CS EXECUTIVE

GST REVISION
FOR DEC 24

CMA VIPUL SHAH

CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

GST REVISION FOR 2024 EXAM

INDEX
SN CHAPTER NAME PAGE NO
1 CONCEPT & GST 3
2 CHARGE OF TAX 10
3 SUPPLY UNDER GST 14
4 EXEMPTION 24
5 REVERSE CHARGE UNDER GST 37
6 COMPOSITION SCHEME 45
7 PLACE OF SUPPLY 51
8 TIME OF SUPPLY 58
9 VALUE OF SUPPLY 63
10 PAYMENT OF TAX 68
11 INPUT TAX CREDIT 76
12 REGISTRATION 87
13 RETURNS 101
14 TAX INVOICE CREDIT & DEBIT NOTES 110
15 ACCOUNTS, RECORDS & E WAY BILL 118
16 ASSESSMENT & AUDIT 121
17 DEMANDS AND RECOVERY 125

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 11
CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 22
CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

CHAPTER 1 GST IN INDIA – AN INTRODUCTION

1 WHAT IS TAX? 3 WHY GST IS IMPORTANT 3.2 GST – A CURE FOR ILLS EXISTING INDIRECT TAX
a) Tax is money that people have to 3.1 NEED FOR GST IN INDIA a) GST is a value added tax levied on
pay to Government, which is In earlier indirect tax regime, a manufacturer of manufacture, sale & consumption of goods &
used to provide public services. excisable charged excise duty [CENVAT] & value services.
b) Tax is not a voluntary payment added tax [VAT] on intra-State sale of goods. b) GST offers continuous chain of tax credit
or donation, but an enforced ➢ An VAT dealer on his subsequent into-state sale from producer's point/service provider's
contribution. of goods, charged VAT on value comprising of point up to retailer's level / consumer's level
2 DIRECT TAX & INDIRECT TAX [basic value + excise duty charged by thereby taxing only value added at each
DIRECT TAX manufacturer + profit by dealer]. state of supply chain
It is a kind of charge Direct Taxes ➢ Set off of one against the credit of another c) Supplier at each stage permitted to avail
that is imposed directly taxpayer & was not possible as Central Excise Duty was a credit of GST paid on purchase of goods
Paid directly to Government by the central levy and State-Level VAT was a State and/or
persons on who it is imposed. It levy. d) services & can set off this credit against
cannot be shifted to other. ➢ Moreover, Central Excise Duty was applicable GST payable on supply of goods & services to
INDIRECT TAX only at manufacturing level & not at distribution be made by him.
If taxpayer is just a conduct
levels. Only final consumer bears the GST charged
[Pipeline] at every stage the tax-
Earlier service tax payable on all 'services' other by last supplier in the supply chain, with set-
incidence is passed on till it finally
than Negative list of services or otherwise exempted off benefits at all the previous stages.
reaches the consumer, who really
Other deficiencies are non-integration of VAT &
bears the brunt of it, such tax is
service tax.
indirect tax.
➢ Double taxation of a transaction as both goods
Indirect tax is one that can be
and services.
shifted by taxpayer to someone
➢ Inclusion of Central Excise Duty in the value
else.
for imposing VAT.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 33
CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

4 4.2 FRAMEWORK OF GST

GST STRUCTURE IN INDIA
4.1 DUAL GST
GENESIS [STARTING] OF GST IN INDIA
a) India has adopted dual GST model in view of the federal structure of
a) Idea of GST mooted [proposed] by Kelkar Task Force in
the country.
2004. b) Central & States simultaneously levy GST on taxable supply of goods
b) Union Finance Minister Shri P. Chidambaram, while presenting or services or both which, takes place within a Sate or Union Territory.
the Central Budget [2007-2008], announced that GST would c) Central has power to tax intra-state sales & States are also
be introduced from April 1, 2010. Since then, GST missed empowered to tax services.
several deadlines.
d) GST extends to whole of India including J & K.
c) Talks of GST Gained momentum in 2014 when NDA Govt. tabled
e) There is single legislation CGST Act, 2017 for levying CGST.
the Constitution [122nd Amendment] Bill, 2014 on GST in
f) UT without State Legislatures Andaman and Nicobar Islands,
Parliament on 19th December, 2014.
Lakshadweep, Dadra and Nagar Haveli & Daman and Diu and Chandigarh,
d) Lok Sabha Passed the bill on 6th May, 2015 and Rajya Sabha on
Ladakh are governed by UTGST Act, 2017 for levying UTGST.
3rd August, 2016.
g) States & UT with their own legislatures Delhi, Puducherry, & Jammu
e) Ratification of the Bill by more than 50% of States,
and Kashmir have their own GST legislation for levying SGST.
Constitution [122nd Amendment] Bill, 2014 received assent of
h) GST is destination-based tax applicable on all transactions involving
President on 8th September, 2016 and became Constitution
supply of goods & services for a consideration subject to exceptions
[101st Amendment] Act, 2016.
thereof.
f) On 27th March, 2017 Central GST legislations = Central
i) GST include
Goods and Services Tax Bill, 2017, Union Territory Goods and
➢ Central Goods & Service Tax [CGST] – levied & collected by CG.
Services Tax Bill, 2017 and Goods and Services Tax
State Goods & Service Tax [SGST] – levied and collected by
[Compensation to States] Bill, 2017 were introduced in Lok
➢ SG/UT with State Legislatures,
Sabha.
Union Territory Goods & Service Tax [UTGST] – levied and
g) Lok Sabha passed these bills on 29th March, 2017 & with the
collected by UT without State Legislatures, on intra-state supplies
receipt of President's assent on 12th April, 2017, the Bills
➢ of taxable goods and/or services.
were enacted.
Inter-State supplies of taxable goods & /or services are subject
h) France was first country to implement GST in the year 1954.
to IGST is approximately sum total of CGST & SGST / UTGST and
i) Now about 160 countries across the world have adopted GST.
➢ is levied by CG on all inter-State supplies.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 44
CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

4.3 WHICH TAXES ARE SUBSUMED IN GST? 5.2 ARTICLE 265

CENTRAL STATE Articles 265 Prohibits arbitrary [individual discretion] collection of tax, it
Excise Duty VAT states that 'no tax shall be levied or collected except by authority of law”.
CVD and Special CVD of Entry Tax and Octroi
5.3 ARTICLE 246
Custom
a. it gives respective authority to Union & State Governments for levying
CST Entertainment tax
tax.
Service Tax Tax o Advertisement
4.4 WHICH TAXES NOT SUBSUMED IN GST? b. Seventh Schedule to Article 246 it contains three lists which
CENTRAL STATE enumerate [specify individually] the matters under which Union & State
Custom Duty Property Tax Governments have the authority to make laws.
Anti – Dumping Duty Stamp Duty LIST-I UNION LIST it contains matters in respect of which
Export Duty Electricity Tax parliament [CG] has exclusive right to make law.
Road and Passenger Tax
LIST –II STATE LIST it contains matter in respect of which SG has
Toll Tax
exclusive right to make law.
5 CONSTITUTIONAL PROVISION LIST – III CONCURRENT LIST it contains matters in respect of

a. India has three-tier federal structure, comprising Union Govt. which both CG & SG have power to make laws.
State Govts & Local Govt. 5.4 ARTICLE 246A
b. Power to levy taxes & duties is distributed among three tiers 1. Notwithstanding anything contained in articles 246 and 254,
Govts. As per Indian Constitution. Parliament, and, subject to clause (2), the Legislature of every State,
c. Power to Levy& collect taxes emerges from Constitution of have power to make laws with respect to goods and services tax
India. imposed by the Union or by such State.
d. If any Act, Rule, Notification or order is not in conformity
2. Parliament has exclusive power to make laws with respect to goods and
with Constitution, it is called ultra vires the Constitution & is
services tax where the supply of goods, or of services, or both takes
illegal & void.
5.1 ARTICLE 245 place in the course of inter- State trade or commerce.
Articles 245 of Constitution deals with relationship between Union
& States. Parliament may make laws for whole or any part of
territory of India, & legislature of State may make laws for whole
or any part of State.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 55
CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

5.5 ENTRY NO 84 OF UNION LIST b. President constituted for GST Council on 15th September, 2016.
Duties of excise on the following goods manufactured or produced in c. Union Finance Minister is chairman of this Council & Ministers in charge
India, namely:
of Finance / Taxation or any other Minister nominated by each States &
a. Petroleum Crude
UTs with legislatures are its members.
b. High Speed Diesel
d. GST Council make recommendations to Union & States on important
c. Motor Spirit (Commonly known as petrol)
issues like tax rates, exemptions, threshold limits, dispute resolution etc.
d. Natural gas
e. Aviation turbine fuel; and
e. One half of total member constitute the quorum Every decision of GST
f. Tobacco and Tobacco products. Council taken by majority not less than ¾ of weighted votes of members
5.6 ENTRY NO 51 OF STATE LIST present & voting.
ED on Alcoholic Liquor, Opium, Indian Hemp & other Narcotic Drugs f. Centre has weightage of one-third of total votes cast and votes.
5.7 ENTRY NO 54 OF STATE LIST g. All SG taken together has weightage of two-thirds of total votes cast,
Taxes on the sale of in that meeting.
a petroleum crude, 6 function of GST council
b High Speed Diesel, a The taxes, cesses and surcharges levied by the Union, the States and the
c Motor Spirit (Commonly known as petrol),
local bodies which may be subsumed in the Goods and Services Tax;
d natural gas
b The goods and services that may be subjected to, or exempted from the
aviation turbine fuel and alcoholic liquor for human consumption, but
e not including sale in goods and services tax;
the course of interstate trade or commerce or sale in the course of c Model Goods and Services Tax Laws, principles of levy, apportionment of
f international trade or commerce of such goods.”; Goods and Services tax levied on supplies in the course of inter-state
5.8 ARTICLE 269A: LEVY AND COLLECTION OF GST ON INTER-STATE SUPPLY trade or commerce under article 269A and the principles that govern the
Levied & collected by Government of India & apportioned between place of supply;
a. Union & States as per law. d The threshold limit of turnover below which goods and services may be
Import of Goods or services or both into India deemed to be in the exempted from goods and services tax;
course of inter-state trade or Commerce. This will give power to e Any special rate or rates for a specified period, to arise additional
b. CG to levy IGST on import transactions.
5.9 GST COUNCIL: ARTICLE 279A
resources during any natural calamity or disaster;
Article 279A empowers President to constitute a joint forum of
f Special provision with respect to the States or Arunachal Pradesh,
Centre & States namely, Goods & Services Tax Council [GST Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland,
a. Council]. Sikkim, Tripura, Himachal Pradesh and Uttarakhand; and

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 66
CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

7 LEGISLATIVE FRAMEWORK 9 RESTRATION UNDER GST

GST COMMON PORTAL
a. Common GST Electronic Portal www.gst.gov.in a website
managed by GSTN, a company incorporated u/s. 8 of
Companies Act, set by Govt. to establish a uniform interface State/UT other than Special
for tax payer & a common & shared IT infrastructure between Category State
Centre & States.
Rs. 20 Lakhs
b. Functions of GSTN include facilitating registration; Supply of
payment of tax; return filing; forwarding returns to Central & Goods/Services
Rs. 10 Lakhs
State authorities; computation & settlement of IGST; Both
matching of tax payment details with banking network; Special Category States as
providing various MIS reports to CG & SG based on taxpayer per section 22
return information; providing analysis of taxpayers' profile; & (Mizoram, Nagaland, Tripura
running matching engine for matching, reversal & reclaim of and Manipur)

input tax credit.

8 SPECIAL PROVISION WITH RESPECT TO THE STATE
For State/UT (Subject to certain
Arunahal Pradesh, Assam, Jammu & Kashmir, Manipur, Meghalaya, Exclusive Supply Rs. 40 Lakhs
exceptions)
of Goods
Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and
Uttarakhand

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 77
CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

10 CLASSIFICATION OF GOODS AND SERVICES 11 UTILISATION OF ITC

Input tax credit Output liability on Output liability on Output liability

HSN SAC on account of account of account of Central on account of
integrated tax Tax State
Tax/Union
Territory Tax
Harmonized System Service Accounting
Integrated Tax (I) (II) – In any order or in any proportion
of Nomenclature Code
(III) Input Tax Credit on account of Integrated tax to be completely exhausted
mandatorily
Central Tax (V) (IV) Not permitted
State (VII) Not Permitted (VI)
Used for Classifying Used for Classifying
Tax/UTGST
the Goods the Services

12 GST COMPENSATION CESS

1. The GST Council in its 10th meeting held on 18th February, 2017 approved the “GST compensation to states” bill that provides for the
compensation of loss arising out of introduction of Goods and Service Tax in India.
2. The Union Government presents the Goods and Service Tax (Compensation to States) Bill, 2017 in lok sabha on 27th March, 2017 and the
same has been passed by lok sabha on 29th March, 2017. The Rajya sabha passed the bill on 6th April, 2017 and was assented by the
President on 12th April, 2017.
3. The financial year 2015-16 shall be taken as base year for the purpose of calculating compensation amount payable to the States.
4. The revenue to be compensated consists of revenues from all the taxes that are levied by the States which are now to be subsumed under
goods and services tax, as audited by the comptroller and auditor general of India.
5. The projected growth rate of revenue during transition period shall be 14%.
The compensation shall be released bi-monthly on provisional basis and final adjustment shall be made after getting audited accounts of
the year from the Comptroller and Auditor General of India.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 88
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6. Provided that no such cess shall be leviable on supplies made by a taxable person who has decided to opt for composition levy under
section 10 of the Central Goods and Services Tax Act.
7. Provided further that the cess on goods imported into India shall be levied and collected in accordance with the provisions of section 3
of the Customs Tariff Act, 1975, at the point when duties of customs are levied on the said goods under section 12 of the Customs Act,
1962, on a value determined under the Customs Tariff Act, 1975.
8. Cess is applicable till 31st March 26.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 99
CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

CHAPTER 2 CHARGE OF TAX & APPLICATION OF CGST & IGST

1 SEC 9 CGST ACT 2017 1.3 SEC 9(3) REVERSE CHARGE ON SUPPLY OF GOODS OR SERVICES
• Recipient Pay GST on notified categories of supply of goods or services.
1.1 SEC 9(1) CGST • All provisions of GST Act apply to recipient, as if he is person liable to pay
Subject to the provisions of sub-section (2), The shall be Tax.
levied a tax called the Central Goods and Services Tax on • Under RCM Registration is compulsory without any turnover limit
• all intra-state supply of • Credit of tax paid on RCM is available only after payment and cannot be
• Goods or services or both Except on Alcoholic liquor
adjusted against existing ITC
• On value u/s 15 paid by Taxable person 1.4 SEC 9(4) REVERSE CHARGE ON GOODS OR SERVICE RECEIVED FROM UNREGD SUPPLIER
• Max Rate 20% • Registered Person Pay GST on supply of taxable goods/ services received
1.2 SEC 9(2) GOODS OUT SCOPE OF GST from unregistered supplier
• Petroleum Crude, • Under RCM Registration is compulsory without any turnover limit
• High Speed Diesel, • Credit of tax paid on RCM is available only after payment and cannot be
• Motor Spirit (Petrol) adjusted against existing ITC
• Natural Gas & 1.5 SEC 9(5) ON SPECIFIED CATEGORY OF SERVICES
• Aviation Turbine Fuel GST paid by e-commerce operator (ECO)
ANALYSIS • Supplied through E-Commerce Operator
Supply Production Sale 1. Hotel [OYO Rooms]
GST ED VAT CST 2. Housekeeping [urban clap]
Alcoholic Liquor for Human No Yes Yes Yes 3. Cab and OLA / Uber
Consumption
4. Supply of restaurant service (Cloud Kitchen) other than the services
Petroleum Crude, High No Yes Yes Yes
Speed Diesel, Motor Spirit supplied by restaurant, eating joints etc. located at specified premises.
(Petrol), Natural Gas, 5. “Specified premises” means premises providing hotel accommodation
Aviation Turbine Fuel service having declare traffic of any unit of accommodation above Rs.
Tobacco / tobacco product Yes Yes No No 7,500/- per unit per day or equivalent.
All other products Yes No No No NOTE
CGST RATES If turnover crosses limit of registration then Hotel, Housekeeping and
CGST Rate 0% 2.5% 6% 9% 14% Restaurant service or eating joint in a specified premise will have to pay GST
SGST Rate 0% 2.5% 6% 9% 14% and not ECO except cab operator, Restaurant service or eating joint it is always
Total 0% 5% 12% 18% 28% paid by ECO.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 10
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If above services are directly provided then GST will be applicable 1. exempt generally, either absolutely or subject to such conditions
to service provided if turnover crosses registration limit.
as may be specified therein, goods or services or both of any
PROVISO 9(5)
specified description from the whole or any part of the tax leviable
If ECO doesn't have Physical Presence in TT – Person
Representing ECO thereon with effect from such date as may be specified in such
PROVISO 9(5) notification.
• If ECO doesn't have Physical presence in TT and not having 2. by special order in each case, under circumstances of an
Representative in TT – ECO shall Appoint person for paying exceptional nature to be stated in such order, exempt from
GST.
payment of tax any goods or services or both on which tax is
• All the provisions apply to ECO (electronic commerce
leviable
operator) as if he is supplier liable to pay tax.
2 SEC 5 OF IGST ACT 2017
3. sub Section (1) or order issued under sub Section (2), insert an
2.1 SEC 5(1) IGST Explanation in such notification or order, as the case may be, by
• Subject to the provisions of sub Section (2), there shall be notification at any time within one year of issue of the notification
levied a tax called the or order
• integrated goods and services tax All inter-state supply of 4 SEC 7 LEVY AND COLLECTION OF UTGST
• Goods or Service
Levy of UGST: Subject to the provisions of sub-section (2) the shall
• Except on Alcoholic liquors be levied a tax called the Union Territory Tax.
• On value u/s 15 paid by Taxable person • On all Intra-State supplies of goods or services or both, except on
• On value u/s 14 of Custom Act (for import of goods) the supply of alcoholic liquor for human consumption.
• Max Rate 40% • On the value determined under sec 15 and
2.2 SEC 5(2) GOODS OUT OF GST
• At such rates, not exceeding twenty per cent., as may be the
• Petroleum crude, high speed diesel, motor spirit (petrol),
Government on the Recommendations of the council and
natural gas & Aviation Turbine Fuel
Sec 5(2) of UGST Same as Sec 9(2) of CGST Collected in such manner as may be prescribed and shall be paid be the
Sec 5(3) of UGST Same as Sec 9(3) of CGST taxable person
Sec 5(4) of UGST Same as Sec 9(4) of CGST
Sec 5(5) of UGST Same as Sec 9(5) of CGST

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 11
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Sec 7(2) of UGST Same as Sec 9(2) of CGST 4. Supply of services imported into the territory of India shall be
Sec 7(3) of UGST Same as Sec 9(3) of CGST treated to be a supply of services in the course of inter – state
Sec 7(4) of UGST Same as Sec 9(4) of CGST trade or commerce.
Sec 7(5) of UGST Same as Sec 9(5) of CGST 5. Supply of goods or services or both,
5 MEANING OF INTERSTATE SUPPLY When the supplier is located in India and the place of supply
5.1 SECTION 7 OF IGST ACT INTERSTATE SUPPLY MEANS a. is outside India; Export
1. Subject to the provisions of Section 10, supply of goods, where To or by a Special Economic Zone developer or a Special
the location of the supplier and the place of supply are in: b. Economic Zone unit; or
a. 2 different States; In the taxable territory, not being an intra state supply and
b. 2 different Union Territories; or c. not covered elsewhere in this Section,
c. A State and a Union Territory Shall be treated to be a supply of goods or services or both in the course
Shall be treated as a supply of goods in the course of inter– of inter – state trade or commerce.
6 MEANING OF INTRASTATE SUPPLY
State trade or commerce.
6.1 SECTION 8 OF IGST ACT INTRA STATE SUPPLY
2. Supply of goods imported into the territory of India, till they 1. Subject to the provision of Section 10, supply of goods where the
cross the customs frontiers of India, shall be treated to be
location of the supplier and the place of supply of goods are in the
a supply of goods in the course of inter – State trade or
same State or same Union territory shall be treated as intra–
commerce.
State supply:
3. Subject to the provisions of Section 12, supply of services,
a. Shall Not Be Treated As Intra State
where the location of the supplier and the place of supply
Supply of goods to or by a Special Economic Zone
are in:
• developer or a Special Economic Zone unit;
a. 2 different states;
Goods imported into the territory of India till they cross
b. 2 different union territories; or
• the customs frontiers of India; or
c. A state and a union territory 2. Subject to the provisions of Section 12, supply of services where
Shall be treated as a supply of services in the course of inter – the location of the supplier and the place of supply of services are
state trade or commerce. in the same State or same Union territory shall be treated as intra–
State supply

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 12
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7 SUPPLY IN TERRITOTRIAL WATERS

7.1 SECTION 9 OF IGST ACT SUPPLY IN TERRITORIAL WATERS
Notwithstanding anything contained in this Act:
• Where the location of the supplier is in the territorial waters,
the location of such supplier; or
• Where the place of supply is in the territorial waters, the place
of supply, shall, for the purposes of this Act, be deemed to be
in the coastal State or Union territory where the nearest point
of the appropriate baseline is located.
8
ZERO RATED SUPPLY
8.1
SEC 16 OF IGST ACT ZERO RATED SUPPLY
1. “zero rated supply” means any of the following supplies of goods
or services Zero rated or both, namely:
a. Export of goods or services or both; or
Supply of goods or services or both to a Special Economic
b. Zone developer or a Special Economic Zone Unit
2. ITC available in the form of Refund.
3. Credit of input tax may be availed for making zero rated
supplies, notwithstanding that such supply may be an exempt
supply. [Section 16(2)]

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 13
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

CHAPTER 3 SUPPLY UNDER GST

1. DEFFINATIONS • ESTABLISHMENT IN ANOTHER COUNTRY – EXPLANATION TO SEC 8 OF

IGST ACT
1.1 PERSON U/S. 2(84) OF CGST ACT
• For the purposes of IGST Act
Includes individual; HUF; company; firm; LLP; association of persons • Where a person has establishment in India any other
or body of individuals, in India or outside India; corporation establishment outside India. Then such establishment shall be
established under central, state or provincial Act or Govt. company;
treated as establishment of distinct person
body corporate incorporated outside India; co-operative society;
1.4 TAXABLE PERSON SEC 2 (107)
local authority; CG or SG; society, trust; & artificial juridical person,
• Means taxable person is a person who is registered or liable to be
not falling above;
1.2 DEEMED DISTINCT PERSON U/S 25(4) registered u/s. 22 or 24.
• A PERSON WHO HAS OBTAINED OR IS REQUIRED TO OBTAIN • Unregistered person liable to be registered is a taxable person.
MORE THAN ONE REGISTRATION • Voluntary registered is also a taxable person.
1.5 CASUAL TAXABLE PERSON SEC 2(20)
a. Whether in one State or Union Territory or
Means a person who occasionally undertakes transactions
b. More than one State or Union Territory shall,
• involving supply of goods or services or both
In respect of each such registration, be treated as distinct
• in the course of furtherance of business,
c. person for the purposes of this Act
1.3 ESTABLISHMENT IN DIFFERENT STATE U/S 25(5) • whether as principal, agent or in any other capacity,
• ESTABLISHMENT IN DIFFERENT STATE • in a State or a Union territory where he has no fixed place of
Where a person who obtained or is required to obtain business
registration in a State or Union territory in respect of an 1.6 NON-RESIDENT TAXABLE PERSON SEC 2(77)
establishment, has an establishment in another State or Means any person who occasionally undertakes transactions
Union Territory, Then such establishment shall be treated • Involving supply of goods or services or both,
as establishment of distinct persons for the purposes of
• Whether as principal or agent or in any other capacity,
• this Act.
• But who has no fixed place of business or residence in India
1.7 ECO SEC 2(45)
• means any person who owns, operates or manages digital or electronic
facility or platform for electronic commerce

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 14
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

The threshold limits for registration would not apply and he ➢ EXEMPT SUPPLIES COMPRISE THE FOLLOWING 3 TYPES OF SUPPLIES
would be required to obtained registration irrespective of • Supplies taxable at a 'NIL' rate of tax;
KEY NOTES

• his turnover; Supplies that are wholly or partially exempted from CGST or
He is required to deduct an amount as tax out of the • IGST, by way of a notification;
consideration paid or payable by him to the actual supplier • Non-taxable supplies
• of goods or services or both made through such operator; Taxable Supply Exempt Supply
1.8 SUPPLIER U/S. 2(105) OF CGST ACT 1. Yes, Non-Taxable
• in relation to any goods or services or both, shall mean the Supply of Alcoholic Liquor supply is exempt

person supply the said goods or services or both and shall include for human consumption ---------- supply.

an agent acting as such on behalf of such supplier in relation to 2. Supply of Beer Shampoo
the goods or services or both supplied. @ 20% Yes, GST leviable Not exempt supply
1.9 RECIPIENT U/S. 2(93) OF CGST ACT 3. Supply chargeable to Nil Nil rated are exempt
a. The person who is liable to pay that consideration; rate Yes, GST leviable supply
1.12 MONEY U/S. 2(75) OF CGST ACT
b. Where no consideration is payable for the supply of goods, the
• Means Indian legal tender or any foreign currency, cheque,
person to whom the goods are delivered or made available, or to
promissory note, bill of exchange, letter of credit, draft, pay order,
whom possession or use of the goods is given or made available;
or other instrument recognized by RBI to settle an obligation but not
and
include currency held for its numismatic [collection & study of money]
c. Where no consideration is payable for the supply of a service,
value.
the person to whom the service is rendered, and any reference 1.13 SECURITIES
to a person to whom a supply is made shall be constructed as a • Shares, Scripts, stocks, bonds, debentures, debenture stock or other
reference to the recipient of the supply and shall include an marketable securities of a company.
agent acting as such on behalf of the recipient in relation to the • Derivative, options, futures, swaps, forward agreements, etc
goods or services or both supplied; • Security Receipt.
1.10 NON-TAXABLE SUPPLY U/S 2(78) • Units of mutual fun
• Non-Taxable supply means a supply of goods or service or both • Any certificate or instrument in case of asset / debt-securitisation;
which is not leviable to tax under this act or IGST act. government securities;
1.11 EXEMPT SUPPLY U/S 2(47) • Rights or interest in securities

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 15
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

1.14 GOODS U/S. 2(52) OF CGST ACT 1.17 BUSINESS U/S 2(17)
• Means every kind of movable property other than money &
a. Any trade, commerce, Manufacture, profession, vocation, adventure,
securities but includes actionable claim, growing crops, grass & wager or any other similar activity, whether or not it is for a
things attached to or forming part of land which are agreed to pecuniary [relating to money] benefit;
be severed before supply or under a contract of supply.
EXAMPLE: Academy for CA, CS AND CMA
• But Under GST, Actionable claim relating to lottery, betting &
b. Any activity or transaction in connection with or incidental or
gambling only will be regarded as' goods
ancillary to sub-clause (a);
1.15 SERVICE U/S 2(102)
EXAMPLE:
• Services means anything other than goods, money and
Issue of notes to students is in connection with a above.
securities but includes activities relating to the use of money
Renting of classroom for other purpose is incidental to a above
or its conversion by cash or by any other mode, from one form,
c. Any activity or transaction in the nature of (a) above, whether or not
currency or denomination, to another form, currency or
there is volume, frequency, continuity or regularity of such
denomination for which a separate consideration is charged.
transaction;
• For removal of doubts, it is hereby clarified that the expression
EXAMPLE: A class owner provides consultancy regarding how to
“services” includes facilitating or arranging transactions.
start new class for consideration.
1.16 CONSIDERATION U/S. 2(31) OF CGST ACT
d. Supply or Acquisition of goods, capital goods & services for
• In relation to supply of goods or services or both includes any
commencement or closure of business;
payment made or to be made, whether in money or otherwise,
EXAMPLE: It covers purchase of capital assets before
for supply of goods or services or both, but shall not include
commencement of business or sale of stock or assets after closure
subsidy given by CG or SG.
of class.
• However, deposit given for supply of goods or services or both
not considered as payment unless supplier applies such deposit
as consideration for said supply.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 16
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

e. Provision by A club, association, society, or any such body of the i. Any activity or transaction Undertaken by CG, a SG or any local
facilities or benefits to its members; authority in which they are engaged as public authorities.
EXAMPLE: Facilities or benefits provided by club etc., are EXAMPLE:
i. Sports facilities like Swimming Pool, table tennis, cricket etc. NOTES: This clause makes it clear that even the supplies of goods
ii. Restaurant Facility or services or both undertaken by the Central Government, a State
iii. Banquet or open ground Government or any local authority shall also get in the definition of
iv. Accommodation facility (rooms) business.

v. Library 1.18 WORKS CONTACT

vi. Conference room etc. Building

f. Admission for a consideration, a person to any premises; Construction Wherein transfer of

EXAMPLE: Entry tickets to amusement park, Diwali Mela, Cinema Fabrication property in goods
Theatre etc. Completion (whether as goods or in

g. Services supplied by person as holder of office which accepted by Erection some other form) is
him in the course or furtherance of his trade, profession or Installation involved in the execution
vocation; Fitting Out of such contract Of any
EXAMPLE: Improvement immovable property
i. An advocate gets appointed as member of the Arbitration Modification
Tribunal Repair
ii. CA in practice provides CFO or independent director services, Maintenance
he would be covered Renovation
h. Activities of or a race club Activities of a race club including by Alteration or Commissioning
way of totalisator or a licence to book maker or Activities of a 1.19 TAXABLE TERRITORY U/S. 2(109) OF CGST ACT
licensed book maker in such club • Means territory to which the provisions of this Act apply.
EXAMPLE: Totalizator: A device showing the number and number 1.20 FAMILY U/S 2(49)
of bets staked on a race, to facilitate the division of the total • The spouse and children of the person, and
• The parents, grand-parents, brothers and sisters of the person if
among those backing the winner.
they are wholly or mainly dependent on the said person;

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 17
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

1.21 RELATED PERSON 2 SECTION 7 MEANING AND SCOPE OF SUPPLY

• PERSONS SHALL BE DEEMED TO BE RELATED IF 2.1 SECTION 7(1)(A) GENERIC MEANING OF 'SUPPLY'
a. Such persons are officers or directors of one another's a. All forms of supply of goods or service or both such as sale,
businesses; transfer, barter, exchange, licence, rental, lease, or disposal made
b. Such persons are legally recognized partners in business; or agreed to be made for a consideration by a person in the course
c. Such persons are employer and employee; or furtherance of business
d. any person directly or indirectly owns, controls or holds 25% or ANALYSIS OF SECTION 7
more of the outstanding voting stock or shares of both of them; • SALES
e. One of them directly or indirectly controls the other; Transferring the property in goods from one to another, upon valuable
f. Both of them are directly or indirectly controlled by a third consideration i.e. buying laptop.
person; • TRANSFER
g. Together they directly or indirectly control a third person; or Any transfer of goods or right in goods or undivided share in goods
they are members of the same family; without transfer of title thereof i.e. head office sends the goods to its
h. Persons who are associated in the business of one another in that branch.it may be noticed that title is not transferred by Head office.
one is the sole agent or sole distributor or sole concessionaire, • BARTER
howsoever described, of the other, To exchange one commodity/ service for another without use of money i.e.
1.22 IN THE COURSE OR FURTHERANCE OF BUSINESS CA provides tax consultancy service in exchange of saloon services
• In the course or furtherance of business includes all such • EXCHANGE
activities which are being carried out by any person during the To Swap, to part with give or transfer for an equivalent with the use of
course of running of business and also activities which would money i.e. Mobile worth Rs. 25,000 in exchange of an old mobile Rs. 10,000
further the interest of business. balance paid in cash.
• The term 'supply' is from the point of view of person who is • LICENSE
supplying and not person who is receiving the supply. Thus, if Permission granted by competent authority to exercise certain privileges
supplier is not in the business of supplying the goods or services, without such authorization the activity would have constituted as an illegal
GST is not applicable [and consequently, the recipient will not be Act i.e. License of software.
liable to pay tax under reverse charge].

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 18
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

• RENTAL Vipul shah gives its Old Table and Supply as Per clause 1 of Sch - 1
Periodical payment for the use of another's property i.e. office or rent Chair (Business Asset) to Juice Wala
• LEASE free of cost on which ITC taken.
Contractual agreement by which one party an estate in property to Vipul shah gives its Old Table and Supply as Per Sec 7(1)(a)
another party, for a limited period, subject to various conditions, in Chair (Business Asset) to Juice Wala
exchange for something of value, but still remain owner i.e. Government on which ITC taken for consideration
agency lease of industrial plot. PARA 2
• DISPOSAL Supply of goods or services or both between related persons or
To pass or into the control of someone else; to alienate, bestow, or part between distinct persons as specified u/s. 25, when made in the
with i.e. 'disposals' could include donation in kinds or supplies in a course or furtherance of business.
manner other than sale. Supply of Laptop Between units If separate registration taken –
SECTION 7 (1)(aa) `of same person Distinct Person. And it is treated
The activities or transactions, by a person, other than an individual, to 1. Laptop Shop in Tilak Road as supply even if, without
its members or constituents or vice-versa, for cash, deferred payment (Pune) consideration.
or other valuable consideration. 2. Coaching institute in Bajirao Value = as per Sec. 15 read with
SECTION 7 (1)(b) Road (Pune) Valuation Rules
Importation of services for a consideration whether or not in the Supply of Laptop Between units of Separate Registration in MH and
course of furtherance of Business and same person MP is must. Because these 2
Note: Import of personal service is exempt. (individual only) 1. Laptop Shop in Pune (MH) shops are in different state.
SECTION 7 (1)(c) Hence, Distinct Person and it is
2. Coaching institute in Indore
The activities specified in schedule 1 made or agree to be made without treated as Supply even, if without
(MP)
a consideration consideration. Value = As per
PARA 1 Sec. 15 read with valuation Rules.
Permanent transfer or disposal of business assets where input tax
credit has been availed on such assets.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 19
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

Gifts not exceeding 50000/- in a financial year by employer to Employee of a company gets GST leviable, but it is exempt since
employee shall not be treated as supply of goods or services or both. design of House from Mr. service are taken for personal Use.
Free Laptop to Related Person – Case – 1 – No GST, if value of Triumph of USA for Rs. 1 Lac
A company gets design of a. IGST Leviable. Since import of
Employer to Employee Gift < 50,000
House from its employee Mr. goods or services is treated as
Case – 1 – Value of Rs. 30,000 Case – 2 – GST, if value of Gift
Triumph of USA for Rs. 1 lac inter-state supplies as per Sec.
Case – 2 – Value of Rs. 70,000 > 50,000
7(4) of IGST Act.
Value = As per sec 15 read with
b. Sec 5(3) of IGST Act – Recipient
Valuation Rules i.e. 70,000
of service (importer) shall be liable
PARA 3
to pay GST on reverse charge basis
Supply of goods by principal to his agent where agent supply such
c. Importer of service shall be liable
goods on behalf of principal; or by agent to his principal where agent
to get compulsory registration,
receive such goods on behalf of principal.
threshold limit Sec. 24 of CGST
NOTE:
Act.
Only that agent is covered here who issues invoice in his name to
recipient.
Here agent also includes Del Credere Agent if he issues invoice in his
name and in such case interest charged by DCA is also treated as part
of supply.
Interest charged by DCA shall be treated as VOS if invoice is issued by
him otherwise treated as interest on loan & no GST is applicable.
PARA 4
Import of services by person from related person or from any of
his other establishments outside India, in the course or furtherance
of business.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 20
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

3 ANALYSIS OF SECTION 7 iv. Goods held or used for purposes of

3.1 SUB SECTION 1(A) business put to any private use or
• Where certain activities or transactions constitute a supply in are used, or made available to any
accordance with the provisions of subsection 1 they shall be created person for use, for any purpose
either as supply of goods or supply of services as referred to in other than purpose of business,
schedule II subsection 1 a inserted retrospectively by CGST whether or not for consideration, is
(amendment) act 2018 w e f 01 072017 a supply of services;
SEC 7 (1A) SCHEDULE II: ACTIVITIES TO BE TREATED AS SUPPLY OF GOODS v. Renting of immovable property;
OR SUPPLY OF SERVICE vi. Construction of complex, building,
TREATED AS GOODS TREATED AS SERVICE
civil structure or part thereof,
i. If goods forming part of assets Any lease, tenancy,
including complex or building
transferred or disposed of so as no longer easement, licence to
intended for sale to buyer, wholly
to form part of those assets, whether or occupy land is a supply
or
not for consideration, is supply of goods; of services.
partly, except where entire
ii. If person forming part of assets deemed Any lease or letting out
consideration received after
to be supplied by him in the course or of building a
issuance of completion certificate,
furtherance of his business immediately commercial, industrial
by competent authority or after its
before he ceases to be a taxable or residential complex
first occupation, whichever is
person, unless business is transferred as for business or
earlier.
going concern to another person; or commerce, either
vii. Temporary transfer or Permitting
business is carried on by personal wholly or partly, is a
the use or enjoyment of any
representative who is deemed to be a supply of services.
intellectual property right;
taxable person.
viii. Development, design, Programming
iii. Supply of goods by any unincorporated Any treatment or
customization, adaptation,
association or body of persons to a process which is applied
upgradation, enhancement,
member thereof for cash, deferred to another person's
implementation of information
payment or other valuable consideration. goods is a supply of
technology software;
(omitted w.e.f. 1/7/17) services.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 21
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

ix. Agreeing to obligation to refrain from an a. Services by an employee to the employer in the course of or in
act, or to tolerate an act or a situation, relation to his employment.
or to do an act; & • ANALYSIS
x. Transfer of right to use any goods for Amount paid to director for attending meetings of the company
any purpose for cash, deferred payment shall be chargeable to GST as it is not in the course of
or other consideration employment.
xi. COMPOSITE SUPPLY: b. Services by any Court or Tribunal established under any law for
Following composite supplies treated as a the time being in force.
supply of services i. Functions performed by the MPs, MLAs, Members of
Works contract as defined in clause municipality and Member of other local authorities.
(119) of Section, 2; & ii. Duties performed by any person who holds any
Supply by way of or as art of any service, constitutional post.
of goods, being food or other article for iii. Duties performed by any person as a Chairperson or a
human consumption or any drink [other Member or a Director in a body established by the Central
than alcoholic liquor], for cash, deferred Government or a State Government or local authority and
payment or other consideration who is not deemed as an employee before the
3.2 SECTION 7 (2) commencement of this clause.
• Notwithstanding anything contained in subsection (1) c. Services of funeral, burial, crematorium or mortuary including
a. Schedule III in the CGST Act is akin to the negative list under the transportation of the deceased.
service tax regime. This schedule specifies transactions/ activities Sale of land and sale of building where entire consideration has
which shall be neither treated as supply of goods nor a supply of been received after issuance of completion certificate.
services. d. Actionable claims other than lottery, betting and gambling.
SCHEDULE III NEGATIVE LIST UNDER GST e. Supply of goods from a place a non-taxable territory to another
place in the non-taxable territory without such goods entering
in India,
f. Supply of warehouse goods to any person before clearance from
home consumption.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 22
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

g. Supply of goods by the consignee to any other person by PRINCIPAL SUPPLY U/S. 2 (90) OF SST ACT
endorsement of document of tile to the goods after the goods Means supply of goods or services which constitutes the predominant
have been dispatched from the port or origin located outside
element of a composite supply and to which any other supply forming part
India but before clearance for home consumption.
of that composite supply is ancillary for a single price
• Such activities for transactions undertaken by the central
HOW TO DETERMINE WHETHER THE SERVICES ARE BUNDLED IN THE
government a State government or any local authority in
ORDINARY COURSE OF BUSINESS?
which they are engage as public authorities as may be notified
a. Depend upon normal or frequent practices followed in the area of
by the government on the recommendations of the Council shall
business to which services relate.
be treated as neither as a supply of goods nor supply of service,
b. Perception of consumer or the service receiver.
• The central government vide notification no 25/ 2019 – CT
c. Majority of service providers in a particular area of business provide
(Rate) dated 30-09-2019 W.e.f. 30-09-2019 has notified that
similar bundle of services.
service by way of grant of alcoholic liquor licence, against
d. Nature of various services in a bundle of services.
consideration in the form of licence fee or application fee or
by whatever name it is called when undertaken by the state
4.2 MIXED SUPPLY U/S. 2 (74) OF CGST ACT
governments in which they are engaged as public authorities, Means two or more individual supplies of goods or services, or any

shall be treated neither as a supply of goods nor a supply of combination thereof, made in conjunction with each other by a taxable

service. person for a single price where such supply does not constitute a composite

3.3 SECTION 7 (3) supply. [single price]

Subject to sub-section (1), (1A) and (2) the government may on the
WORKING NOTE
recommendations of the Council specify by notification the
a. Each of these items can be supplied separately and is not dependent
transactions that are to be treated as on any other.
a. A supply of goods and not as a supply of services or, b. It shall not be A mixed supply if these items are supplied separately.
b. Supply of services and not as a supply of goods. c. Supplies not Naturally bundled in the ordinary course of business
4 COMPOSITE AND MIXED SUPPLY (SEC.8 OF CGST) then it would be a mixed supply.
4.1 COMPOSITE SUPPLY U/S. 2 (30) OF CGST ACT
Means supply consisting of two or more taxable supplies of goods or
services or both, or any combination thereof, which are naturally
bundled & supplied in conjunction with each other in ordinary course
of business, one of which is a principal supply. [single price]

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 23
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

CHAPTER 4 EXEMPTION

1 HEALTH CARE SERVICES  SI. No. 74A

 SI. No. 74 Services Provided by Rehabilitation Professionals recognized under the
• Health care services BY a clinical establishment/ authorized Rehabilitation Council of India Act, 1992 by way of
medical practitioner/ para-medics • Rehabilitation
• Transportation of a patient in an ambulance BY any person other • Therapy of
than specified above. • Counselling and such other activity as covered by the said Act at
• However, the above exemption shall not apply to the services medical establishments, Educational institutions, rehabilitation
provided by a clinical Establishment by way of providing room centers established by Central Government, State Government of
[other than Intensive Care Unit (ICU) / Critical Care Unit (CCU)/ Union Territory or an entity registration u/s. 12AA of the Income
Incentive Cardiac Care Unit (ICCU)/ Neo natal Intensive Care tax Act, 1961.
Unit (NICU)] having room charges exceeding Rs. 5,000 per day to 2 SERVICES RELATED TO CHARITABLE AND RELIGIOUSACTIVITIES
a person receiving health care services. [Interested by Charitable activities BY an entity registered under section
Notification No. 04/2022-CT (RATE) dated 13/07/22 w.e.f. 12AA/12AB of Income-tax Act.
18/07/22]
 SI. No. 1
 SI. No. 73
Services by a person by way of-
Stem cells preservation BY Cord Blood Banks or any other service in “Charitable Activities” means activities relating to
relation to such preservation
i. Public health by way of
 SI. No. 75
ii. Advancement of religion, spiritually of Yoga:
Treatment or disposal of bio – Medical Waste iii. Advancement of educational programs or skill development relating
 SI. No. 46 to,
Service BY a veterinary clinic in relation to Health care of iv. Preservation of environment including watershed, forests and
animals/birds wildlife;

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 24
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

 SI. No. 13 3 LEGAL SERVICES

Conduct of any religious ceremony;
 SI. No. 45
a) Religious ceremonies are life-cycle rituals including special Service provided by To
religious pujas conducted in terms of religious texts by a person Arbitral tribunal a) any person other than BE
so authorized by such religious texts. Occasions like birth. Partnership firm of advocates or an b) BE with an aggregate
Marriage and death involve elaborate religious ceremonies. individual as an advocate other than turnover up to such
b) Renting of precincts of a religious place meant for general public a senior advocate by way of legal amount in the preceding
owned/managed by institutions/ entities/ trusts, registered services FY as makes it eligible for
under section 12AA/12AB/10(23C) (v) of the Income tax Act or Senior advocate by way of legal exemption from
body/authority covered under section 10(23BBA) of the services registration under the
i. Charges for renting of rooms ≥ ₹ 1,000 per day; CGST Act
Charges for renting of premises, community halls, c) CG/SG/UT/LA/GA/GE
ii. kalyanmandapam, open area, etc. are ≥ ₹10,000 per day; 4 AGRICULTURE RELATED SERVICES
Charges for renting of shops/ spaces for business/commerce
 SI. No. 24
iii. are ≥ ₹ 10,000 per month.
Loading, unloading, packing, storage or warehousing of rice.
 SI. No. 60
 SI. No. 24B
Services by a specified organisation [KMVN/Haj Committee] in
Services by way of storage/ warehousing of cereals, pulses, fruits, nuts
respect of a religious pilgrimage [Haj and Kailash Mansarovar Yatra].
and vegetables, spices, copra, sugarcane, jaggery, raw vegetable fibres
 SI. No. 80
such as cotton, flax, jute etc., indigo, unmanufactured tobacco, betel
Training/coaching in recreational activities relating to (a) arts/culture
leaves, tendu leaves, coffee and tea.
by an individual, or (b) sports by charitable entities registered under
 SI. No. 53A
section 12AA/12AB of the Income-tax Act.
Fumigation in a warehouse of agricultural produce.
 SI. No. 55A
Artificial insemination of livestock (other than horses).

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 25
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

 SI. No. 55  SI. No. 57

Carrying out an intermediate production process as job work in Services by way of pre-conditioning, pre-cooling, ripening,
relation to cultivation of plants & rearing of animals [except waxing, retail Packing labelling of fruits and vegetables which
horses], for food, fibre, fuel, raw material or other similar do not change or alter the essential characteristics of the said
products or agricultural produce. fruits or vegetables.
 SI. No. 54 5 SERVICES OF TRANSPORT OF PASSENGERS (WITH/ WITHOUT
Services relating to cultivation of plants & rearing of animals ACCOMPANIED BELONGINGS)
[except horses], for food, fibre, fuel, raw material or other
 SI. No. 15
Such services provided by –
similar products or agricultural produce by way of –
a. Air, in economy class, embarking from or terminating in an
a. Agricultural operations directly related to production of any
airport located in North Eastern States of India or at
agricultural produce including cultivation, harvesting,
threshing, plant protection or testing; Bagdogra in West Bengal;
b. Supply of farm labour; b. Non-air-conditioned contract carriage other than radio taxi,
c. Processes carried out at an agricultural farm including for transportation of passengers, excluding tourism,
tending, pruning, etc. and such like operations which do not conducted tour, charter or hire; or
alter the essential characteristics of agricultural produce c. Stage carriage other than air- conditioned stage carriage.
but make it only marketable for the primary market;
However, nothing contained in item (b) and (c) above shall apply
d. Renting or leasing of agro machinery or vacant land
to services supplied through an electronic commerce operator
with/without a structure incidental to its use;
(ECO), and notified under section 9(5) of the CGST, 2017.
e. Loading, unloading, packing, storage or warehousing of
 SI. No. 17
agricultural produce;
Such services provided by—
f. agricultural extension services;
a. Railways in a class other than first class/an air-conditioned
g. Services by any Agricultural Produce Marketing Committee
coach;
or Board or services provided by a commission agent for b. Metro, monorail or tramway;
sale/purchase of agricultural produce. c. Inland waterways;
h. Services by way of fumigation in a warehouse of agricultural
produce.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 26
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 CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

d. Public transport, other than predominantly for tourism purpose, d. railway equipment’s or materials
in a vessel between places located in India; and e. Agricultural produce
e. Metered cabs or auto rickshaws (including e-rickshaws). f. Milk, salt and food grain including flours, pulses and rice
However, nothing contained in item (e) above shall apply to
g. Organic manure
services supplied through on electronic commerce operator
 SI. No. 21A
(ECO), and notified under section 9(5) of the CGST, 2017.
Services provided by a GTA to an unregistered person, including
6 GOODS TRANSPORTATION SERVICES
an unregistered casual taxable person, except following
f.  SI. No. 18
Services by way of transportation of goods- recipients, namely: -
a. By road except the services of— a. A factory registered under Factories Act,
• A goods transportation agency (GTA); b. Society registered under Societies Act,
• A courier agency; c. Co-operative society,
b. By inland waterways. d. Body corporate and
 SI. No. 21
e. Partnership firm including AOP;
Transportation of goods exempt when transported by goods carriage
f. Registered casual taxable person.
Where consideration charged for Where consideration
 SI. No. 21B
the transportation of goods on a charged for transportation
Services provided by a GTA, by way of transport of goods in a
consignment transported in a single of all such goods for a single
goods carriage, to, -
carriage ≤ ₹ 1,500 consignee ≤ ₹ 750
a. A Department or Establishment of the CG/SG/UT; or
 SI. No. 20 b. Local authority; or
Exempt transportation on of goods by rail/vessel/by GTA in a goods
carriage
c. Government Agencies

Relief materials meant for victims of natural or man-made Which has taken registration only for the purpose of deducting
a. disasters, calamities, accidents or mishap. tax under section 51 and not for making a taxable supply of goods
b. Defence / military equipment’s. or services.
Newspaper or magazines registered with the Registrar of
c. Newspapers

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 27
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

7 BANKING AND FINANCIAL SERVICES 8 EDUCATION SERVICES

 SI. No. 26 Services provided BY an educational institution (EI):
Services by the Reserve Bank of India are Exempt • to its students, faculty and staff;
 SI. No. 27 • by way of conduct of entrance examination against
Extending deposits, loans or advances in so far as the consideration in form of entrance fee
consideration is represented by way of interest or discount Services provided TO an EI, by way of, -
a. transportation of students, These exemptions are only
(other than interest involved in credit card services);
Inter se sale or purchase of foreign currency amongst banks or faculty and staff: - applicable to an institution
b. catering, including any mid- providing services by way of
authorised dealers of foreign exchange or amongst banks and
such dealers. day meals scheme sponsored pre-school education &

 SI. No. 34 by the Central Government education up to higher

Services by an acquiring bank, to any person in relation to (CG),
settlement of an amount upto ₹ 2,000 in a single transaction State Government (SG) or
transacted through credit card, debit card, charge card or other Union Territory (UT);
payment card service. c. security/cleaning/house- Exempt to All EI
 SI. No. 39 keeping services performed in
Business Facilitator/ correspondent such EI;
Services by the following persons in respective capacities: d. supply of online educational This exemption is only
Business facilitator or a business correspondent to a banking journals or periodicals. applicable to an Institution
a. company with respect to accounts in its rural area branch; providing services by way of
Any person as an intermediary to a business facilitator or a education as part of a
b. business correspondent; curriculum for obtaining
Business facilitator or a business correspondent to an qualification recognised by
c. insurance company in a rural area; any law for time being in force.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 28
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9 SPONSORSHIP OF SPORTS EVENTS  SI. No. 11A

 SI. No. 53 Service provided by fair price shops to cg/sg/ut by way of sale
Sponsorship of sporting events organized - of food grains, kerosene, sugar, edible oil, etc. Under public
a. By a national sports federation, or its affiliated distribution system (pds) against commission/margin.
federations, where the participating teams or individuals  SI. No. 6
represent any district, State, zone or Country; Services by Government excluding following services—
b. by Association of Indian Universities, Inter-University a. Services by Department of Posts by way of (a) to (c)
Sports Board, School Games Federation of India, All India speed post, express parcel post, life hereinafter
Sports Council for the Deaf, Paralympic Committee of India insurance, & agency services provided to a referred as
or Special Olympics Bharat person other than CG, SG, UT;
‘specified
c. by the Central Civil Services Cultural and Sports Board;
b. Services in relation to an aircraft/a
service
d. as part of national games, by the Indian Olympic vessel, inside/outside precincts of a

Association; or port/airport;
e. under the Panchayat Yuva Kreeda Aur Khel Abhiyaan
c. Transport of goods/passengers; or

Scheme.
d. Any service, other than ‘specified services’
10 SERVICES PROVIDED TO GOVERNMENT above, provided to business entities.
 SI. No. 3 Service a to c is exempt for B/E as well as Non B/E
Pure services provided to Government: Service d is exempt only for Non B/E
• Central Government
• State Government
• Union territory or
• Local authority, government authority & government entity
 SI. No. 3A
• Composite supply of goods and services in which the value
of supply of goods constitutes not more than 25% of the
value of the said composite supply.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 29
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 SI. No. 24C

Services by the department of post by way of
a. Post Card
b. Inland letter
c. Book post &
b Testing, calibration, safety check or certification relating to
d. Ordinary Post (Envelopes weighing less than 10 grams)
 SI. No. 7 protection or safety of workers, consumers or public at large,
Services provided by CG/SG/UT/LA to a business entity (BE) with an including fire license, required under any law for the time
aggregate turnover of up to such amount in the preceding FY as makes being in force.
it eligible for exemption from registration under the CGST Act, 2017.
 SI. No. 61
This exemption is not applicable to specified services and renting of
immovable property service. Services provided by CG/SG/UT/LA by way of issuance of
 SI. No. 8 passport, visa, driving license, birth certificate or death
Services provided by CG/SG/UT/LA to another CG/SG/UT/LA. This certificate.
exemption is not applicable to specified services.
 SI. No. 62
 SI. No. 9
Services provided by CG/SG/UT/LA where consideration for such Services provided by CG/SG/UT/LA by way of tolerating non-
services does not exceed ₹ 5,000. This exemption is not applicable performance of a contract for which consideration in the form
to specified services. of fines or liquidated damages is payable to CG/SG/UT/LA
 SI. No. 9D
under such contract.
Services by an old age home run by CGS/SG/an entity registered under
section 12AA/12AB of Income-tax Act to its residents (aged ≥ 60 years)  SI. No. 63
against consideration upto ₹ 25,000 per month per member, provided Services provided by CG/SG/UT/LA by way of assignment of
that the consideration charged is inclusive of charges for boarding, right to use natural resources to an individual farmer for
lodging and maintenance.
cultivation of plants & rearing of all life forms of animals
 SI. No. 34A
Services supplied by CG/SG/UT to their undertakings or PSUs by way [except horses], for food, fiber, fuel, raw material or other
of guaranteeing the loans taken by such undertakings or PSUs from similar products.
the banking companies and financial institutions.
 SI. No. 47
Services provided by CG/SG/UT/LA by way of-
a Registration required under any law for the time being in force;

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 30
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12 CONSTRUCTION SERVISES 13 SERVICES OF LIFE INSURANCE BUSINESS

 SI. No. 10  SI. No. 28
Pure labor contracts of construction, erection, commissioning, Such services by way of annuity under the National Pension
installation, completion, fitting out, repair, maintenance, System by Pension Fund Regulatory and Development Authority
renovation, or alteration of a civil structure or any other original of India (PFRDAI) under PFRDA Act, 2013.
 SI. No. 29A
works pertaining to the beneficiary-led individual house
Such services by the Army, Naval and Air Force Group
construction or enhancement under the Housing for All (Urban)
Insurance Funds to members of the Army, Navy and Air Force,
Mission/Pradhan Mantri Awas Yojana.
respectively, under the Group Insurance Schemes of CG.
 SI. No. 10A
 SI. No. 29B
Services supplied by Electricity Distribution Utilities by way of Services of life insurance provided/agreed to be provided by the
construction, erection, commissioning, or installation of Central Armed Police Forces (Under Ministry of Home Affairs)
infrastructure for extending electricity distribution network Group Insurance Funds to their members under the Group
Upto the tube well of the farmer/agriculturalist for Insurance Schemes of the concerned Central Armed Police Force.
agricultural use.  SI. No. 36
 SI. No. 11 Life insurance Services
Pure labour contracts of construction, erection, commissioning, a. Janashree Bima Yojana;
or installation of original Works pertaining to a single residential b. Aam Aadmi Bima Yojana;
unit otherwise than as a part of a residential Complex c. Life micro-insurance product** as approved by the Insurance
Regulatory and Development Authority (IRDA), having
maximum amount of cover of ₹ 2,00,000;
d. Varishtha Pension Bima Yojana;
e. Pradhan Mantri Jeevan Jyoti Bima Yojana;
f. Pradhan Mantri Jan Dhan Yogana;
g. Pradhan Mantri Vaya Vandan Yojana.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 31
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14 GENERAL INSURANCE BUSINESS Services by way of reinsurance of the insurance schemes

 SI. No. 38 specified in (A) and ( B ) above.
Such services under following schemes – (B) 15 SERVICES PROVIDED BY SPECIFIED BODIES
a. Hut Insurance Scheme;  SI. No. 30
b. Cattle Insurance under Swarnajaynti Gram Swarozgar Yojna16 Services by the Employees ’State Insurance (ESI) Corporation to
c. Scheme for Insurance of Tribals;
persons governed under the ESI Act, 1948.
d. Janata Personal Accident Policy and Gramin Accident Policy.
 SI. No. 31
e. Group Personal Accident Policy for Self-Employed Women; Services provided by the EPFO to the persons governed under
f. Agricultural Pumpset and Failed Well Insurance; the Employees Provident Funds (EPF) & Miscellaneous Provisions
g. premia collected on export credit insurance; Act, 1952.
h. Restructured Weather Based Crop Insurance Scheme  SI. No. 31A
(RWCIS), approved by the Government of India and Services by CMPFO to persons governed by Coal Mines Provident
implemented by the Ministry of Agriculture;
Fund and Miscellaneous Provisions Act, 1948.
i. Jan Arogya Bima Policy;
 SI. No. 31B
j. Pradhan Mantri Fasal Bima Yojana (PMFBY);
Services by NPS Trust to its members against consideration
k. Pilot Scheme on Seed Crop Insurance;
l. Central Sector Scheme on Cattle Insurance; in the form of administrative fee.
m. Universal Health Insurance Scheme;  SI. No. 32
n. Rashtriya Swasthya Bima Yojana; Services provided by the IRDAI to insurers under IRDAI Act,
1999.
o. Coconut Palm Insurance Scheme;
 SI. No. 33
p. Pradhan Mantri Suraksha Bima Yojna;
Services provided by the SEBI by way of protecting the
q. Niramaya Health Insurance Scheme implemented by the Trust
interests of investors in securities and to promote the
constituted under the provisions of the National Trust for the
Welfare of Persons with Autism, Cerebral Palsy, Mental development of, and to regulate, the securities market.
Retardation and Multiple Disabilities Act, 1999.
r. Bangla Shasya Bima.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 32
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16 PENSION SCHEMES 1) The National Skill Development Programme implemented

 SI. No. 37 by NSDC; or
Services by way of collection of contribution under: 2) A vocational skill development course under the National
a. Atal Pension Yojana Skill Certification and Monetary Reward Scheme; or
b. Any pension scheme of SG 3) Any other Scheme implemented by NSDC.
17 LEASING SERVICES
Services of assessing bodies empanelled centrally by DGT,
 SI. No. 41
Ministry of Skill Development and Entrepreneurship by way of
Upfront amount payable in respect of service by way of granting
assessments under the SDI Scheme.
of long-term lease of 30 years, or more of industrial plots/plots
Services provided by training providers (Project implementation
for development of infrastructure for financial business, provided
agencies) under DDUGKY implemented by Ministry of Rural
by the State Government Industrial Development Corporations or
Development, GoI by way of offering skill or vocational training
Undertakings or by any other entity having 20% or more ownership
courses certified by the National Council for Vocational
of CGS/SG/UT to the industrial units/developers in any
Training (NCVT).
industrial/financial business area subject to specified conditions.
19 PERFORMANCE BY AN ARTIST
Services of leasing of assets (rolling stock assets including wagons,  SI. No. 18
coaches, locos) by the Indian Railways Finance Corporation to Services by an artist by way of a performance in folk or
Indian Railways. classical art forms of music/ dance/ theatre, if the
18 SKILL DEVELOPMENT SERVICES
consideration charged for such performance is not more than
 SI. No. 69
₹ 1,50,000. This exemption shall not apply to service
Services provided by, -
provided by such artists as a brand ambassador
a. National Skill Development Corporation (NSDC) set up by
GoI;
b. Sector Skill Council (SSC) approved by NSDC;
c. Assessment agency approved by SSC/NSDC
d. A training partner approved by SSC/NSDC in relation to-

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 33
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20 RIGHT TO ADMISSION TO VARIOUS EVENTS  SI. No. 77A

 SI. No. 81 Services provided by such entity/body engaged IN
Services by way of admission to: a. Activities relating to the welfare of
1. Museum, national park, wildlife sanctuary, tiger reserve or
industrial/agricultural labour or farmers; or
zoo b. Promotion of trade, commerce, industry, agriculture, art,
2. Protected monument declared under the Ancient Monuments
science, literature, culture, sports, education, social
and Archaeological Sites & Remains Act 1958/any of the State welfare, charitable activities and protection of
Acts, for the time being in force. environment, to its own members against membership fee
3. Following events/places where the consideration for right to upto ₹ 1000/- per member per year.
admission is not more than ₹ 500 Per person: 22 OTHER EXEMPT SERVICES
a. circus, dance, or theatrical performance including drama  SI. No. 2
or ballet; Transfer of a going concern, as a whole or an independent part
b. award function, concert, pageant, musical performance or thereof.
any sporting event other than a recognised sporting event;  SI. No. 12
c. Recognised sporting event;
Services by way of renting of residential dwelling for use as
d. Planetarium. residence except where the residential dwelling is rented to a
21 SERVICES BY ANUNINCORPORATED BODY OR A NON- PROFIT ENTITY registered person. [Newly insterted by N/N 4/2022 CT (R)
REGISTERED UNDER ANY LAWFOR THE TIME BEING IN FORCE dt.13/07/2022
 SI. No. 77  SI. No. 14
Services by unincorporated body/ non- profit entity to its own Services by 1-
members as reimbursement/ share of contribution: a. Hotel, inn, guest house, club or campsite, by whatever name
1. As a trade union called,
2. For providing exempt activity b. For residential or lodging purposes,
3. up to an amount of ₹ 7,500 per month per member for c. Having value of supply of a unit of accommodation below one
sourcing of goods/services from a third person for the thousand rupees (Rs. 1000) per day or equivalent.
common use of its members in a housing society/residential
complex

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 34
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

 SI. No. 23A  SI. No. 76

Service by way of access to a road or a bridge on payment of toll Services by way of public conveniences such as provision of
charges/annuity. facilities of bathroom, washrooms, lavatories, urinal or toilets.
23 ABOVE SERVICES HAVE BEEN EXEMPTED FROM BOTH CGST AND
 SI. No. 25
IGST. APART FROM THESE SERVICES, LIST OF SERVICES EXEMPT
Transmission/distribution of electricity by an electricity
FROM IGST ALSO INCLUDE FOLLOWING SERVICES:
transmission/ distribution utility.
 SI. No. 10
 SI. No. 49
Services received from a provider of service located in a
Services by way of collecting or providing news by an
non- taxable territory by –
independent journalist, PTI or United News of India.
a. CG/SG/UT/LA/GA/ an individual in relation to any
 SI. No. 50
purpose other than commerce, industry or any other
Services of public libraries by way of lending of books, publications
business or profession;
or any other Knowledge enhancing content or material.
b. an entity registered under section 12AA/12AB of the
 SI. No. 52
Income-tax Act, 1961 for the purposes of providing
Services by an organizer to any person in respect of a business
charitable activities; or
exhibition held Outside India.
bb. way of supply of online educational journals or periodicals
 SI. No. 56
Services by way of slaughtering of animals. to an educational institution other than an institution

 SI. No. 65A providing services by way of-

Services by way of providing information under the RTI Act. i. pre-school education and education up to higher
 SI. No. 68 secondary school or equivalent; or
Services provided to a recognized sports body (RSB) by- ii. education as a part of an approved vocational
a. An individual as a player, referee, umpire, coach or team education course;
manager for participation in a sporting event organized
by a RSB;
b. another RSB.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 35
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

c. a person located in a non-taxable territory.

However, the exemption shall not apply to –
a. OIDAR services received by persons specified in entry (a)
or entry (b); or
b. services by way of transportation of goods by a vessel from
a place outside India up to the customs station of clearance
in India received by persons specified in the entry.
 SI. No. 42
Services received by the RBI, from outside India in relation
to management of foreign exchange reserves.
 SI. No. 54
Services provided by a tour operator to a foreign tourist in
relation to a tour conducted wholly outside India.
 SI. No. 10F
Services supplied by an establishment of a person in India to
any establishment of that person outside India, which are
treated as establishments of distinct persons provided the
place of supply of the service is outside India.
 SI. No. 10H
Import of services by Foreign diplomatic mission or consular post
in India, or diplomatic agents or career consular officers posted
therein subject to specified conditions.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 36
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CHAPTER 5 REVERSE CHARGE UNDER GST

 NORMAL CHARGE V/S REVERSE CHARGE

Supplier has to assess the tax
& Recipient has to assess the tax and supplier will
Assessment transfer to Recipient not charge GST in invoice.
Supplier is liable to make
Payment to payment
CG to CG Recipient is liable to make payment to CG
Supplier has to register under
Registration GST Recipient has to register under GST

Due date of
payment Monthly Monthly
Time of Goods – Sec. 12(2) of CGST Goods – Sec. 12(3) of CGST
supply Service – Sec. 13(2) of CGST Service – Sec. 13(3) of CGST
By using By using cash ledger
Recipient cannot use his electronic credit ledger
- Electronic Credit Ledger
Made of for payment of GST on such supply, but after payment of GST under RCM, he can take
payment -Electronic Cash Ledger input tax credit as per the provision of ITC.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 37
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

SERVICES UNDER REVERSE CHARGE AS APPROVED BY GST COUNCIL

SN Nature of Service Provider of service Recipient of Service
1 Services provided or agreed to be provided by Goods transport a Any factory registered under or governed by the
a goods transport agency (GTA) in respect of agency (GTA) Factories Act, 1948;
transportation of goods by road Provided that b Any society registered under the Societies
nothing contained in this entry shall apply to Registration Act, 1860 or under any other law for
services provided by a goods transport agency, the time being in force in any part of India;
by way of transport of goods in a goods carriage c Any co – operative society established by or under
by road to,- any law;
a A department or establishment of the d Any person registered under CGST / SGST / UTG
central government or state government e Anybody corporate established, by or under any
or union territory or law; or
b Local authority or f Any partnership firm whether registered or not
c Governmental agencies, under any law including association of persons
g Casual taxable person

SN Nature of Service Provider of service Recipient of Service

2 Services provided or agreed to be provided by an individual An individual Any business entity located in taxable
advocate or firm of advocates by way of legal services, directly or advocate or firm of territory
indirectly advocates
Note: Legal service includes representational service before any
court, tribunal or authority.
3 Services provided or agreed to be provided by an arbitral tribunal An arbitral Any business entity located in taxable
tribunal territory
4 Sponsorship services Any person Anybody corporate or partnership firm

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 38
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

SN Nature of Service Provider of service Recipient of Service

5 Services provided or agreed to be provided by Government or local authority excluding, Government or Any business entity
a Renting of immovable property; and local authority located in taxable
b Services specified below: territory
• Services by the Department of Posts by way of speed post, express parcel
post, life insurance, and agency services provided to a person other than
Government;
• Services in relation to an aircraft or a vessel, inside or outside the precincts
of a port or an airport;
• Transport of goods or passengers.

SN Nature of Service Provider of service Recipient of Service

5A Services provided or agreed to be provided by Government or local authority by way of Government or local Any register person
Renting of immovable property; authority
5B Services supplied by any person by way of transfer of development rights or floor space Any person Promoter
index (FSI) (including additional FSI) for construction of a project by a promoter.
[inserted by NN 05/2019 – CT (R) w.e.f 01.04.2019]
5C Long term lease of land (30 years or more) by any person against consideration in the form Any person Promoter
of upfront amount (called as premium, salami, coast, price, development charges or by any
other name) and periodic rent for construction for a project by a promoter
[inserted by NN 05.2019 CT (R) w.e.f 01.04.2019
6 Services provided or agreed to be provided by a director of a company or a body corporate A director of a A company or a body
to the said company or the body corporate; company or a body corporate
Note: corporate

1 Whole time/Managing / Executive director – Employee of the company

2 Non-Executive / Part time director – Can’t be called as employee of Company. Hence
sitting fees, Commission is taxable.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 39
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3 Who is Body Corporate?

Body corporate as define in section 2(11) of company Act,2013
Example: Company, Public Company, One Person Company, Foreign Company
4 Body corporate does not include an individual, HUF, A Firm (including LLP), AOP or
BOI, Cooperative society, society)
7 Services provided or agreed to be provided by an insurance agent to any person carrying on An insurance agent Any person carrying on
insurance business insurance business

SN Nature of Service Provider of service Recipient of Service

8 Services provided or agreed to be provided by a A recovery agent A banking company or a financial institution or a non-banking
recovery agent to financial company
a a banking company or
b a financial institution or
c a non-banking financial company

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 40
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

SN Nature of Service Provider of service Recipient of Service

9 Supply of service by way of transfer or permitting the use or enjoyment of An author A publisher located in
copyright relating to Original literary work the taxable territory
Conditions:
Reverse charge is not applicable in following cases
Provided that nothing contained in this entry shall apply where,-
a The author has taken registration, and filed a declaration, within the time limit
with the jurisdictional GST commissioner that
• He exercises the opinion to pay central tax on the service under forward
charge and
• To comply with all the provisions as they apply to a person liable for paying
the tax in relation to the supply of any goods or services or both and
• That he shall not withdraw the said option within a period of 1 year from the
date of exercising such option;
b The author makes a declaration, on the invoice issued by him in Form GST Inv-l to
the publisher.
Note: Thus, where the author is registered and he make declaration to pay the tax to
proper officer then publisher is not required to pay tax & author will pay tax under
forward charge.
10 Supply of service by the member of overseeing committee to RBI Members of RBI
overseeing committee

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 41
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

S.N. Service Provider of Service Recipient of Service

11 Services supplied by Individual Direct Selling Agents (DSAs) other DSA Person liable to pay tax: banking company
than a body corporate. Partnership or limited liability partnership or non-banking financial company,
firm. located in the taxable territory.
12 Services provided by business facilitator (BF) to a banking company business facilitator (BF) A banking company located in the
[inserted by NN 29/2018- CT (R) w.e.f 01.01.2019] taxable territory
13 Service provide by an agent of business correspondents (BC) to An agent of business A business correspondents, located in
business correspondents (BC) correspondents (BC) the taxable territory
[inserted by NN 29/2018- CT (R) w.e.f 01.01.2019]
14 Security services (services provided by way of supply of security An agent of business A business correspondent, located in the
personnel) provided to a registered person: correspondents (BC) taxable territory
Provided that nothing contained in this entry shall apply to –
1 • A department or establishment of the central
government or state government or union territory or,
• local authority or
• governmental agencies
which has taken registration under the central goods and
services tax act 2017 (12 of 2017) only for the purpose of
deducting tax u/s 51 of the said act and not for making a
taxable supply of goods or services or
2 A register person paying tax under sec 10 of the said act
[inserted by NN 29/2018 CT (R) w.e.f 01.01.2019

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 42
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

S.N. Service Provider of Service Recipient of Service

15 Services of lending of securities under securities Lender: (i.e. a person who deposits the securities Borrower: (i.e. a person who
lending scheme, 1997 of SEBI registered in his name or in the name of any other borrows the securities under
person duly authorized on his behalf with an the scheme through an approved
approved intermediary for the purpose of leading intermediary of SEBI).
under the scheme of SEBI)
16 Services Provided by way of renting of any motor Who supplies the service to a body corporate and Anybody corporate located in
vehicle designed to carry passengers where the does not issue an invoice charging CGST at the the territory
cost of fuel is included in the consideration rate of 6% and SGST 6% to the service recipient?
charged from the service recipient.
LIST OF ADDITIONAL SERVICES TAXABLE UNDER REVERSE CHARGE UNDER IGST ACT [NOTIFICATION NO. 10/2017 IT (R) DATED 28.06.2017]
All the services which have been notified for reverse charge purpose of under CGST act [as given above] have also been notified for reverse
charge under IGST act further, following two services are additionally included under RCM for IGST purpose:
SN Category of Supply of Service Supplier of Service Recipient of Service
17 Any service supplied by any person who is located in a non-taxable territory to
any person other than non-taxable online recipient.
Sec 2(16) “Non-taxable online recipient” (NTOR)
• Any Government, local authority, governmental authority,
An individual or any other person not registered and Receiving online Any person is located in a non-
information and database access or retrieval services in relation to any Any person is taxable territory to any person
purpose other than commerce, industry or any other business or profession, located in a non- other than non-taxable online
• located in taxable territory taxable territory recipient.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 43
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18 Services supplied by a person located in Any person is Importer as defined as in section 2(26) of the customs act 1962, located
a non-taxable territory by way of located in a non- in the taxable territory, importer in relation to any goods at any time
transportation by goods a vessel from a taxable territory between their importation and the time when they are cleared for home
place outside in India up to the customs consumption, includes any owner or any person holding himself out to be
stations of clearance in India. the importer [sec. 2(26) of the customs act 1962]
SEC. 9(4) (CGST) REVERSE CHARGE – WHEN SUPPLY OF GOODS OR SERVICES BY UNREGISTERED PERSON TO REGISTERED PERSON
Reverse Charge – when supply of goods or services by unregistered person
• The Central Tax in respect of the
• Supply of specified category of goods or services or both by a supplier, who is not registered,
• A specified class of registered person
• Shall be paid by such person on reverse charge basis as the recipient of such supply of goods or services or both and
• All the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such
goods or services or both
S.N. Nature Supplied By Person Liable to Pay
Value of inputs and input services purchased from
1 Purchased from unregistered person Person liable to pay tax is promoter
registered supplier is less than 80%
2 In case of cement Supplied by unregistered person Person liable to pay tax is promoter
3 In case of capital goods Supplied by unregistered person Supplied by unregistered person
Above reverse charge is applicable in a case
a. Promoter is opting for 1% or 5% scheme of N/N 11/2017
Promoter has to pay GST u/s 9(4) of the CGST Act, at the rate of 18% on all such inward supplies (to the extent short of 80% of
b.
the inward supplies from registered supplier).
Where cement is received from an unregistered person, the promoter shall pay tax on supply on such cement on, u/s 9(4) of the
c.
CGST Act, at the applicable rate which is 28% (CGST 14% + SGST 14%) at present.
Moreover, GST on capital goods shall be paid by the promoter on reverse charge basis, u/s 9(4) of the CGST Act at the applicable
d.
rates.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 44
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

CHAPTER 6 COMPOSITION SCHEME

1 DEFFINATION 2 CONDITIONS TO OPT FOR COMPOSITION SCHEME

1.1 AGGREGATE TURNOVER SEC 2(6) 2.1 ELIGIBILITY FOR COMPOSITION SCHEME SEC 10(1)
“AGGREGATE TURNOVER” MEANS THE • Not with standing anything to the country contained in this
• All taxable supplies (excluding the value of inward supplies on Act
which tax is payable by a person on reverse charge basis) and • but subject to the provisions of sub sections (3) and (4) of
• Exempt supplies
section 9, a registered person, whose aggregate turnover in
• Exports of goods or services or both and
• the preceding financial year did not exceed 1.5 cr & 75
Inter-State supplies of person having same PAN to be
computed on all India Basis lakhs for notified areas rupees, may opt to pay, in lieu of the
• But excludes tax payable by him, an amount calculated at such rate as may
• Central Tax, State Tax, Union Territory Tax, be prescribed.
Integrated Tax & Cess THE NINE SPECIAL CATEGORY STATES ARE
1.2 TURNOVER IN A STATE SEC 2(112) • (i) Arunachal Pradesh (ii) Manipur (iv) Meghalaya (v) Mizoram
TURNOVER IN STATE OR “TURNOVER IN UNION TERRITORY”
(vi) Nagaland (vii) Sikkim (viii) Tripura
MEANS THE AGGREGATE VALUE OF
• • It may be noted that for the two remaining Special Category
All taxable supplies (excluding the value of inward supplies on
which tax is payable by a person on reverse charge basis) and States viz., Jammu and Kashmir and Assam, Himachal
• Exempt supplies made within a State or Union Territory by a Pradesh the turnover limit for composition levy will be 1.5
taxable person crore and not 75 lakhs.
• Exports of goods or services or both and
• Inter-State supplies of goods or services or both made from
the State or Union Territory by the said taxable person
• But excludes Central Tax, State Tax, Union Territory Tax,
Integrated Tax & Cess

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 45
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2.2 RATE OF TAX OF THE COMPOSITION LEVY • Provided further that a person who opts to pay tax under
No. Categories of registered Central State /UT Total Basis of
clause (a) or clause (b) or clause (c) may supply services
person Rate GST Rate Rate Calculation
1 Manufactures other 0.5% 0.5% 1% Turnover (other than those referred to in clause (b) of paragraph 6 of
than manufactures of in State schedule II), of value not exceeding 10% of turnover in a
such goods as may be State or Union Territory in the preceding financial year or
notified by the 5 lakh rupees, whichever is higher.
government CLARIFICATION OF CBIC [CGST REMOVAL OF DIFFICULTIES)
2 Suppliers making 2.5% 2.50% 5% Turnover ORDER NO0. 01/2019 – C.T., W.E.F. 01/02/2019:
supplies referred to in in State • For the removal of difficulties, it is hereby clarified that
Clause (b) of part 6 of the value of supply of exempt services by way of extending
schedule II Example: deposits, loans or advances in so far as the consideration is
Restaurant, Catering, represented y way of interest or discount, shall not be taken
Mess or any other into account -
service contract where 2.3 SEC 10(2) THE REGISTERED PERSON SHALL BE ELIGIBLE TO OPT
goods as food or drink UNDER SUB SECTION (1), IF:
as supplied for human 1. He is not engaged in the supply of services other than
consumption supplies referred to in clause (b) of paragraph 6 of
3 Another supplier 0.50% 0.50% 1% Turnover a. Schedule II;
of COMMENT: As we have seen in proviso to sec 10(1), that a
taxable person who opts to pay tax under clause (a) or clause (b) or
supplies clause (c) may supply services (other than those referred to
of goods in clause (b) of paragraph 6 of schedule II), of value not
and exceeding 10% of turnover in a State or Union Territory in
service the proceeding financial year 5 lakh rupees, whichever is
in State higher

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 46
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

b. He is not engaged in making any supply of goods which are f. CTR & NRTP
not leviable to tax under this Act; Provided that where more than one registered persons are having
c. He is not engaged in making any inter – State outward the same Permanent Account Number (issued under the Income
supplies of goods or services Tax Act, 1961), the registered person shall not be eligible to opt
for the scheme under sub section (1) unless all such registered
d. He is not engaged in making any supply of goods through an
persons opt to pay tax under that sub section.
electronic commerce operator who is required to collect tax 2. The option availed of by a registered person under sub section (1)
at source under section 52; and shall lapse with effect from the day on which his aggregate
e. He is not manufacturer of such goods as may be notified by turnover during a financial year exceeds the limit specified under
the Government on the recommendations of the Council sub section (1).
3. A taxable person to whom the provisions of sub section (1) apply
Tariff item Description
shall not collect any tax from the recipient on supplies made by
HSN Code
him nor shall he be entitled to any credit of input tax.
2105 00 00 Ice cream and other edible ice, whether or not 4. If the proper officer has reasons to believe that a taxable person
containing cocoa has paid tax under sub section (1) despite not being eligible, such
2106 90 20 Pan Masala person shall, in addition to any tax that may be payable by him
2202 10 10 Aerated Water under any other provisions of this Act, be liable to a penalty and
the provisions of Section 73 or Section 74 shall, mutatis, apply for
24 All goods, i.e. Tobacco and manufactured tobacco
determination of tax and penalty.
substituted 2.4 COMPOSITION SCHEME FOR SUPPLIER OF SERVICES Sec 10(2A)
6815 Fly ash content of fly ash aggregate was 90% • Description of Supply
Fly ash bricks; Fly ash aggregates; Fly ash blocks First supplies of goods or services or both upto an aggregate turnover of
fifty lakh rupees made on or after the 1st day of April in any financial
[Substituted by N/N 16/2022 CT dt 13/07/2022]
year, by a registered person.
6901 00 10 Bricks of fossil meals or similar siliceous earths • Rate of GST (CGST + SGST)
6904 10 00 Building bricks 3% + 3% = 6% of value of all outward supplies of goods or services or
6905 10 00 Earthen or roofing tiles. both notwithstanding any other notification issued u/s 9(1) or u/s 11 of
the CGST Act.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 47
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

For the purpose of this notification, the expression “first d. Who is not engaged in making any inter-state outward supply
supplies of goods or services or both” shall, for the purposes e. Who is neither a casual taxable person nor a non-residential
of determining eligibility of a person to pay tax under this taxable person;
EXPLANATION

notification, include the supplies from the first day of April f. Who is not engaged in making any through an electronic

of a financial year to the date from which he becomes liable commerce operator who is required to collect tax at source
u/s 52; and
for registration under the said Act but for the purpose of
g. Who is not engaged in making supplies of the following goods:
determination of tax payable under this notification shall
Tariff item HSN Description
not include the supplies from the first day of April of a Code
financial year to the date from which he becomes liable for 2105 00 00 Ice cream and other edible ice, whether or not
registration under the Act. containing cocoa
In computing aggregate turnover in order to determine 2106 90 20 Pan Masala
eligibility of a registered person to pay central tax at the 2202 10 10 Aerated Water
24 All goods, i.e. Tobacco and manufactured tobacco
NOTE

rate of three percent under this notification, value of supply

of exempt services by way of extending deposits, loans or substituted

advances in so far as the consideration is represented by way 6815 Fly ash content of fly ash aggregate was 90%
Fly ash bricks; Fly ash aggregates; Fly ash blocks
of interest or discount, shall not be taken into account.
[Substituted by N/N 16/2022 CT dt 13/07/2022]
2.5 CONDITIONS FOR THE SCHEME:
6901 00 10 Bricks of fossil meals or similar siliceous earths
1. Supplies are made by a registered person, -
6904 10 00 Building bricks
Whose aggregate turnover in the preceding financial
6905 10 00 Earthen or roofing tiles.
a. year was fifty lakh rupees or below;
h. Casual Taxable Person (CTP) and Non-Resident Taxable Person
Who is not eligible to pay tax under sub-section (1) of
(NRTP)
b. section 10 of the said Act;
Who is not engaged in making any supply which is not
c. leviable to tax under the said Act;

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 48
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2. Where more than one registered person are having the same 7. Where any registered person who has availed of input tax
Permanent Account Number, issued under the Income Tax credit opts to pay tax under this notification, he shall pay
Act, 1961(43 of 1961), central tax on supplies by all such an amount, by way of debit in the electronic credit ledger
registered persons is paid at the rate specified in column (2)
or electronic cash ledger, equivalent to the credit of input
under this notification.
tax in respect of inputs held in stock and inputs contained
3. The registered person shall not collect any tax from the
in semifinished or finished goods held in stock and on
recipient on supplies made by him nor shall he be entitled to
any credit of input tax. capital goods as If the supply made under this notification
4. The registered person shall issue, instead of tax invoice, a attracts the provisions of section 18(4) of the said Act and
bill of supply as referred to in clause (c) of sub-section 31 the rules made there under and after payment of such
of the said Act with particulars as prescribed in rule 49 of amount, the balance of input tax credit, if any, lying in this
Central Goods and Services Tax Rules. electronic credit ledger shall lapse [inserted by NN
5. The registered person shall mentioned the following words 09/2019 – CT (R), w.e.f. 01/04/2019].
at the top of the bill of supply, namely: - 'taxable person 3 CENTRAL GOODS AND SERVICE TAX (CGST) RULES, 2017
paying tax in terms of Notification No. 2/2019 – Central 3.1 INTIMATION OF OPTING FOR COMPOSITION LEVY [RULE 3 & 4]

Tax (Rate) dated 07/03/2019, not eligible to collect tax on a. Any person who has been granted registration on a
provisional basis under clause (b) of sub rule (1) of rule 24
supplies; .
(existing taxable persons) and who opts to pay tax under
6. The registered person opting to pay central tax at the rate section 10, shall electronically file an intimation in FORM
of three percent under this notification shall be liable to pay GST CMP – 01 before appointed day or 30 days after the
central tax on inward supplies on which he is liable to pay tax said day.
under sub-section (3) or, as the case may be, under sub- Note Submit details of Stock within 90 days in From GST CMP

section (4) of section 9 of said Act at the application rates. 03

b. Intimation by registration unregistered person applies for
registration may give an option to pay tax under composition
levy in Part B of registration form, viz., PART B OF FORM
GST REG.01. Composition levy scheme shall be effective
from date when registration is effective.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 49
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

c. Intimation by registered person registered person who opts e. Proper office to issue notice in FORM GST CMP-05 for
for composition levy scheme shall electronically file cointervention of provision of the act.
intimation in prescribed form on www.gst.gov.in prior to f. Reply within 15 days in FORM GST CMP-06
commencement of F.Y. g. the proper officer shall issue an order in FORM GST CMP –
Taxpayer shall also furnish statement in prescribed form 07 within a period of thirty days of the receipt of such reply
GST CMP – 02, as per rule 44(4) (reversal of ITC on stock) h. Taxpayer allowed to avail ITC for stock of inputs & inputs
of CGST Rules, WITHIN 60 DAYS from commencement of contained in semi-finished or finished goods held in stock by
relevant FY. him & on capital goods held by him from date of withdrawal
d. Intimation given deemed to be intimation for all places of & furnish a statement, within 30 days of withdrawal,
business registered on same PAN. containing details of such stock held in prescribed form.
e. Option to pay tax under composition levy shall be effective FORM GST ITC – 01
from the beginning of FY.
3.2 VALIDITY OF COMPOSITION LEVY [SECTION 10(3) READ WITH
[RULE 6]
a. Composition levy scheme remain valid so long as taxpayer
satisfies all the conditions.
b. Scheme lapses from the day on which aggregate turnover
during FY exceeds specified limit.
c. Taxpayer requires to pay normal tax u/s. 9(1) from the day
he ceases to satisfy any of conditions prescribed.
d. Taxpayer requires to file intimation for withdrawal from the
scheme in prescribed form within 7 days of occurrence of
such event. [FORM GST CMP – 04]

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 50
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

CHAPTER 7 PLACE OF SUPPLY

1 INTRODUCTION 2.3 SECTION 2(3) Continuous Journey

a. • means a journey for which a single or more than one tickets or
Basis principle of GST is that it tax consumption of supply at
invoice is issued at the same time, either by a single supplier of
the destination thereof or at the point of consumption.
service or through an agent acting on behalf of more than one
b. Place of supply determine the place i.e. taxable jurisdiction supplier of service, and which involves no stopover between any of
where the tax should reach. the legs of the journey for which one or more separate tickets or
invoices are issued.
Place of supply and location of supplier are two determinants
For the purposes of this clause, the term “stopover” means a place

EXPLANATION
to ascertain nature of supply i.e.,
where a passenger can disembark either to transfer to another
c. whether a supply is intra-state or inter-state. conveyance or break his journey for a certain period in order to
2 RELEVANT DEFINITIONS resume it at a later point of time;
2.1 SEC 2(50) Fixed Establishment 2.4 SECTION 2(5) Export of goods
• with its grammatical variations and cognate expressions, means
• means a place (other than the registered place of business)
taking goods out of India to a place outside India;
which is characterized by a sufficient degree of permanence 2.5 SECTION 2(6) EXPORT OF SERVICES MEANS THE SUPPLY OF ANY SERVICE
and suitable structure in terms of human and technical WHEN
a The supplier of service is located in India;
resources to supply services, or to receive and use services
b The recipient of service is located outside India;
for its own needs; c The place of supply of service is outside India;
2.2 SEC 2(85) PLACE OF BUSINESS d The payment for such service has been received by the supplier
a. Place from where the business is ordinarily carried on, and of service in convertible foreign exchange
includes a warehouse, a godown or any other place where a e The supplier of service and the recipient of service are not merely
establishments of a distinct
taxable person stores his goods, supplies or receives goods
or services or both;
b. 2.6 SECTION 2(11) IMPORT OF SERVICES MEANS THE SUPPLY OF ANY
A place where a taxable person maintains his books of
SERVICE, WHERE
account; or a The supplier of service is located outside India;
c. A place where a taxable person is engaged in business b The recipient of service is located in India; and
through an agent, by whatever name called. c The place of supply of services is in India;

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 51
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2.8 SECTION 2(17) ONLINE INFORMATION AND DATABASE ACCESS OR RETRIEVAL 3.3 SEC 10(1)(c) WHERE SUPPLY DOES NOT INVOLVE MOVEMENT OF
SERVICES
GOODS
• means services whose delivery is mediated by information technology
over the internet or an electronic network and the nature of which Where the supply does not involve movement of goods, whether
renders their supply essentially automated and involving minimal by the supplier or the recipient the place of supply shall be the
human intervention and impossible to ensure in the absence of
location of such goods at the time of the delivery to the
information technology and includes electronic services such as,:
a. Advertising on the internet; recipient;
b. Providing cloud services; 3.4 SEC 10(1)(d) INSTALLATION OR ASSEMBLY
c. Provision of e – books, movie, music, software and other intangible • If goods assembled or installed at site, place of supply shall
through telecommunication networks or internet;
be place of installation or assembly.
d. Providing data or information, retrievable or otherwise, to any person
in electronic form through a computer network; 3.5 SEC 10(1)(e)
e. Online supplies of digital content (movies, television shows, music and • Where the goods are supplied on board a conveyance,
the like); including a vessel, an aircraft, a train or a motor vehicle, the
f. Digital data storage; and
place of supply shall be the location at which such goods
g. Online gaming;
3 PLACE OF SUPPLY OF GOODS OTHER THAN SUPPLY OF GOODS IMPORTED are taken on board.
INTO OR EXPORTED FROM INDIA U/S. 10 OF IGST ACT. 3.6 SEC 10(2) WHERE PLACE OF SUPPLY OF GOODS CANNOT BE
3.1 SEC 10(1)(a) IF SUPPLY INVOLVES MOVEMENT OF GOODS BY SUPPLIER OR
RECIPIENT OR BY OTHER PERSON,
DETERMINED THE PLACE OF SUPPLY SHALL BE DETERMINED IN
Place of supply shall be Location of goods at the time at which movement SUCH MANNER AS MAY BE PRESCRIBED.
of goods terminates for delivery to the recipient; 3.7 SEC 11 PLACE OF SUPPLY CASE OF EXPORT/ IMPORT & GOODS
3.2 SEC 10(1)(b) WHERE THE GOODS ARE DELIVERED Imported into India Shall be the location of importer
• By the supplier to a recipient or any other person on the direction of
Exported outside India Location outside India
third person,
• Whether acting as an agent or otherwise, 4 SEC 12 WHEN PLACE OF SUPPLY OF SERVICE WHERE LOCATION OF
• Before or during movement of goods, SUPPLIER AND RECIPIENT IS IN INDIA
• Either by way of transfer of documents of title to the goods or 4.1 PROVISION APPLICABLE
otherwise, • Where SP and SR both are in India.
• It shall be deemed that the said third person has received the
goods and
• The place of supply of such goods shall be the principal place of
business of such person

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 52
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4.2 SECTION 12(2) PLACE OF SUPPLY OF SERVICES, EXCEPT SERVICES 4.4 SECTION 12(4) PLACE OF SUPPLY OF RESTAURANT & CATERING
SPECIFIED IN SUB-SECTIONS (3) TO (14) SERVICES, PERSONAL GROOMING, FITNESS, BEAUTY TREATMENT,
a. Made to registered person shall be location of such HEALTH SERVICE INCLUDING COSMETIC & PLASTIC SURGERY SHALL
person; BE
b. Any person other than registered person shall be, location • Location where services are actually performed.
of recipient where address on record exists; & location of 4.5 SECTION 12(5) PLACE OF SUPPLY OF SERVICES IN RELATION TO
supplier of services in other cases. TRAINING AND PERFORMANCE APPRAISAL TO
4.3 SECTION 12(3) PLACE OF SUPPLY OF SERVICES SHALL BE LOCATION a. A registered person location of such person.
AT WHICH IMMOVABLE PROPERTY OR BOAT OR VESSEL, IS
b. Other than registered person location where the services
LOCATED OR INTENDED TO BE LOCATED
are actually performed.
a. Directly in relation to immovable property including
services provided by architects, interior decorators, 4.6 SECTION 12(6) PLACE OF SUPPLY OF SERVICES PROVIDED BY WAY
surveyors, engineers & other related experts or estate OF ADMISSION TO CULTURAL, ARTISTIC, SPORTING, SCIENTIFIC,
agents, service provided by way of grant of rights to use EDUCATIONAL, ENTERTAINMENT EVENT OR AMUSEMENT PARK OR
immovable property or for carrying out or co-ordination of ANY OTHER PLACE AND SERVICES ANCILLARY THERETO, SHALL BE
construction work; u/s. 12(3) (a) • Place where event is actually held or where park or such
b. By way of lodging accommodation by a hotel, inn, guest other place is located.
house, home stay, club or campsite, & including a house boat 4.7 SECTION 12(7) PLACE OF SUPPLY OF SERVICES PROVIDED BY WAY
or any other vessel; u/s. 12(3)(b) OF, ORGANIZATION OF CULTURAL, ARTISTIC, SPORTING,
c. By way of accommodation in immovable property for SCIENTIFIC, EDUCATIONAL OR ENTERTAINMENT EVENT INCLUDING
organizing marriage or reception or matters related CONFERENCE, FAIR, EXHIBITION, CELEBRATION OR SIMILAR
thereto, official, social, cultural, religious or business EVENTS; OR SERVICES ANCILLARY TO ORGANIZATION OF ANY OF
function; u/s. 12(3)(c). EVENTS OR SERVICES REFERRED IN CLAUSE (A), OR ASSIGNING OF
d. Any services ancillary to the services referred to in SPONSORSHIP TO SUCH EVENTS TO
clauses (a), (b) and (c), u/s. 12 (3) (d) a. Registered person location of such person;
PROVIDED THAT b. Other than a registered person place where event is actually
If location of immovable property or boat or vessel is held & if event is held outside India, place of supply shall be
located or intended to be located outside India, place of
location of the recipient.
supply shall be location of recipient.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 53
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RULE 5 [AMENDMENTS] 4.10 SECTION 12(10) PLACE OF SUPPLY OF SERVICES ON BOARD A

PRESCRIBED FOR SUPPLY OF SERVICES ATTRIBUTABLE TO CONVEYANCE, VESSEL, AIRCRAFT, TRAIN OR MOTOR VEHICLE,
DIFFERENT STATE OR UNION TERRITORIES UNDER SUB SECTION (7) SHALL BE
OF SECTION 12 OF THE SAID ACT IN THE CASE OF • Location of first scheduled point of departure of that
• Shall be determined by application of the generally conveyance for the journey.
4.11 SECTION 12(11) PLACE OF SUPPLY OF TELECOMMUNICATION
accepted accounting principles
SERVICES INCLUDING DATA TRANSFER, BROADCASTING, CABLE &
4.8 SECTION 12(8) PLACE OF SUPPLY OF SERVICES BY WAY OF
DIRECT TO HOME TELEVISION SERVICES TO ANY PERSON HALL
TRANSPORTATION OF GOODS, INCLUDING BY MAIL OR COURIER
• In Case of Services by Way of Fixed Telecommunication Line,
TO
Leased Circuits, Internet Leased Circuit, Cable or Dish
a. Registered person location of such person; Antenna, U/S. 12 (11) (A).
b. Other than registered person, location at which goods are Be location where telecommunication line, leased circuit or cable
handed over for their transportation. connection or dish antenna is installed for receipt of services;
4.9 SECTION 12(9) PLACE OF SUPPLY OF PASSENGER • In Case of Mobile Connection for Telecommunication &
TRANSPORTATION SERVICE TO Internet Services Provided on Post-Paid Basis, U/S. 12 (11)
a. Registered person location of such person; (B)

b. Other than registered person, place where passenger Be the location of billing address of recipient of services on

embarks on conveyance for continuous journey. record of supplier of services;

NOTE • In Cases Where Mobile Connection for Telecommunication,
Internet Service & Direct to Home Television Services Are
• If right to passage is given for future use and point of
Provided on Pre-Payment Basis Through A Voucher or Any
embarkation is not known at the time of issue of right to Other Means, U/S. 12 (11) (C)
passage, place of supply shall be determined in accordance Through selling agent or re-seller or distributor of subscriber
with the provisions of sub-section (2). identity module card or re-charge voucher, be the address of
• Return journey treated as separate journey, even if right to selling agent or re-seller or distributor as per record of supplier
passage for onward & return journey is issued at same time. at the time of supply

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 54
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4.12 SECTION 12(12) PLACE OF SUPPLY OF BANKING & FINANCIAL SERVICES, INCLUDING STOCK BROKING SERVICES TO ANY PERSON SHALL BE
a. Location of recipient of services on the records of the supplier of services.
b. If location of recipient of services is not on records of supplier, place of supply shall be location of supplier of services.
4.13 U/S 12(13) PLACES OF SUPPLY OF INSURANCE SERVICES SHALL
a. A registered person be the location of such person;
b. Other than registered person, be location of recipient of services on records of supplier of services.
4.14 U/S 12(14) PLACE OF SUPPLY OF ADVERTISEMENT SERVICES TO CG, SG, A STATUTORY BODY OR LOCAL AUTHORITY MEANT FOR STATES OR UT
IDENTIFIED IN CONTRACT SHALL BE TAKEN AS
Being in each of such states or UT & value of such supplies specific to each State or UT shall be in proportion to the amount attributable
to services provided by way of dissemination in respective States or UT as determined in terms of contract or in absence of contract,
on other basis as prescribed.
5 SECTION 13 (IGST): PLACE OF SUPPLY WHERE LOCATION OF SUPPLIER OR LOCATION OF RECIPIENT IS OUTSIDE INDIA
SECTION 13(1)
The provisions of this Section shall apply to determine the place of supply of services where the location of the supplier of services or
the location of the recipient of services is outside India.
5.1 SECTION 13(2) THE PLACE OF SUPPLY OF SERVICES EXCEPT THE SERVICES SPECIFIED IN SUB
SECTION (3) TO (13) SHALL BE THE LOCATION OF THE RECIPIENT OF SERVICES
Provided that where the location of the recipient of services is not available in the ordinary course of business, the place of supply shall
be location of the supplier of services

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 55
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5.2 SECTION 13(3) PLACE OF SUPPLY OF PERFORMANCE BASE SERVICE

Clause Description Place of supply
A Service supplies in respect of good which are required to be made Place of performance
physically available by the recipient of services
a. To the services of supplier, or
To a person acting on behalf of the supplier of services in order to
b. provide the services
Proviso Description Place of supply
Provide that when such services are provide from a remote location by way The place of supply shall be the location where goods are
of electronic means situated at the time of supply of services
Exception Provided further that nothing contained in this clause shall apply in the case of services supplied in respect of goods
a. Which are temporarily imported into India for repairs or for any other treatments or process and
b. Are exported after such repairs or treatment or process
c. Without being put to any use in India, other than that which is require for such repair or treatment or process
Place of supply in case where physical presence of an individual is needed for provision of service
5.3 SECTION 13(4) SERVICES RELATING TO IMMOVABLE PROPERTY
• The place of supply of services supplied directly in relation to an immovable property, including services supplied in this regard by experts and
estate agents, supply of accommodation by a hotel, inn, guest house, club or campsite, by whatever name called, grant of rights to use immovable
property, services for carrying out or coordination of construction work, including that of architects or interior decorators, shall be the place
where the immovable property is located or intended to be located.
5.4 SECTION 13(5) SERVICE RELATED TO EVENT
• The place of supply of services supplied by way of admission to, or organization of a cultural artistic, sporting, scientific, educational or
entertainment event, or a celebration, conference, fair, exhibition or similar events, and of services ancillary to such admission or organization,
shall be the place where the event is actually held.
5.5 SECTION 13(6)
• Where any services referred to in sub Section (3) or sub section (4) or sub section (5) is supplied at more than one location, including a location
in the taxable territory, its place of supply shall be the location in the taxable territory.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 56
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5.6 SECTION 13(7) PLACE OF SUPPLY OF SERVICES WHEN SUPPLIED IN 5.8 SECTION 13(9)
MULTIPLE STATE OR UNION TERRITORY The place of supply of services of transportation of goods, other
Description The place of provision of services than by way of mail or courier, shall be the place of destination of
Where any service referred in POS: the place of supply of such such goods.
sub section 3, 4 or 5 are services shall be taken as being 5.9 SECTION 13(10)

supplied at more than one state in each of the respective state The place of supply in respect of passenger transportation
services shall be the place where the passenger embarks on the
or union territory or union territories and
conveyance for a continuous journey.
Value: the value of such supplies specific to each state or union 5.10 SECTION 13(11)
territory shall be in proportion to the value of services separately Description The place of supply of Services
collected or determine in terms of the contractor or agreement Services supplied on boards a Place of supply of service
enter into in this regard or conveyance during the course of a shall be the first scheduled
In the absence of such contract or agreement on such other basis passenger transport operation, point of departure to that
as may be prescribed including services intended to be conveyance for the journey.
5.7 SECTION 13(8) PLACE OF SUPPLY OF SPECIFIED SERVICES wholly or substantially consumed
Basis of while on board
Section
Apportionment
5.11 SECTION 13(12)
For following specified services Location of
The place of supply of online information and database access or
Services provided by a banking company, or a Supplier of
retrieval services shall be the location of the recipient of
financial institution, or a non-banking financial Service services.
company, to account holders 5.12 SECTION 13(13) GOVERNMENT POWER TO NOTIFY SERVICE TO
Intermediary services AVOID DOUBLE TAXATION
In order to prevent double taxation or non-taxation of the supply
Service consisting of hiring of means of
of a service, or for the uniform application of rules, the
transport, including yachts but excluding
Government shall have the power to notify any description of
aircrafts and vessel, up to a period of one
services or circumstances in which the place of supply shall be the
month.
place of effective use and enjoyment of a service.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 57
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CHAPTER 8 TIME OF SUPPLY

1 INTRODUCTION 2.3 SEC 2(33) CONTINUOUS SUPPLY OF SERVICES

a. A supply consists of elements that can be separated in time, means a supply of services which is Provided, or agreed to be
like purchase order / agreement, dispatch [of goods], Provided, continuously or on recurrent basis, under a contract,
delivery [of goods] or provision or performance of service, for a period exceeding three months with periodic payment
entry in the records, payment, & entry of payment in the obligations and includes supply of such services as the
records or deposit in the bank. Government may, subject to such conditions, as it may, by

b. So, at which of these points of time will GST become notification, specify.
2.4 SEC 2(96) REMOVAL IN RELATION TO GOODS, MEANS
payable?
Despatch of the goods for delivery by the supplier thereof or by
c. Provisions relating to “Time of Supply” provide answer to
any other person acting on behalf of such supplier; or Collection
that question.
2 DEFINITION of the goods by the recipient thereof or by any other person
2.1 SECTION 2 (12) ASSOCIATED ENTERPRISES acting on behalf of such recipient.
Same meaning as assigned to it in section 92A of income-tax Act, 3 SEC 31 TAX INVOICE IN CASE OF GOODS
3.1 SUPPLY INVOLVE MOVEMENT OF GOODS
1961.
2.2 SEC 2(32) CONTINUOUS SUPPLY OF GOODS • On or before or at the time of Recovery
3.4 SUPPLY DOSE NOT INVOLVE MOVEMENT OF GOODS
means a supply of goods which is provided, or agreed to be
• When goods are delivered or made available
provided, continuously or on recurrent basis, under a contract,
3.2 CONTINUOUS SUPPLY OF GOODS
whether or not by means of a wire, cable, pipeline or other
When statement is issued or Date of Receipt whichever is
conduit, and for which the supplier invoices the recipient on a
earlier
regular or periodic basis and includes supply of such goods as the
3.3 GOODS SENT ON APPROVAL BASIS (TOS)
Government may, subject to such conditions, as it may, by
Maximum 6 month from the date of removal if not then next day
notification, specify
after 6 months.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 58
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4 SEC 31 TAX INVOICE IN CASE OF SERVICE EXPLANATION

4.1 NORMAL CASE For the purposes of clause (a) and (b), “supply” shall be deemed
Before or after within 30 days or 45 days from the date of provision to have been made to the extent it is covered by the invoice or,
of service
as the case may be, the payment.
4.2 CONTINUOUS SUPPLY OF SERVICE SEC 31(5)
6.3 PROVISO
a. Where the due of payment is ascertainable from the contract,
If supplier receives amount up to 1000/- in excess of amount
the invoice shall be issued on or before the due date of payment;
indicated in invoice, time of supply of such excess amount shall,
b. Where the due date of payment is not ascertainable from the
contract, the invoice shall be issued before or at the time when at the option of supplier, be the date of issue of invoice.
the supplier of service receives the payment Notification No. 66/2017, dated 15/11/2017, whereby all
c. Where the payment is linked to the completion of an event, the suppliers of goods who have not opted for composition scheme,
invoice shall be issued on or before the date of completion of that have been exempted from the burden of GST on Advances
event. received.
5 DATE OF RECEIPT Hence TOS shall be date of Invoice or the last day as per Sec 31
Date of bank entry or Date of book entry whichever is earlier 6.4 SEC 12(3) REVERSE CHARGE
6 SEC 12 TIME OF SUPPLY OF GOODS IN REVERSE CHARGE BASIS, TIME OF SUPPLY SHALL BE EARLIEST OF
6.1 SEC 12(1) FOLLOWING DATES
The liability to pay tax on goods shall arise at the time of supply as a. date of receipt of goods; or
determined in accordance with the provision of this section. b. Date of payment entered in books of recipient or date on
6.2 SEC 12(2) FORWARD CHARGES
which payment is debited in his bank account, whichever is
TIME OF SUPPLY OF GOODS SHALL BE EARLIER OF FOLLOWING
earlier; or
DATES
a. Earlier of following date of issue of invoice by supplier or c. Date immediately following 30 days from date of issue of
b. last date on which he is required, u/s. 31 (1), to issue invoice invoice or other document.
NO GST ON ADVANCES RECEIVED FOR FURTHER SUPPLIES FOR PROVISO
NORMAL SUPPLIER If not possible to determine time of supply in reverse charge as
above, time of supply shall be the date of entry in the books of
account of the recipient of supply.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 59
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

6.5 SEC 12(4) IN SUPPLY OF VOUCHERS, TIME OF SUPPLY SHALL BE 7 SEC 13 TIME OF SUPPLY OF SERVICE
a. If supply is identifiable at that point, date of issue of 7.1 SEC 13(1)
voucher; or Liability to pay tax on services u/s. 13 (1) arise at the time of
b. In all other cases date of redemption of voucher, supply.
6.6 SEC 12(5) IF NOT POSSIBLE TO DETERMINE TIME OF SUPPLY U/S. 12 7.2 SEC 13(2) FORWARD CHARGE
(2) (3) (4), TIME OF SUPPLY SHALL U/S. 12 (5) TIME OF SUPPLY OF SERVICES SHALL BE EARLIEST OF FOLLOWING
a. In case where periodical return has to be filed, date on which DATES

such return is to be filed; or a. If invoice is issued within 30 or 45 days of issue of invoice

b. Date on which the tax is paid. by supplier, or date of receipt of payment, whichever is
6.7 SEC 12(6) TIME OF SUPPLY TO THE EXTENT IT RELATES TO ADDITION earlier, or
IN VALUE b. If invoice not issued date of provision of service or date of
receipt of payment, whichever is earlier; or
Supply by way of interest, late fee or penalty for delayed payment
c. If above provisions not apply date on which recipient shows
of any consideration shall be the date on which the supplier
the receipt of services in his books of account,
receives such addition in value.
PROVISO
6.8 SEC 31(4) CONTINUOUS SUPPLY OF GOODS
TOS SHALL BE EARLIER OF THE FOLLOWING If supplier receives up to 1000/- in excess of amount indicated
in tax invoice, time of supply to the extent of such excess amount
a. Date of invoice
shall, at the option of said supplier, be the date of issue of invoice.
b. Last date of invoice (Date of statement or payment whichever 7.3 SEC 13(3) REVERSE CHARGE
is earlier) IN CASE OF SUPPLIES ON REVERSE CHARGE BASIS, TIME OF SUPPLY
6.9 SEC 31(7) SALE OF GOODS ON APPROVAL BASIS SHALL BE EARLIER OF FOLLOWING DATES
Where goods are being sent or taken on approval for sale of a. Earlier of following date of payment as entered in the books
return are removed before the supply takes place the invoice shall of account of recipient or date on which payment is debited
be issued in his bank account; or
a. before or at the time of supply or b. Date immediately following 60 days from date of issue of
invoice or any other document, by supplier.
b. 6 months from the date of removal whichever is earlier.
PROVISO 1
TIME OF SUPPLY
If not possible to determine time of supply in above points, date
Date of invoice or last date of invoice whichever is earlier
of entry in books of recipient of supply.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 60
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PROVISO 1
If supplier located outside India Date of entry in books of account of
recipient of supply or date of payment, whichever is earlier.
7.4 SEC 13(4) IN CASE OF SUPPLY OF VOUCHERS BY SUPPLIER, TIME OF
SUPPLY SHALL BE
a. If supply is identifiable at that point, date of issue of voucher; or
b. In all other cases date of redemption of voucher.
7.5 SEC 13(5)
IF NOT POSSIBLE TO DETERMINE TIME OF SUPPLY U/S. 13 (2)
(3) (4), TIME OF SUPPLY SHALL U/S. 13 (5)
a. In case where periodical return has to be filed, date on which such
return is to be filed; or
b. In any other case date on which the tax is paid.
7.6 SEC 13(6) TIME OF SUPPLY TO THE EXTENT IT RELATES TO ADDITION IN
VALUE U/S
Supply by way of interest, late fee or penalty for delayed payment of
any consideration shall be the date on which the supplier receives such
addition in value.
8 CHANGE IN RATE OF TAX IN RESPECT OF SUPPLY OF GOODS OR SERVICES
U/S. 14 OF CGST ACT.
Notwithstanding anything contained in section 12 or section 13, the time
of supply, where there is a change in the rate of tax in respect of goods
or services or both, shall be determined in the following manner,
namely,:

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 61
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

In nutshell, the time of supply, where there is a change in the rate of tax in respect of goods or services or both, shall be determined
in the following manner:
Invoice issued Payment received Time of Supply Applicable Rate
A. Where the goods or services or both have been supplied before the change in rate of tax.
After After a Date of receipt of payment; or New rate
b Date of issue of invoice
Whichever is earlier
Before After Date of issue of invoice Old rate
After before Date of receipt of payment Old rate
B. Where the goods or services or both have been supplied after the change in rate of tax
Before After Date of receipt of payment New rate
Before Before a Date of receipt of payment; or Old rate
b Date of issue of invoice
Whichever is earlier
After Before Date of issue of invoice New rate

Provided that the date of receipt of payment shall be the date of credit in the bank account if such credit in the bank account is after
four working days from the date of change in the rate of tax.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 62
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

CHAPTER 9 VALUE OF SUPPLY

a. Include incidental expenses, including commission & packing,

1 INTRODUCTION
charged by supplier to recipient & amount charged for anything
a. In GST tax is payable on ad-valorem basis i.e. percentage of
done by supplier for supply at the time of or before delivery.
value of supply of goods or services.
b. Include interest or late fee or penalty for delayed payment for
b. So, it becomes important to know how to arrive at the value
supply; and
on which tax is to be paid. c. Include subsidies directly linked to the price excluding subsidies
2 VALUE OF TAXABLE SUPPLY U/S. 15 OF CGST ACT provided by CG & SG.
2.1 SEC 15(1) 2.3 SEC 15(3) VALUE OF SUPPLY SHALL NOT INCLUDE ANY DISCOUNT
The value of a supply of goods or services or both shall a. Given before or at the time of supply if such discount duly
• Be the transaction value, recorded in invoice issued; and
• Which is the price actually paid or payable b. Given after supply effected,
• For the said supply of goods or services or both • if such discount is established in terms of agreement entered into
• Where the supplier and the recipient of the supply are not at or before the time of such supply & linked to relevant invoices;
&
related and
• ITC as is attributable to discount on basis of document issued by
• The price is the sole consideration for the supply.
supplier reversed by recipient.
2.2 SEC 15(2) INCLUSIONS IN TRANSACTION VALUE
2.4 SEC 15(4) IF VALUE OF THE SUPPLY CANNOT BE DETERMINED U/S. 15(1)
d. Include taxes, duties, cesses, fees & charges levied under
Same determined in such manner as may be prescribed. (Rule 27 to 31)
any law other than this Act, SGST Act, UTGST Act & GST 2.5 SEC 15(5) VALUE OF SUPPLIES NOTIFIED BY THE GOVERNMENT U/S. 15
[Compensation to States] Act, if charged separately by (5)
supplier; Determined in such manner as may be prescribed, notwithstanding
NOTE: TCS shall not be included. anything contained u/s. 15 (1) & (4)

e. Include any amount that supplier is liable to pay for supply

but incurred by recipient of supply & not included in price;

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 63
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3 VALUATION RULES c. If value of supply not determinable in clauses (a) or (b), be

3.1 OPEN MARKET VALUE the value of supply of like kind & quality; Rule 27(c)
”open market value” of a supply of goods or services or both means d. If value is not determinable in above clauses (a), (b), (c), be
the full value in money, excluding the integrated tax, central tax, sum total of consideration in money & further amount in
State tax, Union territory tax and the cess payable by a person money that is equivalent to consideration not in money
in a transaction, where the supplier and the recipient of the supply determined by Rule 30, 31 in order.
are not related and the price is the sole consideration, to obtain 3.4 RULE 28: VALUE OF SUPPLY OF GOODS OR SERVICES OR BOTH
such supply at the same time when the supply being valued is made; BETWEEN DISTINCT OR RELATED PERSONS, OTHER THAN
3.2 LIKE KIND AND QUALITY THROUGH AN AGENT
“supply of goods or services or both of like kind and quality” means VALUE OF SUPPLY SHALL BE
any other supply of goods or services or both made under similar Value of supply shall be
circumstances that, in respect of the characteristics, quality, a. Open market value of such supply; Rule 28 (a)
quantity, functional components, materials and the reputation of b. If open market value not available, be value of supply of
the goods or services or both first mentioned, is the same as, or goods or services of like kind & quality; Rule 28(b)
closely or substantially resembles, that supply of goods or c. If value not determinable under clause (a) or (b), be value as
services or both. determined by application of rule 30 or rule 31, in that
3.3 RULE 27: VALUE OF SUPPLY OF GOODS OR SERVICES WHERE order, Rule 28 (c)
CONSIDERATION IS NOT WHOLLY IN MONEY PROVIDED THAT
THEN VALUE OF THE SUPPLY SHALL BE If goods intended for further supply value shall at option of
a. Open market value of such supply; Rule 27 (a) supplier, be amount equivalent to 90% of price charged for goods
b. If open market value is not available sum total of of like kind & quality by recipient to his customer not being a
consideration in money & any such further amount in money related person.
as is equivalent to consideration not in money, if such amount PROVIDED THAT
is known at the time of supply; Rule 27(b). If recipient is eligible for full ITC, value declared in invoice
deemed to be open market value of goods or service.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 64
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3.5 RULE 29: VALUE OF SUPPLY OF GOODS MADE OR RECEIVED 3.8 VALUE OF SUPPLY IN CASE OF LOTTERY, BETTING AND GAMBLING
THROUGH AN AGENT RULE 31A
Lottery run by Value
a. Open market value of such supply; or
The value of supply of lottery FV or Price notified by
b. If goods intended for further supply value shall at option of
run by State Governments government X 100/128
supplier, be amount equivalent to 90% of price charged for
The value of supply of lottery FV or Price notified by
goods of like kind & quality by recipient to his customer not authorised by State government X 100/128
being a related person. Governments
c. If value not determinable in above clause, value as THE VALUE OF SUPPLY OF ACTIONABLE CLAIM

determined by rule 30 or 31, in that order. 100% of the face value of the bet or the amount paid into the
totalizator.
3.6 RULE 30: VALUE OF SUPPLY OF GOODS OR SERVICES OR BOTH
4 DETERMINATION OF VALUE IN RESPECT OF CERTAIN SUPPLIES
BASED ON COST
RULE 32
If value of supply is not determinable by any of the preceding
4.1 VALUE OF SUPPLY OF SERVICES FOR PURCHASE OR SALE OF
rules, value shall be: FOREIGN CURRENCY, INCLUDING MONEY CHANGING,
110% production or manufacture or cost of acquisition of goods DETERMINED BY SUPPLIER OF SERVICES IN FOLLOWING MANNER,
RULE 32 (2)
or cost of provision of services.
OPTION 1
3.7 RULE 31: RESIDUAL METHOD FOR DETERMINATION OF VALUE OF
a. Currency exchanged from / to Indian rupees value shall be
SUPPLY OF GOODS OR SERVICES OR BOTH
equal to difference in buying rate or selling rate & RBI
IF VALUE OF SUPPLY CANNOT BE DETERMINED UNDER RULES reference rate for that currency at that time, multiplied by
27 TO 30, SAME SHALL BE total units of currency
a. Determined using reasonable means consistent with b. If RBI reference rate not available value shall be 1% of
principles & general provisions of section 15 & provisions of gross amount of Indian Rupees provided or received by
this Chapter. person changing the money.
b. In case of supply of services, the supplier may opt for this c. If neither of currencies exchanged is Indian Rupees, value

rule, ignoring rule 30. equal to 1% of lesser of two amounts the person received
by converting any of two currencies into Indian Rupee on
that day at the reference rate provided by RBI.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 65
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OPTION 2 b. In single premium annuity policies other than (a), 10% or

At option of supplier of services, value for supply of foreign premium charged from policy holder, Rule 32 (4)(b)
currency, including money changing, deemed to be Rule 32(2)(b). c. In all other cases 25% of premium charged in first year &
a. 1% of gross amount of Currency exchanged up to 1 lakh, 12.5% of premium charged in subsequent years.
subject to minimum amount of 250/- rupees; d. Nothing contained in this sub-rule shall apply if entire
b. 1,000/- & 0.5% of gross amount of currency exchanged for premium paid is only towards risk cover in life insurance.
amount exceeding 1 lakh & up to 10 lakh and (Term Plan)
c. 5,500/- & 0.1% of gross amount of currency exchanged for 4.4 IF TAXABLE SUPPLY IS PROVIDED BY A PERSON DEALING IN
amount exceeding 10 lakh, subject to a maximum amount of BUYING AND SELLING OF SECOND-HAND GOODS, RULE 32 (5)
60,000/-. • Value of supply shall be difference between selling price &
d. Person supplying services may exercise the option to purchase price & if value is negative, it is ignored.
ascertain value in terms of clause (b) for a FY & such option • Purchase value of goods repossessed from defaulting
shall not be withdrawn during remaining part of that FY. borrower, who is unregistered, for recovery of loan shall be
4.2 VALUE OF SUPPLY OF SERVICES FOR BOOKING OF TICKETS BY AIR • Deemed to be purchase price by defaulting borrower
BY TRAVEL AGENT SHALL BE, RULE 32(3) reduced by 5% points for every quarter or part thereof,
a. Deemed to be amount calculated at the rate of 5% of basic between date of purchase & date of disposal by person
fare in case of domestic bookings, & at the rate of 10% of making such repossession.
basic fare in case of international bookings of passage. 4.5 VALUE OF TOKEN, VOUCHER, COUPON, STAMP [OTHER THAN
b. Basic fare means that part of air fare on which commission POSTAGE STAMP] REDEEMABLE AGAINST SUPPLY SHALL BE, RULE
is normally paid to air travel agent by airlines. 32(6)
4.3 VALUE OF SUPPLY OF SERVICES IN RELATION TO LIFE INSURANCE Equal to money value of goods or services redeemable against
BUSINESS SHALL BE, RULE 32 (4) token, voucher, coupon, stamp.
a. Gross premium charged reduced by amount allocated for 4.6 VALUE OF TAXABLE SERVICES PROVIDED BY SERVICE PROVIDERS
investment, or savings on behalf of policy holder, if such an NOTIFIED BY GOVT. RULE 32 (7)
amount is intimated to the policy holder at the time of supply Between distinct persons as referred u/s. 25, where ITC is
of service; Rule 32 (4) (a)
available, shall be deemed to be NIL

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 66
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4.7 VALUE OF SUPPLY OF SERVICES IN CASE OF PURE AGENT RULE 33 Applicable rate of exchange as notified by Board u/s. 14 of
EXPENDITURE OR COSTS INCURRED BY SUPPLIER AS PURE AGENT OF Customs Act, 1962 for the date of time of supply of such goods
RECIPIENT OF SUPPLY SHALL BE EXCLUDED FROM VALUE OF SUPPLY, IF in terms of section 12 of the Act.
ALL FOLLOWING CONDITIONS ARE SATISFIED RATE OF EXCHANGE FOR DETERMINATION OF VALUE OF TAXABLE
a. If supplier makes payment to third party on authorization by SERVICES SHALL BE, RULE 34(2)
such recipient; Applicable rate of Exchange determined as per generally
b. Payment separately indicated in the invoice issued by pure accepted accounting principles for the date of time of supply of
agent to the recipient of service; and such services in terms of section 13 of the Act.
c. Supplies procured by pure agent from third party are in 4.9 VALUE OF SUPPLY INCLUSIVE OF IGST, CGST, SGST, UTGST RULE 35
addition to the services he supplies on his own account. TAX AMOUNT SHALL BE DETERMINED IN THE FOLLOWING MANNER,
PURE AGENT MEANS A PERSON WHO: NAMELY
a. Enters into contractual agreement with recipient of supply Tax amount = [value inclusive of taxes X tax rate in % of
to act as his pure agent to incur expenditure or costs in the IGST or, CGST, SGST or UTGST] / [100 + sum of tax rates,
course of supply of goods or services or both; as applicable, in %]
b. Neither intends to hold nor holds title to the goods or
services or both so procured or supplied as pure agent;
c. Does not use for his own interest such goods or services so
procured; and
d. Receives only actual amount incurred to procure such goods
or services in addition to the amount received for supply he
provides on his own account.
4.8 RATE OF EXCHANGE OF CURRENCY, OTHER THAN INDIAN RUPEES,
FOR DETERMINATION OF VALUE RULE 34
RATE OF EXCHANGE FOR DETERMINATION OF VALUE OF TAXABLE
GOODS SHALL BE, RULE 34 (1)

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 67
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CHAPTER 10 PAYMENT OF TAX

1 PAYMENT OF TAX, INTEREST, PENALTY & OTHER AMOUNTS U/S. 49 • The amount available in ECL can be utilized for payment of
OF CGST ACT any liability for respective major and minor head.
1.1 EVERY DEPOSIT MADE TOWARDS TAX, INTEREST, PENALTY, FEE OR
• The amount available in Major head cannot be used for minor
ANY OTHER AMOUNT/ S. 49 (1)
head and even transfer of funds between major head is not
By a person by internet banking or by using credit or debit cards
permissible.
or NEFT or RTGS or by such other mode credited to electronic
1.4 AMOUNT AVAILABLE IN THE ELECTRONIC CREDIT LEDGER MAY BE
cash ledger. USED U/S. 49 (4)
1.2 ITC AS SELF-ASSESSED IN THE RETURN OF A REGISTERED PERSON
For making any payment towards output tax under this Act or
U/S. 49(2)
under IGST Act in such manner and subject to such conditions
Credited to his electronic credit ledger, in accordance with u/s.
and within such time as may be prescribed.
41.
1.5 AMOUNT OF ITC AVAILABLE IN ELECTRONIC CREDIT LEDGER OF
1.3 AMOUNT AVAILABLE IN THE ELECTRONIC CASH LEDGER MAY BE
REGISTERED PERSON ON ACCOUNT U/S. 49 (5)
USED U/S. 49 (3)
a. Integrated tax first utilized for payment of IGST & amount
• For making any payment towards tax, interest, penalty, fees
remaining, if any, may be utilized towards payment of CGST
or any other amount payable under this Act or rules made
& SGST, or UTGST in that order;
thereunder in such manner & subject to such conditions &
b. Central tax first utilized towards payment of CGST &
within such time as prescribed.
amount remaining, if any, may be utilized towards the
• Head wise information is to be maintained.
payment of IGST;
Major head Minor head
c. State tax first utilized towards payment of SGST & amount
IGST Tax
remaining, if any, may be utilized towards payment of IGST.
CGST Interest
SGST / UGST Penalty
CESS Fees and other

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 68
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PROVISO (NEWLY INSERTED) 1.8 EVERY TAXABLE PERSON SHALL DISCHARGE HIS TAX & OTHER
• Provided that the input tax credit on account of state tax DUES UNDER THIS ACT OR RULES MADE THEREUNDER U/S. 49 (8)
shall be utilized towards payment of integrated tax only a. Self-assessed tax, and other dues related to returns of
where the balance of the input tax credit on account of previous tax periods;
central tax is not available for payment of integrated tax b. Self-assessed tax, and other dues related to the return of
d. Union territory tax utilized towards payment of UTGST & current tax period;
amount remaining, if any, may be utilized towards payment of c. Any other amount payable under the Act or the rules made
IGST. thereunder including the demand determined under Section
PROVISO 73 or 74.
• Provided that the input tax credit on account of Union 1.9 EVERY PERSON WHO HAS PAID THE TAX U/S. 49 (9)
Territory tax shall be utilized towards payment of a. Unless contrary is proved by him deemed to have passed on
integrated tax only where the balance of the input tax credit the full incidence of such tax to the recipient of such goods
on account of central tax is not available for payment of or services or both.
integrated tax b. Date of credit in authorized bank shall be deemed to be date
e. Central tax not utilized towards payment of STGST or of deposit in electronic cash ledger.
UTGST; and c. Tax dues means tax payable under this Act & not include
f. STGST or UTGST not utilized towards payment of central
interest, fee & penalty.
tax.
1.6 BALANCE IN THE ELECTRONIC CASH LEDGER OR ELECTRONIC d. Means interest, penalty, fee or other amount payable under
CREDIT LEDGER U/S. 49 (6) this Act or rules made thereunder.
After payment of tax, interest, penalty, fee or any other amount 2 SEC 49A
payable under this Act or rules made thereunder may be refunded Notwithstanding anything contained in section 49, the input tax
in accordance with u/s. 54. credit on account of central tax, State tax or union territory tax
1.7 ALL LIABILITIES OF A TAXABLE PERSON UNDER THIS ACT U/S. 49 (7) shall be utilized towards payment of integrated tax, Central Tax,
Recorded & maintained in an electronic liability register in such State Tax or Union territory tax, as the case may be, only after
manner as may be prescribed. the input tax credit available on account of integrated tax has
first been utilized fully towards such payment.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 69
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3 SEC 49B 4.4 RATE OF INTEREST SHALL BE NOTIFIED BY GOVT. HOWEVER, SUCH
Notwithstanding anything contained in this chapter and subject RATE TO BE NOTIFIED SHALL NOT EXCEED
to the provisions of clause (e) and clause (f) of sub-section (5) a. 18% in case of belated payment of tax i.e. on failure to pay
of section 49, the government may, on the recommendations of tax [or part of tax] to the Government's account.
Notification No. 13/2017 CT dated 28.06.2017 has notified
the council, prescribe the order and manner of utilization of the
the rate of interest as 18% per annum.
input tax credit on account of integrated tax, Central Tax,
b. Rate of interest under section 50(3) is notified vide
State Tax or Union territory tax, as the case may be, towards Notification No. 13/2017-CT dated 28.06.2017. Earlier, the
payment of any such tax. rate of interest notified under said section was 24% per
4 INTEREST ON DELAYED PAYMENT OF TAX U/S. 50 OF CGST ACT annum. Notification No. 13/2017-CT dated 28.06.2017 has
4.1 EVERY PERSON WHO IS LIABLE TO PAY TAX IN ACCORDANCE AS been amended by the Finance Act, 2022 retrospectively with
PER THIS ACT OR RULES MADE THEREUNDER U/S. 50(1) effect from 01.07.2017, to reduce the rate of interest under
Fails to pay tax or any part thereof to Govt. within period section 50(3) from 24% to 18% per annum.
prescribed, shall for the period for which the tax remains 5 ELECTRONIC LIABILITY REGISTER RULE 85 OF CGST RULES, 2017
unpaid, pay, on his own, interest at such rate, not exceeding 18% 5.1 ELECTRONIC LIABILITY REGISTERS SPECIFIED U/S. 49 (7) SHALL BE
per annum, as notified by Government. MAINTAINED, RULE 85 (1)
4.2 INTEREST U/S. 50 (1) SHALL BE CALCULATED In FORM GST PMT-01 for each person liable to pay tax, interest,
In such manner as prescribed, from day succeeding the day on penalty, late fee or any other amount on common portal & all
which such tax was due to be paid. amounts payable by him shall be debited to the said register.
5.2 ELECTRONIC LIABILITY REGISTER OF THE PERSON SHALL BE DEBITED
BY, RULE 85 (2)
a. Amount payable towards tax, interest, late fee or other
amount payable as per return furnished by said person;
b. Amount of tax, interest, penalty or any other amount payable
as determined by proper officer in pursuance of any
proceedings under the Act or as ascertained by said person;
c. Amount of tax & interest payable as a result of mismatch
d. Amount of interest that may accrue from time to time.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 70
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5.3 SUBJECT TO THE PROVISIONS OF SECTION 49, PAYMENT OF 6 ELECTRONIC CREDIT LEDGER RULE 86 OF CGST RULES, 2017
EVERY LIABILITY, RULE 85 (3) 6.1 ELECTRONIC CREDIT LEDGER MAINTAINED IN FORM GST PMT-02,
RULE 86 (1)
By registered person as per his return made by debiting
For each registered person eligible for ITC & every claim of
electronic credit ledger maintained as per rule 86 or electronic
ITC under the Act credited to said ledger.
cash ledger maintained as per rule 87 & electronic liability
6.2 ELECTRONIC CREDIT LEDGER DEBITED, RULE 86 (2)
register shall be credited accordingly.
To the extent of discharge of any liability in accordance with u/s.
5.4 AMOUNT DEDUCTED U/S. 51, OR AMOUNT COLLECTED U/S. 52,
49.
OR AMOUNT PAYABLE ON REVERSE CHARGE BASIS, OR AMOUNT
6.3 IF REGISTERED PERSON HAS CLAIMED REFUND OF ANY UNUTILIZED
PAYABLE U/S. 10, RULE 85 (4)
AMOUNT, RULE 86 (3)
Any amount payable towards interest, penalty, fee or any other From electronic credit ledger u/s. 54, amount to the extent of
amount under the Act shall be paid by debiting electronic cash claim debited in said ledger.
ledger & electronic liability register shall be credited 6.4 IF THE REFUND SO FILED IS REJECTED FULLY OR PARTLY, RULE 86 (4)
accordingly. Amount debited in Rule 86 (3), to the extent of rejection, re-
5.5 ANY AMOUNT OF DEMAND DEBITED IN THE ELECTRONIC credited to electronic credit ledger by proper officer by order
LIABILITY REGISTER, RULE 85 (5) made in FORM GST PMT-03.
Stand reduced to the extent of relief given by appellate 6.5 NO ENTRY SHALL BE MADE DIRECTLY IN ELECTRONIC CREDIT LEDGER
authority or Tribunal or court. UNDER ANY CIRCUMSTANCES, RULE 86 (5)
5.6 AMOUNT OF PENALTY IMPOSED OR LIABLE TO BE IMPOSED, REGISTERED PERSON UPON NOTICING ANY DISCREPANCY IN HIS
ELECTRONIC CREDIT LEDGER, RULE 86 (6)
RULE 85 (6)
Communicate same to the officer exercising jurisdiction, through
Stand reduced if taxable person makes payment of tax, interest
common portal in FORM GST PMT-04.
& penalty as per SCN or demand order.
6.6 RULE 86A RESTRICTION ON UTILIZATION OF BALANCE IN ECL
5.7 REGISTERED PERSON UPON NOTICING ANY DISCREPANCY IN HIS
The Commissioner or an officer authorized by him in this behalf,
ELECTRONIC LIABILITY LEDGER, RULE 85 (7)
not below the rank of an Assistant Commissioner when
Communicate same to the officer exercising jurisdiction,
through common portal in FORM GST PMT-04.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 71
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

a. The credit of input tax has been availed on the strength of 7.2 ANY PERSON SHALL GENERATE A CHALLAN IN FORM GST PMT-06,
tax invoices or debit notes or any other document RULE 87 (2)
prescribed under rule 36 – a. On common portal and enter details of amount to be deposited
Issued by a registered person who has been found non- by him towards tax, interest, penalty, fees or any other amount.
existent or not to be conducting any business from any b. Challan in FORM GST PMT-06 generated at common portal
i. place for which registration has been obtained; or shall be valid for a period of 15 days.
ii. Without receipt of goods or services or both; or 7.3 DEPOSIT UNDER RULE 87(2) SHALL BE MADE THROUGH, RULE 87 (3)
b. The tax charged in respect of which has not been paid to Any of following modes internet banking; credit card or debit card;
the Government; or NEFT or RTGS from any bank; or Over the Counter payment through
c. The registered person availing the credit of input tax has authorized banks.
been found non-existent or not to be conducting any 7.4 ANY PAYMENT REQUIRED TO BE MADE BY A PERSON WHO IS NOT
business from any place for which registration has been REGISTERED UNDER THE ACT, RULE 87 (4)
obtained; or
Made on the basis of a temporary identification number generated
d. The registered person availing any credit of input tax is
through common portal.
not in possession of a tax invoice or debit note or any
7.5 IF PAYMENT IS MADE BY WAY OF NEFT OR RTGS MODE FROM ANY
other document prescribed under rule 36, may, for reasons
BANK, RULE 87 (5)
to be recorded in writing not allow debit of an amount
equivalent to such credit in electronic credit ledger for • Mandate form generated along with challan on common portal &
discharge of any liability under section 49 or for claim of same shall be submitted to the bank from where the payment
any refund of any unutilized amount. Maximum period of is to be made.
restriction is 1 year. • Mandate form valid for a period of 15 days from date of
7 ELECTRONIC CASH LEDGER RULE 87 OF CGST RULES, 2017
generation of challan.
7.1 ELECTRONIC CASH LEDGER U/S. 49 (1) MAINTAINED IN FORM GST
PMT-05, RULE 87 (1) 7.6 ON SUCCESSFUL CREDIT OF AMOUNT TO THE CONCERNED
GOVERNMENT ACCOUNT, RULE 87 (6)
For each person liable to pay tax, interest, penalty, late fee or
CIN generated by the collecting bank & same shall be indicated in
other amount, on common portal for crediting amount deposited
the challan.
& debiting payment therefrom towards tax, interest, penalty,
fee or any other amount.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 72
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7.7 ON RECEIPT OF CIN FROM COLLECTING BANK, RULE 87 (7) b. No deduction made if location of supplier & place of supply is
Said amount credited to electronic cash ledger of the person on in a State or UT which is different from State or UT of
whose behalf the deposit made & common portal shall make registration of recipient.
available in receipt to this effect. c. Value of supply taken as amount excluding CGST, SGST,
7.8 IF BANK ACCOUNT OF PERSON CONCERNED, IS DEBITED BUT NO UTGST, IGST & cess indicated in the invoice.
CIN IS GENERATED OR GENERATED BUT NOT COMMUNICATED 8.1 AMOUNT DEDUCTED AS TAX UNDER THIS SECTION SHALL BE PAID TO
TO THE COMMON PORTAL, RULE 87 (8). THE GOVERNMENT BY THE DEDUCTOR, U/S. 51 (2)
Said person may represent electronically in FORM GST PMT-07 Within 10 days after the end of month in which such deduction is
through common portal to the bank or electronic gateway made.
through which the deposit was initiated. 8.2 DEDUCTOR SHALL FURNISH TO THE DEDUCTEE A CERTIFICATE U/S. 51
7.9 ANY AMOUNT DEDUCTED U/S. 51 OR COLLECTED U/S. 52 & (3)
CLAIMED IN FORM GSTR-02 BY REGISTERED PERSON, RULE 87 (9) Mentioning therein contract value, rate of deduction, amount
From whom said amount deducted or, collected credited to his deducted, amount paid to Govt.
electronic cash ledger. 8.3 IF DEDUCTOR FAILS TO FURNISH TO DEDUCTEE THE CERTIFICATE,
7.10 IF PERSON HAS CLAIMED REFUND OF ANY AMOUNT FROM THE AFTER DEDUCTING TAX AT SOURCE, U/S. 51 (4)
ELECTRONIC CASH LEDGER, RULE 87 (10) Within 5 days of crediting the amount to the Govt., deductor shall
Said amount debited to the electronic cash ledger. pay, by way of late fee, a sum of 100/- per day from the day after
8 TAX DEDUCTION AT SOURCE U/S. 51 OF CGST ACT expiry of 5 days period until failure is rectified, subject to a
NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED
maximum 5,000/-
IN THIS ACT, U/S. 51 (1)
Govt. may mandate department or establishment of CG or SG;
8.4 DEDUCTEE SHALL CLAIM CREDIT OF TAX DEDUCTED & REFLECTED IN
a.
RETURN OF DEDUCTOR FURNISHED U/S. 39(3), U/S. 51(5)
or local authority; or Governmental agencies; or such persons or
8.5 IF ANY DEDUCTOR FAILS TO PAY TO GOVT. THE AMOUNT DEDUCTED
category of persons as notified by Government, [deductor], to
AS TAX U/S. 51(1), HE SHALL PAY INTEREST U/S. 50(1), U/S. 51 (6)
deduct tax at the rate of 1% from the payment made or
8.6 DETERMINATION OF AMOUNT IN DEFAULT UNDER THIS SECTION
credited to supplier [deductee] of taxable goods or services or
SHALL BE MADE IN THE MANNER SPECIFIED U/S. 73 OR 74, U/S. 51 (7)
both, if total value of supply, exceeds 2,50,000/-.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 73
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8.7 REFUND TO DEDUCTOR OR DEDUCTEE ARISING ON ACCOUNT OF 9.2 POWER TO COLLECT AMOUNT SPECIFIED U/S. 52 (1) SHALL BE, U/S. 52
EXCESS OR ERRONEOUS DEDUCTION SHALL BE DEALT U/S. 54, (2)
U/S. 51 (8) Without prejudice to any other mode of recovery from the operator.
No refund to deductor shall be granted, if amount deducted 9.3 AMOUNT COLLECTED U/S. 52 (1) SHALL BE PAID TO GOVT. BY
OPERATOR, U/S. 52 (3)
credited to the electronic cash ledger of the deductee.
Within 10 days after end of month in which such collection is made.
8.8 SECTION 20 OF IGST ACT PROVIDES THAT
9.4 EVERY OPERATOR WHO COLLECTS AMOUNT SPECIFIED U/S. 52(1)
• In case of TDS deductor shall deduct tax at the rate of SHALL FURNISH A STATEMENT, ELECTRONICALLY U/S. 52(4)
2% from payment made or credited to supplier. Containing details of outward supplies effected through it, including
• Value of a supply include any taxes, duties, cases, fees & supplies returned through it, & amount collected u/s. 52(1) during a
charges levied under any law for the time being in force month, within 10 days after end of such month.
9.5 EVERY OPERATOR WHO COLLECTS AMOUNT SPECIFIED U/S. 52(1)
other than this Act, & GST [compensation to States] Act,
SHALL FURNISH ANNUAL STATEMENT, ELECTRONICALLY, U/S. 52 (5)
if charged separately by supplier. Containing details of outward supplies effected through it, including
9 COLLECTION OF TAX AT SOURCE U/S. 52 OF CGST ACT supplies returned through it, & amount collected under said sub-
9.1 EVERY ECO [OPERATOR], NOT BEING AN AGENT, SHALL U/S. 52
section during FY, before 31st December following end of such FY.
(1)
9.6 IF OPERATOR AFTER FURNISHING A STATEMENT U/S. 52(4)
a. Collect amount not exceeding 1% as notified by Govt. of DISCOVERS ANY OMISSION OR INCORRECT PARTICULARS THEREIN,
net value of taxable supplies made through it by other OTHER THAN AS A RESULT OF SCRUTINY, AUDIT, INSPECTION OR
suppliers where consideration with respect to such ENFORCEMENT ACTIVITY BY TAX AUTHORITIES, U/S. 52(6)
a. He shall rectify such omission or incorrect particulars in the
supplies is collected by operator.
statement to be furnished for the month during which such
b. Net value of taxable supplies means aggregate value of
omission or incorrect particulars noticed, subject to payment
taxable supplies, other than services notified u/s. 9(5),
of interest, specified u/s. 50(1).
made during any month by all registered persons through
b. No rectification allowed after due date for furnishing of
operator reduced by aggregate value of taxable supplies
statement for the month of September following end of FY or
returned to the suppliers during the said month.
actual date of furnishing of relevant annual statement,
whichever is earlier.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 74
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

9.7 SUPPLIER WHO SUPPLIED GOODS OR SERVICES OR BOTH 9.11 CONCERNED SUPPLIER, IN WHOSE OUTPUT TAX LIABILITY ANY
THROUGH OPERATOR SHALL CLAIM CREDIT, U/S. 52(7) AMOUNT HAS BEEN ADDED U/S. 52 (10), SHALL PAY TAX, U/S. 52
In his electronic cash ledger of amount collected & reflected in (11)
the statement of operator furnished u/s. 52(4). Payable for such supply along with interest, at the rate specified
9.8 DETAILS OF SUPPLIES FURNISHED BY EVERY OPERATOR U/S. 52 u/s. 50 (1) on the amount so added from the date such tax was due
(4) SHALL BE MATCHED WITH, U/S. 52 (8) till the date of its payment.
9.12 ANY AUTHORITY NOT BELOW THE RANK OF DEPUTY COMMISSIONER
Corresponding details of outward supplies furnished by
MAY SERVE A NOTICE, EITHER BEFORE OR DURING THE COURSE OF
concerned supplier registered under this Act.
ANY PROCEEDINGS, REQUIRING THE OPERATOR TO FURNISH SUCH
9.9 IF DETAILS OF OUTWARD SUPPLIES FURNISHED BY OPERATOR DETAILS, U/S. 52 (12)
U/S. 52 (4) DO NOT MATCH WITH, U/S. 52 (9)
Relating to supplies effected through such operator during any
Corresponding details furnished by supplier u/s. 37, discrepancy period; or stock of goods held by suppliers making supplies through
shall be communicated to both persons. operator in godown or warehouses, managed by operator & declared
9.10 AMOUNT FOR WHICH ANY DISCREPANCY IS COMMUNICATED as additional places of business by suppliers, as specified in the
U/S. 52(9) & WHICH IS NOT RECTIFIED, U/S. 52 (10) notice.
a. By supplier in his valid return or operator in his statement 9.13 EVERY OPERATOR ON WHOM A NOTICE SERVED U/S. 52 (12) SHALL
for the month in which discrepancy is communicated, shall FURNISH, U/S. 52 (13)

be, Required information within 15 working days of the date of service

of such notice.
b. Added to output tax liability of the said supplier.
9.14 PERSON FAILS TO FURNISH INFORMATION REQUIRED BY NOTICE
c. If value of outward supplies furnished by operator is more SERVED U/S. 52(12), SHALL, U/S. 52(14)
than the value of outward supplies furnished by supplier, a. Without prejudice to any action that may be taken u/s. 122,
in his return for the month succeeding the month in which be liable to penalty which may extend to 25,000/-
the discrepancy is communicated. b. Concerned supplier mean supplier of goods or services or both
making supplies through the operator.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 75
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

CHAPTER 11 INPUT TAX CREDIT

1 INTRODUCTION  INPUT TAX CREDIT U/S. 2(63) OF CGST ACT

a. GST regime promises seamless credit on goods & services Means credit of input tax.
across entire supply chain with some exceptions like supplies  MOTOR VEHICLE U/S. 2(76) OF CGST ACT
charged to tax under composition scheme & supply of a. Same meaning as assigned to it u/s. 2 (28) of Motor Vehicles
exempted goods and/or services. Act, 1988.
b. ITC Considered to be the backbone of the GST regime. b. Motor vehicle as per Motor Vehicles Act means any
c. Provisions of ITC which make GST a value added tax i.e. mechanically propelled vehicle adapted for use upon roads
collection of tax at all points of supply chain after allowing whether power of propulsion is transmitted thereto from
credit of tax paid at earlier points. external or internal source & includes a chassis to which a
2 DEFFINATIONS body has not been attached & a trailer; but not include a
 CAPITAL GOODS U/S. 2(19) OF CGST ACT vehicle running upon fixed rails or a vehicle of a special type
Means goods, value of which is capitalized in books of the person adapted for use only in a factory or in any other enclosed
claiming ITC & which are used or intended to be used in the premises or a vehicle having less than four wheels fitted with
course or furtherance of business. engine capacity of not exceeding thirty-five cubic
 INPUT U/S. 2 (59) OF CGST ACT centimeters.
Means any goods other than capital goods used or intended to
3 ELIGIBILITY & CONDITIONS FOR TAKING INPUT TAX CREDIT U/S. 16
be used by supplier in the course or furtherance of business. OF CGST ACT
 INPUT TAX U/S. 2(62) OF CGST ACT  16(1) WHO IS ENTITLED TO TAKE INPUT TAX CREDIT?
In relation to a registered person means central tax, state tax, Every registered person entitled to take credit of input tax
integrated tax or UT tax charged on any supply of goods or charged on any supply to him which are used or intended to be
services or both made to him & includes, IGST charged on import used in the course or furtherance of his business & said amount
of goods; Tax payable u/s. 9(3)(4) of CGST Act, u/s. 5(3)(4) of shall be credited to the electronic credit ledger of such person.
IGST Act, u/s. 9 (3) (4) of SGST Act; or u/s. 7 (3)(4) of UTGST
Act, but does not include the tax paid under the composition levy.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 76
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 16(2) WHAT ARE THE CONDITION TO BE FULFILLED IN ORDER TO 2. Where the services are provided by the supplier to any
TAKE INPUT TAX CREDIT?
person on the direction of an on account of such
a. No registered person entitled to credit of any input tax for
registered person,
supply to him unless, he is in possession of a tax invoice or
debit note issued by registered supplier, or other tax paying c. Supplier has paid tax to government.
documents as prescribed; d. Supplier has filed return u/s 39.
aa. A new clause (aa) has been added to section 16(2) by the PROVIDED THAT
Finance Act, 2021 to stipulate a new condition for availment • If goods against invoice received in lots or instalments,
of ITC. It provides that input tax credit in respect of any registered person shall be entitled to take credit upon
supply of goods or services or both is available to a
receipt of the last lot or instalment.
registered person only if the details of the invoice or debit
• If recipient fails to pay to supplier other than supplies on
note referred to in clause (a) has been furnished by the
supplier in the statement of outward supplies (GSTR 1) and which tax is payable on reverse charge basis, amount
such details have been communicated to the recipient of such towards value of supply along with tax payable thereon
invoice or debit note in the manner specified under section within a period of 180 days from date of issue of invoice
37 by supplier, mount equal to ITC availed by recipient shall be
b. He has received the goods or services or both. added to his output tax liability, along with interest thereon,
Bill to Ship to Model: For the purposes of this clause, it shall in such manner as prescribed.
be deemed that the registered person has received the • Recipient entitled to reavail of the credit of input tax on
goods or as the case may be, services payment made by him of the amount towards value of supply
1. Where the goods delivered along with tax payable thereon.
• By the supplier to a recipient or  16(3) IF REGISTERED PERSON HAS CLAIMED DEPRECIATION
Any other person on the direction of such registered On tax component of cost of capital goods & plant and machinery
• person, whether acting as an agent under Income-tax Act, ITC on said tax component shall not be
• or otherwise, allowed.
• Before or during movement of goods,
Either by way of transfer of documents of title to goods
• or otherwise

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 77
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 16(4) REGISTERED PERSON NOT ENTITLED TO TAKE ITC ITC availed by registered person only if Rule 36(2)
A registered person shall not be entitled to take input tax credit All applicable particulars as specified in provisions of Chapter VI
in respect of any invoice or debit note for supply of goods or are contained in said document, & relevant information, is
services or both furnished in FORM GSTR-2 by such person.
• 30th day of November following the end of financial year to No input tax credit shall be availed by registered person Rule 36(3)
which such invoice or debit note pertains, or, For any tax that has been paid in pursuance of any order where
• Furnishing of the relevant annual return, whichever is earlier. any demand has been confirmed on account of any fraud, wilful
4 CENTRAL GOODS AND SERVICE TAX RULES misstatement or suppression of facts.
 RULE 36 OF CGST RULES PROVIDED THAT
DOCUMENTARY REQUIREMENTS & CONDITIONS FOR CLAIMING INPUT Value of supplies made without consideration as specified in
TAX CREDIT Schedule I shall be deemed to have been paid for the purposes
ITC availed by registered person or ISD, on basis of any of following of u/s. 16(2).
documents rule 36 (1)
PROVIDED THAT
a. Invoice issued by supplier of goods or services or both in
The value of supplies on account of any amount added in
accordance with u/s. 31;
accordance with the provisions of clause (b) of sub-section (2) of
b. Invoice issued in accordance with u/s. 31(2) subject to
section 15 shall be deemed to have been paid for the purposes of
payment of tax;
the second proviso to sub-section (2) of section 16.
c. Debit note issued by supplier in accordance with u/s. 34; RULE 37(1), RULE (2) AMOUNT OF ITC
d. Bill of entry or any similar document prescribed under Added to output tax liability of registered person for the month
Customs Act or rules made thereunder for assessment of in which details are furnished.
integrated tax on imports; RULE 37(1), RULE (3) REGISTERED PERSON LIABLE TO PAY INTEREST AT
e. ISD invoice or ISD credit note or any document issued by THE RATE NOTIFIED U/S. 50(1)

ISD in accordance with rule 54 (1). For the period starting from date of availing credit on such
supplies till the date when amount added to output tax liability,
as mentioned in rule 37(2), is paid.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 78
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RULE 37(1), RULE (4) TIME LIMIT SPECIFIED U/S. 16(4) SHALL NOT APPLY
TO A CLAIM FOR RE- AVAILING OF ANY CREDIT RULE 37(4) a. To either comply with u/s. 17(2) or avail of every month,
In accordance with provisions of the Act or provisions of this amount equal to 50% of eligible ITC on inputs, capital goods
Chapter, that had been reversed earlier. & input services in that month & rest shall lapse.
5 APPORTIONMENT OF CREDIT AND BLOCKED CREDITS U/S. 17 OF b. Option once exercised shall not be withdrawn during
CGST ACT remaining part of FY.
 SEC 17(1) c. Restriction of 50% not apply to tax paid on supplies made by
IF SUPPLY USED BY REGISTERED PERSON PARTLY FOR BUSINESS PURPOSE one registered person to another registered person having
& PARTLY FOR OTHER PURPOSES U/S
same PAN.
Amount of credit restricted to so much of input tax as is  SEC 17(6)
attributable to purposes of his business. The Government may prescribe the manner in which the credit
 SEC 17(2)
referred to in sub-sections (1) and (2)
IF SUPPLY USED BY REGISTERED PERSON PARTLY FOR TAXABLE SUPPLIES
INCLUDING ZERO- RATED SUPPLIES & PARTLY FOR EXEMPT SUPPLIES U/S.
17 (2)
Amount of credit restricted to so much of input tax as is
attributable to taxable supplies including zero-rated supplies.
 SEC 17 (3)
The value of exempt supply under sub-section (2) shall be such as
may be prescribed, and shallinclude supplies on which the
recipient is liable to pay tax on reverse charge basis, transactions
in securities, sale of land and, subject to clause (b) of paragraph
5 of Schedule II, sale of building
 SEC 17(4)
Banking company or financial institution including nbgc, supplying
services of accepting deposits, extending loans have option u/s.
17 (4)

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 79
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 SEC 17(5)
BLOCKED CREDIT
Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1) of section 18, input tax credit shall not be
available in respect of the following namely:
a. Motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons [including
the driver], except when they are used for making the following taxable supplies, namely:
i. Further supply of such motor vehicles; or
ii. Transportation of passengers; or
iii. Imparting training on driving such motor vehicles;
aa. Vessels and aircraft except when they are used --
i) For making the following taxable supplies, namely: -
a. Further supply of such vessels or aircraft; or
b. Transportation of passengers; or
c. Imparting training on navigating such vessels; or
d. Imparting training on flying such aircraft;
ab. Services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicles, vessels or
aircraft referred to in clause (a) or clause (aa):
Provided that the input tax credit in respect of such services shall be available -
i) Where the motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) are used for the purposes specified
therein;
ii) Where received by a taxable person engaged -
a. In the manufacture of such motor vehicles, vessels or aircraft; or
b. In the supply of general insurance services in respect of such motor vehicles, vessels or aircraft insured by him;
b. The following supply of goods or services or both -
i. • Food and beverages,

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 80
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• outdoor catering,
• beauty treatment,
• health services,
• cosmetic and plastic surgery,
• leasing, renting or hiring of motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) except when used for
the purposes specified therein,
• life insurance and health insurance:
Provided that the input tax credit in respect of such goods or services or both shall be available where an inward supply of such
goods or services or both is used by a registered person for making an outward taxable supply of the same category of goods or
services or both or as an element of a taxable composite or mixed supply;
ii. Membership of a club, health and fitness centre; and
iii. Travel benefits extended to employees on vacation such as leave or home travel concession:
Proviso to (b) Provided that the input tax credit in respect of such goods or services or both shall be available, where it is
obligatory for an employer to provide the same to its employees under any law for the time being in force.
c. Works contract services when supplied for construction of an immovable property [other than plant and machinery] except where
it is an input service for further supply of works contract service;
d. Goods or services or both received by a taxable person for construction of an immovable property [other than plant or machinery]
on his own account including when such goods or services or both are used in the course or furtherance of business.
Explanation 1 - For the purposes of clauses (c) and (d), the expression “construction” includes
re-construction, renovation, additions or alterations or repairs, to the extent of capitalization, to the said immovable property.
Explanation 2 - For the purposes of this Chapter and Chapter VI, the expression “plant and machinery” means apparatus, equipment,
and machinery fixed to earth by foundation or structural support that are used for making outward supply of goods or services or
both and includes such foundation and structural supports but excludes –

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 81
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i. Land, building or any other civil structures;

ii. Telecommunication towers; and
iii. Pipelines laid outside the factory premises.
e. Goods or services or both on which tax has been paid under section 10;
f. Goods or services or both received by a non-resident taxable person except on goods imported by him;
g. Goods or services or both used for personal consumption;
h. Goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples; and
i. Any tax paid in accordance with the provisions of sections 74, 129 and 130.

 IMPORTANT CLARIFICATION b. A person who takes registration u/s. 25(3) Entitled

a. Free Sample
to take credit of input tax for inputs held in stock and
However, where the activity of distribution of gifts or free samples
falls within the scope of supply on account of the provisions
inputs contained in semi-finished or finished goods held
contained in Schedule I of the said Act the supplier would be in stock on the day immediately preceding the date of
eligible to avail of the ITC. grant of registration;
b. Buy one get one free offer
c. If any registered person ceases to pay tax u/s. 10
ITC shall be available to the supplier for the inputs input services
and capital goods used in he shall be entitled to take credit of input tax for
6 AVAILABILITY OF CREDIT IN SPECIAL CIRCUMSTANCES U/S. 18 OF inputs held in stock, inputs contained in semi-finished
CGST ACT or finished goods held in stock & on capital goods on the
 SEC 18(1)
day immediately preceding the date from which he
• SUBJECT TO SUCH CONDITIONS AND RESTRICTIONS AS MAY BE
PRESCRIBED becomes liable to pay tax u/s. 9
a. Person who applied for registration within 30 days from date PROVIDED THAT
on which he becomes liable to registration & granted Credit on capital goods shall be reduced by such percentage
registration entitled to take credit of input tax for inputs held
points as may be prescribed;
in stock & inputs contained in semi-finished or finished goods
held in stock on the day immediately preceding the date from
which he becomes liable to pay tax;

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 82
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d. If exempt supply by registered person becomes taxable b. After payment of such amount, balance of ITC, if any, lying in
supply such person entitled to take credit of input tax for his electronic credit ledger shall lapse.
inputs held in stock & inputs contained in semi-finished or  SEC 18(5)
finished goods held in stock relatable to such exempt supply • Amount of credit u/s. 18(1) & amount payable u/s. 18(4),
& on capital goods exclusively used for such exempt supply • Calculated in such manner as may be prescribed.
on the day immediately preceding the date from which such  SEC 18(6) IN CASE OF SUPPLY OF CAPITAL GOODS OR PLANT &
supply becomes taxable. MACHINERY, ON WHICH ITC TAKEN,:
 SEC 18(2) REGISTERED PERSON NOT ENTITLED TO TAKE ITC U/S. 18(1) a. Registered person shall pay amount equal to ITC taken on said
U/S. 18 (2) capital goods or plant & machinery reduced by such
For supply to him after expiry of one year from the date of issue percentage points as prescribed or tax on the transaction
of tax invoice relating to such supply.
value of such capital goods or plant & machinery determined
 SEC 18(3) IF THERE IS A CHANGE IN THE CONSTITUTION OF A
REGISTERED PERSON U/S. 18 (3) u/s. 15, whichever is higher.
On account of sale, merger, demerger, amalgamation, lease or b. If refractory bricks Moulds & dies, jigs & fixtures supplied
transfer of business with specific provisions for transfer of as scrap, taxable person may pay tax on transaction value of
liabilities, said registered person shall be allowed to transfer ITC such goods determined u/s. 15.
which remains unutilized in his electronic credit ledger to such sold, 7 TAKING ITC IN RESPECT OF INPUTS & CAPITAL GOODS SENT FOR JOB
merged, demerged, amalgamated, leased or transferred business in WORK U/S. 19 OF CGST ACT
such manner as prescribed.
1. The “principal” shall, subject to such conditions and
 SEC 18(4) IF REGISTERED PERSON WHO AVAILED ITC OPTS TO PAY TAX
U/S. 10 OR IF SUPPLY BYHIM BECOME WHOLLY EXEMPT U/S. 18 (4) restrictions as may be prescribed, be allowed input tax credit

a. He shall pay amount by way of debit in electronic credit / cash on inputs sent to a job worker for job work.

ledger equivalent to credit of input tax for inputs held in stock 2. Notwithstanding anything contained in clause (b) of sub

& inputs contained in semi-finished or finished goods held in section (2) of Section 16, the “principal” shall be entitled to

stock & on capital goods, reduced by such percentage points as take credit of input tax on inputs even if the inputs are

prescribed, on the day immediately preceding the date of directly sent to a job worker for job work without being first

exercising of such option or, the date of such exemption. brought to his place of business.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 83
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3. Where the inputs sent for job work are not received back by 7. Nothing contained in sub section (3) or sub Section (6) shall
the “principal” after completion of job work or otherwise or apply to moulds and dies, jigs and fixtures, or tools sent out
are not supplied from the place of business of the job worker to a job worker for job work.
in accordance with clause (a) or clause (b) of sub section (1) 8 CONDITIONS & RESTRICTIONS IN RESPECT OF INPUTS & CAPITAL
of section 143 within one year of being sent out, it shall be GOODS SENT TO JOB WORKER RULE 45
deemed that such inputs had been supplied by the principal 1. The goods to be send to Job worker under cover of challan
to the job worker on the day when the said inputs were PROVIDED THAT
sent out: • the challan issued by the principal may be endorsed by the
PROVIDED THAT job worker, indicating there in the quantity and
where the inputs are sent directly to a job worker, the period description of goods where the goods are sent by one job
of one year shall be counted from the date of receipt of inputs
worker to another or are returned to the principal;
by the job worker.
PROVIDED FURTHER THAT
4. The “principal” shall, subject to such conditions and
• the challan endorsed by the job worker may be further
restrictions as may be prescribed, be allowed input tax credit
endorsed by another job worker, indicating therein the
on capital goods sent to a job worker for job work.
quantity and description of goods where the goods are
5. Notwithstanding anything contained in clause (b) of sub
sent by one job worker to another or are returned to the
section (2) of Section 16, the “principal” shall be entitled to
principal. [as amended by NN 14/2018 – CT, dated
take credit of input tax on capital goods even if the capital
23.03.2018]
goods are directly sent to a job worker for job work without
2. The details of challans in respect of goods dispatched to a
being first brought to his place of business.
job worker or received from a job worker or sent from one
6. Where the capital goods sent for job work are not received
back by the “principal” within a period of three years of job worker to another [omitted words, omitted by NN
being sent out, it shall be deemed that such capital goods had 74/2018 – CT w.e.f. 31.12.2018] during a quarter shall be
been supplied by the principal to the job worker on the day included in FORM GST ITC – 04 furnished for that period
when the said capital goods were sent out: on or before the twenty fifth day of the month succeeding
PROVIDED THAT
the said quarter or within such further period as may be
• where the capital goods are sent directly to a job worker,
extended by the Commissioner by a notification in this behalf.
the period of three years shall be counted from the date
of receipt of capital goods by the job worker.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 84
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3. Where the inputs or capital goods are not returned to the RELEVANT PERIOD MEANS
principal within the time and the said supply shall be declared a. If recipients of credit have turnover in their states or UT in
in FORM GSTR – I and the principal shall be liable to pay the FY preceding the year during which credit is to be
tax along with applicable interest. distributed, the said FY; or
9 MANNER OF DISTRIBUTION OF CREDIT BY INPUT SERVICE b. If some or all recipients of credit do not have any turnover
DISTRIBUTOR U/S. 20 OF CGST ACT in their states or UT in FY preceding the year during which
 ISD SHALL DISTRIBUTE CREDIT OF CGST AS CGST OR IGST & IGST AS credit is to be distributed, the last quarter for which details
IGST OR CGST, BY WAY OF ISSUE OF DOCUMENT, U/S. 20(1)
of such turnover of all recipients are available, previous to
• Containing amount of ITC being distributed in such manner as
the month during which credit is to be distributed;
may be prescribed.
RECIPIENT OF CREDIT MEANS
ISD MAY DISTRIBUTE CREDIT SUBJECT TO FOLLOWING CONDITIONS, U/S.
Supplier having same PAN as that of ISD;
20 (2):
“TURNOVER”, IN RELATION TO ANY REGISTERED PERSON ENGAGED IN
a. Credit can be Distributed to recipients of credit against a
THE SUPPLY OF TAXABLE GOODS AS WELL AS GOODS NOT TAXABLE.
document containing details as prescribed;
Means value of turnover, reduced by amount of any duty or tax
b. Amount of credit Distributed shall not exceed the amount of
levied under entry 84 of List of seventh schedule to the
credit available for distribution;
Constitution and entries 51 and 54 of List II of the said Schedule.
c. Credit of tax paid on input services attributable to recipient of
10 MANNER OF RECOVERY OF CREDIT DISTRIBUTED IN EXCESS U/S. 21
credit shall be distributed only to that recipient;
 IF ISD DISTRIBUTES CREDIT IN CONTRAVENTION OF PROVISIONS
d. Credit of tax paid on input services attributable to more than CONTAINED U/S. 20
one recipient of credit distributed amongst recipients, prorate Resulting in excess distribution of credit to one or more
on the basis of turnover in a State or UT of such recipient, recipients of credit, excess credit so distributed shall be
during relevant period. recovered from such recipients along with interest, & provisions
e. Credit of tax paid on input services attributable to all of u/s. 73 or 74, shall, mutatis mutandis, apply for determination
recipients of credit shall be distributed amongst recipients, of amount to be recovered.
prorate on basis of turnover in a State or UT of such recipient,
during the relevant period.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 85
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 86
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

CHAPTER 12 REGISTRATION

1. RELEVANT DEFINITION • TAX PERIOD U/S. 2(106) OF CGST ACT

• COMMON PORTAL U/S. 2 (26) OF CGST Means period for which the return is required to be furnished.
Means common GST electronic portal referred to in section 146. • TAXABLE PERSON U/S. 2(107) OF CGST ACT
• PLACE OF BUSINESS – INCLUDES U/S. 2(85) OF CGST Means person who is registered or liable to be registered u/s. 22
a. Place from where business is ordinarily carried on, & includes or 24.
warehouse, godown or any other place where taxable person • AGGREGATE TURNOVER U/S. 2(6) OF CGST ACT
stores his goods, supplies or receives goods or services or Means aggregate value of all taxable supplies [excluding value of
both; or inward supplies on which tax is payable by person on reverse
b. Place where taxable person maintains his books of account; charge basis], exempt supplies, exports of goods or services or
or both & inter-state supplies of persons having same PAN, to be
c. Place where taxable person is engaged in business through computed on all India basis but excludes central tax, state tax,
agent, by whatever name called. union territory tax, integrated tax and cess.
• AGRICULTURIST U/S. 2(7) OF CGST
Means individual or Hindu Undivided Family who undertakes
cultivation of land by own labour, or by labour of family, or by
servants on wages payable in cash or kind or by hired labour under
personal supervision or personal supervision of any member of the
family.
• PRINCIPAL PLACE OF BUSINESS U/S. 2(89) OF CGST ACT
Means place of business specified as principal place of business
in certificate of registration.
• REGISTERED PERSON U/S. 2(94) OF CGST ACT
Means person registered u/s. 25, but not include person having
Unique Identity Number.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 87
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2. PERSONS LIABLE FOR REGISTRATION U/S. 22 OF CGST ACT

Threshold for Reg. in different Cases

Supplier engage in Supplier is engage in exclusive

supply of goods
• Exclusively supply of services or
• Supply of Goods + Services

In case of all Special category

In case of Other State
other state of State
- Manipur
including
- Mizoram
remaining
- Tripura
special category Threshold
- Nagaland All state
of state Limit 40L

Except
Threshold
Puducherry
limit 20 L
Telangana
Threshold Threshold limit
limit 10L 20L

Sikkim
Manipur
Uttarakhand J&K
Mizoram
Meghalaya Assam
Tripura
Arunachal Himachal
Nagaland
Pradesh

Threshold Threshold Threshold

limit 10 L limit 20 L limit 40 L

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 88
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

Ice-cream, pan masala, tobacco, fly ash bricks or fly ash 3. PERSONS NOT LIABLE FOR REGISTRATION U/S. 23 OF CGST ACT
aggregates, fly ash blocks, bricks of fossil meals or similar • FOLLOWING PERSONS SHALL NOT BE LIABLE TO REGISTRATION U/S.
23 (1)
siliceous earths, building bricks, earthen or roofing tiles [Limit is
a. Person engaged in supplying that are not liable to tax or
20 lakhs instead & 40 Lakhs] wholly exempt from tax under CGST Act or IGST Act;
• EVERY PERSON WHO, ON THE DAY IMMEDIATELY PRECEDING THE b. Agriculturist to the extent of supply of produce out of
APPOINTED DAY U/S. 22 (2) cultivation of land
Registered or holds a license under existing law, shall be liable to • GOVT. MAY, ON RECOMMENDATIONS OF COUNCIL, BY
be registered under this Act with effect from appointed ay. NOTIFICATION U/S. 23 (2)
• IF BUSINESS CARRIED ON BY A TAXABLE PERSON REGISTERED UNDER Specify category of persons who may be exempted from obtaining
THIS ACT IS TRANSFERRED U/S. 22(3) registration under this Act.
On account of succession or otherwise to another person as a going 4. COMPULSORY REGISTRATION IN CERTAIN CASES U/S. 24 OF CGST
concern, the transferee or successor, shall be liable to be ACT
registered with effect from the date of such transfer or • NOTWITHSTANDING ANYTHING CONTAINED U/S. 22(1),
FOLLOWING CATEGORIES OF PERSONS REQUIRED TO BE
succession. REGISTERED
• NOTWITHSTANDING ANYTHING CONTAINED IN U/S. 22(1) & (3), IN a. Persons making any inter-state taxable supply (exempt up
CASE OF MALGAMATION OR, DEMERGER PURSUANT TO ORDER OF to 20 / 10 lakhs for SCS except J & K);
HIGH COURT, TRIBUNAL OR OTHERWISE U/S. 22 (4) EXCEPT
Transferee liable to be registered with effect from date on which • Interstate service
registrar of Companies issues a certificate of incorporation giving • Handicraft goods supplier
effect to such order of the High Court or Tribunal. • Job worker
EXPLANATION: b. Casual taxable persons making taxable supply; (from
a. Aggregate turnover include all supplies made by taxable above)
person, whether on his own account or made on behalf of all EXCEPT
• Handicraft goods supplier
his principals;
c. Persons who are required to pay tax under reverse charge;
b. Job work value of goods shall not be included in aggregate
d. Person who are Required to pay tax u/s. 9(5);
turnover of registered job worker but shall be treated as e. Non-resident Taxable persons making taxable supply;
supply of goods by principal.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 89
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

f. Persons who are Required to deduct tax u/s. 51, whether or b. PERSON SEEKING REGISTRATION UNDER THIS ACT U/S. 25(2)
not separately registered under this Act; • Granted a single registration in a State or Union territory.
• Person having multiple business in a State or Union territory may be
g. Person who make taxable supply on behalf of other taxable
granted a separate registration for each business subject to such
persons whether as agent or otherwise;
conditions as may be prescribed.
h. ISD whether or not Separately registered under this act; c. PERSON, THOUGH NOT LIABLE TO BE REGISTERED U/S. 22 OR 24, U/S. 25 (3)
i. Persons who makes supply other than supplies specified u/s. Get himself registered voluntarily, & all provisions of this Act, as are
9(5), through such electronic commerce operator who is applicable to a registered person, shall apply to such person.
required to collect tax at source u/s. 52; (exempt up to 20 d. PERSON WHO HAS OBTAINED OR REQUIRED TO OBTAIN MORE THAN
lakhs) Every electronic commerce operator; ONE REGISTRATION, U/S. 25(4)
j. Every person supplying online information & database access In one or more state or UT in respect of each such registration, be
treated as distinct persons for the purposes of this Act.
or retrieval services from a place outside India to person in
e. PERSON WHO HAS OBTAINED OR IS REQUIRED TO OBTAIN
India, other than a registered person; and such other person REGISTRATION U/S. 25 (5)
or class of persons as may be notified by Govt. on In a State or UT for establishment, has establishment in another State
recommendations of the Council. or UT, then such establishments shall be treated as establishments of
distinct persons for the purposes of this Act.
5. PROCEDURE FOR REGISTRATION U/S. 25 OF CGST ACT
f. EVERY PERSON SHALL HAVE PAN IN ORDER TO BE ELIGIBLE FOR
a. EVERY PERSON WHO IS LIABLE TO BE REGISTERED U/S. 22 OR 24, GRANT OF REGISTRATION U/S. 25(6)
U/S. 25 (1) Person required to deduct tax u/s. 51 may have, in lieu of PAN, a Tax
Apply for registration in every such State or UT in which he Deduction and Collection Account Number issued under the said Act in
is so liable within 30 days from the date on which he becomes order to be eligible for grant of registration.
liable to registration, in such manner as prescribed. AUTHENTICATION SEC 25(6A)
• Authentication of Aadhaar card is must.
Casual taxable person or non-resident taxable person shall apply
• If Aadhaar card is not assigned, then alternate and viable means of
for registration at least 5 days prior to commencement of identification.
business. • If not done then registration deemed to be invalid.
Every person who makes supply from territorial waters of India SEC 25(6B)
shall obtain registration in the coastal State or Union territory • Every individual shall, in order to be eligible for grant of
where the nearest point of the appropriate baseline is located. registration, undergo authentication, or furnish proof of possession
of Aadhaar number or alternate and viable means of identification.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 90
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SEC 25(6C) The Central Government has notified the following class of
• On and from the date of notification, every person, other than persons on whom the provisions of
an individual, shall, in order to be eligible for grant of a) Aadhaar authentication for grant registration shall not apply:
registration, undergo authentication, or furnish proof of b) a person who is not a citizen of India; or
possession of Aadhaar number of the Karta, Managing c) A department of establishment of the Central Government
Director, whole time Director, such number of partners, or State Government; or
Members of Managing Committee of Association, Board of d) A local authority; or
Trustees, authorised representative, authorised signatory e) A statutory body; or
and such other class of persons, in such manner, as the f) A public sector undertaking; or
government may, on the recommendation of the council, g) A person applying for registration under the provisions of
specify in the said notification. sec. 25(9) of the CGST Act i.e. UIN Holders.)
• Provided that where such person or class of persons have not EXPLANATION
been assigned the Aadhaar Number, such person or class of For the purposes of this section, the expression “Aadhaar
persons shall be offered alternate and viable means of number” shall have the same meaning as assigned to it in clause
identification in such manner as the Government may, on the (a) of section 2 of the Aadhaar (Targeted Delivery of financial
recommendations of the council, specify in the said and other subsidies, benefits and services) Act, 2016.
notification g. NOTWITHSTANDING ANYTHING CONTAINED U/S. 25 (6) U/S. 25 (7)
SEC 25(6D) Non-resident granted registration u/s. 25(1) on the basis of such
• The provisions of sub – section (6A) or sub – section (6B) or
other documents as prescribed.
sub section (6C) shall not apply to such person or class of h. IF A PERSON WHO IS LIABLE TO BE REGISTERED UNDER THIS ACT
persons or any State or Union territory or part thereof, as FAILS TO OBTAIN REGISTRATION U/S. 25 (8)
the government may, on the recommendations of the council, Proper officer may without prejudice to any action which may be
specify by notification. taken under this act or under any other law proceed to register
such person in such manner as may be prescribed. Suo moto
• Class of persons who do not require Aadhaar authentication or
registration, Rule 16 (1) of CGST Act where, pursuant to any
furnishing of proof of Aadhaar number at the time of grant
survey, enquiry, inspection, search or any other proceedings
of registration (Notification No. 03/2021-CT dated 23-02- under the Act, proper officer finds
2021 w.e.f. 23-02-2021):

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 91
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

that a person liable to registration has failed to apply for such NOTWITHSTANDING ANYTHING CONTAINED U/S. 25 (10), U/S. 26 (2)
registration, such officer may register the said person on a Any rejection of application for registration or UIN under SGST
Act or UTGST Act shall be deemed to be a rejection of application
temporary basis and issue an order in FORM GST REG-12.
for registration under this Act.
i. NOTWITHSTANDING ANYTHING CONTAINED U/S. 25(1), U/S. 25(9)
7 CENTRAL GOODS AND SERVICE TAX RULES 2017
Any specialized agency like United Nations Organization or 7.1 APPLICATION FOR REGISTRATION RULE 8 OF CGST RULES
Multilateral Financial Institution & Organization notified under • EVERY PERSON SEEKING REGISTRATION RULE 8 (1)
United Nations [Privileges and Immunities] Act, Consulate or a. Before applying for registration declare his PAN, mobile
Embassy of foreign countries; & other person or class of persons, number, e-mail address, State or UT in
• Part A of FORM GST REG-01 on common portal.
as notified by Commissioner. Granted UIN in such manner & for
b. Person having Unit in SEZ or being a SEZ developer shall
purposes, including refund of taxes on notified supplies as make a separate application for registration as a business
prescribed. vertical distinct from his other units located outside SEZ.
j. REGISTRATION OR UIN U/S. 25 (10) c. Every person being ISD shall make a separate application for
• Granted or rejected after due verification in manner & with registration as ISD.
period as prescribed. • PAN VALIDATED ONLINE BY COMMON PORTAL RULE 8 (2)
• UIN applicable to territory of India a. From database maintained by Central Board of Direct Taxes.
k. CERTIFICATE OF REGISTRATION U/S. 25(11) b. Mobile number & E-mail address verified through a one-time
Issued in such form and with effect from such date as may be password sent to said mobile number & email.
prescribed. • ON SUCCESSFUL VERIFICATION OF PAN, MOBILE NUMBER & E-MAIL
REGISTRATION OR UIN DEEMED TO HAVE BEEN GRANTED U/S. 25(12) ADDRESS RULE 8(3)
After expiry of period prescribed u/s. 25(10), if no deficiency A temporary reference number [TRN] generated and
communicated to the applicant within that period. communicated to the applicant on the said mobile number and e-
6. DEEMED REGISTRATION U/S. 26 OF CGST ACT mail address.
• USING REFERENCE NUMBER GENERATED UNDER SUB-RULE (3),
GRANT OF REGISTRATION OR UIN UNDER SGST ACT OR UTGST ACT U/S.
RULE 8(4)
26 (1)
Applicant shall electronically submit application in Part B of
Deemed to be grant or registration or UIN subject to the FORM GST REG-01, duly signed or verified through electronic
condition that application for registration or UIN has not been verification code, along with documents specified in said Form.
rejected within the time specified u/s. 25 (10).

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 92
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

• ON RECEIPT OF APPLICATION UNDER SUB-RULE (4) RULE 8(5) • IF THE PROPER OFFICER FAILS TO TAKE ANY ACTION RULE 9 (5)
Acknowledgement issued electronically to the applicant in FORM Within 7 working days from date of submission of application; or
GST REG-02. within 7 working days from date of receipt of clarification,
7.2 VERIFICATION OF THE APPLICATION AND APPROVAL RULE 9 OF
information or documents furnished by applicant, the application
CGST ACT
APPLICATION FORWARDED TO PROPER OFFICER WHO SHALL EXAMINE for grant of registration shall be deemed to have been approved.
APPLICATION & ACCOMPANYING DOCUMENTS RULE 9(1) Or within 30 days in case fail to undergo Aadhaar Card
If same found to be in order approve the grant of registration to Authentication.
the applicant within a period of 7 working days from date of ISSUE OF REGISTRATION CERTIFICATE RULE 10
submission of application.
• SUBJECT TO U/S. 25 (12), IF APPLICATION FOR GRANT OF
IF APPLICATION SUBMITTED UNDER RULE 8 IS FOUND TO BE DEFICIENT,
REGISTRATION HAS BEEN APPROVED UNDER RULE 9, RULE 10(1)
RULE 9 (2)
a. Proper officer may issue a notice to applicant in FORM GST A certificate of registration in FORM GST REG - 06 showing
REG-03 within a period of 7 working days from date of principal place of business & additional places of business shall be
submission of application & applicant shall furnish such made available to the applicant on common portal & GSTIN shall
clarification, information or documents inform GST REG-04 be assigned subject to following characters two characters for
within a period of 7 working days and 21 days in case of State code; ten characters for PAN or Tax Deduction & Collection
failure to authentication and Aadhar Card from date of
Account Number, two characters for entity code; & once
receipt of such notice.
checksum character.
• IF PROPER OFFICER IS SATISFIED WITH CLARIFICATION,
INFORMATION OR DOCUMENTS RULE 9 (3) • REGISTRATION SHALL BE EFFECTIVE FROM DATE ON WHICH THE
PERSON BECOMES LIABLE TO REGISTRATION, RULE 10 (2)
He may approve grant of registration within 7 working days from
the date of receipt of such clarification. If application for registration submitted within a period of 30
• IF NO REPLY IS FURNISHED BY APPLICANT OR IF PROPER OFFICER IS days from such date.
NOT SATISFIED WITH CLARIFICATION RULE 9 (4) • IF APPLICATION FOR REGISTRATION SUBMITTED BY APPLICANT
Proper officer shall for reasons to be recorded in writing, reject AFTER EXPIRY OF 30 DAYS FROM DATE OF HIS BECOMING LIABLE TO
such application & inform the applicant electronically in FORM REGISTRATION, RULE 10 (3)
GST REG-05. Effective date of registration shall be date of grant of
registration under 9 Rule (1) or (3) or (5)

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 93
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

• EVERY CERTIFICATE OF REGISTRATION, RULE 10 (4) • Electronically submit application, duly signed or verified
Duly signed or verified through electronic verification code by through electronic verification code, in FORM GST REG-07
proper officer under the Act. for the grant of registration.
• IF REGISTRATION HAS BEEN GRANTED UNDER SUB-RULE (5) OF
• Part A - Name of ST/VT where no physical presence
RULE 9, RULE 10(5)
• Part B - Principle place and business
Applicant shall be communicated registration number, &
PROPER OFFICER MAY GRANT REGISTRATION AFTER DUE VERIFICATION
certificate of registration, duly signed or verified through
& ISSUE A CERTIFICATE OF REGISTRATION, RULE 12 (2)
electronic verification code, shall be made available to him on
• In FORM GST REG-06 within 3 working days from date of
common portal, within a period of 3 days after the expiry of
submission of application.
period specified in Rule 9 (5).
7.4 SUO MOTO REGISTRATION RULE 16 OF CGST ACT
 RULE 10 B – AADHAAR AUTHENTICATION MANDATORY FOR
EXISTING REGISTERED PERSON a. Registration granted under Rule 16 shall be effective from

The registered person, other than a person notified under sub- the date of such order granting registration.

section (6D) of section 25, who has been issued a certificate of b. Every person to whom temporary registration granted under
registration under rule 10 shall, undergo authentication of the Rule 16 shall, within 90 days from date of grant of
Aadhaar number of the in order to be eligible for the purposes as registration, submit an application for registration in the
specified below: form & manner provided.

a. For filing of application for revocation of cancellation of c. If said person has filed an appeal against grant of temporary
registration in FORM GST REG-21 under Rule 23 registration, in such case, application for registration shall

b. For filing of refund application in FORM RFD-01 under rule be submitted within 30 days from date of issuance of order
89 upholding the liability to registration by Appellate Authority.
c. For refund under rule 96 of the integrated tax paid on goods d. Provisions of rule 9 & 10 relating to verification & issue of
exported out of India certificate of registration shall, mutatis mutandis.
7.3 GRANT OF REGISTRATION TO PERSONS REQUIRED TO DEDUCT TAX e. GSTIN assigned effective from the date of the order
AT SOURCE OR TO COLLECT TAX AT SOURCE RULE 12 granting registration.
PERSON REQUIRED TO DEDUCT TAX U/S. 51 OR COLLECT TAX AT
SOURCE U/S. 52 SHALL, RULE 12 (1)

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 94
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

7.5 ASSIGNMENT OF UIN TO CERTAIN SPECIAL ENTITIES RULE 17 • of place of business of registered person is required after
EVERY PERSON REQUIRED TO BE GRANTED A UIN IN ACCORDANCE WITH grant of registration, he may get such verification done &
PROVISIONS OF U/S. 25 (9) MAY, RULE 17 (1) verification report along with other documents, including
a. Submit application electronically in FORM GST REG-13, photographs, shall be uploaded in the prescribed form on GST
duly signed or verified through electronic verification code, Common Portal, within 15 working days following the date of
in the manner specified in rule 8. such verification.
b. UIN granted to a person u/s. 25(9) shall be applicable to the 8. SPECIAL PROVISIONS RELATING TO CASUAL TAXABLE PERSON &
territory of India. NON-RESIDENT TAXABLE PERSON U/S. 27
PROPER OFFICER MAY, UPON SUBMISSION OF APPLICATION IN FORM CERTIFICATE OF REGISTRATION ISSUED TO A CASUAL TAXABLE PERSON
GST REG-13 OR, RULE 17(2) OR A NON-RESIDENT TAXABLE PERSON U/S. 27 (1)
• After receiving a recommendation from Govt. assign a UIN a. Valid for the period specified in application for registration or
to said person & issue a certificate in FORM GST REG-06 90 days from date of registration, whichever is earlier & such
within a period of 3 working days from date of submission person shall make taxable supplies only after issuance of
of application. certificate of registration.
7.6 DISPLAY OF REGISTRATION CERTIFICATE & GSTIN ON THE NAME b. Proper officer may on sufficient cause being shown by said
BOARD RULE 18 taxable person, extend the said period of 90 days by a
EVERY REGISTERED PERSON SHALL DISPLAY HIS CERTIFICATE OF further period not exceeding 90 days.
REGISTRATION, RULE 18(1) CASUAL OR NON-RESIDENT TAXABLE PERSON AT THE TIME OF
• In prominent location at his principal place of business & at SUBMISSION OF APPLICATION FOR REGISTRATION U/S. 25(1), U/S. 27(2)
every additional place or places of business. a. Make advance deposit of tax in amount equivalent to estimated
EVERY REGISTERED PERSON SHALL DISPLAY, RULE 18 (2)
tax liability of such person for the period for which the
• GSTN on name board exhibited at the entry of his principal
registration is sought.
place of business & at every additional place or places of
business. b. If any extension of time is sought such taxable person shall
7.7 PHYSICAL VERIFICATION OF BUSINESS PREMISES IN CERTAIN CASES deposit additional amount of tax equivalent to the estimated
AFTER GRANT OF REGISTRATION, RULE 25 tax liability of such person for the period for which the
IF PROPER OFFICER IS SATISFIED THAT PHYSICAL VERIFICATION extension is sought.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 95
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

AMOUNT DEPOSITED UNDER SUB-SECTION (2), U/S. 27(3)  EXTENSION IN PERIOD OF OPERATION BY CASUAL TAXABLE PERSON
Credited to electronic cash ledger of such person & shall be & NON-RESIDENT TAXABLE PERSON RULE 15
utilized in the manner provided u/s. 49 Application in FORM GST REG-11 submitted, before the end of
CENTRAL GOODS AND SERVICE TAX RULES 2017 validity of registration granted to him.
9 GRANT OF REGISTRATION TO NON-RESIDENT TAXABLE PERSON
11 AMENDMENT OF REGISTRATION SECTION 28 OF CGST ACT.
RULE 13
a. EVERY REGISTERED PERSON & A PERSON TO WHOM A UNIQUE
NON-RESIDENT TAXABLE PERSON SHALL, RULE 13 (1)
IDENTITY NUMBER ASSIGNED, U/S. 28(1)
a. Electronically submit application along with a self-attested
copy of his valid passport, for registration, duly signed or • Inform proper officer of any changes in the information
verified through electronic verification code, in FORM GST furnished at the time of registration or subsequent thereto,
REG-09, at least 5 days prior to commencement of in such form & manner & within such period as may be
business. prescribed.
b. If business entity incorporated outside India, application for b. PROPER OFFICER MAY, ON THE BASIS OF INFORMATION FURNISHED,
registration submitted along with its tax identification U/S. 28(2)
number on the basis of which entity is identified by Govt. of • Approve or reject amendments in registration particulars in
the country. such manner & within such period as prescribed.
PERSON APPLYING FOR REGISTRATION AS A NON-RESIDENT TAXABLE • Approval of proper officer not required for amendment of
PERSON SHALL BE, RULE 13(2)
such particulars as may be prescribed.
• Given temporary reference number for making advance
• Proper officer shall not reject application for amendment in
deposit of tax.
the registration particulars without giving the person an
10 GRANT OF REGISTRATION TO A PERSON SUPPLYING ONLINE
INFORMATION AND DATABASE ACCESS OR RETRIEVAL SERVICES opportunity of being heard.
FROM A PLACE OUTSIDE INDIA TO A NON-TAXABLE ONLINE c. ANY REJECTION OR APPROVAL OF AMENDMENTS UNDER SGST ACT
RECIPIENT, RULE 14 OR UTGST ACT U/S. 28(3)
Electronically submit application for registration, duly signed or Deemed to be a rejection or approval under this Act.
verified through electronic verification code, in FORM GST
REG-10.
Applicant shall be granted registration, in FORM GST REG-06,
Rule 12 (2)

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 96
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

12 CANCELLATION OF REGISTRATION U/S. 29 OF CGST ACT c. If he violates the provisions of section 171 of the CGST Act.*
 CANCELLATION OF REGISTRATION U/S. 29 OF CGST ACT d. Violates the provisions of rule 10A(furnishing of bank account
PO on his own motion or on Application filed – cancel Registration
details)
The proper officer may,
e. Avails input tax credit in violation of the provisions of section 16
1 either on his own motion or
of CGST Act or the rules made thereunder, or
2 on an application filed by the registered person or
f. Furnishes the details of outward supplies in FORM GSTR-1 under
3 by his legal heirs, in case of death of such person, cancel the
section 37 for one or more tax periods which is in excess of the
registration, in such manner and within such period as may be
outward supplies declared by him in his valid return under section
prescribed, having regard to the circumstances where:
a. The business has been discontinued, transferred fully for any
39 for the said tax periods, or
reason including death of the proprietor, amalgamated with other g. Violets the provision of rule 86B.
legal entity, demerged or otherwise disposed of; or 2 Not filing of Return
b. There is any change in the constitution of the business; or A registered person has not filed returns for continues 6 months.
c. Taxable person who is no longer liable to the registered u/s 22 or Note: 3 consecutive tax periods the return for a financial year
24 beyond three months from the due date of furnishing the said
The taxable person is no longer liable to be registered u/s 22 or return in case of person who opted for composition levy
24 or intends to output of the registration voluntarily made under 3 Voluntarily registered person has not commenced the business
section 25(3) within 6 months from the date of registration.
Provided that during pendency of the proceedings relating to 4 Registration by fraud etc.: Registration was obtained by means
cancellation of registration filed by the registered person, the of fraud, willful misstatement or suppression of facts
registration may be suspended for such period and in such manner as Proviso: Provided that the proper officer shall not cancel the
may be prescribed. [inserted by CGST [Amended] Act, 2018, w.e.f. registration without giving the person an opportunity of being
01.02.2019] heard.
 PO cancel registration from such date or retrospective date as deem fit
Proviso: Provided that during pendency of proceedings relating
The proper officer may cancel the registration of a person from such
date, including any retrospective date, as he may deem fit, where: to cancellation of registration, the proper officer may suspend
1 Following contraventions done by the registered person: (Rule 21) the registration for such period in such manner as may be
a. He does not conduct any business from the declared place of prescribed.
business, or Note: Refer Rule 21A
b. He issues invoice/bill without supply of goods or services or both
in violation of the provisions of this Act, or the rules made
thereunder.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 97
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

 CANCELLATION OF REGISTRATION U/S. 29 (3) 13 REVOCATION OF CANCELLATION OF REGISTRATION U/S. 30 OF

Not affect liability of the person to pay tax & other dues or to CGST ACT
discharge any obligation under this act or rules made thereunder for SUBJECT TO SUCH CONDITIONS AS MAY BE PRESCRIBED U/S. 30 (1)
any period prior to the date of cancellation. WITH RULE 23
 CANCELLATION OF REGISTRATION 29 (4) a. Registered person whose registration is cancelled by proper
Under SGST Act or UTGST Act, deemed to be a cancellation of officer on his own motion, may apply to such officer for
registration under this act. revocation of cancellation of registration in FORM GST
 EVERY REGISTERED PERSON WHOSE REGISTRATION IS CANCELLED SHALL REG-21 within 30 days from date of service of cancellation
PAY AMOUNT U/S. 29 (5)
order.
a. By way of debit in electronic credit / cash ledger equivalent to
b. No application for revocation shall be filed if registration
credit of input tax for inputs held in stock & inputs contained in
cancelled for failure of registered person to furnish
semi-finished or finished goods held in stock or capital goods or
returns, unless such returns furnished & any amount due as
plant and machinery on the day immediately preceding the date
tax, has been paid along with any amount payable towards
of such cancellation or output tax payable on such goods,
interest, penalty and late fee in respect of the said returns.
whichever is higher, calculated in such manner as may be
PROPER OFFICER MAY, IN SUCH MANNER & WITHIN SUCH PERIOD AS
prescribed.
PRESCRIBED U/S. 30 (2)
b. In case of capital goods or plant & machinery taxable person shall
a. By order either revoke cancellation of the registration or
pay an amount equal to ITC taken on said capital goods or plant &
reject the application.
machinery, reduced by such percentage points as prescribed or
b. Application for Revocation of cancellation of registration
tax on transaction value of such capital goods or plant and
shall not be rejected unless applicant has been given
machinery u/s. 15, whichever is higher.
opportunity of being heard.
AMOUNT PAYABLE U/S. 29 (5), U/S. 29 (6)
REVOCATION OF CANCELLATION OF REGISTRATION UNDER SGST ACT
Calculated in such manner as may be prescribed. OR UTGST ACT U/S. 30 (3)
Deemed to be a revocation of cancellation of registration under
this Act.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 98
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

13.1 APPLICATION FOR CANCELLATION OF REGISTRATION RULE 20 OF 13.4 REVOCATION OF CANCELLATION OF REGISTRATION RULE 23 OF
CGST RULES, 2017 CGST RULES, 2017
REGISTERED PERSON, OTHER THAN TO WHOM REGISTRATION GRANTED  IF PROPER OFFICER IS SATISFIED, FOR REASONS TO BE RECORDED
UNDER RULE 12 OR TO WHOM UNIQUE IDENTITY NUMBER GRANTED IN WRITING RULE 23(2)
UNDER RULE 17 a. The there are sufficient grounds for revocation of
a. Seeking cancellation electronically submit application in FORM cancellation of registration, he shall revoke cancellation of
GST REG-16, within a period of 30 days of occurrence of
registration by order in FORM GST REG-22 within 30 days
event warranting the cancellation.
from date of receipt of application.
b. No application for cancellation of registration shall be
considered, who has registered voluntarily, before the expiry b. If proper officer is not satisfied by order in FORM GST
one year from date of registration. REG-05, reject the application for revocation of
13.2 RULE 21 cancellation of registration and communicate the same to
THE REGISTRATION GRANTED TO A PERSON IS LIABLE TO BE CANCELLED, IF the applicant.
THE SAID PERSON:
a. Does not conduct any business from the declared place of
 PROPER OFFICE SHALL, BEFORE PASSING THE ORDER RULE 23(3)
• Issue a notice in FORM GST REG-23 requiring applicant to
business; or
b. Issues invoice or bill without supply of goods or services in show cause as to why application submitted for revocation
violation of the provisions of this Act, or the rules made should not be rejected & applicant shall furnish the reply
thereunder, or within 7 working days from date of service of notice in
c. Violates the provisions of section 171 of the Act or the rules FORM GST REG-24.
made thereunder.  UPON RECEIPT OF THE INFORMATION OR CLARIFICATION IN
d. Violates the provision of Rule 10A FORM GST REG-24 RULE 23(4)
13.3 RULE 21A • Proper officer shall proceed to dispose of application within
SUSPENSION OF REGISTRATION
30 days from the date of the receipt of such information
Where a registered person has applied for cancellation of
or clarification from the applicant.
registration, the registration shall be deemed to be suspended from
the date of submission of the application or the date from which
the cancellation is sought, whichever is later, pending the
completion of proceedings for cancellation of registration.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 99
99
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YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 100
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CHAPTER 13 RETURN

1 RETURN
a. Means statement of information furnished by taxpayer to tax administrators, at regular intervals.
b. Information to be furnished in return comprises details pertaining to nature of activities / business operations; measure of taxation
such as sale price, turnover, or value, deductions, exemptions; tax liability etc.
2 RELEVANT DEFINITION
• QUARTER U/S. 2 (92) OF CGST ACT
Mean a period comprising three consecutive calendar months, ending on the last day of March, June, September & December of a calendar
year.
• RETURN U/S. 2 (97) OF CGST ACT
Means any return prescribed or otherwise required to be furnished by or under this Act or rules made thereunder.
• TAX PERIOD U/S. 2 (106) OF CGST ACT
Means period for which the return is required to be furnished.
• VALID RETURN U/S. 2 (117) OF CGST ACT
Means a return furnished u/s. 39 (1) on which self-assessed tax has been paid in full.
• COMMON PORTAL U/S. 2 (26) OF CGST ACT

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 101
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LIST OF STATEMENTS/RETURNS UNDER GST

Return / Statement Periodicity / Description Who Files? Date for filing
GSTR-1 Monthly statement of outward Person registered under Due date prescribed in the Act is 11th day of the
supplies of goods and/or services regular scheme (including a next month.
casual taxable person) However, presently, the same is being extended
to 11th day of the next month.
Quarterly statement of outward Registered persons opting for 13th day of the month succeeding the quarter
supplies of goods and/or services QRMP Scheme (including a has been notified as the due date for the recent
casual taxable person) quarters
GSTR-3B Monthly return Person registered under Annual turnover ≥ Rs. 5 crore in previous financial
regular scheme including casual year - 20th of the month.
taxable person Annual turnover < Rs. 5 crore in previous financial
year - 22nd or 24th of the month depending upon
the State or Union Territory in which they are
registered. Presently, the staggered filing has
been provided for tax periods till March 2021.
GSTR-4 Return for a financial year Registered person paying tax 30th April of the next financial year
under composition scheme
GST CMP- Quarterly Statement for Registered person paying tax 18th day of the month succeeding the quarter
08 payment of self-assessed tax under composition scheme
GSTR-5 Monthly return Registered non- resident 20th day of the next month or
taxpayer within 7 days after expiry of registration,
whichever is earlier
GSTR-5A Monthly return Registered person providing 20th day of the next month
OIDAR services from a place
outside India to a non-taxable
online recipient

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 102
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GSTR-6 Monthly return Input service distributor 13th day of the next month
(ISD)
GSTR-7 Monthly return Registered person required to 10th day of the next month
deduct tax at source
GSTR-8 Monthly statement E-commerce operator required 10th day of the next month
to collect tax at source
GSTR-9 Annual return Registered person other than 31st December of the next financial year
an ISD, tax deductor /tax
collector, casual taxable
person and a non-resident
taxpayer
GSTR-9B Annual statement E-commerce operator required 31st December of the next financial year
to collect tax at source
GSTR-9C Reconciliation statement Registered person whose To be submitted along with the annual return
aggregate turnover during a [GSTR-9]
financial year exceeds Rs. 2
crore.
GSTR-10 Final return Taxable person whose Within three months of the date of cancellation
registration has been or date of order of cancellation, whichever is
surrendered or cancelled later.
GSTR-11 Details of inward Persons who have been issued a -
Supplies Unique Identity Number (UIN)

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 103
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3 FINAL RETURN U/S. 45 OF CGST ACT, 2017

REGISTERED PERSON WHO IS REQUIRED TO FURNISH A RETURN U/S. 39 (1) & WHOSE REGISTRATION CANCELLED
Furnish a final return within 3 months of date of cancellation or date of order of cancellation, whichever is later.
4 FINAL RETURN RULES 81
REGISTERED PERSON REQUIRED TO FURNISH A FINAL RETURN U/S. 45, SHALL
Furnish such return electronically in FORM GSTR-10
5 NOTICE TO RETURN DEFAULTERS U/S. 46 OF CGST ACT, 2017
REGISTERED PERSON FAILS TO FURNISH A RETURN U/S. 39 OR 44 OR 45
A notice issued requiring him to furnish such return within 15 days in such form & manner as prescribed.
6 SECTION 47 [CGST]: LEVY OF LATE FEE
Defaulted Return Late Fee
Details of Outward Supplies [Ref. Sec. 37] Rs. 100 per day of delay Maximum Rs. 5,000
Details of Inward Supplies [Ref. Sec.39] Rs. 100 per day of delay Maximum Rs. 5,000
Monthly Return [Ref. Sec. 39] Rs. 100 per day of delay Maximum Rs. 5,000
Final Return in case of cancellation of registration [Sec. 45] Rs. 100 per day of delay Maximum Rs. 5,000
Annual Return [Sec. 44] Rs. 100 per day of delay Maximum = 0.25% on Turnover in the
state/UT*

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 104
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7 FOR DELAYED FILING OF GSTR-1 AND/OR GSTR-3B

1. Registered persons who have nil outward supplies

Class of registered persons

₹ 500 (₹ 250 each under CGST & Quantum of

in the tax period/ whose total amount of tax
SGST or ₹ 500 under IGST) Late fee
payable in the GSTR- 3B is Nil, as the case may be

Aggregate turnover of ≤ ₹ 1.5 2,000 (1,000 each under CGST &

2. Registered persons other than those covered in (1) crores in the preceding FY SGST or ₹ 2,000 under IGST)
above
Aggregate turnover of 1.5 crore 5,000 (2,500 each under CGST &
to 5 crore SGST or ₹ 5,000 under IGST)

Registered persons other than Late fee as specified under

(1) and (2) section 47

8 FOR DELAYED FILING OF GSTR-4

Class of registered
Quantum of Late fee
persons

Total tax payable in ₹ 500 (₹ 250 each under CGST &

Where

GSTR-4 is Nil SGST or ₹ 500 under IGST)

Registered persons
₹ 2,000 (₹ 1,000 each under CGST
other than those
covered in (1) above & SGST or ₹ 2,000 under IGST)

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 105
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9 FOR DELAYED FILING OF GSTR-7

Maximum late fees payable under section 47 for delayed filing of annual return, rationalized
Section 47 stipulates a specified amount of late fee for delay in filing annual return. An equal amount of late fee is payable by such
person under the respective SGST/UTGST Act as well.
The late fee can be waived off partially or fully by the Central Government. Consequently, since the inception of GST law, late fee is
being regularly waived off by the Central Government either partially or fully.
From the financial year 2022-23 onwards, late fee for delayed filing of annual return, has been rationalized as follows:
Total amount of late fee payable under section 47 from the financial year 2022-23 onwards, by the registered person who fail to
furnish annual return by the due date, shall be as follows:

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 106
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Delayed filing of Annual return

Registered persons having

Registered persons having Registered persons having
following aggregate turnover:
aggregateturnover ≤ ` 5 aggregate crores
• 5 crores < aggregate turnover≤
crores in the relevant FY in the relevant FY
• 20 crores in the
Relevant FY Registered persons
having following aggregate
turnover:
• 5 crores < aggregate turnover≤
0.04 % of of • 20 crores in the relevant FY 0.50% of the
turnover in 200 for every turnover of
the State or day during
the registered
Union which such
failure person in the
territory continues (`100 State/Union
(0.02% 0.04 % of CGST + `100 Territory
CGST+ 0.02% turnover inthe SGST) (0.25% CGST +
SGST) State or Union 0.25% SGST)
territory (0.02%
CGST + 0.02%
SGST)

whichever whichever

whichever

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 107
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10 NOTICE TO NON - FILERS OF RETURNS RULE 68 OF CGST RULES, 2017 14 Conditions and restrictions
A NOTICE IN FORM GSTR - 3A ISSUED, ELECTRONICALLY • Registered persons under QRMP scheme must have furnished
• To registered person that fails to furnish return u/s. 39 or 44 or the return for the preceding month, as due on the date of
45 or 52. exercising such option. A registered person shall not be
11 QUARTERLY RETURN MONTHLY PAYMENT (QRMP) SCHEME eligible to opt for QRMP scheme if he has not furnished the
12 Introduction to QRMP last return due on the date of exercising such option.
• With effect from 01.01.2021, a Quarterly Return Monthly Payment • If a registered person intending to avail of QRMP scheme for
(QRMP) Scheme has been introduced as a Trade facilitation the quarter ‘July to September’ is exercising his option on
measure and in order to further ease the process of doing business. 27th July for the said quarter, he must have furnished the
13 Eligibility for the scheme return for the month of June which was due on 22nd/24th
• Quarterly Return Monthly Payment (QRMP) Scheme QRMP Scheme July.
Is an optional return filing scheme, introduced for small taxpayers MANNER OF EXERCISING OPTION OF QRMP SCHEME [RULE 61A]
having aggregate annual turnover (PAN based) of upto ₹ 5 crore 15 How to avail
Form 1st Jan 21
in the current and preceding financial year to furnish their Form
Some classes of Taxpayers are by default in the criteria if this
GSTR-1 and Form GSTR-3B on a quarterly basis while paying their
scheme are automatically redirected in this scheme. This
tax on a monthly basis through a simple challan.
bifurcation of the classes of the taxpayer is mentioned below.
• Opting of QRMP scheme is GSTIN wise. Distinct persons can avail Sr Class of registered person Default Option
QRMP scheme option for one or more GSTINs. It implies that some 1 Registered persons having aggregate Quarterly return
GSTINs for a PAN can opt for the QRMP scheme and remaining
turnover of up to 1.5 crore who have (QRMP scheme)
GSTINs may not opt for the said scheme. furnished FORM GSTR-1 on quarterly
Note: Other than supplier of online information and database access or basis in the C.F.Y.
retrieval services (OIDAR) located in non-taxable territory and 2 Registered persons having aggregate Monthly return (No
providing such services to a non-taxable online recipient opted under turnover of up to 1.5 crore who have QRMP scheme)
rule 61A of the CGST Rules, 2017 (discussed subsequently) shall furnish furnished FORM GSTR-1 on monthly
a return for every quarter from January, 2021 onwards, and pay the tax basis in the C.F.Y.
due every month. 3 Registered persons having aggregate Quarterly return
turnover more than Rs. 1.5 crore and up (QRMP scheme)
to 5 crore rupees in the P.F.Y.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 108
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On or after 1st Jan 21 3. It is further clarified that the option to avail the QRMP
• Facility to avail the Scheme on the common portal would be Scheme is GSTIN wise and therefore, distinct persons as
available throughout the year. defined in Sec 25 of the CGST Act (different GSTINs on
• A registered person can opt in for any quarter from first day same PAN) have the option to avail the QRMP Scheme for one
of second month of preceding quarter to the last day of the or more GSTINs. In other words, some GSTINs for that PAN
first month of the quarter. can opt for the QRMP Scheme and remaining GSTINs may
For example not opt for the Scheme.
A registered person intending to avail of the Scheme for the 16 Option of QRMP scheme to lapse
quarter ‘July to September’ can exercise his option during 1st of • In case where a registered person’s aggregate turnover
May to 31st of July. crosses ` 5 crore during a quarter in a financial year, he shall
If he is exercising his option on 27th July for the quarter (July to not be eligible for furnishing of return on quarterly basis
September), in such case, he must have furnished the return for from the first month of the succeeding quarter. He shall opt
the month of June which was due on 22/24th July. for furnishing of return on a monthly basis, electronically, on
Important Comments the common portal, from the first month of the quarter,
1. Registered persons are not required to exercise the option succeeding the quarter during which his aggregate turnover
every quarter. exceeds Rs. 5 crore.
2. All persons who have obtained registration during any quarter • The facility for opting out of the scheme for a quarter will
or the registered persons opting out from paying tax under be available from 1st day of 2nd month of preceding quarter
Sec 10 of the CGST Act during any quarter shall be able to to the last day of the 1st month of the quarter.
opt for the Scheme for the quarter for which the opting
facility is available on the date of exercising option as in para.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 109
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CHAPTER 14 TAX INVOICE

1 INTRODUCTION
a. Invoice is a commercial instrument issued by supplier of
goods/services to a recipient. It identified both the parties
3 TAX INVOICE U/S. 31 OF CGST ACT
involved.  REGISTERED PERSON SUPPLYING TAXABLE GOODS SHALL,
b. For the purpose of claiming ITC invoice matching need to be BEFORE OR AT THE TIME OF U/S. 31
a. Removal of goods for supply to the recipient, where the supply
done. The inwards supplies of the person claiming credit
involves movement of goods; or
[recipient] should match with the outward supplies of supplier.
b. Delivery of goods or making available thereof to the recipient,
c. Registered person cannot
2 RELEVANT DEFINITIONS in other case;
 CREDIT NOTE U/S. 2 (37) OF CGST ACT c. Issue a tax invoice showing description, quantity & value of
Means a document issued by a registered person u/s. 34(1) goods, tax charged 7 such other particulars as prescribed.
 DEBIT NOTE U/S. 2 (38) OF CGST ACT
d. Govt. by notification specify categories of goods or supplies
Means a document issued by a registered person u/s. 34 (3)
for which a tax invoice shall be issued, within such time &
 DOCUMENT U/S. 2(41) OF CGST ACT
manner as prescribed.
Includes written or printed record of any sort & electronic record
 REGISTERED PERSON SUPPLYING TAXABLE SERVICES SHALL,
as defined u/s. 2 (t) information Technology Act, 2000. BEFORE OR AFTER PROVISION OF SERVICE BUT
 QUARTER U/S. 2(92) OF CGST ACT a. Within a prescribed period issue a tax invoice, showing
Means a period comprising 3 consecutive calendar months, ending description, value, tax charged thereon & such other
on last day of March, June, September & December of a calendar particulars as prescribed.
year.
b. Govt. by notification specify categories of services for which
any other document issued in relation to supply shall be
deemed to be a tax invoice, or tax invoice may not be issued.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 110
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 NOTWITHSTANDING ANYTHING CONTAINED IN SUB-SECTION (1) g. Registered person who is liable to pay tax u/s. 9 (3) or (4)
AND (2) U/S. 31 (3)
shall issue invoice for goods or services or both received by
a. Registered person may within one month from date of
him from supplier who is not registered on date of receipt of
issuance of certificate of registration & in such manner as
goods or services or both.
prescribed, issue a revised invoice against invoice already
h. Registered person who is liable to pay tax u/s. 9(3) or (4) shall
issued during the period beginning with effective date of
issue a payment voucher at the time of making payment to the
registration till date of issuance of certificate of
registration. supplier.
 IN CASE OF CONTINUOUS SUPPLY OF GOODS, WHERE SUCCESSIVE
b. Registered person may not issue tax invoice if value of goods
STATEMENTS OF ACCOUNTS OR SUCCESSIVE PAYMENTS INVOLVED
or services or both supplied is less than 200/- rupees subject U/S. 31(4)
to conditions as may be prescribed. Invoice issued before or at the time each such statement is
c. Registered person supplying exempted goods or services or issued or, each such payment is received.
both or paying tax u/s. 10 shall issue, instead of a tax invoice,  SUBJECT TO THE PROVISIONS OF SUB-SECTION (3) (D), IN CASE OF
CONTINUOUS SUPPLY OF SERVICES U/S. 31(5)
a bill of supply containing particulars as may be prescribed.
a. If due date of payment ascertainable from the contract,
d. Registered person may not issue a bill of supply if value of
invoice shall be issued on or before due date of payment;
goods or services or both supplied is less than 200/- rupees
b. If due date of payment not ascertainable from the contract,
subject to conditions as may be prescribed.
invoice shall be issued before or at the time when supplier of
e. Registered person on receipt of advance payment for any
service receives the payment.
supply, issue a receipt voucher, containing particulars as may
c. If payment is linked to completion of event, invoice issued on
be prescribed, evidencing receipt of payment.
or before date of completion of that event.
f. If on receipt of advance payment for any supply registered
 IN A CASE WHERE SUPPLY OF SERVICES CEASES BEFORE
person issues a receipt voucher, but subsequently no supply is
COMPLETION OF SUPPLY U/S. 31(6)
made & no tax invoice is issued thereof, said registered
Invoice shall be issued at the time when supply ceases & such
person may issue a refund voucher against such payment.
invoice shall be issued to the extent of supply made before such
cessation.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 111
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 NOTWITHSTANDING ANYTHING CONTAINED IN SUB-SECTION (1), a. Following particulars name, address & GSTIN of supplier &
U/S. 31 (7) recipient, date of its issue; address of delivery, along with
If goods being sent or taken on approval for sale or return are name of State & its code, if such recipient is un-registered &
removed before supply takes place, invoice shall be issued before value of taxable supply is 50,000/- rupees or more or if
or at the time of supply or six months from date of removal, recipient requests tax invoice; HSN code for goods or
whichever is earlier. services; a consecutive serial number not exceeding sixteen
4 CENREAL GOODS AND SERVICE TAX RULES 2017
characters;
 TIME LIMIT FOR ISSUING TAX INVOICE RULE 47
b. Description of goods or services; quantity in case of goods and
a. In taxable supply of services, invoice shall be issued
unit or Unique Quantity Code thereof; total value of supply,
within a period of 30 days from the date of the supply
taxable value of supply; rate of tax [CGST, SGST, UTGST,
of service.
IGST or cess]; amount of tax charged; signature or digital
b. If supplier of services is insurer or banking company or
signature of supplier or his authorized representative.
financial institution, invoice shall be issued within 45 days
c. In case of export of goods or services invoice shall carry an
from date of supply of service.
endorsement “supply meant for export/supply to sez unit or
c. Insurer or banking company or financial institution, or
sez developer for authorised operations.
telecom operator, or other supplier of services as notified
by Govt. making taxable supplies of services between distinct
persons as specified u/s. 25, may issue invoice before or at
the time supplier records the same in his books of account
or before expiry of quarter during which the supply was
made.
 TAX INVOICE RULE 46 OF CGST RULES, 2017
SUBJECT TO RULE 54, TAX INVOICE REFERRED U/S. 31 SHALL BE ISSUED
BY REGISTERED PERSON CONTAINING

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 112
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POSITION WITH EFFECT FROM 1.4.2021  MANNER OF ISSUING INVOICE RULE 48 OF CGST RULES
Sr. No. Annual Turnover (AT) Number of Digits of HSN INVOICE PREPARED IN TRIPLICATE, IN CASE OF SUPPLY OF GOODS, IN
code FOLLOWING MANNER RULE 48(1)
1 AT rupees 5 crores 4
2 AP > rupees 5 crores 6 a. Original copy being marked as original for recipient;
 E - INVOICING b. Duplicate copy being marked as duplicate for transporter;
• Steps have been taken to introduce e-invoicing for reporting and
of business to business B2B invoices to GST system, c. Triplicate copy being marked as triplicate for supplier.
beginning from 1st January 2020 on a voluntary basis. All INVOICE PREPARED IN DUPLICATE, IN CASE OF SUPPLY OF SERVICES, IN
register business with an aggregate turnover based on Pan in FOLLOWING MANNER RULE 48(2)
any preceding financial year from 2017 - 18 onwards greater a. Original copy being marked as original for recipient; and
than rupees 5 Crore hereinafter referred to as notified b. Duplication copy being marked as duplicate for supplier.
persons will be required to issue invoices. SERIAL NUMBER OF INVOICES ISSUED DURING A TAX PERIOD RULE 48(3)
• Taxpayers will continue to create their GST invoices on their Furnished electronically through common portal in FORM GSTR-
own accounting Billing ERP System and these invoices will 1.
then be reported to invoice registration portal (IRP). On
such reporting, ERP will generate a unique invoice reference
number (IRN) digitally sign it and return the eve invoice to
the supplier. A GST invoice will be valid only with a valid IRN.
 RULE 46A
A new rule 46A has been inserted in CGST Rules to provide that
where a registered person is supplying taxable as well as
exempted goods or services or both to an unregistered person, a
single “invoice-cum bill of supply” may be issued for all such
supplies. This rule is notwithstanding anything contained in rule
46 or rule 49 or rule 54 of CGST Rules.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 113
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CLARIFICATION IN RESPECT OF APPLICABILITY OF DYNAMIC QUICK c. Any tax invoice or any other similar document issued under
RESPONSE (QR) CODE any other Act for the time being in force in respect of any
All B2C invoices issued by a registered person whose aggregate non-taxable supply shall be treated as a bill of supply for the
turnover in any preceding financial year from 2017-18 onwards purposes of the Act.
exceeds ₹ 500 crores are mandatorily required to have a Dynamic  RECEIPT VOUCHER RULE 50 OF CGST RULES, 2017
QR Code RECEIPT VOUCHER REFERRED U/S. 31(3) (D) SHALL CONTAIN
 BILL OF SUPPLY RULE 49 OF CGST RULES, 2017 a. Following particulars name, address & GSTIN of supplier &
A BILL OF SUPPLY U/S. 31 (3) (C) SHALL BE ISSUED BY SUPPLIER recipient; a consecutive serial number not exceeding 16
CONTAINING characters; date of its issue; description of goods or services;
a. Following details name, address & GSTIN of supplier & amount of advance taken; rate of tax, amount of tax; place
recipient; a consecutive serial number not exceeding sixteen of supply with name of State & its code, in case of inter-
State supply; tax on reverse charge basis; & signature of
characters; date of its issue; HSN Code for goods or
supplier or authorized representative.
services; description of goods or services or both; value of
b. If at the time of receipt of advance, rate of tax is not
supply; & signature of supplier or his authorized determinable, tax shall be paid at the rate of 18%.
representative c. If nature of supply not determinable, the same shall be
b. Provisions to rule 46 mutatis mutandis, apply to the bill of treated as inter-state supply.
supply issued under this rule.  REFUND VOUCHER RULE 51 OF CGST RULES, 2017
REFUND VOUCHER REFERRED TO U/S. 31(3)(3) SHALL CONTAIN
Following particulars name, address & GSTIN of supplier &
recipient; a consecutive serial number not exceeding 16
characters; date of its issue; number & date of receipt voucher in
accordance with rule 50, description of goods or services for which
refund made; amount of refund, rate of tax, amount of tax; paid
tax payable on reverse charge basis; & signature or digital
signature of supplier or authorized representative.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 114
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 PAYMENT VOUCHER RULE 52 OF CGST RULES, 2017  TAX INVOICE IN SPECIAL CASES RULE 54 OF CGST RULE, 2017
PAYMENT VOUCHER REFERRED U/S. 31(3)(G) SHALL CONTAIN ISD INVOICE OR ISD CREDIT NOT ISSUED BY ISD SHALL CONTAIN RULE
54(1)
Following particulars name, address & GSTIN of supplier &
a. Following details name, address & GSTIN of ISD & recipient
recipient if registered; a consecutive serial number not exceeding
a consecutive serial number not exceeding 16 characters;
16 characters; date of its issue; description of goods or services; date of its issue; amount of credit distributed; & signature or
amount paid, rate of tax; amount of tax payable; place of supply digital signature of ISD or his authorized representative.
with name of State & its code; & signature or digital signature of b. If ISD is an office of a Banking company or financial
supplier or his authorized representative. institution, a tax invoice shall include any document in lieu
 REVISED TAX INVOICE AND CREDIT OR DEBIT NOTES RULE 53 OF thereof, containing information as mentioned above.
CGST RULES IF SUPPLIER OF TAXABLE SERVICE IS
Following particulars word “revised Invoice”, indicated • Said supplier shall issue a tax invoice containing gross weight
of consignment, name of consigner & consignee, registration
prominently; name, address, & GSTIN of supplier & recipient;
number of goods carriages, details of goods, details of place
nature of document; a consecutive serial number not exceeding
of origin & destination, & also containing other information as
sixteen characters; date of issue, name of State & its code, if mentioned under rule 46.
such recipient is un-registered, value of taxable supply; & • A tax invoice includes ticket in any form & containing other
signature of supplier or his authorized representative. information as mentioned under rule46.
REGISTERED PERSON GRANTED REGISTRATION FROM A DATE EARLIER PROVISIONS OF SUB-RULE (2) OR SUB-RULE (4), RULE 54(5)
THAN DATE OF ISSUANCE OF CERTIFICATE OF REGISTRATION RULE 53(2) Apply mutatis mutandis, to the documents issued under rule 49 or
a. Revised tax invoices may issue for taxable supplies starting 50 or 51 or 53.
from effective date of registration till date of issuance of  TRANSPORTATION OF GOODS WITHOUT ISSUE OF INVOICE RULE 55
OF CGST RULES, 2017
certificate of registration.
• For the purposes of supply of liquid gas where quantity at the
b. Registered person may issue a consolidated revised tax
time of removal is not known, transportation of goods for job
invoice for all taxable supplies made to a recipient who is not work, transportation of goods for reasons other than by way
registered under the Act during such period. of supply, or such other supplies as may be notified by the
board, consigner may issue a delivery challan containing, Rule
55 (1)

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 115
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

• Following details delivery challan, serially numbered not d. Original copy of invoice shall be sent along with the last
exceeding 16 characters; date of challan; name, address & consignment.
GSTIN of consigner & consignee, if registered, HSN code; INVOICE OR DEBIT NOTE ISSUED IN PURSUANCE OF ANY TAX PAYABLE
quantity; taxable value; tax rate & tax amount; place of supply, U/S. 74 OR 129 OR 130 RULE 53(3)
Contain words 'INPUT TAX CREDIT NOT ADMISSIBLE”.
in case of inter-State movement & signature.
 RULE 53A
DELIVERY CHALLAN SHALL BE PREPARED IN TRIPLICATE, IN CASE OF
SUPPLY OF GOODS, IN FOLLOWING MANNER RULE 55(2) Required details are to be mentioned in debit and credit note.
 TAX INVOICE IN SPECIAL CASES RULE 54 OF CGST RULE, 2017
a. Original copy being marked as original for consignee;
ISD INVOICE OR ISD CREDIT NOT ISSUED BY ISD SHALL CONTAIN RULE
b. Duplicate copy being marked as duplicate for transporter; and 54(1)
c. Triplicate copy being marked as triplicate for consigner. a. Following details name, address & GSTIN of ISD & recipient
DELIVERY CHALLAN SHALL BE PREPARED IN TRIPLICATE, IN CASE OF a consecutive serial number not exceeding 16 characters;
SUPPLY OF GOODS, IN FOLLOWING MANNER RULE 55(3)
date of its issue; amount of credit distributed; & signature
Same declared as specified in rule 138 [E-way Bill]
or digital signature of ISD or his authorized representative.
IF GOODS BEING TRANSPORTED ARE FOR THE PURPOSE OF SUPPLY BUT
TAX INVOICE COULD NOT BE ISSUED RULE 55(4) b. If ISD is an office of a Banking company or financial
At the time of removal of goods for supply, supplier shall issue a institution, a tax invoice shall include any document in lieu
tax invoice after delivery of goods. thereof, containing information as mentioned above.
IF GOODS ARE BEING TRANSPORTED IN A SEMI KNOCKED DOWN OR IF SUPPLIER OF TAXABLE SERVICE IS INSURER OR BANKING COMPANY
COMPLETELY KNOCKED DOWN CONDITION RULE 55(5) OR FINANCIAL INSTITUTION RULE 54(2)
a. Supplier shall issue complete invoice before dispatch of the Said supplier shall issue a tax invoice containing gross weight of
first consignment; consignment, name of consigner & consignee, registration number
b. Supplier shall issue a Delivery challan for each of subsequent of goods carriage, details of goods, details of place of origin &
consignments, giving reference of invoice; destination, & also containing other information as mentioned
c. Each consignment Accompanied by copies of corresponding under rule 46.
delivery challan along with a duly certified copy of invoice, & IF SUPPLIER OF TAXABLE SERVICE IS SUPPLYING PASSENGER
TRANSPORTATION SERVICE, RULE 54(4)

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 116
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A tax invoice includes ticket in any form & containing other b. Not reduction in output tax liability of supplier shall be
information as mentioned under rule 46. permitted, if incidence of tax & interest on such supply has
PROVISIONS OF SUB-RULE (2) OR SUB-RULE (4), RULE 54(5) been passed on to any other person.
Apply mutatis mutandis, to the documents issued under rule 49 or IF TAX INVOICE ISSUED FOR SUPPLY & TAXABLE VALUE OR TAX
50 or 51 or 53. CHARGED U/S. 34(3)
 AMOUNT OF TAX TO BE INDICATED IN TAX INVOICE & OTHER • Found to be less than taxable value or tax payable for such
DOCUMENTS U/S. 33 OF CGST ACT supply, registered person, who has supplied such goods or
NOTWITHSTANDING ANYTHING CONTAINED IN THIS ACT OR OTHER services or both, shall issue to the recipient a debit note.
LAW, WHERE SUPPLY IS MADE FOR A CONSIDERATION • (even one debit note can be issued for multiple invoice)
Every person who is liable to pay tax for such supply shall REGISTERED PERSON WHO ISSUES A DEBIT NOTE FOR SUPPLY SHALL
prominently indicate in all documents relating to assessment, tax DECLARE U/S. 34(4)
invoice & other like documents, amount of tax which shall form Details of such debit note in the return for the month / quarter
part of the price. during which such debit note & tax liability shall be adjusted in
 CREDIT AND DEBIT NOTES U/S. 34 OF CGST ACT such manner as may be prescribed. Debit note include a
IF TAX INVOICE ISSUED FOR SUPPLY & TAXABLE VALUE OR TAX CHARGED supplementary invoice.
U/S. 34(1)
Found to exceed taxable value or tax payable for such supply, or
where goods supplied are returned by the recipient, or where
supply found to be deficient, registered person, who has supplied
goods or services or both, may issue to recipient a credit note
containing such particulars as may be prescribed. (even one debit
note can be issued for multiple invoice)
REGISTERED PERSON WHO ISSUES A CREDIT NOTE FOR SUPPLY SHALL
DECLARE U/S. 34(2)
a. Details of such credit note in the return for the month
during which such credit note issued but not later than
November following the end of FY in which such supply was
made, or date of furnishing of relevant annual return,
whichever is earlier & tax liability shall be adjusted.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 117
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CHAPTER 15 ACCOUNTS RECORDS & E-WAY BILL

1 INTRODUCTION
a. Assessment in GST Mainly focused on self-assessment by 3 ACCOUNTS AND OTHER RECORDS U/S. 35 OF CGST ACT
taxpayers themselves. REGISTERED PERSON SHALL KEEP & MAINTAIN, AT PRINCIPAL PLACE OF
BUSINESS, MENTIONED IN CERTIFICATE OF REGISTRATION, U/S. 35 (1)
b. Compliance verification done by Department through
a. A true & correct account of production or manufacture of
scrutiny of returns, audit and/or investigation.
goods, inward & outward supply; stock of goods; ITC availed,
c. Compliance verification done through documentary checks
output tax payable & paid, & such other particulars as
rather than physical controls. This requires taxpayer to
prescribed.
keep & maintain accounts & records.
b. If more than one place of business specified in certificate of
d. Registered person shall keep & maintain all accounts &
registration, the accounts relating to each place of business
records at his principal place of business.
shall be kept at such places of business.
e. It is not mandatory to maintain accounts & records in
EVERY OWNER OR OPERATOR OF WAREHOUSE OR OTHER PLACE USED FOR
electronic form.
STORAGE OF GOODS & EVERY TRANSPORTER, SHALL, U/S. 35(2)
f. There is no prescribed format for maintaining the accounts.
Maintain records of consigner, consignee & other relevant of goods
2 RELEVANT DEFINITION
in such manner as prescribed.
AUDIT MEANS U/S. 2(13) OF CGST ACT
Examination of records, returns & other documents maintained COMMISSIONER MAY NOTIFY CLASS OF PERSONS TO MAINTAIN
ADDITIONAL ACCOUNTS OR DOCUMENTS, U/S. 35 (3)
or furnished by registered person under this Act or rules made
IF COMMISSIONER CONSIDERS THAT ANY CLASS OF TAXABLE PERSON IS
thereunder or under any other law for the time being in force
NOT IN A POSITION TO KEEP & MAINTAIN ACCOUNTS IN ACCORDANCE
to verify the correctness of turnover declared, taxes paid, WITH PROVISIONS OF THIS SECTION, U/S. 35 (4)
refund claimed & ITC availed, & to assess his compliance with He may in writing permit such class of persons to maintain accounts
provisions of this Act or rules made thereunder. in manner as prescribed.
EVERY REGISTERED PERSON WHOSE TURNOVER DURING FY EXCEEDS
PRESCRIBED LIMIT (2 Cr) SHALL, U/S. 35(5)

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 118
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Get his accounts audited by a CA or a cost accountant & shall REGISTERED PERSON SHALL KEEP & MAINTAIN ACCOUNT OF ADVANCES
submit self-certification copy of annual accounts, reconciliation RECEIVED, PAID & ADJUSTMENTS MADE THERETO, RULE 35 (3)
statement u/s. 44(2) & such other documents in such form & 5 ELECTRONIC WAY BILL
manner as prescribed. E-WAY BILL WILL BE GENERATED WHEN THERE IS A MOVEMENT OF
GOODS IN A VEHICLE / CONVEYANCE OF VALUE MORE THAN ` 50,000
Note: above point shall not apply where audit is done by CAAG.
(EITHER EACH INVOICE OR IN (AGGREGATE OF ALL INVOICES IN A
SUBJECT TO U/S. 17 (5) (H), IF REGISTERED PERSON FAILS TO ACCOUNT
VEHICLE/ CONVEYANCE) –
FOR GOODS OR SERVICES OR BOTH U/S. 35(1), U/S. 35(6)
 In relation to a 'supply'
Proper officer shall determine amount of tax payable on goods
• For reasons other than a 'supply' (say a return)
or services or both that are not accounted for, as if such goods
• Due to inward supply' from an unregistered person
or services or both had been supplied by such person &
 For this purpose, a supply may be either of the following:
provisions of u/s. 73 or 74 shall, mutatis mutandis, apply for
• A supply made for a consideration (payment) in the course of
determination of such tax.
business
4 CENTRAL GOODS AND SERVICE TAX RULES 2017
 MAINTENANCE OF ACCOUNTS BY REGISTERED PERSONS RULE 56 • A supply made for a consideration (payment) which may not be
OF CGST RULES in the course of business
EVERY REGISTERED PERSON SHALL KEEP & MAINTAIN, IN ADDITION TO • A supply without consideration (without payment)
PARTICULARS MENTIONED U/S. 35 (1), RULE 35 (1)
• Therefore, E - Way Bills must be generated on the common
A true & correct account of goods or services imported or
portal for all these types of movements. For certain specified
exported or of supplies on reverse charge along with relevant
Goods, the E - way bill needs to be generated mandatorily even
documents, including invoices, bills of supply, delivery challans,
if the Value of the consignment of Goods is less than ` 50,000:
credit notes, debit notes, receipt vouchers, payment vouchers &
• Inter-State movement of Goods by the Principal to the Job-
refund vouchers.
worker by Principal/ registered Job- worker,
EVERY REGISTERED PERSON, OTHER THAN PERSON PAYING TAX U/S.
• Inter-State Transport of Handicraft goods by a dealer
10, SHALL MAINTAIN, RULE 35(2)
exempted from GST registration.
Accounts of stock for goods received & supplied, & opening
balance, receipt, supply, goods lost, stolen, destroyed, written
off or disposed of, gift or free sample & balance of stock.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 119
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6 GENERATION OF E WAY BILL • Goods transported under Customs Bond from ICD to Customs
REGISTERED PERSON port or from one custom station to another.
• E - way bill must be generated when there is a movement of
• Transit cargo transported to or from Nepal or Bhutan
goods of more than
• Movement of goods caused by defence formation under
• ₹ 50,000 in value to or from a Registered Person. A
Ministry of defence as a consignor or consignee
Registered person or the transporter may choose to generate
• Empty Cargo containers are being transported
and carry e - way bill even if the value of goods is less than ₹
8 VALIDITY OF E - WAY BILL
50,000. No. Distance within
UNREGISTERED PERSONS country Validity period from relevant date
Unregistered persons are also required to generate e-Way Bill. 1. One day in cases other than Over
However, where a supply is made by an unregistered person to a Dimensional Cargo or multimodal
registered person, the receiver will have to ensure all the shipment in which at least one leg involves
compliances are met as if they were the supplier Up to 200 km. transport by ship.
TRANSPORTER 2. One additional day in cases other than
• Transporters carrying goods by road, air, rail, etc.
For every 200 km. Over Dimensional Cargo or multimodal
• also need to generate e-Way Bill if the supplier has not
or part thereof shipment in which at least one leg involves
generated an e-Way Bill.
thereafter transport by ship.
7 WHEN E - WAY BILL IS NOT NECESSARY?
3. One day in case of Over Dimensional
• The mode of transport is non-motor vehicle
Cargo or multimodal shipment in which at
• Goods transported from Customs port, airport, air cargo
Up to 20 km. least one leg involves transport by ship.
complex or land customs station to Inland Container Depot
4. One additional day in case of over
(ICD) or Container Freight Station (CFS) for clearance by
For every 20 km. dimensional cargo or multimodal shipment
Customs.
or part thereof in which at least one leg involves
• Goods transported under Customs supervision or under
thereafter transport by ship.
customs seal

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 120
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CHAPTER 16 ASSESSMENT & AUDIT

1 INTRODUCTION 4 PROVISIONAL ASSESSMENT U/S. 60 OF CGST ACT, 2017

SUBJECT TO THE PROVISIONS OF SUB-SECTION (2), IF TAXABLE PERSON
a. Supplier will come to know extent of his tax liability which
U/S. 60 (1)
is to be discharged on continuous & regular basis after a. Unable to determine value of goods or services or both or
assessment. Determine rate of tax applicable thereto.
b. Assessment means determination of tax liability & includes b. He may request proper officer in writing giving reasons for
self-assessment, re-assessment, provisional assessment, payment of tax on a provisional basis & proper officer shall
summary assessment & best judgment assessment. pass order, within a period not later than 90 days from date
2 RELEVANT DEFINITION of receipt of such request, allowing payment of tax on
AUDIT U/S. 2(13) OF CGST ACT, 2017 provisional basis at such rate or on value as specified by him.
It means examination of records, returns & other documents PAYMENT OF TAX ON PROVISIONAL BASIS MAY BE ALLOWED, IF TAXABLE
maintained by registered person under GST Acts or rules made PERSON, U/S. 60(2)
there under or under any other law for the time being in force Executes a bond & with such surety as proper officer may deem fit,
binding taxable person for payment of the difference between
to verify correctness of turnover declared taxes paid, refund
amount of tax as may be finally assessed & amount of tax
claimed & ITC availed, & to assess his compliance with provisions
provisionally assessed.
of GST Acts or rules made thereunder. PROPER OFFICER SHALL, WITHIN A PERIOD NOT EXCEEDING 6 MONTHS,
ASSESSMENT U/S. 2(11) OF CGST ACT, 2017 U/S. 60 (3)
Means determination of tax liability under this Act and includes a. From date of communication of order issued under sub-section
self-assessment, re- assessment, provisional assessment, (1), pass the final assessment order after taking into account
summary assessment and best judgment assessment. such information as may be required for finalizing the
3 SELF-ASSESSMENT U/S. 59 OF CGST ACT, 2017 assessment;
EVERY REGISTERED PERSON SHALL b. Period specified in this sub-section may be extended by Joint
• Self-assess the taxes payable under this Act & furnish a Commissioner or Additional Commissioner for a further period
return for each tax period u/s. 39. not exceeding six months & by Commissioner for such further
period not exceeding four years.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 121
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REGISTERED PERSON SHALL BE LIABLE TO PAY INTEREST ON ANY TAX 6 ASSESSMENT OF UNREGISTERED PERSON U/S. 63 OF CGST ACT
PAYABLE, U/S. 60 (4) NOTWITHSTANDING ANYTHING CONTRARY CONTAINED U/S. 73 OR 74 IF
• On supply under provisional but not paid on the due date TAXABLE PERSON FAILS TO OBTAIN REGISTRATION EVEN THOUGH LIABLE
specified u/s. 39 (7) or rules made thereunder, at the rate TO DO SO OR WHOSE REGISTRATION CANCELLED U/S. 29 (2) BUT WHO
specified u/s. 50 (1), from the first day after the due date WAS LIABLE TO PAY TAX
of payment of tax for said supply till date of actual payment, a. Proper officer may proceed to assess tax liability of such
whether such amount is paid before or after issuance of person to the best of his judgment for relevant tax periods &
order for final assessment. issue assessment order within 5 years from date specified
IF REGISTERED PERSON IS ENTITLED TO A REFUND CONSEQUENT TO u/s. 44 for furnishing of annual return for FY to which the
THE ORDER OF FINAL ASSESSMENT UNDER SUB-SECTION (3), U/S. 60
tax not paid relates.
(5)
• Subject to u/s. 54 (8) interest shall be paid on such refund b. No such assessment order shall be passed without giving the
as provided in section 56. person opportunity of being heard [15 days' notice of reply]
5 ASSESSMENT OF NON-FILERS OF RETURNS OR BEST JUDGMENT 7 SUMMARY ASSESSMENT IN CERTAIN SPECIAL CASES U/S. 64 OF CGST
ASSESSMENT U/S. 62 ACT
NOTWITHSTANDING ANYTHING CONTRARY CONTAINED U/S. 73 OR 74, PROPER OFFICER MAY, ON ANY EVIDENCE SHOWING A TAX LIABILITY OF A
IF REGISTERED PERSON FAILS TO FURNISH RETURN U/S. 39 OR 45, PERSON COMING TO HIS NOTICE, U/S. 64 (1)
EVEN AFTER SERVICE OF A NOTICE U/S. 46, U/S. 62 (1)
a. With previous permission of additional Commissioner or Joint
• Proper officer may proceed to assess tax liability of said
Commissioner, proceed to assess tax liability of such person to
person to the best of his judgement. taking into account
protect the interest of revenue & issue an assessment order,
all the relevant material which is available & issue an
if he has sufficient grounds to believe that any delay in doing
assessment order within 5 years from date specified u/s. 44
so may adversely affect the interest of revenue.
for furnishing of annual return for the FY to which the tax
b. If taxable person to whom liability pertains not ascertainable
not paid relates
IF REGISTERED PERSON FURNISHES A VALID RETURN WITHIN 30 DAYS & such liability pertains to supply of goods, the person in charge
OF SERVICE OF ASSESSMENT ORDER U/S. 62 (1), U/S. 62 (2) of such goods deemed to be taxable person & liable to pay tax
• Said assessment order shall be deemed to have been & other due.
withdrawn but liability for payment of interest u/s. 50 (1)
or for payment of late fee u/s. 47 shall continue.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 122
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ON APPLICATION MADE BY TAXABLE PERSON WITHIN 30 DAYS FROM DURING THE COURSE OF AUDIT, THE AUTHORIZED OFFICER MAY REQUIRE
DATE OF RECEIPT OF ORDER PASSED U/S. 64 (1) OR ON HIS OWN THE REGISTERED PERSON, U/S. 65 (5)
MOTION, U/S. 64 (2) a. To afford him necessary facility to verify the books of account
• If Additional Commissioner or Joint Commissioner considers or other documents as he may require;
that such order is erroneous, he may withdraw such order b. To furnish such information as he may require & render
and follow the procedure laid down in u/s. 73 or 74. assistance for timely completion of the audit.
8 AUDIT BY TAX AUTHORITIES U/S. 65 OF CGST ACT ON CONCLUSION OF AUDIT, THE PROPER OFFICER SHALL, U/S. 65 (6)
COMMISSIONER OR ANY OFFICER AUTHORIZED BY HIM BY GENERAL
• Within 30 days inform the registered person, whose records
OR SPECIFIC ORDER, MAY, U/S. 65 (1)
• Undertake audit of any registered person for such period, are audited, about the findings, his rights and obligations & the

at such frequency & in manner as prescribed. reasons for such findings.

OFFICERS REFERRED IN SUB-SECTION (1) MAY, U/S. 65 (2) IF AUDIT CONDUCTED UNDER SUB-SECTION (1) RESULTS IN DETECTION OF
TAX NOT PAIDOR SHORT PAID OR ERRONEOUSLY REFUNDED, OR ITC
• Conduct audit at the place of business of registered person
WRONGLY AVAILED OR UTILIZED, U/S. 65 (7).
or in their office. Registered person shall be informed by
• Proper officer may initiate action u/s. 73 or 74.
way of a notice, u/s. 65 (3) Not less than 15 working days
9 SPECIAL AUDIT U/S. 66 OF CGST ACT
prior to the conduct of audit in such manner as may be IF AT ANY STAGE OF SCRUTINY, INQUIRY, INVESTIGATION OR OTHER
prescribed. PROCEEDINGS BEFORE HIM, ANY OFFICER NOT BELOW THE RANK OF
AUDIT UNDER SUB-SECTION (1) SHALL BE COMPLETED U/S. 65 (4) ASSISTANT COMMISSIONER, U/S. 66 (1)
a. Within 3 months from the date of commencement of audit. a. Having regard to nature & complexity of the case & interest of
b. Commissioner may extend the period of audit by a further revenue, is of the opinion that the value has not been correctly
period not exceeding six months. declared or credit availed is not within the normal limits.
c. Commencement of audit mean the date on which records & b. He may, with prior approval of commissioner, direct registered
other documents, called for by tax authorities, are made person in writing to get his records including books of account
available by registered person or actual institution of audit examined & audited by CA or cost accountant as may be
at the place of business, whichever is later. nominated by Commissioner.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 123
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CA OR COST ACCOUNT SO NOMINATED SHALL, U/S. 66 (2)

a. Within 90 days submit a report of such audit duly signed &
certified by him to said Assistant Commissioner.
b. Assistant Commissioner may on application made to him
extend the said period by a further period of 90 days.
PROVISIONS OF SUB-SECTION (1) SHALL HAVE EFFECT
NOTWITHSTANDING THAT THE ACCOUNTS OF THE REGISTERED
PERSON, U/S. 66 (3)
• Audited under any other provisions of this Act or any other
law for the time being in force.
REGISTERED PERSON SHALL BE GIVEN AN OPPORTUNITY OF BEING
HEARD, U/S. 66 (4)
• For any material gathered on the basis of special audit under
sub-section (1) which is proposed to be used in any
proceedings against him under this Act or the rules made
thereunder.
EXPENSES OF THE EXAMINATION AND AUDIT OF RECORDS UNDER
SUB-SECTION (1), INCLUDING, U/S. 66 (5)
• Remuneration of CA or cost accountant, shall be determined
& paid by Commissioner & such determination shall be final.
IF SPECIAL AUDIT CONDUCTED UNDER SUB-SECTION (1) RESULTS IN
DETECTION OF TAX NOT PAID OR SHORT PAID OR ERRONEOUSLY
REFUNDED, OR ITC WRONGLY AVAILED OR UTILIZED, U/S. 66 (6).
• Proper officer may initiate action u/s. 73 or 74.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 124
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CHAPTER 17 DEMANDS AND RECOVERY

1 INTRODUCTION 2 DETERMINATION OF TAX NOT PAID OR SHORT PAID OR ERRONEOUSLY

REFUNDED OR ITC WRONGLY AVAILED OR UTILIZED FOR ANY REASON
GST LAW CONTAINS ELABORATE PROVISIONS FOR RECOVERY OF TAX
OTHER THAN FRAUD OR WILLFUL – MISSTATEMENT OR SUPPRESSION
UNDER VARIOUS SITUATIONS, WHICH CAN BE BROADLY CLASSIFIED
OF FACTS U/S. 73 OF CGST ACT
INTO IF IT APPEARS TO PROPER OFFICER THAT ANY TAX HAS NOT BEEN PAID OR
a. Following two categories tax short paid or erroneously SHORT PAID OR ERRONEOUSLY REFUNDED, OR ITC WRONGLY AVAILED OR
refunded or ITL wrongly availed. Non-payment of self- UTILIZED FOR ANY REASON, OTHER THAN REASON OF FRAUD OR ANY
WILLFUL-MISSTATEMENT OR SUPPRESSION OF FACTS TO EVADE TAX, U/S.
assessed tax or amount collected as representing the tax. 73 (1).
RELEVANT DEFINITION • He shall serve notice on the person chargeable with tax,
ADJUDICATING AUTHORITY MEANS U/S. 2 (4) OF CGST ACT
requiring him to show cause as to why he should not pay amount
• Any authority, appointed or authorized to pass any order or
specified in the notice along with interest payable thereon u/s.
decision under this Act, but does not include the Central
50 & penalty leviable.
Board of Excise and Customs, Revisional Authority, PROPER OFFICER SHALL ISSUE THE NOTICE UNDER SUB-SECTION (1), U/S. 73
Authority for Advance Ruling, Appellate Authority for (2)
Advance Ruling, Appellate Authority & Appellate Tribunal. • At least 3 months prior to the time limit specified in sub-section
APPELLATE AUTHORITY MEANS U/S. 2 (8) OF CGST ACT (10) for issuance of order.
An authority appointed or authorized to hear appeals as IF A NOTICE HAS BEEN ISSUED FOR ANY PERIOD UNDER SUB-SECTION (1),
U/S. 73 (3)
referred to in section 107
• Proper officer may serve a statement containing details of tax
APPELLATE TRIBUNAL U/S. 2 (9) OF CGST ACT
not paid or short paid or erroneously refunded or ITC wrongly
• Means goods and services Tax Appellate Tribunal
availed or utilized for such periods other than those covered
constituted u/s. 109 under sub-section (1).
SERVICE OF SUCH STATEMENT SHALL BE DEEMED TO BE SERVICE OF NOTICE
ON SUCH PERSON UNDER SUB-SECTION (1), U/S. 73 (4)
• Subject to the condition that the grounds relied upon for such
tax periods other than those covered under sub-section (1) are
the same as are mentioned in the earlier notice.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 125
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

PERSON CHARGEABLE WITH TAX MAY, BEFORE SERVICE OF NOTICE NOTWITHSTANDING ANYTHING CONTAINED U/S. 73 (6) OR (8), PENALTY
U/S. 73 (1) OR STATEMENT U/S. 73 (3), U/S. 73 (5) UNDER SUB-SECTION (9) SHALL BE PAYABLE WHERE, U/S. 73 (11) [10% OF
• Pay the amount of tax along with interest payable thereon TAX 10,000 w-e-higher]
u/s. 50 on the basis of his own ascertainment of such tax or • Any amount of self-assessed tax or any amount collected as tax
tax as ascertained by proper officer & inform proper officer has not been paid within a period of 30 days from the due date
in writing of such payment. of payment of such tax.
PROPER OFFICER, ON RECEIPT OF SUCH INFORMATION, SHALL NOT 3 DETERMINATION OF TAX NOT PAID OR SHORT PAID OR ERRONEOUSLY
SERVE ANY NOTICE U/S. 73 (1) OR STATEMENT U/S. (3), U/S. 73 (6) REFUNDED OR ITC WRONGLY AVAILED OR UTILIZED BY REASON OF
• For tax so paid or any penalty payable under the provisions FRAUD OR WILLFUL-MISSTATEMENT OR SUPPRESSION OF FACTS, U/S.
of this Act or rules made thereunder. 74 OF CGST ACT
IF PROPER OFFICER IS OF THE OPINION THAT AMOUNT PAID U/S. 73 IF IT APPEARS TO PROPER OFFICER THAT ANY TAX NOT PAID OR SHORT
(5) FALLS SHORT OF AMOUNT ACTUALLY PAYABLE, U/S. 73 (7) PAID OR ERRONEOUSLY REFUNDED OR ITC WRONGLY AVAILED OR UTILIZED
• He shall proceed to issue notice as provided for in sub- BY REASON OF FRAUD, OR WILLFUL- MISSTATEMENT OR SUPPRESSION OF
section (1) for amount falls short of amount payable. FACTS TO EVADE TAX, U/S. 74 (1)
IF ANY PERSON CHARGEABLE WITH TAX U/S. 73 (1) OR 73 (3) PAYS • He shall serve notice on the person chargeable with tax,
SAID TAX ALONG WITH INTEREST PAYABLE U/S. 50, U/S. 73 (8)
requiring him to show cause as to why he should not pay the
• Within 30 days of issue of show cause notice, no penalty
amount specified in the notice along with interest payable
shall be payable & all proceedings for said notice shall be
thereon u/s. 50 & a penalty.
deemed to be concluded.
PROPER OFFICER SHALL ISSUE THE NOTICE UNDER SUB-SECTION (1), U/S. 74
PROPER OFFICER SHALL, AFTER CONSIDERING THE REPRESENTATION,
(2)
IF ANY, MADE BY PERSON CHARGEABLE WITH TAX, U/S. 73 (9)
• At least 6 months prior to the time limit specified in sub-section
• Determine amount of tax, interest & a penalty equivalent to 10%
of tax or 10,000/-, whichever is higher.
(10) for issuance of order.
PROPER OFFICER SHALL ISSUE THE ORDER UNDER SUB-SECTION (9) IF A NOTICE ISSUED FOR ANY PERIOD UNDER SUB-SECTION (1), THE PROPER
WITHIN THREE YEARS, U/S. 73 (10) OFFICER MAY SERVE, U/S. 74 (3)
• From due date for furnishing of annual return for the FY to • A Statement containing details of tax not paid or short paid or
which tax not paid or short paid or ITC wrongly availed or erroneously refunded or ITC wrongly availed or utilized for such
utilized relates to or within 3 years from the date of periods other than those covered under sub-section (1).
erroneous refund.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 126
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CMA VIPUL SHAH CS EXECUTIVE – JUNE/ DEC 24 GST REVISION

SERVICE OF STATEMENT UNDER SUB-SECTION (3) SHALL BE DEEMED PROPER OFFICER SHALL, AFTER CONSIDERING THE REPRESENTATION, IF
TO BE SERVICE OF NOTICE U/S. 73 (1), U/S. 74 (4) ANY, MADE BY PERSON CHARGEABLE WITH TAX, U/S. 74 (9)
• Subject to the condition that grounds relied upon in the said
• Determine amount of tax, interest & penalty due from such
statement, except the ground of fraud, or any willful-
person & issue an order.
misstatement, or suppression of facts to evade tax, for PROPER OFFICER SHALL ISSUE THE ORDER UNDER SUB-SECTION (9), U/S. 74
periods other than those covered under sub-section (1) are (10)
the same as are mentioned in the earlier notice. • Within a period of 5 years from due date for furnishing of
PERSON CHARGEABLE WITH TAX MAY, BEFORE SERVICE OF NOTICE annual return for the FY to which the tax not paid or short paid
UNDER SUB-SECTION (1), U/S. 74 (5)
or ITC wrongly availed or utilized relates to or within 5 years
• Pay the amount of tax along with interest payable u/s. 50 &
from date of erroneous refund.
penalty equivalent to 15% of such tax on the basis of his own IF ANY PERSON SERVED WITH AN ORDER ISSUED UNDER SUB-SECTION (9)
ascertainment of such tax or as ascertained by proper U/S. 74 (11)
officer & inform the proper officer. a. Pays the tax along with interest payable thereon u/s. 50 & a
PROPER OFFICER, ON RECEIPT OF SUCH INFORMATION, SHALL NOT penalty equivalent to 50% of such tax within 30 days of
SERVE ANY NOTICE UNDER SUB-SECTION (1), U/S. 74 (6)
communication of order, all proceedings for said notice shall be
• For tax so paid or any penalty payable under the provisions
deemed to be concluded.
of this Act or rules made thereunder.
b. All proceedings not include proceedings u/s. 132
IF PROPER OFFICER IS OF THE OPINION THAT AMOUNT PAID U/S. 74
(5) FALLS SHORT OF AMOUNT ACTUALLY PAYABLE, U/S. 74 (7) c. Suppression mean non-declaration of facts or information which
• He shall proceed to issue the notice u/s. 74 (1) for amount a taxable person is required to declare in the return, statement,
which falls short of amount actually payable. report or any other document furnished or failure to furnish any
IF ANY PERSON CHARGEABLE WITH TAX UNDER SUB-SECTION (1), U/S. information on being asked for, in writing, by the proper officer
74 (8)
• Pays the tax along with interest payable u/s. 50 & a penalty
equivalent to 25% of such tax within 30 days of issue of
notice, all proceedings in respect of said notice shall be
deemed to be concluded.

YES ACADEMY FOR CS & LAW | 8888 235 235 “समय और शिक्षा का सही उपयोग ही व्यक्ति को सफल बनाता है।” 127
127