GST Laws Manual – Acts, Rules and Forms

Contents at a glance Table of contents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix Index to Forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xi Index to Notifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xix Part A

At a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Part B

Central GST Act, Rules and Notifications. . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

Part C

Delhi GST Act, Rules and Notifications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 343

Part D

IGST Act, Rules and Notifications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 571

Part E

GST (Compensation to States) Act, Rules and Notifications . . . . . . . . . . . 603

Part F

UTGST Act, Rules and Notifications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 619

Part G

CGST/Delhi GST Forms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 647

Part H

Important Press Releases, Circulars and other Notifications . . . . . . . . . . . 929

Part I

FAQs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 991

vii

Table of contents Contents at a glance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii Index to Forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xi Index to Notifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xix PART A

AT A GLANCE GST in India – At a Glance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Compliance Chart with Limitation Periods under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 PART B

CENTRAL GST ACT, RULES AND NOTIFICATIONS The Central Goods and Services Tax Act, 2017. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Central Goods and Services Tax Rules, 2017. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211 CGST Notifications (Non-tariff). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 307 PART C

DELHI GST ACT, RULES AND NOTIFICATIONS Delhi Good and Services Tax Act, 2017. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 345 Delhi Goods and Services Tax Rules, 2017. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 481 Delhi GST Notifications (Non-tariff). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 565 PART D

IGST ACT, RULES AND NOTIFICATIONS The Integrated Goods and Services Tax Act, 2017. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 573 Integrated Goods and Services Tax Rules, 2017. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 597 IGST Notifications (Non-tariff) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 599 PART E

GST (COMPENSATION TO STATES) ACT AND RULES The Goods and Services Tax (Compensation to States) Act, 2017. . . . . . . . . . . . . . . . . . . . . . . . . . 605 Goods and Services Tax Compensation Cess Rules, 2017. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 617

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GST Laws Manual: Acts, Rules and Forms, 2e

PART F

UTGST ACT, RULES AND NOTIFICATIONS The Union Territory Goods and Services Tax Act, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 621 Union Territory Goods and Services Tax (Chandigarh) Rules, 2017. . . . . . . . . . . . . . . . . . . . . . . . 641 UTGST Notifications (Non-tariff) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 643 PART G

CGST/DELHI GST FORMS Central Goods and Services Tax Forms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 649 Delhi Goods and Services Tax Forms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 928 PART H

IMPORTANT PRESS RELEASES, CIRCULARS AND OTHER NOTIFICATIONS Press Releases. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Circulars. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CENVAT Credit Rules, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Taxation Laws (Amendment) Act, 2017. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

931 939 949 969

PART I

FAQs FAQs issued by CBEC on 31st March 2017. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 993 GST Twitter Handle FAQs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1115 GST Migration - Advisory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1127 GST Migration - FAQs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1129

x

Index to Forms CENTRAL GOODS AND SERVICES TAX FORMS Form No.

Description

Page No.

Composition Forms Form GST CMP–01

Intimation to pay tax under section 10 (composition levy) (Only for persons registered under the existing law migrating on the appointed day)

649

Form GST CMP–02

Intimation to pay tax under section 10 (composition levy) (For persons registered under the Act)

650

Form GST CMP–03

Intimation of details of stock on date of opting for composition levy (Only for persons registered under the existing law migrating on the appointed day)

651

Form GST CMP–04

Intimation/Application for Withdrawal from Composition Levy

653

Form GST CMP–05

Notice for denial of option to pay tax under section 10

654

Form GST CMP–06

Reply to the notice to show cause

655

Form GST CMP–07

Order for acceptance/rejection of reply to show cause notice

656

Form GST REG–01

Application for Registration

657

Form GST REG–02

Acknowledgment

669

Form GST REG–03

Notice for Seeking Additional Information/Clarification/Documents relating to Application for <<Registration/Amendment/ Cancellation >>

670

Form GST REG–04

Clarification/additional information/document for <<Registration/Amendment/Cancellation>>

671

Form GST REG–05

Order of Rejection of Application for <Registration/Amendment/ Cancellation/>

672

Form GST REG–06

Registration Certificate

673

Form GST REG–07

Application for Registration as Tax Deductor at source (u/s 51) or Tax Collector at source (u/s 52)

677

Form GST REG–08

Order of Cancellation of Registration as Tax Deductor at source or Tax Collector at source

681

Form GST REG–09

Application for Registration of Non Resident Taxable Person

682

Form GST REG–10

Application for registration of person supplying online information and data base access or retrieval services from a place outside India to a person in India, other than a registered person.

686

Registration Forms

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GST Laws Manual: Acts, Rules and Forms, 2e Form No.

Description

Page No.

Form GST REG–11

Application for extension of registration period by casual/ non-resident taxable person

689

Form GST REG–12

Order of Grant of Temporary Registration/ Suo Moto Registration

690

Form GST REG–13

Application/Form for grant of Unique Identity Number to UN Bodies/mbassies/others

692

Form GST REG–14

Application for Amendment in Registration Particulars (For all types of registered persons)

695

Form GST REG–15

Order of Amendment

697

Form GST REG–16

Application for Cancellation of Registration

698

Form GST REG–17

Show Cause Notice for Cancellation of Registration

701

Form GST REG–18

Reply to the Show Cause Notice issued for cancellation for registration

702

Form GST REG–19

Order for Cancellation of Registration

703

Form GST REG–20

Order for dropping the proceedings for cancellation of registration

704

Form GST REG–21

Application for Revocation of Cancellation of Registration

705

Form GST REG–22

Order for revocation of cancellation of registration

706

Form GST REG–23

Show Cause Notice for rejection of application for revocation of cancellation of registration

707

Form GST REG–24

Reply to the notice for rejection of application for revocation of cancellation of registration

708

Form GST REG–25

Certificate of Provisional Registration

709

Form GST REG–26

Application for Enrolment of Existing Taxpayer

710

Form GST REG–27

Show Cause Notice for cancellation of provisional registration

717

Form GST REG–28

Order for cancellation of provisional registration

718

Form GST REG–29

Application for cancellation of provisional registration

719

Form GST REG–30

Form for Field Visit Report Center Jurisdiction (Ward/Circle/Zone)

720

Input Tax Credit Forms

xii

Form GST ITC–01

Declaration for claim of input tax credit under sub-section (1) of section 18

721

Form GST ITC–02

Declaration for transfer of ITC in case of sale, merger, demerger, amalgamation, lease or transfer of a business under sub-section (3) of section 18

725

Form GST ITC–03

Declaration for intimation of ITC reversal/payment of tax on inputs held in stock, inputs contained in semi-finished and finished goods held in stock and capital goods under sub-section (4) of section 18

727

Index to Forms Form No. Form GST ITC–04

Description

Page No.

Details of goods/capital goods sent to job worker and received back

729

Accounts and Records Forms Form GST ENR–01

Application for Enrolment u/s 35 (2)

731

Return Forms Form GSTR–01

Details of outward supplies of goods or services

735

Details of auto drafted supplies (From GSTR 2, GSTR 4 or GSTR 6 )

744

Form GSTR–02

Details of inward supplies of goods or services

746

Form GSTR–2A

Details of auto drafted supplies (From GSTR 1, GSTR 5, GSTR-6, GSTR-7 and GSTR-8)

754

Monthly return

756

Form GSTR–3A

Notice to return defaulter u/s 46 for not filing return

763

Form GSTR–3B

Form GSTR–01A

Form GSTR–3

Monthly return in case period for furnishing return is extended

764

Form GSTR–4

Quarterly return for registered person opting for composition levy

766

Form GSTR–4A

Auto-drafted details for registered person opting for composition levy (Auto-drafted from GSTR-1, GSTR-5 and GSTR-7)

771

Return for Non-resident taxable person

772

Details of supplies of online information and database access or retrieval services by a person located outside India made to non-taxable persons in India

778

Return for input service distributor

780

Details of supplies auto-drafted form (Auto-drafted from GSTR-1)

784

Form GSTR–7

Return for Tax Deducted at Source

785

Form GSTR–7A

Tax Deduction at Source Certificate

788

Form GSTR–8

Statement for tax collection at source

789

Form GSTR–11

Statement of inward supplies by persons having Unique Identification Number (UIN)

792

Form GSTR–5 Form GSTR–5A

Form GSTR–6 Form GSTR–6A

GST Practitioner Forms Form GST PCT–01

Application for Enrolment as Goods and Services Tax Practitioner

794

Form GST PCT–02

Enrolment Certificate of Goods and Services Tax Practitioner

796

Form GST PCT–03

Show Cause Notice for disqualification

797

Form GST PCT–04

Order of rejection of enrolment as GST Practitioner

798

Form GST PCT–05

Authorisation/withdrawal of authorisation for Goods and Services Tax Practitioner

799

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GST Laws Manual: Acts, Rules and Forms, 2e Form No.

Description

Page No.

Payment Forms Form GST PMT–01

Electronic Liability Register of Registered Person (Part–I: Return related liabilities) (To be maintained at the Common Portal)

803

Form GST PMT–02

Electronic Liability Register of Taxable Person (Part–II: Other than return related liabilities) (To be maintained at the Common Portal)

Form GST PMT–02

Electronic Credit Ledger of Registered Person (To be maintained at the Common Portal)

805

Form GST PMT–03

Order for re-credit of the amount to cash or credit ledger on rejection of refund claim

807

Form GST PMT–04

Application for intimation of discrepancy in Electronic Credit Ledger/Cash Ledger/Liability Register

808

Form GST PMT–05

Electronic Cash Ledger (To be maintained at the Common Portal)

809

Form GST PMT–06

Challan for deposit of goods and services tax

810

Form GST PMT–07

Application for intimating discrepancy relating to payment

812

Refund Forms Form GST RFD–01

Application for Refund

813

Form GST RFD–02

Acknowledgment

823

Form GST RFD–03

Deficiency Memo

824

Form GST RFD–04

Provisional Refund Order

825

Form GST RFD–05

Payment Advice

826

Form GST RFD–06

Refund Sanction/Rejection Order

827

Form GST RFD–07

Order for Complete adjustment of sanctioned Refund

829

Form GST RFD–08

Notice for rejection of application for refund

831

Form GST RFD–09

Reply to show cause notice

832

Form GST RFD–10

Application for Refund by any specialized agency of UN or any Multilateral Financial Institution and Organization, Consulate or Embassy of foreign countries, etc.

833

Form GST RFD–11

Furnishing of bond or Letter of Undertaking for export of goods or services

834

Provisional Assessment Forms Form GST ASMT–01

Application for Provisional Assessment under section 60

837

Form GST ASMT–02

Notice for Seeking Additional Information/Clarification/Documents for provisional assessment

838

Form GST ASMT–03

Reply to the notice seeking additional information

839

Form GST ASMT–04

Order of Provisional Assessment

840

Form GST ASMT–05

Furnishing of Security

841

xiv

Index to Forms Form No.

Description

Page No.

Form GST ASMT–06

Notice for seeking additional information/clarification/documents for final assessment

843

Form GST ASMT–07

Final Assessment Order

844

Form GST ASMT–08

Application for Withdrawal of Security

845

Form GST ASMT–09

Order for release of security or rejecting the application

846

Form GST ASMT–10

Notice for intimating discrepancies in the return after scrutiny

847

Form GST ASMT–11

Reply to the notice issued under section 61 intimating discrepancies in the return

848

Form GST ASMT–12

Order of acceptance of reply against the notice issued under section 61

849

Form GST ASMT–13

Assessment order under section 62

850

Form GST ASMT–14

Show Cause Notice for assessment under section 63

851

Form GST ASMT–15

Assessment order under section 63

852

Form GST ASMT–16

Assessment order under section 64

853

Form GST ASMT–17

Application for withdrawal of assessment order issued under section 64

854

Form GST ASMT–18

Acceptance or Rejection of application filed under section 64 (2)

855

Audit Forms Form GST ADT–01

Notice for conducting audit

856

Form GST ADT–02

Audit Report under section 65(6)

857

Form GST ADT–03

Communication to the registered person for conduct of special audit under section 66

858

Form GST ADT–04

Information of Findings upon Special Audit

859

Form GST ARA–01

Application Form for Advance Ruling

860

Form GST ARA–02

Appeal to the Appellate Authority for Advance Ruling

862

Form GST ARA–03

Appeal to the Appellate Authority for Advance Ruling

864

Advance Ruling Forms

Appeal Forms Form GST APL–01

Appeal to Appellate Authority

865

Form GST APL–02

Acknowledgment for submission of appeal

869

Form GST APL–03

Application to the Appellate Authority under sub-section (2) of Section 107

870

Form GST APL–04

Summary of the demand after issue of order by the Appellate Authority, Tribunal or Court

872

Form GST APL–05

Appeal to the Appellate Tribunal

873

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GST Laws Manual: Acts, Rules and Forms, 2e Form No.

Description

Page No.

Form GST APL–06

Cross-objections before the Appellate Tribunal under sub-section (5) of section 112

877

Form GST APL–07

Application to the Appellate Tribunal under sub section (3) of Section 112

880

Form GST APL–08

Appeal to the High Court under section 117

882

Transition Forms Form GST TRAN–01

Transitional ITC/Stock Statement

884

Form GST TRAN–02

Statement of details for supplies of goods effected during the tax period

891

Inspection, Search and Seizure Forms Form GST INS–01

Authorisation for Inspection or Search

892

Form GST INS–02

Order of Seizure

894

Form GST INS–03

Order of Prohibition

896

Form GST INS–04

Bond for Release of Goods Seized

898

Form GST INS–05

Order of Release of Goods/Things of Prishable or Hazardous Nature

900

Demand and Recovery Forms

xvi

Form GST DRC–01

Summary of Show Cause Notice

901

Form GST DRC–02

Summary of Statement

902

Form GST DRC–03

Intimation of payment made voluntarily or made against the show cause notice (SCN) or statement

903

Form GST DRC–04

Acknowledgement of acceptance of payment made voluntarily

904

Form GST DRC–05

Intimation of conclusion of proceedings

905

Form GST DRC–06

Reply to the Show Cause Notice

906

Form GST DRC–07

Summary of the order

907

Form GST DRC–08

Rectification of Order

908

Form GST DRC–09

Order for recovery through specified officer under section 79

909

Form GST DRC–10

Notice for Auction of Goods under section 79 (1) (b) of the Act

910

Form GST DRC–11

Notice to successful bidder

911

Form GST DRC–12

Sale Certificate

912

Form GST DRC–13

Notice to a third person under section 79(1) (c)

913

Form GST DRC–14

Certificate of Payment to a Third Person

914

Form GST DRC–15

Application before the Civil Court Requesting Execution for a Decree

915

Form GST DRC–16

Notice for attachment and sale of immovable/movable goods/ shares under section 79

916

Index to Forms Form No.

Description

Page No.

Form GST DRC–17

Notice for Auction of Immovable/Movable Property under section 79(1) (d)

917

Form GST DRC–18

Certificate action under clause (e) of sub-section (1) section 79

918

Form GST DRC–19

Application to the Magistrate for Recovery as Fine

919

Form GST DRC–20

Application for Deferred Payment/Payment in Instalments

920

Form GST DRC–21

Order for acceptance/rejection of application for deferred payment/payment in instalments

921

Form GST DRC–22

Provisional attachment of property under section 83

922

Form GST DRC–23

Restoration of provisionally attached property/bank account under section 83

923

Form GST DRC–24

Intimation to Liquidator for recovery of amount

924

Form GST DRC–25

Continuation of Recovery Proceedings

925

Compounding of Offence Forms Form GST CPD–01

Application for Compounding of Offence

926

Form GST CPD–02

Order for rejection/allowance of compounding of offence

927

DELHI GOODS AND SERVICES TAX FORMS The Delhi Goods and Services Tax Forms are on the same lines as the Central Goods and Services Tax Forms, so they have not been reproduced separately in the book.

xvii

Index to Notifications Notification No.

G.S.R. No.

Date

Description

Page No.

CGST Notifications (Non-tariff) 1/2017

G.S.R. 605(E)

19th June, 2017 Notifying particular sections of the CGST Act, 2017

307

2/2017

G.S.R. 609(E)

19th June, 2017 Appointment and jurisdiction of Central Tax Officers

307

3 /2017

G.S.R. 610(E)

19th June, 2017 Notifying the CGST Rules, 2017

335

4/2017

G.S.R. 606(E)

19th June, 2017 Notifying www.gst.gov.in as the Common Goods and Services Tax Electronic Portal

335

5/2017

G.S.R. 607(E)

19th June, 2017 Specifying the category of persons exempted from obtaining registration under the Act, which is persons only engaged in making taxable supplies

336

6/2017

G.S.R. 608(E)

19th June, 2017 Notifying the modes of verification for the purpose of rule 26(1) of the CGST Rules, 2017

336

7/2017

G.S.R. 644(E)

19th June, 2017 Amending Notification No. 3/2017-Central Tax which notified the CGST Rules, 2017

337

8/2017

G.S.R. 647(E)

27th June, 2017 Notifying the turnover limit for Composition Levy for CGST

337

9/2017

G.S.R. 658(E)

28th June, 2017 Notifying particular sections of the CGST Act, 2017

338

10 /2017

G.S.R. 663(E)

28th June, 2017 Amending Notification No. 3/2017-Central Tax which notified the CGST Rules, 2017

338

11/2017

G.S.R. 659(E)

28th June, 2017 Amending Notification No. 6/2017-Central Tax

338

12/2017

G.S.R. 660(E)

28th June, 2017 Notifying the number of HSN digits required on tax invoice

339

13/2017

G.S.R. 661(E)

28th June, 2017 Prescribing the rate of interest under the CGST Act, 2017

339

14/2017

G.S.R. 818(E)

1st July, 2017

Assigning jurisdiction and power to officers of various directorates

340

15/2017

G.S.R. 819(E)

1st July, 2017

Amending Notification No. 10/2017-Central Tax

341

16/2017

G.S.R. 848(E)

7th July, 2017

Specifying the conditions and safeguards for furnishing a Letter of Undertaking in place of a bond for export without payment of integrated tax

341

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GST Laws Manual: Acts, Rules and Forms, 2e Notification No.

G.S.R. No.

Date

Description

Page No.

Delhi GST Notifications (Non-tariff) No. F. 3(10)/ Fin(Rev-I)/2017-18/ DS-VI/339

22nd June, 2017

Notifying particular sections of the DGST Act, 2017

565

F. No. 3(10)/ Fin(Rev-I)/2017-18/ DS-VI/340

22nd June, 2017

Notifying that persons only engaged in making taxable supplies exempt from obtaining registration under the DGST Act

565

F. No. 3(10)/ Fin(Rev-I)/2017-18/ DS-VI/341

22nd June, 2017

Notifying www.gst.gov.in as the Common Goods and Services Tax Electronic Portal

566

No. F. 3(10)/ Fin(Rev-I)/2017-18/ DS-VI/342

22nd June, 2017

Notifying the DGST (Composition and Registration) Rules, 2017

566

F. No. 3(11)/ Fin(Rev-I)/2017-18/ DS-VI/354

30th June, 2017 Notifying particular sections of the DGST Act, 2017

566

No. F. 3(12 )/ Fin(Rev-I)/2017-18/ DS-VI/355

30th June, 2017 Amending the DGST (Composition and Registration) Rules, 2017, hereinafter referred to as the DGST Rules, 2017

566

No.F3(13)/ Fin(Rev-I)/2017-18/ DS-VI/356

30th June, 2017 Amending the DGST Rules, 2017

567

No. F. 3(14)/ Fin(Rev-I)/2017-18/ DS-VI/357

30th June, 2017 Notifying the turnover limit for Composition Levy for DGST No.

567

No. F. 3(14)/ Fin(Rev-I)/2017-18/ DS-VI/358

30th June, 2017 Prescribing the rate of interest for the DGST Act

568

No. F. 3(16)/ Fin(Rev-I)/2017-18/ DS-VI/359

30th June, 2017 Appointment and jurisdiction of State Tax Officers

568

IGST Notifications (Non-tariff)

xx

1/2017

G.S.R. 603(E)

19th June, 2017 Notifying particular sections of the IGST Act, 2017

599

2/2017

G.S.R. 604(E)

19th June, 2017 Notifying that persons only engaged in making taxable supplies exempt from obtaining registration under the DGST Act

599

3/2017

G.S.R. 662(E)

28th June, 2017 Notifying particular sections of the IGST Act, 2017

599

4/2017

G.S.R. 699(E)

28th June, 2017 Notifying the IGST Rules, 2017

600

Notification No.

G.S.R. No.

Date

Description

Page No.

5/2017

G.S.R. 697(E)

28th June, 2017 Notifying the number of HSN digits required on tax invoice Act

600

6/2017

G.S.R. 698(E)

28th June, 2017 Prescribing the rate of interest under the IGST Act, 2017

601

UTGST Notifications (Non-tariff) 1/2017

G.S.R. 616(E)

21th June, 2017 Notifying particular sections of the UTGST Act, 2017

643

2/2017

G.S.R. 648(E)

27th June, 2017 Notifying the turnover limit for Composition Levy for UTGST

643

3/2017

G.S.R. 701(E)

28th June, 2017 Notifying particular sections of the UTGST Act, 2017

644

4/2017

G.S.R. 741(E)

30th June, 2017 Notifying www.gst.gov.in as the Common Goods and Services Tax Electronic Portal

644

10/2017

G.S.R. 747(E)

30th June, 2017 Notifying the rates of interest for the purpose of particular sections

645

12/2017

G.S.R. 749(E)

30th June, 2017 Notifying that the HSN code is to be specified in the tax invoice issued by the registered person

645

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GST Laws Manual: Acts, Rules and Forms, 2e

At a Glance 1.1 GST – Meaning and its scope .......................................................................................... 3 1.2 Legislative Framework .................................................................................................... 4 1.3 Taxable event and charging provisions ............................................................................. 5 1.4 Rates of GST, Import & Export ....................................................................................... 6 1.5 Exemptions and exempt supplies ................................................................................... 7 1.6 Meaning and Scope of the term “Supply”......................................................................... 8 1.7 Threshold Limit (Basic Exemption) ...................................................................................... 12 1.8 Taxable Persons & Registration .................................................................................. 13 1.9 Composition Scheme [Section 10] ................................................................................. 14 1.10 Output Tax .................................................................................................................... 15 1.11 Input Tax....................................................................................................................... 16 1.12 Job Work [Section 19, 143 of CGST Act] ................................................................... 20 1.13 Tax Invoice, Bill of Supply, Debit/Credit Notes .......................................................... 21 1.14 Accounts and Records .................................................................................................. 23 1.15 Returns under the GST (Chapter IX of the CGST Act) ............................................... 25 1.16 Payment of Tax (Section 49 of the CGST Act)............................................................ 30 1.17 Tax Deduction at Source (TDS) (Section 51) .............................................................. 31 1.18 Tax Collection at Source (TCS) (Section 52) .............................................................. 33 1.19 Supplier of online information and database access or retrieval services located outside India to specified person in the taxable territory (OIDAR) (Section 14 of IGST Act) ............................................................................................. 34 1.20 Refund (Section 54 & 55 of the CGST Act) ................................................................ 36 1.21 Assessment and Audit .................................................................................................. 37 1.22 E-way bill ..................................................................................................................... 41 1.23 Penalties under GST.................................................................................................... 41 1.24 Offences under GST..................................................................................................... 44 1.25 Advance ruling (Section 95 of the CGST Act) ............................................................ 45 1.26 Appeals (Chapter XVIII of the CGST Act).................................................................. 46 1.27 Information returns (Section 150 of the CGST Act) .................................................... 48 Compliance Chart with Limitation Periods under GST ............................................................ 55

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GST in India – At a Glance

GST in India – At a Glance

Since States’ GST Acts are mirror image of the CGST Act, 2017, therefore, in this chapter, sections of CGST Act and SGST Act have been referred as sections of GST Act, unless separate reference of sections in CGST Act and SGST Act is otherwise required.

1.1

GST – Meaning and its scope

(1)

The term “GST” stands for “Goods and Services Tax”, and is a comprehensive indirect tax levy on manufacture, sale and consumption of goods as well as services at the national level.

(2)

Its main objective is to cover most of the indirect tax levies into a single tax, replacing multiple tax levies, overcoming the limitation of current indirect tax structure, and creating efficiencies in the tax administration.

(3)

GST may be defined as a tax on supply of goods and services, which is leviable at each point of sale of goods or provision of service, where the seller of the goods or provider of services may claim the credit of input tax which he has paid while purchasing the goods or procuring the services.

(4)

GST has brought in its scope all goods and services, except specified petroleum products and alcoholic liquor for human consumption, for levy of GST.

(5)

GST on the supply of following goods shall be levied with effect from such date(s) as may be notified by the government on the recommendations of the Council -

(6)



Petroleum crude,



High speed diesel,



Motor spirit (commonly known as petrol),



Natural gas, and

Aviation turbine fuel.  It extends to whole of India except Jammu and Kashmir. However, Jammu & Kashmir GST Act has also enacted effective from 6 July 2017 and provisions have been made to integrate the J&K GST Act with GST Acts of rest of India.

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GST Laws Manual: Acts, Rules and Forms, 2e

1.2

Legislative Framework

(1)

The Constitution (101st Amendment) Act, 2016 has conferred concurrent taxing powers on the Union as well as the States (including Union territory with Legislature) to make laws for levying GST on every transaction of supply of goods or services or both.

(2)

Parliament has exclusive power to make laws with respect to GST where supply of goods and/or services takes place in the course of inter-State trade or commerce.

(3)

In accordance with Art. 279A of the Constitution of India, the President constituted the Goods and Services Tax Council (GST Council, in short) on 15th September 2016 with the following members:

(4)

(5)

(a)

The Union Finance Minister … Chairperson

(b)

The Union Minister of State in charge of Revenue or Finance … Member

(c)

The Minister in charge of Finance or Taxation or any other Minister nominated by each State Government … Members

The GST Council shall make recommendations to the Union and the states on, interalia, following matters (i)

the taxes, cesses and surcharges levied by the Centre, the States and the local bodies which may be subsumed under GST;

(ii)

the goods and services that may be subjected to or exempted from GST;

(iii)

the date on which the GST shall be levied on petroleum crude, high speed diesel, motor sprit (commonly known as petrol), natural gas and aviation turbine fuel;

(iv)

model GST laws, principles of levy, apportionment of IGST and the principles that govern the place of supply;

(v)

the threshold limit of turnover below which the goods and services may be exempted from GST;

(vi)

the rates including floor rates with bands of GST;

Name of legislation and controlling authority

Name of the legislation

To be administered by

Scope of taxation

Central GST Act

Central Government

State GST Act, e.g., Delhi GST Act, U.P. GST Act, Haryana GST Act, Kerala GST Act, and so on

Respective State Government

Every supply of goods and/or services within the state/UT, i.e. Intra-state supplies

UT GST Act

Central Government

IGST Act

Central Government

(6)

4

Inter-state supplies

There has been uniformity in various SGST Acts and the CGST Act.

GST in India – At a Glance

1.3 CGST/SGST

Taxable event and charging provisions Sec 9

IGST

Sec 5

(1)

CGST and SGST shall be levied on all intra-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption and specified petroleum products.

(2)

IGST shall be levied on all inter-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption and specified petroleum products.

(3)

GST on reverse charge basis

(4)



The Government may, on the recommendations of the Council, by notification, specify categories of supply of goods or services or both, the CGST/SGST/IGST on which shall be paid on reverse charge basis by the recipient of such goods or services or both. List of such goods/services is given in Appendix at the end of the Chapter.



The GST in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient. Intra-state supplies of goods and/or services upto INR 5,000 from any or all the suppliers in a day has been exempted from reverse charge vide notification no. 08/2017 (Central Tax-Rate) dated 28 June 2017.

Specified e-commerce operators – Deemed suppliers The Government may, on the recommendations of the Council, by notification, specify categories of services, the tax on supplies of which shall be paid by the electronic commerce (e-commerce, in short) operator, if such services are supplied through it, as if he is the supplier liable for paying the tax in relation to the supply of such services.

These provisions are similar to present provisions applicable under the service tax where the aggregator, such as, Uber, Ola, etc., are, instead of the individual service provider, deemed as supplier of service.

In exercise of the powers, the Government has notified following services under section 9(5) of the Act vide notification no. 17/2017 (Central Tax-Rate) dated 28 June 2017: (i)

Services by way of transportation of passengers by a radio-taxi, motorcab, maxicab and motor cycle; and

(ii) services by way of providing accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes, except where the person supplying such services through electronic commerce operator is liable for registration under sec 22(1) of the GST Act. (5)

Levy of compensation cess 

The Goods and Services Tax (Compensation to States) Act, 2017 (Compensation Cess Act, in short), provides for payment of compensation to

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GST Laws Manual: Acts, Rules and Forms, 2e

the States for loss of revenue arising on account of implementation of the goods and services tax for a period of five years. 

Compensation cess will be levied on all inter-state and local supply of goods or services or both.



Cess shall be levied on the specified goods and the rates stated in Schedule to the Act, which mainly comprises pan masala, tobacco and its products, coal, specified motor cars and aerated waters.

1.4 (1)

(2)

(3)

Rates of GST, Import & Export

As per Art. 279A of the Constitution of India, the GST Council shall make recommendations to the Union and the States on (a)

goods and services that may be subjected to, or exempted from GST;

(b)

rates including floor rates with bands of GST;

(c)

any special rate or rates for a specified period, to raise additional resources during any natural calamity or disaster.

Maximum rates of GST GST shall be levied at such rates, as may be notified by the Government on the recommendations of the Council. However, the maximum rates would be as under 

CGST – 20%



SGST – 20%



IGST – 40%

GST Rates In relation to levy of tax on supply of goods, there is 7 tier rate-structure: Exempted, uncut diamonds, bullions/jewellery, Lower, Lower-Standard, Standard and Luxury (0, 0.25, 3, 5, 12, 18, 28).

In relation to taxation of services, there is 4 tier rate-structure: 0, 12, 18, 28.

(4)

HSN (Harmonized System of Nomenclature) codes have been used for classifying the goods and services under the GST regime

(5)

Import of goods and services has been treated as inter-state supplies and would be subject to IGST in addition to the applicable customs duties (BCD and Education Cess on BCD). This IGST would be levied in lieu of CVD and SAD; and shall be available as input tax credit for further transactions.

IGST on goods imported into India shall be levied and collected in accordance with the provisions of sec 3 of the Customs Tariff Act, 1975 on the value as determined under the said Act at the point when duties of customs are levied on the said goods under sec 12 of the Customs Act, 1962.

6

GST in India – At a Glance

(6)

Zero-rated supply 

As per sec 2(24) of the IGST Act, zero-rated supply shall have the meaning assigned to it under sec 16 of the IGST Act.



As per sec 16 of the IGST Act, zero rated supply” means any of the following taxable supply of goods and/or services, namely: (a)

export of goods and/or services or both; or

(b)

supply of goods and/or services or both to a SEZ developer or an SEZ unit.

1.5 1.5.1

Power to grant exemption CGST/SGST

(1)

Exemptions and exempt supplies

Sec 11

IGST

Sec 6

By way of Notification Where the Government is satisfied that it is necessary in the public interest so to do, it may, on the recommendations of the Council, by notification, exempt generally, either absolutely or subject to such conditions as may be specified therein, goods or services or both of any specified description from the whole or any part of the tax leviable thereon with effect from such date as may be specified in such notification.

Specified goods have been exempted vide notification no. 2/2017 (Central Tax-Rate) and 2/2017 (Integrated Tax-Rate), both dated 28 June 2017. Similarly, specified services have been exempted vide Notification No. 12/2017- (Central Tax-Rate) and 9/2017 (Integrated Tax-Rate), both dated 28 June 2017.

(2)

By way of special order in exceptional cases Where the Government is satisfied that it is necessary in the public interest so to do, it may, on the recommendations of the Council, by special order in each case, under circumstances of an exceptional nature to be stated in such order, exempt from payment of tax any goods or services or both on which tax is leviable.

(3)

Explanation to notification or special order already issued The Government may, if it considers necessary or expedient so to do for the purpose of clarifying the scope or applicability of any notification of exemption or special order issued, insert an Explanation in such notification or order, as the case may be, by notification at any time within one year of issue of the notification/order. Every such Explanation shall have effect as if it had always been the part of the first such notification or order, as the case may be.

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GST Laws Manual: Acts, Rules and Forms, 2e

1.6

Meaning and Scope of the term “Supply”

1.6.1 Scope of supply (Sections 7 & 8 of CGST Act) (1) Supply includes all forms of supply (goods and/or services) such as, sale, transfer, barter, exchange, license, rental, lease, or disposal. It also includes agreeing to supply.

(2) Supply should be made for a consideration; and in the course or furtherance of business.

However, in case of import of services, even ‘in the course or furtherance of business’ is not required. Thus, there should be something in return which the person supplying will obtain from recipient. It is not important that what is received in return is ‘money’; it can be money’s worth.

(3) It involves delivery of goods and/or services to another person or agreement thereof.

Transfer of property in goods from the supplier to recipient is not necessary.

(4) Branches of the same person have been considered as distinct persons. Multi-State Entities have to take care of transfer value.

(5) Certain supplies which are even without consideration have also been included in the definition of the term “Supply”, as specified in Schedule I of CGST/SGST Act, as under: (a) Permanent transfer/disposal of business assets where input tax credit has been availed on such assets.

For example, transfer of business asset by the partnership firm to its retiring partner in settlement of his dues. (b) Supply of goods and/or services between related persons when made in the course or furtherance of business, (c) Supply of goods or services between distinct persons as specified in section 25 (from one unit to another, both having same PAN) when made in the course or furtherance of business.

However, gifts not exceeding INR 50,000/- in value in a financial year by an employer to an employee shall not be treated as supply of goods or services or both. (d) Supply of goods by a principal to his agent where the agent undertakes to supply such goods on behalf of the principal. (e) Supply of goods by an agent to his principal where the agent undertakes to receive such goods on behalf of the principal. (f) Import of services by a taxable person from a related person or from his other establishments outside India, in the course or furtherance of business.

(6) Schedule II of GST Act comprises various circumstances and situations when the activity shall either be considered as supply of goods or as service.

(7) Schedule III comprises various activities or transactions, which shall neither be considered as supply of goods nor as services.

8

GST in India – At a Glance

(8)

The GST Act has also defined composite supply and mixed supply and manner of determining their tax liability.

1.6.2  

 

Inter-State supply vs. Local Supply and Place of Supply (Sections 7 to 13 of IGST Act) IGST Act formulates the principles when a supply of goods or services or both shall be treated as inter-state supply or intra-state (local) supply.

Generally, subject to other provisions in respect of place of supply, where “location of the supplier” and “place of supply” are in different states/UT, it is inter-state supply; and if within the same state or UT, it is intra-state or local supply.

Local supply shall be subject to CGST + SGST; whereas inter-state supply shall be subject to IGST. Framework of Place of Supply provisions:

Place of supply of goods

Place of supply of services

Section 10: Goods other than supply of goods Section 12: Services where the location of imported into, or exported from India supplier of service and the location of the recipient of service is in India Section 11: Goods imported into, or exported from India

Section 13: Services where the location of the supplier or the location of the recipient is outside India

Place of supply in case of goods, in general, in B2B Transactions: Where supply involves movement of goods, whether between two parties or in case of “bill to ship to” transactions, the place of supply would generally be the billing address of the recipient, irrespective of shipping address in the different State. Thus, if supplier is located at Delhi, and the billing address is also in Delhi, the supplier will charge (CGST + SGST); and if the billing address is, say, in Haryana, the supplier will charge IGST.

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Place of supply in case of services, in general, in B2B Transactions: Supply Made To

Registered Person

Location of Recipient

Other Person

Address on record exists

Location of Recipient

Other Cases

Location of Supplier

However, the major exceptions are supply of immovable property (such as, construction, renting, hotels, etc.) and right to admission (such as, cinema halls, IPL/ cricket matches, etc.) where the place of supply would be at the place where immovable property is located or where the event is held, as the case may be.

Thus, in the cases of hotels and admission to events, since the location of property and the place of supply coincide, the supplier would only charge (CGST + SGST), even if the recipient is located outside the state or even if the recipient comes from outside the State for receiving the service.

1.6.3 Time of supply (Sections 12 & 13 of CGST Act) (1) In case of supply of goods (other than taxable on reverse charge), time of supply (i.e. taxable event) shall generally be earliest of the following: (a) Date of issuance of invoice by the supplier; (b) Last date on which supplier is required to issue invoice in terms of sec 31; (c) Date of receipt of payment/ advance by supplier (earliest of date of entry in accounts books or credit date in the bank).

(2) In case of supply of services (other than taxable on reverse charge), time of supply (i.e. taxable event) shall be: (a) If the invoice under sec 31(2) is issued â&#x20AC;&#x201C; (i) Within time: Earliest of date of issuance of invoice OR Date of receipt of payment/ advance by supplier (earliest of date of entry in accounts books or credit date in bank);

10

GST in India – At a Glance

(ii)

(b) (3)

Not within time: Earliest of date of provision of service OR Date of receipt of payment/ advance by supplier (earliest of date of entry in accounts books or credit date in bank);

Other cases: date on which the recipient shows the receipt of services in his books of account.

In case of supply of goods/services on reverse charge basis, time of supply shall generally be earliest of the following: (a)

the date of the receipt of goods (not applicable in case of services);

(b)

the date on which the payment is made (earliest of credit date in the books of accounts or debit date in the bank account); or

(c)

the date immediately following 30 days in case of goods, and 60 days in case of services, from the date of issue of invoice by the supplier.

If it is not possible to determine time of supply as above, then the time of supply shall be the date of entry in books of account of the recipient of supply.

1.6.4 Value of supply (Section 15 of CGST Act) (i) Value of supply is, generally, the transaction value, i.e., the price actually paid or payable for the said supply of goods and/or services, where supplier and recipient are not related, and  the price is the sole consideration for the supply.  (ii) Value of supply includes the amount which has been incurred by the receiver, reimbursements, free of charge supplies, royalties/license fees as condition of sale, incidental expenses, subsidies linked to price (other than by the central/state government) late fee, interest, penalty for late payment, post supply discount subject to conditions and all taxes other than GST levies. (iii) Discount given after supply is permitted to be excluded if it is linked to the invoice in terms of an agreement entered into at or before the time of such supply and also, ITC credit for the same has been reversed by the recipient. (iv) The value of the supply of goods or services or both between distinct persons (branch with same PAN) or related persons, other than where the supply is made through an agent, shall,(a) be the open market value of such supply; (b) if open market value is not available, it shall be the value of supply of goods or services of like kind and quality; (c) if value is not determinable under clause (a) or (b), it shall be the value as determined in accordance with the GST Rules.

However, where the recipient is eligible for full input tax credit, the value declared in the invoice shall be deemed to be the open market value of goods or services. In other words, in such cases, invoice value shall be accepted.

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1.7 1.7.1

Threshold Limit (Basic Exemption)

Exemption limit (Section 22 of CGST Act)

S. No.

States

Amount of Aggregate Turnover in a Financial Year

(a)

States/UTs barring specified in Sl. No. (b) below

INR 20 lakhs

(b)

Special category states – comprising of 11 states viz. Arunachal Pradesh, Assam, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.

INR 10 lakhs

“Aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, non-taxable supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis; but excludes CGST, SGST, IGST, UTGST and Cess. [Sec 2(6)] Moreover, exempt supplies include non-taxable supplies, i.e. alcoholic liquor for human consumption, specified petroleum products, etc.

Further, for the purpose of sec 22, turnover made on behalf of principals would be included in the turnover of agents. Furthermore, the supply of goods, after completion of job-work, by a registered job worker shall be treated as the supply of goods by the principal referred to in sec 143, and the value of such goods shall not be included in the aggregate turnover of the registered job-worker.

1.7.2 When threshold limit is not applicable (Section 24 of CGST Act) The threshold limit is not applicable in the following cases: (i) Persons making any inter-state taxable supply; (ii) Casual taxable persons making taxable supply; (iii) Persons who are required to pay tax under reverse charge; (iv) Persons required to pay tax under sec 9(5) [where tax shall be paid by the e-commerce operator]; (v) Non-resident taxable persons making taxable supply; (vi) Persons who are required to deduct TDS under sec 51, whether or not separately registered under this Act;

12

GST in India – At a Glance

(vii) Persons who supply goods and/or services on behalf of other taxable persons whether as an agent or otherwise; (viii) Input service distributor, whether or not separately registered under the Act; (ix)

Persons who supply goods and/or services, other than supplies made under sec 9(5), through electronic commerce operator, who is required to collect tax at source (TCS) under sec 52;

(x)

Every e-commerce operator;

(xi)

Every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person; and

(xii) Such other person or class of persons as may be notified by the government on the recommendations of the Council.

1.8

Taxable Persons & Registration

1.8.1

Taxable person [Section 2(107) of CGST Act] “Taxable person” means a person who is registered under the GST Act, or  liable to be registered under sec 22 or sec 24 of the CGST Act. 

1.8.2

Who is liable for registration mandatorily under GST [Section 22(1) of CGST Act] Every supplier shall be liable to be registered in the state or union territory, from  where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds INR 20 lakhs [INR10 lakhs in the Special Category States] Other persons to whom threshold limit does not apply [discussed in earlier paras  in this chapter]

1.8.3 Who is not liable to take registration? [Section 23 of CGST Act] The person is not liable for registration if he is: (a) engaged exclusively in the business of supplying goods and/or services that are either not liable to tax (such as, specified petroleum products, alcoholic liquor for human consumption, etc.) (Or) are wholly exempt from tax under CGST Act or under IGST Act; or (b) an agriculturist to the extent of supply of produce out of cultivation of land; or (c) category of persons as notified by the government, on the recommendations of the Council.

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In exercise of the powers conferred by sec 23(2), the Central Government has notified that the persons who are only engaged in making supplies of taxable goods or services or both, the total tax on which is liable to be paid on reverse charge basis by the recipient of such goods or services or both under section 9(3) of the Act as the category of persons exempted from obtaining registration under the aforesaid Act. Thus, if the entire tax is paid by the recipient for specified services (such as, advocates or goods transport operators) in terms of sec 9(3) of the Act, the supplier of these services is not liable for registration under the Act.

1.8.4 Agriculturist [Section 2(7) of CGST Act] “Agriculturist” means an individual or a Hindu Undivided Family who undertakes cultivation of land – (a) by own labour, or (b) by the labour of family, or (c) by servants on wages payable in cash or kind or by hired labour under personal supervision or personal supervision of any member of family.

1.8.5 Time limit for taking registration [Section 25(1)] Within 30 days from the date on which the person becomes liable.

However, a casual taxable person or a non-resident taxable person shall apply for registration at least 5 days prior to the commencement of business.

1.8.6 Voluntary Registration under GST [Section 25(3)] The person, who is not liable to obtain registration mandatorily, may register voluntarily. All provisions of GST shall be applicable after registration.

1.9

Composition Scheme [Section 10]

(1)

Small taxpayers with an aggregate turnover in a financial year up to the specified limit of INR 75 Lakhs, shall be eligible for composition levy. However, in the case of nine states, the limit shall be INR 50 Lakh. These states are: (i) Arunachal Pradesh (ii) Assam (iii) Manipur (iv) Meghalaya (v) Mizoram (vi) Nagaland (vii) Sikkim (viii) Tripura, and (ix) Himachal Pradesh.

(2)

Composition levy is not available to the person if:

14

(a)

he is engaged in the supply of services other than supplies referred to in clause 6(b) of Schedule II (i.e. restaurant services serving food and non-alcoholic drinks);

(b)

he is engaged in making any supply of goods which are not leviable to tax under this Act [the phrase used in this clause is similar to the definition of nontaxable supply under sec 2(78) of the Act]. Non-taxable supplies are specified petroleum products and alcoholic liquor for human consumption, etc.;

GST in India – At a Glance

(3)

(c)

he is engaged in making any inter-State outward supplies of goods;

(d)

he is engaged in making any supply of goods through an e-com operator required to collect TCS under sec 52; or

(e)

he is a manufacturer of notified goods.

Rate of composition levy

S. No. Nature of Supplier

Rate of Levy (% of Aggregate Turnover in the State) CGST

SGST

Total

(i)

Manufacturer, other than manufacturers of such goods as may be notified by the government(*)

1%

1%

2%

(ii)

Suppliers making supplies in respect of food with service (e.g. caterers, restaurants, dhabas) referred to in clause (b) of paragraph 6 of Sch II

2.5%

2.5%

5%

(iii)

Any other suppliers eligible for composition levy

0.5%

0.5%

1%

(*) In exercise of these powers, in respect of the following commodities, the manufacturer cannot opt for the composition levy: No.

Classification item / Chapter)

(Tariff

Description

1

2105 00 00

Ice cream and other edible ice, whether or not containing cocoa

2

2106 90 20

Pan masala

3

24

Tobacco and manufactured tobacco substitutes

1.10 Output Tax 1.10.1

Meaning of output tax CGST/SGST

Sec 2(81)

IGST

Sec 2(18)

“Output tax” in relation to a taxable person, means the GST chargeable under the respective GST Act on taxable supply of goods or services or both, made by the supplier or by his agent, and excludes tax payable by him on reverse charge basis.

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GST Laws Manual: Acts, Rules and Forms, 2e

1.10.2 Steps for computation of output tax (1) First determine the rate of tax applicable to the goods and/or services supplied vis-à-vis their HSN; (2) Then determine the aggregate turnover under each of the following statutes for every state where having GSTIN(a) IGST (b) CGST (c) SGST (3) Then determine the aggregate turnover of taxable supplies under each statute in the following categories(a) Goods wise – Rate of tax-wise (b) Service wise – Rate of tax-wise (4) Multiply the respective turnover with the applicable rate of tax.

1.11 Input Tax 1.11.1 Input tax credit in the GST (1) Input tax credit has been defined under sec 2(62) read with sec 2(63) of the GST Law. As per the combined reading of these provisions, ITC in relation to a registered person means and includes ITC means and includes

ITC excludes

(i) CGST, SGST, IGST and UTGST; (ii) IGST charged on import of goods; (iii) Reverse charges under the CGST/SGST/ IGST/ UTGST Acts

Tax paid under composition levy under sec 10

(2)

(3)

16

Input tax credit – Sec 16(1) 

Every registered person shall,



subject to such conditions and restrictions as may be prescribed, and



in the manner specified in sec 49,



be entitled to take credit of input tax



charged on any supply of goods or services or both to him



which are used or intended to be used in the course or furtherance of his business, and

said amount shall be credited to electronic credit ledger of such person.  So far as eligibility of ITC, the government has not made any distinction amongst inputs, capital goods and input services. Further, claim of input tax credit on all goods, services and capital goods is available in one go.

GST in India – At a Glance

(4)

Summary of input tax credit in GST:

1.11.2 Restrictions in claiming ITC [Section 16 of CGST Act]

• S. No.

In GST, taxability of sale/service will also determine the eligibility of input tax credit, which may be as under: Nature of Supply

Availability of Input Tax

1

Taxable supply

Yes

2

Exempt supply

No

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GST Laws Manual: Acts, Rules and Forms, 2e

S. No.

Nature of Supply

Availability of Input Tax

3

Non-taxable supply

No

4

Zero rated supply

Yes

1.11.3

Non creditable goods/services/supplies [Section 17(5)]

S. No. Goods/services/supplies 1 All motor vehicle and conveyance

2

3 4

5

6

7

18

Exceptions other (i) When they are used for making the following taxable supplies  Further supply of such vehicles or conveyance  Transportation of passengers  Imparting training on driving, flying, navigating such vehicles/ conveyance (ii) When they are used for Transportation of goods Where such inward supply of goods/services of  Food and beverages a particular category is used by a registered  Outdoor catering person for making an outward taxable supply:  Beauty treatment − of the same category of goods or services or  Health services both, or  Cosmetic and plastic surgery − as an element of a taxable composite or mixed supply Membership of a club, health and fitness centre (A) Where the government notifies services  Rent-a-cab which are obligatory for an employer to  Life insurance provide to its employees under any law for  Health insurance the time being in force.

(B) Same as stated at Sl No. 2 in this table Travel benefits extended to employees on vacation such as leave or home travel concession Works contract services when supplied Where it is an input service for further supply of for construction of immovable works contract service property, other than plant and machinery. [also see notes below this table] Goods or services or both received by a taxable person for construction of an immovable property on his own account, other than plant and machinery, even when used in course or furtherance of

GST in India – At a Glance

S. No. Goods/services/supplies Exceptions business. [also see notes below this table] 8 Goods/services on which tax has been paid under sec 10 as composition levy 9 Goods/services received by a non- Goods imported by him resident taxable person 10 Goods/services used for personal consumption 11  Goods lost, stolen, destroyed, written off, or  Goods disposed of by way of gift or free samples.

12 Any tax paid in terms of sec 74, 129 or 130.  Sec 74 deals with determina-tion of tax not paid or short paid or erroneously refunded ITC wrongly availed or utilized by reason of fraud, etc.  Sec 129 deals with payment of tax at the time of detention, seizure and release of goods and conveyances in transit.  Sec 130 deals Confiscation of goods and/or conveyances and levy of penalty.

Notes: The word “construction” includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalization, to the said immovable property.

‘Plant and Machinery’ means apparatus, equipment, machinery fixed to earth by foundation or structural support that are used for making outward supply and includes such foundation and structural supports but excludes (i) land, building or any other civil structures; (ii) telecommunication towers; and (iii) pipelines laid outside the factory premises.

1.11.4

Utilization of credit [Section 49(5)]

IGST Credit

CGST Credit

SGST Credit

YES: To the followings, in the stated order:  Payment of IGST,

YES: To the followings, in the stated order:  Payment of CGST,

YES: To the followings, in the stated order:  Payment of SGST,

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GST Laws Manual: Acts, Rules and Forms, 2e

  

Payment of CGST, Payment of SGST, Payment of UTGST.



Payment of IGST.

NO:

 



Payment of IGST.

NO: Payment of SGST Payment of UTGST

 

Payment of CGST Payment of UTGST

1.12 Job Work [Section 19, 143 of CGST Act] (1)

As per sec 143(1), “principal” means a registered person sending taxable goods for job work. Thus, sec 143 is NOT applicable to “unregistered taxable person”

(2)

Facilities to the principal

(3) (4)



To send any inputs/capital goods to a job worker for job work without payment of tax,



To send inputs/capital goods subsequently from one job worker to another job worker without payment of tax,

To claim ITC on goods transferred to job worker.  Sec 143 is optional. Principal may supply goods to job worker after charging of GST. Sec 143 enables the principal to send taxable goods to a job worker (and also to another job-worker therefrom) without payment of tax, subject to

Intimation, and



certain conditions, as may be prescribed.

(5)

If the benefit under sec 143 is availed, the principal shall be responsible and accountable for all the transactions between him and the job worker

(6)

If inputs are not received within 1 year (capital goods in 3 years), it shall be deemed as supply in the hands of the principal on the day when goods were originally sent.

(7)

The challan issued by the principal to the job worker shall contain the details specified in rule 55.

(8)

The details of challans in respect of goods dispatched to a job worker or received from a job worker or sent from one job worker to another during a quarter shall be included in FORM GST ITC-04 furnished for that period on or before the 25th day of the month succeeding the said quarter. [Rule 45 of CGST Rules]

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GST in India – At a Glance

1.13 Tax Invoice, Bill of Supply, Debit/Credit Notes 1.13.1

Who is required to issue tax invoice or bill of supply or receipt voucher or delivery challan?

Type of Documents

(i) Invoice / Tax Invoice  Every registered person shall issue a tax invoice for supply of – o taxable goods, or o taxable services.  The expression “tax invoice” also includes any revised invoice issued by supplier in respect of a supply made earlier.  Tax invoice is not required to be issued if value of goods/ services supplied is less than INR 200 except when requested by the recipient.

However, consolidated tax invoice shall be issued at the end of the day.

(ii) Bill of Supply

 Instead of a invoice, a bill supply shall issued in following cases:

tax of be the

o A registered person supplying non-taxable goods / services, or o A registered paying tax under compo-sition scheme.  Individual bill of supply is not required to be issued if value of goods/ services supplied is less than INR 200 except when requested by the recipient.

(iii) Receipt Voucher

(iv) Delivery Challan

 On receipt of advance payment with respect to any supply of goods or services, registered person shall issue a receipt voucher, evidencing receipt of such payment.

In the following cases, goods may be supplied on the basis of delivery challan: -

 Where, after receipt of advance, subsequently no supply is made and no tax invoice is issued in pursuance thereof, the said registered person may issue to the person who had made the payment, a refund voucher against such payment.

(a) Supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is not known, (b) Transportation goods for job work,

of

(c) Transportation of goods for reasons other than by way of supply, or (d) Such other supplies as may be notified by the Board.

Further, any tax invoice/any other similar document issued under any other Act for the time being in force in respect of any non-taxable supply shall be treated as bill of supply.

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GST Laws Manual: Acts, Rules and Forms, 2e



Central/State Government may specify the categories of services in respect of which any other document issued in relation to the supply shall be deemed to be a tax invoice, subject to prescribed conditions.

1.13.2 Contents of tax invoice (Rule 46 of the GST Rules) Tax invoice shall be issued by the supplier containing the following details:(a) Name, address and GSTIN of the supplier; (b) A consecutive serial number, not exceeding 16 characters, in one or multiple series, containing alphabets or numerals or special characters hyphen or dash and slash symbolised as “-” and “/” respectively, and any combination thereof, unique for a financial year; (c) Date of its issue; (d) Name, address and GSTIN/Unique ID Number, if registered, of recipient; (e) Name and address of the recipient and address of delivery, along with the name of State and its code, if such recipient is unregistered and where the taxable value of supply is INR 50,000/- or more; (f) name and address of the recipient and the address of delivery, along with the name of the State and its code, if such recipient is un-registered and where the value of the taxable supply is less than INR 50,000/- and the recipient requests that such details be recorded in the tax invoice (g) HSN code of goods or services (Vide Notification No. 12/2017 (Central Tax) dated 28 June 2017, the registered person shall mention ‘Nil’ number of digits of HSN code for aggregate turnover in the preceding financial year upto INR 1.5 cr., ‘2’ digits between INR 1.5 cr. and INR 5 cr. and ‘4’ digits if the said turnover excceds INR 5 cr.); (h) Description of goods or services; (i) Quantity in case of goods and unit or Unique Quantity Code thereof; (j) Total value of goods or services; (k) Taxable value of goods or services taking into account discount or abatement, if any; (l) Rate of tax (CGST, SGST, UTGST, Cess or IGST); (m) Amount of tax charged in respect of taxable goods or services (CGST, SGST, UTGST, Cess or IGST); (n) Place of supply along with the name of State, in case of a supply in the course of interstate trade or commerce; (o) Place of delivery where the same is different from place of supply; (p) Whether the tax is payable on reverse charge; (q) The word “Revised Invoice”, as the case may be, indicated prominently, where applicable along with the date and invoice number of the original invoice; and (r) Signature or digital signature of the supplier or his authorized representative.

22

GST in India – At a Glance

1.13.3 



    

Circumstances when a debit note or credit note is issued (Section 34 of the CGST Act) Where a tax invoice has been issued, and o the taxable value and/or tax charged in that tax invoice is found to exceed the taxable value and/or tax payable in respect of such supply; or o where the goods supplied are returned by the recipient; or o where goods or services or both supplied are found to be deficient, then the taxable person, who has supplied such goods and/or services, may issue to the recipient a credit note.

Where a tax invoice has been issued and the taxable value and/or tax charged in that tax invoice is found to be less than the taxable value and/or tax payable in respect of such supply, then the taxable person, who has supplied such goods and/or services, may issue to the recipient a debit note.

Credit notes & debit notes shall contain the prescribed particulars. Otherwise, these notes may not be considered for adjustment of tax liability.

Credit notes and debit notes must have serial number and date of the corresponding tax invoice or, as the case may be, bill of supply against which the same are being issued.

Credit notes and debit notes must be accepted by the recipient to validate the claim of reduction in output tax by the issuer of such notes.

No credit note shall be issued if incidence of tax/interest on such supply has been passed on to any other person.

Debit note includes supplementary invoice.

1.14 Accounts and Records 1.14.1 Maintenance of Accounts and Records (Section 35 of the CGST Act) (1) Every registered person shall keep and maintain, at his principal place of business, a true and correct account of the following: Production or manufacture of goods;  Inward supply of goods and/or services;  Outward supply of goods and/or services  Stock of goods;  Input tax credit availed;  Output tax payable and paid; and  Such other particulars as may be prescribed in this behalf.  The term “principal place of business” means the place of business specified as  the principal place of business in the certificate of registration [Sec 2(89)].

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GST Laws Manual: Acts, Rules and Forms, 2e





As per sec 2(85), the term “Place of Business” includes (a)

Place from where the business is ordinarily carried on, and includes a warehouse, a godown or place where a taxable person stores goods, and provides/receives goods/services;

(b)

Place where a taxable person maintains his books of account;

(c)

A place where a taxable person is engaged in business through an agent, by whatever name called.

Registered assesses may keep and maintain such accounts and other particulars in the electronic form in the manner as may be prescribed.



Multiple places of business: As per Rule 56(7) of the GST Rules, every registered person shall keep the books of account at the principal place of business and books of account relating to additional place of business mentioned in his certificate of registration. Therefore, it appears that records of additional places can be kept at the principal place of business.



Every owner or operator of warehouse or godown or any other place used for storage of goods, irrespective of whether he is a registered taxable person or not, shall maintain records of consigner, consignee and other relevant details of the goods as may be prescribed



The Commissioner has been empowered to notify a class of taxable persons to maintain additional accounts or documents for such purpose as may be specified.

Relaxation by the Commissioner: If any class of taxable persons is not in a position to keep and maintain accounts in accordance with the provisions of this section, the commissioner may permit such class of taxable persons to maintain the accounts in such manner as may be prescribed.





Except when goods are lost, stolen, destroyed, written off or disposed of by way of gift or free samples, if the registered taxable person fails to account for the goods and/or services in his books of account, the proper officer shall determine the amount of tax payable on the goods and/or services that are not accounted for, as if such goods and/or services had been supplied by such person and in this regard, the provisions of sec 73 or 74, as the case may be, shall apply, mutatis mutandis, for determination of such tax.

1.14.2 Retention of Accounts and Records (Section 36 of the CGST Act) Every assessee shall retain the prescribed books of accounts and other records until the  expiry of 72 months (6 years) from the due date of filing of Annual Return for the year pertaining to such accounts and records.

In case an appeal or revision or any other proceeding is pending before any Appellate  Authority or Revisional Authority or Tribunal or Court or is under investigation for an offence under Chapter XIX, then the assessee shall retain the books of account and other records pertaining to the subject matter of such appeal or revision or proceeding or investigation for a period of one year after final disposal of such appeal or revision or

24

GST in India – At a Glance

proceeding or investigation, or for the period specified records under sec 36(1), whichever is later. 

Such accounts and documents, where maintained manually, shall be kept at every related place of business mentioned in the certificate of registration and where maintained digitally, shall be accessible at every related place of business.



Proper electronic back-up of records of current year including earlier years, shall be maintained and preserved in such manner that, in the event of destruction of such records due to accidents or natural causes, the information can be restored within reasonable period of time.

1.15 Returns under the GST (Chapter IX of the CGST Act) 1.15.1 S. No.

Types of returns or reports and periodicity Return/ ledger

Nature of return

Due date

1

GSTR-1

Details of outward supplies of goods and/or 10th of services effected (other than composition month taxpayer, non-resident tax payer, person deducting TDS and collecting TCS and ISD)

2

GSTR- 1A

Details of outward supplies as added, corrected or Auto generated at deleted by the recipient common portal to be corrected before 17th of next month.

3

GSTR-2

Details of inward supplies of goods and/or services 15th of (other than composition taxpayer, non-resident tax month payer, person deducting TDS and collecting TCS and ISD)

4

GSTR-2A

Details of inward supplies made available to the Auto generated recipient on the basis of Form GSTR-1 furnished by common portal. the supplier

5

GSTR-3

Monthly return on the basis of finalization of details 20th of of outward supplies and inward supplies along with month the payment of amount of tax (other than composition taxpayer, non-resident tax payer, person deducting TDS and collecting TCS and ISD)

6

GSTR-4

Quarterly return for composition taxpayer under sec 18th of the month 10 next to quarter

7

GSTR-4A

Details of inward supplies made available to the Auto generated recipient registered under composition scheme on common portal. the basis of Form GSTR-1 furnished by supplier

the

the

the

next

next

at

next

at

25

GST Laws Manual: Acts, Rules and Forms, 2e

S. No.

Return/ ledger

Nature of return

Due date

8

GSTR-5

Periodic return by non-resident foreign taxpayer

Refer Note 1

9

GSTR-6

Return for Input Service Distributor (ISD)

13th of next month

10

GSTR-6A

Details of inward supplies made available to the Auto generated ISD recipient on the basis of FORM GSTR-1 common portal. furnished by the supplier

11

GSTR-7

Return for person deducting tax at source

10th of month

12

GSTR-7A

TDS Certificate

5 days of depositing TDS

13

GSTR ITC-1 Communication of acceptance, discrepancy or Not specified in the duplication of input tax credit claim Rules.

14

GSTR-8

Details of supplies effected through e-commerce 10th of operator and the amount of tax collected under sec month 52(4)

15

GSTR-9

Annual Return by registered person

16

GSTR-9A

17

GSTR-9C

Simplified Annual return by composition taxable persons registered under sec 10 31st December next FY Reconciliation Statement

18

GSTR-9B

Annual statement by e-commerce operator as referred to in sec 52(5)

19

GSTR-10

Final Return by the person whose registration Refer Note 2 certificate has been cancelled

20

GSTR-11

Details of inward supplies to be furnished by a Quarterly basis or person having UIN otherwise as and when required to file by proper officer

21

ITC ledger of tax payer

Continuous

22

Cash ledger of tax payer

Continuous

23

Tax ledger of tax payer

Continuous

the

the

at

next

next

of

New Registration: GSTR â&#x20AC;&#x201C; 1/2 in the first return is furnished after grant of registration. (Sec 40)

Note 1: Within 20 days after the end of a tax period or within 7 days after the last day of the validity period of registration, whichever is earlier.

Note 2: Within 3 months of the date of cancellation or date of cancellation order, whichever is later.

26

GST in India – At a Glance

Person-wise returns and periodicity S.N. Person 1

Returns

Normal/regular registration

taxpayers

–

single 



GSTR-1, GSTR-2 and GSTR-3; Annual return (GSTR-9, GSTR-9C)

2

Normal/regular taxpayers – Multiple  registration (for business verticals) within a state 

3

Composition taxpayers

 

4

Casual taxpayers

GSTR-1, GSTR-2 and GSTR-3 returns for the period for which they have obtained registration

5

Non-resident taxpayers (Foreigners)

GSTR-5

6

Input Service Distributor (ISD)

GSTR-6

7

Authorities deducting TDS

GSTR-7

8

E-commerce operator

 

9

Persons having Unique Identification Number (UIN)

GSTR-11

GSTR-1, GSTR-2 and GSTR-3 for each of the registrations separately; Annual return (GSTR-9, GSTR-9C) GSTR-4; Annual return (GSTR-9A)

GSTR-8 Annual statement (GSTR-9B)

1.15.2 Returns under GST (July and August, 2017) GST Council in the 17th meeting held on 18.06.2017, decided to extend the return filing periods of July and August, 2017 as per following schedule: S.N.

Return

Particulars

Due Date

1

GSTR-3B

Simplified Return and Tax deposit– July, 2017

20.08.17

2

GSTR-1

Outward supplies made by taxpayer (other than 01-05.09.17 composition taxpayer and ISD) – July, 2017

3

GSTR-2

Inward supplies received by a taxpayer (other than 06-10.09.17 composition taxpayer and ISD) – July, 2017

4

GSTR-3B

Simplified Return and Tax deposit– August, 2017

5

GSTR-1

Outward supplies made by taxpayer (other than 16-20.09.17 composition taxpayer and ISD) – August, 2017

6

GSTR-2

Inward supplies received by a taxpayer (other than 21-25.09.17 composition taxpayer and ISD) – August, 2017

20.09.17

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GST Laws Manual: Acts, Rules and Forms, 2e

1.15.3 Other features of the Returns Return shall be filed for each GSTIN;  If a person has more than one TIN in one state, he shall file multiple returns;   Filing of return o The filing of return shall be only through online mode; o Facility of offline generation and preparation of returns shall be available but offline returns shall have to be uploaded before the due date.

Return without payment of self-assessed tax  o The return may be filed; however, such return shall be treated as an invalid return; o Not to be taken into consideration for matching of invoices and for intergovernmental fund settlement among states and the centre.

1.15.4

Returns process flow GSTR-1 Returns of Outward Supplies

Captures the transaction level details of the outward supplies of a tax payer

Forms the basis for the statement of details of the inward supplies of all suppliers

GSTR-2 Returns of Inward Supplies

Freezing of outward and inward supplies of every tax payer  Calculation of tax liability  Payment in the Monthly Return i.e. GSTR-3 GSTR-3 Monthly Return

28

GST in India – At a Glance

Time Flow (GSTR-1/2) RECIPIENT

SUPPLIER

GSTR-1 Returns of Outward Supplies

Accept or reject modifications GSTR-1 Amended after accepted changes

Early uploading of invoices shall be allowed  Submission of return by 10th of next month

Able to see the invoices uploaded by their suppliers

GSTR-1A Inward supplies added/corrected/del eted by recipient made available to be filed on or before 17th of the next month

Final GSTR-2 Submission on or before 15th of the next month

Available for amendment after 10th of next month

Final GSTR-4 Submission on or before 18th of month next to quarter

Part A-GSTR-2A/GSTR-4A Inward Supplies made available on the basis of GSTR-1 after 10th of next month

Addition/correction/dele tion of invoices -From 11th to 15th of the next month -From 11th to 18th of month next to quarter (composition)

1.15.5 Matching process  ITC claim matching ITC claim matching after submission of GSTR-3 GST-ITC-1A: Mismatches of current tax period

GST-ITC-1A: Mismatches of earlier tax period

GST-ITC-1A: Duplicate Claims of ITC

ITC claim in GSTR-2 > Output tax in GSTR-1

Invoices/Debit Notes accepted w/o amendment in GSTR2A/GSTR-2 by Recipient + Valid Return by Supplier

Rectification by Recipient/ Supplier

Addition to Current Month Output tax Liability of GSTR-3

No Yes

ITC Claim < = Output Tax paid

No

Yes

ITC matching

Addition to Next Month Output tax Liability of GSTR-3

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GST Laws Manual: Acts, Rules and Forms, 2e

•

Output Tax Liability Reduction Matching Output Tax Liability Reduction matching after submission of GSTR-3 GST-ITC-1A: Mismatches of current tax period Liability Reduction claim> Admitted by Recipient Credit Notes Accepted w/o amendment in GSTR-2A/GSTR-1 by Recipient + Valid Return by Recipient

GST-ITC-1A: Mismatches of earlier tax period

Rectification

by Recipient/ Supplier Yes

Reduction claim < = ITC admitted on such Credit Note by Recipient + Valid Return by Recipient

GST-ITC-1A: Duplicate Claims of Liability reduction

No No

Addition to Current Month Output tax Liability of GSTR-3

Yes Matching

Addition to Next Month Output tax Liability of GSTR-3

1.16 Payment of Tax (Section 49 of the CGST Act) 1.16.1 Broad features Electronic online payment process – Paperless, and no use of manually prepared  challan; GSTN - Single point interface for challan generation;  Any time, anywhere mode of payment of tax;  Faster remittance of tax revenue to the government account;  Speedy accounting and reporting;  Electronic reconciliation of all receipts;  Ease of payment - Four modes including Net Banking, Credit Card (CC)/Debit Card  (DC), NEFT/RTGS and Over the Counter (OTC); Common challan form with auto-population features;  Use of single challan and single payment instrument;  Common set of authorized banks;  Payment through any bank;  Common accounting codes.  1.16.2 Payments to be made in the GST Central GST (CGST)  State GST (SGST);  30

GST in India – At a Glance



Integrated GST (IGST);



UT GST (UTGST)



Cess



Tax deducted at source (TDS);



Tax collected at source (TCS);



Interest, penalty, fees and any other payment.

1.16.3 Persons liable to pay GST Supplier of goods/service including those paying tax under composition;  Imports and other specified/notified supplies  the liability may be casted on the  recipient under the reverse charge mechanism unless assessed under Customs Law; Third person (say, in the case of e-commerce operator responsible for TCS or  government department responsible for TDS).

1.16.4

Modes of payment of GST Modes of Payment

Mode I Internet Banking including Credit/Debit Card through Auth. Banks

Mode II Over the Counter (pay upto INR 10,000) per challan per tax period subject to exceptions in cash/cheque/DD

Mode III RTGS/ NEFT

Payment Acceptance by Dept. officers in enforcement cases ONLY

1.17 Tax Deduction at Source (TDS) (Section 51) 1.17.1 Persons may be required to deduct TDS (a) A department or establishment of the Central or State Government, or (b) Local authority, or (c) Governmental agencies, or (d) Such persons or category of persons as may be notified, by the Central or a State Government on the recommendations of the Council.

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GST Laws Manual: Acts, Rules and Forms, 2e

1.17.2

Rates of TDS

S.N.

Act

Rate of TDS (on the payment made or credited to supplier)

(i)

CGST

1%

(ii)

SGST

1%

(iii)

IGST

2%

1.17.3 When to deduct TDS The deductor is required to deduct TDS if the total value of such supply under a contract exceeds INR 2.5 lakhs. “Value of supply” means amount indicated in the invoice excluding tax.

TDS is required to be deducted on all taxable goods and/or services.

1.17.4 Obligations of deductor of TDS (a) Every deductor is liable for registration under the GST Law. Further, threshold limit shall not apply to the deductor of TDS. (b) He shall pay the TDS deducted to the government by the 10th day of the month succeeding the month in which TDS was deducted by debiting the electronic cash ledger maintained; and the electronic tax liability register shall be credited accordingly. (c) He shall issue TDS certificate in Form GSTR-7A, to the deductee within 5 days of crediting the amount so deducted to the Government, mentioning therein – the contract value,  rate of deduction,  amount deducted,  amount paid to the appropriate government, and  such particulars as may be prescribed in this behalf.  (d) He shall submit monthly return of TDS in Form GSTR 7 return by the 10th day of the month succeeding the month in which TDS was deducted, electronically on the Common Portal either directly or through Facilitation Centre. (e) Details of tax deducted at source by the deductor shall be made available to the deductee in Part C of Form GSTR-2A electronically and the said deductee may include the same in Form GSTR-2. (f) Deductor is not required to submit Annual Return in Form GSTR 8. (g) The provisions of sec 51 are yet to be notified, which means that the deductor, until notified, is not required to deduct TDS on the specified contract value.

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GST in India – At a Glance

1.18 Tax Collection at Source (TCS) (Section 52) 1.18.1 Time of collection of TCS and its value Every electronic commerce operator (ECO), not being an agent, shall collect an amount  calculated at the specified percentage of the net value of taxable supplies made through it where the consideration with respect to such supplies is to be collected by the operator.  “Net value of taxable supplies” shall mean Aggregate value of taxable supplies of goods or services made during any month, other than services notified under sec 9(5), by all registered taxable persons through the ECO (-) Aggregate value of taxable supplies returned to the suppliers during the said month.

TCS would not be collected where notification is issued under sec 9(5). Under this category, electronic commerce operator shall be responsible for depositing the tax on ‘radio taxi’ or ‘passenger transport services’ provided through him.

TCS shall not be applicable where goods are supplied by the ECO on its own account.   The provisions of sec 52 are yet to be notified, which means that the collector, until notified, is not required to collect TCS. 1.18.2

Rates of TCS

S.N.

Act

Rate of TDS (of the net value of taxable supplies)

(i)

CGST

1%

(ii)

CGST

1%

(iii)

IGST

2%

1.18.3 Obligations of collector of TCS (a) TCS shall be paid within 10 days from the end of the month in which the collection is made; (b) ECO shall furnish a statement of outward supplies of goods/services (including returns thereof), electronically, giving the details of the amounts collected during the calendar month within 10 days from the end of the month in which the collection was made; (c) The statement in Form GSTR-8, shall contain details of amounts collected, supplierwise in respect of all supplies effected through the website/url of the ECO during the calendar month. (d) ECO shall furnish an annual statement in Form GSTR-9B, electronically, containing the details of outward supplies of goods or services or both effected through it.

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GST Laws Manual: Acts, Rules and Forms, 2e

1.18.4 Matching of TCS with supplies by the supplier (a) Amount so remitted by the ECO shall be treated as if it is amount of tax paid by the concerned supplier and shall reflect in the supplier’s electronic cash ledger.

The expression ‘concerned supplier’ means the supplier of goods/services making supplies through the ECO. (b) Concerned supplier shall claim credit of the amount collected and reflected in the statement of the ECO furnished, in the manner prescribed. (c) Details of the supplies furnished by the e-commerce operator would be compared with the corresponding outward supplies reflected by the concerned supplier in his valid monthly return. If the details do not match, discrepancy shall be communicated to both, the e-commerce operator and the concerned supplier. (d) After communication, if discrepancy is not rectified by the supplier in his valid return or the ECO in his statement for the month in which discrepancy is communicated, the same shall be added to the output tax liability of concerned supplier where the value of outward supplies furnished by the ECO is more than the value of outward supplies furnished by the supplier, in his return for the month succeeding the month in which the details of discrepancy are made available and such addition to the output tax liability and interest payable thereon shall be made available to the supplier electronically.

1.19 Supplier of online information and database access or retrieval services located outside India to specified person in the taxable territory (OIDAR) (Section 14 of IGST Act) 1.19.1 Applicability of the provisions Sec 14 of the IGST Act fastens the liability to pay tax upon the supplier of service located in a non-taxable territory supplying online information and database access or retrieval services to non-taxable online recipient. Thus, the provisions have three essentials: (i) Supplier of service is located in a non-taxable territory; (ii) Supplier is supplying online information and database access or retrieval services; and (iii) Service is received by the non-taxable online recipient in India.

1.19.2 Meaning of “online information and database access or retrieval services” (OIDAR) OIDAR means services whose delivery is mediated by information technology over the internet or an electronic network and the nature of which renders their supply essentially automated and involving minimal human intervention, and impossible to ensure in the absence of information technology and includes electronic services, such as,(a) Advertising on the internet; (b) Providing cloud services;

34

GST in India – At a Glance

(c)

Provision of e-books, movie, music, telecommunication networks or internet;

software

and

other

intangibles

via

(d)

Providing data or information, retrievable or otherwise, to any person, in electronic form through a computer network;

(e)

Online supplies of digital content (movies, television shows, music, etc.);

(f)

Digital data storage; and

(g)

Online gaming.

1.19.3 Role of intermediary who arranges the services Where the supplier of service is located in a non-taxable territory, and  provision of such service is arranged or facilitated by an intermediary located in the  non-taxable territory, then such intermediary shall be deemed to be supplying such services to the non-taxable  online recipient.  However, if the intermediary satisfies all the following conditions, he shall not be deemed as supplier of service: (a) the invoice or customer’s bill or receipt issued or made available by such intermediary taking part in the supply clearly identifies the service in question and its supplier in non-taxable territory; (b) the intermediary neither collects or processes payment in any manner nor is responsible for the payment between the non-assessee online recipient and the supplier of such services; (c) the intermediary involved in the supply does not authorise delivery; (d) the general terms and conditions of the supply are set by the service provider; and not by the intermediary.

1.19.4 Registration, payment of tax and returns For the purpose of payment of IGST, the supplier of the said services shall take a single  registration under a Simplified Registration Scheme, as may be prescribed by submitting an application for registration, duly signed or verified through EVC, in Form GST REG-10.

Any person located in taxable territory, representing such supplier for any purpose in the  taxable territory, shall take a registration and pay IGST on behalf of the supplier.

Where the supplier does not have a physical presence in the taxable territory or does not  have a representative in the said territory, such supplier may appoint a person in the taxable territory for the purpose of paying IGST; and such person shall be liable to pay tax.

Every registered person providing online information and data base access or retrieval  services from a place outside India to a person in India other than a registered person

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GST Laws Manual: Acts, Rules and Forms, 2e

shall file return in Form GSTR-5A on or before the 20th day of the month succeeding the calendar month or part thereof.

1.20 Refund (Section 54 & 55 of the CGST Act) 1.20.1 Circumstances Under the GST, export and supply to SEZ developer/unit have been considered as zero rated supplies. However, the inputs and input services shall be purchased only after payment of GST. Therefore, refund arises to the exporters/SEZ developers/units due to tax paid by them ono inputs and input services exported as such; or o inputs or input services used in the goods and/or services exported out of India.

Refund of balance in electronic cash ledger as defined under sec 49(6).  Refund of unutilized input tax credit, subject to restrictions provided under sec 54(3) of  the GST Act. Where the taxpayer is a manufacturer and its inputs are taxable at a higher rate of tax as  compared to finished goods/services.

Payment of pre-deposit amount as a condition for entertainment of appeal, which is  ultimately allowed in the favour of the taxpayer: thus, resulting in refund of the predeposit amount.

Refund of tax paid on inward supplies to embassies, diplomats, etc. notified under sec  55.

Payment of tax wrongly as IGST in lieu of (CGST+SGST); or vice-a-versa subject to  prescribed conditions. [Section 19 of the IGST Act and sec 77 of the GST Act].

Refund of tax paid on a supply which is not provided, either wholly or partially, and for  which invoice has not been issued or where a refund voucher has been issued.

The IGST paid by tourist leaving India on any supply of goods taken out of India by  him shall be refunded in the prescribed manner.

1.20.2 Time limit As per sec 54 of the GST Act, an application for refund of tax and/or interest shall be  made to the proper officer of IGST/CGST/SGST within 2 years from the relevant date in a prescribed form.

However, for the persons specified under sec 54(2), i.e. United Nation Organisations, embassies, etc., the period shall be 6 months from the last day of the quarter in which such supply was received.

Claim for refund of the balance in electronic cash ledger as defined under sec 49(6), can  be made in the monthly GST returns in prescribed manner.

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GST in India – At a Glance



The relevant date is critical to determine time within which the refund claim has to be filed. If the refund claim is filed after the relevant date, the claim would be rejected at the threshold; and there is no provision in the Act to condone the delay in filing of refund claim.



the person in charge of the conveyance carrying the export goods duly files an export manifest or an export report covering the number and the date of shipping bills or bills of export.



A declaration to the effect that the SEZ unit/developer has not availed the input tax credit of the tax paid by the supplier of goods or services or both, in a case where the refund is on account of supply of goods or services made to a SEZ unit/developer.



A statement showing the details of transactions considered as intra-State supply but which is subsequently held to be inter-State supply.



A statement showing the details of the amount of claim on account of excess payment of tax.



In respect of supplies to a SEZ unit/developer, the application for refund shall be filed by the supplier of goods after such goods have been admitted in full in the SEZ for authorized operations, as endorsed by the specified officer of the Zone;



In respect of supplies to a SEZ unit/developer, the application for refund shall be filed by the supplier of services along with such evidence regarding receipt of services for authorized operations as endorsed by the specified officer of the Zone.



In respect of supplies regarded as deemed exports, the application shall be filed by the recipient of deemed export supplies.

1.20.3 Procedure for claiming refund Applicant shall file an application in Form GST RFD-1, electronically, through the  Common Portal either directly or from a Facilitation Centre.

Refund application has to be supported by prescribed documents evidencing facts that  the refund is due to the applicant.

Claim for refund relating to balance in the electronic cash ledger in terms of sec 49(6)  may be made through the return for the relevant tax period in Form GSTR-3, Form GSTR-4 or Form GSTR-7.

1.21 Assessment and Audit 1.21.1 Meaning of assessment and scope As per sec 2(11) of the CGST Act, the term “assessment” means determination of tax liability under this Act and includes self-assessment, re-assessment, provisional assessment, summary assessment, and best judgment assessment.

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1.21.1.1 Self-assessment (Section 59 of the CGST Act) A registered taxable person shall undertake self-assessment of the taxes payable and furnish a return for each tax period as specified in sec 39, which deals with returns. Determination of tax liability is to be undertaken by the tax payer himself and stated in the return to be filed by him.

1.21.1.2 Re-assessment The term re-assessment has not been defined under the Act. In general, power to reopen the assessment should be exercised on the basis of materials in assessment record and not on the basis of mere change of opinion. Assessment cannot be reopened on the basis of materials already considered at the time of original assessment.

Mere change of opinion is not a reasonable ground for reassessment. Change of opinion would arise only in a case where reassessment is made on the same set of facts and with the same materials on record. If fresh materials are brought on record or if there was something to show that the dealer had concealed some material from the assessing officer, then the application of mind to new facts or materials by the assessing officer cannot be said to be mere change of opinion.

1.21.1.3 Provisional assessment (Section 60 of the CGST Act) Provisional assessment can be invoked by a taxable person by making a request/application to the proper officer; and such request may be made only under the following two circumstances(i) He is unable to determine the value of goods and/or services, or (ii) He is uncertain about the rate of tax applicable.

1.21.1.4 Summary assessment (Section 64 of the CGST Act) Summary assessment is generally used in a tax legislation to denote ‘fast track assessment’ based on return filed by the assessee.

The proper officer must have sufficient ground or reason to believe that any delay in  assessment will adversely impact the interest of revenue.

The proper officer must have evidence in his possession that the person has incurred, or  is likely to incur, a liability to pay tax under this Act. 1.21.1.5 Best judgment assessment As per sec 62, the proper officer may apply best of his judgment where a registered  taxable person fails to file his return, which may pertain to any of the following category o Return for the tax period in case of a normal taxable person, o Return in case of a person opting for composition, o Final return at the time of cancellation of registration.

As per sec 63, the proper officer may also apply best of his judgment for the relevant tax  periods and issue an assessment order where o a taxable person fails to obtain registration even though liable to do so, or o whose registration has been cancelled under sec 29 but who was liable to pay tax.

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GST in India – At a Glance

1.21.2 Audit (Section 65 of the CGST Act) As per sec 2(13) of the GST Act, the term “audit” means  o examination of records, returns and other documents maintained or furnished by the registered person under this Act or rules made thereunder or under any other law for the time being in force, o to verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed, and o to assess his compliance with the provisions of this Act or rules.

The Commissioner of CGST/SGST or any officer authorized by him, by way of general  or special order may undertake audit of the business transactions at o the place of business of the registered person, or o the Department’s office.

Intimation of audit will be issued to the taxable person at least 15 days in advance.  The audit shall be completed within a period of 3 months from the date of  commencement of audit; or under certain conditions, the extended period, which may be a further period not exceeding 6 months.

During the course of audit, the authorized officer may require the registered person,  (i) to afford him the necessary facility to verify the books of account or other documents as he may require and which may be available at such place, and (ii) to furnish such information as he may require and render assistance for timely completion of the audit.

The proper officer may initiate proceeding for determination of tax under sec 73 or 74,  levy of interest and/or penalty if the audit conducted reveals any evidence of o tax not paid or short paid, or o input tax credit wrongly availed or utilised, or o amount erroneously refunded.

1.21.3

Specific provisions for determination of tax

S.No. (1)

(2)

Section 73

Section 74

(3)

(4)

1

Main Reason for Tax default other than fraud or any Tax default due to fraud or any service of show willful-misstatement or suppression willful-misstatement or cause notice (SCN) of facts to evade tax suppression of facts to evade tax

2

Circumstances/De Sec 73(1): Sec 74(1): faults  Any tax has not been paid or  Any tax has not been paid or short paid, or short paid, or tax has been  any tax has been erroneously  any refunded, or erroneously refunded, or

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GST Laws Manual: Acts, Rules and Forms, 2e

S.No. (1)

(2)

Section 73

Section 74

(3)

(4)



where input tax credit has  where input tax credit has been wrongly availed or been wrongly availed or utilized utilized (hereinafter stated as “tax (hereinafter stated as “tax default”) default”) 3

Time Limit for Sec 73(2): At least 3 months prior Sec 74(2): At least 6 months issuance of SCN to the time limit specified in sec prior to the time limit specified 73 (10) for issuance of order in sec 74(10) for issuance of order

4

Service statement

5

Issuance of order Sec 73(9): After considering the after representation, PO shall determine the amount of tax, interest and determination penalty, which shall be equivalent to 10% of tax or INR 10,000/-, whichever is higher

Sec 74(9): After considering the representation, PO shall determine the amount of tax, interest and penalty.

6

Time limit for Sec 73(10): 3 years from the due issuance of order date for filing of annual return for the financial year to which the tax not/short paid or ITC wrongly availed or utilised relates to, or within 3 years from the date of erroneous refund.

Sec 74(10): 5 years from the due date for filing of annual return for the financial year to which the tax not/short paid or ITC wrongly availed or utilised relates to, or within 5 years from the date of erroneous refund.

a Sec 73(3),(4) and Sec 74(3),(4): Where SCN has been issued for any period, the PO may serve statement of tax default for other periods provided grounds are same as stated in the SCN

1.21.4 Special Audit (Section 66 of the CGST Act) Special audit can be ordered in writing by any officer not below the rank of Assistant  Commissioner, (with the prior approval of the Commissioner), if such officer is of the view that o the value has not been correctly declared, or o the credit availed is not within normal limits.

The officer not below the rank of Assistant Commissioner, who has an adverse opinion  or suspicion on the above aspects, after commencement and before completion of any scrutiny, enquiry, investigation or any other proceedings under the Act (i.e., at any stage of proceedings), may direct a registered person to get his books of accounts audited. The provisions are applicable notwithstanding that the accounts of the registered person have been audited under any other provisions of this Act or any other law for the time being in force.

40

GST in India – At a Glance



Direction for special audit shall be given after prior approval of the Commissioner.



Audit shall be conducted by o the Chartered Accountant, or o



the Cost Accountant.

The Auditor shall submit his report within 90 days (extendable to further 90 days).

1.22

E-way bill

As per Chapter XVI: E-Way Rules of the CGST Rules 2017, till such time as an E-way bill system is developed and approved by the Council, the Government may, by notification, specify the documents that the person in charge of a conveyance carrying any consignment of goods shall carry while the goods are in movement or in transit storage.

As per Frequently Asked Questions (FAQs), “The present system for E-way Bill in States to continue, till the E-Way Bill procedures are finalized”.

1.23 Penalties under GST S.N. Default

Penalty

1

Section 10(5) – If a taxable person was not eligible to pay tax As per the provisions under composition but opted the scheme under sec 10 of sec 73 or 74

2

Section 47 – Registered person fails to furnish details of outward Late fee of INR 100/supply or inward supply or returns for every day of default; Maximum: 5,000/-

3

Section 52(14) – e-commerce operator who fails to furnish the Upto INR 25,000/information required by the notice served under sec 52(12)

4

Section 73(9) – Determination of tax not paid or short paid or INR 10,000 erroneously refunded or input tax credit wrongly availed or utilized or for any reason other than fraud or any willful misstatement or 10% of the tax, suppression of facts. whichever is higher

5

Section 122(1): If a taxable person – (i) supplies without issue of any invoice or issues an incorrect or false invoice; (ii) issues any invoice or bill without supply of goods/services in violation of the GST Laws; (iii) collects any amount as tax but fails to pay the same to the credit of the appropriate Govt. beyond a period of 3 months

INR 10,000/or Amount equivalent to the tax default, whichever is higher

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S.N. Default (iv)

(v) (vi) (vii) (viii) (ix) (x)

(xi) (xii)

(xiii) (xiv) (xv) (xvi) (xvii)

(xviii) (xix) (xx) (xxi)

42

from the due date; collects any tax in contravention of the provisions of this Act but fails to pay the same to the credit of the Govt. beyond a period of 3 months from the due date; fails to deduct the TDS, or deducts short amount, or fails to pay to the amount deducted as tax; fails to collect TCS, or collects short amount, or where he fails to pay the amount collected as tax; takes and/or utilizes input tax credit without actual receipt of goods and/or services either fully or partially; fraudulently obtains refund of any CGST/SGST under this Act; Takes or distributes ITC in violation of GST Law; falsifies or substitutes financial records or produces fake accounts/documents or furnishes any false information or return with an intention to evade payment of tax; fails to obtain registration; furnishes any false information with regard to registration particulars, either at the time of applying for registration, or subsequently; obstructs or prevents any officer in discharge of his duties under the Act; transports any taxable goods without the cover of specified documents; suppresses his turnover leading to evasion of tax; fails to keep, maintain or retain books of account and other documents in accordance with GST Laws; fails to furnish information/documents called for by a CGST/SGST officer or furnishes false information/documents during any proceedings under this Act; supplies, transports or stores goods which he has reason to believe are liable to confiscation under this Act; issues any invoice/document by using identification no. of another taxable person; tampers with, or destroys any material evidence; disposes off or tampers with any goods that have been detained, seized, or attached under this Act.

Penalty

GST in India – At a Glance

S.N. Default 6

Section 122(2)– Registered Taxable person who:  supplies any goods or services on which any tax has not been paid or short-paid or erroneously refunded; or  where the input tax credit has been wrongly availed or utilized  for any reason, other than the reason of fraud or any willful misstatement or suppression of facts to evade tax

Penalty INR 10,000 or 10% of the tax due, whichever is higher

7

Section 122(3) – Any person who – (i) aids or abets any of the offences by a taxable person which are set out in sec85(1); (ii) deals with goods which he knows or has reason to believe are liable to confiscation; (iii) deals with supply of services which he knows or has reason to believe are in contravention of GST law; (iv) fails to appear pursuant to a summons; (v) fails to issue invoice as per the GST law; or (vi) fails to account for an invoice in his books of account.

Up to INR 25,000/-

8

Section 123 Failure to furnish information return under sec 150

INR 100/day- MaxÏNR 5,000

9

INR 10,000/-; Section 124 Person covered under sec 150 – fails to furnish information return In case of continuing or furnish false return willfully offence – Further fine upto INR 100/- per day; Maximum- INR 25,000/-

10

Section 125 Any person who contravenes any provisions of the GST law or the rules in respect of which no penalty is separately provided.

Up to INR 25,000/-

11

Section 127 Where the proper officer is of the view that a person is liable to a penalty and the same is not covered under any proceeding under sections 62, 63, 64, 73, 74, 129 or 130, he may issue an order levying such penalty after giving a notice.

Penalty as per the order issued by the proper officer

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1.24 Offences under GST 1.24.1

Nature of acts regarded as offences (Sec 132) Whoever commits any of following offences, shall be liable for prosecution

(a)

supplies any goods or services or both without issue of any invoice, in violation of the provisions of this Act or the rules made thereunder, with the intention to evade tax

(b)

issues any invoice or bill without supply of goods or services or both in violation of the provisions of this Act, or the rules made thereunder leading to wrongful availment or utilisation of input tax credit or refund of tax

(c)

avails input tax credit using such invoice or bill referred to in clause (b);

(d)

collects any amount as tax but fails to pay the same to the Government beyond a period of three months from the date on which such payment becomes due;

(e)

evades tax, fraudulently avails input tax credit or fraudulently obtains refund and where such offence is not covered under clauses (a) to (d)

(f)

falsifies or substitutes financial records or produces fake accounts or documents or furnishes any false information with an intention to evade payment of tax due under this Act

(g)

obstructs or prevents any officer in the discharge of his duties under the Act

(h)

acquires possession of, or in any way concerns himself in transporting, removing, depositing, keeping, concealing, supplying, or purchasing or in any other manner deals with, any goods which he knows or has reasons to believe are liable to confiscation under this Act or the rules made thereunder

(i)

receives or is in any way concerned with the supply of, or in any other manner deals with any supply of services which he knows or has reasons to believe are in contravention of any provisions of this Act or the rules made thereunder

(j)

tampers with or destroys any material evidence or documents

(k)

fails to supply any information which he is required to supply under this Actor the rules made thereunder or (unless with a reasonable belief, the burden of proving which shall be upon him, that the information supplied by him is true) supplies false information

(l)

attempts to commit, or abets the commission of any of the offences mentioned in clauses (a) to (k) of this section

1.24.2

Quantum of punishment for offences stated in (A) (Sec 132) Amount involved in relation to offence

(i)

44

Punishment

Where amount of tax evaded exceeds INR 5 Imprisonment for a term which may crores extend to 5 years and fine, cognizable and non-bailable

GST in India – At a Glance

Amount involved in relation to offence

Punishment

(ii)

Where amount of tax evaded exceeds INR 2 Imprisonment for a term which may crores but does not exceed INR 5 crores extend to 3 years and fine, noncognizable and bailable

(iii)

Where amount of tax evaded exceeds INR 1 Imprisonment for a term which may crore but does not exceed INR 2 crores extend to 1 years and fine

(iv)

Commits or abets in offences specified in para Imprisonment for a term which may (f), (g) & (j) above extend to 6 months and/or fine

(v)

Every subsequent conviction

Imprisonment for a term which may extend to 5 years and fine

1.25 Advance ruling (Section 95 of the CGST Act) (1)

As per sec 95 of the CGST Act, ‘advance ruling’ means a written decision provided by the authority to an applicant on matters or on questions as enumerated in sec 97(2) or sec 100(1) of the Law.

(2)

The question on which the advance ruling is sought shall be in respect of (a)

Classification of any goods and/or services;

(b)

Applicability of a notification issued under provisions of the Act having a bearing on the rate of tax;

(c)

Principles to be adopted for the purposes of determination of value of the goods and/or services;

(d)

Admissibility of input tax credit of tax paid or deemed to have been paid;

(e)

Determination of the liability to pay tax on any goods and/or services under the Act;

(f)

Whether applicant is required to be registered under the Act;

(g)

Whether any particular thing done by the applicant with respect to any goods and/or services amounts to or results in a supply of goods and/or services, within the meaning of that term.

(3)

Application in Form GST ARA-1 shall be accompanied by a fee of INR 5,000/-.

(4)

Advance Ruling Authority will be located in every state.

(5)

Authority for advance ruling shall comprise of one member CGST and one member SGST. They shall be appointed by the central and state government respectively. Their qualification and eligibility condition for appointment shall be prescribed in the GST Rules.

(6)

Appeal in Form GST ARA-2 may be filed against the order by the applicant or CGST/SGST officer; filing fee is INR 10,000/-.

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GST Laws Manual: Acts, Rules and Forms, 2e

(7)

Advance ruling shall be binding only on the applicant and on the jurisdictional tax authority of the applicant. Therefore, it is limited to the person who has applied for an advance ruling.

(8)

Advance ruling shall be binding till the period when the law, facts or circumstances supporting the original advance ruling have changed.

1.26 Appeals (Chapter XVIII of the CGST Act) (1)

Any person aggrieved by any order or decision passed against him has the right to appeal. However, as per sec 120, some decisions/orders are not appealable.

(2)

Appellate levels in the CGST Act

Appeal level

Appropriate appellate authority

Orders passed by

1st

First Appellate Authority

Adjudicating Authority

2nd

Appellate Tribunal

First Appellate Authority

3rd

High Court

Appellate Tribunal

4th

Supreme Court

High Court

(3)

Time limit of filing and disposal of appeal

S. N.

46

Nature of appeal

Time limit

Form

A

Appeal to the First Appellate Authority

(i)

Appeal by the aggrieved person- Sec 107(1), (4)

3 months from the date of communication of the decision or order (Condonation - 1 month)

GSTAPL-01

(ii)

Acknowledgment of filing of appeal

-

GSTAPL-02

(iii)

Appeal/Application by the 6 months from the date of GST officer as per direction of communication of the decision or the Commissioner - Sec order (Condonation - 1 month) 107(2),(3)

GSTAPL-03

(iv)

Order clearly indicating final amount of demand confirmed

GSTAPL-04

-

B

Appeal to the Appellate Tribunal

(i)

Appeal by the aggrieved person - Sec 112(1), (6)

3 months from the date of communication of the decision or order (Condonation - 3 months)

GSTAPL-05

GST in India – At a Glance

S. N.

Nature of appeal

Time limit

(ii)

Acknowledgment of filing of appeal

Within 7 days of filing of appeal

(iii)

Appeal/Application by the 6 months from the date of GST Officer as per direction of communication of the decision or the Commissioner - Sec order 112(3), (4)

GSTAPL-07

(iv)

Submission of a memorandum Within 45 days of the receipt of notice of cross objection by other (Condonation – 45 days) party - Sec 112(5), (6)

GSTAPL-06

(v)

Disposal of appeal by the Appellate Tribunal - Sec 113(4)

One year from the date of filing of appeal, wherever possible

(vi)

Issue of statement indicating final amount of demand confirmed by jurisdictional officer

-

C

Appeal to the High Court - Sec 180 days from the date of receipt of 117(2) order

Form GSTAPL-02

-

GSTAPL-04

GSTAPL-08

(4)

The Appellate Tribunal may, in its discretion, refuse to admit any such appeal where the tax or input tax credit involved or the difference in tax or input tax credit involved or the amount of fine, fee or penalty determined by such order, does not exceed INR 50,000/-. [Section 112(2)]

(5)

Filing and restoration fee before the Appellate Tribunal: The fees for filing and restoration of appeal shall be INR 1000/- for every INR 1 Lakh of tax or input tax credit involved or the difference in tax or input tax credit involved or the amount of fine, fee or penalty determined in the order appealed against, subject to maximum of INR 25,000/-.

[Rule 110(5) of the GST Rules]

(6)

Deposit of amount before filing of appeal (Stay Amount) As per sec 107(6) of the GST Act, no appeal shall be filed, unless the appellant has paid– (a)

in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him; and

(b)

a sum equal to 10% of the remaining amount of tax in dispute arising from the said order, in relation to which the appeal has been filed.

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1.27 Information returns (Section 150 of the CGST Act) 1.27.1 Who is required to file information return?

Following persons may be required to furnish information return, within such time, in such form and manner, to such authority or agency as may be prescribed Taxable person,  Local authority or other public body or association,  Department of VAT or central/state excise duty or customs duty,  Income tax authority,  Banking company,  State Electricity Board or electricity distribution Co.,  Registrar or the sub-Registrar appointed under sec 6 of the Registration Act, 1908,  Registrar under the Companies Act, 2013,  Registering authority under the Motor Vehicles Act, 1988,  Collector of the Right to Fair Compensation and Transparency in Land Acquisition,  Rehabilitation and Resettlement Act, 2013, Recognised stock exchange,  A depository referred in the Depositories Act, 1996,  An officer of the Reserve Bank of India,  G.S.T. network,  The person to whom UIN has been granted under sec 23(8),  Any other person as may be specified.  1.27.2 What type of information may be asked in the return?

Information may relate to details of payment of tax,  details of transaction of goods or services,  transactions related to a bank account,  consumption of electricity,  transaction of purchase, sale or exchange of goods or property or right or interest in a  property.

1.27.3

Penalty for non-furnishing of information return [Section 123 of GST Act] INR 100/- for each day of the period during which the failure to furnish such return continues maximum upto INR 5,000/-.

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GST in India â&#x20AC;&#x201C; At a Glance

Appendix GST on Reverse Charge Basis (Para 1.3) (A)

Reverse Charge in respect of goods under the CGST/SGST/IGST u/s 9(3) Notification No. 4/2017 (Central Tax-Rate) dated 28 June 2017 w.e.f. 1 July 2017

S. Tariff item, No. sub-heading, heading or Chapter (1)

(2)

1.

0801

2.

1404 90 10

3.

2401

4.

5004 to 5006

5.

-

Description of supply of Goods

Supplier of goods

Recipient of supply

(3)

(4)

(5)

Cashew nuts, not Agriculturist shelled or peeled

Any registered person

Bidi wrapper leaves (tendu)

Agriculturist

Any registered person

Tobacco leaves

Agriculturist

Any registered person

Silk yarn

Any person who manufactures silk yarn from raw silk or silk worm cocoons for supply of silk yarn

Any registered person

Supply of lottery.

State Government, Union Territory or any local authority

Lottery distributor or selling agent. (*)

(*) Explanation.- For the purposes of this entry, lottery distributor or selling agent has the same meaning as assigned to it in clause (c) of Rule 2 of the Lotteries (Regulation) Rules, 2010, made under the provisions of sub section 1 of section 11 of the Lotteries (Regulations) Act, 1998.

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GST Laws Manual: Acts, Rules and Forms, 2e

(B)

Reverse Charge in respect of services under CGST/SGST Act under sec 9(3) Notification No. 13/2017 (Central Tax-Rate) dated 28 June 2017 w.e.f. 1 July 2017

Sl. No.

Category of Supply of Services

Supplier of service

Recipient of Service

(1)

(2)

(3)

(4)

1

Supply of Services by a goods transport agency (GTA) in respect of transportation of goods by road to the recipients specified in column 4

Goods Transport Agency (GTA)

(a) Any factory registered under or governed by the Factories Act, 1948; or (b) any society registered under the Societies Registration Act, 1860 or under any other law for the time being in force in any part of India; or (c) any co-operative society established by or under any law; or (d) any person registered under the CGST Act or the IGST Act or the SGST Act or the UTGST Act; or (e) any body corporate established, by or under any law; or (f) any partnership firm whether registered or not under any law association of including persons; or (g) any casual taxable person; located in taxable territory. 1

An individual advocate including a senior advocate or firm of

Any business entity located3 in the taxable territory.

[The business entity located in the taxable territory who is litigant, applicant or petitioner, as the case may be, shall be treated as the

“Goods transport agency” means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called.

[Clause 2(ze) of Notification no. 12/2017- Central Tax (Rate) dated 28 June 2017]

2

1

2

3

50

Services supplied by an individual advocate 2 including a senior advocate by way of representational services before any court, tribunal or authority, 3 directly or

The person who pays or is liable to pay freight for the transportation of goods by road in goods carriage, located in the taxable territory shall be treated as the person who receives the service for the purpose of this notification. [vide Explanation to Notification no. 13/2017-Central Tax (Rate) dated 28 June 2017] “Advocate” has the same meaning as assigned to it in clause (a) of sub-section (1) of section 2 of the Advocates Act, 1961. [Clause 2(ze) of Notification no. 12/2017-Central Tax (Rate) dated 28 June 2017] “Business entity” means any person carrying out business. [Clause 2(n) of Notification no. 12/2017-Central Tax (Rate) dated 28 June 2017]

GST in India â&#x20AC;&#x201C; At a Glance

1

Supplier of service

Recipient of Service

Sl. No.

Category of Supply of Services

(1)

(2) indirectly, to any business entity located in the taxable territory, including where contract for provision of such service has been entered through another advocate or a firm of advocates, or by a firm of advocates, by way of legal services 1, to a business entity.

(3) advocates.

(4) person who receives the legal services for the purpose of this notification]

3

Services supplied by an arbitral tribunal to a business entity.

An arbitral tribunal.

Any business entity located in the taxable territory.

4

Services provided by way of sponsorship to any body corporate or partnership firm.

Any person

Any body corporate or partnership firm located in the taxable territory.

5

Services supplied by the Central Government, State Government, Union territory or local authority to a business entity excluding, (1) renting of immovable property, and (2) services specified below(i) services by the Department of Posts by way of speed post, express parcel post, life insurance, and agency services provided to a person other than Central Government, State Government or Union territory or local authority; (ii) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;

Central Any business entity located in the government, taxable territory.

State government, Union territory or local authority

â&#x20AC;&#x153;Legal serviceâ&#x20AC;? means any service provided in relation to advice, consultancy or assistance in any branch of law, in any manner and includes representational services before any court, tribunal or authority. [Clause 2(zm) of Notification no. 12/2017-Central Tax (Rate) dated 28 June 2017]

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Sl. No.

Category of Supply of Services

Supplier of service

Recipient of Service

(1)

(2) (iii) transport of goods or passengers.

(3)

(4)

6

Services supplied by a director of a company or a body corporate to the said company or the body corporate.

A director of a company or a body corporate

The company or a body corporate located in the taxable territory.

7

Services supplied by an insurance agent to any person carrying on insurance business.

An insurance agent

Any person carrying on insurance business, located in the taxable territory.

8

Services supplied by a recovery agent to a banking company or a financial institution or a non-banking financial company.

A recovery agent

A banking company or a financial institution or a non-banking financial company, located in the taxable territory.

9

Supply of services by an author, music composer, photographer, artist or the like by way of transfer or permitting the use or enjoyment of a copyright covered under sec 13(1) (a) of the Copyright Act, 1957 relating to original literary, dramatic, musical or artistic works to a publisher, music company, producer or the like.

Author or music composer, photographer, artist, or the like

Publisher, music company, producer or the like, located in the taxable territory.

Explanation.- For purpose of this notification, â&#x20AC;&#x153;Body Corporateâ&#x20AC;? has the same meaning as assigned to it in section 2(11) of the Companies Act, 2013.

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GST in India – At a Glance

(C)

Reverse Charge in respect of services under the IGST Act under section 5(3) of IGST Act (in addition to services specified in Para (B) above) Notification No. 10/2017-Integrated Tax (Rate) dated 28 June 2017 w.e.f. 1 July 2017

Sl. No.

Category of Supply of Services

Supplier of service

Recipient of Service

(1)

(2)

(3)

(4)

In addition to services specified in Para (B) above 1

Any service supplied by any person who is located in a nontaxable territory to any person other than non-taxable online recipient.

Any person located in a nontaxable territory

Any person located in the taxable territory other than non-taxable online recipient.

2

Services supplied by a person located in non- taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India. (*)

A person located in non-taxable territory

Importer, as defined in clause (26) of section 2 of the Customs Act, 1962, located in the taxable territory.

(*) Notification No. 8/2017-Integrated Tax (Rate) dated 28 June 2017 read with Corrigendum dated 30 June 2017 w.e.f. 1 July 2017 “4. Where the value of taxable service provided by a person located in non-taxable territory to a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India is not available with the person liable for paying integrated tax, the same shall be deemed to be 10% of the CIF value (sum of cost, insurance and freight) of imported goods.”

(D)

Reverse charge in respect of goods and/or services under section 9(4) under CGST/SGST/IGST

Sl. No.

Category of Supply of Services

Supplier of service

Recipient of Service

(1)

(2)

(3)

(4)

1

Supply of taxable goods or services or both by a supplier, who is not registered, to a registered person

Unregistered supplier

Registered person

Exemption under section 9(4) from paying reverse charge – 

Notification No. 8/2017 (Central Tax-Rate) dated 28 June 2017 w.e.f. 1 July 2017: Intra-state supplies of goods or services or both, received by a registered person from any unregistered supplier from the whole of the central tax leviable thereon under sec 9(4) of the CGST Act where the aggregate value of such supplies of goods or service or

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GST Laws Manual: Acts, Rules and Forms, 2e

both received by a registered person from any or all the unregistered suppliers does not exceeds INR 5000/ - in a day. ď&#x201A;&#x;

Notification No. 9/2017 (Central Tax-Rate) dated 28 June 2017 w.e.f. 1 July 2017: Intra-State supplies of goods or services or both received by a deductor under section 51 of the said Act from any unregistered supplier from the whole of the central tax leviable thereon under sec 9(4) of the CGST Act, subject to the condition that the deductor is not liable to be registered otherwise than under sec 24(vi) of the said Act.

ď&#x201A;&#x;

Notification No. 10/2017 (Central Tax-Rate) dated 28 June 2017 w.e.f. 1 July 2017: Intra-State supplies of second hand goods received by a registered person, dealing in buying and selling of second hand goods and who pays the central tax on the value of outward supply of such second hand goods as determined under sub-rule (5) of rule 32 of the Central Goods and Services Tax Rules, 2017, from any supplier, who is not registered, from the whole of the central tax leviable thereon.

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