A Complete Guide to Goods and Services Tax Ready Reckoner in Q & A Format

Contents at a glance About the authors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Prologue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Table of contents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Chapter 1

Indirect tax structure in India. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

Chapter 2

GST: An Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

Chapter 3

Conceptual understanding of GST: (New Concepts including GST Models) . . . . . . . . . . . . . . . . . . . . 115

Chapter 4

Understanding GST terminology. . . . . . . . . . . . . . . . . . . . . . . . . . 133

Chapter 5

GST: Constitutional frame work. . . . . . . . . . . . . . . . . . . . . . . . . . . 179

Chapter 6

Administration of GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189

Chapter 7

Charge of GST: (Charging provision of levy and collection). . . 201

Chapter 8

Supply of goods and services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211

Chapter 9

Time of supply of goods and services. . . . . . . . . . . . . . . . . . . . . . 231

Chapter 10

Threshold exemption under GST. . . . . . . . . . . . . . . . . . . . . . . . . . 247

Chapter 11

Composition levy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251

Chapter 12

Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259

Chapter 13

Valuation under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279

Chapter 14

Payment of GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293

Chapter 15

Liability to pay tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305

Chapter 16

Invoice, credit notes and debit notes. . . . . . . . . . . . . . . . . . . . . . . 315

Chapter 17

Filing of returns under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337

Chapter 18

Job work. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 355

Chapter 19

GST on e-commerce and aggregators . . . . . . . . . . . . . . . . . . . . . . 363

Chapter 20

Accounts and records. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 375

Chapter 21

Scrutiny and audit under GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . 385

Chapter 22

Inspection. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 399

Chapter 23

Input tax credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 409

Chapter 24

Assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 439

Chapter 25

Demand and recovery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 457

Chapter 26

Refunds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 475

Chapter 27

Offences and penalties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 491 9

A Complete Guide to GST

Chapter 28

Search, seizure and summons. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 501

Chapter 29

Arrest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 515

Chapter 30

Prosecution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 523

Chapter 31

Compounding of offences. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 533

Chapter 32

Appeals and revision. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 539

Chapter 33

Advance ruling. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 567

Chapter 34

Information returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 583

Chapter 35

GST compliance rating. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 593

Chapter 36

Transitional provisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 595

Chapter 37

Miscellaneous provisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 629

Chapter 38

Charging provisions in IGST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 645

Chapter 39

Inter-state supply of goods and services. . . . . . . . . . . . . . . . . . . . 651

Chapter 40

Place of supply of goods and/or services. . . . . . . . . . . . . . . . . . . 655

Chapter 41

Payment of tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 679

Chapter 42

Input Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 685

Chapter 43

Apportionment of tax and settlement of funds . . . . . . . . . . . . . . 689

Chapter 44

Settlement of cases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 697

Chapter 45

Miscellanous and transitional provisions. . . . . . . . . . . . . . . . . . . 709

Chapter 46

Administration of IGST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 715

Annexure I List of abbreviations used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 717 Annexure II List of Important Websites relating to Goods and Services Tax (GST) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 723 Contents of attached CD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

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Table of contents About the authors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Prologue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Contents at a glance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Chapter 1

Indirect tax structure in India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

Chapter 2

GST: An Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

Q.1 Q.2 Q.3 Q.4 Q.5

What are the powers of government to levy taxes?. . . . . . . . . . . . . . . . . . . . . . . . . . 71 What are the stages of imposing taxes?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 What is meant by direct and indirect taxes?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 What is the present indirect taxation structure in India? . . . . . . . . . . . . . . . . . . . . . 73 What are the indirect taxes presently levied and collected by the Union of India (central government)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 Q.6 What are the present indirect taxes levied and collected by the state governments?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Q.7 What are the advantages of levying indirect taxes? Are there any disadvantages of indirect taxes levy?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Q.8. Are there any deficiencies in the present indirect tax system and what is the answer to these issues?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 Q.9 How does the proposed Goods & Services Tax (GST) and present system of Value Added Tax (VAT) compare?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 Q.10. What is the relevance of GST in present tax structure?. . . . . . . . . . . . . . . . . . . . . . . 79

Q.1 Q.2 Q.3 Q.4 Q.5 Q.6 Q.7 Q.8

Q.9 Q.10 Q.11 Q.12 Q.13 Q.14 Q.15 Q.16

What is the justification for levy of GST in India?. . . . . . . . . . . . . . . . . . . . . . . . . . . 81 What is GST and why is it required?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 What is the need for GST as an improved indirect tax? . . . . . . . . . . . . . . . . . . . . . . 84 What is the present scope of ‘service’ under Service Tax law?. . . . . . . . . . . . . . . . . 86 What is the concept of GST and how will GST work?. . . . . . . . . . . . . . . . . . . . . . . . 88 What will be scope of ‘service’ under the GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 What is the scope of ‘goods’ under the GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 Many central and state taxes are proposed to be subsumed under GST? What principles have been observed for this? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 What central and state taxes are likely to be subsumed in proposed GST?. . . . . . 90 What are the central and state taxes/duties which are not likely to be subsumed in proposed GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 What are the objectives of having GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 What are the pre-requisites for effective GST regime? . . . . . . . . . . . . . . . . . . . . . . . 93 What is cascading effect in taxation and how GST will address this?. . . . . . . . . . . 94 At what point will GST be levied? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 When will the liability to pay GST arise?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 What are the major chronological events that have led to the introduction of GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

11

A Complete Guide to GST Q.17 Q.18 Q.19 Q.20 Q.21 Q.22 Q.23 Q.24 Q.25 Q.26 Q.27 Q.28 Q.29 Q.30 Q.31 Q.32 Q.33 Q.34 Q.35 Q.36 Q.37 Q.38 Q.39

Will GST benefit India economically? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 What are the likely implications of GST in Indian context?. . . . . . . . . . . . . . . . . . . 98 What are the advantages of GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 How will GST benefit industry, trade and exporters?. . . . . . . . . . . . . . . . . . . . . . . 101 How will GST benefit the small entrepreneurs and small traders?. . . . . . . . . . . . 103 How will GST benefit the exchequer and government?. . . . . . . . . . . . . . . . . . . . . 103 How will GST benefit the common consumers?. . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 What are the likely disadvantages of GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 Will implementation of GST and its preparedness be costly for companies?. . . 104 What impact would GST have on overall prices? . . . . . . . . . . . . . . . . . . . . . . . . . . 104 What will be the tax on alcoholic beverages?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 What will be the taxation on tobacco products?. . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 What will be the taxation on petroleum products? . . . . . . . . . . . . . . . . . . . . . . . . . 105 Will e-commerce will come under the scope of GST?. . . . . . . . . . . . . . . . . . . . . . . 105 What are the challenges considered in implementation of GST?. . . . . . . . . . . . . . 106 If any loss to states arises due to the introduction of GST, would such loss be compensated?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 What has been the experience of other countries with GST?. . . . . . . . . . . . . . . . . 110 Which countries follow the methodology of dual GST?. . . . . . . . . . . . . . . . . . . . . 112 Which is the latest country to introduce GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112 What are the GST rates generally prevalent across the world?. . . . . . . . . . . . . . . 112 What role can professionals play under GST regime?. . . . . . . . . . . . . . . . . . . . . . . 112 What professional opportunities is GST expected to bring in for professionals?. . . 112 What role can the professionals play in GST regime?. . . . . . . . . . . . . . . . . . . . . . . 113

Chapter 3

Conceptual understanding of GST: (New Concepts including GST Models). . . . . . . . . . . . . . . . . . . 115

GST models. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.1 What are the salient features of the proposed GST model? . . . . . . . . . . . . . . . . . .

Q.2 What will be the likely tax matrix in GST regime and how will GST work?. . . .

Q.3 What will be the taxability of imports under GST regime? . . . . . . . . . . . . . . . . . .

Q.4 What about tax treatment of exports of goods and/or services?. . . . . . . . . . . . . .

Q.5 How are present tax provisions different from the proposed GST model?. . . . .

Q.6 What are the prerequisites for GST Models?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.7 What is meant by dual GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.8 Why is dual GST required?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.9 What benefits will accrue from dual GST? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.10 What is central Goods and Services Tax (CGST)? . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.11 What is state Goods and Services Tax (SGST)?. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.12 How would a particular transaction of goods and services be taxed simultaneously under central GST (CGST) and state GST (SGST)?. . . . . . . . . . . .

Q.13 Illustrate how would a particular transaction of goods and services be taxed simultaneously under central GST (CGST) and state GST (SGST)?. . . . . .

Q.14 What is inter-State Goods and Services Tax (IGST)?. . . . . . . . . . . . . . . . . . . . . . . .

Q.15 How will IGST work?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12

115 115 117 117 117 118 118 119 119 119 120 120 121 122 123 124

Table of contents Q.16 How will be inter-State Transactions of Goods and Services be taxed under GST in terms of IGST method? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124 GST rate/revenue neutral rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.17 What will be the rate of GST and who will decide the rate of tax?. . . . . . . . . . . .

Q.18 What is meant by Revenue Neutral Rate (RNR)?. . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.19 What are the factors which will be considered for determination of RNR?. . . . .

125 125 125 126

GST network (GSTN) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.20 In GST regime, Information Technology network will be crucial as most of the procedures would be automated. How will it be done?. . . . . . . . . . .

Q.21 What is GST Network (GSTN)?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.22 What are the objectives of GSTN?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.23 What are the services which shall be rendered by GSTN to various stakeholders?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.24 What services could be undertaken on common GST portal?. . . . . . . . . . . . . . . .

Q.25 What functions can be performed by assessees/taxpayers using GST common portal?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.26 What functions can be carried out by tax officers using GST common portal? . . .

Q.27 How invoices will be uploaded on GSTN systems? . . . . . . . . . . . . . . . . . . . . . . . .

Q.28 Whether tax consultants will be given a separate user ID and password? . . . . .

Q.29 How will GSTN system interface with various stakeholders?. . . . . . . . . . . . . . . .

127

Chapter 4

127 127 128 128 129 129 130 130 130 131

Understanding GST terminology. . . . . . . . . . . . . . . . . . . . . . . . . 133

Actionable claim [Section 2(1)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.1 What is meant by actionable claim under GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.2 What are the essential elements of any claim to be considered as actionable claim?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.3 What type of claims are included in actionable claims?. . . . . . . . . . . . . . . . . . . . .

Q.4 Give some examples of claims or rights which can be considered as actionable claims or not? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.5 Whether actionable claims will be classified as ‘goods’ or ‘services’ under GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.6 Explain the taxability of actionable claim under existing regime and proposed GST regime?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Address of delivery [Section 2(2)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.7 What is meant by ‘Address of delivery’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.8 What is meant by ‘address’? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.9 What is a tax ‘invoice’ in relation to address of delivery?. . . . . . . . . . . . . . . . . . . .

Q.10 Who is a ‘taxable person’ in relation to address of delivery?. . . . . . . . . . . . . . . . .

Q.11 What is the importance of ‘Address of delivery’ under GST?. . . . . . . . . . . . . . . .

134 134 134 135 135 136 136 137 137 138 138 138 138

Address on record [Section 2(3)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138 Q.12 What is ‘Address on record’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138 Q.13 What is the difference between ‘address of delivery’ and ‘address on records’ under GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139

13

A Complete Guide to GST Agent [Section 2(5)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.14 Who is an ‘agent’ under GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.15 What are the essential attributes of an ‘agent’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.16 Is it necessary that ‘agent’ must be known? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.17 Whether an ‘agent’ is a taxable person?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.18 Whether an ‘agent’ is liable to be registered?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

139 139 139 140 140 140

Aggregate turnover [Section 2(6)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.19 What is the scope of ‘aggregate turnover’ under GST?. . . . . . . . . . . . . . . . . . . . . .

Q.20 What does a person having the same PAN mean?. . . . . . . . . . . . . . . . . . . . . . . . . .

Q.21 What does ‘aggregate turnover’ not include?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.22 What does ‘inward supply’ mean and include?. . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.23 Whether supplies, made by job-worker on behalf of his principal, be included in value of aggregate turnover of such job-worker?. . . . . . . . . . . . . . . .

Q.24 What is the difference in scope of ‘aggregate turnover’ under GST and existing service taxation regime? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.25 Whether value of inward supplies should be deducted from aggregate turnover to arrive at eligibility criteria?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

140 140 142 142 142 143 143 143

Agriculture [Section 2(7)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 Q.26 What is meant by ‘agriculture’ under GST? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 Q.27 What does ‘forest’ mean for the purpose of exclusion from the scope of agriculture?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145 Agriculturist [Section 2(8)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.28 Who is an agriculturist for the purpose of agriculture under GST?. . . . . . . . . . .

Q.29 What does ‘to cultivate personally’ imply?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.30 Whether award of agriculture work on sharing basis is covered under the term ‘to cultivate personally’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.31 Whether agriculturist be considered as a taxable person? . . . . . . . . . . . . . . . . . . .

146 146 146 147 147

Appropriate government [Section 2(11)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147 Q.32 What is ‘appropriate government’ for IGST/CGST/SGST?. . . . . . . . . . . . . . . . . . 147 Assessment [Section 2(12)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148 Q.33 What does ‘assessment’ mean under GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148 Associated enterprise [Section 2(13)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.34 What is meant by ‘associated enterprise’ under GST Law?. . . . . . . . . . . . . . . . . .

Q.35 What is meant by associated enterprises in relation to different enterprises?. . .

Q.36 Enumerate the cases where two or more enterprises shall be deemed to be associated enterprises?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

148 148 149 149

Business [Section 2(17)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150 Q.37 What does the term ‘business’ mean under GST? . . . . . . . . . . . . . . . . . . . . . . . . . . 150 Q.38 Whether ‘agriculture’ is covered under the scope of ‘business’?. . . . . . . . . . . . . . 152 Business vertical [Section 2(18)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.39 What is meant by ‘business vertical’ under the GST Law?. . . . . . . . . . . . . . . . . . .

Q.40 What is the relevance of business verticals or segments in GST? . . . . . . . . . . . . .

Q.41 Can a business vertical obtain separate registration under GST? . . . . . . . . . . . . .

14

152 152 154 154

Table of contents Q.42 Whether a business vertical which is separately registered can avail composition scheme? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154 Q.43 Whether input tax credit can be distributed to a business vertical? . . . . . . . . . . . 154 Casual taxable person [Section 2(21)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155 Q.44 What is meant by ‘casual taxable person’? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155 Q.45 What is taxable territory in relation to a casual taxable person?. . . . . . . . . . . . . . 156 Non-resident taxable person [Section 2(69)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156 Q.46 What is meant by ‘non-resident taxable person’?. . . . . . . . . . . . . . . . . . . . . . . . . . . 156 Deemed exports and export of goods [Section 2(37, 43)]. . . . . . . . . . . . . . . . . . . . . . . . . . 156 Q.47 What is meant by deemed exports?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156 Q.48 What is meant by ‘export of goods’ under GST? . . . . . . . . . . . . . . . . . . . . . . . . . . . 157 Export of services [Section 2(44)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157 Q.49 What is meant by ‘export of services’ under GST?. . . . . . . . . . . . . . . . . . . . . . . . . . 157 Zero rated supply [Section 2(109)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158 Q.50 What is meant by ‘Zero Rated supply’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158 Q.51 What will be the tax impact of GST on exports?. . . . . . . . . . . . . . . . . . . . . . . . . . . . 158 Government [Section 2(49)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158 Q.52 What is meant by government?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158 Q.53 What is excluded from the scope of government?. . . . . . . . . . . . . . . . . . . . . . . . . . 159 Import of goods [Section 2(51)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160 Q.54 What is meant by ‘import of goods’ under GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . 160 Import of services [Section 2(52)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.55 What is meant by ‘import of services’ under GST? . . . . . . . . . . . . . . . . . . . . . . . . .

Q.56 What is meant by ‘India’ as per GST law?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.57 What is meant by territorial waters, continental shelf and exclusive economic zones? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

160 160 161 161

Non-taxable & taxable territory [Section 2(70, 98)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162 Q.58 What is meant by non- taxable territory under GST? . . . . . . . . . . . . . . . . . . . . . . . 162 Q.59 What is meant by ‘taxable territory’ under GST law?. . . . . . . . . . . . . . . . . . . . . . . 162 Person [Section 2(74)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162 Q.60 What is meant by ‘person’ under GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162 Q.61 Is there any difference in the scope of ‘person’ as per GST Act and Finance Act, 1994?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163 Place of business [Section 2(75)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163 Q.62 What is meant by ‘place of business’ under GST?. . . . . . . . . . . . . . . . . . . . . . . . . . 163 Q.63 Enumerate the places that may be covered or included under the scope of ‘place of business’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164 Principal place of business [Section 2(78)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164 Q.64 What is meant by ‘principal place of business’ under GST?. . . . . . . . . . . . . . . . . . 164 Q.65 What types of accounts and other records are required to be maintained at principal place of business by a registered person?. . . . . . . . . . . . 165

15

A Complete Guide to GST Recipient [Section 2(80)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165 Q.66 Who is the recipient of supply under GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165 Q.67 Whether an ‘agent’ will be included under the scope of the term ‘recipient’?. . . . 166 Supplier [Section 2(91)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166 Q.68 Who is the supplier of supply under GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166 Turnover in a state [Section 2(104)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167 Q.69 What is meant by ‘turnover in a state’ under GST?. . . . . . . . . . . . . . . . . . . . . . . . . 167 Usual place of residence [Section 2(105)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167 Q.70 What is meant by ‘usual place of residence’ under GST?. . . . . . . . . . . . . . . . . . . . 167 Q.71 As per the present tax law, what is ‘usual place of residence’?. . . . . . . . . . . . . . . 168 Works contract [Section 2(107)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.72 What is meant by ‘works contract’ under GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.73 What are the features of ‘works contract’ under GST? . . . . . . . . . . . . . . . . . . . . . .

Q.74 What will be the treatment of work contracts under GST?. . . . . . . . . . . . . . . . . . .

Q.75 Whether construction of building etc shall be treated as service or goods?. . . . .

Q.76 How will works contract including transfer of property in goods be treated for the purpose of GST? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

168 168 168 170 170

Government Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.77 What is meant by ‘governmental authority’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.78 What are the conditions stipulated to qualify as ‘governmental authority’?. . . .

Q.79 What are the functions of Municipality as per article 243W of Constitution of India?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.80 What are the functions of a Panchayat as per article 243G of Constitution of India?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

170 170 171

170

172 173

Health Care Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174 Q.81 What is meant by ‘Health care services’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174 Q.82 What is meant by clinical establishment? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175 Education Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175 Q.83 What is the scope of education services?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175 Q.84 What is the scope of education services as stipulated in the definition? . . . . . . . 175

Chapter 5 Q.1 Q.2 Q.3 Q.4 Q.5 Q.6 Q.7 Q.8 Q.9 Q.10 Q.11

16

GST: Constitutional frame work . . . . . . . . . . . . . . . . . . . . . . . . . 179

Why does introduction of GST require a constitutional amendment?. . . . . . . . . 179 What is constitutional amendment in relation to GST?. . . . . . . . . . . . . . . . . . . . . . 180 What does the Constitution (101st Amendment) Act, 2016 seek to achieve?. . . . 180 When will the constitutional amendments take effect?. . . . . . . . . . . . . . . . . . . . . . 180 What is the GST Council and what will be its composition?. . . . . . . . . . . . . . . . . 181 Has the GST council been constituted? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181 What steps have been taken so far for functioning of the GST Council?. . . . . . . 182 How will the GST council function and perform?. . . . . . . . . . . . . . . . . . . . . . . . . . 182 What shall be the guiding principle for the GST council to function? . . . . . . . . . 183 What are the functions mandated to the GST Council under the Constitution?. 183 What role will the GST council have in GST rate determination?. . . . . . . . . . . . . 183

Table of contents Q.12 Q.13.

Q.14 Q.15 Q.16 Q.17 Q.18 Q.19 Q.20 Q.21 Q.22

What is the scope of ‘goods’ and ‘Services’ as per the Constitution?. . . . . . . . . .

What is the meaning of Goods and Service Tax?. . . . . . . . . . . . . . . . . . . . . . . . . . .

What are the constitutional powers to levy GST in India?. . . . . . . . . . . . . . . . . . .

Presently, GST is not going to be levied on petroleum products. When will such goods be brought under the net of GST? . . . . . . . . . . . . . . . . . . . . . . . . .

What constitutional powers have been legislated for levy of GST on inter-State trade or commerce?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

How will be the import of goods or services treated and taxed in GST regime? . . .

What are the goods on which excise duties shall continue to be levied?. . . . . . .

Whether states will continue to levy value added tax on goods which will not be under the GST net? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

In GST regime, there are bound to be disputes between the centre and states or amongst the states. How are these going to be resolved?. . . . . . . . . . . .

How will be the states compensated for loss of revenue on account of GST?. . .

What is likely to be the fate of Empowered Committee of State Finance Ministers after Constitution of GST Council?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Chapter 6

Q.1 Q.2 Q.3 Q.4 Q.5 Q.6 Q.7 Q.8 Q.9 Q.10 Q.11

Q.12 Q.13 Q.14 Q.15 Q.16 Q.17 Q.18

184 185 185 185 186 186 186 186

Administration of GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189

What is the scope of tax administration?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

How is GST proposed to be administered in India? . . . . . . . . . . . . . . . . . . . . . . . .

Who will be the authority to levy and administer GST in India? . . . . . . . . . . . . .

What will be the role of GST council in administration of GST in India?. . . . . . .

What changes are expected in overall administration of GST? . . . . . . . . . . . . . . .

What is the likely administrative organization structure for GST?. . . . . . . . . . . .

What may be the structure of a new proposed Board?. . . . . . . . . . . . . . . . . . . . . .

How will the revenue intelligence work under GST?. . . . . . . . . . . . . . . . . . . . . . .

What will be the role of Member (Central Excise & Legacy) in proposed CBIT?. . .

How will audit function be administered under GST regime? . . . . . . . . . . . . . . .

What are the powers of Board/Commissioner in relation to tax administration? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is the concept of authority of regional Principal Chief Commissioners? . . .

How will GST Zones and Commissionerates work or operate? . . . . . . . . . . . . . .

How will GST Divisions work?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Under GST, who will adjudicate the cases and pass orders?. . . . . . . . . . . . . . . . .

Who will be the Commissioners under GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Who shall be the ‘Proper Officer’ under the GST law?. . . . . . . . . . . . . . . . . . . . . .

What type of class of officers shall be appointed under the CGST/ SGST Act and IGST Act for tax administration?. . . . . . . . . . . . . . . . . . . . . . . . . . . .

Chapter 7

184 184 184

189 190 190 190 191 192 193 194 194 195

195 196 196 197 197 197 198 198

Charge of GST: (Charging provision of levy and collection) . . . 201

Levy and collection of Central/State Goods and Services tax . . . . . . . . . . . . . . . . . . . . .

Q.1 What is the meaning of tax?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.2 What are the provisions related to charge (levy) of GST?. . . . . . . . . . . . . . . . . . . .

Q.3 From where is the authority derived for charge and levy of GST?. . . . . . . . . . . .

Q.4 What shall be the rate of GST payable by taxpayers? . . . . . . . . . . . . . . . . . . . . . . .

201 201 201 202 202 17

A Complete Guide to GST Q.5 Q.6

Who shall be liable to pay GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202 Whether GST will also be liable to be paid under reverse charge?. . . . . . . . . . . . 202

Taxable Person. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203 Q.7 Who will be a ‘taxable person’ under GST law?. . . . . . . . . . . . . . . . . . . . . . . . . . . . 203 Q.8 Specify the States for which lower threshold exemption limit of INR 10 lakhs available?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203 Q.9 Whether a taxable person includes unregistered person under this Act? . . . . . . 203 Q.10 What are the essential characteristics of a taxable person?. . . . . . . . . . . . . . . . . . . 204 Q.11 In which cases shall the Government not be considered a taxable person?. . . . . 204 Q.12 Enumerate the cases where a person shall not be considered a taxable person? . . . 204 Q.13 Whether anyone dealing in agricultural or horticulture produce will not be considered a taxable person?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205 Q.14 What type of services of an employee could be considered in the course of or relation to his employment?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205 Q.15 Can an individual receiving services from abroad but not in business could be termed as taxable person under GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . 205 Power to grant exemption from tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.16 Who has the authority to grant exemption from tax?. . . . . . . . . . . . . . . . . . . . . . .

Q.17 Under what circumstances can a special order of exemption be issued?. . . . . . .

Q.18 What is the effective date of the notification or special order of exemption? . . .

Q.19 From which date will the notification clarifying the scope of exemption be effective? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.20 Will exemption notification be effective in respect of clarification issued by the Government after one year of date of notification?. . . . . . . . . . . . .

Q.21 There could be confusion in interpreting the exemption notification.

Who will clarify such confusion and how?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.22 Can tax be paid on any goods or services, which have been exempted without any condition or restriction?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

206 206 206 206

Remission of tax on supplies found deficient in quantity. . . . . . . . . . . . . . . . . . . . . . . .

Q.23 What is the meaning of remission of tax? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.24 What are the prerequisites for remission of tax? . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.25 Whether a taxable person who suffers loss/shortage of stocks due to floods etc will be eligible for relief of tax?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.26 Whether remission will be allowed for goods lost or destroyed before the supply or after the supply?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.27 Whether remission will be allowed in case of loss/shortage of goods in transit? Will it make any difference if Goods Transport Agency (GTA) has been appointed by recipient or by supplier?. . . . . . . . . . . . . . . . . . . . . . . . . . .

208 208 208

Chapter 8 Q.1

Q.2 Q.3 Q 4 18

206 207 207 207

208 208 209

Supply of goods and services . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211

What is taxable event under GST? How is it different from taxable event in the present day of indirect tax system?. . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is meant by ‘supply’ in GST law?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is meant by ‘goods’ under GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is meant by ‘services’ under GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

211 211 213 213

Table of contents Q.5 Q.6 Q.7 Q.8 Q.9 Q.10 Q.11 Q.12 Q.13 Q.14 Q.15 Q.16 Q.17 Q.18 Q.19 Q.20 Q.21 Q.22 Q.23 Q.24 Q.25 Q.26 Q.27 Q.28 Q.29 Q.30 Q.31 Q.32

Why is the distinction between supply of goods and supply of services in GST important?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is meant by ‘exempt supply’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is meant by ‘composite/mix supply’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What are ‘self supplies’ and whether such supplies are taxable under GST?. . .

The supplies between principal and agent are taxable supplies for the purpose of GST. What is meant by ‘principal’ and ‘agent’?. . . . . . . . . . . . . . . . . .

What is understood by ‘sale’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

How ‘sale’ is different from ‘supply’? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is ‘barter’ and how is it different from sale?. . . . . . . . . . . . . . . . . . . . . . . . . .

What is ‘exchange’ and how is it different than sale?. . . . . . . . . . . . . . . . . . . . . . .

When there is use of words ‘valuable consideration’ in sale, then what was the need to include the words ‘exchange’ or ‘barter’?. . . . . . . . . . . . . . . . . . .

What is the meaning of ‘license’ with reference to supply?. . . . . . . . . . . . . . . . . .

What is the meaning of ‘rental’ with reference to supply?. . . . . . . . . . . . . . . . . . .

What is the meaning of ‘lease’ with reference to supply?. . . . . . . . . . . . . . . . . . . .

What is the meaning of ‘disposal’ with reference to supply?. . . . . . . . . . . . . . . . .

What will constitute a transaction in the course or furtherance of business? . . .

Whether consideration for supply of goods/services is a necessary ingredient for such supply to become taxable under GST? . . . . . . . . . . . . . . . . . .

Transfer or disposal of business assets would be considered as supply.

Whether the same will also apply to transfer of business?. . . . . . . . . . . . . . . . . . .

What could be examples of ‘supply without consideration’ in the commercial world?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

How shall the transactions of supply without consideration be taxed under GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What would be the tax treatment of captive consumption of goods?. . . . . . . . . .

How are the transactions of Sch I (supply without consideration) treated in present indirect tax system?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Importation of services has been mentioned in the definition of supply but importation of goods has been excluded? Does that mean that there will be no GST leviable on importation of goods?. . . . . . . . . . . . . . . . . . . . .

Whether transfer of property in goods is a pre-requisite for supply of goods?. . .

What would be the treatment of transactions of supply of goods for use but without transfer of title in such goods?. . . . . . . . . . . . . . . . . . . . . . . . . . . .

How will intangible property be dealt with for the purpose of supply under GST law?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Whether an agreement to supply goods at future date can be considered as contract of supply for the purpose of GST? How will hire purchase transactions be treated?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Whether transactions in immovable property would fall under the scope of supply? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The transaction of sale of property before its completion has been a matter of dispute under VAT Acts. How shall such transactions be dealt with in GST? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

213 214 214 214 215 215 216 216 217 217 217 217 218 218 218 219 219 219 220 220 220 221 221 221 221 222 222

222 19

A Complete Guide to GST Q.33 What is meant by ‘construction’ in relation to immovable properties? . . . . . . . . 223 Q.34 Who will be ‘competent authority’ for the purpose of issuing completion certificate of constructed property?. . . . . . . . . . . . . . . . . . . . . . . . . . . . 223 Q.35 What would be the tax treatment of transaction of job work activity done on the goods supplied by other party?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223 Q.36 Generally, a valid contract requires presence of at least two consenting parties. Can there be a contract of supply under GST wherein the consent of one of the parties to the contract is missing?. . . . . . . . . . . . . . . . . . . . . 224 Q.37 What would be the treatment of transaction of sale of goods by any government department, in case of confiscation of the goods by such department?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224 Q.38 A bank takes charge of the property of the borrower as per loan agreement. It then goes on to sell the movable goods so taken over.

How will this transaction be dealt in GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225 Q.39 A decides to transfer his entire business to B on a going concern basis.

Will this transaction of transfer of business by A to B be considered as taxable supply? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225 Q.40 Development and maintenance of software has always been an issue of litigation in VAT and Service tax law. How has this issue been addressed in GST regime?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225 Q.41 The action of doing an activity, or not doing an activity, for a consideration, at the instance of some other person is considered a taxable service under service tax law, treating it as a declared service.

What would be its treatment in GST regime?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226 Q.42 What would be the tax treatment of following items?. . . . . . . . . . . . . . . . . . . . . . . 226 Q.43 How will works contract transactions be dealt with under GST?. . . . . . . . . . . . . 227 Q.44 How will transactions involving transfer of the right to use goods be dealt in GST? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227 Q.45 Supply by way of, or as part of any service, of goods being food or any other article of human consumption is taxable under VAT and service tax. What would be the tax treatment of such transactions under GST regime?. 227 Q.46 Supply of goods by unincorporated associations to its members is considered as deemed sale under VAT laws. What would be its treatment in GST regime?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228 Q.47 How to decide the nature of an item which does not figure in Sch II and for which there are conflicting views of courts?. . . . . . . . . . . . . . . . . . . . . . . . 228 Q.48 In the modern-day trade, there is a category of suppliers of services called “aggregator” of services. These suppliers book orders, receive payment but are not actual service providers. They pass on the orders so booked to the actual service providers who provide service under the brand names of suppliers booking orders. What would be the tax treatment of such transactions under GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228

Chapter 9

Time of supply of goods and services. . . . . . . . . . . . . . . . . . . . . 231

Time of supply of goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231 Q.1 What is relevance of time of supply for levy of GST?. . . . . . . . . . . . . . . . . . . . . . . 231

20

Table of contents Q.2 Q.3 Q.4 Q.5

At what point of time does the GST become payable? . . . . . . . . . . . . . . . . . . . . . .

What would be the time of supply of goods under GST?. . . . . . . . . . . . . . . . . . . .

What is the scope of removal of goods?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Where the goods are removed for purpose other than supply, whether GST will be payable on such removal? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What would be the time of supply of goods which are not required to be removed?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

In what situations, would it be considered that goods are not required to be removed for determination of time of supply?. . . . . . . . . . . . . . . . . . . . . . . .

Which date will be considered as date of receipt of payment by supplier?. . . . .

What is meant by recurring or continuous supply of goods? . . . . . . . . . . . . . . . .

How will time of supply be determined in case of recurring or continuous supply of goods?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is the meaning of reverse charge? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

When will liability to pay tax on reverse charge on supply of goods become due?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

In any business, there are situations when goods are sent on approval or sale or return basis. How will time of supply of goods in such case be arrived at?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

In case one fails to arrive at time of supply of goods under above circumstances, what other option is there to determine time of liability?. . . . . .

How will time of supply be determined in case of import of goods?. . . . . . . . . .

How will time of supply be determined in case of export of goods? . . . . . . . . . .

231 231 232

Time of Supply of Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.17 What will be the time of supply in case of services?. . . . . . . . . . . . . . . . . . . . . . . .

Q.18 How will it make a difference in case invoice is not issued within the prescribed time?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.19 In case of supply of services, how will time of supply be determined where the payment has not been received, invoice has not been issued and date of completion of service is also not known?. . . . . . . . . . . . . . . . . . . . . . .

Q.20 Which date will be considered as date of receipt of payment? . . . . . . . . . . . . . . .

Q.21 How will time of supply of service will be arrived at in case of continuous supply or supply on recurrent basis? . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.22 What type of services would be considered as supply on continuous or recurrent basis? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.23 In case where contract provides for date of completion of certain event, would that be considered for the purpose of arriving at time of supply? . . . . . .

Q.24 What is the time of supply of services, where tax is liable to be paid on reverse charge basis?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.25 Whether the services provided in a ceased contract liable to GST taxation? If yes, when would this be taxed?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.26 What are the options available in cases where one fails to arrive at the time of supply of services by above methods?. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

239 239

Q.6 Q.7 Q.8 Q.9 Q.10 Q.11 Q.12 Q.13 Q.14 Q.15 Q.16

233 233 234 234 235 235 236 237 237 238 239 239

240 240 240 241 241 241 242 243 243

Change in Rate of Tax in respect of Supply of Services. . . . . . . . . . . . . . . . . . . . . . . . . . 244 Q.27 In case where the tax rate changes before the provision of services, what rate of tax would be chargeable on such services?. . . . . . . . . . . . . . . . . . . . . 244 21

A Complete Guide to GST Q.28 In case where tax rate changes after the provision of services, what rate of tax would be chargeable on such services?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245 Q.29 What would be the date of receipt of payment in case of change in effective rate of tax?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245

Chapter 10 Q.1 Q.2 Q.3 Q.4 Q.5

Q.6 Q.7

Q.8 Q.9

Chapter 11 Q.1 Q.2 Q.3 Q.4 Q.5 Q.6 Q.7 Q.8 Q.9 Q.10 Q.11 Q.12 Q.13 Q.14 Q.15

22

Threshold exemption under GST. . . . . . . . . . . . . . . . . . . . . . . . . 247

What is the relevance of threshold limit under GST? . . . . . . . . . . . . . . . . . . . . . . .

What is meant by ‘threshold limit’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is the purpose of prescribing threshold limit in tax laws?. . . . . . . . . . . . . .

What threshold limit has been prescribed under the Model GST law? . . . . . . . .

How would threshold limit be calculated for a person having business spread over different states of India?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What are the states in which lower threshold limit would be applicable?. . . . . .

A person has one of his offices located in Delhi and another office located in Sikkim. In Delhi office, his turnover is INR 16 lakhs and in Sikkim his turnover is INR 3 lakhs. What would be the threshold limit in this case?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is the threshold limit for a taxable person opting for composition levy?. .

Whether threshold exemption limit will be applicable to a taxable person required to pay GST under reverse charge basis?. . . . . . . . . . . . . . . . . . . .

247 247 247 248 248 248

249 249 249

Composition levy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251

What is the scope of tax for the purpose of GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . 251 What is the objective of composition levy under GST law?. . . . . . . . . . . . . . . . . . 251 Whether the composition scheme is available for both goods and services?. . . . 251 Who are the persons eligible under the scheme of composition levy?. . . . . . . . . 252 What are the advantages and disadvantages of opting for composition scheme by a taxable person?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 252 What is the meaning of ‘aggregate turnover’ for composition scheme?. . . . . . . . 253 Whether the value of inward supplies is to be deducted from aggregate turnover to arrive at eligibility condition?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253 Besides turnover, is there any other restriction on eligibility for availing composition scheme?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253 Whether a supplier receiving goods in inter-State supply will be eligible for composition scheme? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254 Whether a taxable person under composition scheme is eligible to import goods and services from outside India?. . . . . . . . . . . . . . . . . . . . . . . . . . . . 254 Taxpayer opting for composition scheme is not allowed to have interState supplies. Will this apply for export out of country as well?. . . . . . . . . . . . . 254 Can a composition supplier purchase goods and services from unregistered tax payers?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254 Whether composition scheme is a mandatory scheme or an optional one on the part of taxpayer? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255 What would be the rate of tax under composition scheme?. . . . . . . . . . . . . . . . . . 255 How will a supplier under composition scheme collect tax from his customers? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255

Table of contents Q.16 Can a recipient of goods/service from a supplier under a composition scheme take input credit?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.17 Can a supplier opt for composition scheme in one state and not in other states?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.18 What is the procedure for opting for or applying for composition levy?. . . . . . .

Q.19 Can composition permission once granted by proper officer be cancelled? . . . .

Q.20 Can a taxpayer switch over from composition scheme to normal scheme or vice-versa?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.21 Whether the supplier under composition scheme will be liable to pay tax under reverse charge mechanism?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.22 What are the penal provisions for availing composition scheme by suppliers not eligible for it?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.23 What are the grounds for levy of penalty? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Chapter 12 Q.1

Q.2 Q.3 Q.4 Q.5

Q.6 Q.7 Q.8 Q.9 Q.10 Q.11 Q.12 Q.13

Q.14

Q.15 Q.16

255 255 256 256 256 256 257 257

Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259

What is relevance of registration in GST and why a taxable person is required to be registered?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259 Who is liable to obtain registration under GST law?. . . . . . . . . . . . . . . . . . . . . . . . 260 Who shall be the person required to deduct tax at source? . . . . . . . . . . . . . . . . . . 260 Who will not be liable for registration under GST law?. . . . . . . . . . . . . . . . . . . . . 260 Whether having PAN, e-mail ID and mobile number are the three basic requirements for obtaining registration under GST? Will PAN be insisted even when if an assessee doesn’t have taxable income under Income Tax Act, 1961? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261 What will be the structure of GST registration number?. . . . . . . . . . . . . . . . . . . . . 261 What are the various types of registration granted under GST?. . . . . . . . . . . . . . 262 What is the time allowed for seeking registration to persons covered in Sch III. . . . 262 What shall be the effective dates of registration?. . . . . . . . . . . . . . . . . . . . . . . . . . . 262 Can a person register himself on voluntary basis, even where he is not liable to be registered under GST law? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263 What are the requisite documents for obtaining registration?. . . . . . . . . . . . . . . . 263 Whether an assessee having multi-unit operations can obtain centralized registration under GST law?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 264 An assessee has various offices spread over many states in the country and the head office is located at New Delhi. The income of all offices is assessed under same PAN at New Delhi. Whether the assessee can have only one registration under GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 264 Whether an assessee would need to take as many registrations as the number of states he operates, to comply with the requirements of state GST law? Can he take only one registration for the purpose of CGST and IGST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 264 In case an assessee has different business verticals in few states like TV manufacturing and air conditioner manufacturing. Would he be granted only one registration in each state?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265 There is a thirty-day period allowed for obtaining registration under the Act. What would be the status of the transactions made before 23

A Complete Guide to GST

Q.17 Q.18 Q.19 Q.20 Q.21 Q.22 Q.23 Q.24

Q.25 Q.26 Q.27 Q.28 Q.29 Q.30 Q.31 Q.32

Q.33 Q.34 Q.35

24

application for registration? What would be the status in the following example-. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

In case a person liable for registration on 1 July makes an application for registration on 10 August, what substantive benefits will not be available to the assessee for making late application of registration?. . . . . . . . . .

Are there any time lines provided under the Act for grant of registration or refusal of registration?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Can an applicant download the registration certificate from the GSTN portal? . .

The assessee is already registered in Central Excise/Service Tax/state VAT Act. Would such assessee need to seek another registration under GST?. . .

What is the procedure of registration for the person required to deduct tax at source under sec 37 and E-commerce operators? . . . . . . . . . . . . . . . . . . . . .

What is the procedure for registration of non-resident taxable person?. . . . . . . .

What is the difference between a non-resident taxable person and a casual taxable person? How is registration process of non-resident taxable person different than casual taxable person? . . . . . . . . . . . . . . . . . . . . . . .

There is an assessee located at New Delhi registered at Delhi. He wishes to participate in a 15 day trade exhibition in the state of Tamil Nadu where he does not have a permanent place of business. Would such assessee be liable for registration in the state of Tamil Nadu? In case yes, what would be the procedure for his registration?. . . . . . . . . . . . . . . . .

What is the validity period of registration granted to casual taxable person and non- resident taxable person?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Whether there is a concept of input service distributor (ISD) under GST law?. . .

Can there be multiple ISD of a single registered person?. . . . . . . . . . . . . . . . . . . .

Whether the department of central government or state governments or local authority be required to take registration under GST law? . . . . . . . . . . .

Whether the UN bodies, consulate and foreign embassies will be liable for registration under the GST law?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

UN bodies, consulates or embassies of foreign countries are not required to have PAN under Income Tax Act. On what basis, they will be registered under GST law?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is unique identification number(UIN) and its relevance in GST?. . . . . . . .

A business carried on by a taxable person registered under GST Act is transferred on account of succession or otherwise to the transferee or the successor. In such case, whether the transferee or successor will be required to obtain registration?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

In case of a scheme of amalgamation or case of de-merger of two or more companies by order of High Court, when will transferee be required to register under GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Is there any provision for suo-moto registration by proper officer of the department?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Under what circumstances the suo-moto registration by department would be done?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

265 266 266 267 267 268 268 268

268 269 269 269 270 270 270 270

271 271 271 271

Table of contents Q.36 What course of action is available to person registered suo-moto by the department?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.37 GST law requires deduction of tax at source and also collection of tax at source in certain specified cases and onward payment to the credit of government. How will the persons making such deduction or collection deposit such tax? Is there any specific provision for their registration?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.38 Can the registration data and information be edited/amended by the registered person after obtaining registration?. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.39 Which fields of registration data are considered as core fields? . . . . . . . . . . . . . .

Q.40 In case of change in information submitted by taxable person in registration application, what actions are required to be taken by a registered person?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.41 In case where the change in data results change in PAN of the taxable person, will such change be permitted by the department?. . . . . . . . . . . . . . . . . .

Q.42 Is there any time period for making application for amendment of registration?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.43 Can the application for amendment in registration be rejected by department? . . .

Q.44 What is the procedure followed by department for accepting or rejecting the application of amendment to registration?. . . . . . . . . . . . . . . . . . . . .

Q.45 Can a registered taxable person seek cancellation of registration? If yes, under what circumstances?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.46 What are the formalities to be completed for application of cancellation of registration?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.47 Can a person who had sought voluntary registration seek cancellation of his registration?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.48 Can a proper officer cancel the registration on his own motion? If yes, under what circumstances?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.49 What procedure will be followed by proper officer for cancellation of registration on his own motion?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.50 What will be the effective date of cancellation of registration?. . . . . . . . . . . . . . .

Q.51 What happens in case registration had been obtained by fraud, willful misstatement or suppression of facts?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.52 On cancellation of registration under CGST, what would be the fate of registration under SGST and vice versa?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.53 Can a registered person seek revocation of cancellation of registration? if yes, under what circumstances? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.54 Can proper officer reject application for revocation of cancellation of registration?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.55 What are the implications of cancellation of registration under the GST law?. . . .

Q.56 How should a registered person make payment whose registration is cancelled?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.57 Whether proper officer can conduct physical verification of business premises in certain cases?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

272

272 272 272 273 273 273 273 273 274 275 275 275 275 276 276 276 276 276 277 277 277

25

A Complete Guide to GST

Chapter 13

Q.1 Q.2 Q.3 Q.4 Q.5 Q.6 Q.7 Q.8 Q.9 Q.10 Q.11 Q.12 Q.13 Q.14

Q.15 Q.16 Q.17 Q.18 Q.19 Q.20 Q.21 Q.22 Q.23 Q.24 Q.25 Q.26 Q.27 Q.28 Q.29 Q.30 Q.31

26

Valuation under GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279

What is the relevance of valuation of supply of goods and services in GST? . . .

What is the value to be considered for the purpose of levy of tax under GST?. . .

What is meant by ‘consideration’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is meant by ‘money’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Whether deposits can be considered as consideration for supply under GST?. . .

What shall be the valuation of taxable supplies in ordinary course? . . . . . . . . . .

What is meant by transaction value?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What amounts shall be included in the ‘transaction value’? . . . . . . . . . . . . . . . . .

What amounts shall be excluded from the transaction value?. . . . . . . . . . . . . . . .

What would be the treatment of post supply discount?. . . . . . . . . . . . . . . . . . . . .

For valuation, transaction value should be based on as if the supplier and the recipient of the supply are not related and the price is the sole consideration for supply. What is meant by ‘related’? . . . . . . . . . . . . . . . . . . . . . .

Whether person would include legal or juristic persons?. . . . . . . . . . . . . . . . . . . .

Under what circumstances, the transaction value will not be considered for the purpose of levy of GST? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What will be the treatment of discounts or incentive in arriving at transaction value?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Will subsidies received by the supplier constitute part of transaction value? . . . .

Whether reference to valuation principles is required in all cases of transactions between related parties? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is the definition of market value?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is comparison method of valuation and in what circumstances, it should be applied? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is meant by ‘goods of like kind and quality’?. . . . . . . . . . . . . . . . . . . . . . . . .

What is meant by ‘services of like kind and quality’?. . . . . . . . . . . . . . . . . . . . . . .

What is computed value method of valuation and in what circumstances, it should be applied?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is residual method of valuation and in what circumstances should it be applied?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What order shall be followed for applying the different methods of valuation while valuing supply of goods and services?. . . . . . . . . . . . . . . . . . . . .

Whether the value declared by taxable person be rejected by the proper officer? . .

What can be the basis or origin for doubting the truth and accuracy of the transaction value declared by supplier?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

How would value be arrived in circumstances where declared value is doubted by the proper officer? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Who is considered to be a ‘pure agent’? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Whether reimbursement of the amount incurred by supplier as pure agent will be excluded from the taxable value of services? . . . . . . . . . . . . . . . . . .

How will value of taxable services be arrived at in case of services provided by money changers? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Whether there will be separate valuation rules for SGST and IGST?. . . . . . . . . .

Whether valuation principles will also be applied for branch transfers supply of goods and services and in the case of transaction between principal and agent?. . . .

279 279 281 281 282 282 282 282 283 283 284 284 285

285 286 286 286 287 287 287 287 288 288 288 289 289 289 290 290 291 291

Table of contents

Chapter 14 Q.1 Q.2 Q.3 Q.4 Q.5 Q.6

Q.7 Q.8 Q.9 Q.10 Q.11 Q.12 Q.13 Q.14 Q.15 Q.16 Q.17 Q.18 Q.19 Q.20 Q.21 Q.22 Q.23 Q.24 Q.25 Q.26 Q.27 Q.28 Q.29 Q.30 Q.31 Q.32 Q.33 Q.34

Payment of GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293

How many types of tax payments are required to be made under GST?. . . . . . .

Who are liable to make payments under GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is the due date for making the payment of tax?. . . . . . . . . . . . . . . . . . . . . . .

Can the period of payment of tax be extended?. . . . . . . . . . . . . . . . . . . . . . . . . . . .

What are the different payment options under GST?. . . . . . . . . . . . . . . . . . . . . . .

Where will tax payments be credited to? When will it be considered that payment has been made?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is meant by ‘authorized bank’ and what is it required to do?. . . . . . . . . . .

How many types of ledgers of a taxable person shall be maintained in GSTN?. . . .

What is meant by ‘electronic cash ledger’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is meant by ‘electronic credit ledger’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What transactions would be reflected in electronic cash ledger?. . . . . . . . . . . . . .

What type of transactions would be reflected in electronic tax liability register?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What type of transactions would be reflected in electronic credit ledger?. . . . . .

The credit balance in electronic cash ledger can be used for what purposes?. . .

The balance in electronic credit ledger can be used for what purposes? . . . . . . .

What are the restrictions, if any, for adjustment of balance lying in electronic credit ledger?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is the process or procedure of making payment for electronic credit in cash ledger? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Who can generate a valid challan on GSTN? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Can a valid challan be generated/made by the tax authority? . . . . . . . . . . . . . . .

Is there any time limit for making the payment after generation of a valid challan?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Can payment challan be modified after its generation? . . . . . . . . . . . . . . . . . . . . .

Can payment of current period be made without making the payment of any previous period in full? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Can payment of GST be postponed and yet a valid return be filed?. . . . . . . . . . .

How will refund be adjusted in electronic ledgers? What will be the consequence if the refund is rejected by the department? . . . . . . . . . . . . . . . . . . .

What would be the consequences of delay in payment of tax?. . . . . . . . . . . . . . .

What would be the consequences of undue or excess claim of Input Tax Credit by the taxable person?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

In what situations, tax would be deducted at source in GST?. . . . . . . . . . . . . . . .

Who would be required to deduct tax at source?. . . . . . . . . . . . . . . . . . . . . . . . . . .

What is the rate of TDS?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

When would the TDS required to be deposited?. . . . . . . . . . . . . . . . . . . . . . . . . . .

How will deductee take credit of TDS? In which ledger will this credit be claimed?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Is there any time period for issue of TDS certificate? What details would this certificate have?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Is there any penal provision on deductor for not issuing certificate in time? . . .

What are consequences of delay in deposit of TDS by deductor?. . . . . . . . . . . . .

293 293 294 294 294 295 295 295 296 296 296 297 297 298 298 298 299 300 300 300 300 301 301 301 301 302 302 302 302 303 303 303 303 303 27

A Complete Guide to GST Q.35 Q.36 Q.37 Q.38

Can refund be sought for excess or erroneous deduction of TDS?. . . . . . . . . . . .

What is tax collection at source (TCS) in GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is meant by reverse charge? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Will the benefit of threshold exemption be available to persons liable for reverse charge payment?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Chapter 15 Q.1

Q.2 Q.3 Q.4 Q.5 Q 6 Q.7

Q.8 Q.9 Q.10 Q.11 Q.12 Q 13 Q.14 Q.15 Q.16 Q.17 Q.18 Q.19 Q.20 28

304 304 304 304

Liability to pay tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305

What shall be the tax liability in case where business is transferred to another person without discharging tax liability?. . . . . . . . . . . . . . . . . . . . . . . . . .

Is it necessary that such transfer should be for a consideration?. . . . . . . . . . . . . .

What shall be the liability to pay comprise of?. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is the obligation of transferee or lessee on such transfer?. . . . . . . . . . . . . . .

What types of business transfers are covered for liability to pay in case of business transfers? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Would transferor be liable for any liability in respect of period post such transfer?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

In case of merger or amalgamation by order of court, the effective date of transfer of companies is generally different than the date of pronouncement of order like the court order dated 31 July may pronounce effective date of merger as 1 July? What will be the effective date of transfer for GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

During the period of effective transfer ie 1 July to the date of order ie 31 July, there could be transactions of supply between two merged companies A and B. How will such transactions be treated?. . . . . . . . . . . . . . . . .

Who will be responsible - A,B or AB in the above example for tax obligations for the period before 1 July and before 31 July?. . . . . . . . . . . . . . . . . .

Who would be liable to pay tax dues of a company going into liquidation?. . . .

What is meant by ‘company’ for this provision?. . . . . . . . . . . . . . . . . . . . . . . . . . .

What is the duty of receiver and commissioner in case of liquidation of a company?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Would the liability of directors of a company in liquidation abate in case of failure or delay on part of liquidator or commissioner?. . . . . . . . . . . . . . .

What will be the liability of independent directors?. . . . . . . . . . . . . . . . . . . . . . . .

Would partners of the firm be individually liable to pay tax of firm?

What would be the status of a retiring partner?. . . . . . . . . . . . . . . . . . . . . . . . . . . .

What would be the consequences if intimation of retirement is not given or given late to commissioner? What would be the effect on liability of firm incurred post retirement of such partner?. . . . . . . . . . . . . . . . . . .

Who should give the intimation of retirement of a partner? Would it make a difference in case the agreement between partners provide that the intimation of such event will be given by firm?. . . . . . . . . . . . . . . . . . . . . . . . .

What provisions would apply for liability to pay in case of limited liability partnership?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Who shall be liable to pay tax in the event of unrecovered tax dues from minor or incapacitated persons?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Would minor or incapacitated person be liable for any dues under the Act?. . .

305 305 306 306 306 306

307 307 307 307 308 308 308 308 309 309 309 310 310 310

Table of contents Q.21 What is meant by ‘incapacitated person’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 310 Q.22 Who shall be liable to pay unpaid taxes in cases where estate of a taxable person is under control of court of wards or administrator or receiver etc? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 311 Q.23 What meant by is ‘court of wards’? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 311 Q.24 How the liability on the court of wards will be fastened? . . . . . . . . . . . . . . . . . . . 311 Q.25 What is the liability to pay in case of death of taxable person?. . . . . . . . . . . . . . . 311 Q.26 In what situations, tax cannot be recovered from the legal representative of adeceased person? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 312 Q.27 What is the tax liability in case of partition of Hindu Undivided Family (HUF) or Association of Person (AOP)?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 312 Q.28 What is a Hindu Undivided Family (HUF)?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 312 Q.29 What is the scope of Association of Persons?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 312 Q.30 What will be the tax liability in case of dissolution of a firm?. . . . . . . . . . . . . . . . 313 Q.31 What will be the liability where business is managed by guardian on behalf of minor or by a trustee on behalf of a trust? . . . . . . . . . . . . . . . . . . . . . . . . 313 Q.32 What will be the tax liability in case of discontinued business of HUF or AOP? . . . 313 Q.33 Who will be liable to pay tax dues in case of a change in constitution of firm or AOP? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 313 Q.34 Who will be liable to pay in case of dissolution of Association of Persons or partition of business by Hindu Undivided Family?. . . . . . . . . . . . . . . 314

Chapter 16

Invoice, credit notes and debit notes. . . . . . . . . . . . . . . . . . . . . . 315

Types of invoices: A snapshot . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.1 What is meant by a ‘tax invoice’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.2 What is the relevance of a tax invoice under GST? . . . . . . . . . . . . . . . . . . . . . . . . .

Q.3 Whether a registered taxable person is required to issue a tax invoice in case of supply of goods?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.4 Whether a registered taxable person is required to issue a tax invoice in case of supply of services?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.5 What are the requisite particulars required to be shown in a tax invoice?. . . . . .

Q.6 What are the requisite details required to show in a tax invoice in relation to upply meant for export?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.7 Whether board or chief commissioner can notify any other details which may be required to be mentioned in the invoice or a bill of supply? . . . .

Q.8 What are the time limits for issuance of a tax invoice by supplier of goods/services?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.9 When is a ‘bill of supply’ required to be issued and who is required to issue a bill of supply?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.10 What are the requisite particulars required to be shown in a ‘bill of supply’?. . . .

Q.11 In what situation, a registered taxable person may not be required to issue a bill of supply?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.12 When can a consolidated bill of supply be issued by a registered taxable person? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.13 Who shall be responsible to indicate amount of tax in a tax invoice and other documents? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

315 316 317 317 317 319 320 320 321 321 322 322 323 323 29

A Complete Guide to GST Q.14 Q.15 Q.16 Q.17 Q.18 Q.19 Q.20 Q.21 Q.22 Q.23 Q.24 Q.25 Q.26 Q.27 Q.28 Q.29 Q.30 Q.31 Q.32 Q.33 Q.34 Q.35 Q.36 Q.37

What is the manner in which a tax invoice has to be issued?. . . . . . . . . . . . . . . . .

What is invoice reference number (IRN)?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is meant by ‘common portal’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is the purpose of common portal?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is meant by ‘credit note’ and when it shall be issued? . . . . . . . . . . . . . . . . .

What is the time limit to issue a credit note by a taxable person?. . . . . . . . . . . . .

When can a taxable person not issue credit note? . . . . . . . . . . . . . . . . . . . . . . . . . .

What is meant by ‘debit note’ and when should it be issued?. . . . . . . . . . . . . . . .

What is the time limit to issue a debit note by a registered taxable person?. . . .

What is meant by a supplementary tax invoice? . . . . . . . . . . . . . . . . . . . . . . . . . . .

What are the requisite details required to be shown in a supplementary tax invoice and/or a credit note or a debit note?. . . . . . . . . . . . . . . . . . . . . . . . . . .

Whether a recipient can take input tax credit on the basis of a tax invoice, a supplementary invoice or a debit note under GST regime?. . . . . . . . .

What is meant by ‘revised invoice’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

When and who can issue a revised invoice?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is the difference between a revised invoice and a supplementary invoice?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Whether any registered taxable person can issue a ‘consolidated revised tax invoice’ to unregistered taxable person in case of intra-State supply of goods or services?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Whether any registered taxable person can issue a ‘consolidated revised tax invoice’ in case of inter-State supply of goods or services? . . . . . . . .

Whether filing of return containing details of credit note or debit note issued or received is mandatory. If yes, then what is the requirement for filing of return? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Whether an Input Service Distributor (ISD) is required to issue a tax invoice or any other document?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What are the requisite details required to be shown in the tax invoice issued by a Input Service Distributor (ISD)?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Whether a tax invoice shall include any other documents issued in lieu of a tax invoice where a input service distributor (ISD) is an office of banking company/financial institution including NBFC?. . . . . . . . . . . . . . . . . . .

What is the manner of issuing tax invoice where supplier is a banking company or a financial institution including a non-banking financial company (NBFC)?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is the manner of issuing a tax invoice in case where supplier is a goods transport agency(GTA)?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is the manner of issuing a tax invoice in case where supplier of taxable service is supplying passenger transportation service?. . . . . . . . . . . . . . .

Chapter 17 Q.1 Q.2 Q.3

30

323 324 325 325 325 326 326 326 327 328 328 328 329 329 329 330 330 332 332 332 333 333 334 334

Filing of returns under GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337

What is meant by ‘return’ under GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337 What is the purpose of filing tax return?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 338 What are the different returns prescribed under GST? What is their periodicity and due dates of filing? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 338

Table of contents Q.4 Q.5 Q.6

Q.7 Q.8 Q.9 Q.10 Q.11 Q.12 Q.13 Q.14 Q.15 Q.16 Q.17 Q.18 Q.19 Q.20 Q.21 Q.22 Q.23

What is the manner of filing returns? Can any return be filed in physical mode? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 339 When all the returns are required to be filed electronically, how can filing be ensured in case of absence of strong internet connection? . . . . . . . . . . . 339 There is a prescribed threshold limit of INR 20 lakhs/10 lakhs, but a person is required to be registered under GST on achieving turnover of INR 18 lakhs/9 lakhs. Would such registered persons be required to file returns in cases where the turnover is below the threshold limit?. . . . . . . . . 339 In some period of the year, there may not be any business activity like in case of seasonal businesses. Whether a taxable person will be required to file return in such cases also? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340 Foreign consulates, UN bodies are also required to get registered under the Act. Whether such bodies will also be required to file returns under the GST Act?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340 Government departments, entities or any PSUs not making any taxable supplies will be issued a unique code by state GST Authorities.

Whether they will be required to file returns under GST?. . . . . . . . . . . . . . . . . . . 340 There are three components of GST, ie CGST, SGST and IGST. Will all the above returns be filed for all the above taxes?. . . . . . . . . . . . . . . . . . . . . . . . . . 340 CGST and IGST will be administered by central government and SGST will be regulated by state tax authorities. How will common returns, filed as above, be assessed by these authorities? . . . . . . . . . . . . . . . . . . . . . . . . . . . 341 When is self assessed tax as per return required to be deposited? Can the return be filed without deposit of tax as declared in the return? . . . . . . . . . . 341 Whether different returns are required to be filed for each business vertical of the same taxable person?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 341 Whether non-resident taxable persons are required to file only one return, viz GSTR 5?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 341 A compounding taxpayer (taxpayer who has opted for composition scheme under sec 8) is required to file quarterly returns. Whether he is required to file annual return also?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 341 What details of supply are required to be filed in case of outward supply?. . . . 342 Would taxpayer need to upload all the invoices along with the return?. . . . . . . 342 How will cash invoices or invoices where address of the recipient is not mentioned be shown in detail of outward supply?. . . . . . . . . . . . . . . . . . . . . . 342 How will description of the goods and services supplied be reflected in detail of outward supply? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 342 Whether there are different rules of disclosure of supply details for importers and exporters?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 343 In some cases, place of supply may be different than the location of recipient of supply. How will disclosures in the return be made in such cases?. . . . 343 Besides details of supply of goods and services, what other details are required to be submitted in detail of outward supplies? . . . . . . . . . . . . . . . . . . . . 344 Will a taxpayer, filing return of outward supply, be allowed to make any changes post his filing of the return? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 344

31

A Complete Guide to GST Q.24 Will the details of inward supply have to be filed or will it be automatically captured by the GSTN on the basis of supplier’s return of outward supply?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.25 Besides the auto populated data in the details of inward supply, what are the other information/particulars required to be filled by the tax payer?. . .

Q.26 The input tax credit to be availed by a tax payer is linked to details of inward supply. What is a taxpayer required to do for this purpose?. . . . . . . . . .

Q.27 Whether monthly return be required to be made by taxpayer or it will be made automatically by GSTN system?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.28 Is there any other detail required to be filled by tax payer in the monthly return?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.29 Is there any option for filing a simplified return for registered persons not making taxable supplies? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.30 What are the different means available to taxpayer for filing of returns? . . . . . .

Q.31 Who is a tax return preparer (TRP)?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.32 What is facilitation centre (FC) and its purpose?. . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.33 Is the taxpayer required to file any documents with the returns?. . . . . . . . . . . . .

Q.34 What is meant by matching, reversal and reclaim of input tax credit?. . . . . . . . .

Q.35 Will input tax credit claimed on the basis of return of inward supplies be allowed to be used for tax payment of relevant return? . . . . . . . . . . . . . . . . . .

Q.36 Which fields in the inward return need to be matched with the outward return of supplier for eligibility of input tax credit?. . . . . . . . . . . . . . . .

Q.37 What will be the consequences where the tax amount claimed in respect of inward supply is less than the amount of tax shown in the outward supply return of supplier?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.38 Will supplier and recipient be informed by the system in case figures in inward return and corresponding figures in outward return don’t match?. .

Q.39 What will be the financial impact of non-matching of figures?. . . . . . . . . . . . . . .

Q.40 When will auto reversed input tax credit (ITC) be allowed to the recipient? . . .

Q.41 Can credit of input tax credit (ITC) which was earlier auto reversed be reclaimed by the recipient on suo-moto basis?. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.42 What process would be followed for input tax credit claimed on debit notes of supplier? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.43 How will supplier’s output tax liability be matched in case the supplier has ssued credit notes?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.44 How can a return once filed be revised/rectified?. . . . . . . . . . . . . . . . . . . . . . . . . .

Q.45 What are the consequences of non-filing of prescribed returns?. . . . . . . . . . . . . .

Q.46 The application of registration can be made within 30 days of becoming liable. But no return can be filed without being registered.

How will first return in this case be filed?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.47 How will be the return filed in case of cancellation of registration?. . . . . . . . . . .

Q.48 What is annual return? By whom it is required to be filed? When it is required to be filed? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.49 What are the information/particulars required to be disclosed in annual return?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.50 What documents are required to be filed with annual return? . . . . . . . . . . . . . . .

32

345 345 345 346 346 346 346 347 347 347 347 348 348 349 349 349 350 350 350 350 351 351 352 352 352 353 353

Table of contents

Chapter 18 Q.1 Q.2 Q.3 Q.4 Q.5 Q.6 Q.7 Q.8 Q.9 Q.10 Q.11 Q.12 Q.13 Q.14 Q.15 Q.16 Q.17 Q.18 Q.19 Q.20 Q.21

Job work. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 355

What is meant by ‘job work’? Who is a job worker? . . . . . . . . . . . . . . . . . . . . . . . .

What are the essential ingredients for job work?. . . . . . . . . . . . . . . . . . . . . . . . . . .

Whether job worker should be registered under GST?. . . . . . . . . . . . . . . . . . . . . .

Is it necessary that the activity carried out by a job work should amount to manufacture? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is meant by ‘manufacturer’ in relation to GST? Whether job worker can be considered as a manufacturer?. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Whether goods supplied by principal to a job worker amounts to supply of goods?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Whether principal can send the goods to job worker without payment of tax?. . .

Whether job worker can return job worked goods to the principal without paying tax on goods?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Can a principal ask its vendors to send the inputs directly to the premises of job worker without first receiving it in his premises and then sending the same to job worker’s premises? . . . . . . . . . . . . . . . . . . . . . . . . . .

What happens in case job worker sends these goods to some other job worker for sub-job work/processing?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

After job work, is it necessary for principal to get the goods back to the place, from where goods were sent for job work?. . . . . . . . . . . . . . . . . . . . . . . . . .

Can job worked goods be directly exported from job worker premises?. . . . . . .

Will principal be eligible to claim input tax credit (ITC) on goods sent to job worker for job work?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What would happen in case job worked goods are not received back by the principal within a period of 180 days?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Whether the principal shall be eligible to claim input tax credit (ITC) on capital goods sent to job worker? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What happens to input tax credit (ITC) on capital goods in case the capital goods are not received back by the principal within a period of 2 years?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Whether principal may reclaim the input tax credit (ITC) and interest paid when the inputs or capital goods are not received back by the principal within a period of 180 days/2 years? . . . . . . . . . . . . . . . . . . . . . . . . . . . .

How will this period of 180 days/2 years be calculated in case inputs/ capital goods are sent directly to job workers premises by the vendors of principal?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Will job worker be eligible to claim input tax credit (ITC) on material/ input services used for carrying out job work activity? . . . . . . . . . . . . . . . . . . . . .

Whether the same procedure as applicable to job work shall apply for sending non-taxable or exempt goods?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Whose responsibility is for goods under job work and payment of tax?. . . . . . .

355 355 355 356 356

357 357 357 358 358 358 358 360 360 360 360 360 361 361 361 361

33

A Complete Guide to GST

Chapter 19 Q.1 Q.2 Q.3 Q.4 Q.5 Q.6 Q.7 Q.8 Q.9 Q.10 Q.11 Q.12 Q.13 Q.14 Q.15 Q.16 Q.17 Q.18 Q.19

GST on e-commerce and aggregators. . . . . . . . . . . . . . . . . . . . . . 363

What are the indirect taxes to which e-commerce business is presently exposed. Whether GST will benefit e-commerce sector?. . . . . . . . . . . . . . . . . . . . .

What are the different business models on which e-commerce companies do business?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is the impact of GST on e-commerce operators? . . . . . . . . . . . . . . . . . . . . . .

Who is an ‘aggregator’? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What are basic ingredients for a person to be called on ‘aggregator’?. . . . . . . . .

What is meant by ‘brand name’ or ‘trade name’ as mentioned in the definition of ‘aggregator’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is meant by ‘branded services’? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Whether the service provided by an aggregator is also in the nature of branded service?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

How is a typical transaction carried out by an aggregator?. . . . . . . . . . . . . . . . . .

What is the difference in tax treatment of services provided under a brand owned by e-commerce operator and aggregator? . . . . . . . . . . . . . . . . . . . .

What is the meaning and scope of electronic commerce (e-commerce)?. . . . . . .

How a typical transaction is carried out by an e-commerce operator?. . . . . . . . .

What are the essential ingredients to be covered under the scope of e-commerce?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Who is an electronic commerce operator? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What are the registration requirements for e-commerce operator and aggregator? Whether they are entitled to threshold exemption?. . . . . . . . . . . . . .

It what cases, registration under GST shall be required for suppliers in relation to e-commerce/aggregator’s services? . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What shall be the supply in case of aggregators?. . . . . . . . . . . . . . . . . . . . . . . . . . .

What is the difference between an ‘aggregator’ and e-commerce operator?. . . .

Can e-commerce operators also engage in supply to self their own goods and services and still be liable under this section?. . . . . . . . . . . . . . . . . . . .

363 363 364 364 364 365 365 366 366 366 367 367 367 368 369 369 369 369 370

Collection of tax at source. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 370 Q.20 What does tax collected at source (TCS) imply in GST?. . . . . . . . . . . . . . . . . . . . . 370 Q.21 Whether e-commerce operators will be required to collect tax at source (TCS)? . . . 370 Q.22 What is the nature of TCS?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 370 Q.23 How will TCS and its payment to the government be treated?. . . . . . . . . . . . . . . 370 Q.24 When is an electronic commerce operator required to collect tax?. . . . . . . . . . . . 371 Q.25 When is TCS required to be deposited?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 371 Q.26 At what rate is TCS to be collected?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 371 Q.27 Is there provision for filing of any return in relation to TCS collection and payment?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 371 Q.28 How will suppliers of goods and services, on whose behalf tax has been collected, take credit of TCS?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 371 Q.29 What information shall the monthly statement filed by operator contain?. . . . . 372 Q.30 Can the supplier from whose amount TCS has been collected and deposited, take credit thereof?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 373

34

Table of contents Q.31 What shall be the status of unmatched entries?. . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.32 Whether collection of tax at source (TCS) by e-commerce operator is mandatory?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.33 What are the responsibilities of e-commerce operator in relation to TCS?. . . . . .

Q.34 Whether the e-commerce operator can be asked to furnish any other information in relation to the supplies effected through him?. . . . . . . . . . . . . . . .

Q.35 What is meant by concerned supplier? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Chapter 20

373 373 373 374 374

Accounts and records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 375

Accounts and records. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 375 Q.1 What is meant by ‘document’? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 375 Q.2 What is meant by ‘year’? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 375 Q.3 What is the scope of ‘accounts’ and ‘books of accounts’?. . . . . . . . . . . . . . . . . . . . 376 Q.4 What accounts are required to be maintained by a registered taxable person?. . . 376 Q.5 Whether the records are required to be maintained physically or in electronic form?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 377 Q.6 Whether electronic cash ledger and electronic credit ledger on common portal as required under the Model GST law for input tax credit be covered under accounts and records? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 378 Q.7 Where shall the books and other records need to be maintained? . . . . . . . . . . . . 379 Q.8 Where shall the books and other records be maintained in case of taxable person having multiple places of business as specified in the certificate of registration?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 379 Q.9 Whether commissioner or chief commissioner can notify and require taxable persons to maintain additional accounts or documents? . . . . . . . . . . . . . 379 Q.10 Whether the manner of maintaining the accounts as per the provisions has to be strictly adhered to or such manner can be changed in case of any difficulty? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 380 Q.11 Whether an assessee is required to get his accounts audited and need to submit the audited statement of accounts to the proper officer?. . . . . . . . . . . . 380 Q.12 Whether an assessee is required to submit an audited statement of accounts and a reconciliation statement in physical form or in electronic form?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 381 Q.13 What is meant by a ‘chartered accountant’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 381 Q.14 What is meant by a ‘cost accountant’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 381 Period of retention of accounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.15 What is the time limit for the retention of the books of account or other records?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.16 What is the requirement of retention of accounts and records where the taxable person has more than one place of business?. . . . . . . . . . . . . . . . . . . . . . .

Q.17 What shall be the time limit for retention of books of accounts and records by a taxable person in case of an appeal or revision or any other proceeding pending before appellate authority or tribunal or court? . . . .

382 382 383 383

35

A Complete Guide to GST

Chapter 21 Q.1 Q.2 Q.3 Q.4

Scrutiny and audit under GST . . . . . . . . . . . . . . . . . . . . . . . . . . . 385

What is understood by the term ‘audit’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is the relevance of audit in GST? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is difference between reconciliation, scrutiny and audit? . . . . . . . . . . . . . .

Audit can be conducted by a chartered accountant. Who is a chartered accountant for the purpose of this audit? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Audit can be conducted by a cost accountant. Who is a cost accountant for the purpose this audit?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

385 386 386

Audit based on Turnover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.6 What is the provision for requirement of audit of taxable person based on turnover based limit? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.7 What are the conditions and provisions for audit based on turnover?. . . . . . . . .

Q.8 Whether audited statements are required to be furnished along with annual return?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.9 Whether audit report is also required to be filed?. . . . . . . . . . . . . . . . . . . . . . . . . .

388

Q.5

387 388

388 388 389 389

Scrutiny . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 389 Q.10 Whether scrutiny of return can be undertaken in GST?. . . . . . . . . . . . . . . . . . . . . 389 Q.11 What are the essential ingredients of scrutiny? . . . . . . . . . . . . . . . . . . . . . . . . . . . . 389 Q.12 Where an assessee does not comply with the law, what action can be taken by the proper officer against such assessee?. . . . . . . . . . . . . . . . . . . . . . . . . . 390 Q.13 In what situation, no further action shall be taken against the assessee?. . . . . . . 390 Audit by tax authorities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.14 What are the salient features of provisions for audit by tax authorities?. . . . . . .

Q.15 How should order of audit be issued and what should it be conveyed?. . . . . . .

Q.16 Can audit under sec 49 be dispensed with, if any other audit is being conducted under GST law or any other law?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.17 Whether audit under sec 49 can be undertaken by surprise?. . . . . . . . . . . . . . . . .

Q.18 Audit has to be completed within a stipulated period of three months (subject to extension) from the date of commencement. What is implied by date of commencement of audit?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.19 What is the outcome of audit under sec 49?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.20 Is audit under sec 49 mandatory and all taxable persons are required to be audited as such?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.21 Can the proper officer issue show cause notice and adjudicate the demand sought to be recovered? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.22 What is the difference between audit under sec 49 and sec 50?. . . . . . . . . . . . . . .

391 391 392

Special audit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.23 What is special audit and what are the circumstances which trigger the order for special audit?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.24 While ordering the special audit to be conducted, what principles should guide the officer to order a special audit? . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.25 How can special audit be directed? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.26 Who shall appoint the auditor for conducting special audit? . . . . . . . . . . . . . . . .

Q.27 Can any direction be given to the auditor also?. . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.28 What are the reporting requirements for auditor?. . . . . . . . . . . . . . . . . . . . . . . . . .

395

36

392 392 392 393 393 393 394

395 395 396 396 396 396

Table of contents Q.29 Can the stipulated period of 90 days to submit audit report be extended?. . . . .

Q.30 Can special audit be ordered even where taxable person is or has been audited? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.31 Can the department use the audit findings or material gathered during audit in any proceedings against the assessee? . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.32 What are the consequences of special audit? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.33 Under what circumstances, proceedings under sec 51 can be initiated by the department?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.34 Who shall bear the expenses of special audit? . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Chapter 22

396 397 397 397 397 398

Inspection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 399

Power of inspection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.1 What is meant by inspection? How is it different from search?. . . . . . . . . . . . . . .

Q.2 What are the various powers available to tax authorities for inspection or related to inspection?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.3 Who has the power to inspect any person or premises under sec 60? . . . . . . . . .

Q.4 Who or what can be inspected under sec 60(1)?. . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.5 What are the situations under which or as a consequence of which inspection under sec 60(1) can be initiated? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.6 What is meant by the expression, ‘reason to believe’?. . . . . . . . . . . . . . . . . . . . . . .

399 399

Inspection of goods in movement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.7 In case of goods in movement, what are the provisions for inspection? . . . . . . .

Q.8 What are the essential conditions for inspection of goods in movement?. . . . . .

Q.9 What documents shall be carried by the person incharge of conveyance? . . . . .

Q.10 Who is required to issue the prescribed documents? . . . . . . . . . . . . . . . . . . . . . . .

Q.11 What is the requirement of INR 50,000 monetary limit? Is it for all the consignments in the conveyance or per consignment? How will it be compliedwith where a single conveyance of more than one consignments of goods, is of value below INR 50,000?. . . . . . . . . . . . . . . . . . . . . .

402 402 403 403 403

Access to business premises. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.12 Can revenue officials access the business premises of a taxable person?. . . . . . .

Q.13 What is meant by ‘access’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.14 Who can access the business premises of the taxable person?. . . . . . . . . . . . . . . .

Q.15 What shall be the objective of such access to business premises?. . . . . . . . . . . . .

Q.16 What can be the purpose of inspection on access to business premises?. . . . . . .

Q.17 On such access to business premises, what is the person incharge of premises required to do?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.18 Will access to business premises under sec 64 also include unregistered premises? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.19 Whether the list of documents/information is exhaustive and no other document can be inspected? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

404 404 404 404 405 405

400 400 400 401 401

404

405 406 406

Officers required to assist CGST/SGST officers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 406 Q.20 Whether officers of other departments are required to assist GST officials in execution of provisions of law?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 406 Q.21 Can any other officer be also called upon to assist?. . . . . . . . . . . . . . . . . . . . . . . . . 407 37

A Complete Guide to GST

Chapter 23 Q.1 Q.2 Q.3 Q.4 Q.5 Q.6 Q.7

Q.8 Q.9 Q.10 Q.11 Q.12 Q.13 Q.14 Q.15 Q.16 Q.17 Q.18 Q.19 Q.20 Q.21 Q.22 Q.23

38

Input tax credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 409

What is the concept of Input Tax Credit (ITC)? . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is meant by ‘Input’ in GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is meant by ‘capital goods’ in GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What types of motor vehicles are covered under capital goods?. . . . . . . . . . . . . .

What is meant by ‘input service’ in GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is meant by ‘Input Tax’ and ‘Input Tax Credit’ in GST?. . . . . . . . . . . . . . . .

The definition of input tax includes the tax paid under reverse charge mechanism under sec 7(3) of Model GST law. Whether the Input Tax Credit of tax paid on reverse charge will also be available to registered taxable person? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The definition of input tax includes the CGST, SGST and IGST. Would Input Tax Credit be available for all such taxes? . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is the order of utilization of Input Tax Credit?. . . . . . . . . . . . . . . . . . . . . . . .

Whether cross utilization of credits between goods and services will be allowed under GST regime? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is meant by ‘inward supply’ for the purpose of Input Tax Credit in GST? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is meant by ‘output tax’ in GST? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is the meaning of ‘outward supply’ in GST? . . . . . . . . . . . . . . . . . . . . . . . . .

What is meant by ‘turnover in a state’ in GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Who is entitled to take Input Tax Credit? How will this amount be accounted for in tax records maintained on GST portal? . . . . . . . . . . . . . . . . . . . .

What is the concept of matching of invoices vis-a-vis electronic credit ledger for availing Input Tax Credit?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Whether the registered taxable person is eligible to take Input Tax Credit in respect of inputs held in stock and contained in semi-finished and finished goods? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Would it make a difference on entitlement of Input Tax Credit (ITC) in case the person liable for registration makes a late application for registration under GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Where a person applies for registration under GST for the first time, whether he will be eligible for credit on the stocks carried by him?. . . . . . . . . . .

Is there any time limit prescribed for taking Input Tax Credit?. . . . . . . . . . . . . . .

Whether the registered taxable person can take credit in respect of invoice issued for supply of goods and/or services after the filing of annual return?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Where some of the business assets and/or services are used for nonbusiness purpose, would it impact the Input Tax Credit claim of such person? How will this impact be calculated?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

A registered taxable person makes supply of taxable goods including zero rated goods, makes supply of exempt goods also. Would his Input Tax Credit be affected? How would the amount of Input Tax Credit be computed in such scenario?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

409 410 410 412 413 413

415 415 415 415 416 416 417 417 417 418 419 419 420 420 421 422

422

Table of contents Q.24 What would happen to Input Tax Credit balance in case of change in constitution of a company on account of sale, merger, demerger, amalgamation, lease or transfer to another company? . . . . . . . . . . . . . . . . . . . . . . 423 Q.25 What are the inputs which are not eligible for Input Tax Credit?. . . . . . . . . . . . . 423 Q.26 What is the meaning of ‘whether as goods or in any form’ in respect of goods used in the construction of immovable property?. . . . . . . . . . . . . . . . . . . . 424 Q.27 What are the input services which are not entitled for Input Tax Credit?. . . . . . 424 Q.28 Tax includes any amount payable under sec 8 (composition levy scheme), whether Input Tax Credit is available on payment of such amount?. . 425 Q.29 Whether every motor vehicle purchased by taxable person is eligible for Input Tax Credit?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 425 Q.30 What ownership proof will be considered in respect of motor vehicles for eligibility of Input Tax Credit? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 426 Q.31 A taxable registered person has a manufacturing facility. It produces the electricity for captive consumption in his factory for manufacture of taxable goods. Considering the fact that electricity has been kept outside the scope of GST, would Input Tax Credit be eligible on items used in manufacture of electricity?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 426 Q.32 Manufacturing process for manufacture of taxable goods of a taxable person requires a dust free environment, which requires the painting of production floor. Will the activity of painting of production floor be considered as eligible input service? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 427 Q.33 Where certain inputs and input services are used for manufacture of an exempted product but this exempted product is further used for manufacture of a taxable product, whether Input Tax Credit will be eligible on such inputs and input services?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 427 Q.34 When will a taxable person claim Input Tax Credit, where the goods are directly delivered to job worker on the instructions of the taxable person?. . . 427 Q.35 A taxable person directs his supplier to deliver goods to some other person to whom the first person has further sold the goods. Whether such taxable person will be eligible to claim Input Tax Credit in the absence of receipt of goods?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 428 Q.36 Can a taxable person claim entire Input Tax Credit on capital goods in one go or does it have to be in installments as under the present CENVAT rules?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 428 Q.37 Depreciation is allowed on every capital asset. What is the effect of charging depreciation on the eligibility of Input Tax Credit? . . . . . . . . . . . . . . . . 429 Q.38 What would be the impact of sale or transfer of capital assets on Input Tax Credit?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 429 Q.39 Would Input Tax Credit of tax paid on inputs be available, which are used in fabricating a capital asset?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 430 Q.40 What are the pre-requisites for availing Input Tax Credit? . . . . . . . . . . . . . . . . . . 430 Q.41 One of the requirements of availing Input Tax Credit is the furnishing of valid return by supplier of goods and/or services. What are the consequences of supplier failing to furnish such return?. . . . . . . . . . . . . . . . . . . . 430 Q.42 Would it affect the Input Tax Credit claim in case part of the inputs in an invoice have not been received? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 431 39

A Complete Guide to GST Q.43 Q.44

Q.45 Q.46 Q.47 Q.48 Q.49 Q.50 Q.51 Q.52 Q.53 Q.54 Q.55 Q.56 Q.57 Q.58 Q.59

Is it necessary that the product should be sold for a price more than its purchase cost for the purpose of claiming Input Tax Credits. ?. . . . . . . . . . . . . . . 431 The purchaser of the goods, sells goods to some other person by transfer of documents during the course of movement of such goods.

Would such purchaser be entitled to Input Tax Credit in the absence of goods received by him? Would the final purchaser who receives goods be entitled to Input Tax Credit on receipt of goods to him?. . . . . . . . . . . . . . . . . . 431 What would be the implication on a taxable person who applies for cancellation of his registration under the Act?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 432 What would be the tax implications on a regular taxable person, who switches over to composition levy scheme under sec 8 ie switching from regular scheme to composition levy?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 432 What would be the tax implications on a regular taxable person, in case where the goods and/or services supplied by him become exempt absolutely under sec 10?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 432 What would be the implications for a taxable person who switches over from composition levy scheme under sec 8 to regular scheme?. . . . . . . . . . 433 How shall the amount payable under sec 16(12) be calculated?. . . . . . . . . . . . . . 433 What is implied by generally accepted accounting principles?. . . . . . . . . . . . . . . 433 What are the consequences of wrong availment of ITC? . . . . . . . . . . . . . . . . . . . . 433 Who is an Input Service Distributor (ISD) in GST? Can there be more than one ISD of same taxable person in a State?. . . . . . . . . . . . . . . . . . . . . . . . . . . . 433 How will input service distributor claim Input Tax Credit and to whom they can distribute such credit? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 434 What manner of distribution can be adopted by ISD for distribution of credits to its various recipients? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 434 What are the conditions to be satisfied by an Input Service Distributor (ISD) in respect of distribution of Input Tax Credit?. . . . . . . . . . . . . . . . . . . . . . . . 435 What are the consequences of excess credit distributed by ISD?. . . . . . . . . . . . . . 436 What are the consequences of wrong distribution of credit by ISD?. . . . . . . . . . . 436 Which period will be considered as the relevant period for the purpose of consideration of turnover for the purpose of distribution of Input Tax Credit?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 437 The balance of SGST is also available for payment of IGST. In case it is so used by the taxable persons, how will government account for such transaction?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 437

Chapter 24 Q.1 Q.2 Q.3 Q.4

Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 439

What is meant by ‘assessment’ under GST law? . . . . . . . . . . . . . . . . . . . . . . . . . . .

What are the various types of assessments are carried out in GST law? . . . . . . .

What is meant by ‘commissioner’ under GST law?. . . . . . . . . . . . . . . . . . . . . . . . .

What is meant by ‘proper officer’ under GST law?. . . . . . . . . . . . . . . . . . . . . . . . .

439 440 443 443

Self-assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 444 Q.5 Who will be responsible to make self-assessment in relation to determination of tax liability under GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 444

40

Table of contents Q.6

What shall be the amount of tax payable in relation to return of goods received pursuant to inward supply under GST? . . . . . . . . . . . . . . . . . . . . . . . . . . 444

Provisional Assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.7 In case the taxable person is unable to determine correctly the value of goods or rate of tax applicable on supplies, what is the option available to taxable person?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.8 Whether a proper officer can assess the amount of tax payable by a taxable person without being requested by the taxable person?. . . . . . . . . . . . . .

Q.9 Whether execution of bond with surety by registered taxable person is compulsory for provisional assessment?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.10 What details need to be provided by a taxable person in his request application seeking provisional assessment?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.11 What details and conditions may be prescribed by the tax department while allowing provisional assessment?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.12 How will the proper officer allow the provisional assessment? . . . . . . . . . . . . . .

Q.13 What is the maximum period permitted for finalizing the provisional assessment? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.14 Can be the period of 6 months for provisional assessment be extended? . . . . . .

Q.15 What would be the consequences of short/excess payment in case of provisional assessment?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

445 445 446 446 446 447 447 447 448 448

Scrutiny of Returns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 448 Best Judgment Assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 449 Q.16 Under what situations can best judgment assessment be done by the proper officer?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 449 Assessment of Non-filers of Return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.17 How can the best judgment assessment in case of non-filers of return be done?. . .

Q.18 What is the time limit for finalizing a best judgment assessment under sec 46?. . . .

Q.19 Under what circumstances, would the order of best judgment assessment stand withdrawn?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.20 Under what circumstances, the order of best judgment assessment may be considered valid?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.21 Would the provisions of interest on delayed payment and late fee be applicable in case of best judgment assessment?. . . . . . . . . . . . . . . . . . . . . . . . . . .

449 449 450

Assessment of unregistered persons. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.22 Whether proper officer can proceed for assessment where a person fails to obtain registration even though he is required to do so?. . . . . . . . . . . . . .

Q.23 Whether assessment of unregistered persons can be done unilaterally?. . . . . . .

Q.24 What is the time limit of passing of assessment order under sec 47?. . . . . . . . . .

451

Summary assessment in certain special cases. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.25 What is summary assessment?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.26 Under what circumstances a summary assessment order can be passed by a tax officer? What procedure will be followed by proper officer for passing such an order?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.27 How will an order of summary assessment be passed in case of supply of goods where the person liable for tax is not ascertainable?. . . . . . . . . . . . . . . .

452 452

450 450 451

451 451 451

452 452 41

A Complete Guide to GST Q.28 Whether a proper officer can issue order under summary assessment without getting permission from the Additional/Joint Commissioner? . . . . . . . 453 Q.29 Can a summary assessment order be withdrawn? Who can withdraw such order and under what circumstances?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 453 Q.30 What are the tax implications of withdrawal of summary assessment order?. . . . 453 Assessment proceedings not to be invalid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 454 Q.31 What are the situations in which assessment proceedings will not be considered invalid?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 454 Q.32 In what cases, service of any notice, order or communication shall not be called?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 454 Rectification of mistakes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.33 Can rectification of mistakes be done? What are the documents which can be rectified?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.34 Can rectification be carried out beyond a period of six months?. . . . . . . . . . . . . .

Q.35 Can any substantive part of order etc be rectified? . . . . . . . . . . . . . . . . . . . . . . . . .

Chapter 25 Q.1 Q.2 Q.3 Q.4 Q.5 Q.6 Q.7 Q.8 Q.9 Q.10 Q.11 Q.12 Q.13 Q.14

42

454 454 454 455

Demand and recovery. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 457

In what cases, demand proceedings could be initiated by the proper officer under GST law?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What are the demand and recovery provisions available to proper officer under GST law?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Whether proper officer is required to issue a detailed recurring show cause notice even for subsequent period or default on the same issue?. . . . . . . .

In case a defaulting assessee admits/accepts his default before issuance of show cause notice, can issuance of show cause notice to him be avoided?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Whether it is necessary to provide reasonable opportunity of being heard before issuing SCN/order to the taxable person?. . . . . . . . . . . . . . . . . . . . .

In case proper officer does not concur with the amount of deposit made by defaulting assessee, what course of action would be available to him?. . .

In case defaulting assessee pays the defaulted amount after issuance of show cause notice to him, what reliefs will be available to such defaulter? . . . .

What is the meaning of ‘all proceedings in respect of the said tax shall be deemed to be concluded’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is the maximum penalty for default which can be levied by proper officer?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is the limitation period for concluding the demand proceedings by proper officer? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Whether the taxable person has any option to pay reduced penalty in case where the demand is raised under sec 51B?. . . . . . . . . . . . . . . . . . . . . . . . . . .

What is the limitation period for issuance of show cause notice by proper officer?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

How will be the limitation period counted in case of stay by court on issuance of show cause notice?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What shall be the consequences where notice is issued but order has not been passed within 3 years (in sec 51-A cases)/5 years (in sec 51-B cases)?. . . .

459 459 460 460 461 461 461 462 462 462 463 463 463 463

Table of contents Q.15 What would be the consequences of court setting aside the charges of fraud, willful misstatement or suppression of facts?. . . . . . . . . . . . . . . . . . . . . . . .

Q.16 Whether proper officer can determine the amount of tax payable by taxable person under sec 51A(1) or 51A(2) in case where grounds for reasons of fraud or any willful misstatement, based on which SCN/ order is issued under sec 51B(1) or 51B(2) are not sustainable?. . . . . . . . . . . . . . .

Q.17 Whether an opportunity of personal hearing is required to be granted to the person chargeable with tax?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.18 Can the person chargeable with tax seek adjournment of hearing? . . . . . . . . . . .

Q.19 Upto how many times an adjournment can be granted to a taxable person? . . .

Q.20 What discipline should be observed by proper officer while making an order of demand? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.21 Whether officer issuing Order can be the same person who issued SCN?. . . . . .

Q.22 Can appellate authority or tribunal or court modify the amount of tax determined by proper officer?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.23 Will the amount of interest and penalty change in case the amount of tax demanded is modified by any appellate authority? . . . . . . . . . . . . . . . . . . . . .

Q.24 Is it necessary to demand interest on defaulted tax in the order issued by proper officer? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.25 When would adjudication proceedings be deemed to be concluded?. . . . . . . . .

Q.26 What would be the limitation period in a case where the appeal on similar grounds is pending before any superior court for final disposal?. . . . . .

Tax collected but not deposited with the central or a state government. . . . . . . . . . . .

Q.27 What is the liability of a person who collects the tax under the GST law but is not very sure of its taxability?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.28 In case an assessee collects tax wrongfully but fails to deposit, what course of action is available to proper officer against such assessee?. . . . . . . . . .

Q.29 In case of defaulting assessee under sec 52, how shall the proper officer determine the tax liability?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.30 What is the time limit for issuance of an order under sec 52? . . . . . . . . . . . . . . . .

Q.31 What would be the treatment of amount already deposited under sec 52(1) of the Model GST law?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.32 How will surplus deposit be treated in case proceedings under sec 52(10) conclude with a surplus deposit made?. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.33 What are the rights of persons who have borne the incidence of tax amount of wrongfully paid tax which was not leviable under the Act?. . . . . . . .

464

464 464 464 464 465 465 465 465 465 466 466 466 466 467 467 467 468 468 468

Tax wrongfully collected and deposited with the central or a state government . . . . 468 Q.34 What would be the consequences of wrong deposit of tax on the taxable person on wrong consideration of inter-State transaction as intra-State transaction?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 468 Recovery of Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 469 Q.35 What are the different modes available to proper officer for recovery of defaulted amount of dues under the GST law? . . . . . . . . . . . . . . . . . . . . . . . . . . . . 469 Q.36 What shall be the liability of a person who has been issued notice to pay the amount on account of defaulter under GST law?. . . . . . . . . . . . . . . . . . . . 469

43

A Complete Guide to GST Q.37 Whether amount of tax payable can be recovered from bond or other instrument executed under the Act? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 470 Q.38 Whether proper officer of SGST/CGST during the course of recovery of tax dues, can recover amount of tax, interest or penalty which is payable to the central government/state government? . . . . . . . . . . . . . . . . . . . . . 470 Payment of tax and other amount in installments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 471 Q.39 Whether any facility of installments for payment of defaulted amount isallowed?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 471 Q.40 What are the consequences of default in payment of installment?. . . . . . . . . . . . 471 Transfer of property to be void in certain cases. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 471 Q.41 Can a defaulting person alienate any of his properties during the period of default? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 471 Q.42 What are the rights of an innocent buyer of property from a defaulted seller?. . . 471 Tax to be first charged on property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 472 Q.43 Can the properties of an assessee in default be attached? If yes, under what circumstances and by whom?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 472 Provisional attachment to protect revenue in certain cases . . . . . . . . . . . . . . . . . . . . . . . 472 Q.44 Whether properties of taxable persons can be provisionally attached?. . . . . . . . 472 Q.45 When will any provisional attachment order made under sec 58 remain valid?. . 472 Continuation of Certain Recovery Proceedings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.46 What is meant by government dues?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.47 What are the consequences of increase in government dues by appellate recovery court?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.48 What are the consequences of reduction in government dues by appellate recovery court?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Chapter 26 Q.1 Q.2 Q.3 Q.4 Q.5 Q.6 Q.7 Q.8 Q.9

44

472 472 473 473

Refunds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 475

What is meant by ‘refund’ in GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What could be other situations in which refund can be claimed by the taxable person? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Whether a taxable person is required to make an application for refund of any tax and interest or such amount shall automatically be refunded to the taxable person?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is the time limit of making an application for refund in GST? . . . . . . . . . .

Whether there is any provision for condonation of delay in filing refund claim beyond two years from the relevant date (where tax/ interest/amount is not paid under protest)?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Whether the time limit of two years will be applicable to payment under protest? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Which date shall be considered as ‘relevant date’ under different situations for the purpose of refund?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

When can a taxable person claim refund of any unutilized Input Tax Credit? . . .

What are the cases under which refund of unutilized Input Tax Credit shall not be allowed?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

475 475 476 476 476 476

476 478 478

Table of contents Q.10 Whether refund of unutilized Input Tax Credit can be allowed in case where export of goods is subject to export duty?. . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.11 How will the refund be claimed in relation to balance in the electronic cash ledger? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.12 What are the mandatory documents that are required to be attached with application of refund?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.13 How should one file refund application under sec 38?. . . . . . . . . . . . . . . . . . . . . .

Q.14 How should a refund application be made in case of export of goods and for supplies made to SEZ?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.15 What are the documents required to be filed along with refund applications to establish that refund is due to the applicant? . . . . . . . . . . . . . . . .

Q.16 What kind of declaration is required to be filed with refund application in cases where refund claim is of less than INR 5 lakhs? . . . . . . . . . . . . . . . . . . . .

Q.17 For a refund claim of more than INR 5 lakhs, is it necessary to file a declaration by a chartered accountant or cost accountant? . . . . . . . . . . . . . . . . . .

Q.18 Under what circumstances, it will be considered that incidence of tax has been passed on to recipient?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.19 How proper officer will allow refund of unutilized credit to the taxable person? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.20 How will refunds be processed in case of claim of refunds filed by exporters?. . .

Q.21 In case of refund claims of exports cases, whether Bank Realization Certificate (BRC) is necessary for granting refund?. . . . . . . . . . . . . . . . . . . . . . . . .

Q.22 Whether the principle of unjust enrichment be applicable to exports or deemed exports?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.23 Presently under Central Excise law, exporters are allowed to obtain duty paid inputs, avail Input Tax Credit on it and export goods upon payment of duty (after utilizing the ITC) and thereafter, claim refund of the duty paid on exports. Whether such refund system will continue in the GST regime? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.24 What is the maximum period within which the application of refund is required to be processed? What are the consequences of refund application not being processed within the stipulated time?. . . . . . . . . . . . . . . . .

Q.25 What types of refunds shall be paid to the applicant instead of being credited to the consumer welfare fund? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.26 Can refund be allowed on the direction of appellate tribunal or court or any other provision of the Act? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.27 Can the refund amount be withheld or adjusted by the proper officer of the department? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.28 What is the meaning of ‘specified date’ to be considered in sec 38(8)?. . . . . . . . .

Q.29 Can refund be withheld by the commissioner or board? If yes, under what grounds?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.30 Whether taxable person is entitled to receive interest on delayed refunds in case where refund amount is withheld by the proper officers under sec 38(9)?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.31 What is the minimum amount below which refund will not be paid?. . . . . . . . .

Q.32 How will pending refund claims be disposed off under earlier laws?. . . . . . . . .

479 479 479 479 479 480 481 481 481 481 481 482 483

483 483 483 484 484 484 485 485 485 485 45

A Complete Guide to GST Q.33 Whether refund of IGST wrongly deposited can be refunded?. . . . . . . . . . . . . . . 486 Interest on delayed payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 488 Q.34 When is interest on delayed refund payable?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 488 Q.35 What is the prescribed rate of interest payable on delayed refunds?. . . . . . . . . . 488 Consumer Welfare Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.36 What is meant by ‘consumer welfare fund’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.37 Under what circumstances, the sanctioned amount may be credited to consumer welfare fund?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.38 Which amounts will be credited to consumer welfare fund?. . . . . . . . . . . . . . . . .

488 488

Utilization of the Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.39 For what purposes consumer welfare fund is used?. . . . . . . . . . . . . . . . . . . . . . . .

Q.40 What is the procedure for rejection of application of refund filed by an applicant?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.41 In case of rejection of refund application, what would happen to the amount debited from input tax ledger?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

489 489

Chapter 27

488 488

489 489

Offences and penalties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 491

Offences and Penalties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.1 What is meant by ‘offences’ in GST? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.2 What is meant by ‘penalty’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.3 What are the specified offences which are liable to penalty detailed in GST law?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.4 What penalties have been prescribed for various offences under sec 66(1) of GST? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.5 What is the prescribed penalty for committing repeated offence of short payment of tax?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.6 What is meant by making short payment of tax ‘repeatedly’?. . . . . . . . . . . . . . . .

Q.7 What is the penalty prescribed for a person who opts for composition scheme despite being ineligible for the said scheme?. . . . . . . . . . . . . . . . . . . . . . .

Q.8 What are the other offences for which penalty has been prescribed?. . . . . . . . . .

Q.9 What is the difference between the penalty under sub-sec (1) and (3) of sec 66, as discussed above? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

491 491 492 492 493 494 495 495 495 496

General Penalty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 496 Q.10 What is the general penalty which can be levied for any violation for which no specific penalty has been prescribed?. . . . . . . . . . . . . . . . . . . . . . . . . . . . 496 General Disciplines related to Penalty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.11 What discipline has to be observed by tax authorities in levying penalty?. . . . .

Q.12 What discipline should be observed by the tax authorities where a person voluntarily discloses the breach of law before the discovery by the tax authority?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.13 What are the restrictions on imposing substantial penalties? . . . . . . . . . . . . . . . .

Q.14 When breach of law will be considered as a minor breach and easily rectifiable mistake?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

46

496 496 497 497 497

Table of contents Detention of Goods and Conveyance, and Levy of Penalty. . . . . . . . . . . . . . . . . . . . . . . 497 Q.15 Under what circumstances, goods and the conveyance can be detained?. . . . . . 497 Q.16 Who can detain the goods and conveyances?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 498 Q.17 How can the detained goods/conveyances be released?. . . . . . . . . . . . . . . . . . . . 498 Q.18 Whether proper officer can determine tax liability along with interest and penalty without giving a person reasonable opportunity of being heard? . 498 Confiscation of Goods and Levy of Penalty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 498 Q.19 What is meant by ‘Confiscation’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 498 Q.20 Under what circumstances, can goods be confiscated and penalty be levied? . . 498 Q.21 How are confiscated goods dealt with? What are the rights of owner of confiscated goods?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 499 Confiscation of Conveyances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 499 Q.22 Under what circumstances, any conveyance could be confiscated?. . . . . . . . . . . 499 Confiscation or Penalty not to interfere with Other Punishments. . . . . . . . . . . . . . . . . 500 Q.23 Whether any penalty can be levied even when fine has already been paid on confiscation? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500

Chapter 28

Search, seizure and summons. . . . . . . . . . . . . . . . . . . . . . . . . . . . 501

Search & Seizure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.1 What is meant by ‘search’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.2 What is meant by ‘seizure’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.3 What are the ‘powers of search and seizure’ related to and what does it convey?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.4 What are the powers in relation to search and seizure in GST law?. . . . . . . . . . .

Q.5 What is meant by ‘reason to believe’? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.6 Should ‘reasons to believe’ be recorded to initiate/order search?. . . . . . . . . . . . .

Q.7 What is meant by ‘secreted’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.8 What particulars should a search authorization (warrant) contain?. . . . . . . . . . .

Q.9 What places can be searched ?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.10 What are the essential conditions for search and seizure?. . . . . . . . . . . . . . . . . . .

Q.11 What powers does the authorized officer has in relation to search and seizure?. . .

Q.12 Under what situations, goods can be confiscated?. . . . . . . . . . . . . . . . . . . . . . . . . .

Q.13 For how long seized items can be retained?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.14 Whether the person searched is entitled to copies of documents seized? . . . . . .

Q.15 When will the seized material be returned to the person searched?. . . . . . . . . . .

Q.16 Whether the central/state government have any power to dispose off the seized material?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.17 Whether provisions of Code of Criminal Procedure, 1973 will apply to search cases also?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.18 What are the guiding principles for conduct of search?. . . . . . . . . . . . . . . . . . . . .

Q.19 What would happen when search conducted is held to be illegal, ie without proper authority?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

501 501 501 502 502 503 504 504 505 505 505 505 506 506 506 506 507 507 508 509

47

A Complete Guide to GST Summons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 509 Q.20 What is meant by ‘summon’? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 509 Q.21 What purpose does ‘summons’ serve?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 510 Q.22 What are the powers under GST law to issue summons?. . . . . . . . . . . . . . . . . . . . 510 Q.23 Summons are issued for production of documents etc. What does it imply?. . . 510 Q.24 Summons are generally seen as a harsh measure causing stress and fear in the mind of person summoned. Should ‘summons’ be resorted to in ordinary course of enquiry?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 510 Q.25 Should summon be issued in writing only?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 512 Q.26 Can the summons issued on the spot are valid?. . . . . . . . . . . . . . . . . . . . . . . . . . . . 512 Q.27 What are the obligations of a person who has been issued and served with a summon? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 512 Q.28 What is nature of summon proceedings? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 513 Q.29 What are the consequences of non-appearance or not responding to summons?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 513 Q.30 Whether there is any monetary penalty for non-responding to summons?. . . . . 513 Q.31 What are the other provisions of Indian Penal Code that may be relevant for the purpose of summoning enquiry?. . . . . . . . . . . . . . . . . . . . . . . . . . 513 Q.32 What course of action would the department adopt while taking action against the person summoned under sec 63 of the Model GST law? . . . . . . . . . . 514

Chapter 29 Q.1 Q.2 Q.3 Q.4 Q.5

Q.6 Q.7 Q.8 Q.9 Q.10 Q.11 Q.12 Q.13 Q.14

Arrest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 515

What is meant by ‘arrest’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What are the powers to arrest any person under the GST law?. . . . . . . . . . . . . . .

Who can arrest any person under GST law?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What are the offences punishable with ‘arrest ‘? . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is the requirement for information of grounds of arrest. Should the officer inform such grounds to the person being arrested?. . . . . . . . . . . . . . .

What are two types of offences for ‘arrest’? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is a cognizable offence?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is meant by non-cognizable offence?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is a ‘bailable offence’ and a ‘bail’? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Can a person be released in case of non-cognizable offence and bailable offence?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What are the rights of an arrested person?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What are the guidelines or provisions to be observed for arrest?. . . . . . . . . . . . .

What are the precautions and safe guards to be observed while arresting a person? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What are the principles/directions given by the Supreme Court in relation to arrest?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Chapter 30

515 515 515 515 516 516 517 517 517 517 518 518 518 520

Prosecution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 523

Prosecution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 523 Q.1 What is meant by ‘prosecution’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 523 Q.2 What is meant by ‘offence’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 524

48

Table of contents Q.3 Q.4 Q.5

What is meant by ‘conviction’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Who can be prosecuted under GST law?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What are the offences for which the offender can be punished and prosecuted against?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.6 What are the punishments which can be awarded against the offences as mentioned in specified offences (see Q.No. 5 above)? . . . . . . . . . . . . . . . . . . . .

Q.7 In there any relief from prosecution against non-supply of information or supply of false information?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.8 What are the prosecution provisions in case of repeated offence(s)?. . . . . . . . . .

Q.9 What are cognizable and non-cognizable offences?. . . . . . . . . . . . . . . . . . . . . . . . .

Q.10 Whether a person can be prosecuted without approval from a designated authority?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.11 What is the minimum punishment?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

524 525 525 526 526 527 527 527 527

Cognizance of Offences. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 527 Q.12 What are cognizable offences and non-cognizable offences?. . . . . . . . . . . . . . . . . 527 Q.13 Who shall take cognizance of offences?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 528 Presumption of Culpable Mental State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 528 Q.14 Is ‘mens rea’ an essential condition for prosecution?. . . . . . . . . . . . . . . . . . . . . . . . 528 Q.15 What is meant by ‘culpable mental state’? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 528 Q.16 In what situation, should the court presume ‘culpable mental state’?. . . . . . . . . 529 Q.17 Whether opportunity is allowed to the accused to defend himself?. . . . . . . . . . . 529 Q.18 How and when will a fact be proved by court?. . . . . . . . . . . . . . . . . . . . . . . . . . . . 529 Relevancy of Statement under certain Circumstances . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.19 What are the circumstances under which statements made/recorded/ signed by any person can be considered as relevant?. . . . . . . . . . . . . . . . . . . . . . .

Q.20 Can such statement be used against the person who made such statement? . . .

Q.21 Can statement be used in proceedings, other than court, also?. . . . . . . . . . . . . . .

530

Offences by Companies and Other Persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.22 What is meant by ‘company’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.23 Who is a ‘director’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.24 Who shall be held guilty and prosecuted in case of offences which are committed by a company?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.25 Who will be held guilty where someone else has consented or connived with the company for an offence committed by the company ?. . . . . .

Q.26 Who shall be held guilty and punishable where offence has been committed by a taxable person, not being a company?. . . . . . . . . . . . . . . . . . . . . .

Q.27 In what situations, a person cannot be held to be liable to any punishment under sec 77?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

530 530 531

Chapter 31 Q.1 Q.2 Q.3 Q.4

530 530 530

531 531 532 532

Compounding of offences. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 533

What is meant by ‘compounding’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What types of offences can be compounded?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What are the restrictions on compounding of offences?. . . . . . . . . . . . . . . . . . . . .

What amount should be paid for compounding? . . . . . . . . . . . . . . . . . . . . . . . . . .

533 534 534 536

49

A Complete Guide to GST Q.5 Q.6 Q.7 Q.8

What are the other conditions subject to which compounding of offences is allowed?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Is there any limit on amount for compounding of offences?. . . . . . . . . . . . . . . . .

Who will determine the compounding amount?. . . . . . . . . . . . . . . . . . . . . . . . . . .

What shall be the consequences of payment of compounding amount?. . . . . . .

Chapter 32

536 536 536 537

Appeals and revision. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 539

Gist of appeal provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 540 Q.1 What is meant by ‘appellate tribunal’? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 543 Q.2 What is meant by ‘first appellate authority?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 543 Appeal to first appellate authority. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.3 Who can file an appeal before first appellate authority and against what?. . . . .

Q.4 Whether all orders are appealable and assessee has a right to appeal? . . . . . . . .

Q.5 Who is an adjudicating authority?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.6 What is the time limit of filing appeal to first appellate authority?. . . . . . . . . . . .

Q.7 Can the delay in filing an appeal be condoned and period extended?. . . . . . . . .

Q.8 Where commissioner of CGST feels that the order passed is not legal and proper, whether he can revise the order on his own?. . . . . . . . . . . . . . . . . . .

Q.9 What is the manner of filing appeal?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.10 Whether appeal is required to be filed alongwith deposit? . . . . . . . . . . . . . . . . . .

Q.11 What is meant by ‘amount in dispute’ for the purpose of depositing the amount for filing appeal?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.12 Whether the department can seek deposit of higher amount than 10 percent?. . .

Q.13 The provision of deposit of amount more than 10 percent may be invoked only in ‘serious cases’. What is meant by ‘serious case’?. . . . . . . . . . . . .

Q.14 Whether opportunity of being heard (personal hearing) be allowed to the appellant?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.15 Will adjournments for personal hearing be allowed?. . . . . . . . . . . . . . . . . . . . . . .

Q.16 Can any additional ground of appeal be pressed during the course of hearing? . .

Q.17 In what manner, an order in appeal should be passed by the first appellate authority? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.18 What type of order should be issued by first appellate authority?. . . . . . . . . . . .

Revision powers of commissioners. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.19 Is revision applicable to CGST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.20 Can orders be revised?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.21 What are the powers of revision by the commissioner?. . . . . . . . . . . . . . . . . . . . .

Q.22 In what situations, commissioner cannot exercise revision powers? . . . . . . . . . .

Q.23 Can revision be exercised on any point not covered in or raised in appeal filed?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.24 Whether revision order is an appealable order?. . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.25 Whether the period of stay/pendency of appeal shall be considered while counting three years?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

543 543 543 543 544 544 545 545 545 546 546 546 547 547 547 548 549 549 549 549 549 550 550 551 551

Constitution of national appellate tribunal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 551 Q.26 Who will constitute the national goods and service tax appellate tribunal?. . . . 551 Q.27 What shall be the unique features of appellate tribunal?. . . . . . . . . . . . . . . . . . . . 551 50

Table of contents Appeals to appellate tribunal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.28 What type of appeals could be filed to appellate tribunal under sec 82?. . . . . . .

Q.29 In there any monetary limit for admitting appeals by the appellate tribunal?. .

Q.30 What is the time period for filing appeal?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.31 When and by whom cross objections are required to be filed? . . . . . . . . . . . . . . .

Q.32 Whether delay in filing appeal or cross objections be condoned by the tribunal? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.33 Whether any fee is required to be filed with appeal? . . . . . . . . . . . . . . . . . . . . . . .

Q.34 Whether pre-deposit is required to be made alongwith appeal?. . . . . . . . . . . . . .

Q.35 What does ‘amount in dispute’ mean?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.36 Can the department request for a higher amount of pre-deposit? . . . . . . . . . . . .

Q.37 Whether the pre-deposit shall apply to cross objections also?. . . . . . . . . . . . . . . .

Q.38 Whether fee shall be payable for miscellaneous application filed before the tribunal?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.39 Whether fee shall be payable where application is filed by department? . . . . . .

552 552 552 552 553

Orders of appellate tribunal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.40 In what manner, appellate tribunal shall pass orders?. . . . . . . . . . . . . . . . . . . . . .

Q.41 Whether appellate tribunal can grant time/adjournments while hearing appeals? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.42 Can the appellate tribunal amend or rectify its orders? . . . . . . . . . . . . . . . . . . . . .

Q.43 Can rectified order be rectified again?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.44 What is the time frame for deciding the appeal?. . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.45 How shall the tribunal distribute the copies of order passed by it? . . . . . . . . . . .

Q.46 Whether the order passed by the appellate tribunal is final?. . . . . . . . . . . . . . . . .

554 554

553 553 553 553 554 554 554 554

555 555 555 556 556 556

Procedure of appellate tribunal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 556 Q.47 How does the appellate tribunal function?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 556 Q.48 In what cases, tribunal can discharge its functions by way of a single member bench?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 556 Q.49 How will appellate tribunal decide the matters before it, in case of bench comprising of more than one member?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 557 Q.50 What would happen if the bench is equally divided ie there is no majority?. . . 557 Q.51 How will appellate tribunal regulate its functioning?. . . . . . . . . . . . . . . . . . . . . . . 557 Q.52 What are the powers of appellate tribunal for discharging its functions?. . . . . . 557 Q.53 Whether appellate tribunal proceedings are judicial proceedings?. . . . . . . . . . . . 558 Interest on delayed refund of pre-deposit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 558 Q.54 Whether interest will be payable on delayed refund of pre-deposit made by the appellant under sec 79 or 82 of the Model GST law? . . . . . . . . . . . . 558 Q.55 What shall be the rate of interest payable on delayed refund of pre-deposit?. . . . 558 Appearance by authorized representative. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.56 Who can appear by an authorized representative?. . . . . . . . . . . . . . . . . . . . . . . . .

Q.57 When can a person not appoint an authorized representative?. . . . . . . . . . . . . . .

Q.58 Before what authorities a person can appear by an authorized representative?. .

Q.59 Who is an ‘authorized representative’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

558 558 559 559 559

51

A Complete Guide to GST Q.60 Who can be appointed to act as an authorized representative?. . . . . . . . . . . . . . .

Q.61 Whether former government officers (gazetted) working in indirect tax departments, can be appointed as an authorized representative?. . . . . . . . . . . . .

Q.62 Who are not qualified to represent as an authorized representative?. . . . . . . . . .

Q.63 Whether persons found guilty of misconduct be appointed as an authorized representative?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.64 What are the remedies available to the person who has been disqualified to act as an authorized representative?. . . . . . . . . . . . . . . . . . . . . . . .

559

Appeal to high court. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.65 What type of orders can be appealed to the high court?. . . . . . . . . . . . . . . . . . . . .

Q.66 Are there any restrictions on filing appeal to high court?. . . . . . . . . . . . . . . . . . . .

Q.67 What are the procedural requirements for filing an appeal to high court? . . . . .

Q.68 What shall high court do in respect of question of law and determination of any issue?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.69 Whether provisions of Code of Civil Procedure, 1908 will apply to high court appeals? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

561 561 561 562

Appeal to and hearing before supreme court. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.70 Against what orders or judgments, an appeal would lie before the supreme court? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.71 In what matters, appeal shall lie before supreme court against orders of appellate tribunal?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.72 Whether the provisions of Code of Civil Procedure, 1908 apply to appeals before supreme court?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.73 Whether appeal to supreme court shall affect payment of amounts due to government? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.74 Who shall bear the costs of appeal? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.75 How shall the order of supreme court be given effect where it results in variation or reversal of order in appeal?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

563

560 560 560 561

562 563

563 563 563 564 564 564

Sums due to be paid notwithstanding appeal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 564 Q.76 Whether sums due to the department as per order of appellate tribunal are payable despite appeal being preferred to high court or supreme court?. . . 564 Q.77 Is there a provision for pre-deposit in such cases?. . . . . . . . . . . . . . . . . . . . . . . . . . 564 Exclusion of time taken for copy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 565 Q.78 Whether the time taken for copy of order be excluded for the period of limitation?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 565 Q.79 What will be the case when order has been served?. . . . . . . . . . . . . . . . . . . . . . . . 565 Appeal not be filed in certain cases. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.80 Whether there can be any monetary citing for filing appeals?. . . . . . . . . . . . . . . .

Q.81 Does non-filing of appeal by officer preclude him from filing appeals in other similar cases?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.82 Where appeal has not been filed, can the other party contend that he has been acquiesced on disputed issue? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.83 Whether non filing be considered as precedent?. . . . . . . . . . . . . . . . . . . . . . . . . . .

52

565 565 565 566 566

Table of contents Non-appealable decisions and orders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 566 Q.84 What are non-appealable decisions/orders under GST law?. . . . . . . . . . . . . . . . . 566 Q.85 Since sec 92 stipulates that certain orders/decisions are nonappealable, what is the remedy?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 566

Chapter 33

Advance ruling. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 567

Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.1 What is meant by ‘advance ruling’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.2 What is meant by ‘applicant’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.3 What is meant by ‘application’ for the purpose of advance ruling?. . . . . . . . . . .

Q.4 What is meant by ‘authority’? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.5 What is meant by ‘appellate authority’? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.6 What are the objectives of having a mechanism of advance ruling?. . . . . . . . . . .

Q.7 What are the advantages of advance ruling to a taxable person under GST?. . .

569 569 569 569 570 570 570 570

Authority for advance ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.8 Where the office of authority shall be located?. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.9 What will be the composition of authority for advance rulings (AAR)? . . . . . . .

Q.10 Who can appoint members of the authority?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.11 What are the qualifications and eligibility conditions etc of the members?. . . . .

Q.12 What will be the jurisdiction of the authority?. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

571 571 571 571 571 571

Appellate authority for advance ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 571 Q.13 Where should the office of appellate authority be located?. . . . . . . . . . . . . . . . . . 571 Q.14 What will be the composition of appellate authority for advance rulings (AAAR)?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 572 Application for advance ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 572 Q.15 Who can make an application for advance ruling and what is the manner of application?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 572 Q.16 What are the question(s) on which advance ruling can be sought? . . . . . . . . . . . 572 Procedure on receipt of application. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.17 What is the procedure for obtaining advance ruling with regard to supply of goods and/or services, made by an applicant to authority for advance ruling?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.18 Under what circumstances, application for advance ruling shall not be considered by the authority?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.19 Whether authority can reject the application made by an applicant without giving an opportunity of being heard?. . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.20 Whether authority is required to intimate the reasons for rejection of application to the applicant?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.21 Can the advance ruling be given orally?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.22 When can a reference be made to the appellate authority for advance ruling?. . .

Q.23 What is the time limit of pronouncing advance ruling by the authority or appellate authority?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.24 When advance ruling cannot be issued even after making a reference to the appellate authority?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

573 573 574 574 574 574 575 575 575

53

A Complete Guide to GST Q.25 How shall advance ruling pronounced by the authority or appellate authority be sent to the applicant and the concerned officers? . . . . . . . . . . . . . . . 575 Appeal to the appellate authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 577 Q.26 Who can file an appeal before the appellate authority for advance ruling?. . . . . 577 Q.27 What is the time limit for filing an appeal before the appellate authority for advance ruling? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 577 Q.28 What is meant by ‘prescribed officer’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 577 Q.29 Can a person other than departmental officer or applicant challenge the ruling before the appellate authority?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 577 Q.30 Whether appeal can be made to appellate authority in respect of question(s) which were not stated in the original application made by the applicant to the authority?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 577 Orders of the appellate authority. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.31 Whether appellate authority should provide an opportunity of hearing before passing an order against the advance ruling of the authority appealed against under sec 99?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.32 What is the time limit for passing of an order by the appellate authority for advance ruling? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.33 Under what circumstances, advance ruling by appellate authority cannot be issued in respect of the question covered under the appeal?. . . . . . . .

Q.34 How shall advance ruling pronounced be sent to the applicant and the prescribed officers?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.35 Whether any advance ruling order may be rectified by the authority or appellate authority? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.36 What is the time limit for amendment/rectification of advance ruling? . . . . . . .

Q.37 Under what circumstances, a notice is required to be issued to the applicant or appellant, as the case may be, before rectification of an advance ruling order?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.38 Whether authority or appellate authority can amend or rectify substantial part of order?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

577 577 578 578 578 578 578 579 579

Applicability of advance ruling. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.39 On whom, advance ruling pronounced by the authority or appellate authority shall be binding? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.40 Whether advance ruling is applicable to similarly placed person who is residing in the same state in which applicant is residing?. . . . . . . . . . . . . . . . . . .

Q.41 Whether advance ruling pronounced by the authority or appellate authority shall be binding in case where law, facts or circumstances have changed?. . . . .

Q.42 What is the time period for applicability of advance ruling?. . . . . . . . . . . . . . . . .

579

Advance ruling to be void in certain circumstances . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.43 Under what circumstances advance ruling may be declared as void?. . . . . . . . .

Q.44 What are the consequences in case where advance ruling is declared as void ab initio?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.45 When can an order declaring advance ruling to be void, be passed by the authority or appellate authority?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.46 Whether a copy of order under sec 103(1) is required to be sent to applicant or prescribed officer?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

580 580

54

579 579 579 580

580 580 580

Table of contents Powers of the authority and appellate authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.47 What are the powers vested with the authority and the appellate authority?. . .

Q.48 Whether the authority or the appellate authority shall be deemed to be a civil court?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.49 Whether all the proceedings before the authority shall be deemed to be a judicial proceedings?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

581 581 581 581

Procedure of the authority and the appellate authority . . . . . . . . . . . . . . . . . . . . . . . . . . 582 Q.50 Who shall determine the procedure to be followed by the authority or the appellate authority?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 582

Chapter 34

Information returns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 583

Obligation to furnish information return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.1 What is the meaning of ‘information return’ in GST? In what way it can be useful to the tax authorities?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.2 Who is required to file information return? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.3 What information is kept by these persons due to which they have been made liable for filing of information return?. . . . . . . . . . . . . . . . . . . . . . . . . .

Q.4 What would be the consequences where information supplied in the return is found to be defective?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.5 What is the time limit allowed for rectification of information furnished?. . . . .

Q.6 What would be the consequences of non-rectifying the defects when asked for by specified authority? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.7 What would be the consequences of non-submission of information return?. . .

583 583 584 584 585 585 585 586

Penalty for failure to furnish information return. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 586 Q.8 What is the penalty for failure to furnish information return?. . . . . . . . . . . . . . . . 586 Power to collect statics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.9 What kind of statistics may be collected by the board/commissioner under GST Act?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.10 What is the manner of collecting statistics in relation to administration of GST? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.11 What particulars should be contained in the notice calling for the information?. . .

Disclosure of information required under section 119. . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.12 Can personal or confidential tax information be sought for public disclosure?. . . .

Q.13 Who can have access to information collected under the provisions of GST?. . .

Q.14 What are the consequences of non-furnishing or wrong furnishing of statistics under sec 119? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.15 What are the consequences of disclosure of information without proper sanction? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.16 Can prosecution under sec 120 be instituted without sanction of government?. . . .

Q.17 What kind of information can be published under this Act?. . . . . . . . . . . . . . . . .

586 586 586 587 587 587 587 587 588 588 588

Person discharging functions under the Act shall be deemed to be public servants . . . . 588 Q.18 Who is a public servant under GST? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 588 Disclosure of information by a public servant. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 589 Q.19 What shall be treated as confidential information in GST?. . . . . . . . . . . . . . . . . . . 589 55

A Complete Guide to GST Q.20 Can courts require GST officers to produce confidential information before it?. . 589 Q.21 What are the consequences of disclosure of information by GST officers without sanction? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 589 Q.22 To whom the confidential information can be disclosed?. . . . . . . . . . . . . . . . . . . . 589 Publication of information respecting persons in certain cases . . . . . . . . . . . . . . . . . . .

Q.23 Under what circumstances, the information of personal nature can be published? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.24 When can information relating to penalty imposed under the Act be published? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.25 Can the names of individuals charged with punishment also be published?. . .

Chapter 35 Q.1 Q.2 Q.3 Q.4

Q.5 Q.6 Q.7 Q.8 Q.1 Q.2 Q.3

590 590 591

GST compliance rating. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 593

Who shall be given or assigned rating score for compliances? . . . . . . . . . . . . . . .

Whether all tax payers will be assigned compliance rating? . . . . . . . . . . . . . . . . .

On what basis compliance rating scores will be given? . . . . . . . . . . . . . . . . . . . . .

How will GST compliance rating scores be updated/intimated to all concerned?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What would be the likely parameters for compliance rating?. . . . . . . . . . . . . . . .

What could be compliance ratings used for? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Who will do the rating and monitor scores?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What are the expected consequences of compliance rating? . . . . . . . . . . . . . . . . .

Chapter 36

590

593 593 593

593 593 593 594 594

Transitional provisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 595

What is the meaning of ‘appointed day’? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is the meaning of ‘earlier law’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The existing tax officers have been appointed under existing tax laws.

Whether new set of officers shall be appointed for regulation and administration of GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Under what circumstances, central or state governments may issue order or make rules for transition to GST? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

603 604

Migration of existing taxpayers to GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.5 Where the assessee is already registered in Central Excise/Service Tax/State VAT Act, whether such assessee requires another/fresh registration under GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.6 Where the taxable person is already registered under Central Excise, Service Tax, Central Sales Tax or State VAT etc which registration should he use to migrate to GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.7 What is the maximum time limit allowed to assessee who is already registered for making application in Form GST REG – 20? Can this time limit be extended? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.8 What are the consequences of such assessee failing to file Form GST REG – 20 within 6 months? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.9 What is the mandatory requirement for automatic migration of existing assessee Excise/Service Tax/VAT number to the GST system?. . . . . . .

Q.10 The present turnover of an existing assessee is INR 10 lakhs. He is registered with VAT department but owing to his small profits,

605

Q.4

56

604 604

605 605 605 605 606

Table of contents

Q.11

Q.12

Q.13 Q.14 Q.15 Q.16 Q.17 Q.18 Q.19

he doesn’t file income tax returns. In such a case, whether his VAT registration will be automatically transferred to GST network? If not, then what would be his status in GST? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The assessee is a registered taxable person under the VAT laws having a turnover of INR 15 lakhs. Having known that he will not be liable for registration under GST law due to threshold limit and may not like to continue his registration, what is the course of action for him?. . . . . . . . . . . . . . .

An existing registered taxable person deals in electrical goods and is registered under state VAT laws. Recently he started business of consultancy in electrical but not registered under the Service Tax law as his current year turnover being less than INR 10 lakhs. Can he show himself in the business of consultancy in Form GST REG – 20 besides his business of trading in electrical goods?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is the procedure for migration of persons to the GST law, already registered under earlier laws?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Whether the person registered as input service distributor (ISD) will also follow the same procedure?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

When will provisional certificate be issued to existing registered taxable persons? When will they get final registration certificate?. . . . . . . . . . . .

Whether there is any concept of ‘deemed enrolment’ in GST? Can the application form for enrolment be rejected?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What information should be readily available with the person before he enrolls with GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What user name and password will be required to log in to common portal in GST? Can the person himself create his own user ID and password?. . .

Who can be the primary authorised signatory?. . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amount of CENVAT credit carried forward in a return to be allowed as Input Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.20 What is the importance of ‘electronic credit ledger’ in relation to Input Tax Credit/CENVAT etc?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.21 Whether balance of CENVAT credit in Central Excise/Service Tax be allowed to be carried forward in GST? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.22 Whether balance of Input Tax Credit in state VAT to be allowed to be carried forward in GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.23 Whether any credit will be allowed on stocks lying at branches (depots)?. . . . .

Q.24 Whether registered taxable person is allowed to take CENVAT credit on items on which credit was not allowed in earlier tax laws but credit is allowed in CGST/SGST law?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.25 Whether amount of CENVAT credit taken can be recovered as an arrear of tax from registered taxable person in case where it is found to be recoverable under CGST/SGST law?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.26 Will education cess and secondary and higher education cess which is being carried forward as per the return, be allowed to be carried forward as CGST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.27 Will there be any differential treatment of swachh bharat cess and krishi kalyan cess wrt carry forward as CGST? . . . . . . . . . . . . . . . . . . . . . . . . . . . .

606

606

606 607 607 608 608 608 609 609 611 611 611 611 611 612 612 612 613

57

A Complete Guide to GST Q.28 If the amount of duty, tax or cess carried forward as per the accounts is different from the return, which amount will be allowed to be carried forward?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 613 Unavailed CENVAT credit on capital goods, not carried forward in a return, to be allowed in certain circumstances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 613 Q.29 Where the capital goods used by registered taxable person were eligible for CENVAT credit/Input Tax Credit in installments in Central Excise/Service Tax/VAT law, what would happen to such unavailed credit?. . 613 Q.30 What would be the status of CENVAT credit in respect of items invoiced before the appointed day but received by the taxable person after the appointed day?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 614 Q.31 What amount of CENVAT credit/Input Tax Credit will be allowed to be carried forward? Are there any conditions attached to it?. . . . . . . . . . . . . . . . . 614 Q.32 Where a taxable person was not liable to be registered under earlier law but may be liable to be registered under GST, whether such person will be eligible for any opening credit in GST regime?. . . . . . . . . . . . . . . . . . . . . . 614 Q.33 Can unavailed Input Tax Credit on capital goods be taken in GST law if the same was not taken in the earlier law?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 615 Q.34 What is meant by ‘unavailed CENVAT credit’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . 615 Credit of eligible duties and taxes in respect of inputs held in stock to be allowed in certain situations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 615 Q.35 A registered person was dealing in exempted goods earlier but in GST regime, his product is a taxable product. Would such person be eligible for credit of items lying in his stocks? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 615 Q.36 Would a taxable person not registered/registered person in earlier law dealing in exempted goods get credit? If yes, what are the conditions for the same? Would some conditions be checked for his eligibility of credit in GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 615 Credit of eligible duties and taxes on inputs held in stock to be allowed to a taxable person switching over from composition scheme. . . . . . . . . . . . . . . . . . . . . . . . 616 Q.37 Where a registered taxable person opts for payment of tax in composition scheme, whether such person will be eligible for opening input credit on his stocks in GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 616 Q.38 Would a taxable person paying tax as composition levy in earlier law will get unconditional credit? If yes, what are the conditions for eligibility of credit in GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 616 Q.39 What could be eligible taxes under the provisions of sec 145 and 146 of Model GST law?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 617 Q.40 There may be continuing disputes on eligibility of CENVAT Credit/ Input Tax Credit under the earlier law. Whether such disputed amount will also be allowed to be carried forward? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 617 Q.41 What if some dispute is decided against the registered person and he is required to reverse the credit amount? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 617 Q.42 What will happen if the inputs, which are intended for use for making taxable supplies are ultimately used for exempt supplies? . . . . . . . . . . . . . . . . . . 618

58

Table of contents Amount payable in the event of a taxable person switching over to the composition scheme. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 618 Q.43 A registered taxable person paying tax and presently claiming eligible credits wishes to switch over to composition levy under sec 8 of Model GST law. What would be tax implications for such person? . . . . . . . . . . . . . . . . . 618 Q.44 What process would a presently regular registered taxable person, desirous of switching over to composition scheme in GST need to follow? . . . . 618 Exempted goods returned to the place of business on or after the appointed day . . . 619 Q.45 Some goods were exempted in earlier law but are taxable in GST. If such goods are returned by the purchaser of such goods to the seller after the appointed day, what would be the tax implication in GST?. . . . . . . . . . 619 Duty paid goods returned to the place of business on or after the appointed day. . .

Q.46 Post GST implementation, what would be the tax implication where duty paid goods are returned by the purchaser of such goods to the seller of such goods, post the appointed day? . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.47 Whether a taxable person shall be entitled to take Input Tax Credit of duty paid earlier in respect of goods received back by him?. . . . . . . . . . . . . . . . .

Q.48 What is the difference between sec 148 and sec 149 of the Model GST law?. . . .

620 620 620 620

Inputs removed for job work and returned on or after the appointed day. . . . . . . . . . 620 Q.49 Where any inputs received in factory were removed for job work after complying with provisions under earlier law, what would be tax implications when these are returned by job worker in GST regime? . . . . . . . . . 620 Semi-finished goods removed for job work and returned on or after the appointed day . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 621 Q.50 Where semi-finished goods were removed for further processing after complying with provisions under earlier law, what would be tax implications when these are returned by job worker in GST regime? . . . . . . . . . 621 Finished goods removed for carrying out certain processes and returned on or after the appointed day. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 622 Q.51 Where finished goods were removed for tests or such other process after complying with provisions under earlier law, what would be tax implication when these finished goods are returned by job worker in GST regime?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 622 Issue of supplementary invoices, debit or credit notes where price is revised in pursuance of a contract. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 623 Q.52 There could be cases of price revisions in respect of goods/services supplied before the appointed day. How would these revisions be dealt with under GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 623 Pending refund claims to be disposed off under earlier law. . . . . . . . . . . . . . . . . . . . . . 623 Q.53 Any refund claims in respect of tax/duty and interest were pending for disposal on appointed day. How will these claims be processed in GST?. . . 623 Claim of credit to be disposed off under the earlier law . . . . . . . . . . . . . . . . . . . . . . . . . 623 Q.54 Where some proceedings in respect of CENVAT credit were pending for disposal on appointed day, how will result of these proceedings be effected in GST regime?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 623 59

A Complete Guide to GST Finalization of proceedings relating to output duty liability . . . . . . . . . . . . . . . . . . . . . 624 Q.55 Where some proceedings in respect of output tax liability were pending for disposal on appointed day, how will result of these proceedings be effected, dealt in GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 624 Treatment of the amount recovered or refunded in pursuance of assessment or adjudication proceedings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 624 Q.56 Assessment or adjudication proceedings of period before the appointed day may result in refund or demand of tax. After the appointed day, how will these demands and refunds of tax be dealt with?. . . . 624 Treatment of the amount recovered or refunded pursuant to revision of returns. . . . 625 Q.57 In case revision is carried out of returns filed under the earlier law, how will amount recoverable or refundable on account of such revision be dealt with under GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 625 Treatment of long-term construction/works contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . 625 Q.58 Where supply of goods and/or services have been made under GST in respect of long term construction contracts entered before appointed day, what taxes will be chargeable on such supplies?. . . . . . . . . . . . . . . . . . . . . . . 625 Progressive or periodic supply of goods or services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 625 Q.59 Where supply of goods and/or services have been made under GST in respect of which payment was received before appointed day, what taxes will be chargeable on such supplies?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 625 Treatment of retention payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 626 Q.60 Where supply of goods and/or services were made before appointed day and payment in respect of supply has been made after appointed day, what taxes will be chargeable on receipt of such consideration? . . . . . . . . . 626 Credit distribution of service tax by ISD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 626 Q.61 How will ISD distribute credit of services received prior to appointed day?. . . 626 Tax paid on goods lying with agents to be allowed as credit . . . . . . . . . . . . . . . . . . . . . 626 Q.62 Where on appointed day, some goods were lying with agents, how will such goods be dealt under SGST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 626 Tax paid on capital goods lying with agents to be allowed as credit. . . . . . . . . . . . . . . 627 Q.63 Where on the appointed day, some capital goods were lying with agents, how will such goods be dealt under SGST?. . . . . . . . . . . . . . . . . . . . . . . . . 627 Treatment of branch transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 627 Q.64 Under the VAT laws, Input Tax Credit is required to be reversed on branch transfers. Would there be refund of such Input Tax Credit reversed on branch transfers after the appointed day in SGST? . . . . . . . . . . . . . . 627 Goods sent on approval basis returned on or after the appointed day . . . . . . . . . . . . . 627 Q.65 Where goods were sent on approval basis before the appointed day but were rejected after the appointed day, how will be their tax liability under GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 627

60

Table of contents Deduction of tax at source. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 628 Q.66 Where on transactions of sale of goods, TDS was required to be deducted under earlier law but payment of said sale is made after the appointed day, what would be its treatment under the GST law? . . . . . . . . . . . . 628

Chapter 37

Miscellaneous provisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 629

Presumption as to documents in certain cases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.1 What is meant by ‘document’? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.2 What is the meaning of ‘presumption’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.3 Can the documents produced or seized from a person be denied of its truth, in case they are brought in a court of law as evidence?. . . . . . . . . . . . . . . .

Admissibility of micro films, facsimile copies of documents and computer printouts as documents and as evidence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.4 What is meant by ‘computer’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.5 What is meant by micro films, facsimile copies of documents and computer printouts?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.6 Under what circumstances, the micro films, facsimile copies of documents and computer printouts can be admitted as evidence?. . . . . . . . . . . .

Q.7 What are the conditions that need to be satisfied in case of computer printouts containing a statement produced by the computer? . . . . . . . . . . . . . . .

Q.8 When a combination of computers can be considered as single computer in relation to storing or processing of information?. . . . . . . . . . . . . . . .

Q.9 When can a certificate be considered as evidence for the purpose of proceedings under GST? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.10 What are the common criterion to be kept in mind while considering of micro films, facsimile copies of documents and computer printouts as documents and as evidence?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.11 What is the scope of ‘any reference of information being derived from other information’ for the purpose of evidence? . . . . . . . . . . . . . . . . . . . . . . . . . . .

630 630 630 630 631 631 631 631 632 632 633 633 633

Test purchase of goods and/or services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 634 Q.12 What is the methodology provided under GST for checking by officer of, issue of tax invoice or bills by a taxable person and duties of taxable person in relation thereto?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 634 Q.13 Can an officer under GST draw samples from the possession of a taxable person? If yes, under whose authority?. . . . . . . . . . . . . . . . . . . . . . . . . . . . 634 Burden of proof. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 634 Q.14 The burden of proof of any claim or input credit is on whom?. . . . . . . . . . . . . . . 634 Indemnity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 635 Q.15 Can legal proceedings be brought against any GST officer in respect of his actions done under the Act or does he enjoy any indemnity?. . . . . . . . . . . . . 635 Assessments proceedings etc not to be invalid on certain grounds. . . . . . . . . . . . . . . . 635 Q.16 Whether any proceedings done under the Act can be declared invalid because of some mistakes or omission?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 635 Q.17 Can any notice, order or communication be questioned for any mistake, omission or defect in it, after acting upon on such notice?. . . . . . . . . . . 636 61

A Complete Guide to GST Rectification of mistakes or errors apparent from record. . . . . . . . . . . . . . . . . . . . . . . . .

Q.18 What is the meaning of ‘mistake apparent from record’?. . . . . . . . . . . . . . . . . . . .

Q.19 How can a rectification of mistakes apparent from record be rectified under GST law?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.20 What is the time limit for rectification of any mistake/error apparent from record?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.21 Is there any maximum period allowed for rectification of mistake?. . . . . . . . . . .

Q.22 Can any rectification change be done under sec 129 which has effect of increasing the liability of taxpayer?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.23 Can rectification be made in substantive portion of document while rectifying error under sec 129? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

636 636 636 637 637 637 638

Bar of jurisdiction of civil court. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 638 Q.24 Can any matter relating to GST be dealt with or decided by civil courts?. . . . . . 638 Levy of fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 638 Q.25 Can some fee be levied for issuance of a copy of the order or document?. . . . . . 638 Power of central (or state) government to make rules. . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.26 How will rules be made for the operation of GST?. . . . . . . . . . . . . . . . . . . . . . . . .

Q.27 What are the various matters on which central or state government may make rules? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.28 Whether central or state government can make any rules which are made effective from a retrospective date which is earlier than the date on which provisions of the GST Act come into force?. . . . . . . . . . . . . . . . . . . . . . .

Q.29 Can government provide for penalty for breach of rules?. . . . . . . . . . . . . . . . . . .

638 638 638 639 639

General power to make regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 639 Q.30 What are the general powers to make regulations under GST?. . . . . . . . . . . . . . . 639 Delegation of powers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 639 Q.31 Can a competent authority under the Act delegate his powers?. . . . . . . . . . . . . . 639 Instructions to GST officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 639 Q.32 Can competent authority under the Act give instructions to other GST officers?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 639 Q.33 Under what circumstances can order or instruction not be issued?. . . . . . . . . . . 640 Removal of difficulties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 640 Q.34 Who can remove difficulty in implementation of provisions under the Act?. . . 640 Q.35 What is the time limit of giving order for removing of difficulties under GST?. . . 640 Q.36 Whether it is necessary that every order made in respect of removal of difficulties shall be furnished before the parliament or state legislature? . . . . . . 640 Service of notice in certain circumstances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.37 What are the various methods of service of documents under the Act or Rules?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.38 When will the order etc be deemed to have been served? . . . . . . . . . . . . . . . . . . .

Q.39 When is a decision, order, summons, notice or any other communication deemed to be served, where such communication has been sent by registered post?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

62

640 640 641 641

Table of contents Rounding off of tax etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 641 Q.40 To what extent rounding off of any amount in GST will be allowed? . . . . . . . . . 641 Effect of amendment etc of rules, notifications or orders. . . . . . . . . . . . . . . . . . . . . . . . . 642 Q.41 What will be consequences of amendment or withdrawal of any notification or orders issued under the Act?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 642 Publication of rules/notifications and laying of rules before parliament/state legislatures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 642 Q.42 What is the role of parliament or state assembly in respect of modification of rule, notification?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 642 Q.43 Whether rules/notifications are required to be published in Official Gazette?. . . 643 Repeal and saving. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.44 On commencement of GST Act, whether Central Excise Act or State VAT Acts remain on statute books?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.45 What is meant by ‘unrestricted Acts’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.46 What is meant by ‘repealed Acts’?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.47 What are the existing laws which will be repealed on appointed day?

What effect will it have on existing continuing issues?. . . . . . . . . . . . . . . . . . . . . .

Chapter 38 Q.1 Q.2 Q.3 Q.4 Q.5 Q.6

Q.7 Q.8 Q.9 Q.10 Q.11 Q.12 Q.13 Q.14

Q.1 Q.2 Q.3 Q.4 Q.5

643 644 644 644

Charging provisions in IGST . . . . . . . . . . . . . . . . . . . . . . . . . . . . 645

What is meant by ‘Integrated Goods and Services Tax’ (IGST)?. . . . . . . . . . . . . .

What is the need for bringing IGST? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is meant by territory of ‘India’ for the purpose of IGST?. . . . . . . . . . . . . . .

What is meant by ‘import of goods’ into India?. . . . . . . . . . . . . . . . . . . . . . . . . . . .

How will import of goods be charged to tax under IGST?. . . . . . . . . . . . . . . . . . .

How would IGST be apportioned or passed on to the relevant state in case of goods being imported by the final consumers?. . . . . . . . . . . . . . . . . . . . . .

What is meant by ‘import of service’ in GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is meant by ‘export of goods’ in GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is meant by ‘export of services’ in GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What does ‘supply’ mean for IGST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

On what supplies IGST will be levied and it will be collected by whom?. . . . . .

Who will be responsible to levy and pay IGST to the government?. . . . . . . . . . .

Whether there is any threshold exemption limit in IGST?. . . . . . . . . . . . . . . . . . .

There are reverse charge provisions in GST law. Will these provisions be applicable to IGST also? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Chapter 39

643

645 646 646 646 647 647 647 647 648 648 649 649 649 649

Inter-state supply of goods and services. . . . . . . . . . . . . . . . . . . 651

What is the meaning of ‘appropriate state’ in IGST?. . . . . . . . . . . . . . . . . . . . . . . . 651 What is the meaning of ‘government” for the purpose of IGST?. . . . . . . . . . . . . . 651 What is the meaning and scope of ‘central government’?. . . . . . . . . . . . . . . . . . . . 652 When will supply of goods be considered to be made in inter-State trade and commerce?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 652 When will supply of services be considered to be made in the course of inter-State trade and commerce?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 653

63

A Complete Guide to GST Q.6 Q.7 Q.8 Q.9

When will supply of goods be considered to be made in the course of intra-State trade and commerce?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

When will supply of services be considered to be made in the course of intra-State trade and commerce?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What will be the status of supply of goods/services where the supply is effected from one city to another city but in the same state (say, from Noida to Lucknow)?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The supply of goods within same state needs to pass through another state, like in a situation where the supply of goods from Gurgaon in Haryana is to be made to Faridabad in Haryana need to pass through Delhi. What will be the status of such supply?. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Chapter 40

653 654

654

Place of supply of goods and/or services. . . . . . . . . . . . . . . . . . . 655

Place of supply of goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.1 What is meant by ‘place of supply’ and how it is relevant for GST?. . . . . . . . . . .

Q.2 How can place of supply of goods be determined?. . . . . . . . . . . . . . . . . . . . . . . . .

Q.3 How place of supply will be determined in respect of goods which require to be moved for their supply?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.4 What will be the place of supply of such goods where the supplier makes a sale on ‘FOR’ terms and needs to move the goods to recipient’s place?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.5 Supplier supplies the goods on ex-works terms and is requested by recipient to arrange for its supply to recipient’s place, what will be place of such goods?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.6 Where the supplier supplies the goods on ex-works terms and arranges for its delivery to recipient at his factory gate, who himself arranges for transportation of goods to his place, what would be place of supply of such goods? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.7 Where the supplier supplies the goods on ex-works terms and arranges for its delivery to recipient’s agent at his factory gate/business place, who arranges for its transportation to the place of recipient, what would be place of supply of such goods? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.8 How will the supplier keep record of movement of goods for goods supplied on ex-works basis? What shall be the consequences of nonkeeping of such records? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.9 How will the place of supply be determined in case where goods are supplied to a third person instead of the person to whom such supply is billed? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.10 The delivery of goods is made to a person different than the person to whom these goods are billed. What would be the place of such supply of goods?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.11 What is the difference between ‘delivery’ and ‘supply’? . . . . . . . . . . . . . . . . . . . .

Q.12 The goods are billed and transported to a person by his supplier.

Before the goods reach to such person, he arranges to sell these goods to another person and instructs the transporter to deliver the goods carried for him to such other person. What would be the place of supply of such goods? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

64

653

655 655 656 656 656 657

657

657 657 658 659 659

659

Table of contents Q.13 A sells to B and during the movement of such goods to B, B sells the same to C by transfer of documents in favour of C, still during the transportation of such goods C further sells to D. How will be the place of supply for such goods for A, B and C be determined for IGST?. . . . . . . . . . . .

Q.14 Whether the supplier would need to have a copy of transporter’s GR in case of each supply?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.15 What are the relevant documents for supply made with transfer of documents of title? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.16 How will place of supply of goods be determined for goods which are not required to be moved from their location?. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.17 Ram, a registered taxable person executed a contract in the state of Delhi. Since Ram did not have further job, he decided to dispose off the construction equipments. Shyam who got a construction contract in Delhi agreed to buy equipments from Ram. What would be the place of supply of such equipments for this transaction of supply of goods

by Ram to Shyam?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.18 Ram who is a registered taxable person in the state of Delhi had leased some machines to Shyam in the state of Tamil Nadu. If Shyam decides to buy these machines from Ram, what would be the place of supply of such machines? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.19 What are the rules of supply in respect of goods which are required to be installed or assembled to complete their supply?. . . . . . . . . . . . . . . . . . . . . . . .

Q.20 A Ltd., a lift manufacturer in the state of Delhi, has been asked by Shyam to fix lifts at his new offices in Gurgaon, Delhi and Mumbai.

How will A Ltd. determine place of supply of such supply contract?. . . . . . . . .

Q.21 Shyam engaged the services of a lift installer B and orders for all parts of lift from A Ltd. A Ltd. supplies the parts to Shyam. Lift was installed by B as per the order from Shyam. What will be the place of supply of this transaction?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.22 How will the place of supply of goods be determined which are supplied on board a conveyance?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.23 On a flight from Delhi to Ahmedabad, some goods are sold on board a flight. How will supply of such goods on an air-borne flight will be determined for taxation? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.24 Meals are supplied on board on Shatabdi and Rajdhani trains. A train from Delhi to Chandigarh passes through four tax jurisdictions, ie Delhi, Haryana, Punjab and Chandigarh. Food is supplied by a dealer located in the state of Delhi and is taken on board at Delhi. What will be the place of supply of goods in such transaction?. . . . . . . . . . . . . . . . . . . . . . . .

Q.25 If in the above example, meals are supplied by a person located in Noida (Uttar Pradesh), what will be the place of supply? . . . . . . . . . . . . . . . . . . .

Q.26 How will the place of supply be decided in case of import and export of goods?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.27 In case of a transaction of supply of goods, the place of which cannot be determined by application of any of the provisions, how will the place of supply be determined in such cases?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

660 661 661 661

662

662 662 663

663 663 663

664 664 664 665

65

A Complete Guide to GST Place of supply of services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.28 What are three important terms which will determine place of supply of service?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.29 What are the pre-requisites for ascertaining place of supply of services for specified services?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.30 What are the general principles to determine place of supply?. . . . . . . . . . . . . . .

Q.31 What are the challenges in ascertaining place of supply of services?. . . . . . . . . .

Q.32 What are the provisions of sec 6 on place of supply of services generally?. . . . .

Q.33 On what basis, place of supply of services shall be determined? . . . . . . . . . . . . .

Q.34 What is the general rule for place of supply of services? . . . . . . . . . . . . . . . . . . . .

Q.35 What shall be the general rule for ascertaining place of supply of services to registered persons? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.36 What shall be the general rule for ascertaining place of supply of services to unregistered persons?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.37 What is meant by ‘address on record’ for ascertaining location of person, other than a registered person?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.38 What will be the place of supply in relation to immovable property related services?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.39 What will be place of supply in case of property or boat or vessel located in more than one state?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.40 What will be place of supply in case of supply of restaurant, catering, personal grooming services which are to be personally consumed? . . . . . . . . . .

Q.41 How will place of services be determined in respect of training/ performance appraisal services?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.42 How will place of supply be determined of services in relation to admission to events?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.43 How will place of supply be determined for services of organizing events and auxiliary services in relation to organizing/sponsoring events?. . . .

Q.44 What would be the place of services where event is held in more than one state and a consolidated amount is charged for such services? . . . . . . . . . . .

Q.45 What will be the place of supply for services of goods transportation and courier services?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.46 What will be the place of supply for services of passenger transportation? . . . .

Q.47 How will return journey be treated for ascertaining place of supply?. . . . . . . . .

Q.48 What will be the place of supply in case of services in relation to on board a conveyance?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.49 How the place of supply shall be determined in case of telecommunication services, data transfer, broadcasting, cable and direct to home television? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.50 How will the place of supply be determined for financial services?. . . . . . . . . . .

Q.51 How will be the place of supply determined for insurance related services?. . .

Q.52 How will be place of supply determined for advertisement services to government, local authority or statutory body?. . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.53 On what basis, place of supply could be determined where there is confusion or some overlap in choosing from two or more options deserving equal merit?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

66

665 665 665 665 666 667 668 668 669 669 669 669 670 670 671 671 671 672 672 673 673 673 674 675 675 675 676

Table of contents Q.54 On what basis, nature of supply will be established where both, goods and services are involved?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 676 Q.55 What is the difference between place of supply in respect of B2B and B2C transactions?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 676

Chapter 41 Q.1 Q.2 Q.3 Q.4 Q.5 Q.6 Q.7 Q.8 Q.9 Q.10 Q.11 Q.12 Q.13

Chapter 42 Q.1 Q.2 Q.3

Q.4 Q.5 Q.6 Q.7 Q.8 Q.9

Q.2

679 679 679 680 680 681 682 682 682 682 682 683 683

Input Tax Credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 685

What is the meaning of ‘input tax’ in IGST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is the meaning of ‘Input Tax Credit’ in IGST?. . . . . . . . . . . . . . . . . . . . . . . .

The definition of input tax in IGST has reference of CGST and SGST also. What is its relevance?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What is the meaning of ‘output tax’ in IGST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The term ‘amount payable on reverse charge’ has been specifically excluded from the output tax. What is the reason behind this?. . . . . . . . . . . . . . .

Will IGST paid be available as Input Tax Credit? Who shall be eligible to take such credit?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What are the provisions relating to matching, reversal and reclaim of Input Tax Credit under IGST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Whether the Input Tax Credit of IGST be available for payment of CGST? . . . .

Whether the Input Tax Credit of IGST be available for payment of SGST?. . . . .

Chapter 43 Q.1

Payment of tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 679

What type of amounts are covered under sec 7 which are paid or payable by a taxable person?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What are the modes by which a tax payer can make the payment of amounts payable under the IGST law? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What date shall be considered to be the date of payment of tax/amount?. . . . .

What are the matters which will be prescribed by way of rules/notifications?. . .

What will be the major credit heads in overall GST set up?. . . . . . . . . . . . . . . . . .

What is the manner in which Input Tax Credit on account of IGST, CGST and SGST would be utilized?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Whether credit on account of CGST may be utilized to pay SGST? . . . . . . . . . . .

For what purpose can balance available in electronic cash ledger be used? . . . .

For what purpose can balance available in electronic credit ledger be used?. . .

How will the refund of balance credit be made to the taxable person? . . . . . . . .

What does sec 38 of Model GST law provide for refunds?. . . . . . . . . . . . . . . . . . .

How and in what order will the tax and other liabilities be discharged by a taxable person? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

When shall it be considered that tax incidence has been passed to the recipient of goods and/or services?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

685 686 686 686 686 687 687 687 688

Apportionment of tax and settlement of funds. . . . . . . . . . . . . 689

Why apportionment of tax is required for integrated goods and service tax (IGST)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 689 Under what circumstances apportionment is done in business to business transactions (B2B)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 689

67

A Complete Guide to GST Q.3 Q.4 Q.5 Q.6

Q.7 Q.8 Q.9

Q.10 Q.11 Q.12 Q.13 Q.14

Under what circumstances apportionment be done in case of business to consumer transactions (B2C)?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What are the circumstances in which need for apportionment between the centre and states will arise?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

In what manner apportionment of tax shall be done?. . . . . . . . . . . . . . . . . . . . . . .

How will be IGST paid to central government be apportioned to central government in case of inter-state supply of goods/services to unregistered person or taxable person paying tax under composition scheme?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

How will the IGST paid to the central government for inter-state supply of goods/services to a registered taxable person who does not avail Input Tax Credit be apportioned to the central government? . . . . . . . . . . .

How will the IGST paid to the central government in relation to import of goods/services by unregistered person or person paying tax under composition scheme shall be apportioned to the central government? . . . . . . . .

How will be the IGST paid to the central government in relation to import of goods and/or services by registered taxable person who does not avail Input Tax Credit shall be apportioned to the central government?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

How and to whom will be the balance of tax remaining in the IGST account after apportionment to central government will be apportioned?. . . . .

How will the other amounts ie interest and penalty be apportioned?. . . . . . . . .

How shall settlement of funds be done between the two governments?. . . . . . .

How will the settlement amongst centre government, exporting state and importing state be carried out?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What are the essential requirements for IGST transfer and apportionment of residual IGST/IGST paid on B2C supplies?. . . . . . . . . . . . . . .

Chapter 44 Q.1 Q.2 Q.3 Q.4 Q.5 Q.6 Q.7 Q.8

Q.9 Q.10 Q.11 Q.12 Q.13 Q.14

68

690 690 691

691 691 692

692 693 693 694 694 695

Settlement of cases. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 697

What is the concept of ‘settlement’ generally?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 698 What does ‘settlement’ mean in relation to tax laws?. . . . . . . . . . . . . . . . . . . . . . . 699 What is a ‘settlement commission’ and how it shall be constituted? . . . . . . . . . . 700 What is meant by designated officer?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 700 Who can apply for settlement?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 700 What are the objectives of settlement commission?. . . . . . . . . . . . . . . . . . . . . . . . . 701 Is there any risk in opting for settlement?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 701 What is meant by ‘case’ which is proposed to be settled by settlement commission (SC)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 701 What are the cases which will not be covered under the scope of settlement?. . . . 702 What are the powers of settlement commission?. . . . . . . . . . . . . . . . . . . . . . . . . . . 702 How shall the application for settlement be made by the assessee?. . . . . . . . . . . 703 What are the pre-conditions for making an application to settlement commission (SC)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 703 What would be the case where return has not been filed?. . . . . . . . . . . . . . . . . . . 703 What are the other restrictions for making application for settlement to the settlement commission?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 704

Table of contents Q.15 How shall the application for settlement be disposed off by the settlement commission?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.16 Can an assessee make a second application for settlement or there is any bar thereon? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.17 How will the settlement commission bench arrive at decisions?. . . . . . . . . . . . . .

Q.18 What orders can be passed by settlement commission (SC)?. . . . . . . . . . . . . . . . .

Q.19 Whether the order of settlement commission to be final?. . . . . . . . . . . . . . . . . . . .

Q.20 Can settlement commission grant immunity from prosecution?. . . . . . . . . . . . . .

Q.21 What is the nature of proceedings before settlement commission (SC)? . . . . . . .

Q.22 Can settlement commission amend or rectify its orders?. . . . . . . . . . . . . . . . . . . .

Q.23 Can the settlement commission order for provisional attachment of property?. . . .

Chapter 45

704 705 706 706 707 707 707 708 708

Miscellanous and transitional provisions. . . . . . . . . . . . . . . . . . 709

Miscellaneous provisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.1 What provisions of Model GST law would apply to IGST also?. . . . . . . . . . . . . .

Q.2 Who has the authority to make rules in respect of carrying out purposes and administration of IGST? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.3 What are the matters on which central government may make rules under the above power?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.4 What are the consequences of delayed deposit of IGST? . . . . . . . . . . . . . . . . . . . .

Q.5 When is the interest required to be paid? Whether interest is payable on demand by the department? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.6 Whether interest would be payable for undue or excess claim of Input Tax Credit?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.7 Whether interest would be payable on taking the excess Input Tax Credit in electronic credit register or when the excess credit taken is used?. . . .

Q.8 What are consequences of deposit of IGST on a transaction which is subsequently determined as intra-State transaction? . . . . . . . . . . . . . . . . . . . . . . .

709 709

Transitional provisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.9 What would be the tax treatment of IGST transactions after the appointed day, which were initiated before the appointed day.. . . . . . . . . . . . . .

Q.10 What is meant by ‘transactions initiated before appointed day’?. . . . . . . . . . . . .

Q.11 Whether tax would be charged again under IGST law where full payment of tax on transactions of supply was made under earlier law. . . . . . . .

Q.12 Where the part payment of tax on transactions of supply was made under earlier law, whether full tax will be chargeable under GST law on such transactions? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Q.13 Whether taxable person is required to pay tax at the prescribed rate under IGST law or prescribed rate under earlier law in the case of transaction spilling between earlier period and period after the appointed day? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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710 710 710 711 711 711 712

713 713 713 714

714

Administration of IGST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 715

Who will administer IGST in India?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 715 What is meant by appropriate state? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 715 What class of officers would be there in IGST law?. . . . . . . . . . . . . . . . . . . . . . . . . 715 69

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Whether appellate authority would also constitute ‘officers’?. . . . . . . . . . . . . . . .

Who will appoint officers of IGST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Whether the Board can delegate the authority to appoint IGST officers? . . . . . .

Who can appoint officers below the rank of assistant commissioner of IGST?. .

What is the meaning of Board/Commissioner?. . . . . . . . . . . . . . . . . . . . . . . . . . . .

716 716 716 716 716

Annexure I List of abbreviations used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 717 Annexure II List of important websites relating to Goods and Services Tax (GST) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 723

Contents of attached CD I. II.

Model GST Law Draft Rules Draft Return Rules Draft Registration Rules Draft Payment Rules Draft Invoice Rules Draft Refund Rules

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GST: Constitutional frame work GST is being imposed only after Constitutional Amendments enabling the levy of GST in India. This chapter discusses the provisions of the Constitution (101st Amendment) Act, 2016.

Date

Constitutional Amendments

22 March 2011

The Constitution (115th Amendment) Bill, 2011 introduced in Parliament

19 December 2014

The Constitution (122nd introduced in Parliament

6 May 2015

Bill Passed by the Lok Sabha

3 August 2016

Bill passed by the Rajya Sabha as the Constitution (101st Amendment) Bill, 2016

8 August 2016

Bill adopted the changes made by the Rajya Sabha and passed the same

8 September 2016

President of India assents to the Bill to become the Constitution (101st Amendment) Act, 2016

12 September 2016

Article 279A in respect of GST Council comes into force

16 September 2016

All provisions of Amendment Act come into force (except Art 279A wef 12 September 2016)

Amendment)

Bill,

2014

Q.1

Why does introduction of GST require a constitutional amendment?

Ans.

The Constitution provides for delineation of power to tax between the centre and states. While the centre is empowered to tax goods up to the production stage as well as services, the states have the power to tax sale of goods. The states do not have the powers to levy a tax on supply of services, while the centre does not have power to levy tax on the sale of goods. Thus, the Constitution does not vest express power either in the Central or state government to levy a tax on the ‘supply of goods and services’. Moreover, the Constitution also does not empower the states to impose tax on imports. Therefore, it is essential to have Constitutional 179

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Amendments for empowering the centre to levy tax on sale of goods and states for levying of service tax and tax on imports and other consequential issues.

As part of the exercise on Constitutional Amendment, there would be a special attention to the formulation of a mechanism for upholding the need for a harmonious structure for GST along with the concern for the powers of the centre and the states in a federal structure.

Q.2

What is constitutional amendment in relation to GST?

Ans.

The Union government in the third week of December 2014 (19 December 2014) introduced Constitution (122nd Amendment) Bill, 2014 in Parliament which on its passing has paved the way for introduction of proposed Goods and Service Tax (GST) in India. This was an improvised version of lapsed Constitution (115th Amendment) Bill of 2011.

This Bill on passage has enabled the central government and the state governments to levy GST. This tax shall be levied concurrently by various states as well as union government. On enactment of this amendment, the road has been cleared for GST. It is proposed to have the following taxes •

National level GST [Central GST (CGST) and inter-State GST (IGST)]

•

State Level GST (SGST)

The Constitution was required to be amended to restructure the power of states and Union in relation to indirect taxes and introduce GST. Q.3

What does the Constitution (101st Amendment) Act, 2016 seek to achieve?

Ans.

The Constitution (101st Amendment) Act, 2016 has amended the Constitution of India to enable introduction of the goods and services tax (GST). Consequently, the GST will subsume various central indirect taxes including the Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty (CVD) and Special Additional Duty of Customs (SAD), Central Sales Tax etc. It will also subsume state Value Added Tax (VAT)/Sales Tax, Entertainment Tax, Octroi, Entry Tax, Purchase Tax and Luxury Tax, etc.

Q.4

When will the constitutional amendments take effect?

Ans.

The Constitution (101st Amendment) Act, 2016 was enacted on 8

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September 2016. Art 279A of the provision in relation to GST Council came into force wef 12 September 2016 and other provisions came into force wef 16 September 2016. Once the GST legislations are enacted by the Union and state Governments, GST may be introduced, as proposed wef 1 April 2017.

Q.5

What is the GST Council and what will be its composition?

Ans.

In terms of Art 279A of the Constitution, the President of India has constituted a Goods and Services Tax Council. The GST Council’s aim is to develop a harmonized national market of goods and services.

The GST Council comprises of the following three members/class of members: (a)

the Union Finance Minister (as Chairman);

(b) the Union Minister of state in charge of Revenue or Finance as member; and (c)

the Minister in charge of Finance or Taxation or any other Minister nominated by each state government as members.

GST Council shall examine issues relating to goods, services tax and make recommendations to the Union and the states on issues like rates, exemption list and threshold limit etc.

Q.6

Has the GST council been constituted?

Ans.

Yes, the President of India has, in terms of Art 279A of the Constitution, constituted the Goods and Services Tax Council (GSTC) comprising of the following members vide Notification S.O 2957(E) dated 15 September 2016 – (a)

Union Finance Minister Chairperson

(b) Union Minister of state in charge of revenue or Finance Member (c)

Minister in charge of Finance or Taxation or any other minister Members nominated by each state government

The Council shall elect one of its members from states as its ViceChairperson for such period as may be decided. Further, Chairperson of Central Board of Excise and Customs (CBEC) shall be a permanent invitee (non-voting) to all the proceedings of the GST Council.

As per Art 279A of the amended Constitution, the GST Council will be a joint forum of the Centre and the states. The notification for bringing into force Article 279A wef 12 September 2016 was issued on 10 September 181

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2016.

Q.7

What steps have been taken so far for functioning of the GST Council?

Ans.

Central government has inter alia, taken the following decisions for the smooth functioning of GST council (a) Creation of the GST council secretariat, with its office at New Delhi; (b) Appointment of the secretary (revenue) as the Ex-Officio secretary to the GST Council; (c)

Creation of one post of additional secretary to the GST council in the GST Council Secretariat (at the level of additional secretary to the government of India), and four posts of commissioner in the GST council secretariat (at the level of joint secretary to the government of India);

(d) Decided to provide for adequate funds for meeting the recurring and non-recurring expenses of the GST council secretariat, the entire cost for which shall be borne by the central government; (e)

The GST council secretariat shall be manned by officers taken on deputation from both the central and state governments.

Q.8

How will the GST council function and perform?

Ans.

According to Art 279A of the amended constitution: (a) The Goods and Services Tax Council shall determine the procedure in the performance of its functions. (b) Every decision of the Goods and Services Tax Council shall be taken at a meeting, by a majority of not less than three-fourths of the weighted votes of the members present and voting, in accordance with the following principles, namely: (i)

the vote of the central government shall have a weightage of one third of the total votes cast, and

(ii) the votes of all the state governments taken together shall have a weightage of two-thirds of the total votes cast, in that meeting. (c)

One-half of the total number of members of the Goods and Services Tax Council shall constitute the quorum at its meetings.

However, no act or proceedings of the Goods and Services Tax Council shall be invalid merely by reason of— 182

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(i)

any vacancy in, or any defect in, the constitution of the Council; or

(ii)

any defect in the appointment of a person as a member of the council; or

(iii)

any procedural irregularity of the council not affecting the merits of the case.

Q.9

What shall be the guiding principle for the GST council to function?

Ans.

The guiding principle is stipulated in the Constitution itself. While discharging the functions conferred by Article 279A, the Goods and Services Tax Council shall be guided by the need for a harmonized structure of goods and services tax and for the development of a harmonized national market for goods and services.

Q.10

What are the functions mandated to the GST Council under the Constitution?

Ans.

Functions of the GST Council include making recommendations on: •

Taxes, cesses and surcharges levied by the centre, states and local bodies which may be subsumed in the GST;

•

Goods and services which may be subjected to or exempted from GST;

•

Model GST laws, principles of levy, apportionment of IGST and principles that govern the place of supply;

•

The threshold limit of turnover below which goods and services may be exempted from GST;

•

Rates including floor rates with bands of GST;

•

Special rates for a specified period to raise additional resources during any natural calamity or disaster;

•

Special provision with respect to Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand; and

•

Any other matters relating to the goods and services tax, as the council may decide.

The Goods and Services Tax Council shall also recommend the date from which the goods and services tax shall be levied on petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel.

Q.11

What role will the GST council have in GST rate determination?

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Ans.

The CGST and SGST would be levied at rates that will be jointly decided by the centre and states. The rates would be notified on the recommendations of the GST Council.

Q.12

What is the scope of ‘goods’ and ‘Services’ as per the Constitution?

Ans.

The Constitution defines ‘goods’ and ‘services’ as follows – 'Goods and services tax' means any tax on supply of goods, or services or both except taxes on the supply of the alcoholic liquor for human consumption. [Article 366(12A)] ‘Goods’ include all materials, commodities, and articles. [Existing Art 366(12)]. It is an inclusive definition (concept of ‘excisable goods’ to go) ‘Services’ means anything other than goods. [Art 366(26A] It may be noted that while the scope of ‘goods’ is well defined, the scope of ‘services’ is very wide. Whatever subject or object is not covered under ‘goods’ will be considered to be covered under the ambit of ‘service’. The GST law also contains the similar meanings.

Q.13.

What is the meaning of Goods and Service Tax?

Ans.

As per clause (12A) of Art 366 of the Constitution, ‘goods and services tax’ means any tax on supply of goods, or services or both except taxes on the supply of the alcoholic liquor for human consumption.

Thus, any tax on supply of goods and/or services would be GST. Two things are important for levy of GST- one, there should be a ‘supply’ and such supply should be of goods or services or both. The only exception is supply of alcoholic liquor meant for human consumption.

Q.14

What are the constitutional powers to levy GST in India?

Ans.

Newly inserted Art 246A of the Constitution is a special provision with respect to goods and services tax. Accordingly, the legislature of every state, has the power to make laws with respect to goods and services tax imposed by the Union or by such state. Parliament has exclusive power to make laws with respect to goods and services tax where the supply of goods, or of services, or both take place in the course of inter-State trade or commerce.

Q.15

Presently, GST is not going to be levied on petroleum products.

When will such goods be brought under the net of GST?

Ans.

According to explanation to Art 246A which enables levy of GST, read with clause (5) of Art 279A, the Goods and Services Tax Council shall

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recommend the date on which the goods and services tax shall be levied on petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel.

Q.16

What constitutional powers have been legislated for levy of GST on inter-State trade or commerce?

Ans.

Constitution has inserted a new Art 369A which empowers the central government for levy and collection of Goods and Services Tax in the course of inter-State trade or commerce. Accordingly, goods and services tax on supplies in the course of inter-State trade or commerce shall be levied and collected by the government of India and such tax shall be finally adjusted against the CGST and SGST on the supply of such goods in intra-State supply.

Parliament has also been empowered to formulate the principles for determining the place of supply, when a supply of goods or services or both takes place in the course of inter-State trade or commerce.

Q.17

How will be the import of goods or services treated and taxed in GST regime?

Ans.

Under Art 269A, there is a specific mention of imports. For the purpose of levy of GST, supply of goods, or of services, or both, in the course of import into the territory of India, shall be deemed to be supply of goods, or of services, or both in the course of inter-State trade or commerce.

Accordingly, on imports of goods or services, IGST would be levied as per the provisions of IGST Act.

Q.18

What are the goods on which excise duties shall continue to be levied?

Ans.

As per Entry 84 of List –I (Union List) of Seventh Schedule to the Constitution, duties of excise shall be levied on the following goods manufactured or produced in India: (a) petroleum crude; (b) high speed diesel; (c)

motor spirit (commonly known as petrol);

(d) natural gas; (e)

aviation turbine fuel; and

(f)

tobacco and tobacco products.

It implies that the Central Excise Act, 1944 would not be repealed and

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shall continue to be in force in respect of aforementioned goods.

Q.19

Whether states will continue to levy value added tax on goods which will not be under the GST net?

Ans.

Yes, under the GST regime, the revised Entry 54 in List II (State List) of Seventh Schedule to the Constitution shall empower states to levy value added tax. This would include taxes on the sale of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas, aviation turbine fuel and alcoholic liquor for human consumption.

Q.20

In GST regime, there are bound to be disputes between the centre and states or amongst the states. How are these going to be resolved?

Ans.

Art 279A provides for dispute redressal. According to clause (11), the Goods and Services Tax Council shall establish a mechanism to adjudicate any dispute — (a) between the Government of India and one or more states; or (b) between the Government of India and any state or states on one side and one or more states on the other side; or (c)

between two or more states, arising out of the recommendations of the council or implementation thereof.

Q.21

How will be the states compensated for loss of revenue on account of GST?

Ans.

The Constitution (101st) Amendment Act, 2016 provides in sec 18 that the Parliament shall, by law, on the recommendation of the Goods and Services Tax council, provide for compensation to the states for loss of revenue arising on account of implementation of the goods and services tax for a period of five years. Recently, in the third meeting of GST council, the base year for calculating the revenue of a state would be 2015-16 and a secular growth of 14% would be taken for calculating the likely revenue of each state in the first five years. states getting lower revenue than this would be compensated by the centre.

Q.22

What is likely to be the fate of Empowered Committee of State Finance Ministers after Constitution of GST Council?

Ans.

The journey of GST in India so far was navigated, till the present milestone of Constitution of GST Council on 12 September 2016, by the Empowered Committee of State Finance Ministers. The Empowered Committee has been instrumental in bringing all states on a common page and ensuring consensus on various complex issues on which there were

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divergent views. The Empowered Committee has been chaired by one of the State Finance Ministers; and the Empowered Committee has been chaired so far by Finance Ministers which include Finance Ministers of West Bengal, Bihar, J&K and Kerala. The present Chairman, Dr Amit Mitra also comes from West Bengal.

Since, GST council is now an arm of the Constitution, duly constituted to carry out various functions in relation to proposed GST law, the Empowered Committee of State Finance Ministers will not be a forum to discuss or recommend anything in relation to GST. However, a decision to continue to have Empowered Committee or to dissolve it will have to be decided by the Empowered Committee itself, keeping in mind that there does not appear to be any need to have its existence at the moment, more so when the Constitution of GSTC includes almost all the members of the Empowered Committee. Further, the GST law may not recognize Empowered Committee as a body whose decisions are either recommendatory or binding on the GST authorities.

******

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