R.K. Jain's GST Law Manual | 2023-24

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GLOSSARY OF GST TERMS

refers to meaning assigned to it in Section 3 of the Transfer of Property Act, 1882 the claimant.

means any authority competent to pass any order or decision relating to CBIC.

commensurate reduction in selling prices. These provisions are mandatory, therefore, any person retaining consumer.tion on the GST common portal. persons under GST.

means one who occasionally undertakes transactions involving the supply

and reduction of tax rates associated with demerit goods under the GST.

than at normal GST rates.

means vesting of property in goods or conveyances or any other property in the or otherwise. of such supply.

means and includes the transactions in which the goods supplied do not leave Zero-rated supply status is granted to deemed exports. is a document which is issued in lieu of invoice at the time of removal of goods the consignee, duplicate copy is for the transported and the triplicate copy is for the consignor.

can also sell goods to customers. or electronic network.

refers to an online electronic service which allows a GST registered taxthe registration process.

` 50,000.person in India and outside India.

excludes securities and money. -

can do so now.

GST Taxpayers have an GST system application program interface. GSPs and ASPs provides much-needed support to taxpayers in

taking taxpayers’ raw data on sales and purchases and converting it into the GST returns. The GST returns, Central and State Governments, taxpayers, and other stakeholders to facilitate the operationalisation of GST.

is a document capturing the details of the income, which a taxpayer is supstarting from GSTR-1 to GSTR-11, capturing and catering to different forms of taxpayers. A GST primarily includes: Sales data; Purchase data Output; GST Input Tax Credit.

is the GST Return Form used for furnishing the details of outward supplies (sales) on the common portal.

is the GST Return Form for providing the details on inward supplies (purchases) on the GST portal.

and making payment of tax on the GST Portal.terly GST returns on the portal.

GST Returns.

is an internationally accepted method of classify-

` 5 crores shall use 2-digit code and the taxpayers whose turnover is

vailing duty. It is levied under IGST Act, 2017. chain; thus, every person, who is supplying goods or services, can claim credits for input taxes paid. The

means the Central Tax, State Tax, Integrated Tax or Union Territory Tax charged on anyterritory.

refers to the situation where tax rate on output supply is lesser than the rate on inward supply.ulated invoices.

under GST means a “Tax Invoice” as per Section 31 of CGST Act, 2017. other means, and with or without any consideration.

that keeps track of the input taxes under the different components of GST (CGST, SGST, IGST and UTGST) includes Panchayat, Municipality, a Municipal Committee, a Zilla Parishad, a District Board, and any other Authority with the control or management of a municipal or local fund, recipient and supplier are not related.

residence in India and acts as a principal or an agent or in any other capacity and occasionally undertakes means services whose of which renders their supply essentially automated and involving minimal human intervention and advertising on the internet, providing cloud services, online gaming, digital data storage, etccomplaint and ends with acquittal or conviction of the accused.payment.

advance payment. on conclusion of proceedings or released. refers to the method of nomenclature that is used to identify, means the tax imposed under the State GST laws. under Section 2 of CGST Act, 2017.

ed and tracked under the GSTR-7.

is a method of collecting tax at source. Every e-commerce operator

granted in respect of advances to effectively make date of issue of invoice as time of supply). receipt of payment (whichever is earlier) (c) the date on which the recipient shows the receipt of services

refers to an ID that is used to identify specialized agencies who are on all Bills of Entry and Shipping Bills.

is generally a composit arrangement for supplying the goods as well as the services

GST READY RECKONER

GST law provides for threshold exemption from registration based on turnover i.e., where turnover of a person is below the threshold, he may undertake supplies without registering himself with the authorities. This is also referred as small-scale exemption and it helps to reduce compliance burden of smaller entities. There is no bar on a person making taxable supplies registering himself even when his turnover has not exceeded the threshold limit but when the threshold is exceeded, it becomes mandatory.

Statutory provisions regarding registration are contained in Sections 22 to 30 of Central Goods and Services Tax Act, 2017 (CGST Act) and respective State Goods and Services Tax Act, 2017 (SGST Act) Rule 8 to Rule 26 of Central Goods and Services Tax Rules, 2017 (CGST Rules) are the procedural provisions on this subject. Registration and related processes under GST being mostly an online process, various forms/ formats numbering 30 have been prescribed under CGST Rules relating to registration. All applications

Scope and nature of registration under GST. A supplier has to register in each of such State or Union territory from where he effects supply. In GST

next 10 digits are the PAN of the legal entity, the next two digits are for entity code, and the last digit is check sum number.

taxes i.e., CGST, SGST/UTGST, IGST and Cesses. A given PAN based legal entity would have one GSTIN per State which means a business entity having its branches in multiple States will have to take separate State wise have single registration wherein it can declare one place as principal place of business and other branches as additional place of business. As per Section 25 of CGST Act (as amended), a person having multiple places of business in a State or Union territory can be granted a separate registration for each such place of business, subject to conditions prescribed under Rule 11 of CGST Rules, 2017. One of the main conditions prescribed is that such dealers would not be entitled to Composition Levy Scheme. Further, SEZ unit or developer has to apply for a separate registration, as distinct from his place of business located outside the Special Economic Zone in the same State or Union territory.

WHO SHOULD REGISTER

A person making a taxable supply of goods or services or both shall register himself with the respective authority in the State or Union Territory from where he makes taxable supply if the aggregate engaged in making non-taxable supply say petrol is not liable for registration under GST law. The thresh-

of goods or provision of services) are made.

States, from where he makes a taxable supply of goods or services or both. In special category states this initially migrate for provisional GSTIN and then take regular registration under the new law if liable fortered job worker, shall not be included in the aggregate turnover of the registered job worker but it shall be included in the aggregate value of principal. g) of clause (4) of Article 279A of special category States, Central Government on recommendation of GST Council can extend this limit of INR 10 lakhs to a maximum of INR 20 lakh. GST Council in its meeting on 10-1-2019 had recommended that there would be two threshold limits for exemption from registration and payment of GST for the suppliers of goods i.e., INR 40 lakhs and INR 20 lakhs. States were given option to decide on one of the limits. The threshold for registration for service providers would continue to be INR 20 lakhs and in case of Special 10/2019-C.T., dated 7-3-2019 where under w.e.f. 1-4-2019, threshold limit for dealers exclusively engaged in intra-State supply of goods has been increased to INR 40 lakhs across all States and Union Territories except in 10 States, namely, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand. Out of these 10 States, only four States, namely, Manipur, Mizoram, Nagaland and Tripura are Special Category States in terms of amended proviso to Section 22 of CGST Act which would retain threshold limit of INR 10 lakhs while other six States would have this limit at INR 20 lakhs.

STATE/UNION TERRITORY WISE THRESHOLD LIMITS UNDER GST FOR

11.Jharkhand40 lakhs20 lakhs

12.Karnataka40 lakhs20 lakhs

13.Kerala40 lakhs20 lakhs

14.Madhya Pradesh40 lakhs20 lakhs

15.Maharashtra40 lakhs20 lakhs

16.Meghalaya20 lakhs20 lakhs

17.Odisha40 lakhs20 lakhs

18.Punjab40 lakhs20 lakhs

19.Rajasthan40 lakhs20 lakhs

20.Sikkim20 lakhs20 lakhs

21.Tamil Nadu40 lakhs20 lakhs

22.Telangana20 lakhs20 lakhs

23.Uttar Pradesh40 lakhs20 lakhs

24.Uttarakhand20 lakhs20 lakhs

25. 40 lakhs20 lakhs

1.Manipur10 lakhs10 lakhs

2.Mizoram10 lakhs10 lakhs

3.Nagaland10 lakhs10 lakhs

4.Tripura10 lakhs10 lakhs

1.Andaman and Nicobar Islands40 lakhs20 lakhs

2.Chandigarh40 lakhs20 lakhs

3. 40 lakhs20 lakhs

4.Daman and Diu40 lakhs20 lakhs

5.Delhi40 lakhs20 lakhs

6.Lakshadweep40 lakhs20 lakhs

7.Puducherry20 lakhs20 lakhs

@ Goods would not include Ice cream and other edible ice whether or not containing Cocoa, Pan Masala, Tobacco and manufactured tobacco substitutes.

The extended limit of INR 40 lakhs would not be applicable to persons engaged in supply of Ice Cream and other edible ice, whether or not containing Cocoa, Pan Masala, Aerated Water (w.e.f. 1-10-2019),

tration under section 24 of CGST Act and persons taking voluntary registration.

— Any person engaged exclusively in the business of supplying to take registration. Similarly, an agriculturist is also exempt from registration to the extent of supply of undertakes cultivation of land either by own labour or of the family or by engaged hired persons and wages may be paid in cash or kind. The person or his family will supervise hired labour. Goods at present not liable to GST are crude oil, petrol (motor spirit), diesel (high speed diesel), aviation turbine fuel (ATF) and natural w.e.f. 1-4-2019, any person, who is engaged exclusively supply of goods and whose aggregate turnover in

(ii) Persons engaged in making supplies of Ice cream and other edible ice, whether or not containing cocoa, Pan masala, Aerated Water (w.e.f. 1-10-2019) and Tobacco and manufactured not violative of Article 14 of Constitution. — Per Allahabad High Court reported in [2020] (32) G.S.T.L. 338/[2020] 115 taxmann.com 57/80 GST 350 (All)].

(iii) Persons engaged in making intra-State supplies in the States of Arunachal Pradesh, Manipur, and

(iv) Persons voluntarily obtaining registration under section 25(3) or such registered persons who intend to continue with their registration under the CGST Act.

—Persons making inter-State taxable supplies of handicraft goods as by hand even though some machinery may also be used in the process are the categories of casual taxable the aggregate value of such supplies does not exceed the threshold limit i.e. the aggregate turnover is less 3/2018-Integrated Tax dated 22-10-2018.

www.gst.gov.in as the Common Goods and Services Tax Electronic Portal for facilitating registration, payment of tax, furnishing of returns, computation and settlement of IGST and e-way bill. -

and documents were asked for) and all necessary documents can be scanned and uploaded. If there are no

— Central Government vide No. 7/2017-Integrated Tax, dated 14-9-2017 has exempted job workers engaged in making inter-State suptaking voluntary registration and also to suppliers of services in relation to goods covered under Sl. No. 5 of Annexure to Rule 138 of CGST Rules relating to e-way bill. These goods are jewellery, goldsmiths’ and silversmiths’ wares and other articles of Chapter 71.

COMPUTATION OF TURNOVER TO DETERMINE THRESHOLD Explanation

As per Section 2(6) of the CGST Act, 2017 the following shall not be taken into consideration while computing the Annual Aggregate Turnover.

— Persons registered under Central Excise Act, Finance Act, 1994 (Service tax) date i.e., 1-7-2017.

— In cases where the business carried on by a person is transferred either on account of succession or as a going concern, the transferee or successor should register himself from the

COMPULSORY REGISTRATION IRRESPECTIVE OF THRESHOLD

While Section 22 prescribes a threshold, Section 24 provides for certain situations where registration is compulsory irrespective of threshold. In other words, the small- scale exemption is not available in such cases.

i. Person making inter-State supply is liable to pay IGST and no small-scale exemption is available. Therefore, even if only one transaction is made, he has to register himself.

ii. As per Section 2(19) a causal taxable person is one who occasionally undertakes supply of place of business in the State or Union Territory where he engages in supply. Such casualgaging in exhibition sum sale at a fair.

iii. Persons paying tax under reverse charge are deemed to be suppliers and have to undertake all compliances including payment of tax and hence registration is compulsory.

commerce operators are liable to register themselves irrespective of threshold of transactions undertaken or supplied by them.

v. Non-resident taxable person as per Section 2(17) means any person who occasionally undertakes supply of goods or services or both either as principal or agent but does notpulsory registration. Experts from foreign countries visiting India and providing advice or consultancy are covered under this category.

vi. Certain persons liable to deduct tax - Department or establishment of Central or State deduct tax under section 51 at the rate of 1% when the contract value is more than INR 2.5 for TDS purpose. The obligation to register under section 24 operates whether or not such recipient is registered otherwise registered under GST law.

vii. Any person making taxable supplies on behalf of another whether as agent or otherwise is or services or both which receives tax invoices for inputs and other services and issues prescribed document for distributing credit of tax to a supplier of taxable services having

PAN. Registration is compulsory for a person acting as ISD irrespective of whether he is registered or not.

ix. Any person supplying goods or services or both through e-commerce operator who is to pay tax.

x. Registration by e-commerce operator obliged to collect tax at source. As per Section 52 every e-commerce operator not being an agent is mandated to collect tax at the rate of 2% on supplies.

xi. Supply of online information and database access or retrieval services (OIDAR) to unregisIndia.

TIME LIMIT AND PROCEDURE TO APPLY FOR REGISTRATION

Any person who is liable to register on crossing the threshold (under Section 22) or compulsorily register as per Section 24 should apply for registration within 30 days from the date on which he became liable for registration. A causal non-taxable person or a non-resident has to apply for registration at least 5 days prior to commencement of business. A person having a unit in SEZ or an SEZ developer will have to apply for a separate registration from his place of business located outside the SEZ within the same State of Union Territory.

A person making supply from territorial waters of India has to apply for registration from the State of Union Territory nearest to the baseline. A person shall be granted single registration in a State or Union

VOLUNTARY REGISTRATION

registration and accordingly carry out all compliances and he will be treated as a person registered under tax invoice for availing input tax credit of the GST charged on the supply.

DISTINCT PERSONS

(s) or Union Territory (s) will be treated as a distinct person in respect of each registration. The concept of distinct person means they are treated as separate entities and transactions between them will be liable to in a State or Union Territory has an establishment in any State or Union Territory, such establishments shall be treated as establishments of distinct persons.

— Persons who are liable to get registered (other than a non-resident

Permanent Account Number (PAN), mobile number, e-mail address, State or Union territory in Part A of address, a temporary reference number shall be generated and communicated to the applicant. Using this

will issue an acknowledgement in FORM GST REG-02. The registration has to be applied for within 30 days

a supply from the territorial waters of India shall obtain registration in the coastal State or Union Territory where the nearest point of the appropriate baseline is located. If a person has more than one business vertical within a State or a Union Territory, he has to apply for separate registration for each business vertical in FORM GST REG-01.

A company incorporated in India and a body corporate incorporated by or under law of a country outside India (foreign company) are separate persons under CGST Act and thus, are separate legal entities. Therefore, supply of services by a subsidiary/sister concern/ group concern of a foreign company which is incorporated in India to the establishments of the said foreign company located outside India cannot be considered as supply between mere establishments of distinct person under Explanation 1 of Section 8 of IGST Act, 2017. Similarly, supply of service by an Indian company to its related establishments outside India which are incorporated under the laws outside India will not be treated as supply between mere establishments of distinct person under said Explanation.— Circular No. 161/17/2021-GST dated 20-9-2021.

PERMANENT ACCOUNT NUMBER /TAX DEDUCTION ACCOUNT NUMBER

In order to be eligible for registration every person should have a PAN issued under Income-tax may provide the Tax Deduction and Collection Account Number (TAN) in lieu of PAN.

— Such person REG-06. When such person no longer remains liable to deduct tax at source or collect tax at source, proper such a person applying for registration to deduct or collect tax at source, in a State or Union territory where he does not have a physical presence has been prescribed in the newly inserted sub-rule (1A) in Rule 12 of CGST Rules, 2017.

vide Circular No. 1/1/2017, dated 26-6-2017) will examine the application and the accompanying documents and in case these are in order, grant the registration to the applicant within in FORM GST REG-03 will be issued within seven working days from the date of submission of applicaor documents electronically, in FORM GST REG-04, within seven working days from the date of receipt of

AUTHENTICATION

If a person fails to undergo authentication or furnish proof of possession of Aadhaar Number, the registration number will be deemed to be invalid and the person will be treated as an unregistered person under CGST Act.

From 1-1-2020 vide persons other than individual, the Karta, Managing Director, Director, Whole Time Director, Partners (as

The following procedure has been prescribed for aforesaid purpose under CGST Rules by amending Rules 8, 9 and 25 initially vide 62/2020-C.T. dated 20-8-2020. –

(i) With effect from 21st August, 2020, while submitting the application under sub-rule (4) of Rule 8 of CGST Rules applicant shall undergo authentication of Aadhaar number.

(ii) The date of submission of the application in such cases shall be the date of authentication FORM GST REG-01 under sub-rule (4), whichever is earlier.

(4A) of rule 8 or does not opt for authentication of Aadhaar number, the registration shall be of the place of business within 30 days in the manner provided under Rule 25.

(4A) of Rule 8 or does not opt for authentication of Aadhaar number, the notice in FORM GST REG-03 may be issued not later than twenty one days from the date of submission of the application.

A non-resident taxable person may furnish other documents as may be prescribed.

Application in FORM GST REG-09 has to be submitted in the GST portal (www.gst.gov.in) along case of a business entity incorporated or established outside India, the application for registration has to authorized signatory of such person who shall be a person resident in India having a valid PAN. A non-resgenerated and given to such person to enable him to deposit advance tax. Only after deposit of advance tax, his application will be further processed. For seeking extension of registration, an application in FORM

— Observing that certain the old/cancelled registration are not applying for revocation of cancellation of registration, but are applying submitted by the taxpayers, where the taxpayer is seeking another registration within the State although he has an existing registration within the said State or his earlier registration has been cancelled. — C.B.I. & C. Circular No. 95/14/2019-GST, dated 28-3-2019.

AUTHOR : R.K. JAIN

PUBLISHER : TAXMANN

DATE OF PUBLICATION : JUNE 2023

EDITION : 18TH EDITION

ISBN NO : 9789391055301

NO. OF PAGES : 2312

BINDING TYPE : PAPERBACK

Description

This book provides the complete, updated, amended & annotated text of all provisions of the GST Law. This book has been divided into eleven parts:

u Part 1 – GST Ready Reckoner

u Part 2 – GST Acts

u Part 3 – GST Rules

u Part 4 – Reverse Charge Mechanism

u Part 5 – Forms & Proformas

u Part 6 – State GST & Compensation Cess

u Part 7 – Circulars, Press Releases & Public Notices

u Part 8 – Advance Ruling on GST

u Part 9 – Notifications

u Part 10 – Appeals & Revisions

u Part 11 – Index to Notifications

The Present Publication is the 18th Edition and has been amended by the Finance Act 2023. This book is edited by R.K. Jain and Dr G Gokul Kishore.

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