Rakesh Garg and Sandeep Garg's GST Guide with Ready Reckoner - 2 Volumes by Bloomsbury India Professional

Contents at a glance About the authors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix Table of contents – Volume 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiii

VOLUME 1 PART A – GST AT-A-GLANCE Chapter A1 Chapter A2 Chapter A3 Chapter A4 Chapter A5 Chapter A6 Chapter A7 Chapter A8 Chapter A9 Chapter A10 Chapter A11 Chapter A12 Chapter A13 Chapter A14 Chapter A15

Rates and Exemption Notifications in GST – At-a-glance . . . . . . . . . . . . . . . . . . A1-3 Non-Tariff Notifications in GST – At a glance . . . . . . . . . . . . . . . . . . . . . . . . . . . A2-1 Orders issued in GST – At-a-glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A3-1 Circular and clarifications in GST –At a glance . . . . . . . . . . . . . . . . . . . . . . . . . . A4-1 GST in India – At-a-glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-1 Compliance chart with limitation periods under GST. . . . . . . . . . . . . . . . . . . . . . A6-1 GST Transition – Time limits and limitation periods . . . . . . . . . . . . . . . . . . . . . . A7-1 Reverse Charge under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A8-1 Returns under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A9-1 Due dates under GST – Extensions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A10-1 Non-creditable goods/services and supplies under GST. . . . . . . . . . . . . . . . . . . A11-1 Interest, penalties and offences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A12-1 State Codes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A13-1 Port Codes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A14-1 GST Forms – At-a-glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A15-1 PART B – COMMENTARY

Chapter B1 Chapter B2 Chapter B3 Chapter B4 Chapter B5 Chapter B6 Chapter B7 Chapter B8 Chapter B9 Chapter B10 Chapter B11 Chapter B12 Chapter B13 Chapter B14

Pre-GST Indian indirect tax structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B1-3 GST – Concept, Features and Advantages and Constitutional Amendment. . . . . B2-1 Taxes or Duties Subsumed in the GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B3-1 GST Council and its Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B4-1 Steps to Determine Liability under GST and Key Definitions . . . . . . . . . . . . . . . B5-1 Supply – Meaning and Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B6-1 Time and Value of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B7-1 Concept of IGST – Inter-state Supply and Intra-state Supply. . . . . . . . . . . . . . . . B8-1 Imports, Zero-rated Supplies and Exports. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B9-1 Levy, Reverse Charge, Rates and Exemptions. . . . . . . . . . . . . . . . . . . . . . . . . . B10-1 Input tax credit and input service distributor. . . . . . . . . . . . . . . . . . . . . . . . . . . . B11-1 Composition levy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B12-1 Job worker, Casual Taxable Person & Non-resident Taxable Person . . . . . . . . . B13-1 E-commerce, TCS & supply of online data– special provisions. . . . . . . . . . . . . B14-1 xi

GST Guide with Ready Reckoner, 4e

Chapter B15 Chapter B16 Chapter B17 Chapter B18 Chapter B19 Chapter B20 Chapter B21 Chapter B22 Chapter B23 Chapter B24 Chapter B25 Chapter B26 Chapter B27 Chapter B28 Chapter B29

Registration, Amendment and Cancellation . . . . . . . . . . . . . . . . . . . . . . . . . . . . Returns under the GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Payment of tax and Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tax deduction at source. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Refund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Invoice, Accounts and Records. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Assessment, audit & determination of tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Collection of tax & Recovery and Liability in certain cases. . . . . . . . . . . . . . . . Inspection, search & survey. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inspection of Goods in Movement, Confiscation and E-way Bill. . . . . . . . . . . . Penalties and Prosecution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appeal, Advance Ruling and Anti-profiteering Provisions. . . . . . . . . . . . . . . . . Transitional Provisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Miscellaneous Provisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GST Network. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B15-1 B16-1 B17-1 B18-1 B19-1 B20-1 B21-1 B22-1 B23-1 B24-1 B25-1 B26-1 B27-1 B28-1 B29-1

VOLUME 2 PART C – LEGISLATION Chapter C1 Chapter C2 Chapter C3 Chapter C4 Chapter C5 Chapter C6 Chapter C7 Chapter C8 Chapter C9

Amended/Inserted Articles by the Constitution (101st Amendment) Act, 2016. . . . Central Goods and Services Tax Act, 2017. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Central Goods and Services Tax Rules, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . Delhi Goods and Services Tax Act, 2017. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Integrated Goods and Services Tax Act, 2017. . . . . . . . . . . . . . . . . . . . . . . . . . . . Integrated Goods and Services Tax Rules, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . Goods and Services Tax (Compensation to States) Act, 2017. . . . . . . . . . . . . . . . Goods and Services Tax Compensation Cess Rules, 2017 . . . . . . . . . . . . . . . . . . GST Forms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

C1-3 C2-1 C3-1 C4-1 C5-1 C6-1 C7-1 C8-1 C9-1

PART D – GST RATES Chapter D1 Chapter D2 Chapter D3 Chapter D4 Chapter D5 Chapter D6 Chapter D7

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GST Rates on Goods as on 21 May 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D1-3 Exemptions in the GST – Goods as on 21 May 2018. . . . . . . . . . . . . . . . . . . . . . D2-1 GST Rates on Services as on 21 May 2018. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D3-1 Exemptions in the GST – Services as on 21 May 2018. . . . . . . . . . . . . . . . . . . . . D4-1 Rates of Compensation Cess as on 21 May 2018 . . . . . . . . . . . . . . . . . . . . . . . . . D5-1 Scheme of Classification of Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D6-1 Circulars, Press Release, Advance Ruling & FAQ relating to TaxRates and Exemptions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D7-1

Table of contents – Volume 1 About the authors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix Contents at a glance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xi

VOLUME 1 PART A – GST AT-A-GLANCE Chapter A1 Rates and Exemption Notifications in GST – At-a-glance. . . . . . . . . . . . A1-3 1.1 CGST Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A1-3 1.2 IGST Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A1-8 1.3 Compensation Cess Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A1-13 Chapter A2 Non-Tariff Notifications in GST – At-a-glance . . . . . . . . . . . . . . . . . . . . . A2-1 2.1 CGST Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A2-1 2.2 IGST Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A2-7 2.3 Compensation Cess Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A2-8 Chapter A3 Orders issued in GST – At-a-glance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A3-1 3.1 CGST Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A3-1 Chapter A4 Circular and clarifications in GST – At-a-glance. . . . . . . . . . . . . . . . . . . . A4-1 4.1 CGST Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A4-1 4.2 IGST Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A4-4 4.3 Compensation Cess Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A4-4 Chapter A5 GST in India – At-a-glance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-1 5.1 GST – Meaning and its scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-1 5.2 Legislative Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-2 5.3 Taxable event and charging provisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-3 5.4 Rates of GST, Import & Export. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-4 5.5 Exemptions and exempt supplies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-5 5.5.1 Power to grant exemption. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-5 5.6 Meaning and Scope of the term “Supply”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-6 5.6.1 Scope of supply (Section 7 & 8 of the GST Act). . . . . . . . . . . . . . . . . . . . . A5-6 5.6.2 Inter-State supply vs. Local Supply and Place of Supply (Section 7 to 13 of the IGST Act). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-7 5.6.3 Time of supply (Section 12 & 13 of the GST Act). . . . . . . . . . . . . . . . . . . . A5-8 5.6.4 Value of supply (Section 15 of the GST Act). . . . . . . . . . . . . . . . . . . . . . . A5-10 5.7 Threshold Limit for registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-10

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5.8

5.9 5.10

5.11

5.12 5.13

5.14

5.15

5.16

5.17

5.18 xiv

5.7.1 Exemption limit (Sec 22 of the GST Act). . . . . . . . . . . . . . . . . . . . . . . . . . A5-10 5.7.2 When threshold limit is not applicable (Sec 24 of the GST Act). . . . . . . . A5-11 Taxable Persons & Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-12 5.8.1 Taxable person [Sec 2(107) of the GST Act]. . . . . . . . . . . . . . . . . . . . . . . A5-12 5.8.2 Who is liable for registration mandatorily under GST [Sec 22(1) of the GST Act]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-13 5.8.3 Who is not liable to take registration (Sec 23 of the GST Act) . . . . . . . . . A5-13 5.8.4 Agriculturist [Section 2(7) of the GST Act]. . . . . . . . . . . . . . . . . . . . . . . . A5-13 Time limit for taking registration [Section 25(1)] . . . . . . . . . . . . . . . . . . . A5-13 5.8.5 5.8.6 Voluntary Registration under GST [Section 25(3)] . . . . . . . . . . . . . . . . . . A5-13 Composition Scheme [Section 10]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-14 Output Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-15 5.10.1 Meaning of output tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-15 5.10.2 Steps for computation of output tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-16 Input Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-16 5.11.1 Input tax credit in the GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-16 5.11.2 Restrictions in claiming ITC [Sec 16 of the GST Act]. . . . . . . . . . . . . . . . A5-17 5.11.3 Non creditable goods/services/supplies [Sec 17(5)]. . . . . . . . . . . . . . . . . . A5-18 5.11.4 Utilization of credit [Sec 49(5)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-18 Job Work [Section 19, 143 of the GST Act] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-18 Tax Invoice, Bill of Supply, Debit/Credit Notes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-19 5.13.1 Who is required to issue tax invoice or bill of supply or receipt voucher or delivery challan?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-19 5.13.2 Contents of tax invoice (Rule 46 of the GST Rules) . . . . . . . . . . . . . . . . . A5-20 5.13.3 Circumstances when a debit note or credit note is issued (Sec 34 of the GST Act). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-21 Accounts and Records. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-21 5.14.1 Maintenance of Accounts and Records (Sec 35 of the GST Act). . . . . . . . A5-21 5.14.2 Retention of Accounts and Records (Sec 36 of the GST Act) . . . . . . . . . . A5-22 Returns under the GST (Chapter IX of the GST Act). . . . . . . . . . . . . . . . . . . . . . . . . A5-23 5.15.1 Types of returns or reports and periodicity. . . . . . . . . . . . . . . . . . . . . . . . . A5-24 5.15.2 Other features of the Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-24 Payment of Tax (Section 49 of the GST Act) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-25 5.16.1 Broad features. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-25 5.16.2 Payments to be made in the GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-25 5.16.3 Persons liable to pay GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-25 5.16.4 Modes of payment of GST, generally. . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-26 Tax Deduction at Source (TDS) (Section 51) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-26 5.17.1 Persons may be required to deduct TDS. . . . . . . . . . . . . . . . . . . . . . . . . . . A5-26 5.17.2 Rates of TDS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-26 5.17.3 When to deduct TDS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-26 5.17.4 Obligations of deductor of TDS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-27 Tax Collection at Source (TCS) (Section 52) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-27

5.19

5.20

5.21

5.22 5.23 5.24 5.25

Table of contents – Volume 1

5.18.1 Time of collection of TCS and its value. . . . . . . . . . . . . . . . . . . . . . . . . . . A5-27 5.18.2 Rates of TCS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-28 5.18.3 Obligations of collector of TCS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-28 5.18.4 Matching of TCS with supplies by the supplier. . . . . . . . . . . . . . . . . . . . . A5-28 Supplier of online information and database access or retrieval services located outside India to specified person in the taxable territory (OIDAR) (Section 14 of the IGST Act). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-29 5.19.1 Applicability of the provisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-29 Meaning of “online information and database access or retrieval 5.19.2 services” (OIDAR). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-29 5.19.3 Role of intermediary who arranges the services. . . . . . . . . . . . . . . . . . . . . A5-29 5.19.4 Registration, payment of tax and returns . . . . . . . . . . . . . . . . . . . . . . . . . . A5-30 Refund (Section 54 & 55 of the GST Act). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-30 5.20.1 Circumstances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-30 5.20.2 Time limit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-31 5.20.3 Procedure for claiming refund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-32 Assessment and Audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-32 5.21.1 Meaning of assessment and scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-32 5.21.1.1 Self-assessment (Section 59 of the GST Act) . . . . . . . . . . . . . . A5-32 5.21.1.2 Re-assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-32 5.21.1.3 Provisional assessment (Section 60 of the GST Act). . . . . . . . . A5-33 5.21.1.4 Summary assessment (Section 64 of the GST Act). . . . . . . . . . A5-33 5.21.1.5 Best judgment assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-33 5.21.2 Audit (Sec 65 of the GST Act). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-33 5.21.3 Specific provisions for determination of tax. . . . . . . . . . . . . . . . . . . . . . . . A5-34 5.21.4 Special Audit (Section 66 of the GST Act). . . . . . . . . . . . . . . . . . . . . . . . . A5-35 E-way bill. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-36 Advance ruling (Section 95 of the GST Act). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-37 Appeals (Chapter XVIII of the GST Act) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-38 Information returns (Section 150 of the GST Act) . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-40 5.25.1 Who is required to file information return? . . . . . . . . . . . . . . . . . . . . . . . . A5-40 5.25.2 What type of information may be asked in the return?. . . . . . . . . . . . . . . . A5-41 5.25.3 Penalty for non-furnishing of information return [Section 123 of the GST Act]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5-41 5.25.4 Penalty for non-furnishing of information return. . . . . . . . . . . . . . . . . . . . A5-41

Chapter A6 Compliance chart with limitation periods under GST. . . . . . . . . . . . . . . A6-1 Chapter A7 GST Transition – Time limits and limitation periods . . . . . . . . . . . . . . . A7-1 7.1 Action points after the Appointed Day (AD). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A7-1 7.2 Stock holding periods as on Appointed Day (AD) for claiming input tax credit . . . . . A7-3 7.3 Time Limits of removal/dispatch before the Appointed Day (AD) (in case of return of goods after the AD). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A7-3

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Chapter A8 Reverse Charge under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A8-1 8.1 Reverse Charge in respect of goods under sec 9(3) of the GST Act and 5(3) of the IGST Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A8-1 8.2 Reverse Charge in respect of services under sec 9(3) of the GST Act and 5(3) of the IGST Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A8-2 8.3 Reverse Charge in respect of goods and services under sec 9(4) of the GST Act and 5(4) of the IGST Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A8-7 Chapter A9 Returns under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A9-1 Types of returns or reports and periodicity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A9-1 9.1 9.2 Person-wise returns and periodicity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A9-3 9.3 Simple Return in Form GSTR-3B for the Year 2017-18. . . . . . . . . . . . . . . . . . . . . . . . A9-4 Chapter A10 Due dates under GST – Extensions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A10-1 10.1A Details of outward supplies of goods or services – Taxpayers with annual aggregate turnover more than Rs. 1.5 crore – Monthly - Form GSTR–1. . . . . . . . . . A10-1 10.1B Details of outward supplies of goods or services – Taxpayers with annual aggregate turnover upto Rs.1.5 Cr. – Quarterly - Form GSTR–1. . . . . . . . . . . . . . . . A10-2 10.2 Details of inward supplies of goods or services – Form GSTR–2. . . . . . . . . . . . . . . . A10-3 10.3 Monthly return – Form GSTR–3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A10-3 10.4 Monthly return – Form GSTR–3B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A10-3 10.5 Quarterly return for person opting for composition levy- Form GSTR–4. . . . . . . . . . A10-4 10.6 Return for Non-resident taxable person – GSTR-5. . . . . . . . . . . . . . . . . . . . . . . . . . . A10-5 10.7 Monthly details of supplies of online information and database access or retrieval services (OIDAR) by a person located outside India made to nontaxable persons in India – Form GSTR–5A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A10-5 10.8 Monthly return for input service distributor – Form GSTR–6 . . . . . . . . . . . . . . . . . . A10-6 10.9 Intimation to pay tax under sec 10 (composition levy) (Persons registered under erstwhile law migrating on the appointed day) – Form GST CMP–01. . . . . . . A10-7 Intimation of details of stock on date of opting for composition levy 10.10 (Only for persons registered under the existing law migrating on the appointed day) – Form GST CMP–03. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A10-7 10.11 Declaration for claim of input tax credit under section 18(1) by a person who has applied for registration within 30 days from the date of his liability – Form GST ITC–01 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A10-8 10.12 Details of goods/capital goods sent to job worker and received back from job worker – Form GST ITC–04. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A10-8 10.13 Application for Enrolment of Taxpayers registered in erstwhile laws and migrating in the GST – Form GST REG–26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A10-8 10.14 Person registered under any of the erstwhile laws, who is not liable to be registered under the GST Act; Application of cancellation – Form GST REG–29 . . . . A10-9 10.15 Transitional ITC/Stock Statement by the Migrant Taxpayers – Form GST TRAN–01. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A10-9

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Statement of details for supplies of goods effected during the tax period – Form GST TRAN–02. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A10-9

Chapter A11 Non-creditable goods/services and supplies under GST. . . . . . . . . . . . A11-1 11.1 Non creditable goods/services/supplies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A11-1 Chapter A12 Interest, penalties and offences. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A12-1 12.1 Interest under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A12-1 12.2 Penalties under GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A12-2 12.3 Offences under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A12-6 12.3.1 Nature of acts regarded as offences (Sec 132). . . . . . . . . . . . . . . . . . . . . . A12-6 12.3.2 Quantum of punishment for offences stated in Para 12.3.1 (Sec 132). . . . A12-7 Chapter A13 State Codes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A13-1 13.1 Code wise. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A13-1 13.2 Alphabetical List. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A13-2 Chapter A14 Port Codes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A14-1 Chapter A15 GST Forms – At-a-glance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A15-1 Central Goods and Services Tax Forms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A15-1 State Goods and Services Tax Forms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A15-8

PART B – COMMENTARY Chapter B1 Pre-GST Indian indirect tax structure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B1-3 1.1 Framework of Constitution of India in respect of taxation. . . . . . . . . . . . . . . . . . . . . . B1-3 1.2 Main indirect taxes or duties in India pre-GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B1-4 1.3 Customs duty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B1-5 1.4 Excise duty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B1-6 Service tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B1-7 1.5 1.6 State value added tax (VAT) or central sales tax (CST). . . . . . . . . . . . . . . . . . . . . . . . . B1-8 1.6.1 Value added tax (VAT) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B1-8 1.6.2 Enactment of the Central Sales Tax Act, 1956 (CST Act) . . . . . . . . . . . . . . B1-9 1.7 Other important indirect taxes or duties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B1-10 1.8 Shortcomings of the pre-GST structure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B1-10 Chapter B2 GST – Concept, Features and Advantages and Constitutional Amendment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . What is GST and why GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1 2.2 101st Constitutional Amendment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2.1 Statement of Objects & Reasons. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2.2 Insertion of new Article 246A – Simultaneous powers to levy GST. . . . . . 2.2.3 Insertion of new Article 269A – Levy of integrated GST. . . . . . . . . . . . . . . 2.2.4 Distribution of IGST and CGST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Creation of GST Council – Article 279A. . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2.5

B2-1 B2-1 B2-2 B2-2 B2-3 B2-3 B2-4 B2-4 xvii

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2.2.6 Other amendments in the Constitutions. . . . . . . . . . . . . . . . . . . . . . . . . . . . B2-5 2.3 Features of Indian GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B2-6 2.4 Illustration on GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B2-10 2.5 Pre-GST indirect tax structure versus GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B2-11 2.6 Advantages of GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B2-16 2.7 Is GST really a “One Nation One Tax”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B2-17 2.8 FAQs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B2-19 2.9 GST in Other Countries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B2-20 GST in Australia. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B2-20 2.9.1 2.9.2 GST/HST in Canada. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B2-23 2.9.3 GST in Singapore. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B2-24 2.9.4 Indirect taxes in UK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B2-24 2.9.5 GST or VAT rate globally. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B2-25 Chapter B3 Taxes or Duties Subsumed in the GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1 Taxes or duties subsumed in GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2 Taxes or duties not subsumed in GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2.1 Central taxes/duties not subsumed in GST. . . . . . . . . . . . . . . . . . . . . . . . . . 3.2.2 State taxes/duties not subsumed in GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3 Special status of tobacco and its products. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.4 FAQs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B3-1 B3-1 B3-2 B3-2 B3-2 B3-2 B3-4

Chapter B4 GST Council and its Functions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.1 What is GST Council?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.2 Manner of decision by the GST Council. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.3 Role and functions of the GST Council. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.4 Meetings of the GST Council and its conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B4-1 B4-1 B4-1 B4-2 B4-3

Chapter B5 Steps to Determine Liability under GST and Key Definitions. . . . . . . . B5-1 5.1 Introduction to Terminology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B5-2 5.2 General interpretation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B5-3 5.3 Definitions relating to Goods, Services, Business, etc. . . . . . . . . . . . . . . . . . . . . . . . . . B5-6 5.3.1 Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B5-7 5.3.2 Actionable claim. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B5-9 5.3.3 Securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B5-10 5.3.4 Money. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B5-10 5.3.5 Input . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B5-11 5.3.6 Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B5-11 5.3.7 Telecommunication service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B5-12 5.3.8 Input service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B5-12 5.3.9 Capital Goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B5-12 5.3.10 Motor vehicle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B5-13 5.3.11 Voucher. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B5-13 5.3.12 Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B5-14

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5.3.13 Manufacture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.3.14 Job work. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.3.15 Works contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.3.16 Electronic commerce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.3.17 Deemed Exports. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.3.18 Online information and database access or retrieval services . . . . . . . . . . Definitions relating to Person (Supplier, Recipient, etc). . . . . . . . . . . . . . . . . . . . . . . 5.4.1 Person. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.4.2 Family. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.4.3 Taxable person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.4.4 Registered person. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.4.5 Non-resident taxable person. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.4.6 Casual taxable person. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.4.7 Supplier. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.4.8 Recipient. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.4.9 Principal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.4.10 Agent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.4.11 Agriculturist . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.4.12 Associated enterprise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.4.13 Business vertical. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.4.14 Electronic commerce operator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.4.15 Input Service Distributor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.4.16 Special Economic Zone developer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.4.17 Intermediary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.4.18 Non-taxable online recipient. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Definitions relating to Supply, Export, Import, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . 5.5.1 Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.5.2 Taxable supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.5.3 Non-taxable supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.5.4 Exempt supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.5.5 Intra-State supply of goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.5.6 Intra-State supply of services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.5.7 Continuous supply of goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.5.8 Continuous supply of services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.5.9 Inward supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.5.10 Outward supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.5.11 Composite supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.5.12 Mixed supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.5.13 Principal supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.5.14 Zero rated supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.5.15 Place of supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.5.16 Export of goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Export of services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.5.17

B5-17 B5-17 B5-18 B5-18 B5-19 B5-19 B5-20 B5-20 B5-21 B5-21 B5-21 B5-22 B5-22 B5-23 B5-23 B5-23 B5-23 B5-24 B5-25 B5-26 B5-27 B5-27 B5-28 B5-28 B5-29 B5-29 B5-30 B5-30 B5-30 B5-30 B5-30 B5-31 B5-31 B5-31 B5-31 B5-32 B5-32 B5-32 B5-32 B5-33 B5-33 B5-33 B5-33 xix

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5.6

5.7

5.8 5.9 5.10

5.11 5.12 5.13

5.14 5.15

5.5.18 Import of goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.5.19 Import of services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.5.20 Customs frontiers of India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.5.21 Special Economic Zone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.5.22 Continuous journey. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.5.23 Removal of goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Definitions relating to place, address, location, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . 5.6.1 Principal place of business. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Place of business. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.6.2 5.6.3 Location of the supplier of services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.6.4 Location of the recipient of services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.6.5 Fixed establishment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.6.7 Address on record. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.6.8 Address of delivery. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Definitions relating to Computation of Turnover, Tax, etc . . . . . . . . . . . . . . . . . . . . . 5.7.1 Consideration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.7.2 Aggregate turnover. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.7.3 Turnover in a State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.7.4 Output tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.7.5 Input tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.7.6 Input tax credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.7.7 Market value. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.7.8 Tax period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Definitions relating to Returns, Invoice, Documents, Records, etc. . . . . . . . . . . . . . . Definitions relating to Tax, Cess, Acts, etc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Definitions relating to Assessment, Audit, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.10.1 Assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.10.2 Audit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Definitions relating to Professionals and Practitioners . . . . . . . . . . . . . . . . . . . . . . . . Definitions relating to GST Authorities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Definitions relating to State, Territory, Government, etc. . . . . . . . . . . . . . . . . . . . . . . 5.13.1 Government. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.13.2 Local authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.13.3 State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.13.4 Union Territory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.13.5 India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Goods vs. Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.15.1 Why distinction is required. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.15.2 Meaning of the term “goods”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.15.3 Meaning of the term “services” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.15.4 Intangible property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Matters specified in Schedule II – Goods (or) Service. . . . . . . . . . . . . . . . 5.15.5

B5-34 B5-34 B5-34 B5-34 B5-35 B5-35 B5-35 B5-35 B5-36 B5-36 B5-37 B5-38 B5-39 B5-39 B5-39 B5-39 B5-42 B5-42 B5-43 B5-44 B5-44 B5-44 B5-44 B5-45 B5-46 B5-47 B5-47 B5-47 B5-48 B5-48 B5-49 B5-50 B5-50 B5-50 B5-50 B5-51 B5-51 B5-52 B5-52 B5-52 B5-53 B5-54 B5-55

Table of contents – Volume 1

Chapter B6 Supply – Meaning and Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B6-1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B6-1 6.1 Meaning of supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B6-1 6.1.1 Meaning of the term “supply”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B6-2 6.1.1.1 Significance of the term “inclusive” . . . . . . . . . . . . . . . . . . . . . . B6-2 6.1.1.2 Scope of the “supply” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B6-3 6.1.1.3 Essentials of the term “supply”. . . . . . . . . . . . . . . . . . . . . . . . . . B6-4 6.1.2 Supply between the joint venture/AOP and members thereof. . . . . . . . . . B6-10 6.1.3 Sharing of expenditure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B6-11 6.1.4 Recovery of food expenditure from employees. . . . . . . . . . . . . . . . . . . . . B6-12 6.2 Supply without consideration – Schedule I. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B6-12 6.3 Whether an activity is “supply of goods” or “supply of service” -Matters contained in Schedule II. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B6-18 6.3.1 Transfer of ‘titles’ or ‘right to use’ in goods. . . . . . . . . . . . . . . . . . . . . . . . B6-18 6.3.2 Lease or letting of land or building. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B6-23 6.3.3 Treatment or process to another person’s goods. . . . . . . . . . . . . . . . . . . . . B6-24 6.3.4 Transfer of business assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B6-26 6.3.5 Renting of immovable property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B6-30 6.3.6 Construction of complex etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B6-31 6.3.7 Temporary transfer of intellectual property right (IPR). . . . . . . . . . . . . . . B6-35 6.3.8 Development, design, etc of IT software . . . . . . . . . . . . . . . . . . . . . . . . . . B6-37 6.3.9 Refrainment, tolerance an act, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B6-40 6.3.10 Transfer of the right to use goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B6-41 6.3.11 Works contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B6-44 6.3.12 Supply of food and beverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B6-46 6.3.13 Supply of goods by any unincorporated association. . . . . . . . . . . . . . . . . B6-48 6.3.14 Taxability under the erstwhile Indirect tax laws vs GST. . . . . . . . . . . . . . B6-48 6.4 Activities or transactions which shall be treated neither as supply of goods nor as supply of services - Sec 7(2) read with Schedule III. . . . . . . . . . . . . . . . . . . . . B6-49 6.5 Powers of the government in respect of supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B6-55 6.6 Composite or mixed supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B6-55 Composite works contract in respect of movable goods: . . . . . . . . . . . . . . . . . . . . . . B6-57 6.7 Continuous supply of goods/services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B6-61 6.8 “Outward supply” and “Inward supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B6-62 6.9 Issues and FAQ in respect of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B6-62 6.9.1 Whether supply by an individual, who is not engaged in business, also falls within the definition?. . . . . . . . . . . . . . . . . . . . . . . . . . B6-62 Whether “supply” includes supply without the profit motive, 6.9.2 such as, sale of scrap by Transport Corporation to reduce space?. . . . . . . B6-63 6.9.3 Whether supply of goods without consideration, such as, free samples, goods under warranty, promotional goods, come within the definition of “supply”? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B6-63

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6.9.4 6.9.5 6.9.6 6.9.7 6.9.8

Whether the term “supply” includes supply of good/services from HO to branches and inter-branches of the same PAN? . . . . . . . . . . . Whether stock transfer (of goods) within the same entity will be taxable as “goods” or as “service”? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Can “recipient of supply” be treated as “supplier?. . . . . . . . . . . . . . . . . . . “Supply” in the case of co-operative society . . . . . . . . . . . . . . . . . . . . . . . Whether following activities are covered under “supply” or not?. . . . . . .

B6-63 B6-64 B6-64 B6-65 B6-66

Chapter B7 Time and Value of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B7-1 7.1 Time of supply of goods – when taxable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B7-1 7.1.1 Time of supply of goods subject to forward charge. . . . . . . . . . . . . . . . . . . B7-2 7.1.2 Time of supply of goods subject to reverse charge. . . . . . . . . . . . . . . . . . . . B7-5 7.1.3 Time of supply of vouchers, by whatever named called. . . . . . . . . . . . . . . . B7-6 Meaning of “voucher” [Sec 2(118) of the GST Act] . . . . . . . . . . . . . . . . . . B7-6 Single-purpose voucher . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B7-8 Multi-purpose voucher. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B7-8 Ambiguities in relation to “vouchers” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B7-8 7.1.4 Supply relating to interest, late fee or penalty . . . . . . . . . . . . . . . . . . . . . . B7-10 7.1.5 Where time of supply could not be determined in accordance with earlier provisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B7-10 7.1.6 FAQs in respect of time of supply of goods. . . . . . . . . . . . . . . . . . . . . . . . B7-10 7.2 Time of supply of services – when taxable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B7-11 7.2.1 Time of supply in case of services subject to forward charge . . . . . . . . . . B7-12 7.2.2 Time of supply of services subject to reverse charge. . . . . . . . . . . . . . . . . B7-14 7.2.3 Time of supply of vouchers, by whatever named called. . . . . . . . . . . . . . . B7-14 7.2.4 Special provision in relation to the “associated enterprises” . . . . . . . . . . . B7-15 7.2.5 Supply relating to interest, late fee or penalty . . . . . . . . . . . . . . . . . . . . . . B7-15 7.2.6 Where time of supply could not be determined in accordance with earlier provisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B7-16 7.2.7 FAQs in respect of time of supply of services . . . . . . . . . . . . . . . . . . . . . . B7-16 7.3 Change in rates of tax – Goods or Services – Sec 14 of the GST Act. . . . . . . . . . . . . B7-17 7.3.1 Time of supply of services in case of change in rate of tax (CRT) of supply of services – To summarize. . . . . . . . . . . . . . . . . . . . . . . . . . . . . B7-19 7.3.2 Time of supply of goods in case of change in rate of tax (CRT) of supply of goods – To summarize – w.e.f. 15.11.2017 (other than composition tax payers) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B7-19 7.4 Value of supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B7-20 7.4.1 Value of taxable supply for levy of GST. . . . . . . . . . . . . . . . . . . . . . . . . . B7-21 7.4.2 When are two persons stated to be related to each other? . . . . . . . . . . . . . B7-22 7.4.3 Inclusion of amounts while determining transaction value . . . . . . . . . . . . B7-23 Supplies made by the recipient (e.g., FOC material). . . . . . . . . . . . . . . . . B7-24 Reimbursements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B7-25 7.4.4 Exclusion of discounts while determining transaction value. . . . . . . . . . . B7-27

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7.4.5 7.4.6

When is a person required to refer the Valuation Rules?. . . . . . . . . . . . . . Value of supply where supply is for a consideration not wholly in money – Rule 27 of the GST Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.4.7 Value of supply taking place between related persons or the distinct persons (inter-unit supply) – Rule 28. . . . . . . . . . . . . . . . . . . . . . . 7.4.8 Value of supply made or received through an agent – Rule 29 . . . . . . . . . 7.4.9 Manner of valuation prescribed in Rules 30 & 31. . . . . . . . . . . . . . . . . . . 7.4.9A Value of supply in case of lottery, betting and gambling – Rule 31A. . . . . Manner of valuation in specified activities – Rule 32. . . . . . . . . . . . . . . . . 7.4.10 7.4.10A Supply of old and used motor vehicle. . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.4.11 Value of supply of services in case of pure agent – Rule 33. . . . . . . . . . . . 7.4.12 Exchange rate of currency, other than INR – Rule 34 . . . . . . . . . . . . . . . . 7.4.13 Value of supply is inclusive of GST – Rule 35. . . . . . . . . . . . . . . . . . . . . . 7.4.14 Proportion of value attributable to different States or Union territories, in the case of supply of advertisement services to Government – Rule 3 of the IGST Rules. . . . . . . . . . . . . . . . . . . . . . . . . . 7.4.15 FAQs in respect of value of supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B7-27 B7-27 B7-28 B7-29 B7-29 B7-30 B7-30 B7-34 B7-35 B7-38 B7-38

B7-39 B7-47

Chapter B8 Concept of IGST – Inter-state Supply and Intra-state Supply. . . . . . . . . B8-1 8.1 Erstwhile indirect tax structure – Inter-state transactions. . . . . . . . . . . . . . . . . . . . . . . B8-1 8.1.1 Features of Central Sales Tax Act, 1956 (CST Act). . . . . . . . . . . . . . . . . . . B8-1 8.1.2 Tax on Import of goods into India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B8-2 8.1.3 Tax on import of services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B8-3 8.2 IGST model for inter-state transactions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B8-3 8.2.1 Meaning of the term “IGST” and its need . . . . . . . . . . . . . . . . . . . . . . . . . . B8-3 8.2.2 Features of the “IGST” mechanism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B8-4 8.2.3 Supply of goods or services in the course of inter-state trade or commerce . . . B8-5 8.2.4 Supply of goods or services within the state. . . . . . . . . . . . . . . . . . . . . . . . . B8-6 8.2.5 Refund of IGST paid on supply of goods to tourist leaving India [Sec 15 of the IGST Act] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B8-7 8.2.6 Supplies in territorial water [Sec 9 of the IGST Act]. . . . . . . . . . . . . . . . . . B8-7 8.2.7 Illustration – Computation of inter-state GST (IGST). . . . . . . . . . . . . . . . . B8-8 8.3 Determination of place of supply (POS) of goods and services . . . . . . . . . . . . . . . . . . B8-8 8.4 Determination of place of supply (POS) of goods other than supply of goods imported into, or exported from India [Sec 10 of the IGST Act] . . . . . . . . . . . B8-14 8.5 Determination of place of supply (POS) of goods imported into, or exported from India [Sec 11 of the IGST Act]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B8-21 8.6 Determination of place of supply (POS) of services where the location of supplier of service and the location of the recipient of service (both) are in India and situs [Sec 12 of IGST Act]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B8-23 8.6.1 General provision - Sec 12(2) [other than sec 12(3) to 12(14)] of the IGST Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B8-26 8.6.2 Other provisions - Section 12(3) to (14) of the IGST Act . . . . . . . . . . . . . B8-27

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8.7

Determination of place of supply (POS) of services where location of supplier or location of the recipient is outside India [Section 13]. . . . . . . . . . . . . . . . 8.7.1 General provision- Section 13(2) [other than sec 13(3) to 13(13)] of the IGST Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.7.2 Exception provisions - Section 13(3) to (13) of IGST Act. . . . . . . . . . . . . 8.8 Place of supply – Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.8.1 Section 12 vs Section 13 - Instances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.8.2 Taxability of service [After ascertaining LOS and POS]. . . . . . . . . . . . . . 8.8.3 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.9 Taxation of import of goods and services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.10 Transfers of goods/services to branch/agent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.11 FAQs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B8-43 B8-46 B8-46 B8-61 B8-61 B8-62 B8-63 B8-64 B8-64 B8-65

Chapter B9 Imports, Zero-rated Supplies and Exports . . . . . . . . . . . . . . . . . . . . . . . . . . B9-1 9.1 Import of goods and services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B9-1 9.1.1 Import of goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B9-1 9.1.2 Import of services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B9-2 9.1.3 Taxation on import of goods and services . . . . . . . . . . . . . . . . . . . . . . . . . . B9-2 9.1.4 High seas sale of goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B9-9 9.2 Zero rated supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B9-12 9.2.1 Meaning of zero-rated supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B9-12 9.2.2 Eligibility of input tax credit or refund on zero-rated supply [Sec 16 of the IGST Act]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B9-12 9.3 Export of goods and services, Deemed Export & Penultimate Export. . . . . . . . . . . . B9-15 9.3.1 Export of goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B9-15 9.3.2 Export of services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B9-15 9.3.3 Deemed export . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B9-16 9.3.4 Penultimate export . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B9-19 9.3.5 Export under GST – Refund and procedure. . . . . . . . . . . . . . . . . . . . . . . . B9-21 9.4 Supply of goods and/or services to SEZ unit/developer. . . . . . . . . . . . . . . . . . . . . . . B9-28 Chapter B10 Levy, Reverse Charge, Rates and Exemptions. . . . . . . . . . . . . . . . . . . . . . B10-1 10.1 Levy and collection of GST (Incidence of Tax) u/s 9(1) of the GST Act and 5(1) of the IGST Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B10-1 10.2 Reverse Charges u/s 9(3) of the GST Act and 5(3) of the IGST Act. . . . . . . . . . . . . . B10-2 Scope and manner of Reverse Charge. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B10-2 10.2.1 Reverse Charge in respect of goods under the CGST/SGST/IGST. . . . . . B10-4 10.2.2 Reverse Charge in respect of services under the CGST/SGST/IGST Act. B10-5 10.2.2.1 Goods transport agency (GTA) . . . . . . . . . . . . . . . . . . . . . . . . . B10-5 10.2.2.2 Advocate including Senior Advocate and Arbitral Tribunal. . B10-10 10.2.2.3 Sponsorship. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B10-15 10.2.2.4 Services by government or local authority . . . . . . . . . . . . . . . B10-16 10.2.2.5 Renting of immovable property services by Government. . . . B10-29 10.2.2.5A Services by director. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B10-30 xxiv

10.3

10.4 10.5 10.6

10.7 10.8

Table of contents – Volume 1

10.2.2.6 Insurance agent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B10-32 10.2.2.7 Recovery agent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B10-33 10.2.2.8 Author, music composer, photographer, artist, or the like. . . . B10-35 10.2.2.9 Members of Overseeing Committee constituted by the RBI. . . . B10-38 10.2.3 Reverse Charge in respect of services only under the IGST Act (in addition to services specified in Para above). . . . . . . . . . . . . . . . . . . . B10-39 10.2.3.1 Service supplied by a person located in a non-taxable territory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B10-39 10.2.3.2 Transportation of goods by a vessel from outside India up to the customs station - Service supplied by a person located in a non-taxable territory. . . . . . . . . . . . . . . . . B10-43 10.2.4 Taxability under sec 9(3) of supplier of exempted goods/services receiving taxable supplies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B10-45 10.2.5 Whether threshold limit is applicable for reverse charge. . . . . . . . . . . . . B10-46 10.2.6 Manner of payment of reverse charge payment. . . . . . . . . . . . . . . . . . . . B10-46 10.2.7 Compliances in respect of supplies under reverse charge mechanism. . . B10-47 Reverse Charges u/s 9(4) of the GST Act and 5(4) of the IGST Act. . . . . . . . . . . . . B10-47 10.3.1 Applicability of reverse charge on receipts from unregistered suppliers.B10-47 10.3.2 Inter-state procurement from unregistered suppliers . . . . . . . . . . . . . . . . B10-48 10.3.3 Exemption u/s 9(4) from paying reverse charge. . . . . . . . . . . . . . . . . . . . B10-49 10.3.4 Manner of payment of reverse charge payment and claiming input tax credit – Refer Para 10.2.6 of this Chapter. . . . . . . . . . . . . . . . . B10-51 10.3.5 Compliances in respect of supplies under reverse charge mechanism. . . B10-51 Specified e-commerce operators – Deemed suppliers u/s 9(5) of the GST Act and 5(5) of the IGST Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B10-52 Levy of compensation cess . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B10-53 Rates of GST in India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B10-54 10.6.1 Framework of GST Rates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B10-54 10.6.2 GST Rates of goods and services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B10-54 10.6.3 Explanations in the notifications pertaining to tax rates on goods. . . . . . B10-55 10.6.4 Rules of interpretation in the Customs Tariff. . . . . . . . . . . . . . . . . . . . . . B10-56 10.6.5 Customs Tariff - General Explanatory Notes and Additional Notes. . . . . B10-58 General Explanatory Notes:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B10-58 Additional Notes: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B10-58 RNR –Meaning, Determination and Globally. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B10-58 Exemptions and exempt supplies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B10-59 10.8.1 Power to grant exemption. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B10-59 10.8.2 Meaning of exempted supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B10-60 10.8.3 Meaning of non-taxable supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B10-60 10.8.4 Exemption Notifications under the CGST and IGST. . . . . . . . . . . . . . . . B10-60 10.8.5 Various terms defined in clause 2 of the exemption notification no. 12/2017-CTR dated 28 June 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . B10-60 Supply of old and used motor vehicle. . . . . . . . . . . . . . . . . . . . . . . . . . . B10-70 10.8.6 xxv

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10.8.7

Circulars/Clarifications/Press Release/Advance Ruling in respect of exemptions and rates of tax: Please refer Chapter D-6 of this Book. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.9 Non-taxable persons. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.9.1 Who is a taxable person? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.9.2 Agriculturist . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.10 Zero rated supply and export of goods and services. . . . . . . . . . . . . . . . . . . . . . . . . 10.11 Threshold limit for registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Calculation of output tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.12 10.12.1 Meaning of output tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.12.2 Liability of the principal and agent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.12.3 Steps for computation of output tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.13 FAQs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B10-72 B10-72 B10-72 B10-73 B10-74 B10-74 B10-74 B10-74 B10-74 B10-75 B10-75

Chapter B11 Input tax credit and input service distributor . . . . . . . . . . . . . . . . . . . . . . B11-1 11.1 Meaning of input tax credit (ITC) and related terms. . . . . . . . . . . . . . . . . . . . . . . . . . B11-1 11.2 Meanings of capital goods, input and input service. . . . . . . . . . . . . . . . . . . . . . . . . . . B11-3 11.2.1 Meaning of “capital goods” – [Section 2(19)]. . . . . . . . . . . . . . . . . . . . . . B11-3 11.2.2 Meaning of “input” – [Section 2(59)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . B11-3 11.2.3 Meaning of “input service” – [Section 2(60)]. . . . . . . . . . . . . . . . . . . . . . . B11-3 11.3 ITC during the transition period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B11-4 11.4 Eligibility and Conditions for claiming of input tax credit (ITC) [Sec 16]. . . . . . . . . B11-4 11.4.1 Conditions for claiming ITC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B11-7 11.4.1A Can a person claim ITC of CGST/SGST paid or incurred in other State . . . B11-13 11.4.2 Manner of claiming ITC [Section 16(1)] . . . . . . . . . . . . . . . . . . . . . . . . . B11-15 11.4.3 Utilization of credit [Section 49(5)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . B11-15 11.4.4 Overall time limit for claiming ITC [Section 16(4)] . . . . . . . . . . . . . . . . B11-15 11.5 Eligibility and Conditions in claiming of input tax credit (ITC) [Sec 17]. . . . . . . . . B11-16 11.5.1 Restrictions in claiming ITC [Section 17] . . . . . . . . . . . . . . . . . . . . . . . . B11-16 11.5.1.1 Where goods/services are used partly for the purpose of business and partly for other purposes . . . . . . . . . . . . . . . . B11-16 11.5.1.2 Where the goods/services are used for effecting partly for taxable supplies (including zero-rated supplies) and partly for exempt supplies (including non-taxable supplies). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B11-17 11.5.1.3 Manner of determination of ITC in respect of inputs and input services under sec 17(1), (2) - Rule 42 of the GST Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B11-18 11.5.1.4 Manner of determination of ITC in respect of capital goods under sec 17(1), (2) - Rule 43 of the GST Rules. . . . . . B11-21 11.5.2 Banking Co., Financial Institutions and NBFC . . . . . . . . . . . . . . . . . . . . B11-23 11.5.3 Recovery of ITC wrongly taken. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B11-24 11.6 Non-creditable goods or services (Blocked Credit) [Section 17(5)]. . . . . . . . . . . . . B11-24

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ITC in special circumstances [Section 18]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.7.1 Eligible for ITC on stock to a taxable person, who has applied for registration mandatorily for the first time. . . . . . . . . . . . . . . . . . . . . . 11.7.2 Eligible for ITC on stock to a taxable person, who has applied for registration voluntarily under section 25(3) . . . . . . . . . . . . . . . . . . . . 11.7.3 Eligibility for ITC on stock of a person who ceases to pay tax under composition levy and pays tax under regular scheme . . . . . . . . . . 11.7.4 Eligibility for ITC on stock where an exempt supply becomes taxable supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.7.5 Manner prescribed for claiming ITC in Para 11.7.1 to 11.7.4 above [Rule 40(1) of the GST Rules]. . . . . . . . . . . . . . . . . . . . . . . . . . . . Eligibility of ITC where there is a change in the constitution of a 11.7.6 registered taxable person. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Payment equivalent to the ITC if the outward taxable supplies 11.7.7 subsequently become exempt absolutely . . . . . . . . . . . . . . . . . . . . . . . . . Payment equivalent to the ITC where the taxable person 11.7.8 switches over from regular scheme to composition scheme. . . . . . . . . . . 11.7.9 Payment equivalent to the ITC where the registration is cancelled under sec 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.7.10 Supply of capital goods on which ITC has been claimed earlier. . . . . . . Goods transferred for job-work [Section 19]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.8 Input service distributor (ISD) [Section 20, 21] . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.9 11.9.1 Purpose of ISD mechanism. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Who is input service distributor? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.9.2 11.9.3 Obligations for registration and filing of return. . . . . . . . . . . . . . . . . . . . Conditions/restrictions and procedure for distribution of credit 11.9.4 [Section 20(2) read with Rule 39 of the GST Rules]. . . . . . . . . . . . . . . . 11.9.5 Manner of distribution of credit [Section 20(1) read with Rule 39 of the GST Rules] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.9.6 Manner of recovery of credit excess distributed. . . . . . . . . . . . . . . . . . . . 11.10 Hindrances in seamless ITC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.11 FAQs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B11-51 B11-53 B11-53 B11-54 B11-54 B11-55 B11-55 B11-56 B11-57 B11-58 B11-58 B11-59 B11-61 B11-62 B11-63 B11-64 B11-64 B11-68 B11-68 B11-68 B11-72

Chapter B12 Composition levy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.1 Scope and features of the composition levy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.1.1 Who can opt for the composition levy? . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.1.2 Who cannot opt for the composition levy?. . . . . . . . . . . . . . . . . . . . . . . . . 12.1.3 Rate of composition levy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.2 Conditions and restrictions under the composition levy. . . . . . . . . . . . . . . . . . . . . . . 12.2.1 Conditions and restrictions Specified in the GST Act . . . . . . . . . . . . . . . . 12.2.2 Conditions and restrictions specified in the GST Rules [Rule 5]. . . . . . . . 12.3 Procedure to opt for the composition levy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.3.1 Procedure to opt for composition levy. . . . . . . . . . . . . . . . . . . . . . . . . . . .

B12-1 B12-1 B12-1 B12-3 B12-3 B12-5 B12-5 B12-5 B12-6 B12-6

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12.4

12.5 12.6 12.7

Input tax credit on switch over to composition levy. . . . . . . . . . . . . . . . . . . . . . . . . . B12-9 12.4.1 Reversal of input tax credit where the taxable person switches over from regular method to composition levy. . . . . . . . . . . . . . . . . . . . . . B12-9 12.4.2 Eligibility of the input tax credit where a taxable person, who was paying tax under the composition levy, starts paying tax under the regular method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B12-10 Validity of the composition levy [Rule 6]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B12-11 Cancellation of permission or registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B12-12 FAQs by CBEC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B12-13

Chapter B13 Job worker, Casual Taxable Person & Non-resident Taxable Person. . B13-1 13A Job-worker. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B13-1 13A.1 Who is “job-worker” and “principal”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . B13-1 13A.1.1 Meaning of ‘job work’ and ‘job worker’. . . . . . . . . . . . . . . . . . B13-1 13A.1.2 Can the person also use his own goods during the process?. . . B13-2 13A.1.3 Meaning of principal for the purposes of these provisions. . . . B13-3 13A.1.4 Treatment of job work as ‘service’. . . . . . . . . . . . . . . . . . . . . . B13-3 13A.2 Privileges available to the principal and restrictions . . . . . . . . . . . . . . . . . B13-3 13A.2.1 Input tax credit on inputs and capital goods sent for job work [Sec 19]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B13-4 13A.2.2 Special procedure for removal of goods under sec 143. . . . . . . B13-4 13A.2.3 Supply of goods by the principal from the place of job worker.B13-6 13A.2.4 Manner of dispatch and return prescribed in rule 45 of the GST Rules:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B13-6 13A.2.5 Supply of waste or scrap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B13-7 13A.2.6 Documents for movement of goods. . . . . . . . . . . . . . . . . . . . . . B13-7 13A.2.7 Liability to issue invoice, determination of place of supply and payment of GST . . . . . . . . . . . . . . . . . . . . . . . . . . . B13-8 13A.2.8 Availability of input tax credit to the principal and job worker . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B13-10 13A.3 Job-worker . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B13-11 13A.3.1 Whether a job-worker is required to obtain registration? . . . . B13-11 13A.3.2 Whether goods, directly supplied from the jobworker’s premises, will be included in the aggregate turnover of job worker?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B13-11 13A.3.3 If the principal and job-worker are located in difference states, will the service by job-worker be treated as inter-state supply? What is the threshold limit for registration?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B13-11 13B Casual Taxable Person. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B13-12 13B.1 Who is casual taxable person. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B13-12 13B.2 Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B13-13 13B.3 Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B13-15

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13B.4 Refund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non-resident Taxable Person. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13C.1 Who is non-resident taxable person. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13C.2 Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13C.3 Input tax credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13C.4 Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13C.5 Refund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B13-16 B13-16 B13-16 B13-16 B13-17 B13-17 B13-17

Chapter B14 E-commerce, TCS & supply of online data– special provisions. . . . . . . B14-1 14.1 E-commerce. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B14-1 14.1.1 Meaning of ‘e-commerce’. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B14-1 14.1.2 Omission of the term ‘Aggregator’ in the GST Act. . . . . . . . . . . . . . . . . . B14-2 14.1.3 Activities of the e-commerce operator [ECO] . . . . . . . . . . . . . . . . . . . . . . B14-2 14.1.4 Threshold limit for registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B14-3 14.1.5 When the ECO itself be deemed as supplier. . . . . . . . . . . . . . . . . . . . . . . . B14-4 14.2 Collection of tax (TCS) by e-commerce operators . . . . . . . . . . . . . . . . . . . . . . . . . . . B14-5 14.2.1 Time of collection of TCS and its value. . . . . . . . . . . . . . . . . . . . . . . . . . . B14-5 14.2.2 Rate of TCS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B14-6 14.3 Procedure for registration or cancellation and obligations of TCS. . . . . . . . . . . . . . . B14-6 14.3.1 Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B14-6 14.3.2 Obligations of the e-commerce operators. . . . . . . . . . . . . . . . . . . . . . . . . . B14-6 14.3.3 Claim of credit for the amount of TCS deposited by the ECO by the concerned supplier [Sec 52(7) of the GST Act] . . . . . . . . . . . . . . . . . . B14-7 14.3.4 Matching of details filed by the ECO with that of filed by the supplier [Sec 52(8) to (11) of the GST Act read with Rule 78 & 79 of the GST Rules] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B14-7 14.3.5 Powers of the proper officer to issue notice upon the ECO [Sec 52(12) to (14) of the GST Act]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B14-8 14.3.6 Cancellation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B14-9 14.3.7 Whether there could be any other penalties on ECO? . . . . . . . . . . . . . . . . B14-9 14.4 Special provision for payment of tax by a supplier of online information and database access or retrieval services (OIDAR) located outside India to specified person in the taxable territory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B14-9 14.4.1 Applicability of the provisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B14-9 14.4.2 Meaning of “online information and database access or retrieval services” [Sec 2(17) of the IGST Act] . . . . . . . . . . . . . . . . . . . . . . . . . . . B14-10 14.4.3 Meaning of “non-taxable online recipient”. . . . . . . . . . . . . . . . . . . . . . . . B14-12 14.4.4 Who is responsible for payment of tax and role of intermediary who arranges the services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B14-13 14.4.5 Registration and payment of tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B14-13 14.4.6 Filing of return [Rule 64]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B14-14 14.4.7 Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B14-14 14.4.8 Officers empowered to grant registration. . . . . . . . . . . . . . . . . . . . . . . . . B14-15

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Chapter B15 Registration, Amendment and Cancellation . . . . . . . . . . . . . . . . . . . . . . . B15-1 15.1 Need for registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B15-1 15.1.1 Why does one require registration? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B15-1 15.2 Format of registration number (GSTIN). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B15-1 15.3 Existing registered persons-Transitional provisions . . . . . . . . . . . . . . . . . . . . . . . . . . B15-2 15.3.1 Liability for registration for existing registered persons. . . . . . . . . . . . . . . B15-2 15.3.2 Points/Issues regarding migration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B15-2 15.3.3 Information and documents required to enroll with GST. . . . . . . . . . . . . . B15-4 15.3.4 What will be the procedure of migration of registration to GST? [RuleÂ 24 of the GST Rules] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B15-4 15.4 Types of registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B15-6 15.5 Mandatory registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B15-6 15.5.1 Liability for mandatory registration under the GST â&#x20AC;&#x201C; Threshold limit. . . . B15-6 15.5.2 Meaning of aggregate turnover for the purpose of threshold limit. . . . . . . B15-8 15.5.3 Circumstances when threshold limit is not applicable. . . . . . . . . . . . . . . . B15-9 15.5.4 Time limit for taking registration [Sec 25(1)]. . . . . . . . . . . . . . . . . . . . . . B15-10 15.5.5 Persons not liable for registration [Sec 23]. . . . . . . . . . . . . . . . . . . . . . . . B15-11 15.5.6 Registration is required in every state/UT separately. . . . . . . . . . . . . . . . B15-13 15.5.7 Separate registrations for multiple business verticals in the same state/UT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B15-13 15.6 Procedure for registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B15-13 15.6.1 Application for registration [Rule 8(1) of the GST Rules]. . . . . . . . . . . . B15-13 15.6.2 Documents required for registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . B15-14 15.6.3 Persons authorised to sign or verify through electronic verification code application for registration . . . . . . . . . . . . . . . . . . . . . . B15-14 15.6.4 Procedure for registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B15-15 15.6.5 All places of businesses are to be declared at the time of registration. . . B15-20 15.6.6 Whether separate enrolment is required with Central and State authorities under GST?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B15-20 15.6.7 Whether small dealers or dealers having no IT infrastructure have any system for facilitation? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B15-20 15.7 Voluntary registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B15-21 15.7.1 Circumstances when voluntary registration may be obtained . . . . . . . . . B15-21 15.7.2 Procedure for voluntary registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . B15-21 15.8 Registration by department (Suo-moto registration). . . . . . . . . . . . . . . . . . . . . . . . . B15-21 15.8.1 Circumstances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B15-21 15.8.2 Procedure for registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B15-22 Effective date for registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B15-22 15.8.3 15.9 Input service distributor (ISD). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B15-22 15.9.1 Requirements for registration by ISD. . . . . . . . . . . . . . . . . . . . . . . . . . . . B15-22 15.9.2 Procedure for registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B15-22 15.10 Casual taxable person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B15-22 15.10.1 Who is casual taxable person? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B15-22 xxx

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15.10.2 Procedure for registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.10.3 Process for registration/extension. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.11 Non-resident. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.11.1 Who is a non-resident person?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.11.2 Procedure for registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.11.3 Process for registration/extension. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.12 Unique Identity Number (UIN) by UN Bodies etc. . . . . . . . . . . . . . . . . . . . . . . . . . 15.12.1 Who requires UIN?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.12.2 Process for registration/extension. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.12.3 Circular No. 36/10/2018 dated 13 March 2018 . . . . . . . . . . . . . . . . . . . . 15.13 Others. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.13.1 Job Worker . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.13.2 SEZ Developer/SEZ Unit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.13.3 Supply from Territorial Waters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.13.4 Person required to deduct tax at source (TDS). . . . . . . . . . . . . . . . . . . . . 15.13.5 Person supplying online information and data base access or retrieval (OIDAR) services from a place outside India to a nontaxable online recipient. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.13.6 Person required to collect tax at source (TCS). . . . . . . . . . . . . . . . . . . . . 15.14 Effective date of Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.15 Consequences of not applying for registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.16 Amendment of registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.16.1 Circumstances for amendment of registration . . . . . . . . . . . . . . . . . . . . . 15.16.2 Procedure for amendment of registration. . . . . . . . . . . . . . . . . . . . . . . . . 15.17 Cancellation of registration and revocation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.17.1 Circumstances for cancellation of registration. . . . . . . . . . . . . . . . . . . . . 15.17.2 Procedure for cancellation of registration. . . . . . . . . . . . . . . . . . . . . . . . . 15.17.2A Procedure for cancellation of registration in case of death of sole proprietor and transfer of input tax credit. . . . . . . . . . . . . . . . . . . . . . . . . 15.17.3 Revocation of the cancellation order . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.18 FAQs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.19 FAQ by CBEC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.20 Forms as per the GST Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Annexure 1: Documentation/Information for migration . . . . . . . . . . . . . . . . . . . . . . . . . . . . Annexure 2: Handicraft Goods [Para 15.5.5]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B15-23 B15-23 B15-24 B15-24 B15-24 B15-24 B15-25 B15-25 B15-26 B15-26 B15-27 B15-27 B15-27 B15-27 B15-27

B15-27 B15-27 B15-27 B15-28 B15-28 B15-28 B15-29 B15-30 B15-30 B15-31 B15-33 B15-34 B15-35 B15-37 B15-41 B15-43 B15-48

Chapter B16 Returns under the GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.1 Purpose of returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.2 Persons responsible for filing returns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.2.1 Whether there are separate returns for SGST, CGST, etc?. . . . . . . . . . . . . 16.2.2 Persons liable to file returns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.3 Types of returns or reports and periodicity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.4 Person-wise returns and periodicity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B16-1 B16-2 B16-3 B16-3 B16-3 B16-3 B16-5

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16.5 16.6 16.7

16.8

16.9

16.10

16.11

16.12 xxxii

Other features of returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B16-6 Returns process flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B16-6 Returns for outward supplies [GSTR–1]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B16-7 16.7.1 Persons liable to furnish GSTR-1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B16-7 16.7.2 Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B16-8 16.7.3 Credit/debit notes [Section 34]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B16-9 16.7.4 Advances received against a supply to be made in future [Section 12 & 13]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B16-10 Steps for filing of GSTR-1: Pl. refer Para A of the Annexure of 16.7.5 this Chapter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B16-10 16.7.6 Can the taxable person submit the GSTR-1 details before the due date?.B16-10 16.7.7 Whether value for each transaction will be fed? What shall be the value if there is no consideration?. . . . . . . . . . . . . . . . . . . . . . . . . . . . B16-10 16.7.8 Rectification of return. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B16-10 16.7.9 Information availability to Recipients . . . . . . . . . . . . . . . . . . . . . . . . . . . B16-11 16.7.10 Corrections by Recipients & Acceptance. . . . . . . . . . . . . . . . . . . . . . . . . B16-11 Returns for inward supplies [GSTR–2]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B16-11 16.8.1 Process flow of form GSTR-2 unless extended . . . . . . . . . . . . . . . . . . . . B16-11 Persons liable to furnish GSTR-2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B16-12 16.8.2 16.8.3 Components of form GSTR-2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B16-12 16.8.4 Corrections by Recipients & Acceptance. . . . . . . . . . . . . . . . . . . . . . . . . B16-14 16.8.5 Input tax credit claim . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B16-14 16.8.6 Inputs/Capital goods received from Overseas or from SEZ units . . . . . . B16-14 16.8.7 Stating HSN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B16-15 16.8.8 Inward supplies from unregistered suppliers [Section 9(4) of the GST Act/5(4) of the IGST Act]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B16-15 16.8.9 Rectification of return. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B16-15 16.8.10 Furnishing of GSTR-3 after furnishing of GSTR-3B. . . . . . . . . . . . . . . . B16-15 16.8.11 Steps for filing of GSTR-2: Please refer Para B of the Annexure of this Chapter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B16-16 Monthly Return [GSTR – 3] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B16-16 16.9.1 Persons liable to furnish GSTR-3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B16-16 16.9.2 Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B16-16 16.9.3 Structure of monthly return and steps for filing of GSTR-3. . . . . . . . . . . B16-16 16.9.4 Others. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B16-16 Simple Monthly return [GSTR – 3B] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B16-18 16.10.1 Simple monthly return (GSTR-3B) for the months July 2017 to June 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B16-18 16.10.2 Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B16-20 Quarterly return by composition taxpayers [GSTR–4]. . . . . . . . . . . . . . . . . . . . . . . B16-21 16.11.1 Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B16-21 16.11.2 Others. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B16-21 Non-resident foreign taxpayer [GSTR–5]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B16-23

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16.12.1 Meaning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.12.2 Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.12.3 Due date and form of return. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.12.4 Others. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.12A Person providing OIDAR Services [GSTR–5A]. . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.12A.1 Obligations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.12A.2 Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.12A.3 Payment of tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ISD Return [GSTR–6]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.13 16.13.1 Meaning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.13.2 Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.13.3 Others. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.14 TDS Return [GSTR – 7] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.14.1 Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.14.2 Return submission and TDS certificate. . . . . . . . . . . . . . . . . . . . . . . . . . . 16.14.3 Whether TDS certificates are to be uploaded?. . . . . . . . . . . . . . . . . . . . . 16.14.4 Others. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.15 Return by e-commerce operator (ECO) [GSTR–8]. . . . . . . . . . . . . . . . . . . . . . . . . . 16.15.1 Requirement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.15.2 Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.15.3 Others. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.16 Inward supplies details by persons having UIN [GSTR–11]. . . . . . . . . . . . . . . . . . . 16.16.1 Return submission. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.16.2 Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.16.3 Others. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.17 Annual Return [GSTR–9] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.17.1 Liability to submit annual return. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.17.2 Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.18 Annual return for composition taxpayers [GSTR–9A]. . . . . . . . . . . . . . . . . . . . . . . 16.19 Annual statement for e-commerce operator [GSTR–9B] . . . . . . . . . . . . . . . . . . . . . 16.20 Acknowledgement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.21 ITC (Input tax credit) eligibility & matching . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.21.1 Provisional eligibility of ITC [Sec 41]. . . . . . . . . . . . . . . . . . . . . . . . . . . 16.21.2 Matching of ITC [Sec 42]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.21.3 Illustration [Section 42] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.21.4 Matching, reversal and reclaim of reduction in output tax liability [Section 43 read with Rule 73]. . . . . . . . . . . . . . . . . . . . . . . . . . 16.21.5 Matching process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.22 Revision of return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.23 Non-filers, late filers & short filers of returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.23.1 Non-filers & late return filers [Section 46]. . . . . . . . . . . . . . . . . . . . . . . . 16.23.2 Short filers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . First return. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.24

B16-23 B16-24 B16-24 B16-24 B16-25 B16-25 B16-25 B16-25 B16-26 B16-26 B16-26 B16-26 B16-27 B16-27 B16-27 B16-28 B16-28 B16-28 B16-28 B16-29 B16-29 B16-29 B16-29 B16-30 B16-30 B16-30 B16-30 B16-31 B16-32 B16-32 B16-33 B16-33 B16-33 B16-33 B16-35 B16-36 B16-36 B16-37 B16-38 B16-38 B16-38 B16-38 xxxiii

GST Guide with Ready Reckoner, 4e

16.25 16.26 16.27 16.28

Final return. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Late fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Extension of filing dates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Methods of uploading the returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.28.1 How the returns can be uploaded? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.28.2 Whether scanned copies of invoices are to be uploaded along with returns?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.29 Signing of returns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rectification of common errors/mistakes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.30 16.31 FAQs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B16-39 B16-39 B16-40 B16-40 B16-40 B16-41 B16-41 B16-41 B16-51

Chapter B17 Payment of tax and Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B17-1 17.1 Broad features . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B17-1 17.2 Nature of taxes to be paid under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B17-1 17.3 Who is liable for payment of GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B17-2 17.4 Methods of payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B17-2 17.5 Modes of payment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B17-6 17.6 Payment of GST - Other points. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B17-7 17.6.1 Sequence of discharge of dues [Section 49(8)]. . . . . . . . . . . . . . . . . . . . . . B17-7 17.6.2 Is pre-registration of credit card necessary in the GSTN portal for the GST payment?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B17-7 17.6.3 Payment of tax in installments [Section 80 read with Rule 158 of GST Rules]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B17-7 17.6.4 Identification number for each transaction [Rule 88]. . . . . . . . . . . . . . . . . B17-8 17.6.5 Date of deposit of the tax dues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B17-8 17.6.6 Can payment of Over the Counter (OTC) exceed INR 10,000/-? . . . . . . . B17-8 17.6.7 Whether mandate form needs to be generated for payment by way of NEFT/RTGS? [Rule 87(5) of the GST Rules] . . . . . . . . . . . . . . . . B17-9 17.7 Role of the banks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B17-9 17.7.1 What is role of banks in the GST regime? . . . . . . . . . . . . . . . . . . . . . . . . . B17-9 17.7.2 What is an E-FPB?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B17-9 17.8 Basic features of challans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B17-10 17.8.1 Who can generate challans?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B17-10 17.8.2 Process of generation of challans [Rule 87 of the GST Rules]. . . . . . . . . B17-10 17.8.3 Challan identification number (CIN) and its relevance . . . . . . . . . . . . . . B17-11 17.8.4 What would happen if payment is made but CIN is not generated? [Rule 87(8) of the GST Rules]. . . . . . . . . . . . . . . . . . . . . . . . B17-11 17.9 Tax wrongly deposited – IGST v CGST/SGST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . B17-11 17.9.1 From inter-state supply to intra-state supply. . . . . . . . . . . . . . . . . . . . . . B17-11 17.9.2 From intra-state supply to inter-state supply. . . . . . . . . . . . . . . . . . . . . . B17-12 17.10 FAQs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B17-12 17.11 GST payment formats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B17-13 17.12 Interest under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B17-13

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Chapter B18 Tax deduction at source . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.1 Tax deduction at source (TDS) [Section 51]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.2 Who is required to deduct TDS?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.3 Rate of TDS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.4 When to deduct TDS? Is there any threshold limit? . . . . . . . . . . . . . . . . . . . . . . . . . . 18.5 Which goods or services are covered?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.6 Obligations or responsibilities of the deductor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.7 Procedure for TDS registration or cancellation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.7.1 Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.7.2 Cancellation [Rule 22 of the GST Rules]. . . . . . . . . . . . . . . . . . . . . . . . . . 18.8 Amendment of TDS Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.8.1 Circumstances for amendment of registration . . . . . . . . . . . . . . . . . . . . . . 18.8.2 Procedure for amendment of registration. . . . . . . . . . . . . . . . . . . . . . . . . . 18.9 How will the amount of TDS be utilized by the supplier?. . . . . . . . . . . . . . . . . . . . . 18.10 What would happen if there is excess or erroneous deduction? [Sec 51(8) of the GST Act] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.11 Penalties on deductor for various defaults. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.12 Transitional provisions in respect of TDS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B18-1 B18-1 B18-1 B18-2 B18-2 B18-3 B18-3 B18-4 B18-4 B18-4 B18-5 B18-5 B18-5 B18-6 B18-7 B18-7 B18-7

Chapter B19 Refund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B19-1 19.1 Refund - Features. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B19-1 19.1.1 Meaning of refund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B19-1 19.1.2 Grounds of refund and the appropriate form . . . . . . . . . . . . . . . . . . . . . . . B19-1 19.1.3 Time Limit for claiming refund [Section 54(1), (2), (3)]. . . . . . . . . . . . . . B19-2 19.1.4 Refund of unutilized input tax credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B19-2 19.1.5 Furnishing of documentary evidence to claim refund [Section 54(4)]. . . . B19-3 19.1.6 Refund less than INR 1,000/- [Section 54(14)] . . . . . . . . . . . . . . . . . . . . . B19-3 19.1.7 Refund of taxes paid under existing laws. . . . . . . . . . . . . . . . . . . . . . . . . . B19-3 19.1.8 Manual filing of refund application and processing (Rule 97A) . . . . . . . . B19-4 19.2 Refund due to inverted tax structure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B19-4 19.2.1 Persons entitled for refund [Section 54(3)(a)] . . . . . . . . . . . . . . . . . . . . . . B19-4 19.2.2 Determination of amount of refund [Rule 89(5)]. . . . . . . . . . . . . . . . . . . . B19-7 19.2.3 Procedure for claiming refund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B19-8 19.2.4 Time limit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B19-9 19.2.5 Manner of allowing refund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B19-9 19.2.6 Disposal of refund application: Refer Para 19.13 to 19.15. . . . . . . . . . . . . B19-9 19.3 Refund to Exporters of goods and/or services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B19-10 19.3.1 Export of goods and services - Zero-rated supply . . . . . . . . . . . . . . . . . . B19-10 Two options are available to such persons. . . . . . . . . . . . . . . . . . . . . . . . B19-10 19.3.2 19.3.3 Rate of exchange. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B19-11 19.3.4 Circumstances - Exporters not eligible for refund of unutilised ITC. . . . B19-11 19.3.5 Provisional refund to zero-rated supply of goods or services. . . . . . . . . . B19-12 19.3.6 Refund of IGST - Export of goods after payment of IGST (Rule 96) . . . B19-13

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19.4

19.5

19.6

19.7

19.8

19.9 19.10

xxxvi

19.3.6.1 Instruction No.15/2017-Customs dated 09.10.2017 . . . . . . . . 19.3.6.2 Circular No. 42/2017-Customs dated 7.11.2017. . . . . . . . . . . 19.3.7 Refund of IGST - Export of services after payment of IGST (Rule 96) . . . . 19.3.8 Refund of input tax credit - Export of goods/services against Bond or Letter of Undertaking. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.3.9 Eligibility date and Limitation period. . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.3.10 Disposal of refund application: Refer Para 19.13 to 19.15 and Annexure to this chapter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Refund related to supply to SEZ developer/SEZ unit. . . . . . . . . . . . . . . . . . . . . . . . 19.4.1 Supply to SEZ unit/developer - Zero-rated supply. . . . . . . . . . . . . . . . . . 19.4.2 Furnishing of bond or letter of undertaking. . . . . . . . . . . . . . . . . . . . . . . 19.4.3 Filing of application for refund along with documents . . . . . . . . . . . . . . 19.4.4 Determination of amount of refund [Rule 89(4)]. . . . . . . . . . . . . . . . . . . 19.4.5 Time limit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.4.6 Disposal of refund application: Refer Para 19.13 to 19.15 and Annexure to this chapter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Refund in case of deemed export of goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.5.1 Meaning of deemed export. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.5.2 Filing of application along with documents to claim refund . . . . . . . . . . 19.5.3 Eligibility date and Limitation period. . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.5.4 Disposal of refund application: Refer Para 19.13 to 19.15. . . . . . . . . . . . Refund to United Nation organisations, embassies, diplomats, and other persons notified under sec 55. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.6.1 Entitlement of claiming refund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.6.2 Submission of returns [Section 25(9) read with Rule 82]. . . . . . . . . . . . 19.6.2A No mention of UINs on Invoices - A one-time waiver . . . . . . . . . . . . . . 19.6.3 Procedure of claiming refund [Rule 95]. . . . . . . . . . . . . . . . . . . . . . . . . . 19.6.4 Time limit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.6.5 Passing of refund order and settlement of funds. . . . . . . . . . . . . . . . . . . . 19.6.6 Benefits for Diplomatic Missions/UN organizations. . . . . . . . . . . . . . . . Refund to casual or non-resident taxable persons. . . . . . . . . . . . . . . . . . . . . . . . . . . 19.7.1 Procedure of claiming refund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.7.2 Disposal of refund application: Refer Para 19.13 to 19.15. . . . . . . . . . . . Tax wrongly deposited – IGST v CGST/SGST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.8.1 Circumstances arising refund – Tax wrongly paid. . . . . . . . . . . . . . . . . . 19.8.2 Filing of application to claim refund . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.8.3 Eligibility date and Limitation period. . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.8.4 Disposal of refund application: Refer Para 19.13 to 19.15. . . . . . . . . . . . Refund of IGST paid on supply of goods to outbound tourist. . . . . . . . . . . . . . . . . . Other refunds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.10.1 Nature of refunds and application and documents to be submitted . . . . . 19.10.2 Eligibility date and Limitation period. . . . . . . . . . . . . . . . . . . . . . . . . . . .

B19-14 B19-17 B19-18 B19-20 B19-28 B19-29 B19-29 B19-29 B19-29 B19-29 B19-31 B19-31 B19-31 B19-31 B19-31 B19-32 B19-35 B19-35 B19-35 B19-35 B19-35 B19-36 B19-36 B19-37 B19-38 B19-38 B19-38 B19-38 B19-39 B19-39 B19-39 B19-39 B19-40 B19-40 B19-40 B19-40 B19-40 B19-41

19.11

Table of contents – Volume 1

Self-declaration or Certificate by the Chartered Accountant or the Cost Accountant. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.12 Disposal of refund application. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.12.1 Acknowledgement of refund claim application (Rule 90). . . . . . . . . . . . 19.12.2 Time limit for disposal of refund claim . . . . . . . . . . . . . . . . . . . . . . . . . . 19.12.3 Order sanctioning refund [Section 54(5) read with Rule 92, 93]. . . . . . . 19.12.4 No refund order except as per Sec 54(8) . . . . . . . . . . . . . . . . . . . . . . . . . 19.13 Withhold/Deduct the refund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Interest on delayed refund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.14 19.15 Proper Officer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.16 Consumer welfare fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.16.1 Circumstances when amount of refund shall be credited to the Consumer Welfare Fund, and to be paid to the applicant. . . . . . . . . . . . . 19.16.2 Utilization from the Consumer Welfare Fund [Rule 97] . . . . . . . . . . . . . 19.17 FAQs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.18 GST refund formats. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B19-42 B19-43 B19-43 B19-44 B19-44 B19-45 B19-45 B19-46 B19-47 B19-47 B19-47 B19-48 B19-52 B19-52

Chapter B20 Invoice, Accounts and Records. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B20-1 20.1 Tax invoice and its contents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B20-1 20.1.1 What is the tax invoice?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B20-1 20.1.2 Tax invoice v. bill of supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B20-1 20.1.3 Contents of tax invoice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B20-2 20.1.4 Indication of amount of tax on the tax invoice [Section 33]. . . . . . . . . . . . B20-3 20.1.5 Time of issuance of tax invoice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B20-4 20.1.6 Time and manner of issue of revised invoice. . . . . . . . . . . . . . . . . . . . . . . B20-7 20.1.7 Contents of the revised invoice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B20-7 20.1.8 Issuance of invoice & payment voucher in case of reverse charge [Sec 31(3)(f), (g) read with rule 52] . . . . . . . . . . . . . . . . . . . . . . . . B20-8 20.1.9 Whether issuance of tax invoice is mandatory even for petty amount?. . . . . . B20-9 20.1.10 Manner of issuance of tax invoice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B20-9 20.2 Bill of supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B20-10 20.2.1 Who is required to issue bill of supply and under what circumstances?. . . . B20-10 20.2.2 Contents of bill of supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B20-10 20.2.3 Whether issuance of bill of supply is mandatory even for petty amount?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B20-11 20.2A Invoice cum Bill of supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B20-11 20.3 Receipt voucher in case of advance collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B20-12 20.4 Delivery Challan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B20-13 20.5 Credit and debit notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B20-14 20.5.1 Circumstances when a debit note or credit note is issued. . . . . . . . . . . . . B20-14 20.5.2 Time limit of declaration of credit/debit note in the return [Section 34(2), (4)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B20-15 20.5.3 Contents of a debit or credit note. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B20-16

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20.6 20.7 20.8 20.9 20.10 20.11

20.12 20.13

20.14 20.15 20.16

Tax invoice in case of input service distributor (ISD). . . . . . . . . . . . . . . . . . . . . . . . Tax invoice in case of banks, financial institution & NBFC. . . . . . . . . . . . . . . . . . . Tax invoice in case of goods transport agency (GTA). . . . . . . . . . . . . . . . . . . . . . . . Tax invoice in case of passenger transportation service . . . . . . . . . . . . . . . . . . . . . . Prohibition of unauthorised collection of tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Accounts and records - maintenance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.11.1 Nature of accounts, records and documents to be maintained. . . . . . . . . 20.11.2 Where to keep and/or maintain accounts and records . . . . . . . . . . . . . . . 20.11.3 How to maintain accounts and records. . . . . . . . . . . . . . . . . . . . . . . . . . . 20.11.4 Obligations of registered persons towards the Proper Officer . . . . . . . . . Generation and maintenance of electronic records. . . . . . . . . . . . . . . . . . . . . . . . . . Accounts and records by custodian of goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.13.1 Owner or operator of warehouse or godown or transporter. . . . . . . . . . . 20.13.2 Records by a person having custody over goods [Rule 56(17)]. . . . . . . . Audit of accounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Accounts and records - retention. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FAQ by CBEC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B20-16 B20-18 B20-18 B20-18 B20-19 B20-19 B20-19 B20-23 B20-24 B20-24 B20-25 B20-26 B20-26 B20-27 B20-27 B20-28 B20-28

Chapter B21 Assessment, audit & determination of tax . . . . . . . . . . . . . . . . . . . . . . . . . B21-1 21.1 Self-assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B21-1 21.2 Provisional assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B21-2 21.2.1 Procedure of provisional assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B21-2 21.2.2 Finalization of provisional assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . B21-3 21.2.3 Liability of interest at the time of final assessment. . . . . . . . . . . . . . . . . . . B21-3 21.2.4 Release of security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B21-4 21.3 Scrutiny of returns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B21-4 21.4 Assessment of non-filers of returns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B21-5 21.5 Assessment of unregistered persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B21-5 21.6 Summary assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B21-6 21.6.1 Circumstances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B21-6 21.6.2 Order of summary assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B21-6 21.6.3 Withdrawal of summary assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B21-6 21.7 Audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B21-7 21.7.1 Meaning of the term ‘audit’ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B21-7 21.7.2 Order to conduct audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B21-7 21.7.3 Finalization and proceedings of audit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . B21-8 21.8 Determination of tax short/not paid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B21-9 21.8.1 Specific provisions for determination of tax. . . . . . . . . . . . . . . . . . . . . . . . B21-9 21.8.2 General provisions for determination of tax [Section 75] . . . . . . . . . . . . B21-11 21.9 Eligibility of ITC to the Recipient on additional demand. . . . . . . . . . . . . . . . . . . . . B21-12 21.10 Special Audit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B21-13 21.10.1 Direction for special audit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B21-13 21.10.2 Who shall conduct special audit and fee & expenses. . . . . . . . . . . . . . . . B21-14

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21.10.3 21.10.4

Finalization and Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B21-14 Proceeding by proper officer based upon report. . . . . . . . . . . . . . . . . . . . B21-14

Chapter B22 Collection of tax & Recovery and Liability in certain cases . . . . . . . . . . B22-1 Tax collected but not paid to the government. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B22-1 22.1 22.2 Tax wrongfully collected and paid to government. . . . . . . . . . . . . . . . . . . . . . . . . . . B22-2 Recovery proceedings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B22-2 22.3 22.3.1 Initiation of recovery proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B22-2 22.3.2 Modes of recovery of tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B22-2 22.3.3 Recovery by sale of goods under the control of proper officer [Rule 144]. . . B22-5 22.3.4 Recovery by sale of movable and immovable property [Rule 147]. . . . . . B22-5 22.3.5 Disposal of proceeds of sale of goods and movable or immovable property [Rule 154]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B22-7 22.4 Payment of tax and other amount in instalments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . B22-8 22.5 Transfer of property to be void in certain cases. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B22-8 22.6 Tax to be first charge on property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B22-9 22.7 Attachment in certain cases. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B22-9 22.7.1 Provisional Attachment [Sec 83 read with Rule 159]. . . . . . . . . . . . . . . . . B22-9 22.7.2 Attachment of debts and shares, etc. [Rule 151] . . . . . . . . . . . . . . . . . . . B22-10 22.7.3 Attachment of property in custody of courts or Public Officer [Rule 152]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B22-10 22.7.4 Attachment of interest in partnership [Rule 153]. . . . . . . . . . . . . . . . . . . B22-11 22.8 Continuation and validation of certain recovery proceedings. . . . . . . . . . . . . . . . . . B22-11 22.9 Prohibitions upon the officers and facilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B22-12 22.9.1 Prohibition against bidding or purchase by officer [Rule 148]. . . . . . . . . B22-12 22.9.2 Prohibition against sale on holidays [Rule 149]. . . . . . . . . . . . . . . . . . . . B22-12 22.9.3 Assistance by police [Rule 150]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B22-12 22.10 Liability to pay in certain cases. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B22-12 22.10.1 Nature and extent of the liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B22-12 22.10.2 Transfer of business [Section 85]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B22-17 22.10.3 Liability of partners of the firm. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B22-18 22.10.4 Liability of a member in the case of H.U.F.. . . . . . . . . . . . . . . . . . . . . . . B22-18 22.10.5 Discontinuance, dissolution and re-constitution. . . . . . . . . . . . . . . . . . . . B22-18 25.10.6 Liability of a director at the time of recovery proceedings. . . . . . . . . . . . B22-19 25.10.7 Procedure for cancellation of registration in case of death of sole proprietor and transfer of input tax credit. . . . . . . . . . . . . . . . . . . . . . . . . B22-19 Chapter B23 Inspection, search & survey. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.1 Inspection. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.1.1 The appropriate authority to make the inspection. . . . . . . . . . . . . . . . . . . . 23.1.2 Circumstances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.1.3 Powers of the officers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.1.4 No authority to collect cheques at the time of survey. . . . . . . . . . . . . . . . . 23.1.5 Reason to believe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B23-1 B23-1 B23-1 B23-2 B23-2 B23-2 B23-3 xxxix

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23.2

23.3

23.4 23.5 23.6

23.7 23.8 23.9

Access to business premises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B23-4 23.2.1 The appropriate authority to access to business premises . . . . . . . . . . . . . B23-4 23.2.2 Powers of the officers and circumstances. . . . . . . . . . . . . . . . . . . . . . . . . . B23-4 23.2.3 Obligations and duties of person in charge of business premises. . . . . . . . B23-4 Search and seizure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B23-4 23.3.1 The appropriate authority to authorize search & seizure . . . . . . . . . . . . . . B23-4 23.3.2 Circumstances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B23-5 23.3.3 Period for retention of documents or books. . . . . . . . . . . . . . . . . . . . . . . . B23-5 Procedure to be followed at the time of seizure. . . . . . . . . . . . . . . . . . . . . B23-5 23.3.4 23.3.5 Powers of the proper officer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B23-6 23.3.6 Rights of the person- To take copies of documents seized. . . . . . . . . . . . . B23-6 23.3.7 Release of goods on provisional basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . B23-6 23.3.8 Release of perishable or hazardous nature goods [Rule 141]. . . . . . . . . . . B23-7 23.3.9 Return of goods where no notice is served. . . . . . . . . . . . . . . . . . . . . . . . . B23-7 23.3.10 Disposal of goods in specified circumstances. . . . . . . . . . . . . . . . . . . . . . . B23-7 23.3.11 Making of inventory of the seized goods. . . . . . . . . . . . . . . . . . . . . . . . . . B23-7 23.3.12 Applicability of the Code of Criminal Procedure. . . . . . . . . . . . . . . . . . . . B23-7 23.3.13 Validity of documents seized during illegal search. . . . . . . . . . . . . . . . . . . B23-8 Inspection of goods in movement & validation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B23-8 Powers to summon to produce documents/things. . . . . . . . . . . . . . . . . . . . . . . . . . . . B23-8 Powers to arrest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B23-9 23.6.1 Power of arrest– Circumstances and quantum of punishment. . . . . . . . . . B23-9 23.6.2 Appearance before the magistrate within 24 hours. . . . . . . . . . . . . . . . . . B23-10 23.6.3 Applicability of the provisions of the Code of Criminal Procedure. . . . . B23-10 Officers of other Departments to assist proper officer. . . . . . . . . . . . . . . . . . . . . . . . B23-10 Powers to make sample purchases. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B23-11 Applicability of CGST provisions to IGST Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . B23-11

Chapter B24 Inspection of Goods in Movement, Confiscation and E-way Bill . . . . . B24-1 24.1 Inspection of goods in movement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B24-1 24.2 E-way bill – Generation, Validity and Cancellation. . . . . . . . . . . . . . . . . . . . . . . . . . B24-1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B24-7 24.2.1 Person responsible for furnishing of information and generation of e-way bill [Rule 138(1) of the GST Rules] . . . . . . . . . . . . . . . . . . . . . . B24-9 24.2.2 E-Way bill to be issued – Movement by way of supply or otherwise . . . B24-10 24.2.3 Value of consignment for mandatory generation of e-way bill – Threshold limit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B24-10 24.2.4 Mode of conveyance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B24-11 24.2.5 How to furnish of information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B24-12 24.2.6 Is e-way bill required when the goods are supplied by an unregistered supplier?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B24-12 24.2.7 Exemption from generation of e-way bill [Rule 138(14)] . . . . . . . . . . . . B24-12

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24.2.8

24.3

24.4 24.5

24.6

Manner of generation of e-way bill – Movement by railways or air or vessel [Rule 138(2A)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24.2.9 Manner of generation of e-way bill – Movement by Road [Rule 138(2), (3)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24.2.10 Generation of e-way bill by the e-commerce operator or courier. . . . . . . 24.2.11 Transferring goods from one conveyance to another [Rule 138(5)]. . . . . 24.2.12 Assignment of e-way bill [Rule 138(5A)] . . . . . . . . . . . . . . . . . . . . . . . . 24.2.13 Generation of consolidated e-way bill by transporter and where aggregate value of goods in a conveyance exceeds INR 50,000/-. . . . . . 24.2.14 Generation of e-way bill by the transporter - When. . . . . . . . . . . . . . . . . 24.2.15 Acceptance of details in e-way bill [Rule 138(11), (12)]. . . . . . . . . . . . . 24.2.16 Optional generation of e-way bill [I & II proviso to Rule 138(3)]. . . . . . 24.2.17 Validity period of e-way bill [Rule 138(10)] . . . . . . . . . . . . . . . . . . . . . . 24.2.18 Cancellation of e-way bill [Rule 138(9)] . . . . . . . . . . . . . . . . . . . . . . . . . 24.2.19 Use of information furnished in Part A of e-way bill [Rule 138(8)]. . . . . 24.2.20 e-Way Bill in case of “Bill To Ship To” transaction. . . . . . . . . . . . . . . . . 24.2.21 Penalty for non-compliance of e-way bill provisions. . . . . . . . . . . . . . . . 24.2.22 Important e-way bill FAQ released by the CBEC on 31 March 2018. . . . . Obligations of person-in-charge of a conveyance or Transporter – To carry e-way bill, documents and other devices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24.3.1 Generation of e-way bill by the transporter – Please refer Para No. 24.2.10 of this chapter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24.3.2 Documents to be carried by the person in charge of conveyance – Rule 138A(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24.3.3 Invoice reference number in lieu of tax invoice – Rule 138A(2) & (3). . . . . 24.3.4 Carrying of other documents instead of e-way bill – Rule 138A(5). . . . . 24.3.5 Obtain a unique RFID and embedding it on to conveyance – Rule 138A(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Verification of documents and conveyances [Rule 138B]. . . . . . . . . . . . . . . . . . . . . Inspection and verification of goods and detention of vehicle . . . . . . . . . . . . . . . . . 24.5.1 Obtain a unique RFID and it embedded on to conveyance – Rule 138C . . . 24.5.2 Facility for uploading information regarding detention of vehicle [Rule 138D]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Confiscation of goods and/or conveyances and fine . . . . . . . . . . . . . . . . . . . . . . . . . 24.6.1 Detention, seizure and release of goods and conveyances in transit [Sec 129 of the GST Act]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24.6.2 Circumstances when goods and/or conveyances can be confiscated [Section 130 of the GST Act]. . . . . . . . . . . . . . . . . . . . . . . . . 24.6.3 Is there any penalty in addition to confiscation of goods?. . . . . . . . . . . . 24.6.4 Can confiscation be avoided by paying any fine or compounding amount?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B24-13 B24-14 B24-15 B24-15 B24-15 B24-15 B24-16 B24-17 B24-18 B24-18 B24-19 B24-19 B24-19 B24-20 B24-21 B24-41 B24-41 B24-41 B24-41 B24-42 B24-42 B24-42 B24-42 B24-42 B24-43 B24-43 B24-43 B24-44 B24-44 B24-45

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Procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B24-45 Appendix A – Handicraft Goods [Para 24.2.3] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B24-50 Appendix B – Exempted Goods [Rule 138(14)] [Para 24.2.6]. . . . . . . . . . . . . . . . . . . . . . . . . . B24-51 Chapter B25 Penalties and Prosecution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B25-1 Penalties under the GST Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B25-1 25.1 25.1.1 Defaults and amount of penalty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B25-2 25.1.2 General disciplines related to penalty [Section 126] . . . . . . . . . . . . . . . . . B25-7 Interpretation of law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B25-12 Mistake of the counsel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B25-13 New Enactment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B25-13 Ignorance of law – Whether excusable. . . . . . . . . . . . . . . . . . . . . . . . . . . B25-13 Other reasonable causes:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B25-14 25.1.3 Power to impose penalty in certain cases [Section 127]. . . . . . . . . . . . . . B25-16 25.1.4 Power to waive penalty or fee or both [Section 128]. . . . . . . . . . . . . . . . B25-16 25.2 Offences under the GST Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B25-16 25.2.1 Offences and the punishment/fine. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B25-16 25.2.2 Liability of officers and certain other persons [Section 133]. . . . . . . . . . B25-18 25.2.3 Cognizance of offences [Section 134] . . . . . . . . . . . . . . . . . . . . . . . . . . . B25-19 25.2.4 Presumption of culpable mental state [Section 135]. . . . . . . . . . . . . . . . . B25-19 25.2.5 Relevancy of statements under certain circumstances [Section 136]. . . . B25-19 25.2.6 Offences by companies, firms, etc [Section 137]. . . . . . . . . . . . . . . . . . . B25-19 25.2.7 Compounding of offences [Section 138] . . . . . . . . . . . . . . . . . . . . . . . . . B25-20 Chapter B26 Appeal, Advance Ruling and Anti-profiteering Provisions . . . . . . . . . . B26-1 26.1 Appeals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B26-1 26.1.1 Nature and scope of the Appellate Authorities under the GST Act . . . . . . B26-1 Condition for filing of appeal – Pre-deposit. . . . . . . . . . . . . . . . . . . . . . . . B26-4 26.1.2 26.1.3 No right of appeal or non-appealable decisions and orders. . . . . . . . . . . . B26-5 26.1.3A Appointment of Appellate Authority [Rule 109A of the GST Rules]. . . . . B26-5 26.1.4 Disposal of appeal by the Appellate Authority [Section 107]. . . . . . . . . . . B26-6 26.1.5 Revisional Authority [Section 108] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B26-7 26.1.6 Constitution of Appellate Tribunal and Benches thereof [Section 109]. . . B26-8 26.1.7 Disposal of appeal by the Appellate Tribunal [Section 113] . . . . . . . . . . . B26-9 26.1.8 Appeal to the High Court [Section 117]. . . . . . . . . . . . . . . . . . . . . . . . . . B26-10 26.1.9 Appeal to the Supreme Court [Section 118]. . . . . . . . . . . . . . . . . . . . . . . B26-10 26.2 Advance ruling. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B26-10 26.2.1 Nature and scope of the Advance Ruling Authority. . . . . . . . . . . . . . . . . B26-11 26.2.2 Questions to be referred to the Advance Ruling Authority. . . . . . . . . . . . B26-11 26.2.3 Application to the Advance Ruling Authority [Rule 104] . . . . . . . . . . . . B26-12 Manual filing and processing [Rule 107A]. . . . . . . . . . . . . . . . . . . . . . . . B26-12 26.2.4 To whom Ruling Authority is binding [Section 103]. . . . . . . . . . . . . . . . B26-12 xlii

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26.2.5 26.2.6

26.3

Procedure on receipt of application and disposal [Section 98]. . . . . . . . . Time limit of filing and disposal of appeal by the applicant or the GST Officer [Section 100 & 101 read with Rule 106]. . . . . . . . . . . . 26.2.7 Orders of Appellate Authority [Section 101] . . . . . . . . . . . . . . . . . . . . . . 26.2.8 Rectification of advance ruling [Section 102] . . . . . . . . . . . . . . . . . . . . . 26.2.9 Powers of Authority and Appellate Authority [Section 105] . . . . . . . . . . 26.2.10 Manual filing of applications for Advance Ruling and appeals before Appellate Authority [Circular No. 25/25/2017 dated 21 Dec. 2017]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Anti-profiteering measure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B26-12 B26-13 B26-14 B26-14 B26-14

B26-15 B26-17

Chapter B27 Transitional Provisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27.1 Existing taxpayers- registration on the appointed day under the Central and the State Acts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27.1.1 Liability for registration of existing registered persons in GST. . . . . . . . . 27.1.2 Format of GST Registration Number [Rule 10(1)]. . . . . . . . . . . . . . . . . . . 27.1.3 Points/Issues regarding migration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27.1.4 Information and documents required to enroll with GST. . . . . . . . . . . . . . 27.1.5 Procedure of migration of registration to GST [Rule 24]. . . . . . . . . . . . . . 27.2 Eligibility of unutilized/unavailed input tax credit . . . . . . . . . . . . . . . . . . . . . . . . . . .

B27-1 B27-1 B27-1 B27-2 B27-2 B27-3 B27-3 B27-5

PART A - Central GST Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B27-5 27.2A.1 Carried over amount of Cenvat in the returns on the appointed day– Section 140(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B27-5 27.2A.2 Unavailed Cenvat on capital goods on the appointed day– Section 140(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B27-8 27.2A.3 Unavailed Cenvat on inputs held in stock on the appointed day– [Section 140(3)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B27-9 27.2A.4 Unavailed/Unclaimed CENVAT on inputs held in stock on the appointed day– Section 140(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B27-14 27.2A.5 Inputs/Input services received after the appointed day (In transit) – Section 140(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B27-16 27.2A.6 Paying tax at fixed rate/amount under the existing law and paying GST under regular scheme– Section 140(6). . . . . . . . . . . . . . . . . B27-18 27.2A.7 Distribution of Cenvat by input service distributor (ISD) – Section 140(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B27-19 27.2A.8 Transfer of unutilized credit by taxable person having centralized registration – Section 140(8) . . . . . . . . . . . . . . . . . . . . . . . . . B27-20 27.2A.9 Availing Cenvat Credit in certain cases - Section 140(9). . . . . . . . . . . . . B27-21 27.2A.10 Carry forward or availing wrong Cenvat Credit - Recovery . . . . . . . . . . B27-22 PART B − State GST Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B27-25 27.2B.1 Carried over amount of input tax credit in the returns on the appointed day – Section 140(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B27-25

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27.3

27.2B.2 Unavailed VAT on capital goods on the appointed day – Section 140(2).B27-27 27.2B.3 Unavailed VAT on inputs held in stock on the appointed day – Section 140(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B27-28 27.2B.4 Unavailed/Unclaimed ITC on inputs held in stock on the appointed day – Section 140(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B27-30 27.2B.5 Inputs received after the appointed day (In transit) – Section 140(5). . . . B27-31 27.2B.6 Paying tax under composition scheme on appointed day and paying GST under regular scheme – Section 140(6) . . . . . . . . . . . . . . . . B27-32 27.2B.7 Input tax credit reversed prior to the appointed day – Section 142(5). . . B27-33 27.2B.8 Tax paid on goods or capital goods lying with agents as on the appointed day to be allowed as credit – Section 142(14). . . . . . . . . . . . . B27-33 27.2A.9 Carry forward or availing wrong Input Tax Credit - Recovery . . . . . . . . B27-34 Output Tax, Revision of Returns and Return of Goods. . . . . . . . . . . . . . . . . . . . . . . B27-34 PART A − Central GST Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B27-34 27.3A.1 Return of goods in GST regime - Section 142(1). . . . . . . . . . . . . . . . . . . B27-34 27.3A.2 Revision of price – Supplementary invoice or debit/credit note raised in GST– Section 142(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B27-35 27.3A.3 Treatment of the amount recovered or refunded pursuant to revision of returns– Section 142(9). . . . . . . . . . . . . . . . . . . . . . . . . . . . . B27-35 27.3A.4 Treatment of long term construction/works contracts - Section 142(10).B27-36 27.3A.5 Taxability of supply of goods or services – Section 142(11). . . . . . . . . . B27-36 27.3A.6 Goods sent on approval basis are returned or rejected, on or after appointed day – Section 142(12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B27-38

27.4

xliv

PART B − State GST Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B27-38 27.3B.1 Return of taxable goods in GST regime, which were also taxable in existing law – Section 142(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B27-38 27.3B.2 Revision of price – Supplementary invoice or debit/credit note raised in GST – Section 142(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B27-39 27.3B.3 Treatment of amount recovered or refunded pursuant to revision of returns – Section 142(9). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B27-40 27.3B.4 Treatment of long term construction/works contract – Section 142(10). B27-40 27.3B.5 Taxability of supply of goods or services – Section 142(11). . . . . . . . . . B27-40 27.3B.5.1 Supply of goods – VAT leviable. . . . . . . . . . . . . . . . . . . . . . . B27-40 27.3B.5.2 Supply of services – Service tax leviable . . . . . . . . . . . . . . . . B27-41 27.3B.5.3 Supply of goods and services after the appointed day. . . . . . . B27-41 27.3B.5.4 Transition Rules [Rule 118 of the DGST Rules]. . . . . . . . . . . B27-41 27.3B.6 Goods sent on approval basis are returned or rejected, on or after appointed day – Section 142(12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B27-41 Job work. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B27-42

Table of contents – Volume 1

PART A − Central GST Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27.4A.1 Removal of inputs for job work before the appointed day and return of goods after that day − Section 141(1) . . . . . . . . . . . . . . . . . . . . 27.4A.2 Removal of semi-finished goods for job work before the appointed day and return of goods after that day – Section 141(2) . . . . . 27.4A.3 Removal of finished goods to carry certain processes before the appointed day and return of goods after that day − Section 141(3). . . . .

27.5

PART B − State GST Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27.4B.1 Dispatch of inputs for job work before the appointed day and return of goods after that day − Section 141(1) . . . . . . . . . . . . . . . . . . . . 27.4B.2 Dispatch of semi-finished goods for job work before appointed day and return of goods after that day − Section 141(2). . . . . . . . . . . . . 27.4B.3 Dispatch of finished goods to carry certain processes before the appointed day and return of goods after that day − Section 141(3). . . . . Refund Claims. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PART A − Central GST Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27.5A.1 Disposal of refund claims filed before/on/after the appointed day – Section 142(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27.5A.2 Disposal of refund claims in respect of export – Section 142(4). . . . . . . 27.5A.3 Disposal of refund claims in respect of services not provided – Section 142(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

27.6

PART B − State GST Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27.5B.1 Disposal of refund claims filed before/on/after the appointed day – Section 142(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27.5B.2 Disposal of refund claims in respect of export – Section 142(4). . . . . . . Assessment, adjudication, Appeal, etc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PART A − Central GST Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27.6A.1 Disposal of claims of Cenvat credit filed through appeal, revisions, review, etc. under the existing law– Section 142(6)(a) . . . . . . 27.6A.2 Disposal of recovery of Cenvat credit filed through appeal, revisions, review, etc. under the existing law − Section 142(6)(b). . . . . . 27.6A.3 Finalization of proceedings relating to output duty or tax liability initiated before the appointed day – Section 142(7). . . . . . . . . . 27.6A.4 Treatment of the amount recovered or refunded in pursuance of assessment or adjudication proceedings – Section 142(8). . . . . . . . . . . .

B27-42 B27-42 B27-43 B27-44 B27-44 B27-44 B27-45 B27-46 B27-46 B27-46 B27-46 B27-47 B27-47 B27-47 B27-47 B27-48 B27-48 B27-48 B27-48 B27-49 B27-49 B27-49

PART B − State GST Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B27-50 27.6B.1 Disposal of claims of input tax credit filed through appeal, revisions, review, etc. under the existing law – Section 142(6)(a). . . . . . B27-50 27.6B.2 Disposal of recovery of input tax filed through appeal, revisions, review, etc. under the existing law – Section 142(6)(b). . . . . . . . . . . . . . B27-50

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27.7 27.8 27.9 27.10 27.11

27.6B.3 Disposal of proceedings relating to output tax liability initiated before/on/after the appointed day – Section 142(7). . . . . . . . . . . . . . . . . 27.6B.4 Treatment of the amount recovered or refunded in pursuance of assessment or adjudication proceedings – Section 142(8). . . . . . . . . . . . Deduction of tax at source (TDS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Import of services made on or after the appointed day – Section 21 of IGST Act . . To Conclude. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Authors’ observations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FAQ by the CBEC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B27-50 B27-51 B27-51 B27-51 B27-52 B27-53 B27-54

Chapter B28 Miscellaneous Provisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28.1 GST Practitioner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28.1.1 Eligibility Criteria for becoming GST practitioner [Rule 83(1)]. . . . . . . . 28.1.2 Application for becoming GST practitioner and validity [Rule 83(2), (3)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28.1.3 Authorization by the taxpayer to the GST practitioner. . . . . . . . . . . . . . . . 28.1.4 Activities by GST practitioner [Rule 83(8)]. . . . . . . . . . . . . . . . . . . . . . . . 28.1.5 Authorization by the taxpayer to the GST practitioner. . . . . . . . . . . . . . . . 28.1.6 Responsibility for correctness of particulars:. . . . . . . . . . . . . . . . . . . . . . . 28.2 Appearance by authorised representative [Section 116]. . . . . . . . . . . . . . . . . . . . . . . 28.2.1 Who can be authorised representative . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28.2.2 Disqualifications of an authorised representative. . . . . . . . . . . . . . . . . . . . 28.3 Information returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28.4 Drawal of samples. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28.5 Taking assistance from an expert. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28.6 GST compliance rating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28.7 Publication of information about the persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28.8 Rounding off of taxes, etc. (Section 170) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter B29 GST Network. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29.1 What is GST Network. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29.2 Mandate of GST Network. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29.3 Functions of GST Network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29.4 Services by GST Network. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29.5 Managed service provider (MSP) for GSTN. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29.6 Functions and role of stake-holders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29.7 Taxpayers and GSTN. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29.8 Government authorities and GSTN. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29.9 Others. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29.9.1 Concept of GST eco-system. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29.9.2 Whether information filed on the GST common portal will remain confidential & secure? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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B28-1 B28-1 B28-1 B28-2 B28-2 B28-3 B28-3 B28-3 B28-4 B28-4 B28-5 B28-5 B28-6 B28-6 B28-7 B28-7 B28-7 B29-1 B29-1 B29-2 B29-2 B29-3 B29-3 B29-4 B29-5 B29-5 B29-6 B29-6 B29-6

Table of contents â&#x20AC;&#x201C; Volume 1

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Part A At-A-Glance

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Chapter A1 Chapter A2 Chapter A3 Chapter A4 Chapter A5 Chapter A6 Chapter A7 Chapter A8 Chapter A9 Chapter A10 Chapter A11 Chapter A12 Chapter A13 Chapter A14 Chapter A15

A1-2

Chapter A1

Rates and Exemption Notifications in GST – At-a-glance............................... A1-3 Non-Tariff Notifications in GST – At a glance ................................................ A2-1 Orders issued in GST – At-a-glance................................................................. A3-1 Circular and clarifications in GST –At a glance .............................................. A4-1 GST in India – At-a-glance .............................................................................. A5-1 Compliance chart with limitation periods under GST ...................................... A6-1 GST Transition – Time limits and limitation periods....................................... A7-1 Reverse Charge under GST .............................................................................. A8-1 Returns under GST ........................................................................................... A9-1 Due dates under GST – Extensions ................................................................ A10-1 Non-creditable goods/services and supplies under GST ................................ A11-1 Interest, penalties and offences ...................................................................... A12-1 State Codes ..................................................................................................... A13-1 Port Codes ...................................................................................................... A14-1 GST Forms – At-a-glance .............................................................................. A15-1

Chapter A1

Rates and Exemption Notifications in GST â&#x20AC;&#x201C; At-a-glance

Chapter A1

Rates and Exemption Notifications in GST â&#x20AC;&#x201C; At-a-glance 1.1

Sl. No.

Notification / Date

CGST Act

Contents

01/2017-Central dt. 28.06.2017, 30.06.2017, 12.07.2017, 27.07.2017

02/2017-Central Tax (Rate), dt. 28.06.2017, Corrigendum 12.07.2017, Corrigendum 27.07.2017

Exemptions on supply of goods under CGST Act, absolutely

03/2017-Central Tax (Rate), dt. 28.06.2017

2.5% concessional CGST rate for supplies to Exploration and Production notified under sec 11(1)

04/2017-Central Tax (Rate), dt. 28.06.2017

Reverse charge on certain specified supplies of goods under sec 9(3)

05/2017-Central Tax (Rate), dt. 28.06.2017

Supplies of goods in respect of which no refund of unutilised input tax credit shall be allowed under sec 54(3)

06/2017-Central Tax (Rate), dt. 28.06.2017

Refund of 50% of CGST on supplies to CSD under sec 55

07/2017-Central Tax (Rate), dt. 28.06.2017

Exemption from CGST to supplies by CSD to Unit Run Canteens and supplies by CSD / Unit Run Canteens to authorised customers notified under sec 11(1) and sec 55

08/2017-Central Tax (Rate), dt. 28.06.2017

Exempting supplies, upto INR 5,000/- per day, received by a registered supplier from an unregistered supplier from reverse charge payment under sec 9(4)

Tax (Rate), Corrigendum Corrigendum Corrigendum

Rates of tax on supply of goods under CGST Act

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Chapter A1

Sl. No.

Notification / Date

Contents

09/2017-Central Tax (Rate), dt. 28.06.2017

Exempting supplies received under sec 9(4) by a TDS deductor from an unregistered supplier, under sec 11(1), subject to the condition that TDS deductor is not otherwise liable for registration

10. 10/2017-Central Tax (Rate), dt. 28.06.2017

Exempting supplies of second hand goods received under sec 9(4) by a second hand dealer paying tax under margin scheme from an unregistered supplier, under sec 11(1)

11. 11/2017-Central Tax (Rate), dt. 28.06.2017

Rates of tax on supply of services under CGST Act and Annexure containing Scheme of Classification of Services

12. 12/2017-Central Tax (Rate), dt. 28.06.2017

Exemptions on supply of services under CGST Act

13. 13/2017-Central Tax (Rate), dt. 28.06.2017, Corrigendum 25.09.2017

Categories of services on which tax will be payable under reverse charge mechanism under CGST Act

14. 14/2017-Central Tax (Rate), dt. 28.06.2017

Supplies which shall be treated neither as a supply of goods nor a supply of service under the CGST Act

15. 15/2017-Central Tax (Rate), dt. 28.06.2017

Supplies, which are not eligible for refund of unutilized ITC under CGST Act

16. 16/2017-Central Tax (Rate), dt. 28.06.2017

Specialised agencies (e.g., UN, embassies, etc) entitled to claim a refund of taxes paid on the notified supplies of goods or services or both received by them under CGST Act

17. 17/2017-Central Tax (Rate), dt. 28.06.2017

Categories of services the tax on intra-State supplies of which shall be paid by the electronic commerce operator under sec 9(5)

18. 18/2017-Central Tax (Rate), dt. 30.06.2017

Reduces the CGST rate on supply of fertilisers from 6% to 2.5%

19. 19/2017-Central Tax (Rate), dt. 18.08.2017

Reduces the CGST rate on supply of specified parts of tractors from 14% to 9 %

20. 20/2017-Central Tax (Rate), dt. 22.08.2017

Amends notification No. 11/2017-CT (Rate) to reduce CGST rate on specified supplies of works contract services, job work for textile & textile products, printing service of books, newspapers etc, admission to planetarium, and, also to provide option to GTA & transport of passengers by motorcab service providers to avail full ITC & discharge CGST @ 6%

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Notification / Date

Contents

21. 21/2017-Central Tax (Rate), dt. 22.08.2017

Amends notification No. 12/2017- CT (Rate) 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. 22/2017-Central Tax (Rate), dt. 22.08.2017

Amends notification No. 13/2017-CT (Rate) to amend RCM provisions for GTA and to insert explanation for LLP

23. 23/2017-Central Tax (Rate), dt. 22.08.2017

Amends notification No. 17/2017-CT (Rate) to make ECO responsible under sec 9(5) for payment of GST on services provided by way of house-keeping such as plumbing, carpentering etc.

24. 24/2017-Central Tax (Rate), dt. 21.09.2017

Amends notification No. 11/2017-CT (Rate) to reduce CGST rate on specified supplies of works contract services

25. 25/2017-Central Tax (Rate), dt. 21.09.2017

Amends notification No. 12/2017-CT (Rate) to exempt right to admission service to the events organised under FIFA U-17 World Cup 2017

26. 26/2017-Central Tax (Rate), dt. 21.09.2017

Exempts intra state supply of heavy water and nuclear fuels from Department of Atomic Energy to NPCIL under the CGST Act

27. 27/2017-Central Tax (Rate), dt. 22.09.2017

Amends notification no. 1/2017- CT (Rate) dated 28.06.2017 to give effect to GST council decisions regarding GST rates

28. 28/2017-Central Tax (Rate), dt. 22.09.2017

Amends notification no. 2/2017- CT (Rate) dated 28.06.2017 to give effect to GST council decisions regarding GST exemptions

29. 29/2017-Central Tax (Rate), dt. 22.09.2017

Amends notification no. 5/2017- CT (Rate) dated 28.06.2017 to give effect to GST council decisions regarding restriction of refund on corduroy fabrics under sec 54(3)

30. 30/2017-Central Tax (Rate), dt. 29.09.2017

Amends notification No. 12/2017-CT (Rate) to exempt supply of services associated with transit cargo to Nepal and Bhutan

31. 31/2017-Central Tax (Rate), dt. 13.10.2017

Amends notification No. 11/2017-CT (Rate) to substitute the CGST rate on certain services

32. 32/2017-Central Tax (Rate), dt. 13.10.2017

Amends notification No. 12/2017-CT (Rate) to exempt certain services

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Notification / Date

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Contents

33. 33/2017-Central Tax (Rate), dt. 13.10.2017

Amends notification No. 13/2017-CT (Rate), RCM under sec 9(3), regarding services provided by Overseeing Committee members to RBI

34. 34/2017-Central Tax (Rate), dt. 13.10.2017

Amends notification No. 1/2017- CT (Rate) - Rates of tax on supply of goods under CGST Act

35. 35/2017-Central Tax (Rate), dt. 13.10.2017

Amends notification No. 2/2017-CT (Rate) Exemption on supply of goods under CGST Act

36. 36/2017-Central Tax (Rate), dt. 13.10.2017

Amends notification No. 4/2017-CT (Rate) - RCM under sec 9(3) on supply of goods

37. 37/2017-Central Tax (Rate), dt. 13.10.2017

Prescribes CGST rate on supply or leasing of motor vehicles, purchased or leased before 1 July 2017 – Applicable up to 1 July 2020

38. 38/2017-Central Tax (Rate), dt. 13.10.2017

Exempts payment of tax under sec 9(4) of the CGST Act on all supplies received from unregistered suppliers till 31.03.2018

39. 39/2017-Central Tax (Rate), dt. 18.10.2017

Prescribes CGST rate of 2.5% on Food preparations put up in unit containers and intended for free distribution to economically weaker sections of the society under a programme duly approved by the Central Government or any State Government

40. 40/2017-Central Tax (Rate), dt. 23.10.2017

Prescribes CGST rate of 0.05% on intra-State supply of taxable goods by a registered supplier to a registered recipient for export, subject to conditions

41. 41/2017-Central Tax (Rate), dt. 14.11.2017

Amends notification no. 1/2017- CT (Rate) dated 28.06.2017 – Rates of GST on goods

42. 42/2017-Central Tax (Rate), dt. 14.11.2017

Amends notification no. 2/2017- CT (Rate) dated 28.06.2017 - GST exemptions on goods

43. 43/2017-Central Tax (Rate), dt. 14.11.2017

Amends notification no. 4/2017- CT (Rate) dated 28.06.2017 - Reverse charge on raw cotton

44. 44/2017-Central Tax (Rate), dt. 14.11.2017

Amends notification no. 5/2017- CT (Rate) dated 28.06.2017 - Restriction of ITC on certain fabrics

45. 45/2017-Central Tax (Rate), dt. 14.11.2017

Provides concessional GST rate of 2.5% on scientific and technical equipments supplied to public funded research institutions.

46. 46/2017-Central Tax (Rate), dt. 14.11.2017

Amends notification no. 11/2017-CT (Rate) so as to specify rate @ 2.5% for standalone restaurants and @9% for other restaurants; reduce rate of job work on “handicraft goods” @ 2.5%; and to substitute

A1-6

Chapter A1

Sl. No.

Rates and Exemption Notifications in GST – At-a-glance

Notification / Date

Contents “Services provided” in item (vi) against Sl No. 3 in table.

47. 47/2017-Central Tax (Rate), dt. 14.11.2017

Amends notification no. 12/2017-CT (Rate) so as to extend exemption to admission to “protected monument”; and to consolidate entry at Sl. No. 11A & 11B

48. 01/2018-Central Tax (Rate), dt. 25.01.2018

Amends notification No. 11/2017- CT (Rate) so as to notify CGST rates of various services as recommended by the GST Council in its 25th meeting held on 18.01.2018

49. 02/2018-Central Tax (Rate), dt. 25.01.2018

Amends notification No. 12/2017- CT (Rate) so as to exempt certain services as recommended by the GST Council in its 25th meeting held on 18.01.2018

50. 03/2018-Central Tax (Rate), dt. 25.01.2018

Amends notification No. 13/2017- CT (Rate) so as to specify services supplied by the Central Government, State Government, Union territory or local authority by way of renting of immovable property to a registered person under CGST Act, to be taxed under Reverse Charge Mechanism (RCM)

51. 04/2018-Central Tax (Rate), dt. 25.01.2018

Provides special procedure with respect to payment of tax by registered person supplying service by way of construction against transfer of development right and vice versa

52. 05/2018-Central Tax (Rate), dt. 25.01.2018

Exempts Central Government’s share of Profit Petroleum from Central tax

53. 06/2018-Central Tax (Rate), dt. 25.01.2018

Amends Notification No.1/2017-CT (Rate) dated 28.06.2017

54. 07/2018-Central Tax (Rate), dt. 25.01.2018

Amends Notification No.2/2017-CT (Rate) dated 28.06.2017

55. 08/2018-Central Tax (Rate), dt. 25.01.2018

Concessional rate of CGST on Old and used Vehicles

56. 09/2018-Central Tax (Rate), dt. 25.01.2018

Amends Notification dt. 14.11.2017

57. F.No.354/1/2018-TRU – dt. 01.02.2018

Corrigendum - Notification No. 6/2018-CT (Rate) dt. 25.01.2018

58. 10/2018-Central Tax (Rate), dt. 23.03.2018

Exempts payment of tax under section 9(4) of the CGST Act till 30.06.2018

No.45/2017-CT

(Rate)

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1.2

IGST Act

Sl. No.

Notification / Date

Contents

01/2017-Integrated Tax (Rate), dt. 28.06.2017, Corrigendums dt. 30.06.2017, 12.07.2017, and 27.07.2017

Rates of tax on supply of goods under IGST Act

02/2017-Integrated Tax (Rate), dt. 28.06.2017, Corrigendums dt. 12.07.2017 and 27.07.2017

Exemptions on supply of goods under IGST Act, absolutely

03/2017-Integrated Tax (Rate), dt. 28.06.2017

5% concessional CGST rate for supplies to Exploration and Production

04/2017-Integrated Tax (Rate), dt. 28.06.2017, Corrigendum 30.06.2017

Reverse charge on certain specified supplies of goods under sec 5(3)

05/2017-Integrated Tax (Rate), dt. 28.06.2017

Supplies of goods in respect of which no refund of unutilised input tax credit shall be allowed

06/2017-Integrated Tax (Rate), dt. 28.06.2017

Refund of 50% of IGST on supplies to CSD under sec 20

07/2017-Integrated Tax (Rate), dt. 28.06.2017

Exemption from IGST supplies by CSD to Unit Run Canteens and supplies by CSD / Unit Run Canteens to authorised customers under sec 6(1)

08/2017-Integrated Tax (Rate), dt. 28.06.2017, Corrigendums dt. 30.06.2017 and 05.07.2017

Rates of tax on supply of services under IGST Act

09/2017-Integrated Tax (Rate), dt. 28.06.2017

Exemptions on supply of services under IGST Act

10. 10/2017-Integrated Tax (Rate), dt. 28.06.2017, Corrigendum 25.09.2017

Categories of services on which tax will be payable under reverse charge mechanism under IGST Act

11. 11/2017-Integrated Tax (Rate), dt. 28.06.2017

Supplies which shall be treated neither as a supply of goods nor a supply of service under IGST Act

12. 12/2017-Integrated Tax (Rate), dt. 28.06.2017

Supplies, which are not eligible for refund of unutilized ITC under IGST Act

13. 13/2017-Integrated Tax (Rate), dt. 28.06.2017

Specialised agencies (e.g., UN, embassies, etc) entitled to claim a refund of taxes paid on the notified supplies of goods or services or both received by them under IGST Act

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Notification / Date

Contents

14. 14/2017-Integrated Tax (Rate), dt. 28.06.2017

Categories of services the tax on intra-State supplies of which shall be paid by the electronic commerce operator under sec 5(5)

15. 15/2017-Integrated Tax (Rate), dt. 30.06.2017

Exemption from IGST on all goods or services imported by SEZ unit/developer for authorised operations under sec 6(1) [also see Sl. No. 17,18]

16. 16/2017-Integrated Tax (Rate), dt. 30.06.2017

Reduces the IGST rate on supply of fertilisers from 12% to 5%

17. 17/2017-Integrated Tax (Rate), dt. 05.07.2017

Rescinding Notification No. 15/2017-Integrated Tax (Rate) dated 30.06.2017 â&#x20AC;&#x201C; SEZ Unit/Developer [also see Sl. No. 15,18]

18. 18/2017-Integrated Tax (Rate), dt. 05.07.2017

Exemption from IGST on all services imported by SEZ unit/developer for authorised operations under sec 5 [also see Sl. No. 15, 17]

19. 19/2017-Integrated Tax (Rate), dt. 18.08.2017

Reduces the IGST rate on supply of specified parts of tractors from 28% to 18 %

20. 20/2017-Integrated Tax (Rate), dt. 22.08.2017

Amends notification No. 08/2017-IT(R) to reduce IGST rate on specified supplies of Works Contract Services, job work for textile & textile products, printing service of books, newspapers etc, admission to planetarium, and, also to provide option to GTA & transport of passengers by motorcab service providers to avail full ITC & discharge IGST @ 12%

21. 21/2017-Integrated Tax (Rate), dt. 22.08.2017

Amends notification No. 09/2017-IT(R) 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. 22/2017-Integrated Tax (Rate), dt. 22.08.2017

Amends notification No. 10/2017-IT(R) to amend RCM provisions for GTA and to insert explanation for LLP

23. 23/2017-Integrated Tax (Rate), dt. 22.08.2017

Amends notification No. 14/2017-IT(R) to make ECO responsible under sec 5(5) for payment of GST on services provided by way of house-keeping such as plumbing, carpentering etc.

24. 24/2017-Integrated Tax (Rate), dt. 21.09.2017

Amends notification No. 08/2017-IT(R) to reduce IGST rate on specified supplies of works contract services A1-9

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25. 25/2017-Integrated Tax (Rate), dt. 21.09.2017

Amends notification No. 09/2017-IT(R) to exempt right to admission to the events organised under FIFA U-17 World Cup 2017

26. 26/2017-Integrated Tax (Rate), dt. 21.09.2017

Exempts inter-state supply of heavy water and nuclear fuels from Department of Atomic Energy to NPCIL under the IGST Act

27. 27/2017-Integrated Tax (Rate), dt. 22.09.2017

Amends notification no. 1/2017- IT (R) dated 28.06.2017 to give effect to GST council decisions regarding GST rates

28. 28/2017-Integrated Tax (Rate), dt. 22.09.2017

Amends notification no. 2/2017- IT (rate) dated 28.06.2017 to give effect to GST council decisions regarding GST exemptions

29. 29/2017-Integrated Tax (Rate), dt. 22.09.2017

Amends notification no. 5/2017- IT (R) dated 28.06.2017 to give effect to GST council decisions regarding restriction of refund on corduroy fabrics

30. 30/2017-Integrated Tax (Rate), dt. 22.09.2017

Exempts Skimmed milk powder, or concentrated milk, when supplied to distinct persons

31. 31/2017-Integrated Tax (Rate), dt. 29.09.2017

Amends notification No. 09/2017-IT(R) to exempt supply of services associated with transit cargo to Nepal and Bhutan

32. 32/2017-Integrated Tax (Rate), dt. 13.10.2017

Exempts payment of tax under sec 5(4) of the IGST Act on all supplies received from unregistered suppliers till 31.03.2018

33. 33/2017-Integrated Tax (Rate), dt. 13.10.2017

Amends notification No. 9/2017-IT(R) to exempt certain services

34. 34/2017-Integrated Tax (Rate), dt. 13.10.2017

Amends notification No. 10/2017-IT(R), RCM under sec 5(3), regarding services provided by Overseeing Committee members to RBI

35. 35/2017-Integrated Tax (Rate), dt. 13.10.2017

Amend notification No. 1/2017-IT (Rate) - Rates of tax on supply of goods under IGST Act

36. 36/2017-Integrated Tax (Rate), dt. 13.10.2017

Amends notification No. 2/2017-IT (Rate) Exemption on supply of goods under CGST Act

37. 37/2017-Integrated Tax (Rate), dt. 13.10.2017

Amends notification No. 4/2017-IT (Rate) - RCM under sec 9(3) on supply of goods

38. 38/2017-Integrated Tax (Rate), dt. 13.10.2017

Prescribes IGST rate on supply or leasing of motor vehicles, purchased or leased before 1 July 2017 â&#x20AC;&#x201C; Applicable up to 1 July 2020

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Notification / Date

Contents

39. 39/2017-Integrated Tax (Rate), dt. 13.10.2017

Amends notification No. 8/2017-IT (Rate) to substitute the IGST rate on certain services

40. 40/2017-Integrated Tax (Rate), dt. 18.10.2017

Prescribes IGST rate of 2.5% on Food preparations put up in unit containers and intended for free distribution to economically weaker sections of the society under a programme duly approved by the Central Government or any State Government

41. 41/2017-Integrated Tax (Rate), dt. 23.10.2017

Prescribes IGST rate of 0.05% on inter-State supply of taxable goods by a registered supplier to a registered recipient for export, subject to conditions

42. 42/2017-Integrated Tax (Rate), dt. 27.10.2017

Amends notification No. 9/2017- IT (Rate) - to exempt IGST on inter-state supply of services to Nepal and Bhutan against payment in INR

43. 43/2017-Integrated Tax (Rate), dt. 14.11.2017

Amends notification no. 1/2017- IT (Rate) dated 28.06.2017 – Rates of GST on goods.

44. 44/2017-Integrated Tax (Rate), dt. 14.11.2017

Amends notification no. 2/2017- IT (Rate) dated 28.06.2017 - GST exemptions on goods

45. 45/2017-Integrated Tax (Rate), dt. 14.11.2017

Amends notification no. 4/2017- IT (Rate) dated 28.06.2017 - Reverse charge on raw cotton

46. 46/2017-Integrated Tax (Rate), dt. 14.11.2017

Amends notification no. 5/2017- IT (Rate) dated 28.06.2017 - Restriction of ITC on certain fabrics

47. 47/2017-Integrated Tax (Rate), dt. 14.11.2017

Provides concessional GST rate of 5% on scientific and technical equipments supplied to public funded research institutions.

48. 48/2017-Integrated Tax (Rate), dt. 14.11.2017

Amends notification no. 8/2017-IT(Rate) so as to specify rate @5% for standalone restaurants and @18% for other restaurants; reduce rate of job work on “handicraft goods” @ 5%; and to substitute “Services provided” in item (vi) against Sl No. 3 in table.

49. 49/2017-Integrated Tax (Rate), dt. 14.11.2017

Amends notification no. 9/2017-IT (Rate) so as to extend exemption to admission to “protected monument”; and to consolidate entry at Sl. No. 12A & 12B

50. 50/2017-Integrated Tax (Rate), dt. 14.11.2017

Amends notification no. 30/2017-IT (Rate) dated 22.09.2017, so as to extend the benefit of IGST exemption, applicable in relation to supply of Skimmed milk powder, or concentrated milk for use

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Contents in the production of milk distributed through dairy co-operatives to the companies that are registered under the Companies Act, 2013 also

51. 01/2018-Integrated Tax (Rate), dt. 25.01.2018

Amends notification No. 8/2017- IT (Rate) so as to exempt certain services as recommended by the GST Council in its 25th meeting held on 18.01.2018

52. 02/2018-Integrated Tax (Rate), dt. 25.01.2018

Amends notification No. 9/2017- IT (Rate) so as to exempt certain services as recommended by the GST Council in its 25th meeting held on 18.01.2018

53. 03/2018-Integrated Tax (Rate), dt. 25.01.2018

Amends notification No. 10/2017- IT (Rate) so as to specify services supplied by the Central Government, State Government, Union territory or local authority by way of renting of immovable property to a registered person under CGST Act, to be taxed under Reverse Charge Mechanism (RCM)

54. 04/2018-Integrated Tax (Rate), dt. 25.01.2018

Provides special procedure with respect to payment of tax by registered person supplying service by way of construction against transfer of development right and vice versa

55. 05/2018-Integrated Tax (Rate), dt. 25.01.2018

Exempts Central Governmentâ&#x20AC;&#x2122;s share of Profit Petroleum from IGST

56. 06/2018-Integrated Tax (Rate), dt. 25.01.2018

Exempts royalty and license fee from Integrated tax to the extent it is paid on the consideration attributable to royalty and license fee included in transaction value under Rule 10(1)(c) of Customs Valuation (Determination of value of imported Goods) Rules, 2007

57. 07/2018-Integrated Tax (Rate), dt. 25.01.2018

Amends Notification No.1/2017-IT (Rate) dated 28.06.2017

58. 08/2018-Integrated Tax (Rate), dt. 25.01.2018

Amends Notification No.2/2017-IT (Rate) dated 28.06.2017

59. 09/2018-Integrated Tax (Rate), dt. 25.01.2018

Concessional rate of GST on old and used vehicles

60. 10/2018-Integrated Tax (Rate), dt. 25.01.2018

Amends Notification No.47/2017-IT (Rate) dt. 14.11.2017

61. 11/2018-Integrated Tax (Rate), dt. 23.03.2018

Exempts payment of tax under section 5(4) of the IGST Act till 30.06.2018

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1.3

Compensation Cess Act

Sl. No.

Notification / Date

Contents

01/2017-Compensation Cess (Rate), dt. 28.06.2017, Corrigendum 30.06.2017

Rates of compensation cess on supply of specified goods

02/2017-Compensation Cess (Rate), dt. 28.06.2017, Corrigendum 01.07.2017

Rates of compensation cess on supply of specified services

03/2017-Compensation (Rate), dt. 18.07.2017

Cess

Amends notification No. 1/2017- Compensation Cess (Rate), dated 28.06.2017 so as to increase the Compensation Cess rates on cigarettes as mentioned in the notification with effect from 18.07.2017

04/2017-Compensation (Rate), dt. 20.07.2017

Cess

Exempts intra-State supplies of second hand goods received by a registered person, dealing in buying and selling of second hand goods and who pays the goods and services tax compensation cess on the value of outward supply of such second hand goods, as determined under rule 32(5) of the CGST Rules, from any supplier, who is not registered, from the whole of the goods and services tax compensation cess leviable thereon under sec 8 of the Goods and Services Tax (Compensation to States) Act, read with sec 9(4) of the CGST Act

05/2017-Compensation (Rate), dt. 11.09.2017

Cess

Amends notification No. 1/2017- Compensation Cess (Rate), dated 28.06.2017 -- rates of compensation cess on various motor vehicles

06/2017-Compensation (Rate), dt. 13.10.2017

Cess

Amends notification No. 2/2017-Compensation Cess (Rate) - Reduction in cess rates for leasing of motor vehicles purchased and leased prior to 1 July 2017

07/2017-Compensation (Rate), dt. 13.10.2017

Cess

Prescribes compensation cess rate on supply or leasing of motor vehicles, purchased or leased before 1 July 2017 â&#x20AC;&#x201C; Applicable up to 1 July 2020

01/2018-Compensation (Rate), dt. 25.01.2018

Cess

Amend Notification No.1/2017-Compensation Cess (Rate) dt. 28.06.2017

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