GST -4 & 5

IMPORTANT DEFINITION
SEC : 2(11) : ASSESSMENT : means determination
of tax liability under this Act and includes
self-assessment, re-assessment, provisional
assessment, summary assessment and
best judgment assessment;
 IMPORTANT DEFINITION
⦿ Sec 2(17), “business”
⦿ (a) any trade, commerce, manufacture, profession, vocation, adventure, wager or
any other similar activity, whether or not it is for a pecuniary benefit;
⦿ (b) any activity or transaction in connection with or incidental or ancillary to
sub-clause (a);
⦿ (c) any activity or transaction in the nature of sub-clause (a), whether or not there is
volume, frequency, continuity or regularity of such transaction;
⦿ (d) supply or acquisition of goods including capital goods and services in
connection with commencement or closure of business;
⦿ (e) provision by a club, association, society, or any such body (for a subscription or
any other consideration) of the facilities or benefits to its members;
⦿ (f) admission, for a consideration, of persons to any premises;
⦿ (g) services supplied by a person as the holder of an office which has been accepted
by him in the course or furtherance of his trade, profession or vocation;
⦿ (h) services provided by a race club by way of totalisator or a licence to book maker
in such club ; and
⦿ (i) any activity or transaction undertaken by the Central Government, a State
Government or any local authority in which they are engaged as public authorities;
 IMPORTANT DEFINITION
⦿ Sec 2(31), “consideration”
⦿ consideration” in relation to the supply of goods or services or both
includes––
⦿ (a) any payment made or to be made, whether in money or
otherwise, in respect of, in response to, or for the inducement of,
the supply of goods or services or both, whether by the recipient or
by any other person but shall not include any subsidy given by the
Central Government or a State Government;
⦿ (b) the monetary value of any act or forbearance, in respect of,
in response to, or for the inducement of, the supply of goods or
services or both, whether by the recipient or by any other person
but shall not include any subsidy given by the Central Government or
a State Government:
⦿ Provided that a deposit given in respect of the supply of goods or
services or both shall not be considered as payment made for such
supply unless the supplier applies such deposit as consideration for
the said supply;
 IMPORTANT DEFINITIONS
⦿ SEC : 2 (32) CONTINOUS SUPPLY OF GOODS ; means a supply
of goods which is provided, or agreed to be provided,
continuously or on recurrent basis, under a contract,
whether or not by means of a wire, cable, pipeline or other
conduit, and for which the supplier invoices the recipient
on a regular or periodic basis and includes supply of such
goods as the Government may, subject to such conditions,as it
may, by notification, specify;

⦿ SEC : 2(33) CONTINUOUS SUPPLY OF SERVICES means a

supply of services which is provided, or agreed to be
provided, continuously or on recurrent basis, under a
contract, for a period exceeding three months with periodic
payment obligations and includes supply of such services as
the government may, subject to such conditions, as it may,
by notification, specify;
 IMPORTANT DEFINITIONS
⦿ SEC : 2(44) : ELECTRONIC COMMERCE
means the supply of goods or services or both
including digital products over digital or
electronic network.
⦿ SEC : 2(47) : EXEMPTED SUPPLY means
supply of any goods or services or both which
attracts nil rate of tax or which may be
wholly exempt from tax under section 11, or
under section 6 of the Integrated Goods and
Services Tax Act, and includes non-taxable
supply;
 IMPORTANT DEFINITIONS
⦿ SEC : 2(52) GOODS means every kind of
movable property other than money and
securities but includes actionable claim
(choice of repurchase the property onace
again), growing crops, grass and things
attached to or forming part of the land
which are agreed to be severed before
supply or under a contract of supply;
⦿ SEC : 2(67) : INWARD SUPPLY in relation to a
person, shall mean receipt of goods or
services or both whether by purchase,
acquisition or any other means with or
without consideration;
 IMPORTANT DEFINITIONS
⦿ SEC : 2(78) : NON-TAXABLE SUPPLY :
⦿ Means a supply of goods or services or both
which is not leviable to tax u/a or u/ IGST
act.
⦿ SEC : 2(79) NON-TAXABLE TERRITORY :
means the territory which is outside the
taxable territory.
 IMPORTANT DEFINITIONS
⦿ SEC :2 (84) “person” includes—
⦿ (a) an individual;
⦿ (b) a Hindu Undivided Family (HUF);
⦿ (c) a company;
⦿ (d) a firm;
⦿ (e) a Limited Liability Partnership;
⦿ (f) an association of persons or a body of
individuals, whether incorporated
⦿ or not, in India or outside India;
⦿ (g) any corporation established by or under any
Central Act, State Act or
⦿ Provincial Act or a Government company as
defined in clause (45) of section 2 of
⦿ the Companies Act, 2013;
 IMPORTANT DEFINITIONS
⦿ SEC : 2(90) 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;
⦿ SEC : 2 (93) RECIPIENT of supply of G/S or both, Means:-
⦿ (a) where a consideration is payable for the supply of goods or
services or both, the person who is liable to pay that
consideration;
⦿ (b) where no consideration is payable for the supply of goods, the
person to whom the goods are delivered or made available, or
to whom possession or use of the goods is given or made
available; and
⦿ (c) where no consideration is payable for the supply of a service,
the person to whom the service is rendered, and any reference to
a person to whom a supply is made shall be construed as a
reference to the recipient of the supply and shall include an
agent acting as such on behalf of the recipient in relation to
the goods or services or both supplied;
 IMPORTANT DEFINITIONS
⦿ SEC :2 (102) “services” means anything other
than goods, money and securities but
includes activities relating to the use of
money or its conversion by cash or by any
other mode, from one form, currency or
denomination, to another form, currency
or denomination for which a separate
consideration is charged;
 IMPORTANT DEFINITIONS
⦿ SEC : 2(107) “taxable person” means a
person who is registered or liable to be
registered under section 22 or section 24;
⦿ SEC : 2(108) “taxable supply” means a
supply of goods or services or both which is
leviable to tax under this Act;
⦿ SEC : 2(109) “taxable territory” means the
territory to which the provisions of this Act
apply;

⦿ Other relevant definition.

 DEFINITION OF SUPPLY/ LEVY OF
COLLECTION OF TAX
Definition of ‘supply’ Under section 7 ‘supply’
includes all forms of supply of goods and/or
services such as
⦿ sale,
⦿ transfer,
⦿ barter,
⦿ exchange,
⦿ license,
⦿ rental,
⦿ lease
⦿ disposal made or agreed to be made for a
consideration by a person in the course or
furtherance of business.
Schedule I specified the supply.
 SUPPLY WITHOUT CONSIDERATION
IS TAXABLE (SCHEDULE-I)
⦿ Permanent transfer or disposal of business assets – Input
tax Credit already availed for such assets.
⦿ Supply of goods or services between the related persons or
distinct persons ( person who has register in more than
one state or UT, person has establishment at one state
and registration obtained in some other State) with
regard to section 25 of CGST Act,2017
⦿ Any gift given by employer to employee (not exceeding
50,000)
Supply of goods:-
⦿ Agent supply or receive the goods on behalf of principal.
⦿ Principal supply or receive the goods on behalf of Agent.
⦿ Import the taxable services from a related person (any of
his other establishments outside India). It must be happen
during course furtherance of business.
DIFFERENCE BETWEEN THE MIXED
AND COMPOSITE SUPPLY
 DIFFERENCE BETWEEN THE MIXED
AND COMPOSITE SUPPLY
⦿ Two or more individual ⦿ Two or more taxable
goods/services sale supply naturally
together by taxable bundled goods/services
person in single price. (each goods cannot be
(each goods may sale separately) :
separately constitute ordinary course of
supply.) business.
⦿ Tax treatment : highest ⦿ Tax treatment :
rate of tax applicable principal goods tax rate
for all goods. applicable for all goods.
⦿ Above the supplies can ⦿ above supplies cannot
be individual. be supplied individually.

MIXED SUPPLY (sec(2(74)) COMPOSITE SUPPLY(2(30))

 NIKHIL COMFORTS, (AAR-MAHAHRASHTRA)
(2019) 107TAXMANN.COM 223
⦿ Assessee is a person who supply/Installation/Erection
and assembly of complete Air conditioning plant.
Assessee supply end by selling AC and above the
works also. But, it is also nature of works contract.
AAR held that, activities which are forming part of
business and basic charge of business is AC (principal
goods). Works contract can be isolated but, this
business transaction cannot be individual. So, assessee
supply is termed as composite supply at the rate of
28%.
 SUPPLY NOT INCLUDES
Activities and transactions specified in Schedule III –
⦿ Services by an employee to the employer in the course of or
in relation to his employment;
⦿ Services of funeral, burial, crematorium or mortuary
including transportation of the deceased.
⦿ Actionable claims, other than lottery, betting and
gambling
⦿ Such activities or transactions undertaken by the Central
Government, a State Government or any local authority
in which they are engaged as public authorities, as may
be notified by the Government on the recommendations of
the Council.
⦿ Act of court or tribunal in acting judicially.( Time being in
force)
 DEEMED SUPPLY OF GOODS &
SERVICES (SCHEDULE-II)
⦿ 1.In case of Transfer of title in goods, OR,
Right in goods, OR of undivided share in goods
without the transfer of title, OR, transfer under an
agreement which stipulates that property will pass
at a future date upon payment of full
consideration
⦿ 2.In case of Land & Building, – Any lease,
tenancy, easement, license to occupy land or
building ( both for commercial or residential
complex for commercial purpose, fully or partly)
 DEEMED SUPPLY OF GOODS &
SERVICES
⦿ 3.Treatment or Process , which is being applied
to another person’s goods is a supply
⦿ 4.Transfer of Business Assets – Where goods
forming part of the assets of a business are
transferred or disposed of, and are no longer
forming part of business OR Where goods held
for business are put to use for any private use, in
such a way, as not for business OR Where any
person ceases to be a taxable person, any goods
earlier forming part of business, unless
⦿ (a) the business is transferred as a going concern
to another person, or
⦿ (b) the business is carried on by a personal
representative who is deemed to be a taxable
person With or Without for a Consideration
 DEEMED SUPPLY OF GOODS &
SERVICES
5.Supply of Services –
⦿ renting of immovable property;
⦿ construction of a complex, building, civil structure
or a part thereof, including a complex or building
intended for a sale to a buyer, wholly or partly,
except where the entire consideration has been
received after issuance of completion certificate;
⦿ Temporary transfer or permitting the use or
enjoyment of any IPR;
DEEMED SUPPLY OF GOODS & SERVICES
6.Composite Supply –
⦿ works contract as defined in section 2 (119)
of CGST Act
⦿ Supply, by way of or as part of any service or
in any other manner whatsoever, of goods,
being food or any other article for human
consumption or any drink ( other than
alcoholic liquor for human consumption),
where such supply or service is for cash,
deferred payment or other valuable
consideration.
 DEEMED SUPPLY OF GOODS &
SERVICES
7.Supply of goods – supply of goods by any unincorporated
association or body of persons to a member thereof for cash,
deferred payment or other valuable consideration.
⦿ Inward Supply or Purchases– purchase, acquisition or any
other means and whether or not for any consideration
⦿ Outward Supply or Sales – transfer, barter, exchange,
license, rental, lease or disposal made or agreed to be
made by such person in the course or furtherance of
business
⦿ Continuous Supply – Means a supply of services which is
provided, or agreed to be provided, continuously or on
recurrent basis, under a contract, for a period exceeding
three months with periodic payment obligations and
includes supply of such services as the Government may,
subject to such conditions, by notification, specify.
TIME OF SUPPLY
 TIME OF SUPPLY GOODS AND
SERVICES
⦿ Time of supply for goods:-
◼ Date of issue of invoice
◼ Last date on which invoice should have
been issued.
◼ Date of receipt of advance/ payment.
⦿ Time of supply for services:-
◼ Date of issue of invoice.
◼ Date of receipt of advance/payment.
◼ Date of provision
 GST REVERSE CHARGE
⦿ Taxability : Exempted up ⦿ Goods : Cashew, Tendu,
to Rs : 5,000 per day. Lottery, Silk yarn, Tobacco.
(more than Rs: 5000 ⦿ Services : Advocate,
means, full value is taxable Arbitral, Sponsors of Govt.,
under Reverse charge) director, Insur-recovery
agent, Copyright)

⦿ Self invoice & payment

⦿ Payment voucher for each
voucher. It should be
entry. Self invoice (dealing
prepared by monthly basis.
with unregister person)

SUPPLY BY UNREGISTERED PERSON

SPECIFIED SERVICES OR GOODS
TO REGISTERED PERSON (SEC-9(4))
 TIME OF SUPPLY FOR REVERSE
CHARGE (SERVICES)

⦿ Date of payment
⦿ Goods :30 days from the
date of issue of invoice.
⦿ Services :60 days from the
date of issue of invoice
PLACE OF SUPPLY OF GOODS AND
SERVICES
 PLACE OF SUPPLY OF GOODS AND
SERVICES (SEC-10 OF IGST)
⦿ Place of delivery of goods.
⦿ Ownership of goods changes.
⦿ No movement of goods, location of goods may
identified through the time of delivery to the recipient.
⦿ PLACE OF SUPPLY OF SERVICES :-
⦿ location of service recipient.
⦿ A situation, service provided to the unregistered dealer,
the service provider place is take into account.
⦿ SPECIFIED SERVICES :-
⦿ Services related to immovable property.
⦿ Restaurant services, Admission to events,
transportation of goods and passengers, telecom
services, banking, financial and insurance services.
 PLACE OF SUPPLY OF GOODS
:IMPORT OR EXPORT (SEC-11 OF
IGST)
⦿ Import : location of
importer.
⦿ Export : location of exporter.
⦿ Sec-12 : place of supply of
services (location of supplier
or recipient in India)
 LOCATION OF SUPPLIER OR
RECIPIENT IS OUTSIDE IN
INDIA(SEC-13)
⦿ If the person unable to find out the recipient of
service, supplier location is considered as place of
supply.
⦿ Physical location : the place where the service is
available to the service recipient.
⦿ Electronic supply : place of goods located at the
time of supply.
⦿ Any goods imported for temporary period and
again exported (repairs)
⦿ Physical presence of recipient or person who
acting on behalf of him.
 LOCATION OF SUPPLIER OR
RECIPIENT IS OUTSIDE IN
INDIA(SEC-13)
⦿ Immovable property : expert, estate agent, hotel
accommodation, guest house or club or campsite,
any other right to use immovable property. Any
work with regard to construction, architects or
interior decorators.
⦿ Place of supply : admission or organisation of a
cultural, artistic, sporting, educational,
entertainment event or celebration , conference ,
fair, exhibition or similar events, or any other
ancillary services or admission or organisation .
⦿ Above the supply should be at taxable territory.
 LOCATION OF SUPPLIER OR
RECIPIENT IS OUTSIDE IN
INDIA(SEC-13)
⦿ Location of supplier as place of service:-
⦿ Banking and non-banking company or financial
institution.
⦿ Intermediary services.
⦿ Hiring of transport or yachts. But, excluding
aircrafts and vessels (up to 1 month).
⦿ Supply of goods through mail or courier (place of
destination of such goods)
VALUATION OF SUPPLY UNDER CGST
 VALUE OF SUPPLY OF GOODS/
SERVICES
⦿ The amount which is wants to
collect from the buyer.
⦿ The amount collected from buyer.
⦿ Transaction take place between the
related parties (transaction value
ascertain through the market price)
DISCOUNT VALUATION OF SUPPLY
 INPUT TAX CREDIT
⦿ ITC of GST paid shall be allowed to
both parties.
⦿ ITC will not applicable, when the
goods supplied by the composition
dealer to the recipient. The reason is
the composite supplier cannot avail
the input tax credit.
 BARTER AND EXCHANGE
TRANSACTION VALUE
⦿ Barter or Exchange shall treated as two
different supplies.
⦿ Invoice should be issued by both the
parties as consumer and seller.
⦿ Value of goods may not ascertain through
money. But, value of consideration may
identify through the open market value
of goods.
CLASSFICATION OF GOODS
BENEFITS OF CLASSFICATIONS
⦿ Classification : a systematic arrangement in groups or
categories according to established criteria.
⦿ Liveability of tax : identify the taxable and
non-taxable.
⦿ Goods-vs- Services : difference the goods and
services with time, place and value of supply.
⦿ Exemptions: policy decision of Government based on
the socio economic factors.
⦿ Rate of tax : Govt., ensure burden of tax and it would
not affect revenue of Govt.,
⦿ Standardization an avoiding differentiation : Govt,
collect the data various traders and industries. Get
some uniformity.
VARIOUS STEPS IN CLASSIFICATION OF
GOODS AND SERVICES
⦿ Legislation
⦿ Definition of Goods and services
⦿ Activities listed in schedule-II (deemed supply)
⦿ Activities listed in schedule-III (negative supply)
⦿ Identification of mixed or composite supply.
⦿ Identification of HSN code from the rate of
notification.
⦿ Applicability of principles under notification
under Customs Tariff Act, 1975 (No 01/2017
dated 28.6.17)
⦿ Understanding service code with Notification no
11/2017 dated 28.6.17
VARIOUS STEPS IN CLASSIFICATION OF
GOODS AND SERVICES (LEGISLATION)
⦿ CGST, 2017 (Charging section :9(1))
⦿ SGST, 2017 (Charging section :9(1))
⦿ IGST, 2017(Charging section :5(1))
⦿ UTGST,2017 (Charging section :9(1))
⦿ THE GOODS AND SERVICE
TAX(COMPENSATION TO STATES)
ACT,2017
 CLASSFICATION OF GOODS AS PER
NOTIFICATION NO 01/2017-CT DATED
28.06.2017

⦿ Notification divided into 6 schedule :-

⦿ Schedule :I :2.5%
⦿ Schedule :II : 5%
⦿ Schedule :III : 9%
⦿ Schedule :IV : 14%
⦿ Schedule :V : 1.5%
⦿ Schedule :VI : 0.125%
⦿ Those schedule contain the nature of goods
and rate of tax.
HSN CODE FOR CLASSIFICATION OF
GOODS
HOW TO FIND THE TAX LIABILITY
OF GOODS
HOW TO FIND THE TAX LIABILITY
OF SERVICES
PRINCIPLES OF CLASSIFICATION OF
SERVICES
⦿ Goods classification cannot applicable for services.
⦿ Central product classification by United Nations
Statistical commission as same as our Notification no
11/17-ct dated 28.6.17.
⦿ document issued by Department of Economic and
Social Affairs (Statistical Division) of United Nations
in 2015 titled “Central Product Classification-Version
2.1.
⦿ CPC consist of classification of international agreed
concepts, definitions, principles and classification
rules. If contains domestic, foreign commodity trade,
International trade in services.
⦿ Classification promotes harmonization of various types
of statistics related to goods and services.
 PRINCIPLES OF CLASSIFICATIONS
CPC RULES
⦿ Any goods must fit under the cpc
structure. The categories are
homogeneity in nature.
⦿ Cpc classifies service based on the
service or principle of industrial origin.
⦿ Services which are dealt under industrial
origin, input structure, technology and
organization of characteristics of
services.
INPUT TAX CREDIT
 ELIGIBIITY AND CONDITION FOR TAKING
INPUT TAX CREDIT (SEC-16 OF CGST)
⦿ Input tax credit means, the credit of input tax.
(sec-2(63 of CGST)
⦿ Every register person incudes input service
distributor.
⦿ Debit note holder (commercial document issued by
a seller as a means of formally requesting a credit
note)
Note :
⦿ No claim for any fraud, wilful misstatement or
suppression of facts.
 ELIGIBIITY AND CONDITION FOR TAKING
INPUT TAX CREDIT (SEC-16 OF CGST)
⦿ Non-registration person also claim at following
circumstances :-
◼The person who is acting on behalf of
registered person of working under the
direction of registered person.
◼ any self assessed return may filed on behalf
of registered person (sec-41)
⦿ When the receipt is following the reverse charge
without consideration, buyer of inward supply
have to pay the tax within the date of 180 days.
Otherwise, the tax + interest.(rule-37 of CGST)
 REGISTERED PERSON UNCLAIMED
FOR ITC (SEC-16 OF CGST)
⦿ Registered person claimed depreciation of his
capital goods, plant and machinery under
ITA,1961. – NO ITC
⦿ ITC shall avail up to due date of September(2018
) or March (2019 onwards) in relevant financial
year mentioned under invoice or relevant
annual return or whichever is earlier.
 INPUT TAX CREDIT FOR CAPITAL GOODS
SENT FOR JOB WORK(SEC-19 OF CGST)
⦿ Principal manufacture may issue the challan to job
worker.
⦿ Challan should be issued by principal within the 25
days of goods dispatched to job
worker.(rule-45CGST)
⦿ Such challan may sub delegated to other sub
worker also.
⦿ The principal is a one person can claim input tax
credit for capital goods.
 INPUT SERVICE DISTRIBUTOR
⦿ Usually, head officer distribute the tax paid to his own
branches on the basis of proportional. (ISD Invoice)
⦿ It can claim the at the time of paid on inputs for raw
materials or capital goods or machine purchased.
⦿ There should be separate registration for ISD. The
large scale expenditure can share between the own
branches.
⦿ CONDITIONS : individual registration and distribute
the input credit to the recipients.
⦿ RETURN : the amount which is distributed should not
exceed at the whole amount mentioned under ISD
invoice.
DOCUMENTARY REQUIREMENTS AND CONDITIONS
FOR CLAIMING INPUT TAX CREDIT (RULE-36 OF
CGSTR-2017)
⦿ Invoice issued by supplier of goods with respect to
delivery and removal of goods(sec-31).
⦿ The person who is issue invoice for goods and
services but, register at subsequently.
⦿ Debit note holder (commercial document issued by
a seller as a means of formally requesting a credit
note)
⦿ Bill of entry or any other document mentioned
under Customs Act,1962.
 OTHER SITUATION OF LACK OF
CLAIM UNDER ITC
⦿ Capital goods : capital goods includes, plant
and machinery. Entire ITC should be paid
under GST. Claim shall be within one year.
⦿ Taxable person switched to composition
scheme.
⦿ Goods or services wholly exempted.
⦿ Wrongly availed (Department demand back by
show cause notice u/s 73 and 74 of CGST.
⦿ Last day of availing input tax credit : July,
2017 to March 2018.
 REVERSAL OF INPUT TAX CREDIT
UNDER CGST
⦿ SITUATIONS :-
⦿ Recipient fails to pay to the supplier
⦿ Or
⦿ Recipient opts for reverse charge.
⦿ In above the situation, the recipient shall value the
supply along with output tax liability with respect to
180 days. Default of 180 days, recipient liable for tax as
well as interest on delayed payment(u/s 16(2) of
CGST).
⦿ Part of consideration paid means, remaining is
considered by above the way.
⦿ Receipt payment will not affect the ITC claim.
⦿ Reverse ITC not applicable for normal 1 year period.
TRANSFER OF IGST,2017 (SEC-18)
 LIMITATION AND ITC
⦿ Registered person should claim the input tax
credit within the period of one year of date
of issue of tax invoice (sec-18(2) CGST)
⦿ Usually, the taxable person have to fill his
return u/s : 39 of CGST. There is no
provisions for claim input tax credit after
filling of return.
⦿ Advance payment under GST : the person
who named as supplier of Goods and Service
tax cannot issue tax Invoice with respect to
advance payment. ( only receipt voucher)
EXAMPLE FOR ITC
EXAMPLE FOR ITC
 ELECTRONIC CREDIT LEDGER
(SEC-49(4) OF CGST
⦿ ECL is the input tax credit ledger
in electronic from maintained at
the common portal for each
registered taxable person. This
credit can be utilized for GST
liability.
 [2019] 104 TAXMANN.COM 187
(SC)UNION OF INDIA-V. FILCO
TRADE CENTRE (P.) LTD
⦿ Section :140 CGST ACT, deals about transitional
provision for input tax credit. Assessee is a first stage
Dealer of sale of good. Whether assessee can claim
ITC for goods which Were purchased before 1year of
Supply if goods? As per the this transaction, assessee
purchased goods before implementation of GST in
India. But, he already make payment under central
sales tax and free to claim credit under Cenvat credit
rules.
⦿ Tribunal and H.C held that, Unconstitutional to
claim under GST S. C. Held that, section 140(3) of
CGST act take away of right of person who has not
liable to register under GST or the lack of Copy of
invoice. Otherwise, assessee can claim ITC under
GST. H. C order stayed.
 EXIDE INDUSTRIES LTD. V. COMMISSIONER
OF CENTRAL GOODS AND SERVICES TAX,
RAIGAD ([2019] 105 TAXMANN.COM 192 (SC)
⦿ Assessee is person who has Involving manufacturing
Iron and steel. Assessee showed his return, he
purchased some lead ingots from Jammu and
Kashmir supplier. On the basis of above transactions,
assessee claimed input tax credit for the transaction.
Assessing officer found that, assessee did not receive
any goods. But, assessee claim the ITC. Question of
law : whether assessee can claim ITC without received
goods?
⦿ Tribunal and H. C : confirmed the adjudicating
authorities order.
⦿ S. C. (SLP) : assessee claim is not genuine one and
that raw materials not reached the assessee factory.
Dismissed.
 UNION OF INDIA V. SAPNA JAIN
[2019] 106 TAXMANN.COM 212 (SC)
⦿ Under section 69, the assessee who has done the
illegal evasion of tax. As per circumstances of
case, assessee may arrested by authorities. H. C
court granted bail to the assessee. It is
contended before supreme court that, High
court should not grant the pre-arrest bail to
the accused person under GST. the Supreme
Court noted the decision of the Constitution
Bench in Kartar Singh v. State of Punjab1994
(3) SCC 569, wherein it was held that a claim for
pre-arrest protection is neither a statutory right
nor a right guaranteed under Articles 14, 19 and
21 of the Constitution of India.
 . STATE OF WEST BENGAL V.
CALCUTTA CLUB LTD [2019] 110
TAXMANN.COM 47 (SC)
⦿ Respondent is running rehabilitation club for his paid
members. In the course of service to members,
assessing officer send a show cause notice or claim
the transaction take place between club and
permanent members. But, respondent club had
provided some food and drinks to his own permanent
members. Assessing officer claim that, providing
drinks and food taxable under definition of supply.
Whether such transactions taxable?
⦿ Tribunal and H. C held that, this transaction not
considered as sale. There was only reimbursement of
the amount by the members and therefore, no sales
tax could be levied.
⦿ S. C held that, Clubs cannot be treated as distinct
from their members and there is no sale transaction
between a club and its members. So, there is no tax
liability for such transactions.
RSPL LTD.,-VS-UNION OF INDIA
(2019) 109 TAXMANN.COM 108
(SC)
⦿ Assessee has used certain capital goods for
manufacture. At the same time, treatment of capital
goods was taxable in different way to compare
with current GST regime. If the duty paid before
implementation of GST cannot claimed as a credit
in GST. Whether this distinction ITC treatment
affects the Article-14 and 19(1) (g) of Constitution
of India.
⦿ S.C held that, duty paid on capital goods in transit
and received on or after 1.7.2017 shall be subject
ITC under GST. In other cases, ITC can claim with
respect to the CENVAT credit.
 ALD AUTOMOTIVE (P.) LTD.
-V-COMMERCIAL TAX OFFICER. [2018] 99
TAXMANN.COM 202 (SC)
⦿ Assessee is engaged in the business of buying, selling.
Leasing of motor vehicle. He filed his return under
TNVAT-2006 (A. Y :2007-08). Due to lack invoice,
assessee unable to claim ITC. Subsequently, assessee
received invoice from dealer and filed revised return in
next assessment year (u\s 19(11) of TNVAT, assessee
may claim input tax credit by relevant assessment
year or before 90 days from the date of purchase or
whichever is later)
⦿ Tribunal and H. C Held that, assessing officer denied
the right of assessee under section 19(11) of TNVAT.
⦿ S. C held that, section 19(11) is mandatory and period
for claiming input tax credit could not have been
extended by Assessing Authority.
 E-WAY BILL
⦿ A registered person can’t transport goods in a
vehicle. unless, Electronic way bill send along with
goods. (Invoice / bill / delivery challan)
⦿ It is apply for goods value more than Rs : 50,000/-
⦿ COMPONENTS OF AN E-WAY BILL :
⦿ Part - A : GSTIN recipient / place of delivery (Pin
code) / Value of goods / invoice / challan number
& date / HSN code / Transport document no
(Railway receipt No / Airway Bill No / Bill of lading
no)
⦿ Reasons for transportation.
⦿ Part - B : Transporters details : vehicle no etc..
⦿ E way bill mandatory : Specified goods (Less than
value Rs : 50,000/-) / inter-state movement
(Principal to job-worker ) / Inter-state Transport
of Handicraft (Exempted dealer).
 WHAT ARE THE SITUATIONS - E
WAY NOT REQUIRED
⦿ Transport is not done through non-motor
vehicle.
⦿ any goods transported from : Airport, air
cargo complex, customs port, custom
station to inland container depot,
container freight station for clearance by
customs.
⦿ Any goods transported under customs
supervision / customs seal.
⦿ Any goods transported between custom
stations.
⦿ Cargo transported to / from Nepal / Bhutan.
 WHAT ARE THE SITUATIONS - E
WAY NOT REQUIRED
⦿ any goods transported by Ministry of defence as a consignor /
consignee.
⦿ any empty cargo containers transported.
⦿ Any goods transported to measure weight. It shall be accompanied by
delivery challan. (Weight shall be measured within 20 kms from origin.
⦿ Railway transport :consignor of goods - Central / State Govt., / Local
authority.
⦿ any state / UT may exempt goods for E way delivery.
⦿ Transportation of exempted goods u/R : 138(14) / any good supplied
but, It is not supply u/schedule : III / Central Schedule to Central tax
rate.
⦿ E way bill is not required on basis of distance : There is a distance
between consignor / consignee is 50 kms / Transport within the same
state (subject to exceptions).
⦿ There are some states following the eway bills.
⦿ EX : TAMIL NADU ; Exemption is depends upon the value of
transactions : less than 1 Lakhs.
 VALIDITY OF E-WAY BILL
NATURE OF
DISTANCE VALIDITY OF EWB
CONVEYANCE

Less than 20 KMS 1 day

OVER DIMENSIONAL
CARGO
every additional 20
Additional 1 day
kms / part of that

Less than 200 KMS 1 day

OTHER THAN OVER
DIMENSIONAL CARGO
every additional 200
Additional 1 day
kms / part of that
 DOCUMENTS REQUIRED TO
GENERATE E WAY BILL
⦿ Invoice / Bill of supply / challan - related to the
consignment of goods.
⦿ Transport by road : Transporter ID / Vehicle no.
⦿ Transport by Railway / Air / ship : Transporter ID
/Document / date on the document.
⦿ Student are advised to submit their final reseach
paper after presenation. Student shall incorporate
the suggestions, inputs given by panel members.
⦿ Thereater, Such final paper may forward for
external valuation.
⦿ Timeline for final research paper submission :
25.11.24.
ASSESSMENT AND AUDIT
 KINDS OF ASSESSMENT (SEC-59-64
PARTICULARS SECTION HEADING
OF CGST)
59 SELF- ASSESSMENT

60 PROVISIONAL ASSESSMENT

61 SCRUTINY ASSESSMENT
ASSESSMENT
62 ASSESSMENT of non-fillers returns

63 ASSESSMENT of unregistered person

64 Summary ASSESSMENT in certain cases

65 Audit by tax authorities

AUDIT
66 Special audit
 SELF ASSESSMENT (SEC-59)
⦿ Register person shall assess his own taxable value and
furnish the return with regard to section 39 of CGST.
⦿ PROVISIONAL ASSESSMENT :-
⦿ The taxable person unable to determine the value of
his supply or
⦿ Unable to ascertain the rate of tax for supply.
⦿ Taxable person has to make application to
commissioner or any other person directed by
commissioner.
⦿ The application shall start the specify the rate of tax
and value of supply(90 days).
 PROVISIONAL ASSESSMENT :-
⦿ Assessee have to execute the surety for 25% of
amount covered under the bond.
⦿ Such assessment basic period is 6 months. This 6
months may extended with consultation of joint
commissioner or additional commissioner for
additional 6 months. But, commissioner can
extend for 4 years.
⦿ Taxable person have to pay on the basis of
provisional order. Otherwise, he has to pay tax
along with interest.
 SCRUTINY OF RETURN
⦿ If any tax officer found the discrepancies in
the filled return, proper officer may seek for
explanation or clarification.
⦿ Above the clarification shall be reply within
the period of 30 days.
⦿ Proper officer may conduct the search or
seizure.
⦿ The document which are collected in the
course of search and seizure. Those
documents may utilize for assessment.
⦿ Rule : 99 of CGST,2017 : taxable person
would pay tax and interest ( Form- ASMT-11)
 ASSESSMENT OF NON-FILER OF
RETURNS/UNREGISTERED PERSON
⦿ If the registered person fails to file return U/S 39 and
45, show cause notice also sent by proper
officer(sec-46).
⦿ The proper officer may conduct the best of his
judgement on the basis of information in his possession.
⦿ Limitation : 5 years.
⦿ Non-filling of return may leads to cancel registration.
⦿ Registered person at least file his nil return.
⦿ Fail to register or registration cancel due to non-filing
the return, proper officer assess the tax liability of
taxable person. (limitation is 5 years : sec-44)
 SUMMARY ASSESSMENT
⦿ The proper officer shall pass summary assessment
order on the basis of evidence showing tax liability
of any taxpayer.
⦿ Show cause notice have to be issued to taxable
person on the verification of Assistant/ Joint
commissioner.
⦿ If the taxable person founds any error in order, he
has make application to JC/AC within the 30 days
of assessment order passed and same time order
shall withdraw and follow the fresh order (Sec-73
and 74)
AUDIT BY TAX AUTHORITIES (SEC-65)
⦿ Commissioner has power to audit any registered
person by his himself or direct any other proper
officer to audit.
⦿ Such audit take place at the premises of registered
person. It should be intimated before 15 days of
audit.
⦿ Above the audit should be completed within 3
months.
⦿ Commissioner may extend the period to
additional 6 months.
⦿ Auditing authorities shall disclose the finding in
audit.
 FOLLOWING SITUATIONS SPECIAL
AUDIT DONE BY AUTHORITY (SEC-66)
⦿ Taxpayer not paid tax.
⦿ Less tax paid by taxpayer.
⦿ Refund provision wrongly invoked.
⦿ Input tax credit wrongly availed or
utilized.
⦿ Special audit for interest on revenue
also.
⦿ ITC claim more than tax paid.
 DIFFERENT KINDS OF AUDIT
DIFFERENC STATUTORY AUDIT DEPARTMENTA SPECIAL ADUIT MANAGEMENT
E L AUDIT OF
AUDIT/REVIEW
SCOPE EXAMINATION OF EXAMINATION EXAMINATION VERFICATION
BOOKS OF OF BOOKS OF OF BOOKS OF REQUESTED BY
ACCOUNTS ACCOUNTS ACCOUNTS (BY ASSESSEE.
NOTICE)

APPOINTME ASSESSEE DEPARTMENT PROPER ASSESSEE

NT OF OFFICER
AUDITORS

FEE ASSESSEE NIL NIL ASSESSEE

TIME LIMIT ON OR BEFORE 3 MONTHS-6 90 DAYS OWN TIME.

31ST DECEMBER MONTHS (EXTEND TO 2ND
90 DAYS)
PERSON LIABLE FOR REGISTRATION
: SEC : 22
⦿ Any person supply of goods : Turnover in Financial
year exceed : Rs : 40 Lakhs - normal state.
⦿ but, special category State’s supply person : Rs : 20
Lakhs.
⦿ Any person supply of services: Turnover in
Financial year exceed : Rs : 20 Lakhs - normal
state.
⦿ but, special category State’s supply person : Rs : 10
Lakhs.(From 2019 amendment)
⦿ Any person done registration under previous
legislation such as, TNVAT, Excise duty , Service .
These person shall make registration under GST.
PERSON LIABLE FOR REGISTRATION
: SEC : 22
⦿ SPECIAL CATEGORY OF STATES HAVING
TURNOVER / THRESHOLD (20 Lakhs):-
⦿ Jammu & Kashmir
⦿ Himachal Pradesh
⦿ Meghalaya
⦿ Sikkim
⦿ Uttarakhand
⦿ Assam
⦿ Arunachal pradesh.
PERSON LIABLE FOR REGISTRATION
: SEC : 22
⦿ any person’s business was transferred to another person or merged or demerged with
other person. Transferee shall liable to take registration from the date of transfer.
⦿ any person involved in inter-state supplies.
⦿ Non-resident taxable person.
⦿ Agent of a supplier.
⦿ Any person paying tax under the reverse charge mechanism.
⦿ Any input service distributor.
⦿ Any person involved in E-commerce operator / aggregator.
⦿ Any person supply through e-commerce aggregator.
⦿ Any person supply online information & data base access or retrieval service - outside
India to inside India - other than registered person.
⦿ Casual taxable person.
⦿ SEC : 23 : Any person supply the exempted goods / Services : It does not apply. This
exemption under CGST / IGST.
⦿ Any agriculturist -supply his produce out of cultivation of land.
⦿ Exemption may declared by Govt., / council.
 PENALTY FOR CERTAIN
OFFENCES(SEC-122)
⦿ THE TAXABLE PERSON WHO DONE
FOLLOWING OFFENCES SHALL LIABLE FOR
PENALTY :-
⦿ Supply : without invoice, incorrect or false invoice
⦿ Issues invoice without supply.
⦿ collected tax not paid to the Govt., (more than 3 months)
⦿ Collect the tax with contravention of any proceeding of
this act.
⦿ Fails to collect the tax.
⦿ Utilize the ITC in wrongly.
⦿ Fraudulently obtain the refund.
⦿ Distribute the ITC in contradiction with provision.
 PENALTY FOR CERTAIN
OFFENCES(SEC-122)
⦿ Obstructs or prevents any officer in discharge
his duty.
⦿ Suppress the turnover.
⦿ Fails to keep or maintain the document or
information or furnish the false information.
⦿ Any goods confiscated under this act.
⦿ Issues the invoice by using other resister
person GSTIN .
⦿ Tampers, destroy any material evidence or
dispose that evidence.
⦿ Above mentioned dispose evidence
confiscated under this act.
 PENALTY FOR CERTAIN
OFFENCES(SEC-122)
⦿ Any reason or fraud or misstatement or
suppression of facts to eave tax. (penalty of 10%
of tax due or 10,000: whichever is higher)
⦿ BELOW THE PERSONS ALSO LIABLE FOR
PENALTY:-
⦿ Any person abets or aids.
⦿ Acquires possession in transporting, removing,
depositing, keeping, concealing, supplying or
purchasing materials.
⦿ Any act contravention of provisions of act.
⦿ Fails to appear before the respective authority.
⦿ Fails to issue invoice.
 GENERAL PENALTY (SEC-125)& GENERAL
DISCIPLINES RELATED TO PENALTY(SEC-126)
⦿ Any person who contradiction of provisions of this
act, that person is liable to pay up to 25,000. but,
This section not applicable for specific penalty
provisions.
⦿ No penalty for minor breach : amount tax involved
in less than 5,000.
⦿ Such minor breach should not have fraudulent
intention or gross negligence.
⦿ Any error in filled return may rectify by subsequent
act.
⦿ No penalty impose the taxable person without giving
opportunity to hear.
⦿ Taxpayer/ assessee found his own mistake by himself-
no penalty
⦿ No penalty for fixed minor breaches or fixed rate of
percentage.
 POWER TO IMPOSE THE PENALTY IN
⦿
CERTAIN CASES (SEC-127)
Assessee is liable to pay penalty for his default. but, It Is
Not Include The Below The Proceeding Mentioned
Below:-
⦿ Sec-62 assessment of non-filers of return( limitation is 5
years)
⦿ Sec-63 : assessment of unregistered person ( limitation is 5
years).
⦿ Sec-64 :summary assessment certain cases (levy any tax or
assessed or any penalty issued)
⦿ Sec-72 : erroneously refunded or wrongly claim ITC or fraud
or wilful misstatement.
⦿ Sec-74 :determined tax not paid or ITC or Refund.
⦿ Sec-129 : detention of seizure and release of goods or
conveyances in transit.
⦿ Sec-130 : confiscation of goods or conveyances and levy of
penalty.
PENALTY UNDER IGST (SEC-20)
⦿ Below mentioned acts penalty
are applicable for IGST also;-
⦿ SGST
⦿ CGST
⦿ UTGST
POWER TO WAIVE THE PENALTY OR
FEE OR BOTH (SEC-128)
⦿ Government by official
notification may waive full or
part of penalty with respect to
penalty imposed under
section : 122, 123 and 125.
⦿ GST council also recommend
the same.
PROSECUTION
 APPEAL
⦿ There are two prospective : tax related or
procedural.
⦿ Appeal is statutory right.
⦿ Proper officer may make order under CGST, SGST
and UTGST (order, Appeal, Review, Revision).
⦿ APPELLATE MECHANISM:-
⦿ First appellate authority.
⦿ Appellate Tribunal.
⦿ High court
⦿ Supreme court.
 NO APPEAL AGAINST FOLLOWING
ORDER
⦿ Order : transfer of proceedings from one
officer to another officer.
⦿ Order : seize or retain books of account
and other documents.
⦿ Order : sanctioning prosecution under
this Act.
⦿ Order : allowing payment order and
amount in instalments.
 FIRST APPELLATE AUTHORITY
(SEC-107 OF CGST)
⦿ Limitation : 3 months from the date of assessment
order.
⦿ On the request of the commissioner, review of the
order : limitation of 6 months.
⦿ Any stage hearing of an appeal : adjourn the
recording in writing.
⦿ Fee :-
⦿ Amount of tax, interest, fee and penalty as agreed
upon by appellant from the impugned order.
⦿ 10% of tax disputed amount.
⦿ Appeal shall dispose within the period of 1 year.
⦿ Appellate authority shall give opportunity.
 FIRST APPELLATE AUTHORITY
(SEC-107 OF CGST)
⦿ AA may increase the fee, penalty or fine in lieu of
confiscation or reducing the amount of refund or
tax credit. But, it should be done after hearing
assessee or respective person involved.
⦿ AA may opinion that, any tax not paid or
short-paid or erroneously refunded or ITC wrongly
claimed with respect to limitation of assessment.
⦿ AA shall communicate the order to their appellant,
respondent and to the adjudicating authority.
⦿ Copy of order also need to be sent to the
jurisdictional commissioner or on behalf.
JATINDER SINGH V. UNION TERRITORY OFJAMMU &
KASHMIR THROUGH COMMISSIONER / SECRETARY
⦿ FACTS : Assessee was registered under Jammu & kashmir GST,
2017. Assessing officer has issued demand notice against the
assessee.
⦿ Petitioner filed appeal before the Appellate authority u/s 107 of
CGST, 2017. Appeal rejected indicated the reason for rejection as
“ Delay in submission of appeal.”
⦿ As per statute, Appellate authority shall not excced limitation
more than 30 days.
⦿ Assessee has approached this court for exceptional nature as
would warrant exercise of extraordinary jursidiction u/s 226.
⦿ Appellant
⦿ Q: whether assessee dealy in filing appeal accepted by Appellate
Authority?
⦿ HELD : Assessee has fails to express case of a exceptional nature
as would warrant exercise of extraordinary jurisdiction u/s 226.
 POWER OF REVISIONARY
AUTHORITY (SEC-108 OF CGST)
⦿ Revisionary authority may revise the order by his own
motion or on the request of state or UT Commissioner.
⦿ Revision may consider the additions, deletion and
annulling order.
⦿ Revisionary authority cannot exercise his power
following cases :-
⦿ Order passed by First appellate authority, Appellate
tribunal, H.C and S.C.
⦿ Any assessment order passed under this act shall liable to
be revised within the period of 6 months to 3 years.
Otherwise, there is no provisions of revisions.
⦿ Order already revised.
⦿ The revision order has already been passed.
 APPEAL TO APPELLATE
TRIBUNAL(SEC-112 OF CGST)
⦿ Aggrieved party may file application before
Appellate tribunal.
⦿ ORDER :Appellate authority or Revisionary
authority of CGST, SGST or UTGST.
⦿ Limitation : 3 months from the date of
communication of order.
⦿ Monetary value appeal more than Rs :50,000
(value of tax, Penalty, Fee or Input Tax
credit).
⦿ Memorandum of cross objection shall be filed
within the period of 45 days of notice
received.
 APPEAL TO APPELLATE
TRIBUNAL(SEC-112 OF CGST)
⦿ APPEAL FEE :-
⦿ Paid tax, interest, fee and penalty in full as
admitted by him.
⦿ 20% of amount disputed in Impugned order.
⦿ APPEARANCE BY AUTHORIZED REPRESENTATIVE
:-
⦿ His relatives or regular employees.
⦿ Advocate entitled to practice.
⦿ C.A, C.S or cost accountant who the certificate
of practice.
⦿ Retired officer or commercial tax department
any state or UT(not below the rank of Grade
–B(not less than 2 years).
 APPEAL TO APPELLATE
TRIBUNAL(SEC-112 OF CGST)

⦿ An appeal for rectification

of error or any other
purpose
⦿ Restoration of appeal or
application.
APPEAL TO HIGH COURT (SEC-117)
⦿ Appeal from the order of Tribunal to Next forum as
High court.
⦿ Limitation : 180 days of order passed by Tribunal. H.C
may excusive jurisdiction to condone the delay in
filling the application(sufficient cause).
⦿ Substantial question of law is essential. It shall decide
by H.C.
⦿ Above the appeal cases may handled by H.C. but, it
should be bench. The bench contain not less than 2
judges.
⦿ Judgement copy shall be circulated among the
members.
⦿ CPC applicable.
 APPEAL TO SUPRME COURT
(SEC-118)
⦿ Appeal to the supreme court shall
lie:-
⦿ Against the order of appellate
tribunal (National or Regional
Bench)
⦿ Against the order of High Court.
⦿ CPC applicable.
 KESORAM INDUSTRIES LTD.,-VS-ASSISTANT
COMMISSIONER OF CENTRAL GST & CENTRAL
EXCISE MANCHERIAL DIVISION (2019) 107
TAXMANN.COM408(SC)
⦿ Assessee delayed in payment of tax. Due to that,
assessing authority claim tax along with interest on
delayed payment. But, competent authority filled
imposed the interest. Assessee filled writ petition
before H.C without invoking provision of section
107 of CGST order of appeal from the assessment
order. Assessee challenged impugned order on the
ground of violation of principle of Natural justice.
⦿ H.C and S.C dismissed as efficacious alternative
remedy of appeal u/s 107 was available to
assessee. So, assessee shall follow the proper
hierarchy for filling appeal through that, assessee
can reach H.C and S.C.
 VIRAJ PROFILES LTD-VS-ADDITIONAL
COMMISSIONER OF SALES TAX, MUMBAI
(2018) 96 TAXMANN.COM556(SC)
⦿ This case very similar to section 117 of CGST
Act and Section 27 of Mahaashtra Value Added
Tax Act,2002. whether high court can condone
delay of 134 days in default in filling the appeal
before the H.C?
⦿ Revenue filled the his H.C appeal with delay of
134 without sufficient reason and same H.C
also accept the sufficient reason state by
Revenue.
⦿ S.C held that, H.C order was legally infirm and
required to be seaside.
COMMISSIONER OF CGST AND CENTRAL EXCISE VS M/S
EDELWEISS FINANCIAL SERVICES LTD. CITATION: 2023
⦿ Facts;-
⦿ Respondent co., has given the Corporate guarantees to overseas group companies
for which consideration was received.
⦿ Corporate guarantees provided free of charge to Indian group companies.
⦿ Income tax authorities have issued notices to the respondent for taxable service.
⦿ Respondent argued that, guarantees were given without monetary or non-monetary
consideration.
⦿ The definition of "service" under Section 65B(44) explicitly requires consideration
for taxability.
⦿ Q: Whether corporate guarantees provided without consideration qualify as
"services" under the Finance Act.
⦿ Held : The Court upheld the findings of the Principal Commissioner and CESTAT
that no consideration was involved in providing the corporate guarantees to Indian
group companies.
⦿ It emphasized that "consideration" is a critical element for determining taxability
under Section 65B(44). In the absence of consideration, no service tax liability
arises.
 COMPOSITION LEVY
⦿ It is easy and simple scheme under GST for
taxpayers.
⦿ Small scale industries may have less
turnover.
⦿ Apply : Turnover is less than Rs : 1.5 crore.
⦿ Some states :
⦿ North- Eastern States / Himachal pradesh :
Turnover is less than Rs : 75 Lakhs.
⦿ SUPPLY OF SERVICE : 10% turnover / Rs : 5
Lakhs - whichever is higher.
 WHO CAN’T CLAIM COMPOSITION
SCHEME
⦿ Any person making inter-state supplies /
exempted supply.
⦿ Any casual taxable person / non-resident
taxable person.
⦿ Any person supplying service through an
e-commerce. Concern person shall required
to collect TCS u/s 52.
⦿ Manufacture of specified products :Ice
cream, pan masala, tobacco etc.,
⦿ Any other manufacture declared by Govt.,
with recommendation of GST council.
 CONDITIONS TO AVAILING COMPOSITION SCHEME
⦿ Composition taxable person shall mention staus on
every bill of supply issued by him.
⦿ Any dealer opted composition scheme. He can’t
avail the input tax credit.
⦿ Any dealer can’t supply of goods not taxable under
GST : Alcohol.
⦿ Receiver of service shall clam the reverse charge
mechanism.
⦿ Any assessee has various types of business such as,
Electronic accessories, Groceries, Textile etc.. All
such business may register under composition
scheme.
⦿ Taxpayer has to mention words in signboard / notice
: Composition Taxable person. It shall be affixed at
prominent place.
⦿ RETURN : GST CMP - 02.
 COMPOSITION DEALS BILL
⦿ This dealer can’t issue tax invoice/
⦿ This dealer can’t collect tax from the
consumers.
⦿ It shall be paid from the pocket of traders
/dealer.
⦿ Dealer shall issue the bill of supply.
⦿ RATE OF TAX FOR GST
NATURE OF BUSINESS CGST SGST TOTAL
Manufacturer & traders (goods) 0.5% 0.5% 1%

Restaurants not serving alcohol 2.5% 2.5% 5%

Other service providers 3% 3% 6%

 PROS & CONS OF COMPOSITION
SCHEME
⦿ Pros :
⦿ LESSER COMPLIANCE : Returns / maintaining
books of account / issue of invoice.
⦿ limited tax liability
⦿ High liquidity as taxes are at lower rate.
⦿ Cons :
⦿ Dealer can’t avail ITC.
⦿ Dealer is barred from inter - state
transactions.
⦿ Taxpayer will not be eligible to supply non-
taxable goods under GST : alcohol & goods
through an e-commerce platform.