COURSE MANUAL

Law of Taxation II

Spring 2024

Course Coordinator
Prof. Kriti Chawla

Course Instructors
Prof. Divyasha Mathur
Prof. Kriti Chawla
Prof. Shivani Kalra
 CONTENTS

PART I
General Information

PART II
a. Course Description
b. Course Aims
c. Intended Learning Outcomes
d. Grading of Student Achievement

PART III
a. Keyword Syllabus
b. Course Policies

PART IV
a. Weekly Course Outline
b. Readings
 PART I

General Information

General Information on Law of Taxation II, offered by Jindal Global Law

School
of the AY 2023-24

The information provided herein is by the Course Coordinator. The following

information contains the official record of the details of the course.

This information shall form part of the University database and may be
uploaded to the KOHA Library system and catalogued and may be
distributed amongst 4th year Law students for B.A.LL.B. (Hons),
B.B.A.LL.B. (Hons); B.Com. LL.B. (Hons), B.A. (Hons) Legal Studies, B.A.
(Hons) Criminology and Criminal Justice; LL.B.; and LL.M. courses, if
necessary.

Course Title: Law of Taxation II

Course Code: L-CT-0033

Course Duration: One Semester

No. of Credit Units: 4 Credits

Medium of Instruction: English

 PART II

a. Course Description

The introduction of the Goods and Services Tax (GST) is characterized by a marked shift
from origin – based taxation to that of consumption – based taxation. GST has subsumed
majority of the erstwhile indirect taxes that were levied by the Central and the State
Government such as Central Excise Duty, Service Tax, State Value Added Tax, Central Sales
Tax, Entry Tax, Purchase Tax, Entertainment Tax, and Luxury Tax. GST has been integrated
into the system w.e.f. July 1st, 2017.

GST is considered as the biggest and most significant tax reform in the fiscal history of India
since independence. It will not only make the tax system simpler, but will also help in
increased compliance, boost tax revenue, reduce the tax outflow in which hands of the
consumers and make exports competitive.

The 101st Constitutional Amendment Act, 2016 has facilitated the change of the taxing
authority of the Central and State Government. It allows both the Centre and the State to
levy a uniform tax i.e., GST on all intrastate supply of goods and services, and allows the
Centre to retain its authority to tax interstate supply of goods and services.

GST Council is a Constitutional body that has been created to determine its revenue neutral
rates, lists the exempted supply of goods, and services etc. GST applies on supply of all goods
and services, except the supply of alcoholic liquor for human consumption. Furthermore,
petroleum crude, high speed diesel, motor spirit (commonly known as Petrol), natural gas,
and aviator turbine fuel will be brought within the ambit of GST at a later date as determined
by the GST council. Its holistic application is pertinent.

In light of the advent of GST, this course will offer to begin with the economic aspects of
taxation particularly indirect taxation, understanding of the old indirect tax regime and
would cover the reasons and purpose to move towards GST regime. The course shall begin
with teaching the basics of the transition from the erstwhile complex indirect taxation
regime to a relatively simpler tax structure i.e., GST. The course shall then move forward to a
detailed study of the substantive and procedural aspects of GST.

The course intends to comprehensively study the key features of the 101st Constitutional
Amendment Act, 2016, the foundation of the CGST, SGST & IGST; various GST Rules such
as Registration rules, Invoice rules, Payment rules, Return rules, Refund rules, and E- way
bill Rules and other important concepts under the new GST structure in India.

From the point of view of GST Tax Administration, the participants will discuss the
provisions relating to assessment; audit under GST, the prosecutors’ role to seizure and
arrest; offences and penalties, prosecutions and compounding of offense, and also in detail
the procedure of Advance Ruling under the GST regime.

A Special Purpose Vehicle (SPV) called the Goods and Service Tax Network (GSTN) had
been created to provide IT infrastructure and service support for the implementation of GST.
The GSTN has implemented the PAN – based registration, return filling and payment
processing for all states on shared platforms. Participants of the course will discuss and
analyses issues pertaining to implementation of the GSTN.
The course will also cover a global perspective of the Indian Indirect Tax regime by focusing
on the OECD guidelines on VAT/ GST. Furthermore, the course shall also discuss an
overview of the Customs Duty in India. The course has been structured to prepare law
students to analyse and critically debate contemporary issues. Lastly, once the students have
grasped the fundamental concepts of the GST regime, the course intends to encourage
discussions on the impact of GST on various business sectors.

b. Course Aims

a. To enable students to develop a basic to intermediate understanding of GST.

b. To give an overview of the GST structure in the light of the 101st Constitutional
Amendment Act 2016

c. To understand the GST framework in light of the compliance procedures and underlying
principles.

d. To give an overview of the dispute resolution under GST particularly to comprehend the
nuances of the procedure of Advance Ruling under GST.

e. To examine Anti profiteering measurers and price contract mechanism under the GST
regime.

f. To further understand the changes that have been brought by the Finance Bill, 2024.

c. Intended Learning Outcomes

Course Weightage Teaching and Assessment Tasks/

Intended out of 100 Learning Activities Activities
Learning marks
Outcomes
Internal 50 marks To be decided in class by respective Course
Examination Instructor

End term 50 marks Common End Term Examination: Hypotheticals &

Application Based Questions

d. Grading of Student Achievement

To pass this course, students must obtain a minimum of 40% in the
cumulative aspects of coursework, e.g., moot, and final examination.
End of semester exam will carry 50 marks out of which students have to
obtain a minimum of 15 marks to fulfil the requirement of passing the
course.

The details of the grades as well as the criteria for awarding such grades are provided
below.

Letter Percentage Grade Definitions

Grade Of marks
O 80% and above Outstanding Outstanding work
with strong evidence
of knowledge of the
subject matter,
excellent
organizational
capacity, ability to
synthesize and
critically analyse and
originality in
thinking and
presentation.
A+ 75 to 79.75% Excellent Sound knowledge of
the subject matter,
thorough
understanding of
issues; ability to
synthesize critically
and analyse
A 70 to 74.75% Good Good understanding
of the subject matter,
ability to identify
issues and provide
balanced solutions to
problems and good
critical and analytical
skills.
A- 65 to 69.75% Adequate Adequate knowledge
of the subject matter
to go to the next level
of study and
reasonable critical
and analytical skills.
B+ 60 to 64.75% Marginal Limited knowledge of
 the subject matter,
irrelevant use of
materials and poor
critical and analytical
skills.
B 55 to 59.75% Poor Poor comprehension
of the subject matter;
poor critical and
analytical skills and
marginal use of the
relevant materials.
B- 50 to 54.75% Pass “Pass” in a pass-fail
course. “P” indicative
of at least the basic
understanding of the
subject matter.

NEW COURSE LETTER GRADES AND THEIR INTERPRETATION

Letter Percentag Grade
Interpretation
Grade e of Marks Points
Pass 1: Pass with Basic understanding of
P1 45 - 49 2
the subject matter.
Pass 2: Pass with Rudimentary
P2 40 - 44 1
understanding of the subject matter.
Fail: Poor comprehension of the subject
matter; poor critical and analytical skills
F Below 40 0 and marginal use of the relevant
materials. Will require repeating the
course.
“Extenuating circumstances” preventing
the student from taking the examination;
I Absent
the Vice Dean (Examinations) at their
discretion assign the “Ab” grade.
 PART III

a. Keyword Syllabus

 An in-depth analysis of old Indirect tax regime in India

 An overview of GST regime in India
 Rationale and reasons for the introduction of GST in India
 101st Constitutional Amendment Act, 2016
 GST council and its role in the GST system
 Substantive provisions of GST law
 Procedural aspects of GST
 An overview of tax Administration and dispute resolution
 Comparative insights into GST

Students may please note that the readings are merely indicative and do not consist of an
exhaustive list. The faculty may send additional reading in the course of teaching.

b. Course/Class Policies

Academic Integrity and Plagiarism

Learning and knowledge production of any kind is a collaborative process.

Collaboration demands an ethical responsibility to acknowledge who we have learnt
from, what we have learned, and how reading and learning from others have helped
us shape our own ideas. Even our own ideas demand an acknowledgement of the
sources and processes through which those ideas have emerged. Thus, all ideas must
be supported by citations. All ideas borrowed from articles, books, journals,
magazines, case laws, statutes, photographs, films, paintings, etc., in print or online,
must be credited with the original source. If the source or inspiration of your idea is a
friend, a casual chat, something that you overheard, or heard being discussed at a
conference or in class, even they must be duly credited. If you paraphrase or directly
quote from a web source in the examination, presentation or essays, the source must
be acknowledged. The university has a framework to deal with cases of plagiarism.
All form of plagiarism will be taken seriously by the University and prescribed
sanctions will be imposed on those who commit plagiarism.

Disability Support and Accommodation Requirements

JGU endeavours to make all its courses accessible to students. In accordance with
the Rights of Persons with Disabilities Act (2016), the JGU Disability Support
Committee (DSC) has identified conditions that could hinder a student’s overall well-
being. These include physical and mobility related difficulties, visual and hearing
impairment, mental health conditions and intellectual/learning difficulties e.g.,
dyslexia, dyscalculia. Students with any known disability needing academic and
other support are required to register with the Disability Support Committee (DSC)
by following the procedure specified at https://jgu.edu.in/disability-support-
committee/

Students who need support may register any time during the semester up until a
month before the end semester examination begins. Those students who wish to
continue receiving support from the previous semester, must re-register within the
first month of a semester. Last minute registrations and support might not be
possible as sufficient time is required to make the arrangements for support.

The DSC maintains strict confidentiality about the identity of the student and the
nature of their disability and the same is requested from faculty members and staff
as well. The DSC takes a strong stance against in-class and out-of-class references
made about a student’s disability without their consent and disrespectful comments
referring to a student’s disability.

All general queries are to be addressed to

disabilitysupportcommittee@jgu.edu.in

Safe Space Pledge

This course may discuss a range of issues and events that might result in distress for
some students. Discussions in the course might also provoke strong emotional
responses. To make sure that all students collectively benefit from the course, and do
not feel disturbed due to either the content of the course or the conduct of the
discussions. Therefore, it is incumbent upon all within the classroom to pledge to
maintain respect towards our peers. This does not mean that you need to feel
restrained about what you feel and what you want to say. Conversely, this is about
creating a safe space where everyone can speak and learn without inhibitions and
fear. This responsibility lies not only with students, but also with the instructor.

P.S. The course instructor, as part of introducing the course manual, will discuss the
scope of the Safe Space Pledge with the class.
 PART IV

a. Weekly Course Outline

Overview of Goods and Services Tax

 Introduction to Tax: meaning, need, canons of taxation
 Elements of taxes; types of taxes i.e., Direct and Indirect taxes
 Impact assessment of indirect taxes: pros & cons
 Introduction to erstwhile indirect taxation
 Concept of cascading effect under the old indirect tax regime
Week 1-2  Introduction to GST: rationale & need to transit
 Salient features of GST Act, Centre and States Financial Relations.
Advantages and challenges under GST.
 The GST framework under Indian Law: Historical, Constitutional
and Comparative Perspective
 101st Constitutional Amendment Act 2016: Need & Features
 GST Compensation Cess: Critical analysis
 The Functioning of the GST Council: Demonstration of Cooperative
Federalism

Conceptual Aspects of Supply under GST

 Incidence of Taxation under GST
 Concept of supply under GST
 Types of Supply under GST (Schedule I-III)
Week 3-5
 Mixed and Composite Supplies
 Doctrine of Mutuality
 Place of supply
 Time of supply
 Value of supply

Principles of Input Tax Credit under GST

 Input Tax Credit (ITC): Relevance & Need
 Meaning of ITC, conditions for taking ITC
Week 6-7
 Limitations of availing ITC – Blocked credits
 Procedure to obtain and utilize ITC
 Transfer and Reversal of ITC

Week 8
Compliance & Administration
Registration under GST
 Registration: Relevance & Need
  Liability of registration [Compulsory Registration],
 Exemption from registration
 Process of registration
 Deemed registration
 Amendment, cancellation and revocation of registration

Composition Scheme
 Intimation of Composition rule
 Effective date of levy
 Conditions and restrictions
 Validity of composition levy

Compliance & Administration

Invoice under GST
 Revised invoice rule
 Tax Invoice
 Credit & Debit Notes
Week 9  Bill of Supply

E-Way Bill
 Overview of the requirements of e-way bills - their need and
rationale

Compliance returns under GST

 Introduction to GSTN
 GSTN as a SPV
 Structure of GSTN and its Role in GST Admin
 Guide to Filing of Returns under GST
 Types of Returns, Frequency of filing Returns
 Procedure to File Returns

Reverse Charge Mechanism (RCM) under GST

Week 10-11  Reverse Charge Mechanism
 What is reverse charge mechanism?
 When is reverse charge applicable?
 Time of supply under reverse charge mechanism.
 What is self-invoicing?

Exemption
 Goods exempt from tax
 Services exempt from tax

Week 12 Classification & Sectoral Analysis

Rates under GST
  Rate of taxes
 Various GST Slabs
 Single Rate GST versus Multiple Rates under GST
 Classification Issues

GST: Sectoral Impact

 Taxation of Real Estate
 Online Gaming & GST
 Recent Changes in the implications of GST on Packaged Food
Industry
 Impact Assessment: Overview of 5 Years of GST in India

Week 13-14 Penal Provisions & Prosecution

 Penalty
 Prosecution
 Punishable and non- punishable offences
 Arrest, Search, Seizure, Attachment

Dispute Resolution under GST

 Need for an appeal Mechanism,
 Structure of Appeal Under GST,
 Deposit of tax admitted and Pre- deposit,
 Power of Revision authority,
 Appeal to Civil Courts
 National Anti-Profiteering Authority (NAA) [Role & Functions] –
 Constitutional Validity of the NAA
 Role of Competition Commission of India – CBIC Notification
23/2022 – CT dated 23/11/22

Overview of Customs Duty

 Introduction to Customs Law, Types of Duties
Week 15  Classification of Imported & Export Goods
 Valuation under Customs Act 1962
 Co-relation between Customs & IGST

b. Readings including case laws

WEEK 1 -2
 Patawari, Manisha and Srivastava, Sanjay Prakash, GST: A Journey to Make
India a Single Tax Economy (June 20, 2020). Patawari Manisha & Srivastava, S.
P., International Journal of Trend in Scientific Research and Development
(IJTSRD) @ www.ijtsrd.com eISSN: 2456-6470, Available at
 SSRN: https://ssrn.com/abstract=3870589
 'India GST: The Mechanics of Compliance' (2017) 28 Int'l Tax Rev 22
 Indirect taxation in Independent India, Available at:
http://www.taxsutra.com/experts/column?sid=830
 ICAI Study Material: Chapter 1: GST in India – An Introduction <
https://www.icai.org/post.html?post_id=17281>
 Rav Pratap Singh, Constitution of Tax: A Tale of Four Constitutional
Amendments, Oakbridge 2021 (Chapter 5)
 Report of the Select Committee, Rajya Sabha, July 2015
Case Laws
 Mohit Minerals v/s Union of India – 3rd October 2018 SC
[CIVIL APPEAL NO. 10177 Of 2018]
 Skill Lotto Solutions Pvt Ltd v Union of India, [2020] 122 taxmann.com 49 (SC)]
 For observations on GST Council – UOI vs. M/s Mohit Minerals Pvt Ltd [Civil
Appeal No. 1390 of 2022

WEEK 3-5
 Chapter 2, 5, 6, 7 : ICAI Study Material available at
https://www.icai.org/post.html?post_id=17281
 Valuation Rules, CGST Rules, 2017
 Composite and Mixed Supplies under GST: Demystifying the Conceptual Tenets
by Tarun Jain available at
(https://www.scconline.com/blog/post/2021/09/02/composite-and-mixed-
supplies-under-gst-demystifying-the-conceptual-tenets/)
Case Laws
 Composite Supplies and Place of Supply: Union of India & Anr v. Mohit Minerals
Pvt. Ltd (2022, SC); Re: M/s CMC Vellore Association (2019, TN AAR)
 Doctrine of Mutuality: State of West Bengal and v. Calcutta Club Ltd. AIR 2019
SC 310
 Time of Supply (Vouchers / Gift Cards): Premier Sales Promotion Pvt. Ltd. vs
Union of India & Others [TS-23-HC(KAR)-2023-GST]; RE: M/S Kalyan Jewellers
India Ltd. [2021 (4) TMI 885 (AAAR, TAMIL NADU)]
 Place of supply: M/S Dharmendra M. Jani Vs. Union Of India [18 April 2023
(Bombay High Court)]; Principal Commissioner of Central Tax Vs. NCS Pearson
Inc (GST AAAR Karnataka)
 Bajaj Finance Ltd (2019, Maharashtra AAAR)
 Maharashtra Power Generation Ltd (2018, Maharashtra AAAR)
Optional reading:
 Rav Pratap Singh, Reform and Deform; A five-side critique of GST (Chapter 1-
Concept of Supply), Oakbridge 2023

WEEK 6-7
 Chapter 8: ICAI Study Material available at: https://www.icai.org/post.html?
 post_id=17281 (ITC)
 GST, A Practical Approach by V. Chaudhary, CA Dalmia and Girdharwal,
Taxmann, Pg: 266- 284
 Transitional Credit- A Pandora’s box? – GST SUTRA
Case Laws
 Input Tax Credit and Refunds (Inverted duty structure): Union Of India Vs. Vkc
Footsteps India Pvt. Ltd. [(2021) 130 Taxmann.Com 193 (SC)]
 ITC on construction: Safari Retreats Pvt. Ltd. v. Chief Commissioner of GST
(2019, Orissa HC)
 ITC on demo cars: Re: Chowgule Industries Ltd (2019, Mah AAR); BMW India
Pvt Ltd [TS-772-AAAR(HAR)-2021-GST]
 DY. Beathel Enterprises vs State Tax Officer. [2022 (58) GSTL 269 (Mad.)] –
Omission on the part of the seller to remit the tax, strict action ought to be
initiated against him.
 Kirloskar Electric Co. Ltd. [2018 (16) GSTL 564 (Kar.)] – State cannot retain tax
& deny ITC to the buyer
 In re GRB Dairy Foods Private Ltd (GST AAAR Tamil Nadu)
MANU/AI/0010/2022

WEEK 8
 ICAI Study Material: Chapter 9: Registration; Chapter 3: Charge of GST

WEEK 9
 ICAI Study Material: Chapter 10 and Chapter 11
 CGST RULES: https://docs.ewaybillgst.gov.in/documents/EWBRules.pdf
Optional reading
 CBIC flyer on E-way bill: https://old.cbic.gov.in/resources//htdocs-cbec/gst/e-
way-bill_nov.pdf

WEEK 10-11
 ICAI Study Material: Chapter 3 (Charge of GST)
 FAQ on GSTN issued by CBEC:
https://gstindiaonline.com/pages/gstlegislation/GST%20FAQ/cbec%20faq-
2017/023.htm
 Notification No. 2/2017- Central Tax (Rate) dated 28/6/2017
 Notification No. 12/2017- Central Tax (Rate) dated 28/6/2017
Case Laws
 Commissioner of Customs (Import), Mumbai vs. Dilip Kumar and Company &
Ors. Benefit of ambiguity in Tax Exemption Notification should be given to
Revenue: [SC (2018) 9 SCC]
 Kultar Exports [2020 (36 GSTL 0208 (Del.)] – Exemption Notifications must be
strictly construed.
Optional Readings
 CAG Audit on GSTN: Available at http://www.thehindu.com/news/national/as-
 complaints-mount-cag-starts-audit-of-gst-network/article19699905.ece
 Glitches in GSTN: Available at :
http://www.thehindu.com/opinion/editorial/tax-trauma/article19737685.ece

WEEK 12
 Global IDT Chronicles: When ‘bread’ is not ‘bread’!!! Oct 13, 2020, GST Sutra;
https://www.swamyassociates.com/downloads/2020/When%20Bread%20is
%20not%20bread%20-%20Sindhu%20(Taxsutra).pdf
 Classification of Services:
https://www.scconline.com/blog/post/2022/07/12/classification-of-services-a-
vexed-question-in-gst-laws/
 Online Gaming – A Deep Dive into Taxation Structure amid Controversies, Dec
12, 2022, Navneet Singhal <
https://www-taxsutra-com.opj.remotlog.com/gst/experts-corner/online-
gaming-deep-dive-taxation-structure-amid-controversies>
 https://www.forbesindia.com/article/take-one-big-story-of-the-day/28-percent-
gst-on-online-gaming-industry-cites-ambiguities-even-as-clarity-emerges/
87247/1
 Impact Assessment: https://theprint.in/pageturner/excerpt/gsts-give-and-take-
attitude-has-dried-up-india-needs-a-system-overhaul/1101525/
Case Laws
 Online Rummy Gameskraft Technologies (P.) Ltd. V. DGGSTI [2023]
150 taxmann.com 252 (Karnataka); Dream 11 and GST: Gurdeep Singh
Sachar Vs Union of India (Bombay High Court)

WEEK 13-14
 Taxmann’s book on GST, A Practical Approach by V. Chaudhary, CA Dalmia and
Girdharwal, Pg 425 – 438
 ICAI Study Material: Chapter 18 ,21 and 22
 GSTAT: Need of the Hour, 11/8/22 < https://www-taxsutra-
com.opj.remotlog.com/gst/experts-corner/goods-and-services-tax-appellate-
tribunal-need-hour>
 Sunil Jain, Dispute Resolution Under Direct Tax Laws, Parthasarthi Shome,
Indian Tax Administration, A Dialogue
 A Critical Analysis Of National Anti-Profiteering Authority And Its Constitutional
Validity - https://www.indialawjournal.org/a-critical-analysis-of-national-anti-
profiteering-authority-and-its-constitutional-validity.php
 NAA merged with CCI:
https://economictimes.indiatimes.com/small-biz/gst/why-merging-gst-naa-
with-cci-may-not-be-a-prudent-move/articleshow/95498543.cms?from=mdr
Case Laws
 Radha Krishnan Industries [2021 (48) SC (113)]: Provisional Attachment is
Draconian
Optional readings:
 Rav Pratap Singh, Reform and Deform; A five-side critique of GST (Chapter
3,4,5), Oakbridge 2023

WEEK 15
 “IGST on Import - A Duty of Customs or Tax on Supply under GST” by Tushar
Aggarwal; https://www-taxsutra-com.opj.remotlog.com/gst/experts-corner/igst-
import-duty-customs-or-tax-supply-under-gst
 ICAI Study Material: Chapter 14

Recommended Books:
 Taxmann’s Students Guide to GST & Customs Law Dr. Vinod K. Singhania
 Commercial's Systematic Approach to GST for CA Inter [IPCC] by Dr. Girish
Ahuja & Dr. Ravi Gupta
 Commercial's Systematic Approach to Indirect Taxation including GST &
Customs for CMA Inter by Dr. Girish Ahuja & Dr. Ravi Gupta
 Taxmann GST Law and Practice with Customs and FTP. By- V.S Datey.

 Taxmann’s book on GST, A Practical Approach by V. Chaudhary, CA Dalmia and

Girdharwal

 Goods and Services Tax, Constitution Law & Policy – Tarun Jain, Partner BMR
Legal Associates

 Constitution of Tax by Rav Pratap Singh – 1st Edition 2021.

 GST Issues | Decoding GST Issues & Litigation Trends by Shankey Agrawal

 GST Professional Guide by Abhishek Rastogi

 Introduction to Taxation: A Textbook for Law Students (Ramamurthy)