General Services Tax (GST)

An Overview
Table of contents

 Introduction
 Difference between direct tax and indirect tax
 Pre-GST tax structure in India
 Concept of supply
 Meaning of supply,
 Significance
 Activities which are treated as supply under schedule I
 Transaction related to supply under schedule II
 Activities of negative list (activities which are neither supply of goods nor supply of services)
under Schedule III
 Levy of GST
 Basis of charge
 Inter-state supply and intra-state supply
 GST rates notified for notified supply of various goods and services
 Exemptions from GST
 Place of supply and time of supply
Class-1: Table of contents

 Direct tax and Indirect tax

 Introduction - GST
 Meaning
 Objectives
 Pre and Post- GST tax structure in India
 Summing of Existing Tax Structure
Impact and Incidence of Tax
Direct tax Indirect tax

Impact and tax payers Shifted by the taxpayer to someone

Incidence (paid directly to the else
Government by the assessee) (tax incidence is borne by the
consumers who ultimately consume
the product or the service, while the
immediate liability to pay the tax
may fall upon another person such
as a manufacturer or provider of
service or seller of goods)
 GST
is an Indirect tax
Introduction

Institution of GST
 Constitution (122nd Amendment) Bill, 2014 became Constitution (101st Amendment) Act, 2016,
upon consent from First Person (President) of India on 8th September, 2016 which paved way for
introduction of GST in India.

 GST is implemented in India w.e.f. 1st July, 2017

Amendments:
 Dual control of Centre and State on all assesses - Concurrent powers on Parliament and State
Legislatures to make laws governing goods and services. The Parliament of India as well as to
Legislature of every State can levy GST on all the assesses (Article 246A) under –

 CGST – enacted by Central Government of India.

 IGST – enacted by Central Government of India.
 SGST – enacted by respective State Governments
 UTGST – enacted by Central Government of India
Meaning of GST

What is GST?

G – Goods

S – Services

T – Tax

“Goods and Service Tax (GST) is a comprehensive tax levy on manufacture, sale and consumption of goods and
service at a national level under which no distinction is made between goods and services for levying of tax. It
will mostly substitute all indirect taxes levied on goods and services by the Central and State governments in
India.

GST is a tax on goods and services under which every person is liable to pay tax on his output and is entitled
to get input tax credit (ITC) on the tax paid on its inputs(therefore a tax on value addition only) and ultimately
the final consumer shall bear the tax”.
Objective of GST

OBJECTIVES OF GST: One of the main objective of Goods & Service Tax (GST) would be to eliminate the
double taxation i.e. cascading effects of taxes on production and distribution cost of goods and services.
The exclusion of cascading effects i.e. tax on tax till the level of final consumers will significantly improve
the competitiveness of original goods and services in market which leads to beneficial impact to the GDP
growth of the country. Introduction of a GST to replace the existing multiple tax structures of Centre and
State taxes is not only desirable but imperative. Integration of various taxes into a GST system would
make it possible to give full credit for inputs taxes collected. GST, being a destination-based consumption
tax based on VAT principle.

Worldwide GST:
France was the first country to introduce GST in 1954. Worldwide, Almost 150 countries have
introduced GST in one or the other form since now. Most of the countries have a unified GST system.
Brazil and Canada follow a dual system vis-à-vis India is going to introduce. In China, GST applies only to
goods and the provision of repairs, replacement and processing services. 
Tax structure before and After GST
Tax structure before and After GST - Example

Notes:·Input tax credit available to wholesaler is Rs.980 and Rs.1,680 in case of

without GST and with GST respectively.

Likewise Input tax credit available to Retailer is Rs.1,078 and Rs.1,848 in case of

without GST and with GST respectively.

In case, VAT rate is also considered to be 12%, the saving to consumer would be
1.15%.
Class-2: Table of contents

 Meaning of supply
 Concept of supply
 Categories of supply
 Category-1 - Supply of goods and services
 Category-2 - Import of service
 Category-3 - Supply without consideration
 Category-4 - Deemed supply
Meaning of Supply
Meaning of Supply
Meaning: Supply includes sale, transfer, exchange, barter, license, rental, lease and disposal. If a
person undertakes any of these transactions during the course or furtherance of business for
consideration, it will be covered under the meaning of Supply under GST.
Concept of Supply

Important point to be noted

Different
Activity Supply in the course of
Categories
Consideration furtherance of business of
supplier

Category 1 Supply of goods and services Consideration is required Necessary

This category includes all forms of supply of goods or services or both such as sale, transfer, barter, exchange,
licence, rental, lease or disposal. Under this category, supply of goods or services shall be treated as “supply” only
if the following are satisfied:

• Supply is made (or agreed to be made) for a consideration

• Supply is made by the supplier in the course or furtherance of his business

GST is not applicable if the supplier is not in the business of supplying goods or services. (E.g. A salaried employee
is not subject to GST if he sells his old gold (as he is not in the business of selling gold)
Concept of Supply

Important point to be noted

Different
Activity Supply in the course of
Categories
Consideration furtherance of business of
supplier

Category 2 Import of service Consideration is required Not necessary

Import of service is also supply for the purpose of GST. However, it is subject to the following:

• Import of service should be for a consideration

• Import of service may (or may not be) in the course or furtherance of the business of the supplier
• Recipient of service (or importer of service) is liable to pay GST under reverse charge mechanism
• Recipient of the services is based in India, and the place at which the service is supplied is also within the
geographical boundaries of the country
Concept of Supply

Important point to be noted

Different
Activity Supply in the course of
Categories
Consideration furtherance of business of
supplier

Category 3 Supply without consideration GST applicable, even if no consideration

Barring a few cases, consideration is

Category 4 Deemed supply
required

Supply without consideration: Supply includes a few activities specified in Schedule 1. These activities are treated as
supply even if supply is made without a consideration
 
Deemed Supply: Deemed Supply means event or transaction where no or inadequate consideration is received for
the supply of goods or services. Such type of exchange of service is also termed as Barter System.
Class-3: Table of contents

Concept of supply – Schedule - I

 Activities which are treated as supply under schedule I
 Permanent transfer/disposal of business assets
 Supply of goods or services between related persons/distinct persons
 Supply of goods – Principal to Agent or Agent to Principal
 Importation of services by taxable person

Concept of supply - Schedule – III

 Activities of negative list (activities which are neither supply of goods nor
supply of services)
Concept of Supply – Schedule - I

Section 7 of CGST Act:

1. Permanent transfer/disposal of business assets where input tax credit (ITC) has been availed on
such assets.

E.g.
(a) A dealer of an Air conditioner permanently transfer an Air conditioner on which ITC has been
availed from his Stock in Trade for personal use at his residence.

(b) A Pharmaceutical company which has distributed certain products as free sample which are
regular products having MRP on it and do not carry any declaration that a product are not for resale
and on which ITC has been taken.

© Where goods forming part of the assets of a business are transferred or disposed of by or under
the directions of the person carrying on the business so as no longer to form part of those
assets, whether or not for a consideration, such transfer or disposal is a supply of goods by the
person.
Concept of Supply – Schedule - I

Section 7 of CGST Act:

2. Supply of goods or services between related persons, or between distinct persons as specified in
section 10, when made in the course or furtherance of business.

Example:
♣ Intra State Stock Transfer
Super Cars Ltd is a car manufacturing unit located in Karnataka. They also own a service unit in Karnataka.
Super Cars Ltd have obtained separate registrations for both the manufacturing and service units.
The manufacturing unit and the service unit of Super Cars Ltd will be treated as distinct persons, and any
supply between them will be taxable, even without consideration.

♣ Inter State Stock Transfer

Super Cars Ltd is a car manufacturing unit located in Karnataka. They also own a service unit in Delhi.
The manufacturing unit and the service unit of Super Cars Ltd located in Delhi will be treated as distinct
persons, and any supply between them will be taxable, even without consideration.
 Concept of Supply – Schedule - I

Section 7 of CGST Act:

3. Supply of goods—
I. by a principal to his agent where the agent undertakes to supply such goods on behalf of the principal,

Example: While making an Application for Pan Card , we visit Karvy Offices or other Franchise Holder (acting
as an Agent) for the Principal (NSDL). Hence Karvy or other Franchise office will come under Schedule I.

Or

II. by an agent to his principal where the agent undertakes to receive such goods on behalf of the principal.

Example: Super Cars Ltd appoints Sharma Agency as an agent. Sharma Agency receives spare parts supplied
by Super Cars Ltd, and as and when an order is received by Super Cars Ltd from his dealers, an instruction
will be sent to Sharma Agency to supply the parts. Also, Sharma Agency is entrusted to receive raw material
from the manufacturers on behalf of Super Cars Ltd
 Concept of Supply – Schedule - I

Section 7 of CGST Act:

4. Importation of services by a taxable person from a related person or from any of his other establishments outside
India, in the course or furtherance of business.

For Example-
John & Co an architecture consultancy firm of USA provided his services to Ram & Associates, a Chartered Accountants
firm of India for designing it’s office at Mumbai  for a consideration of Rs. 10,00,000/- and also to design the home of
Mr. Ram, the Managing Partner of Ram & Associates for a consideration of Rs 2,00,000 respectively. Also Ram &
Associates took the services of its’ associate firm Ram Capital in London which specializes in Capital Management to
manage its surplus funds without any consideration.
Solution:
As per Sec 2(102) of CGST Act ,  services means anything other than goods, money and securities but includes activities
relating to the use of money or its conversion by cash or by any other mode, from one form currency or denomination to
another form, currency or denomination for which a separate consideration is charged. 

So, here designing consultancy by John & Co and capital management services by Ram Capital fall under the definition
of services as these are activities other than goods, money and securities. Service can either be active i.e. to do
something or passive i.e. not to do something.
Concept of Supply – Schedule - III

Negative List under GST Regime – Schedule III of the CGST Act 2017: Schedule III in the CGST Act is akin to
the negative list under the service tax regime. This Schedule specifies transactions/ activities which shall be
neither treated as supply of goods nor a supply of services.

Negative List under GST – Schedule III of the CGST Act

1. Services by an employee to the employer in the course of or in relation to his employment.
2. Services by any Court or Tribunal established under any law for the time being in force.
3. Functions performed by the MPs, MLAs, Members of municipality and Member of other local
authorities.
4. Duties performed by any person who holds any constitutional post.
5. Duties performed by any person as a Chairperson or a Member or a Director in a body established by the
Central Government or a State Government or local authority and who is not deemed as an employee
before the commencement of this clause.
6. Services of funeral, burial, crematorium or mortuary including transportation of the deceased.
7. Sale of land and sale of building where entire consideration has been received after issuance of
completion certificate.
8. Actionable claims other than lottery, betting and gambling.
Class-4: Table of contents

Concept of supply – Schedule - II

 Transaction related to supply under schedule II
 Transfer of title in goods is a supply of goods
 Land & Building
 Treatment or Process
 Transfer of Business Assets
 Sample cases where person ceases to be Taxable person under GST
Concept of Supply – Schedule - II

1-a. Transfer of title in goods is a supply of goods.

 Transfer of title is the act of point in place or time at which ownership of a thing is passed from one person to
another. Thus transfer of title for a consideration implies transfer of ownership, transfer of possession and control
on goods i.e. transfer of the property in goods.
 Any transfer of title in goods is a supply of goods which is taxable as per Schedule II.

High Sea sale is a transaction, wherein there is transfer of ownership, when the goods are on high seas. After the High
sea sale of the goods, the Customs declarations i.e. Bill of Entry etc is filed by the person who buys the goods from the
original importer during the said sale.

Section 7(2) of CGST Act provides that the goods imported into territory of India, till they cross the customs frontiers of
India, shall be treated to be a supply of goods in the course of inter-State trade or commerce.

Under GST inter-state transactions are subject to IGST. High sea sales of imported goods are akin to inter-state
transactions.
 Concept of Supply – Schedule - II
1-b. Transfer of right in goods or of undivided share in goods without the transfer of title thereof is a supply of services

The phrase “transfer of right to use intangible goods is of great significance to impose tax on it. The thrust is on the
transfer of right to use the goods or use of tangible goods, including machinery, equipment and appliances, for use, with
no legal right of possession and effective control. (E.g. Excavators, Cranes, Dump trucks, High value and sophisticated
machineries are usually supplied for use, without any legal right of possession and effective control.)
It is important to understand here that in transfer of right to use goods, all the rights except the ownership rights are
transferred by the transferor to the transferee so as to enable him to use the goods at his own will to the exclusion of the
transferor.

Example-
(i) Supply of Equipment’s & Machinery to Contractor.
(ii) Renting of Machinery.
(iii) Rental service of transport vehicle

However, in case of rental service of transport vehicles including buses, coaches, cars, trucks, and other motor vehicle
with or without operator are the services where the renter (person taking vehicles on rent) defines how and when the
vehicles will be operated, determines schedules, routes, and other operational considerations. Where these conditions
are not satisfied then it will not be termed as Renting service.
 Concept of Supply – Schedule - II

1.c. - Transfer of title in goods under an agreement which stipulates that property in goods shall pass at a
future date upon payment of full consideration as agreed, is a supply of Goods- Example- Hire Purchase.

2. Land & Building

– Any lease, tenancy, easement, licence to occupy land is a supply of services.

The term lease has not been defined anywhere in GST Act or Rules, GST does not differentiate between
Finance & Operating Leases.

What is important is whether “transfer of title” involves in the lease transactions or not.

a) If the lease agreement stipulates transfer of title: Supply of goods (E.g. Sale of Land, Building, Flat etc.)
b) If the lease agreement does not stipulate transfer of title: Supply of services (E.g. Renting, Hiring etc.)
Concept of Supply – Schedule - II
2.a. - Transfer of Tenancy right against Consideration in the form of Tenancy Premium is liable to GST is a
supply of service

GST Council vide its Circular No. 44/18/2018-CGST dated 02.05.2018 has issued clarification that the transfer of
tenancy rights to an upcoming tenant, consideration for which is in the form of Tenancy premium is liable to GST.

The activity of transfer of tenancy right against consideration in the form of tenancy premium is a supply of service and
liable to GST. It is a form of lease or renting of property and such activity is specifically declared to be a service.

The transfer of tenancy rights cannot be treated as sale of land or building declared as neither a supply of goods nor of
services in Para 5 of Schedule III to CGST Act, 2017. Thus, a consideration for the said activity shall attract levy of GST.

2.b. - Transfer of tenancy rights to a new tenant against consideration in the form of tenancy premium is taxable.
However, grant of tenancy rights in a residential dwelling for use as residence dwelling against tenancy premium or
periodic rent or both is exempt vide S. no 12 of Notification No. 12/2017.

Land easement” is the legal term for the right to use or occupy another entity’s land for a specified purpose.
Concept of Supply – Schedule - II

2.c. - Any lease or letting out of the building including a commercial, industrial, or residential complex for
business, or commerce, either wholly or partly is a supply of services

Any lease or letting out of the building including a commercial, industrial or residential complex for
business or commerce, either wholly or partly, is a supply of services. (schedule II of CGST Act, 2017).

Accommodation service provided by hotels, Lodges and guest house and Rent income is a taxable supply
under GST.

Services by way of renting of residential dwelling for use as residence is exempt under Serial No- 12
of Notification No- 12 Central Tax Rated dated 28.06.2017.

2.d. - Letting out of residential complex for commercial purpose

Residential properties given on rent for business purposes come under the ambit of GST and therefore are
subject to GST. (Refer case in the Notes)
Concept of Supply – Schedule - II

3. Treatment or Process
Schedule II of the CGST Act, which sets out the activities to be treated as supply of goods or supply of services, it
provides that any treatment or process which is applied to another person’s goods is a supply of services.  Accordingly,
the job worker is liable to GST at applicable rates on the processing charges paid by principal.

Section 2(68) of the CGST Act 2017 defines job work to mean any treatment or process undertaken by a person on
goods belonging to another registered person and the expression “job worker” shall be construed accordingly.

Also the activity of treatment or process not qualifying as ‘job work’ as the principal is un-registered, should amount to
supply of service.

Job work is merely a treatment or a process on goods. Such process may amount to manufacture or not. Also, a job
worker may use his own materials while performing such process or he may not use any material at all. The law on
these issues have now been settled as the ambit of job work has been enlarged by the phrase “Any treatment or
process”.
Concept of Supply – Schedule - II

4. Transfer of Business Assets

II Schedule refer the word ”business assets”, it means assets may be Fixed or Current. Transfer or disposal of the same
will be taxable under GST. The treatment will remain same whether:

1. Whether Transaction is done for consideration or without consideration,

2. Whether ITC has been availed on those goods or not,
3. Goods belong to Pre GST era or Post GST era

This clause of the Schedule II covers the transfer of business assets. It states that the transfer or disposal of assets
should be treated as supply if the following conditions are satisfied:-

 There should be goods that form part of business assets.

 The said goods are transferred or disposed of, so that the same will no longer form part of those assets.
 The disposal should be by the businessman or on his direction.
 The disposal may be with or without consideration.

Note: Business assets used for personal use whether or not for consideration will be considered as supply of services
Concept of Supply – Schedule - II
Generally, there is no supply when goods acquired by a person are used for business purposes. However, if the goods
are:
(i) Put to private or personal use; or
(ii) Made available for another person for use for any purpose other than a purpose of the business of owner.
(i)  Private or personal use or Used for the purpose other than business
XYZ Enterprise, a sole proprietor, is in the business of selling furniture. Its owner took a set of furniture to furnish
his house’s Delhi temporarily for 3 months. The personal use of the furniture by the owner, whether or not for a
consideration, is deemed as a supply of services by the company to him.
(ii)  Made available for another person’s use but not done in the course or furtherance of the business of the goods’
owner
ABC Ltd. bought a bulldozer to be used in its own construction business. However, it made the bulldozer available
to be used in the construction business of its sister company, XYZ Ltd. In this case, the usage of bulldozer for any
purpose other than its own business purpose, whether or not for a consideration, is a supply of services by ABC
Ltd.
Where any person ceases to be a taxable person, any goods forming part of the assets of the business carried on
by him, shall be deemed to be supplied by him in the course or furtherance of his business immediately before he
ceases to be a taxable person unless-
 The business is transferred as a going concern to another person, or
 The business is carried on by a personal representative who is deemed to be a taxable person
Concept of Supply – Schedule - II

Cases where person ceases to be Taxable person under GST

 Where a person has surrendered the GST registration on account of various reasons:

 Where a person has now engaged in the business of exclusively supplying goods/and or services
that are not liable to tax under this Act. E.g.- Supply of tobacco, petroleum products or liquor for
human consumption.

 Where the aggregate turnover of the business falls below the threshold limit under GST. (Refer to
Notes)

 Where the business has substantially suffered losses over the last year and the proprietor decided
to close the business and retire.

 In case of death of the taxable person.

Class-5: Table of contents

Levy of GST
 Types of Taxes
 Basis of charge - Input Tax Credit
 Mechanism of Input Tax Credit
 How to Claim Input Tax Credit
 Conditions for Input Tax Credit
 Online Input Tax credit process
Input Tax Credit

Type of Taxes under GST : All existing taxes such as Value Added Tax (VAT), Central Sales Tax (CST), Excise
Duty, Service Tax, Entertainment Tax have gone away and Goods and Services Tax (GST) will replace them.

There are 3 types of taxes under GST

I. SGST – State GST

II. CGST – Centre GST
III. IGST – Integrated GST
Input Tax Credit

 Input Tax Credit (ITC) is the tax that a business pays on a purchase and that it can use to reduce
its tax liability when it makes a sale. In other words, businesses can reduce their tax liability by claiming credit 
to the extent of GST paid on purchases.
Input Tax Credit

Eligibility:

Input Credit Mechanism is available when covered under the GST Act.

It means:

 If the organization is a manufacturer, supplier, agent, e-commerce operator, aggregator

 Registered under GST,

 Are eligible to claim INPUT CREDIT for tax paid by the firm on their PURCHASES.
Input Tax Credit

How to claim input credit under GST? :

1. Must have a tax invoice (of purchase) or debit note issued by registered dealer

Note: Where goods are received in lots/installments, credit will be available against the tax invoice upon
receipt of last lot or installment.

2. Should have received the goods/services

Note: Where recipient does not pay the value of service or tax thereon within 3 months of issue of
invoice and he has already availed input credit based on the invoice, the said credit will be added to his
output tax liability along with interest.

3. The tax charged on purchases has been deposited/paid to the government by the supplier in cash or via
claiming input credit

4. Supplier has filed GST returns

Possibly the most path breaking reform of GST is that input credit is ONLY allowed if your supplier has
deposited the tax he collected from you. So every input credit you are claiming shall be matched and validated
before you can claim it.

Therefore, to allow you to claim input credit on Purchases all your suppliers must be GST compliant as well.
Input Tax Credit

Conditions for availing ITC: There’s more you should know about input credit –

I. It is possible to have unclaimed input credit. Due to tax on purchases being higher than tax on sale. In
such a case, you are allowed to carry forward or claim a refund.

I. If tax on inputs > tax on output –> carry forward input tax or claim refund

II. If tax on output > tax on inputs –> pay balance
III. No interest is paid on input tax balance by the government

II. Input tax credit (ITC) cannot be taken on purchase invoices which are more than one year old. Period is
calculated from the date of the tax invoice.

III. Since GST is charged on both goods and services, input credit can be availed on both goods and services
(except those which are on the exempted/negative list).

IV. Input tax credit is allowed on capital goods.

V. Input tax is not allowed for goods and services for personal use.

VI. No input tax credit shall be allowed after GST return has been filed for September following the end of the
financial year to which such invoice pertains or filing of relevant annual return, whichever is earlier.
Input Tax Credit
Online Input Tax Credit - Process

Suppose there is a seller Mr. A and he sells his goods to Mr. B. Here Mr. B i.e. the buyer will be eligible to claim the
credit on purchases based on the invoices. Let’s understand how:

Step 1: Mr. A will upload the details of all tax invoices issued in GSTR 1.

Step 2. The details with respect to sales to Mr. B will auto populate/ get reflected in GSTR 2A, the same data will be
pulled when Mr. B will file GSTR 2 (i.e. details of inward supply).

Step 3: Mr. B will then accept the details that the purchase has been made and reported by the seller correctly and

subsequently the tax on purchases will be credited to ‘Electronic Credit Ledger’ of Mr. B and he can adjust it
against future output tax liability and get the refund.
Class-6: Table of contents

 Inter-state supply and Intra-state supply

 Place of supply
I. Movement of goods
II. No movement of goods
III. Goods supplied on a vessel/conveyance
IV. Imports & exports
Inter and Intra State Supply

GST is an indirect tax or consumption tax that is levied on the supply of goods or services or both.
To collect GST, supplies are categorized as Inter-State supplies, which mean goods coming from
one State to another, and intra-State supplies which suggest products within the State.

Inter-state supply: Supplies happening between two states is called as Inter – state supply

Example: if your company is in the state of Karnataka, supply goods to someone in another state
outside of Karnataka then it will be considered as inter-state supply. This means the transaction
will be an inter-State supply if the location of the supplier and the place of supply are in different
States.

Intra-state supply: Supplies happening within a state is called as Inter – state supply

Example: if your company supplied goods from the factory at Bengaluru (in Karnataka state) to
Mysore (in Karnataka state), then it will be considered as intra-state supply as both the places are
in Karnataka. This means supply will be an intra-State supply if the location of the supplier and the
place of supply are within the same State.
Place of Supply

Place of Supply under GST when there is Movement of Goods When a supply involves movement of

goods, the place of supply is the location at which the movement of goods terminates for delivery
to the recipient. 

 GST is a destination based tax, i.e., the goods/services will be taxed at the place where they are
consumed and not at the origin.

 So, the state where they are consumed will have the right to collect GST. This, in turn, makes
the concept of place of supply crucial under GST as all the provisions of GST revolves around it. 

 Place of supply of goods under GST defines whether the transaction will be counted as intra-
state or inter-state, and accordingly levy of SGST, CGST & IGST will be determined. 

I. Movement of goods
II. No movement of goods
III. Goods supplied on a vessel/conveyance
IV. Imports & exports
Place of Supply

I. Movement of goods:

Example 1: Intra-state sales: Mr. Raj of Mumbai, Maharashtra sells 10 TV sets to Mr. Vijay of Nagpur,
Maharashtra The place of supply is Nagpur in Maharashtra. Since it is the same state CGST & SGST will be charged.

Example 2: Inter-State sales: Mr. Raj of Mumbai, Maharashtra sells 30 TV sets to Mr. Vinod of Bangalore,
Karnataka The place of supply is Bangalore in Karnataka. Since it is a different state IGST will be charged.

Example 3: E-commerce sale: Mr. Raj of Mumbai, Maharashtra orders a mobile from Amazon to be delivered to his
mother in Lucknow (UP) as a gift. M/s ABC (online seller registered in Gujarat) processes the order and sends the
mobile accordingly and Mr. Raj is billed by Amazon.   Similar to example 4, it will be assumed that the buyer in
Mumbai has received the goods & IGST will be charged. Place of supply: Mumbai, Maharashtra GST: IGST
Place of Supply

Example 4: Deliver to a 3rd party as per instructions: Anand in Lucknow buys goods from Mr. Raj in Mumbai
(Maharashtra). The buyer requests the seller to send the goods to Nagpur (Maharashtra). In this case, it will be
assumed that the buyer in Lucknow has received the goods & IGST will be charged. Place of supply: Lucknow
(UP) GST: IGST
Place of Supply

Example 5- Receiver takes the goods ex-factory:  Mr. Raj of Mumbai, Maharashtra gets an order of 100 TV sets from
Sales Heaven Ltd. of Chennai, Tamil Nadu. Sales Heaven mentions that it will arrange its own transportation and take TV
sets from Mr. Raj ex-factory Place of supply: Chennai, Tamil Nadu GST: IGST. Although the goods are received ex-factory
i.e. in Maharashtra by the recipient, the movement of the goods terminates for delivery to the recipient only at
Chennai, Tamil Nadu. Irrespective of whether the supplier or the recipient is actually undertaking the movement of
goods, the place of supply is the location of goods where movement of goods terminates for delivery to the recipient
which is at Chennai. Hence, IGST is applicable.
Place of Supply

II. No movement of goods:

Example 1- No movement of goods: Sales Heaven Ltd. (Chennai) opens a new showroom in Bangalore. It purchases a
building for showroom from ABC Realtors (Bangalore) along with pre-installed workstations Place of supply:
Bangalore GST: CGST & SGST. There is no movement of goods (work stations), so the place of supply will be the location
of such goods at the time of delivery (handing over) to the receiver. Note: There is no GST on purchase of building or
part thereof. RENT of commercial space attracts GST 

Example 2- Installing goods: Strong Iron & Steel Ltd. (Jharkhand) asks M/s SAAS Constructions (West Bengal) to build a
blast furnace in their Jharkhand steel plant. Place of supply: Jharkhand GST: CGST & SGST. Although M/s SAAS is in
West Bengal, the goods (blast furnace) is being installed at site in Jharkhand which will be the place of supply. 

Note: M/s SAAS will have to be registered in Jharkhand to take up this contract. They can opt to register as a casual
taxable person which will be valid for 90 days (extendable by 90 days more, on basis of a reasonable cause).
Place of Supply

II. No movement of goods:

Place of Supply

III. Goods supplied on a vessel/conveyance:

Example 1 - Plane: Mr. Ajay is travelling from Mumbai to Delhi by air. He purchases coffee and snacks while on the
plane. The airlines is registered in both Mumbai and Delhi. Place of supply: Mumbai GST: CGST & SGST. The food
items were loaded into the plane at Mumbai. So, place of supply becomes Mumbai. 

Example 2 - Plane - Business travel: Mr. Ajay is travelling from Mumbai to Chennai by air on behalf of his
company Ram Gopal and Sons (registered in Bangalore). In the plane he purchases lunch. The airlines is registered
in Mumbai & Chennai. Place of supply: Mumbai GST: CGST & SGST. The food items were loaded into the plane at
Mumbai. So, place of supply becomes Mumbai. It does not matter where the buyer is registered.

Example 3- Train: Mr. Vinod is travelling to Mumbai via train. The train starts at Delhi and stops at certain stations
before Mumbai. Vinod boards the train at Vadodara (Gujarat) and promptly purchases lunch on board. The lunch
had been boarded in Delhi. Place of supply: Delhi GST: CGST & UTGST. The food items were loaded into the train
at Delhi. So, place of supply becomes Delhi.
Place of Supply

IV. Imports & exports:

The place of supply of goods:

 Imported into India will be the location of the importer

 Exported from India shall be the location outside India

Example 1 - Import: Ms. Malini imports school bags from China for her shop (registered in Mumbai) Place of supply:
Mumbai GST: IGST 

Example 2 - Export:  Ms. Anita (Kolkata) exports Indian perfumes to UK. Place of supply: Kolkata GST: Exempted
Class-7: Table of contents

 Time of supply
 Introduction
 Time of Taxation (Pre/Post GST)
 Forward Charge (Goods & Supply)
 Reverse Charge (Goods & Supply)
Time of Supply - Introduction

What is the Time of Supply under GST?

 For any taxation system, time of taxation or point of taxation is of crucial importance.

 Point of taxation (POT) refers to the point in time when tax is required to be paid for a taxable event.

 This is a mechanism which is used to determine the point in time when the tax liability will arise.

One of the major changes which has occurred between the previous indirect taxation regime and
currently in GST is, the definition of taxable event.

 While earlier, the taxable event was sale / removal, currently it is supply.

Accordingly we need to revisit the time of taxation, and understand how the time of taxation under GST
pans out.
Time of Supply

 Time of taxation in previous regime

Under the previous indirect tax regime, the point of taxation was different for each type of tax:

 Manufacturing of goods (Central Excise): Removal of the excisable goods from the excise unit
 Rendering of services (Service tax): Earliest of date of receipt of payment or date of issue of invoice
 Sale of goods (VAT / CST): Actual sales of goods

 Time of supply in GST

The time of taxation in GST is referred to as time of supply. Under GST, the taxable event is supply of goods and
services. The time - point of taxation of GST, when goods or services are supplied will be determined in terms of the
‘time of supply’ provisions, laid down by the GST Council.

The time of supply provisions, which determine the point of taxation of goods and services, can be split into 2
parts:

 For goods & services on Forward Charge

 For goods & services on Reverse Charge
Time of Supply
Time of Supply

Time of supply of goods & services under - Forward charge

Forward charge is a mechanism in which the supplier has to levy tax and remit the same to the credit of the central or
state Government. Under the current tax regime, tax is levied and collected on most transactions using the forward
charge mechanism (also called Direct Charge).

Time of supply of Goods under forward Charge

The liability of GST (CGST and SGST/UTGST or IGST, as applicable) will arise at the earliest of the following:

 Date of invoice: The date on which the supplier issues the invoice

 Due Date to issue invoice: The last date on which the supplier is required to issue the invoice with respect to the
supply of goods. In case of supply of goods involving the movement goods, the invoice needs to be issued at
the time of removal. In other cases, at the time of delivery of goods to the recipient.

 Receipt of payment: The date on which payment is received. The point of taxation in this case will be the earliest
of the date on which payment is accounted in the books of accounts of the recipient or the date on which
payment is credited to suppliers bank account.
Time of Supply

Time of supply of Services under Forward Charge

The liability of GST (CGST and SGST/UTGST or IGST, as applicable) will arise at the earliest of the following:

Time of supply of services is earliest of:

a) Date of issue of invoice
b) Date of receipt of advance/ payment.
c) Date of provision of services (if invoice is not issued within prescribed period)

Note: If in any case, either of the provisions mentioned above don’t apply, the time of supply for such services shall
be the date on which the recipient shows the receipt of services in his books of account

Date of Provisions for Services Mean:

30 days in all cases except for banking and financial institutions from the date of supply of services.
45 days in case of banking and financial institutions from the date of supply of services

Date of Receipt of the payment by supplier

> Payment is entered into the books of the account or credited in his bank account whichever is earlier.
Time of Supply

Time of supply of goods & services under Reverse Charge

 Under the reverse charge mechanism, the recipient or buyer of goods or services has to pay tax
to the credit of the government unlike forward charge, where the supplier has to pay the tax.

 This mechanism has primarily been introduced to ensure that the tax is collected on the sale of
goods or services from various unorganized sectors. This has helped the government to track and
tax those taxable goods and services which were so far not traceable.

In the previous regime the relevant taxes were applicable on goods and services under Reverse
Charge. On purchases of goods made from unregistered dealers, the recipient (registered dealer) of
goods had to pay purchase tax on reverse charge basis. Similarly, on certain notified category of
services, the recipient had to pay service tax on reverse charge basis.

The burden of tax liability under reverse charge, was applicable completely on the recipient of
service or partially on the service provider and the recipient of service, depending on the nature of
the service.
Time of Supply
Time of Supply

Time of supply of goods under Reverse Charge:

The liability of GST (CGST and SGST/UTGST or IGST as applicable) will arise at the earliest of the following:

 Date of receipt of goods: The date on which the goods are received by the recipient

 Date of payment: The date on which payment is made. The earliest of the date on which the payment is
accounted for in the books of accounts of the recipient or the date on which the payment is credited
to his bank account

 30 days from date of invoice: The date immediately following 30 days from the date of issue of invoice
by the supplier

Note: If for any reason, the above dates cannot be determined, then the time of supply will be the date of
recording the supply in the books of the recipient.
Input Tax Credit – Time of Supply

Time of supply of services under Reverse Charge:

The liability of GST (CGST and SGST/UTGST or IGST as applicable) will arise at the earliest
of the following

 Date of payment: Earliest of date of payment entered in books of accounts or the date
on which payment is credited to the bank accounts

 60 days from the date of invoice: In case payment is not made by recipient to service
provider within 60 days, the time of supply will the date immediately following the
expiry of 60 days

Note: If for any reason, the above dates cannot be determined, then the time of supply
will be the date of recording the supply in the books of the recipient.
Class-8: Table of contents

Levy of GST
 Normal Dealer and Composite Dealer
 GST rates notified for notified supply of various goods and services
 GST rate under composition scheme
 GST Tax Rates on common items (Goods)
 GST Tax Rates on Services
 Exemptions from GST
 Services
 Goods
Levy of GST

Normal Dealer: They calculate GST Payable by deducting OUTPUT GST -INPUT GST

Composition Scheme:
A scheme which is made for the benefit of small dealer, small manufacturer and small service provider by reducing
their burden of compliances. Like: Less number of returns, less maintenance of books and records as compared to
general dealer.

GST under composition scheme

 Businesses with annual turnover upto rupees 1 crore can opt for the composition scheme.

 In calculating the total turnover all business with the same PAN is added to calculate the annual turnover under
composition scheme.

 Composition scheme is not applicable for the service provider.

Under Composition Scheme, GST should not be collected on outward supply and supplied against Bill of Supply instead
of Tax Invoice. Since the outward supply is not taxed, input tax credit is not allowed. That is Composition dealers are
not allowed to collect tax from the recipient of supplies, and are not allowed to take Input Tax Credit.
Levy of GST

GST rate of Tax under composition scheme

Particulars SGST CGST Total

For Manufacturer other than

1% 1% 2%
manufacturer of notified goods

Services referred to in clause (b)

2.5% 2.5% 5%
of paragraph 6 of schedule II

Any Other Supplier 0.5% 0.5% 1%

Levy of GST

GST rate of Tax under composition scheme – Important Points

 Previous Law vs GSRT: If you are registered as composition dealer in previous law i.e. VAT/Excise then also you need
to apply for Composition Scheme in GST, duly signed within 30 days from the appointed day
 Normal vs Composition: If any registered person i.e. normal dealer wants to opt Composition Scheme shall
electronically file prior to the commencement of financial year.
 Place of business: Any intimation for opting composition scheme for any place of business shall be deemed for all
other place of business.
 Benefit: If you are supplying goods to a registered dealer then Composition Scheme is not beneficial for you as the
registered dealer is not entitled for input tax credit.
 Eligibility: IGST dealer are not eligible to take the benefit of composition scheme.
 Credit in ledger: If you are a normal dealer and wants to opt for composition, all credit in your ledger will lapse and
included in the cost of goods.
 Non Entitlement of ITC: If you are opting for composition scheme then you are not entitled for Input Tax credit
which becomes cost of your product
 Withdrawal: If any registered person wants to withdraw from the composition scheme shall, file an application,
electronically before the date of such withdrawal.
Levy of GST

GST Tax Rates on common items (Goods)

GST tax rates have been considered as per the necessity of the goods they are levied upon. The following
table shall give you an idea of the different tax slabs for some basic items. As one may notice, it has been
taken care that items of basic necessities reach the population with minimum tax rates.
Levy of GST
GST Tax Rates on Services
Levy of GST

Exemptions under GST – Based on Nature of Supply

Supplies of goods or services which are taxable at NIL rate of tax are exempt supplies. Certain supplies due to their
nature are exempted from the GST. Supplies which are notified by the government are exempted from GST
Levy of GST
Exemptions under GST - List of goods exempt from GST
Levy of GST

Exemptions under GST - List of goods exempt from GST

Levy of GST

Exemptions under GST - List of Services exempt from GST

• All the services related to agriculture including harvesting, cultivation, supply, packaging, warehouse, renting or
leasing of machinery, etc. are exempted from GST. However, this does not include the rearing of horses.

• Transportation of individuals via public transport, metered cabs, auto-rickshaws, metro, etc.

• Transport of agriculture produce and transportation of goods outside of India

• Transportation of goods where the total amount of charges is less than Rs 1,500

• Government and foreign diplomatic services

• Services provided by RBI or any foreign diplomatic mission in India are also exempt from GST

• Services provided to diplomats including the United Nations

• Certain healthcare and educational services are also exempt from GST such as mid-day meal catering services,
services provided by a Vet, clinic, or paramedics. Services by ambulances and charities are also included in the list
Class-9: Table of contents

Registration
 Relevant Definitions
 Persons liable for registrations (Sec.22)
 Procedure for registration

Tax Invoice, Debit Note & Credit Note

Registration

What is GST Registration

 In the GST Regime, businesses whose turnover exceeds Rs. 40 lakhs* (Rs 10 lakhs for NE and hill states) is
required to register as a normal taxable person. This process of registration is called GST registration.

 For certain businesses, registration under GST is mandatory. (Refer Notes) If the organization carries on
business without registering under GST, it will be an offence under GST and heavy penalties will apply.

 GST registration usually takes between 2-6 working days.

Note: *CBIC has notified the increase in threshold turnover from Rs 20 lakhs to Rs 40 lakhs. The notification
has come into effect from 1st April 2019.
Registration

Who Should Register for GST?

 Individuals registered under the Pre-GST law (i.e., Excise, VAT, Service Tax etc.)

 Businesses with turnover above the threshold limit of Rs. 40 Lakhs* (Rs. 10 Lakhs for North-Eastern States, J&K,
Himachal Pradesh and Uttarakhand)

 Casual taxable person / Non-Resident taxable person

 Agents of a supplier & Input service distributor

 Those paying tax under the reverse charge mechanism

 Person who supplies via e-commerce aggregator

 Every e-commerce aggregator

 Person supplying online information and database access or retrieval services from a place outside India to a
person in India, other than a registered taxable person
Input Tax Credit

Documents Required for GST Registration

I. PAN of the Applicant

II. Aadhaar card
III. Proof of business registration or Incorporation certificate
IV. Identity and Address proof of Promoters/Director with Photographs
V. Address proof of the place of business
VI. Bank Account statement/Cancelled cheque
VII. Digital Signature
VIII. Letter of Authorization/Board Resolution for Authorized Signatory

Penalty for not registering under GST

 An offender not paying tax or making short payments (genuine errors) has to pay a penalty of 10% of the
tax amount due subject to a minimum of Rs.10,000.

 The penalty will at 100% of the tax amount due when the offender has deliberately evaded paying taxes
Registration – Applying for GST Registration
Tax Invoice

Tax invoice is an invoice issued for taxable supply of goods & services. Tax invoice broadly contains
details like description, quantity, value of goods/service, tax charged thereon and other particulars as may
be prescribed. Tax invoice is a primary evidence for recipient to claim input tax credit of goods & service.

Note: Credit to NBC for availing this sample for education purpose
Debit and Credit Note

Debit Notes Under GST

GST takes care of all the changes made in a transaction. It is obvious to have a free flow of credits to the
last mile in a GST environment. Hence, dealers and assesses have to follow a tough regime of uploading
and updating every single transaction that they enter into.

Since debit notes are a major change to an invoice, they have to be reported separately in the GST returns.
Debit notes are explained under section 2(38) of the  GST Law.

The word debit note also includes supplementary invoice, it is issued when
a. Taxable value present in the invoice is less than the actual taxable amount (Ref Notes) or
b. Tax charged in the invoice is less than the actual tax payable (Refer Notes)

Implication of Debit Note:

Value of invoice increases due to extra goods/services are delivered or incorrect amount (taxable
value/tax) is entered in the invoice. In this case, the supplier will issue debit note. As in the books of the
supplier, customer account has the debit balance and on accounting of debit note, customer account
balance be will increase. The customer gives credit note on receipt on the debit note to the supplier. The
credit note will increase the liability in the books of the customer, as he has pay an extra amount to settle
the liability.
Debit and Credit Note

Credit Notes Under GST

GST takes care of credit notes as well, just like debit notes. Credit notes have to be issued by a taxable person,
where there is a shortage of products supplied and for which there is no payment to be made by the purchaser.
Since it has a commercial impact, the same has to be informed or declared in GST returns in the month to which
it prevails.

The credit note has to be issued based on an original invoice already issued. The original invoice will get
reduced to the extent of such credit notes. In some cases, the original invoice value can become zero. Credit
notes are defined in section 2(37) of the  GST Law.

Credit notes can be issued in the following cases: (Refer notes for example)

I. Taxable value present in the invoice is more than the actual taxable amount or

II. Tax charged in the invoice is more than actual tax payable

III. Recipient returns the goods to the supplier(sales return)

IV. Goods are found deficient or not as per satisfaction of the buyer
Appendix
Summing of Existing Tax Structure
Tax Invoice

Particulars to be shown in the tax invoice are as follows:

I. Words of ‘Tax Invoice’ must be clearly stated

II. Invoice serial number
III. Date of the invoice
IV. Name, address & GST Registration Number of the Registered Company
V. Name & address of the customer
VI. Detailed description of the goods and/or services supplied
VII. Quantity of the goods and/or services supplied
VIII. Discount, if any
IX. Total sale amount before GST
X. Rate of tax (6%)
XI. Total GST charged
XII. Total sale amount including GST
Debit and Credit Note
The content of Debit Note

The following things are to be maintained in the debit note, for proper update and reporting. Although there is
no predefined format for the same, necessary care has to be taken to mention these important details in the
debit notes.

Rule 53 states that the debit note shall contain the following particulars:

1. The word “Debit Note”, to be indicated prominently

2. Supplier’s name, address, and GSTIN
3. Nature of the document
4. The consecutive serial number which is a unique number for every financial year
5. Date of issue of the document
6. Name, address and GSTIN or UIN, if registered, of the recipient
7. Name and address of the recipient and the address of delivery, along with the name of State and its
code, if such recipient is unregistered
8. Serial number and date of the corresponding tax invoice or, as the case may be, bill of supply
9. Value of taxable supply of goods or services, the rate of tax and the amount of the tax credited or
debited to the recipient and
10. Signature or digital signature of the supplier or his authorized representative

The details of debit notes have to be declared in the month following the month on which such debit note has
been raised. Debit notes can be issued anytime without any time limit.
Tax Invoice
In the above situation, the liability to pay the amount by recipient reduces and hence debit note is issued by
them and as an acknowledgment to debit note, credit note is issued by the supplier. As in the books of the
recipient, supplier account has a credit balance and by issuing the debit note credit balance will be reduced. In
other words, we can also say that recipient is reducing the liability.

Credit notes must also mention the details as noted above in case of debit notes. The particulars are the same
in this case as well. Such credit notes must be mentioned in the returns of the following month about which the
credit note has been raised. Unlike debit notes where there is no time limit for issuance, credit notes have to be
declared in earlier of the following dates:

Annual return filing date or,

By the 30th of September, following the year to which credit notes relate to. Let us understand the above time
limits with some examples –
Payment of Tax
 Relevant definitions
 Payment of Tax
 Interest
 Penalty and Other Amounts
Tax Payment

GST Payments and Refunds:

1. What are payments to be made under GST?

Current GST return filing requires that every month, once GSTR-1 is filed to report Sales:

 One must file GSTR-3B to report the ITC and make necessary GST Payment.
 Also if a refund is required to be claimed the same can be done by filing relevant refund related forms.

Under GST the tax to be paid is mainly divided into 3 –

 IGST – To be paid when interstate supply is made (paid to center)

 CGST – To be paid when making supply within the state (paid to center)
 SGST – To be paid when making supply within the state (paid to state)

Apart from the above payments a dealer is

required to make these payments –

Tax Deducted at Source (TDS) – TDS is a

mechanism by which tax is deducted by the
dealer before making the payment to the
supplier
Tax Payment

GST Payments and Refunds:

For example –
A government agency gives a road laying contract to a builder. The contract value is Rs 10 lakh.

When the government agency makes payment to the builder TDS @ 1% (which amounts to Rs 10,000) will be
deducted and balance amount will be paid.

Tax Collected at Source (TCS) – TCS is mainly for e-commerce aggregators. It means that any dealer selling
through e-commerce will receive payment after deduction of TCS @ 2%.

This provision is currently relaxed and will not be applicable to notified by the government.

Reverse Charge – The liability of payment of tax shifts from the supplier of goods and services to the
receiver.
Tax Payment
Tax Payment

2. How to calculate the GST payment to be made?

Usually, the Input Tax Credit should be reduced from Outward Tax Liability to calculate the total GST payment
to be made.

TDS/TCS will be reduced from the total GST to arrive at the net payable figure. Interest & late fees (if any) will
be added to arrive at the final amount.

Also, ITC cannot be claimed on interest and late fees. Both Interest and late fees are required to be paid in
cash.

The way the calculation is to be done is different for different types of dealers –

Regular Dealer
A regular dealer is liable to pay GST on the outward supplies made and can also claim Input Tax Credit (ITC) on
the purchases made by him.
The GST payable by a regular dealer is the difference between the outward tax liability and the ITC.
Tax Payment

2. How to calculate the GST payment to be made?

Composition Dealer
The GST payment for a composition dealer is comparatively simpler. A dealer who has opted for composition
scheme has to pay a fixed percentage of GST on the total outward supplies made.
GST is to be paid based on the type of business of a composition dealer.

GST is to be paid based on the type of business of a composition dealer.

Tax Payment

3. Who should make the payment?

These dealers are required to make GST payment –

I. A Registered dealer is required to make GST payment if GST liability exists.

II. Registered dealer required to pay tax under Reverse Charge Mechanism(RCM).

III. E-commerce operator is required to collect and pay TCS

IV. Dealers required deducting TDS

4. When should GST payment be made?

GST payment is to be made when the GSTR 3 is filed i.e. by 20th of the next month.
Tax Payment

5. What are the electronic ledgers?

These ledgers are maintained on the electronically on GST Portal.

Tax Payment

6. How to make GST payment?

GST payment can be made in 2 ways –

Payment through Credit  Ledger –

The credit of ITC can be taken by dealers for GST payment. The credit can be taken only for payment of Tax.
Interest, penalty and late fees cannot be paid by utilizing ITC.

Payment through Cash Ledger –

GST payment can be made online or offline. The Challan has to be generated on GST Portal for both online and
offline GST payment.
Where tax liability is more than Rs 10,000, it is mandatory to pay taxes Online.

7. What is the penalty for non-payment or delayed payment?

If GST is short paid, unpaid or paid late interest at a rate of 18% is required to be paid by the dealer.
Also, a penalty to be paid. The penalty is higher of Rs. 10,000 or 10% of the tax short paid or unpaid.
Tax Payment

B. Refunds –

1. What is GST refund?

Usually when the GST paid is more than the GST liability a situation of claiming GST refund arises. Under
GST the process of claiming a refund is standardized to avoid confusion. The process is online and time
limits have also been set for the same.

2. When can the refund be claimed?

There are many cases where refund can be claimed. Here are some of them –
Excess payment of tax is made due to mistake or omission.

• Dealer Exports (including deemed export) goods/services under claim of rebate or Refund
• ITC accumulation due to output being tax exempt or nil-rated
• Refund of tax paid on purchases made by Embassies or UN bodies
• Tax Refund for International Tourists
• Finalization of provisional assessment
Tax Payment

B. Refunds –

3. How to calculate GST refund?

Let’s take a simple case of excess tax payment made.

Mr. B’s GST liability for the month of September is Rs 50000. But due to mistake, Mr. B made a GST payment of
Rs 5 lakh.

Now Mr. B has made an excess GST payment of Rs 4.5 lakh which can be claimed as a refund by him. The time
limit for claiming the refund is 2 years from the date of payment.

4. What is the time limit for claiming the refund?

 The time limit for claiming a refund is 2 years from relevant date.
 The relevant date is different in every case.
 Here are the relevant dates for some cases 
Tax Payment

B. Refunds –

How to claim GST refund?

The refund application has to be made in Form RFD 01 within 2 years from relevant date.
The form should also be certified by a Chartered Accountant.
Tax Payment

Interest calculation for delayed Payment

Tax Payment
 5. Returns – Basic Information
GST return is a document that will contain all the details of your sales, purchases, tax collected
on sales (output tax), and tax paid on purchases (input tax). Once you file GST returns, you will
need to pay the resulting tax liability (money that you owe the government)
GST Return Due Dates in India
 Compiled by
CMA Ramesh Rajagopalan
Disclaimer: This presentation is only for education purpose. It is just an hand out and you are advised
to refer to the prescribed book(s) and do further research for more insight into the subject