-8g #LetsCrackTax CA Amit Mahajan BE

Basics of GST ✓

03 CHARGE OF GST
CA CS CMA GILBY cham
see You in the
.

torn ✓
APP

Definitions Levy & Collection of GST & IGST [Sec of CGST act & Sec 5 of IGST Act]

E-
1. Section (1) Levy of CGST on Intra-State Supply on the value
Exempt Supply
Supply which attracts@
NIL rate of tax or which may be wholly exempt from determined u/s 15 [Max@ 20%] 40%

tax & includes non-taxable supply 2. Section (2) No Levy of GST on ‘petroleum products’ till recommended
= -

by GST council
Reverse charge . Section ( ) Power of Government (on recommendation of GST council)
The liability to pay tax is on ‘recipient’ of supply of G/&S instead of
supplier of such Goods and Services to specify category of Supply on which☐
RCM shall apply
. Section ( ) Tax under RC is payable on otified category of Inward
India Supplies of G/&S received from any unregistered supplier by otified
• Territory of India & its territorial waters (TWI);
• seabed & sub-soil underlying such waters, class of registered persons
• Continental shelf, 5. Section (5) PAYMENT OF GST BY ELECTRONIC COMMERCE
• Exclusive economic zone or any other maritime zone OPERATOR (ECO): Govt to specify certain category of services where
• Air space above its territory & TWI
ECO would be required to pay GST
Extent & Commencement of GST Law
Situation Person liable to pay tax
CGST Act It extends to whole of India including & .
If ECO does not have a physical Person representing such ECO for any
SGST Act SGST Act of a State/UT with State Legislature presence in TT purpose in TT
extends to whole of that State/UT
If ECO does not have a physical Person appointed by ECO in TT
IGST Act It extends to the whole of India including J&K. presence in TT & also he does not
UTGST Act It extends to All UTs without state legislature. have a representative r

otified Services are

UTs without state legislature are Andaman & Nicobar, Dadra & Nagar 1.
Haveli and Daman & Diu; Lakshadweep; Chandigarh, Ladakh
2.
UTs with state legislature are Delhi, J&K, Puducherry 3.
A hotel provided accommodation in Himachal Pradesh, through ECO 4.
Makemytrip.com. Hotel is not liable to get registered as per the provisions of
Section 22 (1) of the CGST Act. Who is the person liable to pay GST in this
case? Will your answer be different if ECO Makemytrip.com does not have a
physical presence in India?
Transportation of Passengers by a radio-taxi, motorcab, maxicab &
Motor cycle.
Hotel Business (If hotel owner is Unregistered).
House-Keeping Services (If service provider is Unregistered).
Supply of restaurant services other than restaurants located at specified
premises (hotels providing accommodation where declared tariff per
unit per day is > 7500)

CHARGE OF GST 19
 under UST
Charge " " "

-T- Declared

¥¥
- > 7 " .

*
☐ ☐ Tamir .

☐ ☐
I 1
D
☐
II
I
¥ ?
composition §,
scheme .

FCM / RCM
kitchen

#services .
1011 ) / (2)
12A )

Goods

Uber 040 Urban co 3. mats / Swigart

Zsmato
fuber] 040 Urbano

EII¥
g- sso
"
7 7
y Flor 2=5000
ast ust 5¥
0 Esso
supplier 0
In so - ?
0 µ ,, 0 q ☒
^
^
¥0 s
qn 9n or
supplier
.

Cust q Vivek
Driver Ansnu
^ Kaushal .
.

Kaka
.

poet the
Registered
→
-
supp -

poet the lfsypp -

Registered
.

HK →
Ust scenario
→
HK Tomato will

↳
If →
Usual
go
-

Ust

DK →
↳
RP✓

upnpx
]→°b
wigs
" ° "

to
]
↳ unregistered - Ecs
- Payne
ast
-
unregistered - Ecs
- Pomme
as,-
to the

pay
604-4
the Cest
-

Govt & Restaurant

.

the
Exception -
zsm*
deposit the
if restaurant
is located in a hotel where

unit
declared lamif per day per
'

T# to

>
575001 -
Bagg #LetsCrackTax CA Amit Mahajan BB
Issues clarified on Reverse Charge Mechanism

I
1. Generally - Supplier is liable to pay GST
1. ECOs not required to collect TCS
2. Under RCM, liability to pay GST is on recipient of Goods / Services
otified ECOs are no longer required to collect TCS and file GSTR- on
3. However, underlying principle of an indirect tax is that burden of such
which it pays tax u/s 9(5) -

tax has to be ultimately passed on to the recipient

4. GST being an indirect tax, this principle holds good for GST
2. ECOs are not required to take a separate registration for paying tax
5. Therefore, under RCM, only the compliance requirements, [i.e. to obtain
u/s (5)
registration under GST, deposit the tax with the Government, filing
returns, etc.] have been shifted from supplier to recipient
. Revenue from supply made by a restaurant through ECO – shall be

I
included in his turnover while computing his aggregate turnover.
RCM
. Not inward supplies for ECOs
Even though ECOs are paying GST on such supply – such supply is o
not
an inward supply for them
☐ Goods
☐ Services

5. Cannot Utili e the ITC

ECOs are required to pay the GST in CASH – it cannot utilize their ITC 1. Cashew nuts [not shelled/
=
peeled]

EE
. Supplier providing supply through ECOs which are not NOTIFIED u/s
2. Bidi wrapper leaves &
(5)
Such suppliers to pay the GST and NOT the ECOs tobacco leaves
. Supply of Lottery; Silk yarn,

E
7. Invoice w.r.t. restaurant service supplied through ECOs u/s 9(5) will used vehicles
be issued by ECOs
. Sei ed & confiscated goods
. Billing of Restaurant Service and other goods in the same order 5. Old & used goods
-

ECO is responsible only for a billing of a Restaurant serviceSupplier to . Waste & scrap
issue a separate bill for the other goods / services 7. Raw cotton etc

CHARGE OF GST 20
Bags #LetsCrackTax raanajanrirtualsw)-① BE
BCCI

i CA Amit Mahajan
SR

SERVICES NOTIFIED UNDER RCM 2. Legal Services Individual Business Entity

Advocate located in TT.
Nature of Service Supplier (BY) Recipient [Person Exempn (including senior
liable to pay GST] advocate or firm
of advocates)
-1. Goods Transport Agency
(GTA) by Road
GTA paying 5%-
CGST
(a) Factory
(Factories Act,
. Services by Arbitral Tribunal
"
Arbitral Tribunal Business Entity
• who has not paid CGST 1 4 );
f- ✗ emp located in TT.
@12% (b) Society ✓. Sponsorship Any Person Body Corporate or
• who has not availed ITC (Societies P ship Firm in TT.
Not Registration 5. Services supplied by CG, SG, UT, LA Business Entity
GTA Specified
Exempt
Act) CG, SG, UT/LA located in TT.
(c) Co-operative Exempn
Specified person society
(d) Any body 5.A Services supplied by CG, SG, CG, SG, UT or LA Any Registered
FCM RCM corporate UT or LA by way of renting Person under GST.
of immovable property AND
12%
d-
5% 5%
✓
excluding reg
co-op society Exert other than TAP (Read with
exemption chapter – refer
(e) P’ship Firm master chart of exemption)
ITC ITC ITC
(including 5.AA Service by way of renting Any person Any Registered
AOP/BOI) =
of residential dwelling to a person.
(f) Casual Taxable Registered person.
I

5.B Services of Transfer of Any person Promoter

Person in TT.
(g) Registered
✓ development rights or
Floor Space Index (FSI) for
I
Person under construction of a project by
GST a promoter

Reg
"
only
IMPORTANT - RCM shall not apply if
for services are provided by GTA to CG/
✓5.C Long term lease of land
( years) against
Any person Promoter
Gost=
- -

consideration in the form of

deducting SG undertakings/ Local Authorities/ upfront amount (called as of
land

lease
☒
Govt agencies which has taken
A

TDs
.

premium, salami, cost, price, Amit

1 Kirti
④
registration ONLY FOR deducting tax
^

development charges) &/or ⑤ zzoyrs

.

at source (TDS) and not for making periodic rent for construction
taxable outward supply of a project by a promoter. F- Rental
I
KRC AA

CHARGE OF GST 21
 CUDA > Reliance

SR
qta
- specified
I
] unregistered
persons

Persons
.

/
-

sp
-

E¥°+ •
Factory
.

✓
I 1
•
society

FCM RCM .
Non -

specified • co-op
.

society
Firm
.

• Partnership
persons
.

I Body corporate
-

1-
•

✓
Reliance
UTA
UTA Registered Persons
-
+
mm

&
* " 5% • CTP
5/
.

12J .

I other RP -

•
Any

I v1 GTA XITCX
ITCV ITCX
 -6GB #LetsCrackTax 00
CA Amit Mahajan BAE
✓. Services supplied by a Director Director Company or Body 1 . Security Services (Services Any person Any Registered
Corporate
✓ -Supply of security
personnel)
other than BC Person, located in
TT
7.
Services supplied by Insurance Agent Insurance
✓ Insurance Agent Company located
in TT.
✓
¥7
. Services supplied by Recovery agent Banking company
Recovery Agent or financial Transfer of TDR / FSI / Long Term Lease
institution or NBFC - - -

located in TT. - - -

✓. Transfer/permitting use or Author, Music Publisher, Music

5 Cr
enjoyment of copyright composer, company, Producer
relating to original literary, Photographer, etc. located in
dramatic, musical or artistic Artist etc. taxable territory. Taxability of premium Builder .

works
-A. Supplier of services by an Author Publisher located Exempt
author by way of transfer in taxable territory
or permitting the use or
enjoyment of a copyright To the extent of the of the flats are by the builder
covered under clause (a)of
sub-section (1) of section 1
of the Copyright Act, 1 57 Before completion of construction (before cc is
relating to original literary received)
works to a publisher
1 . Supply of Services by
✓ Members of RBI
Members of Overseeing Overseeing Before CC is received
Committee Committee
¥nBama
.

- Bam .

constituted by
RBI
11. Services supplied by Individual Direct Banking company All flats are sold of flats are sold
I Individual Direct Selling
Agents (DSAs)
Selling Agents
other than BC,
or NBFC in TT.

P ship firm or LLP

Proportionate

€✓
12. Services provided by Business Banking company, Premium is exempt
Business facilitator to a facilitator located in TT. amount is exempt
banking company
1 . Services provided by Agent Agent of Business ¥*i
"

5hr4 Got -

of Business Correspondent Business correspondent, ÷ Édiance☐

③ Exempt
☐ .am >

Correspondent located in TT =
'
" >

- 3hr -
- RCM ✓
war
CHARGE OF GST 22
 Beg #LetsCrackTax CA Amit Mahajan BE
15. Renting of motor Any person Any BODY
vehicles designed to (Other than body CORPORATE
carry passengers (NOT corporate who located in TT
PASSENGER TRANSPORT supplies service to ①
SP SR

SERVICES) here the cost a body corporate BK

Run
>
BC

of fuel is included in the and doesn’t issue OBC

OBC
e Itc available only
of that

linear
service having similar
consideration charged an invoice charging ② OBC ③ Repair ,ok× Business
.

from the service recipient, CGST @ 6% to Fiim ¥ >

OBC
^ BC
5% ,
again ,
provided to a body service recipient.) 12%
+
I
ITCX
15k
✓
7

ITC ✓
corporate Bally

1 . Services of lending of Lender i.e. a person Borrower i.e.

securities under Securities who deposits the a person who
✓ Lending Scheme 1 7 of
Securities and Exchange
securities registered
in his name or in
borrows the
securities under the ABC Ltd. is GST registered with aggregate turnover of Rs. 4 crores. It has
Board of India (SEBI) the name of any scheme through
received the following services from different persons during January 2019.
other person duly an approved
authorised on intermediary of Discuss the applicability of reverse charge to the above transactions.
his behalf with SEBI. (a) Service by Department of Posts by way of speed post s
an approved (b) For transportation of goods, ABC Ltd. paid Rs. 50,000 to Indian Railways.
intermediary for the (c) ABC Ltd. has availed Manpower services from XYZ Ltd. Will your answer
purpose of lending differ if service provider is Mr. A.
under the scheme of (d) Renting of immovable property service provided by CG to ABC Ltd.
SEBI.
(registered business entity).
17. Any service supplied by Any person located Any person located
any person who is located in non- taxable in the taxable
in a non- taxable territory territory territory other (a) Nature of service is speed post provided by Department of Posts. RCM
to any person other than than non-taxable not applicable to these services. Supplier has to pay GST as forward
Provider
non- taxable online online recipient charge.
recipient Non taxable (b) Nature of service is transportation of goods provided by Indian
territory Railways. RCM not applicable to these services. Supplier has to pay
GST as forward charge. Ans
(c) XYZ Ltd. is liable to pay GST. Even if it is provided by Mr. A, treatment
Recipient Non
Am taxable territory Non
Man taxable territory Recipient
remain same i.e. service provide Mr. A, is liable to pay GST.
NON Taxable online Taxable online RP
(d) GST on services supplied by CG/SG/UT/LA by way of renting of
→
URP ←
recipient recipient immovable property to a registered person is payable under RCM.
Therefore, GST is payable under RCM by the recipient – registered
FCM RCM business entity.

CHARGE OF GST
OlDAR_ 23
 composition scheme
' to decide ?
-
-

y § How
traders ✓
for
small f
÷E§ analysis
•

,
. At present
! 1- Itcx cost-benefit
↳STR I
↳
]
" "T £90K
saving
-

-
""
Ill
-313 →
astr
t
↳

Fees : FIL Thus need for comp -

scheme .

,
g- , ☐ µ

opt for the composition scheme

IDK outflow
.

GST -

/ astmet-I-yokwfromthecuc.to
You cannot charge
only ☒
•

• file merit

± return .

take me
° 4° " cannot

& compliance
cosy ITC
.

Rate of
Cest
- concessional
 composition scheme .

1 I
IOCZA )
1012 )
IOCD / t

concessional Rate scheme

.

+
are not
who
✓ Those SP

Rest Service under (1) lot

raving
- .

Goods +
to
+ than
i. e. all Sps other
Thodasa
service '

Restaurant
service
Pree FY 's T /o a•
10% of
.

7. 5L

④
•
5,00 ,
ooo
Sec to CD / to (2)

trader
smart
☐ '

I l

other than SCS

Scs
t
tr
FY
to Pree
prec FY
→

to -

I 75L
I 1.5W
NVSTA
-

M3

section is ( 2A )
FTL
•
Limit -
to in pre FY -
 -8g#LetsCrackTax CA Amit Mahajan BE
-
1 . Renting of residential Any person Registered Person Rates under GST
dwelling 1. Maximum rate (IGST) – 40%
1 . Services supplied by a A person located Importer, located 2. Maximum SGST / CGST – 20%
✓ person located in non- in non- taxable in the taxable
=
taxable territory by way territory territory - Classification of the goods / services is the first step before
-
identifying the rate of GST
of transportation of Recipient - rates have been notified for services, vi ., 1.5%, 5%, 7.5%, 12%,
goods by a vessel from 1 % and 2 %
a place outside India up Provider - For certain specified services, IL rate of tax has been notified
Non-taxable - Services not covered under any specific heading are taxed at the
to the customs station of territory
rate of 1 % (CGST % and SGST % or IGST 1 %)
clearance in India Taxable territory - Gambling, admission to amusement facilities like casinos, race club,
sporting event – 2 %
Remember_
Remuneration Composition Scheme
to directors
1. The composition levy is an alternative method of levy of tax designed for
small taxpayers whose turnover is up to prescribed limit
T/O Limit in prec FY
TDS deducted under
TDS deducted u/s 192 other than Sec
192(Say Sec 194J) <1.5 Crores < 75 Lakhs

Other than SCS SCS

Employer-Employee No E’er-E’ee
MUSTA
relationship relationship Special Category States M3

Nagaland Uttarakhand Sikkim Tripura

NO GST GST RUM
Arunachal Pradesh Mizoram Manipur Meghalaya

&
2. OB ECTIVE - The objective of composition scheme is to bring simplicity
to the Cs
☐ir provided sesv
of
E- 2 h
the TDs eels 192
deducts
and to reduce the compliance cost for the small taxpayers
Cs
dir of
payt to a

Cs made a

194T
TDS 41s
2- 1L &
↳ RUM
✓ 3. The composition scheme is available to the suppliers of goods and
restaurant service

CHARGE OF GST 24
Bagg #LetsCrackTax CA Amit Mahajan BE
Limit for providing other service
Aggregate T/O – PREVIOUS YEAR – For eligibility purpose
As per second proviso to section 10(1), composition suppliers are permitted to
supply other services upto Taxable Exempt Export Inter Interest on TOTAL
- 10% of turnover in the state or UT in the preceding FY or Supply supply or of state - Deposit
-

- Rs.5,00,000 NIL rated goods / supply - Advance

HIGHER supply services :- Loan
Mnfg This
Eg. Mr Mahajan is engaged in supply of goods. His aggregate turnover in Supplier amount
preceding FY is Rs. 60 lakh. Since his aggregate turnover in the preceding FY or Dealer should be
does not exceed Rs. 1.5 crore, he is eligible for composition scheme in current Restaurant < 1.5 Cr
FY services / 75L/ - L
Rates of taxes (Of ALL
offices
Dealer / Restaurant
Manufacturer Trader service Sec together
10(2A) regd
1% 1% 5% under 1
PAN)
Aggregate Taxable supply Aggregate
T/O of CY of G/S of CY T/O of CY

Aggregate T/O – CURRENT YEAR – For payment of TAXES

Taxable Exempt Export Inter Interest on TOTAL
Supply supply or of state - Deposit
NIL rated goods / supply - Advance
supply services - Loan
Mnfg HA NA .

XX * 1%
Supplier XX * 1%
or Dealer
.

Restaurant XX * 5%
services
Cs .
Ns Sec XX * 6%
10(2A)

CHARGE OF GST 25
 Bagg #LetsCrackTax CA Amit Mahajan BE
of goods through an ecommerce portal, unless such portal is owned by the
Payment of same person can opt
✓
Filing of Trader
-

TAXES GSTR-4
RETURN →
(iv) Restriction on manufacture of notified goods The person opting for the
scheme should not be a manufacturer of certain goods as are notified in
Quarterly Annually this regard. However, there is no restriction in case the person is engaged
in trading of such goods.
Section 1 (2A) Presumptive Scheme For Service Provider Notified goods - Ice cream and other edible ice, whether or not containing
cocoa, Pan Masala, All goods i.e. Tobacco and manufactured tobacco
substitutes, Aerated water, Fly ash bricks or fly ash aggregate with 90%
For other service Agg TO in the or more fly ash content; Fly ash blocks, Bricks of fossil meals or similar
providers prec FY 6%
siliceous earths, Building bricks, Earthen or roofing tiles

< 50 Lakhs
Conditions for Sec 1 (1), 1 (2), 1 (2A)
✓ (i) Restricted from making supply of goods which are not liable to GST
Certain goods are not liable to GST, e.g. petroleum, alcohol for human
consumption, etc. – a person opting for composition scheme shall not be
entitled to make any supply of non-GST goods.
-
(ii) Restricted from effecting inter-State outward supplies The taxable
-
(v) Would be applicable for all transactions under the same PAN
Composition scheme would become applicable for all the business verticals
having separate registrations within the State and all other registrations
outside the State which are held by the person with same PAN.
✓
(vi) Shall not collect tax Taxable person opting to pay tax under the
composition scheme is prohibited from collecting tax on the outward
supplies
✓
(vii) Not entitled to input tax credit Taxable person opting to pay tax under
the composition scheme will not be eligible to claim any input tax credits

=
person should not affect any inter-State outward supplies. This means that
even stock transfers to branches outside the State would not be permitted.
However, in so far as it relates to inter-State inward procurements /
receipts, there is no restriction.
(vii) Such supplier shall mention the words “composition taxable person not
eligible to collect tax on supplies” at the top of the bill of supply. (not
allowed to issue tax invoice)

-
(ix) NRTP and CTP cannot opt for the composition scheme
(iii) Restricted from making supplies through an e-commerce operator A
person opting for composition scheme is not allowed to affect any supply

CHARGE OF GST 26
-3GB #LetsCrackTax + to .
CA Amit Mahajan BE
-
Expected Who cannot opt for composition scheme?
① PAN
•

as
in
them 1. Ice cream and other edible ice, whether or not containing cocoa
2. Pan Masala
3. All goods i.e. Tobacco and manufactured tobacco substitutes
4. Aerated water
5. Fly ash bricks or fly ash aggregate with 0% or more fly ash content;
Mumbai Rajasthan Bihar Fly ash blocks
6. Bricks of fossil meals or similar siliceous earths
7. Building bricks
. Earthen or roofing tiles
Registered under same PAN
Other points
1. Where any registered person who has availed of ITC opts to pay tax
I want to opt for under this notification, he shall pay an amount, by way of debit in the
Possible? NO electronic credit ledger or electronic cash ledger. Said amount shall
composition scheme
only for Mumbai be equivalent to the ITC in respect of inputs held in stock and inputs
contained in semi-finished or finished goods held in stock and on capital
Office goods as if the supply made under this notification attracts the provisions
of section 1 (4) of the CGST Act and the rules made thereunder.
2. Tax on inward supplies on which he is liable to pay tax under section
Opting for Composition scheme is PAN BASED and NOT location based 9(3)/9(4) (reverse charge) at the Normal applicable rates

Consider Prev. Year’s TO of Other points

all offices together
(< 1.5Cr) (NOT Individual)
Apply for CY for ALL
OFFICES Person providing exempted service is eligible for composition scheme
A person supplies restaurant service and also supplies any exempt services
MH including services by way of extending deposits, loans or advances in so far
as the consideration is represented by way of interest or discount, the said
person shall not be ineligible for the composition scheme

Further, while computing aggregate turnover of such person in order to

determine his eligibility for composition scheme, Value of Supply of any
•
exempt services including services by way of extending deposits, loans or
advances in so far as the consideration is represented by way of interest or
discount, shall not be taken into account
ITC✗-
TH '

If any one office breaches any one of the conditions –

Memory technique to be discussed in the lecture all the offices would become INELIGIBLE

CHARGE OF GST 27
 composition

②fgg
• Person can opt for the scheme

-fgg #LetsCrackTax only

after
taking
"
the registration .

CA Amit Mahajan
Step 1
Reg
Rule
-
.

.Slep2-cnooseMormalscheme/f

I
Registration - A person applying for registration may give option for composition scheme in part B of REG-01. Such intimation shall be considered only after the
grant of registration to the applicant and his option to pay tax under composition levy shall be effective from the date from which registration is effective

Rule

WHICH INTIMATION AND EFFECTIVE FROM WHICH DATE?

1. INTIMATION - A registered person who opts to pay tax under composition levy scheme shall electronically file an intimation in Form C P-02 form on the
-

GST Common Portal, prior to the commencement of the FY for which said option is exercised.
=
2. EFFECTIVE FROM WHICH DATE? Option to pay tax under section 10 shall be effective from the beginning of the next FY but such person shall also furnish
statement in ITC-03 for reversal of tax credit within a period of 60 days from the date of commencement of composition scheme

Rule 5

-
NRTP and CTP - Such person should be neither casual taxable person nor non - resident taxable person

Rule
WITHDRAWAL OF SCHEME
✓ If turnover exceeds Rs. 1.5Cr he will be shifted to normal scheme with immediate effect and he will give an intimation in CMP-04 within 7 days of exceeding the
limit.

Any person who is in the composition scheme may opt out of the scheme at any time and shall file an application in C P-04 and he will get shifted to normal
scheme with immediate effect. He shall be required to submit ITC-01 for availing ITC within 30 days from the date of withdrawal. Such withdrawal shall be
✓applicable to all the places in all the states/Uts

Denial of option to pay tax under the composition scheme by tax authorities.
Where the proper officer has reasons to believe that the registered person was not eligible to pay tax under composition scheme or has contravened the provisions
of the CGST Act, he may issue a show cause notice (SCN) to such person

CHARGE OF GST
Dione Chairge 28
 Effective Date of composition scheme

I t
"
scheme
New Reg Earlier Regular
For
to now wants to opt
scheme
position
.

Csm
717123
Tfo crossed 2s L -

My I
"
10/8/23 ✓ Effective
Remember
applied for
-

Always
I
reg
-

the
start from
will ALWAYS
filled Past B of REG -01 ✓ Dale
I
of the
neat Fy after filing
17/8/23 it day
Reg certificate
"

Got the - "

GMP oh

appt Form
-

on
-

Effective Date of
→
17/8/23 tu la - as - Ms ✓

c. s ?
applying
.
21 →
Ns ✓
2s
FY
-

camp scheme
.

for
.

8/9/21 -
I applied
•n

Effective
Date of
>
1/4/22
c. s
applying
.