UNIT II

Registration under GST

Significance of Registration
1) A registered person is legally recognized as supplier of goods and services.
2) He is legally authorized to collect taxes from his customers.
3) He can claim input tax credit pertaining to inward supply of goods and
services.
4) Registration provides seamless flow of input tax credit across the country.

Threshold limit for registration

If an aggregate turnover of the financial year exceeds Rs. 40 lac. In normal
states and exceeds Rs. 20 lac. In special category states(Arunachal Pradesh,
Assam, Himachal Pradesh, Mainpur, Meghalaya, Mizoram, Nagaland, Sikkim,
Tripura and Uttrakhand) the registration is compulsory for person engaged in
business and activity of goods and services. Though, business having aggregate
turnover below the threshold limit can opt registration as voluntary.

Aggregate turnover
It means the aggregate value of:

1) All taxable supplies plus-

2) Exempt supplies plus-
3) Export of goods and services plus-
4) Interstate supplies plus-
5) All supplies made by the taxable persons on behalf of his principle or from
his own account.

All these supplies shall be determined due to a PAN no. of all units and
branches of tax payer and aggregate value is computed on all India basis.

But aggregate turnover does not include:

 1) Value of inward supply on which tax is paid on reverse charge basis
2) Amount of GST(IGST, CGST, SGST, UTGST)
3) Supply of goods, after completion of job work by a registered job worker
shall be treated as supply of goods by the principal and shall not be
included in the aggregate turnover of registered job worker.

Persons not liable for registration

1) Engaged exclusively in making exempt supplies.
For this their whole supply shall be of goods and services which fall under

exempted category.

2) Agriculturist: Only individual and HUF are beneficiary for this category.
3) Person engaged only in supplies on which GST is paid on reverse charge
basis.

Non-Resident Taxable person

If any non-resident person undertakes transaction involving supply of
goods/services in India is compulsorily bind to take registration within the
period of 5 days prior to commencing such transaction.

Registration in other cases

1) Persons who registered under pre-GST regime: They are issued provisional
GSTIN for the purpose of registration. They can opt the same or apply for
cancellation of provisional GSTIN
2) Registration and transfer of business: When business is transferred to other
person the new person is liable to take the new registration except the
cases of succession or other legally enforced cases.
3) Registration in case of merger/ amalgamation: In case of such type of
transfer the order of high court or tribunal and certificate issued by ROC of
companies is the determination and point of new registration.

Procedure for Registration

1) Registration in GST is PAN based and state specific.
2) It is a 15 digit code.
3) A GSTIN number is issued after registration.
4) And GSTN is a common portal for all business related activities.
5) GSTIN contains 2 characters for state code, 10 characters for PAN or TAN, 2
characters for entity code, 1 checksum character.
6) Registration is issued on the basis of application after verification and
examination of such application.
7) Amendment of registration: It can be applied within 15 days of such change
in electronic mode in Form REG-14 along with documents relating to such
change.
8) Cancellation of registration: It can be done by the proper officer on his own
motion or on an application filed by a registered person or by his legal
heirs.(In case of death or insaneness)
9) Revocation of cancellation of registration is on the virtue of proper officer
on his own or by application if the reasons for cancellations are erased by
way of interest penalty or late fee etc.
10) Method of authentication in all application, notices, returns etc. is
based on Aadhar based EVC and EVC through net banking and these EVC
code generated on the common portal of GST and digital signatures also a
mode of authentication.

What is supply
Supply of goods or services or both is a taxable event in GST. Supply means
transfer of goods and services between the people who are not in relation and
there must be consideration for such supplies except some cases.

Meaning of goods or purpose of supply

1) ‘Goods’ means every kind of movable property.
2) It does not include money and securities.
3) It includes growing crops, grass and things attached to or forming part of
the land.
4) It includes actionable claims

Meaning of services
1) It means other than goods, money and securities.
2) It includes activities relating to use of money or its conversion etc.

Meaning of consideration

The consideration means everything received or recoverable in return of

goods/services. It includes monetary payment, any consideration of non-
monetary nature or deferred nature. Consideration cannot be illusory.

Meaning of transfer
Because supply is based on transfer of goods or services, the items under given
should be considered as transfer:

1) Transfer of title in goods.

2) Transfer of right in goods.
3) Transfer of title in goods under a forward contact.
4) Lease/tenancy of land and building.
5) Letting out of land and building.
6) Job work services
7) Transfer of business assets
8) Use of business goods for non-business use.
9) Renting of immovable property.
10) Construction of complex, building, civil structure
11) Temporary transfer of any intellectual property right
12) Transfer of right to use any good.
13) Work contract to be treated as composite supply.
14) Supply of food/other article for human consumption to be treated as
composite supply.
15) Supply of goods and services to the distinct persons
Supply of goods and services covered under the negative list
The items or activities covered under the negative list are not subject for GST
imposition:

1) Employment: Services between employee and employer in relation of

employment.
2) Court: Services by way of court or tribunal established under any law for
the time being enforced.
3) MPs: Functions performed by MPs, MLAs, MLCs, Member of Panchayats
and municipalities and member of local authorities.
4) Funeral: Services of funeral, burial, cremations or mortuary including
transportation of diseased.
5) Sale of land: Any sale of land including building.
6) Actionable claims: Actionable claims, other than lottery, betting and
gambling.

The different type of supply:

1) Taxable supply: It refers to the supply of goods and services which is
chargeable under GST. The transaction value of the supply shall be the
determining factor for the GST calculation.
2) Zero-rated supply: It is the type of supply on which no tax is payable but
input tax credit is admissible in these supplies. Export of goods or supply to
special economic zones are considered under it.
3) Exempt supply: It is those type of supplies on which the exemption from
GST is allowed by any law or notification issued by the government.
4) Continuous Supply: Continuous supply of goods and services are those
which occurring on recurrent basis under a contract.
5) Composite supply: It means any supply of goods and services in a mixed
nature in these cases the rate of principal supply shall be applied for the
calculation of GST if supply is naturally bundled.
 6) Mixed supply: It comprises of 2 or more supplies but such supply is not
naturally bundled so the rate which is highest in mixed supply item will be
imposed on such supply

PLACE OF SUPPLY
Determination of place of supple of goods/services is very significant under GST
law, as the place of supple of goods/services together with location of supplier,
determine whether the supple is inter-state or intra-state supply.

How to find out location of supplier of goods:

Location of supplier is usually the place from where the supply is made. A place
mentioned as principal place of business on GST registration certificate, may be
taken as location of supplier.

 How to find out location of supplier of services:

When supply is made from place of Location of such place of business.

business for which the registration is
obtained.
When supply is made from place other Location of fixed establishment.
than the place of business obtained
under registration.
When supply is made for more than Location of establishment most directly
one establishment. concerned with concerned of such
supply.
In any other case. Location of usual residence of supplier.

 How to find out location of recipient of services:

When supply is received from place of Location of such place of business.

business for which the registration is
obtained.
When supply is received from place Location of fixed establishment.
other than the place of business
obtained under registration.
When supply is received for more than Location of establishment most directly
one establishment. concerned with received of such supply.
In any other case. Location of usual residence of
receipent.
 How to find out place of supply of goods which is located in domestic
territory only:

Where the supply involves movement Place of supply shall be location of

of goods whether by supplier or
recipient.
Where goods are delivered by the
supplier to recipient but on the
direction of the third person.
Where the supply does not involve
movement of goods whether by
supplier or the recipient.
Where the goods are assembles or
installed at site.
Where goods are supplied on any
conveyance including vessel, aircraft, or
train.
goods where such movement
terminates for delivery.
It shall be deemed that the third person
has received the goods and the
principal place of business of third
person is the place of supply.
Place of supply shall be the location of
such goods.
Place of supply is the location of such
site.
Place of supply shall be location where
goods are taken on board.

 Place of supply when goods are exported or imported:

 Import- In case of import of goods, the location of importer is the place of
supply of goods.
 Export-In case of export of goods, the location of outside India is the place
of supply of goods where goods is exported.

How to find out place of supply of services:

1. Place of supply of services where supplier and recipient are located in
India:

When supply made to a registered Location of the recipient.

person.
When supply made to unregistered Location of the recipient.
person and location of recipient is
available.
When supply made to unregistered Location of supplier.
person and location of recipient is
not available.

2. When supply of services is in relation of immovable property:

The place of services which are directly in relation of immovable property,

the location of immovable is the place of supply of services.

3. When supply of services is by way of lodging accommodation by hotel

etc.:

The place of supply of services shall be the location at which such hotel,
inn, guest-house, club, boat, vessel is located.

4. When supply of services if by way of organizing of any function or

event through accommodation and its ancillary services:

The place of supply of services is the location of such immovable property

where such function or event and its ancillary services is provided.

5. When supply of services is in relation of performance based services:

The place of supply of services shall be the location where the services are
actually performed.

6. When supply of services is by way of training and appraisal services:

When supply is made to registered person, the place of the supply is the
location of recipient.

When supply of service is made to unregistered person, the place of supply

is the location where services are actually performed.
7. When supply of services by way of admission of any event:

The place of supply of services is the location where the event is actually
held.

8. When supply of services is pertaining to transportation of goods:

When supply is made to registered person, the place of the supply is the
location of recipient.

When supply of service is made to unregistered person, the place of supply

is the location where goods are handed over for their transportation.

9. When supply of services is by way of banking and financial services:

The place of supply of services is the location of the recipient as per the
records of the supplier, if recipient’s location is not recorded then the
location of supplier of services.

10. When supply of services is by way of advertisement provided to

government:

The place of supply of services will be the concerned state/ union territory
if they are more than one then the state and union territories such
advertisement is broadcasted and published.

11. When supply of services is by way of insurance services:

When supply is made to registered person, the place of the supply is the
location of recipient.

When supply of service is made to unregistered person, the place of supply

is the location of the recipient of services on the records of supplier of
services.

When supply of services is located outside India:

Where the location of recipient of Location of recipient.
services is available.
Where the location of recipient of Location of supplier.
services is not available.

1. When supply of services is by way of goods made physically available

to recipients:

The place of supply of services is where such services are actually

performed.

2. When supply of services is by way of immovable property:

The place of supply of services will be determined as determined under

services of domestic territory.

3. When supply of services is by way of admission to organize an event:

The place of supply of services will be the place where such event is actually
held.

4. When supply of services is by way of banking, NBFC and other financial

institutions to its accounts holders:

The place of supply of services shall be the location of supplier of the

services.

5. When supply of services is by way of transportation of goods other

than mail and couriers:

The place of supply of services is the place of destination of such goods.

6. When supply of services is by way of transportation of passengers:

The place of supply of services is the place where the passengers embark
on conveyance for a continuous journey.

7. When supply of services is by way of Online Information and Database

Access and Retrieval:
 The place of supply of services is the place shall be the location of recipient
of the services. If such location is not identifiable then location is deemed
on basis of two satisfied condition out of given seven conditions:

 The location provided by the recipient is of India.

 The credit card/debit card/any other card by which payment is made
by recipient is issued by Indian institution.
 The billing address of the recipient is of India.
 The IP address of device used by recipient is of India.
 The bank from which payment is made by recipient is of India.
 The country code of the subscriber identity module card used by
recipient is of India.
 The location of fixed landline through which service is received by
recipient is of India.

TIME OF SUPPLY
The liability to pay GST on goods/services arises at the time of supply, so
the determination of time of supply is very significant for the liability of
charge under GST and due date of the payment of such charge depends on
time of supply, normally it is paid on monthly basis by 20th day of
succeeding month.

Statutory time for issue of invoice in case of supply of goods:

 Removal of goods for supply to the recipients when supply involves
movement of goods; or
 Delivery of goods; or
 Making available of goods to the recipients.

The obligation to issue the invoice is latest by performance of any of the three
activities keeping in view:-

 Continuous supply of goods:

Earlier of the invoice issued before or at the time of statement or payment
received against such supply.

 Goods on approval:
 Invoice should be issued within six months from date of removal of goods,
or
 The date when recipients accepted the supply of such goods.

Whichever is earlier.

Statutory time for issue of invoice in case of supply of services:

The invoice should be issued within 30 days from the date of supply of taxable
services. Point to be noted:

 When supplier of services is insurance company/banking

company/NBFC/financial institutions such invoices can be issued within
45 days from supply of services.
 When above all are the distinct person may issue invoice before or at
the time of supply recorded in the book of account or expiry of quarter
in which such supply is made.

How to find the time of supply of goods:

Event 1- Date of issue of invoice by the supplier or the last date required to
issue the invoice.

Event2- Date of receive of the payment

On basis of the events time should be determined as under:

 From 1.7.17 to 12.10.17 time of supply is earlier of the above 2 events.

 From 13.10.17 to 14.11.17 if aggregate turn-over is upto 1.5 crore time
of supply is Event 1, if aggregate turn-over is more than 1.5 crore the
time of supply is earlier of the above 2 events.
 From 15.11.17 to up till now time of supply is Event 1.
Option in case of advance received upto Rs.1000:
The excess amount received over supply upto Rs. 1000 should be included in
invoice at the option of the said supplier to include such amount in present
invoice or in succeeding invoice.

 From 1.7.17 to 12.10.17 option is available to supplier.

 From 13.10.17 to 14.11.17 if aggregate turn-over is upto 1.5 crore
option is not available, if aggregate turn-over is more than 1.5 crore
option is available.
 From 15.11.17 to up till now the option is not available.

The time of supply if GST is payable under reverse charge:

The time of supply of goods will be determined on given basis:

1. The date of receipt of goods.

2. The date of payment as entered in the book of account of recipient.
3. The date immediately following 30 days from issue of invoice by
supplier.

The time of supply is the earlier of the 3 dates above mentioned.

The time of supply of goods in case of vouchers:

 When such supply is identifiable at the time of issue of voucher, the
time of supply will be the date of issue of such voucher.
 In other cases, the time of supply will be the date of redemption of
voucher.

In any other cases:

If it is not possible to find out the time of supply in aforesaid situations the
time of supply will be the date on which the return is filed and/or date on
which GST is paid.

The time of supply of goods/services in case of change in GST rate

When goods/services supplied before the change in rate of tax, invoice is
issued or payment is received or both are after the change in GST rate; earlier
of the dates of both the events will be the time of supply.

When goods/services have been supplied after the change in rate of tax.

If supply is made after the change in GST rate but invoice is issued and
payment is received before the change in GST rate the earlier date of above
two statements will be the date of time of supply.

If invoice is issued before and payment is received after the change in GST rate
or payment is received before the GST rate and invoice is issued later. The
time of supply will be the later date of both the events.

Value of Taxable Supply

Transaction Value
Transaction value is the price actually paid for supply of goods or services or
both. The two conditions must be satisfied for the calculation of transaction
value.

1. The supplier and the recipient of supply are not related to each other.

2. The price is the sole consideration for the supply.

Items to be included in transaction value

1.Taxes-Any taxes, duties or charges etc. under any law or act except CGST,
SGST, UTGST, ITGST and GST Compensation cess if they are charged
separately.

2. Supplier’s obligation met by recipient.

 3. Incidental expenses.-Any commission, packing charged by supplier to the
recipient of a supply.

4. Interest-Interest, late fee or any penalty for delayed payment etc.

5. Subsidy-Subsidy is directly linked to the price except the subsidy is provided

by the Central and State government.

Items to be excluded from transaction value

1. Discount which is allowed before or at the time of supply and it is duly

recorded in the issued invoice.

2. The discount that is allowed after the supply shall not be included if two
conditions given are satisfied-

a) If such discount is given under an agreement entered into at or before the

time of supply.

b) If Input tax credit has been reserved by the recipient of the supply
attributed to the discount as per invoice.

Value of supply when consideration is not wholly in money

1. In such case value of supply shall be open market value of such supply.

2. When open market value is not available, the value of supply is the total of
consideration in money plus value of consideration which is not in money
calculated on equivalent approach.

3. If value of supply is not fall under point one and two, the value of supply will
be the value of goods or services or both of same kind and quality.

4.if condition is different from above three points, the value of supply will be
the consideration is in money plus equivalent of consideration not in money
which is calculated as per Rule 30 and 31(110% of cost of production or service
and by residual method)

Value of supply when goods need or received through an agent

 1. Open market value salary considered as value of supply in case of supply
made by an agent.
2. When goods are intended for further supply as such by recipient, the
value of supply will be the 90% of the price charged by recipient for like
goods.
3. When value of supply is not determinable under the above situations,
value of supply will be determined by the help of rule 30 or rule 31.

Value of supply of goods/services based on cost(Rule 30)

Under this rule the value of supply will be taken as equal to:

1. 110% of cost of manufacture or production or cost of acquisition of goods.

2. 110% of cost of acquisition of services.

Value of supply of goods/services under Rule 31

This method of value calculation is known as residual method, it is only applied
when value of supply cannot be determined by any of the above method
discussed. The value of supply of goods/services shall be determined by using
reasonable means.

Value of supply under Rule 32

1) Services in relation to purchase or sale of foreign currency.
a) Value of supply shall be the difference between the Indian currency and the
foreign currency and exchange rate of RBI will be taken for the sale.
b) If reference rate of foreign currency is not available then value of supply
shall be 1% of gross amount of Indian Rupee provided or received for
exchanging such money.
c) If such exchange is between the 2 foreign currencies then value of supply
shall be equal to 1% of the lesser of 2 amounts in reference of Indian currency.

2) Value of supply when services are provided by air travel agent in relation of
ticket booking.

a) 5% of the basic fare rate in case of domestic bookings.

 b) 10% of basic fare rate in case of international bookings.

3) Value of supply in relation of life insurance business.

a) When policy is taken for the purpose of investment as well as risk cover like
as ULIP, the value of supply is premium charged minus amount allocated for
investment.

b) In case of single premium policies, 10% of single premium charged.

c) If policy is taken only for the risk cover, entire premium shall be considered
as value of supply.

d) In case of any other policy, value of supply is 25% of premium charged in the
st
1 year and 12.5% premium charged in the subsequent years.

4) Value of supply in case of 2nd hand goods.

a) Value of supply shall be calculated only on those persons who deal in buying
or selling of 2nd hand goods, no ITC had been availed on the purchase of such
goods, if these conditions are satisfied then value of supply shall be the difference
between the purchase price and the selling price of such 2nd hand goods, but if
the selling price is less than the purchase price value of supply shall be considered
as NIL.

5) Value of supply in case of token or voucher.

a) Value of supply shall be the redeemable cost of supply of goods and

services, if such supply of goods and services is identifiable from very beginning
through token and voucher shall be considered as full.

6) Value of supply of services if provided by notified service providers.

a) If service providers are notified by the government and ITC is available to

them and such supplies are provided to distinct persons then value of supply shall
be deemed to be NIL.

Value of Supply in case of Lottery run by the state governments

1) If such lottery is not allowed to be sold in any other state other than the
organizing state, the value of supply shall be deemed to be 100/112 of the
face value of the ticket or prize notified by the official gadget whichever is
higher.
2) If such lottery is allowed to be sold in states other than the organizing state,
the value of supply shall be deemed to be 100/128 of the face value of
ticket or prize notified in official gadget whichever is higher.

Value of supply in case of construction of complex involving the

undivided share of land
In case of the construction of complex where property in land is undivided, the
value of supply shall be the total amount minus value of land and for this
purpose the value of land shall be deemed as 1/3rd of total amount charged.

UNIT V
Returns
In a GST mechanism the filing of returns, uploading of the invoice is related to
input tax credit mechanism. It is an auto-population of the information and
matching and auto-reversal of input tax credit in the cases of mismatch so
return mechanism is designed to assist the tax-payers and to deal the various
aspects of GST smoothly and efficiently.

Regular tax-payers have to furnish monthly/quarterly returns and one annual

return. The dealers who have opted the composition scheme have to file
separate type of returns as well as non-resident persons and input service
distributers or the person who are liable to deduct or collect the tax and a
person who are granted unique identification number have to file returns in a
different manner.

Method of return filing

 1. On GSTN portal(www.gst.gov.in)
2. Offline utilities provider by GSTN
3. GST suvidha providers: If a tax-payer uses a service of enterprise
resource planning.

Different types of return as provided in original version applicable

from 1st July 2017
GSTR-1 is monthly statement of outward supply of goods and services filed by
a registered person on the 10th of the next month.

GSTR-2 is a monthly statement of inward supply of goods or services filed by a

registered person on 15th of the next month.

GSTR-3 is a monthly return for the normal tax-payer filed by the registered
person on the 20th of the next month

GSTR-4 is a quarterly return and filed by a person who opted composition

scheme on the 18th of the month succeeding the quarter.

GSTR-5 is a monthly return for non-resident tax payers and filed by the non-
resident person on the 20th of the month succeeding the tax period and within
7 days after expiry of registration.

GSTR-6 is a monthly return for the input service distributer filed by the
registered input service distributer on the 13th of the next month.

GSTR-7 is a monthly return filed by the authorities deducting TDS on the 10th
of the next month.

GSTR-8 is a monthly statement for e-commerce operator depicting supplies

effecting through it filed by the e-commerce operator on the 10th of the next
month.

GSTR-9 is an annual return filed by a registered person (other than ISD,

TDS/TCS tax payer, causal tax payer and NR tax payer) on 31st December of
next financial year
 GSTR-10 is a final return filed by a registered person who has surrendered his
registration or whose registration is cancelled within 3 months of the date of
cancellation or such surrender.

Note:

1. Details should be mentioned in GSTR-1, invoice wise detail means

inter-state and intra-state supply to registered and unregistered
dealers. Details of debit and credit notes issued during the period of
such GSTR . Zero-rated supplies ad deemed exports are also mentioned.
Statement of advance is declared. HSN wise summary of outward
supply is also mentioned. Any payment and receipt voucher, refund
invoice, voucher refund, delivery chalaan also be the part of GSTR-1
detail.
2. Details under GSTR-2 is inward supply received from registered person
and inward supplies for which reverse charge paid separately.
Inputs/Capital goods received from overseas or SEZ units. Supplies
received from composition scheme opted person and other exempted/
NIL rated/ non GST supplies. Details of ISD credit received and details of
TDS/TCS credit received is also mentioned. Consolidated statement for
advance paid or advance adjusted on account of any receipt is
mentioned. Lastly input tax credit reversal/reclaim is shown. Addition
and reduction on amount of output tax for any mismatch is shown.
3. GSTR-3 is a consolidated return which fetch the details of outward
supply from GSTR-1, and details of inward supply from GSTR-2. Details
of input tax credit availed, details of tax-payable and tax-paid by the use
of electronic tax ledger and electronic credit ledger should be
mentioned clearly. Any interest liability and late fees is also shown
clearly.
4. GSTR-4 details require for this return is inward supplies, tax on outward
supply, consolidated statement of advance, TDS credit received, tax
payable and paid , interest, late fee payable and paid and any refund
claimed.
 5. Details under GSTR-5 are input/capital goods received from overseas,
taxable outward supplies to registered persons, taxable outward to
inter-state unregistered person, total tax liability, tax-payable, any
interest and late fee payable and refund claimed.
6. Details under GSTR-9 is an annual return and applicable to all the
registered persons and to be filed by December 31st, after the end of
financial year. The composition scheme dealer file this return in form of
GSTR-9a, e-commerce operator shall furnish their annual statement in
form of GSTR-9b, registered persons whose aggregate turnover during
financial year exceeds Rs. 2 crore has to submit an audited copy of
annual accounts and reconciliation statement duly certified by CA in
form of GSTR-9c electronically.

Electronic credit ledger

Electronic credit ledger shall be maintained in form GST PMT-02 by every
registered person who is eligible for input tax credit on common portal. Every
input tax credit shall be credited to the said ledger.

 Said ledger shall be debited to the extent of discharge of tax liability.

 When registered person claim any refund of any unutilized amount
from said ledger the amount to the extent of claim shall be debited.
 If refund of claim is rejected either fully or partly the amount debited to
the extent of registration should be re-credited to the said ledger by an
order of assessing officer in form GST PMT-03.
 If any discrepancy is found in the said ledger is to be communicated to
the responsible authorities in form GST PMT-o4 through common portal
by registered person.

What is electronic cash ledger

Electronic cash ledger shall be maintained in form GST PMT-05 for each
person who is liable to pay tax, interest, penalty, late-fee or any other amount
under GST. The said ledger is maintained on common portal for this purpose.
  Challan- Any registered person shall generate a chalaan in form GST
PMT-06 on common portal and enter the details of amounts to be
deposited by him. The validity of challan is generally for the period of 15
days and the mode of deposit against payment are internet banking,
credit-card or debit-card of authorized bank, NEFT or RTGS from any
bank over the counter payment through authorize bank for deposit
upto Rs. 10,000 per challan.
 Any payment made to/by unregistered person shall be on the basis of
temporary identification number generated through common portal.
 On successful credit of amount the Challan Identification Number(CIN)
is generated by the collecting bank and such amount shall be credited
to electronic cash ledger on the common portal.
 Any refund claimed for any amount from electronic cash ledger, the
said amount shall be debited to electronic cash ledger. If, such refund-
claim is rejected fully or partially the amount debited to the extent of
rejection by concerning officer in form GST PMT-03.
 If any discrepancy found in the said ledger is to be communicated to the
concerning officer through common portal in form GST PMT-04.

Assessment under GST

Different GST assessments are given below:

Self-assessment: Every registered person shall self assess GST payable and
furnish a return for each tax-period.

Provisional-assessment: The registered person can avail the facility of

provisional assessment in the 2 cases given below:

1. If a taxable person is unable to determine the value of goods/services.

2. If the taxable person is unable to determine the rate of GST applicable.

Procedure for such assessment

 Application for provisional assessment in form GST ASMT-01 on
common portal, If application entertain the concerned officer the issue
notice in form GST ASMT-02 to furnish documents in support of such
request, The applicant shall file reply in form GST ASMT-03 or may
appear in person if required.
 The proper officer has to issue an order within 90 days of receipt of
application in form GST ASMT-04 allowing the payment of tax on
provisional basis.
 The registered person shall execute the bond in form GST ASMT-05
along with a scrutiny in form of bank guarantee to the proper officer.
 The proper officer shall issue a notice for the final assessment of the
provisional assessment in form GST ASMT-06 and order of final
assessment, the liability of tax-payment or refund is passed by higher
authorities in form GST ASMT-07 as order of final assessment.
 The registered person shall liable to pay interest on GST regarding the
delay of payment of due dates.
 The applicant may file application for the release of security after the
order of final assessment in form GST ASMT-08 and such security may
be released by the authorities in form GST ASMT-09.

Scrutiny of return
If return furnished by the person is selected for scrutiny, the authorized
officer may verify the particulars of such return. In case any discrepancy
found. He shall issue a notice to the said person in form GST ASMT-10, the
registered person can submit his explanation within 30 days after such
notice. If, registered person accept the discrepancy he may pay the tax or
interest as mentioned the cause of such discrepancy. If, such person
submitted the explanation and such explanation is found acceptable, the
authorized officer can in Form GST ASMT-12. If, no satisfactory explanation
is submitted within a due time the authorized officer may initiate
appropriate action to recover and proceed the determination of tax and
other dues.
Best judgment assessments for the non-filers of the return
Where the registered person fails to file a return, the authorized person
may proceed to access the tax liability of such person to the best of his
judgment which is taken on account of gathered relevant material and
such judgment will issue within a period of 5 years from the due date of
furnishing of annual return.

The unregistered person or the person whose registration is cancelled and

tax liability is still standing may also fall under this category. The
opportunity of getting heard will be provided to such assesses.

Summary Assessment
The summary assessment is permitted only to protect the interest of
revenue. It is passed by authorized officer with the approval of
additional/joint commissioner. The summary assessment order will be
issued in Form GST ASMT-16. It can be withdrawn on application made by
the taxable person and reasons found satisfactory. Suo Motu withdrawal of
summary assessment is also allowed.

The Rates and Reasons under which interest is applicable

1. When person fails to pay the tax within the prescribed time either
fully or partially. The interest will be charged at the rate 18% for the
delayed period.
2. When a taxable person makes undue and excess claim of input tax
credit or makes undue reduction in output tax. The interest will be
charged at the rate 24% for the amount so claimed.
3. When refund is withheld due to the result an appeal or legal
proceedings, person becomes entitled to receive interest at the rate
6% for such period.
4. When after the refund order, refund is not initiated within 60 days
the person get entitled to receive interest at rate 6%.
 5. When any claim of refund arises due to appellate order and same is
not refunded within 60 days. The person is entitled to receive
interest at rate of 9%.

When person gets liable for penalty

Case 1- Normal cases

Case 2- Fraud cases (i.e. a deliberate attempt to evade the tax)

1. When tax along with interest paid before issue of notice. For case 1,
no penalty. For case 2, 15% of such tax is induced as penalty.
2. When tax paid along with interest within 30 days of issue of notice.
No penalty in post in case 1. Penalty will be charged at rate 25% in
case 2.
3. Tax along with interest paid within 30 days after the order. In case 1,
Rs. 10,000 or 10% of the tax whichever is higher is imposed as
penalty. In case 2, 50% of the tax is charged as penalty.
4. When tax paid along with interest after 30 days of an order. In case
1, Rs. 10,000 or 10% of the tax whichever is higher is imposed as
penalty. In case 2, 100% of the tax should be charged as penalty.

Time limit for issue of notice in connection of penalty

For normal cases, within 2 years and 9 months from the due date of filing
the return. The order can be issued within 3 years from the date of filing of
annual return.

For fraud cases, the time limit of issue of notice is within 4 years and 6
months from the due date of filing the annual return and orders for the
same can be issued within the period of 5 years from the date of filing the
annual return.

National anti- profiteering authority under GST

This authority is constituted by the government to regularize and control that
any reduction in rate of tax, the benefit of such reduction of input tax credit
should be passed on to the recipient.

National anti- profiteering authority shall be a 5 member committee having a

chairman who holds or held a post equivalent in rank to secretary to the
government of India. Other 4 are the technical members who are or have been
the commissioners of the state or central tax.

The committee is empowered to determine the methodology and procedure

for the implementation of its objective. It is the duty of the authority to
determine the reduction in rate of tax and benefit of such reduction is passed
on to the recipient. If, it is not done the authorities empowered to in position
of penalty or cancellation of registration or charge interest @ rate 18% on such
fault or it can reduce the price by its order. The application can be made to the
authorities and investigation is done to safeguard the interest of recipients.
The description of goods or services is investigated on the basis of allegations
made.

Any order passed by the authority shall be immediately compiled by the

registered person failing which action shall be initiated by the authority. The
authority can direct any authority CGST, SGST, UTGST to monitor the
implementation of the order passed by it.

E-Way Bill under GST

A Way bill is a receipt issued by the carrier containing the details related to the
shipment of the consignment. This mechanism provides a digital interface to
the person causing the movement of goods uploaded with relevant
information. From 1 June,2018 E-Way bill rules will apply uniformly to all
states.

E-Way bill contains 2 parts. Part A is to furnished by the person when value of
consignment exceeds Rs. 50,000. Part B contains the details of transporting
goods by a registered person. It can be generated on the GST common portal.
In case of multiple consignments carried in a same vehicle the consolidated E-
Way bill indicating the serial no. of Each-Way Bill is generated. The E-way bill
can be cancelled within the period of 24 hours if goods are not transported.

After generation its validity is 1 day when distance is upto 100 km and
additional 1 day for every additional 100 km or part thereof.

E-Commerce under GST

E-Commerce is a way of supply of goods or services or both, including digital
products over digital or electronic networks. E-Commerce operator means nay
person who owns, operates or manages digital or electronic facility or platform
form E-Commerce.

Radio taxi service, hotel booking through website, house-keeping service

through website are covered as service provided through E-Commerce
operator. The tax collection at source by such operators for the services so
provided is 1% of the net value of taxable supplies.

The aggregate turnover if falls under the provision of threshold limit of GST
registration, the registration is mandatory for E-Commerce operator.

Tax deducted at Source under GST

TDS is a system initially introduced for income tax purposes in which the
person may deduct the tax at source from the amount payable at recipients,
recipient gets credit for the same at the time of assessment under GST, central
government or state government or any of its establishment or department or
local authority or government agency or such persons which are notified by
government by GST council for this purpose can deduct TDS.

The TDS will be deducted when total value of such goods or supply under any
contact exceeds Rs. 2,50,000 @ rate 1%, If individual supply is less that 2.5 lac
but contract value is more than 2.5 lac TDS will be deducted.

Audit under GST

Audit means examination of records or returns or documents furnished by the
registered persons on basis of its claim towards ITC and from its book of
accounts correctness of documents furnished is verified.

If the turnover of registered person exceeds 2 crore, it is mandatory to get its

books audited by chartered account/ cost accountant and copy of such audit is
submitted to GST department compiled with reconciliation statement duly
certified in Form GSTR-9c.

The second type of audit can be conducted by any authorized officer which is
based on periodic frequency as prescribed by law.

The special type of audit is directed to the person may be conducted by

CA/cost accountant during the stage of any enquiry, investigation, scrutiny or
any other proceeding depending upon the complexity of the case. The
opportunity of being heard in respect of any material gathered through special
audit is always provided to the person if such audit deduct any short payment
or non-payment of taxes or refund or any wrong credit of ITC. The process of
demand or recovery can be initiated by the authorities against such registered
person.