GST Summary Book by Vivek Gaba Sir (1).pdf

INDEX
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
Introduction of Taxation Laws
Constituiton of India
Introduction Of GST
Introduction of GST
Charging Section of GST
Taxable Event - SUPPLY
Valuation of supply
Input Tax Credit
Accounts & Records
Audit Under GST
Compensation Act, 2017
Composition Levy
Demand & Recovery
E-Way Bill
Input Service Distributor
Place of Supply [POPOS/POPS]
Refund Under GST
Registration Under GST
Return Under GST
Tax Invoice, Credit & Debit Note
TDS & TCS
Time of Supply / Point of Supply
Inspection, Search, Seizure & Arrest
Job Work
Payment of GST
Amendments in Payment of GST
1-7
8-17
18-24
25-32
33-41
42-58
59-67
68-80
81-83
84-84
85-86
87-101
102-103
104-112
113-114
115-122
123-125
126-135
136-142
143-153
154-156
157-163
164-165
166-167
168-169
170-172
S. No. Chapter Name Page No.V-71

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Chapter-1
Introduction of Taxation Laws
Subject Overview & Syllabus Partition

Part-1 Basis of Income Tax
 Introduction of Income tax with tax rates
 Residential Status
Part-2 Computation of Total Income & tax liability
 5 heads of income

 Clubbing of income
 Set off of losses
 Deduction u/C VI-A
Part-3 Miscellaneous Topics
 Return of Income
 Advance Tax
 TDS / TCS

Taxation
Direct Tax
(50/70 marks)
Indirect Tax
(50/30 marks)
Income Tax
(50/70 marks)
International Tax
(old syllabus)
GST
(30/40 marks)
Custom (new syllabus)
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Which amendments/ updations are relevant for Exams?
June 2021 December 2021
Income Tax + GST
 Finance Act -2020  Finance Act -2020
+ +
Notifications /circulars upto 31/12/20 Notifications /circulars upto 30/06/2021

Meaning of Tax :
 A tax from latin word taxo is a compulsory charge under an act.
 The money that you have to pay to the govt. so that it can provide
public services.
Objectives of Tax :
 Raising Revenue
 Encouraging domestic industry
 Reducing income inequalities
 Promoting economic growth
 Development of Backward regions
 Ensuring Price Stability
 And so on ……..
Types of TAX
Particulars Direct Tax Indirect Tax
 General
meaning
Levy of tax
Incidence of tax
“AND” same
Burden of tax person
Impact of tax
Levy of tax
Incidence of tax
“AND” different
Burden of tax person
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 Example  Income tax
 Gift tax etc.
 GST
 Custom

 Nature of tax Progressive nature

-2 income
-2 tax
 These are linked with
paying capacity
 Rich person will pay
more tax in comparison
to poor people

Regressive nature

Fix nature
 These are not linked with
paying capacity
 IDT is uniform, whether
goods/services purchased
by rich or poor.
 Concept of P.Y
& C.Y
Previous year income
assessed in A.Y

No concept of P.Y & A.Y
 Distribution or
payment of revenue
Central Govt. Central Govt. or State Govt.
as the case may be

 Department CBDT
(Central Board of Direct
Tax)
CBIC
(Central Board of Indirect
Taxes & Custom)

 Taxable Event Income arise  Supply of GST
 Import / Export of goods
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NOTE :
Particulars Income Tax GST Custom
 Tax ? Income पर Goods & services Only on goods
 पर
?
Income arise
पर
On supply of
goods / services
Import or Export
Import = र India
Export = India र

Some important concepts :
 Basic -1:- Meaning of Income Tax, GST & Custom
 Income Tax: Income tax is a tax that Govt. imposed on total income
generated by person within their jurisdiction.
 GST (Article 366(12A)): GST is a tax which is levied on supply of
goods or services or both except alcoholic Liquor for human
consumption.
 Custom : Tax levied on Import or Export of Goods

 Basic -2 :- Origin of Law
 Act
 Rules
 Notification , Circulars , Explanation
 Case laws Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 4 4

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Formation of Act :

 Income Tax Act, 1961
 Provision of Income Tax contains 298 Sections & XIV Schedules
 Amendments in Income Tax by Finance Act

अ र Income Tax amendment Finance Act amendment
& then Income Tax
Rules 
Income Tax Rules , 1962
 Supporting system of Act
 Administration with CBDT
 Rules cannot override Act
 Sec-295 of Income Tax give empowerment to frame rules
CRUX :-
Act  Tell what to do & what not to do ?
Rules  How to do ?
Act  Provisions
Rules  Procedure
Bill
Money Bill Ordinary Bill
Can be presented before
either of the house first
Ist: Lok Sabha
2
nd
: Rajya Sabha
3
rd
: President’s assent
Becomes an Act
Recommendatory
time limit: 75 days Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 5 5

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Notification and Circulars
 Notification :
 Issued by CG or CBDT
 Bring changes in the middle of year
 Add or remove the provision of Act
 Binding for department and assessee
 Circulars :
 CBDT issues circulars and circulations
 Clarify doubts regarding meaning of various provisions
 Binding on A.O not on assesse and court
 Not override the Act
Case laws (High Court & Supreme Court Judgement)
 SC & HC can give Judgement only on the question of Law
 SC is the “Apex Court” of the country & decision of SC is law of land
 Decision of HC will apply in respective states within its jurisdiction

Important points for Exams
Particulars Income Tax GST Custom
Act Income Tax Act,
1961
 CGST Act, 2017
 SGST Act, 2017
 IGST Act, 2017
 UTGST Act, 2017
 GST
Compensation
Act, 2017
Custom Act, 1962
&
Custom Tariff
Act, 1975

Provision of
Act
Provisions
contained in the
act
Provisions
contained in the
act
Provisions
contained in the
act
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Rules/ rate of
Custom Duty
Applicability Whole of India
incl. J&K
w.e.f from 1/7/17 to
7/7/17, whole of
India excluding
J&K.
w.e.f from 8/7/17
Whole of India incl.
J&K
Whole of India
incl. J&K
Level of Taxes Central Level Central & State
Level
Central level
Total no. of
Act
1 35 Act 1
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Chapter - 2
Constituiton of India
 Architect - Dr. Bhim Rao Ambedkar
 Effective Date - 26
th
Jan. 1950
 Uniqueness - longest constitution
 Total Articles - 448 ( EARLIER 395)
 Schedule - 12 schedules
 Articles covered in syllabus - 18 Articles
 Schedule covered in syllabus - 1 Schedule

List Of 18 Articles & 1 Schedule
Old Articles New Articles Amended Arcicles
 A- 245
imp

 A- 246
imp

 A- 248
imp

 A- 254
 A- 265
imp

 A- 270
imp

 A- 246A
imp

 A- 269A
imp

 A- 279A
imp

 A-366(12A)
imp

 A- 1
imp

 A- 249
 A- 250
 A- 268
 A- 268A
 A- 269
 A- 286

Contents of Articles
 Article- 245
Extent of laws made by Parliament or State Assembly.
 Article- 246
Subject matter of laws made by made by Parliament or state Assembly.
 Article- 248
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 Article- 254
Who will prevail if conflicts between Parliament or State Assembly.
 Article- 265
No tax shall be levied or collected without the authority of Law.
 Article- 270
Distribution of taxes between Union & States.
 Article- 271
Power to levy Cess or Surcharge by Parliament
 Article- 246A
Special Provision with respect to GST
 Article- 269A
Apportionment of IGST
 Article- 279A
Formation of GST COUNCILE
 Article- 366(12A)
Definition of GST
 Article- 1
Definition of INDIA

Article – 245 + 246 + 248 + 254
Refers VII
th
Schedule

List I List II List III
Name Union list /
Central list
State list Concurrent list
Law making
authority
Parliament State Legislature Parliament/ State
Legislature
Extent of laws Whole of India Whole of State
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(A-245) “or” Part of India “or” Part of State

If any matter is not covered under any list, then laws are made by the
Parliament from Entry-97 of List- I (Residuary entry)

Important points
List I List II
Entry no. Particulars Entry no. Particulars
82 taxes on income other
than Agri. Income
46 taxes on Agri. Income
83 custom laws

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Definition of India / State / U. territory under GST
Sec. 2(56) + 2(103) + 2(114) + Article 1

India

Base line/ land mass TWI EEZ
12 NM 200 NM

29 28 States 7 8 UT other territory for oil & natural gas
purpose
with legislature without legislature
 Delhi Andaman other territory
 Pondicerry Lakshadweep UT
 J/K Dadra & Daman
Daman LADAKH CGST + UTGST
Chandigarh
Other territory
Deemed States
CGST + SGST Deemed UT
Example :
S. No. Supply Nature GST
1 Haryana  UP Inter IGST
2 UP  UP Intra CGST + SGST
3 UP  Chandigarh Inter IGST
4 Chandigarh  Chandigarh Intra CGST + UTGST
5 Chandigarh  Andaman Inter IGST
6 Andaman  Mumbai Inter IGST
7 Mumbai  Delhi Inter IGST
8 Delhi  Delhi (SEZ) Inter (export) NO GST Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 11 11

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SEZ  SEZ bhar se bhar  nothing to do with this

Definition of INDIA under Income Tax
Section – 2(25A) + A-1

O/S India 200 NM 12 NM
29 states
Only oil & natural For all 7 UT
gas purpose purpose

Definition 0f INDIA under Custom Laws

SAME
Custom Law mei 200 NM tak EEZ &
200 NM तक ICW (Indian Custom Water)

9 Delhi (SEZ)  Punjab Inter IGST
10 Punjab  USA Inter (export) NO GST
11 USA  Gujrat Inter
(imports)
IGST
12 Gujrat  8 NM (near
Mumbai)
Inter IGST
13 8 NM  Mumbai
(near Mumbai)
Intra CGST + SGST
14 J&k  Ladakh Inter IGST
15 Dadara  Daman Intra CSGT + UTGST
28
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Article – 265
No tax shall be LEVIED “or” COLLECTED without authority of law.
Example : Income Tax = Income Tax Act, 1961
Custom = Custom Act, 1962 & Custom Tariff Act, 1975
GST = CGST Act , 2017 – 1 Act
SGST Act , 2017 – 31 Act
UTGST Act , 2017 – 1 Act 35 Acts
IGST Act , 2017 – 1 Act
GST Compensation Act, 2017 – 1 Act

Article-269A : Apportionment of GST
Inter-state
IGST levy & collected by CG

Shall be appropriated b/w union & sate  provided by
Parliament by law on the recommendation of GST Council.
In nutshell, IGST is a sum total of CGST & SGST.

Important points :
 GST क state क त इ त प क त क व प
क व कत , इ त प क त क व प
व कत .
i.e. GST is a Consumption / Destination based tax.
 GST क person क registration origin state , क
revenue consumption state क .

Delhi
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Article-279A : Formation of GST Council
President  within 60 days from 8/9/16
(formation of CAA , IOI)
GST Council formed  10/9/16
GST Council notified  12/9/16
Members in GST council = total 33 members
1) Chairperson = Union Finance Minister
2) Member from CG = IRS Officer
3) Member from SG = FM or other nominated by SG
4) Vice Chairperson = One member from
5) Quorum required = Minimum 50%
6) Voting in favour = 75% (3/4)
7) CG share = 1/3 i.e. 33.33%
8) SG share = 2/3 i.e. 66.67%

GST council make recommendation on following:
 Taxes to be subsumed
 Goods / services to be subjected “or” to be exempted from GST
 Apportionment of GST
 Special rate for specified period
 Threshold limit of turnover
 Special provision w.r.t Special Category States
Example -1
Total members = 33
Members present = 16
CG = 2  yes
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Decision approved or not ?
Answer : NO (quorum is not present)

Example -2
Total members = 33
Members present = 25
CG = 2  yes
SG = 23  No
Decision approved or not?
Answer : NO, not approved ( only 33.33% votes are in favour)

Article-270 : Distribution of taxes b/w Union & State
 All of the taxes & duties referred in Union list
 Shall be levied & collected by Govt. of India
 Shall be distributed b/w Union & State

Amendment after GST
 CGST levied on Intra-state Supply shall also be distributed among CG &
SG
 IGST component apportionment to the Union shall also be distributed
Name of taxes Payment to Apportionment
Income Tax CG √
CGST CG √
SGST SG X
UTGST CG X
IGST CG IGST
A-269A
CG SG
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CG SG

Article-271 : Power to levy Cess or Surcharge by Parliament
Parliament may at any time increase any tax by a Surcharge for the purpose of
Union
Concept of Cess :

Amended articles
A-249
If council of state has declared by resolution supported by >/= 2/3
rd
[66.67%]
member present & voting then Parliament may make laws w.r.t GST (i.e. SGST) if
in case of National Interest.
A-250
In case of proclamation of Emergency , Parliament has power to make laws w.r.t
GST (i.e. SGST) “or” any other matter in State List (No Resolution Required)
A-268
Pending (will be discussed after Supply chapter)
A-268 A
Omitted (Related to Service Tax Apportionment)
A-269
Income Tax GST
Name of CESS Health & Education Cess GST Compensation Cess
DOB Finance Act, 2018 GST Compensation Act,
2017
Rate 4% 3% to 290%
Levied on Tax Value of supply
Nature Direct Tax Indirect Tax Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 16 16

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Taxes on sale “or” Purchase of goods and Tax on consignment of goods Except
A-269A shall be assigned to the States.
A-286
No law of supply shall impose, a tax on the supply of goods or services , Where
supply takes place:
 Outside the State
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Chapter – 3
Introduction Of GST
Before GST discussion firstly we will have to find out what was the problem in
old indirect tax system.
 Problems & Limitations in old system
 Multiple tax
 Multiple taxable event
 Cascading effect
 No uniformity
 Classification issue
 Different department if different types of taxes
 Higher compliance and so on ……

 To remove above problems govt. introduced GST laws in India ; w.e.f. 1 July,
2017 [ in J&K 8
th
July Onwards].

 Picture after GST laws [w.e.f. 1
st
July, 2017)
1) Multiple taxes  GST
2) Multiple taxable events  Supply
(manufacturing , sales etc.)
3) Assessee names  Supplier ( Taxable person )
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4) Intra state  Intra state
Interstate  Inter State
International trade  Inter State
5) Double tax  No double tax (classify what is SOS or SOG)
6) Cascading effect  No Cascading effect (seamless flow of credit)
7) No uniformity  ONE Nation, ONE Tax (5%, 12%, 18%, 28%)
(Multiple state = multiple tax)
8) Different department  ONE department
9) Higher compliance cost  Lesser compliance cost as compared to old
indirect tax.

Example for understanding:
Double Tax Cascading
Value = 10,000 Value = 10,000
Excise duty @ 10%= 1,000 VAT @12.5% = 1,250
= 11,000 =11,250
S.Tax @ 15% = 1,500 S.Tax @ 15% = 1,687
G. Value = 12,500 = 12,937
[same value i.e. 10K पर र tax ) (tax पर र tax )
NOW,
Problem kya hai?  प
Solution kya hai?  प
Doubts coming in mind  ????

1. GST article  Article 246A Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 19 19

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2. GST list  No List
3. GST entry  No Entry No.
4. GST liye constitutionGovt. wants simultaneously power
Amend ?

 Constitution Amendment Bill – 122
 Constitution Amendment Act – 101
Article 246A : Special Provision with respect to GST
Article 246A(1) Article 246A(2)

Intra - state supply Inter - state supply

Laws made by Parliament & Laws made by only Parliament
State Assembly

GST Charge GST Charged

CGST, SGST, UTGST IGST
Above GST is not applicable on following goods :-
 Petroleum Crude
 High Speed Diesel
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 Natural Gas
 Aviation Turbine Feul
GST on these goods will be applicable, when recommended by the GST
Council.
Meaning of Intra state supply / Interstate supply / Zero-rated
supply (export) [Sec 8, 7 and 16 of IGST Act]
Section 8 OF IGST ACT Section 7 OF IGST ACT
INTRA - STATE SUPPLY
Where the location of supplier
(and)
Place of supply(POS)

 Same State or
 Same UT

CGST +  Payment
CGST + UTGST to S.G.
(Consumption State)

(Payment to C.G)
INTER - STATE SUPPLY
Where the location of supplier
(and)
Place of supply(POS)

 Two different states
 Two different UT
 Two different country
 One state , One UT
 Supply to SEZ
 Supply by SEZ

IGST
(Payment to C.G)

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Sec 16 OF IGST ACT (Zero Rated Supply)

No GST
GOVT THUMB RULE – “IMPORT THE GOODS, HIGHER THE TAXES,
“EXPORT THE GOODS, NOT THE TAXES.
Example (SECTION 7, 8 & 16):-
Location
Of supplier
Actual
Supply
Place of
supply
Nature GST
Delhi Delhi Haryana Inter IGST
Delhi Delhi Delhi Intra CG+SG
Delhi U.P. Delhi Intra CG+SG
Chandigarh Chandigarh Chandigarh Intra CG+UT
Chandigarh A.N. A.N Inter IGST
Haryana Delhi Haryana(SEZ) Inter NO GST
SEZ
SEZ
ZZ
Outside India
Supply
EXPORT Supply
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Haryana USA USA Inter NO GST
USA Mumbai Mumbai Inter IGST
China China Gujarat Inter IGST
CRUX: Actual place of provision in not relevant for determination of “NATURE
OF SUPPLY”.
Taxes Subsumed under GST
Central Level
 Central Excise duty
 Additional duty of excise
 Custom duty CVD & SAD
 Central Surcharge & Cess
 Service Tax
State Level
 State VAT
 Central Sales Tax
 Luxury Tax
 Entry Tax
 Entertainment Tax Except when levied by local authorities
 Taxes of Advertisements
 Purchase tax
 Taxes on betting, gambling & Lottery
 State Surcharge & cess
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Few taxes which have not been subsumed into GST:
 Basic Custom duty
 Entertainment Tax levied by Local authorities
 Stamp duties
 Road tax
 Toll Tax
 Municipal Taxes
Focus Area: Tobacco and tobacco products would subject to GST. In addition,
the Centre would have the power to levy Central Excise duty. (i.e Double
Taxation)
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Chapter – 4
Introduction of GST
 GST was first levied by France in 1954.
 Last country to adopt GST is Malaysia.
 GST is a destination/consumption based tax.
 India has the highest GST rate in the world i.e. 28% next highest rate is in
Argentina @ 27%.
 GST is technically paid by supplier but it is actually funded by customers.
 Indian GST has 4 General rate structures ( applicable on goods or services or
both) , viz. 5%, 12%, 18%, 28% and 3% or 0.25% special rate (applicable
only on goods) on precious metals like gold , rough diamond etc.

Australian Model Kelkar-Shah Model
Canadian Model Bagchi –Podder Model

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 India follows dual GST model (CGST & SGST)
 GST model is adopted from Canada.
 Currently Brazil & Canada also follows dual GST Model.
 GST is value added tax (VAT) on activity of supply of goods/services or both.
 There is a special purpose vehicle called GSTN to carter to IT needs of GST.
GSTN  Goods & services tax network (GST Portal). [The CG & SG holds
24.5% each equity shares respectively and the remaining 51% are held by Non-
Governmental institutions (LIC Housing Finance, which owns 11%, and HDFC Bank, ICICI Bank, HDFC Ltd
and NSE Strategic Investment Co, each owning about 10%.). & GSTN contacted Infosys in 2015 to
build, run the network and system for the GST.]
GSTIN  Goods & services tax Identification number.(15 DIGIT)
Two most important concept
 Concept-1 Taxation Principles
Destination Principle Origin Principle
i.e. , the country / state where goods are
consumed or designed will get the tax
instead of origin state / country.
i.e. , the country / state from where
goods are originated will get the tax
instead of destination state.
Example : GST / Excise duty Example : CST

 Concept-2 Taxation System
1. First Point Collection
2. Last Point Collection
3. Multipoint Collection
4. Multipoint Collection with ITC method
Follows in GST
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Value Added Tax : Concept [ MOST IMPORTANT]
Example 1 : GST rate(assume) = 18%

Intra State Intra State

Value = 10,000 Govt.
CGST = 900 1800 . Cost- 14,160
SGST = 900
Total 11,800 Cost = 10,000
V/A. = 2,000
12,000
CGST = 1080
SGST = 1080
14,160

Manufacturer
Delhi
Exa
mple
:
GST
rate
=
18%
c
Wholesaler
Delhi
Customer
Delhi
X Y Z
C.G-900 [ITC]
S.G-900 [ITC] Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 27 27

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Example 2: GST rate [assume] = 18%

Value = 10,000 900 CG Cost to consumer
CGST = 900 900 SG = 14,160
SGST = 900 Cost = 10,000
= 11,800 VA = 2000
12,000
IGST = 2,160
14,160
Revenue to Govt. = C.G.= 1080 = 900+360+180
S.G.= 900+180

How to Flow our GST ?
Total check point = 13
For Consultancy

Professional Client
(CA / CS / CMA)
Delhi Delhi Haryana
Intra Inter Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 28 28

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Now start process
of GST collection
Check Point 6: Value of Supply (Sec. 15)
Check Point 7: Rate of GST
Check Point 8: Who is liable to pay GST
liability to Govt.?
RecipientSupplier
3rd Party
(i.e. ECO)
Forward Charge Reverse Charge Special Provision
under GST
Check Point 9: When is GST liable to be paid? i.e. TIME OF SUPPLY /point of taxation?
Check Point 10
A
Audit
I
Invoice
M
Manner of
payment
R
Return
R
Record
R
Registration
R
Refund
ITC
Input tax
credit
Check Point 11: Assessment & inspection under GST
Check Point 12: Appeal , Advance ruling etc.
Check Point 13: Interest , Penalty & other penal proceedings
YES
No question
of GST
Check Point 1:Element covered in the definition of goods/services or both
NO
Check Point 2: Whether activity covered under GST Supply ?
YES
No question
of GST
NO
Check Point 3: Whether place of supply
in taxable territory i.e. India?
YES
No question
of GST
NO
Check Point 4: Whether person covered
under definition of Taxable Person?
YES
No question
of GST
NO
Check Point 5: Whether such supply covered
under 100% exemption notification?
NO
GST levied but
not collected
YES
GST levied &
collected Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 29 29

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Check Point – 1
Definition of goods & services

Goods means Services means

Section 2(52) of CGST Act Section 2(102) of CGST Act
Provision – Any kind of “Movable Property” Anything
Excludes  Money Excludes  Goods
 Securities  Money
 Securities
Includes  Actionable Claims, growing crops, grass
Includes  Activity relating to
use of money where separate
consideration is charged.
 Money : Section- 2(75)
Money means
 Indian legal tender
 Foreign currency
 Cheque
 Draft
 Promissory notes/ Bill of exchange etc.
Does not include ;
Any currency that is held fir its numismatic value Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 30 30

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(Face Value not equal to Market Value)
 Security ( not defined in GST Act)
Normal meaning:
 Shares
 Debentures
 Bonds
 Mutual Funds units etc.

 Activity relating to use of money
Transactions only in money Transactions not only in money
GST (not levied) GST( Yes Levied)
Example :  Money deposit in Bank Example : Commission
 Money withdrawn from Bank Draft
 Money change Chit fund etc.
 Actionable Claims
Actionable claim other than Betting/Gambling/Lottery then no GST
Example :
Particulars Goods Services
Grass Yes NO
Growing crops Yes NO
Building NO Yes
Mobile Yes NO
Shares NO NO
Facilitating or arranging
transactions in shares
(Brokers)
NO Yes Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 31 31

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Units of mutual fund NO NO
Commission on draft NO Yes
Furniture Yes NO
Telecom NO Yes
Rs. 100 note NO NO
Old coins Yes NO
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Chapter - 5
Charging Section of GST
Section – 9 of CGST Act, 2017
Section – 5 of IGST Act, 2017
Section – 7 of UTGST Act, 2017
Section–9 of CGST Act, 2017

Sec. 9(1) Sec. 9(2)
Sec. 9(3)
& Sec. 9(4)
Sec. 9(5)
General Provision

1. When GST levied?
2. On which taxable
event?
3. On which value?
4. Rate of GST?
5. Goods excluded
from GST?
6. Collection procedure?
5 Petroleum
Products
When GST
Levied?
Reverse Charge *ECO

Special provision
Under GST
*ECO – Electronic Commerce Operator
Section 9(1)
Activity must be Supply
Supply of Goods / Services or both
Goods / Services does not include:
 5 Petroleum Products Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 33 33

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 Money
 Security
 Electricity
 Alcoholic liquor for human consumption
Goods or services
Other than negative goods Value determined u/s 15
 Tax rates 20% to 20% =
CGST SGST IGST
Maximum Rate
 Collection of GST as may be prescribed
 Tax Paid by “ *Taxable Person” [section 2(107)]
*Taxable Person
 A person who is registered (or)
 Liable to be registered
 u/s 22 to 24

CRUX:
1. GST GST PERSON REGISTRATION पर DEPEND र
|
2. GST REGISTRATION THRESHOLD LIMIT BUT GST
THRESHOLD LIMIT अलग |
3. As per Section 9 of CGST Act Specifies that the CG & SG may specify rate of
tax not exceeding 20% but at present;
 Four rates of CGST has been prescribed for goods, viz., 2.5%, 6%, 9% &
14%
 Four rates of CGST has been prescribed for Services, viz., 2.5%, 6%, 9%
& 14%

40%
% Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 34 34

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Remember:
 CGST Rate = SGST Rate = UTGST Rate
 IGST Rate = CGST Rate + SGST/UTGST Rate
Section 9(2)
GST applicable on *5 PP from the date when GST council will recommend.
* 5 PP
1. Petroleum crude
2. High speed diesel
3. Motor spirit (commonly used as Petrol)
4. Natural gas
5. Aviation turbine fuel
Section 9(3) & Section 9(4) : Reverse Charge
Section 2(98): Reverse charge means the liability to pay tax by the recipient of
SOG or SOS or both instead of supplier.
Two types of RCM under GST
RCM-1 = Section 9(3)
RCM-2 = Section 9(4)

Reverse Charge : Section 9(3) & Section 9(4)
Section 9(3) Section 9(4)
Notify = Goods or Services NOTIFY = Persons/Goods/Services

Process = Supplier
Specified G/S
Recipient

GST Discharge by recipient
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Example of section 9(3)
Insurance agent of Insurance agent services Insurance Co.
ABC Ins. Co.
Supplier Notified u/s 9(3) Recipient
Liable to pay GST
RCM Apply
Example of section 9(4)
Unregistered Person Supply of Notified Notified registered person
Goods/services
Liable to pay GST
RCM Apply
List of notified / specified goods covered under RCM
S.No. Supplier of Goods Supply of Goods Receiver of Goods
1

2

3
4

5
6

7

Agriculturist

Agriculturist

Agriculturist
Any person who
manufactures silk yarn
Agriculturist
SG/ UT/ LA

CG/ UT/ UT/ LA

Cashew nuts not
shelled or peeled
Bidi wrapper
(Tendu leaves)
Tobacco leaves
Silk yarn

Raw cotton
Supply of lottery

Used vehicles, seized
& confiscated goods
or old used goods,
waste & scrap
Any *R.P

Any R.P

Any R.P
Any R.P

Any R.P
Lottery distributor
or selling agent
Any R.P

Any R.P

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8 Any registered person Priority sector lending
certificate
Any R.P
*R.P = Registered Person
Agriculturist : sec 2(7) of CGST Act
Agriculturist means a individual or HUF who undertakes cultivation of land.
a) By own labour
b) By the labour of family
c) By servants on wages payable in cash or kind or by hired labour under
personal supervision of any family member.

List of notified / specified Services covered under RCM
S.No. Service provider
Supplier of service
Name of service Service receiver
1. Foreign party Import of service Any business entity
located in T.T.
2. Goods transport
agency
Transport of goods  Any person registered
under (GST, UTGST ,
SGST)
 Any factory
 Any society
 Any co-operative
society registered in
India
 Any body corporate
 Any partnership firm
(AOP)
 Casual taxable person
3. Advocate /firm of
advocate
Advocate / legal service Any business entity
4. Advocate /firm of Arbitral tribunal Any business entity Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 37 37

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advocate
5. Any person Sponsorship service Any body corporate or
partnership firm
6. Director or body
corporate
Service of director or
body corporate
Company or body
corporate located in
Taxable territory
Circular issued
clarifying applicability
of RCM on services of
directors to Company/
Body Corporate-
 Services rendered
by directors not
in capacity of
employee to
attract GST and
also RCM
[Entry No. 6 of N/N
13/2017-CT (Rate) –
CBIC Circular No.
140/10/2020- GST
(dated 10th June,
2020)]
7. Insurance agent Insurance agent service Insurance co.
8. Recovery agent /
recovery agent office
Recovery agent service Bank or financial
institution
9. Foreign party
(person located in
NTT)
Ocean freight
(transportation of goods
by vessel from place o/s
India to custom
clearance India)
Importer

10. Author/Music co./ Copyright services related Publisher , music Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 38 38

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Photographer/ Artist to literary, musical,
artistic work.
composer, producer
11. Govt. All services of Govt.
Except:
 Service by dept. of
post
 Renting of immovable
property
 Service in relation to
aircraft/ vessel
 Service of
transportation of
goods
Business entity

12. Govt. +
(CG/SG/UT/LA)
Renting of immovable
property
Any person registered in
taxable territory
13. Member of
overseeing
committee
Any service RBI
14. Individual direct
selling agent (DSA)
other than a body
corp., PP or LLP
Direct selling agent
service (DSA)
Banking co.
Or
NBFC
15. Business facilitator Any service Banking co.
16. An agent of
business
correspondent
Any service Any registered person
located in taxable
territory
17. Any person other
than corp.
Security service Any registered person
located in taxable
territory
18 Author Transfer of copyright Publisher (located in
TT)
19 Any person other Renting of motor Any body corporate Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 39 39

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than a body
corporate, who
supplies the service
to a body corporate
and does not issue
an invoice charging
GST@ 12% (CGST-
6% + SGST/UTST-
6%) to the service
recipient
vehicle designed to
carrying passengers
where the cost of fuel
is included in the
consideration charged
from the service
recipient
( located in TT)
20 Lender Lending of securities Borrower
21 Any person Services supplied by
any person by way of
transfer of development
rights (TDR) or Floor
Space Index (FSI)
(including additional
FSI) for construction of
a project by a promoter.
promoter
22 Any person Long term lease of land
(30 years or more) by
any person against
consideration in the
form of upfront amount
(called as premium,
salami, cost, price,
development charges or
by any other name)
and/or periodic rent for
construction of a
project by a promoter
Promoter
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Section 9(4)
If
‘Promoter’
(Recipient) purchased input goods and services used in the
construction of project from the unregistered person, the he is liable to pay
GST under RCM on the supplies made from unregistered supplier under Section
9(4) of CGST Act, 2017. Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 41 41

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Chapter - 6
Taxable Event - SUPPLY
Taxable event  Supply + Composite / mixed supply
Sec.7 of CGST Act, 2017 Sec.8 of CGST Act, 2017
Relevant provision related to supply
 Section-7 = Scope of supply
Section-8 = Tax liability on composite supply & mixed supply
 Schedule I = Activity : treated as supply even if made without
Consideration [Free supply बन )
 Schedule II = Activity or transactions treated as “SOG” or “SOS”.
 Schedule III = Negative list of GST (total =8 Para) not liable to GST

Section 7 : Scope of supply

SCOPE OF SUPPLY
Section 7(3)
NA
Section 7(1)

a.General definition
b.IMPORT OF SR.
c.Schedule –I
without
consideration
Section 7(1A)

Schedule II
Total 7 Para
Section 7(2)

Schedule III
Total 8 Para Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 42 42

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Section 7(1)(a) [INCLUSIVE DEFINITION]

Two main conditions under sec. 7(1) (a)
1. With consideration
+
2. In the course or furtherance of business

Two Doubts Arise In Student Mind?
 If no consideration
Sol: Then not a supply u/s 7(1) (a) but may be covered under u/s 7(1) (c)
 If not in the course or FOB
Sol: Then not a supply u/s 7(1) (a) but may be covered under u/s 7(1)(b)or
7(1)(c).
All forms of supply
(or)Of Goods Of Services
Such as (Examples)
•Sale
•Transfer
•Disposal
•Barter
•Exchange
•License
•Lease
•Rental
Made or agreed to be made
For a consideration
By a person
In the course of business or FOB
STD BELL
|
Both(or) Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 43 43

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Main key points under sec. 7(1)(a)
 Goods 2(52) - already done
 Consideration 2(31)
 Services 2(102) – already done
 Person 2(84)
 Business 2(17)- Self read
Consideration 2(31)
Consideration includes :
 Any payment whether in money or non-money
 Any act or negative act
Except any subsidy given by CG/SG
IMPORTANT POINTS:
Security deposit-  Adjustable Consideration
 Non-Adjustable No consideration
Features of Consideration
Must be exist
Or at the time of provision of activity
Must be certain
CRUX of 7(1)(a)
Supply of Goods or services or both
With consideration
Not in the course of FOB
Sec. 7(1)(a)
In the course or FOB
In the course (or)
Not in the course of
FOB
may be covered
u/s 7(1)(b)
may be covered
u/s 7(1)(c)
Without consideration Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 44 44

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Some questions
1. Activity without consideration whether can be treated as “supply”
Yes ! under sec. 7(1)(c)
2. Activity for considerationwhether will always treated as “supply”
No, it must be in course or FOB

Section 7(1)(b) link with Para 4 of Section 7(1)(c)+Schedule-I
Section 7(1)(b) Section 7(1)(c)
 Import of service
 By any person
 From any person
 for a consideration
 whether or not in the course or
furtherance of business .
 Import of service
 By any person
 From Related party
Other Estb. o/s India
 Made without consideration
 In the course or FOB

Related Party - Definition given under explanation 1 of section 15 of CGST ACT.
Persons shall be deemed to be related if they fall under any of the categories below:
 Officer/ director of one business is the officer/ director of another business
 Businesses are legally recognised as partners
 An employer and an employee
 Any person holds at least 25% of shares in another company either directly or indirectly
 One of them controls the other directly or indirectly
 They are under common control or management
 The entities together control another entity
 They are members of the same family
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Family u/s 2(49) of CGST Act.
Family means
 The spouse & the children of the person and
 The parents, grandparents, brother, sister of the person if they are
wholly dependent on the said person.
Summary diagram of sec. 7(1)(b) with Para 4 of 7(1)(c)

Treatment of Import of Goods under GST
CUSTOM , IGST

CRUX of IOS
 For consideration = check 7(1)(b)
 For without consideration = check 7(1)(c) PARA 4 Import of service
Overseas
supplier
Not in the
course of FOB
7(1)(b)
In the course
or FOB
With consideration Without consideration
Indian
recipient
Not in the
course of FOB
In the course
or FOB
From
•RP
•O.EST o/s
India
From•Other than
Specified
Person
Not Supply
7(1)(b) 7(1)(c)Supply
Act CGST CGST CGST
Nature
Inter-state
(Sec 7 of IGST)
Inter-state
(Sec 7 of IGST)
GST liab
discharged by
RCM
Exempt (except
OIDAR*)
RCM
*Online Information Database access & retrieval sr.:
Supplier will be liable to pay GST on UIN (Unique Identification Number) basis Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 46 46

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Section 7(1)(c)
Activities or transactions to be treated as supply even if made without
consideration.
Refer - Schedule 1
Total - 4 Para
Section 7(1)(c) + Schedule 1

Para 1
Permanent transfer of Business asset when ITC has been availed
4 Conditions:
 Permanent transfer +
 Business asset +
 ITC Availed +
 Without consideration
Example:

SOL: It is a supply u/s 7(1)(a) , since all conditions are satisfied.

Para 2
Supply of goods or services or both

Between related party Between deemed distinct person
In the course of business or FOB

Mr. X Mr. Y
Sale of car: INR 5,00,000
Car dealer: No ITC Claimed Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 47 47

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Special point
Employer gift Employee
Upto ₹ 50,000 Excess ₹ 50,000
in a F.Y in a F.Y
Not a supply It is a supply and whole value shall be chargeable to Tax

Related Person (Ex – 1 Of Sec 15)
Employer/ Employee Others
50,000 limit No Exemption Limit
Para 3

Supply of Goods
Principal Selling Agent
Supply of GoodsBuying
agent
Principal Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 48 48

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CRUX of 7(1):

After “determination of supply”, next question arises regarding
classification of Supply  बन ?
Question: Why is classification necessary???
Reasons 
 Different of GST in case of SOG or SOS.
 Different coding system Summary Diagram of Sec. 7(1)(a), 7(1)(b), 7(1)(c)
Section 7(1)(a) Section 7(1)(b) Section 7(1)(c)
All goods/ services
With consideration
In the course or FOB
Import of serviceWith considerationBy any person
From any person
Whether FOB or not
Permanent t/f
Business Asset
ITC availed
P-1 P-2 P-3 P-4
SOG/SBetween
RP/ DDP
FOB
PA
AP
IOS
FOC
BY AP
From RP or other
est. o/s India
FOB
Supply , Supply
u/s Section 7(1A) [New Addition] Mr. X Transaction
Carrying Out
supplier (taxable person)
With
Consideration
Without
Consideration
7(1)(a) / 7(1)(b) only check
sec 7(1)(c)
7(1)(c) P-1, P-2, P-3, P-4 Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 49 49

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 Goods = HSN Code
 Service = SAC
 Different valuation rules
 Different ITC rules
 Different “time of supply” provision
 Different “place of supply” provision
 And so on……

Solution  Section 7(1A)
Or
Section 7(3)
Or
Section 8 of CGST ACT

Points to be noted
SUPPLY
Determination of Supply Classification of Supply
Section 7(1)(a) Section 7(1A)
Section 7(1)(b) Section 7(3)
Section 7(1)(c) Section 8

Section 7(1A)
Where certain activities or transactions constitute a supply in accordance with
the provision of sub section (1) they shall be treated either as SOG or SOS
as referred in Schedule-II.
Schedule-II:
Activities or transactions to be treated as supply of goods or supply of services Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 50 50

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Summary diagram of section 7(1A)

Total = 7 Para
5 entries 8 entries
Supply of goods
Supply of
services
If not covered in 18 Entries then, refer Sec. 8 & Sec. 7(3)
18 entries Transfer
Title Right
transfer of title in goods
Immediate transfer Future date
Para 1 link with 5(f)
transfer of “right in
goods”
1(a) 1(c)
Supply of goods
transfer of “right to
use” any goods
1(b) 5(f)
Supply of services Renting
Land & Building
Other Immovable
Property
2(a)/ 2(b)
Para 2 link with Para 5(a)
5(a)
Supply of services Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 51 51

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 Sale of land & building covered under Schedule-III
Para 3

Para 5
Supply of Services
 Renting of immovable property other than Land/ Building.
 Construction services Except 100% consideration received after completion or
occupation – Earlier.
 Temporary transfer of IPR
 I.T. software development etc.
 Negative Act ( not to do something)
 Transfer of “Right to use” any Goods

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Para 6

Composite and Mixed Supply
Section 2(30)
Composite Supply
(Natural Bundle)

Means a supply made by a taxable
person to a recipient consisting of two
or more taxable supply of goods/
services or any combination thereof,
which are naturally bundled, one of
which is a principal supply.

Tax treatment (Sec.8)
Treated as a supply of such principal
supply.

Example :
 Shirt + Packing
Section 2(74)
Mixed Supply
(Unnatural Bundle)

Means two or more individual supplies
of goods or services or any
combination made in conjunction with
each other by a taxable person for a
single price where the supply does not
constitute composite supply.

Treated as a supply of that particular
supply which attracts highest rate of
tax.

Example :
 Canned Foods Composite Supply
Specified composite supply
Non- specified composite
supply
Restaurant
Supply of services
Work Contract
Related to
Immovable
property
Related to
Movable
property
Refer Section 8 Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 53 53

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 TV + Warranty
 Laptop + Laptop bag
 AC + AC Installation
 Boarding School
 Hotel + Laundry Service
 Sweets
 Chocolates
 Dry fruits
 Juice etc.
 Box of Tie + Watch + Wallet

Para 4

Para 7

Transfer of Business Asset
4(a)
Transfer / disposal of
business asset whether with
or without consideration
Putting goods to private use or
making available goods to other
person for non-business purpose
4(b)
Supply of Goods Supply of Service
4(c)
Cessation of business;
Goods in stock:
Deemed Supply
Supply of Goods Unincorporated
AOP/ BOI
It’s Members
Supply
Supply Of Goods Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 54 54

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Summary diagram of Section 7(1A)

Negative List of GST (Schedule-III) (Total 8 Para)
Para 1
Employee Service Employer

In the course or in relation to employment .
Neither as SOG nor as SOS

Para 2
Service By any Court or Tribunal established under Law.

Para 3
M.P / MLA / CAG / IAS etc....

Para 4
Funeral , burial , transportation of deceased.

Para 5
Sale of land / building subject to 5(b).

Para-1

 SOG
 SOS
 SOS

Para-2

 SOS
 SOS
Para-3

 SOS
Para-4

 SOG
 SOS
 SOG
Para-5

 SOS
 SOS
 SOS
 SOS
 SOS
 SOS
Para-6

 SOS
 SOS
Para-7

 SOG
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Para 6
Actionable claim other than batting/ gambling/ lottery.

Para 7

Para 8

12 Nautical
Mile
200 Nautical
Miles
Outside Indian
boundary
Bangladesh
NTT NTT
NO GST 12 NM200 NM
Outside Indian
boundary
W/H
HC
Sale
BCD
GST
Custom
GST
Custom
GST Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 56 56

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AMENDMENTS IN SUPPLY CHAPTER:
Amendment - 1
Circular No. 121/40/2019 GST dated 11.10.2019 has clarified that the above special
dispensation applies only to supply of service by way of grant of liquor licenses by
the State Governments as an agreement between the Centre and States and has
no applicability or precedence value in relation to grant of other licenses and
privileges for a fee in other situations, where GST is payable. It may be noted that
services provided by the Government to business entities including by way of grant
of privileges, licences, mining rights, natural resources such as spectrum etc. against
payment of consideration in the form of fee, royalty etc. are taxable under GST.
Tax is required to be paid by the business entities on such services under reverse
charge.

Supply
Supply Supply
7(1)(a)
7(1)(b)
Summary of Sec.7 and Schedule- I, II & III
7(2)
Schedule III
7(1)(c)
Schedule-I
Total 4 Para
Total 8 Para
After above provisions
supply ?
7(1A)
Schedule-II: Total 8 Para
18 entries
•5 SOG
•13 SOS
# How to read schedule
•1
st
: Schedule-III
•2
nd
: Schedule-I
•3
rd
: Schedule-II Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 57 57

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Amendment - 2
Individual donors provide financial help or any other support in the form of donation
or gift to institutions such as religious institutions, charitable organisations, schools,
hospitals, orphanages, old age homes etc. The recipient institutions place a name
plate or similar such acknowledgement in their premises to express the gratitude.
When the name of the donor is displayed in recipient institution premises, in such
a manner, which can be said to be an expression of gratitude and public recognition
of donor’s act of philanthropy and is not aimed at giving publicity to the donor in
such manner that it would be an advertising or promotion of his business, then it
can be said that there is no supply of service for a consideration (in the form of
donation). There is no obligation (quid pro quo) on part of recipient of the
donation or gift to do anything (supply a service). Therefore, there is no GST
liability on such consideration.
Some examples of cases where there would be no taxable supply are as
follows:-

(i) “Good wishes from Mr. Rajesh” printed underneath a digital blackboard
donated by Mr. Rajesh to a charitable Yoga institution.

(ii) “Donated by Smt. Malati Devi in the memory of her father” written on the
door or floor of a room or any part of a temple complex which was constructed
from such donation.

In each of these examples, it may be noticed that there is no reference or mention
of any business activity of the donor which otherwise would have got advertised.
Thus, where all the three conditions are satisfied namely the gift or donation is
made to a charitable organization, the payment has the character of gift or
donation and the purpose is philanthropic (i.e., it leads to no commercial gain) and
not advertisement, GST is not leviable. [Circular No. 116/35/2019 GST dated
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Chapter - 7
Valuation of supply
Transaction value means the price actually paid or payable for the said supply
Transaction Value = Assessable Value
(If following 2 conditions are satisfied)
 Buyer and supplier are not related party.
+
 Price is the sole consideration for the supply.

Value for GST liability = 15(1)
+ 15(2)
_ 15(3)
XXX

Computation of value of supply

Particulars Amount (₹)
Price actually paid or payable for said supply u/s 15(1)
Add: Inclusions u/s 15(2)
 Any taxes, taxes, cess, fees and charges which are not
subsumed under GST Laws. (Note-1)
 Any amount that the supplier is liable to pay but
incurred/met by the recipient. (Note-2)
 Incidental expenditure. (Note-3)
 Interest or late fees or penalty for delayed payment.
(Note-4)
 Subsidies directly linked to the price except Govt. subsidy
value after adjustment u/s 15(2). (Note-5)
XXX

XXX

XXX

XXX
XXX

XXX
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Value after adjustment u/s 15(2)

Less :
Exclusions u/s 15(3)
 Pre-supply discount
 Post-supply discount subject to condition
XXX

XXX
XXX
Value for GST Liability XXX

Note-1: Taxes not subsumed under GST
Examples:
 Import duty
 Anti-dumping duty
 Safeguard duty
 Other custom duty
 Professional tax
 Toll tax
 Property tax
 Stamp duty
 Electrical duty
 Excise duty on tobacco etc…….

Note-2: Selling commission, Cost of transportation, Cost of insurance

Note-3: packing expense, special packing exp., commission, inspection charges,
warranty charges, cost of transportation, and cost of insurance

Note-4: Price actually paid = 50,000
Credit period = 3 months
Interest on late payment = 10% p.a.
Delayed period = 2 months
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Value for GST (50,000 + 833.33) = 50,833

Note-5: Price charged for supply = 80,000
Above price after giving the effect of following 2 items:
 Subsidy from private trust = 10,000
 Subsidy from Central Govt. = 15,000
Value for supply = 90,000

CRUX

Section 15(3)
 Pre-supply discount
Example:
Contracted Price/List price = 1,00,000 80,000
Already adjusted Not adjusted
Subsidy minus
Subsidy minus
•Govt. subsidy= No treatment
•Other than govt. = Add back
•Govt. subsidy= Subtract (-)
•Other than govt. = No treatment
Silent
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Discount = 50%
Value = ?
Value (1, 00,000 – 50%) = 50,000

Post-supply discount
Post supply discount shall be excluded from the value if following two
conditions are satisfied:
 Established in the agreement & linked with relevant invoice +
 ITC attributed to discount have been reversed by recipient

Rule 35: Value of supply inclusive of GST
Where the value of supply is inclusive of GST, the tax amount shall be determined
in the following manner:-
Tax Amount = Value inclusive of Taxes X GST rate
100 + GST rate
Value of GST = Value inclusive of Taxes X 100
100 + GST rate
OR
= Value inclusive of GST – GST

Example:
Contracted price = 2, 06,000
(Inclusive of GST @18%)
Value = 1, 74,576.27
GST = 31,423.73

Example:
Seem Ltd. Had made a supply of ₹ 11,50,000 to Reema Ltd. Following items are
not adjusted
1) Tax levied by Govt. = 30,000
2) CGST & SGST = 35,000
3) Packing charges = 10,000 Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 62 62

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4) Interest on delayed payment = 35,000
Compute value for supply?
Solution: 11, 50,000 + 30,000 + 10,000 + 35,000 = 12, 25,000
As per ICSI [for exams] As per ICAI [Alt – 2]
Transaction value 11, 50,000 Transaction value 11, 50,000
+ M.T 30,000 + M.T 30,000
+ Packing charges 10,000 + Packing charges 10,000
+ GST - + GST -
+ Interest 35,000 + Interest -
Value of supply 12,25,000 Value of supply 11, 90,000
Credit note issued 35,000

Example: Contracted price (Incl. of GST) = 11, 80,000
GST rate = 18%
Following items are not included in contracted price 
 Cost of transportation = 25,000
 Cost of packing = 10,000
 Commission = 5,000
 Installation Charges = 10,000
Solution:
As per ICSI [for exams] As per ICAI [Alt – 2]
Transaction value 11, 80,000 Transaction value (Note 1) 10,00,000
+ Cost of transportation 25,000 + Cost of transportation 25,000
+ Cost of packing 10,000 + Cost of packing 10,000
+ Commission 5,000 + Commission 5,000
+ Installation Charges 10,000 + Installation Charges 10,000
Value of supply
(inclusive of GST)
12,30,000 Value of supply (exclusive
of GST)
10,50,000
Value of supply
(exclusive of GST)
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(12, 30,000 X 100/ 118)
Note 1: Transaction value = 11, 80,000 X 100 / 118
= 10, 00,000

Section 15(4)
If value cannot be determined as per section 15(1), then value shall be determined
in such manner as may be prescribed (Rule 27 to Rule 31)
 Rule 27: value of supply of goods / services where consideration is not
wholly in money.
 Rule 28: value of supply of goods / services between related person or
deemed distinct person.
 Rule 29: value of supply of goods made or received through an agent
 Rule 30: value of supply of goods / services on cost basis.
 Rule 31: best judgement assessment.

Rule 27: Value of supply of goods / services where consideration is
not wholly in money

Applicability: Partly money or partly non-money or wholly non-money.
Value of supply shall be:
1) Open market value of such supplies (OMV)
2) If OMV is not available then:
Money Value = XXX
+ Money value of in kind = XXX
Consideration
XXX
3) If value not determined under point 1 & 2 then, value of supply of like kind a
quality
4) If value not determined under point 1, 2 & 3 then , refer rule No. 30 & 31
in that order
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Rule 28: value of supply of goods / services between related person or deemed
distinct person

Applicability: Supply between related person or deemed distinct person.
Value of supply shall be:
1) Open market value of such supplies (OMV)
2) If value not determined under point 1 & 2 then, value of supply of like kind
and quality
3) If value not determined under point 1, 2 & 3 then , refer rule No. 30 & 31 in
that order

Rule 29: Value of supply of goods made or received through an Agent
Applicability: Principal  Agent
Agent  Principal
Value of supply shall be:
1. Open Market Value or 90% of price charged by recipient
Option  whichever is less
2. If value not determined under point 1 then , Refer rule No. 30 & 31 in that
order

Rule 30: value of supply of goods / services on cost basis
If value not determined under Rule- 27, 28, 29 then value shall be:-
110% of cost of production
“Or”
Cost of manufacturing
“Or”
Cost of acquisition
“Or”
Cost of provision of service

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Rule 31: Best Judgement Assessment / Residuary Method
If value cannot be determined under Rule No. 27 to 30, then value shall be
determined by department, using reasonable means.

Rule 31A: Valuation in case of Lottery, betting, gambling & horse races
The value of supply of lottery shall be deemed to be
 100 / 128 of the higher of following
 face value of ticket or
 the price as notified in the Official Gazette by The Organizing State.

Explanation: – For the purposes of this sub-rule, the expression-

“Organizing State
” has the same meaning as assigned to it in rule 2 (1) (f) of the Lotteries
(Regulation) Rules, 2010.
[i.e., the SG which conducts the lottery in his own-territory or sells its tickets in the territory of
any other state.]
Note: GST Rate on lottery has been changed- now, lottery is subject to a uniform rate of
28% (replacing earlier rates- 12% on Lottery run by SG and 12% on Lottery Authorized by SG).
Consequent to above change, Rule 31-A (dealing with valuation of lottery) has been amended to
remove separate existing provisions relating to valuation of lottery.
Note: The value of supply of actionable claim in the form of chance to win in
betting, gambling or horse racing in a race club shall be 100% of the face
value of the bet or the amount paid into the totalisator
Rule 32A: Value of supply in cases where Kerala Flood Cess is applicable.
Value of supply in cases where Kerala Flood Cess is applicable.- The value of
supply of goods or services or both on which Kerala Flood Cess is levied under
clause 14 of the Kerala Finance Bill, 2019 shall be deemed to be the value
determined in terms of section 15 of the Act,
but shall not
include the said
cess.
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Section 15
15(1) 15(4)
Summary diagram of Valuation
15(2) 15(5)15(3)
Transaction value If value not
determined u/s 15(1)
Addition in T.V. Special Provision Deletion in T.V.
•If seller and buyer:
not RP
+
••Price is sole consi.
Rules
5 points Rule 32
Discount
(Pre –Post)
27 28 29 30 31
•OMV
•+ MV
+ Kind value
•Similar
supply
value
•Rule 30
•Rule 31
•Similar
supply
value
•Rule 30
•Rule 31
•Rule 30
•Rule 31
•OMV
•No MV
•OMV
“or”
90%
less
Cost x
110%
Best
judgement
assessment
Value by
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Chapter- 8
Input Tax Credit

Concept of ITC
Input Tax Credit
Raw material
Input service
Capital goods
CGST + SGST
CGST + UTGST
ITGST
Take benefit of
input tax and
adjustment with
output tax
Input Tax Availment Input Tax Utilisation
…
Sec. 49, 49A, 49B
(Payment of GST)
Sec 16 Eligibility & conditions for taking ITC
Sec 17Apportionment of blockage of ITC
Sec 18 Availability of ITC in special circumstances
Sec 19 ITC in case of Job work GST on capital goods
Converted into final goods
Supply
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INPUT TAX
Govt. ?

Seller
Burden in hands of?

Buyer

burden, ITC |

 Eligible Person: Registered person other than Person covered u/s 10.
 Purpose: In the course “Or” FOB

After above discussion such registered person shall comply all the below mentioned
conditions :-
(Recipient can avail ITC if he satisfies all the following conditions-)
 He [Receiver] is in the possession of tax invoice “or” Debit note, as the
case may be
 He [Receiver] has received the goods/services
 Tax charged in respect of such supply has been actually paid to Govt [by
Supplier]
 He [Receiver] has furnished the Return u/s 39(GSTR-3)
After satisfaction of all above conditions recipient can book/ avail ITC.
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CRUX:

Important Points:
1) Availability of ITC to recipient has been dependent on the payment of tax
by supplier. If the recipient fails to pay the amount of supply along with the
tax payable within 180 days from the date of invoice , the recipient will be
liable to pay along with output tax liability , an amount equal to ITC with
interest.
2) Where the goods against an invoice are received in lots or instalments, the
registered shall be entitled to take credit upon receipt of the last lot or
instalment.
3) Where the registered person has claimed depreciaton on the tax component
of the cost of capital goods & plant and machinery under the provision of Person
Registered Person Unregistered Person
Under section 10
Check: 4 conditions
Other than section 10
In the course or FOB Not in the course or FOB
No question of ITC
No question of ITC No question of ITC
All conditions are
satisfied
If any one condition is
not satisfied
No question of ITC Check: Case coverage u/s 17(5)
Yes No
No question of ITC ITC availed
Note:The diagram is subject to Rule 36(4)
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Income Tax Act, 1961. The ITC on the sais tax component shall not be
allowed.
Example:

Time limit for claiming ITC as follows :
 Due date of GSTR-3/ 3B for the month of September following the end of
financial year
“OR”
 Actual date of furnishing the annual return.

Whichever is earlier

Example: Invoice related to F.Y 19-20, what will be the last date for claiming
ITC
CASE-I: Annual return furnishing date = 2/12/2020
CASE-II: Annual return furnishing date = 8/9/2020
Solution: CASE-I CASE- II
20/10/20 20/10/20
2/12/20 8/9/20
Cost of Plant & Machinery = 4,00,0000
GST @18% = 72,000
Total 4,72,000
4,00,000 72,0000
Claim depreciation u/s 32 of
Income Tax Act If depreciation
claimed, then No ITC
If ITC claimed, then
No depreciation
My Opinion: claiming ITC is more beneficial
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Amendment in ITC utilisation
1/07/2017 to 31/1/2019
credit USE Payment
credit use |
•IGST Credit
•CGST Credit
•SGST Credit
Till date: Govt. order
IGST / CGST / SGST
use problem
ITC GST Liability
IGST
CGST
UTGST
IGST
CGST
UTGST
Problem
Meaning: Assume, IGST payment , for IGST payment we can use:-
Now: Govt. amended the law and introduced new Section 49A
1
st
order= IGST
Now Problem arise
CGST & SGST GST
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II-Order = CGST
III-Order = SGST
New picture amendment = CGST Amendment Act
Section Order/ Rank
preference
Credit GST liability
49A I
st
IGST I-IGST
II-CGST
III-SGST
Proviso of 49(5) II
nd
CGST I-CGST
II-IGST
Proviso of 49(5) III
rd
SGST I-SGST
II-IGST
Now Problem arise
amendment Order OR” Manner then?, Act
|
Govt. added proviso in section 49(5)
Govt. inserted new Section 49B and give power to GST council for
change by notification.
Now, picture after change (notification issued)
Order Credit GST liability
I IGST I-IGST
II-CGST “or” SGST (as desired)
II CGST I-CGST
II-IGST
III SGST I-SGST
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CRUX of ITC Utilisation

Please keep in mind
IGST , CGST & last SGST |
Example of ITC Utilisation
ITC GST liablity  I-Adjustment II-Adj. III-Adj.
IGST 40,000 60,000 40,000 15,000 5,000
CGST 35,000 20,000 - 20,000 -
SGST 35,000 20,000 - - 2,000
AMENDMENTS IN ITC: [RULE – 36 OF CGST RULES]
Restriction on availment of ITC – ITC in respect of invoices/ debit notes not
uploaded by Suppliers in GSTR-1 further restricted from 20% to 10% [Sec
36(4) (EARLIER inserted on 9th Oct, 2019)- now amended w.e.f. 1st Jan,
2020]

ITC Utilisation
w.e.f. 1/07/17
to
31/01/2019
w.e.f 1/04/19
to
till date
w.e.f 1/02/19
to
31/03/2019
OrderITCGST
IGSTIGST
CGST
SGST
CGSTCGST
IGST
SGSTSGST
IGST
OrderITCGST
I IGSTIGST
CGST
SGST
IICGSTCGST
IGST
IIISGSTSGST
IGST
OrderITC GST
I IGST IGST (1
st
)
CGSTor SGST
(in any manner)
IICGST CGST
IGST
IIISGST SGST
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Latest Amendment [for Applicability in June 2021 wait for ICSI Supplement but for Dec 2021 100% applicable]
In Rule 36 (4), with effect from the 1st day of January, 2021,-
(a) for the word “uploaded”, at both the places where it occurs, the word
“furnished” shall be substituted; (b) after the words, brackets and figures
“by the suppliers under sub-section (1) of section 37”, at both the places
where they occur, the words, letters and figure “in FORM GSTR-1 or using the
invoice furnishing facility” shall be inserted; (c) for the figures and words “10
per cent.”, the figure and words “5 per cent.” shall be substituted.
Section 17 : Apportionment of Credit or Blockage of Credit

Banking Company
Option
ITC claimed on actual basis Total ITC = XXX
( Exempted supply = NO) - 50% Of ITC = XXX
( Taxable supply = YES) Eligible ITC = XXX
(Notional Basis)
Section 17(5): Blocked ITC Input used method
Personal purpose
Input used for
Business purpose
Exempted supply*
Taxable supply
(includes Zero Rated Supply)
No
Yes
No
Yes
*Exempted supply
•RCM case
•Security transaction
•Sale of land/ building
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No ITC in the following cases:
1) Motor vehicles for transportation of persons having approved seating
capacity of not more than thirteen persons (including the driver), vessels
and aircraft, except when they are used for making the following taxable
supplies, namely:—:
i. Further supply of motor vehicle, vessel & aircraft
ii. Transportation of passengers
iii. Transportation of goods [Related to Vessel & Aircraft]
iv. Imparting training on motor vehicle, vessel or aircraft
Except above 4 cases No ITC in case of motor vehicle/ Vessel/ Aircraft

2) Services related to Motor vehicle/ Vessel/ Aircraft

Note: [ITC ALLOWED also in below mentioned case)
where received by a taxable person engaged—
(I) in the manufacture of such motor vehicles, vessels or aircraft; or
(II) in the supply of general insurance services in respect of such
motor vehicles, vessels or aircraft insured by him
3) Food and beverages, outdoor catering , beauty treatment, health services,
cosmetic & 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.
EXCEPT: inward supply & outward supply is same then ITC allowed.
4) Membership of a club, health & fitness centre. Motor vehicle/ Vessel/ Aircraft
covered under
specified cases
Not covered under
specified cases
ITC allowed
Blocked ITC
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5) Travel benefits extended to employees on vacation such as leave 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
6) Work contract service related to immovable property (other than plant &
machinery) except inward & outward supply is same.
7) Goods or services received by taxable person for construction of immovable
property (other than plant & machinery) on his own amount.
8) Goods or services received “NR” except import of goods.
9) Goods or services used for personal consumption.
10) Goods lost / stolen / destroyed / written off or disposed by way of gift or
free sample.
11) Any tax paid in accordance with the provision of section 74/129 and 130.
ITC
Section 18 Availability of credit in special circumstances
(a) Section 18(1)(a)

(b) Unregistered person Registered person
Liable for registration
Stock purchased &
consumed
Stock purchased &
not consumed
GST but
ITC |
Balance stock
ITC allowed on balance stock
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(c)

ITC allowed on Capital goods also but after reduction of prescribed %age
ITC on capital goods = XXX
-5% each quarter or part = (XXX)
ITC allowed = XXX

(d)

ITC allowed on Capital goods also but after reduction of prescribed %age [5%
each quarter or part).
Unregistered person Registered person
Voluntary registration
Stock purchased &
consumed
Stock purchased &
not consumed
GST but
ITC |
Balance stock
ITC allowed on balance stock
ITC allowed Composition Scheme Normal Scheme
Conversion date
Input purchased &
supplied
Input purchased but
balance in stock
NO ITC ITC allowed Exempted supply Taxable supply
Taxability date
Input purchased &
supplied
Input purchased but
balance in stock
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Section 18(2)
Time limit: Upto 1 year from the date of issuance of Tax invoice.
Section 18(3)
In case of amalgamation, merger, demerger, succession of companies, Unutilised ITC
can be carried forward to amalgamated, resulting co.
In the case of demerger, ITC will be apportioned in the ratio of the value of
assets of the new units as specified in the demerger scheme. Here, “value of
assets” means the value of the entire assets of the business irrespective of
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Section 18(4)
(a)

ITC reversed on Capital goods also but after reduction of prescribed %age
ITC on capital goods = XXX
-5% each quarter or part = (XXX)
ITC not allowed = XXX

(b)

ITC reversed on Capital goods also but after reduction of prescribed %age [5%
each quarter or part].
Section 18(6)
In case of supply of capital goods or plant & machinery, on which ITC has been
taken, the registered person shall pay an amount equal to ITC taken on said capital
goods or plant & machinery reduced by such percentage (i.e. 5%) or the tax on
transaction value of such capital goods, plant & machinery determined under
section 15, WHICHEVER IS HIGHER.
Normal Scheme Composite Scheme
Conversion date
Input purchased &
supplied
Input purchased but
balance in stock
ITC allowed ITC not allowed Taxable supply Exempted supply
Exemption date
Input purchased &
supplied
Input purchased but
balance in stock
ITC allowed ITC not allowed Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 80 80

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Chapter - 9
Accounts & Records

 Location of maintenance of books of accounts
At his principle place of supply (mentioned in certificate of registration)
 Mode
Manual or electronic (at the option of registered person)
 Audit under GST
If aggregate turnover > 2 crores  by CA/CMA
[For FY 2018-19 & FY 2019-20 : GST Audit required if ATO> 5 crores]
Amendment : Every registered person except any assessee of C.G or S.G or
local authority whose accounts are subject to audit by CAG.

Eligible Assessee
Assessee
Registered person Unregistered person
•production / manufacture of goods
•inward / outward supply
•balance stock of goods
•ITC availed
•output tax paid or payable
•others, as may be prescribed
Owner of warehouse or Transporter
Types of books of account
•Consigner
•Consignee
•other relevant, as may be
prescribed Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 81 81

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Analysis of Amendment [Proviso to Rule 80(3) substituted– N/N
79/2020-CT w.e.f. 15th Oct, 2020]
1. Registered Person whose ATO upto 2 crores = Annual Return Filing
Has been made Optional (for FY 2017-18, 2018-19 and 2019-20)
and GST Audit and furnishing of copy of Audited Annual Accounts
& Reconciliation Statement Not Required

2. Registered Person whose ATO > 2 crores but upto 5 crores =
Annual Return Filing is Compulsory and GST Audit and furnishing
of copy of Audited Annual Accounts & Reconciliation Statement
Not Required for FY 2018-19 and 2019-20

3. Registered Person whose ATO > 5 crores = Annual Return Filing is
Compulsory and GST Audit and furnishing of copy of Audited
Annual Accounts & Reconciliation Statement Required
Amendment: Clarification about the calculation for FY (17-18)

 For Audit Turnover  1/4/17 - 1/7/18 + 1/7/18 - 31/3/18
 For Reconciliation: Turnover  only 1/7/18 - 31/3/18
 Power of Commissioner: Commissioner or above than Commissioner (officer)
may notify class of person for :

Additional books of A/c Relaxation in books of A/c
Sec. 35 (sub-section 3) Sec. 35 (sub-section 4)
 Penal Provision: If any default arise u/s 35(1) or 35(2) then punishment u/s 73
or 74 1 April 2017 1 July 2018 31 March 2018
Birth of GST Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 82 82

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 Time limit for maintaining books of A/c: 72 months from the date of annual
GST return
Eg. F.Y 19-20 = due date of annual return = 31/12/20
+ 6 years
31/12/26
 Who is party of an appeal / revision: 1 year after disposal
“or”
72 months (6 years) from due date of annual GST return.
“Whichever is later”
Example : a) 30/6/2026 + 1 year  30/6/2027
31/12/2020 + 6 years  31/12/2026
b) 30/6/2024 + 1 year  30/6/2025
31/12/2020 + 6 years  31/12/2026 Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 83 83

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Chapter - 10
Audit Under GST

Audit General Audit Special Audit
Section Sec. 65 of IGST Sec. 65 of IGST
Direction given by Assistant
Commissioner or above officer
previous approval of Commissioner
Undertaken by Commissioner or any other
officer authorised by him
CA or CMA (if the value has not
correctly declared or ITC wrongly
availed)
Co. CA र ,
independent person |
Prior notice to
registered
person
15 days N.A.
Completion
limit
3 month from the date of
commencement (+) 6
months extension by
commissioner
90 days + 90 days (extension)
Final report Within 30 days after
completion
N.A.
Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 84 84

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Chapter - 11
Compensation Act, 2017
1) It is a kind of tax which will be collected over & above of the declared
taxes by the GST council i.e. CGST / SGST / UTGST / IGST.
2) GST Compensation Cess imposed u/s 8 of GST Compensation Act, 2013.
3) It has to be charged on the luxuries & SIN items only. Ex- Cars, Ciggarates,
Tobacco, Pan-masala etc.
4) It would be imposed for the next 5 years only . Therefore No Cess will be
levied.
5) It will be charged on the Intra-state & Inter-state transaction over & above
GST.
6) It has been levied to pay the compensation to the State for loss of revenue
in result of implementation of GST.
7) If any fund at the end of 5 years, the excess amount will be shared by the
State & central Govt.
8) The state account will be audited by “CAG” therefore an amount will be
cleared to the state for the loss of revenue every year but preliminary
amount shall be paid on every 3 month / 2 month / half yearly as the case
may be.
9) Base year is F.Y 2015-16 Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 85 85

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10) Growth rate is 14% p.a.
Example: If the base year revenue for 2015-16 for a concerned State, calculated as per
section 5 is one hundred rupees, then the projected revenue for financial year 2020-21
shall be as follows – Projected Revenue for 2020-21=100 (1+14/100)
5

11) Compensation cess will be applicable on goods or services or both
12) All the tax payers under GST except section 10 person will collect & remit
the cess to central govt.
13) ITC shall be allowed to the assesse but permitted only for payment of cess.

14) Rates (Maximum)
Pan-masala = 204%
Cigarattes = 290%
Cars = 3% - 15% Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 86 86

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Chapter - 12
Composition Levy
What is the difference between Composition scheme & Normal scheme?

Normal Scheme (NS) Composition Scheme (CS)
1 Covered u/s 9 of CGST Act

Covered u/s 10 & 10(2A) of CGST Act
2 ITC available on inward supply.
Eg.

ITC not available on inward supply.
Eg.

3 GST payable = Output tax
= (-) ITC
Net GST payable = XXX

Eg. X GST (1200) Y (NS)
GST (1500)
Z
Net GST = 1500-1200 = 300
TAX payable =Turnover X concessional
rate
= (-) ITC
TAX payable = XXX

Eg. X GST (1200) Y (CS)
GST (1500)
Z
Net GST = 1500-1200 = 1500 GST paid
Mr. Y to
claim ITC
Mr. X Mr. Y
Mr. Z
Normal Supply GST paid
Mr. Y cannot
claim ITC
Mr. X Mr. Y
Mr. Z
Composite Supply Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 87 87

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4 Reg. person can make intrastate
supply as well as interstate supply.

Example:

Composite taxable person cannot make
interstate supply.
CRUX: Purchase …
Supply only intra …
Example:

5 Any Reg. person can opt normal
scheme.
Only specified Reg. person can opt
composite scheme.
(Aggregate turnover = 1.5 crore / 75
lacs /50 lacs )
6 Return under GST
File 3 monthly returns
+
1 Annual return
Total= 37 returns

Now, 2 monthly returns & 1 annual
return (Total 25 return).
GSTR-1 , GSTR-3B , GSTR-9

File quarterly return
+
1 annual return
Total = 5 returns

Now, 1 annual return
+
1 annual return
Total 2 returns
GSTR-4 , GSTR-9A
7 Higher tax rates
(5%, 12%, 18%, 28%)
Lower tax rates
(1%, 1%, 5%, 6%) Y (Delhi)
A (Delhi)
X (Delhi)
Z (Bihar) B (Bihar) Y (Delhi)
A (Delhi)
X (Delhi)
Z (Bihar) B (Bihar) Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 88 88

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Section 10:
1. Normal tax procedure are not practical or cost efficient to small suppliers for
such small suppliers GST law provides for composition levy scheme under GST.
2. Such scheme are devised for procedural case for small suppliers &
administrative convenience
3. Composition scheme is provided for simple taxation system. (Aggregate
turnover is taxed at flat rate therefore this system is known as Flat Rate
Taxation System)
4. Such scheme is optional :
 Scheme is available only when it is opted.
 Benefit of this scheme cannot be claimed unless the option is exercised
as per the prescribed procedure = Rule 3.
 Option may be exercised at the time of registration or past registration.
 Scheme has no lock in period i.e. supplier may opt out this scheme at
anytime.

8 Detailed books of A/c Less books of A/c
9 Classification of goods is required No classification is required

10 Audit is required if aggregate
turnover > 2 crore [For 18-19 & 19-20
A.T.O is more than 5 Crore]

No question of Audit under GST
11 Burden of GST can be shifted on
consumer
Concessional Tax cannot be collected
from consumer

12 Normal registered person will issue
tax invoice
Composite dealer will issue Bill of
Supply
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Section 10: Eligibility Limit & Eligible Assessee
Eligible Assessee: Registered person
Eligibility Limit: depends on normal state or special category state.

CASE 1: Normal state (includes Assam, J&K, and Himachal pradesh)
Special category state* (8 notified states)

*8 Special category states
Preceding Financial year
Eligible
•Aggregate turnover= upto 150 lakh
•Aggregate turnover= upto 75 lakh
upto 150 lakh
upto 75 lakh
Current Financial year
more than 150 lakh
more than 75 lakh
•No GST liability
•pay concessional
rate of tax
•No ITC
•burden of tax
cannot be shifted
•GST payable
•ITC allowed
•burden of tax on customers pocket
Normal state
Special cat. state Himachal
Pradesh
1.Himachal Pradesh
2.Arunachal Pradesh
3.Meghalaya
4.Nagaland
5.Manipur
6.Mizoram
7.Sikkim
8.Tripura
Uttarakhand Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 90 90

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Important Note:
1) Section 10 overruled section 9(1)
Means
Normal tax on outward supply pay ,
Outward supply प concessional tax pay |

In other words: Section 10 complete GST ko overrule Except 9(3) & 9(4).

Agar inward supply RCM covered RCM GST even if assesse
ne composition scheme opt |
Example:
CASE 1: Normal Scheme
Miss C
Mr. D
Mr. A
Mr. B Miss E
GST charged on both
outward supply. Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 91 91

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CASE 2: Composite Scheme

Amendments

Particulars Old law Amended law
1) Change is Turnover limit
 Normal state
 Special category state

100 lakhs
75 lakhs

150 lakhs
75 lakhs
2) Special category state 9 states 8 states (Assam shifted to
normal state)

Aggregate turnover: section 2(6)
The law says that “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 Miss C
Mr. P
Mr. A
Mr. B Miss Q
Concessional tax rate
to apply Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 92 92

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Permanent Account Number, to be computed on an all-India basis but excludes
Central tax, State tax, Union territory tax, Integrated tax and cess
Explanation 1
For the purposes of computing AGGREGATE TURNOVER of a person for
determining his ELIGIBILITY To pay tax under this section,
 the expression “AGGREGATE TURNOVER” shall include the value of
supplies made by such person from the 1st day of April of a financial year
up to the date when he becomes liable for registration under this Act, but
shall not include the value of exempt supply of services provided by way of
extending deposits, loans or advances in so far as the consideration is
represented by way of interest or discount

Explanation 2:
For the purposes of determining the tax payable by a person under this section,
 the expression “TURNOVER in State or Union territory” shall not
include the value of following supplies, namely:––
(i) supplies from the first day of April of a financial year up to the
date when such person becomes liable for registration under this
Act; and
(ii) Exempt supply of services provided by way of extending deposits,
loans or advances in so far as the consideration is represented by
way of interest or discount’.
Important point
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 Paragraph 6(b) of
Schedule II), of value not exceeding
 10% of TURNOVER in a State or UT in the preceding FY or
 Rs 5,00,000, Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 93 93

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Whichever is higher
Explanation: For the purposes of second proviso, the value of EXEMPT SUPPLY
of services provided 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 for determining the value of TURNOVER in a State or
UT
Note: limit of 10% or 5 lakh, whichever is higher will be in addition to
exempt interest/discount
The registered person shall be eligible to opt under sub-section (1), if—
a) save as otherwise provided in sub-section (1), he is not engaged in the
supply of SERVICES;
b) he is not engaged in making any supply of GOODS which are not leviable
to tax under this Act;
c) he is not engaged in making any inter-State outward supplies of GOODS;
d) he is not engaged in making any supply of GOODS through an
electronic commerce operator who is required to collect tax at source
under section 52; and
e) he is not A MANUFACTURER* of such GOODS as may be notified by
the Government* on the recommendations of the Council; and

N/N 8/2017-CT: 4 Goods notified
1) Tobacco and Manufactured tobacco substitutes
2) Ice cream and other edible ice, whether or not containing cocoa
3) Pan Masala
4) Aerated Water
f) he is neither a casual TP nor a NRTP.
Provided that , where more than one registered person are having the same
Permanent Account Number issued under the Income tax Act, 1961, the
registered person shall not be eligible to opt for the scheme under sub-section
(1) unless all such registered persons opt to pay tax under that sub-section. Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 94 94

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Example

ExamplePreceding Financial year
Aggregate turnover= 90 lakh
may provide service upto
Current Financial year
Mr. A
Eligible for scheme
= 90 lakh X 10% = 9 lakh
”or”
= 5 lakh
Higher 9 lakh Delhi
Mr. X
Haryana Punjab
TO: 40 lakh TO: 70 lakh TO: 30 lakh
Aggregate turnover = 140 lakh
Eligible for Composite Scheme
In C.Y assessee wants
to deal in:
Delhi Punjab Haryana
Goods Goods Goods & Services
Eligible limit in C.Y subject to 150 lakh subject to 150 lakh subject to 150 lakh
but service of max.
5 lakh allowed
Higher of
= 30 lakh X 10% = 3 lakh
”or”
= 5 lakh Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 95 95

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NOTE: Composite scheme Branches & withdraw
withdraw |
Now, Composition Scheme Eligible for Supplier of Services also
[section 10(2A)]
(2A) Notwithstanding anything to the contrary contained in this Act but
subject to the provisions of section 9 (3) and (4) (i.e., Supplies under RCM),
 a registered person, not eligible to opt to pay tax under sub-section (1)
and sub-section (2),
 whose AGGREGATE TURNOVER in the preceding financial year did not
exceed Rs 50 lakhs, may opt to pay, in lieu of the tax payable by him
under Section 9(1),
 AN AMOUNT of tax calculated at such rate as may be prescribed, but
not exceeding 3% of the turnover in State or turnover in Union
territory,

a) he is not engaged in making any supply of goods or services which are not
leviable to tax under this Act;
b) he is not engaged in making any inter-State outward supplies of goods or
services; Preceding Financial year
Eligible
Aggregate turnover= upto 50 lakh Upto 50 lakh
Current Financial year
more than 50 lakh
•No GST liability
•pay concessional
rate of tax
•No ITC
•burden of tax
cannot be shifted
•GST payable
•ITC allowed
•burden of tax on customers pocket Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 96 96

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c) he is not engaged in making any supply of goods or services through an
electronic commerce operator who is required to collect tax at source under
section 52;
d) he is not a manufacturer* of such goods or supplier of such services as may
be notified by the Government* on the recommendations of the Council;
and
e) he is neither a casual TP nor a NRTP;
Provided that, where more than one registered person are having the same
Permanent Account Number issued under the Income-tax Act, 1961, the
registered person shall not be eligible to opt for the scheme under sub-section
(2A) unless all such registered persons opt to pay tax under that sub-section.
Note:
Sec 10(2A) = Tax calculated at such rates as prescribed (but not exceeding
3% CGST) Thus,
 Maximum C/Tax rate = @6% (3% CGST + 3% SGST)
 Actual C/Tax rate = As prescribed = as prescribed by Rule * Rule 7
(prescribing C/Tax Rates) has been recently amended to provide for
C/Tax rates of such suppliers.
 C/Tax rate = 6% of TO in the State/ UT (3% CGST + 3% SGST)
RULE 7: Rate of Composition Levy / Concessional Rate
Particulars CGST SGST Total
Manufacturer of Goods 0.5% 0.5% 1% of TO
Trader of Goods 0.5% 0.5% 1% of TS
Restaurant Services 2.5% 2.5% 5% of TO
Services provided with above
category
0.5% 0.5% 1% of TO Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 97 97

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Only supply of services 3% 3% 6% of TS

Note: In simple words, RP opting for Sec 10(2A) shall be liable to pay C/Tax
on TO in the State/UT (such TO shall include non-exempt as well as exempt
supplies). However, exempt service by way of income in form of
interest/discount will remain excludible in view of Explanation 2 to Sec 10.

Other Conditions & restrictions for composition scheme
Section 10(2) & Rule 5:
1) Supplier of non taxable goods under GST is not eligible for this scheme.
2) If supplier making Inter state supply, then not eligible for this scheme.
3) Supplier can issue only Bill of supply instead of tax invoice.
4) A dealer registered under composition scheme is not required to maintain
detailed books of A/c as required by normal tax payer.
5) A composition dealer is not allowed to avail ITC of GST on inward
supply.
6) The taxable person is required to furnish only one return i.e. GSTR-4 on
a quarterly basis and one on annual return in GSTR-9A.s
Amendment: The GST council in its 32
nd
meeting held on 10/1/19has decided
the compliance under Composition scheme shall be simplified as now they
would need to file ONE ANNUAL RETURN , but payment of tax would remain
quarterly (along with a simple declaration). This amendment shall be effective
from 1/4/19.
CRUX
Particulars Before 1/4/19 After 1/4/19
GSTR-4 (return) Quarterly Annually
Payment Quarterly Quarterly Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 98 98

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GSTR-9A (return) Annually Annually
7) Composition scheme is opened for all business that are associated with
same PAN.
8) Tax payer making supply of goods through on ECO is not eligible for
scheme.
9) He shall maintain the words “Composition taxable person, not eligible to
collect tax on supply” at the top of bill of supply issued by them.
10) He shall mention the word “Composition taxable person” on every notice
board or sign board.
11) Such a dealer cannot claim ITC of concessional rate paid under this
scheme.
Rule 3 & Rule 4 Availment of Composition Scheme

 Separate intimation is required
 Form GST CMP-01
 Time limit: prior to appointed day, but not later than 30 days, or such further
period as may be extended by commissioner. Migrated Taxpayer
Fresh GST reg.
application filed wherein
Comp. scheme opted
Currently in Normal
scheme, subsequently
switch to Comp. scheme
(An already existing reg.
person under old law through
provisional reg.) opting for
Comp. scheme
Intimation through reg.
application itself which shall be
considered as an intimation to
pay tax u/s 10
Separate intimation required
(before start F.Y for which
comp. scheme opted
Form GST CMP-02
Part B of Form GST REG 01Rule 3(1)-mentioned below
Option shall be effective from
appointed day under rule 4(1)
Option shall be effective from
the effective date of reg.
Beginning of Financial year
Availment of Composition Scheme Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 99 99

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NOTE: Intimation submitted post appointed day, but within 30 days/ extended
date.
 He shall not collect any tax from buyer.
 He shall issue Bill of supply instead of tax invoice.
 He shall also furnish stock details under rule 3(4).
 Form GST CMP-03
 It shall be filed within 90 days from the date on which option of CS
exercised.

RULE 3(5)
Option exercised for one State / UT = Deemed exercised for all States / UT on
PAN India basis

RULE 6
Rule 6(1)
Once opted for this scheme is valid for lifetime so long as he satisfy all the
conditions mentioned in the said sections & rules
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Auto withdrawl
(may take place at
anytime in C.Y)
Discretionary withdrawl
of supplier
(may take place at
anytime in C.Y)
Denial by Proper Officer
Option lapses if aggregate TO
exceeds 1.5 crore/ 75 lakh/ 50
lakh, intimation of withdrawal
should be given by supplier
(within 7 days of occurrence of
such event)
Intimation of withdrawal shall
be given by supplier before
withdrawal
as he has reason to believe
that supplier was ineligible “or”
has contravened conditions)
•SCN: CMP-05
•Reply: CMP-06
•Order: CMP-07 (30 days)
Form GST CMP-04Form GST CMP-04
Rule 6(2)/(3)/(4)/(5)/(6)
Withdrawal from Composition Scheme Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 101 101

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Chapter -13
Demand & Recovery
Penalty under Demand & Recovery
S. No. Action by Tax Payer Bonafied case Malafied case
1 Tax & interest paid before
show cause notice
No penalty 15% of tax
2 Tax & interest within 30
days of show cause notice
No penalty 25% of tax
3 Tax & interest paid within
30 days of order
Higher of 10% of
tax “or” ₹ 10,000
50% of tax
4 Tax & interest paid after
30 days of order
Higher of 10% of
tax “or”₹ 10,000
100%

Time limit of show cause notice & order

Show cause notice Order
Bonafied Within 2 year & 9 months
of services from due date
annual return filing.
Within 3 years from due date
of annual GST return
Malafied Within 4 years & 6 months
from the dye date of annual
GST Return

Within 5 years from due date
of annual GST return
Any amount of
tax collected
but not paid
No Time Limit Within 1 year from date of
issue of notice
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Rule 142(1A) Notice and Order for demand of amounts payable under this Act
GST payable ascertained by PO – before issuance of SCN, that shall be
communicated to taxpayer in Form GST DRC-01A (Part A)
The proper officer shall may, before service of notice to the person chargeable
with tax, interest and penalty, under Section 73 (1) or Section 74 (1), as the
case may be, shall may communicate the details of any tax, interest and
penalty as ascertained by the said officer
Reason of Amendment:
Council Decided that such communication shall not be a mandatory requirement. Rather, it shall be at DISCRETION of tax officer. Accordingly, Rule
142(1A) has been amended (w.e.f. 15th Oct, 2019) – therein the word ‘shall’
have been substituted with the word ‘may’.

Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 103 103

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Chapter - 14
E-Way Bill
Only in case of goods  Rule 138
1) Objectives of E-Way Bill (why introduced?)
 To control / stop practice of bogus invoice related to goods.
 To control tax evasion in country.
 For track movement of goods

2) E-Way Bill ( Mandatory)
Yes, mandatory subject to *condition.
*Condition  If value of consignment exceeds ₹ 50,000 (for less value –
optional)
Exception: In the following cases e-way bill is mandatory irrespective of value of
consignment

 Movement of handicraft goods
Example-1 A truck contains 3 consignment based on 3 invoices, Invoice-1 for ₹
65,000, invoice-2 for ₹ 45,000 & Invoice- 1 for ₹1, 00,000. How many E-Way
Bills will be generated?
Answer: E-Way Bill will be generated for Invoice 3 & 4.

Example-2 E-way bill
Mandatory without exemption limit
Principal Job worker Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 104 104

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# In case of handicraft goods same treatment of example 2 will prevail
# Meaning of value:
Particulars Consolidated bill E-Way Bill
Value of taxable goods 20,000 20,000
Value of exempted goods 35,000
Total 55,000 20,000
GST @28% 5,600 5,600
Cess @ 15% 3,000 3,000
Total value 63,600 28,600

No E-Way Bill
3) Where required  Intra / Inter?
E-Way bill for Inter as well as Intra State . However, for Intra state movement
of goods  value for E-Way Bill may vary
Example:
 Delhi  Intra  1,00,000 (value)
 Bihar  Intra  2,00,000 (value)
4) E-Way Bill made by?

 E-Way bill can be made by any of the above person by using GSTIN ₹ 25,000
Delhi
Mr. VG
Job Worker
Mandatory e-way bill Supplier Transporter Recipient Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 105 105

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5) Types of E-Way Bill
Normal e-Way Bill Bulk e-Way Bill
 Transportation of goods of one
type / HSN Code
 Transportation of multiple
variety of goods /multiple HSN
code
 Supported with an excel sheet

6) Cancellation of E.W.B

7) When is E-Way Bill not required?
 Non motorized vehicle
 Exempted goods movement / supply
 Non taxable goods (alcoholic liquor , 5 P.P)
 Jewellery & Gems, Coral etc.
 LPG gas
 Kerosin oil
 Post / parcel / mail etc. Create User ID & Password Login to generate e-way bill
E-way bill with 12 digit unique
no. generated
Enrolment via PAN & Aadhar number
Process for Unregistered Person
Contains QR code for fast
verification of movement of
goods
E-way bill no. will be communicated by SMS and e-mail to supplier,
transporter and buyer.
1
2
3
4
5 Cancellation within 24 hours.
( after verification, no
cancellation)
E.W.B once generated can be
cancelled
(reason prescribed in GST portal) Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 106 106

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 Currency ( not covered in goods )
 Custom control goods (port to warehouse etc.)
 Movement  o/s the definition of supply (schedule- III) [except in
the case of job worker]
 Government specified area
 Govt. department goods ( ex- defence goods)
 Empty container transportation
 Goods transported upto “dharamkaanta” etc. (upto 20 km)

8) Validity of E-Way Bill
Based on  Cargo type & distance

9) Consolidated E-Way Bill (GST-EWB-021)
Extension
By commissioner
Normal cargo Over-dimensional Cargo / M.M.CARGO (not
overloaded) WITH SHIP
Upto100 km –1 day
Excess 100 km –1 day
(every 100 km or part –1 day)
20 km –1day
Excess 20 km –1 day
(every 20 km or part –1 day)
Example : 252 km = 3 days
(every 100 km or part –1 day)
Example : 35 km = 2 days
42 km = 3 day.
.
.
.
E-Way Bill generator
In certain cases Extended by self Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 107 107

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10) What happen in case of Multi vehicle?
Example:  Truck problem
 Transhipment case

Transporter
Supplier 1
Make consolidated EWB
Supplier 2
Supplier 3
Supplier 4
ST1DL
ST2 ST3 ST4
Bihar
Delhi ISBT Chandigarh
Delhi
InterLaxmi
Nagar
Delhi
Intra
T-2T-1
E-Way Bill generated
with details of Truck-1
Amend /update EWB with
details of Truck-2
12 digit number
However, Movement Intra + upto 50 km
No need to generate details of Truck-1
Details of Truck-2 is necessary. Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 108 108

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11) Rejection of E-Way Bill (other party can Reject)
Yes, within 72 hours, if not rejected then deemed to be accepted.
 Cancellation by generator
 Rejection by other than generator

12) Own master
 List of customer
 List of supplier
 List of items
 List of destination, etc.

13) Time of E-Way Bill
Before of movement of goods
Rule Particulars Relevant Form no.
R-138 Info. To be furnished prior to
commencement of movement of goods.
GST-EWB-01
R-138A Documents to be carried by a person-in
charge of a conveyance.
GST-INV-1
R-138C Inspection & verification of goods. GST-EWB-03
R-138D Facility for uploading information regarding
detention of vehicle
GST-EWB-04
R-138 Consolidate E-Way Bill GST-EWB-02

AMENDMENTS IN EWB:
ANALYSIS:
EWB generation blocked in respect of Non-Filers
 [Non filing of 2 consecutive GSTR-1 (Sec 37) / Returns (Sec 39) ] or Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 109 109

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 [Non filing of 2 consecutive Quarterly Tax payment Statement
(Composition Supplier)

FAQ (Frequently Asked Questions) on Blocking and Unblocking of EWB generation
facility On EWB Portal
Q. What is blocking of E-waybill (EWB) generation facility?
Ans. Blocking of EWB generation facility means disabling taxpayer from generating EWB, in
case of non-filing of 2 or more consecutive GSTR 3B Return on GST Portal, by such
taxpayer. The GSTINs of such blocked taxpayers cannot be used to generate the EWBs either
as Consignor or Consignee. e.g., taxpayers who are required to file Form GSTR-3B and have
not filed it for the month of January and February, will be blocked from EWB generation
facility form March onwards.
Q Whether recipient can generate EWB of blocked GSTINs, indicating them as supplier and
vice versa?
Ans. No, if a Taxpayer GSTIN is blocked for EWB Generation facility, that GSTIN cannot be
entered in EWB either as supplier or recipient. Thus, recipient of such blocked GSTINs cannot
generate EWB indicating such blocked GSTIN as supplier.
Q. Can transporter generate EWB in respect of Blocked GSTIN, either as supplier or as
recipient?
Ans. No, the transporter cannot generate the e-way bills in respect of such blocked
taxpayer’s GSTINs, as supplier or as recipient.
Q. How does blocking take place in the EWB system?
Ans. The GST System and EWB System are integrated and accordingly GSTIN’s of the
taxpayers who have not filed GSTR 3B return, for two or more consecutive period, will be
blocked for EWB generation.
Q. What is unblocking of E-waybill (EWB) generation facility?
Ans. Unblocking of EWB generation facility means restoring the facility of generation of
EWB, in respect of such taxpayers GSTIN (as Consignor or Consignee), in the event of filing Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 110 110

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of the return for the default period(s), thereby reducing the default period to less than 2
consecutive tax periods. Also, the Unblocking can be done by the jurisdictional
COMMISSIONER online on the GST Portal, upon considering the manual representation
received from such taxpayer. [Proviso to Rule 138-E of CGST Rules, 2017]
Q. How does unblocking take place in e-waybill system?
Ans. In case of filing of GSTR 3B returns by taxpayers, resulting in reduction of their return
filing default period of less than two tax periods, their return filing status will be updated on
EWB Portal, and their GSTIN will be unblocked for EWB generation facility, next day. The
Unblocking can be done by the jurisdictional officer online on the GST Portal, upon
considering the manual representation received from such taxpayer.
How much time does it take to update status on EWB Portal, for generation of E- Way
Bill, after return is filed on GST Portal. -- Once the Return is filed on GST Portal, the
blocking status is removed by the system, next day.
Q. What happens to the already generated EWBs, on which goods are in transit (i.e. EWB
generated earlier pertaining to the blocked GSTINs)?
Ans. There will not be any effect/impact on the already generated e-way bills, of the blocked
GSTINs. These e-way bills are valid and can be used to move goods to the destination.
Can one update the vehicle and transporter details and extend the validity of e-way bills, if
required, for the e-way bills belonging to the blocked GSTINs? - The transporters/ taxpayers
can update the vehicle and transporter details and carry out the extension in validity period
of these e-way bills, if required.
Q. What is the effect of blocking/unblocking on the transporters?
Ans. There are two types of transporters — the Transporters who have only enrolled
themselves on EWB portal (i.e. who don’t have GSTIN) and the Transporters who are also
registered at GST portal (i.e., who have GSTIN). Transporters enrolled in EWB Portal and
who are not registered on GST portal, will not be impacted (as they are not required to file
GSTR 3B returns). If the GSTIN of the GST registered transporter is blocked, then that
GSTIN cannot be used as Consignor, Consignee or transporter, while generating EWB and
updating transporter details. Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 111 111

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Will the EWB system block the updating of Transporter Id, if registered in GST & filing GSTR
3B return, if transporter GSTIN is blocked for EWB generation facility? - Yes, the EWB
system will block the updating of Transporter Id, if registered in GST and has not filed the
GSTR 3B Return for last two successive tax periods. However, there will not be any problem
in updating details of the enrolled TRANSPORTER ID (i.e. who don’t have GSTIN), while
generating the EWB.
Rule 138-A : Documents and devices to be carried by a person-in-charge of
a conveyance
RP covered by e-invoicing provisions – QR code can be produced for verification of PO
(instead of tax invoice)
In case, invoice is issued in the manner prescribed under Rule 48 (4), the
Quick Response (QR) code having an embedded Invoice Reference Number
(IRN) in it, may be produced electronically for verification by the proper
officer, in lieu of the physical copy of such tax invoice.
Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 112 112

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Chapter - 15
Input Service Distributor

Distribution of ITC

CGST
CGST
IGST SGST
SGST
IGST Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 113 113

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Example:

Turnover:
A = 5,00,000, B = 3,00,000 , C = 2,00,000
Distribution of ITC:
A = CGST = 25,000 + 50,000
SGST = 25,000 + 50,000
IGST = 75,000
B = CGST = 15,000
SGST = 15,000
IGST = 45,000
C = CGST = Nil
SGST = Nil
IGST = 10,000 + 10,000 + 30,000 IGST
IGST
IGST
IGST
IGST always as IGST Service (all)
Service benefit
Registered as ISD
Delhi
Haryana
Delhi
Head Office
CGST50,000
SGST50,000
Delhi
CGST50,000
SGST50,000
IGST 1,50,000
Service (all)
Service (A)
Delhi
Haryana
Delhi
A
B
C Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 114 114

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Chapter - 16
Place of Supply[POPOS/POPS]
Supply provide |
Need of POS

A: Place of supply of goods other than import & export
(Section 10) LOS
+
POS
Same State/ UT = Intra state
LOS
+
POS
2 different state
2 different UT
1 state & 1 UT & so on
= Inter state
•Without determining the POS we cannot find out nature of supply
•POS Sections = Sec 10 = SOG
Sec 11 = import / export
Sec 12 =
Sec 13 =
SOS
S. No. Nature of Supply Place of Supply
1 Where the supply involves
movement of goods whether by
the supplier or the recipient or by
any other person
Location of the goods at the time
at which, the movement of goods
terminate for delivery to the
recipient.
2 Where the goods are delivered to
the recipient or any person on the
Principal place of business of such
third party. Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 115 115

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B: Place of supply of goods imported into or exported from India
(Section 11)

C: Place of supply of service where location of supplier AND
recipient is in India (Section 12)

(i) In case of the following 12 categories of services, the place of supply is
determined with reference to a proxy; rest of the services are governed by
the default provision.
direction of third person by way of
transfer of title or otherwise.
3 Where there is no movement of
goods either by supplier or
recipient
Location of such goods at the time
of delivery to the recipient.
4 Where the goods are assembled or
installed at site
Place where the goods are
assembled or installed.
5 Where the goods are supplied on
board a conveyance like a vessel,
aircraft, train or motor vehicle
Place where such goods are taken
on-board the conveyance.
6 Where the place of supply of
goods cannot be determined in
terms of above provision
To be determined in the prescribed
manner.
S. No. Nature of Supply Place of Supply
1 Import Location of importer
2 Export Location outside India
S. No. Nature of Supply Place of Supply
1 Immovable property related
services including accommodation
in hotel / boat / vessel
 location at which the immovable
property or boat or vessel is
located or intended to be Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 116 116

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If the immovable property or
boat or vessel is located in more
than one State
located
 If located outside India:
location of the recipient.

Each such state in proportion to
the value of services provided in
each state.
2 Restaurant and catering services,
personal grooming, fitness,
beauty treatment & health
service
Location where the services are
actually performed.

3 Training & performance appraisal  B2B : location of such
registered person
 B2C: Location where the
services are actually performed.
4 Admission to an even or
amusement park
Place where the event is actually
held or where the park or the other
place is located.
5 Organisation of an event
including ancillary services &
assigning of sponsorship to such
events

If event is held in more than one
state
 B2B : location of such
registered person
 B2C : Location where the
event is actually held
 If the event is held outside
India-Location of the recipient

Each such State in proportion to
the value of services provided in
each state.
6 Transportation of goods including
mails or courier
 B2B : location of such
registered person
 B2C: Location at which such
goods are handed over for their
transportation Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 117 117

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7 Passenger transportation  B2B : location of such
registered person
 B2C: Place where the passenger
embark on the conveyance for a
continuous journey
8 Services on board a conveyance Location of the first scheduled
point of departure of that
conveyance for the journey.
9 Banking & other financial
services including stock broking
 Location of the recipient of
services in the records of the
supplier
 Location of the supplier of
services if the location of the
recipient of services is not
available
10 Insurance services  B2B : location of such
registered person
 B2C: Location of the recipient
of services in the records of the
supplier
11 Advertisement services to the
Govt.
 Each of State / Union Territory
where the advertisement is
broadcasted / displayed / run /
disseminated
 Proportionate value in the case
of multiple States.
12 Telecommunication services

 Services involving fixed line,
leased & internet leased circuit,
dish antenna etc: Location of
such fixed equipment.
 Post-paid mobile/ internet
services: Location of billing Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 118 118

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If the leased circuit is installed
in more than one state
address of the recipient & if the
same is not available: location of
supplier.
 Pre-paid mobile/ internet/ DTH
service provider
 Through selling agent/ re-seller/
distributor : Address of such
selling agent/ re-seller/
distributor in the records of
supplier at the time of supply
 By any person to final
subscriber: Location where pre-
payment is received or place of
sale of vouchers.
 When payment made through
electronic mode: Location of
recipient in records of supplier.
 Other cases: Address of the
recipient in the records of the
supplier & if the same is not
available, location of supplier.

Each such State in proportion to
the value of services provided in
each State Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 119 119

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(ii) For the rest of the services other than those specified above,
the default provision has been prescribed as under:

D: Place of supply of services where location of supplier OR
location of recipient is outside India (Section 13)

(i) In respect of the followings category of service, the supply is
determined with reference to a proxy; rest of the services are governed by
the default provision.
Default rule for the services other than the 12 specified services
S. No. Description of Supply Place of Supply
1 B2B Location of such registered person.
2 B2C  Where the address on record exist:
Location of the recipient
 Other cases: Location of the supplier
of services.
S. No. Nature of Service Place of Service
1 Services supplied in respect of
goods which are required to be
made physically available.

Services supplied in respect of
goods but from a remote
location by way of electronic
means.
Location where the services are actually
performed.

Location where the goods are situated
at the time of supply of services.

Above provisions are not applicable in case of goods that are temporarily
imported into India for repairs & exported after repairs without being put
to any other use in India

2 Services which require the Location where the services are actually Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 120 120

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physical presence of recipient or
the person acting on his behalf
with the supplier of services.
performed.

3 Services supplied directly in
relation to an immovable
property including
accommodation in hotel, boat,
and vessel.
Place where the immovable property is
located or intended to be located.
4 Admission to or organisation of
an event
Place where the event is actually held.
If the above services are supplied at more than one location i.e.
i. Goods & individual related
ii. Immovable property-related
iii. Event related
At more than one location,
including a location in the
taxable territory
Location: territory in the taxable
territory
In more than one state Each such State in proportion to the
value of services provided in each state
5 Services supplied by a banking
company, or a financial
institution, or a NBFC to
account holders.

Intermediary services

Services consisting of hiring of
means of transport, including,
yachts but excluding aircrafts &
vessels, up to a period of one
month.
Location of the supplier of services.
6 Transportation of goods, other Place of destination of such goods. Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 121 121

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(ii) For the rest of the services other than those specified above, a default
provision has been prescribed as under:

Default rule for the cross-border supply of services other than nine
specified services.
S. No. Description of Supply Place of Supply
1 Any  Location of the recipient of service.

 Location of the supplier of service, if
location of recipient is not available in the
ordinary course of business.

AMENDMENT IN POS:
Supply of MRO (Maintenance, Repair and Overhaul) Services in respect of (AIRCRAFTS) (Aircrafts engines and other aircraft components or parts): Notified
u/Sec 13(13) – PoS will now be location of recipient of service (as against place of
performance) [Notification issued in exercise of powers given by Sec 13(13) –
amended and made effective from 1st April, 2020 .
than by way of mail or courier.
7 Passenger transportation. Place where the passenger embarks on
the conveyance for a continuous
journey.
8 Services provided on-board a
conveyance.
First scheduled point of departure of
that conveyance for the journey.
9 Online information & database
access or retrieval services.
Location of recipient of services. Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 122 122

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Chapter - 17
Refund Under GST
Q  What is refund? When can one apply for refund under GST?
A  A person can make an application for refund of GST before the expiry of 2
years from the relevant date in prescribed form & manner as may be
prescribed.
 Such refund may be claimed in the return filed in regular manner by the
taxable person if refund is related to E-Credit ledger & cash ledger.
 No refund shall be paid to an applicant if the amount of refund is less
than ₹ 1,000

Q  What are the cases where refunds are allowed?
A  In the following cases
 In the case where excess GST has been paid Erroneously
 Zero Rated Supply made without payment of tax
 Supply of goods / services to a SEZ unit
 The registered dealer has regarded taxability of a particular supply as
Inter-state supply instead if Intra-state supply “or” vice versa
 In the case where Reg. person is selling goods at lower rate & has
paid a higher rate of tax on the purchase , then he my claim refund
of excess portion
 Assessee cannot claim refund in case where he is selling NIL rated
“or” fully exempted supply.

Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 123 123

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Application Procedure & Time Limit of refund granted
 The application is to be submitted along with documents to establish
that a refund is due. (100% evidence)
 Documents to establish that amount of tax & interest was collected
from “or” paid by applicant and incidence if tax & interest has not
been passed to other person.
 Certificate issued by CA / CMA if amount of refund is more than ₹
2 lakh
 After receipt of application Proper Officer is satisfied that the whole
amount claimed as refund is refundable. He may make an order 60
days from the date of application and amount so determined shall be
credited to the Consumer Welfare Fund “or” Applicant Account as the
case may be

Cases where refund is not allowed
 Goods exported out of India are subject to Export duty. Example :
Negative goods
 If supplier of goods / services “or” both avails drawback of GST paid
on such supplies

Interest on delayed payments
 If not refunded within 60 days from the date of receipt then interest
@ maximum 6% p.a. shall be payable in respect of such refund
 Where any claim arise from an order passed by Adjudicating Authority
“or” Court etc. and same not refunded within 60 days from the date
of receipt of application then interest @ maximum 9% shall be
payable by the department.

Interest rate (Summary)
 Default in payment of GST = 18% p.a.
 Default in payment of ITC = 24% p.a. Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 124 124

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 Interest in case of refund = 6% p.a. (normal)
 Interest in case of refund = 9% p.a. (appeal case)
 Refund Application = GST RFD-01

AMENDMENTS
1. *Circular No. 135/05/2020-GST [Bunching of refund claim of different FY
- allowed] Now, bunching of refund claims across different Financial Years
has been allowed- i.e., refund claims covering different tax periods falling
in different FYs can now be filed.
2. Refund of ITC No Refund of ITC in respect of those invoices, the details of
which are not available in GSTR-2A. (The benefit of 110% as per Rule
36(4) not to apply for refunds.)

*Circular No. 135/05/2020-GST [Bunching of refund claim of different FY -
allowed] The refund of accumulated ITC shall be restricted to the ITC as per those
invoices, the details of which are uploaded by the supplier in Form GSTR-1 and are
reflected in the Form GSTR-2A of the applicant. Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 125 125

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Chapter-18
Registration Under GST
Summary of Section 22 to 30
Registration Normal Limit = 20 lakh
Except:Special Category States*
*Special Category States as per A-279A = 11
1.Arunachal Pradesh
2.Assam
3.Jammu & Kashmir
4.Manipur
5.Meghalaya
6.Mizoram
7.Nagaland
8.Sikkim
9.Tripura
10. Himachal Pradesh
11.Uttarakhand Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 126 126

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Picture Before Amendment & After Amendment
Names of the States Upto 31
st
Jan 2019 w.e.f. 1
st
Feb, 2019
Manipur, Mizoram, Nagaland,
Tripura
10 Lakh 10 Lakh (may be
enhanced)
AP, Assam, Meghalaya,
Sikkim, HP, UK
10 Lakh 20 Lakh
Other states incl. J&K 20 Lakh 20 Lakh

Notification 10/2019 u/s 23: Exemption from registration

 Supplier of goods : Exemption limit increased to 40 lakh (with certain
conditions)
Except:
1) Person covered u/s 24 (mandatory reg.)
2) Person engaged in the making supply of following goods :
 Ice cream
 Pan masala
 Tobacco Special category States for Section-22
Now: Total 4 States
1.Nagaland
2.Manipur
3.Mizoram
4.Tripura
Registration Limit = 10 lakh Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 127 127

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3) Person engaged in making Intra state supply in the state of Arunachal
Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim,
Telangana, Tripura & Uttarakhand
4) Person who wants to take Voluntary Registration
 Person supplying exempted goods
 An agriculturist to the extent of supply of produce out of cultivation of land
 Other notified person

Final picture after amendment



Nagaland
Manipur
Mizoram
Tripura
Other states
Threshold limit = 10 lakh Threshold limit = 20 lakh
In case of supply of services “or” supply of goods/ services Nagaland
Manipur
Mizoram
Tripura
Other states including J&K,
HP, Assam
Threshold limit = 10 lakh
Supplier of
•Pan masala
•Tobacco
•Ice cream
In case of supply of goods
Sikkim
Uttarakhand
Meghalaya
Arunachal Pradesh
Telangana
Puducherry
Threshold limit = 20 lakh
Supplier of
other goods
Threshold limit =
20 lakh
Threshold limit
= 40 lakh Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 128 128

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
Process / Flow of Registration

Nagaland
Manipur
Mizoram
Tripura
Other states including J&K,
HP, Assam
Threshold limit = 10
lakh in all cases,
whether SOG or SOS
Threshold limit
•Services = 20 lakh
•Goods and Services = 20 lakh
•Goods (PTI) = 20 lakh
•Other goods = 40 lakhs
SikkimUttarakhand
Meghalaya
Arunachal Pradesh
Telangana
Puducherry
Threshold limit =
20 lakh in all cases,
whether SOG or
SOS
Crux of GST Registration threshold limit Mr. Binod
(CS)
Consult for registration
Mr. VG
(client)
Advise to Mr. VG
First check: Person covered u/s 23?
Yes No
No question of registration
irrespective of aggregate TO
Second check: Person covered u/s 24?
Yes No
Mandatory registration u/s 24
(Without any exemption limit)
Third check: person covered under
clause (ii) (iii) (iv) of Sec. 22?
No Yes
Foruth check: person covered
under clause (i) Sec. 22?
Mandatory registration u/s 24
(Without any exemption limit)
Yes No
Registration required Optional/ Voluntary Registration Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 129 129

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Registration number

State
code
PAN Number
entity no. of
same PAN
Alphabet “Z”
Check
sum no.
GSTIN = 15 digits Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 130 130

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Normal taxable person
CASE I
Liable for
registration
Certificate
granted
Effective from date of liable
Summary of Important Points covered under rules 25 to 30
Application GST Reg-01
(time limit 30 days)
Validity = Till cancellation / Lifetime Normal taxable person
CASE 2
Voluntary
registration
application
Certificate
granted
Effective from date of grant of certificate
Validity = Till cancellation / Lifetime CASE 3
(Non Resident taxable person)
A casual taxable person & non resident taxable person shall apply for registration at
least 5 days prior to commencement of business
Validity of Reg. = date/period specified in the application of Reg.
“or”
90 days from the effective date of Reg.,
whichever is earlier Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 131 131

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AMENDMENTS IN REGISTRATION
SECTION 22: (PROVISO INSERTED)
Provided also that the Government may, at the request of a State and on
the recommendations of the Council, enhance the aggregate turnover from
Rs 20 lakhs to such amount not exceeding Rs 40 lakhs in case of supplier
who is engaged exclusively in the supply of goods subject to such conditions
and limitations, as may be notified.
Explanation: For the purposes of this sub-section, a person shall be
considered to be engaged exclusively in the supply of goods even if he is
engaged in exempt supply of services provided by way of extending deposits,
loans or advances in so far as the consideration is represented by way of
interest or discount
NOTE: Sec 22 has been amended by FA, 2019 wherein threshold limit can
be enhanced to 40 lakhs for exclusive supplier of goods via issuance of
notification. But till date no such notification has been issued. Presently,
enhanced threshold is applicable through Sec 23(2) notification only.
AMENDMENT – 2
W.e.f. 1st April, 2020, GST Registration shall be AADHARR BASED [Sec 25
amended to provide for Aadhar based authentication for EXSITING and NEW
REGISTRATION (if applicant not having Aadhar, then as alternative means-
there shall be compulsory physical verify action of principal place of
business) [Sec 25(6A) to (6D) inserted by FA, 2019- w.e.f. 1st Jan, 2020
+ Corresponding notifications issued and effective from 1st April, 2020 +
Consequential amendments in Rule 8 (submission of Reg Application), 9
(verification and grant of registration) and 25 (physical verification of
premises)] Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 132 132

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Amendment – 3 Rule 8 : Application for registration
Rule 8(4A)
Where an applicant, other than a person notified under section 25 (6D), opts for
authentication of Aadhaar number, he shall, while submitting the application
under sub-rule (4), w.e.f. 21st August, 2020, undergo authentication of Aadhaar
number and the date of submission of the application in such cases shall be the
date of authentication of the Aadhaar number, or 15 days from the submission
of the application in Part B of FORM GST REG-01 under sub- rule (4),
whichever is EARLIER .
Amendment – 4 Rule 9 Verification of the application and approval
(1) Examination of application and grant of registration PO who shall
examine the application and the accompanying documents and if the
same are found to be in order, approve the grant of registration to
the applicant within 3 working days from the date of submission of
application.
Provided that, where an applicant, other than a person notified under
section 25 (6D), fails to undergo authentication of Aadhaar number
as specified in rule 8 (4A) or does not opt for authentication of
Aadhaar number, the registration shall be granted only after physical
verification of the place of business in the presence of the said
person, in the manner provided under rule 25:

Provided further that the proper officer may , for reasons to be
recorded in writing and with the approval of an officer not below the
rank of Joint Commissioner, in lieu of the physical verification of
the place of business, carry out the verification of such documents
as he may deem fit. Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 133 133

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Amendment – 5 Rule 9(2) (proviso inserted by N/N 62/2020 – w.e.f. 21st Aug,
2020)
Provided that Where an applicant, other than a person notified under section
25 (6D), fails to undergo authentication of Aadhaar number as specified in
rule 8 (4A) or does not opt for authentication of Aadhaar number, the notice
in FORM GST REG-03 may be issued not later than 21 days from the date of
submission of the application.
Amendment – 6 Rule 9(4) [substituted by N/N 62/2020 – w.e.f. 21st Aug,
2020)
Where no reply is furnished by the applicant in response to the notice issued under sub-rule (2) within the prescribed period or where the proper officer
is not satisfied with the clarification, information or documents furnished,
he shall
may, for reasons to be recorded in writing, reject such application
and inform the applicant electronically in FORM GST REG-05.
Amendment – 7 Rule 9(5) [substituted by N/N 62/2020 – w.e.f. 21st Aug,
2020)
If the PO fails to take any action –
(a) within a period of 3 working days from the date of submission of the
application in cases where a person successfully undergoes
authentication of Aadhaar number or is notified under section 25
(6D); or
(b) within the time period prescribed under the proviso to sub-rule (2),
in cases where a person, other than a person notified under section
25 (6D), fails to undergo authentication of Aadhaar number as
specified in rule 8 (4A); or Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 134 134

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(c) within a period of 21 days from the date of submission of the
application in cases where a person does not opt for authentication
of Aadhaar number ; or
(d) within a period of 7 working days from the date of the receipt of the
clarification, information or documents furnished by the applicant
under sub-rule (2), the application for grant of registration shall be
deemed to have been approved.
Rule 25 : Physical verification of business premises in certain cases [amended
by N/N 62/2020 – w.e.f. 21st Aug, 2020]
Where the proper officer is satisfied that the physical verification of the
place of business of a person is required due to failure of Aadhaar
authentication or due to not opting for Aadhaar Authentication before the
grant of registration, or due to any other reason after the grant of
registration, he may get such verification of the place of business, in the
presence of the said person, done and the verification report along with the
other documents, including photographs , shall be uploaded in FORM GST REG-
30 on the common portal within a period of 15 working days following the
date of such verification.

Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 135 135

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Chapter - 19
Return Under GST
Section 38 of Central Goods & Services Act, 2017 mentions that the details of
inward supplies of goods / services both are required to be furnished by every
registered person , including casual taxable person , but excluding:
a) Input service distributor (ISD)
b) Non-resident taxable person
c) Person paying tax under composition scheme
d) Person effecting TDS
e) Person effecting TCS
f) Supplier of online information & data base access / retrival services
(OIDAR)
 GSTR-2 of any month has to be filed within 11
th
to 15
th
of the following
month.
 GSTR-1 signifies the tax liability while GSTR-2 signifies the ITC availability

Timeline can be summarised as under

Return
form
Particulars Frequency Due date
Who has to
file?
GSTR-1 Details of outward
supply of taxable G/S
affected
Monthly 11
th
of next
month
Normal reg.
person
GSTR-2 Details of inward
supply of taxable G/S
affected claiming ITC
Monthly 15
th
of next
month
Normal RP Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 136 136

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GSTR-3 Monthly return on
the basis of
finalisation of details
of outward & inward
supplies along with
payment of tax
Monthly 20
th
of next
month
Normal RP
GSTR-3B Simple return in
which summary of
outward supply along
with ITC is declared
& payment of tax is
affected by taxpayer
Monthly 20
th
of next
month
Normal RP
GSTR-4 Return for a taxpayer
reg. under comp. Levy
Annually 30
th
April Composition
dealer
GSTR-5 Return for a non-
resident foreign
taxable person
Monthly 20
th
of next
month
“or”
within 7 days
of expiry of
reg. (earlier)
Non-resident
taxable
person
GSTR-5A Monthly return for
OIDAR service
Monthly 20
th
of next
month
OIDAR
GSTR-6 Return for an Input
Service Distributor
Monthly 13
th
of next
month
ISD
GSTR-7 Return for authorities
deducting TDS
Monthly 10
th
of next
month
TDS
deductor
GSTR-8 Details of supply
effected through E-
Monthly 10
th
of next
month
TCS collector Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 137 137

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commerce operator &
the amount of tax
collected
GSTR-9 Annual return for a
normal taxpayer
Annually 31
st
Dec of
next month
Reg. person
other than
ISD, TDS,
Comp.dealer,
TCS & non-
resident
GSTR-9A Annual return for a
taxpayer reg. under
composition levy
anytime during the
year
Annually 31
st
Dec of
next month
Composition
dealer
GSTR-9B Annual return for
ECO
Annually 31
st
Dec of
next month
ECO
GSTR-9C GST reconciliation
statement
Annually 31
st
Dec of
next month
Normal tax
payer having
ATO more
than 2 crore
GSTR-10 Final return Only when
GST reg.
cancelled
or
surrendered
within 3
months of
date of
cancellation

“or”
date of order
of
RP whose
Reg. has
been
cancelled Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 138 138

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cancellation

“Later”
GSTR-11 Details of inward
supply to be
furnished by a person
having UIN &
claiming a refund.
Monthly Law silent Specified
person
allotted UIN

Important points:
 Due dates are subject to changes by notification / orders.
 Filing of GSTR-2 & GSTR-3 has been postponed till further announcement.
 Entities with an annual aggregate turnover of upto 1.5 crores have been
given an option file quarterly GSTR-1 returns.
 Notification no. 32/2018 – central govt. has extended the due date of filing
GSTR-1 for registered person having aggregate turnover of more than ₹ 1.5
crores in the preceeding financial year or the current F.Y for each of the
months from July, 2018 to March, 2019 till the eleventh day of the month
succeeding such month.
 The revised due date of GSTR-9 & GSTR-9A is now 30
th
June 2019 for the
F.Y 2017-18.
 All tax payers filing return GSTR-1 to GSTR-3 are required to file an annual
return. The following are required not to do so –
a) Casual taxable person
b) Non- resident taxable person
c) Input Service Distributor
d) Person affecting TDS / TCS Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 139 139

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Amendment in return under GST

GSTR - 4
Earlier quarterly
Now annually
Amendment –1 Amendment –2
Section 48 + Rule 83 + Rule 83A
GST Practitioner Assessee
Form GST PCT-01
GST Portal
Enrollment GST PCT-02
•Indian citizen
•Sound mind
•No punishment by court
Any one of the following
•CBI officer (retired)
•Sale tax practice of 5 yrs or
more
•B.com, M.com, CS, CA,
CMA final exam cleared
Eligibility Conditions
File
at
Activities which can be undertaken on behalf of Reg. person
Earlier
•Furnish details of inward & outward supply
•Furnish every type of return
•Challan payment
•File refund claim
•Registration application
Now (scope enhanced)•Furnish information for E-Way Bill
•Furnish Job Work challan (GSTR ITC-04)
•File intimation of composition
•File application of enrollment Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 140 140

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ADDITIONAL AMENDMENTS UNDER RETURN:
AMENDMENT - 1
Normal / Regular Supplier
Regular Supplier
Sec 39(1) Normal RP – Monthly return - in prescribed form, manner and
time
Rule 61 – Prescribed Form: GSTR-3B – Prescribed time: Staggered Dates
(20th, 22nd, 24th following end of the month)
AMENDMENT - 2
Composition supplier opting for composition scheme u/Sec 10
Sec 39(2) Composition Supplier – Annual return - in prescribed form,
manner and time.
Rule 62 – Prescribed Form: GSTR-4 – Prescribed time: 30th April
Condition: [Tax shall be paid on quarterly basis (by 18th following end of
quarter) - A statement Form GST CMP-08 (intimation of payment) shall be
submitted] Sec 39(7) – Tax to be paid by due date of filing return FA,
2019 Proviso inserted in Sec 39(7) – It provides that RP opted for paying
tax u/Sec 10 shall be required to pay tax on QUARTERLY BASIS (by 18th of
following month)

Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 141 141

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Amendment 3
Commissioner empowered to extend time limit for furnishing of ANNUAL
RETURN u/Sec 44 [Proviso inserted in Sec 44(1) by FA, 2019 – w.e.f. 1st
April, 2020]
Amendment – 4
Rule 67-A inserted to allow taxpayer facility of filing [GSTR-3B] as well
as [GSTR-1] by SMS – if such return or statement is having Nil Entry
(No entry) for the tax period. Same facility allowed to Composition
Supplier for filing GST CMP-08 (Quarterly tax Payment Statement) [Rule
67-A inserted vide N/N 58/2020-CT – w.e.f. 1st July, 2020 (lastly
amended by N/N 79/2020-CT – w.e.f. 15th Oct, 2020)] Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 142 142

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Chapter - 20
Tax Invoice, Credit & Debit Note

Section 31(1)

Tax Invoice Contains
 Description
 Quantity
 Value of goods
 GST charged In case of “SOG” In case of “SOS”
Section 31(1) Section 31(2)
Issued by registered person under GST
Tax Invoice When supply involves
movement of goods
When supply does not
involve movement of goods
On or before at the time of
removal of goods
On or before at the time of
delivery of goods
Supply of Goods Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 143 143

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 Others as may be prescribed

Section 31(2)

Goods sent on Approval Basis

General Provision Continuous supply of Service
Invoice shall be issued within
the prescribed time limit
from the date of “SOS” (30
days / 45 days)
Supply of Service
Where successive
Statement &
Payment involved
Ascertainable
due date
Not
ascertainable
due date
Payment linked
with completion
event
Before or at the
time of issuance
of statement or
payment, as the
case may be
On or before
the due date
of payment
On or before
the date of
payment
On or before
the date of
completion Before or at the time of
supply (i.e. confirmation)
6 months from the date of
removal
Whichever is earlier
Goods sent on Approval Basis Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 144 144

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Section 31(3) Invoice issued in Special Cases
1.

2.

3. Registered person
Supply of exempted G/S or covered u/s 10

Issue Bill of Supply instead of tax invoice
Liable for registration
Revised invoice within 1 month from the
date of issuance of certificate
Govt. issued registration
certificate less than ₹ 200 ₹ 200 or more
Reg. person may not issue
Tax invoice subject to
condition
Value of Goods or Services
Mandatory to issue Tax
invoice Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 145 145

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4.

5. In case of Advance Payment
Issue a receipt voucher
6. In case of refund
Issue refund voucher
7. In case of RCM u/s 9(3) or 9(4)
Issue payment voucher

Rule 48: Manner of issue of Tax Invoice
1. In case of supply of Goods
Original = Buyer
Duplicate = Transporter
Triplicate = Supplier
2. In case of supply of Services
Original = Recipient
Duplicate = Supplier

less than ₹ 200 ₹ 200 or more
Reg. person may not issue
Bill of Supply subject to
condition
Value of Goods & Service
Mandatory to issue
Bill of Supply Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 146 146

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Rule 55: Delivery Challan
Delivery challan should be issued instead of Invoice. Such situations are as
follows:
 Supply of liquid gas where the quantity at the time of removal is not
known.
 Transportation of goods for job work.
 Transportation of goods for reason other than by way of supply.
 Such other supply as may be notified by Board
Copies of Challan:  Original = Consignee
  Duplicate = Transporter
  Triplicate = Consignor

Concept of Debit Note or Credit Note
Both are issued by Supplier to Receiver.
a) Credit note = Taxable value in the taxable invoice is found to exceed the
taxable value in respect of such supply.
GST charged on TV is found to exceed.
Goods supplied are returned by recipient.
Goods supplied are found to be deficient.
Amendment  Comparison OLD LAW & NEW LAW
Old Law New Law
 One tax invoice

One credit note
Assessee / supplier can issue more
than one credit note for one tax
invoice Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 147 147

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 More than one tax invoice

More than one credit note
Supplier can issue only one credit
note for more than one tax invoice.

b) Debit Note : Supplementary Invoice
Debit note time limit |
 Taxable value in Tax Invoice is found to be less than
Tax Invoice in respect of such supply.
 GST charged in tax invoice is found to be less than
GST payable in respect of such supply.
Amendment: Same as credit note except that credit note will be replaced by
Debit note.

Time limit to issue for Credit Note:
Details of credit note shall be issued till the end of September month following
the end of F.Y in which supply was made. (I.e. 30 Sept. of next year)
Eg. F.Y 17-18 = 30/9/2018

CRUX:
Value/ rate , value increase |= Debit Note.
Value/ rate , value kam h|= Credit Note.

Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 148 148

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Amendments (Read once)
1. CBIC clarification in respect of certain challenges faced by RP in
implementation of provisions of GST law [CBIC Circular 137/ 07/ 2020]
Circular No. 137/07/2020- GST (Clarification i.r.o. certain challenges faced
by RP in implementation of GST provisions)
Supplier of Services
Advance received by Supplier of Services — Documented by ‘Receipt Voucher’
— GST liability paid on advances Subsequent Event–Refund of Advance — to
be documented by ‘Refund Voucher’ — Supplier to claim ‘refund of GST paid’

Issue
An advance is received by a supplier for a service contract which got
cancelled subsequently. The supplier has issued receipt voucher and paid the
GST on such advance received. Whether he can claim refund of tax paid on
advance OR he is required to adjust his tax liability in his Returns?

Clarification
In case GST is paid by the supplier on advances received for an event which
got cancelled subsequently and for which no invoice has been issued in terms
of Section 31(2) of the CGST Act, he is required to issue a “refund voucher”
in terms of Section 31(3) (e) of the CGST Act read with Rule 51 of the
CGST Rules.
 The taxpayer can apply for refund of GST paid on such advances by filing
Form GST RFD-01 under the category “Refund of excess payment of tax” Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 149 149

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Advance received by Supplier of Services — Documented by ‘Receipt
Voucher’— GST liability paid on advances -- Tax invoice also issued before
supply of service
Subsequent Event–Refund of Advance
Option 1 — Supplier to issue Credit Note and claim ‘adjustment of GST paid
in the tax period in which CN is issued and declared in return’ (as per
provisions of Sec 34)
Option 2 — Supplier can opt to claim ‘refund of GST paid’ (as per provisions
of Sec 54)
Issue
An advance is received by a supplier for a service contract which
subsequently got cancelled. The supplier has issued the invoice before supply
of service and paid the GST thereon. Whether he can claim refund of tax
paid OR is he required to adjust his tax liability in his Returns?
Clarification
In case GST is paid by the supplier on advances received for a future event
which got cancelled subsequently and for which invoice is issued before
supply of service, the supplier is required to issue a “Credit Note” in terms of
Section 34 of the CGST Act. He shall declare the details of such Credit
Notes in the Return for the month during which such Credit Note has been
issued. The tax liability shall be adjusted in the Return subject to conditions
of Section 34 of the CGST Act. There is no need to file a separate refund Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 150 150

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claim. However, in cases where there is no output liability against which a
credit note can be adjusted, registered persons may proceed to file a refund
claim under “Excess payment of tax, if any” through Form GST RFD-01.
Supplier of Goods
Goods supplied with tax invoice — GST paid
Subsequent Event–Goods returned by recipient
Option 1 — Supplier to issue Credit Note and claim ‘adjustment of GST paid
in the tax period in which CN is issued and declared in return’ (as per
provisions of Sec 34)
Option 2 — Supplier can opt to claim ‘refund of GST paid’ (as per
provisions of Sec 54)
Issue
Goods supplied by a supplier under cover of a tax invoice are returned by the
recipient. Whether he can claim refund of tax paid OR is he required to
adjust his tax liability in his Returns?
Clarification
In such a case where the goods supplied by a supplier are returned by the
recipient and where tax invoice had been issued, the supplier is required to
issue a “Credit Note” in terms of section 34 of the CGST Act. He shall
declare the details of such Credit Notes in the Return for the month during
which such Credit Note has been issued. The tax liability shall be adjusted in Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 151 151

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the Return subject to conditions of Section 34 of the CGST Act. There is no
need to file a separate refund claim in such a case.
However, in cases where there is no output liability against which a credit
note can be adjusted, registered persons may proceed to file a refund claim
under “Excess payment of tax, if any” through Form GST RFD-01.
Section 31-A: Facility of DIGITAL PAYMENT to recipient
The Government may, on the recommendations of the Council, prescribe a
class of registered persons who shall provide prescribed modes of electronic
payment to the recipient of supply of goods or services or both made by him
and give option to such recipient to make payment accordingly, in such
manner and subject to such conditions and restrictions, as may be prescribed.
Rule 48 (4) : Manner of issuing invoice
The invoice shall be prepared by such class of registered persons as may be
notified by the Government, on the recommendations of the Council, by
including such particulars contained in FORM GST INV-01 after obtaining an
Invoice Reference Number by uploading information contained therein on the
Common GST Electronic Portal in such manner and subject to such conditions
and restrictions as may be specified in the notification.
Provided that the Commissioner may, on the recommendations of the Council,
by notification , exempt a person or a class of registered persons from
issuance of invoice under this sub-rule for a SPECIFIED PERIOD, subject to
such conditions and restrictions as may be specified in the said notification Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 152 152

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Notified RP mandated to do e-invoicing (with effect from 1st Oct, 2020)
[N/N 13/2020-CT (dated 21st march, 2020) (as amended by N/N 61/2020-CT (dated 30th July,
2020) and further amended by N/N 70/2020-CT (dated 30th Sep, 2020)]
whose ATO (in any preceding FY from 2017-18 onwards) > Rs 500 Crores
shall prepare Invoice and other prescribed documents (Debit Note and Credit
Notes) in terms of Rule 48(4) (i.e., Document with QR Code (with
embedded RN) in respect of supply of goods or services or both to a
Registered person (i.e., B2B supply) or for EXPORT
HSN Code mandated for ALL CLASSES OF TAXPAYERS w.e.f. 1st April, 2021
[first proviso to Rule 46 substituted (N/N 79/2020-CT – w.e.f. 15th Oct,
2020) + N/N 78/2020-CT issued thereunder but to be effective from 1st
April, 2021]
The requirement to furnish HSN code in TAX INVOICE has been revised w.e.f.
1-4-2021.
ATO in the preceding FY No. of Digits of HSN Code
Upto Rs 5 crores 4 digits * In respect of supply to
URP (i.e., B2C
Supply): Mention of
HSN code is optional
More than Rs 5 Crores 6 digits
* for both Goods and Services Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 153 153

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Chapter - 21
TDS & TCS
Summary of concept of TDS & TCS
TDS: (Sec-51)

*Specified / notified recipient
 A department of CG / SG
 Local authority
 Govt. agencies
 An authority “or” a board or any other body
o set up by an act of Parliament “or” State
o established by Govt. with 51% or more voting power to carry out any
function.
 Society established under Society Act.
 Public sector undertaking
 Others to be notified Payment contracted where value is more than ₹ 2.5 lakh
Supplier
Specified /Notified Recipient*
Deduct TDS @2% (1% CGST, 1% SGST) Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 154 154

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Three Exceptions (amendment) ( TDS |)
 Ministry of defence
 Public sector undertaking  Public sector undertaking
 Person covered us 51  Person covered u/s 51

TCS (Sec.52)
 Who collect TCS = ECO u/s 9(5)
 Threshold limit = Zero
 Rate = 1% ( 0.5% CGST , 0.5% SGST )
 Form = GSTR-8 ( 10
th
of next month)
 Collected within 10 days
 Details to be filed within 10 days
Amendment:
Commissioner empowered to extend time limit for furnishing of monthly as
well as annual STATEMENT by Tax Collector-ECO u/Sec 52 (Extension for
reasons to be recorded in writing and by issuing extension notification) –
[Provisos inserted in Sec 52(4) and (5) by FA, 2019 – w.e.f. 1st Jan, 2020]

Introduction of UTGST & IGST
UTGST
1. The UTGST Act applicable only on following territory :-

 Andaman & Nicobar
 Lakshadweep Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 155 155

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 Dadra & Nagar Haveli Daman & Diu

 Ladakh
 Daman & Diu
 Chandigarh

 Other territory
2. The Delhi, JAMMU & KASHMIR and Pondicherry are the 3 UT but
this act shall not apply there as they have their own state legislature
and Govt. state GST would be applicable in their case.

3. Other provisions if UTGST same as CGST Act.

IGST
1. GST Council in its 11
th
meeting held on 4/3/17 approved the draw
IGST bill make a provision of Inter-State Supply.
2. CG present the IGST Bill in Lok Sabha on 27/3/2017 & same was
passed by Lok Sabha on 29/3/2017
3. The Rajya Sabha passed the bill on 6/4/2017 & was assented by
President on 12/4/2017
4. Other provisions of IGST Act same as CGST Act subject to some
modifications. Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 156 156

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Chapter - 22
Time of Supply / Point of Supply

‘Supply provide “ ब” ?
What is difference b/w Place of Supply & time of Supply?
Particulars POS/POPS/POPOS TOS/POS
Section Sec. 10 to 13 of IGST Act Sec. 12,13 & 14 of CGST Act
Meaning Supply provide
?
Supply provide ब
?
Decide GST , and
?
अ र GST ब ?

Solution: refer TOS chapter (Sec. 12, 13 & 14) of CGST Act. Sequence: First check “POS”
POS in India POS outside India
POS within
same state
NO GST (because its export)POS outside
state
No question of TOS
CGST + SGST IGST
Next question: GST ? Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 157 157

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Time of Supply
Section 12 Section 14
Supply of goods Change in rate of GST
Section 13
Supply of service
Sections
12(1)
13(1)
12(2)
13(2)
12(3)
13(3)
12(4)
13(4)
12(6)
13(6)
12(5)
13(5)
For POT,
refer
further
provision
General
provision
(POT in
case of
forward
charge)
Reverse
charge
POT in
case of
Vouchers
POT in
case of
interest,
penalty
etc.
Residuary
case Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 158 158

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Section 13(2) : General Provision (forward charge)
Applicability: All services except services covered under RCM

Example :

YES
Check if invoice is issued within time or not?
NO
DOP*
“or”
DOI
Earlier
DOP*“or”DOC
Earlier
Time limit for the issue of invoice
DOP*“or”
DOC Within 30/45 days of whichever is earlier
*Date of Payment (DOP)
Book Entry
“or”
Credited in Bank A/c
Earlier
DOC DOP DOT POT
18/9/2018 Book entry = 17/9/18
Bank Cr. = 20/9/18
25/9/18 17/9/18
25/11/2018 Book entry = 28/11/18
Bank Cr. = 26/11/18
30/11/18 26/11/18
5/1/2019 4/1/19 14/2/19 4/1/19
8/12/2018 10/12/18 5/2/19 8/12/18 Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 159 159

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Concept of Advance Payment

Section 13(3): Time of supply in case of RCM :-

Upto₹ 1,000 More than ₹ 1,000
POT = DOP or DOI at the
option of supplier
Advance Payment
POT = date of
payment Payment received / made
within 60 days from the
date of invoice.
Payment not received /
made within 60 days from
the date of invoice.
POT = Date of payment*
Date of Invoice
POT = 61
st
day from
the date of invoice
*Date of Payment (DOP)
Book Entry
“or”
Bank Debit
Earlier Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 160 160

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Section 13(4): POT in case if Vouchers

Section 13(6): POT in case of Interest, Penalty etc.
POT = When receive such additional condition.
Section 13(5): POT in residuary case

Supply is identifiable Supply is not identifiable
POT = Date of issue of voucher
Vouchers
POT = Date of redemption
of voucher If periodic return filed Other cases
POT = The date on which return is
to be filed
Residuary case
POT = The date on which
tax is paid. Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 161 161

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Section 12: The provision of section 12 is same as section 13 except
Section 12(2) and section 12(3)

Section 12(2): TOS in case of supply of goods (forward charge)
Latest Law (amended Law)

Section 12(3) : TOS in case of supply of goods (RCM)

If supply involves movement
of goods
If supply does not involve
movement of goods
Date of removal Dateof delivery of goods
*Last date
Date of issuance of invoice
Last date* when invoice is
required to be issued
Whichever is later Date of receipt of Goods
“or”
Date of Payment
“or”
31
st
from the date of issue of invoice or any other doc.
Earlier Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 162 162

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Section 14: TOS in case if change in rate of tax
Supply Issue of
invoice
Receipt of
payment
Time of supply
Before Before After Date of issue of invoice
Before After Before Date of receipt of payment
Before After After Date of issue of invoice or date of
receipt of payment, whichever is earlier
After After Before Date of issue of invoice
After Before After Date of receipt of payment
After Before Before Date of issue of invoice or date of
receipt of payment, whichever is earlier
Example: Change in rate of tax = 1/9/2018
Old rate = 18%
New rate = 5%
DOC DOP DOI POT Rate of GST
25/8/18 28/8/18 5/9/18 28/8/18 18%
10/9/18 25/8/18 5/9/18 5/9/18 5%
24/7/18 10/10/18 18/8/18 18/8/18 18%
8/9/18 10/11/18 29/8/18 10/11/18 5%
25/10/18 25/8/18 28/8/18 25/8/18 18%
8/7/18 5/9/18 3/9/18 3/9/18 5%

NOTE: The date of receipt of payment shall be the date of credit in the Bank A/c if
such credit in the bank account is after 4 working days from the date of change in
rate of GST. Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 163 163

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Chapter - 23
Inspection, Search, Seizure & Arrest
(other provisions chapter from book)
Punishment & Fine
 Tax Evasion > 500 lakh
Imprisonment Max. 5 years
+
Fine

 Tax Evasion > 200 lakh & upto 500 lakh
Imprisonment Max. 3 years
+
Fine

 Tax Evasion > 100 lakh & upto 200 lakh
Imprisonment Max. 1 year + fine

 Tax Evasion upto 100 lakh
Imprisonment Max. 6 months (and / or) Fine

Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 164 164

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Form No.
 Inspection = GST INS 01
 Seizure = GST INS 02
 Prohibition = GST INS 03
 Bond = GST INS 04
 Auction = GST INS 05

Amendment
Rule 141(2) amended empowering PO to order disposal of seized goods or
things perishable or hazardous in nature– [Rule 141 (2) amended– w.e.f.
[N/N 16/2020- CT 23rd March, 2020]
Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 165 165

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Chapter - 24
Job Work
Section- 2(68):
Job work means any treatment “or” process undertaken by a person on goods
belonging to another Registered person.

Summary diagram of Job Work
1

1
J/W = Job worker Owner J/W -01
J/W -02
Customer
Customer
Customer
Raw material/ Input / Cap. goods
Return within 1 year* or 3 years*
Supply in
hands of
owner
Not a
Supply
Supply in
hands of
owner
Supply in
hands of
owner
Supply in
hands of
J/W -01
*1 year for Input
*3 years for capital goods
Except: moulds & dies, Jigs &
fixtures or tools Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 166 166

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Important Note:

Note: GST is applicable on the supply of waste & scrap in the hands of
Principal “or” Job worker as the case may be.
Amendment:
Filing of GST ITC-04 (Job-work intimation) – waived off for period (July
2017 to June 2019 Owner Job Worker
Supplier of
Owner
Goods directly sent to
job worker on the
direction of owner
Although sec-16ofCGST Act specifically states
that ITC willbeallowed only when goods are
actually received,but under Job work this this
conditionisExempt&ITC canbeallowedeven
ifinputorCap goods are directly senttothe
Job worker premises without being firstly
receivedtothe placeofbusinessofPrincipal. Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 167 167

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Chapter - 25
Payment of GST
 Section-49 : Payment of GST liability, Interest & Penalty
 Section-50 : Interest on delayed payment
 Section-51 : TDS collection
 Section-52 : TCS collection
Link with Rule: 85, 86, 87
1) Due date of payment is 20
th
of next month.
2) Return cannot be filed without payment of GST
3) No further return without previous
4) Generate payment Challan GST PMT 06
5) Payment mode : E-Credit Ledger
*E-Cash Ledger
*Payment deposit in E-Cash ledger through following mode:
 Net banking  RTGS
 Debit card  NEFT
 Credit card  IMPS etc.
6) Payment over the counter, maximum of ₹ 10,000
7) All the tax payers will get three Electronic ledgers namely
E-liability ledger - Rule 85
E-credit ledger - Rule 86
E-cash ledger - Rule 87Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 168 168

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E-liability ledger
Rule 85
E-cash ledger
Rule 87
•The ELL shall be maintained
in Form GST PMT 01 for each
person liable to pay tax,
interest, penalty, late fees or
any other sum under this
Act.
•ELL contains following
amounts :-
oGST
oInterest
oPenalty
oFees
oEtc.
•For the payment of ELL,
assessee can use ECrL or
ECL, as the case may be
•The ECL shall be maintained
in Form GST PMT 05 for each
person liable to pay tax,
interest, penalty etc.
•ECL can be used for payment
of all types of liability.
E-credit ledger
Rule 86
•The E-CrL shall be
maintained in Form GST PMT
02 for each person who are
eligible for ITC.
•can be used for the payment
of GST liab.
•Cr.L cannot be adjusted with
Interest/ Penalty / Fees etc.
•Balance of ECrL may be C/F
or get refund by assessee, as
the case may be.
E-Ledgers Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 169 169

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Amendments in Payment of GST
Provisions to be followed by RP (submit transfer request in Form GST PMT-
09 form over common portal) [Sec 49(10) & (11) of CGST Act + Rule
87(13) of CGST Rules, 2017] [As inserted by FA, 2019]
Sec 49 (10): A registered person may, on the common portal, transfer any
amount of tax, interest, penalty, fee or any other amount available in the
electronic cash ledger under this Act, to the electronic cash ledger for
integrated tax, central tax, State tax, Union territory tax or cess, in such
form and manner and subject to such conditions and restrictions as may be
prescribed and such transfer shall be deemed to be a refund from the
electronic cash ledger under this Act. [Rule 87 (13) inserted in CGST Rules,
2017]
Rule 87 : Electronic Cash Ledger (13) E-cash ledger: Inter-head adjustment
(major / minor) allowed A registered person may, on the common portal ,
transfer any amount of tax, interest, penalty, fee or any other amount
available in the electronic cash ledger under the Act to the electronic cash
ledger for integrated tax, central tax, State tax or Union territory tax or cess
in FORM GST PMT-09.4
Sec 49 (11) Where any amount has been transferred to the electronic cash
ledger under this Act, the same shall be deemed to be deposited in the said
ledger as provided in sub-section (1).
Section 53A of CGST Act : Transfer of certain amounts Where any amount
has been transferred from the electronic cash ledger under this Act (i.e., Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 170 170

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CGST Act) to the electronic cash ledger under the State GST Act or the
Union territory GST Act, (i.e., SGST Act/ UTGST Act) the Government shall,
transfer to the State tax account or the Union territory tax account, an
amount equal to the amount transferred from the electronic cash ledger, in
such manner and within such time as may be prescribed.
Section 17-A of IGST Act: Transfer of certain amounts where any amount
has been transferred from the electronic cash ledger under this Act (i.e.,
IGST Act) to the electronic cash ledger under the State GST Act or the
Union territory GST Act, (i.e., SGST Act/ UTGST Act) the Government shall,
transfer to the State tax account or the Union territory tax account, an
amount equal to the amount transferred from the electronic cash ledger, in
such manner and within such time as may be prescribed.
Section 50: Interest on DELAYED PAYMENT of tax. Failure to pay (full/
part):
Interest @18% p.a.
(1) Every person who is liable to pay tax in accordance with the provisions of
this Act or the rules made thereunder, but fails to pay the tax or any part
thereof to the Government within the period prescribed*, shall for the period
for which the tax or any part thereof remains unpaid, pay, on his own,
interest at such rate, not exceeding 18% p.a., as may be notified by the
Government on the recommendations of the Council. Notified Rate 18% p.a.
[N/N 13/2017-CT + N/N 6/2017-IT]
Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 171 171

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Computation of Interest
(2) The interest under sub-section (1) shall be calculated, in such manner
as may be prescribed*, from the day succeeding the day on which such tax
was due to be paid.
Belated return and belated tax payment : Interest on NET GST Liability
paid through RCL (and not on gross GST liability)
Provided that the interest on tax payable in respect of supplies made during
a tax period and declared in the return for the said period furnished after the
due date in accordance with the provisions of section 39, except where such
return is furnished after commencement of any proceedings under section 73
or section 74 in respect of the said period, shall be levied on that portion
of the tax that is paid by debiting the electronic cash ledger. Ph: 9643036663 (Only Whatsapp), 7703880232 (Call & Whatsapp) 172 172

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