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GST Revisionary Series

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CA Intermediate

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May, 2024

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Lecture 2 – Charge of GST; Composition

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IS Levy
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CA Nishant Kumar
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Income Tax Revision Schedule

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Date Day Topic

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01-02-2024 Thursday L1 - Basics of Taxation and General Tax Rates
03-02-2024 Saturday L2 - Residence and Scope of Total Income
06-02-2024 Tuesday L3 - Income from Salaries

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08-02-2024 Thursday L4 - Income from House Property

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10-02-2024 Saturday L5 - Profits and Gains from Business or Profession
13-02-2024 Tuesday L6 - Capital Gains
15-02-2024 Thursday L7 - Income from Other Sources

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17-02-2024 Saturday L8 - Clubbing of Income
20-02-2024 Tuesday
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L9 - Set Off; Carry Forward of Losses
22-02-2024 Thursday L10 - Deductions from Gross Total Income
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02-03-2024 Saturday L11 - Return Filing and Self Assessment
03-03-2024 Sunday L12 - TDS, TCS, Advance Tax
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04-03-2024 Monday L13 - Income Tax Liability - Computation and Optimization

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GST Revision Schedule

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Date Day Topic

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05-03-2024 Tuesday L1 - Supply Under GST
07-03-2024 Thursday L2 - Charge Under GST; Composition Levy
09-03-2024 Saturday L3 - Place of Supply

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12-03-2024 Tuesday L4 - Exemptions from GST

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14-03-2024 Thursday L5 - Time of Supply
16-03-2024 Saturday L6 - Value of Supply

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19-03-2024 Tuesday L7 - Input Tax Credit
21-03-2024 Thursday L8 - Registration Under GST
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23-03-2024 Saturday L7 - Tax Invoice; Credit and Debit Notes; E-Way Bill
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26-03-2024 Tuesday L8 - Accounts and Records; TDS & TCS
28-03-2024 Thursday L9 - Payment of Tax
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30-03-2024 Saturday L10 - Returns Under GST

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 Chapter 3 – Charge of GST
Extent & Commencement of CGST Act/ SGST Act/ UTGST Act/ IGST Act
Applicability CGST SGST UTGST IGST
Intra-State Supply Inter-State Supply
States of India   

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Union Territories With Legislature   
Union Territories Without Legislature   

Levy and Collection of CGST/IGST

Section Particulars CGST IGST

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9(1) Levied On Intra-State supplies of goods/ Inter-State supplies of
services/ both goods/ services/ both
Collected and Paid by Taxable Person

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Supply outside Alcoholic Liquor for Human Consumption
purview of GST
Value for levy Transaction value under section
15 of the CGST Act
Rates Rates as notified by IGST rate = CGST rate + SGST
Government. rate/UTGST rate
Maximum rate of CGST can be Maximum rate of IGST can
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20%. be 40%
9(2) Supplies on which tax • Petroleum crude
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would be levied w.e.f. • High speed diesel

a notified date • Motor spirit (commonly known as petrol)
• Natural gas and
• Aviation turbine fuel
9(3) and Tax payable under • Supply of goods or services or both, notified by the
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9(4) reverse charge Government.

• Supply of specified categories of goods or services or
both by an unregistered supplier to specified class of
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registered persons
9(5) Tax payable by the The Government may notify specific categories of services the
electronic commerce tax on supplies of which shall be paid by electronic commerce
operator operator (ECO) as if such services are supplied through it.
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Services Taxable Under Reverse Charge

Service Service GST Rate (if Conditions for Reverse
Service Supplier
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Category Recipient applicable) Charge

Goods Goods Transport Specified 5% RCM applies at 5% if GTA
Transport Agency Recipients (Without does not avail ITC; GTA
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Agency (GTA) ITC) / 12% can opt for forward

(With ITC) charge at 5% with ITC.
RCM not applicable to
recipients registered only
for TDS.
Legal Services Individual Business Entity - Business entity pays GST
Advocate under RCM.

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 Service Service GST Rate (if Conditions for Reverse
Service Supplier
Category Recipient applicable) Charge
(including Senior
Advocate) or Firm
Arbitral Arbitral Tribunal Business Entity - Business entity pays GST
Tribunal under RCM.
Sponsorship IPL (Example) Body Corporate - Body corporate or
Services or Partnership partnership firm pays GST

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Firm under RCM.
Services Government Business Entity - Business entity pays GST
Supplied by (Central, State, under RCM, except for
Government UT, Local specified exempted
Authority) services:

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• renting of
immovable
property,
• services by the

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Department of
Posts and the
Ministry of
Railways (Indian
Railways)
• services in
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relation to an
aircraft or a
vessel, inside or
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outside the
precincts of a port
or an airport;
• transport of
goods or
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passengers.
Renting of Government Registered - Registered person pays
Immovable excluding the Person GST under RCM. Applies
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Property Ministry of differently for

Railways (Indian government and non-
Railways), or Any government suppliers.
Person
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Director Director of a The Company - Company or body

Services Company or Body or Body corporate pays GST under
Corporate Corporate RCM, except for services
in personal capacity.
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Insurance Insurance Agent Person carrying - Person carrying on

Agent on insurance insurance business pays
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business GST under RCM.

Recovery Agent Recovery Agent Banking - Banking company, FI, or
Company, FI, or NBFC pays GST under
NBFC RCM.
Music Creator Music - Music companies,
Composer, Companies, producers, etc., located in
Producers, etc.

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 Service Service GST Rate (if Conditions for Reverse
Service Supplier
Category Recipient applicable) Charge
Photographer, taxable territory pay GST
Artist under RCM.
Author Author Publisher - Publisher pays GST under
RCM, except when author
opts for forward charge.
Overseeing Members of RBI - RBI pays GST under RCM.

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Committee Overseeing
Members Committee
Direct Selling Individual DSAs Banking - Banking company or NBFC
Agents (DSAs) (other than Body Company or pays GST under RCM.
Corporate, NBFC

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Partnership, or
LLP)
Business Business Banking - Banking company pays
Facilitators Facilitators Company GST under RCM.

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(BFs)
Agents of Agents of Business - Business correspondent
Business Business Correspondent (bank) pays GST under
Correspondent Correspondent (Bank) RCM.
Security Non-body Registered - Registered person pays
Services Corporate Person GST under RCM, except
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Supplier when the supplier is
registered for TDS or is a
composition supplier.
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Renting of Supplier other Body Corporate 5% (Limited Body corporate pays GST
Motor Vehicles than Body ITC) / 12% under RCM at 5% if the
Corporate (With full supplier does not charge
ITC) GST @ 12% and does not
opt for full ITC.
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Lending of - Borrower - Borrower pays GST under

Securities RCM.
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Section 9(5)
Aspect Details
Section 9(5) The government can specify services for which tax on Intra-State supplies
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Overview will be paid by the ECO if supplied through it. Provisions apply to the ECO as
if they are the direct supplier. If an ECO lacks a physical or representative
presence in the territory, it must appoint a person to be liable for tax
payment.
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Definition: The supply of goods, services, or both, including digital products over a
Electronic digital or electronic network.
Commerce
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Definition: Any person who owns, operates, or manages an electronic platform for the
Electronic supply of goods or services or both. Sometimes the ECO itself is the supplier,
Commerce Operator but often, goods/services are supplied by another person to the consumer.
(ECO)
Government's Role The Government, upon GST Council's recommendations, may notify specific
service categories where the ECO must pay the tax if such services are
supplied through its platform.

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 Aspect Details
Notified Services 1. Transportation of passengers by various vehicles (e.g., radio-taxi,
motorcab, maxicab, motorcycle, omnibus).
2. Accommodation services in hotels, inns, etc., except when the
service supplier is liable for GST registration under section 22(1).
3. House-keeping services, except when the service supplier is liable
for GST registration under section 22(1).
4. Restaurant services, with specific conditions.

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Important Questions: Questions 2, 3, 4, 5, 6, 7

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KU
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 Chapter 4 – Composition Levy
Composition Levy [Section 10]
Section
Composition Scheme for
Goods – Eligibility
Tax Rates Under
Composition Scheme
Restriction on Suppliers of
Service
Meaning of “Turnover in
State” or “Turnover in
Union Territory”
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What Happens When
Turnover Exceeds ₹1.5
Crore/₹75 Lakhs?
Persons Not Eligible for
Composition Scheme
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Ineligible Manufacturers
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Other Important Points
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Composition Scheme for
Services
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Other Issues
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Section Condition/
Intimation/
Validity
Conditions and Conditions
Restrictions for
Composition Levy [Rule 5]
Details
• Turnover limit: ≤ ₹1.5 crore (or ₹75 lakhs for specified states).
• Specified states: Arunachal Pradesh, Manipur, Meghalaya,
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Mizoram, Nagaland, Sikkim, Uttarakhand, Tripura.
• Aggregate Turnover definition: Includes all taxable, exempt
supplies, exports, and inter-state supplies excluding inward
supplies on RCM, taxes, and interest/discounts on loans,
advances.
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• Manufacturer: 1% total (CGST + SGST/UTGST).
• Restaurant Service: 5% total (CGST + SGST/UTGST).
• Other Suppliers (Traders): 1% total (CGST + SGST/UTGST).
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• Composition scheme mainly for goods and restaurant
services, with limited service provision allowed.
• Marginal value for service provision: Higher of 10% of
turnover or ₹5,00,000.
• Similar to Aggregate Turnover, excludes certain supplies and
taxes.
• Registration required when turnover exceeds ₹40,00,000;
can opt for composition scheme if under ₹1.5 crore/₹75
lakhs.
• Must exit composition scheme and register under Normal
Scheme for excess turnover.
• Composition tax applicable up to the threshold in the first
exceeding year; normal rates apply thereafter.
Service suppliers (excluding restaurant), inter-state suppliers,
electronic commerce operators, manufacturers of certain goods,
casual/non-resident taxable persons.
Not eligible: Ice cream, pan masala, aerated water, tobacco products,
certain bricks and tiles.
• Composition suppliers cannot collect tax or issue tax invoices,
nor claim ITC.
• Penalties for incorrect scheme usage.
• No tax collection from customers, affecting ITC claims.
• Option available for service suppliers (excluding restaurants)
with turnover ≤ ₹50 lakhs, taxed at 6% total.
• Registration threshold: ≤ ₹20 lakhs.
Details
• Not engaged in manufacture of certain
notified goods during preceding FY.
• Pays tax under reverse charge on inward
supplies.
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Intimation of Opting for Intimation
• Neither a casual nor a non-resident taxable
person.
• Must mention “composition taxable
person, not eligible to collect tax on
supplies” on bills and signboards.
• Must pay reverse charge tax on stock liable
under section 9(4).
for • Option in Part B of Form GST REG-01

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Composition Levy [Rules new registrants during registration.
3 & 4] • Effective from date of registration.
Intimation for • File electronically on GST portal before FY
registered start.
persons • Includes a statement within 60 days of FY

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commencement.
• Applies to all places of business under
same PAN.

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• Effective from start of FY.
Validity of Composition Withdrawal due • Option valid as long as conditions are met.
Levy [Section 10(3) Read to ineligibility • Lapses if turnover exceeds specified limit
with Rule 6] during FY.
• Tax under regular scheme from ineligibility
day.
• File intimation within 7 days of ineligibility
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event.
• Withdrawal effective from date in
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intimation, not before FY start.

Voluntary • File application before withdrawal date.
withdrawal • Effective date as indicated in application,
not before FY start.
Denial by tax • If not eligible or contravened CGST
authorities
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Act/rules, proper officer may issue SCN.

• Denial effective from option date or
contravention event.
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Effective date can be retrospective but not

before contravention date.
• Furnish statement of stock within 30 days
of withdrawal/denial.
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Important Questions: Questions 1, 6, 7, 9, 11, 13, 17, 19

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