COMPULSORY QUESTION

SECTION-D 6 MARKS
Skill Development Activities:
1. Prepare a tax invoice under the GST Act.

The mandatory fields a GST Invoice should have

A tax invoice is generally issued to charge the tax and pass on the input tax credit. A GST Invoice
must have the following mandatory fields-

 Invoice number and date

 Customer name
 Shipping and billing address
 Customer and taxpayer’s GSTIN (if registered)**
 Place of supply
 HSN code/ SAC code
 Item details i.e. description, quantity (number), unit (meter, kg etc.), and total value
 Taxable value and discounts
 Rate and amount of taxes i.e. CGST/ SGST/ IGST
 Whether GST is payable on reverse charge basis
 Signature of the supplier

**If the recipient is not registered AND the value is more than Rs. 50,000 then the invoice should
carry:

 name and address of the recipient,

 address of delivery,
 state name and state code
2. Write the procedure for registration under GST.

Step-by-step Guide explaining GST Registration Process Online

The Ministry of Finance has simplified the GST registration procedure online. The applicant can
process the GST registration procedure through the GST Portal. After submission of the
application, the portal generates GST ARN immediately. Using the GST ARN, the applicant can
check the application status and post queries if necessary. Within 7 days of ARN generation, the
taxpayer shall receive a GST registration certificate and GSTIN.

Step 1: Go to the GST Portal

Access the GST Portal ->https://www.gst.gov.in/ > Services -> Registration > New Registration
option.

Step 2: Generate a TRN by Completing OTP Validation

Step 3: OTP Verification & TRN Generation

On submission of the above information, the OTP Verification page is displayed. OTP will be valid
only for 10 minutes. Hence, enter the two separate OTP sent to validate the email and mobile
number.

In the Mobile OTP field, enter the OTP.

In the Email OTP field, enter the OTP.

Step 4: TRN Generated

On successfully completing OTP verification, a TRN will be generated. TRN will now be used to
complete and submit the GST registration application.

Step 5: Log in with TRN

Upon receiving TRN, the applicant shall begin the GST registration procedure. In the Temporary
Reference Number (TRN) field on the GST Portal, enter the TRN generated and enter the captcha
text as shown on the screen. Complete the OTP verification on mobile and email.Click on the
icon marked in red to start the GST registration process.
Step 6: Submit Business Information

Various information must be submitted for obtaining GST registration. In the first tab, business
details must be submitted.

In the Trade Name field, enter the trade name of the business.
Step 7: Submit Promoter Information

In the next tab, provide promoters and directors information. In case of proprietorship, the
proprietors’ information must be submitted. Details of up to 10 Promoters or Partners can be
submitted in a GST registration application.

The following details must be submitted for the promoters:

Personal details of the stakeholder like name, date of birth, address, mobile number, email address
and gender.

 Designation of the promoter.

 DIN of the Promoter, only for the following types of applicants:
 Private Limited Company
 Public Limited Company
 Public Sector Undertaking
 Unlimited Company
 Foreign Company registered in India
 Details of citizenship
 PAN & Aadhaar
 Residential address

In case the applicant provides Aadhaar, the applicant can use Aadhaar e-sign for filing GST
returns instead of a digital signature.
Step 8: Submit Authorised Signatory Information

An authorised signatory is a person nominated by the promoters of the company. The

nominated person shall hold responsibility for filing GST returns of the company. Further, the
person shall also maintain the necessary compliance of the company. The authorised signatory
will have full access to the GST Portal. The person shall undertake a wide range of transactions
on behalf of the promoters.
Step 9: Principal Place of Business
Step 10: Additional Place of Business

Upon having an additional place of business, enter details of the property in this tab. For
instance, if the applicant is a seller on Flipkart or other e-commerce portal and uses the seller’s
warehouse, that location can be added as an additional place of business.

Step 11: Details of Goods and Services

In this section, the taxpayer must provide details of the top 5 goods and services supplied by the
applicant. For goods supplied, provide the HSN code and for services, provide SAC code.

Click here to find HSN code and SAC code.

Step 12: Details of Bank Account

In this section, enter the number of bank accounts held by the applicant. If there are 5 accounts,
enter 5. Then provide details of the bank account like account number, IFSC code and type of
account. Finally, upload a copy of the bank statement or passbook in the place provided.
Step 13: Verification of Application

In this step, verify the details submitted in the application before submission. Once verification is
complete, select the verification checkbox. In the Name of Authorized Signatory drop-down list,
select the name of the authorised signatory. Enter the place where the form is filled. Finally,
digitally sign the application using Digital Signature Certificate (DSC)/ E-Signature or EVC.
Digitally signing using DSC is mandatory in case of LLP and Companies.

Step 14: ARN Generated

On signing the application, the success message is displayed. The acknowledgement shall be
received in the registered e-mail address and mobile phone number. Application Reference
Number (ARN) receipt is sent to the e-mail address and mobile phone number. Using the GST
ARN Number, the status of the application can be tracked.
3. Prepare a chart showing rates of GST.
4. Compute taxable value and tax liability with imaginary figures under CGST, SGST and IGST.
 5. List out the exempted Goods and Services under GST.

Types of goods Examples

Live animals Asses, cows, sheep, goats, poultry, etc.

Meat Fresh and frozen meat of sheep, cows, goats, pigs,

horses, etc.

Fish Fresh or frozen fish

Natural products Honey, fresh and pasteurized milk, cheese, eggs, etc.

Live trees and plants Bulbs, roots, flowers, foliage, etc.

Vegetables Tomatoes, potatoes, onions, etc.

Fruits Bananas, grapes, apples, etc.

Dry fruits Cashew nuts, walnuts, etc.

Tea, coffee and spices Coffee beans, tea leaves, turmeric, ginger, etc.

Grains Wheat, rice, oats, barley, etc.

Products of the milling Flours of different types

industry

Seeds Flower seeds, oil seeds, cereal husks, etc.

Sugar Sugar, jaggery, etc.

Water Mineral water, tender coconut water, etc.

Baked goods Bread, pizza base, puffed rice, etc.

Fossil fuels Electrical energy

Drugs and pharmaceuticals Human blood, contraceptives, etc.

Fertilizers Goods and organic manure

Beauty products Bindi, kajal, kumkum, etc.

Types of goods Examples

Waste Sewage sludge, municipal waste, etc.

Ornaments Plastic and glass bangles, etc.

Newsprint Judicial stamp paper, envelopes, rupee notes, etc.

Printed items Printed books, newspapers, maps, etc.

Fabrics Raw silk, silkworm cocoon, khadi, etc.

Hand tools Spade, hammer, etc.

Pottery Earthen pots, clay lamps, etc.

Types of
services Examples

Agricultural Cultivation, supplying farm labor, harvesting, warehouse-related

services activities, renting or leading agricultural machinery, services
provided by a commission agent or the Agricultural Produce
Marketing Committee or Board for buying or selling agriculture
produce, etc.

Government Postal service, transportation of people or goods, services by a

services foreign diplomat in India, services offered by the Reserve Bank of
India, services offered to diplomats, etc.

Transportation Transportation of goods by road, rail, water, etc., payment of toll,

services transportation of passengers by air, transportation of goods where
the cost of transport is less than INR 1500, etc.

Judicial Services offered by the arbitral tribunal, partnership firm of

services advocates, senior advocates to an individual or business entity
whose aggregate turnover is up to INR 40 lakhs
Types of
services Examples

Educational Transportation of faculty or students, mid-day meal scheme,

services examination services, services offered by IIMs, etc.

Medical Services offered by ambulances, charities, veterinary doctors,

services medical professionals, etc. does not include hair transplant or
cosmetic or plastic surgery.

Organizational Services offered by exhibition organizers for international

services business exhibitions, tour operators for foreign tourists, etc.

Other services Services offered by GSTN to the Central or State Government or

Union Territories, admission fee payable to theatres, circuses,
sports events, etc. which charge a fee up to INR 250