GST Customs

INDIRECT TAXES
By
Ashok K Manchanda,
May 17, 2023 ITD, Delhi 1
CCIT.
MAJOR Central Taxes
• The GST would replace the following taxes:
(i) Taxes currently levied and collected by the Centre:
a. Central Excise duty; Service Tax;
b. Duties of Excise (Medicinal and Toilet Preparations)
c. Additional Duties of Excise (Goods of Special Importance)
d. Additional Duties of Excise (Textiles and Textile Products)
e. Additional Duties of Customs (commonly known as CVD)
f. Special Additional Duty of Customs (SAD)
g. Central Surcharges and Cesses so far as they relate to supply
of Goods and Services.

Major State Taxes
a. State VAT
b. Central Sales Tax
c. Luxury Tax
d. Entry Tax (All Forms)
e. Entertainment And Amusement Tax (Except When
Levied By The Local Bodies)
f. Taxes On Advertisements
g. Purchase Tax
h. Taxes On Lotteries, Betting, And Gambling
i. State Surcharges And Cessess Of Areas They Relate
To Supply Of Goods And Services

OTHER MAJOR TAXES
• CUSTOMS DUTY (Central)

&
• Excise Duty on Liqour (Alcohol) for
Human Consumption.

Customs Duty
• Customs Duty is a kind of Indirect Tax and is
applicable on all goods imported and a few
goods exported out of the country. Duties levied on
import of goods are termed as import duty while
duties levied on exported goods are termed as an
export duty.
• The government uses this duty to raise its revenues,
safeguard domestic industries, and regulate
movement of goods.

Different Types of Import Duties?
• Import duties are generally of the following
types:
• 1. (Basic) Customs Duty;
• 2. Additional Customs Duty also known
as Counter Vailing Duty (CVD);
• 3. Spl. Additional Duty of Customs (SAD);
• 4. Anti Dumping Duty.
• All matters related to customs duty fall under the
Central Board of Excise & Customs (CBEC).
Harmonized System of Nomenclature(HSN)
HSN stands for Harmonized System of Nomenclature
and is an internationally known method of naming,
classifying and identifying products. In India HSN
codes are used to identify goods and calculate GST.
Whether you are dealer of goods or services, the
GST laws require you to make invoices with the
corresponding HSN codes for products or SAC
codes for services. SAC is an internationally known
method of naming, classifying and identifying
Services.
ITD, Delhi 8
8 DIGIT HSN CLASSIFICATION IN INDIA
• India is a member of World Customs Organization
(WCO) since 1971. It was originally using 6-
digit HSN codes to classify commodities for Customs
and Central Excise. Later Customs and Central Excise
added two more digits to make the codes more precise,
resulting in an 8 digit classification.
• Under HSN, all the goods and services are divided into
21 sections, 99 chapters. Under 99 chapters there are
1244 headings and 5244 subheadings.
• Each item which is used for trade or commercial use, it
is identified with 8 digit code using the HSN code rules.

Rates of Customs Duties
• The rates of customs duties are
either specific or on ad valorem
basis, that is, it is based on the value
of goods.

How is the Assessable Value of
Goods Calculated?
• As per the new provisions the assessable value will be calculated in the
following manner:
ASSESSABLE VALUE= FOB( C) + Cost of Insurance (I) + Cost of
transport, landing charges at customs station (F) .
AV = C + I + F
• These values will be calculated as per actuals.
• Price relevant for customs valuation under section 14 (1) is the price
for delivery at time and place of importation.
• High Sea Sale (HSS) means sale of goods by transfer of documents
before clearance of goods from customs.
•

How is Customs Duty calculated ?
• For calculating Custom Duty, you can use custom
duty calculator in the ICEGATE portal.
• While accessing the calculator you will be
required to enter the HSN Code of the product
you are willing to import.
• Then you will be asked to enter description in 30
characters followed by selecting the country of
origin.

*
Types of Import Duties in India
after GST?
• Under GST, there are two main Import Duties –
i. Basic Custom Duty (BCD) and
ii. Integrated Goods and Services Tax (IGST).
• Basic Custom Duty :
BCD is a specific type of import duty, which
is levied on value of goods imported into India
from other countries. It is charged as usual
even after GST.
Integrated Goods and Services Tax
(IGST)
 IGST is a new type of tax under GST regime,
which is levied on goods imported into India
from other countries. Basically, the tax is levied
collected on the value of Goods + Basic Customs
Duty.
 There are other additional import duties like
Compensation Cess, Safeguard Duty and
Anti-Dumping Duty are levied on some goods.

Compensation Cess
 Compensation Cess is levied on certain
goods such as pan-masala, cigarettes, etc. in order
to provide compensation to the states for loss of
revenue due to implementation of Goods and
Services Tax (GST).
 Safeguard Duty:
Safeguard Duty is other type of custom duty, which
is levied on goods when sudden rise in imports of
any product has caused serious problem to the
domestic industries.
Anti-Dumping Duty
Anti-dumping Duty is a tariff, levied by
government on goods that are believed to be
dumped in national market.
Basically, dumping is a process where a
company exports a commodity at a price
lower than the price it normally charges on
its own home market.
It is levied to protect the Domestic Industry.
Duty Drawback (DDB)Scheme
• DDB was introduced by the Ministry of
Finance as a rebate for duty chargeable on
any imported materials or excisable
materials used in manufacture or
processing of goods, manufactured in India
and exported. The exported products are
revenue neutral.

DDB
According to Section 74 of Customs Act, when
duty paid imported goods are re-exported within
two years, the importer may claim refund of
import duty up to maximum 98% of the customs
duty paid at the time of importation as duty
drawback.
The following condition to be satisfied:
The goods are identified to the satisfaction of the
Assistant Commissioner of Customs or Deputy
Commissioner of Customs as the goods which were
imported.
HISTORY OF
GOODS & SERVICE TAX
(GST) IN INDIA
By
Ashok K Manchanda,
CCIT.
OVERVIEW
• It is a destination-based tax on consumption of goods and services.
• It is levied at all stages right from manufacture up to final
consumption.
• One gets credit of taxes paid at previous stages available as
set-off.
• In a nutshell, only value addition will be taxed, and burden of tax
is to be borne by the final consumer.

CONCEPT OF
DESTINATION-BASED TAX
ON CONSUMPTION?
The tax would accrue to the taxing
authority which has jurisdiction over
the place of consumption which is
also termed as place of final supply.

GST: A VALUE ADDED TAX
• GST is a Value added Tax (VAT)

levied on SUPPLY of Good or
Services or Both. SUPPLY may be
due to Manufacture, Trade, Sale
and SUPPLY of SERVICES.

TAXABLE EVENT UNDER
GST?
• The taxable event under GST shall be the date of
supply of goods or services or both made for
consideration in the course or furtherance of business.
• The taxable events under the existing indirect tax laws

such as date of manufacture, sale, or provision of
services shall stand subsumed in the taxable event
known as ‘supply’.

TAXABLE EVENTS
(A Complete OVERHAUL)
Scope of ‘SUPPLY’ under GST
The term ‘supply’ is wide in its import covers all forms of
supply of goods or services or both that includes sale,
transfer, barter, exchange, license, rental, lease or
disposal made or agreed to be made for a consideration
by a person in the course or furtherance of business. It
also includes import of service.
The GST law also provides for including certain
transactions made without consideration within the scope
of supply.
Necessary Elements that constitute
SUPPLY under CGST/SGST
• In order to constitute a ‘supply’, the following elements
are required to be satisfied, i.e.-
(i) The activity involves supply of goods or services or both;
(ii) the supply is for a consideration unless otherwise

specifically provided for;
(iii) the supply is made in the course of business;
(iv) the supply is a taxable supply; and
(v) the supply is made by a taxable person.
•

Different Types of Supplies
under the GST
(i) Taxable and exempt supplies.

(ii) Inter-State and Intra-State supplies,

(iii) Composite and mixed supplies and
•(iv) Zero rated supplies.
•A ‘TAXABLE SUPPLY’ means a supply
of goods or services or both which is
chargeable to GST under the GST Act.
Inter-state supplies and Intra-
state supplies
•Inter-state and intra-state supplies have
specifically been defined in Section 7(1), 7(2) and
8(1), 8(2) of the IGST Act respectively. Broadly,
where the location of the supplier and the place of
supply are in same state it will be intra- state and
where it is in different states it will be inter-state
supplies.
•

GENERIC
MEANING:
NOT A SUPPLY AT
ALL
CREDIT AT EVERY STAGE OF
THE CHAIN
• GST offers comprehensive and
continuous chain of tax credits from the
Producer’s Point /Service Provider’s
Point to the Retailer/Consumer level.
• Thus it results in taxing only the Value

added at each stage of the Supply chain.

ULTIMATE BURDEN IS
BORNE BY CONSUMER
• The Supplier at each stage is permitted to avail
credit of GST paid on the purchase of Goods
and/or Services and can set off this credit
against the GST Payable on the Supply of
Goods and/or Services to be made by him.
• Thus, it is only the Final Consumer who bears
the GST charged by the past Supplier in the
Supply Chain , with set off benefits at all the
previous stages.
CGST / SGST/IGST
• The CGST / SGST is payable on all intra-State
supply of goods and/or services and
• IGST is payable on all inter-State supply of
goods and/or services.
• The CGST /SGST and IGST are payable at the
rates specified in the Schedules to the
respective Acts.

NEED FOR GST IN INDIA
Multiple Taxes & Multiple Taxable Events:
•Cascading Effect of Taxes.
•Manufacturer charges Excise Duty (ED) &
Value Added Tax (VAT). ED is a CG Tax.
•Manufacturer gets credit of ED & VAT on
Goods.
•VAT payable to State Govt.(SG) is charged on
Basic Value +ED.
•Hence there is tax on tax.
*
• Dealer charges VAT on subsequent sales
of Goods.
• VAT is Charged on value comprising
Basic Value + Excise Duty(ED) + Service
Tax(ST) + Profit. Hence dealer does not
get credit of ED & ST.
• (As ED & ST form part of Cost, but not
allowed as deduction, hence there is tax
on tax). This is CASCADING EFFECT.
NO CASCADING EFFECT
• As only the value added at each stage is
brought to TAX under the GST, there is no
tax on tax or CASCADING EFFECT
UNDER THE GST.
• CASCADING EFFECT = TAX ON TAX

Example
Let us see How Cascading
Effect Works

COMMODITIES KEPT OUTSIDE
PURVIEW OF GST
• 1. ALCOHOLIC LIQUOR FOR HUMAN CONSUMPTION.
2. FIVE PETROLEUM PRODUCTS VIZ.

• I. PETROLEUM CRUDE,
• II. MOTOR SPIRIT (PETROL),
• III. HIGH SPEED DIESEL,
• IV. NATURAL GAS AND
• V. AVIATION TURBINE FUEL.

STATUS OF TAXATION OF
ABOVE COMMODITIES
AFTER INTRODUCTION OF
GST
• These have temporarily been kept out of GST.
The GST Council shall decide the date from
which they shall be included in GST.
• The existing taxation system (VAT &
State Excise) will continue in respect of
the above commodities.
Status Of Tobacco And Tobacco
Products Under GST Regime?
•Tobacco and Tobacco Products

are leviable to GST.
•In addition, the Centre has the
power to levy Central Excise duty
on Tobacco and Tobacco
Products .
PERSONS LIABLE TO PAY GST
UNDER THE GST REGIME
• Under the GST regime, tax is payable by the
REGISTERED TAXABLE PERSON on the SUPPLY
OF GOODS AND/OR SERVICES.
• Liability to pay tax arises when the taxable person
crosses the turnover threshold of Rs.20 lakhs (Rs. 10
lakhs for NE & Spl Category States), except in certain
specified cases where the taxable person is liable to pay
GST even though he has not crossed the threshold limit.
ITD, Delhi 45
WHO TO PAY GST
• Under the GST regime, tax is payable by the
registered taxable person on the supply of
goods and/or services.
• Liability to pay tax arises when the taxable person
crosses the turnover threshold of Rs.20 lakhs (Rs. 10
lakhs for NE & Special Category States) except in
certain specified cases where the taxable person is
liable to pay GST even though he has not crossed the
threshold limit.

CGST / SGST & IGST
• The CGST / SGST is payable on all intra-State
supply of goods and/or services and IGST is
payable on all inter- State supply of goods
and/or services.
• The CGST /SGST and IGST are payable at the

rates specified in the Schedules to the
respective Acts.

COMPOSITION SCHEME
• Small taxpayers with an aggregate turnover in a
preceding financial year up to Rs. 1.50 Crore
(Rs.75 lakhs for special category NE States) are
eligible for Composition Levy.
• This scheme is basically for suppliers of goods and
restaurant service providers only.
• Under the scheme, a taxpayer shall pay tax as a
percentage of his turnover in a state during the
year without the benefit of ITC.
CONCESSIONS FOR SMALL
TAXPAYERS
• Tax payers with an aggregate turnover in a financial year up
to Rs.20 lakhs & Rs.10 Lakhs for NE and special category
states would be exempt from taking registration under GST.
• Further, a person whose aggregate turnover in the preceding
financial year is less than Rs.1 Crore (75 lakhs for 9 special
category states viz 7 NE STATES +. Sikkim, +Himachal
Pradesh) can opt for a simplified composition scheme where
tax will payable at a concessional rate on the turnover in a
state.

TAX RATES FOR
COMPOSITION SCHEME
• The rate of tax for CGST and SGST/UTGST shall not
exceed :
• 1% for manufacturer as well as traders;
• 5% for specific services as mentioned in para 6(b) of
Schedule II viz serving of food or any other article for
human consumption i.e. restaurant service providers.
• A taxpayer opting for composition levy shall not collect
any tax from his customers.
•
•

COMPOSITION SCHEME
• The composition levy is an alternative method of levy
of tax, designed for small taxpayers whose turnover is
up to prescribed limit. The objective of composition
scheme is to bring simplicity, ease compliance burden
and reduce cost of compliance for the small
taxpayers. The scheme is optional. It essentially
provides for a turnover tax regime for such tax
payers, with facility for filing of return on quarterly
basis (instead of monthly return by the normal tax
payers).

COMPOSITION LEVY
• An eligible person opting to pay tax under the
composition scheme shall, instead of paying
tax on every invoice at the specified rate, pay
tax at a prescribed percentage of his turnover
every quarter.

RATES OF COMPOSITION LEVY
• Certain Manufacturered Goods @1% {.5% as CGST
+ .5% as CGST }
of the TURNOVER of Taxable Goods in the STATE/UT.
•
• Restaurant Services @5% {2.5% as CGST
+ 2 .5% as
CGST}
of the TURNOVER of Taxable Goods in the STATE/UT.
•

ELIGIBILITY CONDITIONS FOR
COMPOSITION SCHEME
• Composition scheme is a scheme for payment
of GST available to small taxpayers whose
turnover in the preceding financial year did
not cross Rs. 1.5 crore.

Special Category States
• In the case of following 9 states, the limit of turnover
is Rs. 75 Lakhs in the preceding financial year.
a) Arunachal Pradesh
b) Assam
c) Manipur
d) Meghalaya
e) Mizoram
f) Nagaland
g) Sikkim
h) Tripura and
i) Himachal Pradesh.

PERSONS NOT ELIGIBLE FOR
COMPOSITION SCHEME
Supplier of Services, other than restaurant service;
As per the recent CGST (Amendment) Act, 2018, a person who opts to pay tax under composition
scheme may supply services (other than those referred to in clause (b) of paragraph 6 of Schedule
II), of value not exceeding ten per cent of turnover in a State or Union territory in the preceding
financial year or five lakh rupees, whichever is higher.
a)a person engaged in making any inter-State outward supplies of

goods.
b)a supplier making any supply of goods through an electronic commerce
operator who is required to collect tax at source under section 52; and
a manufacturer of such goods as may be notified by the Government on
c)
the recommendations of the Council.

WHEN TO PAY TAX UNDER
COMPOSITION LEVY
• A person opting for composition
levy will have to pay on quarterly
basis before 18th of the month
succeeding the quarter relating to
supplies.
•

WHEN COMPOSITION
SCHEME LAPSES
• The option to avail COMPOSITION SCHEME
shall lapse from the day on which his aggregate
turnover during the financial year exceeds Rs.
150 Lakhs/75 Lakhs.
• Once he crosses the threshold, he shall file an
intimation for withdrawal from the scheme in FORM
GST CMP-04 within seven days of the occurrence of
such event.
PERSON OPTING FOR COMPOSITION
SCHEME TO COMPLY WITH THE
FOLLOWING CONDITIONS
(a) he is neither a casual taxable person nor a non-resident taxable
person;
(b) the goods held in stock by him on the appointed day have not been
purchased in the course of inter-State trade or commerce or
imported from a place outside India or received from his branch
situated outside the State or from his agent or principal outside the
State, where the option is exercised under sub-rule (1) of rule 3;
(c) he was not engaged in the manufacture of goods as notified under
clause (e) of sub-section (2) of section 10, during the preceding
financial year;

CONDITIONS AND RESTRICTIONS FOR
AVAILING COMPOSITION SCHEME
(a) the goods held in stock by him have not been purchased from an
unregistered supplier and where purchased, he pays the tax
under sub-section (4) of section 9 (Reverse Charge Mechanism);
(b) he shall pay tax under sub-section (3) or sub-section (4) of
section 9 on inward supply of goods or services or both;
(c) he shall mention the words “composition taxable person,
not eligible to collect tax on supplies” at the top of the bill of
supply issued by him; and
(d) he shall mention the words “composition taxable person” on
every notice or signboard displayed at a prominent place at his
principal place of business and at every additional place or places
of business.

*
• Every person who has furnished such an
intimation, may electronically furnish at the
common portal, a statement in FORM GST
ITC-01 containing details of the stock of inputs
and inputs contained in semi-finished or
finished goods held in stock by him on the date
on which the option is withdrawn, within a
period of thirty days from the date from which
the option is withdrawn.
PERSONS NOT ELIGIBLE FOR
COMPOSITION SCHEME
1. Taxpayers making inter-state supplies (except
persons making inter-state supplies of certain
specified handicraft goods); or
2. Taxpayers making supplies through e-
commerce operators who are required to collect tax at
source shall not be eligible for composition scheme.
3. Also, manufacturers of ice-cream, pan masala
and tobacco products will not be eligible for
Composition Scheme.

NO ITC & NO TAX INVOICE
• A taxable person opting to pay tax
under the composition scheme cannot
take credit on his input supplies.
• A person paying tax under composition
scheme cannot issue a tax invoice
under GST?

CONSEQUENCES OF WRONG COMPOUNDING
GENERAL  No collection and No ITC
If taxable person paid tax

under composition despite
being non-eligible
Recovery of tax and penalty

u/s 73 and 74
RECENT CHANGES
(i)Government empowered to enhance upper limit for
composition scheme to Rs.1.5 crore by notification.
(ii)A person who opts to pay tax under composition
scheme may supply certain services of value
(a) not exceeding ten per cent of turnover in a State
or Union territory in the preceding financial year; or
(b) five lakh rupees, whichever is higher.
• (Services to be other than those referred to in
clause (b) of paragraph 6 of Schedule II),
TRANSACTION IN SECURITIES
• Securities have been specifically

excluded from the definition of
goods as well as services. Thus,
the transaction in securities shall
not be liable to GST.
May 17, 2023 66

TAXABLE EVENT UNDER GST?
• Taxable event under GST is the time
at which supply of goods or services
or both is made.
• CGST and SGST/ UTGST will be
levied on intra- State supplies. IGST
will be levied on inter-State supplies.

SUPPLIES MADE WITHOUT
CONSIDERATION
• Yes, but only those activities which are specified

in Schedule I to the CGST Act / SGST Act.
• The said provision has been adopted in IGST Act
as well as in UTGST Act also.
• In cases where the inputs/ capital goods sent for
job work are not returned with in the specified
time limit, the supplies made by the principal to
job worker will also be deemed to be a supply.
What IS COMPOSITE SUPPLY?
Composite Supply is a supply consisting of two or more
taxable supplies of goods or services or both or any
combination thereof, which are bundled in natural course and
are supplied in conjunction with each other in the ordinary
course of business and where one of which is a principal
supply.
For example, when a consumer buys a Television Set (Tax
Rate 18%) and he also gets Warranty and a Maintenance
Contract (Tax Rate 12%) with the TV, for Rs.30,000. No
separate prices mentioned. This supply is a composite supply.
In this example, supply of TV is the principal supply,
warranty and maintenance service are ancillary.
•

Tax Treatment of Composite Supply
• Composite Supply shall be treated as
supply of the principal supply.
• The Tax Rate applicable will be the one
applicable to the principal supply.
• In the above example, the total price of the
SUPPLY will be taxed at the higher rate of
18% applicable to principal supply.
What is a Composite Supply
under CGST/ SGST/UTGST Act
Composite Supply means a supply made by a taxable person to a recipient
comprising two or more taxable supplies of goods or services, or any
combination thereof, which are naturally bundled and supplied in
conjunction with each other in the ordinary course of business, one of
which is a principal supply.
•Principal supply has been defined in Section 2(90) of the CGST Act as
supply of goods or services which constitutes the predominant element of a
composite supply and to which any other supply forming part of that
composite supply is ancillary.
•For example, where goods are packed and transported with insurance, the
supply of goods, packing materials, transport and insurance is a composite
supply and supply of goods is the principal supply.

What is a Mixed Supply
Mixed Supply means two or more individual supplies of goods
or services or any combination thereof, made in conjunction
with each other by a taxable person for a single price where
such supply does not constitute a composite supply. For
example, a supply of package consisting of canned foods,
sweets, chocolates, cakes, dry fruits, aerated drink and fruit
juice when supplied for a single price is a mixed supply. Each
of these items can be supplied separately and it is not
dependent on any other. A mixed supply comprising two or
more supplies shall be treated as supply of that particular
supply which attracts the highest rate of tax.

What Is MIXED SUPPLY?
• Mixed supply is combination of more than one
individual supplies of goods or services or any
combination thereof made in conjunction with
each other for a single price, which can
ordinarily be supplied separately.
• For example, a shopkeeper selling storage water
bottles (Tax Rate 12%) along with refrigerator
(Tax Rate 18%) . Bottles and the refrigerator can
easily be priced and sold separately.

Mixed Supply To Be Taxed At The
Highest Rate
• Mixed supply would be treated as supply of
that particular goods or services which
attracts the highest rate of tax.
• In the above example, the total price of the
SUPPLY will be taxed at the higher rate of
18%.

REGISTRATION : POINTS TO PONDER
REGISTRATION-1
As per Section 22 of CGST/SGST Act 2017, every supplier
who makes a taxable supply of goods and / or services
which are leviable to tax under GST law, and his
aggregate turnover in a financial year exceeds the
threshold limit of 20 lakh rupees shall be liable to
register himself in the State or the Union territory of Delhi
or Puducherry from where he makes the taxable supply.
•A person without GST registration can neither
collect GST from his customers nor can claim any
input tax credit of GST paid by him.
REGISTRATION-2
• In case of eleven special category states, this threshold limit
for registration liability is ten lakh rupees.
• There are certain categories of suppliers, who shall be liable
to take registration even if their aggregate turnover is below
the said threshold limit of Rs.20 lakh. (Section 24 )
• On the other hand, as per Section 23 of the Act, an
agriculturist in respect of supply of his agricultural produce;
as also any person exclusively making supply of non-taxable
or wholly exempted goods and/or services under GST law will
not be liable for registration.

REGISTRATION
a TAXABLE SUPPLY is made

[Sec  22]
 Registration to be taken on crossing threshold (in general
cases)
 Threshold limit – aggregate turnover is >20 Lacs (40 Lacs
for goods) [10 lacs for N.E. States]
 Term used is ‘aggregate turnover’
 Sec 2(6) - “aggregate turnover” 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), exempt supplies, exports of goods or
services or both and inter-State supplies of persons having
the same Permanent Account Number, to be computed on
all India basis but excludes central tax, State tax, Union
territory tax, integrated tax and cess;
 Sec 2(47) - “exempt supply” means supply of any goods
or services or both which attracts nil rate of tax or which
may be wholly exempt from tax under section 11, or under
section 6 of the Integrated Goods and Services Tax Act,
and includes non-taxable supply
KARNATA
KA
Supplier - Delhi Recipient- Agra
Origin Destination
1. The supply originates from Delhi.

2. Supply consumed at Agra.
3. The supply is an “Inter - state Supply”.
Fig. 1: Inter - State Supply

AGGREGATE TURNOVER
• Aggregate turnover shall include the
aggregate value of all taxable supplies,
exempt supplies and exports of goods
and/or services and exclude taxes viz. GST.
Aggregate turnover shall be computed on
all India basis. For NE States and special
category states, the exemption threshold
shall be [Rs. 10 lakhs. \

COMPULSORY REGISTRATION CASES
• Following categories of persons, irrespective of the threshold
limit, are required to be registered compulsorily :
i) persons making any inter-State taxable supply;
ii) casual taxable persons making taxable supply;
iii) persons who are required to pay tax under reverse charge;
iv) persons who are required to pay tax under section 9(5);
v) non-resident taxable persons making taxable supply;
vi) persons who are required to deduct tax under section 51;
vii) persons who make taxable supply of goods or services on behalf
of other registered taxable persons whether as an agent or
otherwise;

COMPULSORY REGISTRATION CASES
viii). Input service distributor (whether or not separately registered);
ix). Persons who supply goods, other than supplies specified
under Section 9(5), through such e- commerce operator who is
required to collect tax at source under section 52;
x). every electronic commerce operator who is required to
collect tax at source under section 52.
every person supplying online information and data base retrieval
i)
services from a place outside India to a person in India, other than

a registered person; and,
ii) And any other person as the Govt may notify.

NO REGISTRATION REQUIRED.
• Person exclusively engaged in

supplies which are under Reverse
Charge Mechanism need not be
registered in GST?

NOT ELIGIBLE FOR
THRESHOLD EXEMPTION
• All taxpayers eligible for threshold exemption
will have the option of paying tax with input
tax credit (ITC) benefits.
• Tax payers making inter-State supplies of
goods; or
• Tax payers paying tax on Reverse Charge
MECHANISM (RCM) basis shall not be
eligible for threshold exemption.
ADVANTAGE OF TAKING GST
REGISTRATION
•
Legally recognized as supplier of goods/ services.
•
Proper accounting of taxes paid on the input goods
or services which can be utilized for payment of GST
due on supply of goods or services or both by the
business.
•
Legally authorized to collect tax from his purchasers
and pass on the credit of the taxes paid on the goods
or services supplied to purchasers or recipients.

Time Limit for Taking Registration
• A person should take a Registration, within thirty

days from the date on which he becomes liable to
registration.
• A Casual Taxable Person and a Non-Resident
Taxable Person should however apply for
registration at least 5 days prior to commencement of
business.
•

VOLUNTARILY REGISTERED PERSON
• In terms of a person, though not liable to be

registered under Section 22 or section 24 may get
himself registered voluntarily, as per Section
25(3), and all provisions of this Act, as are
applicable to a registered taxable person, shall
apply to such person.
• The person, once registered, will have to pay
GST irrespective of his aggregate turnover.

Whether PAN Mandatory for
REGISTRATION
• Permanent Account Number is generally mandatory for grant
of registration.
• However as per the proviso to the aforesaid section 25(6), a
person required to deduct tax under Section 51, may have a
Tax Deduction and Collection Account Number, in lieu of a
PAN, in order to be eligible for grant of registration.
• Also, as per Section 25(7) PAN is not mandatory for a non-
resident taxable person who may be granted registration on the
basis of self-attested copy of valid passport.

Time of Supply
The time of supply fixes the point when the

liability to charge GST arises. It also indicates
when a supply is deemed to have been made. The
CGST/SGST Act provides separate time of
supply for goods and services.

When does liability to pay GST
arise for supply of goods?
provides for time of supply
Section 12 of the CGST/SGST Act
of goods. The time of supply of goods shall be the earlier of
the following namely,
(i) the date of issue of invoice by the supplier or the last date
on which he is required under Section 31, to issue the invoice
with respect to the supply; or
(ii) the date on which the supplier receives the payment with
respect to the supply.
•However, vide Notification No. 66/2017-Central Tax dated
15.11.2017, liability to pay tax at the time of receipt of
advance has been relaxed in case of goods.

When does Liability to pay GST
arise for Supply of Services
Section 13 of the CGST/SGST Act provides for time of supply of services.
The time of supply of services shall be the earlier of the following namely,
(a) the date of issue of invoice by the supplier if the invoice is issued
within the period prescribed under section 31 or the date of receipt of
payment whichever is earlier; or
(b) the date of provision of service, if the invoice is not issued within
the period prescribed under section 31 or the date of receipt of payment
whichever is earlier.
(c)the date on which the recipient shows the receipt of services in
his books of account, in case where the provisions of clause (a) and (b) do
not apply.
•

PLACE OF SUPPLY OF GOODS – DOMESTIC TRANSACTIONS
PLACE OF SUPPLY (Goods) – CROSS BORDER TRANSACTIONS
PLACE OF SUPPLY OF SERVICES
[Section 12 and 13 of IGST Bill]
INPUT TAX
• Input tax means the Central Tax (CGST), State Tax (SGST),
integrated tax (IGST) or Union Territory Tax (UTGST)
charged on supply of goods or services or both made to a
registered person.
• It also includes tax paid on reverse charge basis and
integrated tax charged on import of goods. It does not
include tax paid under composition levy.
Input Tax Credit means the credit of input tax on the supplies
of goods or services or both received by a registered person.
•

INPUT TAX CREDIT
• includes taxes paid on input goods, input services and
capital goods. Credit of tax paid on capital goods is
permitted to be availed in one instalment.
• A registered person is entitled to take credit of input tax
charged on supply of goods or services or both to him,
which are used or intended to be used in the course or
furtherance of business, subject to other conditions and
restrictions.
• The definition of input tax includes the tax payable under
the reverse charge and integrated tax charged on
import of goods. .

Conditions Necessary for Availing
ITC
• . Following four conditions are to be satisfied by the registered
taxable person for obtaining ITC:
(a) he is in possession of tax invoice or debit note or such other tax
paying documents (such as bill of entry or any other document
prescribed under the Customs Act, ISD invoice as prescribed in
Rule 36(1) of the CGST Rules).
(b) he has received the goods or services or both;
(c) the supplier has actually paid the tax charged in respect of the
supply to the government; and
(d) supplier he has furnished the return under section 39.

Particulars Necessary in Tax Invoice
or Debit Note for claiming ITC
If the said document does not contain all the specified
particulars, but contains the details
i.the amount of tax charged,
ii.description of goods or services,
iii.total value of supply of goods/ services or both,
iv.GSTIN of the supplier and recipient, and
v.place of supply in case of inter-State supply, input
tax credit may be availed by such Registered Person.

Goods Received in Lots, When
Entitled to ITC?
The registered person shall be

entitled to the credit only upon
receipt of the last lot or installment.

Taking Input Tax Credit without payment
of consideration for the supply
• The recipient can take ITC, but he is
required to pay the consideration
along with tax within 180 days from
the date of issue of invoice. This
condition is not applicable where tax
is payable on reverse charge basis.
If Consideration Not Paid along
with Tax within 180 days?
If the registered person has not paid consideration

along with tax within 180 days from the date of issue
of invoice, the amount of ITC would be added to
output tax liability of the person. He would also be
required to pay interest. However, he can take ITC
again on payment of consideration and tax.

GST Council
• The GST council shall make
recommendations to the union and
states on the taxes, cesses and
surcharges levied by the centre, the
states and the local bodies which
may be subsumed in the GST.

Activities of Charitable Institutions ?
Services of charitable activities by an

entity registered under Section 12AA
of the Income Tax Act, 1961 is exempt
vide Notification No. 12/2017-Central
Tax (Rate) dated 28.06.2017.
•

International trade
• International trade is trade among different
countries or trade across political frontiers.
International trade, thus, refers to the
exchange of goods and services between one
country or region and another. It is also
sometimes known as “inter-regional” or
“foreign” trade.

*
• Once upon a time, India was a big centre for
International trade. International trade refers to
the exchange of goods and services between the
countries. In simple words, it means the export
and import of goods and services. All kind of
goods are traded in international trade. Among
the items commonly traded are consumer goods,
such as television sets and clothing; capital goods,
such as machinery; and raw materials and food.

Reverse Charge-1
•
It means the liability to pay tax is

on the recipient of supply of goods

and services, instead of the
supplier, of such goods or services
in respect of notified categories of
supply.
Reverse Charge-2
• Reverse charge Mechanism applies to supplies of
both goods and services, as notified by the
Government on the recommendations of the GST
Council.
• Reverse charge also applies to supplies received
by a registered person from unregistered persons.
However, the provision of reverse charge liability
on supplies received from unregistered persons,
is provided in sections 9 (4)

A REGD. PERSON RECEPIENT OF
GOODS TO PAY TAX
• Reverse charges mechanism is applicable

to supply of agricultural produce i.e.
Silk yarn, cashew nut, tobacco,
tendu patta for bidis etc.
• Supplied by agriculturists to a recipient
who is a regd. Dealer.
Latest Foreign Trade Policy in
India
• The Government of India and the Ministry of Commerce
and Industry release Foreign Trade Policies (FTP) every
five years. The last FTP (2015-20) came into effect in
April 2015. Although the policy expired in April 2021, it
has been extended until Sept. 2021. The new FTP 2021-26
will be enforced after this extension ceases.
•

Main Objective of Foreign Trade
Act 1992?
Foreign Trade (Development and Regulation) Act,1992: The
main objective of the Foreign Trade (Development and
Regulation) Act is to provide the development and regulation
of foreign trade by facilitating imports into, and augmenting
exports from India. The act has replaced the earlier law
known as the Imports and Exports (Control) Act 1947.
•

New Foreign Trade Policy come
into effect?
• When does It will come into effect from 1st
April 2021 for a period of five years. It will
strive to make India a leader in the area of
international trade with a goal to make
India a USD 5 Trillion economy.
•

Main MISSION of
New Foreign Trade Policy?
• The main mission of the new foreign trade
policy is to make India a leader in the
International Trade in the next 5 years, i.e.
2021 – 26. The FTP outlines the government
strategies to promote export of goods to
increase the economic growth in the country.

What is GATT in the WTO?
• The General Agreement on Tariffs and Trade (GATT) covers

international trade in goods. The workings of the GATT
agreement are the responsibility of the Council for Trade in
Goods (Goods Council) which is made up of representatives
from all WTO member countries.
•

Difference between GATT and
World Trade Organization?
General Agreement on Tariffs and Trade (GATT) was made in
the year 1947, that aimed at initiating an international trade, by
liberalizing policies and removing tariffs. It was succeeded by
World Trade Organization (WTO), which is a global
organization, that encourages and facilitates inter-country trade
and also helps in resolving trade disputes.
•

Lower Prices Under GST –
Anti-Profiteering Measures To
•
Benefit Consumers
• Under GST, suppliers of goods and services must
pass on any reduction in the rate of tax or the
benefit of input tax credit to consumers by way of
commensurate reduction in prices. If this is not
done, the consumer's interest is protected by the
National Anti-profiteering Authority which may
order:
Standing Committee &
State Screening Committees
• Affected consumers may file an application, in the prescribed
format, before the Standing Committee on Anti-profiteering if
the profiteering has all-India character OR before the State
Screening Committees if the profiteering is of local nature.
• (a) reduction in prices;
• (b) return of the amount not passed on with interest
@ 18% to the recipient;
• (c) imposition of penalty; and
• (d) cancellation of registration of the supplier.

Application by Consumer
1. To State Screening Committee
2. Confirm prima facie evidence of profiteering is there are not.
3.If the Issues involved have national level ramifications, it
refers the matter to the Standing Committee
4.the Standing Committee examines it and confirms if prima facie
evidence of profiteering at National Level is there.
5.If so, it refers the matter to the Director General of Safeguards, CBEC
fFor investigating profiteering
6.Lastly it goes to National Anti-profiteering Authority
for determining profiteering and passing appropriate order to ensure
consumers benefit from reduced prices


GST Customs

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GST Customs

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INDIRECT TAXES

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• CUSTOMS DUTY (Central)

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• GST is a Value added Tax (VAT)

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• The taxable events under the existing indirect tax laws

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(ii) the supply is for a consideration unless otherwise

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(ii) Inter-State and Intra-State supplies,

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• Thus it results in taxing only the Value

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• CASCADING EFFECT = TAX ON TAX

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2. FIVE PETROLEUM PRODUCTS VIZ.

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•Tobacco and Tobacco Products

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• The CGST /SGST and IGST are payable at the

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a)a person engaged in making any inter-State outward supplies of

the recommendations of the Council.

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GENERAL  No collection and No ITC

If taxable person paid tax

Recovery of tax and penalty

• Securities have been specifically

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• Yes, but only those activities which are specified

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