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1. Define GST.
A GST is a single tax on the supply of goods and services, right from the manufacturer to
the consumer. It is an indirect tax which has replaced many indirect taxes in India such as
the excise duty, VAT, services tax, etc. The Goods and Service Tax Act was passed in the
Parliament on 29th March 2017 and came into effect on 1st July 2017.

2. Give the meaning of goods.

Goods are tangible items sold to customers, those are items that satisfy human wants and
provide utility, while services are tasks performed for the benefit of the recipients.
Examples of goods are automobiles, appliances, and clothing.

3. Define services.
The term 'services' has been defined under Section 2(88) of the Model CGST/SGST Act,
as under: “services'' means anything other than goods; Explanation: Services include
intangible property and actionable claim but does not include money.”

4. Define Revenue Neutral Rate.

Revenue neutral rate (RNR) is a structure of different rates established in order to match
the current revenue generation with revenue under GST. RNR calculation has to include
the cascading effect on certain goods having no excise or sales tax implications.
In other words- the Revenue Neutral Rate is a rate of GST at which the amount of
taxes currently collected by the government and the amount expected to be collected
after GST remains the same.

5. What is a non-taxable supply?

“Non-taxable supply” means a supply of goods or services or both which is not leviable to
tax under the CGST Act or under the IGST Act. A transaction must be a „supply‟ as
defined under the GST law to qualify as a non-taxable supply under the GST.

6. Who is the supplier?

A supplier is a person or business that provides a product or service to another entity. The
role of a supplier in a business is to provide high-quality products from a manufacturer at a
good price to a distributor or retailer for resale.

7. What is open market value?

Open market value of a supply of goods or services or both means the full value in money,
(excluding GST & cess) where the supplier and the recipient of the supply are not related
and price is the sole consideration, to obtain such supply at the same time when the supply
being valued is made.

8. Define Recipient.
Section 2(93) of the CGST Act 2017, defines: Recipient is defined based on whether a
„Consideration‟ is payable or otherwise. When a consideration is payable for the supply of
goods or services, as is the case in hand, the person who is liable to pay that consideration

Prepared By – Asst. Prof.- M. D. Bidari | GST

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is the „Recipient‟ of such „Supply‟. The Statute is clear and unambiguous in defining the
„Recipient‟ when a consideration is payable.

9. State the difference between debit note & credit note ?

Debit Note is a document which reflects that a debit is made to the other party's
account.
Credit Note is an instrument used to inform that the other party's account is credited in
his books.
Thus the distinction between a credit note and a debit note is that credit notes report
money owed to a customer due to a downward revision of an invoice, while debit notes
record money owed to you due to an upward revision in an invoice.

10. What is supplementary tax invoice ?

A supplementary tax invoice is an invoice that a taxable person issues if any deficiency is
found in a tax invoice already issued by the said taxable person. It is also known as a debit
note. It is used to rectify the problems related to the original tax invoice under GST.

11. What is tax invoice ?

Tax Invoice: Every registered taxable person under GST supplying Goods or services is
required to issue a tax invoice for all supplies effected. The word “Every registered
Taxable person” clearly specifies that issuing Tax Invoice is compulsory under GST law.
However, government may notify some other document for certain category of services.
Eg. Bus ticket, Bank Voucher etc.

12. What is bill of supply ?

A Bill of Supply is a document issued by GST Registered Businesses in place of a Tax
Invoice. It is used by Composition Vendors and businesses dealing with Exempted Goods.

13. What is refund under GST ?

GST refund is a process in which, registered taxpayers can claim excess amount if they
paid more than the GST liability. They can claim after submitting a refund application with
the necessary details in the GST portal.

14. State the documents required for refund on account of export of goods.
Shipping Bill and EGM details.

15. What is electronic credit ledger ?

'Electronic Credit Ledger' reflects the amount of eligible input tax credit claimed by the
registered person via GST returns i.e. Form GSTR-3B or auto-populated return Form
GSTR-2B.

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16. Mention the modes of payment in GST ?

E-Payment (Internet Banking, Credit Card, Debit Card); Real Time Gross Settlement
(RTGS)/ National Electronic Fund Transfer (NEFT); Over the Counter Payment in
branches of Banks Authorized to accept deposit of GST.

17. What is aggregate turnover ?

“Aggregate Turnover” means value of all taxable supply (excluding the value of inward
supply on which tax is payable by a person on reverse charge basis), exempt supply, export
of goods or services or both and interstate supply of persons having the same permanent
account number, to be computed on all India basis but excludes central tax, state tax,
union territory tax, integrated tax & cess

18. What is threshold limit of exemption ?

Less than Rs. 40 lakhs and Rs. Less than 20 lakhs for businesses in some special category
states

19. What is the threshold limit for GST registration?

More than Rs. 40 lakhs (Rs. 20 lakhs for businesses in some special category states) are
required to register for GST.

20. Who is an exempted supplier?

A person who is supply of any goods or services or both which attracts nil rate of tax or
which may be wholly exempt from tax under section 11, or under section 6 of the
Integrated Goods and Services Tax Act, and includes non-taxable supply.

21. What is interstate supply ?

Interstate supply is where the goods or services provider is in a different state or Union
Territory, and the place of supply is in a different state or Union Territory.

22. State any two types of registration.

i. Compulsory Registration
ii. Voluntary Registration

23. Define supply.

Supply should be of goods or services. · Supply should be taxable. · Supply should be made
by a taxable person. · Supply should be made within a taxable territory.

24. What is mixed supply ?

A mixed supply is two or more independent products or services which are offered
together as a bundle but can also be sold separately. In a mixed supply, the item or service
with the highest GST rate is treated as the principal supply

25. Define Agriculturist.

As in farmer. a person who cultivates the land and grows crops on it agriculturists who
adhere to the organization's standards of organic farming.

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26. Define the value of supply.

Section15(1): Value of supply shall be the Transactional Value which is the price actually
paid or payable for the supply of goods or services

27. What do you mean by transaction value?

Transaction value refers to the price actually paid or payable for the supply of goods and
or services where the supplier and the recipient are not related and price is the sole
consideration for the supply.

28. Define exempted supply.

“Exempt supply” means supply of any goods or services or both which attracts nil rate of
tax or which may be wholly exempt from tax under section 11.

29. What is returns ?

A document that will contain all the details of your sales, purchases, tax collected on sales
(output tax), and tax paid on purchases (input tax).

30. What is refund under GST ?

GST refund is a process in which, registered taxpayers can claim excess amount if they
paid more than the GST liability. They can claim after submitting a refund application with
the necessary details in the GST portal.

31. Who is distinct person?

Distinct persons are persons with different GSTINs belong to one legal entity (single
PAN) situated within the same State or in two different States or in a different country.

32. Give two examples of actionable claims.

i. An amount due under a policy of insurance
ii. An amount due under letter of credit

33. Who is a casual taxable person ?

A person who supplies taxable goods or services occasionally in a taxable territory where
he does not have a fixed place of business.

34. Mention two items excluded in GST.

Fresh fruits, Fresh milk,

35. Give the meaning of Registration.

GST Registration of a business with the tax authorities implies obtaining a unique, 15-digit
Goods and Service Tax Identification Number (GSTIN) from the GST authorities so that
all the operations of and the data relating to the business can be collected and correlated.

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36. What do you mean by cascading effects ?

“cascading tax effect” means a tax on tax. It is a situation wherein a consumer has to bear
the load of tax on tax and inflationary prices as a result of it.

37. What is value of supply ?

Value of supply is ascertained by the transaction value, which is defined as the price
paid or payable for the transaction when the supplier and the recipient are unrelated.
The price is the sole consideration of supply.

38. What is Input Tax Credit?

Input tax credit is the credit manufacturers received for paying input taxes towards
inputs used in the manufacture of products. Similarly, a dealer is entitled to input tax
credit if he has purchased goods for resale. All dealers are liable for output tax on
taxable sales done in the process of his business. With the help of input tax credit, he can
offset the output tax against the input tax already paid. Input tax credit is not applicable
on all types of inputs. Each state has its own norms and conditions in this regard and are
applicable accordingly.

39. What is nil rated supply?

This type of supply attracts a GST of 0%. Input tax credit cannot be claimed on such
supplies. Some items which are nil rated include grains, salt, jaggery, etc.

40. What is Abatement?

Abatement means discount or reduction on service tax rate as notified by
governmenttement. Example. General Rate of Service tax is 15% Suppose there is 60%
abatement notified by government

41. Meaning of monitory consideration?

Monetary consideration
Monetary Consideration: It means payment made by way of cash, cheques, credit card,
bank
transfer or deduction from bank account is called monetary consideration.
Example: a) Shri. Akash purchased a stationery items for ₹.3000. He paid the seller
₹.3000 in
cash
b) Shri. Ashok purchased cloth ₹.10000 from a dealer. As he is not paid ₹.10000 by cash
then
he will be using his credit card. In this situation credit card would be the consideration for
his
purchases.

42. E way bill

E-way bill is short for Electronic Way Bill. GST E-way bill is a document used to track
goods in transit introduced under the Goods and Service Tax. A taxable person registered

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under GST involved in the transportation of goods with a value of over Rs. 50,000 must
possess an E-way bill generated on the GST Portal.

GSTN = Goods and service tax network

BRN= Business Registration Numbers
E – Payment (internet banking, credit card, debit card etc.) NEFT, RTGS

1. List out the Taxes subsumed(replaced) under GST

The goods and services tax (GST), introduced in India on 1 July 2017, and replaced a host
of indirect taxes being levied by the central and state governments, which has changed
the taxation landscape. The underlying theme was to have a „one nation one tax‟ which
would improve ease of doing business for taxpayers, bring in transparency, ensure timely
compliance and ultimately reduce the tax burden for the common man.

The GST replaced the following taxes:

(i) Taxes currently levied and collected by the Centre:
1. Central Excise duty
2. Duties of Excise (Medicinal and Toilet Preparations)
3. Additional Duties of Excise (Goods of Special Importance)
4. Additional Duties of Excise (Textiles and Textile Products)
5. Additional Duties of Customs (commonly known as CVD)
6. Special Additional Duty of Customs (SAD)
7. Service Tax
8. Central Surcharges and Cesses so far as they relate to supply of goods and services
(ii) State taxes that would be subsumed under the GST are:
1. State VAT
2. Central Sales Tax
3. Luxury Tax
4. Entry Tax (all forms)
5. Entertainment and Amusement Tax (except when levied by the local bodies)
6. Taxes on advertisements g. Purchase Tax
7. Taxes on lotteries, betting and gambling
8. State Surcharges and Cesses so far as they relate to supply of goods and services

2. What do you mean by IGST model?

Meaning of IGST Model IGST is the provision under GST to monitor the Inter-state
movement of Goods and Services. IGST will not replace the existing Central Sales Tax and
is also not an extra added tax. It basically is the sum of Central GST (CGST) and State
GST (SGST). IGST = CGST + SGST IGST will help in ensuring that the ultimate SGST is
received by the state in which the goods and services are consumed since GST is a
destination-based tax. It helps in achieving two main objectives - Prevent cascading
effect, by allowing inter set off of state and central GST. Helps in fulfilling the principal
of destination based consumption tax.
Prepared By – Asst. Prof.- M. D. Bidari | GST
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3. Meaning of the State Goods and Services Tax (SGST)

Under GST, SGST is a tax levied on Intra State supplies of both goods and services by
the State Government and will be governed by the SGST Act. As explained above, CGST
will also be levied on the same Intra State supply but will be governed by the Central
Government.

4. What is Union Territory Goods and Services Tax (UTGST)?

Similar to how SGST is levied by the state governments on the intra-state supply of goods
and services, Union Territory Goods and Services Tax or UTGST is levied by the Union
Territory governments. It refers to the tax levied on the intra-Union Territory supply of
goods and services. It is governed by the UTGST Act and is levied along with CGST.

5. What is Integrated Goods and Services Tax (IGST)?

Under GST, IGST is a tax levied on all Inter-State supplies of goods and/or services and
will be governed by the IGST Act. IGST will be applicable on any supply of goods and/or
services in both cases of import into India and export from India.

6. Structure of the GST Council

The structure of the GST Council is determined by Article 279 (1) of the amended
Constitution of India. This Article states that the GST Council should be constituted by
the President of India within a period of 60 days of the inception of Article 279A. The
Article states that GST Council should be joint forum of the Central Government as well
as the State Governments. It would consist of the following members –
• The Chairperson of the council would be the Union Finance Minister of the country.
• The Union Minister of State would be a member of the GST Council. He/she would be in
charge of Revenue of Finance
• The members of the GST Council would be the minister who is in charge of finance or
taxation or any other minister as nominated by the respective State Governments. Each
State Government would nominate one minister to act as a member of the GST Council

7. Time of Supply under GST

In the GST regime, the Time of Supply is important to know when to tax after
transactions. It refers to the point at which the products or services are believed
to have been delivered. Section 12 of the GST Act talks about the Time of supply of
Goods, whereas Section 13 talks about the Time of supply of Services. Section 12- Time of
Supply of Goods According to Section 12 of the GST Act, 2017, the time of supply of
goods is the earliest of the following:
• The date on which the supplier issues an invoice,
• The last date on which he is obliged to issue an invoice.
• The date on which the supplier receives the payment.

Prepared By – Asst. Prof.- M. D. Bidari | GST

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8. Time of Supply of Services under GST

As mentioned in Section 13 of the GST Act, 2017, the time of supply of services is the
earliest of the following:
• Date of invoice issuance (if invoice issuance is within the time limit), or
• Date of service provision (if the invoice is not issued within the time limit), or
• The date on which the advance or payment was received

9. Value of Supply of Goods & Services

Value of supply is ascertained by the transaction value, which is defined as the price
paid or payable for the transaction when the supplier and the recipient are unrelated.
The price is the sole consideration of supply.
The following shall also be included in the Value of Supply:
1. Incidental Expenses charged by the supplier to the recipient such as Commission and
Packing 2. Any amount charged by the supplier for anything done in respect of the supply
3. Any interest, late fees, or penalty due to delayed payment of consideration
4. Subsidies that are directly linked to the price excluding those which are provided by
Central Government and State Government.
5. Taxes, cesses, duties, fees under any other law except GST if charged separately by
the supplier
6. Amount incurred by the recipient and not included in the price which is actually payable
by the supplier.

13. Place of Supply under GST

Place of Supply is a significant factor to know whether the supply is Inter-State or
Intra-State Supply.
The tax is levied based on the location of supply. If the supply is made inside a state, the
tax will be paid as Central Goods and Services Tax (CGST), State Goods and Services Tax
(SGST). If the supply is made between states, the tax will be paid as Integrated Goods
and Services Tax (IGST).

If the tax is paid under the incorrect head, for example, if the tax was supposed to be
paid as IGST but was instead paid as CGST and SGST owing to a miscalculation,
there is no mechanism under the GST to remedy such errors suo moto. The person's sole
option is to pay the tax in the proper account and receive a refund for the tax paid in the
incorrect account.

The purpose of the place of supply provisions is two-fold:

1) In the case of cross-border transactions, to determine whether tax is to be
levied on a particular transaction
2) In the case of domestic transactions, to determine whether a particular transaction is
an inter-state supply or an intra-state supply.

What is Inter-State Supply? Inter-state supply is when the “location of supplier” and
“place of supply” are not in the same state or Union territory.

Prepared By – Asst. Prof.- M. D. Bidari | GST

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What is Intra State Supply? Intra-state supply is when “location of supplier” and “place of
supply” are in the same state or Union territory.

The provisions have been broadly divided into two categories:

Section 11 - Supplies which are Imports or Exports
Section 10 - Supplies other than Imports and Exports Transactions are further divided
into some broad categories, which are illustrated as under:
Import & Export (Section 11)- It includes Import & Export.

Other (Section 10) – It includes

• On the direction of the third person
• No movement of goods
• Goods are assembled
• Supplied on Board

Section 11: Place of Supply for Import & Export Imports-

Imports are goods that are brought into the country from another country. The
importer's location will be the point of supply for commodities imported into India.
Exports- The location outside India will be the site of supply for products exported from
India.

Section 10: Transactions other than Import or Export

1) Goods Movement- When a supply involves the movement of goods, the location of the
items at the moment the movement of goods ends for delivery to the receiver is the site
of supply of such goods.

2) “Bill to Ship to” Process- When goods are delivered by the supplier to a recipient
(ship to) or any other person on the direction of a third party (bill to), whether acting as
an agent or otherwise, the said third party is deemed to have received the goods, and the
place of supply of such goods is the said third person's principal place of business.

3) No Movement of Goods- Where the supply does not involve the movement of goods,
the place of supply shall be the location of such goods at the time of the delivery to the
recipient

4) When Goods are Installed- Where the goods are assembled or installed at the site,
the place of supply shall be the place of such installation or assembly

5) Goods on Board a conveyance- The point of supply for commodities provided on board
a conveyance, such as a vessel, an aeroplane, a train, or a motor vehicle, is the site where
the items are brought on board."

Prepared By – Asst. Prof.- M. D. Bidari | GST

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Place of Supply of Services

The Place of Supply is the location of the service recipient. The location of a supply
received at a place of business for which registration has been acquired is the place of
business. If a supply is received at a location other than the place of business for which
registration has been acquired (a fixed establishment elsewhere), the location is the place
of business.

The rules related to the place of supply can be described as follows -

(1) The place of supply of services is liable except for the services mentioned in
the below points:
1. Made to a registered person- location of such person,
2. Made to any person other than a registered person,
3. Location of the recipient where the address on record exists,
4. Location of supplier of services in other cases.

(2) The place of supply of services-

1. Directly in relation to immovable property,
2. A club, a guest house, a hotel, an inn, a homestay, or a campground as a place to stay,
3. By way of lodging in any moveable property to plan a wedding or celebration,
4. Any services are ancillary to the services mentioned above,

shall be the location at which the immovable property or boat or vessel, as the case may
be, is located or intended to be located. Still, if it is outside India, then the recipient's
location will be considered the place of supply.

(3) In the case of the following services, the place of supply shall be the place
where the services are actually provided -
• Personal Grooming
• Beauty Treatment
• Health and fitness services
• Cosmetic and Plastic Surgery
• Restaurant and Catering Services

(4) Services relating to performance appraisal and training, if provided to a registered

person, the place of supply will be the location of such person; otherwise, it will be the
place where the services are actually performed.

(5) The location where passenger transportation services are provided to,

(a) A registered person's location shall be such person's location;

(b) A person who is not registered is the person who is in charge of the location
where the passenger boards the conveyance for a trip,

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(6) The location of the recipient of services on the records shall be the site of delivery
of banking and other financial services to any individual. There are various other rules,
which can be referred to according to the requirements of the persons providing
the supply.

14. Important GST Terms, Definitions and Applicability

GST:
Goods and Services Tax, commonly known as GST, is a single, indirect, multi-stage,
destination based consumption tax, which will replace almost all the existing Central and
State taxes, including but not limited to CENVAT, Octroi, Sales Tax and Excise Duty etc.
It is the one of the most common definitions of GST. It has replaced all existing direct
and indirect, Central and State taxes, from 1st July, 2017. This is basic GST terminology,
now there are other GST related terms that you‟ll know about and you‟ll also know about
the definition of GST by authors and GST terms and conditions.

GSTIN:
GSTIN, i.e. Goods and Services Tax Identification Number is a business‟s legal and
unique identity with the government of India in the GST regime. GSTIN is a 15
alphanumeric character, PAN based distinctive number, allotted state-wise to GST
glossary.

CGST, SGST and IGST:

The terms of GST consist of three major taxes – Central GST, i.e. CGST, State
GST i.e. SGST and Integrated GST i.e. IGST.
The different terms under GST would enable the tax payers to take credit against
each other, enhancing ease and transparency in the taxation cycle.
• CGST: Central GST [CGST] is the GST, to be levied by the Centre, on intra-state
businesses.
• SGST: State GST [SGST] is the GST, to be levied by the State, on intra-state
businesses.
• IGST: Integrated GST [IGST] is the GST, to be levied by the Centre, on inter-state
businesses and imports.

Reverse Charge:
Reverse Charge is a mechanism and supervisory arrangement to monitor and increase the
tax coverage, compliance, synchronization and track-ability amongst unorganized, partly
organized and fully organized sectors.
Generally, the supplier of goods or services is liable to pay GST. However, in specified
cases like imports and other notified supplies, the liability may switch to the recipient
under the reverse charge mechanism. Reverse charge means the liability to pay tax
rests on the recipient of supply of goods or services instead of the supplier, however
only on special categories of supply.

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Mixed Supply:
A mixed supply is a combination of two or more individual supplies of goods or services or
any other arrangement of goods or services made by a GST payer for a single price. The
components of the mixed supply are not organically bundled but it is an intentional
fusion from business perspective. A mixed supply could be a gifting set comprising of a
pen, a tie, a wallet and a key ring.

Composite Supply: A composite supply is an organic combination of two or more

individual supplies of goods and services or any other natural arrangement of goods or
services made by a GST payer for a single price.
A composite supply is further broken into two parts:
• Principal Supply: The major and the foremost element in the Composite Supply of
goods or services.
• Dependent Supply: This is the depending element and rests on the Principal
Supply.

A composite supply could be a breakfast coupled with the stay package in a hotel, which
would be seen as a natural blend. In this case, stay package is the Principal Supply and the
breakfast is a Composite Supply.

Continuous Supply:
A continuous supply is a supply, when the goods and / or services are supplied at a
specific interval [fortnight / monthly] and the payments are also received in the same
manner. A composite supply could be the services provided by a telecom operator.

ITC:
Input tax credit [ITC] is the credit manufacturers receive for paying input taxes towards
inputs used in the manufacture of products. Likewise, a dealer is entitled to input
tax credit, if he has purchased goods for resale.

To avoid double taxation on items used as inputs to make other items, credit of taxes paid
on the inputs can be taken by the maker of the next item while paying tax on the output.
If the tax paid on inputs is higher than the tax on the output, the excess can be claimed
as a refund.

Input Tax Credit is not generic for PAN India, differs state-wise and does not apply to
the composite tax payers.

GSTR:
GSTR, i.e. GST Return is a document capturing the details of the income, which a
tax payer is supposed to file with the authorities to calculate his tax liability. There are
total eleven types of GST returns, starting from GSTR-1 to GSTR-11, capturing and
catering to different forms of tax payers.
A GST primarily includes:
• Sales data

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• Purchase data
• Output GST [Derived from Sales]
• Input Tax Credit [ GST paid on purchases]

GST Compliance Rating:

GST Compliance Rating is primarily a numerical value and a score between [0 -10] assigned
by the government to all the tax payers, which speaks about being their GST
compliance. The rating is assigned to all the GSTIN and GSTUIN holders based on
a number of factors including but not limited to your return filing habits on time,
accuracy of your fed data etc. among many others.

Though the actual rating format is still to be announced, however it should be similar to
having a 0-10 scale, where zero accounts for the lowest score and 10 denotes a cent
percent compliance.

To avail the ITC and also keep it flowing seamlessly, the rating would be a critical
factor. If the ITC is not available smoothly, the working capital will also be impacted
adversely. The rating will also impact the legitimate buyers to avail the input tax
credit, if the suppliers is not complying up to the mark.

15. What is the Eligibility Criteria for GST Registration?

The following mentions the categories and eligibility for GST registration:
Aggregate Turnover
Any service provider who provides a service value of more than Rs. 20 Lakhs aggregate in a
year is required to obtain GST registration. In the special category states, this limit is Rs.
10 lakhs. Any entity engaged in the exclusive supply of goods whose aggregate turnover
crosses Rs.40 lakhs is required to obtain GST registration.

Inter-state Business
An entity shall register for GST if they supply goods inter state, i.e., from one state to
another irrespective of their aggregate turnover. Inter state service providers need to
obtain GST registration only if their annual turnover exceeds Rs. 20 lakhs. (In special
category states, this limit is Rs. 10 lakhs).

E-commerce Platform
Any individual supplying goods or services through an e-commerce platform shall apply for
GST registration. The individual shall register irrespective of the turnover. Hence, sellers
on Flipkart, Amazon and other e-commerce platforms must obtain registration to
commence activity.

Casual Taxable Persons

Any individual undertaking supply of goods, services seasonally or intermittently through a
temporary stall or shop must apply for GST. The individual shall apply irrespective of the
annual aggregate turnover.

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Voluntary Registration
Any entity can obtain GST registration voluntarily. Earlier, any entity who obtained GST
voluntarily could not surrender the registration for up to a year. However, after revisions,
voluntary GST registration can be surrendered by the applicant at any time

16. GST Composition Scheme

Composition Scheme is a simple and easy scheme under GST for taxpayers. Small
taxpayers can get rid of tedious GST formalities and pay GST at a fixed rate of turnover.
This scheme can be opted by any taxpayer whose turnover is less than Rs. 1.5 crore*.

A taxpayer whose turnover is below Rs 1.5 crore* can opt for Composition Scheme. In case
of North-Eastern states and Himachal Pradesh, the limit is now Rs 75* lakh. As per the
CGST (Amendment) Act, 2018, a composition dealer can also supply services to an extent
of ten percent of turnover, or Rs.5 lakhs, whichever is higher. This amendment will be
applicable from the 1st of Feb, 2019. Further, GST Council in its 32nd meeting proposed an
increase to this limit for service providers on 10th Jan 2019*. Turnover of all businesses
registered with the same PAN should be taken into consideration to calculate turnover.

Prepared By – Asst. Prof.- M. D. Bidari | GST