Meaning of GST

Article 366 defines- Goods and Services Tax means any tax on supply of goods, or services or both except
taxes on the supply of the alcoholic liquor for human consumption.
Services: Services means anything other than goods.
State: State includes a Union territory with Legislature.
Goods: Goods include all materials, commodities, and articles.
(GST) was introduced by the Constitution Amendment Bill 122 on Dec 19, 2014, and when successfully
passed, it was named as The Constitution (One Hundred and First Amendment) Act, 2016 (101 Act). The
Act introduced GST in India from July 1, 2017. The Constitutional Amendment Bill enabled or empowered
the Union Government to levy a tax to be called GST which it could not levy under the earlier Constitution.
Now, the Central Government and the State Governments can concurrently levy GST.

Features of GST
GST removes deficiencies of earlier laws. The features of GST are as under:
1. GST is a comprehensive indirect tax on manufacture, sale, and consumption (called supply) of most of
the goods as well as services at the national level,
2. It replaces almost all indirect taxes levied on goods and services by the Indian Central and State
Governments, barring Customs Duty and a few others.
3. It is a value added tax thereby offering a comprehensive and continuous chain of tax credits to all
producers /service providers/suppliers up to the final consumer’s level. It is the final consumer who would
bear the GST charged by the last supplier.
4. The cascading effect (tax on tax) of taxes will not arise under GST because only the value added at each
stage is taxed. For instance, under pre-GST regime, levy of State VAT and CST on sale at a value inclusive of
duty on manufacture (called Cenvat) used to increase the overall burden of tax on the final consumer.

Importance of GST
1. Leads to easier tax compliance and simple tax structure compared to previous tax structure which had
multiple tax laws
2. Removes cascading effect of taxes which was earlier levied under multiple taxes within same supply
chain
3. Availment of input tax credit on a continuous basis thereby reducing manufacturing cost. This in turn
lowers the price of consumer goods.
4. Final burden is borne by the consumer who finally consumes the goods or services
Advantages and Disadvantages of GST
Advantages Drawbacks
1. no multiple taxes 1. supplies made w/o consideration are
2. removal of cascading effect thereby treated as deemed supply and have
cost of prod, and inflation down become taxable
3. improved business competitiveness 2. gst rates over 15% have become costlier
4. robust IT infra 3. lack of IT infra within states and UT
5. online compliance saves time and cost 4. personalized accounting records for
6. suppliers avail ITC, consumers pay only businesses of diff states because no
amount charged by final supplier centralized registration
7. uniform taxes nationally=uniform prices 5. periodic filing of gst returns listing
within whole country detailing all the buses. trans. such as
8. reduce incentive of tax evasion purchases, sales, etc for every state
9. enhances tax compliance through within which the bus. expands into
control of black money circulation 6. All stakeholders need to be aware and
10. wider tax base and more revenue have knowledge of the new taxation
regime which requires a lot of resources
and efforts.
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Sales Tax vs GST

Basis GST Other taxes

Broad Scheme Single Unified Tax Structure for Separate laws for separate levies eg.
the whole country Central Excise, Central Sales Tax, VAT etc.
Tax One CGST rate, uniform rate of SGST across all states for Sept rates for sept
Rates within state supplies and IGST for inter-state levies, eg,
Levy of Tax Only at supply point (consumption) All points of manufacture, sale, transfer,
with input tax credit rent, lease
Collection Destination of supply Origin of sale
Cascading effect Null due to ITC, and IGST High due to no credit of CST and other taxes
Tax Burden Lower Higher
Cost of goods and services Lower Higher
Compliances and Admin. Easier, Simpler, Transparent Diff, Complex, Obscure
Power to levy Centre and State Center and state both had no power on same tax subject

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GST Council
a constitutional body constituted by the President on 15th September 2016 for making recommendations
to the Union and State gov. on issues related to GST
Composition-
As per Article 2794 of the amended Constitution, the GST Council which will be a joint forum of the Centre
and the States, shall consist of the following members:
1. the Union Finance Minister: Chairperson.
2. the Union Minister of State in charge of Revenue or Finance: Member.
3. the Minister in charge of Finance or Taxation or any other Minister nominated by each State
Government: Members.

Role/Function of GST Council

1. Make Recc. - to the Union and the States on the following important issues related to GST.
● the taxes, cesses and surcharges levied by the U, the S and the LB which may be subsumed in the
GST.
● the G/S that may be subjected to or exempted from GST.
● model GST laws, principles of levy, apportionment of GST levied on supplies during inter-state trade
or commerce under Article 269A and the principles that govern the place of supply.
● the threshold limit of turnover below which GnS may be exempted from GST.
● the rates including floor rates with bands of GST.
● any special rate or rates for a specified period, to raise additional resources during any natural
calamity or disaster.
● special provision with respect to the States of AP, Assam, J&K, Manipur, Meghalaya, Mizoram,
Nagaland, Sikkim, Tripura, HP, and Uttarakhand; and
● any other matter relating to GST, as the Council may decide.
2. Establish mechanism for Dispute Resolution- between
● The GoI and one or more States; or
● The GoI and any State or States on one side and one or more other States on the other side; or
● Two or more States, arising out of the recommendations of the Council or implementation thereof.

Every decision of the Council shall be taken at a meeting, by a majority of not less than 3/4th of the
weighted votes of the members present and voting, in accordance with the following principles, namely:
• The vote of Central Govt shall have a weightage of one-third of the total votes cast, and
• The votes of all the State Govt taken together shall have a weightage of two-thirds of the total votes cast,
in that meeting.

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Supply
Any transaction or occurrence that results in a tax consequence is called a "taxable
event”. In case of GST the taxable event is "Supply". Supply means supply of goods or services or both.
Supply means supply of goods or services or both. As per Section 7 of CGST Act, supply includes:
(a) All forms of supply of goods or services or both such as Sale, Transfer, Barter, Exchange, License, Rental,
Lease or Disposal made or agreed to be made for a consideration by a person in the course or furtherance
of business.
(b) Importation of services, for a consideration whether or not in the course or furtherance of business.
(c) The activities specified in Schedule-I made or agreed to be made without a consideration
(d) The activities or transactions specified in Schedule-II which are to be treated as supply of goods or
supply of services

Taxable supply
means a supply of goods or services or both which is leviable to tax under this Act (Section 2(108) of CGST
Act). In other words, activities which are treated as supply of goods or supply of services for the purpose of
levy of GST are taxable supplies.

Zero Rated Supply

means supply of goods or supply of services or both on which no tax is payable. However, input tax credit
can be availed on such supplies. Zero rated supplies include
(a) Supply of export of goods or services or both.
(b) Supply of goods or supply of services or both to a Special Economic Zone unit or developer.
Person making zero rated supplies can supply under bond or Letter of Undertaking without payment of tax
or claim refund on payment of tax.

Exempt Supply
means supply of goods or supply of services or both.
(a) Which attract NIL rate of tax (NIL rated supplies) or
(b) Which are not chargeable to tax (Non-taxable supply) or
(c) Which are exempt from tax via notification or special order as per Section11 of CGST Act.

Continuous Supply
Continuous supply of goods or services means supply which is provided or agreed
to be provided on a continuous basis under a contract. Supplier issues invoices to recipient on a periodic
basis for payment. For example: Mobile service providers issue monthly invoices for use of telephone/
internet services.

Inter-State Supply
Location of supplier and place of supply are in:
(a) two diff states or
(b) two diff UTs or
(c) a state and a UT
The following supplies are also to be treated as inter-state supplies.
(a) Supply of goods and services imported into the territory of India. However, these may be subject to
customs duty under the customs act, 1962
(b) Supply by supplier in India to a place outside India.
(c) Supply to or by SEZ developer or unit.
(d) Supply which is not an intra-state supply and not mentioned anywhere else.

Intra-State Supply
Location of supplier and place of supply are within the same state or UT.
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Deemed Supplied
Schedule I appended to the CGST Act provides four supplies made even if without consideration, which are
treated as supplies for the purpose of levy of GST.
1. Permanent Transfer/Disposal of Business Assets- any kind of disposal or transfer of business assets
by an entity on perm basis even if w/o consideration, provided ITC is available on such assets is
supply.
2. Supply b/w related person or distinct persons- Supply of goods or services or both between 'related
persons' or between 'distinct persons' as specified in Section 25 of CGST Act, made in the course or
furtherance of business is supply.
3. Principal-Agent- Supply of goods between principal and agent without consideration is supplied
under GST. Supply of services is not covered here.
4. Importation of services- Import of services by a taxable person shall be treated as supply if
following conditions are met:
(a) Import is from a related person or from his other establishments.
(b) Such a person is located outside India.
(c) Such an import is without consideration.
(d) Such an import is in the course or furtherance of business.

Composite Supply
Section 2(30) of CGST Act, means a supply made by a taxable person to a recipient which
(a) comprises of two or more taxable supplies of goods or services or both, or any combination thereof
(b) are naturally bundled and supplied in conjunction with each other, in the ordinary course of business
(c) one of which is a principal supply or main supply.
For example: The supply of food and service by a restaurant is a composite supply. In this case:
• Food and service is provided.
• Both are naturally bundled and supplied together in the ordinary course of business.
• One of which is to be treated as a principal supply.
Here, principal supply is supply of food to be treated as supply of service out of two supplies.
- Principal supply means the supply of goods or services which constitutes the predominant element of
a composite supply and to which any other supply forming part of that composite supply is ancillary
[Section 2(90) of CGST Act]
- The GST rate applicable shall be the rate of principal supply.

Mixed supply [Section 2(74) of CGST Act] means:

• Two or more individual supplies of goods or services, or any combination thereof
• Made in conjunction with each other
• By a taxable person to a recipient
• For a single price
• Where such supply does not constitute a composite supply.
In other words, if individual supplies are independent of each other and are not naturally bundled then
they are not composite supplies and would be mixed supplies. Such supplies are not in conjunction with
each other in the ordinary course of business. A mixed supply is classified in terms of supply of goods or
services attracting the highest rate of tax.

For example: A supply of a package consisting of a microwave, hair trimmer and wireless speakers would
be a mixed supply when sold/supplied for a single price. These goods are not naturally bundled and
supplied in conjunction with each other in the ordinary course of business and hence constitute mixed
supply. Another example, a gift pack consisting of cakes, chocolates, biscuits, wafers etc.

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Supply of goods
1. Transfer of title in goods
2. Transfer of title in goods under an agreement which stipulates that property in goods shall pass at a
future date upon payment of full consideration
3. Assets of business are transferred or disposed of by or under the direction of owner whether or not for
a consideration
4. Supply of goods or services by any unincorporated association of person or body of person for
valuable consideration
If the owner ceases to be a taxable person, then business assets will be assumed to be supplied by him
5. in the course of his business immediately before he ceases to be a taxable person.
This is not applicable when—
(i) the business is transferred to another person
(i) the business is carried on by a personal representative who is deemed to be a taxable person.
Supply of services
1. Transfer of right or share (undivided) in goods without the transfer of title
2. Lease, rent, tenancy, easement, license to occupy land
3. Lease or letting of any building for business or commerce [Building might be a commercial,
industrial or residential complex rent out wholly or partly]
4. Any treatment or process applied to another person's goods e.g., job work
5. The owner uses or allows to use business assets for personal use
6. Renting of immovable property
7. Temporary transfer or permitting the use of any intellectual property right
8. Development of information technology software
9. Agreeing to refrain from an act (Non-competition agreements) or to tolerate an act or to do an act
10. Transfer of the right to use any goods for any purpose (wl t for a specified period) for a
consideration
11 Works contract service
12 Supply by service of goods or any other article for human consumption in lieu of consideration
(other than alcohol for human consumption)

Neither supply of goods nor services

1. Services by an employee to employer in the course of or in relation to his employment
2. Services by any court or tribunal established under any law for the time being in force
3. a) functions performed by MP, members of state legis, members of panchayats, members of
municipalities and members of other local authorities
b) duties performed by any person who holds any post in pursuance of provisions of the constitution
in that capacity
c) duties performed by any person as a chairperson or a member or a director in a body established by
the central govt. or a state govt. or local auth. and who is not deemed as an employee before the
commencement of this clause
4. Services of funeral, burial, crematorium, or mortuary including transport. of deceased
5. Sale of land and, subject to the relevant clause, sale of building
6. Actionable claims other than lottery, betting and gambling
7. Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory
without such goods entering into India.
8. a) supply of warehoused goods to any person before clearance for home consumption. In such cases,
customs duty is not paid by the supplier and hence GST is also not applicable. The recipient of such
goods will pay both Customs duty and GST
b) supply of goods by the consignee to any other person, by endorsement of docs of title of goods,
after the goods have been dispatched from the port of origin located outside India but before clearance
for home consumption.

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draw table kind of supply/ meaning/ tax levied/ applicable act(s)
GST LAWS
1. CGST Act, 2017 extends to the whole of India including state of J&K
2. SGST Act, 2017 extends to the whole of the respective state and UT w state legis namely, Delhi and
Puducherry
3. UGST Act, 2017 extends to the UTs of ANIslands, Lakshw, DnD, Chandigarh and other territory, i.e., the
UTs without State leg
4. IGST Act, 2017 extends to the whole of India including state of JnK

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Levy of GST
1. tax on intra-state supplies, excluding supply of alcoholic liquor for human consumption, shall
(a) be collected on the basis of transaction value as per Section 15 of CGST Act
(b) at rates notified by the Government on the recommendations of the GST Council
(c) in such manner as may be prescribed
(d) be paid by the taxable person.

2. Tax payable on supply of goods or services or both: ·

There are two payment mechanisms under GST, namely, Forward Charge/Normal Charge Mechanism (FCM)
and Reverse Charge Mechanism (RCM).
• Forward Charge Mechanism (FCM) means suppliers of goods or services, or both are liable to pay GST (both
CGST/SGST and IGST).
• Reverse Charge Mechanism (RCM) means receivers of goods or services or both are liable to pay GST (both
CGST/SGST and IGST) instead of suppliers.
All the provisions of the CGST/IGST Act related to compliance, registration, tax deposit etc. shall apply to the
recipient. Thus, the recipient of goods or services under reverse charge would remit only the purchase
payments to suppliers.
Reverse charge mechanism works when:
(a) Government notifies, on the recommendations of the CST Council, some goods and services taxable
under reverse charge (Section 9(3) of CGST Act].
(b) Supply of taxable goods or services or both are made by an unregistered supplier to a registered person
[Section 9(4) of CGSI' Act].

Forward Mechanism and Reverse Mechanism Diag

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Procedure for GST registration
1. Application of Registration: - Every person liable for registration under Sec 22 or Sec 224, or
seeking voluntary registration, must declare their PAN, mobile number, email address, and
State/union territory within 30 days of becoming liable. This declaration should be made in Part
A of form GST Reg-01 on the common portal before applying for registration. either directly or
through a facilitation center notified by the commissioner: -
a. Person having a unit in SEZ or being a SEZ developer shall make a separate application registration.
b. person being an Input service distributor shall make a separate application for registration as such Input
Service Distributor
c. The casual taxable person or non-resident taxable person shall apply for registration at least 5 days prior
to commencement of business.
2. Validation of PAN, mobile number & Email address
a) The permanent account number shall be validated online by the common portal from the
database maintained by the Central Board of Direct Taxes.
b) The mobile number shall be verified through a one-time password sent to the said mobile number
c) The e-mail address declared shall be verified through a separate one-time password sent to the
said email address.
Once successful verification of the PAN, mobile number and email address is done, a temporary reference
number shall be generated & communicated to the applicant on the said mobile number and the e-mail
address.
3. Filing of form GST REG-01
The applicant must electronically submit an application in Part B of form GST REG-01, along with the specified
documents, using the generated reference number. This can be done directly or through a facilitation center
notified by the commissioner.
However, for casual taxable persons or non-resident taxable persons, an advance deposit of tax is required.
They will be given a temporary reference number to pay the advance deposit, and the acknowledgement
will be issued electronically after the deposit.
4. Verification of Application and Approval
The officer verifies the application and documents and grants a registration certificate within 3 working days
if everything is in order. If the application is not proper, the officer will seek clarification or additional
documents from the applicant through a notice within 3 working days.
Clarification involves correcting or changing declared particulars, excluding PAN, State, Mobile no, and Email
address. The applicant must provide this clarification within 7 working days from receiving the notice. After
reviewing the furnished clarification, information, or documents, the proper officer will grant registration
within 7 working days.
If in case the applicant does not reply to notice or the proper officer is not satisfied the application for
registration stands rejected and the application shall be informed electronically.
If the proper officer fails to take any actions-
a. within 3 working days from the date of submission of application or
b. within 7 working days from the date of receipt of clarification, information or documents furnished by
applicant
the application for grant of registration shall be deemed to have been approved
5. Issuance of registration certificate
Once the application has been approved, a certificate of registration is made available to the applicant on
the Common portal and GSTIN is communicated to the applicant within 3 days. Such a certificate is duly
signed or verified by the proper officer in Form of GST REG-06.

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Payment under GST
taxable event under GST in supply and liability to pay
 following payments would anise at time of supply of
goods/services: -
◦ CGST & SGST/UTGST
◦ lGST with components of both CGST and SGST
◦ TDS and TCS
◦ interest, penalty, fees & any other payment
◦ Certain specified payments under reverse charge
 mechanism

Key Features of Payment Process

◦ Paperless transactions - e gen. challan from GSTN portal
◦ convenient, timely, anytime, anywhere payment of tax
◦ 
electronic logical tax collection data.
◦ electronic reconciliation
◦ faster remittance of tax
◦ speedy accounting and reporting

Who is liable to pay
?

· registered dears for CGST, SGST UTGST and IGST liability
· 2 registered persons liable to deduct tax at source
· e-comm operations liable to collect tax at source

Electronic Ledger
Electronic Ledgers (E-ledgers) introduced under GST is a unique feature placed at the GST portal which
updates on a real time basis. Further, their details are auto filled from previously filed returns. Each
registered taxpayer has following e-ledgers opened and displayed on his dashboard at all times at the GST
portal:
a. Electronic Cash Ledger (Statement of Cash/ Deposits/ Payments).
b. Electronic Credit Ledger (Statement of Input Tax Credit).
c. Electronic Tax Liability Register (reflects total net tax liability for a particular month after setting off
input tax credit)

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Assessment of Tax
As per section 2(11) of CGST Act assessment means determination of tax liability. The various types of
assessment under CGST laws are: -
1. Self-assessment [Sec 59 0f CGST Act]: - Self-assessment is the only assessment done by a
registered person himself. Every registered person shall himself assess the tax payable and
furnish a return for each tax period (return could be monthly, quarterly, or annual). The
assessment done by him would be final.
2. Provisional assessment [Sec 60 0f CGST Act]: - done by the tax officer on request by the registered
person when
· He is unable to determine value of goods/services
· He is unable to determine GST rate applicable
3. Scrutiny of returns [Sec 61 0f CGST Act]: - the proper office may select return for scrutiny. He
may ask for explanations on discrepancies noticed. The registered person may:
· Provide explanation as desired
· Accept discrepancy and pay tax
If the officer finds explanations satisfactory, then the registered person will be informed and no
further actions will be taken.
However, if
· Explanation is not submitted within 30 days
· Explanation is not satisfactory
· Or if the person does not rectify discrepancies within reasonable time, then proper officer
can take appropriate actions under CGST laws which could be conducting
· audit of taxpayer | Special audit under sec 66 | inspection and search of the
places of business of the taxpayer
4. Best judgment assessment: - in this case proper officer assesses on the basis of his own reasoning
on the basis of information available in following situations:
· When a registered person has not filed a return
· When a taxable person has not registered even though he is liable to be
registered
a). Assessment of non-filers of returns [Sec 62 of CGST Act]: -
b). Assessment of unregistered persons [Sec 63 of CGST Act]: -
5. Summary assessment: - It is done by the proper officer to protect the interest of revenue.
However, prior permission of the Additional/Joint commissioner is required. The proper officer
has
· Evidence that a taxable person is liable to pay tax
· Sufficient grounds to believe that delay in assessment order may adversely affect the
interest of revenue
Summary assessment may be done when:
· It is not possible to identify the taxable person
· For supply of goods
The taxable person can apply for withdrawal of summary assessment order within 30 days from the
date of receipt of order. The additional/joint commissioner may withdraw the summary assessment
order on receipt of such application or suo moto also if he is of the opinion that it was wrongly passed.

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Tax invoice
An invoice is a commercial instrument issued by a supplier of goods/services to a recipient. It identifies both
the parties involved, and lists as well as describes the goods sold/services supplied, quantities of items sold,
shows the date of shipment and mode of transport, prices and discounts, if any, and the delivery and
payment terms.
Under the GST regime, issuance of an invoice or a bill of supply for every supply of goods or services is
mandatory bcs tax invoice is important evidence of supply of goods or services. Further it is an essential
document for the recipient to avail Input Tax Credit (ITC). A registered person cannot avail input tax credit
unless he is in possession of a tax invoice or a debit note.
Issue of invoice
GST invoice is issued by
· A registered person supplying goods or services, before or at the time of removal of goods or
delivery or making available thereof to the recipient
· Any registered person buying goods or services from an unregistered person

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Issue of Credit note
declaration of Credit Note issued by reg. person for supply of goods or services or both shall be made in the
return for the month during which such credit note has been issues. however, should not be later than:
(i) sept following end of fin year in which such supply was made
(ii) date of furnishing for the relevant annual return, whichever is earlier

Issue of Debit Note

declaration of Debit Note Issued by the registered person for supply of GS or both shall be made in the return
for the month, during which such a debit note has been issued. The tax liability of the registered person shall
be adjusted accordingly.

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Accounts and records
Every registered person under GST maintains records in electronic form or otherwise at his principal place
of business as mentioned in the certificate of registration. The records would relate to:
Production/Manufacture of goods | Outward supply of goods/services | Stock of goods | ITC availed
Output tax payable | Output tax paid. |
Further, Rule 56 of CGST act prescribes maintenance of following records by registered person-
1. True and correct amount of
· Goods/service imported/exported
· Supplies under reverse charge
2. Particulars of suppliers and customers names and complete address
3. Particulars of premises where goods are stored
The responsibility to maintain the specified records is fixed on
· The owner | Operator of godown or warehouse where goods are stored | Every transporter

1. Specified accounts under GST

Input CGST Account | Input SGST Account | Input IGST Account
Output CGST account | Output SGST Account | Output IGST Account
Electronic Tax Ledger | Electronic Cash Ledger |Electronic Credit Ledger (To be maintained in Govt GST
Portal)
2. Other Provisions
· Add accounts/records may be maintained by a notified class of taxable persons as specified by
commissioner/chief commissioner in a notification.
· Further commissioner/chief commissioner may allow any class of taxable person to maintain
accounts in such manner as may be prescribed.
· Every registered person whose turnover during a financial year is above prescribed limit (i.e., 2crs)
must get his accounts audited by CA.
· Every registered taxable person must maintain the accounts and records for the period of 72
months. Such accounts shall be kept at every related place of business mentioned in the
certificate of registration
· Failure to maintain proper records in respect of goods/service shall
1. Allow proper officer to treat such unaccounted goods/services as if the taxpayer had
supplied them
2. Attract tax liability and penalty on such unaccounted goods.

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Exemptions [Section 11 of GST Act]
The government on recommendation of the GST council shall classify certain goods and services as exempt
from GST. Such exemptions may or may not be subject to some conditions. The illustrative list of exemptions
relating to goods and services:
Exempted Goods
1. Food: - Cereals, edible fruits & veggies and meat (not frozen, packaged or processed), coffee
beans (not roasted), Tender coconut, Jaggery, Tea leaves, Curd, flour, Lassi, Milk
2. Raw material: - Wool (not processed), raw silk, Silk waste, Firewood, Charcoal,
3. Tools/Instruments: - hand tools (such as spades & shovels), Hearing aids, handmade musical
instruments
4. Miscellaneous: - books, maps, live animals (except horses), props used in pooja, Kites, Bangles

Exempted services
1. Agricultural services: - All services. Except for the rearing of horses.
2. Transportation Services: - Transportation of goods by inland waterways, Transportation of
passengers by air (in states of Manipur, Meghalaya, Sikkim), Transportation service by road or
bridge on payment of tool
3. Services provided by Govt or diplomatic missionaries: - Service provided by RBI, By any foreign
diplomatic mission located in India, To diplomats including United nations, in respect to religious
pilgrimage
4. Education services
· Transportation of students and faculty, mid-day meal catering services, admission,
examination services
· Services by educational institutions to its student’s faculty and staff.
5. Medical services
· Services provided by veterinary clinic, healthcare services by paramedics or clinics
· Services provided by ambulance, charities,
6. Services provided by organizers
· for business exhibitions held outside India.
· Services provided by tour operators to foreign tourists
7. Miscellaneous services: -
· Services by an artist by way of performance in classical or folk art if the consideration
charged for such performance is not more than 1,50,000

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Job work
As per section 2(68) of CGST act, job work means any treatment or process undertaken by a person on goods
belonging to another registered person.
Here principal refers to the person who sends the goods for job work and the person doing the job worker
is known as a job worker.

Challan under job work

- All goods sent for job work must be accompanied by challan
- The challan will be issued for principal
- Issued even for the inputs or capital goods sent directly to the job worker
- Details of challan must be shown in GSTR-1
- Details of challan must also be filled through Form GST ITC-04
The challan issued must include following particulars
1. Date and number of delivery challan.
2. Name GSTIN & address of the consignor & consignee
3. HSN code, description and quantity of goods
4. Taxable value, tax rate, tax amount, CGST SGST IGST UTGST separately
5. Place of Supply and signature

Form ITC-04
Form GST ITC-04 must be submitted by the principal every quarter. H must include the details of challans in
respect of the following-
· Goods dispatched to a job worker
· Received from a job worker
· Sent from one job worker to another

ITC on goods sent for job work

The principal manufacturer will be allowed to take credit of tax paid on the purchase of inputs/capital goods
sent to job worker for job work, subject to the provisions relating to place of business and effective date for
sending goods

Other provisions for Job work

1. Specified time for return of goods: -
the goods are required to returned by job worker within one year or three years of effective date of sending
goods
2. Non receipt of goods within the specified time: -
if goods are not returned within the period such goods will be deemed as supply from the effective date.
The principal manufacturer will have to pay tax along with interest on such deemed supply. The challan
issued earlier will be treated as an invoice for such supply.
3. Job works exempt: -
Carrying out job work in relation to cultivation of plants, rearing of all life forms of animals, except horses,
for food, fiber, fuel, or other similar products, or agricultural produce is exempt under GST.
4. Registration for Job work under GST
A job worker providing services of value greater than 20 Lakhs is required to be registered under sec22 of
CGST act. Further any job worker may also get registered voluntarily
5. Liability to keep accounts & Records: -
The responsibility for keeping proper accounts for the inputs or capital goods shall lie with the principal
manufacturer.

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Steps to file return

From manufacturers and suppliers to dealers and consumers, all taxpayers have to file their tax returns with
the GST department every year. Under the new GST regime, filing tax returns has become automated. GST
returns can be filed online using the software or apps provided by Goods and Service Tax Network (GSTN)
which will auto-populate the details on each GSTR form. Listed below are the steps for filing GST return
online:

Step 1: Visit the GST portal (www.gst.gov.in).

Step 2: A 15-digit GST identification number will be issued based on your state code and PAN number.

Step 3: Upload invoices on the GST portal or the software. An invoice reference number will be issued against
each invoice.

Step 4: After uploading invoices, outward return, inward return, and cumulative monthly return have to be
filed online. If there are any errors, you have the option to correct it and refile the returns.

Step 5: File the outward supply returns in GSTR-1 form through the information section at the GST Common
Portal (GSTN) on or before 10th of the following month.

Step 6: Details of outward supplies furnished by the supplier will be made available in GSTR-2A to the
recipient.

Step 7: Recipient has to verify, validate, and modify the details of outward supplies, and also file details of
credit or debit notes.

Step 8: Recipient has to furnish the details of inward supplies of taxable goods and services in GSTR-2 form.

Step 9: The supplier can either accept or reject the modifications of the details of inward supplies made
available by the recipient in GSTR-1A.

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Tax collected at source
Tax collected at source under GST means the tax collected by an e-commerce operator from the
consideration received by it on behalf of the supplier of goods/services. These provisions are included with
the objective to reduce tax evasion via tax collected at each and every transaction.
The services provided by an ecommerce operator are exempted from TCS:
a. Hotel accommodation etc., supplies for unregistered suppliers
b. Transportation of passengers – radio taxi, motor cab or motorcycle.
c. Housekeeping services like plumbing, carpentry etc., supplied for unregistered suppliers

Registration requirements under TCS

The following persons are liable to register under GST, irrespective of turnover:
1). All e-commerce operators who are required to collect tax under TCS
2). The supplier of goods operating through such ecommerce operators provided their aggregate turnover
does not exceed 40 lakhs
3). The supplier of three supplies notified above provided their aggregate turnover exceeds 20 lakhs in a
financial year.
The supplier of services operating through such ecommerce operators need not register under GST. An
ecommerce operator must register separately as an ecommerce operator irrespective of the fact that it is
registered as a supplier under normal provisions. An ecommerce operator must register itself in every state
to which it supplies goods or services.

Rate and Payment of TCS

The provisions relating to rat and payment of TCS are as under:
1. Deducted during the month in which supply is made.
2. Deposited within 10 days from end of the month of supply to the credit of the government
3. Charged as one %age on the net value of taxable supplies.
4. Net value of taxable supplies = Total value of taxable supplies of goods or services LESS Taxable supplies
returned to the suppliers through the e-commerce operator.

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Demands under GST
Under GST, the proper officer can calculate and demand the following amounts of tax/credit under section
73, 74, 76, 77 of CGST act-
1) Tax not paid
2) Tax short paid
3) Tax erroneously refunded
4) ITC wrongly availed
5) ITC wrongly utilized
6) Tax collected but not deposited
7) Tax collected under wrong head

The first five elements are demand cases with

· No charge of fraud, willful mis-statement or suppression of facts (section 73) or with
· Charge of fraud, willful mis-statement or suppression of facts (section 74)

Further tax authorities shall prove demand, that is, whether tax has not been paid or erroneously refunded.
Tax payer shall prove his claim for ITC eligibility. Section 73 or Section 74 would apply to cases where –
· Audits are done by tax authorities or professional
· Summary assessment is quashed
· TDS is not deducted
· Taxpayer provides non satisfactory explanations.

Recovery under GST

Non-payment of amount as per demand order shall initiate recovery proceedings. Proper officer shall
proceed to recover the amount. The mode of recovery may be one or more of the following: -
1) Deduction from the amount owed to such a person: - This can be done by the proper officer
himself or some other officer who has control over the amount owing to such a person.
2) Detaining and selling goods: - belonging to such a person which is in control of a proper officer
or some other officer. Procedure and rules of auction shall be followed.
3) Payment by a third person: - after issue of notice to the proper officer. Third person would be
one to whom:
· Money is due | May become due to such person | Holds money for such person
· May subsequently holds money for such person

4) Detain and sell any property belonging to the defaulter: - Proper officer may detain property
belonging to or under the control of the defaulter. After 30 days of detention, if the amount is
still unpaid, the proper officer may sell the property and recover the amount.
5) Recovers as if arrears of land revenue: - The proper officer may prepare a certificate and send it
to any authorized officer of the Govt for recovery, as if the required amount is arrears of land
revenue
6) Apply to magistrate to recover amount as fine: - The proper officer may file an application to
appropriate magistrate to recover the required amount as fine
7) Other modes of recovery: -
· Enforcement of court’s order relating to amount payable to defaulter
· Attachment of property in custody of courts or public officer
· Recovery against prior bonds executed
· Proper officer under SGST/UTGST can recover the amount due under CGST together with
the recovery of SGST/UTGST.

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Inspection under GST [Section 67 of CGST Act]
Inspection refers to accessing any place of businesses of a taxable person or transporter or owner/operator
of godown/warehouse or any other place. It has fewer consequences than provisions under search. It can
be done by any officer of CGST/SGST/UTGST only upon a written authorization by Joint commissioner or an
officer of higher rank. It happens when Joint commissioner or officer of higher rank has reasons to believe
that any person with an objective to evade tax has: -
· Suppressed any transaction of supply
· Suppressed stock in hand
· Claimed excess ITC
· Contravened any provisions under the act.

Search under GST [Section 67 of CGST Act]

Search is careful examination of place object person in order to find something concealed or to discover
evidence of a crime. It requires proper and valid authority of law. Under GST it can be done by any officer of
CGST/SGST only upon written authorization by JC or an officer of higher rank. It happens when JC or officer
of higher rank has reasons to believe
· There are goods liable for confiscation
· Documents, books or things hidden which will be useful during proceedings.
Such Jc or officer of higher rank shall issue a search warrant containing:
· Violation under the act
· Place to be searched
· Name and designation of person authorized to search
· Period of validity of search

Seizure under GST [Section 67 of CGST Act]

Seizure refers to taking possession of documents, books, property etc., by an officer during the legal process.
This would generally happen forcibly against the wishes of the person who is the owner/possessor of such
documents, books property etc. Seizure transfers only the authority to examine and inquiry but not
ownership. A notice of goods, property etc. being seized is to be served within six months of seizure. The
seized documents shall be kept by the officer till it seems necessary for examination and inquiry. Some
documents/books may be returned within 30 days of such notice, if found irrelevant for examination and
inquiry.

Arrest under GST [Section 67 of CGST Act]

Refers to taking a person into custody under some lawful command or authority. Commissioner can
authorize CGST officer to arrest a person if he has reasons to believe that such person should be so arrested
under an offense
Types of arrest
a) Cognizable and non bailable offense: -
· Person arrested must be informed in writing of the grounds of arrest
· Must be produced before magistrate within 24hrs of arrest
b) Non cognizable and bailable offense: -
· Deputy/Assistant commissioner can release him on bail or forward to the custody of
magistrate
· Proper officer has powers similar to that of office in-charge of a police station

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Offenses
Offenses under GST are covered by section 73, 74, 122, 132 of CGST act. Offenses under section 73 and 74
are covered in demands.
Offenses under section 132 of CGST act
Offenses by a taxable person shall be when he:
· Supplies any goods/services without any invoice or issues a false invoice
· Does not supply any goods/services but issues an invoice
· Collect GST but does not deposit the same to the govt within 3 months
· Collect GST in contravention of provisions of law and does not deposit the same to the govt within
3 months.
· Is already convicted under sec 132 before.

Offenses under sec122 of CGST Act

Section 122 states person liable for the following offenses
· Supplies or receives any goods in contravention of provision under GSt.
· Supplies any goods liable to tax without having applied for registration.
· Contravenes any provisions with intent to evade tax.
· Uses any conveyance for transportation of goods in contravention of provisions under GST
· Does not account for goods on which he is liable to pay tax.
· Does not issue or issue incorrect or false invoice.
· Issues any invoice or document by using the registration number of another person.
· 
Issues invoice without supply and avails ITC on such invoice.
· Suppresses turnover or fraudulently obtains refund of tax.
· Collects any tax which is not paid to the Government within 3 months from the due date of
payment.
· Deducts or collects, lesser amount than required under Section 51 or 52 or fails to pay the same
to the Government.
· Takes or distributes ITC in contravention of Section 20
· Falsifies or fails to retain financial records, accounts or documents.
· Fails to furnish or furnishes false information or return or documents.
· Fails to obtain registration even though liable to do so.
· Transports any taxable goods without the cover of documents.

· Tampers or destroys any material evidence or documents or goods that have been detained,
seized, or attached.
· Obstructs or prevents any officer in discharge of his duties.
· Aids or abets any of the offenses specified under Section 122.
· Possesses, transports, stores, supplies, purchases etc. goods which he believes are liable to
confiscation.

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Advance ruling under GST [Section 95 of CGST Act]
It is a written ruling or interpretation of tax laws provided by authority to applicant or taxpayer on request
related to certain tax matters. It is issued by tax authorities to corporations or individuals who request for
clarification of certain tax matters to avoid disputes, litigation, hurdles etc. at a later stage. An advance ruling
is often requested when the taxpayer is confused and uncertain about certain provisions. Advance ruling is
applicable on: -
a. Classification of any goods or services under the act
b. Applicability of notification which affects the rate of tax
c. Determination of supply time and value of supply of goods or services
d. Whether input tax credit paid
e. Determination of the liability to pay tax on any goods services
f. Whether the applicant has to be registered under GST
g. Whether any particular thing done by the will be allowed applicant regarding goods/services will
result in supply

Procedure of Advance ruling

Applicant tax payer should submit an application for advance ruling in form GST ARA-01 along with fees of
Rs5000. On receipt of the application AAR forwards a copy to the prescribed officer and he will furnish the
necessary relevant records. Later the application is examined by the AAR who shall pass the order either
admitting or rejecting the application.

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Refunds
Refund means paying back. Refund will arise usually when the amount paid under GST is more than the
amount required to be paid (i.e. GST liability) provided the burden is not passed by the buyer.
Like other processes, the process of claiming refund is online and standardized to avoid confusion. A claim
of refund arises when-
· Excess payment of tax is made due to mistake (intra-state supply treated as interstate and vice
versa) or omission.
· Refund of pre deposits.
· Export of goods/ services (including deemed export) under claim of rebate or refund
· Output tax (if paid) and unutilized ITC on zero rated supplies (exports).
· ITC accumulation due to supplies other than exempt or nil-rated supplies (under inverted duty
scheme)
· Refund of tax paid on purchases made by Embassies or UN bodies.
· Tax Refund for International Tourists.
· Finalization of provisional assessment.
· In case of advance payments, refund vouchers are issued against such goods and services which
were never supplied.

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GST Practitioner
A CSTP is a registered and certified GST consultant/specialist/professional who offers online services to
taxpayers. Before starting their practice, they need to complete the application procedure on the GSTN
Portal. Clients can authorize a GSTP for various activities on their behalf.
Once authorized, a GSTP will prepare and digitally sign or electronically verify the required statements. The
client will receive an SMS/Email confirmation upon statement submission by the GSTP. The client can also
access the statement on the GSTN portal.
The client holds responsibility for the accuracy of the statement filed by the GSTP. It is essential for the client
to verify and confirm the statement's accuracy within the specified due date. Failure to do so will result in
the statement being automatically considered confirmed.

Role of GSTP
GSTP facilitates smooth flow of various compliances under the GST Regime. He/she can on behalf of a
registered person/ taxpayer/client:
◦ Furnish details of outward and inward supplies.
◦ Furnish monthly, quarterly, annual or final return.
◦ Deposit any credit into the Electronic Cash Ledger.
◦ File a claim for refund. However, a confirmation from the taxpayer is mandatory.
◦ File application for cancellation or amendment of registration. However, a confirmation from the
taxpayer is mandatory.

◦ View complete list of taxpayers who are engaged in an account.
◦ Make changes in the profile of client like place of business, contact details, other business information.
However, such changes would be saved and the client himself has to submit the information to tax
authorities.
◦ Help client to generate an e-way bill for movement of his goods.
◦ Help client in issuance of tax invoices, delivery challan, procedure for GST registration, cancellation,
and any GST updates.
◦ Accept or reject the application as a consultant from fellow taxpayer.
Accept authority from the taxpayer for the activities which he can access.

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