GST Charts June - Dec 23

CS EXECUTIVE
TAX LAW AND PRACTICE
GST
(CHART BOOK)
FOR DEC 23
+91 8888 235 235 CMA VIPUL SHAH
GST – CHART BOOK - INDEX
Sr. Chapter Name Page No.

1 GST IN INDIA - AN INTRODUCTION 1.1 to 1.11
2 CHARGE OF TAX & APPLICATION OF CGST & IGST 2.1 to 2.7
3 SUPPLY UNDER GST 3.1 to 3.15
4 COMPOSITION SCHEME 4.1 to 4.9
5 PLACE OF SUPPLY 5.1 to 5.16
6 TIME AND VALUE OF SUPPLY 6.1 to 6.12
7 PAYMENT OF TAX 7.1 to 7.10
8 INPUT TAX CREDIT 8.1 to 8.12
9 REGISTRATION 9.1 to 9.9
10 RETURNS 10.1 to 10.15
INDEX
Let’s Start…
11 TAX INVOICE CREDIT & DEBIT NOTE 11.1 to 11.7
12 ACCOUNTS, RECORDS & E WAY BILL 12..1 to 12.6
13 ASSESSMENT & AUDIT & INSPECTION, SEARCH, SEIZURE & ARREST 13.1 to 13.8
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GST – CH.01 - GST IN INDIA - AN INTRODUCTION
01 GST IN INDIA - AN INTRODUCTION
CMA VIPUL SHAH 98812 36536 YES ACADEMY FOR CS & LAW | 8888 235 235 1.1
WHAT IS
TAX?
DIRECT TAX
It is a kind of charge Direct Taxes that is
Tax is money that people have to pay to Government, imposed directly taxpayer & Paid directly
which is used to provide public services. to Government by the persons on who it

Person Government is imposed. It cannot be shifted to other.
INDIRECT TAX
WHY GST IS IMPORTANT? • An VAT dealer on his subsequent
If taxpayer is just a conduct [Pipeline] at
into-state sale of goods, charged
every stage the tax-incidence is passed on
In earlier indirect tax regime, a manufacturer of VAT on value comprising of [basic
till it finally reaches the consumer, who
excisable charged excise duty [CENVAT] & value value + excise duty charged by
really bears the brunt of it, such tax is
added tax [VAT] on intra-State sale of goods. manufacturer + profit by dealer].
indirect tax. Indirect tax is one that can be
• Set off of one against the credit of shifted by taxpayer to someone else.
• Moreover, CENVAT was applicable
another was not possible as
only at manufacturing level & not at
CENVAT was a central levy and
distribution levels.
State-Level VAT was a State levy.
Meaning GST is a value

GST offers continuous chain of tax
added tax levied on
credit from producer's point/service
manufacture, sale &
consumption of goods &
Services.
GST provider's point up to retailer's level
/ consumer's level thereby taxing
only value added at each state of
supply chain.
GST STRUCTURE IN INDIA
Idea of GST mooted Talks of GST Gained momentum

[proposed] by Kelkar in 2014 when NDA Govt. tabled
On 27th March, 2017
Task Force in 2004. the Constitution [122nd
Central GST legislations
Amendment] Bill, 2014 on GST
= Central Goods and
in Parliament on 19th
Services Tax Bill, 2017,
December, 2014.
Union Territory Goods
and Services Tax Bill,
2017 and Goods and
Services Tax GST Lok Sabha passed these bills on
[Compensation to 29th March, 2017 & with the
States] Bill, 2017 were France was receipt of President's assent on
introduced in Lok Sabha. first country 12th April, 2017, the Bills were
Now about 160
to implement enacted.
countries across
GST in the
the world have
year 1954.
adopted GST.
DUAL GST
1 2 3 4
Central & States
India has adopted Central has power
simultaneously
dual GST model in to tax intra-state
levy GST on UT without State
view of the federal sales & States are
taxable supply of Legislatures Andaman
structure of the also empowered
goods or services and Nicobar Islands,
country. to tax services.
or both which, Lakshadweep, Dadra
takes place within and Nagar Haveli &
a Sate or Union Daman and Diu and
Territory. Chandigarh, Ladakh are
governed by UTGST
Act, 2017 for levying
UTGST.
DUAL GST
5 6 7 8
Central & States States & UT with
simultaneously their own GST is destination GST extends to
levy GST on legislatures Delhi, based tax whole of India
taxable supply of Puducherry, & applicable on all including J & K.
goods or services Jammu and transactions
or both which, Kashmir have their involving supply of
takes place within own goods & services
a Sate or Union
Territory.
W H I C H TA X E S A R E S U B S U M E D I N G S T ?
CVD AND SPECIAL CVD OF

EXCISE DUTY VAT ENTRY TAX AND OCTROI
CUSTOM
CENTRAL STATE
TAX ON
SERVICE TAX CST ENTERTAINMENT TAX
ADVERTISEMENT
W H I C H TA X E S A R E N O T S U B S U M E D I N G S T ?
EXCISE DUTY ANTI-DUMPING DUTY PROPERTY TAX STAMP DUTY
CENTRAL STATE
ROAD AND
EXPORT DUTY ELECTRICITY TAX
PASSENGER TAX
TOLL TAX
CONSTITUTIONAL PROVISIONS
ENTRY NO 84 OF UNION LIST
Articles 245 Articles 245 Articles 246
Articles 245 of Constitution Duties of excise on the following goods manufactured

Articles 265 Prohibits
deals with relationship Article 246 it gives or produced in India, namely:
arbitrary [individual
between Union & States. respective authority to
discretion] collection of tax,
Parliament may make laws Union & State
it states that 'no tax shall
for whole or any part of Governments for levying
be levied or collected
territory of India, & tax.
except by authority of law”. Motor Spirit
legislature of State may Petroleum High Speed
(Commonly
Crude Diesel
known as petrol)
make laws for whole or any
part of State.
LIST – III
LIST-I UNION LIST LIST –II STATE LIST
CONCURRENT LIST
it contains matters in
it contains matter in
respect of which it contains matters in Tobacco and
respect of which SG has Aviation turbine
parliament [CG] has Natural Gas
fuel; and
Tobacco
exclusive right to make law. respect of which both CG & products.
exclusive right to make law.
SG have power to make
CMA VIPUL SHAH 98812 36536 laws. YES ACADEMY FOR CS & LAW | 8888 235 235 1.8
ENTRY NO 51 OF STATE LIST

ARTICLE 246A
ED on Alcoholic Liquor, Opium, Indian Hemp & other Narcotic Drugs
ENTRY NO 54 OF STATE LIST 1. Notwithstanding anything contained in

articles 246 and 254, Parliament, and,
Taxes on the sale of petroleum crude, High Speed Diesel, Motor Spirit (Commonly known as subject to clause (2), the Legislature of
petrol), natural, gas aviation turbine fuel and alcoholic liquor for human consumption, but every State, have power to make laws
not including sale in the course of interstate trade or commerce or sale in the course of with respect to goods and services tax
international trade or commerce of such goods.”; imposed by the Union or by such State.
ARTICLE 269A : LEVY AND COLLECTION OF GST ON INTER-STATE SUPPLY

2. Parliament has exclusive power to
2. Import of Goods or services or both make laws with respect to goods and
1. Levied & collected by Government of into India deemed to be in the course services tax where the supply of goods,
India & apportioned between Union & of inter-state trade or Commerce. This or of services, or both takes place in the
States as per law. will give power to CG to levy IGST on course of inter- State trade or
import transactions. commerce.
LEGAL FRAMEWORK
GST COUNCIL: ARTICLE 279A

Union Finance Minister is
Article 279A empowers chairman of this Council &
President to constitute a joint President constituted for GST Ministers in charge of Finance /
forum of Centre & States Council on 15th September, Taxation or any other Minister
namely, Goods & Services Tax 2016. nominated by each States & UTs
Council [GST Council]. with legislatures are its
members.
01 02 03
GST Council make Centre has weightage of one-

recommendations to Union & Every decision of GST Council third of total votes cast and
States on important issues like taken by majority not less than votes. All SG taken together has
tax rates, exemptions, threshold ¾ of weighted votes of weightage of two-thirds of total
limits, dispute resolution etc. members present & voting. votes cast, in that meeting.
04 05 06
LEGISLATIVE FRAMEWORK
GST COMMON PORTAL
Common GST Electronic Portal www.gst.gov.in a website managed by GSTN, a
company incorporated u/s. 8 of Companies Act, set by Govt. to establish a uniform interface
for tax payer & a common & shared IT infrastructure between Centre & States.
GST – CH.02 - CHARGE OF TAX & APPLICATION OF CGST & IGST
02 CHARGE OF TAX & APPLICATION OF CGST & IGST
SEC 9(1) CGST SEC 9(3) REVERSE CHARGE ON SUPPLY OF GOODS SEC 9(5) ON SPECIFIED CATEGORY OF
OR SERVICES SERVICES
• Subject to the provisions of sub-section
(2), the shall be levied a tax called the GST paid by e-commerce operator
• Recipient Pay GST on notified categories of
Central Goods and Services Tax on all (ECO)
supply of goods or services.
intra-state supply of • Supplied through E-Commerce
• All provisions of GST Act apply to recipient, as
• On value u/s 15 paid by Taxable person Operator
if he is person liable to pay Tax.
• Goods or services or both Except on • Hotel , Restaurant Service,
Alcoholic liquor Housekeeping and Cab
• Max Rate 20%

CGST ACT 2017
SEC 9(4) REVERSE CHARGE ON GOODS OR
• SEC 9(1)
SEC 9(2) GOODS OUT OF GST SERVICE RECEIVED FROM UNREGD SUPPLIER • SEC 9(2)
• SEC 9(3)
• Petroleum Crude, • Registered Person Pay GST on supply of
• SEC 9(4)
• High Speed Diesel, taxable goods/ services received from
• SEC 9(5)
• Motor Spirit (Petrol) unregistered supplier
• Natural Gas &
• Aviation Turbine Fuel
• If turnover crosses limit of registration then Hotel and Housekeeping will have to
pay GST and not ECO except cab operator it is always paid by ECO.
• If above services are directly provided then GST will be applicable to service
provided if turnover crosses registration limit.
PROVISO 9(5)
• If ECO doesn't have Physical Presence in TT – Person Representing ECO
• If ECO doesn't have Physical presence in TT and not having Representative in TT –
NOTES
ECO shall Appoint person for paying GST.
• All the provisions apply to ECO (electronic commerce operator) as if he is supplier
liable to pay tax.
Sec 5(1) IGST

SEC 5(2) GOODS SEC 5(3) REVERSE CHARGE ON SUPPLY OF GOODS
• Subject to the provisions of sub Section (2), there OUT OF GST OR SERVICES
shall be levied a tax called the integrated goods • Petroleum • Same as Sec 9(3)
and services tax All inter-state supply of crude, high SEC 5(4) REVERSE CHARGE ON GOODS OR
SERVICE RECEIVED FROM UNREGD SUPPLIER
• Goods or Service speed diesel,
• Same as Sec 9(4)
• Except on Alcoholic liquors motor spirit
• On value u/s 15 paid by Taxable person (for (petrol), natural SEC 5(5) ON SPECIFIED CATEGORY OF SERVICES
service) gas & Aviation • Same as Sec 9(5)

• On value u/s 14 of Custom Act (for goods) Turbine Fuel
• Max Rate 40%
IGST ACT 2017
• SEC 5(1)
Subject to the provision of Section 10, supply • SEC 5(2)
of goods where the location of the supplier • SEC 5(3)
and the place of supply of goods are in the • SEC 5(4)
same State or same Union territory shall be • SEC 5(5)
INTRASTATE SUPPLY treated as intra – State supply:
1
Subject to the provisions of Section 10, supply

Supply of services imported into the territory
of goods, where the location of the supplier
of India shall be treated to be a supply of
and the place of supply are in:
services
4
a. 2 different States;
b. 2 different Union Territories; or
c. A State and a Union Territory
1
Supply of goods or services or both,
a. When the supplier is located in India and
Supply of goods imported into the territory of the place of supply is outside India;
India, till they cross the customs frontiers of b. To or by a Special Economic Zone
India, developer or a Special Economic Zone INTER STATE SUPPLY

2
unit; or
c. In the taxable territory, not being an intra
Subject to the provisions of Section 12, supply
state supply and not covered elsewhere
of services, where the location of the supplier
in this Section.
and the place of supply are in:
Shall be treated to be a supply of goods or
a. 2 different States;
services or both in the course of inter – state
b. 2 different Union Territories; or
3 trade or commerce. 5
c. A State and a Union Territory
Subject to the provision of Section 10,

supply of goods where the location of
the supplier and the place of supply of INTRASTATE SUPPLY
goods are in the same State or same

Union territory shall be treated as intra 1
– State supply:
SECTION 9 OF IGST ACT

Notwithstanding anything contained in this Act:
• Where the location of the supplier is in the territorial waters, the location of such supplier; or
• Where the place of supply is in the territorial waters, the place of supply, shall, for the purposes of
this Act, be deemed to be in the coastal State or Union territory where the nearest point of the
appropriate baseline is located.
Z E R O R AT E D S U P P LY
SEC 16 OF IGST ACT ZERO RATED SUPPLY
1. “Zero Rated Supply” means any of the

following supplies of goods or services Zero
rated or both, namely:
2. ITC available in the form of Refund.
a. Export of goods or services or both; or
NOTE: In case of Exempt supply ITC not
b. Supply of goods or services or both to a
available.
Special Economic Zone developer or a Special
Economic Zone Unit
GST – CH.03 - SUPPLY UNDER GST
03 SUPPLY UNDER GST
DEEMED
DISTINCT A PERSON WHO HAS OBTAINED OR IS REQUIRED TO OBTAIN MORE THAN ONE
PERSON U/S REGISTRATION
25(4)
• Whether in one State or Union Territory or
• More than one State or Union Territory shall,
• In respect of each such registration, be treated as distinct person for the
purposes of this Act
ESTABLISHMENT IN DIFFERENT STATE

• Where a person who obtained or is required to obtain registration in a State
or Union territory in respect of an establishment, has an establishment in
another State or Union Territory, Then such establishment shall be treated as
establishment of distinct persons for the purposes of this Act.
ESTABLISHMENT IN ANOTHER COUNTRY – EXPLANATION TO SEC 8 OF IGST ACT

ESTABLISHME • Where a person has establishment in India any other establishment outside
NT IN India. Then such establishment shall be treated as establishment of distinct
DIFFERENT person
STATE U/S
CMA 25(5)
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TAXABLE • Means taxable person is a person who is registered or liable to be registered u/s. 22 or 24.
PERSON • Unregistered person liable to be registered is a taxable person.
SEC 2 (107)
• Voluntary registered is also a taxable person.
means a person who occasionally undertakes transactions

CASUAL • involving supply of goods or services or both CASUAL
TAXABLE TAXABLE
PERSON • in the course of furtherance of business, PERSON
SEC 2(20) • whether as principal, agent or in any other capacity, SEC 2(20)
• in a State or a Union territory where he has no fixed place of business
• means any person who

NON- means any person who occasionally undertakes transactions
RESIDENT owns, operates or manages
• Involving supply of goods or services or both,
TAXABLE digital or electronic facility
PERSON • Whether as principal or agent or in any other capacity,
SEC 2(77) or platform for electronic
• But who has no fixed place of business or residence in India
commerce
CTP & NRTP
• The threshold limits for registration would not apply and he would
be required to obtained registration irrespective of his turnover;
• He is required to deduct an amount as tax out of the consideration

KEY NOTES paid or payable by him to the actual supplier of goods or services
or both made through such operator;
Supplies taxable at a 'NIL' rate of tax;

CONSIDERATION U/S. 2(31) OF CGST ACT
EXEMPT EXEMPT SUPPLIES In relation to supply of goods or services or

Supplies that are wholly or partially exempted
SUPPLY COMPRISE THE 3 TYPES OF
U/S 2(47) from CGST or IGST, by way of a notification; both includes any payment made or to be
SUPPLIES
made, whether in money or otherwise, for
Non-taxable supplies supply of goods or services or both, but shall

not include subsidy given by CG or SG.
Means every kind of movable property other than money & securities but includes However, deposit given for supply of goods or
actionable claim, growing crops, grass & things attached to or forming part of land services or both not considered as payment
GOODS U/S. which are agreed to be severed before supply or under a contract of supply.
2(52) OF CGST unless supplier applies such deposit as
ACT consideration for said supply.
But Under GST, Actionable claim relating to lottery, betting & gambling only will be
regarded as goods
Services means anything other than goods, money and securities but includes
activities relating to the use of money or its conversion by cash or by any other
mode, from one form, currency or denomination , to another form, currency or
SERVICE U/S denomination for which a separate consideration is charged.
2(102)
For removal of doubts, it is hereby clarified that the expression “services” includes
facilitating or arranging transactions.
Any trade, commerce, Manufacture, profession, Provision by A club, association, society, or any Any activity or transaction
vocation, adventure, wager or any other similar such body of the facilities or benefits to its Undertaken by CG, a SG or
activity, whether or not it is for a pecuniary members. any local authority in which
[relating to money] benefit; they are engaged as public
authorities.
1 5
9
Any activity Or transaction in connection with or Admission for a consideration, a person to any
incidental or ancillary to sub-clause (a); premises;
2 6
Any activity or transaction in the nature of (a) furtherance of his trade, profession or vocation;
above, whether or not there is volume, frequency,
continuity or regularity of such transaction;
3 7
BUSINESS
Supply or Acquisition of goods, capital goods & Activities of or a race club Activities of a race club U/S 2(17)
services for commencement or closure of including by way of totalisator or a licence to
business; book maker or Activities of a licensed book maker
in such club
4 8
• Wherein transfer of property in goods (whether as

goods or in some other form) is involved in the
execution of such contract
• Of any immovable property

WORKS
CONTACT
RELATED PERSON PERSONS SHALL BE DEEMED TO BE RELATED IF
In the course or furtherance of business

includes all such activities which are
a. Such persons are officers or directors of one another's businesses; being carried out by any person during
b. Such persons are legally recognized partners in business; the course of running of business and
c. Such persons are employer and employee; also activities which would further the
d. any person directly or indirectly owns, controls or holds 25% or more of the interest of business.
outstanding voting stock or shares of both of them; The term 'supply' is from the point of
e. One of them directly or indirectly controls the other; view of person who is supplying and
f. Both of them are directly or indirectly controlled by a third person; not person who is receiving the supply.
g. Together they directly or indirectly control a third person; or they are members of Thus, if supplier is not in the business of
the same family; supplying the goods or services, GST is
h. Persons who are associated in the business of one another in that one is the sole not applicable [and consequently, the
agent or sole distributor or sole concessionaire, howsoever described, of the other, recipient will not be liable to pay tax
under reverse charge].
SUB SECTION (2)
SUB SECTION (1) Notwithstanding anything contained in subsection (1)
a. All forms of supply of goods or service or both such as a. Activities for transactions specified in schedule III, or
sale, transfer, barter, exchange, licence, rental, lease, or b. Such activities for transactions undertaken by the central government a
disposal made or agreed to be made for a consideration State government or any local authority in which they are engage as
by a person in the course or furtherance of business public authorities as may be notified by the government on the
aa. Inserted vide Finance Act 2021 retrospectively with recommendations of the Council shall be treated as neither as a supply
effect from 01/07/2017 The activities or transactions, by of goods nor supply of service,
a person, other than an individual, to its members or The central government vide notification no 25/ 2019 – CT (Rate) dated 30-
constituents or vice-versa, for cash, deferred payment or
other valuable consideration. 09-2019 W.e.f. 30-09- 2019 has notified that service by way of grant of
a. Importation of services for a consideration whether or alcoholic liquor licence, against consideration in the form of licence fee or
not in the course of furtherance of Business and
b. The activities specified in schedule 1 made or agree to be application fee or by whatever name it is called when undertaken by the
made without a consideration state governments in which they are engaged as public authorities, shall be
treated neither as a supply of goods nor a supply of service.
SUB SECTION 1(A)
Where certain activities or transactions constitute a

supply in accordance with the provisions of SUB SECTION (3)
subsection 1 they shall be created either as supply of Subject to sub-section (1),(1A) and (2) the government may on the
goods or supply of services as referred to in schedule recommendations of the Council specify by notification the transactions that
II subsection 1 a inserted retrospectively by CGST are to be treated as
(amendment) act 2018 w e f 01 07 2017 a. A supply of goods and not as a supply of services or,
b. Supply of services and not as a supply of goods.
Supply of goods by principal to his agent
PARA Permanent transfer or disposal of business where agent supply such goods on
PARA
1 assets where input tax credit has been availed
3 behalf of principal; or by agent to his
on such assets. principal where agent receive such
goods on behalf of principal.
• Supply of goods or services or both between

related persons or between distinct persons as
specified u/s. 25, when made in the course of Import of services by person from
PARA furtherance of business.
PARA related person or from any of his other
2 • Gifts not exceeding 50000/- in a financial year 4 establishments outside India, in the
by employer to employee shall not be treated course or furtherance of business.
as supply of goods or services or both.
• Note
• Only that agent is covered here who issues invoice in his name to recipient.
• Here agent also includes Del Credere Agent if he issues invoice in his name and in such case interest charged by DCA is also treated as part of
supply.
SEC 7 (1A) (C ) SCHEDULE II : ACTIVITIES TO BE TREATED AS SUPPLY OF GOODS OR SUPPLY OF SERVICE
TREATED AS GOODS
01 02 03
If goods forming part of If person forming part of assets deemed Supply of goods by any
assets transferred or to be supplied by him in the course or unincorporated association
disposed of so as no furtherance of his business immediately or body of persons to a
longer to form part of before he ceases to be a taxable person, member thereof for cash,
those assets, whether unless business is transferred as going deferred payment or other
or not for consideration, concern to another person; or business is valuable consideration.
is supply of goods; carried on by personal representative
who is deemed to be a taxable person.

TREATED AS SERVICE
01 02 03
Any lease, tenancy, easement, Any lease or letting out of building a Any treatment or process which is
licence to occupy land is a supply commercial, industrial or residential complex for business applied to another person's goods is a
of services. or commerce, either wholly or partly, is a supply of supply of services.
services.
04 05 06
Renting of immovable property; Agreeing to obligation to refrain from an act, or to tolerate Transfer of right to use any goods for
an act or a situation, or to do an act; & any purpose for cash, deferred payment
or other consideration
TREATED AS SERVICE
07 08 09
Temporary transfer or Permitting the use

Goods held or used for purposes Construction of complex, building, civil structure or part or enjoyment of any intellectual
of business put to any private thereof, including complex or building intended for sale property right;
use or are used, or made to buyer, wholly or

available to any person for use, partly, except where entire consideration received after
for any purpose other than issuance of completion certificate, by competent 10
purpose of business, whether or authority or after its first occupation, whichever is
not for consideration, is a supply earlier. Development, design, Programming
of services; customization, adaptation,
upgradation, enhancement,
implementation of information
technology software;
GST – CH.03 - SUPPLY UNDER GST For DEC 22
TREATED AS GOODS
11
COMPOSITE SUPPLY:
Following composite supplies treated as a supply of services
Works contract as defined in clause (119) of Section, 2; &
Supply by way of or as art of any service, of goods, being food or other article for human consumption or any
drink [other than alcoholic liquor], for cash, deferred payment or other consideration
SCHEDULE III NEGATIVE LIST UNDER GST
a. Services by an employee to the employer in c. Services of funeral, burial, crematorium or

mortuary including transportation of the g. Supply of goods by the
the course of or in relation to his
deceased. Sale of land and sale of building consignee to any other
employment.
where entire consideration has been person by endorsement of
received after issuance of completion document of tile to the
certificate. goods after the goods have
b. Services by any Court or Tribunal been dispatched from the
established under any law for the time being port or origin located outside
in force. d. Actionable claims other than lottery, betting India but before clearance
• Functions performed by the MPs, MLAs, and gambling. for home consumption.
Members of municipality and Member of
other local authorities.
• Duties performed by any person who holds e. Supply of goods from a place a non-taxable
any constitutional post. territory to a another place in the non-
• Duties performed by any person as a taxable territory without such goods
Chairperson or a Member or a Director in a entering in India,
body established by the Central Government
or a State Government or local authority and
who is not deemed as an employee before f. Supply of warehouse goods to any person
the commencement of this clause. before clearance from home consumption.
COMPOSITE AND MIXED SUPPLY (SEC.8 OF CGST)
COMPOSITE OR MIXED SUPPLY U/S. 8

TAX LIABILITY ON COMPOSITE OR MIXED SUPPLY DETERMINED IN THE FOLLOWING MANNER
a. Composite Supply comprising two or more supplies, one of which is a principal supply, treated as supply of such principal
supply; and
b. Mixed supply comprising two or more supplies treated as supply of that particular supply which attracts highest rate of
tax.
Key Note: - Supply Should be at Single Price
GST – CH.04 - COMPOSITION SCHEME
04 COMPOSITION SCHEME
AGGREGATE TURNOVER SEC 2(6)
DEFFINATION
“AGGREGATE TURNOVER” MEANS THE
• All taxable supplies (excluding the value of inward supplies on which tax is payable by a person
• Exempt supplies
• Exports of goods or services or both and
• Inter-State supplies of person having same PAN to be computed on all India Basis
• But excludes
• Central Tax, State Tax, Union Territory Tax, Integrated Tax & Cess
TURNOVER IN A STATE SEC 2(112)
TURNOVER IN STATE OR “TURNOVER IN UNION TERRITORY” MEANS THE AGGREGATE VALUE OF

• All taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge
basis) and
• Exempt supplies made within a State or Union Territory by a taxable person
• Exports of goods or services or both and
• Inter-State supplies of goods or services or both made from the State or Union Territory by the said taxable
person
• But excludes Central Tax, State Tax, Union Territory Tax, Integrated Tax & Cess
ELIGIBILITY FOR COMPOSITION SCHEME SEC 10(1) CONDITIONS TO OPT

FOR COMPOSITION
ELIGIBILITY FOR COMPOSITION SCHEME SEC 10(1) SCHEME
• Notwithstanding anything to the country contained in this Act
• but subject to the provisions of sub sections (3) and (4) of section 9, a registered person, whose aggregate
turnover in the preceding financial year did not exceed 1.5 cr & 75 lakhs for notified areas rupees, may opt to
pay, in lieu of the tax payable by him, an amount calculated at such rate as may be prescribed.
THE NINE SPECIAL CATEGORY STATES ARE

• (i) Arunachal Pradesh (ii) Assam (iii) Manipur (iv) Meghalaya (v) Mizoram (vi) Nagaland (vii) Sikkim (viii) Tripura
(ix) Himachal Pradesh
• It may be noted that for the two remaining Special Category States viz., Jammu and Kashmir and Uttarakhand,
the turnover limit for composition levy will be 1.5 crore and not 75 lakhs.
RATE OF TAX OF THE

COMPOSITION LEVY
No Central State /UT Total Basis of

Categories of registered person
. Rate GST Rate Rate Calculation
Manufactures other than manufactures of such Turnover in
1. 0.5% 0.5% 1%
goods as may be notified by the government State
Suppliers making supplies referred to in Clause (b)
of part 6 of schedule II Example: Restaurant,
Turnover in
2. Catering, Mess or any other service contract where 2.5% 2.50% 5%
State
goods as food or drink as supplied for human
consumption
Turnover of
taxable supplies
3. Another supplier 0.50% 0.50% 1%
of goods and
service in State
Proviso
• Provided further that a person who opts to pay tax under clause (a) or clause (b) or
clause (c) may supply services (other than those referred to in clause (b) of paragraph
6 of schedule II), of value not exceeding 10% of turnover in a State or Union Territory
in the preceding financial year or 5 lakh rupees, whichever is higher.
Explaination
• For the removal
• of difficulties, it is hereby clarified that the value of supply of exempt 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 -
SEC 10(2) THE REGISTERED PERSON SHALL BE ELIGIBLE TO OPT UNDER SUB SECTION (1), IF:
a. He is not engaged in the supply of services other than supplies referred to in clause (b) of paragraph 6 of
Schedule II;
COMMENT: As we have seen in proviso to sec 10(1), that a person who opts to pay tax under clause (a) or
clause (b) or clause (c) may supply services (other than those referred to in clause (b) of paragraph 6 of schedule
II), of value not exceeding 10% of turnover in a State or Union Territory in the proceeding financial year 5 lakh
rupees, whichever is higher
b. He is not engaged in making any supply of goods or service which are not leviable to tax under this Act;
c. He is not engaged in making any inter – State outward supplies of goods or service;
d. He is not engaged in making any supply of goods or service through an electronic commerce operator who
is required to collect tax at source under section 52; and
e. He is not manufacturer of such goods as may be notified by the Government on the recommendations of
the Council
Tariff item HSN Code Description
2105 00 00 Ice cream and other edible ice, whether or not containing cocoa
2106 90 20 Pan Masala
2202 10 10 Aerated water
Chapter 24 All goods, i.e. Tobacco and manufactured tobacco substitutes
Manufacturers of fly ash bricks/blocks, building bricks, bricks of fossil meals, earthen/roofing tiles, etc.
COMPOSITION SCHEME FOR SUPPLIER OF SERVICES Sec 10(2A)
• Description of Supply
First supplies of goods or services or both upto an aggregate turnover of fifty lakh rupees made on or after the
1st day of April in any financial year, by a registered person.
• Rate of GST (CGST + SGST)
3% + 3% = 6% of value of all outward supplies of goods or services or both notwithstanding any other
notification issued u/s 9(1) or u/s 11 of the CGST Act.
RULE 3: INTIMATION FOR COMPOSITION LEVY
Persons already registered under Pre- Any registered person who opts to pay Any Persons who applied for
GST regime who opts to pay tax under tax under section 10 of CGST Act, 2017 registration
section 10 (i.e. composition scheme) (i.e. composition scheme)
Shall electronically file an intimation in Switches form Normal Scheme to Option to pay tax under section 10
FORM GST CMP-01, prior to the Composition Scheme: in Part B of FORM GST REG-01,
appointed day, but not later than 30 Shall electronically file an intimation in which shall be considered as an
days after the said day, or such further FORM GST CMP-02, prior to the intimation to pay tax under the
period as may be extended by the commencement of the financial year said section.
Commissioner in this behalf: for which the option to pay tax under
the aforesaid section is exercised and
shall furnish the statement in FORM
GST ITC-03 in accordance with the
provisions of subrule (4) of rule 44
within a period of 60 days from the
commencement of the relevant
financial year.
Shall furnish the details of stock, including the inward supply of goods received from unregistered
persons, held by him on the day preceding the date form which he opts to pay tax under the said section,
electronically, in FROM GST CMP-03 within a period of 90 days from the date on which the option for
composition levy is exercised
RULE 4: EFFECTIVE DATE FOR COMPOSITION LEVY

Assessee filing intimation Effective date of composition levy
Form GST CMP-01 Appointed Date
Registered person Beginning of financial year
Form GST REG-01
Effective date shall be from the date fixed under Rule 10(2) or Rule 10(3) of Chapter III of CGST Rules, 2017.
Rule 10(2) provides that if person has applied for registration within 30 days form the date when he is liable to obtain
registration, the effective date is when he is liable to be registered.
VALIDITY OF COMPOSITION LEVY [SECTION 10(3) READ WITH RULE 6]
a. Composition levy scheme remain valid so long as taxpayer satisfies all the conditions.
b. Scheme lapses from the day on which aggregate turnover during FY exceeds specified limit.
AFTER VALIDITY OF COMPOSITION LEVY SCHEME LAPSES
a. Taxpayer requires to pay normal tax u/s. 9(1) from the day he ceases to satisfy any of conditions prescribed.
b. Taxpayer requires to file intimation for withdrawal from the scheme in prescribed form within 7 days of occurrence of such event. [FORM GST CMP – 04]
c. Proper office to issue notice in FORM GST CMP-05 for cointervention of provision of the act.
d. Reply within 15 days in FORM GST CMP-06
e. the proper officer shall issue an order in FORM GST CMP – 07 within a period of thirty days of the receipt of such reply
f. Taxpayer allowed to avail ITC for stock of inputs & inputs contained in semi-finished or finished goods held in stock by him & on capital goods held by him
from date of withdrawal & furnish a statement, within 30 days of withdrawal, containing details of such stock held in prescribed form. FORM GST ITC – 01.
GST – CH.05 - PLACE OF SUPPLY
05 PLACE OF SUPPLY
SEC 2(50) FIXED ESTABLISHMENT

means a place (other than the registered place of business) which is
characterised by a sufficient degree of permanence and suitable
structure in terms of human and technical resources to supply SECTION 2(3) CONTINUOUS JOURNEY
services, or to receive and use services for its own needs; means a journey for which a single or more than one tickets or
invoice is issued at the same time, either by a single supplier of
service or through an agent acting on behalf of more than one
supplier of service, and which involves no stopover between
SEC 2(85) PLACE OF BUSINESS any of the legs of the journey for which one or more separate
a. Place from where the business is ordinarily carried on, and tickets or invoices are issued.
includes a warehouse, a godown or any other place where a
taxable person stores his goods, supplies or receives goods or
services or both;
b. A place where a taxable person maintains his books of account;
or SECTION 2(6) EXPORT OF SERVICES MEANS THE
c. A place where a taxable person is engaged in business through
SUPPLY OF ANY SERVICE WHEN
an agent, by whatever name called
• The supplier of service is located in India;
• The recipient of service is located outside India;
• The place of supply of service is outside India;
• The payment for such service has been received by the
BELOW ARE OTHER IMPLICATION IN RELATION TO PLACE supplier of service in convertible foreign exchange; and
OF BUSINESS • The supplier of service and the recipient of service are not
• Separate Records required to be maintained. merely establishments of a distinct person in accordance
• Departmental audit can be carried out in respect of such place. with Explanation 1 in section 8;
• For additional place of business in a state/ut no separate
registration is required.
SECTION 2(17) ONLINE INFORMATION AND DATABASE ACCESS OR RETRIEVAL SERVICES
means services whose delivery is mediated by information technology over the internet or an electronic network and the nature of which
renders their supply essentially automated and involving minimal human intervention and impossible to ensure in the absence of information
technology and includes electronic services such as,:
a. Advertising on the internet;
b. Providing cloud services;
c. Provision of e – books, movie, music, software and other intangible through telecommunication networks or internet;
d. Providing data or information, retrievable or otherwise, to any person in electronic form through a computer network;
e. Online supplies of digital content (movies, television shows, music and the like);
f. Digital data storage; and
g. Online gaming;
SECTION 2(16) NON-TAXABLE ONLINE RECIPIENT

means any government, local authority, governmental authority, an individual or any other person not registered and receiving online
information and database access or retrieval services in relation to any purpose other than commerce, industry or any other business or
profession, located in taxable territory.
PLACE OF SUPPLY OF GOODS OTHER THAN SUPPLY OF GOODS IMPORTED INTO OR EXPORTED FROM INDIA U/S.
10 OF IGST ACT.
SEC 10(1)(a) IF SUPPLY INVOLVES

SEC 10(1)(b) WHERE THE GOODS ARE
MOVEMENT OF GOODS BY SUPPLIER OR
RECIPIENT OR BY OTHER PERSON, DELIVERED
PLACE OF SUPPLY OF GOODS OTHER THAN SUPPLY OF GOODS IMPORTED INTO OR EXPORTED FROM INDIA U/S.
10 OF IGST ACT.
SEC 10(1)(c) WHERE SUPPLY

SEC 10(1)(d) INSTALLATION OR
DOES NOT INVOLVE MOVEMENT SEC 10(1)(e)
ASSEMBLY
OF GOODS
SEC 10(2) WHERE PLACE OF SUPPLY OF GOODS CANNOT BE SEC 12 WHEN PLACE OF SUPPLY OF
DETERMINED THE PLACE OF SUPPLY SHALL BE DETERMINED SERVICE WHERE LOCATION OF
IN SUCH MANNER AS MAY BE PRESCRIBED. SUPPLIER AND RECIPIENT IS IN INDIA
SEC 11 (IGST) PLACE OF SUPPLY OF GOODS IMPORTED OR

EXPORED FROM INDIA Where
SP and
SR both
are in
India.
Shall be the location
Imported into India Sec 12(2) PLACE OF SUPPLY OF SERVICES, EXCEPT
of importer
SERVICES SPECIFIED IN SUB-SECTIONS (3) TO (14),
• Made to registered person shall be location of

such person;
• Any person other than registered person shall
be, location of recipient where address on
Exported outside Location outside record exists; & location of supplier of services
India India in other cases.
Directly in relation to immovable property including

services provided by architects, interior decorators, By way of accommodation in immovable property for
surveyors, engineers & other related experts or organizing marriage or reception or matters related
estate agents, service provided by way of grant of thereto, official, social, cultural, religious or business
rights to use immovable property or for carrying out function; u/s. 12(3)(c).
or co-ordination of construction work; u/s. 12(3) (a)
PROVIDED THAT
PLACE OF SUPPLY OF SERVICES OF GIVEN IN NEXT
If location of immovable property or
COLUMN, SHALL BE LOCATION AT WHICH IMMOVABLE
boat or vessel is located or intended to
PROPERTY OR BOAT OR VESSEL, IS LOCATED OR be located outside India, place of
supply shall be location of recipient.
INTENDED TO BE LOCATED, U/S. 12(3).
By way of lodging accommodation by a hotel, inn, Any services ancillary to the services referred to in
guest house, home stay, club or campsite, & including clauses (a), (b) and (c), u/s. 12 (3) (d)
a house boat or any other vessel; u/s. 12(3)(b)
RULE 4 THE SUPPLY OF SERVICES ATTRIBUTABLE TO DIFFERENT STATES OR UNION TERRITORIES [AMENDMENT]
By way of lodging accommodation by al hotel, inn, The supply of services shall be treated as made in
guest house, the supply of services shall be each of the respective states or union territories in
treated as or campsite, by whatever name called proportion to the number of nights stayed in such
property
where such property is a single property located The supply of services shall be treated as made in
in two or more contiguous States or Union each of the respective States or Union territories, in
territories or both, and services ancillary to such proportion to the area of the immovable property
services lying in each State or Union territory
By way of lodging accommodation by a house The supply of services made be treated made in each
boat or any other The supply of services shall be of the respective States or Union territories, In
treated as vessel and services ancillary to such proportion to the time spent by the boat or vessel in
services each such State or Union territory Which shall be
determined on the basis of a declaration made to the
effect by the service provider.
PLACE OF SUPPLY OF SERVICES IN RELATION TO

PLACE OF SUPPLY OF RESTAURANT & CATERING SERVICES, PERSONAL
TRAINING AND PERFORMANCE APPRAISAL TO, U/S.
GROOMING, FITNESS, BEAUTY TREATMENT, HEALTH SERVICE
12(5)
INCLUDING COSMETIC & PLASTIC SURGERY SHALL BE, U/S. 12 (4).
PLACE OF SUPPLY OF SERVICES PROVIDED BY WAY OF ADMISSION TO

CULTURAL, ARTISTIC, SPORTING, SCIENTIFIC, EDUCATIONAL,
ENTERTAINMENT EVENT OR AMUSEMENT PARK OR ANY OTHER
PLACE AND SERVICES ANCILLARY THERETO, SHALL BE, U/S. 12 (6)
PLACE OF SUPPLY OF SERVICES PROVIDED BY WAY OF, ORGANIZATION OF

CULTURAL, ARTISTIC, SPORTING, SCIENTIFIC, EDUCATIONAL OR ENTERTAINMENT
EVENT INCLUDING CONFERENCE, FAIR, EXHIBITION, CELEBRATION OR SIMILAR
EVENTS; OR SERVICES ANCILLARY TO ORGANIZATION OF ANY OF EVENTS OR
SERVICES REFERRED IN CLAUSE (A), OR ASSIGNING OF SPONSORSHIP TO SUCH
EVENTS TO, U/S. 12 (7).
RULE 5 [AMENDMENTS]
PRESCRIBED FOR SUPPLY OF SERVICES

PLACE OF SUPPLY OF SERVICES BY WAY OF PLACE OF SUPPLY OF SERVICES ON BOARD A
ATTRIBUTABLE TO DIFFERENT STATE OR
TRANSPORTATION OF GOODS, INCLUDING BY CONVEYANCE, VESSEL, AIRCRAFT, TRAIN OR
UNION TERRITORIES UNDER SUB
MAIL OR COURIER TO, U/S. 12 (8) MOTOR VEHICLE, SHALL BE, U/S. 12(10)
SECTION (7) OF SECTION 12 OF THE SAID
ACT IN THE CASE OF
• Registered person location of such person;
• • Location of first scheduled point of
Shall be determined by application • Other than registered person, location at
of the generally accepted departure of that conveyance for the
which goods are handed over for their
accounting principles journey.
transportation.
PLACE OF SUPPLY OF PASSENGER

TRANSPORTATION SERVICE TO, U/S. 12 (9)
• If right to passage is given for future use and point of embarkation is not known at the
NOTE time of issue of right to passage, place of supply shall be determined in accordance with
• Registered person location of such person; the provisions of sub-section (2).
• Return journey treated as separate journey, even if right to passage for onward & return
• Other than registered person, place where
journey is issued at same time.
passenger embarks on conveyance for
continuous journey.
PLACE OF SUPPLY OF TELECOMMUNICATION SERVICES INCLUDING DATA TRANSFER, BROADCASTING, CABLE & DIRECT TO HOME TELEVISION
SERVICES TO ANY PERSON SHALL, U/S. 12(11)
IN CASE OF SERVICES BY WAY OF FIXED TELECOMMUNICATION IN CASE OF MOBILE CONNECTION FOR TELECOMMUNICATION
LINE, LEASED CIRCUITS, INTERNET LEASED CIRCUIT, CABLE OR & INTERNET SERVICES PROVIDED ON POST-PAID BASIS, U/S. 12
DISH ANTENNA, U/S. 12 (11) (A). (11) (B)
Be location where
telecommunication Be the location of
line, leased circuit or billing address of
cable connection or recipient of services
dish antenna is on record of supplier
installed for receipt of services;
of services;
IN CASES WHERE MOBILE CONNECTION FOR TELECOMMUNICATION, PLACE OF SUPPLY OF BANKING & FINANCIAL SERVICES,
INTERNET SERVICE & DIRECT TO HOME TELEVISION SERVICES ARE INCLUDING STOCK BROKING SERVICES TO ANY PERSON SHALL
PROVIDED ON PRE-PAYMENT BASIS THROUGH A VOUCHER OR ANY OTHER BE, U/S. 12(12).
MEANS, U/S. 12 (11) (C)
Through selling agent or re-seller or
• Location of recipient of services on the records
distributor of subscriber identity module
of the supplier of services.
card or re-charge voucher, be the address
• If location of recipient of services is not on
of selling agent or re-seller or distributor
records of supplier, place of supply shall be
as per record of supplier at the time of
location of supplier of services.
supply
PLACES OF SUPPLY OF INSURANCE SERVICES PLACE OF SUPPLY OF ADVERTISEMENT SERVICES TO CG, SG, A STATUTORY BODY OR LOCAL
SHALL, U/S. 12 (13) AUTHORITY MEANT FOR STATES OR UT IDENTIFIED IN CONTRACT SHALL BE TAKEN AS, U/S. 12
(14)
• A registered person be the location of
• Being in each of such states or UT & value of such supplies specific to each State or
such person;
UT shall be in proportion to the amount attributable to services provided by way of
• Other than registered person, be location
dissemination in respective States or UT as determined in terms of contract or in
of recipient of services on records of
absence of contract, on other basis as prescribed.
supplier of services.
PLACE OF SUPPLY OF SERVICES WHERE LOCATION OF SUPPLIER OR PLACE OF SUPPLY OF SERVICES EXCEPT SERVICES SPECIFIED IN SUB-
LOCATION OF RECIPIENT IS OUTSIDE INDIA U/S. 13 OF IGST ACT SECTION (3) TO (13) SHALL BE, U/S. 13(2)
• Location of recipient of services.

• Where the location of the supplier of services or the • If location of recipient of services not available in the ordinary
location of the recipient of services is outside India, course of business, place of supply shall be the location of the
supplier of services.
PROVISIONS OF THIS SECTION SHALL APPLY TO DETERMINE THE PLACE OF SUPPLY OF SERVICES
where the location of the supplier of services or the location of the recipient of services is outside india.
PLACE OF SUPPLY OF SERVICES EXCEPT SERVICES SPECIFIED IN SUB-SECTION (3) TO (13) SHALL BE, U/S. 13(2)
a) Location of recipient of services.
b) If location of recipient of services not available in the ordinary course of business, place of supply shall be the
location of the supplier of services.
PLACE OF SUPPLY OF
SERVICES WHERE PLACE OF SUPPLY OF FOLLOWING SERVICES SHALL BE LOCATION WHERE SERVICES ARE ACTUALLY PERFORMED, U/S. 13
LOCATION OF SUPPLIER (3)
OR LOCATION OF a) Services supplied for goods which required to be made physically available by recipient of services to supplier of
RECIPIENT IS OUTSIDE services, or to person acting on behalf of supplier of services in order to provide the services.
INDIA U/S. 13 OF IGST
ACT
PROVISO
If services provided from a remote location by way of electronic means, place of supply shall be location where goods
are situated at the time of supply of services.
EXCEPTION
Nothing contained in the clause shall apply in case of services supplied for goods which are temporarily imported into
India for repairs & exported after repairs without being put to any other use in India.
b) Services supplied to individual represented either as recipient of services or person acting on behalf of recipient,
which require physical presence of recipient or person acting on his behalf.
PLACE OF SUPPLY OF SERVICES SUPPLIED DIRECTLY IN RELATION TO IMMOVABLE PROPERTY, INCLUDING SERVICES SUPPLIED IN THIS REGARD BY
EXPERTS & ESTATE AGENTS, SUPPLY OF ACCOMMODATION BY HOTEL, INN, GUEST HOUSE, CLUB OR CAMPSITE, GRANT OF RIGHTS TO USE
IMMOVABLE PROPERTY, SERVICES FOR CARRYING OUT OR CO-ORDINATION OF CONSTRUCTION WORK, INCLUDING THAT OF ARCHITECTS OR
INTERIOR DECORATORS, SHALL BE U/S. 13 (4).
Place where immovable property is located or intended to be located.
Section Basis of apportionment

Sec 13 (4), Supply of service directly in relation to Value of services in each such state or union
immovable property etc. territory as the Case maybe shall be determined
by applying the provisions of rule 4, mutatis
mutandis.
PLACE OF SUPPLY OF SERVICES SUPPLIED BY WAY OF ADMISSION TO, OR ORGANIZATION OF ACULTURAL, ARTISTIC, SPORTING, SCIENTIFIC,
EDUCATIONAL OR ENTERTAINMENT EVENT, OR A CELEBRATION, CONFERENCE, FAIR, EXHIBITION OR SIMILAR EVENTS, & OF SERVICES ANCILLARY TO
SUCH ADMISSION OR ORGANIZATION, SHALL BE, U/S. 13 (5)
Place where event is actually held.
Section Basis of apportionment

Sec 13(5) Supply of service by way of Admission Value of the services in each such state or Union
to or organization of a cultural artistic etc. territory, as the Case maybe shall be determined
by applying the provision of rule 5 mutatis
mutandis
IF ANY SERVICES REFERRED U/S. 13 (3) OR (4) OR (5) IS SUPPLIED AT
MORE THAN ONE LOCATION, INCLUDING A LOCATION IN THE TAXABLE
TERRITORY, ITS PLACE OF SUPPLY SHALL BE U/S. 13 (6)
• Services supplied by banking company, or
Location in the taxable territory. financial institution, or non-banking
PLACE OF SUPPLY OF
financial company, to account holders;
FOLLOWING SERVICES
IF SERVICES REFERRED U/S. 13(3), (4), (5) SUPPLIED IN MORE • Intermediary services;
SHALL BE THE LOCATION
THAN ONE STATE/UT PLACE OF SUPPLY SHALL BE U/S. 13(7) • Services consisting of hiring of means of
OF SUPPLIER OF
transport, including yachts but excluding
Taken as being in each of respective States or UT & SERVICES, U/S. 13 (8)
aircrafts & vessels, up to period of one
value of such supplies specific to each State or UT
month.
shall be in proportion to the value for services
separately collected or determined in terms of
contract entered into in this regard or, in absence of PLACE OF SUPPLY OF SERVICES OF TRANSPORTATION OF GOODS, OTHER
contract on other basis as prescribed. THAN BY WAY OF MAIL OR COURIER, SHALL, U/S. 13 (9).
Place of destination of such goods.
PLACE OF SUPPLY OF SERVICES PROVIDED ON BOARD A
CONVEYANCE DURING COURSE OF A PASSENGER TRANSPORT
OPERATION, INCLUDING SERVICES INTENDED TO BE WHOLLY PLACE OF SUPPLY IN RESPECT OF PASSENGER TRANSPORTATION SERVICES
OR SUBSTANTIALLY CONSUMED WHILE ON BOARD, SHALL BE, SHALL BE, U/S. 13 (10)
U/S. 13(11). Place where passenger embarks on the
First scheduled point of departure of that conveyance for a continuous journey
conveyance for the journey.
IN ORDER TO PREVENT DOUBLE TAXATION OR NON-TAXATION OF

SUPPLY OF SERVICE, OR FOR UNIFORM APPLICATION OF RULES, U/S. 13
(13) PLACE OF SUPPLY OF ONLINE INFORMATION & DATA BASE ACCESS OR
Govt. shall have power to notify any description of RETRIEVAL SERVICES U/S. 13(12)
services or circumstances in which place of supply shall shall be location of recipient of
be place of effective use & enjoyment of a service. services,
GST – CH.06 - TIME AND VALUE OF SUPPLY
06 TIME AND VALUE OF SUPPLY
SEC 2(32) CONTINUOUS SUPPLY OF GOODS SEC 31 TAX INVOICE IN CASE OF GOODS
means a supply of goods which is provided, or agreed SUPPLY INVOLVE MOVEMENT OF GOODS
• On or before removed of goods
to be provided, continuously or on recurrent basis, NORMALLY
SUPPLY DOSE NOT INVOLVE MOVEMENT OF GOODS
under a contract, whether or not by means of a wire, • When goods are delivered or made available
cable, pipeline or other conduit, and for which the CONTINUOUS
SUPPLY OF GOODS
When statement is issued or Date of Receipt whichever is earlier
supplier invoices the recipient on a regular or periodic
basis and includes supply of such goods as the GOODS SENT ON Maximum 6 month from the date of removal if not then next day
APPROVAL BASIS after 6 months.
Government may, subject to such conditions, as it may,
SEC 31 TAX INVOICE IN CASE OF SERVICE
by notification, specify
NORMAL CASE 30 days or 45 days from the date of provision of service
SEC 2(33) CONTINUOUS SUPPLY OF SERVICES
• Where the due of payment is ascertainable from the contract,
means a supply of services which is Provided, or agreed the invoice shall be issued on or before the due date of
to be Provided, continuously or on recurrent basis, payment;
CONTINUOUS • Where the due date of payment is not ascertainable from the
under a contract, for a period exceeding three months SUPPLY OF SERVICE contract, the invoice shall be issued before or at the time when
SEC 31(5) the supplier of service receives the payment.
with periodic payment obligations and includes supply
• Where the payment is linked to the completion of an event, the
of such services as the Government may, subject to invoice shall be issued on or before the date of completion of
such conditions, as it may, by notification, specify. that event.
DATE OF RECEIPT Date of bank entry or Date of book entry whichever is earlier
PROVISO
SEC 12 TIME OF SUPPLY OF GOODS If supplier receives amount up to 1000/- in excess of amount indicated in invoice, time of
The liability to pay tax on goods shall supply of such excess amount shall, at the option of supplier, be the date of issue of
arise at the time of supply as
SEC 12(1) invoice.
determined in accordance with the
provision of this section. Notification No. 66/2017, dated 15/11/2017, whereby all suppliers of goods who have
SEC 12(2) FORWARD CHARGES not opted for composition scheme, have been exempted from the burden of GST on
Advances received.
TIME OF SUPPLY OF GOODS SHALL BE EARLIER Hence TOS shall be date of Invoice or the last day as per Sec 31
OF FOLLOWING DATES
a. Earlier of following date of issue of invoice
by supplier or SEC 12(3) REVERSE CHARGE
b. last date on which he is required, u/s. 31 (1), IN REVERSE CHARGE BASIS, TIME OF SUPPLY SHALL BE EARLIEST OF FOLLOWING DATES
to issue invoice, or date on which supplier a. Date of receipt of goods; or
receives the payment. b. Date of payment entered in books of recipient or date on which payment is debited in
Whichever is earlier his bank account, whichever is earlier; or
c. Date immediately following 30 days from date of issue of invoice or other document.
EXPLANATION
For the purposes of clause (a) and (b), “supply”
PROVISO
shall be deemed to have been made to the
extent it is covered by the invoice or, as the case a. If not possible to determine time of supply in reverse charge as above, time of supply
may be, the payment.
shall be the date of entry in the books of account of the recipient of supply.
IN SUPPLY OF VOUCHERS, TIME OF SUPPLY SHALL BE

SEC
• If supply is identifiable at that point, date of issue of voucher; or
12(4)
• In all other cases date of redemption of voucher,
IF NOT POSSIBLE TO DETERMINE TIME OF SUPPLY U/S. 12 (2) (3) (4), TIME OF SUPPLY SHALL
SEC U/S. 12 (5)
12(5) • In case where periodical return has to be filed, date on which such return is to be filed; or
• Date on which the tax is paid.
TIME OF SUPPLY TO THE EXTENT IT RELATES TO ADDITION IN VALUE

SEC
• Supply by way of interest, late fee or penalty for delayed payment of any consideration
12(6)
shall be the date on which the supplier receives such addition in value.
CONTINUOUS SUPPLY OF GOODS

SEC TOS SHALL BE EARLIER OF THE FOLLOWING
31(4) • Date of invoice
• Last date of invoice (Date of statement or payment whichever is earlier)
SALE OF GOODS ON APPROVAL BASIS

• Where goods are being sent or taken on approval for sale of return are removed before
the supply takes place the invoice shall be issued
SEC a. before or at the time of supply or
31(7) b. 6 months from the date of removal whichever is earlier.
TIME OF SUPPLY
• Date of invoice or last date of invoice whichever is earlier
SEC 13 TIME OF SUPPLY OF SERVICE
SEC
Liability to pay tax on services u/s. 13 (1) arise at the time of supply.
13(1)
FORWARD CHARGE
TIME OF SUPPLY OF SERVICES SHALL BE EARLIEST OF FOLLOWING DATES
• If invoice is issued date of issue of invoice by supplier, or date of receipt of payment, whichever is earlier, or
SEC • If invoice not issued date of provision of service or date of receipt of payment, whichever is earlier; or
13(2) • If above provisions not apply date on which recipient shows the receipt of services in his books of account,
PROVISO
If supplier receives up to 1000/- in excess of amount indicated in tax invoice, time of supply to the extent of such excess amount
shall, at the option of said supplier, be the date of issue of invoice.
REVERSE CHARGE
IN CASE OF SUPPLIES ON REVERSE CHARGE BASIS, TIME OF SUPPLY SHALL BE EARLIER OF FOLLOWING DATES
SEC a) Earlier of following date of payment as entered in the books of account of recipient or date on which payment is debited in his
13(3) bank account; or
b) Date immediately following 60 days from date of issue of invoice or any other document, by supplier.
PROVISO 1
If not possible to determine time of supply in above points, date of entry in books of recipient of supply.
SEC 13 TIME OF SUPPLY OF SERVICE
IN CASE OF SUPPLY OF VOUCHERS BY SUPPLIER, TIME OF SUPPLY SHALL BE

SEC
a. If supply is identifiable at that point, date of issue of voucher; or
13(4)
b. In all other cases date of redemption of voucher.
IF NOT POSSIBLE TO DETERMINE TIME OF SUPPLY U/S. 13 (2) (3) (4), TIME OF SUPPLY SHALL U/S. 13(5)
SEC
a. In case where periodical return has to be filed, date on which such return is to be filed; or
13(5)
b. In any other case date on which the tax is paid.
TIME OF SUPPLY TO THE EXTENT IT RELATES TO ADDITION IN VALUE U/S

SEC
Supply by way of interest, late fee or penalty for delayed payment of any consideration shall be the date on which the supplier
13(6)
receives such addition in value.
VALUE OF TAXABLE SUPPLY

U/S. 15 OF CGST ACT SEC 15(2) INCLUSIONS IN TRANSACTION VALUE
a. Include taxes, duties, cesses, fees & charges levied under any law other than
SEC 15(1)
this Act, SGST Act, UTGST Act & GST [Compensation to States] Act, if charged
The value of a supply of
goods or services or both separately by supplier;
shall NOTE : TCS shall not be included.
• be the transaction value,
• for the said supply of b. Include any amount that supplier is liable to pay for supply but incurred by
goods or services or recipient of supply & not included in price;
both
• where the supplier and c. Include incidental expenses, including commission & packing, charged by
the recipient of the supplier to recipient & amount charged for anything done by supplier for
supply are not related
and supply at the time of or before delivery.
• the price is the sole d. Include interest or late fee or penalty for delayed payment for supply; and
consideration for the
supply. e. Include subsidies directly linked to the price excluding subsidies provided by
CG & SG.
SEC 15(3) VALUE OF SUPPLY SHALL NOT VALUATION RULES

INCLUDE ANY DISCOUNT RULE 27 : VALUE OF SUPPLY OF GOODS OR SERVICES WHERE
CONSIDERATION IS NOT WHOLLY IN MONEY
a. Given before or at the time of supply if THEN VALUE OF THE SUPPLY SHALL BE
such discount duly recorded in invoice a. Open market value of such supply; Rule 27 (a)
issued; and b. If open market value is not available sum total of
b. Given after supply effected, consideration in money & any such further amount in money
• if such discount is established in terms of as is equivalent to consideration not in money, if such amount
agreement entered into at or before the is known at the time of supply; Rule 27(b).
c. If value of supply not determinable in clauses (a) or (b), be the
time of such supply & linked to relevant
value of supply of like kind & quality; Rule 27(c)
invoices; &
d. If value is not determinable in above clauses (a), (b), (c), be
• ITC as is attributable to discount on basis of
sum total of consideration in money & further amount in
document issued by supplier reversed by money that is equivalent to consideration not in money
recipient. determined by Rule 30, 31 in order.
RULE 28 : VALUE OF SUPPLY OF GOODS OR SERVICES OR BOTH BETWEEN DISTINCT OR RELATED

PERSONS, OTHER THAN THROUGH AN AGENT
VALUE OF SUPPLY SHALL BE

• Value of supply shall be
a. Open market value of such supply; Rule 28 (a)
b. If open market value not available, be value of supply of goods or services of like kind & quality; Rule 28(b)
c. If value not determinable under clause (a) or (b), be value as determined by application of rule 30 or rule 31, in that
order, Rule 28 (c)
PROVIDED THAT
• If goods intended for further supply value shall at option of supplier, be amount equivalent to 90% of price charged for
goods of like kind & quality by recipient to his customer not being a related person.
PROVIDED THAT
• If recipient is eligible for full ITC, value declared in invoice deemed to be open market value of goods or service.
RULE 29 : VALUE OF SUPPLY OF GOODS MADE OR RECEIVED THROUGH AN AGENT
a. Open market value of such supply; or

b. If goods intended for further supply value shall at option of supplier, be amount equivalent to 90% of price charged for goods of like
kind & quality by recipient to his customer not being a related person.
c. If value not determinable in above clause, value as determined by rule 30 or 31, in that order.
RULE 30 : VALUE OF SUPPLY OF GOODS OR SERVICES OR BOTH BASED ON COST
IF VALUE OF SUPPLY IS NOT DETERMINABLE BY ANY OF THE PRECEDING RULES, VALUE SHALL BE:
• 110% production or manufacture or cost of acquisition of goods or cost of provision of services.
RULE 31 : RESIDUAL METHOD FOR DETERMINATION OF VALUE OF SUPPLY OF GOODS OR SERVICES OR BOTH
IF VALUE OF SUPPLY CANNOT BE DETERMINED UNDER RULES 27 TO 30, SAME SHALL BE

a. Determined using reasonable means consistent with principles & general provisions of section15 & provisions of this Chapter.
b. In case of supply of services, the supplier may opt for this rule, ignoring rule 30.
DETERMINATION OF VALUE IN RESPECT OF CERTAIN SUPPLIES RULE 32

VALUE OF SUPPLY OF SERVICES FOR PURCHASE OR SALE OF FOREIGN CURRENCY, INCLUDING MONEY
CHANGING, DETERMINED BY SUPPLIER OF SERVICES IN FOLLOWING MANNER, RULE 32 (2)
Money Exchange Service
Option 1 Option 2
Exchange of
RBI Rate RBI Rate not currencies
< = 1,00,000 > 1L to < 10L Above 10L
Available Available other than
Indian
5500 + 0.1%
VOS → 1% 1% of
VOS → 1% of amount
VOS → (BR- of lessor of currency or 1000 + 0.5%
of gross exceeding
SR) X gross 250 per of amount
amount of 1,00,000
Currency amount of transaction exceeding
Indian subject to
Units Indian whichever 1,00,000
rupees maximum
rupees is higher
60,000
VALUE OF SUPPLY OF SERVICES FOR BOOKING OF TICKETS BY AIR BY TRAVEL AGENT SHALL BE, RULE 32(3)
a. Deemed to be amount calculated at the rate of 5% of basic fare in case of domestic bookings, & at the rate of 10% of
basic fare in case of international bookings of passage.
b. Basic fare means that part of air fare on which commission is normally paid to air travel agent by airlines.
VALUE OF SUPPLY OF SERVICES IN RELATION TO LIFE INSURANCE BUSINESS SHALL BE, RULE 32 (4)
a b c d
Allocation Single Premium Other than
Term Plan
Policy a&b
Investment Risk 1st year

VOS → 10% Single 25% of Premium Premium Paid
Premium Charged
VOS
Subsequent year
12.5 % of Premium VOS
GST – CH.07 - PAYMENT OF TAX
07 PAYMENT OF TAX
PAY M E N T O F TA X , I N T E R E S T, P E N A LT Y & O T H E R A M O U N T S U / S . 4 9 O F C G S T A C T
AMOUNT AVAILABLE IN THE ELECTRONIC CASH LEDGER MAY BE USED U/S. 49 (3)
• For making any payment towards tax, interest, penalty, fees or any other amount
payable under this Act or rules made thereunder in such manner & subject to
such conditions & within such time as prescribed.
• Head wise information is to be maintained.
Major head Minor head

IGST Tax
CGST Interest
SGST / UGST Penalty
CESS Fees and other
• The amount available in ECL can be utilized for payment of any liability for
respective major and minor head.
• The amount available in Major head can not be used for minor head and even
transfer of funds between major head is not permissible.
AMOUNT OF ITC AVAILABLE IN ELECTRONIC CREDIT LEDGER OF REGISTERED

PERSON ON ACCOUNT U/S. 49 (5)
• Provided that the input tax credit on account of state tax shall be
utilized towards payment of integrated tax only where the balance of
PROVISO
• Integrated tax first utilized for payment of IGST & (NEWLY the input tax credit on account of central tax is not available for
INSERTED)
amount remaining, if any, may be utilized towards payment of integrated tax
payment of CGST & SGST, or UTGST in that order; • Union territory tax utilized towards payment of UTGST & amount
remaining, if any, may be utilized towards payment of IGST.
• Central tax first utilized towards payment of CGST &
amount remaining, if any, may be utilized towards the
payment of IGST; • Provided that the input tax credit on account of Union Territory tax
• State tax first utilized towards payment of SGST & shall be utilized towards payment of integrated tax only where the
PROVISO
amount remaining, if any, may be utilized towards (NEWLY balance of the input tax credit on account of central tax is not
INSERTED) available for payment of integrated tax
payment of IGST.
• Central tax not utilized towards payment of STGST or UTGST; and
• STGST or UTGST not utilized towards payment of central tax.
EVERY TAXABLE PERSON SHALL DISCHARGE HIS TAX & OTHER DUES UNDER
THIS ACT OR RULES MADE THEREUNDER U/S. 49 (8)
RATE OF INTEREST SHALL BE NOTIFIED BY GOVT. HOWEVER,
• Self-assessed tax, and other dues related to returns of previous tax periods;
SUCH RATE TO BE NOTIFIED SHALL NOT EXCEED
• Self-assessed tax, and other dues related to the return of current tax
period; • 18% in case of belated payment of tax i.e. on failure to
• Any other amount payable under the Act or the rules made thereunder pay tax [or part of tax] to the Government’s account.
including the demand determined under Section 73 or 74. Notification No. 13/2017 CT dated 28.06.2017 has notified
INTEREST ON DELAYED PAYMENT OF TAX U/S. 50 OF CGST ACT the rate of interest as 18% per annum.
EVERY PERSON WHO IS LIABLE TO PAY TAX IN ACCORDANCE AS PER THIS ACT
OR RULES MADE THERE UNDER U/S. 50(1) • 24% on undue or excess claim of ITC or on such undue or
• Fails to pay tax or any part thereof to Govt. within period prescribed, shall excess reduction in output tax liability, Notification No.
for the period for which the tax remains unpaid, pay, on his own, interest at 13/2017 CT dated 28.06.2017 has notified the rate of
such rate, not exceeding 18% per annum, as notified by Government. interest as 24% per annum.
ELECTRONIC LIABILITY REGISTER RULE 85 OF CGST RULES, 2017
ELECTRONIC LIABILITY REGISTERS SPECIFIED U/S. 49 (7) SHALL BE SUBJECT TO THE PROVISIONS OF SECTION 49, PAYMENT OF EVERY
MAINTAINED, RULE 85 (1) LIABILITY, RULE 85 (3)
By registered person as per his return made by debiting electronic

In FORM GST PMT-01 for each person liable to pay tax, interest,
credit ledger maintained as per rule 86 or electronic cash ledger
penalty, late fee or any other amount on common portal & all
maintained as per rule 87 & electronic liability register shall be
amounts payable by him shall be debited to the said register.
credited accordingly.
ELECTRONIC LIABILITY REGISTER OF THE PERSON SHALL BE DEBITED AMOUNT DEDUCTED U/S. 51, OR AMOUNT COLLECTED U/S. 52, OR
BY, RULE 85 (2) AMOUNT PAYABLE ON REVERSE CHARGE BASIS, OR AMOUNT
PAYABLE U/S. 10, RULE 85 (4)
a. Amount payable towards tax, interest, late fee or other amount Any amount payable towards interest, penalty, fee or any other
payable as per return furnished by said person; amount under the Act shall be paid by debiting electronic cash
b. Amount of tax, interest, penalty or any other amount payable as ledger & electronic liability register shall be credited accordingly.
determined by proper officer in pursuance of any proceedings
under the Act or as ascertained by said person;
REGISTERED PERSON UPON NOTICING ANY DISCREPANCY IN HIS
c. Amount of tax & interest payable as a result of mismatch u/s. 42
ELECTRONIC LIABILITY LEDGER, RULE 85 (7)
or 43 or 50; or
d. Amount of interest that may accrue from time to time.
Communicate same to the officer exercising jurisdiction, through
common portal in FORM GST PMT-04.
ELECTRONIC CREDIT LEDGER RULE 86 OF CGST RULES, 2017
ELECTRONIC CREDIT LEDGER MAINTAINED IN FORM GST PMT-02, RULE 86 (1)

• For each registered person eligible for ITC & every claim of ITC under the Act credited to said
ledger.
ELECTRONIC CREDIT LEDGER DEBITED, RULE 86 (2)
• To the extent of discharge of any liability in accordance with u/s. 49.
IF REGISTERED PERSON HAS CLAIMED REFUND OF ANY UNUTILIZED AMOUNT, RULE 86 (3)
• From electronic credit ledger u/s. 54, amount to the extent of claim debited in said ledger.
IF THE REFUND SO FILED IS REJECTED FULLY OR PARTLY, RULE 86 (4)
• Amount debited in Rule 86 (3), to the extent of rejection, re-credited to electronic credit ledger by
proper officer by order made in FORM GST PMT-03.
REGISTERED PERSON UPON NOTICING ANY DISCREPANCY IN HIS ELECTRONIC CREDIT LEDGER, RULE
86 (6)
• Communicate same to the officer exercising jurisdiction, through common portal in FORM GST
PMT-04.
RULE 86A RESTRICTION ON UTILIZATION OF BALANCE IN ECL

The Commissioner or an officer authorized by him in this behalf,
• The credit of input tax has been availed on the strength of tax invoices or debit notes or any other
not below the rank of an Assistant Commissioner when
document prescribed under rule 36 –
i. Issued by a registered person who has been found non-existent or not to be conducting any
business from any place for which registration has been obtained; or
ii. Without receipt of goods or services or both; or
• The tax charged in respect of which has not been paid to the Government; or
• The registered person availing the credit of input tax has been found non-existent or not to be
conducting any business from any place for which registration has been obtained; or
• The registered person availing any credit of input tax is not in possession of a tax invoice or debit
note or any other document prescribed under rule 36, may, for reasons to be recorded in writing
not allow debit of an amount equivalent to such credit in electronic credit ledger for discharge of
any liability under section 49 or for claim of any refund of any unutilized amount. Maximum
period of restriction is 1 year.
ELECTRONIC CASH LEDGER RULE 87 OF CGST RULES, 2017

ELECTRONIC CASH LEDGER U/S. 49 (1) MAINTAINED IN FORM GST PMT-05, RULE 87 (1)
• For each person liable to pay tax, interest, penalty, late fee or other amount, on common
portal for crediting amount deposited & debiting payment therefrom towards tax, interest,
penalty, fee or any other amount.
ANY PERSON SHALL GENERATE A CHALLAN IN FORM GST PMT-06, RULE 87 (2)
• On common portal and enter details of amount to be deposited by him towards tax, interest,
penalty, fees or any other amount.
• Challan in FORM GST PMT-06 generated at common portal shall be valid for a period of 15
days.
TAX DEDUCTION AT SOURCE U/S. 51 OF CGST ACT
NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS ACT, U/S. 51 (1)

a. Govt. may mandate department or establishment of CG or SG; or local authority; or Governmental agencies; or such persons or
category of persons as notified by Government, [deductor], to deduct tax at the rate of 1% from the payment made or credited
to supplier [deductee] of taxable goods or services or both, if total value of supply, exceeds 2,50,000/-.
b. Value of supply taken as amount excluding CGST, SGST, UTGST, IGST & cess indicated in the invoice.
c. No deduction made if location of supplier & place of supply is in a State or UT which is different from State or UT of registration
of recipient.
AMOUNT DEDUCTED AS TAX UNDER THIS SECTION SHALL BE PAID TO THE GOVERNMENT BY THE DEDUCTOR, U/S. 51 (2)
• Within 10 days after the end of month in which such deduction is made.
DEDUCTOR SHALL FURNISH TO THE DEDUCTEE A CERTIFICATE U/S. 51 (3)
• Mentioning therein contract value, rate of deduction, amount deducted, amount paid to Govt.
IF DEDUCTOR FAILS TO FURNISH TO DEDUCTEE THE CERTIFICATE, AFTER DEDUCTING TAX AT SOURCE, U/S. 51 (4)
• Within 5 days of crediting the amount to the Govt., deductor shall pay, by way of late fee, a sum of 100/- per day from the day
after expiry of 5 days period until failure is rectified, subject to a maximum 5,000/-
COLLECTION OF TAX AT SOURCE U/S. 52 OF CGST ACT

EVERY ECO [OPERATOR], NOT BEING AN AGENT, SHALL U/S. 52 (1)
a. Collect amount not exceeding 1% as notified by Govt. of net value of taxable supplies made
through it by other suppliers where consideration with respect to such supplies is collected by
operator.
b. Net value of taxable supplies mean aggregate value of taxable supplies, other than services
notified u/s. 9(5), made during any month by all registered persons through operator reduced by
aggregate value of taxable supplies returned to the suppliers during the said month.
AMOUNT COLLECTED U/S. 52 (1) SHALL BE PAID TO GOVT. BY OPERATOR, U/S. 52 (3)
• Within 10 days after end of month in which such collection is made.
GST – CH.08 – INPUT TAX CREDIT
08 INPUT TAX CREDIT
CAPITAL GOODS U/S. 2(19) OF CGST ACT

Means goods, value of which is capitalized in books of the person claiming
ITC & which are used or intended to be used in the course or furtherance of
business.
D E F F I N AT I O N S
INPUT U/S. 2 (59) OF CGST ACT

Means any goods other than capital goods used or intended to be used by
supplier in the course or furtherance of business.
INPUT TAX U/S. 2(62) OF CGST ACT

In relation to a registered person means central tax, state tax, integrated tax or UT tax charged on any supply
of goods or services or both made to him & includes, IGST charged on import of goods; Tax payable u/s.
9(3)(4) of CGST Act, u/s. 5(3)(4) of IGST Act, u/s. 9 (3) (4) of SGST Act; or u/s. 7 (3)(4) of UTGST Act, but does
not include the tax paid under the composition levy.
ELIGIBILITY & CONDITIONS FOR TAKING INPUT TAX CREDIT U/S. 16 OF CGST ACT
16(1) WHO IS ENTITLED TO TAKE INPUT TAX CREDIT? PROVIDED THAT
Every registered person entitled to take credit of input • If goods against invoice received in lots or installments, registered person shall be
tax charged on any supply to him which are used or entitled to take credit upon receipt of the last lot or installment.
intended to be used in the course or furtherance of his • If recipient fails to pay to supplier other than supplies on which tax is payable on
business & said amount shall be credited to the reverse charge basis, amount towards value of supply along with tax payable thereon
electronic credit ledger of such person. within a period of 180 days from date of issue of invoice by supplier, mount equal to
16(2) WHAT ARE THE CONDITION TO BE FULFILLED IN ITC availed by recipient shall be added to his output tax liability, along with interest
ORDER TO TAKE INPUT TAX CREDIT? thereon, in such manner as prescribed.
a. No registered person entitled to credit of any • Recipient entitled to reavail of the credit of input tax on payment made by him of the
input tax for supply to him unless, he is in amount towards value of supply along with tax payable thereon.
possession of a tax invoice or debit note issued by
registered supplier, or other tax paying documents 16(3) IF REGISTERED PERSON HAS 16(4) REGISTERED PERSON NOT ENTITLED TO
as prescribed; subject to u/s. 41, tax charged for CLAIMED DEPRECIATION TAKE ITC
supply has paid to the Govt. either in cash or
A registered person shall not be entitled to
through utilization of ITC admissible in respect of
take input credit in respect of any invoice or
said supply & furnished return u/s. 39.
debit note for supply of goods or services or
aa. ITC available only it details furnished by supplier in
• On tax component of cost of capital both
GSTR 1
goods & plant and machinery under • 30th day of November following the end of
b. He has received the goods or services or both.
Income-tax Act, ITC on said tax financial year to which such invoice on
Bill to Ship to Model: For the purposes of this clause, it
component shall not be allowed. debit note pertains, or,
shall be deemed that the registered person has
• Furnishing of the relevant annual return,
received the goods or as the case may be, services
Whichever is earlier.
APPORTIONMENT OF CREDIT AND BLOCKED CREDITS U/S. 17 OF CGST ACT

SEC 17(1) SEC 17(4)
IF SUPPLY USED BY REGISTERED PERSON PARTLY FOR
BUSINESS PURPOSE & PARTLY FOR OTHER PURPOSES U/S BANKING COMPANY OR FINANCIAL INSTITUTION INCLUDING NBGC,
• Amount of credit restricted to so much of input tax as SUPPLYING SERVICES OF ACCEPTING DEPOSITS, EXTENDING LOANS HAVE
is attributable to purposes of his business.
OPTION U/S. 17 (4)
SEC 17(2) • To either comply with u/s. 17(2) or avail of every month, amount equal to
IF SUPPLY USED BY REGISTERED PERSON PARTLY FOR 50% of eligible ITC on inputs, capital goods & input services in that month
TAXABLE SUPPLIES INCLUDING ZERO-RATED SUPPLIES &
& rest shall lapse.
PARTLY FOR EXEMPT SUPPLIES U/S. 17 (2)
• Amount of credit restricted to so much of input tax as • Option once exercised shall not be withdrawn during remaining part of FY.
is attributable to taxable supplies including zero-rated
• Restriction of 50% not apply to tax paid on supplies made by one
supplies.
registered person to another registered person having same PAN.
SEC 17 (3)
SEC 17(6)
The value of exempt supply under sub-section (2) shall be
such as may be prescribed, and shall include supplies on The Government may prescribe the manner in which the credit referred to in
which the recipient is liable to pay tax on reverse charge sub-sections (1) and (2)
basis, transactions in securities, sale of land and, subject
to clause (b) of paragraph 5 of Schedule II, sale of building SEC 17(5)
BLOCKED CREDIT
Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1) of section 18, input tax credit shall not be available in respect of
the following namely :
a Motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons [including the driver], except when
they are used for making the following taxable supplies, namely :
• Further supply of such motor vehicles; or
• Transportation of passengers; or
• Imparting training on driving such motor vehicles;
aa Vessels and aircraft except when they are used --
i) For making the following taxable supplies, namely :-
• Further supply of such vessels or aircraft; or
• Transportation of passengers; or
• Imparting training on navigating such vessels; or
• Imparting training on flying such aircraft;
ii) For transportation of goods;
ab Services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicles, vessels or aircraft referred to in clause (a)
or clause (aa):
Provided that the input tax credit in respect of such services shall be available -
i) Where the motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) are used for the purposes specified therein;
ii) Where received by a taxable person engaged -
• In the manufacture of such motor vehicles, vessels or aircraft; or
• In the supply of general insurance services in respect of such motor vehicles, vessels or aircraft insured by him;
b The following supply of goods or services or both -
i) • Food and beverages,
• outdoor catering,
• beauty treatment,
• health services,
• cosmetic and plastic surgery,
• leasing, renting or hiring of motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) except when used for the purposes specified
therein,
• life insurance and health insurance :
Provided that the input tax credit in respect of such goods or services or both shall be available where an inward supply of such goods or services
or both is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element
of a taxable composite or mixed supply;
ii) Membership of a club, health and fitness centre; and
iii) Travel benefits extended to employees on vacation such as leave or home travel concession :
Provided that the input tax credit in respect of such goods or services or both shall be available, where it is obligatory for an employer to provide the
same to its employees under any law for the time being in force.
c Works contract services when supplied for construction of an immovable property [other than plant and machinery] except where it is an input service
for further supply of works contract service;
d Goods or services or both received by a taxable person for construction of an immovable property [other than plant or machinery] on his own account
including when such goods or services or both are used in the course or furtherance of business.
Explanation 1 - For the purposes of clauses (c) and (d), the expression “construction” includes re-construction, renovation, additions or alterations or
repairs, to the extent of capitalization, to the said immovable property.
Explanation 2 - For the purposes of this Chapter and Chapter VI, the expression “plant and machinery” means apparatus, equipment, and machinery
fixed to earth by foundation or structural support that are used for making outward supply of goods or services or both and includes such foundation
and structural supports but excludes –
i) Land, building or any other civil structures;
ii) Telecommunication towers; and
iii) Pipelines laid outside the factory premises.
e Goods or services or both on which tax has been paid under section 10;
f Goods or services or both received by a non-resident taxable person except on goods imported by him;
g Goods or services or both used for personal consumption;
h Goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples; and
i Any tax paid in accordance with the provisions of sections 74, 129 and 130.
Free Sample
However, where the activity of distribution of gifts or free samples falls within the scope of supply on
account of the provisions contained in Schedule I of the said Act the supplier would be eligible to avail of
the ITC.
Buy one get one free offer

IMPORTANT
CLARIFICATION
ITC shall be available to the supplier for the inputs input services and capital goods used in relation to
supply of goods of services or both as part of such offers
SEC 18(1) AVAILABILITY OF CREDIT IN SPECIAL CIRCUMSTANCES U/S. 18 OF CGST ACT
SUBJECT TO SUCH CONDITIONS AND RESTRICTIONS AS MAY BE PRESCRIBED

a. Person who applied for registration within 30 days from date on which he becomes liable to registration & granted registration entitled to take
credit of input tax for inputs held in stock & inputs contained in semi-finished or finished goods held in stock on the day immediately preceding
the date from which he becomes liable to pay tax;
b. A person who takes registration u/s. 25(3) Entitled to take credit of input tax for inputs held in stock and inputs contained in semi-finished or
finished goods held in stock on the day immediately preceding the date of grant of registration;
c. If any registered person ceases to pay tax u/s. 10 he shall be entitled to take credit of input tax for inputs held in stock, inputs contained in
semi-finished or finished goods held in stock & on capital goods on the day immediately preceding the date from which he becomes liable to
pay tax u/s. 9
PROVIDED THAT
Credit on capital goods shall be reduced by such percentage points as may be prescribed;
d. If exempt supply by registered person becomes taxable supply such person entitled to take credit of input tax for inputs held in stock & inputs
contained in semi-finished or finished goods held in stock relatable to such exempt supply & on capital goods exclusively used for such exempt
supply on the day immediately preceding the date from which such supply becomes taxable.
REGISTERED PERSON NOT ENTITLED TO TAKE ITC U/S. 18(1) U/S. 18 (2)
• For supply to him after expiry of one year from the date of issue of tax invoice relating to such supply.
IF REGISTERED PERSON WHO AVAILED ITC OPTS TO PAY TAX U/S. 10 OR IF SUPPLY BY HIM BECOME WHOLLY EXEMPT U/S. 18 (4)
a. He shall pay amount by way of debit in electronic credit / cash ledger equivalent to credit of input tax for inputs held in stock & inputs
contained in semi-finished or finished goods held in stock & on capital goods, reduced by such percentage points as prescribed, on the day
immediately preceding the date of exercising of such option or, the date of such exemption.
b. After payment of such amount, balance of ITC, if any, lying in his electronic credit ledger shall lapse.
IN CASE OF SUPPLY OF CAPITAL GOODS OR PLANT & MACHINERY, ON WHICH ITC TAKEN,:
a. Registered person shall pay amount equal to ITC taken on said capital goods or plant & machinery reduced by such percentage points as
prescribed or tax on the transaction value of such capital goods or plant & machinery determined u/s. 15, whichever is higher.
b. If refractory bricks Moulds & dies, jigs & fixtures supplied as scrap, taxable person may pay tax on transaction value of such goods determined
u/s. 15.
TAKING ITC IN RESPECT OF INPUTS & CAPITAL GOODS SENT FOR JOB WORK U/S. 19 OF CGST ACT
1. Notwithstanding anything contained in clause (b) of sub section (2) of Section 16, the “principal” shall be
entitled to take credit of input tax on inputs even if the inputs are directly sent to a job worker for job work
without being first brought to his place of business.
2. Where the inputs sent for job work are not received back by the “principal” after completion of job work or
otherwise or are not supplied from the place of business of the job worker in accordance with clause (a) or
clause (b) of sub section (1) of section 143 within one year of being sent out, it shall be deemed that such
inputs had been supplied by the principal to the job worker on the day when the said inputs were sent out:
PROVIDED THAT
• where the inputs are sent directly to a job worker, the period of one year shall be counted from the date of
receipt of inputs by the job worker and 3 years n case of capital goods.
MANNER OF DISTRIBUTION OF CREDIT BY INPUT SERVICE DISTRIBUTOR U/S. 20 OF CGST ACT
ISD SHALL DISTRIBUTE CREDIT OF CGST AS CGST OR IGST &

IGST AS IGST OR CGST, BY WAY OF ISSUE OF DOCUMENT,
ISD MAY DISTRIBUTE CREDIT SUBJECT TO FOLLOWING CONDITIONS, U/S. 20 (2) :
U/S. 20(1)
a. Credit can be Distributed to recipients of credit against a document
• Containing amount of ITC being distributed in such
containing details as prescribed
manner as may be prescribed.
b. Amount of credit Distributed shall not exceed the amount of credit available
for distribution;
RELEVANT PERIOD MEANS
c. Credit of tax paid on input services attributable to recipient of credit shall be
• If recipients of credit have turnover in their states or UT
distributed only to that recipient;
in FY preceding the year during which credit is to be
d. Credit of tax paid on input services attributable to more than one recipient
distributed, the said FY; or
of credit distributed amongst recipients, prorate on the basis of turnover in
• If some or all recipients of credit do not have any
a State or UT of such recipient, during relevant period.
turnover in their states or UT in FY preceding the year
e. Credit of tax paid on input services attributable to all recipients of credit
during which credit is to be distributed, the last quarter
shall be distributed amongst recipients, prorate on basis of turnover in a
for which details of such turnover of all recipients are
State or UT of such recipient, during the relevant period.
available, previous to the month during which credit is to
be distributed;
GST – CH.09 – REGISTRATION
09 REGISTRATION
Threshold for Reg. in different Cases
Supplier engage in
Supplier is engage in exclusive supply of goods
• Exclusively supply of services or
• Supply of Goods + Services
In case of
Special category of State Other State
- Manipur In case of all other state
- Mizoram including remaining special
Threshold Limit
- Tripura category of state All state
40L
- Nagaland
Except
Threshold limit 20
Puducherry
L
Threshold limit 10L Threshold limit 20L Telangana
Manipur Sikkim
J&K
Mizoram Uttarakhand
Assam
Tripura Meghalaya
Himachal
Nagaland Arunachal Pradesh
Threshold limit 10 L Threshold limit 20 L Threshold limit 40 L
COMPULSORY REGISTRATION IN CERTAIN CASES U/S. 24 OF CGST ACT
NOTWITHSTANDING ANYTHING CONTAINED U/S. 22(1), FOLLOWING CATEGORIES OF PERSONS REQUIRED TO BE REGISTERED
a. Persons making any inter-state taxable supply ( exempt up to 20 / 10 lakhs for SCS except J & K);
EXCEPT
• Interstate service
• Handicraft goods supplier
• Job worker
b. Casual taxable persons making taxable supply;
EXCEPT
• Handicraft goods supplier
c. Persons who are required to pay tax under reverse charge;
d. Person who are Required to pay tax u/s. 9(5);
e. Non-resident Taxable persons making taxable supply;
f. Persons who are Required to deduct tax u/s. 51, whether or not separately registered under this Act.
g. Person who make taxable supply on behalf of other taxable persons whether as agent or otherwise.
h. ISD whether or not Separately registered under this act;
i. Persons who makes supply other than supplies specified u/s. 9(5), through such electronic commerce operator who is required to collect tax at
source u/s. 52; (exempt up to 20 lakhs) Every electronic commerce operator;
j. Every person supplying online information & database access or retrieval services from a place outside India to person in India, other than a
registered person; and such other person or class
k. of persons as may be notified by Govt. on recommendations of the Council.
PERSONS NOT LIABLE FOR REGISTRATION U/S. 23 OF CGST ACT

FOLLOWING PERSONS SHALL NOT BE LIABLE TO REGISTRATION U/S. 23 (1)
• Person engaged in supplying that are not liable to tax or wholly exempt from tax under CGST Act or IGST Act;
• Agriculturist to the extent of supply of produce out of cultivation of land
GOVT. MAY, ON RECOMMENDATIONS OF COUNCIL, BY NOTIFICATION U/S. 23 (2)
• Specify category of persons who may be exempted from obtaining registration under this Act.
DEEMED REGISTRATION U/S. 26 OF CGST ACT

GRANT OF REGISTRATION OR UIN UNDER SGST ACT OR UTGST ACT U/S. 26 (1)
Deemed to be grant or registration or UIN subject to the condition that application for registration or UIN has not been rejected within the time
specified u/s. 25 (10).
NOTWITHSTANDING ANYTHING CONTAINED U/S. 25 (10), U/S. 26 (2)
Any rejection of application for registration or UIN under SGST Act or UTGST Act shall be deemed to be a rejection of application for registration
under this Act.
CENTRAL GOODS AND SERVICE TAX RULES 2017

APPLICATION FOR REGISTRATION RULE 8 OF CGST RULES
EVERY PERSON SEEKING REGISTRATION RULE 8 (1)
a. Before applying for registration declare his PAN, mobile number, e-mail address, State or UT in Part A of FORM GST REG-01 on common portal.
b. Person having Unit in SEZ or being a SEZ developer shall make a separate application for registration as a business vertical distinct from his other
units located outside SEZ.
c. Every person being ISD shall make a separate application for registration as ISD.
PAN VALIDATED ONLINE BY COMMON PORTAL RULE 8 (2)
a. From database maintained by Central Board of Direct Taxes.
b. Mobile number & E-mail address verified through a one-time password sent to said mobile number & email.
ON SUCCESSFUL VERIFICATION OF PAN, MOBILE NUMBER & E-MAIL ADDRESS RULE 8(3)
• A temporary reference number [TRN] generated and communicated to the applicant on the said mobile number and e-mail address.
USING REFERENCE NUMBER GENERATED UNDER SUB-RULE (3), RULE 8(4)
• Applicant shall electronically submit application in Part B of FORM GST REG-01, duly signed or verified through electronic verification code, along
with documents specified in said Form.
ON RECEIPT OF APPLICATION UNDER SUB-RULE (4) RULE 8(5)
• Acknowledgement issued electronically to the applicant in FORM GST REG-02.
VERIFICATION OF THE APPLICATION AND APPROVAL RULE 9 OF CGST ACT

APPLICATION FORWARDED TO PROPER OFFICER WHO SHALL EXAMINE APPLICATION & ACCOMPANYING DOCUMENTS RULE 9(1)
• If same found to be in order approve the grant of registration to the applicant within a period of 7 working days from date of submission of application.
IF APPLICATION SUBMITTED UNDER RULE 8 IS FOUND TO BE DEFICIENT, RULE 9 (2)
a. Proper officer may issue a notice to applicant in FORM GST REG-03 within a period of 7 working days from date of submission of application & applicant
shall furnish such clarification, information or documents inform GST REG-04 within a period of 7 working days and 21 days in case of failure to
authentication and Aadhar Card from date of receipt of such notice.
b. Clarification includes modification or correction of particulars declared in application for registration, other than PAN, State, mobile number & e-mail
address in Part A of FORM GST REG-01.
IF PROPER OFFICER IS SATISFIED WITH CLARIFICATION, INFORMATION OR DOCUMENTS RULE 9 (3)
• He may approve grant of registration within 7 working days from the date of receipt of such clarification.
IF NO REPLY IS FURNISHED BY APPLICANT OR IF PROPER OFFICER IS NOT SATISFIED WITH CLARIFICATION RULE 9 (4)
• Proper officer shall for reasons to be recorded in writing, reject such application & inform the applicant electronically in FORM GST REG-05.
IF THE PROPER OFFICER FAILS TO TAKE ANY ACTION RULE 9 (5)
• Within 7 working days from date of submission of application; or within 7 working days from date of receipt of clarification, information or documents
furnished by applicant, the application for grant of registration shall be deemed to have been approved. Or within 30 days in case fail to undergo Aadhar
Card Authentication.
ISSUE OF REGISTRATION CERTIFICATE RULE 10
SUBJECT TO U/S. 25 (12), IF APPLICATION FOR GRANT OF REGISTRATION HAS BEEN APPROVED UNDER RULE 9, RULE 10(1)
• A certificate of registration in FORM GST REG-06 showing principal place of business & additional places of business shall be made available to
the applicant on common portal & GSTIN shall be assigned subject to following characters two characters for State code; ten characters for PAN or
Tax Deduction & Collection Account Number, two characters for entity code; & once checksum character.
REGISTRATION SHALL BE EFFECTIVE FROM DATE ON WHICH THE PERSON BECOMES LIABLE TO REGISTRATION, RULE 10 (2)
• If application for registration submitted within a period of 30 days from such date.
IF APPLICATION FOR REGISTRATION SUBMITTED BY APPLICANT AFTER EXPIRY OF 30 DAYS FROM DATE OF HIS BECOMING LIABLE TO REGISTRATION,
RULE 10 (3)
• Effective date of registration shall be date of grant of registration under 9 Rule (1) or (3) or (5)
EVERY CERTIFICATE OF REGISTRATION, RULE 10 (4)
• Duly signed or verified through electronic verification code by proper officer under the Act.
IF REGISTRATION HAS BEEN GRANTED UNDER SUB-RULE (5) OF RULE 9, RULE 10(5)
• Applicant shall be communicated registration number, & certificate of registration, duly signed or verified through electronic verification code,
shall be made available to him on common portal, within a period of 3 days after the expiry of period specified in Rule 9 (5).
SPECIAL PROVISIONS RELATING TO CASUAL TAXABLE PERSON & NON-RESIDENT TAXABLE PERSON U/S. 27
CERTIFICATE OF REGISTRATION ISSUED TO A CASUAL TAXABLE PERSON OR A NON-RESIDENT TAXABLE PERSON U/S. 27 (1)
• Valid for the period specified in application for registration or 90 days from date of registration, whichever is earlier & such person shall make
taxable supplies only after issuance of certificate of registration.
• Proper officer may on sufficient cause being shown by said taxable person, extend the said period of 90 days by a further period not exceeding 90
days.
CANCELLATION OF REGISTRATION U/S. 29 OF CGST ACT
PROPER OFFICER EITHER ON HIS OWN MOTION OR ON APPLICATION FILED BY REGISTERED PERSON OR BY HIS LEGAL HEIRS [IN CASE OF DEATH OF
SUCH PERSON] CANCEL REGISTRATION IN FOLLOWING CIRCUMSTANCES U/S. 29(1)
• Business discontinued, transferred fully for any reason including death of proprietor, amalgamated with other legal entity, demerged or otherwise
disposed of; or
• Change in constitution of the business; or
• Taxable person other than person registered u/s. 25(3), is no longer liable to be registered u/s. 22 or 24.
PROPER OFFICER MAY CANCEL REGISTRATION FROM SUCH DATE, INCLUDING RETROSPECTIVE DATE, IF U/S. 29 (2)
a. Registered person contravened such provisions of the Act or rules made thereunder as may be prescribed; or
b. Person paying tax u/s. 10 not furnished returns for three consecutive tax periods;
c. Registered person other than clause (b), has not furnished returns for a continuous period of six months; or
d. Person taken voluntary registration u/s. 25 (3) has not commenced business within six months from date of registration; or
e. Registration obtained by means of fraud, willful misstatement or suppression of facts. Proper office not cancel the registration without giving the
notice.
GST – CH.10 - RETURNS
10 RETURNS
LIST OF
STATEMENTS/RETURNS
UNDER GST
Periodicity/ Description Who Files? Date for filing
Monthly statement of outward Person registered under regular Due date prescribed in the Act is 11th
supplies of goods and/or services scheme with annual aggregate day of the next month.
turnover greater than Rs. 1.5 crore
However, presently, the same is being
(including a Casual taxable person)
extended to 11th day of the next
Return / Statement month.
GSTR-1 Quarterly statement of outward Person registered under regular 13th day of the month succeeding the
supplies of goods and/or services scheme with annual aggregate quarter has been notified as the due
turnover up to Rs. 1.5 crore (including date for the recent quarters
a casual taxable person)
LIST OF
STATEMENTS/RETURNS
UNDER GST
Periodicity/ Description Who Files? Date for filing
Monthly return Person registered under regular Annual turnover ≥ Rs. 5 crore in
scheme including casual taxable previous financial year - 20th of the
person month.
Annual turnover < Rs. 5 crore in

previous financial year - 22nd or 24th
Return / Statement of the month depending upon the

GSTR-3B State or Union Territory in which they
are registered. Presently, the staggered
filing has been provided for tax periods
till March 2021.
LIST OF
STATEMENTS/RETURNS
UNDER GST
Return / Statement Return / Statement

GSTR-4 GST CMP-08
Periodicity/ Who Files? Date for filing Periodicity/ Who Files? Date for filing
Description Description
Return for a Registered 30th April of the Quarterly Registered 18th day of the
financial year person paying tax next financial Statement for person paying tax month
under year payment of under succeeding the
composition self-assessed composition quarter
scheme tax scheme
LIST OF
STATEMENTS/RETURNS
UNDER GST

GSTR-5 GSTR-5A
Monthly return Registered non- 20th day of the next GSTR-5A Registered person 20th day of the next
resident taxpayer month or within 7 providing OIDAR month
days after expiry of services from a place
registration, whichever outside India to a non-
is earlier taxable online recipient
LIST OF
STATEMENTS/RETURNS
UNDER GST

GSTR-6 GSTR-7
Monthly return Input service 13th day of the next GSTR-5A Registered person 10th day of the next
distributor (ISD) month required to deduct tax month
at source
LIST OF
STATEMENTS/RETURNS
UNDER GST

GSTR-8 GSTR-9
Monthly statement E-commerce operator 10th day of the next Annual return Registered person other 31st December of
required to collect tax month than an ISD, tax the next financial
at source deductor /tax collector, year
casual taxable person
and a non-resident
taxpayer
LIST OF
STATEMENTS/RETURNS
UNDER GST

GSTR-9B GSTR-9C
Annual statement E-commerce operator 31st December of the Reconciliation Registered person whose To be submitted
(form yet to be required to collect tax next financial year statement aggregate turnover during along with the
notified) at source a financial year exceeds annual return [GSTR-
Rs. 2 crore. 9]
LIST OF
STATEMENTS/RETURNS
UNDER GST

GSTR-10 GSTR-11
Final return Taxable person whose Within three months Details of inward Persons who have been -
registration has been of the date of supplies issued a Unique Identity
surrendered or cancellation or date of Number (UIN)
cancelled order of cancellation,
whichever is later.
FINAL RETURN U/S. 45 OF CGST ACT, 2017 QUARTERLY RETURN MONTHLY PAYMENT (QRMP) SCHEME
REGISTERED PERSON WHO IS Eligibility for the scheme
REQUIRED TO FURNISH A RETURN U/S. • Quarterly Return Monthly Payment (QRMP) Scheme QRMP Scheme Is an optional return filing
39 (1) & WHOSE REGISTRATION
scheme, introduced for small taxpayers having aggregate annual turnover (PAN based) of upto ₹
CANCELLED
• Furnish a final return within 3 5 crore in the current and preceding financial year to furnish their Form GSTR-1 and Form GSTR-
months of date of cancellation or 3B on a quarterly basis while paying their tax on a monthly basis through a simple challan.
date of order of cancellation,
whichever is later. • Opting of QRMP scheme is GSTIN wise. Distinct persons can avail QRMP scheme option for one
or more GSTINs. It implies that some GSTINs for a PAN can opt for the QRMP scheme and
FINAL RETURN RULES 81 remaining GSTINs may not opt for the said scheme.
REGISTERED PERSON REQUIRED TO Note
FURNISH A FINAL RETURN U/S. 45,
Other than supplier of online information and database access or retrieval services (OIDAR) located
SHALL
• Furnish such return electronically in in non-taxable territory and providing such services to a non-taxable online recipient opted under
FORM GSTR-10 rule 61A of the CGST Rules, 2017 (discussed subsequently) shall furnish a return for every quarter
NOTICE TO RETURN DEFAULTERS U/S. 46 OF CGST from January, 2021 onwards, and pay the tax due every month.
ACT, 2017 Conditions and restrictions
REGISTERED PERSON FAILS TO FURNISH A • Registered persons under QRMP scheme must have furnished the return for the preceding
RETURN U/S. 39 OR 44 OR 45
• A notice issued requiring him to furnish month, as due on the date of exercising such option. A registered person shall not be eligible to
such return within 15 days in such form opt for QRMP scheme if he has not furnished the last return due on the date of exercising such
& manner as prescribed
option.
MANNER OF EXERCISING OPTION OF

QRMP SCHEME [RULE 61A]
Some classes of Taxpayers are by default in the criteria if this scheme are automatically
redirected in this scheme. This bifurcation of the classes of the taxpayer is mentioned below.
Sr. No. Class of registered person Default Option
How to Registered persons having aggregate turnover of up to 1.5 crore Quarterly return
1.
who have furnished FORM GSTR-1 on quarterly basis in the C.F.Y. (QRMP scheme)
avail?
Registered persons having aggregate turnover of up to 1.5 crore Monthly return (No
2.
who have furnished FORM GSTR-1 on monthly basis in the C.F.Y. QRMP scheme)
Registered persons having aggregate turnover more than Rs. 1.5 Quarterly return
3.
crore and up to 5 crore rupees in the P.F.Y. (QRMP scheme)
Note 1 The taxpayers are suggested to file the return for October 2020 in November
Such registered persons are free to change the option as above, if they so desire,
Note 2
from 5th of December, 2020 to 31st of January, 2021.
On or after • Facility to avail the Scheme on the common

portal would be available throughout the year.
1st Jan • A registered person can opt in for any quarter

from first day of second month of preceding
2021 quarter to the last day of the first month of the
quarter.
For Example
• A registered person intending to avail
of the Scheme for the quarter ‘July to
September’ can exercise his option
during 1st of May to 31st of July.
• If he is exercising his option on 27th

July for the quarter (July to
September), in such case, he must
have furnished the return for the
month of June which was due on
22/24th July.
Submitting details of outward supplies

Option of QRMP scheme to lapse Particulars 1st Month 2nd Month End of Quarter
• In case where a registered person’s aggregate Details of outward
IFF ( optional) IFF ( optional) GSTR-1 (compulsory)
turnover crosses ` 5 crore during a quarter in a supplies
financial year, he shall not be eligible for 1-13 of succeeding 1-13 of succeeding th
Due date of furnish 10 of next month
furnishing of return on quarterly basis from month month
the first month of the succeeding quarter. He Value of supply in IFF

The said details of outward supplies shall. However, not
shall not exceeds ₹ 50
shall opt for furnishing of return on a monthly exceed the value of ₹ 50 lakh in each month.
lakhs
basis, electronically, on the common portal,
No details of previous It may be noted that after 13th of the month. This facility for
from the first month of the quarter, month in IFF furnishing IFF for previous month would not be available.
succeeding the quarter during which his
As a facilitation measure continuous upload of invoice would
aggregate turnover exceeds ` 5 crore. Continuous upload of also be provided for the registered persons wherein they can
• The facility for opting out of the scheme for a invoices save the invoices in IFF from the 1st day of the month till 13th
quarter will be available from 1st day of 2nd day of the succeeding month.
month of preceding quarter to the last day of The facility of furnishing details of invoices in IFF has been
Details of IFF to
the 1st month of the quarter. provided so as to allow details of such supplies to be duly
reflected in GSTR-2A &
reflected in the FORM GSTR-2A and FORM GSTR-2B of the
2B
concerned recipient.
Due dates for the Quarterly filling GSTR-3B;

Due date of
Class of registered persons Due date
Quarterly
Registered persons whose principal place of business is in the 22 day of the
Return States of Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, month
For the quarter July-September, Form GSTR-2B for a
registered person (recipient) who has received supplies from Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, succeeding
QRMP suppliers as well as from other suppliers will be the Union territories of Daman and Diu and Dadra and Nagar such quarter.
generated as follows: Haveli, Puducherry, Andaman and Nicobar Islands or
Lakshadweep
Month Date of generation of GSTR-2B
Registered persons whose principal place of business is in the 24 day of the
July 14th August States of Himachal Pradesh, Punjab, Uttarakhand, Haryana, month
Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, succeeding
August 14th September Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West such quarter.
Bengal, Jharkhand or Odisha, the Union territories of Jammu
September 14th October
and Kashmir, Ladakh, Chandigarh or Delhi.
Payment of Tax (Monthly)

Interest Scenario Interest to be paid
payment Tax liability mentioned in pre-filled 18% of the tax liability (from 26th of the
End of
Particulars 1st Month 2nd Month
Quarter
under QRMP form GST PMT-06 is not paid by 25th following moth till the date of payment)
Scheme of the following month
Payment The final tax liability for the first 18% of the tax liability (from GSTR-3B due
PMT – 06 PMT – 06 PMT – 06
challan two months is higher than the tax date till the date of payment)
amount paid through pre-filled
25th of 25th of from GST PMT-06, and such excess
Due date of Along with
succeeding succeeding liability has not been paid within
Payment return
month month the quarterly GSTR-3B due date
Interest to be paid
With effect from 01.01.2021,the time limit for furnishing the details of outward supplies in Form GSTR-1 has been extended in the
following manner:
Class of registered person Time limit for furnishing the details of outward supplies in Form
GSTR-1 for each quarter/tax period
Registered persons opting for QRMP scheme 13th day of the month succeeding such tax period
Others 11th day of the month succeeding such tax period
GST – CH.11 - TAX INVOICE CREDIT & DEBIT NOTE
11 TAX INVOICE CREDIT & DEBIT NOTE
TA X I N V O I C E U / S . 3 1 O F C G S T A C T
REGISTERED PERSON SUPPLYING NOTWITHSTANDING ANYTHING CONTAINED IN SUB-SECTION (1) AND (2) U/S. 31 (3)
TAXABLE GOODS SHALL, BEFORE
OR AT THE TIME OF U/S. 31 a. Registered person may within one month b. Registered person may not issue tax invoice if
a. Removal of goods for from date of issuance of certificate of value of goods or services or both supplied is
supply to the recipient, registration & in such manner as prescribed, less than 200/- rupees subject to conditions
where the supply issue a revised invoice against invoice already as may be prescribed.
involves movement of issued during the period beginning with
effective date of registration till date of d. Registered person may not issue a bill of
goods; or supply if value of goods or services or both
issuance of certificate of registration.
b. Delivery of goods or supplied is less than 200/- rupees subject to
making available thereof c. Registered person supplying` exempted goods conditions as may be prescribed.
to the recipient, in other or services or both or paying tax u/s. 10 shall
issue, instead of a tax invoice, a bill of supply f. If on receipt of advance payment for any
case;
containing particulars as may be prescribed. supply registered person issues a receipt
voucher, but subsequently no supply is made
REGISTERED PERSON SUPPLYING e. Registered person on receipt of advance & no tax invoice is issued thereof, said
TAXABLE SERVICES SHALL, payment for any supply, issue a receipt registered person may issue a refund voucher
BEFORE OR AFTER PROVISION voucher, containing particulars as may be against such payment.
OF SERVICE BUT U/S. 31(2) prescribed, evidencing receipt of payment.
a. Within a prescribed h. Registered person who is liable to pay tax u/s.
period issue a tax g. Registered person who is liable to pay tax u/s. 9(3) or (4) shall issue a payment voucher at
invoice, showing 9 (3) or (4) shall issue invoice for goods or the time of making payment to the supplier.
description, value, services or both received by him from supplier IN CASE OF CONTINUOUS SUPPLY OF
tax charged thereon who is not registered on date of receipt of GOODS, WHERE SUCCESSIVE
& such other goods or services or both. STATEMENTS OF ACCOUNTS OR
particulars as SUCCESSIVE PAYMENTS INVOLVED U/S.
Invoice issued before or at the time
prescribed. 31(4)
each such statement is issued or,
CMA VIPUL SHAH 98812 36536 each such payment is received. YES ACADEMY FOR CS & LAW | 8888 235 235 11.2
SUBJECT TO THE PROVISIONS OF SUB-SECTION (3) IN A CASE WHERE SUPPLY OF SERVICES CEASES
(D), IN CASE OF CONTINUOUS SUPPLY OF SERVICES BEFORE COMPLETION OF SUPPLY U/S. 31(6)
U/S. 31(5)
Invoice shall be issued at the time when supply
A
ceases & such invoice shall be issued to the extent of
If due date of payment ascertainable from the
contract, invoice shall be issued on or before due supply made before such cessation.
date of payment;
NOTWITHSTANDING ANYTHING CONTAINED IN
B SUB-SECTION (1), U/S. 31 (7)
If due date of payment not ascertainable from the If goods being sent or taken on
contract, invoice shall be issued before or at the
approval for sale or return are
time when supplier of service receives the payment.
removed before supply takes
place, invoice shall be issued
C
If payment is linked to completion of event, invoice before or at the time of supply or
issued on or before date of completion of that six months from date of removal,
event.
whichever is earlier.
CENREAL GOODS AND SERVICE TAX RULES 2017

Steps have been taken to introduce e-invoicing for reporting of business to
TIME LIMIT FOR ISSUING TAX INVOICE RULE 47
business B2B invoices to GST system, beginning from 1st January 2020 on a
voluntary basis. All register business with an aggregate turnover based on Pan
If supplier of services is
In taxable supply of insurer or banking in any preceding financial year from 2017 - 18 onwards greater than rupees 50
services, invoice shall be company or financial Crore hereinafter referred to as notified persons will be required to issue
issued within a period of institution, invoice shall
30 days from the date of be issued within 45 days invoices.
the supply of service. from date of supply of
service.
TAX INVOICE RULE 46 OF CGST RULES, 2017

E - INVOICING
POSITION WITH EFFECT
FROM 1.4.2021
CLARIFICATION IN RESPECT OF APPLICABILITY OF DYNAMIC QUICK RESPONSE
(QR) CODE
Sr. No. Annual Turnover (AT) Number of Digits of HSN code All B2C invoices issued by a registered person whose aggregate turnover in any
1 AT > rupees 5 crores for B2B supply - 4
preceding financial year from 2017-18 onwards exceeds Rs. 500 crores are
mandatorily required to have a Dynamic QR Code from December 1, 2020 vide
for B2C supply - 4 (optional)*
notification no. 14/2020 CT dated 21.03.2020.
2 AP > rupees 5 crores for B2B supply and b2c supply - 6
RECEIPT VOUCHER RULE 50 OF CGST RULES, 2017 REFUND VOUCHER RULE 51 OF CGST RULES, 2017
RECEIPT VOUCHER REFERRED U/S. 31 (3) (D) SHALL REFUND VOUCHER REFERRED TO U/S. 31(3) (3) SHALL
CONTAIN CONTAIN
a. Following particulars name, address & GSTIN of supplier & Following particulars name, address & GSTIN of supplier & recipient; a
recipient; a consecutive serial number not exceeding 16 characters; consecutive serial number not exceeding 16 characters; date of its issue;
date of its issue; description of goods or services; amount of number & date of receipt voucher in accordance with rule 50,
advance taken; rate of tax, amount of tax; place of supply with description of goods or services for which refund made; amount of
name of State & its code, in case of inter-State supply; tax on refund, rate of tax, amount of tax; paid tax payable on reverse charge
reverse charge basis; & signature of supplier or authorized basis; & signature or digital signature of supplier or authorized
representative. representative.
b. If at the time of receipt of c. If nature of supply not

advance, rate of tax is not determinable, the same PAYMENT VOUCHER RULE 52 OF CGST RULES, 2017
determinable, tax shall be paid shall be treated as inter-
at the rate of 18%. state supply. PAYMENT VOUCHER REFERRED U/S. 31(3)(G) SHALL
CONTAIN
Following particulars name, address & GSTIN of supplier & recipient if

registered; a consecutive serial number not exceeding 16 characters;
date of its issue; description of goods or services; amount paid, rate of
tax; amount of tax payable; place of supply with name of State & its
code; & signature or digital signature of supplier or his authorized
representative.
REVISED TAX INVOICE AND CREDIT OR DEBIT NOTES RULE TAX INVOICE IN SPECIAL CASES RULE 54 OF CGST RULE,
53 OF CGST RULES 2017
REVISED TAX INVOICE REFERRED U/S. 31 & CREDIT OR ISD INVOICE OR ISD CREDIT NOT ISSUED BY ISD SHALL
DEBIT NOTES REFERRED U/S. 34 SHALL CONTAIN RULE 53 CONTAIN RULE 54(1)
(1)
REGISTERED PERSON GRANTED REGISTRATION FROM A a. Following details name,
DATE EARLIER THAN DATE OF ISSUANCE OF CERTIFICATE OF address & GSTIN of ISD & b. If ISD is an office of a Banking
recipient a consecutive serial company or financial
REGISTRATION RULE 53(2) number not exceeding 16 institution, a tax invoice shall
characters; date of its issue; include any document in lieu
a. Revised tax invoices may issue b. Registered person may issue amount of credit distributed; thereof, containing
for taxable supplies starting a consolidated revised tax & signature or digital information as mentioned
from effective date of invoice for all taxable signature of ISD or his above.
registration till date of supplies made to a recipient authorized representative.
issuance of certificate of who is not registered under
registration. the Act during such period. a. For the purposes of supply of liquid gas where quantity at the time
of removal is not known, transportation of goods for job work,
transportation of goods for reasons other than by way of supply, or
such other supplies as may be notified by the board, consigner may
TRANSPORTATION OF GOODS WITHOUT issue a delivery challan containing, Rule 55 (1)
ISSUE OF INVOICE RULE 55 OF CGST RULES,
b. Following details delivery challan, serially numbered not exceeding
2017 16 characters; date of challan; name, address & GSTIN of consigner
& consignee, if registered, HSN code; quantity; taxable value; tax
rate & tax amount; place of supply, in case of inter-State movement
& signature.
CREDIT AND DEBIT NOTES U/S. 34 OF CGST ACT
IF TAX INVOICE ISSUED FOR SUPPLY & TAXABLE VALUE OR TAX CHARGED U/S. 34 (1)
Found to exceed taxable value or tax payable for such supply, or where goods supplied are returned
by the recipient, or where supply found to be deficient, registered person, who has supplied goods or
services or both, may issue to recipient a credit note containing such particulars as may be prescribed.
IF GOODS ARE BEING TRANSPORTED IN
(even one debit note can be issued for multiple invoice)
A SEMI KNOCKED DOWN OR
COMPLETELY KNOCKED DOWN REGISTERED PERSON WHO ISSUES A CREDIT NOTE FOR SUPPLY SHALL DECLARE U/S. 34 (2)
CONDITION RULE 55 (5)
a. Details of such credit note in the return for the month during which such credit note issued but
a. Supplier shall issue complete not later than September following the end of FY in which such supply was made, or date of
invoice before dispatch of the first furnishing of relevant annual return, whichever is earlier & tax liability shall be adjusted.
consignment; b. Not reduction in output tax liability of supplier shall be permitted, if incidence of tax & interest
on such supply has been passed on to any other person.
b. Supplier shall issue a Delivery
challan for each of subsequent IF TAX INVOICE ISSUED FOR SUPPLY & TAXABLE VALUE OR TAX CHARGED U/S. 34(3)
consignments, giving reference of
invoice; a. Found to be less than taxable value or tax payable for such supply, registered person, who has
supplied such goods or services or both, shall issue to the recipient a debit note.
c. Each consignment Accompanied by b. (even one debit note can be issued for multiple invoice)
copies of corresponding delivery
challan along with a duly certified REGISTERED PERSON WHO ISSUES A DEBIT NOTE FOR SUPPLY SHALL DECLARE U/S. 34 (4)
copy of invoice, &
a. Details of such debit note in the return for the month / quarter during which such debit note &
d. Original copy of invoice shall be tax liability shall be adjusted in such manner as may be prescribed.
sent along with the last b. Debit note include a supplementary invoice.
consignment.
GST – CH.12 - ACCOUNTS, RECORDS & E WAY BILL
12 ACCOUNTS, RECORDS & E WAY BILL
ACCOUNTS AND OTHER RECORDS U/S. 35 OF CGST ACT
REGISTERED PERSON SHALL KEEP & EVERY OWNER OR OPERATOR OF WAREHOUSE

EVERY REGISTERED PERSON WHOSE
MAINTAIN, AT PRINCIPAL PLACE OF BUSINESS, OR OTHER PLACE USED FOR STORAGE OF
TURNOVER DURING FY EXCEEDS PRESCRIBED
MENTIONED IN CERTIFICATE OF GOODS & EVERY TRANSPORTER, SHALL, U/S.
LIMIT SHALL, U/S. 35 (5)
REGISTRATION, U/S. 35 (1) 35(2)
A true & correct account of production or Maintain records of consigner, consignee Get his accounts audited by a CA or a cost
manufacture of goods, inward & outward & other relevant of goods in such manner accountant & shall submit a copy of
supply; stock of goods; ITC availed, as prescribed. audited annual accounts, reconciliation
output tax payable & paid, & such other statement u/s. 44(2) & such other
particulars as prescribed. documents in such form & manner as
prescribed.
If more than one place of business
specified in certificate of registration, the
accounts relating to each place of
business shall be kept at such places of
business.
CENTRAL GOODS AND SERVICE TAX RULES 2017

MAINTENANCE OF ACCOUNTS BY REGISTERED PERSONS RULE 56 OF
PERIOD OF RETENTION OF ACCOUNTS U/S. 36 OF CGST ACT
CGST RULES
REGISTERED PERSON SHALL KEEP & MAINTAIN, AT PRINCIPAL PLACE OF REGISTERED PERSON REQUIRED TO KEEP & MAINTAIN BOOKS OF
BUSINESS, MENTIONED IN CERTIFICATE OF REGISTRATION, U/S. 35 (1) ACCOUNT OR OTHER RECORDS IN ACCORDANCE WITH U/S. 35 (1) SHALL
A true & correct account of goods or services imported or exported Retain them until expiry of 72 months from due date of furnishing
or of supplies on reverse charge along with relevant documents, of annual return pertaining to accounts.
including invoices, bills of supply, delivery challans, credit notes,
REGISTERED PERSON, WHO IS A PARTY TO APPEAL OR REVISION OR
debit notes, receipt vouchers, payment vouchers & refund
OTHER PROCEEDINGS BEFORE ANY APPELLATE AUTHORITY OR
vouchers.
REVISIONAL AUTHORITY OR APPELLATE TRIBUNAL OR COURT, WHETHER
EVERY REGISTERED PERSON, OTHER THAN PERSON PAYING TAX U/S. 10, FILED BY HIM OR BY COMMISSIONER, OR UNDER INVESTIGATION FOR
SHALL MAINTAIN, RULE 35(2) OFFENCE UNDER CHAPTER XIX, SHALL
Accounts of stock for goods received & supplied, & opening Retain books of account & other records pertaining to subject
balance, receipt, supply, goods lost, stolen, destroyed, written off matter of such appeal or revision or proceeding or investigation for
or disposed of, gift or free sample & balance of stock. a period of 1 year after final disposal of such appeal or revision or
proceedings or investigation, or for the period specified above,
whichever is later.
ELECTRONIC WAY BILL
GENERATION OF E WAY BILL
REGISTERED PERSON UNREGISTERED PERSONS
• Eway bill must be generated when there is a

• Unregistered persons are also required to generate
movement of goods of more than
e-Way Bill. However, where a supply is made by an
• ` 50,000 in value to or from a Registered Person. A
unregistered person to a registered person, the
Registered person or the transporter may choose
receiver will have to ensure all the compliances
to generate and carry eway bill even if the value of
are met as if they were the supplier
goods is less than ` 50,000.
TRANSPORTER
• Transporters carrying goods by road, air, rail, etc.

• also need to generate e-Way Bill if the supplier has
not generated an e-Way Bill.
WHEN E - WAY BILL IS NOT NECESSARY?
01 02 03 04 05 06 07
The mode of Goods Goods Goods Transit cargo Movement of Empty Cargo
transport is non- transported transported transported transported to goods caused by containers are
motor vehicle from Customs under Customs under Customs or from Nepal or defence being
port, airport, air supervision or Bond from ICD Bhutan formation under transported
cargo complex under customs to Customs port Ministry of
or land customs seal or from one defence as a
station to Inland custom station consignor or
Container Depot to another. consignee
(ICD) or
Container
Freight Station
(CFS) for
clearance by
Customs.
VALIDITY OF E WAY BILL
No. Distance within Validity period from relevant date

country
1 Up to 200 km. One day in cases other than Over Dimensional Cargo or multimodal shipment in which at
least one leg involves transport by ship.
2 For every 200 km. or One additional day in cases other than Over Dimensional Cargo or multimodal shipment
part thereof in which at least one leg involves transport by ship.
thereafter
3 Up to 20 km. One day in case of Over Dimensional Cargo or multimodal shipment in which at least one
leg involves transport by ship.
4 For every 20 km. or One additional day in case of over dimensional cargo or multimodal shipment in which
part thereof at least one leg involves transport by ship.
thereafter
GST – CH.13 - ASSESSMENT, AUDIT, INSPECTION, SEARCH, SEIZURE & ARREST
13 ASSESSMENT, AUDIT, INSPECTION, SEARCH, SEIZURE & ARREST
PROVISIONAL ASSESSMENT U/S. 60 OF CGST ACT, 2017

SUBJECT TO THE PROVISIONS OF SUB-SECTION (2), IF TAXABLE PERSON U/S. 60 (1)
• Unable to determine value of goods or services or both or Determine rate of tax
applicable thereto.
• He may request proper officer in writing giving reasons for payment of tax on a
provisional basis & proper officer shall pass order, within a period not later than 90
days from date of receipt of such request, allowing payment of tax on provisional basis
at such rate or on value as specified by him.
PAYMENT OF TAX ON PROVISIONAL BASIS MAY BE ALLOWED, IF TAXABLE PERSON, U/S.
60(2)
• Executes a bond & with such surety as proper officer may deem fit, binding taxable
person for payment of the difference between amount of tax as may be finally
assessed & amount of tax provisionally assessed.
PROVISIONAL ASSESSMENT U/S. 60 OF CGST ACT, 2017

PROPER OFFICER SHALL, WITHIN A PERIOD NOT EXCEEDING 6 MONTHS, U/S. 60 (3)
a. From date of communication of order issued under sub-section (1), pass the final assessment order
after taking into account such information as may be required for finalizing the assessment;
b. Period specified in this sub-section may be extended by Joint Commissioner or Additional
Commissioner for a further period not exceeding six months & by Commissioner for such further
period not exceeding four years.
REGISTERED PERSON SHALL BE LIABLE TO PAY INTEREST ON ANY TAX PAYABLE, U/S. 60 (4)
• On supply under provisional but not paid on the due date specified u/s. 39 (7) or rules made
thereunder, at the rate specified u/s. 50 (1), from the first day after the due date of payment of tax for
said supply till date of actual payment, whether such amount is paid before or after issuance of order
for final assessment.
IF REGISTERED PERSON IS ENTITLED TO A REFUND CONSEQUENT TO THE ORDER OF FINAL ASSESSMENT
UNDER SUB-SECTION (3), U/S. 60 (5)
• Subject to u/s. 54 (8) interest shall be paid on such refund as provided in section 56.
AUDIT BY TAX AUTHORITIES U/S. 65 OF CGST ACT
COMMISSIONER OR ANY OFFICER AUTHORIZED BY HIM BY GENERAL OR SPECIFIC ORDER, MAY, U/S. 65 (1)
• Undertake audit of any registered person for such period, at such frequency & in manner as prescribed.
OFFICERS REFERRED IN SUB-SECTION (1) MAY, U/S. 65 (2)
• Conduct audit at the place of business of registered person or in their office.
• Registered person shall be informed by way of a notice, u/s. 65 (3) Not less than 15 working days prior
to the conduct of audit in such manner as may be prescribed.
AUDIT UNDER SUB-SECTION (1) SHALL BE COMPLETED U/S. 65 (4)
• Within 3 months from the date of commencement of audit.
• Commissioner may extend the period of audit by a further period not exceeding six months.
ON CONCLUSION OF AUDIT, THE PROPER OFFICER SHALL, U/S. 65 (6)
• Within 30 days inform the registered person, whose records are audited, about the findings, his rights
and obligations & the reasons for such findings.
SPECIAL AUDIT U/S. 66 OF CGST ACT
IF AT ANY STAGE OF SCRUTINY, INQUIRY, INVESTIGATION OR OTHER PROCEEDINGS BEFORE HIM, ANY OFFICER
NOT BELOW THE RANK OF ASSISTANT COMMISSIONER, U/S. 66 (1)
• Having regard to nature & complexity of the case & interest of revenue, is of the opinion that the value has
not been correctly declared or credit availed is not within the normal limits.
• He may, with prior approval of commissioner, direct registered person in writing to get his records including
books of account examined & audited by CA or cost accountant as may be nominated by Commissioner.
CA OR COST ACCOUNT SO NOMINATED SHALL, U/S. 66 (2)
• Within 90 days submit a report of such audit duly signed & certified by him to said Assistant Commissioner.
• Assistant Commissioner may on application made to him extend the said period by a further period of 90
days.
EXPENSES OF THE EXAMINATION AND AUDIT OF RECORDS UNDER SUB-SECTION (1), INCLUDING, U/S. 66 (5)
• Remuneration of CA or cost accountant, shall be determined & paid by Commissioner & such determination
shall be final.
POWER OF INSPECTION, SEARCH & SEIZURE U/S. 67 OF CGST ACT

IF POWER OFFICER, NOT BELOW THE RANK OF JOINT COMMISSIONER, HAS REASONS TO BELIEVE THAT,
U/S. 67 (1)
• Taxable person suppressed any transaction relating to supply or stock of goods in hand, or claimed
ITC in excess of his entitlement or indulged in contravention of the Act or rules thereunder to evade
tax; or
• Any person engaged in business of transporting goods or owner or operator of warehouse or
godown or any other place is keeping goods which have escaped payment of tax,
• He may authorize in writing any officer of central tax to inspect any places of business of taxable
person or persons engaged in business of transporting goods or owner or operator of warehouse or
godown or any other place.
DOCUMENTS, BOOKS OR THINGS REFERRED TO IN SUB-SECTION (2), U/S. 67 (3)
• Produced by taxable person which have not been relied upon for the issue of notice, shall be
returned to such person within a period not exceeding 30 days of issue of said notice.
POWER TO ARREST U/S. 69 OF CGST ACT
IF COMMISSIONER HAS REASONS TO BELIEVE THAT A PERSON COMMITTED ANY

OFFENCE SPECIFIED U/S. 132(1(A) OR (B) OR (C) OR (D) WHICH IS PUNISHABLE U/S.
132 (1) (I) (II) OR 132 (2), U/S. 69 (1)
• He may, by order authorize any officer of central tax to arrest such person.
IF A PERSON IS ARRESTED UNDER SUB-SECTION (1) FOR AN OFFENCE SPECIFIED U/S.
132(5), U/S. 69 (2)
• Officer authorized to arrest the person shall inform such person of the grounds of
arrest & produce him before a Magistrate within 24 hours.
ARREST
Means taking into custody of a person under some lawful command or authority.
COGNIZABLE OFFENCE NON-COGNIZABLE OFFENCE
Means serious category of offences in respect of Means relatively less serious offences in respect of
which a police officer has authority to make arrest which a police officer does not have the authority to
without a warrant and to start an investigation with make an arrest without a warrant and an
or without permission of a court. investigation cannot be initiated without a court
order.
In section 132 of CGST Act it is provided that the In section 132 of CGST Act other offences other than
offences relating to taxable goods and/or services mentioned above are non-cognizable and bailable and
where amount of tax evaded or amount of ITC all arrested persons shall be released on bail by
wrongly, availed or amount of refund wrongly taken Deputy / Assistant Commissioner.
exceeds 5 crores, it shall be cognizable & non-bailable
& in such cases bail can be considered by Judicial
Magistrate only.

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CS EXECUTIVE

TAX LAW AND PRACTICE

Sr. Chapter Name Page No.

01 GST IN INDIA - AN INTRODUCTION

It is a kind of charge Direct Taxes that is

which is used to provide public services. to Government by the persons on who it

Meaning GST is a value

GST STRUCTURE IN INDIA

Idea of GST mooted Talks of GST Gained momentum

CVD AND SPECIAL CVD OF

EXCISE DUTY ANTI-DUMPING DUTY PROPERTY TAX STAMP DUTY

Articles 245 of Constitution Duties of excise on the following goods manufactured

ENTRY NO 51 OF STATE LIST

ENTRY NO 54 OF STATE LIST 1. Notwithstanding anything contained in

ARTICLE 269A : LEVY AND COLLECTION OF GST ON INTER-STATE SUPPLY

GST COUNCIL: ARTICLE 279A

GST Council make Centre has weightage of one-

GST COMMON PORTAL

Common GST Electronic Portal www.gst.gov.in a website managed by GSTN, a

02 CHARGE OF TAX & APPLICATION OF CGST & IGST

Alcoholic liquor Housekeeping and Cab

• Max Rate 20%

Sec 5(1) IGST

service) gas & Aviation • Same as Sec 9(5)

Subject to the provisions of Section 10, supply

India, developer or a Special Economic Zone INTER STATE SUPPLY

Subject to the provision of Section 10,

goods are in the same State or same

SECTION 9 OF IGST ACT

SEC 16 OF IGST ACT ZERO RATED SUPPLY

1. “Zero Rated Supply” means any of the

03 SUPPLY UNDER GST

ESTABLISHMENT IN DIFFERENT STATE

ESTABLISHMENT IN ANOTHER COUNTRY – EXPLANATION TO SEC 8 OF IGST ACT

means a person who occasionally undertakes transactions

• means any person who

• He is required to deduct an amount as tax out of the consideration

Supplies taxable at a 'NIL' rate of tax;

EXEMPT EXEMPT SUPPLIES In relation to supply of goods or services or

Non-taxable supplies supply of goods or services or both, but shall

• Wherein transfer of property in goods (whether as

• Of any immovable property

RELATED PERSON PERSONS SHALL BE DEEMED TO BE RELATED IF

In the course or furtherance of business

Where certain activities or transactions constitute a

Supply of goods by principal to his agent

• Supply of goods or services or both between

SEC 7 (1A) (C ) SCHEDULE II : ACTIVITIES TO BE TREATED AS SUPPLY OF GOODS OR SUPPLY OF SERVICE

SEC 7 (1A) (C ) SCHEDULE II : ACTIVITIES TO BE TREATED AS SUPPLY OF GOODS OR SUPPLY OF SERVICE

SEC 7 (1A) (C ) SCHEDULE II : ACTIVITIES TO BE TREATED AS SUPPLY OF GOODS OR SUPPLY OF SERVICE

Temporary transfer or Permitting the use

use or are used, or made to buyer, wholly or

SEC 7 (1A) (C ) SCHEDULE II : ACTIVITIES TO BE TREATED AS SUPPLY OF GOODS OR SUPPLY OF SERVICE

SCHEDULE III NEGATIVE LIST UNDER GST

a. Services by an employee to the employer in c. Services of funeral, burial, crematorium or

COMPOSITE AND MIXED SUPPLY (SEC.8 OF CGST)

COMPOSITE OR MIXED SUPPLY U/S. 8

Key Note: - Supply Should be at Single Price

TURNOVER IN A STATE SEC 2(112)

TURNOVER IN STATE OR “TURNOVER IN UNION TERRITORY” MEANS THE AGGREGATE VALUE OF

ELIGIBILITY FOR COMPOSITION SCHEME SEC 10(1) CONDITIONS TO OPT

THE NINE SPECIAL CATEGORY STATES ARE

RATE OF TAX OF THE

No Central State /UT Total Basis of