Contents at a glance About the authors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix Table of contents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xv PART A
CONCEPTUAL UNDERSTANDING OF GST LAW Chapter 1
Overview of Goods & Services Tax (GST). . . . . . . . . . . . . . . . . . . . . . 3
Chapter 2
GST Terminology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Chapter 3
Constitutional Framework of GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
Chapter 4
Charge of GST Including Exemption . . . . . . . . . . . . . . . . . . . . . . . . 101
Chapter 5
Supply of Goods and Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
Chapter 6
Time of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
Chapter 7
Place of Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143
Chapter 8
Composition Levy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
Chapter 9
Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
Chapter 10
Valuation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191
Chapter 11
Payment under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201
Chapter 12
Returns under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215
Chapter 13
E-commerce Transactions under GST. . . . . . . . . . . . . . . . . . . . . . . . 237
Chapter 14
Invoices, Debit and Credit Notes. . . . . . . . . . . . . . . . . . . . . . . . . . . . 243
Chapter 15
Input Tax Credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261
Chapter 16
Job Work under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279
Chapter 17
Assessments under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285
Chapter 18
Refunds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 299
Chapter 19
Transitional Provisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315
Chapter 20
E-Way Bill. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 335
Chapter 21
Overview of IGST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 341
Chapter 22
Overview of SGST Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 361
Chapter 23
Overview of UTGST Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 367
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GST: Laws, Concepts, Impact Analysis for Industrial & Manufacturing Sector
PART B
GST – IMPACT ANALYSIS ON INDUSTRIAL AND MANUFACTURING SECTOR Chapter 1
GST Compliance Ratings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 379
Chapter 2
Anti-Profiteering Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 385
Chapter 3
Railway Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 395
Chapter 4
Insurance (Life and General) Services. . . . . . . . . . . . . . . . . . . . . . . . 425
Chapter 5
Exports and Special Economic Zones (SEZ). . . . . . . . . . . . . . . . . . . 447
Chapter 6
Import of Goods and Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 479
Chapter 7
Gems and Jewellery Industry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 499
Chapter 8
Alcoholic Beverages Industry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 525
Chapter 9
Real Estate & Construction (including Government Contracts). . . . 541
Chapter 10
Media, Entertainment and Paper Industry. . . . . . . . . . . . . . . . . . . . . 591
Chapter 11
Logistics Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 611
Chapter 12
Transportation of Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 635
Chapter 13
Textiles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 653
Chapter 14
Automobile & Ancillary Industries. . . . . . . . . . . . . . . . . . . . . . . . . . 675
Chapter 15
E-commerce Business (including ITES and OIDAR). . . . . . . . . . . . 705
Chapter 16
Consumer Goods (Including FMCG) . . . . . . . . . . . . . . . . . . . . . . . . 739
Chapter 17
Manufacturing Job Work and Job Workers. . . . . . . . . . . . . . . . . . . . 771 PART C
LEGISLATION I.
The Constitution (101st Amendment) Act, 2016. . . . . . . . . . . . . . . . . . . . . 803
II.
Taxation Laws (Amendment) Act, 2017. . . . . . . . . . . . . . . . . . . . . . . . . . . . 811
III.
Central GST Act and Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 837 III-1. Central Goods and Services Tax Act, 2017. . . . . . . . . . . . . . . . . . . . . 837 III-2. Central Goods and Services Tax Rules, 2017 . . . . . . . . . . . . . . . . . . 1001 III-3. Central Goods and Services Tax (Extension to Jammu and Kashmir) Act, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1131
IV.
IGST Act and Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1133 IV-1. Integrated Goods and Services Tax Act, 2017. . . . . . . . . . . . . . . . . . 1133 IV-2. Integrated Goods and Services Tax Rules, 2017. . . . . . . . . . . . . . . . 1161 IV-3. Integrated Goods and Services Tax (Extension to Jammu and Kashmir) Act, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1163
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Contents at a glance
V.
GST (Compensation to States) Act and Rules. . . . . . . . . . . . . . . . . . . . . . 1165 V-1. Goods and Services Tax (Compensation to States) Act, 2017. . . . . . 1165 V-2. Goods and Services Tax Compensation Cess Rules, 2017 . . . . . . . . 1179
VI.
Press Releases, Circulars and Order. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1181 VI-1. Press Releases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1181 VI-2. Circulars. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1205 VI-3. Order. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1229
VII. GST Tariff – Goods and Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1231 VIII. FAQs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1233 CD Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . liii
xiii
Table of contents About the authors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix Contents at a glance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xi PART A
CONCEPTUAL UNDERSTANDING OF GST LAW Chapter 1 Overview of Goods & Services Tax (GST). . . . . . . . . . . . . . . . . . . . . 3 Power of Government to Levy Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Major Indirect Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Deficiencies in erstwhile Indirect Taxation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Need for GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Features of GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Why to have GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Cascading Effect. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Scope of Services in GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Scope of Goods in GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Taxes to be subsumed in GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Taxes not Subsumed in GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Point of Levy of GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Liability to Pay GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Advantages of GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Disadvantages of GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Dual GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 GST Models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Central GST (CGST) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 State GST (SGST). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Integrated GST (IGST). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 GST Network (GSTN) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Legal Frame Work. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Amendments in other Tax Statutes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Taxonomy of GST Statutes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 GST Compensation Act, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Tax Administration/Dual Control. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 xv
GST: Laws, Concepts, Impact Analysis for Industrial & Manufacturing Sector
Chapter 2 GST Terminology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 CGST/SGST Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 IGST Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 UTGST Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Explanation of Terms under CGST/SGST/UTGST Law. . . . . . . . . . . . . . . . . . . . . . . 35 Actionable Claim [Section 2(1)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Address of Delivery [Section 2(2)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Address on Record [Section 2(3)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Agent [Section 2(5)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Aggregate Turnover [Section 2(6)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Agriculturist [Section 2(7)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Assessment [Section 2(11)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Associated Enterprise [Section 2(12)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Business [Section 2(17)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Business Vertical [Section 2(18)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Casual Taxable Person [Section 2(20)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Deemed Exports [Section 2(39)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Electronic Commerce [Section 2(44)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Electronic Commerce Operator [Section 2(45)]. . . . . . . . . . . . . . . . . . . . . . . . 51 Exempt Supply [Section 2(47)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Government [Section 2(53)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 India [Section 2(56)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 Job-work [Section 2(68)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Local Authority [Section 2(69)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Manufacture [Section 2(72)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Market Value [Section 2(73)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Money [Section 2(75)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Non-resident taxable person [Section 2(77)]. . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Non-taxable & Taxable Territory [Section 2(79), 2(109)]. . . . . . . . . . . . . . . . . 61 Person [Section 2(84)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Place of Business [Section 2(85)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Principal Place of Business [Section 2(89)] . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Principal Supply [Section 2(90)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Recipient [Section 2(93)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Removal [Section 2(96)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Reverse Charge [Section 2(98)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Securities [Section 2(101)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Services [Section 2(102)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Supplier [Section 2(105)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Telecommunication Service [Section 2(110)]. . . . . . . . . . . . . . . . . . . . . . . . . . 68 Turnover in a State or Union Territory [Section 2(112)]. . . . . . . . . . . . . . . . . . 68 xvi
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Usual Place of Residence [Section 2(113)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Voucher [Section 2 (118)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Works Contract [Section 2(119)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 Competent Authority (Schedule II). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Construction (Schedule II). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Governmental Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Health Care Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 Education Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Explanation of Terms under IGST Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Continuous Journey [Section 2(3)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Custom Frontiers of India [Section 2(4)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 Export of Services [Section 2(6)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 Fixed Establishment [Section 2(7)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Government [Section 2(9)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Import of Goods [Section 2(10)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 Import of Services [Section 2(11)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 Intermediary [Section 2(13)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 Non-taxable Online Recipient [Section 2(16)]. . . . . . . . . . . . . . . . . . . . . . . . . 82 Online Information Database Access or Retrieval Services [Section 2(17)]. . . 83 Output Tax [Section 2(18)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 Zero Rated Supply [Section 2(23)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 Explanation of Terms under UTGST Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 Government [Section 2(6)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 Union Territory [Section 2(8)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 Chapter 3 Constitutional Framework of GST. . . . . . . . . . . . . . . . . . . . . . . . . . 87 Constitutional Framework of GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 Constitutional (115th Amendment) Bill, 2011. . . . . . . . . . . . . . . . . . . . . . . . . . 87 New insertion of Articles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 Constitution (101st Amendment) Act, 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 The GST Council (GSTC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 Meaning of Goods, Services and GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 Rate of GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 Tax Rates on Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 Highlights of GST rates on Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 Taxability and Levy of GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 Dispute Redressal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 Highlights/Journey of Constitutional Amendments for GST. . . . . . . . . . . . . . . . . . . . 95 GST Compensation to States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 Objectives of Compensation Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 xvii
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Compensation Cess. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 Changes in Compensation Cess Rates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 Chapter 4 Charge of GST Including Exemption 101 Levy of GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 Rate of GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 Reverse Charge – Section 9(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102 Supply by a Non Registered Supplier – Section 9(4). . . . . . . . . . . . . . . . . . . 103 Electronics Commerce Operator. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 Taxable Person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 Persons liable for registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 Aggregate turnover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 Supplies on behalf of Principals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 Job work Supplies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 Persons not liable for registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108 Agriculturist. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108 Person having more than one registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108 Power to Grant Exemption from Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 Power under circumstances of special nature. . . . . . . . . . . . . . . . . . . . . . . . . 109 Clarification of a notification. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 Date of effectiveness of notification or order . . . . . . . . . . . . . . . . . . . . . . . . . 110 Summary reference chart –Charge of GST including exemptions. . . . . . . . . . . . . . . 110 Supply of Goods and Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 Chapter 5 Meaning and Scope of Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 Meaning of Goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114 Meaning of Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114 Distinction between Goods and Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115 Sale and Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115 Barter and Exchange. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116 License, Rental and Lease. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116 Disposal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116 Made or Agreed to be made . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117 Consideration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117 In the Course or Furtherance of Business. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118 Importation of Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118 Schedule I – Supplies without Consideration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119 Permanent transfer or disposal of business assets. . . . . . . . . . . . . . . . . . . . . . 119 Supply of goods or services between related or distinct persons . . . . . . . . . . 120 Employer and employee transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120 xviii
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Transactions between principal and agent. . . . . . . . . . . . . . . . . . . . . . . . . . . . 120 Importation of services from related or distinct person. . . . . . . . . . . . . . . . . . 121 Schedule II – Matters for Determination of Goods or Services. . . . . . . . . . . . . . . . . 121 Schedule III – Activities neither Supply of Goods nor Services . . . . . . . . . . . . . . . . 124 Composite Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125 Mixed Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126 Summary reference chart - supply of goods and services. . . . . . . . . . . . . . . . . . . . . . 127 Chapter 6 Time of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129 Relevance of Time of Supply in GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129 Time of Payment of GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129 Time of Supply of Goods Generally. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129 Removal of goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130 Removal of goods for purpose other than supply. . . . . . . . . . . . . . . . . . . . . . 131 Meaning of date of receipt of payment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131 Receipt of excess payment upto INR 1000/-. . . . . . . . . . . . . . . . . . . . . . . . . . 131 Continuous supply of goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131 Supply of Goods on Approval or Sale or Return Basis . . . . . . . . . . . . . . . . . . . . . . . 132 Goods Liable for Payment of Tax on Reverse Charge Basis . . . . . . . . . . . . . . . . . . . 132 Supply of Vouchers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134 Residual Cases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134 Interest, Late Fee or Penalty for Delayed Payment . . . . . . . . . . . . . . . . . . . . . . . . . . 134 Time of Supply of Services Generally. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 Meaning of date of receipt of payment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 Receipt of excess payment upto INR 1000/-. . . . . . . . . . . . . . . . . . . . . . . . . . 136 Continuous supply of services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 Supply ceases under a contract. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137 Services Liable for Payment of Tax on Reverse Charge Basis. . . . . . . . . . . . . . . . . . 137 Reverse Charge Basis in Case of Associated Enterprises. . . . . . . . . . . . . . . . . . . . . . 138 Supply of Vouchers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139 Residual Cases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139 Interest, Late Fee or Penalty for Delayed Payment . . . . . . . . . . . . . . . . . . . . . . . . . . 139 Change in Effective Rate of Tax before the Supply of Goods and Services. . . . . . . . 140 Change in Effective Rate of Tax after the Supply of Goods and Services. . . . . . . . . 140 Summary reference chart - Time of supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141 Chapter 7 Place of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143 Meaning of Place of Supply and its Relevance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143 Different Establishment of the same person. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143 Location in Territorial Waters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 xix
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Supply of Goods in the Course of Inter-State Trade and Commerce. . . . . . . . . . . . . 144 Supply of Goods in the Course of Intra-State Trade and Commerce. . . . . . . . . . . . . 144 Goods required to be Moved. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145 Goods Supplied on for Basis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145 Supply of Goods on Ex Works Basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145 Suppliers’ Obligation to Keep Record of Movement of Goods. . . . . . . . . . . . . . . . . 146 Supply of Goods to a Third Person. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146 Goods Supplied to a Third Person by Recipient during Movement to him. . . . . . . . 147 Supply of Goods which are not required to be Moved. . . . . . . . . . . . . . . . . . . . . . . . 147 Supply of Goods Required to be Installed or Assembled. . . . . . . . . . . . . . . . . . . . . . 148 Goods Supplied on Board a Conveyance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148 Supply of Goods as Export or Import into India. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149 Supply of Goods - Non Applicability of any of the above Rules. . . . . . . . . . . . . . . . 149 Supply of Services in the Course of Inter-State Trade and Commerce . . . . . . . . . . . 149 Supply of Services in the Course of Intra-State Trade and Commerce . . . . . . . . . . . 150 General Principles to Determine Place of Supply of Service. . . . . . . . . . . . . . . . . . . 150 Challenges in Ascertaining Place of Supply of Service. . . . . . . . . . . . . . . . . . . . . . . 150 General Rule for Place of Supply of Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151 Place of Supply in Relation to Immovable Property Service. . . . . . . . . . . . . . . . . . . 152 Immovable Property, Boat or Vessel Located at more than One Place. . . . . . . . . . . . 153 Restaurant, Catering, personal Grooming Services . . . . . . . . . . . . . . . . . . . . . . . . . . 153 Training, Performance Appraisal Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154 Admission to an Event . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154 Organising Events and Auxiliary Services in Relation thereto. . . . . . . . . . . . . . . . . . 154 Event held in more than one states of India. . . . . . . . . . . . . . . . . . . . . . . . . . . 155 Goods Transport and Courier Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155 Passenger Transportation Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155 Services on Board or Conveyance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156 Telecommunication Service, Data Transfer, Broadcasting, Cable and DTH. . . . . . . 156 Telecommunication and other services – address of recipient not on record . 157 Leased circuit provided in multiple states. . . . . . . . . . . . . . . . . . . . . . . . . . . . 157 Banking and other Financial Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157 Insurance related Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158 Advertisement Services to Government, Local Authority or Statutory Body . . . . . . 158 Either Recipient or Supplier of Service is Located Outside India – Location of Service Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159 Services Provided at Various Taxable Territories including India . . . . . . . . . . . . . . . 161 Power of Central Government to Notify. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162 xx
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Chapter 8 Composition Levy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163 Objective of Composition Levy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163 Advantages and Disadvantages of Opting for Composition Scheme. . . . . . . . . . . . . 163 Taxable Persons Eligible for Composition Levy . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163 Taxable Persons not Eligible for Composition Levy . . . . . . . . . . . . . . . . . . . . . . . . . 164 Special Category States. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164 Meaning of Aggregate Turnover for Composition Levy . . . . . . . . . . . . . . . . . . . . . . 165 Rate of Tax as Composition Levy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165 Other Restrictions on Composition Taxable Person. . . . . . . . . . . . . . . . . . . . . . . . . . 165 Inward Inter-state Supply and Composition Taxable Person. . . . . . . . . . . . . . . . . . . 166 Imports and Exports – Composition Taxable Person. . . . . . . . . . . . . . . . . . . . . . . . . 166 Composition Scheme – Mandatory or Optional. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167 Collection of Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167 Input Tax Credit on Supply from Composition Dealer. . . . . . . . . . . . . . . . . . . . . . . . 167 Withdrawal of Composition Scheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168 Validity of Composition Levy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168 Penal Provisions on Cancellation of Option for Composition Levy. . . . . . . . . . . . . . 169 Switch over to Composition Scheme and Vice versa. . . . . . . . . . . . . . . . . . . . . . . . . 169 Applicability of Reverse Charge Obligations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169 Inward Supply from Unregistered Persons. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169 Summary reference chart - Composition Levy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169 Chapter 9 Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173 Relevance of Registration in GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173 Persons Liable to Seek Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173 Persons not Liable for Registration under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174 Basic Requirements for Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175 Structure of GST Registration Number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175 Various Types of Registrations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176 Time Allowed for Seeking Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176 Effective Date of Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176 Registration on Voluntary Basis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177 Requisite Documents for Obtaining Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . 177 Centralised Registration of Multi-unit Operations. . . . . . . . . . . . . . . . . . . . . . . . . . . 178 Time Limit for Grant or Refusal of Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178 Facility of Downloading Registration Certificate. . . . . . . . . . . . . . . . . . . . . . . . . . . . 179 Migration of Taxable Person already Registered under Central Excise/ Service Tax/State VAT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180
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Registration Procedure for E-commerce Operator and Person required to Deduct Tax at Source . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180 Registration of Non-resident Tax Payer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180 Validity Period of Registration of Casual or Non-resident Tax Payer . . . . . . . . . . . . 180 Input Service Distributor (ISD) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181 Central, State Government or a Local Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181 UN bodies, Consulates or Embassies of Foreign Countries. . . . . . . . . . . . . . . . . . . . 181 Unique Identification Number (UIN) and its Relevance . . . . . . . . . . . . . . . . . . . . . . 181 Suo Moto Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182 Amendment in Registration Certificate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182 Rejection of Request for Amendment in Registration . . . . . . . . . . . . . . . . . . . . . . . . 183 Cancellation of Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184 Voluntary Registration and Cancellation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184 Cancellation of Registration by Department Suo Moto. . . . . . . . . . . . . . . . . . . . . . . 184 Implications of Cancellation of Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185 Revocation of Cancellation of Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185 Physical Verification of Business Premises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186 Chapter 10 Valuation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191 Relevance of Registration in GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191 Value to be considered for Levy of Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191 Meaning of Consideration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192 Meaning of Money. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193 Deposits – Treatment in Valuation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193 Valuation of Taxable Supplies in Ordinary Course. . . . . . . . . . . . . . . . . . . . . . . . . . . 194 Meaning of Transaction Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194 Meaning of the Term ‘Related’. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195 Meaning of Person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195 Valuation other than Transaction Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196 Consideration not wholly of partly in money. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196 Supply between related and distinct persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197 Supply made to or by an agent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197 Value of supply based on Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 Residual Method. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 Booking of Air tickets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 Buying and Selling of second hand goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 Open Market Value. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 Summary Reference Chart : Valuation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 xxii
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Chapter 11 Payment under GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201 Types of Tax Payments Required to be made in GST . . . . . . . . . . . . . . . . . . . . . . . . 201 Persons Liable to Make Payments under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201 Due Date for Making the Payment of Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201 Different Payment Options. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202 Types of Ledgers Maintained by GSTN. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203 Electronic Liability Register. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203 Electronic Cash ledgers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204 Electronic Credit Ledger. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204 Payments from electronic credit ledger and restrictions. . . . . . . . . . . . . . . . . 205 Payments from electronic Cash ledger and process . . . . . . . . . . . . . . . . . . . . 206 Challan–Generation and making Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207 Payment of Tax and Filing of Valid Return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208 Refund Adjustment and Rejection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208 Delay in Payment of Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208 Undue or Excess Claim of Input Tax Credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209 Tax Deduction at Source. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209 TDS not to be Deducted. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210 Certificate of TDS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210 Refund of erroneous deduction of TDS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210 Tax Collection at Source. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210 Reverse Charge. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211 Summary Reference Chart - Payment under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . 211 Chapter 12 Returns under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215 Return – Meaning and Purpose. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215 Returns Prescribed under GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215 Filing of Returns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217 UN Bodies and Government Departments . . . . . . . . . . . . . . . . . . . . . . . . . . . 217 Common Return Form. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218 Deposit of Self-assessment Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218 Return of a Business Vertical. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218 Return of Non-resident Taxpayer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218 Return of Taxpayer Paying Tax on Compounding Basis. . . . . . . . . . . . . . . . . 219 Return of Outward Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219 Details in Return of Outward Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220 Date of filing return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221 Changes in return of outward supply. . . . . . . . . . . . . . . . . . . . . . . . . . 222 Return of Inward Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222 Input tax credit and return of inward supplies. . . . . . . . . . . . . . . . . . . 223 xxiii
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Monthly Return. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224 Refund of any balance in Electronic Cash Ledger. . . . . . . . . . . . . . . . 224 Monthly Return in Form GSTR 3B. . . . . . . . . . . . . . . . . . . . . . . . . . . 225 Returns of other Taxable Persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225 Annual Return. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226 Quarterly Return of Job Work Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . 227 First Return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227 Final Return. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227 Matching, Reversal and Reclaim of Input Tax Credit. . . . . . . . . . . . . . . . . . . 228 Non-matching, its Impact and Consequences. . . . . . . . . . . . . . . . . . . . . . . . . 229 Matching, Reversal and Reclaim of Reduction in Output Tax Liability. . . . . 230 Consequences of Non-filing of Return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 230 Goods and Service Tax Practitioners (GSTP) and Facilitation Centres (FC). . . . 231 Summary Reference Chart : Returns under GST . . . . . . . . . . . . . . . . . . . . . . 232 Chapter 13 E-commerce Transactions under GST. . . . . . . . . . . . . . . . . . . . . . 237 Present Taxation Structure of E-commerce Sector. . . . . . . . . . . . . . . . . . . . . . . . . . . 237 Business Models of E-commerce Trade. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237 Impact of GST on E-commerce Operator. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238 Meaning and Scope of Electronic Commerce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238 Tax Collected at Source (TCS). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239 Rate, collection and deposit of TCS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239 Deposit of TCS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239 Filing of return. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240 Rectification of return by E-commerce operator. . . . . . . . . . . . . . . . . . . . . . . 240 Claim of TCS by Suppliers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240 Return of Suppliers and Matching of Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240 Additional Returns to be filed by an E-commerce Operator. . . . . . . . . . . . . . . . . . . . 241 Summary Reference Chart: E-commerce transactions. . . . . . . . . . . . . . . . . . . . . . . . 242 Chapter 14 Invoices, Debit and Credit Notes . . . . . . . . . . . . . . . . . . . . . . . . . . 243 Type of Invoices in GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243 Tax Invoice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244 Meaning and relevance of tax invoice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244 Tax invoice of goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244 Tax invoice for services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245 Requisite particulars to be shown on tax invoice . . . . . . . . . . . . . . . . . . . . . . 246 Details required on Tax invoice for export . . . . . . . . . . . . . . . . . . . . . . . . . . . 247 Requirement of Additional details. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247 Manner of issuance of tax invoice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248 Meaning and purpose of Common portal . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248 xxiv
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Bill of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249 Requisite particulars on Bill of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249 Receipt Voucher . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250 Refund Voucher. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250 Payment Voucher . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251 Credit Note. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251 Meaning and usage of credit note. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251 Time limit for declaration of credit note. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 252 Non-deduction in case of credit notes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 252 Debit Note/Supplementary Invoice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253 Meaning and usage of Debit note/Supplementary invoice. . . . . . . . . . . . . . . 253 Time limit for declaration of debit notes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253 Input tax credit of debit note/supplementary invoice . . . . . . . . . . . . . . . . . . . 254 Requisite Details to be shown on Credit Note, Debit Note/Supplementary Tax Invoice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254 Revised Invoice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254 Revised invoice and Supplementary invoice – Difference. . . . . . . . . . . . . . . . . . . . . 255 Consolidated Revised invoice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256 Consolidated Revised Tax Invoice for Inter-state Supply. . . . . . . . . . . . . . . . 256 Details on invoice issued by ISD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257 Banking company or NBFC as ISD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257 Goods Transport Agency and Tax Invoice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 258 Passenger Transportation Services and Tax Invoice. . . . . . . . . . . . . . . . . . . . . . . . . . 258 Delivery Challan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259 Contents of Delivery challan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259 Transportation of semi knocked down or completely knocked down goods. . . . . . . 260 Summary Reference Chart : Invoices, debit notes and credit notes. . . . . . . . . . . . . . 260 Chapter 15 Input Tax Credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261 Concept of Input Tax Credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261 Meaning of Input. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261 Meaning of Capital goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261 Meaning of Input service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262 Meaning of Input tax and Input tax credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262 Eligibility Conditions for Availing Input Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . 263 Entitlement Conditions for Input Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263 Further Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 264 Input Tax Credit on Goods Supplied to a Third Person . . . . . . . . . . . . . . . . . . . . . . . 266 Input Tax Credit on Capital Goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266 xxv
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In-eligible or Blocked Input Tax Credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266 Services not eligible for input tax credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267 Goods and/or Services partly used for Business. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268 Taxable and Exempt Supplies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268 Bank, financial institution or NBFC supplying exempt services. . . . . . . . . . . . . . . . 268 Construction Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 269 Person applying for Registration in GST for First Time. . . . . . . . . . . . . . . . . . . . . . . 269 Person making Late Application for Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . 270 Registered Taxable Person Switching over from Composition Levy. . . . . . . . . . . . . 270 Registered Taxable Person Switching over to Composition Levy. . . . . . . . . . . . . . . 271 Exempt Supply of Goods becoming Taxable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271 Taxable Supply of Goods becoming Exempt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271 Change in the Constitution of Registered Taxable Person. . . . . . . . . . . . . . . . . . . . . 271 Supply of Capital Goods on which Input Tax Credit has been Availed. . . . . . . . . . . 272 Inputs Directly Sent to Job Worker. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272 Capital Goods Sent to Job Worker . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273 Meaning of Input Service Distributor (ISD). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273 Manner of Distribution of Credit by ISD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 274 Conditions for Distribution of Credit by ISD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275 Meaning of Relevant Period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275 Consequences of Excess Distribution of Credit by ISD. . . . . . . . . . . . . . . . . . . . . . . 276 Summary Reference Chart : Input tax credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 276 Chapter 16 Job Work under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279 Meaning of Job Work and Job Worker. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279 Registration Requirement of a Job Worker. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279 Supply of Goods by Principal to a Job Worker. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280 Supply of Goods Directly to a Job Worker. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280 Moulds and Dies, Jigs and Fixtures or Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280 Supply of Goods on Completion of Job Work. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281 Consequences of Non-receipts of Inputs within One Year. . . . . . . . . . . . . . . . . . . . . 281 Consequences of Non-receipt of Capital Goods within Three Years. . . . . . . . . . . . . 282 Moulds and Dies, Jigs and Fixtures or Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 282 Scrap and Waste Generated during Job Work. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 282 Return of Job Work. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 284 Summary Refernce Chart : Job work. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 284 Chapter 17 Assessments under GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285 Meaning and Types of Assessments in GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285 xxvi
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Various Assessments at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285 Various Types of Assessments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286 Provisional Assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 288 Request of taxable person. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289 Bond with Surety. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289 Details and conditions in order permitting provisional assessment . . . . . . . . 289 Short/Excess payment in provisional assessment. . . . . . . . . . . . . . . . . . . . . . 290 Release of Security. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 291 Scrutiny of Returns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 291 Ingredients of scrutiny of returns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 291 Consequences of non-furnishing of satisfactory explanation. . . . . . . . . . . . . 292 Assessment of Non-filers of Return. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 292 Time limit for finalising the Best Judgment Assessment. . . . . . . . . . . . . . . . . 292 Withdrawal of order of Best Judgment Assessment . . . . . . . . . . . . . . . . . . . . 293 Validity of order of Best Judgment Assessment . . . . . . . . . . . . . . . . . . . . . . . 293 Interest and late fee in case of Best Judgment Assessment. . . . . . . . . . . . . . . 293 Assessment of Unregistered Persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293 Summary Assessment – Meaning, Circumstances and Procedure. . . . . . . . . . . . . . . 294 Withdrawal of Summary Assessment order . . . . . . . . . . . . . . . . . . . . . . . . . . 295 Summary reference chart - Assessments under GST. . . . . . . . . . . . . . . . . . . . . . . . . 295 Chapter 18 Refunds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 299 Meaning of Refund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 299 Situations giving Rise to Refund in GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 299 Application for Refund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 299 Meaning of Relevant Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300 Refund of Tax Paid on Inward Supply of Goods and/or Services . . . . . . . . . . . . . . . 301 Refund of Input Tax Credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 302 Refund of Balance in Electronic Cash Ledger. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 302 Application for Refund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303 Documents to be filed with refund application. . . . . . . . . . . . . . . . . . . . . . . . 303 Refund application for supplies made to SEZ. . . . . . . . . . . . . . . . . . . . . . . . . 304 Refund claim of less than INR 2 lakhs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305 Refund claim of more than INR 2 lakhs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305 Passing of incidence of tax or interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305 Refund Filed by Suppliers of Zero Rated Goods and Services . . . . . . . . . . . . . . . . . 305 Refund for Export – Bank Realisation Certificate. . . . . . . . . . . . . . . . . . . . . . 306 Refund for Export – Principle of unjust enrichment. . . . . . . . . . . . . . . . . . . . 306 Time Limit for Processing of Refund Claim . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 306 Types of Refunds Payable to Applicant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 306 xxvii
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Contrary directions of tribunal, court or any other provision of the Act. . . . . 307 Procedure of Rejection of Refund Application. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 307 Withholding of Refund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 307 Meaning of Specified date. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 308 Withholding of refund by Commissioner . . . . . . . . . . . . . . . . . . . . . . . . . . . . 308 Interest for withholding period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 308 Refund of Advance Deposit by Casual or Non-resident Taxable Person. . . . . . . . . . 308 Minimum Ceiling on Refund Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309 Interest on Delayed Refund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309 Consumer Welfare Fund – Meaning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309 Circumstances for crediting consumer welfare fund. . . . . . . . . . . . . . . . . . . . 309 Amounts to be credited to consumer welfare fund. . . . . . . . . . . . . . . . . . . . . 309 Utilisation of consumer welfare fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309 Summary reference chart – Refunds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 312 Chapter 19 Transitional Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315 ‘Appointed day’ and ‘Existing law’ – Meaning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315 Migration of Existing Registered Taxable Persons. . . . . . . . . . . . . . . . . . . . . . . . . . . 316 Time limit for seeking registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 316 Mandatory requirement for migration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317 Procedure for migration to GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317 Information required for enrolment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317 Input Service Distributor (ISD) migration. . . . . . . . . . . . . . . . . . . . . . . . . . . . 318 Primary authorized signatory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 318 Carry Forward of Cenvat or State Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320 Conditions attached for carry forward. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320 Unavailed Cenvat Credit on Capital Goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320 Credit of Eligible Duties and Taxes in respect of Inputs Held in Stocks. . . . . . . . . . 321 Conditions for availment of credit on inputs. . . . . . . . . . . . . . . . . . . . . . . . . . 321 Not in possession of tax paying document . . . . . . . . . . . . . . . . . . . . . . . . . . . 322 Exempted as well as not exempted goods or services. . . . . . . . . . . . . . . . . . . 322 Input goods or services in transit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 323 Inputs in stock of a person switching over from composition scheme. . . . . . . . . . . . 323 Credit distribution of service tax by ISD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324 Transfer of Unutilised Cenvat Credit by Taxable Person having Centralised Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324 Availing Cenvat Credit in Certain Cases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324 Inputs removed for job work returned on or after the appointed day. . . . . . . 325 Semi-finished goods removed for job work returned on or after the appointed day. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325 xxviii
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Finished goods removed for job work returned on or after the appointed day.326 Tax paid Goods Returned on or after the Appointed Day. . . . . . . . . . . . . . . . . . . . . . 326 Issue of Supplementary Invoices, Debit or Credit Notes on Revision of Prices . . . . 327 Pending Refund Claims to be Disposed of under Existing Law. . . . . . . . . . . . . . . . . 327 Refund claims filed after the appointed day for goods cleared and/ or services provided before the appointed day and exported before or after the appointed day to be disposed of under existing law. . . . . . . . . . . . . 328 Refund claims filed after the appointed day for payments received and tax deposited before the appointed day in respect of services not provided. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 328 Claim of cenvat credit to be disposed of under existing law. . . . . . . . . . . . . . 328 Finalisation of Proceedings relating to Output Duty or Tax Liability . . . . . . . . . . . . 329 Amount Recovered or Refunded in Pursuance of Assessment or Adjudication Proceedings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 329 Amount Recovered or Refunded in Pursuance of Revision of Returns. . . . . . . . . . . 329 Treatment of Long-term Construction or Works Contract. . . . . . . . . . . . . . . . . . . . . 330 Taxability of Supply of Goods in Certain Cases. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 330 Taxability of Supply of Services in Certain Cases. . . . . . . . . . . . . . . . . . . . . . . . . . . 330 Progressive or Periodic Supply of Goods and/or Services. . . . . . . . . . . . . . . . . . . . . 330 Goods Sent on Approval Basis Returned after the Appointed Day . . . . . . . . . . . . . . 331 Deduction of Tax at Source. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 331 Tax paid on Goods Lying with Agents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 331 Credit of stock lying at branches (depots). . . . . . . . . . . . . . . . . . . . . . . . . . . . 332 Credit of education cess, Swachh Bharat cess and Krishi Kalyan cess. . . . . . 332 Summary reference chart - Transitional provisions . . . . . . . . . . . . . . . . . . . . . . . . . . 333 Chapter 20 E-Way Bill. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 335 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 335 What is e-way bill. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 335 Requirement of e-way bill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 335 Obligation for issuance of e-way bill. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 336 Prescribed amount for generation of e-way bill. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 336 Transhipment and e-way bill. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 336 Multiple consignments in same transport vehicle. . . . . . . . . . . . . . . . . . . . . . . . . . . . 337 Return of outward supplies and e-way bill. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337 Cancellation of e-way bill. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337 Validity of e-way bill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337 Short distance in a city and e-way bill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 338 Situations when e-way bill is not required to be generated. . . . . . . . . . . . . . . . . . . . 338 xxix
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E-way bill through SMS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 338 Documents and Devices for transportation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 338 Tax invoice and invoice reference number. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 339 Verification of documents and conveyance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 339 Inspection and verification reports. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 339 Summary of e-way bill. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340 Chapter 21 Overview of IGST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 341 Need of IGST and Important Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 341 Integrated goods and service tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 341 Export and import of goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 342 Export and import of service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 342 Establishment of a distinct person. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 342 Fixed establishment and place of business . . . . . . . . . . . . . . . . . . . . . . . . . . . 342 Output tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 343 Territory of India. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 343 Intermediary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 343 Supplies in the Course of Intra-state Trade and Commerce. . . . . . . . . . . . . . . . . . . . 343 Supplies in the Course of Inter-stateTrade and Commerce . . . . . . . . . . . . . . . . . . . . 344 Levy of IGST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 345 High Seas Sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 345 IGST on petroleum products. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 346 IGST on goods imported into India. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 346 Threshold limit in IGST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 346 IGST and reverse charge. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 346 Supply by an unregistered person. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 347 Electronic commerce operator. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 347 Exemption from Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 348 Clarification in notification. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 348 Online Information and Database Access or Retrieval Services Located outside India. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 348 Meaning of online information and database access or retrieval services . . . 348 Person liable for tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 349 Liability of an intermediary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 349 Single registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350 Supplier not physically present in taxable territory. . . . . . . . . . . . . . . . . . . . . 350 Payment of CGST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350 Payment of UTGST/SGST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350 Apportionment of Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 351 Why is apportionment of IGST required. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 351 xxx
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Circumstances requiring apportionment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 351 Manner of apportionment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 352 Supply to unregistered person or persons covered by composition scheme . . . 352 Supply to taxable persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353 Apportionment to States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353 Non-determinable place of supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353 Taxable person non-determinable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353 Interest, fine and penalty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353 Payment of apportioned amount. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 354 Amount of SGST apportioned found to be refundable. . . . . . . . . . . . . . . . . . 354 Zero rated Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 354 Input tax credit on zero rated sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 354 Refund on export of goods and/or services. . . . . . . . . . . . . . . . . . . . . . . . . . . 354 Refund to SEZ developer or SEZ Unit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 354 Application of Provisions of CGST Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 355 TDS and TCS rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 355 Power of Central Government to make rules . . . . . . . . . . . . . . . . . . . . . . . . . 356 Tax wrongfully collected and deposited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 356 Refund to outbound tourist . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 357 Summary reference chart – IGST Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 357 Chapter 22 Overview of SGST Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 361 State Taxes being Subsumed in GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 361 SGST and its Features. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 362 Tax Administration/Dual Control. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 362 SGST Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 363 Chapter 23 Overview of UTGST Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 367 Applicability of UTGST Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 367 Levy of UTGST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 367 Exemption from GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 369 Input Tax Credit and its Adjustment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 369 Wrongful Collection and Payment of Tax and its Consequences. . . . . . . . . . . . . . . . 369 Migration of Existing Taxable Persons to UTGST. . . . . . . . . . . . . . . . . . . . . . . . . . . 370 Transition Provisions in respect of Input Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . 370 Input tax credit as per returns filed under existing law. . . . . . . . . . . . . . . . . . 370 Input tax credit on capital goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 371 Input tax credit on input stocks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 371 Taxable as well as exempted goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 372 Goods in transit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 372 Switch over from composition levy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 373 xxxi
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Transition of Goods Sent for Job Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 373 Miscellaneous Transition Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 373 Return of taxable goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 373 Revision of price of goods supplied before appointed day. . . . . . . . . . . . . . . 374 Refund claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 374 Proceedings of input tax credit under the existing law. . . . . . . . . . . . . . . . . . 374 Proceedings of output tax under the existing law. . . . . . . . . . . . . . . . . . . . . . 374 Proceedings of assessment or adjudication under the existing law. . . . . . . . . 375 Revision of return after the appointed day . . . . . . . . . . . . . . . . . . . . . . . . . . . 375 Tax paid goods supplied after the appointed day. . . . . . . . . . . . . . . . . . . . . . . 375 Goods sent on approval basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 375 Tax deducted at Source (TDS). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 376 PART B
GST – IMPACT ANALYSIS ON INDUSTRIAL AND MANUFACTURING SECTOR Chapter 1 GST Compliance Ratings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 379 Statutory Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 379 Salient features of Compliance Rating. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 380 Analysis of Provision. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 380 Compliance Scores. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 382 Impact of GST Ratings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 382 Chapter 2 Anti-Profiteering Provisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 385 Statutory Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 385 Anti-Profiteering Measure (Section 171) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 385 Objective of Anti-Profiteering Measure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 386 Concept behind Anti-Profiteering Measure. . . . . . . . . . . . . . . . . . . . . . . . . . . 386 Analysis of Anti-Profiteering provision. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 386 Highlights of Anti-Profiteering provision (Section 171). . . . . . . . . . . . . . . . . 386 Anti-Profiteering Authority (APA). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 387 Functions of Anti-Profiteering Authority. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 387 Structure of Authority for Checking Anti-Profiteering Activities. . . . . . . . . . 387 Salient features of Anti-Profiteering Authority (APA) . . . . . . . . . . . . . . . . . . 387 Duties of APA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 388 Duties of Various Authorities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 388 Anti-Profiteering Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 389 Anti-profiteering Measures Abroad . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 391 Implementation of Provisions and Procedure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 391 xxxii
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Orders issued by APA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 392 Power to cancel Registration of Assessee. . . . . . . . . . . . . . . . . . . . . . . . . . . . 393 Time period of provision. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 393 Caution Note. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 394 Why Companies are fretting against Anti-profiteering law. . . . . . . . . . . . . . . 394 Chapter 3 Railway Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 395 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 395 Major Issues concerning Railways in GST Regime at a Glance . . . . . . . . . . . . . . . . 396 Territory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 396
Taxation of Railways under GST Regime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 397 Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 397 Business Verticals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 397 Taxable Person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 398 Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 398 Meaning and Scope of Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 399 Types of Supply (Section 8 of the CGST Act, 2017) . . . . . . . . . . . . . . . . . . . 400 Classification of Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400 Time of Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 401 Valuation of Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 401 Stock Transfers under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 402 Input Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 403 Input Service Distributor Concept (ISD). . . . . . . . . . . . . . . . . . . . . . . . . . . . . 403 Reconciliation of inward and outward supplies (Matching of Invoices) (Section 42 of the CGST Act, 2017). . . . . . . . . . . . . . . . . . . . . . . . 404 Restriction as refund of unutilised/accumulated credit. . . . . . . . . . . . . . . . . . 404 Transitional credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 405 Treatment of credit on unsold stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 406 Tax Invoice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 407 GST Returns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 408 Rate of Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 410 Payment of Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 412 Tax Deduction at Source (TDS). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 413 Tax Collection at Source (TCS). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 413 Job-works under GST (Section 143 of the CGST Act, 2017). . . . . . . . . . . . . . . . . . . 414 Transactions between Head Office and Branch Offices located outside/ inside India. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 414 Inter-state or Intra-state Supplies? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 415 Place of Supply of Goods and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 415 xxxiii
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Import of Goods – GST or Custom Duty?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 417 Managing Procurement Vendors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 417 Impact on Ongoing Contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 417 Captive Consumption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 418 Works Contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 418 Exemptions under Service Tax and GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 418 GST on Activities of YTSK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 420 Cleaning/Sanitation Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 420 Taxability of Long-term Lease Arrangements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 420 Taxability of General Sales Agent (GSA). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 421 Specific Services Provided by Railways – Taxability under GST . . . . . . . . . . . . . . . 421 Other Implications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 422 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 423 Abbreviations Used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 424 Chapter 4 Insurance (Life and General) Services. . . . . . . . . . . . . . . . . . . . . . 425 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 425
Taxation of Insurance Services under Service Tax. . . . . . . . . . . . . . . . . . . . . . 426 Relevant Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 426 Scope of Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 427 Negative List of Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 427 Specific Exemptions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 427 Charge and Payment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 429 Payment of Tax under Reverse Charge Mechanism. . . . . . . . . . . . . . . . . . . . . . . . . . 429 Taxation of Insurance Services under GST Regime. . . . . . . . . . . . . . . . . . . . . . . . . . 430 Taxable Territory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 430 Rate of GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 431 Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 431 Distinct Persons. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 432 Meaning and Scope of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 432 Classifications of Insurance Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 433 Time of Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 433 Place of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 434 Valuation of Supply of Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 436 Exemptions under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 437 Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 439 Invoicing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 441 Payment under Reverse Charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 442 Dealings with Unregistered Supplier . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 443 xxxiv
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Input Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 443 Matching Concept. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 444 Input Service Distributor (ISD) Concept. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 444 Transitional Credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 445 Refunds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 445 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 445 Abbreviations Used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 446 Chapter 5 Exports and Special Economic Zones (SEZ). . . . . . . . . . . . . . . . . 447 Exports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 447 Special Economic Zones (SEZ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 448
Taxation under GST law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 449 Territory (Section 1 of the GST Act, 2017) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 449 Supply and Zero Rated Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 450 Supplies to Nepal & Bhutan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 451 Deemed Export. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 452 Supplies by EOU. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 452 Supply of Goods and/or Services between Distinct Persons . . . . . . . . . . . . . . . . . . . 452 Dealing with unregistered suppliers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 453 Time of Supply of Goods and/or Services (Section 12 and 13 of the CGST Act, 2017). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 454 Continuation of earlier Exemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 454 Exemptions under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 456 Clarification by CBEC on continuity of exemptions to 100 percent EOUs and SEZs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 457 SEZs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 457 EOUs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 457 Registration (Section 22 and 24 of the CGST Act, 2017). . . . . . . . . . . . . . . . . . . . . . 458 Inter-State or Intra-State Trade. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 459 GST Returns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 460 Input Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 462 Refund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 463 Refund of Compensation Cess to Exporters. . . . . . . . . . . . . . . . . . . . . . . . . . 464 Export Procedures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 465 Transactions between Head Office and Branch Offices located Outside/ Inside India. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 467 Import by Exporters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 468 Domestic Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 468 Place of Supply of Goods and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 468 xxxv
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Valuation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 470 Treatment of Credit on Unsold Stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 471 Central duties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 471 State duties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 471 Arrangement with Dealers/Consignment Agents. . . . . . . . . . . . . . . . . . . . . . . . . . . . 472 Duty Drawback. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 473 CBEC clarification on Exports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 475 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 477 Abbreviation Used . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 477 Chapter 6 Import of Goods and Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 479 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 479 Territory/Jurisdiction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 479 Meaning of India. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 480 Taxable Person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 481 Importer Exporter Code (IEC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 481 Import of Goods & Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 481 Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 482 Inter-state or Intra-state Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 482 Time of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 482 Duties at the time of import . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 483 IGST Rate/Duty Calculation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 484 Valuation and Determination of Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 484 Exemptions under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 487 Duties Subsumed under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 488 Place of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 489 IGST on High Sea Sales of Imported Goods. . . . . . . . . . . . . . . . . . . . . . . . . . 489 Liability to Pay GST under Reverse Charge. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 490 Dealing with unregistered suppliers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 491 Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 491 Input Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 494 Refund of Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 495 Refunds of SAD paid on Imports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 495 Availability of Exemption of Transportation for Importation of Goods. . . . . . . . . . . 496 Bill of Entry and Format. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 496 Project Import. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 496 Baggage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 496 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 497 Abbreviations Used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 497 xxxvi
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Chapter 7 Gems and Jewellery Industry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 499 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 499 Territory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 499 Taxable Person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500 Threshold Limits for Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500 Taxable Event to be Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 501 Dealing with Unregistered Suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 501 Time of Supply of Goods and/or Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 502 Valuation of Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 502 Stock Transfers to be subject to GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 503 Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 504 GST Returns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 504 Rate of GST for Goods and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 506 Possible Increase in Gems and Jewellery Cost and Price?. . . . . . . . . . . . . . . . . . . . . 510 Payment of Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 511 Reverse Charge on Gold Ornaments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 511 Input Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 511 Reconciliation of Inward and Outward Supplies (Section 42 of the CGST Act, 2017). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 512 Input Service Distributor Concept (ISD). . . . . . . . . . . . . . . . . . . . . . . . . . . . . 512 Transitional Credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 513 Treatment of credit on unsold stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 513 Central duties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 513 State duties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 514 Credit Transfer Document. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 515 Place of Supply of Goods and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 516 Job Works (Section 143 of the CGST Act, 2017). . . . . . . . . . . . . . . . . . . . . . . . . . . . 517 Transactions between Head Office and Branch Offices located Outside/ Inside India. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 518 Domestic/SEZ Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 518 Units located in SEZ. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 519 Exports of Gems & Jewellery. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 520 Inter-state or Intra-state supplies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 521 Import of Goods – GST or Custom Duty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 521 Imports by Banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 522 Impact on Ongoing Contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 523 Arrangement with Dealers/Consignment Agents. . . . . . . . . . . . . . . . . . . . . . . . . . . . 523 Regulation under Money Laundering. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 523 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 524 xxxvii
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Abbreviations Used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 524 Chapter 8 Alcoholic Beverages Industry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 525 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 525 Goods and Services Tax (GST) as a tax reform. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 525
Alco-beverages under Service Tax Regime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 526 Alco-beverages under GST Regime . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 528 Likely Impact in GST Regime . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 528 Positive GST Impact. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 528 Adverse GST Impact. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 529 Dealing with Unregistered Suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 530 Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 530 GST Impact on Incomes/Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 533 Major Challenges in GST to Alco-beverages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 534 GST Rates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 537 Taxability and Valuation of used bottles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 539 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 540 Abbreviations Used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 540 Chapter 9
Real Estate & Construction (including Government Contracts). . . 541
Real Estate & Construction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 541 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 541 Exemptions available in Service Tax regime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 542 Taxable Territory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 544 Taxable Person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 545 Composition Scheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 545 Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 546 Supply of Goods & Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 547 Types of Supply under GST (Section 8 of the CGST Act, 2017). . . . . . . . . . 547 Import of Goods – GST or Custom Duty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 549 Coverage of Specific Activities in Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 549 Exemptions under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 550 Dealing with unregistered suppliers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 552 Time of Supply under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 552 Tax Invoice for Time of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 552 Taxability of Transfer Development Rights (TDR)/Joint Development Agreements (JDA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 554 Levy of GST on Property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 554 xxxviii
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Rate of GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 554 Abatements under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 558 Treatment of Completed Property, under-construction Property, Leasing of Property and the Land Component. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 558 Impact on Stakeholders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 559 Cost GST impact on costs and prices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 560 Valuation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 561 GST on Cancelled Contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 563 Payment of Tax (Section 49 of the CGST Act, 2017). . . . . . . . . . . . . . . . . . . . . . . . . 563 Tax Deduction at Source (TDS). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 564 Input Tax Credit (ITC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 565 Credit of VAT paid on inputs available to Service Provider. . . . . . . . . . . . . . . . . . . . 566 Credit Eligibility to Sub-contractors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 566 Input Service Distributor Concept (ISD) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 566 Compliance requirement (Returns with Matching Concept). . . . . . . . . . . . . . 567 Transitional Credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 569 Treatment of credit on unsold stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 570 Central duties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 570 State duties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 571 Credit Transfer Document. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 572 Inter-state or Intra-state Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 572 GST on Stock Transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 573 Place of Supply of Goods and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 573 Supplies to SEZ/EOU/STP/EHTP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 574 Contract Restructuring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 574 Impact on Ongoing Contracts [Section 142 (10) and (11) of the CGST Act, 2017]. . . 575 Anti-Profiteering Measures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 576 Managing Procurement Vendors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 576 Use of IT Infrastructure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 577
Government Contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 577 Meaning of Government etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 578 Taxation under Service Tax Regime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 580 Composition Scheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 581 Rate of GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 581 Tax Deduction at Source (TDS). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 583 Clarification of TDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 584 ITC by Contractor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 588 What Contractors Should Do . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 588 xxxix
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Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 589 Abbreviations Used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 590 Chapter 10 Media, Entertainment and Paper Industry. . . . . . . . . . . . . . . . . . 591 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 591
Taxation under Service Tax Regime . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 591 Broadcasting Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 591 Multiplexes and Film Production. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 592 Taxation under GST Regime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 593 Territorial Jurisdiction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 594 Taxable Person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 595 Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 595 Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 596 Time of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 596 Place of Supply (Sections 12 and 13 of the IGST Act, 2017). . . . . . . . . . . . . . . . . . . 596 Valuation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 597 GST Returns (Sections 37 to 45 of the CGST Act, 2017) . . . . . . . . . . . . . . . . . . . . . 598 Input Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600 Matching of Invoices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 601 Input Service Distributor concept (ISD). . . . . . . . . . . . . . . . . . . . . . . . . . . . . 601 Transitional Credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 601 Treatment of Credit on Unsold Stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 602 Central duties (As per section 140(3) of the CGST Act, 2017). . . . . . . . . . . . 602 State duties (As per section 140(3) of the SGST Act, 2017). . . . . . . . . . . . . . 603 Dealing with Unregistered Suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 603 Entertainment Tax levied by Local Bodies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 604 GST Rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 604 GST on Print Media . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 606 GST Preparedness. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 608 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 608 Abbreviations Used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 609 Chapter 11 Logistics Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 611 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 611
Taxation under Service Tax Regime . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 613 Taxation under GST Regime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 614 Territory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 614 Taxable Territory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 614 xl
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Non-taxable Territory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 614 Taxable Person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 615 Threshold Exemption for Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 615 Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 615 Meaning and Scope of Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 616 Dealing with Unregistered Suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 616 Time of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 617 Place of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 617 Returns (Sections 37 to 45 of the CGST Act, 2017). . . . . . . . . . . . . . . . . . . . . . . . . . 618 Input Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 620 Input Tax Credit of Fuel/HSD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 621 Reconciliation of Inward and Outward Supplies (Matching Concept). . . . . . 621 Transitional Credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 621 Exemptions in GST Regime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 622 No Abatements in GST regime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 623 Requirement to Carry Invoice and other Documents (E-Way Bills) . . . . . . . . . . . . . 624 E-way Bills Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 624 Supply Chain Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 627 Warehouse Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 627 Taxability of Cargo Agent Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 629 Dedicated Freight Corridors by Railways. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 630 Increased Efficiency of Service Providers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 630 Procurement Practices (Third-Party Logistics Support). . . . . . . . . . . . . . . . . . . . . . . 631 Favourable Impact of GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 632 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 633 Abbreviations Used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 634 Chapter 12 Transportation of Goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 635 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 635 Exemptions in Service Tax Regime . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 636 Territory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 637 Taxable Territory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 637 Non-taxable Territory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 638 Threshold Exemption for Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 638 Taxable Person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 638 Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 638 Meaning of Supply (Section 7 of the CGST Act, 2017). . . . . . . . . . . . . . . . . . . . . . . 639 Dealing with Unregistered Suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 639 Time of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 640 xli
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Place of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 640 Supply of Services to SEZ/Export . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 641 Rate of GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 641 Exemptions under GST Regime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 643 No Abatements in GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 644 GST Returns (Sections 37 to 45 of the CGST Act, 2017) . . . . . . . . . . . . . . . . . . . . . 645 Input Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 646 Reconciliation of Inward and Outward Supplies. . . . . . . . . . . . . . . . . . . . . . . 647 Credit of Aviation Turbine Fuel/High-Speed Diesel/Electricity. . . . . . . . . . . 647 Reverse Charge. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 648 Dealings with Unregistered Supplier . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 648 Normal Charge on GTA service when opted with full ITC . . . . . . . . . . . . . . . . . . . . 649 Inspection of Goods in Movement (E-way Bills). . . . . . . . . . . . . . . . . . . . . . . . . . . . 649 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 650 Abbreviations Used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 652 Chapter 13 Textiles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 653 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 653 Taxable Territory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 654 Taxable Person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 654 Threshold Exemption Limit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 655 Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 656 Composition Levy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 657 Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 658 Types of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 658 Inter-State/Intra-State Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 659 GST on Stock Transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 659 Time of Supply of Goods and/or Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 660 Place of Supply of Goods and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 660 Valuation of Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 661 Valuation of Samples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 662 Rate of Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 662 GST on Khadi Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 665 Payment of Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 665 Reverse Charge Mechanism (RCM). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 665 Input Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 665 Issues involved in claiming Input Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . 666 Credit on Capital Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 667 Input Service Distributor (ISD) Concept. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 668 xlii
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Reconciliation of Inward and Outward Supplies (Matching Concept). . . . . . 668 Transitional Credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 668 Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 669 Procurement Planning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 671 Announcement of transitional rates for Remission of State Levies of Garments & Made-ups. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 672 Anti-Profiteering Measure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 672 Impact on Textile Sector. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 672 Positive Impacts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 672 Negative Impacts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 673 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 673 Abbreviations Used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 673 Chapter 14 Automobile & Ancillary Industries . . . . . . . . . . . . . . . . . . . . . . . . 675 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 675 Pre-GST Indirect Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 675
Taxation under GST Regime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 676 Taxable Territory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 676 Taxable Person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 676 Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 677 Supply of Goods and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 678 Types of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 678 Import of Goods - GST or Custom Duty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 679 Inter-State/Intra-State Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 680 IGST Exemption. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 680 Time of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 680 Place of Supply of Goods and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 681 Valuation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 682 GST on Stock Transfers (Supply without Sale) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 686 Input Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 686 Restrictions on Input Credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 687 Reconciliation of Inward and Outward Supplies (Matching Concept). . . . . . 688 Input Service Distributor (ISD) Concept. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 688 Credits on Vendor Tooling. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 688 Transitional Credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 689 Credit Transfer Document (CTD). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 689 Invoicing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 690 GST Returns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 690 Rate of Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 693 xliii
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Compensation Cess on Automobiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 694 Tax on Second-hand or used Vehicles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 695 Payment of Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 697 Job work under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 698 Works Contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 699 Transactions between Head Office and Branch Office located Outside/ Inside India. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 699 Road Logistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 699 Anti-Profiteering Measure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 700 How to address specific issues in GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 700 Booking Advance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 700 Annual Maintenance Contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 701 Demo Cars. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 701 Extended warranty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 702 Free insurance or accessories given to the customer. . . . . . . . . . . . . . . . . . . . 702 Handling charges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 702 Reimbursement of Insurance Charges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 702 Road Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 703 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 703 Abbreviations Used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 704 Chapter 15 E-commerce Business (including ITES and OIDAR). . . . . . . . . . 705 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 705 Models of E-Commerce. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 706 Transactions carried out by an E-commerce Operator. . . . . . . . . . . . . . . . . . . . . . . . 706
Pre-GST Indirect Tax Scenario. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 706 E-commerce in GST Regime . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 707 Meaning of E-Commerce. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 708 Meaning E-Commerce Operator. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 708 Territorial Jurisdiction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 709 Taxable Person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 709 Levy and Collection of Central/State Goods and Services Tax . . . . . . . . . . . . . . . . . 710 Mandatory Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 711 Threshold Exemption. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 712 Tax Collection at Source (TCS). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 712 TCS Implementation Deferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 714 Actual Suppliers can Claim Credit of the TCS. . . . . . . . . . . . . . . . . . . . . . . . 715 E-Commerce Operator required to Furnish Information to the Government. . . . . . . 715
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Matching Concept in E-Commerce Transactions (Section 42 of the CGST Act, 2017). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 715 Meaning & Scope of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 716 Stock Transfers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 716 Branch Transfers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 716 Inter-State or Intra-State Supply (Sections 7 and 8 of the IGST Act, 2017). . . . . . . . 717 Time of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 717 Place of Supply of Goods and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 717 Valuation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 718 Input Tax Credit (Section 16 of the CGST Act, 2017). . . . . . . . . . . . . . . . . . . . . . . . 719 GST Returns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 720 Additional Returns to be Filed by E-commerce Operator. . . . . . . . . . . . . . . . 722 Reconciliation of Inward and Outward Supplies (Matching of Invoices) (Section 42 of the CGST Act, 2017). . . . . . . . . . . . . . . . . . . . . . . . 723 Input Service Distributor Concept (ISD) Concept . . . . . . . . . . . . . . . . . . . . . 723 Transitional Credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 723 Treatment of credit on unsold stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 724 Central duties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 724 State duties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 724 Invoice (Section 31 of the CGST Act, 2017) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 725 GST Rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 726 Payment of Tax (Section 49 of the CGST Act, 2017). . . . . . . . . . . . . . . . . . . . . . . . . 726 Payment under Reverse Charge on dealings with Unregistered Suppliers. . . . . . . . . 727 Sales Return/Replacements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 728 Books of Account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 728 Impact in GST Regime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 728 What E-Commerce Companies Should Do . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 729 ITES Sector (Information Technology Enabled Services) . . . . . . . . . . . . . . . 730 Export of Software Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 730 Place of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 730 Registration of SEZ units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 731 IPR Related to Software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 731 Supply from Different States. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 731 OIDAR Services (Online Information Data-base Access and Retrieval). . . . . . . . . . 732 Meaning of OIDAR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 732 Illustrative List of OIDAR Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 733 Examples of what could be or could not be OIDAR services. . . . . . . . . . . . . 734 Taxability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 735 Place of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 735 xlv
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Who is a Non-taxable Online Recipient?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 736 Liability for Payment of Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 736 Return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 737 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 737 Abbreviations Used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 738 Chapter 16 Consumer Goods (Including FMCG). . . . . . . . . . . . . . . . . . . . . . . 739 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 739
Taxation under Pre-GST Regime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 740 Taxation under GST Regime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 740 Territory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 740 Taxable Person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 741 Threshold Exemption Limit for Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 741 Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 742 Business Verticals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 742 Composition Levy (Section 10 of the CGST Act, 2017) . . . . . . . . . . . . . . . . . . . . . . 743 Registration under Composition Scheme. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 744 Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 745 Types of Supply (Section 8 of the CGST Act, 2017) . . . . . . . . . . . . . . . . . . . 745 Dealing with Unregistered Suppliers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 746 Time of Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 746 Stock Transfers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 747 Place of Supply of Goods and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 747 Free Supplies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 748 Valuation of Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750 MRP/RSP Declaration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 751 Rate of Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 752 Compensation Cess. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 756 Area based Exemptions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 757 Anti-profiteering Measure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 757 Input Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 758 Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 759 Reconciliation of Inward and Outward Supplies (Matching of Invoices) (Section 42 of the CGST Act, 2017). . . . . . . . . . . . . . . . . . . . . . . . 761 Input Service Distributor (ISD). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 762 Transitional Credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 762 Treatment of Credit on Unsold Stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 763 Central duties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 763 State duties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 763 xlvi
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Import of Goods – GST or Custom Duty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 764 Blockage of Working Capital. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 765 Warehouse Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 765 Supply Chain Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 766 Job works under GST (Section 143 of the CGST Act, 2017). . . . . . . . . . . . . . . . . . . 767 Accounting and Invoicing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 767 Use of IT Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 769 Drugs & Pharmaceutical Industry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 769 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 770 Abbreviations Used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 770 Chapter 17 Manufacturing Job Work and Job Workers. . . . . . . . . . . . . . . . . 771 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 771 Meaning of Job work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 771
Taxation under Pre-GST Regime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 773 Treatment of Job-work in Pre-GST Tax Regime . . . . . . . . . . . . . . . . . . . . . . . . . . . . 773 Taxation under GST Regime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 774 Provisions in relation to job work. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 774 Territory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 775 Taxable Person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 775 Threshold Limit for Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 776 Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 776 Registration under Composition Scheme. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 777 Composition Levy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 777 Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 778 Dealing with Unregistered Suppliers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 779 Stock Transfers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 780 Inter-State or Intra-State Supplies (Section 7 and 8 of the IGST Act, 2017). . . . . . . 780 Time of Supply of Goods and/or Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 780 Rate of Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 781 Job work Procedures (Section 143 of the CGST Act, 2017) . . . . . . . . . . . . . . . . . . . 784 Transportation of Goods for Job work without issue of Invoice . . . . . . . . . . . . . . . . 786 Valuation of Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 786 Valuation Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 787 Payment of Tax (Section 49 of the CGST Act, 2017). . . . . . . . . . . . . . . . . . . . . . . . . 788 Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 789 Input Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 791 xlvii
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Conditions and Restrictions in respect of Inputs and Capital Goods sent to the Job worker. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 792 Reconciliation of Inward and Outward Supplies (Matching Concept) (Section 42 of the CGST Act, 2017). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 793 Input Service Distributor (ISD) Concept. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 794 Transitional Credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 794 Treatment of Credit on Unsold Stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 795 Central duties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 795 State duties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 796 Exemptions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 797 Specific Issues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 797 Treatment of Scrap /Waste. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 797 Intermediate Goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 797 Records for Job-works. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 797 Applicability of Provisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 798 Steps to be taken by Job worker. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 798 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 798 Abbreviations Used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 799 PART C
LEGISLATION I.
The Constitution (101st Amendment) Act, 2016. . . . . . . . . . . . . . . . . . . . . 803
II.
Taxation Laws (Amendment) Act, 2017. . . . . . . . . . . . . . . . . . . . . . . . . . . . 811
III.
Central GST Act and Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 837 III-1. Central Goods and Services Tax Act, 2017. . . . . . . . . . . . . . . . . . . . . 837 III-2. Central Goods and Services Tax Rules, 2017 . . . . . . . . . . . . . . . . . . 1001 III-3. Central Goods and Services Tax (Extension to Jammu and Kashmir) Act, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1131
IV.
IGST Act and Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1133 IV-1. Integrated Goods and Services Tax Act, 2017. . . . . . . . . . . . . . . . . . 1133 IV-2. Integrated Goods and Services Tax Rules, 2017. . . . . . . . . . . . . . . . 1161 IV-3. Integrated Goods and Services Tax (Extension to Jammu and Kashmir) Act, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1163
V.
GST (Compensation to States) Act and Rules. . . . . . . . . . . . . . . . . . . . . . 1165 V-1. Goods and Services Tax (Compensation to States) Act, 2017. . . . . . 1165 V-2. Goods and Services Tax Compensation Cess Rules, 2017 . . . . . . . . 1179
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VI.
Press Releases, Circulars and Order. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1181 VI-1. Press Releases. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1181 18 June 2017 Relaxation in return filing procedure for first two months of GST implementation . . . . . . . . . . . . . . . . . . . . 1181 30 June 2017 GST roll-out – Complete transformation of the Indirect Taxation Landscape. . . . . . . . . . . . . . . . . . . . . . . 1182 2 July 2017 GSTN unveils excel template for easy data entry offline before uploading on the GST portal . . . . . . . . . . . 1186 4 July 2017 Department of Consumer Affairs allows change in MRP on unsold stock prior to implementation of GST till 30 September 2017 . . . . . . . . . . . . . . . . . . . . . . . 1186 5 July 2017 Meaning of registered brand name in the context of GST rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1187 8 July 2017 Clarification regarding the circular WM-10(31)/ 2017 dated 4 July 2017. . . . . . . . . . . . . . . . . . . . . . . . . . . 1188 10 July 2017 GST rate for Sanitary Napkins . . . . . . . . . . . . . . . . . . . . . 1188 10 July 2017 GST on Gifts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1189 11 July 2017 GST on free food supplied by Religious Places. . . . . . . . 1190 13 July 2017 Lodging in Hostels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1191 13 July 2017 Clarification on tax in reverse charge on Gold Ornaments. . .1191 13 July 2017 Services provided by Resident Welfare Association/Housing Society . . . . . . . . . . . . . . . . . . . . . . 1192 15 July 2017 Legal Services by Advocates including Senior Advocates. . . 1193 15 July 2017 Old and used Bottles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1193 17 July 2017 Increase in the Compensation Cess rate on Cigarettes. . . 1194 18 July 2017 Clarification on GST rates on Hotel Accommodation . . . 1192 22 July 2017 Concerns of taxpayers arising from transition to the GST regime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1196 25 July 2017 National Anti-profiteering Authority under GST . . . . . . . 1196 7 August 2017 Compensation Cess on Motor Vehicles. . . . . . . . . . . . . . . 1197 17 August 2017 Availability of Transitional Credit on GST . . . . . . . . . . . 1197 17 August 2017 Filing of return in Form GSTR-3B for July 2017. . . . . . . 1198 19 August 2017 Extension of date for filing of return for July 2017. . . . . . 1199 23 August 2017 Selling of space for advertisement in print media . . . . . . 1200 25 August 2017 Guidance for taxpayers in relation to GST. . . . . . . . . . . . 1201 29 August 2017 GST Revenue Figures – July 2017. . . . . . . . . . . . . . . . . . 1201 30 August 2017 GST (Compensation to States) Act, 2017. . . . . . . . . . . . . 1202 2 September 2017 Late fee for taxpayers . . . . . . . . . . . . . . . . . . . . . . . . . 1202
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VI-2. Circulars. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1205 CGST Circulars 1/2017 Proper officer for provisions relating to Registration and Composition levy under the CGST Act, 2017 or the rules made thereunder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1205 2/2017 Issues related to furnishing of Bond/LUT for exports. . . . . . . . . 1206 3/2017 Proper officer relating to provisions other than Registration and Composition under the CGST Act, 2017 . . . . . 1208 4/2017 Issues related to Bond/LUT for exports without payment of integrated tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1210 5/2017 Clarification on issues related to furnishing of Bond/LUT for exports. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1212 6/2017 Clarification on classification and GST rate on lottery tickets. . . 1217 7/2017 System based reconciliation of information furnished in Form GSTR-1 and Form GSTR-2 with Form GSTR-3B. . . . . . . 1218 IGST Circular 1/1/2017 Clarification on Inter-state movement of various modes of conveyance, carrying goods or passengers or for repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1223 Compensation Cess Circular 1/1/2017 Clarification regarding applicability of section 16 of the IGST Act, 2017, relating to zero rated supply for the purpose of Compensation Cess on exports. . . . . . . . . . . . . . . . . . 1225 VI-3. Order. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1229 01/2017 Extension of date for filing option for composition scheme . . . . 1229 VII. GST Tariff – Goods and Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1231 Goods – Tariff and Exemptions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1231 Services – Tariff and Exemptions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1231 VIII. FAQs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1233 FAQ: Exports. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1233 FAQ: Gems & Jewellery. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1240 FAQ: Handicrafts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1242 FAQ: MSME. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1245 FAQ: Food Processing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1256 FAQ: Textiles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1260 FAQ: E-Commerce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1267 FAQ: IT/ITES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1272 FAQ: Drugs & Pharmaceuticals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1278 FAQ: Mining. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1281
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Table of contents
CD CONTENTS 1. Central Tax Notifications (Non-Tariff and Tariff) 2. Integrated Tax Notifications (Non-Tariff and Tariff) 3. Compensation Cess Notifications (Non-Tariff and Tariff) 4. Central Excise Notifications (Non-Tariff) 5. Customs - IGST Exemption Notifications 6. CGST Forms 7. FAQs
li
CD Contents LIST OF NOTIFICATIONS Notification No.
G.S.R. No.
Date
Description
1/2017
G.S.R. 605(E)
19 June 2017
Notifying particular sections of the CGST Act, 2017
2/2017
G.S.R. 609(E)
19 June 2017
Appointment and jurisdiction of Central Tax Officers
3/2017
G.S.R. 610(E)
19 June 2017
Notifying the CGST Rules, 2017
4/2017
G.S.R. 606(E)
19 June 2017
Notifying www.gst.gov.in as the Common Goods and Services Tax Electronic Portal
5/2017
G.S.R. 607(E)
19 June 2017
Specifying the category of persons exempted from obtaining registration under the Act, which is persons only engaged in making taxable supplies
6/2017
G.S.R. 608(E)
19 June 2017
Notifying the modes of verification for the purpose of rule 26(1) of the CGST Rules, 2017
7/2017
G.S.R. 644(E)
19 June 2017
Amending Notification No. 3/2017 which notified the CGST Rules, 2017
8/2017
G.S.R. 647(E)
27 June 2017
Notifying the turnover limit for Composition Levy for CGST
9/2017
G.S.R. 658(E)
28 June 2017
Notifying particular sections of the CGST Act, 2017
10/2017
G.S.R. 663(E)
28 June 2017
Amending Notification No. 3/2017 which notified the CGST Rules, 2017
11/2017
G.S.R. 659(E)
28 June 2017
Amending Notification No. 6/2017
12/2017
G.S.R. 660(E)
28 June 2017
Notifying the number of HSN digits required on tax invoice
13/2017
G.S.R. 661(E)
28 June 2017
Prescribing the rate of interest under the CGST Act, 2017
14/2017
G.S.R. 818(E)
1 July 2017
Assigning jurisdiction and power to officers of various directorates
15/2017
G.S.R. 819(E)
1 July 2017
Amending Notification No. 3/2017 which notified the CGST Rules, 2017
16/2017
G.S.R. 848(E)
7 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 Corrigendum dated 10 July 2017
Central Tax (Non-tariff) Notifications
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GST: Laws, Concepts, Impact Analysis for Industrial & Manufacturing Sector Notification No.
G.S.R. No.
Date
Description
17/2017
G.S.R. 965(E)
27 July 2017
Amending Notification No. 3/2017 which notified the CGST Rules, 2017
18/2017
G.S.R. 994(E)
8 August 2017
Extending the time period for filing of details of outward supplies in Form GSTR-1 for the months of July and August
19/2017
G.S.R. 995(E)
8 August 2017
Extending the time period for filing of details of inward supplies in Form GSTR-2 for the months of July and August
20/2017
G.S.R. 996(E)
8 August 2017
Extending the time period for filing of details in Form GSTR-3 for the months of July and August
21/2017
G.S.R. 997(E)
8 August 2017
Introducing the date for filing Form GSTR-3B for the months of July and August
22/2017
G.S.R. 1023(E)
17 August 2017
Amending Notification No. 3/2017 which notified the CGST Rules, 2017
23/2017
G.S.R. 1024(E)
17 August 2017
Notifying the date and conditions for filing the return in Form GSTR-3B for the month of July
24/2017
G.S.R. 1039(E)
21 August 2017
Amending Notification No. 23/2017
25/2017
G.S.R. 1070(E)
28 August 2017
Extending the time period for filing of details in Form GSTR-5A for the month of July
26/2017
G.S.R. 1071(E)
28 August 2017
Extending the time period for filing of details in Form GSTR-6 for the months of July and August
27/2017
G.S.R. 1121(E)
30 August 2017
Amending Notification No. 3/2017-Central Tax which notified the CGST Rules, 2017
28/2017
G.S.R. 1126(E)
1 September 2017 Waiving the late fee for late filing of Form GSTR-3B for the month of July
29/2017
G.S.R. 1129(E)
5 September 2017 Extending the due date for furnishing details/ returns for the months of July and August
30/2017
G.S.R. 1144(E) 11 September 2017 Extending the time limit for filing of GSTR-1, GSTR-2 and GSTR-3
31/2017
G.S.R. 1145(E) 11 September 2017 Extending the time limit for filing of GSTR-6
1/2017
G.S.R. 673(E)
28 June 2017
Notifying the CGST rate schedule for goods Corrigendum dated 30 June 2017 Corrigendum dated 12 July 2017 Corrigendum dated 27 July 2017
2/2017
G.S.R. 674(E)
28 June 2017
Notifying CGST exempt goods section 11(1) Corrigendum dated 12 July 2017 Corrigendum dated 27 July 2017
Central Tax (Tariff) Notifications
liv
under
CD Contents Notification No.
G.S.R. No.
Date
Description
3/2017
G.S.R. 675(E)
28 June 2017
Notifying 2.5% concessional CGST rate for supplies to petroleum operations undertaken under exploration license/mining lease
4/2017
G.S.R. 676(E)
28 June 2017
CGST payable on reverse charge on certain specified supplies of goods under section 9(3)
5/2017
G.S.R. 677(E)
28 June 2017
Supplies of goods in respect of which no refund of unutilised input tax credit shall be allowed under section 54(3)
6/2017
G.S.R. 678(E)
28 June 2017
Refund of 50% of CGST on supplies to CSD under section 55
7/2017
G.S.R. 679(E)
28 June 2017
Exemption from CGST to supplies by CSD to Unit Run Canteens and supplies by CSD/ Unit Run Canteens to authorised customers notified under section 11(1)
8/2017
G.S.R. 680(E)
28 June 2017
CGST exemption from reverse charge upto Rs. 5000 per day under section 11(1)
9/2017
G.S.R. 681(E)
28 June 2017
Exempting supplies to a TDS deductor by a supplier, who is not registered, under section 11(1)
10/2017
G.S.R. 682(E)
28 June 2017
CGST exemption for dealers operating under Margin Scheme notified under section 11(1)
11/2017
G.S.R. 690(E)
28 June 2017
Notifying the rates for supply of services under CGST Act Annexure: Scheme of Classification of Services
12/2017
G.S.R. 691(E)
28 June 2017
Notifying the exemptions on supply of services under the CGST Act
13/2017
G.S.R. 692(E)
28 June 2017
Notifying the categories of services on which tax will be payable under reverse charge mechanism under the CGST Act
14/2017
G.S.R. 693(E)
28 June 2017
Notifying the supplies which shall be treated neither as a supply of goods nor as a supply of service under the CGST Act
15/2017
G.S.R. 694(E)
28 June 2017
Notifying the supplies not eligible for refund of unutilized input tax credit under the CGST Act
16/2017
G.S.R. 695(E)
28 June 2017
Notifying specialised agencies entitled to claim a refund of taxes paid on the notified supplies of goods or services or both received by them under the CGST Act
17/2017
G.S.R. 696(E)
28 June 2017
Notifying the categories of services the tax on intra-State supplies of which shall be paid by the electronic commerce operator
lv
GST: Laws, Concepts, Impact Analysis for Industrial & Manufacturing Sector Notification No.
G.S.R. No.
Date
Description
18/2017
G.S.R. 807(E)
30 June 2017
Reduction of the rate of Central Tax, Union Territory Tax, on fertilisers from 6% to 2.5% and Integrated Tax rate on fertilisers from 12% to 5%
19/2017
G.S.R. 1032(E)
18 August 2017
Amending Notification No. 1/2017 to reduce the CGST rate on specific parts of tractors from 14% to 9%
20/2017
G.S.R. 1045(E)
22 August 2017
Amending Notification No. 11/2017 to reduce CGST rate on specified supplies of Works Contract Services, job work for textile & textile products, printing service etc; admission to planetarium; provide option to GTA & transport of passengers by motorcab service providers to avail full ITC & discharge CGST @ 6%
21/2017
G.S.R. 1046(E)
22 August 2017
Amending Notification No. 12/2017 to exempt services provided by Fair Price Shops to Government and those provided by and to FIFA for FIFA U-17. Also to substitute RWCIS & PMFBY for MNAIS & NAIS, and insert explanation for LLP
22/2017
G.S.R. 1047(E)
22 August 2017
Amending Notification No. 13/2017 to amend the RCM provisions for GTA and to insert explanation for LLP
23/2017
G.S.R. 1048(E)
22 August 2017
Amending Notification No. 17/2017 to make ECO responsible for payment of GST on services provided by way of house-keeping such as plumbing, carpentering etc
1/2017
G.S.R. 603(E)
19 June 2017
Notifying particular sections of the IGST Act, 2017
2/2017
G.S.R. 604(E)
19 June 2017
Notifying that persons only engaged in making taxable supplies exempt from obtaining registration under the DGST Act
3/2017
G.S.R. 662(E)
28 June 2017
Notifying particular sections of the IGST Act, 2017
4/2017
G.S.R. 699(E)
28 June 2017
Notifying the IGST Rules, 2017
5/2017
G.S.R. 697(E)
28 June 2017
Notifying the number of HSN digits required on tax invoice Act
6/2017
G.S.R. 698(E)
28 June 2017
Prescribing the rate of interest under the IGST Act, 2017
Integrated Tax (Non-tariff) Notifications
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CD Contents Notification No.
G.S.R. No.
Date
Description
1/2017
G.S.R. 666(E)
28 June 2017
Notifying the rate of integrated tax Corrigendum dated 30 June 2017 Corrigendum dated 12 July 2017 Corrigendum dated 27 July 2017
2/2017
G.S.R. 667(E)
28 June 2017
Exemption from IGST to inter-State supplies of particular goods Corrigendum dated 12 July 2017 Corrigendum dated 27 July 2017
3/2017
G.S.R. 668(E)
28 June 2017
Exemption from IGST to inter-State supplies of particular goods
4/2017
G.S.R. 669(E)
28 June 2017
Supply of goods in respect of which tax payable on reverse charge basis by recipient of inter-State supply of such goods Corrigendum dated 30 June 2017
5/2017
G.S.R. 670(E)
28 June 2017
Supplies of goods in respect of which no refund of unutilised input tax credit shall be allowed
6/2017
G.S.R. 671(E)
28 June 2017
Prescribing refund of 50% of IGST on supplies to CSD
7/2017
G.S.R. 672(E)
28 June 2017
Exemption from IGST to supplies by CSD to Unit Run Canteens and supplies by CSD/Unit Run Canteens to authorised customers
8/2017
G.S.R. 683(E)
28 June 2017
To notify the rates for supply of services under IGST Act Corrigendum dated 30 June 2017 Corrigendum dated 5 July 2017
9/2017
G.S.R. 684(E)
28 June 2017
Exemption from IGST to inter-State supply of particular services
10/2017
G.S.R. 685(E)
28 June 2017
Notifying the categories of services on which integrated tax will be payable under reverse charge mechanism under the IGST Act
11/2017
G.S.R. 686(E)
28 June 2017
Notifying the supplies which shall be treated neither as a supply of goods nor as a supply of service under the IGST Act
12/2017
G.S.R. 687(E)
28 June 2017
Notifying the supplies not eligible for refund of unutilized Input Tax Credit under the IGST Act
13/2017
G.S.R. 688(E)
28 June 2017
Notifying specialised agencies entitled to claim a refund of taxes paid on the notified supplies of goods or services or both received by them under the IGST Act
Integrated Tax (Tariff) Notifications
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GST: Laws, Concepts, Impact Analysis for Industrial & Manufacturing Sector Notification No.
G.S.R. No.
Date
Description
14/2017
G.S.R. 689(E)
28 June 2017
Notifying the categories of services the tax on inter-State supplies of which shall be paid by the electronic commerce operator
15/2017
G.S.R. 740(E)
30 June 2017
Exemption from integrated tax to SEZ rescinded except as respects things done or omitted to be done before such rescission
16/2017
G.S.R. 809(E)
30 June 2017
Reduction of the rate of Central Tax, Union Territory Tax, on fertilisers from 6% to 2.5% and Integrated Tax rate on fertilisers from 12% to 5%
17/2017
G.S.R. 834(E)
5 July 2017
Rescinding Notification No. 15/2017
18/2017
G.S.R. 835(E)
5 July 2017
Exemption from IGST to SEZs on import of services by a unit/developer in a SEZ
19/2017
G.S.R. 1033(E)
18 August 2017
Amending Notification No. 1/2017 to reduce the IGST rate on specific parts of tractors from 28% to 18%
20/2017
G.S.R. 1049(E)
22 August 2017
Amending Notification No. 8/2017 to reduce IGST rate on specified supplies of Works Contract Services, job work for textile & textile products, printing service etc; admission to planetarium; provide option to GTA & transport of passengers by motorcab service providers to avail full ITC & discharge IGST @ 12%
21/2017
G.S.R. 1050(E)
22 August 2017
Amending Notification No. 9/2017 to exempt services provided by Fair Price Shops to Government and those provided by and to FIFA for FIFA U-17. Also to substitute RWCIS & PMFBY for MNAIS & NAIS, and insert explanation for LLP
22/2017
G.S.R. 1051(E)
22 August 2017
Amending Notification No. 10/2017 to amend the RCM provisions for GTA and to insert explanation for LLP
23/2017
G.S.R. 1052(E)
22 August 2017
Amending Notification No. 14/2017 to make ECO responsible for payment of GST on services provided by way of house-keeping such as plumbing, carpentering etc
1/2017
G.S.R. 700(E)
28 June 2017
Appointing 1st day of July, 2017, as the date on which all the provisions of Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017) shall come into force
2/2017
G.S.R. 820(E)
01 July 2017
Notifying the Goods and Services Tax Compensation Cess Rules, 2017
Compensation Cess (Non-tariff) Notifications
lviii
CD Contents Notification No.
G.S.R. No.
Date
Description
1/2017
G.S.R. 720(E)
28 June 2017
Notifying the rates of goods and services tax compensation cess under the Goods and Services Tax (Compensation to States) Act, 2017 Corrigendum dated 30 June 2017
2/2017
G.S.R. 709(E)
28 June 2017
Notifying the rates of compensation cess on supply of specified services Corrigendum dated 1 July 2017
3/2017
G.S.R. 892(E)
18 July 2017
Amending Notification No. 1/2017 so as to increase the Compensation Cess rates on cigarettes as mentioned in the notification with effect from 18-07-2017
4/2017
G.S.R. 938(E)
20 July 2017
Exempting intra-State supplies of second hand goods received by a registered person, who pays the goods and services tax compensation cess on the value of outward supply of such second hand goods, from any supplier, who is not registered, from the whole of the goods and services tax compensation cess leviable thereon
5/2017
G.S.R. 1148(E) 11 September 2017 Amending Notification No. 1/2017 to amend the rates of Compensation Cess on various motor vehicles
Compensation Cess (Tariff) Notifications
Central Excise (Non-Tariff) Notifications 20/2017
G.S.R. 734(E)
30 June 2017
Notifying the CENVAT Credit Rules, 2017
21/2017
G.S.R. 735(E)
30 June 2017
Issuance of Credit Transfer Document to a dealer to evidence payment of excise duty on goods manufactured and cleared under invoice before 1st July, 2017
Customs – IGST Exemption Notifications 31/2017
G.S.R. 766 (E)
30 June 2017
Granting exemption to re-import of unclaimed postal articles
33/2017
G.S.R. 768 (E)
30 June 2017
Granting exemption to re-import of challenge cup and trophies, won by Defence units
36/2017
G.S.R. 771 (E)
30 June 2017
Granting exemption to imports by VicePresident of India on appointment or during his tenure of office
37/2017
G.S.R. 772 (E)
30 June 2017
Granting exemption to imports relating to Defence and internal security forces
38/2017
G.S.R. 773(E)
30 June 2017
Granting exemption to re-import of engines and parts of aircraft
lix
GST: Laws, Concepts, Impact Analysis for Industrial & Manufacturing Sector Notification No.
G.S.R. No.
Date
39/2017
G.S.R. 774(E)
30 June 2017
Amending Notification No. 3/57-Customs dated 8-01-1957 so as to provide exemption to imports by Diplomats, Trade Representatives
41/2017
G.S.R. 776(E)
30 June 2017
Granting exemption to Challenge cups, trophies and medals and prizes etc. won by Indian players
42/2017
G.S.R. 777(E)
30 June 2017
Amending Notification Nos. 102/2007 dated 14-09-2007, 4/99 dated 8-01-1999, and 172/1994 dated 30-09-1994
43/2017
G.S.R. 778(E)
30 June 2017
Amending the specified exemption notifications relating to re-import, bilateral/ multilateral agreements, imports by defence, security, sportsperson etc
44/2017
G.S.R. 779(E)
30 June 2017
Amending the specified exemption notifications relating to re-import of personal private property, articles supplied free under warranty, free gifts, donations by charitable organisations etc
45/2017
G.S.R. 780(E)
30 June 2017
Granting exemption to re-import of goods exported under duty drawback, rebate of duty or under bond on or after 1-07-2017
46/2017
G.S.R. 781(E)
30 June 2017
Granting exemption to re-import of goods exported under duty drawback, rebate of duty or under bond on or before 30-06-2017
50/2017
G.S.R. 785(E)
30 June 2017
Superseding Notification No. 12/2012-Customs dated 17-03-2012 and prescribing effective rates of customs duty and IGST for goods imported into India
G.S.R. 817(E)
1 July 2017
Corrigendum to Notification No. 50/2017
G.S.R. 824(E)
3 July 2017
Corrigendum to Notification No. 50/2017
53/2017
G.S.R. 788(E)
30 June 2017
Levying Special Additional Duty on the specified goods
54/2017
G.S.R. 789(E)
30 June 2017
Exempting Education Cess on IGST and Compensation Cess on import of goods
55/2017
G.S.R. 790(E)
30 June 2017
Exempting Education Cess on IGST and Compensation Cess on import of goods
64/2017
G.S.R. 833(E)
5 July 2017
IGST exemption to SEZs on import of goods by a unit/developer in an SEZ
65/2017
G.S.R. 850(E)
8 July 2017
Amending Notification No. 50/2017 dated 30-06-2017
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Description
CD Contents Notification No.
G.S.R. No.
Date
Description
66/2017
G.S.R. 853(E)
10 July 2017
Increasing the import duty on sugar Raw sugar [Refined or White sugar—Raw sugar if imported by bulk consumer under tariff head 1701, from the present 40% to 50% with immediate effect and without an end date]
70/2017
G.S.R. 984(E)
31 July 2017
Amending Notification No. 50/2017 dated 30-06-2017
71/2017
G.S.R. 1012(E)
11 August 2017
Further amending Notification No. 50/2017 dated 30-06-2017, to: (1) Increase the BCD on crude soya bean oil from 12.5% to 17.5%; (2) Increase the BCD on crude palm oil of edible grade from 7.5% to 15%; and (3) Increase the BCD on refined palm oil of edible grade from 15% to 25%
74/2017
G.S.R. 1135(E)
7 September 2017 Further amending Notification No. 50/2017 dated 30-06-2017, to reduce the BCD on raw sugar [1701] upto a quantity of 3 lakh MT from 50% to 25% subject to the Tariff Rate Quota Allocation Certificate or license, as the case may be, issued by DGFT
LIST OF FORMS Form No.
Description 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)
Form GST CMP–02
Intimation to pay tax under section 10 (composition levy) (For persons registered under the Act)
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)
Form GST CMP–04
Intimation/Application for Withdrawal from Composition Levy
Form GST CMP–05
Notice for denial of option to pay tax under section 10
Form GST CMP–06
Reply to the notice to show cause
Form GST CMP–07
Order for acceptance/rejection of reply to show cause notice
Form GST REG–01
Application for Registration
Form GST REG–02
Acknowledgment
Form GST REG–03
Notice for Seeking Additional Information/Clarification/Documents relating to Application for <<Registration/Amendment/Cancellation >>
Registration Forms
lxi
GST: Laws, Concepts, Impact Analysis for Industrial & Manufacturing Sector Form No.
Description
Form GST REG–04
Clarification/additional information/document Amendment/Cancellation>>
for
<<Registration/
Form GST REG–05
Order of Rejection of Application for <<Registration/Amendment/ Cancellation>>
Form GST REG–06
Registration Certificate
Form GST REG–07
Application for Registration as Tax Deductor at source (under section 51) or Tax Collector at source (under section 52)
Form GST REG–08
Order of Cancellation of Registration as Tax Deductor at source or Tax Collector at source
Form GST REG–09
Application for Registration of Non Resident Taxable Person
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
Form GST REG–11
Application for extension of registration period by casual/non-resident taxable person
Form GST REG–12
Order of Grant of Temporary Registration/Suo Moto Registration
Form GST REG–13
Application/Form for grant of Unique Identity Number (UIN) to UN Bodies/Embassies/others
Form GST REG–14
Application for Amendment in Registration Particulars (For all types of registered persons)
Form GST REG–15
Order of Amendment
Form GST REG–16
Application for Cancellation of Registration
Form GST REG–17
Show Cause Notice for Cancellation of Registration
Form GST REG–18
Reply to the Show Cause Notice issued for Cancellation for Registration
Form GST REG–19
Order for Cancellation of Registration
Form GST REG–20
Order for dropping the proceedings for Cancellation of Registration
Form GST REG–21
Application for Revocation of Cancellation of Registration
Form GST REG–22
Order for revocation of Cancellation of Registration
Form GST REG–23
Show Cause Notice for rejection of application for Revocation of Cancellation of Registration
Form GST REG–24
Reply to the notice for rejection of application for Revocation of Cancellation of Registration
Form GST REG–25
Certificate of Provisional Registration
Form GST REG–26
Application for Enrolment of Existing Taxpayer
Form GST REG–27
Show Cause Notice for Cancellation of Provisional Registration
Form GST REG–28
Order for Cancellation of Provisional Registration
Form GST REG–29
Application for Cancellation of Provisional Registration
Form GST REG–30
Form for Field Visit Report – Center Jurisdiction (Ward/Circle/Zone)
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CD Contents Form No.
Description Input Tax Credit Forms
Form GST ITC–01
Declaration for claim of input tax credit under sub-section (1) of section 18
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
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
Form GST ITC–04
Details of goods/capital goods sent to job worker and received back Accounts and Records Forms
Form GST ENR–01
Application for Enrolment under section 35(2) Return Forms
Form GSTR–01 Form GSTR–01A
Details of outward supplies of goods or services Details of auto drafted supplies (From GSTR 2, GSTR 4 or GSTR 6)
Form GSTR–02
Details of inward supplies of goods or services
Form GSTR–2A
Details of auto drafted supplies (From GSTR 1, GSTR 5, GSTR-6, GSTR-7 and GSTR-8)
Form GSTR–3
Monthly return
Form GSTR–3A
Notice to return defaulter under section 46 for not filing return
Form GSTR–3B
Monthly return in case period for furnishing return is extended
Form GSTR–4 Form GSTR–4A Form GSTR–5 Form GSTR–5A
Form GSTR–6 Form GSTR–6A
Quarterly return for registered person opting for composition levy Auto drafted details for registered person opting for composition levy (Auto drafted from GSTR-1, GSTR-5 and GSTR-7) Return for Non-resident taxable person 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 Return for input service distributor Details of supplies auto drafted form (Auto drafted from GSTR-1)
Form GSTR–7
Return for Tax Deducted at Source
Form GSTR–7A
Tax Deduction at Source Certificate
Form GSTR–8
Statement for tax collection at source
Form GSTR–11
Statement of inward supplies by persons having Unique Identification Number (UIN) GST Practitioner Forms
Form GST PCT–01
Application for Enrolment as Goods and Services Tax Practitioner
Form GST PCT–02
Enrolment Certificate of Goods and Services Tax Practitioner
Form GST PCT–03
Show Cause Notice for disqualification
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GST: Laws, Concepts, Impact Analysis for Industrial & Manufacturing Sector Form No.
Description
Form GST PCT–04
Order of rejection of enrolment as GST Practitioner
Form GST PCT–05
Authorisation/withdrawal of authorisation for Goods and Services Tax Practitioner Payment Forms
Form GST PMT–01
Electronic Liability Register of Registered Person (Part–I: Return related liabilities) (To be maintained at the Common Portal)
Form GST PMT–01
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)
Form GST PMT–03
Order for re-credit of the amount to cash or credit ledger on rejection of refund claim
Form GST PMT–04
Application for intimation of discrepancy in Electronic Credit Ledger/Cash Ledger/Liability Register
Form GST PMT–05
Electronic Cash Ledger (To be maintained at the Common Portal)
Form GST PMT–06
Challan for deposit of goods and services tax
Form GST PMT–07
Application for intimating discrepancy relating to payment Refund Forms
Form GST RFD–01
Application for Refund
Form GST RFD–02
Acknowledgment
Form GST RFD–03
Deficiency Memo
Form GST RFD–04
Provisional Refund Order
Form GST RFD–05
Payment Advice
Form GST RFD–06
Refund Sanction/Rejection Order
Form GST RFD–07
Order for Complete adjustment of sanctioned Refund
Form GST RFD–08
Notice for rejection of application for refund
Form GST RFD–09
Reply to show cause notice
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
Form GST RFD–11
Furnishing of Bond or Letter of Undertaking for export of goods or services Provisional Assessment Forms
Form GST ASMT–01
Application for Provisional Assessment under section 60
Form GST ASMT–02
Notice for Seeking Additional Information/Clarification/Documents for provisional assessment
Form GST ASMT–03
Reply to the notice seeking additional information
Form GST ASMT–04
Order of Provisional Assessment
Form GST ASMT–05
Furnishing of Security
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CD Contents Form No.
Description
Form GST ASMT–06
Notice for seeking additional information/clarification/documents for final assessment
Form GST ASMT–07
Final Assessment Order
Form GST ASMT–08
Application for Withdrawal of Security
Form GST ASMT–09
Order for release of security or rejecting the application
Form GST ASMT–10
Notice for intimating discrepancies in the return after scrutiny
Form GST ASMT–11
Reply to the notice issued under section 61 intimating discrepancies in the return
Form GST ASMT–12
Order of acceptance of reply against the notice issued under section 61
Form GST ASMT–13
Assessment order under section 62
Form GST ASMT–14
Show Cause Notice for assessment under section 63
Form GST ASMT–15
Assessment order under section 63
Form GST ASMT–16
Assessment order under section 64
Form GST ASMT–17
Application for withdrawal of assessment order issued under section 64
Form GST ASMT–18
Acceptance or Rejection of application filed under section 64(2) Audit Forms
Form GST ADT–01
Notice for conducting audit
Form GST ADT–02
Audit Report under section 65(6)
Form GST ADT–03
Communication to the registered person for conduct of special audit under section 66
Form GST ADT–04
Information of Findings upon Special Audit
Form GST ARA–01
Application Form for Advance Ruling
Form GST ARA–02
Appeal to the Appellate Authority for Advance Ruling
Form GST ARA–03
Appeal to the Appellate Authority for Advance Ruling
Advance Ruling Forms
Appeal Forms Form GST APL–01
Appeal to Appellate Authority
Form GST APL–02
Acknowledgment for submission of appeal
Form GST APL–03
Application to the Appellate Authority under sub-section (2) of section 107
Form GST APL–04
Summary of the demand after issue of order by the Appellate Authority, Tribunal or Court
Form GST APL–05
Appeal to the Appellate Tribunal
Form GST APL–06
Cross-objections before the Appellate Tribunal under sub-section (5) of section 112
Form GST APL–07
Application to the Appellate Tribunal under sub-section (3) of section 112
Form GST APL–08
Appeal to the High Court under section 117
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GST: Laws, Concepts, Impact Analysis for Industrial & Manufacturing Sector Form No.
Description Transition Forms
Form GST TRAN–01
Transitional ITC/Stock Statement
Form GST TRAN–02
Statement of details for supplies of goods effected during the tax period E-Way Bills Forms
Form GST EWB-01
E-Way Bill
Form GST EWB-02
Consolidated E-Way Bill
Form GST EWB-03
Verification Report
Form GST EWB-04
Report of Detention
Form GST INV-1
Generation of Invoice Reference Number
Form GST INS–01
Authorisation for Inspection or Search
Form GST INS–02
Order of Seizure
Form GST INS–03
Order of Prohibition
Form GST INS–04
Bond for Release of Goods Seized
Form GST INS–05
Order of Release of Goods/Things of Perishable or Hazardous Nature
Inspection, Search and Seizure Forms
Demand and Recovery Forms Form GST DRC–01
Summary of Show Cause Notice
Form GST DRC–02
Summary of Statement
Form GST DRC–03
Intimation of payment made voluntarily or made against the show cause notice (SCN) or statement
Form GST DRC–04
Acknowledgement of acceptance of payment made voluntarily
Form GST DRC–05
Intimation of conclusion of proceedings
Form GST DRC–06
Reply to the Show Cause Notice
Form GST DRC–07
Summary of the order
Form GST DRC–08
Rectification of Order
Form GST DRC–09
Order for recovery through specified officer under section 79
Form GST DRC–10
Notice for Auction of Goods under section 79(1)(b) of the Act
Form GST DRC–11
Notice to successful bidder
Form GST DRC–12
Sale Certificate
Form GST DRC–13
Notice to a third person under section 79(1)(c)
Form GST DRC–14
Certificate of Payment to a Third Person
Form GST DRC–15
Application before the Civil Court Requesting Execution for a Decree
Form GST DRC–16
Notice for attachment and sale of immovable/movable goods/shares under section 79
Form GST DRC–17
Notice for Auction of Immovable/Movable Property under section 79(1)(d)
Form GST DRC–18
Certificate action under clause (e) of sub-section (1) section 79
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CD Contents Form No.
Description
Form GST DRC–19
Application to the Magistrate for Recovery as Fine
Form GST DRC–20
Application for Deferred Payment/Payment in Instalments
Form GST DRC–21
Order for acceptance/rejection of application for deferred payment/payment in instalments
Form GST DRC–22
Provisional attachment of property under section 83
Form GST DRC–23
Restoration of provisionally attached property/bank account under section 83
Form GST DRC–24
Intimation to Liquidator for recovery of amount
Form GST DRC–25
Continuation of Recovery Proceedings Compounding of Offence Forms
Form GST CPD–01
Application for Compounding of Offence
Form GST CPD–02
Order for rejection/allowance of compounding of offence
FAQs Email FAQs – I Email FAQs – II GST FAQs (updated up to 1 July 2017) Twitter FAQs – I Twitter FAQs – II Twitter FAQs – III Migration FAQs Migration to GST – Advisory
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