B.COM 6th Sem.

Subject: GST & Indirect Tax [Core - 14]

Unit – 3 Syllabus: Registration, Returns and Assessment

Registration – Persons liable for Registration, Persons not liable for Registration, Types:
Compulsory Registration, Voluntary Registration, Deemed Registration. Procedure for
Registration, Special Provisions for Casual Taxable Persons and Non-Resident Taxable
Persons. Classification of Goods & Services – HSN, SAC, Tax Invoice and other such
Instruments in GST – Debit Note, Credit Note, Vouchers, Invoice; Accounts and Records.
Return – Process of Return Filing, Furnishing details of outward supplies and inward supplies,
First Return, Claim of ITC, Matching Reversal and Reclaim of ITC, Annual Return and Final
Return. Refund. Offences and Penalties; Assessment; Audit; Appeals and Revision.

REGISTRATION UNDER GST LAW

Registration is the most fundamental requirement for identification of taxpayers ensuring tax compliance in the
economy. Without registration, a person can neither collect tax from his customers nor claim any input tax
credit of tax paid by him.
Registration of any business entity under the GST Law implies obtaining a unique number from the concerned
tax authorities for the purpose of collecting tax on behalf of the government and to avail input tax credit for the
taxes on his inward supplies.

Requirement of Registration – Sec. 22 (1):

 In the GST Regime, businesses exclusively supplying goods and 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.

Note:

1. *CBIC vide Notification No. 10/2019-Central Tax dated 7 th March, 2019 has notified the increase in
threshold turnover from Rs 20 lakhs to Rs 40 lakhs. The notification came into effect from 1st April 2019.

2. The threshold for registration of service providers would continue to be Rs. 20 lakhs and in case of Special
Category States, it is Rs. 10 lakhs.

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Special Category States under GST: As per Explanation (3) of Section 22 of CGST act 2017, ” special
category States ” shall mean the States as specified in sub-clause (g) of clause (4) of article 279A of the
Constitution. List of which is as follows: –
1) Arunachal Pradesh
2) Assam
3) Jammu & Kashmir
4) Manipur
5) Meghalaya
6) Mizoram
7) Nagaland
8) Sikkim
9) Tripura
10) Himachal Pradesh
11) Uttarakhand

 For certain businesses, registration under GST is mandatory. 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.

Advantages of registration:
The following are advantages to a taxpayer who obtain registration under GST:
(a) He is legally recognized as supplier of goods or services or both.
(b) He is legally authorized to collect taxes from his customers and pass on the credit of the taxes paid on
the goods or services supplied to the purchasers/recipients.
(c) He can claim Input Tax Credit of taxes paid and can utilize the same for payment of taxes due on supply
of goods or services.
(d) Seamless flow of Input Tax Credit from suppliers to recipients at the national level.
(e) Registered person is eligible to apply for Government bids or contracts or assignments.
(f) Registered person under GST can easily gain trust from customers.
Exception of One Registration for One State:
(a) Multiple registrations permitted for separate business vertical.
(b) One as an input service distributor and other for outward supply.
Advantages of voluntary registration under GST:
(a) Legally recognized as supplier of goods or services and this helps in attracting more customers.
(b) Provide input tax credit to customers. As they can issue taxable invoices, they can collect GST. Their
customers can take input credit on their purchases.
(c) They will be more competitive than other small business as buying from them will ensure input credit.
(d) Voluntarily registered persons can take input credit on their own purchases and input services like legal
fees, consultation fees etc.
(e) They can make inter-state sales without many restrictions.
Aggregate turnover in a Financial Year [Sec. 2(6) of CGST]:
Aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a
person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-state supplies of
person having the same PAN, to be computed on all India basis but excludes Central Tax, State Tax, Union
Territory Tax, integrated tax and Cess.
Aggregate Turnover includes Aggregate Turnover excludes
The value of exported goods/services. Inward supplies on which the recipient is required to
pay tax under Reverse Charge Mechanism (RCM).
Exempted goods/services or both which attracts nil Central tax (CGST), State tax (SGST), Union
rate of tax or wholly exempt from tax and includes territory tax (UTGST) and Integrated tax (IGST).
non-taxable supply.
Inter-State supplies between distinct persons having Compensation Cess.
same PAN.
Supply on own account and on behalf of principal.

Persons Liable for Registration / Compulsory Registration: The following categories of persons shall be
required to be registered under GST:
i. Person making any inter-state taxable supply;
ii. Causal taxable persons making taxable supply;
iii. Person who are required to pay tax under reverse charge;
iv. Person who are required to pay tax under sec. 9(5) of CGST (i.e. Electronic Commerce Operator);
v. Non-resident taxable person making taxable supply;
vi. Persons who are required to deduct tax under Sec 51, whether or not separately registered under this Act;
vii. Persons who make taxable supply of goods or services or both on behalf of other taxable person whether
as an agent or otherwise;
viii. Input Service Distributor, whether or not separately registered under CGST;
ix. Persons who supply of goods or services or both, other than supplies specified under Sec 9(5), through
such electronic commerce operator who is required to collect tax at source under Sec 52;
x. Every electronic commerce operator;
xi. Every person supplying online information and database access or retrieval services from place outside
India to a person in India, other than a registered person; and
xii. Such other person or class of persons as may be notified by the Govt. on the recommendation of the
Council.

Person not liable for Registration:

(a) Sec 23(1)(a): Any person engaged exclusively in the business of supplying of goods or services or both they
are not liable to tax or wholly exempt from tax under CGST or IGST.
(b) Sec 23(1)(b): An agriculturist, to the extent of supply of produce out of cultivation of land.
(c) Sec. 23(2): The Government may, on the recommendation of the GST Council.
Situations Regarding Registration:

Types of Registration:

1) Compulsory Registration: Discussed above.

2) Voluntary Registration: The business does not have the liability to register under GST, however, can
apply for GST Registration. This usually is when the businesses are willing to take advantage of the Input
Tax Credit facility.
Advantages of Voluntary Registration: Discussed Above.
3) Registration under Composition Scheme:
 Composition scheme is a voluntary and optional scheme for registering under GST.
 Under the composition scheme, the compliance is simpler and lesser returns are to be filed. The tax is to
be filed at a fixed rate.
 If the business turnover is in between INR 40 Lakhs and 1.5 Crores, they can opt for GST Registration
under Composition Scheme.
4) Deemed Registration:
(i) The grant of registration or the Unique Identity Number under the State Goods and Services Tax Act or
the Union Territory Goods and Services Tax Act shall be deemed to be a grant of registration or the
Unique Identity Number under this Act subject to the condition that the application for registration or
the Unique Identity Number has not been rejected under this Act within the time specified in sub-
section
(10) of section 25.
If the proper officer fails to take any action,
 within a period of 3 working days from the date of submission of the application; or
 within a period of seven working days from the date of the receipt of the clarification, information
or documents furnished by the applicant,
the application for grant of registration shall be deemed to have been approved.
(ii) Notwithstanding anything contained in sub-section (10) of section 25, any rejection of application for
registration or the Unique Identity Number under the State Goods and Services Tax Act or the Union
Territory Goods and Services Tax Act shall be deemed to be a rejection of application for registration
under this Act.
5) Suo Moto Registration:
(i) Where, pursuant to any survey, enquiry, inspection, search or any other proceedings under the Act, the
proper officer finds that a person liable to registration under the Act has failed to apply for such
registration, such officer may register the said person on a temporary basis and issue an order in FORM
GST REG- 12.
(ii) The registration granted under sub-rule (1) shall be effective from the date of order granting registration.
6) No Registration: In the case, when your business does not fall under the conditions for compulsory
registration you do not require GST Registration.

Documents Required for Registration:

1. PAN of the Applicant
2. Aadhaar card
3. Proof of business registration or Incorporation certificate
4. Identity and Address proof of Promoters/Director with Photographs
5. Address proof of the place of business
6. Bank Account statement/Cancelled cheque
7. Digital Signature
8. Letter of Authorization/Board Resolution for Authorized Signatory

Procedure for Registration:

Every person who is liable to be registered shall apply for registration within 30 days from the date on which he
becomes liable to registration.
1) Use your PAN, email ID and mobile number to fill out GST REG-01 and submit the same
2) Verify your mobile number and email ID with a one-time password after PAN verification
3) Store the application reference number [ARN] sent to your mobile number and email ID after verification is
complete
4) Put in your ARN number and attach supporting documents where required
5) Fill out the automatically generated GST REG-03 form in case additional information is required
6) After verification of all information submitted, a certificate of registration GST REG-06 will be issued to
you within 3 working.
Certificate of Registration: Certificate of registration shall be granted in Form GST REG-06.
Certification of registration contains a 15-digit Goods and Service Tax Identification Number
(GSTIN):
 Two characters for the State code
 Ten characters for the PAN
 Two characters for the entity code; and
 One checksum character

Amendments of Registration:

 Except for the changes in some core information in the registration application, a taxable person shall be
able to make amendments without requiring any specific approval from the tax authority.
 In case the change is for legal name of the business, or the State of place of business or additional place of
business, the taxable person will apply for amendment within 15 days of the event necessitating the change.
 The proper officer, then, will approve the amendment within next 15 days.
 For other changes like name of day to day functionaries, e-mail Ids, Mobile numbers etc. no approval of the
proper officer is required, and the amendment can be affected by the taxable person on his own on the
common portal.

Cancellation of Registration [Section 29 of the CGST Act, 2017]:

The following persons are allowed to cancel GST registration:
1) The registered person himself
2) By a GST officer
3) The legal heir of the registered person

1) Cancellation by the registered person himself [Sec. 29(1)]:

Registered person under GST can himself/herself cancel their registration in any one of the following cases:
 Business has been discontinued.
 The business has been sold or transferred to some other party. That other party needs to register under
GST.
 There is any change in the constitution of the business (like Partnership firm now converted into Private
Limited company and so on).
 Turnover is not more than ` 20 lakh (` 10 lakh in the case of special category States except J&K).
2) Cancellation by a GST officer [Section 29(2)]:
GST registration of a person or business can be cancelled by a proper GST officer in one of the following cases:
 If the registered person has violated any of GST provisions or laws.
  A composition registered person has not filed tax returns for three consecutive quarters.
 A normal registered person who has not filed returns consecutively for six months.
 A voluntarily registered person who has not commenced any business in the six months from the
registration date.
 If the registration is obtained by fraud methods, the proper officer has the right to cancel the registration
with retrospective effect.
(3) The legal heir of the registered person:
The legal heir of the registered person can request cancellation through an application, in case of death of the
person.

Revocation of Cancellation of Registration [Section 30 of the CGST Act, 2017]:

(a) As per section 30(1) of the CGST Act, 2017, subject to such conditions as may be prescribed, any
registered person, whose registration is cancelled by the proper officer on his own motion, may apply to
such officer for revocation of cancellation of the registration in the prescribed manner within 30 days from
the date of service of the cancellation order.
(b) As per section 30(2) of the CGST Act, 2017, the proper officer may, in such manner and within such period
as may be prescribed, by order, either revoke cancellation of the registration or reject the application:
Provided that the application for revocation of cancellation of registration shall not be rejected unless the
applicant has been given an opportunity of being heard.
(c) As per Section 30(3) of the CGST Act, 2017, the revocation of cancellation of registration under the State
Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as the case may be, shall
be deemed to be a revocation of cancellation of registration under this Act.

Penalty for Non-Registration:

 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.

Special Provisions relating to Casual Taxable Person and Non-Resident Taxable Person: Refer 5.6 in Page
no. 64 of your book.

CLASSIFICATION OF GOODS AND SERVICES

The term “Classification” is defined as systematic arrangement in groups or categories according to established
criteria. The primary intention of classifying them is to determine whether or not the same would be
encumbered by the levy of these taxes and if so, under which category the tax liability would arise.

HSN:
 HSN stands for ‘Harmonized System Nomenclature.’
 HSN classifies more than 5000 products worldwide. Nearly 98% of international trade stock is classified in
terms of HSN.
 The WCO (World Customs Organization) developed it as a multipurpose international product
nomenclature that first came into effect in 1988 with the vision of facilitating the classification of goods all
over the World in a systematic manner.
 HSN is in use worldwide, with 200+ countries participating.
 HSN is assigned to goods by organizing them in a hierarchical manner.
 Depending upon the turnover or nature of sale, a business might be required to quote a 2-digit HSN, a 4-
digit HSN or an 8-digit HSN (mandatory for exports):
(i) A business with turnover of less than Rs. 1.5 crores is not required to quote HSN in the invoice.
(ii) A business with turnover between Rs. 1.5 crores and Rs. 5 crores has to quote a 2-digit HSN.
(iii) A business with turnover of Rs. 5 crores or more has to quote a 4-digit HSN.
(iv) For all exports, an 8-digit HSN is required to be quoted in the invoice.
(v) Small business under the ‘Composition Scheme’ are not required to quote HSN codes in the invoices.
(vi) A taxpayer under GST is required to mention the HSN codes of goods he intends to deal with at the
time of registration.

Purpose of adopting HSN in India:

(i) HSN brings India at par with other countries in respect of International trade practices and makes the GST
globally acceptable.
(ii) It has helped in reducing efforts and costs related to complex procedures of International trade.
(iii) It is used to determine the quantum of products exported or imported.

Classification of HSN:
The HSN structure contains 21 sections, with 99 Chapters, about 1,244 headings, and 5,224 subheadings.

 Each Section is divided into Chapters. Each Chapter is divided into Headings. Each Heading is divided into
Sub Headings.
 Sections and Chapters are arranged either in order of a product’s degree of manufacture or according to its
technological complexity.
 Section describe broad categories of goods. E.g. – Section XI deals with ‘Textile and Textile Articles’ and
contains Chapters 50 to 63.
 Chapters represents a particular class of goods. E.g. – Chapter 62 deals with the Articles of apparel and
clothing accessories for men and women.
 Headings and subheadings describe products in detail. E.g. - Chapter 62, heading 13 covers all kinds of
handkerchiefs, whereas heading 14 covers scarves and shawls of different types.
 Example – HSN code for Handkerchiefs made of Textile matters 62.13.90
 First two digits (62) represent the chapter number for Articles of apparel and clothing accessories, not
knitted or crocheted.
 Next two digits (13) represent the heading number for handkerchiefs.
 Finally, last two digits (90) is the product code for handkerchiefs made of other textile materials.
 India has 2 more digits for a deeper classification.
 If the handkerchiefs are made from a man-made fibre, then the HSN code is 62.13.90.10.
  If the handkerchiefs are made from silk or waste from silk, then the HSN code is 62.13.90.90.

General Rules for Interpretation of HSN:

Rule 1: Classification to be determined per the “Headings”

 Titles of sections, chapters, and sub-chapters are provided for ease of reference only.
 For legal purposes, refer to headings and sub-headings to drive classification.

Rule 2a: Classification of incomplete or un-assembled goods

 If the goods are incomplete/unfinished and have the characteristics of the finished product, classification is
the same as that of the finished product (if the classification is known).
 The heading shall also include removed/unassembled or disassembled parts (i.e., SKD/CKD).

Rule 2b: Classification of Mixture or Combinations

 Any reference to a material or substance includes a reference to mixtures or combinations of that material
or substance with other materials or substances.
 The classification of goods consisting of more than one material or substance shall take place as per Rule 3.

Rule 3a: Prefer the Specific entry over the general entry
 Choosing a specific heading is preferred over a general heading.
 For example, 85.10 is the classification for "shavers, hair clippers and hair removing appliances, with self-
contained electric motor". This is a more specific classification for a handheld electric razor than either:
 67: "tools for working in the hand, pneumatic, hydraulic or with self-contained electric or non-electric
motor," or
 09: "electro-mechanical domestic appliances with self-contained electric motors, other than vacuum
cleaners".

Rule 3b: Essential character test for Mixtures or Composite Goods

 Mixtures/composite goods should be classified per the material or substance that gives them their essential
character.
 For example, a grooming kit consisting of electric hair clippers (85.10), a comb (96.15), and a brush
(96.03) inside a leather case (45.02), should be classified under the electric hair clippers heading (85.10).

Rule 3c: If both are specific – latter the better

 If two headings are equally suited to the item, choose the heading that appears last in numerical order.

Rule 4: Akin goods

 If goods cannot be classified per the above rules, they are to be classified according to the goods to which
they are most akin.

Rule 5: Classification of packing containers and packing materials

 Containers specifically designed for the article and suitable for long-term use will be classified along with
that article, if such articles are normally sold along with such cases. For example, a camera case would fall
under cameras.
 Packing materials and containers are also to be classified with the related goods except when the packing is
for repetitive use.
Rule 6: Goods are comparable at the same level only
 For legal purposes, the classification of goods in the sub-headings of a heading shall be determined
according to the terms of those sub headings and any related sub headings Notes and, mutatis mutandis, to
the above rules, on the understanding that only sub headings at the same level are comparable.

List of HSN Sections: Refer page no. 146.

SAC:

 Like goods, services are also classified uniformly for recognition, measurement and taxation.
 Codes for services are called Services Accounting Code or SAC.
 These codes are a combination of numbers to identify the service type and the rate at which it is to be taxed.
 Example – Legal documentation and certification services concerning patents, copyrights and other
intellectual property rights — 998213.
 The first two digits are same for all services i.e. 99
 The next two digits (82) represent the major nature of service, in this case, legal services
 The last two digits (13) represent detailed nature of service, i.e., legal documentation for patents etc.

Guidelines for SAC:

(i) A business with turnover of less than Rs. 1.5 crores does not require SAC.
(ii) A business with turnover between Rs. 1.5 crores and Rs. 5 crores has to use a 2-digit SAC.
(iii) A business with turnover of Rs. 5 crores or more will be required to use a 4-digit SAC.
(iv) In case of imports and exports the SAC codes will be 8-digits.
(v) Small business under the ‘Composition Scheme’ are not required to quote SAC in the invoices.
(vi) A taxpayer under GST is required to mention the SAC codes of services he intends to deal with at the
time of registration.

DOCUMENTS UNDER GST

DEBIT NOTE:

Debit note in GST is defined under section 34(3) of the CGST act 2017. It is a document that a supplier of
goods or services issues to the recipient where –

 a tax invoice has been issued for any supply of goods or services or both and:
 Taxable value or tax charged in the invoice is less than the taxable value or tax payable in respect of
such supply.
 Goods or services supplied are found to be more than the quantity committed under original invoice.

Cases when Debit note is to be issued by supplier:

A. Original tax invoice has been issued and taxable value in the invoice is less than actual taxable
value.
B. Original tax invoice has been issued and tax charged in the invoice is less than actual tax to be paid.

Note Debit note will include a supplementary invoice.

 Example:
Kapoor Pvt. Ltd supplied goods worth Rs. 20,000 units @ Rs. 20 per unit to M/s Sharma Traders on April
1, 2019. The GST charged on such a supply is 5% which is Rs. 20,000. However, on selling the goods,
Kapoor Pvt. Ltd realizes that the price charged for each unit was Rs 22 and not Rs. 20. As is evident, the
amount charged in the tax invoice was less than the amount of goods delivered. Thus, Kapoor Pvt. Ltd
issued a debit note in favor of M/s Sharma Ltd.

Such a debit note would notify M/s Sharma traders that a debit needs to be made in their own account. In
other words, debit note is an intimation to M/s Sharma Traders that it still owes Kapoor Pvt. Ltd an amount
equal to Rs. 40,000 (Rs. 2 x 20,000) and GST of Rs. 2000 under original invoice.

 Details of debit notes issued should be furnished in Form GSTR-1 for the month in which the debit note is
issued.

 These details will be made available to the recipient in Form GSTR-2A, post which the recipient has to
accept the details and submit in Form GSTR-2.

CREDIT NOTE:

Credit note in GST is defined under section 34(1) of the CGST act 2017. It is a document issued by the supplier
of goods or services to the recipient where –

 a tax invoice has been issued for any supply of goods or services or both and:
 Taxable value or tax charged in the invoice exceeds the taxable value or tax payable in respect of such
supply
 Goods supplied are returned by the recipient
 Goods or services supplied are found to be deficient

Cases when Credit note is to be issued by supplier:

A. Original tax invoice has been issued and taxable value in the invoice exceeds actual taxable value.

B. Original tax invoice has been issued and tax charged in the invoice exceeds actual tax to be paid.

C. Recipient returns the goods to the supplier

D. Services are found to be deficient

Note Credit note will include a supplementary invoice.

 Example:
Kapoor Pvt. Ltd supplied goods worth Rs. 1,00,000 to M/s Sharma Traders on April 1, 2019. A tax invoice
of an equivalent amount was issued to M/s Sharma Traders on the same day. M/s Sharma traders made
payment against the invoice. However, M/s Sharma later realized that certain goods were of poor quality
and hence decided to return the goods. Goods worth Rs. 20,000 were returned to Kapoor Pvt. Ltd on April
20, 2019. Since, goods were returned, Kapoor Pvt. Ltd needs to raise a credit note in favor of M/s Sharma
Ltd.
 Such a credit note would notify M/s Sharma traders that a credit needs to be made in their account of an
amount equal to the goods returned by them. This document is a proof that M/s Sharma Traders should
reduce the amount it owes to Kapoor Pvt. Ltd Rs. 20,000 under the terms of original invoice.

 Details of credit notes issued should be furnished in Form GSTR-1 for the month in which the credit note is
issued.

 These details will be made available to the recipient in Form GSTR-2A, post which the recipient has to
accept the details and submit in Form GSTR-2.

Contents of a Debit Note or Credit Note: There is no prescribed format to prepare a Debit Note or Credit
Note. However, the debit note/ credit note shall contain the following particulars:

1) The word “Debit Note” or “Credit Note” to be indicated clearly, as the case may be.
2) Name, address, and GSTIN of the supplier.
3) Nature of the document.
4) A consecutive serial number containing only alphabets and/or numerals, unique for a financial year.
5) Date of issue of the document.
6) Name, address and GSTIN/ Unique ID Number, 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) The taxable value of goods or services, rate of tax and the amount of the tax credited or, as the case may be,
debited to the recipient.
10) Signature or digital signature of the supplier or his authorized representative.

VOUCHERS UNDER GST:

 The general definition of Voucher is “a small printed piece of paper that entitles the holder to a discount or
that may be exchanged for goods or services”.
 Examples of vouchers are coupon, token, ticket, license, permit, pass.
 Section 2(118) of the CGST Act, 2017, defines the term ‘Voucher’ as “an instrument where there is an
obligation to accept it as consideration or part consideration for a supply of goods or services or both and
where the goods or services or both to be supplied or the identities of their potential suppliers are either
indicated on the instrument itself or in related documentation, including the terms and conditions of use of
such instrument”.
 ‘Voucher’, for the purposes of GST, necessarily means that instrument which should be accepted as
consideration (wholly or partly) for a supply.
 Therefore, a voucher is an asset for the recipient, and without a recipient, a ‘voucher’ would lose its meaning.
 Time of supply in case of vouchers:
(a) the date of issue of voucher, if the supply is identifiable at that point; or
(b) the date of redemption of voucher, in all other cases.
Receipt Voucher:
 A receipt voucher is required to be issued on the receipt of advance payment in respect of the supply of
good or services or both.
 This voucher is the proof that payment has been received.
 The format of Receipt Voucher has been provided by the CGST Rules, 2017:
(i) Name, address, and GSTIN of the supplier
(ii) A consecutive alphanumeric serial number along with special characters not exceeding 16 characters
which is unique for a financial year.
(iii) Date of its issue
(iv) Name, address and GSTIN or Unique Identity Number, if registered, of the recipient
(v) Description of goods or services
(vi) Amount of advance taken
(vii) Rate of tax (central tax, State tax, integrated tax, Union territory tax or cess)
(viii) Amount of tax charged in respect of taxable goods or services (central tax, State tax, integrated tax,
Union territory tax or cess)
(ix) Place of supply along with the name of State and its code, in case of a supply in the course of inter-
State trade or commerce
(x) Whether the tax is payable on reverse charge basis
(xi) Signature or digital signature of the supplier or his authorised representative.

Refund Voucher:
 Refund voucher is issued when no subsequent supply has been made against the receipt voucher received as
an advance.
 Following details are to be mentioned in the Refund voucher as per the GST rules:
(i) Name, address, and GSTIN of the seller of goods or service provider.
(ii) A serial number not exceeding 16 characters, which is unique for the particular financial year.
(iii) Date of issue of refund voucher.
(iv) Name, address and GSTIN or UIN of the receiver of goods/service if registered under GST.
(v) Number and date of issue of the receipt voucher.
(vi) Description of the goods or services sold for which refund is made.
(vii) The amount of refund.
(viii) The rate of tax under CGST, SGST/UTGST, IGST or cess.
(ix) The amount of tax paid under CGST, SGST/UTGST, IGST or cess in respect of goods/services for
which refund is made.
(x) Tax is paid on reverse charge basis or in the normal course.
(xi) Signature/Digital signature of the supplier or his authorized representative.

Payment Voucher:
 A recipient liable to pay under Reverse Charge is required to issue a payment voucher at the time of making
payment to the supplier.
 Following details have to be mentioned in the payment voucher as per GST rules:
(i) Name, address and GSTIN (if registered) of the supplier.
 (ii) A consecutive serial number not exceeding 16 characters of any combination which unique for the
financial year.
(iii) Date of issue of payment voucher.
(iv) Name, address, and GSTIN of the recipient.
(v) Description of the goods and service on which tax is paid on reverse charge basis.
(vi) Amount paid to the supplier.
(vii) The rate and amount of tax charged under different heads CGST, SGST/UTGST or IGST and cess.
(viii) Place of supply if the transaction is interstate along with the state name and code.
(ix) Signature or Digital signature of the supplier or the authorized representative of the supplier.

INVOICES UNDER GST:

 An invoice is a commercial instrument issued by a seller to a buyer.
 It identifies both the trading parties, and lists, describes, and quantifies the items sold, shows the date of
shipment and mode of transport, prices and discounts, if any, and the delivery and payment terms.
 In certain cases, (especially when it is signed by the seller or seller’s agent), an invoice serves as a demand
for payment and becomes a document of title when paid in full.
 Under the GST regime, an “invoice” or “tax invoice” means the tax invoice referred to in section 31 of the
CGST Act, 2017.
 If you are a GST registered business, you need to provide GST-compliant invoices to your clients for sale
of good and/or services.
Importance under GST:
 It not only evidences the supply of goods or services, but is also an essential document for the recipient to
avail Input Tax Credit (ITC).
 GST is chargeable at the time of supply and Invoice is an important indicator of the time of supply.
 In general, the time of supply of goods or services is the date of issuance of an invoice or receipt of
payment, whichever is earlier.
Contents of Invoice:
 There is no format prescribed for an invoice.
 However, Invoice rules makes it mandatory for an invoice to have the following fields:
• Name, address and GSTIN of the supplier
• A consecutive serial number, in one or multiple series, containing alphabets or numerals or special
characters unique for a financial year
• Date of its issue
• Name, address and GSTIN or UIN, if registered, of the recipient
• Name and address of the unregistered recipient along with the name of State and its code, if the value of
taxable supply is Rs. 50,000 or more
• HSN code of goods or Accounting Code of Services
• Description of goods or services
• Quantity in case of goods and unit or Unique Quantity Code there of
 • Total value of supply of goods or services or both
• Taxable value of supply of goods or services or both, along with discount or abatement, if any
• Rate of tax (Central tax, State tax, Integrated tax, union territory tax or cess)
• Amount of tax charged in respect of taxable goods or services
• Place of supply along with the name of State
• Whether the tax is payable on reverse charge basis
• Signature or digital signature of the supplier or his authorized representative

Manner of Issuing Invoice:

The invoice shall be prepared in triplicate, in case of supply of goods, in the following manner:
(a) The original copy being marked as ORIGINAL FOR RECIPIENT
(b) The duplicate copy being marked as DUPLICATE FOR TRANSPORTER
(c) The triplicate copy being marked as TRIPLICATE FOR SUPPLIER
The invoice shall be prepared in duplicate, in case of supply of services, in the following manner:
(a) The original copy being marked as ORIGINAL FOR RECIPIENT
(b) The duplicate copy being marked as DUPLICATE FOR SUPPLIER

Revised Invoice:
 A registered person may, issue a revised invoice against the invoice already issued within 1 month from the
date of issuance of certificate of registration.
 This provision is necessary, as a person who becomes liable for registration has to apply for registration
within 30 days of becoming liable for registration.
 As there would be a time lag between the date of grant of certificate of registration and the effective date of
registration, for supplies made during this intervening period, the law enables the issuance of a revised
invoice, so that ITC can be availed by the recipient on such supplies.

Invoices under various situations:

Invoice by a person liable to pay tax under reverse charge:
 A registered person liable to pay tax under reverse charge has to issue an invoice in respect of goods or
service or both received by him.
 Such a registered person in respect of such supplies also has to issue a payment voucher at the time of
making payment to the supplier.
Sale on approval basis:
 Where the goods being sent or taken on approval for sale or return are removed before the supply takes
place, the invoice shall be issued before or at the time of supply or six months from the date of removal,
whichever is earlier.
Invoice in case of Continuous Supply:
 The due date of payment is ascertainable from the contract, the invoice shall be issued on or before the due
date of payment.
 The due date of payment is not ascertainable from the contract, the invoice shall be issued before or at the
time when the supplier of service receives the payment.
 The payment is linked to the completion of an event, the invoice shall be issued on or before the date of
completion of that event.

Other types of Invoices:

1) Bill of Supply
 A bill of supply is similar to a GST invoice except for that bill of supply does not contain any tax amount
as the seller cannot charge GST to the buyer.
 A bill of supply is issued in cases where tax cannot be charged:
• Registered person is selling exempted goods/services,
• Registered person has opted for composition scheme
2) Aggregate Invoice:
 If the value of multiple invoices is less than Rs. 200 and the buyer are unregistered, the seller can issue an
aggregate or bulk invoice for the multiple invoices on a daily basis.
 For example, you may have issued 3 invoices in a day of Rs.80, Rs.90 and Rs. 120. In such a case, you can
issue a single invoice, totalling to Rs290, to be called an aggregate invoice.

ACCOUNTS AND RECORDS UNDER GST:

Person Liable to Maintain Accounts:
 It is the responsibility of the following persons to maintain specified records-
• The owner
• Operator of warehouse or godown or any other place used for storage of goods
• Every transporter
 Every registered person whose turnover during a financial year exceeds the prescribed limit (2 crore) will
get his accounts audited by a chartered accountant or a cost accountant.
Records to be maintained:
 Every registered person must maintain records of:
• Production or manufacture of goods
• Inward and outward supply of goods or services or both
• Stock of goods
• Input tax credit availed
• Output tax payable and paid and
• Other particulars as may be prescribed
In addition, the rules also provide that the registered person shall keep and maintain records of
a) goods or services imported or exported; or
b) supplies attracting payment of tax on reverse charge
Additional Accounts/Records to be maintained:
 A separate account of advances received, paid and adjustments made
 A register of tax invoice, credit note, debit note, delivery challan issued or received during any tax period
 Names and complete addresses of suppliers from whom taxable goods or services , have been received
 Names and complete addresses of the persons to whom supplies have been made
 The complete addresses of the premises where the goods are stored including goods stored during transit
 Accounts showing the quantitative details of goods used in the provision of services.

Separate Accounts for Works Contracts:

 The names and addresses of the persons on whose behalf the works contract is executed;
 Description, value and quantity (wherever applicable) of goods or services received for the execution of
works contract;
 Description, value and quantity (wherever applicable) of goods or services utilized in the execution of
works contract;
 The details of payment received in respect of each works contract; and
 The names and addresses of suppliers from whom he has received goods or services.
Period of Preservation of Accounts:
 All accounts maintained together with all invoices, bills of supply, credit and debit notes, and delivery
challans relating to stocks, deliveries, inward supply and outward supply shall be preserved for seventy
two months (six years) from the due date of furnishing of annual return for the year.

FURNISHING DETAILS OF OUTWARD SUPPLIES

 Sec. 2(83) of the CGST Act, 2017 – “Outward Supply” in relation to a taxable person, means supply of
goods or services or both, whether by sale, transfer, barter, exchange, licence, rental, lease or disposal or
any other mode, made or agreed to be made by such person in the course or furtherance of business.
 Persons Liable to Furnish Details of Outward Supplies: Every registered person (including casual
registered person) is required to furnish the details of outward supplies of both goods and services
except the following:
 Input Service Distributor (ISD)
 Non-Resident Taxable Person (NRTP)
 Person paying tax under the Composition Scheme
 Persons deducting tax at source
 Person collecting tax at source i.e., e-commerce operator
 A supplier of Online Information and Database Access or Retrieval Services (OIDAR)
 Form and Manner of Furnishing Details of Outward Supplies:
 Every registered taxable person, other than an ISD, a NRTP and a person paying tax under the
provisions of section 10, shall furnish, electronically, in such form and manner as may be prescribed, the
details of outward supplies of goods or services effected, during a tax period on or before the 10th day of
the month succeeding the said tax period.
  Every registered person is required to furnish the details of outward supplies of goods or services or both
under section 37, shall furnish such details in FORM GSTR-1 electronically through the common portal,
either directly or through a Facilitation Centre notified by the Commissioner.
 The details of outward supplies of goods or services or both furnished in FORM GSTR-1 shall include
the following:
(a) Invoice wise details of all –
(i) inter-State and intra-State supplies made to the registered persons; and
(ii) inter-State supplies with invoice value more than Rs. 2.5 lakhs made to the unregistered persons.
(b) consolidated details of all –
(i) intra-State supplies made to unregistered persons for each rate of tax; and
(ii) State wise inter-State supplies with invoice value up to Rs. 2.5 lakhs made to unregistered
persons for each rate of tax.
 Every registered taxable person who has been communicated the details pertaining to inward supplies of
ISD under sub-section (4) of section 333, shall either accept or reject the details so communicated, on or
before the seventeenth day of the month succeeding the tax period and the details furnished by him
under subsection (1) shall stand amended accordingly.
 The details of outward supplies furnished by the supplier shall be made available electronically to the
concerned registered persons (recipients) in Part A of FORM GSTR-2A, in FORM GSTR-4A and in
FORM GSTR-6A through the common portal after the due date of filing of FORM GSTR-1.
 The details of inward supplies added, corrected or deleted by the recipient in his FORM GSTR-2 or
FORM GSTR-4 or FORM GSTR-6 shall be made available to the supplier electronically in FORM
GSTR-1A through the common portal.

FURNISHING DETAILS OF INWARD SUPPLIES

 Sec. 2(67) of the CGST Act, 2017 – “Inward Supply” in relation to a person, shall mean receipt of goods
or services or both whether by purchase, acquisition or any other means with or without consideration.
 Persons Liable to Furnish Details of Inward Supplies [Sec. 38(2)]:
 Input Service Distributor (ISD)
 Non-Resident Taxable Person (NRTP)
 Person paying tax under the Composition Scheme
 Persons deducting tax at source
 Person collecting tax at source i.e., e-commerce operator
 A supplier of Online Information and Database Access or Retrieval Services (OIDAR)
 Form and Manner of Furnishing Details of Inward Supplies:
 Every registered person, required to furnish the details of inward supplies of goods or services or both
received during a tax period under sub-section (2) of section 38 shall, on the basis of details contained in
Part A, Part B and Part C of FORM GSTR-2A, prepare such details as specified in sub-section (1) of the
said section and furnish the same in FORM GSTR-2 electronically through the common portal, either
directly or from a Facilitation Centre notified by the Commissioner.
  Every registered person shall furnish the details, if any, required under sub-section (5) of section 38
electronically in FORM GSTR-2.
 The registered person shall specify the inward supplies in respect of which he is not eligible, either
fully or partially, for input tax credit in FORM GSTR-2 where such eligibility can be determined at the
invoice level.
 The registered person shall declare the quantum of ineligible input tax credit on inward supplies
which is relatable to non-taxable supplies or for purposes other than business and cannot be determined
at the invoice level in FORM GSTR-2.
 The details of invoices furnished by a NRTP in his return in FORM GSTR-5 shall be made available to
the recipient of credit in Part A of FORM GSTR 2A electronically through the common portal.
 The details of invoices furnished by an ISD in his return in FORM GSTR-6 shall be made available to
the recipient of credit in Part B of FORM GSTR 2A electronically through the common portal.
 The details of TDS furnished by the deductor in FORM GSTR-7 shall be made available to the deductee
in Part C of FORM GSTR-2A electronically through the common portal.
 The details of TCS furnished by an e-commerce operator under section 52 in FORM GSTR-8 shall be
made available to the concerned person in Part C of FORM GSTR 2A electronically through the
common portal.
 The details of inward supplies of goods or services or both furnished in FORM GSTR-2 shall include the:
(a) invoice wise details of all inter-State and intra-State supplies received from registered persons or
unregistered persons;
(b) import of goods and services made; and
(c) debit and credit notes, if any, received from supplier.

RETURNS UNDER GST

CONCEPT OF RETURN:
 A return is a document containing details of income which a taxpayer is required to file with the tax
administrative authorities.
 This is used by tax authorities to calculate tax liability.
 Under GST, a registered dealer has to file GST returns that include:
• Purchases
• Sales
• Output GST (On sales)
• Input tax credit (GST paid on purchases)
 To file GST returns, GST compliant sales and purchase invoices are required.
 All the GST Registered person have to file monthly, quarterly and/or annual GST Returns based on the type
of business.
 First Return: Every registered person who has made outward supplies in the period between the date on
which he became liable to registration till the date on which registration has been granted shall
declare the same in the first return furnished by him after grant of registration.
 Monthly Return: Every registered person is mandatorily required to file monthly returns of GST.
 Quarterly Return: Only persons registered under the composition levy scheme are required to file
quarterly returns.
 Nil Return: Return is to be filed even if there are no sales or purchase transactions. In other words, NIL
return is required to be filed.
 Annual Return:
 GSTR-9 is an annual return to be filed by all registered taxpayers under GST irrespective of the
turnover of an entity.
 The return consists of details such as inward/outward supplies, taxes paid, refund claimed, demand
raised and ITC availed by the taxpayer.
 All registered taxpayers are required to file GSTR-9 except :
 Casual taxpayers
 Input Service Distributors
 Non-resident taxpayers
 Taxpayers deducting/collecting tax at source under Section 51 or Section 52
Note: Composition taxpayers have to file GSTR-9A, and E-commerce operators have to file GSTR-9B.
 Final Return:
 A taxable person whose GST registration is cancelled or surrendered has to file a return in Form
GSTR-10 called as Final Return.
 This return is intended to provide details of ITC involved in closing stock (including inputs and
capital goods) to be reversed/ paid by the taxpayer.
 GSTR 10 should be filed within three months of the date of cancellation or date of order of
cancellation, whichever is later.
 Form GSTR-10 is required to be filed by every taxpayer except:
 Persons paying tax u/s 10 (Composition Taxpayer)
 Input Service Distributors
 Non-resident taxpayers
 Taxpayers deducting/collecting tax at source under Section 51 or Section 52
Difference between Annual Return and Final Return:

LATE FILING OF RETURNS:

 Return filing is mandatory under GST.
 Even if there is no transaction, the taxpayer must file a Nil return.
 If GST Returns are not filed within time, the taxpayer will be liable to pay interest and a late fee.
 Interest Liability:
 Interest is 18% per annum and has to be calculated on the amount of outstanding tax to be paid.
 The time period will be from the next day of filing to the date of payment.
 Late Fees:
 Late fees is Rs. 100 per day per Act. So it is 100 under CGST & 100 under SGST i.e., total will be Rs.
200/day subject to maximum of Rs. 5,000.
 There is no late fee on IGST.

PROCEDURE OF FILING GST RETURNS:

 GST returns can be filed online using the software or apps provided by Goods and Service Tax Network
(GSTN) which will auto-populate the details on each GSTR forms.
 Listed below are the steps for filing GST returns online:
• Visit the GST portal (www.gst.gov.in).
• A 15-digit GST identification number will be issued based on your state code and PAN number.
• Upload invoices on the GST portal or the software. An invoice reference number will be issued against
each invoice.
• After that, outward return, inward return, and cumulative monthly return have to be filed online.
• If there are any errors, you have the option to correct it and refile the returns.
• File the outward supply returns in GSTR-1 form through the information section at the GST Common
Portal (GSTN) on or before 10th of the following month.
• Details of outward supplies furnished by the supplier will be made available in GSTR-2A to the recipient.
• Recipient has to verify, validate, and modify the details of outward supplies, and also file details of
credit or debit notes.
 • Recipient has to furnish the details of inward supplies of taxable goods and services in GSTR-2 form.
• The supplier can either accept or reject the modifications of the details of inward supplies made
available by the recipient in GSTR-1A.

TYPES OF GST RETURNS:

Return Form Particulars Frequency Due Date
GSTR -1 Details of outward supplies of taxable goods Monthly 11th of the next month
and/or services. with effect from October
2018.
GSTR-2 Details of inward supplies of taxable goods Monthly 15th of the next month
Suspended and/or services effected claiming the input
tax credit.
GSTR-3 Monthly return on the basis of finalization Monthly 20th of the next month
Suspended of details of outward supplies and inward
supplies along with the payment of tax.
GSTR-3B Simple Return in which summary of Monthly 20th of the next month
outward supplies along with Input Tax
Credit is declared and payment of tax is
effected by taxpayer
CMP-08 Return for a taxpayer registered under the Quarterly 18th of the month
composition levy. succeeding quarter
GSTR-5 Return for a Non-Resident foreign taxable Monthly 20th of the next month
person.
GSTR-6 Return for an Input Service Distributor. Monthly 13th of the next month
GSTR-7 Return for authorities deducting tax at source. Monthly 10th of the next month
GSTR-8 Details of supplies effected through e- Monthly 10th of the next month
commerce operator and the amount of tax
collected
GSTR-9 Annual Return for a Normal Taxpayer Annually 31st December of next
financial year
GSTR-9A Annual Return a taxpayer registered under Annually 31st December of next
the composition levy anytime during the financial year
year
GSTR-10 Final Return Once, when Within three months of
GST the date of cancellation
Registration is or date of cancellation
cancelled or order, whichever is later.
surrendered
GSTR-11 Details of inward supplies to be furnished by Monthly 28th of the month
a person having UIN and claiming a refund. following the month for
which statement is filed.
Other Types of GST Return:
GSTR-2A:
• It is the return containing details of all inward supplies of goods and services i.e. purchases made from
registered suppliers during a tax period.
• The data is auto-populated based on data filed by the suppliers in their GSTR-1 return.
• GSTR-2A is a read-only return and no action can be taken.
GSTR-9C:
• It is the reconciliation statement to be filed by all taxpayers registered under GST whose turnover exceeds
Rs.2 crores in a financial year.
• The registered person has to get their books of accounts audited by a Chartered/Cost Accountant.
• The statement of reconciliation is between these audited financial statements of the taxpayer and the annual
return GSTR-9 that has been filed.

CLAIM OF INPUT TAX CREDIT (ITC):

Conditions to be satisfied for claiming ITC:
 One must be a registered taxable person.
 Goods and services on which ITC has been claimed should have been used for business purpose only.
 ITC can be claimed on taxable and zero-rated supplies (exports).
 If the constitution of the taxable person changes due to sale, merger or transfer of business, the unused ITC
shall be transferred to the transferee.
 Supporting documents like Tax invoice, debit note etc. are required for claiming ITC.
 To claim ITC, the Input Tax must be paid through the electronic cash ledger or electronic credit ledger.
Also, all GST returns must have been filed.
 For goods received in lots, ITC can be claimed only after receiving the last lot.
 Time limit for claiming ITC:
Situation Details Day on which ITC can be claimed for
Stock, Semi-finished Goods and
Finished Goods
1. If a person is liable for registration, or applied The day from which he becomes liable to
for registration, or granted registration. pay tax.
2. If a person takes voluntary registration. The day of registration.
3. A registered taxable person who stops paying The day from which he becomes liable to
tax under composition levy scheme. pay tax normally.

MATCHING, REVERSAL AND RECLAIM OF INPUT TAX CREDIT (ITC):

 The process of ITC matching begins after the due dates of filing return.
 Matching – The details of every inward supply as per return filed by the recipient vide GSTR-2 is matched
with the outward taxable supplies’ return filed by the supplier vide GSTR-1.
 If the details match, the ITC claimed by the recipient is considered valid.
 Any excess ITC claimed is added back to the tax liability of the recipient in the following month.
 The concept of revised return is not provided in GST return rules.
 Accordingly, a business has to avail and re-avail the mismatched credit by way of credit notes, debit notes
etc.
Steps of Matching, Reversal and Reclaim of ITC:
1) Details are obtained through valid returns filed by both supplier and the recipient.
2) Matching and finding discrepancy
3) Communication of discrepancy to both supplier and recipient
4) Rectification of discrepancy
5) Reclaim where discrepancy is rectified within the given timeframe

Step 1: Details are obtained through valid returns filed by both supplier and the recipient:
 Details of outward supply are filed by the supplier in Form GSTR-1 and would be made available to the
recipient in Form GSTR-2A.
 Details of inward supply are filed by the recipient in Form GSTR-2 and would be made available to the
supplier in Form GSTR-1A.
 GSTR-3: Monthly return to be filed by a registered person giving details of inward and outward supply,
ITC claimed and taxed paid or payable.
Step 2: Matching and finding discrepancy:
 As per Rule 69 of CGST Rules, 2017, System will match inward supplies on following basis:
• GSTIN of Supplier
• GSTIN of recipient
• Invoice Number or Debit Note Number
• Invoice or Debit Note date
• Tax Amount
Step 3: Communication of discrepancy to both supplier and recipient:
Input Tax Credit (Section 42(2) & (3) read with Rule 71 & 72):
 If ITC claimed by recipient in respect of an inward supply reported in GSTR-2 is in excess of tax declared
by supplier in his GSTR-1 or supplier fails to disclose such invoice in his GSTR-1 then such invoice shall
be considered as mismatched.
 Communication about such discrepancy shall be made electronically to the recipient in form GST MIS-1
and to the supplier in form GST MIS-2 through common portal.
Reduction in Output tax liability (Section 43(3) & (4) read with Rule 75 & 76):
 Similarly if reduction made by supplier in output tax liability on account of credit note exceeds
corresponding reduction in ITC by recipient against such credit note or recipients fails to disclose such
credit note then such credit note shall be considered as mismatched.
 Communication about discrepancy shall be made electronically to the supplier in form GST MIS-1 and to
the recipient in form GST MIS-2. Duplication of credit note shall also available to supplier in form GST
MIS-1.
Step 4: Rectification of discrepancy:
Rectification of discrepancy in case of ITC Mismatch on inward supplies (Rule 71):
 Rectification by supplier: A supplier to whom communication is made about mismatch of ITC in form
GST MIS-2 may make suitable rectification with respect to such invoice in GSTR-1 of the month in which
such discrepancy is communicated.
Note: Rectification by a supplier means adding or correcting the details of an outward supply in his
valid return so as to match the details of corresponding inward supply declared by the recipient.

 Rectification by Recipient: In response to communication made in form GST MIS-1, recipient may carry
out suitable rectification in his statement of inward supplies for the month in which discrepancy is
communicated either through deleting such invoice or correcting it.
Note: Rectification by a recipient means deleting or correcting the details of an inward supply so as to
match the details of corresponding outward supply declared by the supplier.

Rectification of discrepancy in reduction of Output tax liability claimed through credit note (Rule 75):
 Rectification by Supplier: Supplier to whom mismatch is communicated through form GST MIS-1 may
make suitable rectification in his GSTR-1 of the month in which discrepancy is communicated.
 Rectification by Recipient: Recipient to whom mismatch is communicated through form GST MIS-2 may
make suitable rectification in his GSTR-2 of the month in which discrepancy is communicated.

Step 5: Reclaim where discrepancy is rectified within the given timeframe:

 Such re-claims can be made by the supplier only in case the supplier declares the details of invoice and/or
debit notes in his valid return pertaining to the period in which the omission or incorrect particulars were
noticed by the supplier, or the communication about the same was received.
 Any interest paid earlier on excess claim of ITC will be refunded by crediting the amount to the recipient’s
Electronic Cash Ledger.
 In case of duplication of ITC claim, no refund will be allowed as it is a contravention of the GST provisions.

REFUNDS UNDER GST

 Usually when the GST paid is more than the GST liability a situation of claiming GST refund arises.
 Timely refund mechanism is essential in tax administration, as it facilitates trade through release of blocked
funds for working capital, expansion and modernization of existing business.
 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.
 The GST law requires that every claim for refund is to be filed within 2 years from the relevant date.
SITUATIONS LEADING TO REFUND CLAIMS:
 Export of goods or services.
 Supplies to SEZs units and developers.
 Deemed exports.
 Refund of taxes on purchase made by UN or embassies etc.
 Refund arising on account of judgment, decree, order or direction of the Appellate Authority, Appellate
Tribunal or any court.
 Refund of accumulated Input Tax Credit on account of inverted duty structure.
 Finalisation of provisional assessment.
 Refund of pre-deposit.
 Excess payment due to mistake.
 Refunds to International tourists of GST paid on goods in India and carried abroad at the time of their
departure from India.
 Refund on account of issuance of refund vouchers for taxes paid on advances against which, goods or
services have not been supplied.
 Refund of CGST & SGST paid by treating the supply as intra-State supply which is subsequently held as
inter-State supply and vice versa.

REFUND PROCESS:
 Visit the GSTN portal and fill in the application form meant for claiming refund.
 You will receive an email or SMS which contains an acknowledgment number after the filing of
application is done electronically.
 The cash and return ledger will be adjusted and the “carry-forward input tax credit” will be reduced
automatically.
 The application for refund along with the documents submitted will be scrutinised by the authorities within
30-day period after you have filed the refund application.
 “Unjust enrichment” will be thoroughly scrutinised by the authorities and if the application does not
qualify, the refund will be transferred to a Consumer Welfare Fund (CWF).
 In case the refund claimed by the individual in excess of the predetermined amount of refund, a pre-audit
process will be conducted before the refund is sanctioned.
 The credit of the refund will be done electronically to the applicant’s account through NEFT, RTGS or ECS.
 Individuals are allowed to make their applications for refund at the end of each quarter.
 In case the amount of refund is below Rs.1000, no refund will be provided to the individual.

Unjust Enrichment: If a person unfairly gets a benefit by chance, mistake or for which one has not paid or
worked is known as Unjust Enrichment.
Amount of Refund Claim:
Refund Amount = (Turnover of inverted rated supply of goods and services X Net Input Tax Credit /
Adjusted Total Turnover) – Tax Payable on such inverted rated supply of goods and services
 The term ‘Inverted Tax Structure’ refers to a situation where the rate of tax on inputs purchased (i.e. GST
Rate paid on inputs received) is more than the rate of tax (i.e. GST Rate Payable on outward supplies) on
outward supplies.
 e.g. – Fabric Bags (Output) @ 5% and Non-Woven Fabric (Raw Materials) @12%.

Relevant Date:
 The time limit for claiming a refund is 2 years from relevant date.
 The relevant date is different in every case.
 Relevant Dates for some cases:

Situation Relevant Date

Excess Payment of GST Date of Payment
Export or Deemed exports of goods Date of despatch / passing the frontier (through land)
Services exported + supply of service has Date of receipt of Payment
been completed prior to receipt of
payment
Services exported + Payment received in Date of Issue of Invoice
advance prior to the issue of invoice

Unutilised Input Tax Credit End day of the financial year in which claim for refund arises

DOCUMENTS TO BE SUBMITTED FOR GST REFUND:

1) In case of Court Judgement:
 The Reference Number of the order and a Copy of the Order passed by the Proper Officer or an
Appellate Authority or Appellate Tribunal or Court resulting in such refund.
2) In case of Export:
 Refund due to Exports – A Statement containing Number and Date of Shipping Bills and of Relevant
Export Invoices.
 Refund due to Deemed Exports – A Statement containing Number and Date of Invoices along with
such other evidence as may be notified.
3) In case of FDI:
 A Statement containing the Number and Dates of Invoices and relevant Bank Realisation Certificates or
Foreign Inward Remittance Certificates.
4) In case of SEZ:
 Supply of Goods or Services to an SEZ – A Statement containing the Number and Date of Invoices
along with the evidence regarding the endorsement should be attached.
 Declaration – A declaration to the effect that the SEZ unit or the SEZ developer has not availed the
input tax credit of the tax paid by the supplier of goods or services should be attached.
5) In case of Excess Payment of Tax:
 Excess Payment – A Statement showing the details of the amount of claim on account of excess payment.
 Unutilised ITC in case of Inverted Tax – A Statement containing the Number and the Date of the
Invoices received and issued during a tax period should be attached.
 Wrong Classification – A Statement showing the details of transactions considered as intra-State
supply but which is subsequently held to be inter-State supply if the refund is due to the wrong
classification.
 GST Refund of Over Rs. 2 Lakhs:
 A declaration stating that the incidence of tax, interest or any other amount claimed as refund has not
been passed to any other person.
 In addition, the concerned individual shall also attach a Certificate in Annexure 2 of Form GST RFD-
01 issued by a Chartered Accountant or Cost Accountant.
 Finalisation of Provisional Assessment – The Reference Number of the Final Assessment Order and a
copy of the said Order.

ASSESSMENT UNDER GST

 Assessment means determination of tax liability under GST law.
 Assessment includes self-assessment, re-assessment, provisional assessment, summary assessment and best
judgment assessment.
 Normally, persons having GST registration file GST returns and pay GST every month based on self-
assessment of GST liability.
 However, the Government at all times has the rights to re-assess or perform an assessment by itself and
determine if there is a short payment of GST.
TYPES OF ASSESSMENT:
1) Self-Assessment:
 Every registered taxable person shall himself assess the taxes payable and furnish a return for each tax period.
 This means GST continues to promote self-assessment just like the Excise, VAT and Service Tax under
current tax regime.
2) Provisional Assessment:
 An assessee can request the officer for provisional assessment if he is:
 Unable to determine value due to difficulty in –
 Calculating the transaction value.
 Understanding whether certain receipts should be included or not.
 Unable to determine rate of tax due to difficulty in –
 Classifying the goods/services.
 Identifying whether any notification is applicable or not.
 Provisions of Provisional Assessment:
• Requests for provisional assessments will be given in writing.
• The proper officer can allow paying tax on provisional basis at a rate or on a value specified by him.
• Order will be passed within 90 days from date of request.
• The taxable person has to issue a bond with a security promising to pay the difference between
provisionally assessed tax and final assessed tax.
• Provisional assessments will be followed by final assessments.
• The proper officer can ask for information before final assessment.
 Time Limit for Final Assessments
• The final assessment will be done within 6 months of the provisional assessment.
• This can be extended for 6 months by the Joint/Additional Commissioner.
• However, the Commissioner can extend it for further 4 years as he seems fit.
 Interest on Additional Tax Payable and Refunds
• The tax payer will have to pay interest on any tax payable under provisional assessment which was not
paid within the due date.
• Interest period will be calculated from the day when tax was first due on the goods/services (and not the
date of provisional assessment) till the actual payment date.
• Rate of interest will be maximum 18%.
• If the tax as per final assessment is less than provisional assessment then the taxable person will get a
refund.
• He will also get interest on refund. Rate of interest will be maximum 6%.
3) Summary Assessment:
 A GST Officer on any evidence showing a tax liability of a person coming to his notice, may issue an
assessment order, if he believes that any delay may adversely affect the interest of revenue.
 In order to undertake assessment under section 64, the proper officer is required to obtain previous
permission of additional commissioner or joint commissioner. Such an assessment is called summary
assessment.
 The summary assessment order shall be issued in form GST ASMT-16.
 The taxable person may file an application in form ASMT-17, within 30 days from receipt of order or
commissioner may withdraw such order if he considers that such order is erroneous.

4) Scrutiny of Returns:
 The proper officer may scrutinize the return to verify its correctness but it is not mandatory.
 Scrutiny of returns is not a legal or judicial proceeding i.e., no order can be passed.
 The officer will ask for explanations on discrepancies noticed and inform the assessee in Form ASMT-10.
 Satisfactory Explanation: If the officer finds the explanation satisfactory then the taxable person will be
informed and no further action will be taken.
 Unsatisfactory Explanation:
 If the taxable person does not give a satisfactory explanation within 30 days of receipt of communication
Or
 He does not rectify the discrepancies within a reasonable time (not yet prescribed), the Officer may:
• Conduct audit of the tax payer u/s 65
• Start Special Audit procedure u/s 66
• Inspect and search the places of business of the tax payer
• Start Demand and Recovery provisions

5) Best Judgement Assessment:

a) Assessment of Non-Filers of Return [Sec. 62]:
 In this case, a registered person fails to furnish the required returns even after service of notice under
Section 46.
 The proper officer would proceed to assess the tax liability of the taxpayer to the best of his judgement
taking into account all the relevant material.
 Thereafter, he will issue an assessment order in Form ASMT-15 within a period of five years from the
date for furnishing of the annual return.
 If registered person furnish the valid return within 30 days of service of assessment order, then the
said assessment order deemed to be withdrawn (But liability to pay interest and late fees still be
applicable).
b) Assessment of Unregistered Person [Sec. 63]:
 In this case, a taxable person fails to obtain GST registration or whose registration has been cancelled
but who was liable to pay tax.
 The proper officer may proceed to assess the tax liability of such person to the best of his judgment
considering all the relevant material.
 Thereafter, he will issue an assessment order in Form ASMT-14 within a period of five years from the
due date of furnishing the annual return for the financial year for which tax not paid relates.
 However, no such assessment order shall be passed without giving the person an opportunity of being
heard.
 AUDIT UNDER GST
 Section 2(13) of CGST Act, 2017 defines the term Audit under GST.
 “Audit” means the examination of records, returns and other documents maintained or furnished by the
registered person under this Act or the rules made thereunder or under any other law for the time being in
force to verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit
availed, and to assess his compliance with the provisions of this Act or the rules made thereunder.

TYPES OF AUDIT:

Sl. Types Prescribed Authority / Condition

No. Performed By
1. Turnover based Audit Chartered Accountant/Cost Turnover Exceeds Rs. 2 Crores
Accountant
2. General/Normal Audit GST Commissioner or any On order passed by Commissioner,
other officer authorized by giving prior notice of 15 days.
him
3. Special Audit Chartered Accountant/ Cost On order passed by Deputy / Assistant
Accountant nominated by Commissioner with prior approval of
Commissioner Commissioner.

1) Turnover based Audit/First Audit/Annual Audit:

 A registered person with an aggregate turnover exceeding the prescribed limit of Rs 2 Crores needs to
get his accounts audited by a Chartered Accountant or a Cost Accountant.
 Furnishing of Documents under GST Audit:
i. Annual Return
ii. Copy of Audited Statement of Accounts
iii. Certified Reconciliation Statement in Form GSTR-9C.
 The aggregate turnover calculation must be PAN-based, which means that once the turnover under a PAN
is more than Rs. 2 crores, the assessee will be liable for GST audit for a financial year.
 Items included in the calculation of Aggregate Turnover:
 All taxable (inter-state and intra-state) supplies other than supplies on which reverse charge is applicable
 Supplies between separate business verticals.
 Goods supplied to/received from job worker on principal to principal basis.
 Value of all export/zero-rated supplies.
 Supplies of agents/ job worker on behalf of the principal.
 All exempt supplies.
 All taxes other than those covered under GST E.g.: Entertainment Tax.
 Items excluded in the calculation of Aggregate Turnover:
 Inward supplies on which tax is paid under reverse charge.
  All taxes and cess charged under Goods and Service Tax like CGST, SGST or IGST, Compensation Cess.
 Goods supplied to or received back from a Job Worker.
 Activities which are neither supply of goods nor service under schedule III of CGST Act.
 Auditor’s Qualification: As per Section 35 of GST Audit, audit can be performed by a Chartered
Accountant or a Cost Accountant.

2) GST Audit by the Tax Authorities Under Section 65:

 The Commissioner or an officer authorized by him undertakes the audit of the registered person under
section 65 of the CGST Act.
 The concerned officers may carry out this audit at the place of business of the registered person or his office.
 The tax authorities must intimate the registered taxable person of such an audit through a notice which
must be sent to him not less than 15 days before initiating such an audit in Form GST ADT-01.
 Such an audit must be completed within 3 months from the date of commencement of the audit.
 The officer can choose to extend the period of such an audit to a maximum of 6 months, if he believes that
the audit cannot be completed within 3 months. .
 He can do so after he records the reasons for such an extension in writing.
 Finally, the concerned officer will intimate the registered person about his final findings of the audit in
Form ADT-02.

3) Special GST Audit Under Section 66:

 Any officer not below the rank of Assistant Commissioner may demand an audit under Section 66 of the
CGST Act.
 This he can do if he believes during the time of scrutiny that:
• the value of supply is not accurately declared or
• input tax credit availed by the registered taxpayer exceeds the credit actually due.
 The assessing authority takes the approval of the commissioner to undertake such an audit.
 On such approval, the assessing authority guides the registered person to get the books audited by a
Chartered Accountant or a Cost Accountant.
 And the Assistant Commissioner himself suggests this accountant.
 The Chartered Accountant or Cost Accountant selected by the officer then submits the Report of Audit duly
signed and certified by him to the Assistant Commissioner.
 This is done within a period of 90 days.
 And this period can be extended by another 90 days if there is a delay.
 The Officer can demand such an audit even if the accounts of the registered person have been audited under
any other law.
 These laws may include The Company Act 2013 and the Income Tax Act 1961.
ACCOUNTS TO BE REVIEWED UNDER GST AUDIT:
 Purchase Register
 Sale Register
 Stock Register
 GST Expenses
 Statement congaing Input Tax Credit availed and utilized
 Output Tax Challan
 Statement of E-way Bill generated during the period
 Any changes made under GST during the period
Note: Every registered person must retain books of accounts for the period of 72 months from the due date of
furnishing annual returns.

OFFENCES AND PENALTIES UNDER GST

 An offence is a breach of a law or rule, i.e., an illegal act.
 Therefore, an offence under GST is a breach of the provisions of GST Act and GST Rules.
 The offences are liable for penalty and some offences are liable for prosecution.
 Offences under GST are further classified into cognizable and non-bailable offences as well as non-
cognizable and bailable offences.
 Cognizable Offences – A case in which specially empowered officer has the authority to arrest without
warrant. All offences where the evasion of tax exceeds Rs.5 crores shall be cognizable and non- bailable.
 Non-Cognizable Offences – A case in which specially empowered officer has no authority to arrest
without warrant. All offences where the evasion of tax is less than Rs.5 crores shall be non-cognizable and
bailable.

OFFENCES UNDER GST:

 21 offenses have been identified under the GST regime as follows:
 Fake/Wrong Invoices:
1. A supplier supplies goods or services without any proper invoice or has issued a false invoice.
2. He issues any invoice or bill without supplying goods/services as per the provisions of GST.
3. He uses the GSTIN of any other person instead of his own.
 Fraud:
4. He submits false information during registration under GST.
5. He submits fake financial records/documents or files fake returns to evade tax.
6. He gives wrong information or false information during assessment proceedings.
 Tax Evasion:
7. He fails to submit GST with the Government that was deducted by him, within a period of 3 months
from the date of such deduction.
8. If TDS is deducted in contravention of provisions of GST, he is still liable to pay the same within 3
months from the date of such deduction.
 9. He claims and obtains a refund of CGST or SGST by fraud.
10. He claims ITC without the actual receipt of goods or services.
11. He deliberately suppresses his sales to evade tax.
 Supply/Transport of Goods:
12. He transports or effects movement of goods without proper documentation.
13. He supplies goods that will be confiscated by law.
14. He destroys or tampers with, the goods that have been confiscated.
 Others:
15. He has not registered under GST although he is required to by law
16. He does not deduct TDS or deducts less amount where applicable.
17. He does not collect TCS or collects less amount where applicable.
18. He does not distribute credit properly or distribute against the provisions of law being an Input Service
Distributor.
19. He obstructs the officer in the performance of his duties.
20. He does not maintain proper books of accounts as required mandatorily by law.
21. He intentionally destroys any evidence.

Who is liable for Offences under GST?

 For any offence committed by a company, both the officer in charge (such as director, manager, secretary)
as well as the company will be held liable.
 For LLPs, HUFs, Trust, the Partner/Karta/Managing Trustee will be held liable respectively.
 For the 21 offences above, for fraud cases, penalty will be 100% (minimum Rs. 10,000).

PENALTIES UNDER GST:

 The word “penalty” is not specifically defined in GST and so it takes the meaning from various judicial
pronouncements and principles of jurisprudence.
 A penalty is a punishment imposed by law for committing an offence or failing to do something that was
the duty of a party to do.
 A penalty can be both corporal or pecuniary, civil or criminal.
 Both corporal (imprisonment) and pecuniary (monetary) penalties are applicable under GST.
 General Penalty – Any offence under GST for which penalty is not specifically mentioned will be liable to
a penalty extending up to Rs. 25,000.
 General Rules Regarding Penalty:
 Every taxable person, on whom the penalty is imposed, will be served with a show cause notice first and
will have a reasonable opportunity of being heard.
 The tax authority will give an explanation regarding the reason for penalty and the nature of offence.
 When any person who voluntarily discloses a breach of law, the tax authority may use this fact to reduce
the penalty.
 Minor Breaches under GST:
 Minor breaches (where tax amount is less than Rs.5000) or errors are easily rectifiable and clearly made
without any motive of fraud.
 There will not be substantial penalties for minor breaches
 The tax authority may issue a warning in such cases.
 Inspection under GST:
 The Joint Commissioner (or a higher officer) may have reasons to believe that in order to evade tax, a
person has suppressed any transaction or claimed excess input tax credit etc.
 Then the Joint Commissioner can authorize any other officer (in writing) to inspect places of business of
the suspected evader.
 Search and Seizure under GST:
 The Joint Commissioner of SGST/CGST can order for a search.
 He will order a search on the basis of results of inspection (or other reason) if he has reasons to believe:
 There are goods which might be confiscated.
 Any documents or books or other things which are hidden somewhere.
 Such goods and documents can be seized.

Common Offences and their Penalties under GST:

Types of Offence Amount of Penalty

Penalty for delay in filing GSTR.
Penalty for not filing GSTR.
Penalty for committing a fraud.
Penalty for helping a person to
commit fraud.
Penalty for not issuing invoice.
• Late fee is Rs. 100 per day per Act.
• So it is Rs. 100 under CGST Act and Rs. 100 under SGST Act,
i.e. Rs. 200/day in total but maximum is Rs. 5,000.
• There is no late fee on IGST.
Penalty is 10% of tax due or Rs. 10,000, whichever is higher.
Penalty is 100% of tax due or Rs. 10,000, whichever is higher. (High
value fraud cases also have jail term).
Penalty extending up to Rs. 25,000.
Penalty is 100% of tax due or Rs. 10,000, whichever is higher.

Types of Offence Amount of Penalty

Penalty for opting for composition
scheme even though he is not
eligible.
• Demand & recovery provisions of sections 73 & 74 will apply.
• Fraud Case – Penalty is 100% of tax due or Rs. 10,000,
whichever is higher.
• Non-Fraud Case – Penalty is 10% of tax due or Rs. 10,000,
whichever is higher.
 Penalty for wrongfully charging Penalty is 100% of tax due or Rs. 10,000, whichever is higher
GST rate – charging higher rate. (If the additional GST collected is not submitted with the Govt.).

Penalty for not registering under Penalty is 100% of tax due or Rs. 10,000, whichever is higher.
GST.
Penalty for incorrect invoicing. Penalty of Rs. 25,000.

Offences with No Penalty (But Interest may be charged):

Types of Offence Amount of Penalty

Penalty for incorrect type of GST • No penalty.
charged (IGST instead of • Pay the correct GST and get refund of the wrong type of GST
CGST/SGST). paid earlier.
Penalty for incorrect filing of GSTR. • No penalty.
• But interest @ 18% on shortfall amount.
Penalty for delay in payment of • No penalty as such.
invoice. • ITC will be reversed if not paid within 6 months.
Penalty for wrongfully charging • No penalty.
GST rate – charging lower rate. • Interest @ 18% applicable on the shortfall.

Additional Penalties:

Tax Amount Involved (Rs.) Jail Term Fine

100 – 200 lakhs Up to 1 Year Applicable

200 – 500 lakhs Up to 3 Years Applicable
Above 500 lakhs Up to 5 Years Applicable

 Prosecution under GST:

• The prosecution is conducting legal proceedings against someone in respect of a criminal charge.
• A person committing an offense with the deliberate intention of fraud, becomes liable to prosecution
under GST, i.e., face criminal charges.
Compounding of Offences under GST:
 Section 138(3) provides that on payment of compounding amount no further proceeding to be initiated
under this Act and criminal proceeding already initiated shall stand abated.
 The lower limit for compounding amount is 50% of tax involved or Rs. 10,000, whichever is higher.
 The upper limit for compounding amount is 150% of tax involved or Rs. 30,000, whichever is higher.
 Compounding is to be permitted only after payment of tax, interest and penalty and compounding shall
not affect any proceeding already instituted under any other law.
 APPEALS AND REVISION UNDER GST
 Tax laws impose obligations.
 Such obligations are broadly of two kinds: (a) tax-related and (b) procedure-related.
 The taxpayer’s compliance with these obligations is verified by the tax officer.
 There may be difference in view and opinion between the taxpayer and the tax officer.
 Hence, it is likely that the taxpayer may not agree with the “adjudication order” so passed by the tax officer.
 Similarly, the Department may not agree with the adjudication order in some cases.
 Hence, dispute may arise between the two parties.
 That is why, the statute provides channels of appeal to both sides.
 Appeal is a statutory right.
 Thus, An Appeal under any law is an application to a higher court for a reversal of the decision of a
lower court.
 “Adjudicating Authority” means any authority, appointed or authorised to pass any order or decision
under this Act, but does not include the CBIC, the Revisional Authority, the Appellate Authority, the
Authority for Advance Ruling, the Appellate Authority for Advance Ruling, the Appellate Tribunal and
National Anti- Profiteering Authority.

NON-APPEALABLE DECISIONS:
 The Board or the State Government may, on the recommendation of the Council, fix monetary limits
for appeals by the GST officer to regulate the filing of appeal and avoid unnecessary litigation
expenses.
 Appeals cannot be made for the following decisions taken by a GST officer:
• An order to transfer the proceedings from one officer to another officer;
• An order to seize or retain books of account and other documents; or
• An order sanctioning prosecution under the Act; or
• An order allowing payment of tax and other amount in instalments.

STEPS OF APPEALS UNDER GST:

Appeal Level Order Passed by Appeal To Sections of the Act

1st Adjudicating Authority First Appellate Authority 107

2nd First Appellate Authority Appellate Tribunal 109,110

3rd Appellate Tribunal High Court 111-116

4th High Court Supreme Court 117-118

First Appeal with the Appellate Authority (AA):
 A person unhappy with any decision or order passed against him under GST by an adjudicating authority
can appeal to the First Appellate Authority.
 Appeal shall be filed within 3 months from the date of communication of the order by the Adjudicating
Authority.
 Commissioner on his own or at the request of the Commissioner of the State or UT can review the order
and apply to the AA within 6 months.
 Before filing the first appeal, the appellant must pre-deposit the following:
• 100% of the undisputed amount of tax, interest, fee and penalty.
• 10% of the disputed tax amount.
 Appeal is to be filed in form APL-01 (For Assessee)/ APL-03 (For Department).
 Hard copy in triplicate with Certified copy of Order and supporting documents is to be submitted within 7
days of appeal.
 Recovery proceedings are deemed to be stayed once the appeal filed and amount paid.
 Maximum 3 adjournments allowed.
 Additional evidences, other than already produced to Adjudicating Authority, are not entertained.
 Appellate Authority can’t refer the matter back to Adjudicating Authority.
 Any order for enhancement of penalty/ fine or reducing refund/ credit shall not to be passed without giving
the appellant reasonable opportunity.
 Appellate Authority shall hear and pass the order within 1 year in form APL-04.

Power of Revisionary Authority (RA):

 RA can work suo-moto or at the request of Commissioner of GST of the State or UT.
 He can seek details of the order passed and examine record of the proceedings.
 He has the power to enhance, modify or annul the decision taken by officers subordinate to him.
 However, RA cannot exercise powers in the following cases:
• The window to appeal to the Appellate Authority is open.
• The matter is already under appeal with one of the authorities in the chain.
• The matter has already been taken up for revision once.
• More than 3 years have elapsed of passing of the Order.

Appeal to Appellate Tribunal:

 It is a 3 member Quasi-judicial authority consisting of a Judicial member, one Technical member (Centre)
and one Technical member (State).
 It is a common authority for CGST, IGST, UTGST and SGST.
 It will hear appeal against order passed by Appellate Authority or Revisional Authority.
 National/ Regional Bench will hear matters relating to Inter-State transactions and State/ Area Bench
will hear matters relating to Intra-State transactions.
 President of respective Tribunal can entrust matter to 2 member bench or single member bench (in case the
amount is up to Rs. 5 Lakhs).
 The appeal is to be filed within 3 months from the date of communication of the order by AA or RA.
 Appeal by the assessee is to be filed in form APL-05 together with prescribed fee (Rs. 1000 per lakh of
tax/ tax credit or difference of tax and tax credit or amount of fine as per order, subject to maximum of Rs.
25,000). Dept. shall file appeal in form APL-07 without fee.
 The assessee has to Pre-deposit additional 20% of the disputed amount (over and above already deposited
at the time of appeal to Appellate Authority).
 Recovery proceedings deemed stayed once the appeal filed and amount paid.
 Tribunal may refuse to admit petty appeals where the monetary value involved doesn’t exceed Rs. 50,000.
 Up to 3 adjournments are allowed.
 Any order for enhancement of penalty/ fine or reducing refund/ credit shall not to be passed without giving
the appellant reasonable opportunity.
 AT can remand the matter to the lower authorities.
 Tribunal to hear and decide the appeal within 1 year of filing.
 AT may confirm, modify or annul the order appealed against.
 Statement indicating final demand will be issued in form APL-04.

Appeal to High Court:

 High Court shall hear order passed by State/ Area Bench of Appellate Tribunal.
 Appeal is to be filed within 180 days of the order received in form APL-08.
 Admission, only if the case involves substantial question of law.
 Hearing only around the question of legal provision of law challenged.
 The case shall be heard by a bench consisting of at least 2 judges
 In case of difference of opinion amongst the judges, additional judges may be called to hear the case.
 Provisions of Code of Civil Procedure relating to appeals to the High Court shall apply in the case of appeals.

Appeal to Supreme Court:

 To be filed immediately after:
• Order of Appellate Tribunal in case of inter-state transactions.
• Order of the High Court certifying that the case is fit for an appeal to the Supreme Court.
 Provisions of Code of Civil Procedure relating to appeals to the Supreme Court shall apply in the case of
appeals.
 Sums due to the Government, as a result of order passed by Appellate Tribunal or an order passed by the
High Court shall be payable in accordance with the order so passed.
 Supreme Court may vary, upheld or reverse the order.
 Important Short Questions (2 marks each):
1. State any four advantages of GST Registration.

Ans.) Advantages of GST Registration to a taxpayer:

(a) He is legally authorized to collect taxes from his customers.

(b) He can claim Input Tax Credit of taxes paid and can utilize the same for payment of taxes due on
supply of goods or services.
(c) Seamless flow of Input Tax Credit from suppliers to recipients at the national level.
(d) Registered person is eligible to apply for Government bids or contracts or assignments.

2. Name any four categories of person who are compulsorily required to get themselves registered under GST.

Ans.) Compulsory Registration required under GST Law:

(a) Person making any inter-state taxable supply;

(b) Causal taxable persons making taxable supply;
(c) Person who are required to pay tax under reverse charge;
(d) Person who are required to pay tax under sec. 9(5) of CGST (i.e. Electronic Commerce Operator).

3. State the provisions for amendments of registration.

Ans.) Provisions of amendment of registration:

 In case the change is for legal name of the business, or the State of place of business or additional
place of business, the taxable person will apply for amendment within 15 days of the event
necessitating the change.
 The proper officer, then, will approve the amendment within next 15 days.
 For other changes like name of day to day functionaries, e-mail Ids, Mobile numbers etc. no approval
of the proper officer is required, and the amendment can be affected by the taxable person on his own
on the common portal.

4. What is HSN?

Ans.) HSN stands for ‘Harmonized System Nomenclature.’ It classifies more than 5000 products worldwide.
Nearly 98% of international trade stock is classified in terms of HSN.
The WCO (World Customs Organization) developed it as a multipurpose international product
nomenclature that first came into effect in 1988 with the vision of facilitating the classification of goods
all over the World in a systematic manner and is used by 200+ countries.

5. What is a receipt voucher? How is it different from payment voucher?

Ans.) A receipt voucher is required to be issued on the receipt of advance payment in respect of the supply of
good or services or both. This voucher is the proof that payment has been received.
A recipient liable to pay under Reverse Charge is required to issue a payment voucher at the time of
making payment to the supplier.
6. State any two importance of invoice under GST.

Ans.) Importance of invoice under GST:

(a) It not only evidences the supply of goods or services, but is also an essential document for the
recipient to avail Input Tax Credit (ITC).
(b) GST is chargeable at the time of supply and Invoice is an important indicator of the time of supply.

7. What is a Bill of Supply?

Ans.) A bill of supply is similar to a GST invoice except for that bill of supply does not contain any tax amount
as the seller cannot charge GST to the buyer.
A bill of supply is issued in cases where tax cannot be charged:
 Registered person is selling exempted goods/services;
 Registered person has opted for composition scheme.

8. What is Final Return?

Ans.) A taxable person whose GST registration is cancelled or surrendered has to file a return in Form GSTR-
10 called as Final Return. This return is intended to provide details of ITC involved in closing stock
(including inputs and capital goods) to be reversed/ paid by the taxpayer.
GSTR 10 should be filed within three months of the date of cancellation or date of order of
cancellation, whichever is later.

9. State any five situations where refund can be

claimed? Ans.) (a) Export of goods or services.

(b) Supplies to SEZs units and developers.
(c) Deemed exports.
(d) Refund of taxes on purchase made by UN or embassies etc.
(e) Excess payment due to mistake.

10. State the time limit for final assessment.

Ans.) The final assessment will be done within 6 months of the provisional assessment. This can be extended
for 6 months by the Joint/Additional Commissioner.
However, the Commissioner can extend it for further 4 years as he seems fit.

11. State the items excluded in the calculation of Aggregate

Turnover. Ans.) (a) Inward supplies on which tax is paid under

reverse charge.
 (b) All taxes and cess charged under Goods and Service Tax like CGST, SGST or IGST, Compensation
Cess.
(c) Goods supplied to or received back from a Job Worker.
(d) Activities which are neither supply of goods nor service under schedule III of CGST Act.

12. What is Zero rated supply?

Ans.) Supplies executed under Sec. 16 of IGST Act and includes:

 Export of goods or services or both.
 Supply of goods or services or both to a SEZ developer or a SEZ Unit.

13. What are Nil rated and Non-Taxable supplies?

Ans.) Nil-Rated Supply: Goods or Services with 0% GST rate. Such supplies are within the ambit of GST. As
no tax is payable on outward supply, Input Tax Credit is not available. e.g. – Grains, Salt, Jaggery etc.
Non-Taxable Supply: Goods or services on which GST is not leviable i.e.; such supplies are out of ambit
of GST. Input Tax Credit is not available as GST is not applicable on such supplies. e.g. – Alcohol fit for
human consumption, Petroleum Products etc.

14. What is Exempted supply?

Ans.) It is a broader term and includes both Nil-Rated and Non-Taxable supplies and other such supplies
notified as exempt from tax. e.g. – Inward supplies from unregistered dealers not exceeding Rs. 5,000 per
day.
Such supplies are within the ambit of GST but Input Tax Credit is not available.

LONG TYPE QUESTIONS (10 MARKS EACH – 300 WORDS EACH):

1. What is meant by Invoice under GST law? Discuss its components and issue under various situations.
2. Elucidate the concept of HSN. Discuss the general guidelines for interpretation of HSN.
3. Discuss the procedure of registration under GST. Explain different types along with benefits of registration.
4. Which category of persons are required to compulsorily register under GST? Discuss the provisions of
cancellation and amendment of registration.
5. Discuss different types of vouchers under GST law.
6. What are Credit and Debit Notes? State the contents of such documents.
7. What is meant by GST Return? Discuss the procedure of return filing.
8. Discuss different types of GST returns.
9. What are the conditions to be satisfied for claiming ITC? Discuss the steps of matching, reversal and
reclaim of ITC.
10. What are the situation in which refunds can be claimed under GST law? Discuss the procedure of
claiming refund.
11. What is meant by GST refund? State the situations and documents required for claiming refund.
12. Discuss different types of Assessment under GST law.
13. Define Audit under GST Law. Explain various types of audit.
14. Discuss the penalties for offences under GST law. State the offences on which penalties are charged.
15. Discuss various provisions for appeal under GST law.