Table of Contents

Chapter
Chapter Name Page Number
No.
GST
1. Introduction to GST 001-007
2. Supply under GST 008-024
3. Charge of GST 025-043
4. Composition Scheme 044-052
5. Place of supply 053-066
6. Time of Supply 067-076
7. Value of Supply 077-084
8. Input Tax Credit (incl. payment of tax through ITC) 085-105
9. Registration under GST 106-121
10. Documentation under GST (do it in detail from Chart attached at end) 122-127
11. Accounts and Records 128-128
12. Returns under GST 129-134
13. Payment of Tax, TDS, TCS 135-138
14. Exemptions 139-145
Documentation extra pdf 146-149
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RCM GOODS

Sr. No. Tariff Item Description of Goods Specified Supplier Specified Recipient
1 0801 Cashew Nuts, Not shelled or Agriculturist Any registered persons
peeled
2 14049010 Bidi Wrapper Leaves (tendu) Agriculturist Any registered persons
3 2401 Tobacco Leaves Agriculturist Any registered persons
3A 33012400 Following Essential Oils other than Any Unregistered person Any registered persons
33012510 those of citrus food namely: -
33012520 Of Peppermint
33012530 Of other mints: Spearmint oil (ex-
33012540 mentha spicata), Water Mint Oil,
33012590 Horse Mint Oil, Bergamot Oil,
Mentha Arvensis

4 5004 to 5006 Silk Yarn Any person who Any registered persons
manufactures silk Yarn
from Raw silk or silk worm
cocoons for supply of silk
yarn
4A 5201 Raw cotton Agriculturist Any registered persons
5 - Supply of Lottery SG/UT/LA Lottery Distributor or selling
agent
6 Any Chapter Used, Seized vehicles and CG (Excluding Ministry of Any registered persons
confiscated goods, old and used Railways), SG, UT, LA
goods, waste and scrap
7 Any Chapter Priority Sector Lending Certificate Any registered persons Any registered persons

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CONTINUOUS SUPPLY OF SERVICES

"Continuous supply of services" means a supply of services which is provided, or agreed to be

provided,

 continuously or on recurrent basis, under a contract,

 for a period exceeding three months with
 periodic payment obligations

Example: Construction Contracts

If issued within Time limit: -

Date of issue of Tax Invoice or Receipt of payment whichever is earlier

If not issued: -
Date of supply of service or Receipt of payment whichever is earlier

Time limit to issue Tax Invoice [S. 31(5)]

Due date of payment is ascertainable from the contract – on or before such due date.

If not ascertainable – on or before receipt of payment,

Payment linked to completion of event – on or before completion of such event.

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Accounts & Records [Section 35 & 36 r/w Rules 56 - 58] (1/1)
Chapter VIII – Accounts and Records [Sections 35 and 36] of the CGST Act enumerates the accounts and records required to be maintained by a taxpayer and the period
for which such accounts and records are required to be preserved. Assessment in GST is mainly focused on self- assessment by the taxpayers themselves. Every
taxpayer is required to self-assess the taxes payable and furnish a return for each tax period i.e. the period for which return is required to be filed. The compliance
verification is done by the Department through scrutiny of returns, audit and/or investigation. Thus, the compliance verification is to be done through documentary
checks rather than physical controls. This requires certain obligations to be cast on the taxpayer for keeping and maintaining accounts and records.

Where to Maintain? [S. 35(1)] Audit of Books of Accounts (S. 35(5), S. 44(2) of
What to maintain as regards to Books Accounts to be maintained
CGST Act, 2017, R. 80(3) of CGST Rules, 2017
of Accounts – Section 35(1) of CGST by Specific Persons
- Principal place of business & Additional Place of
r/w R. 56) Businesses.
- Unless otherwise proved, documents or any books of Discussed in Returns chapter under caption GSTR - 9
Records as per S. 35 of CGST Act: -
accounts found at any other place other than
1) Input: - Inward Supplies, ITC availed mentioned in certificate of registration are deemed
2) Process: - Production or manufacture to be books of accounts of registered person Departmental Clarifications:
of goods 1) The persons involved in auction
3) Storage – Stock of goods either as a principal or auctioneer
4) Output – Outward Supplies, Output shall declare warehouse or other
Tax Payable. Agents [R. 56(11)] Owner or Operator of Manner of Maintenance (R. 56 & 57) & places as additional place of
Manufacturers [R. 56(12)]
(Input, Process, Storage, Output is the key Warehouses & Transporter Period of Maintenance (S. 36) business in case such places are
to remember the provision) a) Authorisation received by Agent from whether or not registered meant for storage of goods. The
a) Monthly production accounts
each principal to receive or supply under GST. [S. 35(2)] 1) Electronic Form – Authenticated by principal and the auctioneer shall
Records as per R. 56 of CGST Rules, 2017 showing quantitative details of raw
goods or services on behalf of such DSC [R. 56(15)] also maintain the books of
materials or services used in the
principal; 2) Accounts shall be maintained at all accounts in terms of Section 35(1)
1) Import & Export of Goods/ Services manufacture and quantitative a) Transporter to maintain
b) Description, value and quantity Place of Businesses [R. 56(7)] at such places. However, it is
2) Tax paid under reverse charge details of the goods so manufactured records of goods
(wherever applicable) of goods or 3) Not to be erased or overwritten [R. clarified that the books of accounts
mechanism including the waste and by products transported, delivered and
services received or supplied on behalf 56(8)] may be maintained at the principal
3) Advance received & adjusted register. thereof. goods stored in transit by
of every principal; 4) Records may be maintained manually place of business in case of any
4) Commodity wise stock details him, along with GSTIN of
Service Provider to maintain (R. & each volume of BOA maintained difficulties faced in maintaining
(Opening Balance, receipt, issue, goods consignor and consignee
c) Details of accounts furnished to every 56(13)): - Accounts showing manually shall be serially numbered. the books of accounts at such
lost, stolen, destroyed, written off, for each of his branches.
principal; and quantitative details of goods used in 5) Adequate Backup shall be taken for additional place of business upon
given as free samples, etc.) b) Owner or operator of a
the provision of services, details of Electronic records [R. 57] intimating the jurisdictional
5) Details of tax payable (including RCM warehouse or godown shall
d) Tax paid on receipts or on supply of input services utilised and the 6) Audit Trial shall be produced when PO officer in writing.
Liability details), tax collected and paid, maintain books of accounts
goods or services effected on behalf of services supplied. demands [R. 57] 2) If goods are stored in godown of
input tax, input tax credit claimed with respect to the period
every principal. transporter, then the transporter’s
6) Name & address of supplier & for which particular goods
Period of Maintenance (S. 36) godown has to be declared as an
recipient remain in the warehouse,
Works Contractor [R. 56(14)] additional place of business by the
7) Complete address of premises where including the particulars (A) A/cs not a subject Matter of Appeal
Clearing, Forwarding Agent [R. 56(17)] recipient. (Circular No.
goods have been stored relating to dispatch, 72 months from due date of annual
61/35/2018-GST)
8) Register of tax invoice, credit notes,  The name and addresses of the movement, receipt and return to which that accounts &
Maintain true and correct records in 3) The transporter having place of
debit notes, delivery challan issued or persons on whose behalf the works disposal of such goods. records relate.
respect of such goods handled by him on business in more than one State or
received during any tax period. contract is executed; c) Shall store the goods in (B) A/cs subject matter of Appeal or any
behalf of such registered person and shall Union Territory and all such places
 Description, value and quantity such manner that they can proceedings
Composition person not to maintain produce the details thereof as and when of business are registered under
(wherever applicable) of goods or be identified item-wise 72 months from due date of annual
following two details: - required by the proper officer. the provisions of the GST law, shall
services received & utilised for the and owner-wise and shall return
obtain the unique common
1) Commodity wise Stock Details execution of works contract. facilitate any physical Or
enrolment number. Such
2) Tax Details  The details of payment received in verification or inspection by 1 year after final disposal of
enrolment number shall be used
respect of each works contract; the proper officer proceeding
by the transporter for generating
and d) If the owner & operator of whichever is later.
the e-way bills and for undertaking
“Success comes to those who dedicate everything to their passion in  The names and addresses of warehouse & transporter
the transport of goods.
life. To be successful, it is also very important to be humble & never suppliers from whom he received of goods are not registered,
goods or services. they shall obtain a unique
let fame & money travel to your head.” The PO shall determine the amt of tax payable on goods or services that are not
enrollment number by
accounted for, as if such goods / services had been supplied by such person & provisions
applying electronically.
of Sec 73 & 74
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Returns under GST [Section 37 to Section 48] (1/3)

Form No. Description Due Date Form No. Description Due Date
GSTR – 1: Outward Details of Outward supplies, Aggregate Turnover in preceding financial year exceeding GSTR 3B: Summary Return A monthly / quarterly return (subject Within such time, as may be prescribed.
Supplies (including debit notes, credit Rs. 1.5 Crore – 11th of Next Month. for Payment of Taxes to conditions) for every registered Standard date:
notes) made by registered person, other than an input service In case of Monthly 3B: On or before 20th of Next
[S. 37(1) of CGST Act, person Registered persons opting for QRMP scheme: 13th of month [Section 39(1) read with distributor or a non-resident taxable Month.
2017 r/w R. 59(1) of CGST subsequent to the quarter. rule 61 (Monthly 3B) & 61A person or a composition taxpayer, a
Rules, 2017] INCLUDING (Those whose GSTR 1 is quarterly may file IFF for 1st two (Quarterly 3B) of the CGST person deducting tax at source, a In case of Quarterly 3B: On or before 22nd or 24th
months of Quarter in respect of B2B supplies - refer below) Rules] person collecting tax at source, i.e., an of month succeeding quarter for which return is
Monthly / Quarterly Casual Taxable person Below persons shall not be allowed to file GSTR 1 (R. 59 of electronic commerce operator and furnished
CGST Rules) OIDAR service provider located outside
(If a registered person EXCLUDING  A person who has not furnished GSTR 3B for preceding India & providing services to Non- Due date to pay tax -
does not carry out any month or taxable online recipient. Monthly filers: On or before filing of return [S.
activity of outward ISD, NRTP, Composition  A person who has not filed GSTR 3B for preceding 39(7)]
supplies in a particular Person, Tax Deductors, Tax quarter or, QRMP Scheme: As may be prescribed [Proviso 1
month - Nil Return to be Collectors, OIDAR service  Not complied with rule 10A or, to Section 39(7)]
filed which can be filed provider located outside  Who has not replied to notice nor paid diff. tax liability Other Aspects of GSTR 3B:
through SMS) India, providing services to as per rule 88C or,  Nil Returns shall be filed if no taxable supplies are made during the period. [S. 39(8)]
Non-taxable online recipient  Who has not replied to notice nor paid diff. tax liability  GSTR 3B cannot be furnished if GSTR 1 of current tax period is yet to be filed.
as per rule 88D  The maximum time limit within which the rectification of errors/omissions is permissible is earlier of the following
Other Aspects of GSTR 1: dates:
 Consolidated & Inv Wise: Interstate B2C Supplies (i.e., Supplies to unregistered persons) – Invoice wise if invoice - 30th day of November following the end of the financial year to which such details pertain or
value exceeds Rs. 2,50,000/-. B2B Supplies to be shown invoice wise. B2C Intra-state and B2C Inter-state upto 2.5L - Actual date of filing of the relevant annual return
to be shown consolidated. GSTR 4: Annual Return for Composition regd. person is required to file an annual return in Form GSTR-4.
 Time for filing: GSTR 1 cannot be filed before end of tax period except in case of CTP or person whose registration persons registered to pay Due date to file return (Annual)
is being cancelled. tax u/s 10 of CGST Act [GSTR 4]
 Amendments in GSTR 1 & Time limit: Rectification possible till 30th November following the end of the financial Within such time as may be prescribed. [Prescribed time limit: 30th April of Succeeding
year or actual annual return whichever is earlier. [Section 39(2) read with Financial Year]
 Invoice Furnishing Facility (IFF) rule 62 of the CGST Rules] Due date of payment of tax (Quarterly) [GST CMP 08]
- Is a facility provided to quarterly taxpayers who are in QRMP scheme, to file their details of outward supplies in On or before 18th Day of month subsequent to quarte
first two months of the quarter, to pass on the credit to their recipients. It is to be filed upto 13th of Next month  Nil Returns shall be filed if no taxable supplies are made during the period. [S. 39(8)]
for 1st 2 months of quarter. For 3rd month, normal GSTR – 1 to be filed. The details which were furnished in IFF
GSTR 5: Return for Non- A simplified monthly tax return has Due date to file return: -
shall not be filled again, just last month’s data to be filled.
Resident Taxable Persons been prescribed in Form GSTR-5 for a  Within 13 days from the end of the calendar
- Invoice furnishing facility (IFF) is not mandatory, but an optional facility made available to the registered persons
[39(5) read with rule 63 of NRTP for every calendar month or part month or
under the QRMP scheme. At his option, a registered person may choose to furnish the details of outward
the CGST Rules] thereof. The details of outward  Within 7 days after the last day of the period
supplies made during a quarter in Form GSTR-1 only, without using the IFF.
supplies and inward supplies of a NRTP of registration, whichever is earlier.
- No late fee applicable on late filing of IFF, as IFF is neither mandatory nor allowed to be filed after the due date.
are incorporated in GSTR-5.
GSTR 2A: Auto-populated Form GSTR-2A is a system No Due date
GSTR 5A: OIDAR Service provider, Person & 20th of Next Month
Details of Inward supplies generated read only [GSTR – 2B is generated on 14th of Next Month, if a supplier
Online Money Gaming
statement of inward supplies files his GSTR – 1 within due date then it will be reflected
[Section 38 read with for a recipient. This in GSTR 2B of same month, otherwise it will be reflected in GSTR-6 – Return for Input Input Service Distributor (for Due date to file return: -
Rule 60] statement is updated on a next month. However, GSTR 2A is updated on basis of Service Distributor distributing credits) On or before 13th day of the succeeding month
real time basis. invoice month (not return filing cut off date)
 Details in 2A are auto-populated on basis of suppliers’ filing their own GSTR 1. It can be filed between 10th & 13th.
 Details of the integrated tax paid on the import of goods or goods brought in DTA from SEZ unit/developer on a bill
GSTR 7 (Tax Deductors): By 10th of Next Month. Payment of TDS also by same date. A TDS certificate is required to be
of entry are also made available in Form GSTR-2A
issued by deductor (the person who is deducting tax) within 5 days of crediting the amount
 Form GSTR-2B – an auto-drafted read only statement containing the details of eligible ITC - is made available to the
GSTR 8 (Tax Collectors): By 10th of Next Month: 10th of Next Month [Tax collected shall also be paid by such date along
registered person (recipient) for every month. It is a static statement and is available only once a month. Form GSTR-
with return.] The rectification is not allowed after the due date of filing of GSTR-8 by 30th November following the end of
2B consists of all documents filed by suppliers/ISD in their Form GSTR-1, 5 & 6, between the cut-off dates. It also
the financial year
consists of import data for the period which are received within 13th of the succeeding month.
 Details in GSTR – 1: B2B including UIN holders, B2C inter-State supplies where invoice value Rs. 2.5 lakh, Consolidated
GSTR-11 is the return to be filed by the persons who have been issued a Unique Identity Number (A specialized agency
details of other B2C supplies, Zero rated and, Deemed exports, Debit/ Credit notes issued, Nil rated/ Exempted/ Non- of the United Nations Organization), Consulate or Embassy of foreign countries – Due date 28th of the next month in
GST, Amendments for prior period, Advances received/advances adjusted. which inward supply is received by the UIN holders
 Scanned copies of invoices are not required to be uploaded (only details are to be uploaded)
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GSTR - 9 All registered persons are required to file an annual 31 December of the next financial year.
st

(Annual Return) return which may include self-certified Late filing fees: GST PRACTICTIONER
[Sections 44 read with reconciliation except, Casual taxable persons, Non- Upto 5 crores: Lower of 50/day or 0.04%
rule 80 of the CGST resident taxable person, Input service distributors, of T.O.I.S.
Rules] Tax Deductor & Tax Collector, and Person supplying >5 crores – 20 Cr.: Lower of 100/day or Particulars Provision
OIDAR services from outside India to unregistered 0.04% of T.O.I.S. Meaning of A registered person may authorise an approved GSTP to furnish information, on his
persons in India >20 crores: Lower of 200/day or 0.5% of GSTP behalf, to the Government.
T.O.I.S. (T.O.I.S. = Turnover in State) Manner of GSTN provides separate user ID and Password to GSTP to enable him to work on behalf
Filing of annual return in respect of financial year 2022-23 has been exempted for the registered persons whose aggregate Working of his clients without asking for their user ID and passwords.
turnover is upto Rs. 2 crores. Eligibility  They should be a citizen of India
GSTR - 9A A person paying tax under composition scheme is 31st December of the next financial year. Criteria  They should be of sound mind.
(Annual Return for required to file the annual return in Form GSTR-9A.
 They should not be adjudged as an insolvent.
Composition person) (Note: GSTR 4 is filed before finalisation of books of
accounts, whereas GSTR 9A is filed after finalisation
 They should be not be convicted of an offense with imprisonment of two years or
of books of accounts. Both are annual) more.
GSTR - 9C Self-certified (certified by taxpayer) reconciliation 31st December. Activities done A Goods and Services Tax (GST) practitioner can undertake any or all of the following
(Reconciliation statement whose turnover is more than Rs. 5 crore by GST activities on behalf of a registered person:
Statement) Practitioner
 Furnish details of outward supplies (GSTR 1 and GSTR 2)
Form No. Description Due Date
 Furnish monthly, quarterly, annual or final return (GSTR 3b, 4 and GSTR 9)
GSTR - 10 - Final Every registered person who is required to The final return has to be filed within
 Make deposit for credit into the electronic cash ledger;
Return furnish return u/s 39(1) and whose registration 3 months of the:
 File a claim for refund;
has been surrendered or cancelled is required (i) Date of cancellation or
 File an application for amendment or cancellation of registration;
to file a final return (ii) Date of order of cancellation
 Generate e-way bill after furnishing information on the portal;
[Thus, ISD, NRTP, Composition person, tax whichever is later.
 Fill details of challan in GST ITC – 04;
deductor and collector are not required to file
 File an application intimating the tax authorities regarding payment of tax under
final return]
composition scheme or withdrawal from the said scheme.
Section 40: First Return However, it has been provided that a confirmation from registered person is sought
Section 40 When a person becomes liable to registration after his turnover crosses the threshold limit, he may where an application relating to a claim for refund or an application for amendment or
apply for registration within 30 days of so becoming liable. Thus, there might be a time lag between
cancellation of registration has been submitted by the Goods and Services Tax
a person becoming liable to registration and grant of registration certificate. During the intervening
period, such person might have made the outward supplies, i.e. after becoming liable to registration
Practitioner.
but before grant of the certificate of registration.
Section 47: Late Fees for delay in filing returns Quarterly Return Monthly Payment Scheme [QRMP] - Circular No. 143/13/2020- GST
Late fee is applicable for delay in furnishing of return / details of outward supply as per the provision of section 47 of the
CGST Act. 1. Applicability: GSTR 3B can be filed quarterly if turnover of preceding financial year is upto 5 crores.
Delay in filing any of the following by their respective due dates, attracts late fee: 2. If turnover exceeds 5 crore in any quarter, the person shall opt out in next quarter.
(A) Statement of Outward Supplies [Section 37] 3. “OPT IN” for any quarter from 1st day of second month of preceding quarter to the last day of the first
(B) Returns (including returns under QRMP Scheme) [Section 39]
(C) Final Return [Section 45]
month of the quarter.
CGST Late Fees (The below is from June, 2021 onwards / Quarter ending on 30th June, 2021 onwards) (All Ntfns are 4. QRMP Scheme - GSTIN wise not PAN wise
dated 1.06.2021)
Class of persons Late Fees per day Maximum Late fees Notifications
(Subject to per return
Maximum late fee
per return)
Registered person who has Nil GSTR 3B / 1 / Rs. 10 CGST, Rs. 10 Rs. 250 CGST, Rs. 250 19, 20, 21 /2021 - CT
4 SGST SGST
GSTR 3B / 1 /4- Registered person having ATO Rs. 25 CGST Rs. 25 Rs. 1,000 CGST, Rs. 19, 20, 21 /2021-CT
upto 1.5 crores (other than nil returns) SGST 1,000 SGST
GSTR 3B / 1 - Registered person having ATO Rs. 25 CGST Rs. 25 Rs. 2,500 CGST, Rs. 19, 20/2021-CT
> 1.5 crores (other than nil returns) SGST 2,500 SGST
GSTR 7 Rs. 25 each Rs. 1000 each 22/2021-CT

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Payment of Tax, TDS, TCS [Section 49 to 53 r/w Rule 85 – 88, 88A, B, C, D] (1/4)

3. DISALLOWANCE OF ITC IF AVAILED FRAUDULENTLY [R. 86A]

1. Payment of Taxes (GST) can be done through utilising ITC availed or through Cash (Bank).

Officer NOT BELOW THE RANK OF AN ASSISTANT

COMMISSIONER can restrict Utilisation of ITC from E – credit
Payment of Taxes through Input Tax Credit (Section 49B r/w Rule 88A) inserted Payment of Tax through Electronic Cash Ledger [S. 49(1) r/w R. 87]
ledger if it is fraudulent ITC*.
vide CGST Amendment Act, 2018.
Electronic Credit Ledger (ECL) (Rule 86) 1) Any amount paid (by certain modes see point 4) by the taxpayer, TDS, TCS *Fraudulent ITC means: -
claimed will be reflected in the electronic cash ledger.
2) Registered person first utilises its ITC to pay of tax liability, balance liability (a) ITC passed on by person who has not conducted business
Liability to pay tax, interest, Registered person may pay SGST / UTGST can be paid off through cash ledger. from regd. POB
penalty etc. appears in Liability prior to CGST Liability or vice versa Major Heads Minor Heads (b) ITC in respect of which GST not paid by Tax payer
electronic liability register. (any order) IGST Tax (c) ITC availed by person who has not conducted business
Interest, penalty, late fees CGST Interest from Regd. POB
can only be paid through E - SGST / UTGST Penalty
cash ledger (d) No possession of tax invoice or debit note.
Cess Fees & Others
Cash ledger Balance can be transferred from any major head’s minor head to Other points: -
any other major head’s minor head by filing PMT 09 [R. 87(13)]. IGST Cash or 1. If commissioner is satisfied that above conditions does not
IGST LIABILITY CGST LIABILITY SGST / UTGST CGST cash ledger of a distinct person, can be transferred to distinct person. exist then he may allow such debit [R. 86A (2)]
LIABILITY However, no such transfer can be done if liability is outstanding [R. 87(14)].
2. Restriction period – 1 year
3) Interest, Penalty & Late fee can be paid only through E – cash ledger.
IGST IGST IGST CREDIT 4) Challan to be generated online (Manual is not allowed) in PMT 06 which will
CREDIT (1) CREDIT (2) (2) be valid for 15 DAYS: 4. PAYMENT OF INTEREST ON LATE PAYMENT OF TAX [SECTION 50
 Internet banking (authorized banks only) OF CGST ACT]
SGST / UTGST  Credit or debit card (authorized banks only), NEFT, RTGS, UPI, IMPS
CGST CGST
CREDIT (3)
CREDIT (5)  Over-the-counter (OTC) payment (authorized banks only) for DEPOSITS If GST is not paid within due date, then it shall be paid along
CREDIT (4)
UP TO RS. 10,000/- PER CHALLAN and per tax period by cash, cheque or with interest @ 18% from next day after due date till the date
demand draft. [OTC deposit of upto Rs 10,000 shall not apply to govt depts, of payment ON NET CASH LIABILITY
SGST/UTGST PO or any other officer authorized to recover outstanding dues from a person
CREDIT (6) (including recovery through attachment of property), or PO or any other officer
Interest on Availment and utilisation of incorrect ITC
authorized to collect amt by way of cash, cheque or DD during
investigation/enforcement activity/ad hoc deposit] If recipient avails and utilises incorrect ITC, Int shall be levied @
1. CGST & SGST paid in different state is not available as ITC.
5) Person supplying OIDAR services may also make deposit through 18% on incorrect ITC availed and utilised from date of utilisation
2. RCM Liability to be discharge in Cash
international money transfer, from date to be notified by Board) till the date of reversal of ITC.
3. When a person claims refund of UNUTILISED ITC (NOT WITH PAYMENT OF TAX),
electronic credit ledger is debited. 6) Unregistered person has to make payment on the basis of TRN generated
Date of utilisation of ITC would be as below:
RULES FOR PAYMENT OF TAX THROUGH INPUT TAX CREDIT: If Tax is paid through return (3B): Due date to file 3B or actual
About Electronic Liability Ledger [GST PMT – 01]
filing date whichever is earlier.
1. IGST ITC shall be used to discharge IGST liability It is ledger on GST Portal, showing liabilities of taxpayer such as 3B liability,
If Tax is paid through other means (DRC 03): the date of debit in
2. Balance IGST ITC can be used to pay CGST Liability & SGST liability in any proportion. Liability determined by officer.
the electronic credit ledger (PMT 02) when the balance in the
Accordingly, it is to be noted that IGST ITC shall be fully exhausted before utilising
(i) Order of discharge of tax and other dues electronic credit ledger.
any other (C&S) ITC.
As per Section 49(8) of CGST Act, following shall be the order of discharge of (Refer example on last page)
3. CGST ITC cannot be utilised to pay SGST liability & SGST ITC cannot be used to pay
CGST liability. Thus, cross utilisation of ITC is not allowed between CGST & SGST. dues: ANALYSIS OF PROVISO TO SECTION 50 ON NET TAX LIABILITY:
4. In case where, after paying IGST Liability through IGST ITC, IGST liability remains (i) Self-assessed tax and other dues for the past tax period If liability is determined by officer, then interest shall be levied
(ii) Self -assessed tax and other dues for the current period on gross GST.
unpaid, then CGST ITC can be used for paying IGST Liability BUT ONLY AFTER CGST
(iii) Amount payable under section 73 or section 74 [“Other Dues” referred
Liability is paid. Further, if still IGST liability is pending, then SGST ITC can be used for
above mean interest, penalty, fee or any other amount payable]
paying IGST Liability BUT ONLY AFTER SGST Liability is paid.
(ii) What is Debited in Electronic liability ledger?
Imp Notes:  The E-Liability register of a person shall be debited by (a) amt payable
- RCM liability shall be paid only in cash, thus, to be added at the end. towards tax, interest & fees as per return furnished by him, (b) tax, interest,
- ITC shall be added (if eligible) in respect of RCM, in the same month, which can be penalty or late fees determined by PO and (c) amt of interest that may
used to pay output tax liability (FCM) accrue from time to time
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Payment of Tax, TDS, TCS [Section 49 to 53 r/w Rule 85 - 88] (2/4)
Month Opening Eligible Incorrect Total ITC O/P Tax Closing Amount on which Interest is applicable
Rule 88C: Difference in liability reported in statement of outward supplies and that reported in 3B
Balance ITC ITC liability Balance
April - 3,60,000 40,000 4,00,000 3,50,000 50,000 0 [As closing balance is more than If tax payable by supplier shown in GSTR 1 > GSTR 3B, then registered person shall be intimated of such difference
incorrect availment]
by e-mailing, highlighting the said difference and directing him to:
May 50,000 2,50,000 - 3,00,000 2,80,000 20,000 20,000 [Electronic credit ledger
balance i.e., 20,000 falls below  Pay the differential tax liability, along with interest under section 50,
Incorrect ITC 40,000 by Rs. 20,000.  Explain the aforesaid difference in tax payable within a period of 7 days.
Thus, 20,000 is deemed to be utilised]
June 20,000 1,80,000 - 2,00,000 1,95,000 5,000 15,000 The registered person shall, either: -
[Balance incorrect ITC was Rs. 20,000;  Pay the amount of the differential tax liability, along with interest under section 50, or
however, electronic credit ledger
 Furnish a reply electronically incorporating reasons
balance was Rs. 5,000, Thus, interest
would be levied on 15,000]
July 5,000 1,90,000 - 195,000 2,10,000 - 5,000 Where supplier does not pay or does not reply within 7 days then proper officer, can recover in accordance with
[Since credit ledger balance is 0, entire the provisions of section 79 (recovery proceedings)
ITC has been utilised for payment of
tax, thus, balance incorrect ITC would Tax Deduction at Source (S. 51)
be liable to interest]
Issue: In case where IGST credit wrongly availed and utilised & IGST and balance in the electronic credit ledger has fallen
WHO HAS TO DEDUCT TDS?
below the amount of wrongly availed input tax credit of IGST, whether Interest will be levied if IGST, CGST & SGST total
a) A department or establishment of the Central or State Government,
taken together does not falls below the wrong availment and utilisation? - Clarification: Since, IGST ITC can be utilised
b) Local authority,
to pay all the liabilities viz., IGST, CGST & SGST, total credit shall be considered to check whether balance of E – credit
c) Governmental agencies,
ledger has fallen below incorrect availment and utilisation.
d) An authority or a board or any other body, -
 Set up by an Act of Parliament or a State Legislature; or
RULE 86B: Turnover > 50 Lakhs per month - ITC shall be used to the extent of 99% of Gross Output Tax  Established by any Government;
Liability (Subject to conditions) with 51% or more participation by way of equity or control, to carry out any function;
e) Society established by the CG / SG / LA under the Societies Registration Act, 1860
As per rule 86B, if supplier’s turnover in a particular month exceeds Rs. 50 lakh, then atleast 1% liability shall be paid f) public sector undertakings (PSU).
through E – cash ledger. (Exempt supply and zero-rated supply not to be considered for determining 50L) (Thus, when above mentioned persons would be recipients, they will deduct Tax at source as per provisions discussed below)
Example: If rate of Tax on certain product is 18%, & a firm is supplying taxable goods & services amounting to Rs.
60,00,000. The amount of Rs. 10,800 [Rs. 60,00,000 x 18% x 1%] shall be payable in Cash. WHEN TO DEDUCT TDS? [Analysis of Whole provision]
Meaning of liability: RCM liability shall not be taken into consideration over here.  TDS shall be applicable only when contract value exceeds Rs. 2,50,000 (excluding Taxes & Cess)
Exceptions [In below cases, a regd. person can use full Input tax credit for making payment of output tax]:  Supplier shall be registered person (incl. Composition) and the supplies shall be taxable supplies.
(i) The said person or the proprietor or karta or the managing director or any of its two partners, whole-time Directors,  TDS shall be deducted even if individual supplies are upto Rs. 2,50,000; provided contract value exceeds Rs. 2,50,000
Members of Managing Committee of Associations or Board of Trustees, as the case may be, have paid more than  TDS shall be deducted only at the time of payment (incl. Advances) and shall be paid by 10th of subsequent month.
Rs. 1 lakh as Income tax in each of the last two financial years for which the time limit to file return of income has  It shall be noted that only “Taxable” proportion of contract shall be seen for determining applicability. [Example: If a
expired. contract is of Rs. 9,00,000 (excl. GST), out of which Rs. 2,20,000 is taxable supply & 6,80,000 (exempt supply), TDS will
not be applicable]
(ii) Obtained refund of Unutilised Input Tax Credit > 1 Lakh for export of goods or services or supply to SEZ
(iii) Cumulative Payment in Cash > 1% applied cumulatively: Every month (including current month) supplier shall check RATE OF TDS: 1% CGST, 1% SGST (In case of IGST 2%)
[Liability discharged in cash divide by total liability]. If it is more than 1%, then no need to pay GST in cash in
WHEN NOT TO DEDUCT?
current month.
 When LOS = POS which is other than LOR, then not to be deducted. (whenever LOR is other than POS then not to be
(iv) The registered person is Government Department; or a Public Sector Undertaking; or a local authority; or a
deducted)
statutory body.
 Further if supplier and recipient both are from (a) to (f) then not to deduct.
IMP TERMS: Other Points:
1. Common Portal Identification Number (CPIN) – 14 DIGIT  Late payment attracts interest @ 18% p.a. from due date of payment till the date of actual payment.
2. CIN or Challan Identification Number –18 digits number (14 digits CPIN + 4 digits Bank Code).  Supplier would be able to see the tax deducted in his cash ledger, meaning thereby he can use the said amount to pay
Upon successful credit to authorized bank A/c, a Challan Identification No is generated and on the basis of this CIN, E-cash is his liabilities. TDS certificate is required to be issued by deductor (form GSTR – 7A) (the person who is deducting tax)
credited. in prescribed form to the deductee (the supplier from whose payment TDS is deducted).
3. Bank Reference Number (BRN)  Tax Deductor has to obtain compulsory registration u/s 24 of CGST Act & return to be filed in Form GSTR 7
4. E – FPB (Authorised bank branches to collect GST, For NEFT/RTGS Transactions, RBI will act as E-FPB.) 136
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Payment of Tax, TDS, TCS [Section 49 to 53 r/w Rule 85 - 88] (3/4)
6. TAX COLLECTION AT SOURCE [SECTION 52]
Rule 88D: New Rule Inserted to deal with difference in ITC reflecting in GSTR 2B & Claimed in
Tax Collection at Source (S. 52 of CGST Act) GSTR 3B

Are you an E – commerce operator? If ITC availed by recipient in GSTR 3B > GSTR 2B in excess of notified %, then registered person shall
be intimated of such difference by e-mailing, highlighting the said difference and directing him to:
Yes

Whether Supplier makes taxable supplies  Pay the differential tax liability, along with interest under section 50,
through ECO [other than 9(5) of CGST / 5(5)  Explain the aforesaid difference in tax payable within a period of 7 days.

Yes The registered person shall, either: -

Whether Consideration is collected by ECO?  Pay the amount of the differential tax liability, along with interest under section 50, or
 Furnish a reply electronically incorporating reasons
Yes
LIABLE TO COLLECT TCS @ 1% of NET Value of Taxable Where supplier does not pay or does not reply within 7 days then proper officer, can determine the
supplies made during the relevant month. (0.5% CGST, liability as per section 73 or 74 as the case may be.
0.5% SGST/UTGST; 1% IGST)

Notes & interlinking of various chapters: - Clarification on TCS liability under Sec 52 of the CGST Act, 2017 in case of multiple E-commerce
Operators in one transaction. [Circular No. 194/06/2023-GST dtd. 17th July, 2023]
1) A registered person has to claim TDS & TCS in order to appear in his E-cash ledger. No automatic
updation is available currently. This circular discusses the liability to collect TCS in cases where there is involvement of more than one
2) Net Value of taxable supplies = Total Supplies (-) Returns E-commerce operator. Government launched ONDC Network is a classic example of aggregators of E –
3) TCS to be deposited upto 10th of next month commerce operators. ONDC is an app through which you can compare pricing of a certain product
4) E – statement in GSTR - 8 to be filed upto 10th of Next month instantly on different ECO. For example, you want to buy watch you can check the comparative current
5) Annual statement by 31/12 of succeeding financial year (Not yet notified) pricing of watch together on Amazon, Flipkart, Watch suppliers’ website etc. The said circular clarifies
6) Time-limit to rectify mistake in monthly statement – TCS liability aspects. Below example would help in explaining the provision much better:
 30TH November of succeeding financial year or,
 Actual date of furnishing Annual statement
Whichever is earlier
7) An officer not below the rank of Deputy Commissioner can issue notice to an operator, asking him to
furnish details relating to volume of the goods/services supplied, stock of goods lying in
warehouses/Godowns etc. The operator is required to furnish such details within 15 working days. In
case an operator fails to furnish the information, besides being liable for penal action under section 122,
it shall also be liable for penalty up to Rs. 25,000.
8) ECO liable to collect TCS are compulsory liable to be registered (S.24 of CGST Act)
9) Person supplying goods (not fulfilling conditions) & services (other than 9(5)) of value > Rs. 10L/20L are
liable to be compulsorily regd. (S. 24 of CGST)
10) TCS is not collected on Services provided by ECO u/s 9(5) of CGST Act.
In this case, ONDC collects payment through buyer and remits it to Watch seller, thus, ONDC shall be liable to
deduct TCS.

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Payment of Tax, TDS, TCS [Section 49 to 53 r/w Rule 85 - 88] (4/4)

Case III: [Excess IGST ITC distributed Unequally] Case IV: [Excess IGST ITC distributed Unequally]
Case I: [Excess IGST ITC distributed Equally]
Particulars IGST CGST SGST Particulars IGST CGST SGST
Particulars IGST CGST SGST
Output Tax Liability 1,80,000 75,000 75,000 Output Tax Liability 1,80,000 75,000 75,000
Output Tax Liability 1,80,000 75,000 75,000
Input Tax Credit 2,10,000 62,500 82,500 Input Tax Credit 2,10,000 70,000 70,000
Input Tax Credit 2,00,000 62,500 62,500
RCM liability = Rs. 2,500 CGST & 2,500 SGST (ITC is eligible)
Solution: - Solution: -
Solution: -
Particulars IGST CGST SGST Particulars IGST CGST SGST
Particulars IGST CGST SGST
Output Tax Liability 1,80,000 75,000 75,000 Output Tax Liability 1,80,000 75,000 75,000
Output Tax Liability 1,80,000 75,000 75,000
Input Tax Credit Input Tax Credit
Input Tax Credit
IGST ITC (WN) (1,80,000) (25,000) (5,000) IGST ITC (WN) (1,80,000) (15,000) (15,000)
IGST ITC (1,80,000) (10,000) (10,000)
CGST ITC (50,000) CGST ITC (incl. RCM) (60,000)
CGST ITC - (62,500)
SGST ITC (70,000) SGST ITC (incl. RCM) (60,000)
SGST ITC - (62,500)
Net Liability 0 0 0 Net Liability 0 0 0
Net Liability - 2,500 2,500
Balance c/f 0 12,500 12,500 RCM Liability 2,500 2,500
Notes: -
(62,500-50,000) (82,500-70,000) Balance c/f 0 12,500 12,500
 IGST ITC of Rs. 2,00,000 will be first utilised to pay IGST Liability (to the extent WN to Distribute ITC: - (70- (70-
required), here we require only Rs. 1,80,000/- 60+2.5) 60+2.5)
Particulars CGST SGST RCM liability is to be discharged in cash; therefore, it will be
 Balance IGST ITC will be utilised in equal proportion to pay CGST SGST liability, thus, 62,500 82,500
Rs. 10,000 of IGST ITC would be allocated to pay CGST Liability & Rs. 10,000 of IGST added in net liability and ITC.
Balancing Figure [IGST ITC of 20,000 from Rs. *20,000
ITC would be allocated to pay SGST Liability. 180,000 shall be first given to pay CGST liability
 Net liability of Rs. 2,500 CGST & 2,500 SGST shall be paid in Cash 62,500 82,500
Case II: [Short IGST ITC] Balance IGST ITC (shall be distributed equally) 5,000 5,000
Total IGST Distribution 25,000 5,000
Particulars IGST CGST SGST Steps:
Output Tax Liability 1,80,000 75,000 75,000
Input Tax Credit 1,60,000 95,000 95,000 - First write down CGST & SGST ITC balances
- Write higher total on both the sides
Solution: - - Write balancing figure on shorter side (represents the amount of IGST to be
distributed to pay particular liability)
Particulars IGST CGST SGST - Then once equated it can be distributed equally
Output Tax Liability 1,80,000 75,000 75,000
Input Tax Credit Notes: -
IGST ITC (1,60,000) - -  IGST ITC of Rs. 2,10,000 will be first utilised to pay IGST Liability (to the extent
CGST ITC (20,000) (75,000) required), here we require only Rs. 1,80,000/-
SGST ITC - (75,000)
 Balance IGST ITC (Rs. 30,000) will be utilised in proportion (as determined above)
Net Liability - - -
to pay CGST & SGST liability.
Balance c/f - - 20,000
 Net liability is 0
Notes: -

 IGST ITC of Rs. 1,60,000 will be first utilised to pay IGST Liability. Thus, fully it shall
be utilised.
 Balance IGST ITC shall be utilised to pay CGST SGST liability. However, in this case,
excess IGST ITC is not there, thus no CGST & SGST liability can be paid.
 IGST liability can be paid through CGST Credit, however, only after CGST liability ITC
is paid. Accordingly, Rs. 75000 (CGST credit) shall be used to pay CGST liability
balance 20,000 would be used to pay IGST liability.
 It is to be noted that in next month SGST balance would be higher than that of CGST
Balance by Rs. 20,000/-

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Exemptions [Section 11 r/w NN 12/2017 - CTR] (1/7)
Before learning exemptions under GST following points must be noted: - 3. AGRICULTURE SECTOR
1. CHARITABLE INSTITUTIONS
1) The person supplying exempt supplies will have to reverse ITC in accordance with Meaning of Agriculture produce: Agriculture Produce
In order to avail the benefit of exemption for Charitable Trusts it has to satisfy two conditions:
section 17 of CGST Act, 2017. means any produce out of cultivation of plants and rearing
-
2) Zero rated supplies are not exempt supplies thus ITC can be availed. of all life forms of animals, except the rearing of horses, for
3) Even though exempt supplies are exported, registered person can still claim refund of  It should be registered under Section 12AA or 12AB of Income Tax Act. food, fibre, fuel, raw material or other similar products, on
taxes paid on manufacture / procurement of such exempt supplies.  It should provide charitable activities which either no further processing is done or such
4) As per section 2(47) of CGST Act, 2017 “exempt supply” means supply of any goods or MEANING OF CHARITABLE ACTIVITY: processing is done as is usually done by a cultivator or
services or both which attracts nil rate of tax (e.g., fruits & vegetables) or which may be  Care or counselling of terminally ill person, HIV AIDS, narcotics drugs or alcohol; or producer which does not alter its essential characteristics
wholly exempt from tax under section 11 (to be learnt in this chapter), or under section public awareness of preventive health, family planning but makes it marketable for primary market.
6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply (e.g.,  Advancement of educational programmes or skill development (Abandoned, In respect of Agriculture Sector following are exempt:
orphaned or homeless children etc.)  Operations on agriculture produce such as cultivation,
petrol);
 Advancement of religion, spirituality or yoga;
5) If notification exemption is issued under CGST Act, the registered person can avail the Harvesting, Threshing, Testing of Agriculture Produce,
 Preservation of environment including watershed, forests and wildlife;
benefit of same in SGST / UTGST Act also, however vice – versa is not possible. Also, Loading / unloading, supply of farm labor, tending,
OTHER EXEMPTIONS RELATED TO THIS SECTOR:
notification issued under IGST Act will only be relevant for inter-state supply purposes  Training or coaching in recreational Exempt pruning, cutting, which do not alter essential
only not for CGST / SGST purposes. activities such as arts, culture provided by characteristics for primary market are exempt.
6) Any person engaged exclusively in the business of supplying goods or services or both INDIVIDUAL including charitable entities  Renting / Leasing of Agro-machinery or Vacant Land,
that are not liable to tax or wholly exempt from tax under this Act or under the is exempt. Services by APMC
Integrated Goods and Services Tax Act is not liable to take registration under GST Act.  Training or coaching in recreational Exempt  Agriculture extension services
7) Section 31(3)(c) of the CGST Act provides that a registered person supplying exempt activity in sports is exempt when provided  Pisciculture, sericulture, floriculture
goods or services or both or paying tax under the provisions of section 10 of CGST Act by CHARITABLE ENTITY REGD UNDER  Whole gram pulse is agriculture produce but not normal
(composition) & presumptive levy shall issue, instead of a tax invoice, a bill of supply. 12AA/12AB pulse (like dal)
8) For supplying exempt goods E-way bill is not required to be generated.  Camps where the fee charged includes Exempt Other Important Points
cost of lodging and boarding where 1) Rubber, green tea leaves, coffee is exempt (processed
principal activity is charitable activity. coffee is taxable)
(Circular 66/40/2018-GST dated 26-09-
WAY AHEAD FOR THIS CHAPTER
2) Lease of vacant land with storage shed meant for
2018)
agriculture produce are exempt (for other purposes
 Hostel Accommodation for students Taxable
EXEMPTIONS taxable)
1. Charitable Entity (Circular 32/06/2018-GST dated 12-02-
2018) 3) Processed products of Black Tea, Green Tea, White Tea,
2. Religious Institution
 Import of Services (other than OIDAR) Exempt Jaggery are taxable. However, whole grain pulse is
3. Agriculture Sector
 Old age home run by 12AA/AB where Exempt exempt
4. Government Services
5. Healthcare Services consideration is up to Rs. 25,000/- per (If more than Rs. 25,000/- entire would 4) Pre-conditioning, pre-cooling, ripening, waxing, retail
6. Education Sector month per member to its residents aged be taxable) packing, labelling of fruits and vegetables which do not
7. Banking & Financial Sector 60 or more change or alter the essential characteristics of the said
8. Construction Industry fruits or vegetables are exempt
9. Goods Transportation 2. RELIGIOUS INSTITUTIONS [E. 13] 5) Services provided by the National Centre for Cold Chain
10. Passenger Transportation
Development under Ministry of Agriculture,
11. Legal Services
Sr. No. Category Taxable/Exempt Cooperation and Farmer’s Welfare by way of cold chain
12. Life Insurance
13. General Insurance 1 Conduct of religious ceremonies 100% of supplies made in knowledge dissemination are exempt.
14. Leasing Services Religious ceremonies are life-cycle rituals including this nature is exempt 6) Cleaning of wheat outside farm, Sales commission for
special religious poojas conducted in terms of religious
15. Artist Services wheat – exempt
texts by a person so authorized by such religious texts.
16. Admission to various events Occasions like birth, marriage and death involve elaborate 7) Milling of paddy into rice is taxable.
17. Services by Unincorporated Body / NPO / RWA religious ceremonies. 8) Loading, unloading, packing, storage, or warehousing of
18. Miscellaneous Exemptions 2 Room rent Taxable if Rs. 1000 or agriculture produce including rice are exempt.
19. Indepth Interlinking of Import of Services more per day 9) Artificial insemination of livestock (other than horses)
20. IGST Exemptions
3 Renting of premises, community halls, Kalyan Taxable if Rs. 10,000 or are exempt.
mandapam or open area etc. more per day 10) Testing activities in relation to agriculture produce such
4 Charges for renting of shops or commercial Taxable if Rs. 10,000 or
"Just when the caterpillar thought the world was spaces. more per month
as soil testing, animal feed testing etc. are exempt.
11) Services by way of storage or warehousing of cereals,
ending, he turned into a butterfly." pulses, fruits, and vegetables are exempt
139
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Exemptions [Section 11 r/w NN 12/2017 - CTR] (2/7)

4. GOVERNMENT SERVICES 5. HEALTHCARE SERVICES

SERVICES PROVIDED BY GOVERNMENT

Health care services by a Services provided by
(i) (ii) (iii) clinical establishment, an way of transportation
authorized medical of a patient in an
a) Services by the Department of posts & Renting of immovable Services other than (i) & (ii) practitioner, or para-medics. ambulance.
Ministry of railways (Indian Railways) property (Recognized system –
b) Services in relation to an aircraft or a Allopathy, Yoga, Naturopathy,
TO TO
vessel, Ayurveda, Homeopathy,
c) Transport of goods or passengers. Siddha, Unani) – Reiki &
Acupressure Taxable
Business Others (E.g., Others (E.g.,
Entity Individuals) Individuals)
TO
1) Room rent charged from in-patients in hospital is
exempt if charges per day is upto Rs. 5,000/-.
Business
Business entity Registered BE Exempt Exempt However, room rent charged from attendants is fully
Others Unregd. BE Entity
whether or not eligible taxable. Further, the room rent charges are fully
for exemption from
exempt irrespective of value if the room rented is
registration in PFY
ICU/ICCU/NICU/PICU.
Taxable - FCM BE located in the taxable territory Unregd.
Taxable - RCM Taxable - FCM 2) GST is not applicable on consultancy by doctor.
having ATO* more than such BE
amount in PFY as it becomes 3) Treatment of Food Supplied by Hospitals:
ineligible for exemption from i) Food Supplied directly by Hospital to in-patients as
Taxable - FCM Exempt
registration under GST. advised by doctor – Exempt. (Food Supplied to
Attendant of Patient is taxable)
*ATO – Aggregate Turnover Taxable - RCM ii) Supply of Food is outsourced by hospital to another
agency – Agency will charge GST & Hospital will not
Important Points for Services provided TO CG/SG/UT/LA.: - get ITC (as providing exempt supplies)
Important Points for Services provided BY CG/SG/UT/LA.: - 1) Pure services (labor contracts) or; Composite supplies where 4) GST will not be levied on Retention money. E.g. If
1) Services of other than (i) above provided by CG/SG/UT/LA to CG/SG/UT/LA are exempt. value of goods is not more than 25% of Total value, in relation hospital charges Rs. 10,000/- from patient and pays Rs.
2) For the purpose of services referred in (ii) & (iii) above, provided by CG/SG/UT/LA where Gross to any function entrusted to a Panchayat under Article 243G 7500/- to doctors & keeps Rs. 2500/- with them for
consideration does not exceed Rs. 5,000 are exempt. or Article 243W ancillary expenses, Rs. 2500 will also be exempt.
3) Services by CG/SG/UT/LA by way of guaranteeing loan taken by their undertakings or PSUs from banking 2) Services by Govt. entity to CG/SG/UT/LA in form of grants 5) Ambulance services by NHM – Exempt
companies & financial institutions are exempt. 3) Services to CG/SG/UT by way of sale of food grains, kerosene, 6) Services by recognised rehabilitation professionals
4) Services by CG/SG/UT/LA for testing/calibration/safety check or certification relating to protection or sugar, edible oil, etc. under Public Distribution System against are exempt
safety of workers & consumers are exempt. consideration in the form of commission or margin 7) Veterinary services are exempt.
5) Issuance of passport, visa, driving license, birth certificate or death certificate are exempt 4) Services provided to the CG/SG/UT under any insurance 8) Services provided as IVF (In vitro fertilisation) or ART
6) Services provided way of tolerating non-performance of a contract entered into by the CG/SG/UT/LA scheme for which total premium is paid by CG/SG/UT (Assisted Reproductive Technology) are healthcare
where payments received by CG/SG/UT/LA by way of fines, penalty etc. for tolerating non-performance 5) Services provided to CG/SG/UT Administration where 75% or services, thus exempt.
of contract are exempt. more of expenditure is borne by them
7) Excess Royalty Collection Contractor is a person to whom govt authorized to collect royalty on their behalf are exempt
from mining lease holder. Mining leaseholders are liable to GST under RCM on such services. ERCC & Govt 6) Sanitation & Conservancy services are procured by Indian
enters into contract wherein ERCC is required to collect the amount as per agreement entered. Army or any other Government Ministry/Department which Services provided to a Governmental Authority by way of
Accordingly, services supplied by a State Government to Excess Royalty Collection Contractor (ERCC) by does not perform any functions listed in the 11th and 12th water supply; public health; sanitation conservancy; solid
way of assigning the right to collect royalty on behalf of the State Government on the mineral dispatched Schedule, in the manner as a local authority does for the waste management; and slum improvement and
by the mining lease holders are exempt. This exemption is restricted to amount of GST paid by mining general public, they are taxable upgradation are exempt.
7) Accommodation services provided by Air Force Mess and
lease holder and ERCC shall be liable to pay GST on difference between GST exempted & GST paid by
mining lease holders if GST paid by mining lease holder is less than amount of GST exempted. other similar messes, to their personnel or any person other
than a business entity are exempt. 140
CA INTER/CMA INTER By CA Keval Mota
Exemptions [Section 11 r/w NN 12/2017 - CTR] (3/7)
6. EDUCATION SECTOR [E. 66] 6. EDUCATION SECTOR [E. 66] [Continued] TAXABILITY OF COURSES OFFERED BY IIM (INDIAN INSTITUTE OF MGT):

Educational institution means an institution providing services by way of: - Other Important Points: - W.e.f. 31st January, 2018 onwards, all long duration programs (one year
(i) pre-school education and education up to higher secondary school or equivalent; 1) Education as a part of curriculum for obtaining qualification recognized under any law or more) conferring degree/ diploma as recommended by Board of
(ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the in India is exempt (E.g. Pursuing CA) Governors as per the power vested in them under the IIM Act, 2017
time being in force; 2) Services provided by Boarding Schools along with residence & food is exempt as pre- including one- year Post Graduate Programs for Executives are exempt
(iii) education as a part of an approved vocational education course. from GST
dominant supply is of education.
An approved vocational education course means,
Trainings by NCVT & SCVT in designated trade: -
3) Service of giving motor vehicle on hire for transportation of students, faculty & staff to
All short duration executive development programs or need based
a) Course run by an Industrial training institute/Industrial training centre affiliated to the educational institution of pre-school to HSC – Exempt.
specially designed programs (less than one year) which are not a
National Council for Vocational Training (NCVT) or State Council for Vocational Training 4) Placement services provided to educational institutions are taxable.
qualification recognized by law are taxable under GST
(SCVT) offering courses in designated trades notified under the Apprentices Act, 1961 or 5) Catering services provided by educational institutions is exempt. However, if provided
b) A Modular Employable Skill Course, approved by the NCVT. by third party to educational institutional providing pre-school to HSC education then
c) As per Clarifications issued by CBIC any authority, board or body set up by the CG, SG, its exempt, otherwise it would be taxable.
including National Testing Agency for conduct of entrance examination for admission to
(7) Banking & Financial Sector
6) Services by ITI (Industrial Training Institutes) including private ITI: -
educational institutions shall be treated as educational institution.

Circular 55/29/2018-GST dated 9th August, 2018 1) Services by RBI are taxable. (TO RBI are also Taxable).
Educational Services exemption we will learn in 2 parts as below Sr. No. Category Exemption / Note: - Services to RBI by members of overseeing committee, GST will
Taxable be paid by RBI under RCM. (Refer RCM Chapter)
(A) Provided BY Educational Institutions (OUTPUT SERVICES) 1 Vocational training provided by private ITls in designated Exempt
trades (as per apprentice act e.g. Barber/Hair 2) Services by way of—
Cutter/Dresser, CAD-CAM Operator-cum-Programmer, (a) extending deposits, loans or advances in so far as the
Chemical Laboratory Assistant)
consideration is represented by way of interest or discount (other
2 Vocational training provided by private ITls in other than Taxable
than interest involved in credit card services);
designated trades.
To its students, faculty By way of conduct of entrance (b) inter se sale or purchase of foreign currency amongst banks or
3 Service, provided by a private Industrial Training Institute Exempt
& staff are exempt examination against consideration in authorized dealers of foreign exchange or amongst banks and such
for conduct of examination against entrance fees [Sl. No.
the form of entrance fee are exempt 66 of notification No. 12/2017-CT(Rate)] dealers are exempt.
7) Foreign courses by private institutes are taxable, education for non-recognized
qualification is taxable. 3) Services provided by international finance corporation & Asian
(B) Provided TO Educational Institutions (INPUT SERVICES) 8) Maritime Institutes are educational institutions under GST Law and the courses development bank are exempt.
conducted by them are exempt from levy of GST.
9) Issuance of migration certificate to the leaving or ex-students – Exempt 4) GST shall not be charged on charges charged by bank of payment of
upto Rs. 2,000/- made by any person through debit / credit card /
TCS: 5) Online Summary of Taxability of Input & Output Supplies RuPay / BHIM UPI. The said exemption is to encourage online
4) Services
education Services Pre- Education as Coaching NCVT/SCVT transaction for small amounts made by credit card, debit card, charge
1) Transportation of students,
relating to
journal & school to qualification Centre card or other payment card service. (Sl. 34)
faculty, and staff*; admission to, or
periodical HSC under law
2) Catering, including any mid-day conduct of INPUT SERVICES AVAILED BY (Other than pre- 5) Services by an intermediary of financial services located in a multi
meals scheme sponsored by examination by, THESE INSTITUTIONS school to HSC) services SEZ with International Financial Services Centre (IFSC) status
CG/SG/UT. such institution. Transportation of students, Exempt Taxable Taxable Taxable
to a customer located outside India for international financial
3) Security or cleaning or house- faculty and staff
keeping services performed in Always Exempt Catering, including any mid- Exempt Taxable Taxable Taxable services in currencies other than Indian rupees (INR) are exempt.
such educational institution; day meals scheme sponsored
by CG/SG/UT (OUTDOOR 6) Services by the following persons in respective capacities are exempt–
CATERING) (a) business facilitator (BF) or a business correspondent (BC) to a
Security, cleaning house Exempt Taxable Taxable Taxable
banking company with respect to accounts in its rural area branch;
keeping
Printing of papers content Exempt Exempt Taxable Exempt
(urban area branches covered under RCM)
Pre-school to HSC & Others (b) any person as an intermediary to a business facilitator or a
supplied by institutions,
Pre-school Others Education as Honorarium, rental business
to HSC* vocational course Honorarium to paper setter Exempt Exempt Taxable Exempt correspondent with respect to services mentioned in entry (a); or
Online education journal Taxable Exempt Taxable Taxable (c) business facilitator or a business correspondent to an insurance
Exempt OUTPUT SUPPLIES PROVIDED
company in a rural area.
Taxable BY THESE INSTITUTIONS
Exempt Taxable Any Services (including Exempt Exempt Taxable Exempt
catering whether or not
inhouse)
*The supply of services, by way giving on hire the motor vehicle to a person who is providing services Uniforms (Goods) Taxable Taxable Taxable Taxable
to educational institution providing pre-school to HSC education, are exempt. [E. 22(c)] Entrance fees for conduct of Exempt Exempt Taxable Exempt Your circumstances reflect what you have been thinking about
exams 141
CA INTER/CMA INTER By CA Keval Mota
Exemptions [Section 11 r/w NN 12/2017 - CTR] (4/7)
8. CONSTRUCTION INDUSTRY 9. GOODS TRANSPORT SECTOR 10. PASSENGER TRANSPORT SECTOR

1) Pure labour contracts of construction, or any work of a civil structure or any Exemption on Transportation of specific goods & Value exemption:
other original works pertaining to the beneficiary-led individual house  Agricultural produce;
construction or enhancement under the Housing for All (Urban) Mission or  Transportation by rail or a vessel or by GTA of relief materials meant for Roadways Railways Waterways
Pradhan Mantri Awas Yojana are exempt. victims of natural or man-made disasters, calamities, accidents or mishap;
2) Services by way of erection or construction of original works pertaining to single defence or military equipment; newspaper or magazines registered with Bus
residential unit otherwise as a part of a residential complex; the Registrar of Newspapers; or materials; agricultural produce; milk, salt Inland Waterways
Stage Carriage – Indian Railways
: - Exempt
Residential complex means any complex comprising of a building or buildings, and food grain including flours, pulses and rice; and organic manure. Non-AC – Exempt
having more than one single residential unit.  Transportation of railway equipment or materials by rail or vessel is (Note 4 below), AC 1st Class, AC
Vessel: -
3) Transfer of Development Rights / FSI / Lease Land for construction of taxable – Taxable Coaches – Taxable
residential apartments: -  Services by way of granting National Permit to a goods carriage to operate 2nd Class & Sleeper
Pre-dominantly for
Contract Carriage Class - Exempt
Exemption is available to in respect of transfer of development rights, FSI made through-out India/ contiguous States (E. 61A) tourism purpose –
–
after 1-4-2019 or upfront amount for long term lease paid after 1-4-2019 to the are exempt. Taxable
Non-AC for tourism Metro, Monorail,
extent of residential apartments by promoter, when sale is made by promoter Exemption on Mode of Transportation of Goods
– Taxable,
Other purpose –
Tramway - Exempt
during construction (i.e. consideration received before completion certificate or Exempt
Non-AC for others
first occupation w.es. earlier) – Exempt (Note 4
Road Rail Inland below)
Amount of Exemption on: -
Waterways AC- Taxable Airways
TDR & FSI for Construction of residential properties OR Long-Term Lease (LTL) Fully
GTA- & Courier Others Taxable
(>30 years) for construction of residential apartments Exempt Meter cab, Auto, Motor
Agency – Exempt If passenger embarks or
Cab – Exempt (Read
Taxable terminates IN ECONOMY
note 4)
CLASS in state of
Radio Taxi – Taxable,
Arunachal Pradesh,
GST Payable on Carpet Area of Residential Apt Air/Vessel Rope way – Taxable
X Assam, Manipur,
TDR / FSI or for Meghalaya, Mizoram,
LTL Total Carpet Area of Residential Apt + Sikkim, Tripura, Nagaland,
Commercial Apt. Bagdogra – Exempt
O/S India to Custom Custom Station to Custom Station Others – Taxable
Further, promoter will be liable to pay GST under RCM on un-booked flats as on date of CC Stn in India other custom in India to Place
or first occupation whichever is earlier as per below formula: Station in India O/S India Other Important Points: -
1) Services provided by a tour operator to a foreign tourist in relation to a
GST Exempted as Carpet Area of Residential Apt which Air- Vessel – Fully
tour conducted wholly outside India.
per above remain un-booked on date of CC or first Exempt Air & Vessel both 2) Services provided by a tour operator to foreign tourist which is
Exempt Taxable
occupation Taxable performed partly in India and partly outside India is exempt to the
formula on X
TDR/FSI or for extent of the value of the tour operator service which is performed
Total Carpet Area of Residential Apt
LTL Construction Supply through pipelines or conduit are fully taxable outside India. (Refer last page)
to the extent of Other Important Points: - 3) Example of Contract Carriage, if a bus is operating between Mumbai &
residential apts. 1) GST on supply of services associated with transit cargo to Nepal and Delhi, it must pick up all its passengers before leaving Mumbai & must
Bhutan are exempt. In this regard, it is clarified that exemption under Entry drop all its passengers at Delhi & not have any stops in between.
9B covers services associated with transit cargo both to and from Nepal 4) Stage Carriage can be understood as a MV adapted to carry more than
In simple words, the exemption is to the extent of residential apartments booked
and Bhutan. 6 passengers (excluding driver) at separate fares for individual
before CC or first occupation whichever is earlier.
2) GST is not leviable on private ferry used for passenger transportation. It is depending on length of journey.
Location charges or preferential location charges (PLC) collected in addition to the further clarified that, the expression ‘public transport’ used in the 5) The services would not be exempt if they are provided through an
lease premium for long term lease of land are also exempt. exemption notification only means that the transport should be open to electronic commerce operator and notified under section 9(5) of CGST
public. Only exclusion is on transportation which is predominantly for Act. (Please refer Section 9(5) wherein few service providers are notified
tourism, such as services which may combine with transportation, in this regard)
sightseeing, food and beverages, music, accommodation such as in shikara,
cruise etc. "Whenever you see a successful person, you only see the public glories,
never the private sacrifices to reach them." 142
CA INTER/CMA INTER By CA Keval Mota
Exemptions [Section 11 r/w NN 12/2017 - CTR] (5/7)

11. Legal Service by 16. ADMISSION TO VARIOUS EVENTS

13. LIFE INSURANCE BUSINESS

(i) Services by way of admission to a museum, national park,

 Services of life insurance business provided by way of annuity under the National
Arbitral Partnership firm of advocates or an Senior Advocate wildlife sanctuary, tiger reserve or zoo.
Pension System regulated by Pension Fund Regulatory and Development Authority
Tribunal individual as an advocate (other (ii) Services by way of admission to a protected monument so
of India (PFRDA) under the Pension Fund Regulatory and Development Authority
than senior advocate) declared under the Ancient Monuments and Archaeological
To Act, 2013 (23 of 2013);
To Sites and Remains Act 1958 or any other law for time being in
To  Life Insurance to members of army, navy, Airforce, under group insurance scheme
force.
of CG are exempt.
(iii) Services by way of right to admission to, -
 Any person other than a business entity; or  W.e.f. 1st October, 2019, Services of life insurance provided or agreed to be
 A business entity with an aggregate turnover upto such an amount in  Circus, dance, or theatrical performance including
provided by the Central Armed Police Forces (under Ministry of Home Affairs)
preceding FY as makes it eligible for exemption from registration under CGST drama or ballet;
Group Insurance Funds to their members under the Group Insurance Schemes of
Act, 2017 (hereinafter “Small Business entities”)  Award function, concert, pageant, musical performance
the concerned Central Armed Police Force are exempt
 CG/SG/UT/LA, Governmental Authority, Government Company. or any sporting event other than a recognized sporting
 Coastal Guards under Naval Group Insurance Funds are also exempt.
event;
 Life Insurance scheme under various schemes: - (only imp covered)
ARE EXEMPT.  recognised sporting event & planetarium
(i) Janashree Bima Yojna
where the consideration for admission in not more than Rs.
(ii) Life – Micro insurance product approved by IRDA having MAXIMUM cover of
Senior Advocate providing services to partnership firm of advocates or 500 per person are exempt.
Individual advocate – Taxable under Reverse charge mechanism. Rs. 2,00,000/- are exempt
(iii) PM Jeevan Bima Yojana
Partnership firm of advocates or an individual as an advocate (other than senior (iv) PM Jan Dhan Yojana & Vaya Vandan Yojna are exempt
advocate) providing legal services to an advocate or Partnership firm of advocates are exempt.
– Exempt

14. LEASING SERVICES

Service recipient Supplier - Senior Supplier - Individual
Lease Long term (> 30 years) – Charges payable as upfront amount is exempt if it is
Advocate advocate or Partnership
 Provided by SG Industrial Development or entity having ownership >20% of
firm of advocates (Other
than Senior Advocate) CG/SG/UT and,
 Provided to Industrial units or developers in any industrial / financial business
Other than B.E. Exempt Exempt Note: - Even if upfront amount is paid in instalment, it is exempt provided it is
B.E. having turnover of less than Exempt Exempt determined.
threshold in PFY (registered in CY)
CG, SG, UT, LA, Govt. Authority, Govt. Exempt Exempt 15. ARTIST SERVICES
company
Individual advocate or Partnership Taxable, FCM Exempt
firm of advocates or senior advocate Services by an artist by way of a performance in folk or classical art forms of Music, or
B.E. having turnover more than Taxable, RCM Taxable, RCM Dance, Theatre, if the consideration charged for such performance is upto Rs.
threshold in PFY (registered in CY) 1,50,000/- are exempt. This exemption shall not apply to service provided by such "Try not to become a person of success, but
artist as a brand ambassador. rather try to become a person of value."
12. GENERAL INSURANCE BUSINESS (ONLY IMP COVERED)

 Hutt / Cattle Insurance

 Insurance for Tribals
 PM Fasal Bima Yojna
 PM Suraksha Bima Yojna
 Nirmaya Health Insurance Scheme
 w.e.f. 1st October, 2019; Bangla Shasya Bima (Entry 35)
are exempt. Note: - Re-insurance of above is also exempt.

143
CA INTER/CMA INTER By CA Keval Mota
17. SERVICES BY UNINCORPORATED BODY OR NOT FOR PROFIT 18. MISCELLANEOUS EXEMPTIONS (ONLY IMP) 1) ANALYSING CONCEPT OF ERC CONTRACTOR

ORGANISATION It is pertinent to note that there are two considerations flowing from miner to state govt. viz.
1. Services provided to a recognised sports body by (a) an individual as a Dead (fix) Rent at periodic interval & Royalty to State Government. Dead Rent is pre-
determined amount, royalty % is determined on suitable basis such as % of sales by miner etc.
(i) Service by an unincorporated body or a non- profit entity registered player, referee, umpire, coach or team manager for participation in a
under any law for the time being in force, to its own members by way of sporting event organised by a recognized sports body; (b) another Excess Royalty Collection Contract” means a contract for specified mineral(s) and area given
recognised sports body is exempt. to collect royalty in excess of annual dead rent, on behalf of the Government from the holder
reimbursement of charges or share of contribution – of mining lease (s) under the contract whereunder the contractor shall pay a fixed amount
2. Royalty & License Fees included in transaction value u/r 10(1)(c) of Customs annually to the Government as per terms of the contract.
 As a trade union; Valuation Rules is exempt.
 For the provision of carrying out any activity which is exempt from the 3. GTA Services to recipient registered only for the purpose of deduction of TDS Example if ONGC Limited has obtained license from Maharashtra State Government.
levy of GST; Maharashtra State Govt. agrees to receive dead rent of Rs. 5,00,000/- per annum. Further,
is exempt. they agree that royalty shall 10% of Sales value for first 3 years i.e. contract period.
 Up to an amount of Rs. 7,500/- per month per member for sourcing of 4. Services by sponsorship of event organised by National Sports Federation, Maharashtra SG appoints Mr. Kumar as a person to collect revenue for this contract.
goods or services from a third person for the common use of its Indian Sport Council for Deaf, Paralympic, Indian Olympic Association etc. are Maharashtra State assigns right to collect royalty from ABC Ltd to Mr. Kumar for Rs. 85,00,000.
members in a housing society or a residential complex. exempt Thus, Mr. Kumar is treated as ERCC. Determine Taxability in below cases
Legal position on taxability of maintenance charges collected by RWA 5. Services by National Skill development corporation / sector skill council in i) ONGC Ltd. was able to sell 8,30,00,000 of mineral
(Circular No.109/28/2019- GST dated 22nd July, 2019) relation to recognised skill development program is exempt. ii) ONGC Ltd. was able to sell 5,50,00,000 of mineral
Particulars Case I Case II Case III Case IV 6. Transfer of business as a going concern is exempt Let us understand taxability of above example as per Entry 65B & Notification 13/2017 – CTR.

Annual Turnover More than More than Less than Less than 7. Services by way of renting of residential dwelling to any person other than Case (i) ONGC Ltd. was able to sell 8,30,00,000 of mineral
Rs. 20L/- Rs. 20L/- or equal to or equal to registered person for use as residence is exempt
Rs. 20L/- Rs. 20L/- 8. Services by a hotel, inn, guest house, club or campsite etc. for residential or  Tax Impact on Miner – ONGC
Thus, ONGC is liable to pay GST under reverse charge as per entry no. 4 of Notification
lodging purposes are taxable
Charges per More than Less than or More than Less than 13/2017 – CTR
month per Rs. 7,500/- equal to Rs. Rs. 7,500/- or equal to
9. Services by way of giving on hire to Amount on which reverse charge is to be discharged: -
member for each 7,500 Rs. 7,500  To a state transport undertaking, a motor vehicle meant to carry > 12
residential passengers; a) Fixed Rentals: - Rs. 5,00,000 x 3 years = 15,00,000
apartment  To a GTA, a means of transportation of goods; or b) Royalty: - 8,30,00,000 x 10% = 83,00,000
Totalling to Rs. 98,00,000 x 18% = 17,64,000
 Motor vehicle for transport of students, faculty and staff, to a person
Taxability Taxable Exempt Exempt Exempt (Please note that Tax has to be discharged in accordance with Time of Supply provisions)
providing services of transportation of students, faculty and staff to an
Notes Entire NA NA NA educational institution providing services by way of pre-school education  Tax Impact on ERCC Contractor i.e. Mr. Kumar
amount is and education upto higher secondary school or equivalent, As per Entry No. 65B Mr. Kumar will get an exemption of Rs. 85,00,000. Since total tax is
taxable not  To a local authority, an Electrically operated vehicle meant to carry more paid by ONGC Ltd. on amount exceeding 85,00,000/-. ERCC will not be liable to pay tax.
just in
than twelve passengers; to a goods transport agency, a means of
excess of Case (ii) ONGC Ltd. was able to sell 5,50,00,000 of mineral
Rs. 7,500/- transportation of goods.  Tax Impact on Miner – ONGC
 are exempt. Thus, ONGC is liable to pay GST under reverse charge as per entry no. 4 of Notification
ITC on Inputs / Input Services & Capital Goods [Renting of trucks and other freight vehicles with driver for a period of time 13/2017 – CTR
is a service of renting of transport vehicles is not eligible for exemption under Amount on which reverse charge is to be discharged: -
 RWAs are entitled to take ITC of GST paid by them on capital goods a) Fixed Rentals: - Rs. 5,00,000 x 3 years = 15,00,000
(generators, water pumps, lawn furniture etc.), goods (taps, pipes, notification 12/2017 – CTR.] b) Royalty: - 5,50,00,000 x 10% = 55,00,000
other sanitary/hardware fillings etc.) and input services such as repair 10. Service by way of access to a road or a bridge on payment of toll charges or
and maintenance services provided: - Additional toll / fees collected from non-fastag vehicle is exempt Totalling to Rs. 70,00,000 x 18% = 12,60,000/-
11. Transmission or distribution of electricity by an electricity transmission or (Please note that Tax has to be discharged in accordance with Time of Supply provisions)
 Amount charged by RWA is more than Rs. 7,500/- per month per
member & RWA is registered under GST (i.e. annual turnover is more distribution utility – exempt.
 Tax Impact on ERCC Contractor i.e., Mr. Kumar
than Rs. 20 Lakhs). 12. Services provided by an incubatee up to a total turnover of Rs. 50 Lakhs in a As per Entry No. 65B Mr. Kumar will get an exemption of Rs. 85,00,000 when he will pay
 Further, it is important to note that if charges per member are less financial year subject to the following conditions, namely: - this amount to SG (at first instance). However, since ONGC Ltd. discharged tax on Rs.
- the total turnover had not exceeded Rs. 50 lakhs during the preceding 70,00,000/-, ERCC Contractor has to pay GST on shortfall of Rs. 15,00,000 [85,00,000
than or equal to Rs. 7,500/- and RWA is registered under GST, RWA
financial year; (-)70,00,000].
shall be liable to reverse ITC as per Section 17 of CGST Act)
- and a period of three years has not elapsed from the date of entering into
2) Liquidated Damages: -
an agreement as an incubatee are exempt (a) Fines / Penalties or liquidated damages payable to Government
13. Services by way of public conveniences such as provision of facilities of As per entry 62 of NN 12/2017 – CTR Fines / Penalties or liquidated damages payable to
bathroom, washrooms, lavatories, urinal or toilets are exempt. Government or Local Authority are Exempted, therefore, NO GST IS CHARGED NOR EVEN
PAYABLE ON RCM BASIS.
14. Service provided by (FIFA) and its subsidiaries directly or indirectly related to
any of the events under FIFA U-17 Women's World Cup 2020 to be hosted in (b) Fines / Penalties or liquidated damages payable by Government
Work to become a resourceful person, make yourself a treasure of India is exempt However, as per Circular 178/10/2022, Liquidated damages will not be “supply.”
knowledge. Do not work only for money, it shall be a by-product. Live 15. Services by way of right to admission to the events organised under FIFA U-
a life with a purpose, otherwise you will be alive without liveliness - 17 Women's World Cup 2020 whenever rescheduled are exempt.
CA Keval Mota 16. Satellite launch services are exempt 144
CA INTER/CMA INTER By CA Keval Mota
SERVICES TO FOREIGN TOURIST WHERE TOUR IS PERFORMED PARTLY IN India AND OUTSIDE India
[ENTRY 52A]

Tour operator service, which is performed partly in India and partly outside India, supplied by a tour operator
to a foreign tourist, to the extent of the value of the tour operator service which is performed outside India are
exempt.

However, value of the tour operator service performed outside India shall be such proportion of the total
consideration charged for the entire tour which is equal to the proportion which the number of days for which
the tour is performed outside India has to the total number of days comprising the tour, or 50% of the total
consideration charged for the entire tour, whichever is less.

Further that in making the above calculations, any duration of time equal to or exceeding 12 hours shall be
considered as one full day and any duration of time less than 12 hours shall be taken as half a day.

Explanation. - “foreign tourist” means a person not normally resident in India, who enters India for a stay of
not more than six months for legitimate non-immigrant purposes.

Illustrations:

(a) A tour operator provides a tour operator service to a foreign tourist as follows: - (a) 3 days in India, 2 days
in Nepal; Consideration Charged for the entire tour: Rs.1,00,000/- Exemption: Rs.40,000/- (=Rs.1,00,000 x
2/5) or, Rs.50,000/- (= 50% of Rs.1, 00, 000/-) whichever is less, i.e., Rs.40, 000/-(i.e., Taxable value: Rs.60,
000/-);
(b) 2 days in India, 3 nights in Nepal; Consideration Charged for the entire tour: Rs.1,00,000/- Exemption:
Rs.60,000(=Rs.1, 00, 000/- x 3/5) or, Rs.50,000/- (= 50% of Rs.1,00,000/-) whichever is less, i.e., Rs.50,
000/- (i.e., Taxable value: Rs.50, 000/-);
(c) 2.5 days in India, 3 days in Nepal; Consideration charged for the entire tour: Rs.1,00,000/- Exemption:
Rs.54,545 (=Rs.1,00,000/- x 3/5.5) or, Rs.50,000/- (= 50% of Rs.1,00,000/-) whichever is less, i.e.,
Rs.50,000/-(i.e., Taxable value: Rs.50, 000/-).

145
 CA. Keval Mota is a member of the Ins tute of Chartered
Accountants of India (ICAI) based out of Mumbai, India. He is a GST
enthusiast and an excellent orator. He has vast experience in
teaching Indirect Taxes to the Students of the ICAI, ICMAI, ICSI.

In his career, along with teaching he has addressed various seminars

for corporate en es and has independently carried out SAP
implementa on and Impact Analysis in 2016 for large corpora ons
during the incep on of GST Law in the Indian economy. Due to his
forte in Indirect Taxa on, he has also worked for Interna onal
Indirect Tax Implementa on on UAE VAT at Dubai & Abu Dhabi in
January, 2018.

He is a regular contributor of insigh ul ar cles on professional

website "TaxGuru.in" and has good number of published ar cles to his credit. His exper se lies in
cri cally analysing the concepts, transac on advisory and consul ng including li ga on and
representa on services for taxpayers including Giant Corporates and Mul -na onal Companies.

He has also been a speaker at WIRC for GST and has delivered many lectures on various topics of
GST for students and professionals. The Author is also a speaker on GST burning issues and regular
amendments in law at All India Federa on of Tax Prac oners associa on. He is the Author of the
book named "GST Concept Book", which is very exhaus ve and covers all the provisions of GST
with prac cal approach, interlinking and In-depth analysis.

He has handicra ed GST Charts which he very strongly believes that "Anyone can definitely clear
toughest of the paper of Indirect Taxes, with the help of his Charts which gives 100% coverage with
analysis of all the provisions”

He has deliberated in-depth revision lectures on his YouTube Channel on GST, Customs & FTP
which covers en re syllabus in 60 odd hours.
Further, he has also recorded audios for all the chapters which in turn works as saviour for Indirect
Taxes on last day of exams as well as for quicker revision and refreshing concepts.

Whatsapp: +91-9820460260