etc. fall outside the definition of
agricultural produce.
Part B:
2. warehousing of minor forest produce. (i.e. honey, bamboo)

3. Storage/warehousing of cereals/pulses/fruits & vegetables (Imp Only)
4. pre-conditioning, pre- cooling, ripening, waxing, retail packing, labelling of fruits and vegetables which
do not alter the essential characteristics
5. Services provided by the National Centre for Cold Chain Development by way of cold chain knowledge
dissemination.
6. artificial insemination of livestock (except horses)
Charitable & Religious Activities

[3C2R]
Part A:
1. Services by entity registered u/s 12AA/AB of Income-tax (TRUST)

By way of charitable activities. [C]
a) [ACP SP] Public health
Care or counselling of: Public awareness of:

• Terminally ill persons • preventive health
• HIV or AIDS affected • family planning
• Addicted to narcotics/alcohol • HIV prevention
b) Advancement of
• Religion
• spirituality
• yoga
c) Educational/skill development to-
• Abandoned/orphaned/homeless children;
• Physically/mentally abused
• Prisoners
• Persons age > 65 years + rural area (URBAN)
d) Preservation of environment
• Watershed
• Forest
• Wildlife
Any activity other than this liable to GST i.e. advertisement etc.
2. Renting of precincts of a religious place i.e. mandir /gurdwara[R]

By charitable/ religious trust reg. Under 12AA/AB, 10(23C) (V), 10(23BBA) of IT Act
• Rooms rent up to 999/day
• Premises/halls/Kalyan mandapam/open area rent up to 9999/day
• Shop/space for business rent up to 9999/month.
Clarifications
1. Fitness camps, dance/music class – taxable
2. Residential camp/program which are exempt
But provided taxable services along with (i.e. food/drink/stay etc.)
Composite supply & exempt supply is principal supply
Then full service is exempt
3. Any service provided to trust isn’t exempt

Part B:
3. conduct of any religious ceremony by any person[C]

i.e. pandit ji doing Hwan
4. religious pilgrimage service by[R]

• Kumaon Mandal Vikas Nigam (KMVN) for Kailash Mansarovar yatra
• Haj Committee for haj
5. training or coaching relating to- [C]
ART: dance/singing/painting/theatre/
• Arts or culture, by an individual or
Literature/script etc.
• Sports by charitable entities registered under 12AA /AB
Education Sector
Part A:
Educational institution: means institution providing

• pre-school & up to higher secondary education
• college/university providing education for qualification recognized by law (Indian)
• education as approved vocational education course (NCVT/SCVT/ITI)
[Central/state board considered as EI only for purpose of conduct of examination i.e. CBSE]
1. Services provided by educational institution to:

• Students - faculty – staff (i.e. fee/catering/transport)
• conduct of entrance examination against entrance fee
Note: Service to another person is taxable i.e.

a. Auditorium of school given to other for seminar
b. Placement services to corporate
2. Services provided to educational institution of:
1) Transportation students - faculty - staff Only if provided to

2) Catering, including mid-day meals pre-school and Up to
higher secondary
3) Security/cleaning/house-keeping services school
(only if performed within educational institution) i.e. outside taxable
4) Online educational journals/periodicals [only college/university for qualification recog. By law]
5) Admission to/conduct of examination [To any Educational institution]
Note: only service (goods not exempt) i.e. school provide stationary to students – taxable
Part B:
Clarifications:
1. Private coaching or obtaining a qualification recognized by law of a foreign law Taxable

(However if > 75% exp. Borne by govt: exempt)
2. Approved Vocational courses

» Course run by ITI/ITC Approved by national council for vocational training (NCVT)
» Employee skill course /(SCVT) for designated trade

3. IIMs providing
Long duration program [>1 year] Short duration program [<1 year]
(degree/diploma) (participation certificate)
exempt Taxable
4. Maritime training course - exempt

5. Anganwadi considered pre-school hence mid-day meal service to/by anganwadi - exempt
6. Fee charged for admission/eligibility certificate /migration certificate exempt
7. As state/central education board considered as ed. Inst. For purpose of examination
Skill a. Output service related to exam i.e. entrance
Development
Exempt
services b. Input service related to exam i.e. testing/printing/admission Exempt
c. Other i.e. accreditation to institute/professional Taxable
8. Food catering service
Run by EI Out sourced to 3rd party

Exempt
Pre-school & school up to HSE Others
Exempt Taxable
9. Authority/board/body set up by CG/SG incl. National Testing Agency shall be treated as educational
institution for limited purpose of providing services by way of conduct of entrance examination for
admission to educational institutions.
Entertainment & Museum Sector
1. Services by way of right to admission to-

Entertainment event
• circus, dance, theatrical performance Amt up to 500
• award function, concert, pageant, musical performance
• sporting event (both recog & unrecognised)
• planetarium
Zoo & monument

• museum, national park, wildlife sanctuary, tiger reserve or zoo.
• protected monument. Any Amount
2. Services by an Artist by way of (SMQ)

a. Brand ambassador: Fully Taxable
b. Performance in • Music (Classical/folk): Exempt if consideration up to

• Dance Rs 150000
• Theatre (if more than entire amt. taxable)

Transport Services
Part A:
Passenger transport services
1. Road:
Bus Metered cabs/auto & e -rickshaw
Ac Non -Ac Exempt Other

(i.e. radio taxi)
Taxable
Taxable
Stage carriage Contract carriage

(predecided route with
Decided stoppage) Tourism Other
Exempt Taxable Exempt
Note: All Exempt are also taxable if provided through ECO
2. Railway
a) Metro/monorail/tramway, Non-Ac Rail: Exempt
b) First class/Ac Rail: Taxable
3. Water
a) Inland waterways(river): Exempt
b) Public Transport (vessel-sea) in India: Exempt
c) Tourism purpose(vessel), transportation (o/s India): Taxable
4. Air
Journey embarking from/terminating to BATSMAN
• B Bagdogra (West Bengal)
• A Assam
• T Tripura
• S Sikkim Only in economy class
• M Manipur, Meghalaya, Mizoram
• A Arunachal Pradesh
• N Nagaland
STUDENT NOTE

Goods transport services
5. Transportation of goods by:
Road Railway Inland Air Vessel Pipelines

Fully Waterways Fully
GTA Taxable Exempt Taxable
Other
courier Place o/s India Custom station Otherwise
Road
Taxable Transport to Custom station In India to place o/s Taxable
Exempt In India India
i.e. Truck Exempt Taxable
/tempo
/individual
if Next goods are transported by GTA/Rail/Vessel then exempt (AIR not covered here)
1. Relief materials for victims
2. Defence or military equipment’s
3. Newspaper or magazines
4. Agricultural produce
5. Milk, salt and food grain, flours, pulses & rice
6. Organic manur
Part B:
Passenger transport services
6. Services provided to CG by transportation of passenger embarking/terminating at RCS

(Regional Connectivity Scheme) airport, against consideration via. Viability Gap Funding
7. Services by way of hiring – (SMQ) (MCQ)

a) to a state transport undertaking, motor vehicle >12 passenger (i.e. Bus)
b) to a local authority, Electric vehicle > 12 passenger
c) to a goods transport agency, means of transport goods.
d) motor vehicle for transport of students/faculty/staff/to a person providing services of transportation
to educational institution of pre-school education or school up to HSC
Goods transport services
8. Service provided by a GTA to unregistered person

Except: 3RCB PC
• registered factory,
• Society,
• Co-operative Society IN SHORT INDIVIDUAL RECIPENT IS EXEMPT
• body corporate
• partnership firm (regd. or not)
• casual taxable person
• registered person
(RCM)
9. Services by GTA to:

• Department/Establishment of the CG/ SG/ UT Also include intermediary & ancillary services
• local authority; or i.e. loading/unloading/packing
• Governmental agencies taken reg. just for TDS

10. Service by way of access to road/bridge for toll charges or annuity

(Also, any add. Fees charge for not having Fastag also exempt)
11. services associated with transit cargo to Nepal and Bhutan
12. Services by granting National Permit to goods carriage
Legal Services
1. Legal Services provided by law firm/arbitral tribunal/advocate/senior advocate TO:
Any person Business entity having CG, SG, UT,

other than a aggregate T/o < amt. local authority,
business entity making it eligible to get Govt. Authority/Entity
registered in previous year
EXEMPT
2. legal services to advocate/firm of advocate by:

• advocate/firm advocates: Exempt
• senior advocate: Taxable
By/To Govt. Services
Part A:
1. PATI (Link with RCM)
P Services by Department of Post
Post card, inland letter, Other services including

book post and ordinary post (speed post/express
(envelopes < 10 gms) parcel/life insurance)
Exempt Taxable
FCM
A/T Services in relation to an Aircraft/vessel inside/outside airport and - Taxable

Transport services (goods/passengers) FCM
I Renting of Immovable property Reg: RCM Up to 5000 exempt

Un reg: FCM

2. All other service (except - PATI) provided to:
Business entity Non- business entity

Exempt
Agg. T/o < Agg. T/o >

registration registration
limit limit
Exempt
Consideration?
< 5000 >5000

Exempt RCM
3. Services by old age home to its residents > 60 years & amt < 25000 p.m.
Run by:
• CG/SG
• Entity registered u/s12AA/AB
4. Service by Rehabilitation professional by way of therapy/counseling at

• medical establishment
• Educational Institution
• Rehabilitation Center
Established by Govt./trust u/s12AA/AB
5. Assigning the right to collect royalty to ERCC (excess royalty collection collector) on behalf of SG on
mineral dispatched by mining lease holders
Fixed amount payable (GST-RCM)

Mining license
SG MINER
ERCC
GST exempted up to amt. of tax
paid by Mining lease holders
Example: Miner did contract with govt. for mining 100000 ton for fixed 1 crore payable. right to
collect royalty bought by ERCC 1.5 crore. Miner actually mined 150000 tons (total)
Excess mined = 150000 – 100000 = 50000 ton @ 100 /ton = 50 lacs

Then GST paid by miner 50lacs ×18% = 9 lacs
(on excess royalty) 9 lacs exempted
(paid by miner)
So (RCM) to be paid by ERCC = 1.5 crore × 18% = 27 lacs
18 lacs GST to be paid
by ERCC on RCM basis

Definitions
1. Government authority/entity: means

• Set up by an act of parliament
• Established by govt with > 90% participation
2. Local authority: means

Panchayat/municipality/zillah parishad/district board/contentment board/regional or district
council/development board
But exclude: development authority like JDA/DDA
Note:
a) Service by police/security agency of government to PSU/BE – Not exempt & taxable under RCM
b) accommodation services provided by Air Force Mess/other similar messes, such as, Army mess/Navy
mess/ Paramilitary & Police forces mess to their personnel/any person other than a business entity are
exempt. (reason: all service by govt. to other than business entity exempt except explained above)
Part B:
6. Services by governmental authority in relation to any function entrusted

• to municipality under article 243W
• to Panchayat under article 243G
7. Service by CS/SG/UT/LA by way of:

a) Issuance of passport/visa/driving license/birth/death certificate
b) Registration required under any law, testing, calibration, safety check or certification related to
workers protection including Fire license.
c) Guaranteeing loans to its PSU’S/undertakings from bank/FI (Only by CG/SG/UT)
d) CG/SG/UT/Local authority to another CG/SG/UT/LA (except PATI)
e) Tolerating non-performance of contract against fines/liquidated damage
f) Right to use natural resources to farmer for agriculture
g) Deputing officers after office hours or on holidays in relation to import export cargo on payment of
Merchant Overtime charges.
8. To govt:
a) service by a Government Entity to CG, SG, UT, local authority or any specified person against
consideration in the form of grants.
b) service provided by Fair Price Shops to CG, SG, UT under Public Distribution System against
commission
c) Insurance Service to CG/SG/UT for which total premium is paid by govt
d) Training programme for which 75% or more borne by the CG, SG, UT
e) Pure services/composite supply (goods not more than 25%) in relation to243G/243W
(Panchayat/Municipality) given to CG/SG/UT
Other Services (Just Read)
Banking & financial services
1. Extending deposits/loans/advances against interest or discount (Except credit card)

2. Sale/purchase of foreign currency among banks/authorised dealers or amongst banks and such dealers.
3. Pradhan Mantri Jan Dhan Yojana (PMJDY).
4. transaction processing through credit/debit card or other payment card service up to Rs. 2,000 per
transaction (MCQ)
5. Services by intermediary located in International Financial Services Centre (IFSC) to a customer located
outside India for international financial service related to forex
6. Services by business facilitator/correspondent to banking/insurance company or intermediary to BC/BF
in a rural area. (MCQ)
Note:
a) interest under finance lease transaction is like purchase the asset & lend it further
Not purely loan hence taxable
b) FD/loan/other deposit/mortgage loan/overdraft facility/commercial paper/certificate of
deposit/repo/reverse repo
Exempt
But fee charge/processing fees ARE TAXABLE
Insurance & pension business
1. life insurance services

• by way of annuity under National Pension System
• by Army, Naval and Air Force Group Insurance Funds.
• by the Naval Group Insurance Fund.
• Central Armed Police to its personnel
2. Life insurance provide under scheme

• Janashree/Aam Aadmi/varistha pension
• PM Jeevan jyoti /PM jan dhan/PM vaya Vandana bima yojana
• Life micro-insurance,
having maximum cover of Rs 2,00,000
3. Pradhan Mantri Suraksha Bima Yojna

4. General insurance i.e. hut insurance/cattle insurance/ Rastriya health/swasthya
5. Reinsurance of above insurance schemes
6. Collection of contribution under
• Atal Pension Yojana.
• any pension scheme of the SG.
Specified bodies:
1. EPFO: Services provided by the Employees Provident Fund Organization.

2. ESI: Services by the Employees State Insurance Corporation.
3. Services by Coal Mines Provident Fund Organization.
4. Services by National Pension System (NPS) Trust.
5. Satellite launch services supplied by Indian Space Research Organization (ISRO)
Sports
1. Services provided to recognised sports body by- (MCQ) (SMQ) NOTE: COMMENTATOR
a. an individual as a player, referee, umpire, coach or team manager; TAXABLE
b. another recognised sport bodies.
2. Sponsorship of sporting events organized [Example: National sports federation, Association of Indian
Universities, Inter-University Sports Board, Indian Olympic Association].
3. admission to the events organised under FIFA U-17 Women’s World Cup 2020 Whenever reschedule
4. Services provided by and to Fédération Internationale de Football Association (FIFA).
Construction services
1. Pure labour contracts of construction, installation, repair, maintenance of beneficiary-led individual

house construction under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana.
2. pure labour contracts for a single residential unit (not as a part of a residential complex) MCQ
3. Electricity Distribution Utilities by construction/erection/commissioning of electricity distribution
network up to the tube well of the farmer for agricultural
4. Supply of TDR/FSI/long term lease of land by owner to a developer is exempt
• Only if flats are sold before issuance of completion certificate
• Not exempt if sold after issuance of completion certificate tax rate 5%
5. upfront amount payable for long term lease >30 years of
• industrial plots
• plots for development of infra
provided by the State Government Industrial Development Corporations /Undertakings/another entity
having >20% ownership of CG, SG, UT to the industrial units.
6. Renting of residential dwelling for use as residence to unregistered person
Other
1. Collecting/providing news by an independent journalist/ Press Trust of India/United News of India.
2. public libraries by lending of books/publications
3. Transfer of a going concern, as a whole or an independent part
4. public conveniences such as bathroom/washrooms/toilets
5. Services by a foreign diplomatic mission located in India. MCQ
6. providing information under (RTI)
7. Service by
• National Skill Development Corporation (NSDC)
• National skill development
• Sector Skill Council (SSC) under
programme
• assessment agency
• Vocational development course
• training partner
8. Assessments under the Skill Development Initiative Scheme.
9. Services provided by training providers under Deen Dayal Upadhyaya Grameen Kaushalya Yojana
(DDUGKY).
10. Services by incubatee up to a T/o of Rs. 50 lakhs in F.Y. subject to below conditions: -(imp)
a. T/o not exceeded Rs. 50 lakhs during preceding F.Y. &
b. 3 years not elapsed from the date of entering as incubate.
11. Services provided by non-profit entity (IMP)

• activities relating to the welfare of industrial/agricultural labour /farmers
• promotion of trade/industry/agriculture/art, science, literature, culture, sports,
education, social welfare, charitable activities and protection of environment, to its
own members against membership fee up to Rs. 1000/- per member per year
12. Service by non- profit entity to its own members by way of reimbursement of charges
or share of contribution –(IMP)
a. as a trade union;
b. for carrying out any exempt activity
c. up to Rs. 7,500 per month per member for sourcing of G/S from a third person for the
common use of its members in a Housing society
[Statutory dues i.e. property tax, electricity charges would be excluded while computing
the aforesaid monthly limit of Rs. 7,500]
13. Services by an organiser to any person in respect of a business exhibition held outside India
is exempt from GST
Clarification
1. if amount exceed 7500 then GST will payable on entire amt.
2. ceiling limit of 7500 to be checked separately for each residential apartment
3. RWA (residence welfare association) required to take registration only if Agg. T/o > 20 lakhs
(/10lakhs)
Which means even if monthly amt. > 7500 but T/o threshold not crossed NO GST
4. RWA would be entitled to take ITC of GST paid
Under IGST
1. Service by tour operator to foreign tourist in relation to tour conducted(imp) M18
Wholly outside India Partly in India and partly outside India

Exempt
To the extent of value of tour performed o/s India
However, exemption will be

• Proportionate value of tour operated outside
India (in days)
Or
• 50% of value charged
Whichever is less
Note: duration >12 hours shall be considered a day
Illustrations: A tour operator provides a tour operator service to a foreign tourist as follows: - a. 3 days in
India, 2 days in Nepal; Consideration charged for the entire tour: ₹ 1,00,000/- Exemption: ₹ 40,000/- (=
₹1,00,000/- x 2/5) or, ₹ 50,000/- (= 50% of ₹ 1,00,000/-) whichever is less, i.e., ₹ 40,000/-(i.e., Taxable value:
₹ 60,000/-)
2. Services received from service provider located in a non- taxable territory (NTT)by –
a) CG/SG/UT/LA/govt. authority/an individual
b) Entity reg. under 12AA/AB
c) By way of online education journal periodical to education institution i.e. providing degree as per
curriculum
d) a person located in NTT
Exception:
• [OIDAR Services] received by (a) or (b) (means taxable)
• transportation of goods by a vessel from a place outside India up to the customs clearance in india.
3. services imported by unit/developer in Special Economic Zone (SEZ) are exempt from IGST.
4. Import of service by UN/Specified international org. of US nation/foreign diplomatic
mission/consular post in INDIA/diplomatic agent/career consular officer

5. Service provided by intermediary when location of both supplier & recipient of goods are
outside India
6. Service by establishment of person in India to establishment of that person outside India
[establishment of distinct person] if place of supply outside India
7. Central govt. share of profit petroleum
Clarifications
1. Payment of honorarium to the Guest Anchors: Taxable

Subject to registration requirement
2. tickets purchased for transportation from one point to another whether ferry is owned/operated by a
private sector enterprise or PSU. Exempt
3. passenger Transport service by non-AC contract carriage exempt only if transportation taken at
predetermined route, if hired for specified period then exemption not available
4. GST on sanitation & conservancy services supplied to Army & other Central/State Govt. dept.
If not related to 243W/243G - not exempt
5. location charges/preferential location charges (PLC) paid upfront in addition to lease premium for long
term of land constitute part of upfront amt. & exempt
6. renting of truck/other freight vehicle with a driver for a period of time is service of renting of
transport vehicle with operator & not service of transportation of goods by road hence not exempt
7. Incentive paid by MeitY(govt.) to acquiring banks under Incentive scheme for promotion of RuPay Debit
Cards & low value BHIM-UPI transactions up to Rs.2000/-. However, it is not consideration paid by the
central government for any service supplied by the acquiring bank to CG. The incentive is in nature of
subsidy directly linked to the price of service & same does not form part of taxable value
STUDENT NOTE

CHAPTER: 8 REGISTRATION
Basics
As per charging section taxable person liable to collect tax
Who is taxable person??

• Any person who is registered or liable to registered u/s 22/24
Hence un registered person is taxable person if he is liable to register
So, who is liable to register??

• Section 22 person liable to register
• Section 24 compulsory registration
Other points
1. GST Registrations need to be taken State-wise & PAN based.
2. Single registration for all the taxes i.e. CGST/SGST/UTGST/IGST/Cesses.
3. Normally one state one registration is required even > 2 place of business in a state
However taxable person can take sperate registration
Advantages to a taxpayer who obtain registration under GST:

1. He is legally recognized as supplier of G/S.
2. He is legally authorized to collect taxes from customers & pass credit.
3. He can claim Input Tax Credit of taxes paid.
4. Registered person is eligible to apply for Government bids.
5. Registered person under GST can easily gain trust from customers.
AN OVERVIEW
SECTION 22 PERSON LIABLE TO REGISTERED SECTION 25 AMENDMENT OF REGISTRATION

SECTION 24 COMPULSORY REGISTRATION SECTION 26 CANCELLATION/SUSPENSION
SECTION 27 REVOCATION OF CANCELLATION
SECTION 25 PROCEDURE FOR REGISTRATION

SECTION 26 DEEMED REGISTRATION
SECTION 27 SPECIAL PROVISION FOR CTP & NRTP
SECTION 23 PERSON NOT LIABLE TO REGISTRATION

Sec 22: Person liable for registration

Every -supplier of goods/service obtain registration
Where -state from where taxable supply is made
When -if Agg. T/o exceed specified limit in a F.Y.
“Aggregate turnover”
All India basis of person having the same PAN
Total of outward supply of
• taxable supplies • Outward supply under RCM
• exempt supplies • Supplies between distinct person
• inter-State supplies • Supply made on behalf of principle
• exports of G/S
Excludes
• Inward supplies under RCM
• Taxes including cess under GST
NOTE:
Principal Goods send Registered job worker

for job work
Goods supplied post
completion of job work
T/o included in principal’s T/o

Not job work’s Buyer
Specified threshold limit for registration:
MT NAGMANI USA PTM All other State/Ut’s

• Mizoram • Uttarakhand, • Only services: 20 lakhs
• Tripura • Sikkim
• Nagaland • Both goods/services: 20 lakhs
• Arunachal Pradesh
• Manipur • Puducherry • Interstate goods: 20 lakhs
• Telangana
Rs 10 lakhs • Only supplying intra state
• Meghalaya
goods: 40 lakhs *
Rs 20 lakhs

Points to considered for threshold:
1. person considered making supply of goods even supply of service provided by way of such as
interest/discount on loan/advance.
2. * 40 lakh thresholds not available to Next(20/10lakh)

a) Person required to take compulsory registration (sec 24)
b) Person engaged in supply of Next items:
• ice-cream/edible ice
• pan masala/tobacco pdts or substitute
• fly ash bricks
• building bricks
• fossil meal bricks
• earthen/roofing tiles
3. If > 1 place of business covering > 1 state
lowest threshold applicable to any of those state will be relevant

however, state make exclusively exempt supply won’t be considered
4. Registration is required to made only in states from where taxable supply is made
5. In case business transfer due to succession/death/change in ownership
to another person as a going concern
transferee/successor to be registered from date of transfer/succession.

6. Business transfer due to two company’s amalgamation / de-merger
transferee to be registered from date of certificate of incorporation by ROC
Examples
1. Ram traders (Haryana-exclusively engaged in making intra state supply of shoes) Agg. T/o 30 lakhs
• Registration not required (limit applicable 40 lakhs)
2. Modi ltd. (Haryana – makes intra state supply of goods & service both) Agg. T/o 25 lakhs
• Registration required as limit applicable 20 lakhs
3. Salman traders has one shop in Nagaland (t/o 11 lakhs) & another shop in Haryana (t/o 28 lakhs) for
supply of bags
• As one shop in Nagaland making taxable supplies, entire limit will fall to 10 lakhs. so, registration
required in both states
4. Shivam enterprise supplies taxable goods intra state in Punjab (t/o 28 lakhs) and has a shop for alcohol
liquor for human consumption in Mizoram (t/o 14 lakhs)
• Since taxable supply not made from Mizoram, threshold limit will not fall to 10 lakhs
• Applicable limit 40 lakhs in this case
• So, registration required in Punjab (Agg. T/o 28+14= 42 lakhs) but no registration in Mizoram as
taxable supply not made from there

Sec 24: Compulsory registration (hona hi pdega)

I 5 CREARTION
1. Persons making Inter-State taxable supply

Exception:
a. Supply of taxable service up to 20/10 lakh
b. Notified handicraft & handmade goods up to 20/10 lakh
2. Person required to pay tax under u/s 9(5) ECO

3. Casual Taxable Persons (CTP) making taxable supply
Exception:
Notified handicraft & handmade goods up to 20/10 lakh
4. Person liable to pay tax under RCM (inward supply)

5. ECO required to collect tax at source (TCS) u/s 52
Person supplying goods & service through ECO where ECO required to collect Tax u/s 52(other than 9(5))
Note: threshold available in case of service through eco
6. Person acting as an Agent (issuing own invoice)

7. Dedicator of Tax at Source (TDS) u/s 51
8. Input Service Distributor (ISD),
9. Supplier OIDAR services from place outside India
10. Non-Resident Taxable Persons (NRTP)
Sec 23: Person not liable for registration

1. person engaged exclusively in non-taxable/exempt supply i.e. alcohol
2. agriculturist, to the extent of supply of produce from cultivation of land.
3. Persons making only RCM supplies (Suppliers).
4. person making inter-State supplies of services up to Rs. 20/10 lakhs
5. CTP/ Person making interstate supplies of handicraft/handmade goods up to 20/10 lakhs. ALREADY
Condition: person obtained PAN & generated an e-way bill DONE
6. Person making supplies services through ECO (other than u/s 9(5)) up to 20/10 lakhs.
Example
REGISTRATION REQUIRED OR NOT??

1. Agriculturist engaged in cultivation of wheat + trading of rice YES
2. Agriculturist engaged in cultivation of wheat + run a dairy YES
3. Agriculturist takes land on rent & cultivation done by servants on wages NO
4. Petrol pump selling engine oil with petrol YES

Sec 25: Procedure for registration
WHO WHERE WHEN

1. Person liable to registered u/s In every such state/Ut in which he Within 30 days from date on
22&24 is so liable which he becomes liable
2. Person making supply from Nearest coastal state/Ut on
territorial waters of India baseline
3. CTP/NRTP In every such state/Ut in which he At least 5 days prior to
is so liable commencement of business
NOTE:
1. Registration required sate wise (not a centralise registration)

2. > 1 place in a state
Sperate registration Single registration
Sperate GSTIN Declare a place as principal place of business (PPOB)

& other as APOB
3. PAN is mandatory for registration except NRTP can be granted reg. on basis of passport &
TDS detector can use TAN.
4. If person taken registration Voluntary he is liable to pay tax
5. If any unit in SEZ area & non-SEZ area in same state
Sperate registration required for both
6. person who is liable but fails to obtain registration, the proper officer may, may register such person
SUO MOTO (himself) on temporary basis
within 90 days
submit application file appeal

for registration
In favour Against
No registration Apply in 30 days *
*registration effective from date of order by po granting regn
7. Effective date of registration
Application files from Liability date Effective date of registration

Within 30 Days Date on which becomes liable to register
After 30 Days date of grant of registration
Voluntary registration
Example:
Rahul ltd. Exceed t/o of 20 lakhs on 01/11/21 applied for Regn on 20/11/21 & RC granted on 5/12/21
Effective date of registration = 1/11/21
Or if application made on 2/12/21: Eff date will be 5/12/21

Procedure for registration
Procedure apply to every person except NRTP/TDS Deducter u/s 51/TCS collector u/s 52/OIDAR service
provider
Application to be made in GST REG-01
PART: A
- PAN: Validated online by CBDT database Comment: Mobile n. & email ID will not be
Also verified through separate OTP sent to mobile number general one. Only linked with PAN will be
& e-mail address linked to PAN verified.
- Select: state/Ut
Upon submission of part A, temporary reference (TRN) number is generated
PART B
Use TRN to open part B & fill detail relating to constitution of business, PPOB, APOB, G/S, authorized signatory,
Aadhar authentication
Then acknowledgment generated & application forward to proper office
Note: Bank Account may be furnished after obtaining registration certificate (RC)*
• within 45 days from grant of RC
or
• due date of furnishing first return
whichever is earlier
* not for TDS/TCS/Suo moto registration they have to furnished at the time of registration
Registration & Aadhar authentication
1. Aadhar Authentication (AA) under GST (just read)

Objective: to control fake invoice, dummy address registration & multiple registration at same place
Registered person for new registration Non- applicability of AA
Existing registered person

Individual other than individual • person not a
shall undergo authentication
citizen of India
of Aadhaar number for
• Department/
these purposes: •Karta (HUF)
Himself establishment of
1. Application for •Managing
SG/CG
revocation of Director/whole time
cancellation of • Local authority
Director (Co.)
• Statutory body
registration • Partners (Firm)
• Public Sector
2. For filling refund • Members of Managing
application Undertaking
Committee (Aop)
3. Refund on IGST paid on • A person applying
• Board of Trustees
goods exported outside for Unique Identity
(Trust)
India (UIN) Number
• authorized
If fail Regn became invalid representative
2. Registration & Aadhar authentication
Application + AA opted Application not opted for AA

(PART A & PART B) Date of application: date of
submission
AA Successful done with 15 days **Undergone AA identified based on AA Failed with 15 days
Date of application: date of AA data analysis & risk parameters Date of application: 15th day
to carry out site verification From date of submission
No deficiency in Deficiency
application
No deficiency in Deficiency
application • Notice within
Physical verification of 30 days from
place of business or application
RC Granted within 7 • Notice within 7 wds Verification of such doc. • Clarification by
working days • Clarification by Deemed fit by PO Applicant
(If not deemed Regn Applicant within 7
within 7 wds
wihin 7 wds) wds RC Granted within 30 from
date of application (If not
deemed Regn wihin 30)
Proper office PO satisfied

Not satisfied
RC granted within 7
Rejected PO satisfied
wds Proper office
(reason) (If not deemed Not satisfied
RC granted within 7
Regn wihin 7 wds)
wds
Rejected
(If not deemed
(reason)
Regn wihin 7 wds)
(IMP.)
**Applicant who opted for AA & identified on common portal, based on data analysis and risk parameters
shall be followed by (Pilot project in Gujarat)
1) biometric-based Aadhaar authentication &
2) taking photograph
• of individual applicant or
• of such individuals where applicant is not individual (refer list on prev. page)
3) along with verification of original copy of documents uploaded with application in Form GST REG-01
at one of notified Facilitation Centres.
Application deemed to complete only after completion of the process laid down hereunder.
3. Goods & service identification number (GST IN)

Issued with 3 days of grant of RC
15 DIGITS
• Display RC in a prominent location at PPOB/APOB & display GST IN on the name board at PPOB/APOB

4. Grant of Registration to TDS deductor (sec 51) or TCS collector (sec 52)
• Shall apply in GST REG-07.
• PO to take action within 3 working days
• If no physical presence in State or UT
Mention name of said state in PART A
Name of State of PPOB in PART B Both may be different
• Registration can be canceled when liab. To collect /deduct tax no longer
5. In case of an already registered persons

If Aadhaar number is not assigned to alternate means has been prescribed as follows:
such person can furnish following documents
1) his/ her Aadhaar Enrolment ID slip; and
2) Bank passbook with photograph/Voter id card/Passport/Driving license
once Aadhaar number is allotted, shall undergo AA within 30 days allotment
STUDENT NOTE

Sec 26: Deemed registration

• Registration under SGST/ UTGST deemed to be registration under CGST
• Cancellation under SGST/ UTGST deemed to be cancelation under CGST
Sec 27: Special provisions for CTP & NRTP (SMQ)
• A person who occasionally undertakes transactions whether as principal/agent/other capacity
In a State/UT where he has no fixed POB but who has no fixed POB or residence in India
In the course or furtherance of business (business test is missing)
CTP NRTP
REGISTRATION REGISTRATION
• Compulsory reg. U/s 24 • Compulsory reg. U/s 24
• Registration 5 days before commencement of • Registration 5 days before commencement
business of business
• Form REG-01 • Form REG-09
• PAN required • Valid Passport required
• Composition scheme N.A. • Composition scheme N.A.
• ITC on input /input service/capital goods • ITC only on imported goods
available
• Required to submit advance tax at time of • Required to submit advance tax at time of
submission of application submission of application
Other points:
1. Registration valid for:
• Time Period applied for
or
• 90 days
whichever is lower
[further extendable by 90 days]
2. In cases of long running exhibitions (> 180 days)

cannot be treated as a CTP
• have to obtain registration as a normal taxable person

(can surrender registration once exhibition is completed)
STUDENT NOTE

Sec 28: Amendment of registration (MTP M18 + SMQ)
Core Fields Non- Core Fields Change in PAN/State or Ut
Apply within 15 days of such Approval not required New registration

changes Directly submit application
& RC stands amended
PO to take action within 15
working days.
If notice reply within 7 working • Core fields: mobile n./e-mail id

days
• Non-core fields: legal name of
PO take action within 7 working business/address/
days/reply is not satisfactory, admit or remove partner or director
application is rejected
Note:
If po fails to take action:
a) within 15 working days from submission of application
or
b) within 7 working days from date of reply to Notice
deemed to be amended
Sec 29: Cancellation/suspension of registration
Voluntary cancellation SUO MOTO cancellation

By registered person by department
1. Circumstance to cancel registration

1) Business discontinued/transferred for any reason incl. Death/amalgamated/demerged/disposed off
2) Change in constitution of business
3) No longer liable to registered u/s 22/24
4) Intend to opt out of voluntary registration
2. Circumstance to cancel registration by dept. (PO) (SMQ, PEQ N19 )

1) Registration by fraud: Registration was obtained by means of fraud/wilful misstatement/suppression of
facts.
2) Voluntarily registered: person not commenced business within 6 months from date of registration
3) Not filling of return: A Composition taxpayer not file return beyond three months from due date
4) If contravened these provisions:
a) Doesn’t commenced business from regd. Place
b) Violate anti profiteering provisions * Proper officer
shall not cancel
c) Doesn’t provide bank detail within prescribed time
without
d) Issue invoice/bill without supply of G/S opportunity of
e) Avail ITC in violation of act being heard.
f) Monthly return filler fails to file return for continuous period of six months
g) Quarterly return filler fails to file return for 2 tax periods
3. Suspension of registration
Applied for cancellation suspend the registration
While pendency of proceeding related to cancellation
CASE EFFECTIVE DATE OF SUSPENSION
1 . Registered person • Date of submission

applied for cancellation Or
• Date from which cancellation
sought
whichever is later
2. Cancellation initiated by
department Date determined by PO
Note:
1. While registration has been suspended regd. Person shall not
• make any taxable supply (can’t issue tax invoice)
• required to furnish any return
2. suspension shall be revoked upon completion of the cancellation proceeding
with effect from date of suspension

(provision of revised tax invoice& first return shall apply during suspension period)
3. Where registration suspended due to non-filing of return shall be deemed to be revoked upon
furnishing of all pending returns
4. Cancellation of registration procedure
by registered person By department
1. Apply within 30 days of occurrence of Satisfactory

event Give at least 7-day notice (OBH) drop proceedings
2. Proper officer issue order of
cancellation within 30 days Not satisfactory
3. Detail to be submit Order within 30 days from receipt of reply
• Input held in stock (RM/SFG/FG)
• Capital goods *However, if return filed, due to non-filling of which
[on date of cancellation of registration] action taken
Drop the proceeding

Note: Note: cancellation of Tax deductor/collector
• taxpayer not allowed to file return post cancellation period reg. was possible only on request made in
• Regn can be canceled by retrospective effect writing by a person to whom registration has
been granted/on inquiry/pursuant to any
• Cancellation not affect liability of reg person prior to cancellation proceedings

Sec 30: Revocation of cancellation of registration

procedure for revocation of cancellation when SUO MOTO cancelled by po
within 30 days (+ AC/JC 30 days + Commi. 30 days)
can be extended due to sufficient cause
Apply for revocation to PO
within 30 days
1. Po satisfied 2. Po not satisfied

Revoke cancellation
Issue show case
notice
7 days
3. When registration was cancelled due to failure to file return:
Clarification by
Person has to file all pending return along with all dues before
taxable person
applying for revocation
30 days
Po to accept/dispose
the application
Case 1: date of order is effective cancellation date
Return for this period to be filled Return for this period to be filled within
before applying for revocation 30 days from revocation order
Date from which Date of order of Date of order of

return not furnished cancellation revocation of cancellation
(effective date of
cancellation)
Case 2: registration cancelled with retrospective effect
Return for entire period to be filled

within 30 days from revocation order
Date from which Date of order of Date of order of

return not furnished cancellation revocation of cancellation
(effective date of
cancellation)
STUDENT NOTE

UIN [Unique identification number]
1) Who
• Specialized agency of United Nations/any Multilateral Financial Institution under UN
• Consulate
• Embassy
2) PURPOSE
• TO OBTAIN refund of taxes paid on supplies of G/S to them
3) What
• Centralized number not states wise (single Regn for entire India)
• UIN holder not registered person hence not taxable
4) How to get it
• Submission of application
• Recommendation from MEA & GOI
• Within 3 days of submission of application

UIN allotted
STUDENT NOTE

CHAPTER: 9 INPUT TAX CREDIT(ITC)
The GST promises seamless credit on G/S across the entire supply chain
How ITC FLOWS??
Input Service
Inputs Input Business Output
Capital Goods
10000 12000
+ 1800 (@ 18% GST) + 2160 (@ 18% GST)
11800 14600
Tax liability 2160

̶ Already paid (ITC) (1800)
Tax to be paid 360
How IT WORK ON GST PORTAL??

• Supplier(I/IS/CG) files GSTR-1 with detail of sale made Rs 10000 & tax collected 1800 on it
& pay to govt by filling GSTR-3B
• After filling of detail by supplier it reflects in GSTR-2B of businessman & t/f to E-credit ledger
• So, when business man make sale he can use this credit & pay remain amt. to govt.
i.e. (2160-1800[ITC]=360)
TWO TERMS NORMALLY USED??

1. ITC Availment: means taxpayer claimed ITC & credited to his E- credit ledger
2. ITC Utilisation: Using the ITC availed to make payment
Used or intended to be
1. Input: any goods other than capital goods
used in the course or
2. Capital goods: goods, value of which capitalised in books of accounts
furtherance of business
3. Input service: any service
4. Input Tax: means CGST/SGST/IGST/UTGST charged on supply of G/S made to registered person
Includes Doesn’t include

• The tax paid on Reverse Charge (RCM) basis • Tax paid under Composition levy
• IGST charged on import of goods

Sec 16: Eligibility and conditions for taking input tax credit
1. Eligibility criteria:
• Should be a registered person
• Goods/service to be used for business purpose
2. Conditions for availment of ITC
a) Possession of tax paying document:

Mandatary detail Required
Valid tax paying doc.
on tax paying doc.
• Tax invoice/ debit note/ revised invoice a) Details of tax
• Self- invoice (RCM) b) Descriptions of G/S
• Bill of entry (in case of import) c) value of supply
• Doc. By ISD. d) GSTIN
e) place of supply.
b) Receipt of goods/service
• he has received the goods or services
Note:
1. In case goods received in lots or instalments
ITC can be availed on receipt of last lot or instalment.
2. “Bill to Ship to” Model

• goods are delivered to a third party on the direction of the registered
person
• in this case goods deemed to be received
c) Tax paid to govt:

• has been actually paid to the Government by supplier
Availment of Input Tax Credit [Sec 41]:
1) recipient can take ITC on self-assessment basis in his return & such amount shall be credited to his E-
credit ledger.
2) However, if tax payable on such supplies is not paid by supplier, then, such ITC shall be reversed by the
recipient along with applicable interest (if ITC is utilised).
3) Further, when supplier subsequently makes payment of tax recipient may re-avail ITC reversed by him
d) Filling of return
• Tax payer to file return u/s 39 presently GSTR-3B to avail ITC
e) Restricted ITC
1. If tax has been paid & demand is confirmed because of fraud
2. No ITC shall be availed in respect of invoices/debit notes of which detail required to furnished u/s 37(1)-
Unless:
(i) details of such invoices/debit notes furnished by supplier in GSTR-1 or invoice furnishing facility (IFF)
&
(ii) details communicated to registered person in GSTR-2B
(iii) ITC details communicated under Section 38(GSTR-2B) have not been restricted.
So, invoice only reflecting in 2B can be availed for ITC
f) ITC in respect of the said supply has not been blocked u/s 17(5)
Discuss in detail
Note:
Payment to supplier shall be made within 180 days from date of issue of invoice
1. Default: Failure by Recipient to pay (VALUE+TAX) to the supplier within 180 days from Invoice date.
2. Consequence: Amount equal to ITC availed by recipient + Interest @ 18% P.a. (from date if utilization to
payment to govt.) shall be added to output tax liability or reverse it. (GSTR-3B of tax period when 180 days
end)
3. Regain of Credit: Regain when payment is made (no time limit)
4. Non-Applicability: This provision not applicable
a) Tax payable under RCM
b) Deemed supplies
c) addition to value being payment made by recipient to third party
In case part payment has been made, proportionate credit will be allowed.
e.g.
MR. Popatlal received goods & invoice on 15/4/21 & he has taken ITC in April month return filled on 20/5/21
ITC amount 1000 the payment was made to supplier on 26/1/23
Determine interest payable on reversal of ITC
Sol: Note: date of avialment considered to be
Date of invoice 15/4/21 date of utilisation
Date of taking ITC 20/5/21
180 days expired in 12 oct 2021
So, date of reversal of ITC = 20/10/21
(Sep. month return)
Interest = 1000 × 18% ×153 (from 20/5/21 to 20/10/21) = Rs 75.45 (approx.)

365
3. GST part on purchase of capital goods
Capitalise & take

Depreciation under or Take ITC
IT ACT
• any one option can be taken (i.e. if taken Depn on it then ITC not allowed)
4. Time limit for availing ITC:

• 30th NOV of Next the year to which such invoice/debit note pertains
or
• date of filing annual return
whichever is earlier.
EXAMPLE:
• Invoice date 02/02/2020 & further additional changes through debit note dated 03/04/2020
S0,
• ITC on original invoice can be taken by 30/11/2020 or actual date of annual return
• ITC on debit note can be taken by 30/11/2021 or actual date of annual return

Sec 17: Apportionment of credit & block credits

1. Blocked credits: Sec 17(5)
Reason: to avoid administration burden of controlling the actual use of G/S which may be easily used for
business & private purpose
1. Motor vehicles designed to carry up to 13 passengers (including driver), Vessels and aircrafts
Motor Vehicle Aircraft/vessel

Passenger Goods &
(railway, bicycle,2/3wheller up to No ITC
<13 >13 25cc, special purpose vehicle i.e. lifts)
EXCEPT when used for [STT]
ITC available 1. further supply
No ITC 2. transportation of passengers/goods
3. providing training for navigating/ flying
Except when used for [STT]
1. making further supply of motor vehicles
2. transportation of passengers
3. training for driving
Insurance, servicing, repair and maintenance (IRSM)
IS motor vehicle/aircraft/vessel eligible for ITC??
Yes No
IRSM eligible for ITC IRSM not eligible for ITC
However, IRSM eligible in Next cases [MI]

1. Manufacture of such motor vehicle/vessel/aircraft
2. insurance service provider of such motor
vehicle/vessel/aircraft
Note: above provision applies whether buy/lease/rental/hire

Example:
1. Authorized dealer of motor vehicle ITC Available
2. Trucks used by manufacturer for giving delivery of goods to customer ITC Available
3. Car used by call center for bringing employee to work No ITC
4. Lift used inside the factory i.e. special purpose vehicle ITC Available
STUDENT NOTE

2. Goods /services used in business not eligible for ITC (mostly for employee, director, Guest etc.)
(A) Food/beauty/health (B) (C)

1. Food & beverages Membership of a club, Travel benefits to employees
2. Outdoor catering health and fitness centers on vacation such as LTC
3. Beauty Treatment or home travel concession
4. Cosmetic plastic surgery
5. Life/health insurance/ No ITC No ITC
Health Services
6. Leasing, renting, hiring of
Mv /vessel/ aircraft
No ITC
Except when used for [OC]

1. Same category of outward taxable
supply
2. Element of composite/mixed supply
NOTE: When such services are provided by an employer under a statutory obligation
ITC available
EXAMPLES:
1. Catering service taken by modi ltd. for event organized for its customers NO ITC
2. Director of company take membership of club fee paid by company NO ITC
3. Catering service taken for free canteen in factory because of factory act requirement ITC Available
4. Company avail service of travel agency for free vacation of its top employees NO ITC
3. Goods/services (inward supply) used for personal consumption

4. Tax paid (on inward supply) under composition scheme
5. Tax paid u/s 74 (fraud), 129(seizure goods in transit) and 130 (Confiscation of goods)
6. Any Goods or services (in India) purchased by NRTP except goods imported by him.
Note: exception only available for imported goods, not service
7. Goods that are lost, stolen, destroyed, written off or disposed of by way of gift or free samples:
Goods
Lost/destroyed/stolen/written off or disposed of by way of gift or free samples:
Transit loss, store loss, process loss
If ITC taken If ITC not taken
If ITC taken If ITC not taken Supply -Sche I-Para I Don’t take it
C Value - Rule 30
Reverse the ITC or Don’t take it ITC - available
add in output tax
liability

8. CONSTRUCTION
Work Contract Goods/Service

For any Immovable property [except: plant & machinery]
Except: obtained to make further supply
Note:
1. Plant & machinery means
• Apparatus/equipment/machinery
• fixed to earth by foundation ITC Available
• Including such structure/foundation
Not considered as P&M
• Land/building/other civil structures
• telecommunication towers
• pipelines laid outside the factory premises NO ITC
(Inside factory considered as P&M imp.)
2. Construction
Repair /construction
• Capitalized in books: No ITC
• Not capitalized in books: ITC available
i.e.
work contract service taken by software co. for its office ITC is blocked
work contract for manufacturing pipeline outside factory ITC is blocked
Clarification & special cases

1. Buy one get one free: Not any goods given free
It’s a supply of two items for a single price, hence ITC available
2. ITC reversal in case of medicine expired/returned
Regular scheme Composition scheme

distributor distributor
Considered as Considered as
fresh supply Fresh supply
Issue fresh invoice Issue bill of supply &

(wholes/MFG can pay composition tax
take ITC)
Note: ITC not allowed
Note: If such item to wholes/MFG
destroyed: reverse
ITC taken

Reversal of ITC in case of non-payment of tax by supplier & re-avialment thereof. (new rule 37A)
1) Where ITC taken by registered person in GSTR-3B for tax period in respect of invoice details of which
furnished by supplier in GSTR-1/IFF.
but GSTR-3B for that tax period has not been furnished by supplier
till 30th September following end of F.Y.
in which ITC in respect of such invoice has been availed
amt. of ITC shall be reversed by regd person,
while furnishing GSTR-3B on or before 30th November following end of F.Y.
2) However, where ITC not reversed by regd. person in GSTR-3B on or before 30th November following end of
F.Y.
such amount shall be payable along with interest (u/s)50.
3) When supplier file GSTR-3B then regd. person retake ITC in GSTR-3B for tax period just after it
Example:
Paridhi Ltd. Is registered manufacturer purchased following goods during month of January
S. No. Particulars GST paid (₹)
1. Capital goods purchased on which depreciation has been taken on full value 15,000
including input tax thereon
2. Goods purchased from Rupesh Enterprises 20,000
(Rupesh Enterprises sent invoice in month of January, but goods were received in month
of April)
3. Car purchased for making further supply of such car. Such car is destroyed in 30,000
accident while being used for test drive by potential customers
4. Goods used for setting up telecommunication towers being immovable property 50,000
5. Goods purchased from Sumo Ltd. 10,000
(Full payment has been made by Paridhi Ltd. to Sumo Ltd. against such supply, but tax has
been deposited by Sumo Ltd. in April)
6. Truck purchased for delivery of output goods 80,000
Determine ITC available
Solution:
Computation of ITC available with Paridhi Ltd. in January
S. No. Particulars Amount (₹)
1. Capital goods Nil
[Since depreciation claimed on tax component of value of capital goods, ITC of such tax cannot be
availed]
2. Goods purchased from Rupesh Enterprises Nil
[ITC in respect of goods not received cannot be availed. Since goods received in month of April,
ITC thereon can be availed in April and not January even though invoice for same received in
January.]
3. Cars purchased for making further supply Nil
[Though ITC on motor vehicles used for further supply of such vehicles is not blocked, ITC on
goods destroyed for whichever reason is blocked]
4. Goods used for setting telecommunication towers Nil
[ITC on goods used for construction of immovable property on his own account is blocked even
when such goods are used in course/ furtherance of business]
5. Goods purchased from Sumo Ltd. 10,000
[ITC can be claimed provisionally in January since all conditions necessary for availing same
complied with. However, claim will get confirmed only when tax charged in respect of such supply
has been actually paid to Govt.]
6. Trucks purchased for delivery of output goods 80,000
[ITC on motor vehicles used for transportation of goods is not blocked]
Total ITC available with Paridhi Ltd. 90,000

2. Apportionment of credit:
ITC ON
INPUT/INPUT SERVICE /CAPITAL GOODS
Exclusively for Exclusively for Common supplies

taxable supply non-business (exempt+
& zero rate purpose/exempt non-business+
supply business+ taxable
ITC allowed +ZRS)
ITC not allowed
ITC only available
for portion of
Note: taxable & ZRS
Zero-Rated Supply means:
• Export of G/S
• Supply of G/S to Special Economic Zone (SEZ) developer/unit.
Exempt supply means: for purpose of ITC apportionment

As per definition =
1. Nil rate +
ES Shall not include:
2. exempt +
1. Interest/discount income except in case of
3. non-taxable + Bank/FI
Additional by sec 17(3) = 2. service of transportation of goods by vessel
1. Supply under RCM + from India to o/s India
2. transaction in security (1% of sale value) + 3. Taxes paid Excise/CST/VAT
3. Sale of Land & building (SDV) + 4. value of supply of duty scripts
[Do not take other SIII activates as ES]
Special provision for banking company/financial institution/NBFC

1. COMMON CREDIT
Takes proportionate credit or Avail 50% eligible input tax credit

& rest shall lapse
2. once exercised shall not be withdrawn during remaining part of year
3. However, 100% credit available when supplies made by one registered person to another registered
person having the same PAN (distinct person)
STUDENT NOTE

Rule 42: Manner of distribution of ITC w.r.t. input + input service IT: Input Tax I: Input
IS: Input service CG: Capital Goods
STEP 1 T
Total IT on I + IS
T1 T2 T3 C1 STEP 2
IT on I + IS used IT on I + IS used Block credit u/s 17(5) Remaining ITC credited to

exclusively for non- exclusively for ECrL = T – (T1 + T2 + T3)
business purpose exempt supply
Credit Attributable to I + IS used T4 STEP 3 C2

exclusively in taxable supply + ZRS
Common Credit = C1 – T4
D1 D2 C3 STEP 4
Credit Attributable to exempt supplies: Credit Attributable to non-business Remaining Common Credit
D1 = C2 × E/F purpose: = C2 – (D1 + D2)
E: value of ES during Tax period If common I +IS used partly for
F: T/o in state during Tax period business + non-business purpose Eligible ITC attributable to
D2 = C2 × 5% business + taxable supply + ZRS
exclude taxes Excise/CST/VAT Note: calculate if specifically asked
Include interest/loan/advance
Note: if no E or F during tax period
value/T/o for last tax period may be used
So, total ITC available: T4 + D3

Ineligible ITC Total ITC not Available: T1 + T2 + T3 + D1 + D2
(to be added in output tax liability)
NOTE: Common credit reversal carried out monthly basis. After F.Y an annual calculation carried out (D1/D2)
> total of monthly D1 + D2 < total of monthly D1 + D2

ITC excess claimed ITC short claimed
Add to output tax liability Claim as credit

Incl. interest @ 18% p.a. Till Sep. month
[1st April to date of addition]
STUDENT NOTE

Example:
X, manufacturer of roofing sheets, has total ITC of 1,60,000 available with him on 01st June. He provides following information
pertaining to goods and services procured during month of June:
1. Input tax on raw materials is 40,000. raw material is used for both taxable and exempt activity.
2. Input tax on catering services procured from ‘Harvest Caterers’ in connection with his
housewarming ceremony is ₹ 10,000.
3. Input tax on raw materials used in manufacture of exempt supplies of 2 lakh is 20,000.
4. Input tax on cosmetic and plastic surgery of manager of factory is 30,000. Total turnover for month of June is ₹ 60 lakh exclusive
of tax.
Compute ITC available and net GST payable from Cash Ledger. Rate of GST is 18% (Ignore CGST, SGST or IGST for simplicity).
Solution:
Computation of ITC available and net GST payable from Cash Ledger for month of June
GST on taxable turnover for month of June [₹ 60,00,000 × 18%] 10,80,000
Less: ITC available as on 30th June in terms of rule 42
ITC available in Credit Ledger on 1st June ₹ 1,60,000
Add: Total ITC credited to Credit Ledger in month of June [Refer working note below] ₹ 40,000
Less: ITC out of common credit attributable to exempt supply [Refer working note]
(₹ 1,290) 1,98,710
Net GST payable from Electronic Cash Ledger 8,81,290
Working Note
Computation of ITC (out of common credit) attributable to exempt supplies
Input tax on raw materials [Note1] 40,000
Input tax on catering for housewarming [Note 2] Nil
Input tax on inputs contained in exempt supplies [Note 3] Nil
Input tax on cosmetic and plastic surgery of CEO of company [Note 4] Nil
Total ITC credited to the Electronic Credit Ledger in terms of rule 42 in the month of June 40,000
Common credit [Note 5] 40,000

ITC attributable towards exempt supplies [Note 6] 1,290
Notes:
1. Being used in course/furtherance of business, input tax on raw materials is available and credited to Credit Ledger
2. ITC on outdoor catering is blocked, if same is not used for making outward supply of outdoor catering/as taxable composite/mixed
supply. Hence, same is not credited to Credit Ledger
3. Input tax on inputs used for making exempt supplies is not available as ITC and thus, not credited to Credit Ledger
4. ITC on cosmetic and plastic surgery is blocked, if same not used for making same category of outward supply/as taxable composite/
mixed supply. Hence, same is not credited to Credit Ledger
5. Since there are no inputs and input services which are used exclusively for effecting taxable supplies, the entire ITC credited to
Electronic Credit Ledger, i.e. ₹ 40,000 will be the common credit [Rule 42].
6. ITC attributable towards exempt supplies = Common credit x (Aggregate value of exempt supplies during the tax period / Total
turnover during the tax period)
= ₹ 40,000 × ₹ 2,00,000/ ₹ 62,00,000 - (rounded off)
= ₹ 1,290
STUDENT NOTE

Rule 43: Manner of distribution of ITC w.r.t. CG’S Note: life of capital goods extends UP to 5 yr. (60M)
Total input tax (IT) on capital goods (CG)
1 STEP 1 2 3
IT on CG used IT on CG used A IT on CG earlier covered

exclusively for non- exclusive for taxable under 2 but subsequently
business/exempt supply + ZRS in 3
IT on CG common used:
supply Note: ITC already taken
• IT tax on capital goods
hence not to be t/f to ECrL
Credit to ECrL purchased during month
ITC not allowed • IT on CG* earlier covered
under 1 but subsequently
get covered under 3
TC STEP 2
*Tie
It shall be credited to ECrL
Common credit on CG
Payment attributable to TC = ∑ A
exempted period:
When CG earlier cover under IN GST common credit on CG are initially availed fully & then monthly
1 t/f to 3 basis credit attributable to exempt supply added to output tax liability
Amt. to be added to output
tax liability =
STEP 3 Tm
5% per Qtr. (calendar) or part
thereof
Common credit of CG for a tax period during their entire life
Tm = TC/60
Te Common credit attributable to exempt supply

STEP 4
added to output tax liability Te = Tm × E/F
Example:
With help of info given below in respect of manufacturer for month of September, compute ITC credited to Credit Ledger. Also,
compute amount of ITC added to output tax liability for September. Ignore interest, if any
Outward supply of taxable goods (exclusive of taxes) 70,000
Outward supply of exempt goods 40,000
Total turnover 1,10,000
Inward supplies GST paid (₹)
Capital goods used exclusively for taxable outward supply 2,000
Capital goods used exclusively for exempt outward supply 1,800
Capital goods used for both taxable and exempt outward supply 4,200
Solution:
Computation of ITC credited to Credit Ledger and amount of ITC added to output tax liability for September
Particulars ITC (₹)
Capital goods used exclusively for taxable supply [Since used exclusively for taxable supply, full ITC is available 2,000
Capital goods used exclusively for exempt supply, ITC is not available Nil
Capital goods used for both taxable and exempt supply -Common credit (Tc) 4200
Total ITC credited to Electronic Credit Ledger for month of September 6,200
Common credit for month of September (Tm) 70
= Tc ÷ 60 = 4,200 ÷ 60 [Rule 43]
Common credit attributable to exempt supplies in a month (Te) = (E ÷ F) x Tm where, 25.45
‘E’ is aggregate value of exempt supplies, made, during tax period, and
‘F’ is total turnover in State during tax period
= (40,000/1,10,000) × ₹ 70 (rounded off)
Amount to be added to output tax liability for September 25.45
Sec 18: Credit in special circumstances
Remember
Effective date of registration
Application files from Liability date Effective date of registration
Within 30 Days Date on which becomes liable to register
After 30 Days Date of grant of registration
Voluntary registration
Example:
Rahul ltd. Exceed t/o of 20 lakhs on 01/11/21 applied for Regn on 20/11/21 & RC granted on 5/12/21
Effective date of registration = 1/11/21
Or if application made on 2/12/21: Eff date will be 5/12/21
STUDENT NOTE

(A) SPECIAL CASES OF AVIALMEMNT OF CREDIT
1. Apply for registration 2. Voluntary 3. Composition 4. Exempt supply

Within 30 days Registration To Regular Scheme To Taxable supply
Credit entitled Credit entitled

On On
Input as RM/SFG/FG Input as RM/SFG/FG

Capital goods
Day immediately Day immediately

Day immediately Day immediately
preceding the date preceding The Date
Preceding the preceding date the
from which liable on which supply
Date of on which liable to
to pay tax became taxable
registration pay tax under
regular scheme
[however, ITC can be availed only if invoice is not older than 1 year & no ITC for input service]
Note:
1. In case of capital goods
ITC = total ITC – 5% for each quarter/ part of quarter (from date of invoice)
2. If person failed to apply for reg. within 30 days then he is not eligible to take such ITC.
3. Condition to avail credit:
a) File electronic Declaration within 30 days from relevant date contains detail of I/IS/CG
b) If aggregate credit > 2,00,000 – detail to be certified by CA/CMA
(B) SPECIAL CASES OF REVERSAL OF CREDIT
1. Cancellation of 2. Regular Scheme 3. Taxable supply 4. Supply of capital good

Registration To Composition To Exempt supply on which ITC taken
In all 3 cases same procedure
How to reverse 1. Amount to be paid

Amt to be reversed is • ITC - 5% per quarter
equivalent to ITC on: or part of quarter
2. Input
- Input as RM/SFG/FG (from invoice)
a) If invoice available: proportionate
- Capital goods • GST on transaction
reversal based on invoice
On day preceding the date of: value
b) If invoice not available: based on
• Cancellation of reg. Whichever is higher
prevailing market price with due
• Switchover
certification from CA/CMA
• Date of exemption (In case of bricks/
3. Capital goods
Reversal of ITC for remaining useful life modules/die/jugs
(in months) [always 5 years total life] /fixtures supplied as
Note: reversal Amt. added to output a scrap transaction
Tax liability & balance lapse. value only can be taken)

Example for capital goods treatment: Example:

• Capital goods have been in use for 4 years, 6 • Mr. ram purchased machine RS 20
month and 15 days. lakhs @ 18% GST on 14/9/21
• The useful remaining life in months= 5 months • He sold this machine on 7/5/23 for 10
ignoring a part of the month lakhs
• Input tax credit taken on such capital A) tax on transaction value
goods= 10000 = 10lakhs × 18%=180000
Input tax credit attributable to remaining useful B) 20lakhs × 18% - 360000 × 5% × 8
life= 10000 multiplied by 5/60= 833.33 quarter
= 260000 – 144000 = 216000 Higher
(C) Transfer of ITC on account of change in the constitution
In case of In case of
Sale/amalgamation/ Demerger
lease/transfer of the
business Registered person
apportions his ITC
The Registered person in ratio of Value of
shall transfer his asset transferred to
unutilized ITC in ECL demerged unit
ledger to transferee
Note:
“Value of assets” means: the value of the entire assets of the business, whether or not input tax credit has
been availed thereon
Conditions
1. Reg. person to provide detail of such reconstitution in form ITC 02
2. Certification of transfer of liabilities from CA/CMA
3. Acceptance of transferred credit by transferee on common portal
4. Transfer would be state wise not all India level
5. inputs & capital goods so transferred are duly accounted by transferee in his books of a/c
6. Transfer of ITC on obtaining sperate registration for multiple place of business within a state /Ut
ITC can be transferred in ratio of value of asset within 30 days
EXAMPLE:
• A company babu ltd. is registered in two states:
Haryana: Asset 40 crore (10 crore transfer to Sona ltd.)
Gujrat: Asset 60 crore (30 crore transfer to Sona ltd.)
Total: Assets 100 crore (40 crore transfer to Sona ltd.)
• On happening of above demerger proportion of ITC transferred to Sona ltd. Shall be calculated state wise
• So,
Haryana = 10/40 = 25% ITC transferred in Haryana
Gujarat = 30/60 = 50% ITC transferred in Gujrat
[warning do not calculate on all India basis 40/100 = 40 %]

Sec 20: Distribution of credit by Input Service Distributor

Input service Distributor
CORPORATE OFFICE ISD POB 1
Under Same PAN

Receipt of tax invoice for POB 2
input service by ISD
i.e. IT service, security
POB 3
ITC Available To ISD T/f ITC
NO use of ITC as output
Tax lies at business places POB 4
ISD is an office of business which receive tax invoice for input service & distribute available ITC to other branch
office of same business
Compulsory registration: ISD Required to obtain sperate registration as ISD
Distribution of credit:
ITC specific to ITC attributable to > 1 ITC attributable to all

particular recipient recipient recipient
Distributed to such
specific recipient
T/0 of recipient
ITC to be distributed = T/o of all recipient to which
ITC relates
Imp points:
• T/o exclude Excise/VAT/CST
• T/o to be taken of previous F.Y.
If not available, then last Qtr. prior to month of distribution
Note:
1. Eligible as well as ineligible credit to be distributed
2. ITC distribution even recipient unregistered or making exempt supply
Manner of distribution of ITC:

• Credit of IGST Distributed as Credit of IGST
Recipient & ISD in
• Credit of SGST/UTGST same state
ITC in same category
of tax
• Credit of CGST Recipient & ISD in ITC as IGST

sperate state
Other points:
1. ITC available to be distributed in same month
2. In case ITC reduced credit note to be issued
Same will be reversed in same ratio in which it is originally distributed
3. If ITC reversed due to CN > ITC distributed: excess added as output tax liability
4. In case debit note received subsequently distributed as normal
5. ISD can’t accept RCM invoice Unless take separate reg.
6. Details of ISD distribution uploaded monthly in GSTR- 6 up to 13th of next month by ISD
7. If ISD distributed excess credit: recover from recipient (branch) with interest
Example:
XYZ Ltd, having its head Office at Mumbai, is registered as ISD. It has three units in different cities situated in different States namely
‘Mumbai’, ‘Jabalpur’ and ‘Delhi’ which are operational in current year.
M/s XYZ Ltd furnishes following info for month of July:
1. CGST paid on services used only for Mumbai Unit: ₹ 3,00,000.
2. IGST, CGST & SGST paid on services used for all units: ₹ 12,00,000. Total turnover of units for previous financial year are as
follows:
Unit Turnover (₹)
Total Turnover of three units ₹ 10,00,00,000
Turnover of Mumbai unit ₹ 5,00,00,000
Turnover of Jabalpur unit ₹ 3,00,00,000
Determine credit to be distributed by XYZ Ltd. to each of its three units.
Solution:
Particulars Credit distributed to all units (₹)
Total credit Mumbai Jabalpur Delhi
available
CGST paid on services used only for Mumbai Unit 300000 300000 0 0
IGST, CGST & SGST paid on services used for all units
Distribution on pro rata basis to all units which are 12,00,000 6,00,000 3,60,000 2,40,000
operational in current year
Total 15,00,000 9,00,000 3,60,000 2,40,000
Note 1: Credit distributed pro rata on the basis of turnover of all units is as under: -
(a) Unit Mumbai: (₹ 5,00,00,000/ ₹ 10,00,00,000) x ₹ 12,00,000 = ₹ 6,00,000
(b) Unit Jabalpur: (₹ 3,00,00,000/ ₹ 10,00,00,000) x ₹ 12,00,000 = ₹ 3,60,000
(c) Unit Delhi: (₹ 2,00,00,000/ ₹10,00,00,000) x ₹ 12,00,000 = ₹ 2,40,000
STUDENT NOTE

CHAPTER: 10 PAYMENT OF TAX
LEDGER ON COMMON PORTAL
• Electronic Cash Ledger - Cash balance with GST dpt.
• Electronic Credit Ledger - Credit balance with GST dpt. (ITC)
• Electronic Liability Register - Outward liability to pay
1. Electronic Cash Ledger
IGST CGST SGST/UTGST CESS
1. Tax 1. Tax 1. Tax 1. Tax

2. Interest 2. Interest 2. Interest 2. Interest
3. Penalty 3. Penalty 3. Penalty 3. Penalty
4. Fees 4. Fees 4. Fees 4. Fees
5. Other 5. Other 5. Other 5. Other
* 5 Minor Head for Each Major Head
Ways Deposit of Amount in E-Cash Ledger
Online mode Offline mode
Credit/ UPI Internet banking/ NEFT/ Over the counter

debit card IMPS RTGS (max 10000 per tax period)
[cash/cheque/DD]
No Limit: -
a) Government Department, P.O. &
(UPI)Unified Payment Interface
(IMPS)Immediate Payment Services another authorized P.O.
(NEFT)National Electronic Fund Transfer b) To recover o/s dues form any person
(RTGS)Real Time Gross Settlement registered or not Incl. recovery
through sale of property
c) During any investigation or
enforcement activity

Other points:
1. To deposit money Challan generated on common portal (E- challan) in form GST PMT 06 shall be valid
for 15 days.
2. Deposit money credited to cash ledger that can be used to pay liability
3. Amount available in one major/minor head cannot be used to pay liability in any other major/minor
head.
[However, any amount lying in any major/minor head can be transfer to other major/minor head using
form GST PMT-09 & then use it to pay liability]
[Hence if a taxpayer has wrongly paid CGST instead of SGST, he can now rectify the same]
4. A regd. Person can transfer any amount of sum available in cash ledger to distinct person cash ledger
(GST PMT-09)
(Only if regd. Person doesn’t have any liability in E- liability ledger)
5. Date of credit into the govt. (C.G./S.G.) A/c is deemed to be the date of debit to the amount of the
taxable person (Jab govt. k a/c me credit hoga tab actual payment manege)
The Electronic cash ledger shall be maintained in FORM GST PMT-05

Debit Entries Credit Entries
Any payment of tax, interest, penalty, fee etc. Amount deposited through Challan
Amount of refund claimed from electronic cash ledger TDS &TCS Claimed
Some important terms
1. Common Portal Identification Number (CPIN) [14-digit N.]

• unique number generated on common portal on successful generation of Challan
• CPIN remains valid for 15 days.
2. Challan Identification Number (CIN) [18-digit N.]
• Unique number generated by banks, once payment in lieu of generated Challan is successful
• CIN is communicated by authorised bank to taxpayer as well as to GSTN
• It is 8-digit number that is 14-digit CPIN + 4-digit Bank Code.
3. Bank Reference Number (BRN)
Transaction number given by bank for payment against Challan.
4. E- Focal Point Branch (FPB)
• Branches nominated by authorized banks to collect tax on behalf of govt.
• Each authorized bank will nominate only one branch as its E-FPB for pan India
• In case of NEFT/RTGS/IMPS- RBI act as E-FPB
Note:
1. Manual or physical Challans are not allowed
2. There is single Challan prescribed for all taxes, fees, penalty, interest, and other payment
3. Where bank fails to communicate CIN to common portal, E-Cash Ledger may be updated on basis of e-Scroll of RBI in cases
where details of said e-Scroll are in conformity with details in challan generated in Form GST PMT-06 on the common portal.
STUDENT NOTE

2. Electronic Credit Ledger

1. Amt. Credited to E-Credit ledger on avialmemnt of credit (ITC) in return
2. Amt. In E-credit ledger can be used to pay only “Output Tax” (self-assessed/due to proceeding)
[Hence can’t be used to pay tax, penalty, interest, liability of RCM, TDS, TCS, composition tax]
Compulsory to be pay
through E-Cash ledger
The Electronic Credit Ledger shall be maintained in FORM GST PMT-02.

Liability discharged through electronic credit ledger Self-assessed ITC
Claim of refund of unutilized ITC Rejected claim of refund of unutilized ITC
Refund of excess balance in E-cash ledger or E-credit ledger

A) E-Cash Ledger: - Immediately allowed on filling the application of Refund
B) E-Credit Ledger: -
a) Refund is available in only Next Two cases
i) ITC of zero-rated supply
ii) Inverted tax rate
b) Registered person deposits the amount of erroneous refund sanctioned to him along with interest & penalty.
the amount of erroneous refund shall be refund shall be re-credited to the E-Credit ledger by the proper officer
Conditions of use of amount available in E-credit ledger (Rule 86A)

The Commissioner or officer auth. By him is empowered to impose restriction on utilization of ITC if reasons to
believe ITC fraudulently availed/ineligible
1) tax invoices/other doc.
a) issued by non-existent RP (supplier) or RP not doing business from registered place
b) without receipt of G/S/B
2) ITC avail in respect of tax not paid to govt. by supplier
3) not in possession of valid invoice/tax doc.
restriction can be imposed up to one year, officer can withdraw if satisfied that condition no longer exist
Restrictions on use of amount available in E-credit Ledger (Rule 86B)

Applicable on:
• In case of registered person having taxable liability (excl. zero rated & exempt supply) in a month
>50 lakhs
• Maximum 99% of outward tax liability can be paid through ITC Balance
• Remaining in cash
(Taxable supplies = total supplies – (exempt supplies + zero rate supplies)).
Exceptions:
1. Regd. Person deposit > 1 lakh
in each of last 2 F.Y.
proprietor/karta/managing director income tax
Any two partners/directors/Board of Trustees
2. Registered person received refund >1 lakh for unutilised ITC for
(i) zero rated supplies
(ii) inverted duty structure
In preceding F.Y.
3. If > 1% YTD output tax liability paid through e- cash ledger in current F.Y. (excl. RCM payment)
4. Not applicable on-
• Govt. Dept.
• PSU
• Local authority
• Statutory body
5. P.o. may remove restriction after verifications/safeguards as he may deem fit.
Example:
Outward tax liability for January month 30000000
ITC available 29900000
So, ITC to be utilized & tax to be paid in cash
30000000 × 99% = 29700000 can be paid through utilizing ITC
& Balance in cash 3 lakhs
3. Electronic liability Register

1. All liabilities shall be recorded and maintained in an Electronic Liability Register
2. Order of Discharge -
(1) Self-assessed tax & other dues for previous tax period
(2) Self-assessed tax & other dues for current tax period
(3) Any other amount incl. Demand determined u/s 73 or 74
Electronic Liability Register shall be maintained in FORM GST PMT-01

Amount payable towards outward tax Electronic credit ledger trf amt
Amount payable towards other dues like interest Penalty Electronic cash ledger trf amt
4. How new system benefit to Tax Payer & Tax Department:

1) No more queues and waiting for making payments
2) payments can be made online 24 X 7
3) Instant online receipts for payments
4) Tax Consultants can make payments on behalf of clients.
5) Greater transparency.
6) Revenue will come earlier into Government.
7) Speedy accounting & reporting
5. Key Features of Payment process

1) Electronically generated challan from common portal and no use of manually prepared challan
2) Facilitation for the tax payer by providing hassle free, anytime, anywhere payment of tax;
3) Convenience of making payment online
4) Faster remittance of tax revenue to Government Account
5) Paperless transactions
6) Electronic reconciliation of all receipts

6. Interest on [can be paid through can only]
Delay in payment
of tax part/full Utilisation of wrongly
availed ITC
@18% p.a.
(from due date till date @18% p.a.
of actual payment) From: date of utilisation
of wrongly availed ITC
To: date of reversal
Paid after due date Paid after start
/payment of tax
but before start of of proceeding
proceeding u/s 73/74
u/s 73/74
On gross tax
On net tax Liability
[tax payable after
utilising ITC
balance]
Note: 1. Excess ITC would be
= ITC wrongly availed – ITC balance in credit ledger
Note 2. Date of utilisation
If amount in credit ledger fall

If amount in credit
below wrong ITC claimed on
ledger fall below
account of payment of tax
wrong ITC claimed
through return u/s 39
In other cases
• Due date of such return
• Date of debit in
u/s 39
electronic credit
Or
ledger
• actual date of filling
Example:
Tax liability for January month filled on 15/03/23
1)
a) Liability on outward supply 200000
b) RCM liability 50000
c) ITC 90000
2) If ITC 3 lakhs?
Ans:
1) Due date of January month 20/02/23 to actual payment 15/03 /23
= [(200000 – 90000) + 50000] × 18% × 23/365 = 1814
2) 50000 × 18% × 23/365 = 567

CHAPTER: 11 TDS & TCS UNDER GST

SEC 51 TAX DEDUCTION AT SOURCE (TDS)
Take sperate &

compulsory
SUPPLY > 2.5 LAKH registration
Payment made to supplier

300000 – 6000 (2% OF 3L) = 294000
Recipient Deduct 2% (1+1)

Supplier
TDS on value of supply
(Deductee) (Deductor)
NOTE: Supplier can avail the TDS in E- Cash Ledger Deposit 6000 @GST Portal
Sale Rs 300000
1. Who: shall deduct

Following person shall deduct tax u/s 51
1. CG/SG Dept./Estab. (Except: Ministry of defence)
2. local authority
3. Govt. agencies
4. PSU
5. Society Estab. by CG /SG/LA under Society Act
6. Authority/board/other body set up with 51% equity concern with govt.
(Estab. Under any ACT or by govt.)
2. When: to deduct tds

Supply of taxable G/S Under a contract exceeds > 250000(excluding GST & Cess)
Note: Invoice value doesn’t matter
3. How much: to deduct
1% CGST & 1% SGST or 2% IGST on payment made/credited to supplier w.e. is earlier
4. Procedure:
• Time limit to deposit: up to 10th day (GSTR-7) of next month
• TDS certificate in GSTR 7A provide to deductee within 5 days of deposit
• TDS deducted reflected in E-Cash Ledger of deductee
• Interest on delay deposit of TDS: 18% p.a. & also recovery proceeding-initiated u/s 73 & 74
• late filling of TDS Return/failure to issue TDS certificate within 5 days of depositing
late fee of Rs. 100/day & max. Rs. 5000/-.
• Deductor/deductee can claim refund of excess/erroneous deduction
But if deducted amount is already credited to cash ledger of supplier, same shall not be
refunded.
STUDENT NOTE

5. No TDS: in following cases

1. Supply of exempt (Nil rate/exempt/non-taxable) G/S
2. Supply under RCM
3. if supply made between above persons only
4. when payment made to unregistered supplier
5. Supplier place & Place of supply in same state
But recipient place in other state
i.e.
Intra- state supply
Supplier place (CGST+SGST (state A)) Place of Supply
State A State A
Recipient
(State B)
• So, in this case recipient(deductor) in sperate state. So, transfer of TDS will become difficult as supplier charge CSGT + SGST
(State A) whereas Recipient deduct CGST + SGST (State B)
• So, set-off won’t possible
STUDENT NOTE

SEC 52 TAX COLLECTION AT SOURCE (TCS)
Take registration in each state/Ut

Where obligation arises
ECO
Deposit TCS
Rs 1000
Supply of G/S
Supplier Recipient
Note: Supplier can claim TCS Rs 100 IN his E cash ledger

Take compulsory registration
(Except: when making supply of
service up to 20L/10L)
1. Who: shall collect

Every e-commerce operator (not being agent)
2. When: to collect
Where ECO collect consideration on supplier behalf when supply made through it
3. How much: to collect

Shall collect CGST 0.5% + SGST 0.5/IGST 1%
On Net value of taxable supplies (supplier wise & Monthly basis)
Aggregate value ̶ taxable supplies

of taxable supplies returned to supplier TCS If net value negative/nil
Even Rs 1 sale TCS apply
During month No
Except services u/s 9(5)
4. Procedure:
• TCS shall be paid to Govt by ECO within 10 days of Next month (GSTR 8) (Comm. may extend
• ECO file an Annual Statement GSTR-9B before 31 Dec of next year
st the period)
• After Filling of GSTR-8 by ECO supplier can claim TCS, in E-cash ledger
• If any discrepancy found by ECO (other than in scrutiny, inspection, enforcement proceeding)
rectify statement with payment + interest
▪ 30th Nov of Next year
▪ actual date of filling annual statement w.e. is Earlier

• Supplies GSTR-1 must match with ECO GSTR-8
if any discrepancy found shall be communicated to both
& rectification should be done in same month otherwise amt + interest shall be added to output tax
liability supplier
5. No TCS: In following cases

1. Supply of exempt (Nil rate/exempt/non-taxable) G/S
2. Supply under RCM
3. If supplier of service not liable to registration(20L/10L)
4. Supply own product through website owned by him
5. Service covered under 9(5) [THAR]
Note: Exception given under 9(5) where supplier is liable to registered & pay GST in that case TCS
provisions apply
6. Enquiry by GST office:

• Deputy Comm. or above rank officer may serve notice, to ECO to furnish details
1) supplies made through it
2) stock held by supplier with ECO in godown/warehouse, & declared as APOB
• shall furnish information within 15 days of notice.
• If fails penalty up to 25,000.
Clarification & circulars:

1) Collection of TCS by tea board of India
Tea board operate electronic auction system for trading tea across country
Considered as ECO & Shall collect TCS from

• Sellers (i.e. tea producers) on net value of supply of goods i.e. tea &
• Auctioneers on net value of supply of services i.e. brokerage
2) Is it mandatory for every ECO to get registered?

No only ECO liable to TCS shall obtain sperate compulsory registration
3) Whether ECO require to obtain registration in each state/Ut Where supplier listed on their
website are located?
Yes
4) Can TCS payment be made by Utilising ITC

No
5) At what time ECO is required to collect TCS
Earlier of supply made or consideration collected
STUDENT NOTE

CHAPTER: 12 RETURN
Filing of returns is most important which enables the Government to estimate tax collection for a particular
period and determine the correctness and completeness of the tax compliance of the taxpayers.
AN OVERVIEW
Statement Normal return Other return
Sec 37 Sec 38 Regular return Annual return First return Final return
Outward supply Inward supply Sec 39 Sec 44 Sec 40 Sec 45
Person return due date First tax period de- registration
GSTR-1 1-11th of Regular
GSTR-2 20th of First return Final return
Next taxable Next
15TH OF GSTR 3B month shall cover all shall be
Month person
Next outward furnished
13th of
month & CTP supplies from within 3
IFF 1-13th of Next
NRTP GSTR-5 month the date from months of
(QRMP Next
30th april
which he the
SCHEME) Month Composition
GSTR-4 of Next becomes
taxable person f.y.
liable for
Note: Composition tax payer required to filed registration
quarterly statement by 18th of next month
Person Regular Composition
taxable taxable Date of cancellation
Person person or
Form GSRT9 GSTR9A date of cancellation order
DD 31st Dec of the next F. Y. W.E. EARLIER
(A) Normal GST return system
GSTR-1 GSTR-2A
[detail of outward [Auto populated to
supply supplies till 11th recipient based on GSTR-1
of Next month] of supplier]
Based on both
GSTR-3B
[by 20th with final
Payment of tax]

1. GSTR-1 [Statement of outward supply]

GSTR-1 to be furnished by Every Regd. Person including CTP subj. to such condition & restriction
Except:
1) ISD Even if no
Restriction means here: Filling of GSTR-1 for current tax
period is not allowed, if GSTR-1 of previous tax periods
2) NRTP outward has not filled
3) Composition tax payer supply during However, Govt may allow any RP to file GSTR-1
4) TDS/TCS deductor/collector period file Nil
5) OIDAR supplier return
On or before 11th of next month [13 in case of QRMP] Scan copies not uploaded just details are furnished
1) Details of Outward Supply

Invoice wise • Inter-State and Intra-State supplies made to Registered Persons, and
details • Inter-State supplies with invoice value more than RS 2,50,000 made to Unregistered
Persons.
Consolidated • Intra-State supplies made to Unregistered Persons and
details • State wise Inter-State supplies with invoice value up to RS 2,50,000 made to
Unregistered Persons.
2) Restriction on furnishing GSTR -1

• Regd. Person not filled GSTR-3B for preceding month
• Regd. Person (QRMP) not filled GSTR-3B for preceding tax period
3) GSTR-1 can be filled only after end of current tax period

Except:
• CTP closes his business
• Cancellation of GSTIN
(B) Rectification of errors: (SMQ)

Return/statement are built in GST with invoice wise details
Hence in GST mechanism of revised return is not possible
Rectification of error or omission can be done in subsequent return in which month it is found
(with tax + interest) [No rectification in case action by dpt.]
But maximum up to
• 30 November of next F.Y.
• Date of annual return
4) Late fees for delayed filling of GSTR-1 & 3B

Class of registered persons Amount
1) Nil GSTR- 1 & 3B Rs 500 (250 CGST & 250 SGST)
2) Regd. Persons other than (1) Agg. T/o ≤ Rs.1.5 crores in preceding FY Rs 2,000 (1,000 CGST & 1000
SGST)
5 crores < Agg. T/o > Rs.1.5 crores in Rs 5,000 (2,500 CGST & 2500
preceding FY SGST)
3) Regd. person other than in (1) & (2) • Rs. 200 per day of delay or
• Rs 10000
Lower of both
(incl. CGST & SGST)

2. GSTR-2A [Detail of inward supply]
Detail furnished by supplier in GSTR-1 & IFF facility auto populated to respective recipient’s GSTR 2A/4A/6A
Detail of NRTP invoices/ISD/TDS/TCS shall also reflect in GSTR-2A
Based on which recipient can avail the ITC
GSTR-2B: is auto-generated read only statement containing details of ITC made available to recipient every
month
• It is a static statement & available only once in a month
• Only detail of outward supply furnished by supplier up to due date of filling return are reflected in GSTR-2B
• Date of generation of 2B: 14th of next month
SEC 38: communication of detail of inward supply & ITC

1. details of GSTR-1 field by supplier is auto-generated in GSTR-2B & made available to recipients
2. auto-generated GSTR-2B consist of:
(a) details of inward supplies for which ITC is available
(b) ITC can’t be available as per GSTR-2B if supplier
1) Is having new registration (up to prescribed time period)
2) has defaulted in tax payment & default continued for prescribed time period
3) has tax paid in GSTR-3B lower than output tax shown in GSTR-1 by the prescribed limit
4) has taken more ITC than GSTR-2B by prescribed limit
5) has paid higher proportion of taxes from his credit than what is allowed as per law rule 86B (i.e. use of
credit more than 99% of tax)
6) other notified person
3. GSTR-3B [Return & payment]

GSTR-3B to be filled by every Regd. Person incl. CTP
Except:
1) ISD Even if no
2) NRTP Business
3) Composition tax payer activity during
4) TDS/TCS deductor/collector period file Nil
return
5) OIDAR supplier
Due date
Monthly GSTR-3B Till 20th of next month
Quarterly GSTR-3B Till 22 or 24 of next month
(QRMP) (Based on state)
Note: Regd. person shall not be allowed to File GSTR-3B if he has not file GSTR-3B/1 for pev. Tax period
However, Govt. may allow any person to file 3B, even if he not file GSTR-3B/1 for one/more previous tax
periods
STUDENT NOTE

(C) QUARTERLY RETURN MONTHLY PAYMENT (QRMP SCHEME)
1. Eligibility Criteria: following person can file quarterly return & pay tax monthly
(GSTR-1 & 3B quarterly)
• Regd. person having Agg. T/o up to 5crore in preceding F.Y.

(If Agg. T/o exceeds 5crore during any time – became ineligible for QRMP from next quarter & onwards)
Note: QRMP Scheme allowed GSTIN wise not PAN wise.
2. Person opting QRMP must have filled the return, for preceding tax period
3. Time limit for opting QRMP:
• To opt in/opt out for QRMP on GST portal opt in/opt out between
1st day of 2nd month of preceding quarter to last day of the 1st month of quarter for which option
exercised
E.g.- For the quarter Jul to Sep a reg person can exercise option during 1st of May to 31st of Jul.
4. Invoice Furnishing Facility (IFF facility)

Under old quarterly system problem faced by recipient in taking ITC as detail not uploaded
by supplier monthly
So, under QRMP scheme option available to submit monthly invoice up to Agg. Amt of 50
lakhs (for each month)
Till 13th of next month Auto populated in
GSTR-2B of recipient
Rest invoice can be uploaded on filling quarterly GSTR-1
(No need to fill details again already filled in first 2 month)
5. Monthly payment of tax under QRMP

Tax to be paid be paid before 25th of next month in case of first 2 months of quarter through
GST-PMT-06
However, tax for last month of quarter to be paid before due date of filling of return GSTR-3B
6. How much to pay:
a) Fixed Sum Method: - auto populated challan b) Self-Assessment Method: -

• If last quarterly filled return: 35% of the tax paid in cash registered person deposit tax
• If last monthly filled return: tax liability paid in cash considering outward/inward
Note: ITC for month
1) No amount required to deposit
- for 1st month
If balance in cash/credit ledger Note: interest u/s 50 if
> liability unpaid/paid post due date
(in comparison to actual
- for 2nd month liability)
If balance in cash/credit ledger
> cumulative lability for 182 days
2) No interest even paid if auto collected amt.

Lower than actual liability
(but if delay in filling GSTR-3B interest u/s 50 apply)
Example:
Tax paid in Cash in Tax required to be paid in Tax paid in Cash Tax required to be paid in
Quarter (January - each of the months – monthly (march) each of the months –
March, 2021) April and May, 2021 April and May, 2021
CGST 100 CGST 35 CGST 50 CGST 50
SGST 100 SGST 35 SGST 50 SGST 50
IGST 500 IGST 175 IGST 80 IGST 80
Cess 50 Cess 17.5 Cess 0 Cess 0
Example:
• A Regd. person, who has opted for QRMP Scheme, paid a total amount of₹ 100/- in cash as tax liability in previous
quarter of October to December.
• He opts to pay tax under fixed sum method.
• He therefore pays Rs 35/- each on 25th Feb & 25th March for discharging tax liability for first 2 months of quarter viz.
January and February.
• In return for quarter, it is found that liability, for January was 40/- & for February it was 42/-.
• However, no interest would be payable for lesser amount of tax (i.e. 5 and 7 respectively) discharged in these 2
months provided that he discharges his entire liability for quarter in GSTR-3B of quarter on due date.
(D) COMPOSITION SCHEME
Quarterly Even if no Annually

GST-CMP-08 Business GSTR-4
activity during
18th of month period file Nil 30th April next
Succeeding quarter return F.Y.
Special cases
Regular Composition Regular

Entering Composition Exit Composition
CMP-08
Statement/return under regular GSTR-4
For period
Tax period to be filled For period
prior to exit
prior to exit
Till 18th of next
3Oth April
month of
30th Nov of next year next to year
quarter of
Date of annual return of withdraw
withdraw

Other returns
Return Particulars Frequency Due Date
GSTR-5 NRTP Monthly 13th of next month

or
7th day from last day of validity
GSTR-5A OIDAR Monthly 20th of next month
GSTR-6 ISD (SMQ) Monthly 13th of next month
GSTR-7 TDS deductor Monthly 10th of next month
GSTR-8 Eco & TCS collector Monthly 10th of next month
(A) FIRST RETURN
Person liable to Regd. Date of registration

Time lag
Return of outward supply during that period

Filled within 1 month from date of issue of certificate (RC)
(i.e. registration/suspension of registration link)
(B) FINAL RETURN

Every registered person whose registration cancelled/surrendered (GSTR-10)
Time limit: within 3 months of
• Date of cancellation
or
• Date of order of cancellation
Whichever is later
(C) GSTR9/9A/9B/9C (SMQ)

1. All regd. Persons required to file an annual return
Except:
1. CTP
2. NRTP ECO Collecting TCS
3. ISD Regular tax payer Composition tax payer GSTR-9B
4. TDS deductor GSTR-9 GSTR-9A (Not verified yet)
st
Up to 31 Dec of next F.Y.
2. All regd. person required to file self-certified reconciliation statement in GSTR-9C If Agg. T/o during the
year > 5 crore
Except:
1. CTP
2. NRTP
3. ISD
4. TDS/TCS deductor/collector
It is reconciliation between supply declared in annual return & annual audited financial statement
Note: however, CG/SG/LA whose BOA subj. to audit by CAG exempt from GSTR-9/9A/9B/9C

3. Late fee fort delay in filling annual return
From the financial year 2022-23 onwards
Aggregate turnover ≤ ₹ 5 ₹ 50 per day (₹ 25 CGST + ₹ 25 SGST) whichever

crores in relevant F.Y. is lower
0.04 % of T/o in State/Ut (0.02% CGST+ 0.02% SGST)

Aggregate turnover >₹ 5 100 per day (₹ 50 CGST + ₹ 50 SGST) whichever
crores is lower
but ≤ 20 crores in relevant
F.Y.
0.04 % of T/o in State/Ut (0.02% CGST + 0.02% SGST)
Aggregate turnover >₹ 20 200 for every day during which such failure continues whichever
crores (₹ 100 CGST + ₹ 100 SGST) is lower
in relevant F.Y.
0.50% of T/o of registered person in State/Ut (0.25% CGST +
0.25% SGST)
(D) GSTR-11 (INWARD SUPPLIES TAKEN BY UIN HOLDER)

Person having UIN shall declare details of inward supply on which refund claimed under GSTR-11 along
with refund application till 28th of next month
(E) GOODS AND SERVICES TAX PRACTITIONERs (GSTP’s)

GSTP’s are auth. person to work on compliance on behalf of taxpayers.
1) Eligibility criteria for GSTP
• citizen of India
• person of sound mind
• Not adjudicated as insolvent
• Not convicted by court
2) Conditions to satisfied (any one) of these:

1. Retired officer of Commercial Tax Dept, who worked not lower than gazette officer for a period of >
2 years or
2. Enrolled as sales tax practitioner or tax return preparer under earlier tax for > 5 years. or
3. He must have passed: (any one)
• Graduate/PG in Commerce/Law/Banking from any Indian University
• examination of any Foreign University recognized by Indian law
• Final examination of ICAI/ICMA/ICSI
3) Activities which can be undertaken by GSTP

1. Furnish details of outward supply
2. Furnish monthly/annual/final return
3. Deposit into cash ledger
4. Furnish info for generation of e-way bill
5. File an intimation to pay tax under composition scheme
6. File claim for refund Confirmation from
7. File an application for amendment or cancellation of registration registered person required

Note:
1. No person enrolled as GSTP is eligible to remain enrolled unless he passes such examination
conducted at such periods by NACIN
2. In case of furnishing return/submission of statement
Correctness sought from registered person
Hence responsibility of correctness remains with registered person
(F) INFORMATION RETURN

1. Verifying compliance level of registered person through info. Procured from independent third-party
source
2. In case defective, PO intimate to rectify the defect within 30 days
3. Where return not furnished, PO serve notice requiring furnishing return within 90 days
(G) Taxpayer intimated the difference in liability in GSTR-1 & 3B and requested to pay difference/explain
reason [New rule 88C]
1) where tax liability as per GSTR-1 exceeds tax liability as per GSTR-3B for a tax period by more than specified
extent, RP would be intimated on portal about such difference
2) RP be directed to either:
i. pay differential tax liability along with interest/s 50, or
ii. explain difference, within 7 days
3) Where amount remains unpaid within 7 days/no reason furnished/where reason furnished is not
acceptable by PO, said amount shall be recoverable in accordance with provisions of section 79.
4) Unless taxpayer either deposits amount/furnishes reasons for any amount remaining unpaid, such person
should not be allowed to file GSTR-1/ IFF for subsequent tax period.
STUDENT NOTE

CHAPTER: 13 TAX INVOICE
1. Tax invoice
An invoice is a commercial instrument which identifies parties involved & describes items sold, quantifies, date
of shipment and mode of transport, prices and discounts and payment terms
1) Time limit for issue of invoice: already done in TOS

2) Content of Tax Invoice
1. Name, address, GSTIN of Supplier.
2. Consecutive Serial No (not exceeding 16 characters) unique for a F.Y.
3. Date of issue.
4. Name, address, GSTIN/UIN of regd. Recipient
5. Harmonised System of Nomenclature (HSN) Code.
6. Description of goods & services
Supplier T/o in precceding F.Y. N. of digit of HSN code
7. Quantity of goods
8. Total value of Supply •AT ≤ 5 crore •B2B supply- 4digit
9. Taxable value, Tax Rate, Amount of tax •B2C supply-4 digit(optional)
10. Place of supply;
11. Tax payable on RCM •AT ≤ 5 crore •6 digit
12. Signature
13. Quick Response (QR) Code
Note: taxable service is supplied by/through ECO/ODIAR to a recipient who is unregd, irrespective of VOS,
tax invoice issued by registered person shall contain name & address of recipient along with PIN code &
name of State & said address shall be deemed to be address on record of recipient.
3) Manner of issuing Tax Invoice:

a) Supply of Goods [Triplicate]:
• Original copy to recipient
• Duplicate copy to transporter
• Triplicate copy to supplier
b) Supply of Services [Duplicate]:

• Original copy to recipient
• Duplicate for supplier
4) No Invoice: 4 Conditions (SMQ)

a) Value of supply < Rs 200
b) Recipient is unregd (composition is regd.) * However same is not applicable to
Service through admission to exhibition/cinema/multiplex
c) Recipient doesn’t require invoice
For these A consolidated invoice can be issued at the end of each day.
5) Mention in invoice in case of Export

a) “Supply meant for export/SEZ unit/SEZ developer on payment of IGST" or
b) “Supply meant for export/SEZ unit/SEZ developer on bond/letter of undertaking without payment of
IGST”

6) In case tax paid u/s 74/129/130 (fraud/seizure/confiscation)
Debit note issued later on
ITC not available (block credit u/s 17(5))
Hence invoice should contain the word: “input credit not admissible”
7) Revised tax invoice (SMQ)
Person liable to Regd. Date of registration

Time lag
Outward supply during that period
• Every regd. Person granted reg. from earlier date, shall issue revised tax invoice within 1 month from date
of issue of Reg. Certificate
i.e.
• BABU ltd. crossed T/o of 20 lakhs on 02/09/23.
• He applied for registration on 25/09/23 & granted RC on 04/10/23
• so, co. should issue revised tax invoice till 03/11/22 for supplies made during 02/09/23 to 03/10/23
Note: Consolidated revised tax invoice, Only if

• Intra state supply
• Interstate supply ≤ 250000 made to Unregd. Person
CRTI never be issued in case of Regd. Person whether intra/inter
8) Bill of supply
• Person making supply on which tax not to be collected
• No invoice just issue “bill of supply”
• i.e. composition supplier, supplier of exempted goods
Note: bill of supply issued by composition supplier shall contain words

“composition taxable person not eligible to collect tax”
9) Invoice-cum bill of supply

• In case supplier making taxable & exempt supply together
• In such a case no need to issue sperate tax invoice for taxable supply & BOS for exempt supply
Invoice-cum BOS can be issued
2. Debit & credit note
1) Credit Note
In following cases credit note can be issued
a) Supplier declare value > actual VOS
b) Supplier declare high tax rate than applicable rate
c) Goods received in less Qnty by buyer
d) Goods returned by buyer
• Credit note issued by supplier will reduce tax liability
Time Limit: Details of Credit note declare in Return for month during which such credit note has issued,
but not later than
• 30th Nov following the end of FY in which supply was made or
• date of filing annual return
2) Debit Note
In following cases credit note can be issued
a) Supplier declare value < actual VOS
b) Supplier declare low tax rate than applicable rate
c) Goods received in more Qnty by buyer
• Credit note issued by supplier will increase tax liability
*There is no time limit for showing debit note in return
3. E- Invoicing [INVOICE/DN/CN]
1) Meaning: e-invoicing doesn’t mean generating invoice on govt. portal, it’s just reporting invoice on
govt. portal
(Invoice regd. portal)
2) Applicability
• Supplier is notified person &
• Supply of B2B or Export (even to unregd.) However, if applicable &
not issued e- invoice
Notified person Regd. person having
• Aggregate T/o > 10 crores (based on PAN)
Considered as no
[in any preceding F.Y. from 2017-18 onwards] invoice is issued
3) Not required
• B2C invoices
• invoices issued by ISD
• import of goods (Bills of Entry)
4) Obtaining IRN
invoices will be reported to ‘Invoice Registration Portal (IRP)
On such reporting, IRP will generate a unique ‘Invoice Reference Number (IRN)’
A GST e-invoice will be valid only with a valid IRN. IRN is unit 64 – character hash
5) E-invoice schema
• Uniform std. format (containing specified fields) applicable for all business across the country
• It is notified in GST INV-1 & mandate what particulars shall be reported in electronic format to
IRP.
6) E- invoice in case of RCM
Supplies under RCM made by notified person E-invoice applicable
Supplies under RCM received by notified person E-invoice not applicable

from unregd. Person

7) Exemption from E-invoicing

1. SEZ units (not developer)
2. Insurer/bank/FI/NBFC. However, have to provide deceleration
3. GTA transportation of goods by road that T/o exceed by not required E-invoice
4. passenger transportation services
5. admission to exhibition/cinema/multiplex
6. Govt. Dept. & local authorities
Have to give Declaration that not required to prepare an E-invoice

“I/We hereby declare that though our aggregate turnover in any preceding F.Y. from 2017-18 onwards is more than
aggregate turnover notified (> 10 CRORE), we are not required to prepare an invoice in terms of provisions of said sub-rule.”
Clarification: exemption from generation of e-invoices is for entity as a whole & is not restricted by nature of
supply being made by entity.
Example: A Bank providing banking services, also be involved in making supply of some goods, including bullion.
bank is exempted from mandatory issuance of e-invoice for all supplies of goods/services. thus, will not require
to issue e-invoice.
8) Process to generate e-invoice
Supplier upload details required in IRP through GST INV-2
• Generate IRN (unique N.)

• Digital sign on invoice
• Add QR code
[Return invoice with IRN/SIGN/QR to supplier]
Send data to GST portal & e-way bill portal
Now GST portal E-WAY bill portal

• Update GSTR-1 of supplier • Create e-way bill
• Update GSTR-2A of buyer
Seller get auto populated GSTR-1

&
Buyer get ITC based on prefilled GSTR-2A
Note:
1) QR code on E-invoice can be verified on
• Central portal or Offline app by officials
2) Invoice/IRP can be cancelled by seller by reporting to IRP

But can’t be amended
Amendment in detail can be done only on GST portal

(While filling GSTR-1)

4. Dynamic QR code
Static QR: Person based
Two types of QR code
Dynamic QR: Transaction based Purpose: To
encourage
Dynamic code: QR code containing payment detail (transaction specific) digital payment
Which lead directly to payment
1) Applicably
• Supplies made by notified person &
• Supply is B2C
Notified person
Regd. person having Agg. T/o > Rs. 500 crores
[in any preceding F.Y. 2017-18 onwards]
2) Non-applicability of Dynamic QR code

If invoice issued by following suppliers:
1. Insurer/bank/FI/NBFC
2. GTA for transportation of goods
3. passenger transportation service
4. admission to exhibition/cinema/multiplex
5. Supplier of (OIDAR) services.
6. in case of exports
7. supply to UIN (even B2C)
8. Invoice to recipient outside India for supply of service for which amt. to be received in forex
STUDENT NOTE

3) Compliance with Dynamic QR Code requirements
Case 1 Case 2
Supplier provide QR but customer Supplier provide E-payment mode
opt payment without using QR without using QR
Customer paid using cash

Customer paid using Cross ref. of transaction made on
UPI/credit/debit card/net banking invoice
[however, if pmt. Made after

Provide cross ref. of transaction invoice generation shall provide
Provide cross ref. of payment in
detail in invoice (i.e. date/time, QR code on invoice]
invoice (i.e. date of transaction)
transaction ID)
Deemed to complied with requirement of Dynamic QR code
Case 3
Prepaid invoice or ECO/online merchant
Provide cross reference of payment transaction to be made on

invoices
In case of post payment invoice generation

Shall provide QR code on invoice
5. Vouchers
1) Receipt Voucher
A registered person shall on receipt of advance w.r.t. G/S/B, issue receipt voucher
• Rate of tax is not determinable:18%
• Supply is not determinable: interstate
2) Refund voucher
• if no supply or tax invoice against advance received issue refund voucher
3) Payment voucher/challan
RCM supplies
Made by registered Made by unregd.

Supplier Supplier to regd. recipient
Supplier to issue tax invoice Recipient to issue tax invoice
Payment voucher: to be issued by recipient at the time of making payment to supplier

6. Doc. Other than tax invoice permitted
Supplier Optional info Mandatory info

1) Insurer/Banking/FI/NBFC • Serial Number • Other info as same as Tax
• Address of the recipient invoice.
• May issue a consolidated tax
invoice for SOS made during a
month at the end month
2) GTA for transportation of goods • Gross weight of the
by road consignment
• Name of the
consignor/consignee
• Reg. number of carriages
• Details of goods
• GSTIN of payee
• Other info same as tax invoice
3) Passenger transportation • Serial number • ticket shall be deemed to be a

• Address of recipient tax invoice
• other info same as TI
• however digital
signature/signature not
required on ticket
4) Services by way of admission to • Detail of recipient not • Issue e ticket shall be deemed
exhibition/cinema/films/multiplex required invoice
7. Delivery challan
• Sometime at time of removal of goods quantity is not clear
• In that case delivery challan to be issued & tax invoice can be issued later on
Cases
a) Supply of liquid gas – quantity while removal not known
b) Transportation of goods for job work/for reasons other than supply
Note:
1) Delivery challan to made in triplicate like invoice
2) Declare on e-way bill that goods are transported on delivery challan not tax invoice
Special cases
A) Goods send on semi/complete knocked down condition or in batches/lots

• Supplier shall issue complete invoice before dispatch
• Delivery challan for every consignment along with copy of original invoice
• Original copy of invoice to be send with last consignment
B) Goods on approval basis or artwork send to gallery/exhibition

• No consideration while removing so not supply & invoice can’t be issued
• Goods transport on delivery challan + e-way bill
• As soon as sale taken place – required to issue tax invoice
(supplier shall carry invoice book along)

CHAPTER: 14 ACCONTS & RECORDS
Sec. 35: Accounts & other records (SMQ)

Who: Every Registered person
Where: At each principal place of business (PPOB) & Additional place of business (APOB)
How:
• In Electronic Form also authenticated by digital signature.
• Proper Back up of records
• Whenever demanded by officer, provide hard copy/electronically with password, codes etc.
• No Records to be erased/overwritten.
A) Accounts: B) Record & documents:

1. Production of 1. G/S imported/exported
goods 2. Tax paid under RCM with doc.
2. Inward/outward 3. advances received/paid & adjusted
supply of G/S 4. Name & address of supplier/recipient
3. Stock of goods & premise where goods are stored
4. Output tax
payable/paid Note: if goods found anywhere else
Not required for
5. ITC availed deemed as supplied & tax payable on it
composition scheme
(SMQ)
Rule 56: Accounts & records to maintained by specific person
1) Agent: (SMQ) P = each principal

1. Auth. received by him from P to receive/supply goods/service
2. Particulars including description, value and quantity (wherever applicable) of goods or services
received on behalf of every principal
3. Details i.e. description, value/quantity of goods/services supplied/received on behalf P
4. Details of accounts furnished to P
5. Tax paid on receipts/supply of G/S on behalf of p
2) Manufacturer:
1. Monthly production accounts showing details of RM/services used in MFG.
2. including detail of goods produced + waste+ by product
3) Supplier of services:
1. Qty details of goods used in services,
2. details of input services
3. service supplied
4) Works contractor:
1. Name & add. of person on whose behalf work executed
2. Detail of G/S received i.e. Descrip. /value/Qnty. Etc.
3. Detail of G/S Utilized i.e. Descrip. /value/Qnty. etc.
4. details of payment received for each contract
5. Name & add. of suppliers of G/S
5) Custodian/clearing & forwarding agent:

1. Detail of goods handled on behalf of registered person
2. produce details as & when required by proper officer.
6) Owner/operator of warehouse/go down & transporter:

1. Records of goods transported, delivered and stored in transit along with GSTIN of consignor &
consignee
2. BOA of period for which goods remain in warehouse/including
dispatch/movement/receipt/disposal
Note:
• If these persons are unregistered, still have to maintain records
They obtain unique enrollment number (SMQ)
Sec. 35(6): Failure to maintain a/c & records

1. Not accounted G/S treated as deemed supply & tax payable
2. Provisions u/s 73 & 74 shall apply.
Sec. 36: Period of retention of accounts (SMQ)

1. Till expiry of 72 months from due date of furnishing annual return.
2. If reg. person subject to appeal/Revision/proceedings
• Till 1 year after final disposal of such matter or
• for 72 months from due date of filling AR
whichever is later.
Clarification:
• In case of auction of tea/coffee/rubber
• No need to maintain at APoB, maintain at PPoB & intimate jurisdictional officer in writing
STUDENT NOTE

CHAPTER: 15 E-WAY BILL
1) What is an E-Way bill?

• E-Way Bill is an electronic doc. Generated on the GST portal evidencing movement of goods
• It should be generated prior to causing movement of goods in form GST-EWB-01
2) Relevance
a) Hassle free movement
b) Track movement of goods
c) Control tax evasion
d) Eliminate State boundary check post
3) Who & When E-way Bill is required to generate? (SMQ)

a) Who: - Every R.P. (Supplier or recipient) who causes the movement of goods
Reasons other than inward supply from an

In relation to a supply
supply unregistered person
b) When: - Consignment value exceeds Rs 50,000
Voluntary Generation Mandatory Generation

(even if consignment
Value is Rs 50000 or less)
Consignment Job work Handicraft

value exceeds goods
Rs 50,000
Principal Person exempted
• Every R.P. causing movement of Or from obtaining
goods Job Worker registration
• Can authorized ECO/Courier (if Registered)
Agency/Transporter to furnish
details in Part-A • Inter State movement
• E-Way Bill is required Irrespective
of consignment value

4) Determination of Value
Mandatory generation of E-Way bill if Value exceeds Rs 50,000
• Determined as per Section 15

Includes: GST
Excludes: Value of Exempt Supply
i.e. if value as per sec 15 is 48000 transaction Value + GST on it 18% = 56640 req e-way bill as > 50000
(8640)
5) Details in E-Way Bill
PART A PART B
[Detail of goods supplied, [transporter detail, transport
GSTIN of Supplier & recipient, doc. N., vehicle n.]
Place of Dispatch & Delivery,
Doc. N., Value]
Person causing 1. Transporter (in case of road)

movement 2. Person causing movement (in
(transporter, e-comm or case rail/air/vessel)
courier agency if
authorised by consigner)
Note:
1. Person causing movement
a) Supplier regd. & undertake transport supplier
b) If recipient arrange transport recipient
c) Unregd. Supplies to regd. Recipient recipient
2. In case of rail/air/vessel information in Part B can be filled before/After commencement of movement of

goods but it shall not be delivered unless EWB is produced at the time of delivery
3. If goods transported in his own conveyance/hired conveyance/public transport
Reg. person (PCM) Himself fill both part A & B
4. Where EWB not generated by consignor/consignee. It shall be resp. of transporter to generate EWB if
value > Rs. 50,000
Process of EWB generation
Other imp. Points
a) In part b detail include: If transporter has
PART B
• single reg: GSTIN
Transportor/supplier
• Multiple reg: common UEN (unique enrolment n.) PART A fills detail
• Unregd: unique n. TRANS IN Slip & temperarory
(Enrol itself on EWB portal) PART A number is generated
b) In case of bill to ship model Filled by consigner/
As there is two supplies involves but single Consignee
Movement of goods Generation of EWB
Single EWB to be generated
Supplier of immediate supplier can generate EWB

c) Normally every EWB is valid only when part B is filled

Exception:
• Goods transported for distance up to 50 km within state/Ut
a) Consigner place to transporter place
b) Transporter place to consignee place
d) In case goods transported from one conveyance to other

• Person making movement/transporter can update the conveyance detail in part b
(any n. of time)
e) EWB can’t be edited/modified but it can be cancelled

f) EWB is central doc. Not state specific.
g) EWB is invoice specific every invoice requires sperate EWB (SMQ)
(Even vehicle/transporter/supplier/recipient same)
6) Acceptance of EWB
DETAIL of EWB made available on common portal
• Supplier if regd.: in case info provided by transporter/recipient
• Recipient if regd.: in case info provided by transporter/supplier
Shall communicate acceptance/rejection
Note: if not accepted/rejected within 72 hours – considered accepted
7) Cancellation of EWB
Goods not transported or not transported as per the detail
EWB can be cancelled within 24 hours of generation

(If verified in transit cancellation not possible)
8) Validity period of E-Way Bill
Other than over dimensional cargo in case of Over Dimensional Cargo
Up to 200km for every additional 200KM or part Up to 20km for every additional 20KM or part
1 day 1 day additional 1 day 1 day additional
Note: - Multimodal shipment where one leg in ship the above both options are available
• Validity of E-way bill may be extended within 8 hours from the time of its expiry
Relevant date: date of EWB generation period shall be counted from midnight of day on which bill generated
i.e.
14th April 15th -16th 16th-17th

10 am 12 am 12 am
EWB 1- Day Midnight 1- Day Midnight

A) Situation where EWB isn’t required (just read)

1) Transportation of specified goods:
a) LPG
b) Kerosene oil for public distribution
c) Postal baggage
d) precious stones & Jewellery (Not apply to Imitation jewellery)
e) Currency
f) personal effect ₹
2) non-taxable goods / exempt from GST
3) Transportation on non-motorised vehicles
4) Schedule III (Negative list supply)
5) Goods transported from/to Nepal/ Bhutan
6) Goods transported by Ministry of Defence
7) CG/SG/LA transp. of goods by rail
8) empty cargo containers
9) transp. within 20 km for weight
10) Empty cylinders for LPG for reasons other than supply.
11) Goods Transportation From
Custom port/airport to ICD/CFS & vice versa
B) Doc./device to be carried by pic (person in charge) of conveyance

PIC of a conveyance shall carry
• Invoice/BOS/delivery challan/bill of entry etc.
• e-way bill in physical form or electronic form or mapped to RFID (Radio Frequency Identification Device)
embedded on conveyance
Not Applicable: - for movement of goods by rail or by air or vessel.
C) Inspection of EWB
Rights of Commissioner Rights of person

/authorized inspector
If vehicle detained for more
• Right to intercept any conveyance than 30 mins transporter may
verify E-way bill/conveyance upload the information in
• Right to install Radio Frequency Form GST EWB-04 on
Identification device (RFID) common portal
• After Verification by PO
Summary Report & final Report –

to be recorded online in Form GST EWB-03
Part A(summary)- within 24 hrs. of inspection
Part B(Final)- within 3 days of inspection [Extension available for further 3 days]
NOTE: No further physical verification of goods unless specific info. of tax evasion
D) Non-compliance of e-way bill

Penalty Goods & conveyance
• 10000 liable to
or detained/seized
• Tax evaded
Higher out of both
E) Blocking of EWB
Following person can be blocked from generating EWB (as a supplier) [now allowed to fill Part-A]
1) Composition payer not furnished statement for 2 consecutive quarters
2) Regular tax payer not furnished returns for 2 tax periods No
restriction
3) Regular tax payer not furnished GSTR-1 for two consecutive months/ Quarters on inward
4) whose registration suspended supply
• commissioner may allow generating EWB (on sufficient cause & reason in writing)
F) Special case clarification
EWB in case of goods stored at transporter’s go down
Suppliers
premises Transporter’s go down Recipient
Recipient APOB P0B
• Recipient shall declare transporter’s go down as APOB

• Goods movement from supplier to go down shall be covered by EWB
• & movement from go down do recipient place must be covered by new EWB
• A/c & records to be maintained by both transporter & recipient
STUDENT NOTE

CHAPTER: 16 PLACE OF SUPPLY(POS)
Importance of place of supply

As GST is a destination-based tax hence place of consumption matters
For division of revenue

As a part of GST goes to central & second part given to state where POS (consumption) happen
Intra-state supply
• Location of supplier
& In same state/Ut
• Place of supply
Inter-state supply
• Location of supplier In two different state
& Two different Ut
• Place of supply One state/one Ut
Following supply shall always be interstate supply irrespective above

1. Supply to/by SEZ unit/developer
2. Import of goods (IGST levied & collected under custom)
3. Supplies to Tourist TOURIST: person not normally resident in
4. Supplies in India & place of supply o/s India (export) India, who enter in India for stay of < 6M
5. Supply in Taxable territory but not intrastate (Residual) for legitimate non- immigrant purpose
6. Supply to/form EEZ treated as other territory IGST
Note:
Supplies in territorial waters LOS/POS in
• If location of supplier/place of supply in territorial waters territorial waters

Deemed to be
• deemed in nearest coastal State/UT in nearest coastal

State/UT
STUDENT NOTE

Sec 11: Place of supply of goods in case of Import/Export
Nature of Supply Place of Supply

Goods imported Location of Importer
Goods exported Location outside India
Sec 10: Place of supply of goods other than Import/Export
S. N. Nature of Supply Place of Supply

1. Supply involves movement (SMQ) where movement of goods terminates
(Destination)
2. Supply not involve movement Location of goods at time of delivery
3. Assembled/installation involve Place of installation/assembly
4. Goods supplied on board conveyance Place where goods taken on board
5. Bill to ship to model (SMQ) Location of third person (original buyer)
Haryana UP
Haryana
Punjab
Haryana
• Supply by B to A: Location of A Haryana

• Supply by C to B: Location of B Punjab
(original buyer)
STUDENT NOTE

Sec 12: Place of supply of service where LOS & LOR in India POS: Place of supply LOS: location of supplier
LOR: location of recipient
S.N. Situation Place of supply Example

GTI TOP + IBC BEAT Supply to Unreg. Supply to RP
1. Pos General rule (other Address in records exists: POS = LOR Papu (reg. in Haryana) supplies
than discussed below) Address in records not exists: POS = LOS service to modi ltd. (reg. in Delhi)
POS = Delhi, if modi ltd is UPR
then POS = Delhi if address not
available then POS = Haryana
2. Training & POS = Place of performance POS = SN Associate [CA] (Haryana)
performance appraisal Location provided GST training at Punjab
Of such office of Jindal ltd. (URP) POS =
Registered Punjab
Person
3. Insurance services POS = LOR in records of supplier Mr. Shivam (URP in Mumbai)
goes his to village in Haryana to
buy medical insurance for
parents from LIC (reg. in Haryana)
POS = Haryana
4. Transportation of POS = Where goods handed over for Mona ltd. (red. In UP) sends
goods/mail/courier transportation courier to Jaipur through DTDC
Note: if transportation is outside India POS = UP
POS = destination of goods If courier was shipped to Dubai,
POS = Dubai
5. Passenger POS = where person embarks on journey Mr. sunny (URP in Gujrat) pre-
transportation service Note: right to passage for future buy travelling vouchers from
(return journey treated /embarkation not known: POS = Point 1 Udaan ltd. (Delhi) to travel
as sperate even if ticket anywhere in India if address of
issued at same time) sunny available POS = LOR
If Not POS = LOS
6. Organising event & POS = Place where event held and Nagpal events (Haryana) hired by
sponsorship service if event held outside India, POS = LOR Mr. Papu (URP IN Maharashtra)
(i.e. Cultural/Sporting/ to organize wedding at Jaipur
Scientific event or POS = Rajasthan, if wedding at
conference, fair etc.) Canada then POS = Maharashtra
(SMQ)
Rule 5: if held in more than one State/Ut & a consolidated amt. charged
RP: no need to apportion
URP: Apportionment required [On the basis of GAAP]
7. Service related to POS = Location of property/boat/vessel Honey ltd. (reg. in Punjab)
Immovable property, If property/boat/vessel located o/s India POS = LOR provided engineering service to
(i.e. Construction/agent Salman ltd. (reg. in Maharashtra)
/experts) + for a building in Gujrat POS =
Logging/accommodati Gujrat
on in hotel, boat,
vessel etc. +
Ancillary service
Rule 4: location in more than 1 State/Ut (SMQ, MTP N19) Rs 3000 combo for chain hotel 2
a) Single property located in ≥ 2 State/Ut = Based on area in each State/Ut nights in Delhi & 1 night in Agra =
b) Different property located in ≥ 2 State/Ut (Logging/accom.) = based on N. apportion 2:1 (2000:1000) in
of night stayed in each property respective state
c) Boat/vessel = based on time spent in each State/Ut

8. Banking/financial & Address in records exists: POS = LOR Mr. Janu (Delhi) withdraw money
Stock broking service If not: POS = LOS from ATM in Punjab
POS = Delhi (as it is location on
record of recipient)
9. Service On board POS = 1ST scheduled point of departure of that Mr. Raju is travelling from Delhi
conveyance conveyance to Mumbai. He makes payment
to watch movie on demand, POS
= Delhi
10. Restaurant/Catering/ POS = Place where service performed MR. lucky (makeup artist from
Personal grooming Delhi) goes to Mumbai for make
/Fitness/Beauty/ up of Ms. Parul heroine from
Health services Chennai POS = Mumbai
11. Admission to Event POS = location of place/event held Simran of Indore buys a ticket for
/park/other place circus organized at Haryana by
circus co. reg. in Goa POS =
Haryana
12. Advertisement service POS = each of state where Advt. broadcasted/run/ To display advt. of Pradhan
to Govt./LA played (determine as per contract if not available mantri awaas yojana in Delhi &
follow below procedure) UP contract is entered with apna
a) Advt. on hoarding’s = N. of hoarding in each cinema sperate invoice has to be
issued state/Ut wise based on
state/Ut
hall/screen in multiplex
b) Advt. in television = each state/Ut based on
viewership of channel
[viewership based on BARC published data of last
week of two preceding Qtr.]
(if figure related to region having > 1 state (divide
based on population)
c) Advt. on internet/msg = each state based on
internet subscriber & telecom subscriber [based
on TRAI data of last Qtr. of preceding FY (for
internet)/ of preceding Qtr. (for SMS)
13. Telecommunication 1. Fixed line/dish antenna: Location of instrument Mr. Rahul (billing address Delhi)
services (SMQ) 2. Post-paid: Billing address if N.A. Then LOS gets his post-paid mobile bill paid
3. Prepaid: online from Goa POS = Delhi
a) Through agent: address of agent/distributor
Ms. Salu (Patna) gets pre-paid
b) Online mode: location of recipient (LOR)
mobile recharge from shop in
c) Other case: LOR if N.A. LOS
Goa POS = Goa
Note:
Leased circuit goes through > 1 state
Determine based on N. of points in each State/Ut
Clarifications in respect of point 4.

where destination of goods is outside India, POS of transportation services shall be outside India.
Query clarification
Whether supply is inter-state/Intra-state? It would be inter-state supply as POS o/s India & LOR is in
India. Thus, IGST is payable.
Whether recipient of service of transportation of goods Yes, recipient eligible to avail ITC, subject to fulfilment of
eligible to avail ITC in respect of said input supply of other conditions laid down in sec 16 & 17
service?
Rule 3 of IGST Rules 2017 Supply of advertisement services to the Central

Sec 13: Place of supply of service where LOS or LOR outside India
S.N. Situation Place of supply Example

GOPAL GOT 2B
1. Pos General rule (other POS = LOR
than discussed below) If LOR not available POS = LOS -
2. OIDAR service POS = Location of recipient
See below
3. Passenger Transport POS = Where person embarks on journey Mr. john buy ticket of flight from
service airline co. (reg. in Delhi) from Delhi to
shri lanka POS = Delhi
4. Admission to/ POS = Where event held A circus team from Russia organize
organization of event circus in Delhi POS = where event
held (Delhi)
(i.e. exhibition, fair,
cultural/Artistic/Sports
event)
5. List of Notified service 1. R & D service related to pharmaceutical Examples of specified R & D service:
By person in TT to person in NTT Discovery & development, evaluation
POS = LOR of efficiency of new chemical, drug
Conditions: metabolism, clinical trial etc.
a) Supply as per agreement
b) Fulfil condition of export of service
except (POS)
2. B2B maintenance/repair/overhaul service
of aircrafts/engines/parts, ship/vessel
POS = LOR
6. Performance based 1. Goods required to make available for Ms. Sheela (Nepal) send her laptop to
service service: location of service performed get repair from MR. Papu (Delhi)
On goods: (repair) 2. Service performed from remote location: which is to be send back without use
On individual: Location where goods actually situated in India POS = Nepal (i.e. LOR) & not
(makeup/training) Delhi where service actually
3. Goods imported for job work/repair:
performed
location of recipient (not used in India)
4. Required physical presence of individual:
location of service performed
7. Service directly on POS = Location of property Mr. ram architect (Delhi) provide
immovable property Rule 4: same service to Mr. Janu of New York for
immovable property in pune
POS = location of property (pune)
Note: in point 5 + 6 + 7 / GOA Mr. kaka provide testing service in

• However, related to > 1 location out of which at least 1 in Taxable relation to new drug to japan based
territory co. testing is done for 5 drugs for
Deemed full supply in India consideration of 6 lakhs 2 drug tested
in Mumbai, 2 in USA, 1 in Gujrat POS
• More than 1 state/Ut = B/w each state/Ut apportion
= for entire contract will be in India
Mumbai: 6 lakhs × 2/3 = 4 lakhs
Gujrat = 6 lakhs × 1/3 = 2 lakhs

8. Transportation of goods POS = Destination of Goods Flower co. in Mumbai shipped flower
(Excl. mail/courier) to Paris to event mgt co.
POS = Destination (Paris)
9. Banking/financial service POS = LOS XYZ ltd. (Maharashtra) Provide facility

to a/c holder + of supply of goods between foreign &
Intermediary + Indian sellers (Intermediary)
Hiring of transport excl. POS = LOS (Maharashtra)
aircraft/vessel up to 1
month
10. Services on Board POS = 1ST scheduled point of departure of Airplane take flight for Canada form
conveyance that conveyance Mumbai India Mr. john of Canada buy
chocolate during flight POS = Mumbai
Sec 14: OIDAR (online information & database access or retrieval) service
A) Service delivery mediated Through Information technology over internet
B) Totally automated (minimal human intervention) & impossible without information tech.
i.e. advertising on internet, digital data storage, online gaming, e book + movie + music, online supply of
digital content
How will supplier get to know that recipient in India?

1. Recipient gives India address on Internet
2. Payment settled by India debit/credit card
3. Indian Buying address
4. Indian IP address Any two condition satisfy recipient
5. Indian bank a/c used for payment deemed to be in India
6. Country code (mobile number)
7. Indian fixed land line
OIDAR SERVICE
B2B B2C*
Recipient will pay tax under RCM Supplier has to take registration in
India & pay GST (FCM)
1. If service provided
through intermediary
\ pay tax
then it will
2. If supplier has no
*NTOR (Non-taxable online recipient): presence appoint
representative/agent
Individual/other person who is
unregistered & receiving it for non-
business purpose + CG/SG/LA

Intermediary not deemed as supplier if: (all four condition satisfy)

1. Invoice by intermediary identify service & supplier in NTT
2. Intermediary not collect/responsible for payment
3. Intermediary not authorize delivery
4. T & C not set by intermediary
Evaluation whether OIDAR or Not??

1. PDF doc. Manually emailed by provide A B No OIDAR
2. Pdf automatically emailed by system A B OIDAR
3. Pdf automatically downloaded from website A B OIDAR
4. Photographs available for download A B OIDAR
5. Online course with prerecorded video + pdf A B OIDAR
6. 5. + support from live tutor A B No OIDAR
Clarification:
1. Cargo handling service by ports
Not considered as related to Immoveable property: POS = general rule apply point 1 of sec 12/13
2. Legal service from place outside India or software design service related to ESDM industry
Market research/survey provided to person o/s India: POS = general rule applies (SMQ)
3. Satellite launch services by Antrix (wholly owned India Govt. Co.)

to international customers: POS = outside India (export)
to person located in India: POS = sec 12(8) apply (but exempt)
STUDENT NOTE

CHAPTER: 17 JOB WORK
1 Job work: Any treatment/process undertaken on goods belonging to another person (SMQ)
2 Principal: Who send input/capital goods to job worker for carrying out job work
3 Job worker: Who work on goods send by principal (he is supplier of service)
Sec 19 & 143: ITC on Input & Capital goods send for Job Work
ITC can be availed on goods send to job work (himself/directly through supplier)
However, in case of
Inputs Capital goods (PEQ M22)
received back received back

within 1 yr. within 3 yrs.
[can be extended by 1yr.] [can be extended by 2yrs.]
from date of goods send to job (if send directly through supplier: then date he receives goods)
Note: No time Limit in case of moulds & dies, jogs, fixtures or tools. (SMQ)
Special points:
1) If not received back in prescribed time deemed that goods supplied by principal to JW on date of goods send
Pay Tax along with + interest (SMQ)
2) If later received back then considered as supply by JW to principal
Other points:
1) Responsibility of maintain record is with principal (SMQ)

2) Delivery challan shall be issued along with + E-way bill (whenever required/inter-state mandatory)
Job worker reg. Job worker unreg.
E-Way bill generated either by principal/JW E-Way bill generated by principal
3) Detail of challan upload on ITC-04

T/o Period Due Date
If Agg. T/o Exceed 5cr • April – Sep 25th of next month
• Oct – march
Other Financial Year
STUDENT NOTE

4) After processing JW
May ….
3 1
2
Supply to final consumer Send to Another Dispatch goods to

against payment of tax 2 Job worker for principal without
as applicable further processing payment of Tax
(SMQ)
Principal may supply goods directly • For it delivery challan issued by
from place of JW in India/export if principal/JW
1. Principal disclose JW place as • Alternatively, Delivery challan issued by
Additional POB or principal may be endorsed by JW
2. Job worker is registered or
3. goods notified by commissioner
Clarification:
Special points 1. Registration requirement:
• Job worker req. to reg. if threshold cross (20/10L) whether intra/inter supply
1. Time + value + place of supply
• Principal get ITC on I/CG send directly to JW
determined in hand of principal
• JW can receive ITC on his own input used for supplying service (SMQ)
irrespective of location of JW
2. Supply of waste & scrap:
2. Invoice to be issued by principal
• Pay tax on supply of scrap by JW if reg. otherwise principal will pay
3. Considered as T/o of principal
STUDENT NOTE

CHAPTER: 18 ASSESSMENT & AUDIT (DPT. ADMINISTRATIVE POWER)
Assessment: Means determination of tax liability

Audit: Examination of records/returns furnished by
registered person to verify correctness & assess compliance
WHAT IS NEED FOR ASSESSMENT & AUDIT?
Trust based Assessee first self-assess his tax liability

GST
taxation system & furnish returns
Section 59 Self-Assessment
As it relies on self-assessment
So, there’s need to establish a robust “Audit”
mechanism to ensure proper compliance
TYPE OF ASSESMENT UNDER GST
Self-Assess. Provisional Assess. Scrutiny Assess. Best judgement Scrutiny Assess.

Assessment
1 2 3 4 5
Regd. person Unregd. person

(Assess. Of non-filers)
B
A
STUDENT NOTE

Sec 59: Self-Assessment

• Every regd. person self-assess tax payable & file return u/s 39 1
2
Sec 60: Provisional Assessment (SMQ)
Taxable person is unable to determine
▪ Value of supply Apply for provisional
▪ Rate of tax assessment to PO
Provisional order shall be issued, within 90 days

Allowing payment of tax provisionally providing:
1. Value/rate based on which tax determined
2. Bond amt. & security (max. 25% of bond amt.)
Pass final order within 6 months from issue of provisional order

Extension: JC/Add Comm- 6m & Comm- 4yrs] (SMQ, RTP N18)
FAT: Final Assessed Tax

If FAT > PAT PAT: Provisionally Assessed Tax If FAT < PAT
(Short paid) (Excess paid)
Tax payment: differential tax Tax refund: subj. to doctrine of

+ Interest: @ 18% p.a. unjust enrichment
Period: from first day after + Interest: @ 6% p.a.
D/D of payment till date of Period: After expiry of 60 days
actual payment from receipt of refund
application till date of payment.
Note: security can be released once final order passed within 7 days from date of application for release
of security.
Sec 61: Scrutiny Assessment 3
PO may scrutinize return filled by regd. person to verify correctness

Discrepancies found notice to be issued by PO asking explanation within 30 days
Satisfactory explanation Discrepancies accepted Discrepancies not

given by RP by RP accepted/No corrective
action after acceptance
NO Action Pay tax + interest by RP
PO may take any of these steps:

1. Conduct audit u/s 65/special audit u/s 66
2. Undertake inspection, search & seizure
3. demand & recovery u/s 73/74
STUDENT NOTE

Sec 62 & 63: Best Judgement Assessment 4 (PEQ J21)
Non – filler of returns Unregd. Person

In addition to step u/s 73/74
Sec 62 Sec 63
1. BJA: 1. BJA:
• System generated mail/msg. to all regd. person 3 days • Fails to obtain Registration/ cancel reg. but liable
before D/D for filling return To pay Tax. PO may assess tax by best judgement
• D/D crossed, system generated mail/msg. to all • Before passing order 15 days’ notice to Assessee
defaulter reminding failure to file return on time • Order shall be passed only after considering reply
• 5 days after D/D notice (u/s 46) to defaulter for filling (oobh)
return within 15 days 2. Time limit of order:
• If fails to file return u/s 39/45 PO do BJA & 5 year from D/D of annual return of that F.Y.
Upload summary of order considering 3. No Withdrawal
a) Detail of outward supply in GSTR -1
b) Detail of inward supply in GSTR -2A
c) E-way bill Information PO: Proper Officer
D/D: Due Date
d) Other info available
Oobh: Opportunity of being heard
2. Time limit of order: RP: Registered person
5 year from D/D of annual return of that F.Y. BJA: Best Judgement Assessment
3. Withdrawal of BJA order: (SMQ)
If valid return filled within 30 days of order
But liability of interest & late fee shall continue
Still not file PO may initiate recovery proceeding u/s 78/79
Example: A person default in FY 19-20, D/D for filling annual return for said period is 31/12/20
so, BJA order can be passed by PO on/before 31/12/25 (i.e. 5 year from 31/12/20)
5
Sec 64: Summary Assessment (SMQ)
1. SA: When PO has evidence + with prior approval of AC/JC
• Showing tax liability of person &
• Delay in order adversely affect revenue
Summary assessment order can be passed
2. Withdrawal of order: may be withdrawn by AC/JC (SMQ)

a) On application by taxable person made within 30 days of order
b) on his own motion, found order is erroneous
(may follow procedure under 73/74)
3. Deemed taxable person: (SMQ)

If taxable person to whom liability pertains not ascertainable in case of supply of goods
Person in charge of goods deemed TP & pay tax i.e. transporter, owner of warehouse
STUDENT NOTE

Audit
Basis Sec. 65 Audit by Tax authority (SMQ) Sec. 66 Special Audit (CA/CMA) (SMQ)
1) Who conduct audit Commissioner or person authorized by him CA/CMA nominated by commissioner
At place of business of RP/office
2) Notice 15 days’ notice required No such requirement of notice
3) Time limit Complete in 3 months + 6M extension by comm. Complete in 90 days + 90 days extension
by comm.
4) Reason to do audit No specific reason required At any stage of scrutiny/inquiry/
investigation if officer is of opinion that
• Value of goods not declared correctly
• Wrong avialment of ITC
5) Conduct of audit a) Po with assistance of officer verify a) Made with prior approval of comm.
doc./records/correctness of T/o, ITC etc. To get record examined & audited
b) RP to (VIP) b) Audit will be conducted even A/c
• Facilitate verification already audited in any Law
• Provide information
• Provide assistance
6) Other a) Date of commencement: Expense: Exp. of Audit determined & paid
• Date when record made available or by comm.
• Actual institution of audit at place of busi. w.e. is later
b) Period: could be FY or Part or Multiples thereof (no
need to pass sperate order for each FY
• Audit finding & reason to be intimated within 30 days from conclusion of audit
• PO may initiate action u/s 73/74 if tax not paid/short paid/ITC availed wrongly /Erroneous
refund
STUDENT NOTE

CHAPTER: 19 INSPECTION/SEARCH/SEIZURE & ARREST

(DPT. INVESTIGATIVE POWER)
INSPECTION SEARCH & SEIZURE ACCESS TO ARREST

BUSINESS PREMISE
1 4
2
3
These options shall be used only in exceptional circumstances & as last resort to protect govt. revenue
1
Sec 67(1): Inspection
• Meaning: An act of examining something By PO on reason to believe recorded in writing
• Softer provision than search
Circumstances: JC as reason to believe that
Taxable person [CESS] Transporter/warehouse keeper

1. Contravened any provision to evade 1. Keep goods have escaped payment
tax of tax
2. Claim excess ITC 2. Keep goods/ac in manner likely to
3. Suppressed transaction of supply cause evasion of tax
4. Suppressed stock of goods
Give authorization to PO for inspection of place of business of TP/transporter/warehouse

Reason to believe: More than suspicion less than evidence in hand
Inspection of goods in movement: (Sec 68)

1. Inspection during transit can be done without Autho. of JC
2. Inspection of conveyance carrying consignment > Rs 50000
3. Person in charge shall: produce doc./device for verification & allow inspection
Sec 67(2): Search & Seizure 2

• Meaning: An attempt to
1. find something
2. discover evidence of crime
by careful examination of place/person/subject etc.
Requirement:
1. Search warrant*:
Issued by joint commissioner/above rank officer
2. One lady officer
3. Officer show their identity card *Search warrant content: 2 VIP
4. Sign of person in charge & two witness on search warrant V: Violation under act
5. Before & after search officer & witness offer themselves V: Validity period
I: Name of issuing officer & person
for personal search to PIC Authorized for search
6. Panchnama signed by owner & witness containing list of I: Serial number of issued share warrant
goods & doc. Seized & copy given to PIC P: Place & date of issue
7. Officer put his name behind search warrant & return to P: Premise to be searched
issuing authority

Power
Power to officer (SMQ) Right to safeguard of person

1. Search & seizure goods (liable to 1. Seized goods/doc./things Not to retain
confiscation) & doc./books/things (relevant beyond necessary period
for any proceeding) 2. Not issued notice within 6M (+ 6M) release
2. If not possible to seize, goods may be seized goods/doc./things
detained 3. Photocopies/extract can be taken
3. Break/open door of premise/Almira/box if 4. Inventory of seized goods to be made by
access denied officer
4. Seal premise if access denied 5. Perishable/hazardous goods can be disposed
5. However, release books/doc./things if not immediately
relied upon – within 30 days of SCN 6. Conduct search in accordance with CPC
(record of search sends to principal
comm./Comm. Of GST rather, magistrate)
Confiscation of goods when allowed:

1. Liable but No registration
2. Not account for goods liable to pay tax
3. Supply/receive goods in contravention of provisions of act/rules
4. Contravene any provision of act/rule to evade tax
Manner of release of confiscated goods
1. Provisional basis 2. Actual return 3. Disposal of goods

• Execute bond When no notice issued within 6M • Perishable/hazardous goods
• & provide security/made (+ 6M Extn by comm.) • Constraint of storage place
payment of tax + int. + penalty Dispose & prepare inventory
3
Sec 71: Access to Business Premises
• During proceeding officer has access to business premise required & can inspect BOA, doc., computer, computer,
software etc.
• Duty of PIC to provide following doc.* if called for: (CAR RTI)
1. cost audit report
2. Audited annual financial accounts
3. other relevant record
4. Records prepared/maintained by regd. person & declared to PO
5. Trial Balance
6. Income Tax audit report Do not confuse sec 71 (more general) with
sec 67 (applicable in specific circumstances)
STUDENT NOTE

4
Sect: 69 Arrest
• Meaning: Taking custody of a person under some lawful command/authority
• Arrest can be authorised by commissioner (SMQ)
• When tax evasion is more than 2 crores
(In repeated offender case above limit not apply)
Safeguard for person placed under Arrest: (SMQ)

1. For cognizable Offence: inform him grounds of arrest & produce before magistrate within 24 hours (Amt. > Rs 5 crore)
2. For non-cognizable & bailable offence: AC/DC can release on Bail
3. Code of criminal procedure, 1973 shall apply
Power to summon:
1. During enquiry PO may summon any person to appear before him & produce such Doc./evidence
2. Person is duty bound to appear & tender evidence (himself/through auth. Representative)
3. Doc./evidence shall be specific, calling entire BOA is not permissible
4. Person can modify/withdraw statement but not with inordinate delay
5. If not appeared on summon penalty up to Rs 25000 along with action under IPC
Guideline for summon

1. Should be issued as last resort
2. Language should not be harsh & Illegal – not cause material stress
3. Prior written permission of AC/Above with reason in writing
4. Senior mgt., official of large company/PSU should be issued only when indicator of their involvement in decision
leading to loss of revenue
5. Respect time of appearance, don’t make them wait for long hours
Sec 72: Officers to Assist PO

• Police
• Railway
• Custom
• Officer engaged in collection of GST & land revenue
• All village officers
• Notified other officers
STUDENT NOTE

CHAPTER: 20 DEMANDS & RECOVERY

PROCCEDING IN CASE WHERE
Non-Payment of Tax | Short-Payment of Tax | Erroneously refund | ITC Wrongly Availed or Utilised
Sec 73: Bonafide Mistake (SMQ) Sec 74: Deliberate Attempt

1
Cases other than fraud/wilful Cases by reason of fraud/wilful
misstatement/suppression of facts misstatement/suppression of facts
2
Voluntary payment before SCN Issue of SCN Issue of SCN Voluntary payment before SCN
Specify Specify
Time for SCN Time for SCN
amt. of Tax + + amt. of Tax
3 months before + interest 6 months before
interest +
Pay = Tax + Interest last date of D.O 100% penalty last date of D.O Pay = Tax + Interest + 15 % penalty of tax
penalty
(I.e. 2 years & & reason & reason (I.e. 4 years & (SMQ)
9 months from 3 6 months from
Fullpayment Short payment D/D of A.R) D/D of A.R)
Short payment Full payment
No SCN No SCN
No recovery proceeding
SCN
If show case notice is issued for earlier
period & same default for other period
= issue statement for other period
4
Payment of tax + interest Payment of tax + interest

As mentioned in SCN As mentioned in SCN
5
If payment is If payment is not If payment is not If payment is
made within 30 days made within 30 days made within 30 days made within 30 days
of SCN & representation is of SCN of SCN
given in defence DEMAND
All preceding shall ORDER Amt pay: Tax + interest +
be concluded penalty 25 % of tax
Period: within 3 yrs. Period: within 5 yrs. All preceding shall

from due date of from due date of be concluded
annual return annual return
Pay Tax as DO = Tax + Interest +penalty SCN: Show Case Notice Pay Tax as DO = Tax + Interest +
6
10% of tax or 10000 WIH DO: Demand Order/Adjudication order 100% penalty
DD: Due Date
AR: Annual Return
Penalty payable compulsorily If payment is not If payment is
made within 30 days made within 30 days
of DO of DO
Amt pay: Tax + interest Amt pay: Tax + interest

+ penalty 100 % of tax + penalty 50 % of tax
IN SHORT
Particular Sec 73 Sec 74
SCN (SMQ) 3 months before last date of D.O 6 months before last date of D.O
(I.e. 2 years & 9 months from D/D of A.R) (I.e. 4 years & 6 months from D/D of A.R)
DO (SMQ) within 3 yrs. within 5 yrs.
from due date of annual return from due date of annual return
Penalty
• Before issuance of SCN No Penalty 15% of tax
• Within 30 days of SCN No Penalty 25% of tax
• Within 30 days of order 10% of Tax/10000 WIH 50% of tax
• After 30 days of order -do- 100% of tax
Other points:
1. PO may inform detail of tax + int + Penalty to Assessee before SCN
2. On concl. Of proceeding under 73/74 then proceeding u/s 122 & 125 deemed to concluded
(but not 129 & 130 this makes detention, seizure, confiscation sperate proceeding from recovery of Tax)
3. Suppression means non-declaration of fact/info required to disclosed under GST
Not duty of taxable person to declare every fact if not asked for

Sec 73(11): Where Self Assessed tax/Amt. collected not paid within 30 days from D/D then Penalty is mandatory
(10% of tax/10000 WIH) SMQ, MTP M20/M22
Short/non-payment of self-assessed tax within due date clarification
Not self-assessed tax not paid within 30 days of D/D

Self-assessed tax not paid within 30 days of D/D
Voluntary payment before SCN/within 30 days of SCN
GSTR 3B filled (tax paid) after If proceeding u/s 73 (SCN) invoked before
30 days of D/D but before SCN filling GSTR 3B filled (tax paid) Allowed & *No penalty
Sec 73(11) not apply & *no penalty Sec 73(11) apply & Compulsory penalty
Note: however general penalty can be imposed u/s 125(up to 25000)

Sec: 75 General provisions (determination of tax)
1. Period of stay (court/tribunal) excluded from time limit to issue SCN/DO
2. If initially notice issue u/s 74 but fraud not proved then continue u/s 73
3. Order due to direction of Court/tribunal shall be issued within 2 yrs. From issue of direction
4. Opportunity of being heard (oobh) given
5. Hearing can be adjourned, max. 3 times
6. Order = speaking (set out relevant facts & basis of decision)
7. Amt. To paid (Do) = < Amt. To be paid (SCN) MTP N19/20
8. If tax amt. Modified by court/tribunal interest & penalty changes accordingly
9. Interest = mandatory (even if not specified in SCN) MTP N19/20
10. If order not passed within time limit (73/74) – proceeding concluded SMQ
11. If penalty u/s 73/74 = no other penalty applies
12. If appeal filled by Dept. Against, decision of court/AT – period between date of decision of higher & lower
authority = Excl. From period of SCN/DO
13. Self-assessed tax/interest (GSTR-1), remains unpaid recovered u/s 79, No SCN required
14. Order issuing authority may rectify any error apparent on face of record RTPN20
• Bring to notice within 3 months (assessee)
From date of issue of notice
• Own motion 6 months
However, if rectification purely in clerical/arithmetical error/accidental ship/omission
No time limits applicable
Sec 76: Tax Collected but not Deposited:(SMQ, MTP J21)

1. Every person who has collected any amount (Naming Tax) shall pay amt. to Govt, whether supply was
taxable or not,
If not paid
PO shall issue SCN to pay Tax + interest @ 18% u/s 50 + penalty.
(From date of collection to date of payment)
Note: No time limit for SCN

2. PO shall issue demand order within 1 year (Excl. stay period) from date of notice
Pass speaking order after giving opportunity of being heard (OOBH)

3. if any surplus left, shall credited to Consumer Welfare fund/refunded to person who borne incidence of tax.
Sec 77: Tax wrongly collected & paid to CG/SG: RTP N20
• CGST + SGST paid instead of IGST or vice versa (by treating inter sate as intra state or vice versa)
• Refund shall be available after payment of correct Tax (no interest is levied in this case)

Sec 78: Initiating Recovery Proceeding PEQ N21

• If amt. payable in demand order not paid within 3 months - recovery proceedings initiated.
• Po may specify period of less than 3 months to protect interest of revenue (By recording reason in writing)
Sec 79: Modes of Recovery of Tax: [EAT SMALL OTS] (SMQ, MTP N19/N18)
O: Deduction from any money owed to such person. (i.e. deduction from refund payable)
T: Recovery from third person: Garnishee proceedings (i.e. bank, debtor)
S: sale of goods which under control of PO related to defaulter.
S: Recovery through surety

M: Recovery as fine imposed by magistrate
A: sale of any movable or immovable property:
(if remain unpaid for period of 30 days, PO May sold property through auction)
L: Recovery as arrear of land revenue (through district collector)
L: Recovery from company in liquidation (through liquidator)
EAT: Recovery from execution of decree of civil court

• SGST officer recover CGST dues & credit to CG.
• If partially recovered: pro rata distribution between CG/SG)
Sec 80: Payment of tax in instalments (monthly)

Comm. May allow payment in installments (max. 24 + interest)
• Default in one instalment, whole amt. Become payable.
(facility withdrawn)
The facility of installments shall not be allowed where –
1. Person defaulted on payment for which recovery is on
2. Person not allowed to make payment in installments in PFY
3. Amount of instalment facility < Rs. 25,000
4. Self-assessed liability in any return
Sec 80: Transfer of property after amt. due RTP M22
• Creates charge • Made for adequate

• parts with property by consideration &
way of • In Good faith &
sale/mortgage/exchange • No notice of pending
proceeding/previous
Void if done to defraud govt. permission of PO
Valid
Sec 82: GST due to have first charge
Subject to IBC
Section 83 Provisional attachment to protect revenue

Cases: initiation of preceding under assessment/ISS/demand & recovery
Prov. Attachment: Comm. May (in writing) for protecting interest of revenue
[Attach provisionally property + bank account]
Time period: max. 1 year
Note: person can file objection & comm. To Provide opportunity of heard

Other points
1. If property is perishable/hazardous nature, & person pays amt. equal to market price or amount payable
whichever is lower, property shall release
2. debt: prohibit creditor from receiving debt & debtor may pay to PO (Deemed paid to defaulter)
3. security: prohibit Trf/receiving dividend
Sect 84: Continuation/validation of recovery proceedings

• Demand order served: assessee files Appeal/revision Application
Office to Stay recovery proceeding

• Continue recovery if appeal disposed off in favour of PO & no fresh notice required
• When Govt dues enhanced: Comm shall serve a fresh notice for demand of the amount enhanced.
• When Govt dues reduced: Comm shall not serve a fresh notice but give intimation of such reduction.
Clarifications in respect of procedure for issuance of SCN u/s 74 converted into sec 73
where SCN issued u/s 74(1), AA or appellate tribunal concludes that SCN is not order, required to be issued within a
sustainable u/s 74, reason that charges of fraud/willful- period of two years from date of
misstatement/suppression of facts not established and directs PO to re- communication direction by AA or
determine amount appellate tribunal/court
How amt. to be recomputed

SCN issued u/s 74(1) converted into Sec SCN was issued u/s Sec 74(1) within 2 Amount can redetermined
73(1) years 9 months from DD to file annual
return
SCN issued u/s 74(1) converted into Sec SCN was issued u/s Sec 74(1) beyond 2 Amount cannot be redetermined.
73(1) years 9 months from DD to file annual Proceedings to be drop off.
return
SCN issued u/s 74(1) for multiple years CN was issued for multiple years u/s Sec Amount can redetermined only in respect
together and then converted into S. 73(1) 74(1). Some years were within 2 years 9 of FY wherein SCN was issued within 2
months & some beyond 2 years 9 years 9 months.
months.
Note: At first instance officer feel that he is issuing SCN within time limit of 4 years 6 months, as this is time limit to issue
SCN u/s 74, but then it is converted into S. 73 case, thus, we are checking 2 years 9 months in all cases
STUDENT NOTE

CHAPTER: 21 OFFENCE & PENALTIES
Sec 122: Penalty for certain offences (SMQ)

Sec 122(1): Where a taxable person who- (2 STAR ITC) CFO
S: *Supplies G/S without or with false invoice
S: Suppresses turnover
T: Fails to deduct TDS u/s 51 or deducts less
T: Fails to deduct TCS u/s 52 or collect less
A: Disposes off/tampers detained, seized/Attached goods
R: Fails to obtain registration
Furnishes false info regard to Regn. Particulars
Issues invoice using other’s Regn. person
R: Fraudulently obtains refund
Liable to pay Penalty of:
I: *Issues invoice without supply (a) Rs. 10,000 (CGST) or
I: *Take ITC without actual receipt of G/S (b) Amount involved
T: Transports taxable goods without cover doc. Whichever is higher
T: Tamper/destroy evidence/doc.
C: Supplies/transports liable for confiscation
C: collect tax/collect tax by fraud but fails to pay to Govt beyond 3 months from due date
C: *Distribute ITC in contravention of sec 20(ISD)

F: Falsifies/substitute financial records (Financial info.)
Fails to maintain books/doc.
Fails to furnish info/doc.
O: Obstructs officer on duty
(SMQ)
Sec. 122 (1A): In case of bogus transaction such as: *SIC • Person who cause to
S: *Supplies G/S without or with false invoice commit (consultant)
or
I: *Issues invoice without supply
• Person benefited
I: *Take ITC without actual receipt of G/S
C: *Distribute ITC in contravention of sec 20(ISD)
Liable to pay Penalty of:
Amount of Tax involved
Sec. 122 (2): Where offense committed (SMQ)
Not involve fraud/wilful Involve fraud/wilful

misstatement/suppression of facts misstatement/suppression of facts
Penalty Penalty
• 10 % of tax involved • Tax involved
• Rs 10000 • Rs 10000
W.e. is higher W.e. is higher
Sec. 122 (3): Other person (for which no penalty covered above) (SMQ)
1. Any person not directly involved in offense specified in 122(1) but is a party to evasion
2. Aids/abets by any such offense
3. Do not attend summons/produce doc.
Then penalty up to Rs. 25,000
Sec 123: Penalty for failure to furnish info return:

Penalty: Rs. 100/day during such failure continues Max. Rs. 5000
Sec 124: Fine for failure to furnish statistics u/s 151:

Penalty: Rs. 10000
In continuing default Rs. 100/ day maxi. Rs. 25000
Sec 125: General Penalty:

Where no penalty provided for any Contravention: Rs. 25,000
Sec 126: General disciplines related to penalty (SMQ)

1. No Penalty in case (SMQ)
a) Minor breaches (< Rs. 5000)
b) Procedural requirement
c) In case of doc. error apparent on face without fraud intent
2. Penalty depend on degree & severity of breach
3. No penalty without SCN + oobh
4. Specify nature of breach & provision under which penalty specified
5. Voluntary disclosure considered as mitigating factor to quantify penalty
Note: Provision not apply if penalty specified fix sum/% amt.
Sec 129: Detention/seizure & release of goods/conveyances in transit

• Person transport/store goods while in transit in contravention of provision of act then
• Goods + Doc.+ Conveyance liable for detention/seizure
However same can be released:
Owner of goods come forward Owner doesn’t come forward
Taxable goods: penalty Taxable goods: penalty

200% of tax payable • 50% of value of goods
OR
ON PROVIDING • 200% of tax payable
SECURITY
Exempt goods: OF EQUIVALENT AMT.
w.e. is higher
• 2% of value of goods
• Rs. 25000 Exempt goods:
w.e. is less • 5% of value of goods
• Rs. 25000
w.e. is less
Other points:
1. PO shall issue notice within 7 days of detention/seizure
2. Order within 7 days of serving notice
3. Penalty imposed after giving oobh, all proceedings shall deemed to conclude
4. Person fails to pay penalty within 15 days from receipt of order
Goods/conveyance liable to sold/disposed
(for perishable/hazardous goods 15 days can be reduced by po)
5. However, transporter get his conveyance released on payment of
Penalty or Rs. 1 lakh w.e. Is less
Circular: owner of goods?

• In case consignment of goods = either consignor/consignee should be deemed to owner (invoice/other doc. Available)
• In other case PO should determine owner of goods

Rule 144A: Recovery of penalty by sale of goods/conveyance

1. If penalty not paid within 15 days goods/conveyance sold through action incl. E-auction for which notice
should be issued
However, if penalty + exp. to safe custody/handling paid before such notice PO cancel auction & release them
2. Last day for bid/auction not be earlier than 15 days from date of notice (except: perishable/hazardous goods)
3. PO specify pre- bid deposit = returned to unsuccessful bidder = is if successful bidder fail to make full
payment it may be forfeited
4. PO issue notice successful bidder to make payment within 15 days
5. After payment PO t/f possession + ownership + issue a certificate
6. If appeal is filled u/s 107 proceeding of recovery deemed to stayed
Rule 154: Disposal of procced received from sale

1. Admin cost of recovery
2. Amt. to be recovered/ penalty payable u/s 129
3. Other amt due under GST act
4. Balance e- cash ledger if reg./bank a/c if Unreg.
Sec 130: Confiscation of goods & conveyances (RTP N18)

Any person: 2 RACE
1. Supply/Receive goods in contravention of Act for evasion of tax
2. Supply of goods liable to tax without Registration
3. Not Account for goods liable to tax
4. Use Conveyance for carriage of goods in contravention of act
5. Contravention of provision of act with intent to Evade tax
• Goods/conveyance liable for confiscation & penalty u/s 122

• conveyance not be confiscated if owner of conveyance proves same to be without his knowledge
however, PO may provide option to pay fine as thinks fit: Sec 130 is delinked from sec 129 if PO is of opinion
• But not exceed – [market value – tax chargeable] that movement of goods done to evade
• Not less than – [100% of tax payable on goods] tax he can directly invoke sec 130
However, owner of hired conveyance may pay fine equal to = tax payable on goods
In Lieu of confiscation
PO After giving reasonable time not exceeding 3 months to pay fine/penalty may dispose goods/conveyance &
deposit proceeds with Govt
STUDENT NOTE

Sec 132: Punishment for certain offences (SMQ, RTP M20, PEQ M18, MTP N18)
Prosecution & imprisonment SIIC FOOCT CA
Any person Who commit/cause to commit/retain benefit of
a) S: Supplies G/S without or with false invoice with intent to evade tax
b) I: Issues invoice without supply leading to wrongful ITC/refund of tax
c) I: Take ITC without invoice/bill
d) C: collect tax/collect tax by fraud but fails to pay to Govt beyond 3 months from due date
e) F: Falsifies/substitute financial records (Financial info.)

Fails to maintain books/doc.
Fails to furnish info/doc.
f) O: any other Evade tax/ fraudulently avail refund not cover above
g) O: Obstructs officer on duty
h) C: Supplies/transports liable for confiscation
i) T: Tamper/destroy evidence/doc.
j) C: Receives /supply services with reason to believe are in contravention of Act

k) A: Attempts/abets commission of any offences mention above
Shall be punishable with:

Tax evaded/ > 5 crores Fine + imprisonment 5 Yrs.
ITC wrongly taken > 2 crores ≤ 5 crores Fine + imprisonment 3 Yrs.
Refund wrongly taken > 1 crore ≤ 2 crores Fine + imprisonment 1 Yr.
Repeated offence Any amount Fine + imprisonment 5 Yrs.
Commit/abet FOT Fine /imprisonment 6M/both
Note: jail min 6M in absence of Special/adequate reason
Offence (PEQ J21)
Cognizable & non-bailable Non-Cognizable & bailable
Serious offence + Less Serious offence +

where arrest can be done where arrest
without warrant warrant required
produce before magistrate AC/DC in charge of police station

within 24 hours can grant bail
Offence a) to d) SIIC Amt. > 5Cr. All other offence any amt.
Sec 133: Liability of officers/other persons

Omission/default: willfully disclose info/content other than
1. In execution of duty
2. For persecution of an offense
Default by:
1. person engaged in statistics compilation/collection u/s 151
2. officer having access to Info
3. person engaged in provision of service on common portal
Punishment: fine up to Rs. 25000 or imprisonment up to 6 months or both

Sec 134: Cognizance of offences

• No court inferior to Magistrate of First Class, shall offence
• For taking cognizance, previous sanction of Commissioner required
Sec 135: Presumption of culpable mental state

State of mind where act is intentional, implication is understood, no coercion etc.
Sec 136: Relevancy of statements under certain circumstances

Statement made & signed by a person on appearance in response to any summon valid for the purpose of
proving, truth of facts which it contains, when person who made statement is dead/cannot be found/incapable
of giving evidence.
Sec 137: Offences by companies

Offense committed by Person guilty
1. Company Director/manager/secretary/other person if it This sec not apply if person prove that
is proved that offense has been committed offense committed without his
• With his consent/connivance knowledge or he exercises all due
• He is attributable to any negligence diligence to prevent it
2. Firm/HUF/LLP/Trust (SMQ) Partner/Karta/managing trustee
Sec 138: Compounding of offences

(means payment of money instead of undergoing prosecution)
Cases, where compounding is not possible:
1. Offence has been allowed to compound earlier
a) Offences u/s 132(1)(a) to (f)
b) Aiding/abetting above offense
c) Any offense supply > 1 crore
2. Offence is offense in some other law
3. Convicted of offense by court
4. Offense under sec 132(1)
a) Obstruct any officer on duty
b) Tampers/destroy material evidences/doc.
c) Fails to provide Any info called
Compounding fees: (allowed only after payment of tax+ interest + penalty) (SMQ)
Minimum limit for compounding: higher of: 50% of tax involved or Rs. 10000
Maximum limit for compounding: higher of: 150% of tax involved or Rs. 30000
STUDENT NOTE

CHAPTER: 22 APPEALS & REVISION
AN OVERVIEW
Proceeding
1. BJA
2. Sec 73/74/76 Adjudicating
3. Other Authority order
Assessee [3M + 1M] Dept. Only

Dept. [6M + 1M] [6M + 3Yrs.]
1 2
Appellate Authority (AA) Revisionary Authority (RA)
Assessee [3M + 3M] Assessee [3M + 3M]

Dept. [6M] Dept. [6M]
GST Appellant Tribunal (AT)
State Bench In Case Even A National Bench

In Case No
Or Issue Related Single Issue Or
Area Bench Related To POS Regional Bench
To POS
180 days
+ delay condoned
4 5
SC & HC Only Deals with Question of Law Not Fact

High Court Supreme Court
STUDENT NOTE
Hierarchy of GST officer

Principal commissioner/commissioner
Joint/additional commissioner
Assistant/deputy commissioner
Administer/Proper officer (PO)

Sec 107: Appeals to Appellate Authority (AA) (SMQ)

Case A: When Taxpayer is aggrieved
1. Order passed by adjudicating authority – Assessee may file appeal
2. Time limit: within 3 months (+ 1M condone on sufficient cause) from date of communication of order
3. Submit
a) Form GST APL-01 = provisional acknowledgement Issued
b) Submit* copy of order within 7 days of appeal = final acknowledgement issued
c) Mandatory pre-deposit: (SMQ)
• 100% of (tax + interest + penalty) as accepted by assessee Interest @ 6% p.a. on refund of deposit
• 10% of tax amt. in dispute or max. 25 crore (CST) [IGST 50 crore] from date of payment till date of refund
Note: Appeal against order of detention/seizure u/s 129(3), pre- deposit = 25%
4. Date of filling appeal
• If copy of order submitted within 7 days = date of appeal filling
• Otherwise = date of submitting copy of order
Where decision/order appealed is uploaded on common portal, final
acknowledgment, indicating appeal number, shall be issued in FORM
GST APL-02 by AA.
Date of issue of provisional acknowledgment shall be
considered as date of filing of appeal
Example:
1) Adjudicating authority passed order on 23rd July & same communicated to taxpayer on 28th July.
So, period of 3 month will be computed from 28th July
2) Appeal filed & prov. Ack. Issued on 10 Aug. Tax payer submit copy of order on 15 Aug. (i.e. within 7 days)
So, date of filling appeal is 10 Aug.
3) In above case if copy was submitted on 20 Aug. (i.e. after 7 days)

So, date of filling appeal will be 20th Aug.
Case B: Appeal by Dpt. (Review Application)

1. Comm. On his own/request from other comm.
2. Examine record of proceeding in which PO has passed order to satisfy himself about legality/propriety of
decision
3. Direct subordinate to apply to AA within 6 months (1M) in GST APL-03 [No pre-deposit Required]
Appeal process followed by AA:

1. Follow principal of natural justice: GOA
• Permit additional ground
• Oobh
• Adjournment (max. 3)
2. AA May confirm/modify/annul order of adjudicating authority but can’t refer back the Case
3. May increase penalty/tax but opportunity of being heard
4. Order should be speaking order
5. Time limit to dispose appeal 1 year (exclude period of stay)
6. Communicate order to appellant/respondent/adjudicating authority
Order by Appellate authority

Additional Comm./Joint Comm. Comm. (Appeals)
Assistant comm./deputy comm./superintendent Not below rank of JC (Appeal)

Sec: 108 Power of Revisional Authority (RA) (SMQ)

(If no appeal by Dpt. In 6 month) RA can’t exercise power of revision if:
Revisional authority 1. Appeal already filled before AA/AT/HC/SC
1. on own motion 2. 6 Month not expired/after 3 year expired
2. upon information received (excluding stay)
3. Already revised earlier
3. on request from Comm. 4. Revisional order
Call & examine record of any proceeding 5. However, point which is not subject to
appeal can be taken for revision till
If finds that order is • 1 yr. from date of order of appeal
1. Erroneous/prejudicial to revenue • 3 yr. from date of original order
Whichever is later
2. Illegal, improper
3. Not taken a/c material fact
4. Due to observation of CAG
• Operation stayed by RA & after giving oobh, make further enquiry
• Pass order as RA thinks just & proper – enhancing/modifying/annulling the order
Order by Revisionary authority
Additional Comm./Joint Comm. Comm./PC
Assistant comm./deputy comm./superintendent Add. Comm./JC
Sec 112: Appeal to GST Appellate Tribunal (AT)

Appeal Against order of AA/RA 1
By Assessee: By Department:
1. Time: within 3M (+3M) GST APL 05 1. Time: within 6M from date of order
[File copy of order within 7 days = same 2. No pre-deposit/Fees GST APL 07
Generation of provisional/final ack. &
Date of filling appeal same as sec 107]
2. Fees: Rs 1000 for every 1lakh of tax/ITC involved Memorandum of cross objection:
(Max.25000) If someone appeal against order, court provide
3. Pre-Deposit: 20% of tax dispute respondents a chance to file cross objection
(Max. 50 crore) (CGST) [IGST 100 Crore] 45 days (+45days) Form GST APL 06
[Refund with interest @ 6%]
2 GST Appellant Tribunal (AT)

Refuse appeal at discretion if amt. involved < Rs 50000 (SMQ)
JM: Judicial Member

State Bench TM: Technical Member National Bench
In Case No In Case Even A
P: President
Or Single Issue Or
Issue Related C: Central
Area Bench To POS S: State Related To POS Regional Bench
Hearing by bench where less than 3 members:

1 JM(P) + 1 TM(C) + 1 TM(S) 1 JM(P) + 1 TM(C) + 1 TM(S)
With 2 members: With approval of President
With 1 member: If appeal amt. up top Rs 5 lakh &
No ques. Of law involve
Process: Power of AT: (ED CAP)

1. AT not bound with CPC, guided by principal of natural justice & VESTED with powers of civil court under CPC 1908 4
regulate its own procedure 1. Examining on oath
3 2. AT may confirm/modify/annual decision or may also can refer 2. Discovery & inspection
back to AA/RA/Adjudicating auth. 3. Issuing Commission
3. Time limit to pass order = 1Year 4. Enforcing Attendance
4. Send copy to AA/RA/Adj. auth./appellant/jurisdictional comm. 5. Compelling Production of books of a/c
books of a/c
Appeal Against order of State/Area Bench
Sec 117: High Court

1. Admit if case involves substantial question of law
2. Appeal within 180 days + Extn. (no limit)
3. Form: GST APL 08
4. Code of civil procedure shall apply
5. To be heard ≥ 2 judges
6. Admit only after 100% payment of pre- deposit
Appeal Against order of Further Appeal If HC Certifies

National/regional Bench Case to be fit one
Sec 118: Supreme Court

1. Time limit as per code of civil procedure
2. Admit only after 100% payment of pre-deposit
Question of law means:

Ques related to legal principal & interpretation
of law & can be applied in similar situation
RULE 112: (SMQ)

Appellant not allowed to produce before AA/AT any evidence, other than evidence produced before
adjudicating authority
Exception:
1. Adj. authority/ AA refused to admit evidence which should have been admitted
2. Appellant prevented from producing evidence which called to be produced
3. Appellant prevented from producing evidence which relevant to ground of appeal
4. Made order without sufficient opportunity to appellant to produce evidence related to any ground of appeal
Sec 116: Authorised Representative

A person can appear before officer/AA/AT as “Authorised representative”
1. Relative/regular employee
2. Advocate/CA/CMA/CS
3. GST practitioner
4. IDT gazette officer (only after 1 year of resignation/retirement)
Disqualification:
1. Dismissed/removed from Govt service
2. convicted of offence under IDT
3. guilty of misconduct
4. Adjudged Insolvent
Sec 121: Non-appealable decisions & orders TIPS (SMQ)

T: Order of Comm to direct transfer of proceedings from one officer
to another
I: Order u/s 80 (Payment of tax in installment)
P: Order sanctioning prosecution
S: Order of seizure/retention of BOA/register/other documents

Withdrawal of Appeal [New Rule 109C]:

1. Appellant may, before issuance of SCN/order, whichever is earlier
in respect of any appeal filed in FORM GST APL-01
file an application for withdrawal of said appeal by filing an application
2. However, where final acknowledgment in FORM GST APL-02 issued, withdrawal would be subject to
approval of AA & decided by AA within seven days of filing of Application.
3. Further, that any fresh appeal filed by appellant pursuant to such withdrawal shall be filed within time limit
specified
STUDENT NOTE

CHAPTER: 23 ADVANCE RULLING
Advance Ruling Authority:

• Authority of advance ruling (AAR)
• Appellate authority of advance ruling (AAAR)
Advance Ruling: decision provided by authority to an applicant on ques related to supply of G/S being
undertaken or proposed to be undertaken by applicant
Applicant: any person registered/desirous to obtain registration
Objective for setting up of advance ruling mechanism: (CRPF) (SMQ)

1. Provide certainty in tax liability
2. Reduce litigation
3. Pronounce ruling in transparent & in expensive manner
4. Attract FDI by ensuring certainty in taxation aspect of transactions
Sec 97: Questions for which advance ruling can be sought (CAR LIST) (SMQ)
1. Classification of any G/S
2. Applicability of a notification issued Power of AAR & AAAR (ED CAP)
3. Registered required or not VESTED with powers of civil court under CPC 1908
4. Tax Liability on supply 1. Examining on oath
5. Admissibility of ITC of tax paid 2. Discovery & inspection
6. Whether transaction is supply or not 3. Issuing commission
7. time & value of supply 4. Enforcing attendance
5. Compelling production of books of a/c
Following ques can’t be raise for advance ruling (SMQ)
• Question already pending/decided in proceeding
• Determination of place of supply
Sec 96 & 99: Composition of authority (AAR) & Appellate authority (AAAR)
• Auth. Made under state /Ut act not under CGST hence same shall also be considered for CGST/IGST
• Govt. shall appoint JC or above as member of AAR
• Ruling will be applicable only within jurisdiction of concerned state/Ut
Sect 103: Applicability of Advance Ruling (SMQ) Not applicable to other person
in similar situation
• Binding only on the applicant and concerned + jurisdictional officer
• No fix time period – binding till law/facts/circumstances change based on which ruling is made
Sec 102: Order – Mistake Apparent on Records

AAR/AAAR may rectify within 6M from order
1. On its own
2. Brought to notice by applicant/office
Note: oobh to applicant if rectification result in enhancing liability/reducing ITC
Sec 104: Advance Ruling void in these cases (SMQ)

1. Obtained by fraud/suppression of facts/misrepresentation (void ab initio) + oobh Given
2. All provision is applicable as if such Advance Ruling had never been given
3. Time between advance ruling & order of making void shall be excluded to count time limit u/s 73/74
Sec 98: Procedure for obtaining advance ruling (SMQ)
1 2
Application Send copy of Application

+ fees Rs 500 + call for relevant records
Applicant AAR 3
Concerned
officer
Examine application/record & pass order
Admitting Application Rejecting Application
Oobh to applicant & officer If ques raised already

Pronounce ruling within 90 days pending/decided
(copy send to applicant +
concerned & jurisdictional Speaking order giving
officer) reason for rejection
If difference in opinion
among AAR
two members
– Refer point to AAAR
Sec 98: Appeal Against order of AAR to AAAR
AAR Applicant Concerned

officer
Difference in Aggrieved
opinion (application + fees Rs 10000) Aggrieved
(application + No fees)
Within 30 days
(+ 30-day Extn if sufficient cause)
AAAR If difference in opinion

among AAAR
two members
Oobh to both parties & confirm/modify – No Advance Ruling
ruling of AAR within 90 days
(copy send to applicant + concerned &
jurisdictional officer + AAR)

CHAPTER: 24 LIABILITY TO PAY IN CERTAIN CASES
Sec 85: Transfer of business in whole/part (SMQ)

i.e. sale/gift/lease/licence/hire or any other case
• Up to date of transfer: transferor & transferee jointly and severally liable to pay dues (Tax + interest + penalty)
[Note: penal liability on transferee]
• From date of transfer: transferee liable
(If transferee already regd. applies for amendment of registration)
Sec 86: Liability of agent & principal (SMQ)

• Where agent supplies/receives any taxable goods on behalf of his principal
• Agent & principal jointly and severally, liable
Sec 87: Amalgamation/Merger (SMQ)
Effective date of Date of order Both co. Treated as

merger distinct till here
Supply/receive G/S
from each other during
this period, include in
their respective T/o
Sec 88 & 89: Company in liquidation + liability of director of Pvt. Co. (SMQ)
1. liquidator shall intimate of his appointment to Comm. within 30 days of appointment
2. Comm. Make inquiry & notify within 3 months amt. of dues (Tax + interest + penalty) payable by co.
3. If Pvt. Co. unable to clear its dues: every person been director during that period to which dues relates will
be liable (means even resigned) (RTP M22)
Except: Proves that non-recovery not attributed to any gross neglect/breach of duty on his part
4. However, if Pvt. Co. converted into Pub. Co. = director’s not liable
Sec 90: Liability of partners (SMQ)

Firm/LLP: firm & each partners jointly & severally, liable
Retiring partner: intimate retirement to Comm.
liable up to date of retirement

(If no intimation within 1 month, liable up to date of intimation)
Sec 91: Guardians/trustees

business carried up by Guardian/Trustee/Agent on behalf/for minor/incapacitated person, liable to pay dues
Sec 92: Liability relate to business estate under control of (SMQ)

• Court of Wards
• Administrator General
Liable to pay dues
• Official Trustee
• Receiver/manager

Sec 93: Special provisions

1. Death of person liable to pay dues: (SMQ)
Business continued Business discontinued
legal representative/other person Legal representative liable to extent of

carrying business shall be liable estate of deceased
2. Partition of HUF/AOP: Members shall be jointly & severally liable up to partition

3. Dissolution of firm: Partners of firm jointly & severally liable up to dissolution
4. Termination of Guardianship/Trust: ward/beneficiary liable to pay
Sec 94: other cases

• Discontinuation of business by firm/AOP/HUF
Partners/members jointly
• change in constitution of firm/AOP & severally Liable
• Dissolution of AOP/Firm/partition of HUF
STUDENT NOTE

CHAPTER: 25 MISCELLANEOUS PROVISIONS
Sec 144: Presumption as to documents

Documents produced/seized/received from place outside India in Couse of proceeding against any person
Unless contrary proved by such person, presume:
1. Content deemed true
2. Handwriting/signature considered of such person
Sec 145: Deemed documents & admissible for proceedings

1. Micro films
2. Facsimile copy
3. Computer printout
4. Information stored electronically
Sec 146: Common Portal:

• For registration/tax payment/returns (www.gst.gov.in)
• For E-way bill (www.ewaybillgst.gov.in)
Compliance rating assigned to every regd. person on scale of 10 (Not permanent revised from time to time)
(SMQ)
Rounded off
• ≥ 50 paise = increase to rupee
• < 50 paise = ignore
Sec 151 & 152: Power to collect statistics & Bar on disclosure of information: (SMQ)
1. Comm/officer auth. By him direct any person to furnish info under this act
2. No info under u/s 150/151 to be published without consent of concerned person/auth. Representative and
use for proceeding without oobh
3. No restriction to publish info if: desirable in public interest in opinion of comm. – “Exceptional reporting”
Sec 158: Disclosure of information by public servant (SMQ)

Particulars given in statement/act/return/accounts &records/record of evidence shall be treated confidential
[except: exceptional conditions]
1. For prosecution
2. For carrying out objects of CGST Act
3. For service of notice/recovery of demand
4. For furnishing information to Court in proceeding where Government is
party
5. For audit of tax receipts/refunds
6. For inquiry into the conduct of a GST officer
7. For enabling levy, realisation of any tax
8. In lawful exercise of powers
9. For enquiry into charge of misconduct by professional
10. For data entry on automated system
11. For fulfilling requirement under any other law in public interest.
STUDENT NOTE

Section 159: Publication of information (SMQ)

If Comm/authorized officer, consider necessary in public interest
To publish name of person & other particulars of proceeding can do so
However, no publication related to penalty if:

1. Time for till appeal not expired
2. Appeal presented but not disposed off yet
Sec 161: Rectification of errors apparent on the face of record (SMQ)

Any authority may rectify* its mistake apparent on face of
1. Decision/order/notice *May rectify
2. Certificate
3. other document SUO Moto Brought to notice by officer Brought to notice by affected
person within 3 months
Decision on debateable point of law
isn’t mistake apparent from face Max up to 6 months
However, no time limit if purely arithmetical error/accidental slip/omission
Sec 168A: Power to govt. (SMQ)

1. Govt. has power to extend time limits provided under CGST Act.
2. This Section empowers Govt. to extend time limits only when actions cannot be completed/complied with
due to force majeure. Here, force majeure means war, epidemic, flood, drought, fire, cyclone,
earthquake/any other calamity caused by nature affecting implementations of provisions of CGST Act.
3. This power can also be exercised retrospectively.
Sec169: Mode of Service of notice (SMQ)

1. Giving/tendering directly a) Taxable person
b) Manager/auth. Representative
2. Registered/speed post/courier
c) Advocate/tax practitioner
3. E-mail d) Regular employee
4. Common portal e) Adult member of family
5. Publication in newspaper
6. Affix at place of business
Note:
• Deemed to be served on date on which it is tendered/published/copy thereof is affixed
• Deemed date of receipt if sent by registered/speed post, it shall be deemed to have been received at expiry of period
normally taken by such post in transit unless contrary is proved.
STUDENT NOTE

Sec 171: Anti-profiteering measure (SMQ)
1
Reduction in tax rates due to introduction of GST/ITC benefit shall passed to recipient by
reduction in prices
Ensured by competition commission of India [CCI]
Functions & order:

2
1. Determine whether benefit passed on to buyer or not
2. Identify who didn’t passed benefit
3. To order
a) Reduction in prices
b) Cancellation of registration
c) Imposing penalty = 10% of amt. Profiteering
(no penalty if deposit within 30 days)
d) Cancellation of registration
e) Return to recipient benefit not passed earlier along with interest @ 18%
If not claim/identifiable deposit = 50 % amt. In each central + state CWF with
interest
4. Furnish quarterly performance report
3 Process followed
Application by consumer
Directorate General (DG) of Anti-profiteering [Investigation]
Competition commission of India CCI

[determine quantum & pass appropriate order]
Sec 6: Cross empowerment of officers

1. Officer appointed under SGST/UTGST authorised to act as PO for purpose of CGST & vice versa
2. If PO of CGST act issue order under CGST act shall also issue order under SGST/UTGST act under intimation
to jurisdictional SGST/UTGST officer & vice versa
3. Proceeding for rectification/appeal/revision of order passed by CGST officer shall not lie before an
SGST/UTGST officer
Other points:
Notice/order/communication can’t be called upon
1. Already been acted upon
2. Service of same not called upon before proceeding commenced/finalized
STUDENT NOTE

CHAPTER: 26 IMPORT & EXPORT UNDER GST + REFUND
Import of
Goods Services
[bringing into India from [Supplier = o/s India
place o/s India] Recipient & POS = In India]
Inter-state supply (IGST) Inter-state supply (IGST)
Levy & collection through Following Test:

custom act 1. Business Test
2. Consideration Test
Following item exempt 3. OIDAR Test
1. Goods imported by SEZ
2. Goods imported by EOU In above cases can take ITC
3. Import of baggage In case of goods = based on bill of entry filled (BOE)
In case of services = based on invoices
Note: provide GSTIN at time of filling BOE to take credit

[in case no GSTIN = PAN can be used]
Clarification regarding import of services
With Consideration Without Consideration
Business personal Business other cases
SUPPLY SUPPLY but exempt Related/Distinct NOT SUPPLY

Exception: OIDAR Person
IGST to be paid by
recipient under RCM SUPPLY
STUDENT NOTE

Export: Always interstate [IGST]

But it is ZERO rated supply (even exempt supply)
• Export of goods & service*
• Supply of G/S to SEZ unit/developer for auth. Operations
TWO OPTIONS
Export with payment of GST Export without payment of GST

i.e. under Bond/LUT
Payment of tax on sale = 2000
Use of ITC = (1000) Payment of tax on sale = 0
Tax payment = 1000 Tax paid on input = 1000
Tax paid on input = 1000 (I + IS)
Refund claim = (2000) Refund claim = (1000)
Net tax impact = 0 Net tax impact = 0
Claim refund of IGST paid Claim refund of Unutilised ITC

Goods: Sec 54(1) + rule 96 Sec 54(3) + rule 89
Application: shipping bill Application: GST RFD 01
Refund processed by PO of Refund based on formula
custom Refund processed by GST dept.
Services: Sec 54(1) + rule 89
Application: GST RFD 01
Refund processed by GST dept.
*Export of Goods: taking goods from India to place outside India.
However, deemed export: notified by CG in case of supply of goods Mfg. in India not taken o/s India
* Export of Services: when

1. Supplier in India
2. Recipient outside India
3. Place of supply (POS) outside India
4. payment received in convertible Forex or in INR (If permitted by RBI i.e. Nepal)
5. supplier & recipient distinct Person
Rule 96: Refund of IGST paid on goods/service exported

1. Shipping bill deemed (goods) to application & deemed to be filed when
a) Person in charge of conveyance filed Departure Manifest/Export Manifest/report covering shipping
bill/BOE
b) furnished valid return in GSTR-3B
[if mismatch b/w Shipping Bill & GSTR-1, application for refund shall be deemed to filed on date
mismatch rectified]
c) Applicant undergone Aadhaar authentication
2. Detail of export furnished in GSTR-1 shall be transmitted electronically by Common portal to ICEGATE
3. Upon receipt of info regarding GSTR-3b is filed. ICEGATE/PO of custom process refund
4. Refund will be withheld were:
a) Upon request from jurisdictional comm.
b) Po of custom thinks goods exported in violation of custom act
c) Commissioner/authorised officer of board, on basis of data analysis & risk parameters, opinion that
verification of credentials of exporter + availment of ITC, essential before grant of refund, to safeguard
interest of revenue.

5. In point 4 (a + b + c) refund is withheld. such claim shall be transmitted to PO of CGST/SGST/UTGST, through

common portal in system generated GST RFD- 01 & intimation also be sent to exporter electronically & that
system generated form deemed to be application for refund & deemed to filed on date of transmission
6. For notified class of goods, refund of IGST paid to govt. of Bhutan & not to exporter
7. For refund of IGST paid on service: file GST RFD 01 & refund provided procedure in rule 89
Rule 96A: Export of goods/service under bond/LUT (SMQ)

1. Exporter shall execute bond/LUT before export, binding to pay tax + interest @18% p.a. within 15 days
• For goods: from expiry of 3 months (+ Extn) from date of issue of invoice if goods not exported.
• For Services: from expiry of 1 year (+ Extn) from date of issue of invoice, if payment is not received in
forex or in INR (if permitted)
2. Detail of export invoices furnished in GSTR-1 shall be transmitted by common portal to ICEGATE
3. When goods not exported within above time & If not paid tax + interest, Export under bond/LUT withdrawn
till amount not paid.
4. LUT: Allowed to all RP except person prosecuted for amt. > 250 lakhs
Rule 96B: Recovery of refund of unutilised ITC/IGST paid on export of goods where export proceeds not
realised
1. Person to whom refund made shall deposit amt. refunded to extent of non-realization of sale proceed +
interest within 30 days (if proceed is not realized within time permit in FEMA (+Extn))
2. otherwise recovery u/s 73/74.
3. No recovery if RBI write off such requirement
4. If sale proceeds realised post recovery, produces evidence within 3M from date of realisation, amount so
recovered refunded by PO, to applicant
Special case:
Sub-contracting of service by exporter to another person located o/s India = there 2 leg involved
• Supply of service from exporter in India to recipient o/s India for full contract value
• Import of service by exporter (in India) from supplier o/s India for outsourced portion
So, full value of consideration not received in India as Forex but deemed as:
• Full consideration received in India
• IGST to be paid on import portion & ITC can be taken
Difference B/W exempted supply & ZRS
Exempt supply ZRS

1. Nil rate + wholly exempt + non- Export of G/S + supply of G/S to SEZ
taxable
2. No tax on outward supply but input No tax on outward supply & input supply
supply may be taxed also be tax free (by way of refund of ITC)
3. No ITC on exempt supply ITC allowed on ZRS even such supply
exempt in India
4. No registration required Registration required

REFUND UNDER GST
Cases where Refund general permissible: refund are allowed:

1. (ZRS) Export of G/S or Supplies to SEZs unit/developer [Refund of IGST paid]
2. Refund of accumulated ITC on account of inverted duty structure + export/supply to SEZ under bond/LUT
3. Deemed exports
4. Balance in e-cash ledger
5. Refund of advance tax to CTP/NRTP
6. Refund to UN bodies/Embassies on purchase
7. Refund due to judgement/decree/order/direction
8. Finalization of provisional assessment
9. Excess payment due to mistake
10. Refunds to Tourists during departure from India that GST paid in India
11. Refund for taxes paid on advances against which no supply is made
12. Wrongly collected type of tax
Refund general procedure Rule 89(1):

1.
Within 2 year from relevant date Make application GST RFD 01

(Not applicable on refund of balance in cash ledger) + documentary evidence to establish
(Time period from refund filling & deficiency communication excluded)
that refund is due to applicant
+ documentary evidence to prove no
Applicant *unjust enrichment
Any person
Min. refund 1000 per tax head Refund < 2L: Self-Declaration
N.A. on cash ledger balance ≥ 2L: CA Certificate
*Unjust enrichment:
• When a person keep money belonging to others GST is indirect tax hence is
presumed that incidence of tax passed to customer
• If still refund allowed to supplier then he will be benefited but buyer penalised
which is not just Hence always refund is credited to consumer welfare fund unless
proved by applicant that there is no unjust enrichment
Exception: unjust enrichment not apply & refund directly to applicant
1. Refund of tax paid on export
2. Refund of unutilised ITC due to ZRS/IDS
3. Refund due to advance
4. Wrong type of tax collection
5. Excess balance in cash ledger
6. Where amt. paid not passed incidence on buyer
STUDENT NOTE

Situation Relevant Date Documentary evidence

Export of goods
By Sea or Air - Ship/Aircraft leaves India Statement of no. & date of SB/BOE
by Land - Such goods pass the Frontier + no. & date of relevant export invoice
by Post - Goods Dispatch by Post Office
Export of service • Date of invoice Statement of no. & date of invoice + bank
• Date of payment realisation certificate/
w.e. is later foreign inward remittance certificate
Supply of G/S to SEZ unit/dev. Due date of return u/s 39 w.r.t such Statement of no. & date of invoice
supplies + Endorsement by specified officer
+ payment detail in case of service
Deemed Export Date of filling return related to particular Statement of no. & date of invoice
supply + ack. By jurisdictional tax officer of
AA/EPCG holder/TI signed by EOU that
supplies received
+ undertaking by recipient that no ITC
availed & not filled refund application
Excess payment of tax Date of payment of tax Statement showing detail of excess amt.
paid
Judgement/order/decree of Tribunal/Court communication of judgement/order Copy of order ref. n. of payment of pre-
deposit
Refund of unutilized ITC due date of return u/s 39 for the Statement of no. & date of invoices
received & issued
Finalization of provisional assessment Date of adjustment of tax Ref. no. & copy of final assessment order
Tax wrongly collected & paid Date of payment of correct tax Statement showing transaction detail
Person other than supplier Date of receipt of G/S/B Relevant Doc.
2.
Applicant made Transferred to jurisdictional office Within 15 days from ARN

ARN generated & amt. debited to verify application for completeness
from e-cash/credit ledger
Application not Application

complete complete
(SMQ) deficiency memo issued Acknowledgement issued

requiring to file fresh application along with date
after rectification
Refund order to be issued within 60
days from date of acknowledgement
3. Processing of application: verification of application & documents
*Grant of provisional refund: If PO satisfied = refund order issued mentioning

• Provisional refund of 90% amt. on a/c of ZRS can be • Amt. refunded on provisional basis if any*
issued within 7 days from date of acknowledgment • Amt. adjusted from o/s demand
• Balance amt. refunded
• 10% after due verification of doc.
If Refund not inadmissible: issue notice & applicant reply
However provisional interest not to be issued
within 15 days & if not satisfactory refund rejection order
Person claimed refund prosecuted in any period of 5
years immediately preceding tax period of amt. > 2.5 Cr.

Withholding of refund Claim:

Commissioner opinion that refund liable to withhold under below circumstances, pass order informing
application of ground
1. Refund of unutilized ITC to person who defaulted in furnishing return or liable to pay tax/interest/penalty
not stayed by court
• Withhold payment till furnish all return
• Withhold payment until dues are fully paid
2. Refund order is subject matter of appeal/proceeding & comm. Opinion that grant of refund will adversely
affect revenue
However, if withheld, interest payable @ 6% due to pending appeal/proceeding
4. From all payment orders, portal creates consolidated payment & share with PFMS website
(public finance mgt. System)
Interest on delayed refund
Refund due to order Otherwise

/judgement/decree
Not refunded within 60 days of
Not refunded within 60 days of application
application
From end of 60 days to @ 6% p.a.
@ 9% p.a. till date of refund
No refund of utilized ITC: if goods exported are subject to export duty or supplier avail duty drawback
Note: nil rate of export duty = allowed refund
Refund of Export/supply to SEZ unit/develop. (ZRS) On payment of IGST

In detail discussed in ZRS
Refund of IGST on supply
Export of goods Export of service/supply to SEZ unit/dev.

Follow rule 96 procedure Follow rule 89(1) general procedure
Refund claim in case of Deemed Export

Notified by govt. in case of supply of goods (Mfg. in India) not taken o/s India
1. Supply of goods against advance authorization
2. Supply of goods against EPCG authorization Refund of tax paid on deemed export can be taken by
3. Supply of goods to EOU • Recipient
4. Supply of gold by bank/PSU against AA • Supplier if recipient doesn’t avail ITC on such supply
are deemed export.
Not actually taken out of India hence option to not pay tax (bond/LUT) Not available
Pay tax on supply can claim refund later on

Merchant Export
.05 % + .05 % = .10% GST
Manufacturer/trader
Reg. supplier Export
Merchant exporter
Reg. recipient
If someone supply to merchant exporter concessional rate apply .10% & credit can be taken on following
conditions
1. Reg. supplier supplies goods to reg. merchant with tax invoice
2. Export within 90 days from issue of invoice
3. Mention GSTIN of supplier & ME on shipping bill/bill of export
4. Registered with export promotion council
5. Reg. recipient shall move goods from place of reg. supplier to
• Directly to Port/ICD/Custom station
• Directly to regd. warehouse from where Port/ICD/Custom station
6. After export regd. recipient shall provide copy of SB/BOE containing GSTIN & tax invoice along with export
general manifest to red. Supplier as well as jurisdictional officer
Merchant exporter can claim refund of tax paid by general procedure
Refund of utilized ITC (rule 89(4))

Accumulated ITC on zero rated supply under bond/LUT without payment of IGST
Input service Purchase I & IS PAID GST 1000 Export [50000 + 0]

Bond/LUT executed
Mr. Papu Export

Input Indian
Payment of tax on sale = 0
Tax paid on input = 1000 Note: no refund on CG allowed
(I + IS) Can use its ITC for domestic supply
Refund claim = (1000)
Net tax impact = 0
As person may involve in ZRS as well as normal domestic supply but ITC accumulated refund available only for
ZRS hence eligibility of refund calculated using this formula
Refund = T/o of ZRS of goods + T/o of ZRS of services) x Net ITC

Adjusted Total Turnover
Where:
“Net ITC”: ITC availed on inputs & input services in relevant period
[ITC of which supplier claimed refund u/r 89(4A) Deemed export/u/r 89(4B) Merchant export not consider it
again]
“T/o of ZRS supply of goods”:

• Value* of ZRS made during period under bond/LUT during relevant period or
• times value of like goods domestically supplied
whichever is less
*value of goods exported o/s India

• FOB value in shipping bill/Bill of export
• Value in tax invoice
whichever is less
[in case supplier claimed benefit u/r 89(4A) Deemed export/u/r 89(4B) Merchant export t/o of same shall not
consider again]
“Turnover of ZRS of services”:

Aggregate payments received in relevant period for ZRS of services made under bond/LUT
+ ZRS of services completed during period payment received earlier
- advance received for ZRS of services but services not completed
“Adjusted Total Turnover”:

T/o of ZRS of goods as above
+ T/o of ZRS of service as above
+ T/o in State/UT, for other than ZRS
Exclude
• Value of exempt supply other than ZRS
• T/o of supplies as deemed export/merchant export u/r 89 (4A) & (4B)
“Relevant period”: means period for which claim is filed
Example: manufacture supply one type of goods overseas as well as in domestic market
Net admissible ITC in relevant period = Rs. 270
Supply Value Units supplied T/o 1.5-time limit
Domestic 200 5 1000 1000
Export 350 5 1750 1500
2750 2500
Refund amt. = 1500 x 270 = 162

1000 +1500
[BOND/LUT REFUND CALCULATION] (IMP.)

Wye Ltd. provides following details of September 20XX for computation of refund claim under rule 89. (MTP M20, PEQ M19)
Opening balance of ITC 5,00,000
ITC availed during period, which includes claim for refund made of ₹ 25,00,000
5,00,000 eligible under rule 89(4A)/89(4B) of the CGST Rules, 2007
Zero rated supply of goods made during period without payment of tax under bond/ LUT, which 6,00,00,000
include supply of ₹ 1,00,00,000 for which refund claim is made under rule 89(4A)/89(4B) of CGST
Rules, 2017
Supply of goods other than zero rated supply 3,00,00,000

Solution:
As per rule 89(4) of the CGST Rules, 2017, in case of zero-rated supply of goods without payment of tax under bond/LUT, refund of ITC
is granted as per the following formula:
Refund = T/o of ZRS of goods + T/o of ZRS of services) x Net ITC

Adjusted Total Turnover
Net ITC excludes ITC availed for which refund is claimed under rule 89(4A)/ (4B). Further, turnover of zero-rated supply of goods and
adjusted total turnover exclude turnover of supplies in respect of which refund is claimed under 89 (4A)/ (4B).
turnover of zero-rated supply of goods = ₹ 5,00,00,000 [₹ 6,00,00,000 – ₹ 1,00,00,000];
Net ITC = ₹ 20,00,000 [₹ 25,00,000 – ₹ 5,00,000] and
Adjusted Total Turnover = ₹ 8,00,00,000 [₹ 6,00,00,000 + ₹ 3,00,00,000 – ₹ 1,00,00,000]
Thus, maximum refund amount under rule 89(4)
= ₹ 20,00,000 × ₹ 5,00,00,000 / ₹ 8,00,00,000 = ₹ 12,50,000.
Refund of accumulated ITC on a/c of inverted duty structure [IDS] (rule 89(5))
• Inverted duty structure situation comes when tax rate on Input is higher than tax rate on output, which lead
to accumulation of ITC in credit ledger
• Also allowed to supplier of merchant exporter who supply at concessional rate
• Except of G/S/B notified by govt.
Calculation of eligible refund of ITC under IDS:
Maximum Refund = T/o of inverted Duty supply × Net ITC Tax payable on such IDS × Net ITC
̶
Adjusted Total T/o Supply of goods/service ITC availed on I +IS
Here Net ITC: ITC only on input Other than Rule 89(4A) & (4B)
Note: Net ITC shall cover ITC on all input irrespective of tax rate
“Adjusted Total Turnover”:

T/o in State/UT, for supply of G/S
Exclude
• Value of exempt supply other than ZRS
• T/o of supplies as deemed export/merchant export u/r 89 (4A) & (4B)
During relevant period
In case of refund of unutilized ITC on account of

1. exports without payment of tax
2. supplies made to SEZ Unit/Dev. without payment of tax
3. accumulation due to inverted tax structure
Refund shall be least of following:
1. as per formula in rule 89(4)/89(5)
2. balance in credit ledger at end of tax period for which refund filed after filling return (GSTR-3B)
3. balance in credit ledger at time of filing refund application.
[Refund of accumulated ITC restricted to invoices reflecting in GSTR-2A]
Refund shall be debited from credit ledger in following order:

1. IGST balance, to extent available;
2. CGST & SGST/UTGST equally to extent available
3. Rest from available balance

Example: [IDS] (IMP.)
Super Engineering Works, supplier in Haryana, supply taxable goods within State. Given below details of turnover and applicable GST
rates of final products manufactured by Super Engineering Works as also ITC availed on inputs used in manufacture of each of final
products and GST rates applicable on same, during a tax period:
Products Turnover* Output GST Rates ITC availed Input GST
(₹) (₹) Rates
A 500,000 5% 54,000 18%
B 350,000 5% 54,000 18%
C 100,000 18% 10,000 18%
*excluding GST
Determine maximum amount of refund of unutilized input tax credit that Super Engineering Works is eligible to claim under section
54(3)(ii) provided that Product B is notified as a product, in respect of which no refund of unutilised input tax credit shall be allowed
under said section.
Solution:
Section 54(3)(ii) allows refund of unutilized ITC at end of any tax period to registered person where credit has accumulated on account
of inverted duty structure (other than nil rated or fully exempt supplies), except supplies of G/S/B may be notified by Govt
In the given case, rates of tax on inputs used in Products A and B (18% each) are higher than rates of tax on output supplies of Products
A and B (5% each). However, Product B is notified as a product, in respect of which no refund of unutilised ITC shall be allowed under
section 54(3)(ii). Therefore, only Product A is eligible for refund under section 54(3)(ii).
Further, rule 89(5) stipulates that in case of refund on account of inverted duty structure, refund of ITC shall be granted as per following
formula -
T/o of inverted Duty supply × Net ITC Tax payable on such IDS × Net ITC
Maximum Refund = ̶ Supply of goods/service ITC availed on I +IS
Adjusted Total T/o
Tax payable on inverted rated supply of Product A = ₹ 5,00,000 × 5% = ₹ 25,000

Net ITC = ₹ 1,18,000 (₹ 54,000 + ₹ 54,000 + ₹ 10,000) [Net ITC availed during the relevant period needs to be considered irrespective of
whether the ITC pertains to inputs eligible for refund of inverted rated supply of goods or not as clarified vide Circular No. 79/53/2018-
GST dated 31.12.2018]
Adjusted Total Turnover = ₹ 9,50,000 (₹ 5,00,000 + ₹ 3,50,000 + ₹ 1,00,000) Turnover of inverted rated supply of Product A = ₹ 5,00,000
Maximum refund amount for Super Engineering Works is as follows:
= [(₹ 5,00,000 × ₹ 1,18,000)/ ₹ 9,50,000] – (₹ 25,000 × Rs 118000/Rs 118000) = ₹ 37,105 (rounded off)
Refund of amt. deposited by CTP/NRTP

1. CTP/NRTP required to deposit tax amt. in advance while applying for registration credited to cash ledger
2. If any balance remain same shall be granted to him only if he has filled all returns
3. Amt. after adjusting tax liability from advance tax can be claimed in last return
Refund to UN Bodies/Embassies
UN bodies & other entity mentioned below can claim refund of tax paid on purchase before expiry of 2 year
from last date of Qtr. in which supply received, Form GST RFD 10
United Nations
1. Foreign diplomatic mission/consular post in India, or diplomatic/career consular agent
2. Specified international organization [UN privilege act notified organizations]
3. Canteen Stores Department (CSD), under Ministry of Defense, [entitled for 50% claim] making supply to unit
canteen/CSD
4. Retail outlet beyond immigration area
Apply once in every Qtr. with statement of inward supply in GSTR-11
Condition for refund

1. inward supplies received from registered person
2. name + UIN of recipient mentioned on tax invoice
Refund of IGST paid on supply of goods to tourist

• Refund to tourist
• Tourist means: Not normally resident in India
Entry/stay in India ≤ 6M
[legitimate non-emigrant purpose]

Other points & clarifications:

Goods taken out of India but not brought back
Goods taken o/s India for exhibition or sale/approval basis
Don’t constitute supply as no consideration involved at this stage
Item sold within 6M Item not sold neither brought Item brought back to India within
back to India till 6M 6M
Issue tax invoice as soon as sold
Issue tax invoice on expiry of 6M No action required
Activity of taking goods o/s India was not supply hence

it was not ZRS, hence bond/LUT not required
So how can refund to be taken

Refund u/r 96 (export on payment of IGST) can’t be
taken as supply took place after export happen
Refund u/r 89(4) refund of unutilised ITC can be taken

even bond/LUT not executed
But only after invoice raised as per above provisions
TDS/TCS credited in cash ledger

• Can be used for payment of tax liability
• Or claimed as refund from cash ledger
Clarification on refund claims by unregistered person whose contracts are cancelled

• In case buyer who entered into agreement/ contract with builder for supply of services of construction of
flats/ building, etc. & paid amount for such service, either fully/partially, along with tax, had to get said
contract cancelled subsequently due to non-completion/delay/any other reasons
• in such cases, GST borne by him shall be refunded
• Through this circular, government prescribes the manner to claim refund
(Note: circular is not limited up to construction industry cancellation contracts, it was just the example to
understand)
Particulars Description
1. Sec under which refund is allowed Sec 54(8) in cases where unregistered person has borne
incidence of tax & not passed same to other person, refund paid
to him instead of credited to CWF
2. Manner URP has to take temporary registration & apply for refund
under category ‘Refund for Unregistered person.’ Following
shall also be done:
• Undergo Aadhaar authentication
• applicant shall provide details of bank account in his name
& obtained on his PAN.
3. Statements A statement containing
1. details of invoices viz. number, date, value, tax paid, in
respect of which refund claimed
2. copy of such invoices & proof of making such payment
3. copy of agreement & letter issued by supplier for
cancellation
4. A certificate issued by supplier he has paid tax to govt & not
adjusted tax amt. issuing credit note & will not claim refund
involved
Note: certificate not required in case refund claimed by URP
who has borne incidence of tax
4. Time period for issuance of CN is not yet expired • where time period for issuance of CN not expired at time of
cancellation
• Suppliers can issue credit note to unregistered person
• In such cases, supplier in a position to also pay back amount
of tax.
• Therefore, no need for filing refund claim
Note: so, refund claim filed by URP when CN time expired
5. Relevant date for filing of refund Date of issuance of letter of cancellation of contact by supplier
6. Minimum refund amount 1000
7. Officer’s duties PO process refund in manner similar to RFD-01 claims
Scrutinize application for completeness & eligibility issue refund
sanction order in FORM GST RFD-06
8. Proportionate Refund In cases where amount paid back by supplier to URP on
cancellation is less than amount paid
proportionate amount refunded to URP
STUDENT NOTE

CA/CS/CMA INTER GST SUMMARY BOOK 176

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CA/CS/CMA FINAL IDT SMART SUMMARY BOOK 1

WWW.SHIVAMNAGPALCLASSES.COM CONT. 7015451014 CA SHIVAM NAGPAL

Meet Shivam Nagpal

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IN CLASS TEACH IN PRACTICAL WAY THROUGH:

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WWW.SHIVAMNAGPALCLASSES.COM CONT. 7015451014 CA SHIVAM NAGPAL

Difference between direct taxes and indirect taxes

Direct Taxes Indirect Taxes

2. Features of indirect taxes [Govt, Busi. & Society]

3. Position before GSTs

*Intra state supply means supply within same state

*Interstate supply means from one state to another

WWW.SHIVAMNAGPALCLASSES.COM CONT. 7015451014 CA SHIVAM NAGPAL

Particulars Amount (INR)

Sale price 6750

1. Cascading effect of tax i.e. VAT charged on excise (tax on tax)

5. Taxes to be subsumed in GST (SMQ)

Central levies: [3 Central, 2 Additional & 1 Service]

State levies: [2 State, 2L, 1 Advertisement & Entertainment]

WWW.SHIVAMNAGPALCLASSES.COM CONT. 7015451014 CA SHIVAM NAGPAL

7. Genesis of GST in India

• France was first country to implement GST in year 1954

• ABOUT 160 countries across world have adopted GST

• In year 2000, Prime Minister PUT concept of GST & set

• Finally, GST introduced in India on 1st July 2017.

8. What is GST/ concept of GST: [V3C]

WWW.SHIVAMNAGPALCLASSES.COM CONT. 7015451014 CA SHIVAM NAGPAL

EXAMPLE: intra state sell i.e. Haryana

How GST Works (‘No Tax on Tax’ in GST)

9. Benefits of GST (SMQ)

GST is a win-win situation for entire country:

10. GST is a simplified tax structure

11. Framework of GST as introduced in India

1) Dual GST: (SMQ)

WWW.SHIVAMNAGPALCLASSES.COM CONT. 7015451014 CA SHIVAM NAGPAL

• It is issued by SG & CG.

States & UT’s for GST Purpose

28 states + 5 UT’s without

• Delhi A - Andaman & Nicobar

6) Seamless flow of credit:

WWW.SHIVAMNAGPALCLASSES.COM CONT. 7015451014 CA SHIVAM NAGPAL

IN WHICH ORDER TO ADJUST INPUT TAX CREDIT

SGST payable CGST payable IGST payable

(2) IGST credit (2) IGST credit (1) IGST credit

1) Firstly, IGST credit needs to be utilized completely +

8) GST Common Portal:(SMQ)

9) Goods and Services Network (GSTN):

The functions of the GSTN include: [CM 2 PF] MTP-2018

10) GSPs/ ASPs:

WWW.SHIVAMNAGPALCLASSES.COM CONT. 7015451014 CA SHIVAM NAGPAL

GST N GSP’S TAXPAYERS

11) Compensation Cess:

Need for Constitutional

No tax can be levied without authority of law