GST

Lecture - 01
CA Jasmeet Singh
Topics
1. Input Tax Credit
2. Place Of Supply
3. Composition Scheme
4. Time Of Supply
5. Value Of Supply
 CA Jasmeet Singh Arora 1

INPUT TAX CREDIT

Section 16 Eligibility For Taking ITC
1. Conditions For Claiming the ITC:
a) Every registered person shall be entitled to take ITC.
b) G/S or both must be used or intended to be used in the course or furtherance of his
business.
c) He has received the said goods or services except in the case of Bill to Ship to model
d) The supplier has paid the said amount of tax (as charged in the invoice) to
appropriateGovernment in cash or by way of utilization of input tax credit, as
admissible.
e) He – claimant of input tax credit – has furnished return under section 39 in FORM-
GSTR 3B
f) No ITC shall be allowed to RP in respect of invoice which is not communicated to RP
in FORM– GSTR 2B.
2. If goods are received in instalments against a single invoice, credit can be taken upon
receipt of last installment of goods.
3. If recipient of G/S has not paid the supplier within 180 days from date of invoice, the
amount equal to input tax credit availed along with the interest u/s 50 shall be paid by
the recipient. The said input tax credit can be re- availed on payment to supplier.
Exceptions
This condition of payment of value of supply plus tax within 180 days does not apply in the
followingsituations:
(a) Supplies on which tax is payable under reverse charge
(b) Deemed supplies without consideration
(c) Additions made to the value of supplies on account of the supplier’s liability, in
relation to such supplies, being incurred by the recipient of the supply
4. Claim of depreciation on tax component disqualifies a recipient of Capital goods from
availment of ITC.
5. Time limit for availment of ITC extended – Sec 16(4)
ITC on invoices relating to a FY or debit notes issued in any FY) can be availed on or
before:-
(a) 30th November of the succeeding FY (after end of FY to which such invoice or debit note
pertains)
(b) Actual Date of filing of annual return (GSTR-9) for the relevant year.
6. Reversal Of ITC by Recipient
a) Supplier has filed the GSTR-1 but has not filed GSTR-3B till 30th September of next
FY
b) Then Recipient has to reverse the ITC for the same till 30th November of succeeding
FY to which such ITC relates.
However, Recipient is eligible to take ITC as and when Supplier files GSTR-3B
 CA Jasmeet Singh Arora 2

Restrictions on use of amount available in electronic credit ledger [Rule 86B]

A registered person shall not use the amount available in electronic credit ledger to
discharge his liability towards output tax in excess of 99% of such tax liability, in cases where
the value of taxable supply other than exempt supply and zero-rated supply, in a month
exceeds Rs. 50 lakh.
Exceptions
This restriction shall not apply in following cases:-
(a) Where the said person/proprietor/karta/managing director/any of its two partners,
whole- time directors, members of Managing Committee of Associations or Board of
Trustees, as the case may be, have paid more than `1 lakh as income tax1 in each of the
last 2 financial years.
(b) Where the registered person has received a refund of more than `1 lakh in the preceding
FY on account of unutilised ITC in case of (i) zero rated supplies made without payment
of tax or (ii) inverted duty structure.
(c) Where the registered person has discharged his liability towards output tax through
the electronic cash ledger for an amount which is in excess of 1% of the total output tax
liability, applied cumulatively, up to the said month in the current financial year.
(d) Where the registered person is:-
(i) Government Department
(ii) Public Sector Undertaking
(iii) Local authority
(iv) Statutory body

Section 17: Apportionment of Credit and Blocked credit

1. Where the G/S or both are used by the registered person partly for the purpose of any
business and partly for other purposes, the ITC shall be restricted to so much of the
input tax as is attributable to the purposes of his business [Section 17(2)]

2. Where the goods or services or both are used by the registered person partly for
effecting taxable supplies including zero-rated supplies and partly for effecting exempt
supplies, the ITC shall be restricted to so much of the input tax as is attributable to the
said taxable supplies including zero- rated supplies [Section 17 (3)]

3. A banking company or a financial institution including a non-banking financial company

shall have the option to either comply with Section 17(2) or avail 50% of the eligible ITC
in that month and the rest shall lapse.
Note: restriction of 50% shall not apply to the tax paid on supplies to Distinct Person
Provided that the option once exercised shall not be withdrawn during the remaining
part of the financial year.
 CA Jasmeet Singh Arora 3

4. Blocked Credit

A. Motor Vehicle/ Vessel / Aircraft

Generally ITC is blocked. However ITC is available in following cases:
i. MV with seating capacity More than 13 Person including driver.
ii. MV/V/A Purchased for further supply
iii. MV/V/A Purchased for providing Transportation of Passenger Service
iv. MV → Driving School
V → Navigation Training
A → Flying School
v. MV/V/A → Transportation Of Goods
Note: Following shall not be considered as MV & Hence ITC is available.
a) Train (Vehicle Run On Fixed Rail)
b) MV (2/3 wheeler with upto 25CC)
c) Vehicles run within factory/enclosed premises.

B. General Insurance / Repair & Maintenance / Servicing of MV/V/A

Generally ITC is blocked. However ITC is available in following cases:
a) ITC of MV/V/A is available → ITC of GI/RM/S is also available
b) RP is manufacturer of MV/V/A
c) GI/RM/S services availed for Further Supply of such service.

C. Specified Goods & Service

• Food & Beverages No ITC Is available
• Outdoor Catering Exception:
• Beauty Treatment 1. I/W supply for making further
• Health Services supply (either composite or mixed)
• Cosmetic & plastic Surgery 2. Such Supplies provided to EEs
• Leasing & Renting of MV/V/A under statutory Obligation.
• Life Insurance
• Health Insurance
• Membership Of Club/Health/Fitness No ITC is available
Centre Exception: Such Supplies provided to
• Travel Benefit Extended to EEs EEs under statutory Obligation.

D. Works Contract Service (construction of Immovable Property)

Construction of Immovable property ITC Blocked
Construction of Plant & machinery ITC Available
I/W supply of Works Contract service for further Supply ITC Available
Note: Plant & Machinery doesn’t Include
a) Telecommunication Tower
 CA Jasmeet Singh Arora 4

b) Pipelines laid down outside the factory

c) Land & Building
No ITC on above items.

E. Goods or service purchased for construction of immovable property → ITC blocked.

Goods or service purchased for construction of Plant & Machinery → ITC Available.

F. Other cases where ITC is blocked:

a) No ITC of Tax paid on composition scheme
b) No ITC is available for G/S procured by NRTP in India. However, ITC is available
for GST paid on Import of Goods.
c) G/S purchased for personal consumption
d) Goods Destroyed/disposed off/Gift/Sample/Written-off/Lost/Stolen.
e) G/S or both received by a taxable person which are used or intended to be used
for Corporate Social Responsibility referred to in section 135 of the Companies
Act 2013

Section 18: Special Circumstances for Availing ITC

1. Compulsory Registration

Voluntary Registration

Composition → Normal Scheme

 CA Jasmeet Singh Arora 5

Exempt Supply → Taxable Supply

2. A registered person shall not be entitled to take input tax credit under sub-section (1),
in respect of any supply of goods or services or both to him after the expiry of one year
from the date of issueof tax invoice relating to such supply

3. ITC in case of Amalgamation/Demerger

Where there is a change in the constitution or transfer of the business with the specific
provisions for transfer of liabilities → Transferor shall be allowed to transfer unutilised
ITC to transferee. For this purpose transferor has to file ITC-02 on the common portal
and on acceptance by transferee such ITC shall be credited to El. Credit ledger of
transferee.

4. Reversal of Credit on shifting to composition scheme or when taxable supply becomes

exempt supply

5. Reversal of Tax credit in case of supply of capital goods on which tax credit has been
taken Section 18 (6)
The registered person shall pay an amount
a) ITC taken on such goods reduced by 5% per quarter of a year or part thereof from
the date of issue of invoice for such goods or
b) the tax on the transaction value of such capital goods, whichever is higher.
 CA Jasmeet Singh Arora 1

PLACE OF SUPPLY

Section 10 Place of Supply Of Goods Other Than Export

Section Scenario Location

10(1)(a) Supply Involve movement Where movement of Goods Terminate
10(1)(c) Supply doesn’t involve Where Goods made available place of Delivery
movement
10(1)(ca) Supply to a person over the Address of Recipient recorded in invoice. If Not
counter to URP available then Location of Supplier
10(1)d) Assembly or Installation Place of Assembly/ Installation
involved
10(1)(e) Goods supplied on board of Place where Goods taken on board
Conveyance

Note : Bill to Ship to model Section 10(1)(b)

POS Supply 1 = Location Of 3rd Person on whose instruction goods are delivered.
POS Supply 2 = Location where movement of Goods Terminates.
 CA Jasmeet Singh Arora 2

Place of Supply in case of supply of services

i. Section 12(2) General Rule

Service Recipient Place Of Supply
Registered Location of SR
Unregistered
a) SR Address Available Location of SR
b) SR Address Not Available Location of SP

Specific case section 12

ii. Section 12(3) Service related to immovable property and lodging / Accomodation
• Construction | Agent | Engineering | Survery etc. of immovable propety .
• Lodging | Accommodation by Hotel | Inn | Guest House | House Boat.
• Ancillary Service Related to above
Location Of Property Place Of Supply
In India Location of Property
Outside India (SP/SR in India) Location of SR
Note :
1. Provisions are applicable on already constructed as well as yet to be constructed
property.
2. Location in more than 1 state UT
a) Single Property Is Located @ 2 or more states
POS = Based On Area In each state or UT
b) Different Property Is located @ 2 or more state
POS = Based on No. Of Nights Stayed in Each Property
3. Boat / Vessel : Based on time spent in each state / UT

iii. Section 12(4) Restaurant | Catering | Personal Grooming | Fitnes | Beauty | Health
Services Including Cosmetic & Plastic Surgery.
POS = Place where service have been performed.
 CA Jasmeet Singh Arora 3

iv. Section 12(5) Training & Appraisal Services

Service Recipient Place Of Supply
Registered Location of SR
Unregistered Place where service have been Performed

v. Section 12(6) Admission to Event | Park | other Place

Location of Place or Where Event is held

vi. Section 12(7) Organizing of Event and Sponsorship Services

Service Recipient Place Of Supply
Registered Location of SR
Unregistered
a) Event Held In India Location Of Event
b) Event Held o/s india Location of SR

vii. Section 12(8) Transportation of Good including mail & Courier

Service Recipient Place Of Supply
Registered Location of SR
Unregistered Location Where goods are handed over to Transporter

viii. Section 12(9) Transportation of Passenger

Ticket Is Issued
Service Recipient Place Of Supply
Registered Location of SR
Unregistered Location Where Passenger Embarks On Journey
Issue Of Passage For Future Journey Where Boarding Point Is Not Known
Service Recipient Place Of Supply
Registered Location of SR
Unregistered
a) SR Address Available SR Location
b) SR Address Not Available SP Location
Note: Return Journey Is Treated as separate journey Even Ticket for both side is issued
at the same time
 CA Jasmeet Singh Arora 4

ix. Section 12(10) Service provided on Board | Conveyance

First Schedule point of departure of that convince

x. Section 12(11) Telecommunication Services

Note: Leased circuit through more than 1 State | UT

Determine Based on no. of points in each state | UT.

xi. Section 12(12) Banking and Financial services including stock broking services
Location of Recipient → If Not available → Location of Supplier

xii. Section 12(13) Insurance Business – Location of Recipient

xiii. Section 12(14) Advertisement Services to Government.

Each of state where Advertisement Broadcasted | RUN | Played.
[Determine as per contract if not available below procedure]
a) Advt. in Hoardings - No of Hoardings in each state/UT
b) Advt in television charnel - Each state /UT Based on viewership of charnel in each
State | UT
[viewership Based on BARB published data of last week of Preceding quarter]
 CA Jasmeet Singh Arora 5

if figures Related to Region having >1 states

[Proportion Based on population]
c) Advt. on Internet / through sms.
Each State Based on intent Subscriber (Internet)| telecoms Subscriber (sos)
[Based on TRA2 Data of last evarten of Preceding financial year (in case of
Internet) / of Preceding Quarter (in case of Sis).

Clarification Regarding Place of Supply in Case of Supply of Services in Respect of

Advertising Sector
Issue 1
There may be a case wherein there is supply (sale) of space or supply (sale) of rights to use
the space on the hoarding/structure (immovable property) belonging to vendor to the
client/advertising company for display of their advertisement on the said
hoarding/structure. What will be the place of supply of services provided by the vendor to
the advertising company in such case?

Clarification: As hoardings/structure are fixed to the ground, they're considered part of the
immovable property (like land or buildings). The place of supply in such cases is the place
where the hoardings are located as per section 12(3).

Issue 2:
There may be another case where the advertising company wants to display its
advertisement on hoardings/billboards at a specific location availing the services of a
vendor. The responsibility of arranging the hoardings/billboards lies with the vendor who
may himself own such structure or may be taking it on rent or rights to use basis from
another person. The vendor is responsible for display of the advertisement of the
advertisement company at the said location. During this entire time of display of the
advertisement, the vendor is in possession of the hoarding/structure at the said location on
which advertisement is displayed and the advertising company is not occupying the space
or the structure. In this case, what will be the place of supply of such services provided by
the vendor to the advertising company?

Clarification: As the advertising company isn't buying the space or rights to the space
directly, but only availing a service to display its advertisements, the place of supply shall be
 CA Jasmeet Singh Arora 6

determined as per Section 12(2). Therefore is SR is registered or if unregistered but address

of SR is available, then place of supply shall be location of SR. Otherwise location of SP.
 CA Jasmeet Singh Arora 1

VALUE OF SUPPLY
As Per Section 15, Value of Supply = Transaction Value if following Conditions are Satisfied:

1) Supply to unrelated Person

&
2) Price is sole Consideration

Inclusions under Section 15 (2)

i. Tax, duty, cess or Surcharge other than GST i.e. Municipal tax, excise etc. if charged
Separately by Supplier.
TCS not included as its not a Separate tax its Just a mechanism of tax collection
ii. Supplier obligation met by the recipient.
iii. Incidental Expenses ie. Packing exp. /commission/ loading etc.
iv. Amount charged for anything done by Supplier before Delivery i.e., Any
Custormisation, Modification chases, Inspection etc.
v. Interest / fee / Penalty for delayed payment
➢ Only if Actually Recovered, if waived not part of supply
➢ Considered composite Supply, tax rate applicable as applicable on main supply
➢ Interest usually considered inclusive of asp [unless given in question] Hence
𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭
Value of Supply : 𝟏𝟎𝟎+𝐑𝐚𝐭𝐞 × 𝟏𝟎𝟎

vi. Subsidy Only if:

➢ Provided by other than CG/SG
➢ Directly linked to Price Otherwise Ignore
➢ Subsidy provided to establish plant, Enterpreneurship etc. not directly linked to
Price.
Notes:-
• If Specifically Given in question that Value is after considering Subsidy or

Price is charged after considering Subsidy

Given by CG/SG Given by other than CG/SG

No further treatment Add back as already Reduced

Required as already Reduced
 CA Jasmeet Singh Arora 2

Exclusions U/S 15(3) :

Discount

Before or at the time of Supply Post Supply Discount

(i) Before or at the time of Supply : Discount given before Supply or on making Supply
& Shown in invoice.

(ii) Post Supply Discount: All discount can’t be decided on or before Supply i.e.,
payment discount, volume discount. Post Supply Discount can be reduced from
Value of Supply if following conditions are Satisfied:
➢ Discount as per Contract existing on Supply
➢ Can be linked to invoices
➢ Proportionate ITC reversed by Recipient
Special point :
• No claim Bonus By Insurance companies
When Insured makes no claim under Insurance policy in Previous Period, then current
period Gross Premium gets Reduced by Amount called as No claim Bonus
• Whether "No Claim Bonus" is considered as Discount?
Yes, Discount Provided "on or before making Supply" & "Recorded In Invoice" shall
not be included in VoS.
Hence as non claim Bonus reduced from Gross Premium while raising Invoice shall be
considered as discount and hence shall not be included in VOS.
 CA Jasmeet Singh Arora 1

COMPOSITION SCHEME
Section 10 Composition Scheme

• The composition levy is an alternative method of levy of tax designed for small
taxpayers.
• Small taxpayers with an aggregate turnover in a preceding financial year up to `1.5
crore shall be eligible for composition levy. However, Threshold limit is `75 lakh in
respect of 8 of the Special Category States namely [NUSTA-M3] Nagaland Uttarakhand
Sikkim Tripura Arunachal Pradesh Mizoram Manipur Meghalaya

Section 10(1) & (2) Composition Scheme for Goods & Restaurant Services

• Initially, the scheme was designed to benefit the small traders, manufacturers and
restaurant service providers.
• Subsequently, suppliers availing the composition scheme were permitted to supply
other services also upto higher of following:
(a) 10% of turnover in the state or union territory in the preceding financial year or
(b) `5,00,000 whichever is higher.

Calculation of Aggregate Turnover

Aggregate Turnover includes

1. Taxable supplies
2. Exempt supplies
3. Exports
4. Inter-State supplies of persons having the same PAN be computed on all India basis.

Exclusions
• Value of inward supplies on which tax is payable under reverse charge
• Taxes Under GST (i.e. CGST/SGST/UTGST/IGST/ Compensation Cess)
• Value of supply of exempt services by way of extending deposits, loans or advances in
so far as the consideration is represented by way of interest or discount.
Note: Aggregate turnover includes value of supplies from 1st April of a FY up to the date of
his becoming liable for registration

Withdrawal From Composition Scheme

As per Section 10(3), the option of a registered person to avail composition scheme for
services shall lapse with effect from the day on which his aggregate turnover during a
financial year exceeds the threshold limit of `150 Lakh /75 Lakh.
 CA Jasmeet Singh Arora 2

Composition Rates

Registered Person Rate

Manufacturer, other than manufacturer of 1% Of Turnover in state or UT
Specified Goods
Person engaged in restaurant services 5% Of Turnover in state or UT
Any other Supplier of goods 1% Of Taxable Turnover in state or UT

Note: for the purposes of determining the Composition tax, turnover in State or UT shall
not include
(i) supplies from 1st April of a FY up to the date when such person becomes liable for
registration under this Act; and
(ii) exempt supply of services provided by way of extending deposits, loans or
advances in so far as the consideration is represented by way of interest or
discount.

Section 10(2A) Composition Scheme for Service Provider

A registered person whose aggregate turnover in the preceding financial year is up to `50
lakh, shall be eligible to pay tax under this scheme @ 6% upto Rs. 50 lakhs made from 1st
April of CFY.

Section 10(2)/(2A) Conditions for Opting to Pay Tax under Composition Scheme

a. Restricted from making supply of goods or services which are not liable to GST
b. Restricted from affecting inter-State outward supplies of goods or services
c. Restricted from making supplies through an e-commerce operator – Only for Service
Providers. Supplier of Goods are now eligible to make supplies through E-COM while
being under Composition scheme.
d. Restriction on manufacture of notified goods- Notified Goods: (i) Ice cream and other
edible ice, whether or not containing cocoa (ii) Pan masala (iii) Tobacco and
manufactured tobacco substitutes (iv) Manufacture of Aerated Water (v) Fly ash bricks
or fly ash aggregate with 90% or more fly ash content; Fly ash blocks (vi) Bricks of fossil
meals or similar siliceous earths (vii) Building bricks (viii) Earthen or roofing tiles
e. Not Available to CTP/NRTP
f. Would be applicable for all transactions under the same PAN
g. Shall not collect tax also Not entitled to input tax credit.
h. Such supplier shall mention the words “composition taxable person not eligible to
collect tax on supplies” at the top of the bill of supply. (not allowed to issue tax
invoice)
 CA Jasmeet Singh Arora 3

RULES

As per Rule 3, A person applying for registration have the option to opt for composition
scheme in part B of REG01. Such intimation shall be considered only after the grant of
registration to the applicant and his option to pay tax under composition levy shall be
effective from the effective date of registration.

As per Rule 4, A registered person who opts to pay tax under composition scheme shall file
an intimation in prescribed form on the Common Portal, prior to the commencement of
the FY for which said option is to be exercised. Composition schemen shall be effective
from the beginning of the next financial year.
Also such person shall have to furnish statement in ITC-03 for reversal of tax credit within a
period of 90 days from the date of commencement of composition scheme.

As per Rule 6, If turnover exceeds `1,50,00,000/75,00,000/50,00,000 RP shall be shifted to

normal scheme with immediate effect and he will give an intimation in CMP-04 within 7
days of exceeding the limit.
RP can also voluntarily opt out of the scheme at any time and shall file an application in
CMP-04 and he will get shifted to normal scheme with immediate effect.
RP shall be required to submit ITC-01 for availing ITC within 30 days from the date of
withdrawal. Such withdrawal shall be applicable to all the places in all the states/UTs.
 CA Jasmeet Singh Arora 1

TIME OF SUPPLY
Time of Supply [TOS] for Goods (Section 12)

(i) Forward Charge Mechanism (ii) Reverse charge Mechanism

⇓ ⇓
Date of Issue of Invoice Date of Receipt of Goods
or or
Due date of Issue of Invoice as per Sec-31 Date of payment
or or
Whichever is earlier 31st Day from Date of invoice
or
Whichever is earlier

Date of Payment:
• Date of Recording Payment in Recipient's Books or
• Date of Debit in Recipient's Bank All
Whichever is earlier

Due Date for Raising Invoice [in case of Goods] (Section 31)
(i) Movement of Goods involved → Before or at time of Removal of Goods

(ii) No Movement of Goods involved → Before or at time of Delivery of Goods

(iii) Continuous Supply of Goods

Before or at time of
• Issuance of Periodical Statement [Due date not Relevant but]
• Receipt of Payment [Actual Dates Dat Relevant]

(iv) Sale of Goods on approval Return Basis

a) Before or at time of supply
b) 6 months from Removal of Goods }
Whichever is earlier
 CA Jasmeet Singh Arora 2

Time of Supply [ToS] for Services (Section-13)

(i) Forward Charge Mechanism (ii) Reverse charge Mechanism

⇓
⇓
• Date of Making Payment
Invoice Issued on time or
⇓ • 61st day from Date of Invoice
Whichever is earlier
↓
Yes NO Not Determinable
↓
• Date of Issue of Invoice
• Date of Provision of Date of entry in BOA of
• Date of Reciept of
Services Recipient
Payment
Whichever is earlier • Date of Reciept of
Payment
Whichever is earlier

→ If Advance is upto Rs. 1000

⇓
@ option Of Supplier
• Payment Received date
or
• Date of Issue of invoice

→ Date of Receiving Payment

• Date of Recording Receipt in Supplier’s Books
or
• Date of credit in Supplier's Bank Alc
Whichever is earlier

(iii) Supply by Associated enterprise & Supplies located outside India

⇓
• Date of entry in Books of Recipients
• Date of Making Payment } Whichever is earlier
 CA Jasmeet Singh Arora 3

Due Date for Raising Invoice [in case of Services (Section-31)]

(i) Normally Before or within 30 days of Provision of Service
(ii) In Case of Insurance | Banking / FI | NBFC - Within 45 days from Provision of Service
(iii) Continuous Supply of Services (More than 3 months)
In following order
• Due date of Payment Available - Due date of Payment
• Due date not Available - Actual date of Payment
• Milestone Based [25%, 50%, 75% etc.] - on completion of Milestone
(iv) Supply ceased before Completion - Raise invoice before such ceasation

Common Points for Time of Supply of Goods & Services

Time of Supply in case of Voucher for Goods | Services

Whether Supply identifiable at time issue of Voucher

Yes No
↓ ↓
• Date of Issue of Voucher Date of Redemption of Voucher
• Eg. Swiggy voucher Eg. Flipkart Voucher

Time of Supply of Addition in Value because of Interest | fees | Penalty etc.

TOS = Day on which addition Received by Supplier

Any other Case (Residual Cases)

→ If Periodical return is filled – Due date of Return
→ Otherwise - Date on which GST Paid.
GST
Lecture - 02
CA Jasmeet Singh
Topics
1. Exemption
2. TDS/TCS
3. Supply
4. RCM
 CA Jasmeet Singh Arora 1

TDS & TCS UNDER GST

Section-51 Tax deduction at source (TDS)

❖ Following Person Shall Deduct Tax u/s 51

• Central Govt./State Govt. → Department/Establishment
• Local Authority
• Government Agencies
• Public Sector Undertakings
• Society Established by CG/SG under Society Act
• An Authority/Board or other body
▪ Setup by an act of Parliament/State legislature
▪ Where 51% or more equity/control with Govt

❖ When to Deduct TDS

Supply of taxable G/S under a CONTRACT Exceeds 250000 Excluding GST.

❖ TDS Rate
1% (CGST) + 1% (SGST) or 2% (IGST) on payment made or credited to supplier for taxable
goods & services. [Value shall be taken for deduction of TDS, exclusive of GST shown
in Invoices]

❖ When not Required to Deduct TDS

➢ Value of taxable Supplies in a Contract Value ≤ Rs 250000
➢ Exempt Supplies
➢ Supply Under RCM
➢ Payment made to Unregistered Supplier
➢ Goods / Services Supplied between person notified to deduct TDS
➢ Location of Supplier & Place of Supply (In Same State & But Recipient's place in
other State)

➢ In Such Case TDS is deduct in form of Rajasthan's State tax that would not be
possible to be deducted by Recipient in Punjab
↓
➢ Hence TDS N.A. on Such transaction
❖ Other Points
➢ Deductor Shall Deposit TDS Deducted by 10th of Succeeding month
➢ TDS Certificate in form GSTR-7A shall be provided to deductee
➢ TDS deducted shall reflect in Cash ledger of deductee
 CA Jasmeet Singh Arora 2

➢ Failure to Deposit TDS- Interest @18% & Penalty

Section-52 Tax Collected at source (TCS)

❖ Who shall collect TCS

➢ Every E-Commerce Operator (Not an agent)
➢ Amount collected by ECO.

❖ TCS Rate
0.5% (CGST) + 0.5% (SGST) or 1% (IGST) on Net Value of taxable Supplies.
Net Value = Value of G/S Supplied - Returned Supply

❖ Eco Obligation
➢ Eco Shall File Statement in form GSTR-8 & Deposit TCS within 10 days from end of
month
➢ Eco Shall also file Annual Statement GSTR 9-B before 31st Dec following end of FY
Detailing
• Outward Supplies of G/S Including returns made
• Amount collected as TCS

❖ TCS Not applicable in following cases

➢ Supplies Own Product through website hosted by him
➢ Supplies Different Vendor Product & amount collected by Vendor Only
➢ Supply of Services notified under section 9(5)
➢ Exempt Supplies
➢ Recipient Required to pay tax on RCM.
➢ Supply of Services by Supplier not liable to register.

Clarifications
1. Clarification on TCS liability in case of multiple ECOs in one transaction

In the case of the ONDC Network (Open Network for Digital Commerce) there can be
multiple ECOs in a single transaction - one providing an interface to the buyer and the other
providing an interface to the seller.
Issue 1: In a situation where multiple ECOs are involved in a single transaction of supply of
goods or services or both through ECO platform and where the supplier-side ECO himself
is not the supplier in the said supply, who is liable for compliances under section 52
including collection of TCS?

Buyer Buyer- Supplier-

Side ECO side ECO Supplier
s
 CA Jasmeet Singh Arora 3

Clarification:
The compliances under section 52, including collection of TCS, is to be done by the supplier-
side ECO who finally releases the payment to the supplierfor a particular supply made by the
said supplier through him.

Issue 2 : In a situation where multiple ECOs are involved in a single transaction of supply
of goods or services or both through ECO platform and the Supplier-side ECO is himself
the supplier of the said supply, who is liable for compliances under section 52 including
collection of TCS?
Clarification: In such a situation, TCS is to be collected by the Buyer-side ECO while making
payment to the supplier for the particular supply being made through it.

Other Provisions Related To TCS

1. Unregistered persons with aggregate turnover upto threshold limit permitted to

supply goods through an ECO.

Person not liable for registration u/s 22 shall be allowed to make supply Goods
through ECO subject to following conditions:
(i) Restricted from making inter-State supply of goods;
(ii) Restricted from making supply of goods through ECO in more than one
State/Union territory;
(iii) Must be having PAN
(iv) Before making any supply of goods through ECO, declare on the common
portal:
a. PAN
b. address of business and
c. State/UT in which such persons seek to make such supply
(v) enrolment number h a v e b e e n g r a n t e d on the common portal on
successful validation of the PAN declared above;
(vi) such persons shall not be granted more than one enrolment number in a
State/UT;
(vii) no supply of goods shall be made by such persons through ECO unless such
persons have been granted an enrolment number on the common portal; and
(viii) the enrolment number shall cease to be valid from the effective date of
registration.

Obligations Of ECO where URP makes supply through it.

(i) ECO shall allow the supply of goods through it by the unregistered person only
 CA Jasmeet Singh Arora 4

if enrolment number has been allotted

(ii) ECO shall not allow any inter-State supply of goods through it by the unregistered
person;
(iii) ECO shall not collect tax at source under section 52
(iv) ECO shall furnish the details of supplies of goods made through it by the said
person in the statement in Form GSTR-8 electronically on the common portal.
Where multiple ECOs are involved in a single supply of goods through ECO platform,
“ECO” shall mean the ECO who finally releases the payment to the said person for the
said supply made by the said person through him.

2. Special procedure to be followed by ECOs in respect of supplies of goods through

them by composition taxpayers
a. The ECO shall not allow any inter-State supply of goods through it by the said
person;
b. The ECO shall collect TCS
c. The ECO shall furnish the details of supplies of goods made through it by the
said person in the statement in Form GSTR-8 electronically on the common
portal.
 CA Jasmeet Singh Arora 1

Supply Under GST

Section 9 is the charging provision of the CGST Act. It provides that

All intra-State supplies would be liable to CGST. The levy is on supply of all goods or
services or both except on the supply of alcoholic liquor for human consumption.
However, supply of petroleum crude, high speed diesel, motor spirit (petrol), natural gas
and aviation turbine fuel are also included in GST.

Supply is the Taxable event to levy GST

Section 7 Meaning Of Supply

Section 7(1) (a)

Supply includes all forms of supply (goods and / or services) and includes agreeing to
supply when they are for a consideration and in the course or furtherance of business. It
specifically includes
(i) Sale (iii) Barter (v) License (vii) Lease
(ii) Transfer (iv) Exchange (vi) Rental (viii) Disposal.

Section 7(1) (aa)

Activities or transactions between an association, club or similar entities and its members
or constituents as ‘supply’. For the purpose of taxability, the members and the entity shall
be deemed to be two distinct persons.
Example:
a) Resident Welfare Association (RWA) of Sanskriti Society supplies air-conditioners to its
members at a concessional price.
b) A RWA collects maintenance charges from its members for services provided.

Section 7(1) (b)

Supply includes import of a service, made for a consideration and whether or not in the
course or furtherance of business.

Section 7(1) (c)

The activities specified in Schedule I, made or agreed to be made without consideration.

Schedule I

1. Permanent transfer of business assets where input tax credit has been availed.
E.g. Infosys limited upgraded their 1000 Laptops and donated their old laptops (ITC
Claimed) to the Government Schools. In this case, such donation is treated as supply as
per Schedule I.
 CA Jasmeet Singh Arora 2

2. Supply of goods and / or services between related person, or between distinct

persons:
E.g. Free supplies to related persons, stock transfers to a unit outside the State/a
different business vertical, etc. will be reckoned as supplies.
Meaning of Distinct person
A person who has obtained/is required to obtain more than one registration, whether
in one State/Union territory or more than one State/Union territory shall, in respect of
each such registration, be treated as distinct persons [Section 25(4) of the CGST Act].

Meaning of Related Person

"Related persons" means
(i) Such persons are partners in business.
(ii) Any person holds twenty-five per cent or more of shares of both of them.
(iii) One of them controls the other (Holding Subsidiary company)
(iv) Together they directly or indirectly control a third person
(v) Such persons are employer and employee;
(vi) They are members of the same family;

As per section 2(49) "family" means,— (i) the spouse and children of the person, and
(ii) the parents, grand-parents, brothers and sisters of the person if they are wholly or
mainly dependent on the said person.

3. Supply of goods by a principal to his agent or by agent to his principle, where the
agent undertakes to supply or receive such goods on behalf of the principal.
Note:
• Where principal Invoices to Agent and Agent Invoices to customer: then such
Agent will fall under Schedule-I and
• Where principal Invoices directly to customer and the transaction mediated by an
Agent: then such agent will not be covered under Schedule-I

4. Import of services
by a taxable
person from a
related person, in
the course or
furtherance of
business
 CA Jasmeet Singh Arora 3

Section 7(1A)
Where transaction is considered as supply under sub section (1), they shall be treated
either as supply of goods or supply of service as referred in schedule II.
S. No Activity/ Type Nature of
Transaction Supply
1. Transfer Any transfer of title in goods immediate or in Goods
future date.
Any transfer of right in goods/ undivided share in Services
goods without transfer of title in goods.
2. Land and Any lease or letting out of land or building services
Building including a commercial, industrial or residential
complex.
3. Treatment or Any treatment or process which is applied to Services
Process another person’s goods
4. Transfer of Goods forming part of business assets are Goods
Business Assets permanently transferred or disposed off
Goods held/used for business are put to private use Services
or are made available to any person for non-
business purpose
Goods forming part of assets of any business Goods
carried on by a person who ceases to be a taxable
person, shall be deemed to be supplied by him, in
the course or furtherance of his business,
immediately before he ceases to be a taxable
person.
Eg. Mr. X, a Electronic trader, is winding up his
business. Any goods left in stock shall be deemed
to be supplied by him.
Exception
1. Business is transferred as a going concern
to another person
2. Business is carried on by a personal
representative who is deemed to be a
taxable person.
5. Following Supply shall be considered as supply of service
a) Sale of under construction building where whole or part of the consideration is
received before issuance of completion certificate.
However, where the entire consideration has been received after issuance of
completion certificate or after its first occupation, whichever is earlier, then
such transaction is neither supply of good nor supply of service.

Eg. DLF has constructed individual residential units for agreed consideration of
Rs. 2 crore per unit. Rs. 1 crore per unit were received before issuance of
 CA Jasmeet Singh Arora 4

completion certificate by the competent authority and balance after

completion
b) Temporary transfer or permitting use or enjoyment of any intellectual
property right
c) Development, design, programming, customisation, adaptation, upgradation,
enhancement, implementation of IT software.
Eg. XYZ software developers developed ERP software for A ltd.
d) Agreeing to obligation to refrain from an act, or to tolerate an act or situation,
or to do an act.
Above three activities must comply with the following Conditions:
I. There must be an expressed or implied agreement or contract.
II. Consideration must flow in return to this contract/agreement.
Taxability of some of the transactions has been discussed in detail later.
6. Following composite supplies :-
a) Works contract services related to immovable property wherein transfer of
property in goods (whether as goods or in some other form) is involved in the
execution of such contract
b) Supply of food or any other article for human consumption or any drink (soft
drink).

Section 7(2)
Certain supplies will be neither a supply of goods, nor a supply of services: The law lists
down matters which shall not be considered as ‘supply’ for GST. This list includes:

A. Activities/ transactions in Schedule III(Negative List)

(a) Services by an employee to an employer in the course or in relation to his
employment.
(b) Services by any Court or Tribunal established under any law for the time being in
force;
(c) Functions performed by MPs, MLAs, etc.; the duties performed by a person who
holds any post in pursuance of the provisions of the Constitution in that capacity;
the duties performed by specified persons in a body established by the Central
State Government or local authority, not deemed as an employee;
(d) Sale of land and Sale of Building (except sale of under-construction premises
where the part or full consideration is received before issuance of completion
certificate or before its first occupation, whichever is earlier.
(e) Actionable claims, other than lottery, betting and gambling and
(f) Services of funeral, burial, crematorium or mortuary including transportation of
the deceased.
“Service by way of grant of alcoholic liquor licence, against consideration in the form of
licence fee or application fee shall be neither supply of Goods nor supply of Services”
 CA Jasmeet Singh Arora 5

It may be noted that services provided by the Government to business entities including by
way of grant of privileges, licences, mining rights, natural resources such as spectrum etc.
against payment of consideration in the form of fee, royalty etc. are taxable under GST. Tax
is required to be paid by the business entities on such services under reverse charge.

B. Gifts not exceeding Rs. 50,000 in value in a financial year by an employer to employee
shall not be treated as supply of goods or services or both.

Perquisites provided by the employer to the employee not liable to GST if following
conditions are satisfied:
a) It should be as per contractual agreement between employer & employee.
b) Employer should not avail ITC on inward supply of such goods/service. If employer has
already availed ITC, needs to reverse it

Section 7(3)
The Central Government or the State Government may notify such other transactions to
either qualify as ‘supply of goods’ or as ‘supply of services’ This notification must be issued
only upon recommendations from the Council.

Section 8 Composite And Mixed Supplies

As per section 2(30), "composite supply" means a supply made by a taxable person to a
recipient consisting of two or more taxable supplies of goods or services or both, or any
combination thereof, which are naturally bundled and supplied in conjunction with each
other in the ordinary course of business, one of which is a principal supply.

Principal supply means the supply of goods or services which constitutes the predominant
element of a composite supply and to which any other supply forming part of that
composite supply is ancillary

Eg. When a consumer buys a television set and he also gets warranty and a maintenance
contract with the TV, this supply is a composite supply. In this example, supply of TV is the
principal supply, warranty and maintenance services are ancillary.
Eg. Charger supplied alongwith mobile phone is a composite supply.

As per section 2(74), "mixed supply" means two or more individual supplies of goods or
services, or any combination thereof, made in conjunction with each other by a taxable
person for a single price where such supply does not constitute a composite supply:
Eg. A gift pack comprising of chocolates and sweets is a mixed supply
 CA Jasmeet Singh Arora 6

Eg. A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits,
aerated drink and fruit juices when supplied for a single price is a mixed supply.

The tax liability on a composite or a mixed supply

a) a composite supply comprising two or more supplies, one of which is a principal supply,
shall be treated as a supply of such principal supply; and
b) a mixed supply comprising two or more supplies shall be treated as a supply of that
particular supply which attracts the highest rate of tax.

Clarifications

1. Art works sent by artists to galleries for exhibition

Sending artworks to a gallery for exhibition does not entail any financial transaction or
consideration flowing from the gallery to the artist.
As a result, this does not qualify as a taxable supply. The actual supply occurs when a
buyer buys artwork from the gallery and applicable gst shall be levied at the time of
such supply.

2. Donations / Charity / Gift

GST is not leviable where all the following three conditions are satisfied namely:
a) Gift or donation is made to a charitable organization
b) Payment has the character of gift or donation
c) Purpose is philanthropic (i.e., it leads to no commercial gain) and not advertisement

Bhushan donated a blackboard to Yoganisht Sansthan - a charitable yoga institution.

Yoganisht Sansthan printed underneath the blackboard so donated - “Good wishes from
Mr. Bhushan”.

3. Taxability of ‘tenancy rights’/pagadi under GST

• Transfer of tenancy rights against tenancy premium is a form of lease or renting of
property and such activity is specifically declared to be a service in of Schedule II i.e.
Any lease, tenancy, easement, licence to occupy land is a supply of services.
• The transfer of tenancy rights cannot be treated as sale of land/ building.
• Transfer of tenancy rights to a new tenant against consideration in the form of
tenancy premium is taxable
• Services provided by outgoing tenant by way of surrendering the tenancy rights
against consideration in the form of tenancy premium is liable to GST.

4. Inter-State movement of various modes of conveyance

Inter-State movement of various modes of conveyance, between distinct persons for
i) carrying goods or passengers or both; or
 CA Jasmeet Singh Arora 7

ii) for repairs and maintenance,

shall be treated ‘neither as a supply of goods or supply of service’ and therefore not be
leviable to IGST.
However, where such movement is for further supply of the same conveyance then
such movement shall be treated as supply and GST shall be levied.

5. Supply of printed books, pamphlets, brochures, envelopes, annual reports, leaflets,

cartons, boxes etc., printed with design, logo, name, address or other contents
supplied by the recipient of such printed goods

a) In the case of printing of books, pamphlets, brochures, annual reports, and the like,
where only CONTENT IS SUPPLIED by the publisher or the person who owns the
usage rights to the intangible inputs while the physical inputs including paper used
for printing belong to the printer,
• supply of printing [of the content supplied by the recipient of supply] is the
principal supply and therefore,
• such supplies would constitute supply of service

b) In case of supply of printed envelopes, letter cards, printed boxes, tissues, pen,
napkins, wall paper etc. by the printer using its physical inputs including paper to
print the design, logo etc. supplied by the recipient of goods,
• predominant supply is supply of goods and
• the supply of printing of the content [supplied by the recipient of supply] is
ancillary to the principal supply of goods and therefore
• such supplies would constitute supply of goods.

6. Retreading of tyres
Pre-dominant element is process of retreading which is a supply of service. Rubber
used for retreading is an ancillary supply.
Supply of retreaded tyres, where the old tyres belong to the supplier of retreaded
tyres, is a supply of goods.

7. Buy one get one free offer

• It may appear at first glance that in case of offers like “Buy One, Get One Free”, one
item is being “supplied free of cost” without any consideration. In fact, it is not an
individual supply of free goods, but a case of two or more individual supplies where
a single price is being charged for the entire supply. It can at best be treated as
supplying two goods for the price of one.
 CA Jasmeet Singh Arora 8

• Taxability of such supply will be dependent upon as to whether the supply is a

composite supply or a mixed supply and the rate of tax shall be determined
accordingly

8. Clarification regarding GST Applicability on Liquidated Damages, Compensation and

Penalty arising out of Breach of Contract or Other Provisions of Law.

a) Liquidated Damages
➢ ‘Liquidated Damages’ refers to cash compensation payable to aggrieved party
for breach of contract.
➢ Liquidated damages cannot be said to be a consideration received for tolerating
the breach or non-performance of contract. They are rather payments for not
tolerating the breach of contract.
➢ Hence, where ‘liquidated damages’ is paid only to compensate for loss or
damage suffered by the aggrieved party due to breach of the contract, and
✓ there is no agreement, express or implied, by the aggrieved party receiving
the liquidated damages, to refrain from or tolerate an act or to do anything
for the party paying the liquidated damages,
✓ such payments do not constitute consideration for a supply & are not
taxable.
➢ Eg. Penalty stipulated in a contract for delayed construction of houses
➢ Eg. Forfeiture of earnest money by a seller in case of breach of ‘an agreement to
sell’ an immovable property by the buyer.
Forfeiture of such earnest money is not a consideration for tolerating the breach
of contract but as a compensation for the losses suffered and as a penalty for
discouraging the non-serious buyers
Such payments being merely flow of money are not a consideration for any
supply and are not taxable.
➢ The main element in such cases is to consider whether payments constitute
consideration for another independent contract envisaging tolerating an act or
situation or refraining from doing any act or situation or simply doing an act. If
the answer is yes, then it constitutes a ‘supply’ irrespective of by what name it is
called.
Eg. A contract for package tour may stipulate forfeiture of security deposit in
the event of cancellation of tour by the customer.
Eg. A contract for lease of movable or immovable property may stipulate that
the lessee shall not terminate the lease before a certain period and if he does so
he will have to pay certain amount as early termination fee or penalty.
 CA Jasmeet Singh Arora 9

b) Cheque dishonor fine/ penalty

➢ The supplier wants payment to be received on time and does not want cheque
to be dishonoured.
➢ There is never an implied or express offer or willingness on part of the supplier
that he would tolerate deposit of an invalid, fake or unworthy instrument of
payment against consideration in the form of cheque dishonour fine or penalty.
➢ Therefore, cheque dishonor fine or penalty is not a consideration for any service
and not taxable.

c) Penalty imposed for violation of laws

➢ Penalty imposed for violation of laws such as traffic violations, or for violation
of pollution norms or other laws are also not consideration for any supply
received and are not taxable
➢ Laws are not framed for tolerating their violation. They stipulate penalty not for
tolerating violation but for not tolerating, penalizing and deterring such
violations.
➢ There is no agreement between the Government and the violator specifying that
violation would be allowed or permitted against payment of fine or penalty.

d) Forfeiture of salary or payment of bond amount in the event of employee leaving

employment before the minimum agreed period.
➢ The said amounts are recovered by the employer not as a consideration for
tolerating the act of such premature quitting of employment but as penalties for
dissuading the non-serious employees from taking up employment and to
discourage and deter such a situation.
➢ Further, the employee does not get anything in return from the employer
against payment of such amounts.
➢ Therefore, such amounts recovered by the employer are not taxable as
consideration for the service of agreeing to tolerate an act or a situation.

e) Late payment surcharge or fee.

➢ Facility of accepting late payments with interest or late payment fee, fine or
penalty is a facility granted by supplier naturally bundled with the main supply.
➢ Almost all service providers across the world provide the facility of accepting
late payments with late fine or penalty
 CA Jasmeet Singh Arora 10

➢ Since it is ancillary to and naturally bundled with the principal supply such as of
electricity, water, telecommunication, cooking gas, insurance etc. it should be
assessed at the same rate as the principal supply.
➢ However, same cannot be said of cheque dishonor penalty as discussed earlier.

f) Fixed charges for power

➢ The price charged for electricity by the power generating companies from the
State Electricity Boards (SEBs)/DISCOMS or by SEBs/DISCOMs from individual
customers has 2 components namely,
a) Minimum fixed charge, and
b) Variable per unit charge
➢ are charged for sale of electricity and are thus not taxable, as electricity is
exempt from GST.

g) Cancellation charges
➢ Suppliers of services such as hotel accommodation, tour and travel,
transportation etc. provide the facility of cancellation of the intended supplies
within a certain time period on payment of cancellation fee.
➢ This cancellation facility against payment of charges is a natural part of supply.
➢ The amount forfeited in the case of non-refundable ticket for air travel or
security deposit or earnest money forfeited in case of the customer failing to
avail the travel, tour operator or hotel accommodation service or such other
intended supplies should be assessed at the same rate as applicable to the
service contract, say air transport or tour operator service, or other such
services.
 CA Jasmeet Singh 1

Exemption Under GST

1. Services related to charitable and religious activities

A. Services by an entity registered under section 12AA / 12AB of the Income-tax Act, 1961 by
way of charitable activities. ‘Charitable Activities’ mean activities relating to
• PUBLIC HEALTH
• ADVANCEMENT OF RELIGION, spirituality or yoga;
• ADVANCEMENT OF EDUCATIONAL PROGRAMMES/SKILL DEVELOPMENT relating to,
(i) abandoned, orphaned or homeless children;
(ii) physically or mentally abused and traumatised persons;
(iii) prisoners; or
(iv) persons over the age of 65 years residing in a rural area
• PRESERVATION OF ENVIRONMENT
B. Services by a person by way of
i. conduct of any religious ceremony;
ii. renting of precincts of a religious place except where,
a) renting of rooms where charges are `1,000 or more per day
b) renting of premises,halls, kalyana mandapam or open area where charges are
`10,000 or more per day
c) renting of shops or other spaces for business or commerce where charges are
`10,000 or more per month.
C. Services by a specified organization
i. Kumaon Mandal Vikas Nigam Limited (KMVN), a Government of Uttarakhand
Undertaking;
ii. ‘Haj Committee of India’ or ‘State Haj Committee including Joint State Committee’.

D. Services by way of training or coaching in

(a) recreational activities relating to arts or culture, by an individual, or
(b) sports by charitable entities registered under section 12AA of the Income-tax Act.

2. Agriculture
(a) loading, unloading, packing, storage or warehousing of rice.
(b) warehousing of minor forest produce.
(c) storage/warehousing of Agricultural produce, rice, cereals, pulses, fruits and vegetables.
(d) Services relating to cultivation of plants and rearing of all life forms of animals, except the
rearing of horses, for food, fibre, fuel, raw material or other similar products or agricultural
produce by way of
i. agricultural operations directly related to production of any agricultural produce
including cultivation, harvesting, threshing, plant protection or testing
ii. supply of farm labour
 CA Jasmeet Singh 2

iii. processes which do not alter the essential characteristics of agricultural produce
but make it only marketable for the primary market
iv. renting or leasing of agro machinery or vacant land
v. loading, unloading, packing, storage or warehousing of agricultural produce
vi. agricultural extension services
vii. services by any Agricultural Produce Marketing Committee or Board or services
provided by a commission agent for sale or purchase of agricultural produce
(e) Services by way of artificial insemination of livestock (other than horses)
(f) job work in relation to cultivation of plants and rearing of all life forms of animals.

3. Education services
i. Educational institution means
a) pre-school education and education up to higher secondary school or equivalent.
b) education as a part of a curriculum for obtaining a qualification recognised by any
Indian law
c) education as a part of an approved vocational education course.
ii. Services Provided BY an educational institution
a) to its students, faculty and staff
b) by way of conduct of entrance examination against consideration
iii. Services Provided To an educational institution
Services School College/Universities
transportation of students, faculty and staff; Exempt Taxable
catering, including any mid-day meals Exempt Taxable
security or cleaning or house-keeping Exempt Taxable
services
services relating to admission to, or conduct Exempt Exempt
of examination
supply of online educational journals or Taxable Exempt
periodicals
Note:

a) IIMs provide various long duration programs (1 year or more) for which they award
diploma/ degree certificate → Exempt
b) IIMs also provide various short duration/short term programs (less than 1 year) for which
they award participation certificate → Taxable.

4. Health care services

a) Services by a veterinary clinic in relation to health care of animals or birds
b) health care services by a clinical establishment, an authorised medical practitioner or para
medics
c) transportation of a patient in an ambulance
 CA Jasmeet Singh 3

Health care services Means diagnosis or treatment or care for illness, injury, deformity,
abnormality or pregnancy → Recognized System Of Medicine (
Allopathy/Ayurveda/Homeopathy/Naturopathy/ Yoga/Siddha/Unani. Naturopathy)

Note:

a) Reiki is not recognised system of medicine.

b) hair transplant or cosmetic or plastic surgery is taxable, except when undertaken to restore
or to reconstruct anatomy or functions of body affected due to congenital defects,
developmental abnormalities, injury or trauma.
c) Room Rent
• Intensive Care Unit (ICU) or Critical Care Unit (CCU) or Intensive Cardiac Care Unit (ICCU)
or Neo-Natal Intensive Care Unit (NICU), there would be full exemption irrespective of
amount of rent
• In case of other categories of rooms, Exemption is available only when rent charges do
not exceed ` 5,000 per day.
d) services provided by such senior doctors/consultants/technicians, whether employees or
not, are healthcare services which are exempt from GST.
e) Health care services provided by the clinical establishments will include food supplied to
the patients as advised by the doctor/nutritionists is a part of composite supply of
healthcare and not separately taxable. However, other supplies of food by a hospital to
patients (not admitted) or their attendants or visitors are taxable
f) Supply of services other than healthcare services such as renting of shops, auditoriums in
the premises of the clinical establishment, display of advertisements etc. will be subject to
GST.
g) the abnormality/disease/ailment of infertility is treated using ART procedure such as IVF, it
is clarified that services by way of IVF are also covered under the definition of health care
services

5. Passenger transportation services

i. Transport of passengers, with/without accompanied belongings, by:
a) air, in economy class embarking from or terminating in an airport located in the
State of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland,
Sikkim, or Tripura or at Bagdogra located in West Bengal;
b) non-air conditioned contract carriage other than radio taxi, for transportation of
passengers, excluding tourism, conducted tour, charter or hire; or
c) stage carriage other than air- conditioned stage carriage.

However, nothing contained in items (b) and (c) above shall apply to services supplied
through an electronic commerce operator, and notified under sub-section (5) of Section 9 of
the CGST, 2017

ii. Service of transportation of passengers, with or without accompanied belongings, by:

 CA Jasmeet Singh 4

A. railways in a class other than—

a) first class; or
b) an air-conditioned coach;
B. metro, monorail or tramway;
C. inland waterways;
D. public transport, other than predominantly for tourism purpose, in a vessel
between places located in India
The expression ‘public transport’ used in this Entry only means that the transport
should be open to public. It can be privately or publicly owned. Only exclusion is on
transportation which is predominantly for tourism, such as services which may
combine with transportation, sightseeing, food and beverages, music,
accommodation such as in shikara, cruise etc.
E. metered cabs or auto rickshaws (including e-rickshaws). Except services supplied
through an electronic commerce operator covered u/s 9(5).

Note:

Hiring of non-air conditioned contract carriages by firms for transportation of their

employees to and from work

The exemption shall not be applicable where contract carriage is hired for a period of
time, during which the contract carriage is at the disposal of the service recipient and
the recipient is thus free to decide the manner of usage (route and schedule) subject to
conditions of agreement entered into with the service provider.

6. Goods transportation services

i. Services by way of transportation of goods
a) by road except the services of— (i) a goods transportation agency; (ii) a courier
agency
b) by inland waterways.
ii. Services by way of transportation by rail or a vessel or by GTA of following items
(a) relief materials meant for victims of natural or man-made disasters, calamities,
accidents or mishap;
(b) defence or military equipments;
(c) newspaper or magazines registered with the Registrar of Newspapers;
(d) agricultural produce;
(e) milk, salt and food grain including flours, pulses and rice; and
(f) organic manure.

7. Banking and financial services

i. Services by way of:
(a) extending deposits, loans or advances in so far as the consideration is represented
by way of interest or discount (other than interest involved in credit card services);
 CA Jasmeet Singh 5

(b) inter se sale or purchase of foreign currency amongst banks or authorised dealers
of foreign exchange or amongst banks and such dealers.

Note:

1. Service charges/fees, documentation fees, broking charges, administrative charges,

entry charges or such like fees or charges collected over and above interest on loan,
advance or a deposit are not exempt.
2. Invoice discounting/cheque discounting or any other similar form of discounting →
Exempt
3. Any interest/delayed payment charges charged to clients for delay in payment of
brokerage amount/settlement obligations/margin trading facility: is exempt from
GST.
4. Interest charged on outstanding credit card balances → Taxable
ii. Services provided by a banking company to Basic Saving Bank Deposit (BSBD) account
holders under Pradhan Mantri Jan Dhan Yojana (PMJDY).
iii. Services by an acquiring bank, to any person in relation to settlement of an amount up
to `2,000 in a single transaction transacted through credit card, debit card, charge card
or other payment card service.

8. Business facilitator/correspondent
Services by the following persons in respective capacities
a) business facilitator or a business correspondent to a banking company with respect to
accounts in its rural area branch;
b) any person as an intermediary to a business facilitator or a business correspondent with
respect to services mentioned in entry (a) above.
c) business facilitator or a business correspondent to an insurance company in a rural area.

9. Performance by an artist
Services by an artist by way of a performance in folk or classical art forms of
(a) music, or (b) dance, or (c) theatre, if the consideration charged for such performance is not
more than `1,50,000 are exempt from GST.

10. Services by an unincorporated body or a non-profit entity

Service by an unincorporated body or a non-profit entity registered under any law for the time
being in force, to its own members by way of reimbursement of charges or share of
contribution up to an amount of `7,500 per month per member for sourcing of goods or
services from a third person for the common use of its members in a housing society or a
residential complex.
Note: If amount recovered exceeds 7500 then entire amount shall be taxable.
 CA Jasmeet Singh 6

11. Tour Operator Services

Services provided by a tour operator shall be exempt from tax, if they are provided:-
A. to a foreign tourist
B. in relation to a tour conducted wholly outside India or Partly in India & Partly Outside India
C. Exemption for tour Partly in India and partly outside India shall be restricted to lower of
following:
𝐓𝐨𝐭𝐚𝐥 𝐜𝐨𝐧𝐬𝐢𝐝𝐞𝐫𝐚𝐭𝐢𝐨𝐧 𝐜𝐡𝐚𝐫𝐠𝐞𝐝 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐞𝐧𝐭𝐢𝐫𝐞 𝐭𝐨𝐮𝐫
a) 𝐓𝐨𝐭𝐚𝐥 𝐧𝐮𝐦𝐛𝐞𝐫 𝐨𝐟 𝐝𝐚𝐲𝐬 𝐜𝐨𝐦𝐩𝐫𝐢𝐬𝐢𝐧𝐠 𝐭𝐡𝐞 𝐭𝐨𝐮𝐫
x No. of days for outside India
b) 50% of the total consideration charged for the entire tour

While making the above calculations, an y 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.

12. Other exempt services

A. Services by way of giving on hire (including renting of vehicle):
(a) to a state transport undertaking (STU), a motor vehicle meant to carry more than 12
passengers
(b) to a local authority, an Electrically operated vehicle (EOV) meant to carry more than 12
passengers;
(c) to a goods transport agency, a means of transportation of goods
(d) motor vehicle by a person providing services of transportation of students, faculty and
staff to School.
B. Services by an organiser to any person in respect of a business exhibition held outside India.
C. Services provided to a recognised sports body by
(a) an individual as a player, referee, umpire, coach or team manager for participation in a
sporting event organised by a recognized sports body;
(b) another recognised sports body
D. Services provided to a Governmental Authority by way of —
(a) water supply;
(b) public health;
(c) sanitation conservancy;
(d) solid waste management; and
(e) slum improvement and upgradation.
CA Jasmeet Singh 7
GST
Lecture - 03
CA Jasmeet Singh
Topics
1. Registration
2. E-way Bill
3. Returns Under GST
4. Payment Of Tax
5. Tax Invoice/Dr. Note/Cr. Note\
6. Accounts & Records
 CA Jasmeet Singh 1

REGISTRATION UNDER GST

As per Charging Section of GST "Taxes Shall be collected & paid by taxable Person"
• Taxable Person
➢ Any Person who is Registered or liable to Register
➢ Hence even
✓ Unregistered person is also a taxable Person if → liable to Register
✓ Voluntary Registered person shall also be a taxable person even not liable
• Who is liable to Register
➢ Sec-22 - Person liable for Registration
➢ Sec-24- Person liable for Registration Compulsorily

Section 22 Person liable for Registration

1. Every Supplier of Goods / Services obtain Registration

➢ State from where taxable Supplies are made
➢ If Aggregate T/o Exceed Specified limit in a financial year

2. Aggregate Turnover:– On all India basis of Person having Same PAN. It Includes
Taxable Supply
Exempt Supply
Export of Goods & Services
Supply to DP having the same PAN
➢ Excludes
• Inward Supplies under RCM Supply
• Taxes including cess under GST

3. Specified limits of Aggregate T/o for Registration

States Limit Limit
Exclusive supply Otherwise
Of Goods
(i) Manipur / Mizoram / Nagaland / Tripura 10 Lac 10 Lac
(MMT-N)
(ii) Arunachal Pradesh / Meghalaya / Sikkim 20 Lac 20 Lac
/ Uttarakhand / Puducherry / Telangana
(Arun-STUMP)
(iii) Other States 40 Lac 20 Lac
Notes
• Person Considered making only Supply of Goods even supply of Services Provided
by way of Interest/Discount
 CA Jasmeet Singh 2

• 40 Lac threshold not available if Person is engaged in making Supplies of following

items
✓ Edible Ice/Ice Cream
✓ PAN masala/Tobacco Products/Substitutes
✓ Fly Ash bricks / Building bricks/ fossil meal bricks/ Earthing roofing tiles
• If Operating from more than one state including Specified State then lower
threshold limit shall be applicable. However if person is engaged in making
exempt supplies from specified state, then lower threshold shall not be applicable
• Registration required to be taken only from state from where taxable Supplies are
made.

Section 24 Compulsory Registration

Compulsory registration is required in following cases even if Turnover doesn’t exceed the
threshold:
(i) Person making Inter State taxable Supply of Goods
Except: limit of 10 lac/20Lac available for Notified Handicraft goods & Handmade
goods Interstate Supply
(ii) Casual taxable Person making taxable Supply
Except: Limit of 10 Lac/2oLac available for Notified Handicraft goods & Handmade
goods Interstate Supply
(iii) Person liable to Pay tax Under RCM (Inward Supplies)
(iv) Non-Resident taxable Person
(v) Eco Required to Collect TCS U/s 52 or liable to pay tax u/s 9(5)
(vi) Person Supplying inter state goods through ECO. (Sec.22 shall be applicable where
person make Intra state supply of goods through ECO)
(vii) Person Required to deduct TDS u/s 51
(viii) Person acting as an agent for taxable Person

Section 23 Person not liable for Registration

(i) Person engaged Exclusively in non-taxable & Exempt Supply

(ii) Agriculturist, to extent Supply of Produce from Cultivation of land
(iii)Person making only RCM Supplies (outward Supplies)
(iv) Person making Inter State Supply of Services upto 20 lac/ 10 lac
(v) Person / CTP making Inter State Supply of notified Handicraft/Handmade goods upto
20 Lac / 10 lac. Provided Person must have PAN & generated E-way bill.
(vi) Person making Supplies Services through ECO (other than Sec-9(5)) with Aggregate
T/o Upto 20 Lac
 CA Jasmeet Singh 3

Special Points– Registration

• GSTIN- Unique No. in GST to identify tax payer as pan in Income Tax
State Code PAN Entity Code Check

• Registration required state wise-not a centralized one.

• More than 1 place in single state then person has option either to take:
a) Separate registration
b) Single registration
• PAN is mandatory for Registration except NRTP can get passport based
Registration
• If one unit in SEZ & another in non SEZ area in Same state then Separate
Registration is Required
• When to apply for Registration
Person Liable to Register Under Section Within 30 days from date of become
22/24 liable to register
Casual taxable Person (CTP) / Non At least 5 days prior to commencement
Resident taxable person of Business

Effective Date of Registration

Liable to Register Voluntary Register


Date of which certificate of
Registration granted
Applied within 30 Not applied
days from liable within 30 days
to Register 
 Date on which
Date on which certificate of
liable to Register Registration
granted

Effective Date of Registration

 CA Jasmeet Singh 4

Procedure of Registration
Declare PAN, Mobile no., Email, state/UT in Part A of GST REG – 01

PAN Validation: From CBDT Database & OTP Based Validation
Mobile no & Email : OTP Based Validation

Temporary Reference no. Generated (TRN)

Use TRN to fill Part B & Provide Specific Documents & Aadhar authentication
Using CTP – Additionally deposit Advance Tax

Acknowledgment generated & application forwarded to proper officer

Note:
Details to be Provided in Part B Includes Bank A/c details. However bank A/c details can be
provided within
a) 30 days from Date of Grant of Registration
b) before filing of GSTR- 1/ IFF – whichever is earlier
If such RP fails to furnish bank details within the time prescribed above then his registration
shall be stand suspended and suspension shall be automatically revoked when valid bank
details are furnished.
However Following Person is required to provide Bank Details at the time of registration
a) TDS deduction
b) TCS Collector
c) Dept Driven Registration
 CA Jasmeet Singh 5

Registration

Application + AA opted Application + AA not opted

AA successfully Done AA failed to do D ate of Application Date of application

15 day from date
within 15 dats within 15 days of application date of submission

No deficiency in Deficiency in No deficiency in Deficiency in

Application Application Application Application

Grant Registration Notice within 7 Physical examination Notice within 30 day

within 7 working working days of place of Business from application
days [If not deemed calcification by or Clarification by
Registered from applicant within Verification of such applicant within
7th day] 7 days for notice Doc Grant registration 7 working days
with in 30 days

P.O. Satisfied P.O. Not Satisfied If not, considered P.O. Satisfied P.O. Not Satisfied
demed Reg. from
Grant Reg. within 7 Rejected
Grant Reg. within 7 Rejected 30th day of
working day
working day application

[Otherwise considered registered

from 7th working day]

Registration certificate to be issued in form GST REG – 06 showing Principal & Additional
place of business.
Aadhar Authentication:
Taxable Person applicant Aadhar Authentication of
Individual Himself
Other than Individual Karta/MD/WTD/Partner/Board of trustee
& Authorized Signatory

Special Provisions Related to CTP/NRTP:

CTP NRTP
A Person who occasionally undertake A Person who occasionally undertake
transaction transaction
• In state / UT where he has no PoB But no fixed POB or Residence in India
• In course or furtherance of Business
 CA Jasmeet Singh 6

Registration: Registration:
Compulsory Registration U/s 24 Compulsory Registration u/s 24
Form REG -01 Form REG – 09
PAN required Passport Required
Registration 5 Days before comment of Registration 5 Days before comment of
Business Business
Composition Scheme → Not available Composition Scheme → Not available
ITC on Input/Services/Capital Goods available ITC only on Imported Goods
Required to submit Advance tax at time of submitting application

Registration Valid for:

a)Period for which reg is seek
OR
b) 90 Days
(Further extendable by 90 days)

Section 28 - Amendment of Registration

a) Non-core fields: Email Id, Mobile no, Authorised Signatory etc

b) Core fields:
• Legal Name of Business
• Address of Principal/Additional Place of Business
• Addition /Detection in main patterner/ Karta/MD/BOD etc
c) Submit application within 15 days from change
i. For Core Areas on GST common Portal. PO may permit Amendment within 15 days from
application
ii. For Non-Core areas, Amendment to be made on GST Portal without permission of PO
by doing OTP verification
d) Amended Registration Certificate granted
e) If there is change in the constitution (i.e. change in PAN) or change in state then existing
registration shall be cancelled and new registration has to be taken.

Cancellation of Registration

1. Voluntary Cancellation (By registered Person)

Circumstance to cancel Registration (Apply within 30 days)
a) Business Discontinued / Transferred / Armed Granted / Merger / Demerger /
Disposal / Death of properties
b) Change in Constitution of Business
c) No Longer liable to register u/s 22 or 24
d) Opt out of voluntary Registeration
 CA Jasmeet Singh 7

2. Circumstance when POcancel Registration:

a) Registration obtained by Means of Fraud/willful misstatement/supersession of
facts
b) Voluntary Registration person not commenced business within 6 months from
Registration
c) Not File return by composition supplier beyond 3 months from due date.
d) Not file return by normal supplier
i) Monthly Return - For continuous 6 months
ii) Quarterly return - For 2 tax periods
e) If contravened following Provisions:
i) Doesn’t conduct Business from Registered place
ii) Violate Provision of anti-Profiteering
iii) Doesn’t Provide Bank A/c details within time
iv) Issue Invoice / Bill without supply of Goods & Sources
v) Avail ITC in Violence of Act
vi) Violates rule 86 B (Maximum ITC allowed 99%)

Suspension of Registration

1. While Pendency of cancellation proceeding, registration shall be suspended. Suspension

shall come into force as follows:
Scenario Effective Date of Suspension
Registered Person applied for cancellation Date of Submission or
Date from which cancellation Sought
- Whichever is later
PO cancelling registration Sou-Moto Date determined by Proper officer

2. While registration suspended, such person shall not allowed to:

a) make taxable supply (i.e. shall not issue Tax invoice)
b) Shall not furnish any return
3. On completion of cancellation proceedings, suspension shall be revoked with effect
from suspension date (Provision of revised tax invoice & first return applicable)
 CA Jasmeet Singh 8

Procedure for Revocation of Cancellation (By Dept)

Apply within 90 days from order of cancellation

(can be extended – 180 day by AC/JC )

If PO is satisfied with the application then

Revoke Cancellation Within 30 days of application.

Otherwise issue SCN

Satisfied with Reply then revoke cancellation otherwise reject the application

UIN – Unique Identification Number

1. Who shall apply:

• Specialized Agency of UN or any financial institution of UN
• Consulate
• Embassies

2. Purpose- To obtain refund of tax paid on Supplies of GIS supplied to them

Note:
• It is Centralized number not state wise
• UIN Holder not registered person hence not taxable
 CA Jasmeet Singh 1

E-WAY BILL
1. Background
• In normal sense way bill is a receipt or document by carrier giving details of
shipment including details of consignor / consignee and origin / destination.
• E-way bill is a electronic document generated on GST portal to intimate the govt
regarding movement of goods.
• E-way bill is generated before the commencement of movement of goods.
• E-way bill is generated in form GST-EWB-01 on common portal.

2. When E-way Bill needs to be Generated

• Every registered person who cause movement of goods, where consignment value
exceeds 50,000/- [Including GST excluding exempt supply]
➢ In relation to supply.
➢ For reason other than supply.
➢ Inward supply from unregistered person.
• E-way bill required compulsory irrespective of consignment value.
➢ Inter state transfer of Goods by Principal to Job worker.
➢ Inter state transfer of handicraft goods by person exempt from obtaining
registration.

3. Who Will Generate E-Way Bill

Part Details Person Responsible
Part-A Details of Goods Person causing movement
supplied GSTIN of • Reg. Supplier & undertake transport→
supplier & recipient, Supplier.
place of dispatch & • If recipient arranges transport –
delivery, doc no., date, Recipients.
value etc. • Unregistered supplier to registered
recipient – Recipients.
• Transporter, E-commerce, courier agency,
if authorized by consignor.
Part B Transporter details, • In case transport through road by
Transport Doc no. transporter→Transporter
Vehicle No. • Transport in own conveyance/hired
conveyance/ public transport→ Person
causing movement
• Transport through
• rail/air/vessel→Person causing movement
 CA Jasmeet Singh 2

In case Bill to Ship to Model

As there are 2 supplies involved but single movement of goods involved. Single E-way
bill need to be generated in such case. Supplier or intermediate supplier can generate
E-way bill.

❖ Normally E-way bill valid only if Part-B is filled.

Exception
Goods transported for distance upto 50 km within State/UT.
➢ Consignor place to transport place.
➢ Transporter place to consignee place.

4. Process of E-way bill Generation

Part A filled with consignor / consignee [slip generated and temporary no. generated].

Part-B – Transporter / supplier fill details.

Generation of E-way bill.
Transportater needs to take enrollment on e-way bill portal if unregistered called
transporter ID (similar to GSTIN). However, if transporter is registered and registered
in more than 1 state then he may for unique enrollment number by submitting details
of All GSTIN.

5. Validity period of E-way bill.

Transportation Through Validity Period
Normal Cargo 1 Day for every 200 km or part thereof
In case of over dimension cargo 1 Day For every 20 km or part thereof
or multimodel shipment in which
atleast one leg involves transport
by ships
Note: Date of E-way bill generation period shall be counted from mid-night day on
which bill generated.
i.e. E-way bill generated 2.00 pm of 19th april for Journey of 500 km so validity would
be 3 days, from 12.00 am of 19-20 april that is 12.00 am of 22-23 April.

6. Transfer / Extension / Cancellation

• In case of transfer of goods from one conveyance to another.
Person making movement / transporter can update conveyance details in Part-B (any
no. of times).
• E-way bill can’t be edited / modified it can be cancelled.
• Cancellation of E-way bill.
Goods not transported or not transported as per details.
E-way bill can be cancelled within 24 hours of generation.
 CA Jasmeet Singh 3

7. Blocking of E-way Bill

Following person can be blocked from generating E-way bill (as a supplier) [No
registration on inward supplies].
• Composition tax Payer not furnished statement for 2 consecutive quarter.
• Regular tax payer not furnished return for 2 tax periods.
• Regular tax payer not furnished GSRT-I for 2 consecutive month / quarter.
• Whose registration suspended.
Commissioner may allow generating E-way bill.

8. Situation where E-way bill not required

i) Transport of specified goods.
➢ LNG for supply.
➢ Kerosene oil for PDS.
➢ Postal baggage by postal department.
➢ Pearls, semi precious, precious stones.
➢ Jewelry gold / silver smith except imitation jewelry
➢ Currency
➢ Used personal / household effect
➢ Coral – worked / unworked
ii) Transport on non-motioned vehicle.
iii) Goods transported except from GST
iv) Alcoholic liquor for human consumption, 5 petroleum product.
v) Goods transported to \ form Nepal \ Bhutan.
vi) No supply item under schedule-III.
vii) Movement of goods by Defence Ministry.
viii) CG \ SG \ LA for transport of goods by rail.
ix) Empty cargo container.
x) Empty cylinder for packing LNG other than supply
xi) Goods transported within 20 km from weight.
xii) Good transportation
➢ From custom part / airport to ICD / CFS.
➢ ICD / CFS to port / airport / custom start on.
 CA Jasmeet Singh 1

Accounts & Records

Accounts & Records to be maintained by various person

Accounts & Records To Be maintained

The Following items of true & correct accounts shall be maintained

Production or manufacture of Goods
Inward Supply of Goods / Services
outward Supply of Goods / Services
Stock of Goods Following items not required to be maintained by
Input tax Credit composition taxpayer
Output tax payable & paid

Accounts to be maintained by specific person

Person Records to be maintained

Manufacturer monthly Production A/C Showing Quantitative Details of Inputs
used & Quantitative Details of Goods Produced Including Waste
Service Provider Quantitative Details of Goods used in Provision of Service Including
Input Services utilised s Supplied
Agent ➢ Authorisation Received by him from each Principal to Receive /
supply goods
➢ Particulars Including Description, Value, Quantity of Goods
Received / Supplied on Behalf of Principal
➢ Details of Accounts Statement Issued to Principal
➢ Tax Paid on Reciept/ Supply of Goods/services on behalf of
Principal
Work contractor ➢ name & address of person on whose behalf work executed
➢ details of goods received i.e. description, quantity, value
 CA Jasmeet Singh 2

➢ Details of goods/sevice utilized i.e. description/ quantity/value

➢ Details of payment received
➢ Name & address of supplier from whom goods/services have
been received.
Godown| ➢ Book of accounts for period during which goods remained in
warehouse| owner| warehouse including dispatch, receipt movement, disposal
transporter ➢ Records of goods transport, delivered & goods stored along
operator with GSTIN of consignor & consignee
➢ if transporter / warehouse owner/ operator is not already
registered, still have to keep records
➢ Obtain unique Enrollment no.
Custodian/ clearing ➢ Detail of goods handled on behalf of registered person and
and forwarding ➢ Provide details whenever registered by proper office
agent

Manner of maintaining Accounts & Records

• Books can be stored in electronic mode as well as authenticated through digital

signature
• Proper backup should be maintained in case destruction of records
• Records should not be erased/overwritten
• Audit trails to be maintained for any change or edit in data

Period of Retention of Records

• 72 months from due date of annual rectum of F.V. to which records relates
• If Registered person is subjected to any appeal / Proceeding/court case etc. till:-
➢ 1 year from disposal of Such appeal | proceeding | case or
➢ 72 month from Due date of Annual Rectum
Whichever is Later
 CA Jasmeet Singh 1

Tax Invoice / Dr. Note /Cr. Note

1. Time Limit for Issue of Invoice – Time of Supply Chapter
2. HSN Code – Code Used to Identify Goods / Services (8 Digit Code)
Supplies T/o in Preceding FY No. of Digit to mention on
Invoice of HSN code
Aggregate Turnover  5 crore B2C Supply – 4 Digit
B2C Supply – 4 Digit (Optional)
Aggregate Turnover > 5 crore 6 Digit

3. No. of Copies of Invoices/Delivery Challan to be issued

Taxable Supply of goods ⇒ 3 copies

Taxable Supply of service ⇒ 2 copies

4. Registered Person may not Issue tax Invoice if following 3 Conditions fulfilled:
• Value of Supply is less than 200/–
• Recipient is unregistered
• Recipient doesn't Require invoice
for these type of supplies during the end of the day a Consolidated Invoice can be
raised
however above provisions are not applicable to Service through admission to exhibition/
cinema/multiplex.

5. Bill of Supply
Composition Supplier and the Supplier of Exempted Goods shall not allowed to issue tax
invoice. Instead they issue Bill of supply.

6. In Case Supplier making taxable & Exempt Supplies together

No need to issue Separate tax Invoice for taxable as well as Exempt Supply. Supplier can
issue Invoice Cum Bill of supply

7. For Receipt of Advance – Receipt Voucher

for Refund of Advance – Refund Voucher

8. At the time of Receipt of advance

• rate of tax not determinable – @ 18%
• nature of Supply not determinable – Inter State Supply
 CA Jasmeet Singh 2

9. E-Invoicing [Invoices / Debit Note / Credit Note]

• Supplier is notified Person
• Supply is B2B or Export [even to Unregistered]
• Notified Person– Registered Person having Aggregate T/o > 5 cr [In any Preceding FY
from 2017-18 Onwards]
• E-invoicing doesn't mean generating Invoice on Govt. Portal its just Reporting Invoice
on Govt. Portal (Invoice Registration Portal) "IRP"
• E-Invoicing Not applicable on following:
i) Input Service Distributor (ISO)
ii) SEZ units (not developers)
iii) Insurance / Bank / Financial institution / NBFC
iv) Goods transporter agency (GTA)
v) Passenger transportation services
vi) Admission to Exhibition, Cinema, Multiplex
vii) Govt. Department Local authority

• However If E-Invoicing applicable and RP doesn’t issue E-invoice then it shall be

Considered that no Invoice has been Issued (i.e. normal invoice shall not be
considered as valid invoice)

10. E-Invoicing In Case of Supplies under RCM

• Supplier is a notified person → E-Invoicing Applicable
• Supplier is URP & Recipient is notified person → E-Invoicing Not applicable

11. Revised Tax Invoice

Every Registered Person who been granted Registration Certificate from retrospective
effect, Shall Issue "Revised tax invoice" (within 1 month from Date of Issue of
Registration Certificate. For Period from effective date of registration to the date of
receipt of registration certificate.
Eg. Person Crossed TO of 20lac on 02/04/24 he applied for Registration on 25/04/24 &
Granted Registration Certificate on 04/5/24.
A Shall Issue Revised tax Invoice till 03/6/24 for Period 02/04/24 – 25/04/24.

12. Consolidate Revised tax Invoice can be issued only if

• Inter State B2C is less than Rs. 250000 → State wise consolidated invoice
• Inter State B2C is Rs 250000 or more → Recipient wise consolidated invoice
• Intra state B2C (for any value) → Consolidated Invoice

13. Document other than Tax Invoice Permitted

Supplier
1. Insurance / Banking co. / F2 / NBFC • Monthly Statement can be issued
 CA Jasmeet Singh 3

2. GTA for transport of Goods through • Gross weight of consignment

road • Name of Consignor /consignee
• Registration no. of Carriage
• Details of Goods
• GSTIN of Payee
• Other Info Same as Tax invoice
3. Passenger transportation Tickets can be issued
4. Service by way of Admission to E-ticket cam be issued
exhibition / cinema / multiplex

14. Credit Note

In following cases credit note get issued
• Supplier Declared Value > Actual Value of Supply
• Supplier declared High tax rate than applicable
• Quantity Received lower than Quantity mentioned in invoice
• Quality of Supplied Goods Services not satisfactory hence required Partial / total
Reimbursement of Invoice Value
• Advance Received & Invoice issued, now Re-finding amount
• Credit note Issued by Supplier will reduce his tax Liability.

Declaration of credit note in Return.

Any Registered Person who issues credit note shall declare details of such Credit note in
return of month in which Credit note issued but not later than
➢ 3oth of November following end of FY to which original supply Relates
➢ Date of furnishing Annual Return
Whichever is earlier

15. Debit Note

In following Cases Debit note get issued
• Supplies Declared Value < Actual Value of Supply
• Supplier declared Low tax rate than applicable
• Quantity Received higher than Quantity mentioned in invoice
• Debit note Issued by Supplies will Increase his tax Liability
• Declare in Return of month in which Debit note issued
[No maximum time limit in Case Debit note]
 CA Jasmeet Singh 1

Payment Of Tax
Ledgers on Common Portal
❖ Electronic Cash ledger – Cash Balance with GST Dept.
❖ Electronic Credit Ledger – Credit Balance with GST Dept.
❖ Electronic Liability Ledger – Liability with GST Dept.

Electronic Cash Ledger

How to Deposit tax in Cash Ledger

Notes
❖ Only E-Challan allowed, Validity 15 days
❖ Deposit made Pay Liability will be Credited to Cash ledger, can be used to pay any
liability
❖ Amount available in one major head/minor head can be transferred to Other
major/minor head using form GST PMT-09 if available.
❖ A Registered Person can transfer any amount of Sum available in Cash ledger to
Distinct Person's Cash ledger. Only if Such Registered Person doesn't have any liability
in E-Liability Ledger.
❖ Over the Counter maximum 10000 can be Deposited
Except:-
➢ Govt. Department or person notified by Commissioner
 CA Jasmeet Singh 2

➢ P.O. authorised to recover dues from Person including recovery through Sale of
Property during investigation etc.
➢ Any refund claimed from Cash ledger Debited to cash ledger & if Rejected, amount
debited earlier shall be Credited again to Cash ledger.

Electronic Credit Ledger

➢ Amount Credited to credit ledger on availment of credit in return
➢ Amount in Credit ledger Can be utilised to pay "output tax". [Hence can't be used to
Penalty, Interest & Liability under RCM]
➢ RCM payable on inward supply is paid through → El. Cash Ledger.

Electronic Liability Ledger

Order of discharge of tax & other dues
➢ Self Assessed tax & other dues for Previous tax Period
↓
➢ Self Assessed tax & other due for Current Period
↓
➢ All dues including demand determined u/s 73 & 74.

Section 50 Interest On Delayed Payment

If GST Return and Tax Both are delayed
Int u/s 50 = (Output Liability – ITC) x 18% x Delayed Days / 365

If Tax is paid after filling of GST return or Due to demand u/s 73/74
Int u/s 50 = Output Liability x 18% x Delayed Days / 365

Utilisation Of Wrongly Availed ITC

Int u/s 50 = Excess ITC Utilised x 18% x Delayed days / 365

Excess ITC Utilised = ITC Wrongly Availed – ITC Balance in Credit Ledger