Goods and Services Tax

Transition Provisions under GST
GST Law and Procedure – GST Law and Procedure [January, 2019]
GST
Chapter Twenty
Transition Provisions under GST
GST is a significant reform in the field of indirect taxes in our country. Multiple taxes levied and collected by the Centre and States have been replaced by one tax called Goods and Services Tax (GST). GST is a multi-stage value added tax on consumption of goods or services or both.
As GST sought to consolidate multiple taxes into one it was very essential to have transitional provisions to ensure that the transition to the GST regime is very smooth and hassle free and no ITC (input tax credit) / benefits earned in the existing regime are lost. The transition provisions can be categorized under three heads:
a) relating to input tax credit
b) Continuance of existing procedures such as job work for a reasonable period without any adverse consequence under GST law.
c) All claims (pending as well as future) pertaining to existing l

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it on capital goods:
The balance instalment of un-availed credit on capital goods credit can also be taken by filing the requisite declaration in the GST TRAN 1.
c) Credit on duty paid stock:
A registered taxable person, other than manufacturer or service provider, may have a duty paid goods in his stock on 1st July, 2017. GST would be payable on all supplies of goods or services made after the appointed day. It is not the intention of the Government to collect tax twice on the same goods. Hence, in such cases, it has been provided that the credit of the duty/tax paid earlier would be admissible as credit. Such credit can be taken as under:
i. credit shall be taken on the basis of invoice evidencing payment of duty of excise or VAT.
ii. such invoices should be less than one-year old.
iii. declare the stock of duty paid goods within prescribed time on the common portal.
d) credit on duty paid stock when registered person does not possess the document evidencing payment of exc

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in each of six tax period has to be submitted
v. Stocks stored should be easily identifiable.
e) Credit relating to exempted goods under the existing law which are now taxable.
Input Tax Credit of CENVAT / VAT in respect of input, semi-finished and finished goods in stock attributable to such exempted goods or services which are now taxable can also be taken in the same manner.
f) Input /input services in transit:
There might be a scenario where input or input services are received on or after the appointed day but the duty or tax on the same was paid by the supplier under the existing law. Registered person (RP) may take credit of eligible duties and taxes, provided the invoice has been recorded in the books within 30 days from 1st July, 2017. The period can be extended by the Commissioner GST by another 30 days. A statement of such invoices have to be furnished. ISD can also distribute such credit.
g) Tax paid under existing law under composition scheme:
Those taxpayers who p

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hich the centralized registration was obtained.
i) Reclaim the reversed Input Service credit:
CENVAT credit reversed on account of non-payment of consideration within three months can be reclaimed if payment is made to the supplier of service within 3 months from 1st July, 2017
j) Where any goods or capital goods belonging to the principal are lying at the premises of the agent on the Appointed Day:
This provision is specific to SGST law. In such cases, agent shall be entitled to take credit subject to the following conditions:
i. the agent is a registered taxable person
ii. both the principal and the agent declare the details of stock
iii. the invoices are not earlier than twelve months
iv. the principal has either reversed or not availed of the input tax credit.
b) Transition provisions relating to job work, goods returned/ sent on approval etc.:
a) Job work: –
Inputs, semi-finished goods or finished goods were sent to the job worker or any other premises without paymen

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returned by a registered person, then return of goods shall be treated as supply of goods (ITC can be claimed)
c) Goods sent on approval basis before 6 months of the appointed day i.e. 1st July, 2017 but returned within 6 months from 1st July, 2017:
No tax is payable by the person returning the goods. Commissioner may extend the period by 2 months. If returned after that, tax is payable if the supply is taxable under GST (by the recipient. If not returned, tax is payable by the person who sent the goods on approval basis.
d) TDS deducted in VAT
Where a supplier has made any sale of goods and tax was required to be deducted under VAT Act and Invoice was issued before the appointed day, however, the payment was made on or after appointed day. In such cases no TDS under GST is to be deducted.
e) Price revision in respect of existing contracts
In case of upward price revision, a registered person will issue a supplementary invoice or debit notes within 30 days from the date of revi

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Time of Supply of Goods – Basic [ section 12 of CGST Act ]
Time of Supply – GST Ready Reckoner
GST
Time of Supply of Goods – Basic
Time of Supply
In order to calculate and discharge tax liability it is important to know the date when the tax liability arises i.e., the date on which the charging event has occurred. In GST law, it is known as Time of Supply.
GST law has provided separate provisions to determine the time of supply of goods section 12 of CGST 2017, theses provision are a

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The Meaning and Scope of Supply – Section 7
Levy and Collection – GST Ready Reckoner
GST
The Meaning and Scope of Supply (Section 7)

Section 7(1) – For the purposes of this Act, the expression, supply includes –

(a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business;

(aa) the activities or transactions, by a person, other than an individual, to its members or constituents or vice-versa, for cash, deferred payment or other valuable consideration. [Clause (aa) inserted vide Finance Act, 2021, w.r.e.f 1st July 2017]

Explanation.For the purposes of this clause, it is hereby clarified that, notwithstanding anything contained in any other law for the time being in force or any judgment, decree or order of any Court, tribunal or authority, the person and its members or cons

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ration and production activities on behalf of the JV.

On the other hand, in example B, the operating member uses its own machinery and is therefore providing 'service' within the scope of supply of CGST Act, 2017. This is because in this scenario, the operating member is recovering the cost appropriated towards machinery and services from the other JV members in their participating interest ratio.

(b) import of services for a consideration whether or not in the course or furtherance of business is considered as supply, even if the transaction does not involve consideration, it still falls under the scope of supply.

(c) the activities specified in Schedule I, made or agreed to be made without a consideration. Some examples are permanent transfer/disposal of business assets where ITC is availed on such assets, supply of goods/services/both between related persons etc.

Commentary : Supply is an important event determining the taxability of all transactio

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se agreed to be 'made' signifies that tax is not only payable on supply, that has already been made, but would also be payable in respect to a supply that has been agreed to be made. Hence, even advances received prior to supply is taxable even if the same is in 2 connection to a supply agreed to be made.

Important Notification & Clarification 

• Clarification  on Supply of goods or services in respect of warranty replacement of parts and repair services during warranty period, whether it is supply or not and that is liable to pay GST or not. [ Circular No. 195/07/2023-GST dated 17.07.2023 ]

• The original equipment manufacturers /suppliers offer warranty for the goods / services supplied by them. During the warranty period, replacement goods /services are supplied to customers free of charge and as such no separate consideration is charged and received at the time of replacement.

• In respect of GST liability as we

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ch a situation, the salvage becomes the property of Insurance Company after settling the claim for the full amount and the insurance company is obligated to deal with the same or dispose of the same. In such cases, the outward GST liability on disposal/sale of the salvage is to be discharged by the insurance companies.

• In case where due to the conditions mentioned in the contract itself, general insurance companies are deducting the value of salvage as deductibles from the claim amount, the salvage remains the property of insured and insurance companies are not liable to discharge GST liability on the same.

• In such Situation where the insurance claim is settled on full claim amount, without deduction of value of salvage/ wreckage (as per the terms of the contract), the salvage becomes the property of the insurance company and the insurance company will be obligated to discharge GST on supply of salvage to the salvage buyer.

• Clarificatio

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n Medical Association, Kerala Versus Union Of India 2025 (4) TMI 872 – Kerala High Court ]

Section 7(1A) – Deemed supply

Inserted by Finance Act, 2018 w.e..f. 1.7.2017 where certain activities or transactions constitute a supply in accordance with the provisions of section 7(1), they shall be treated either as supply of goods or supply of services as referred to in Schedule II.

• Following services are treated as deemed supply:

• Barter system.

• Permanent transfer or disposal of business assets.

• Supply of goods/services between related person or distinct person as defined in section 25.

• Principal supply of goods to his agents.

• Agents supplying goods to his principal.

• Import of services either from related person or any establishment outside India.

Section 7(2) – No supply

• Activities or transactions specified in Schedule III shall be treated neither

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upply of service.

• Clarification on GST on license fee charged by the States for grant of Liquor licences to vendors. [ Circular No. 121/40/2019-GST dated 11.10.2019 ]

• Case law

• IN RE: M/S. TIRUPPUR CITY MUNICIPAL CORPORATION (2021 (6) TMI 562 – Authority For Advance Ruling, Tamilnadu)

• The activity (1) Fee from Parks; (2) Market fee-daily; (3) Market fee-weekly; or Fish – Fee weekly  (4) Fees for bays in bus-stand; (7) Slaughter house fees; (8) Fees on pay & use toilets; (9) – Cycle stand, Scooter, auto stand in the bus-stand are activities etc. in relation to functions entrusted under Article 243G and Article 243W of the Constitution and are treated as neither supply of goods nor services when provided by the applicant as 'Public authority' as per Notification No. 14/2017-C.T.(Rate) dated 28th June 2017 as amended time to time.

• Howsoever In respect of activity Locker Rent in the bus-stand

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TDS Mechanism under GST
GST Law and Procedure – GST Law and Procedure [January, 2019]
GST
Chapter Forty Seven
TDS Mechanism under GST
Under the GST regime, section 51 of the CGST Act, 2017 prescribes the authority and procedure for 'Tax Deduction at Source'. The Government may order the following persons (the deductor) to deduct tax at source:
(a) a department or establishment of the Central Government or State Government; or
(b) local authority; or
(c) Governmental agencies; or
(d) such persons or category of persons as may be notified by the Government on the recommendations of the Council.
The tax would be deducted @1% of the payment made to the supplier (the deductee) of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees (excluding the amount of central tax, State tax, Union territory tax, integrated tax and cess indicated in the invoice). Thus, individual supplies may be less than &#

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cated in State B. The supply would be intra-State supply and Central tax and State tax would be levied. In such case, transfer of TDS (Central tax + State tax State B) to the cash ledger of the supplier (Central tax + State tax of State A) would be difficult. So in such cases, TDS would not be deducted.
Thus, when both the supplier as well as place of supply are different from that of recipient, no tax deduction at source would be made.
Registration of TDS deductors: A TDS deductor has to compulsorily register without any threshold limit. The deductor has a privilege of obtaining registration under GST without having required to obtain PAN. He can obtain registration using his Tax Deduction and Collection Account Number (TAN) issued under the Income Tax Act, 1961.
Deposit of TDS with the government: The amount of tax deducted at source should be deposited to the Government account by the deductor by 10th of the succeeding month. The deductor would be liable to pay interest if the ta

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shall not include 18% GST. The TDS, so deducted, shall be deposited in the account of government by 10th of the succeeding month. The TDS so deposited in the government account shall be reflected in the electronic cash ledger of the supplier (i.e. deductee) who would be able to use the same for payment of tax or any other amount. The purpose of TDS is just to enable the government to have a trail of transactions and to monitor and verify the compliances.
TDS Return: The deductor is also required to file a return in Form GSTR-7 within 10 days from the end of the month. If the supplier is unregistered, name of the supplier rather than GSTIN shall be mentioned in the return. The details of tax deducted at source furnished by the deductor in FORM GSTR-7 shall be made available to each of the suppliers in Part C of FORM GSTR-2A electronically through the Common Portal and the said supplier may include the same in FORM GSTR-2. The amounts deducted by the deductor get reflected in the GSTR-2

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TCS Mechanism under GST
GST Law and Procedure – GST Law and Procedure [January, 2019]
GST
Chapter Forty Eight
TCS Mechanism under GST
Tax Collection at Source (TCS) has similarities with TDS, as well as has distinctive features also. TDS  refers to tax which is deducted when recipient of goods or services makes some payments under a contract etc. while TCS refers to tax which is collected by the electronic commerce operator when a supplier supplies some goods or services through its portal and the payment for that supply is collected by the electronic commerce operator. We will discuss the exact nature of TCS with an example. There are many e-Commerce operators [hereinafter referred to as an Operator], like Amazon, Flipkart, Jabong, etc. operating in India. These operators displays / lists on their portal products as well as services which are actually supplied by some other person to the consumer. The goods or services belonging to other suppliers are displayed on the

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lating to TCS.
Registration: The ecommerce operator as well as the supplier supplying goods or services through an operator need to compulsorily register under GST. The threshold limit of ₹ 20 lakhs (10 lakhs for special category states) is not applicable to them. Section 24(x) of the CGST Act, 2017 makes it mandatory for every e-Commerce Operator to get registered under GST. Similarly, section 24(ix) of the CGST Act, 2017 makes it mandatory for every person who supplies goods/services through an Operator to get registered under GST.
Power to collect tax: Section 52 of the CGST Act, 2017 provides for Tax Collection at source, by e-Commerce operator in respect of the taxable supplies made through it by other suppliers, where the consideration in respect of such supplies is collected by him.
TCS Statement: The amount of tax so collected by the operator is required to be deposited by the 10th of the following month, during which such collection is made. The operator is also requi

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, submitted by every operator in the statements will be matched with the details of supplies submitted by all such suppliers in their returns. If there is any discrepancy in the value of supplies, the same would be communicated to both of them. If such discrepancy in value is not rectified within the given time, then such amount would be added to the output tax liability of such suppler.
The supplier will have to pay the differential amount of output tax along with interest.
Notice to the Operator: An officer not below the rank of Deputy Commissioner can issue notice to an Operator asking him to furnish details relating to volume of goods/ services supplied, stock of goods lying in warehouses/ godowns, etc. The Operator is required to furnish such details within 15 working days. In case an Operator fails to furnish the information, besides being liable for penal action under section 122 shall also be liable for penalty up to ₹ 25,000/-
The GST Council in their 22nd meeting hel

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Introduction of Tax Invoice in GST
Tax Invoice, Bill of Supply, Debit Notes, Credit Notes – GST Ready Reckoner
GST
Tax Invoice in GST
Introduction
TAX INVOICE under section 31
(1) A registered person supplying taxable goods shall, before or at the time of,
(a) removal of goods for supply to the recipient, where the supply involves movement of goods; or
(b) delivery of goods or making available thereof to the recipient, in any other case, issue a tax invoice showing the description, quantity and value of goods, the tax charged thereon and such other particulars as may be prescribed.
Provided that the Government may, on the recommendations of the Council, by notification, specify the categories of goods or supplies in respect of which a tax invoice shall be issued, within such time and in such manner as may be prescribed.
(2) A registered person supplying taxable services shall, before or after the provision of service but within a prescribed period, issue a tax invoic

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ed rupees subject to such conditions and in such manner as may be prescribed;
* (c) a registered person supplying exempted goods or services or both or paying tax under the provisions of section 10 shall issue, instead of a tax invoice, a bill of supply containing such particulars and in such manner as may be prescribed:
* Provided that the registered person may not issue a bill of supply if the value of the goods or services or both supplied is less than two hundred rupees subject to such conditions and in such manner as may be prescribed;
* (d) a registered person shall, on receipt of advance payment with respect to any supply of goods or services or both, issue a receipt voucher or any other document, containing such particulars as may be prescribed, evidencing receipt of such payment;
* (e) where, on receipt of advance payment with respect to any supply of goods or services or both the registered person issues a receipt voucher, but subsequently no supply is made and no tax

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all be issued on or before the due date of payment;
(b) where the due date of payment is not ascertainable from the contract, the invoice shall be issued before or at the time when the supplier of service receives the payment;
(c) where the payment is linked to the completion of an event, the invoice shall be issued on or before the date of completion of that event.
(6) In a case where the supply of services ceases under a contract before the completion of the supply, the invoice shall be issued at the time when the supply ceases and such invoice shall be issued to the extent of the supply made before such cessation.
(7) where the goods being sent or taken on approval for sale or return are removed before the supply takes place, the invoice shall be issued before or at the time of supply or six months from the date of removal, whichever is earlier.
Explanation.For the purposes of this section, the expression “tax invoice” shall include any revised invoice issued by the supplier

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n respect of which advance payment is being made.
* Payment voucher is issued by the person making payment under reverse charge at the time of making payment to the supplier.
Contents of tax invoice in case of goods or services [as per rule 46 of CGST Rules]
There is no format prescribed for an invoice, however, Invoice rules makes it mandatory for an invoice to have following fields (only applicable field are to be filled):
* Name, address and GSTIN of the supplier;
* Name, address and GSTIN or UIN, if registered, of the recipient
* A consecutive serial number, in one or multiple series, containing alphabets or numerals or special characters hyphen or dash and slash symbolised as “-” and “/” respectively, and any combination thereof, unique for a financial year;
* Date of its issue;
* Name and address of the recipient and the address of delivery, along with the name of State and its code, if such recipient is un-registered and where the value of taxable supply is fifty t

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he same is different from the place of supply;
* Whether the tax is payable on reverse charge basis; and
* Signature or digital signature of the supplier or his authorized representative
* Quick Reference code, having embedded Invoice Reference Number (IRN) in it, in case invoice has been issued in the manner prescribed under rule (4)48.]
* A declaration as below, that invoice is not required to be issued in the manner specified under rule (4)48, in all cases where an invoice is issued, other than in the manner so specified under the rule 48(4), by the taxpayer having aggregate turnover in any preceding financial year from 2017-18 onwards more than the aggregate turnover as notified under the rule 48(4)-
* “I/We hereby declare that though our aggregate turnover in any preceding financial year from 2017-18 onwards is more than the aggregate turnover notified under rule 48(4), we are not required to prepare an invoice in terms of the provisions of the rule 48(4)
Note: Invoice

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iability in his returns?
Clarification 1: In case GST is paid by the supplier on advances received for a future event which got cancelled subsequently and for which invoice is issued before supply of service, the supplier is required to issue a “credit note” in terms of section 34 of the CGST Act. He shall declare the details of such credit notes in the return for the month during which such credit note has been issued. The tax liability shall be adjusted in the return subject to conditions of section 34 of the CGST Act. There is no need to file a separate refund claim. However, in cases where there is no output liability against which a credit note can be adjusted, registered persons may proceed to file a claim under “Excess payment of tax, if any” through Form GST RFD-01.
Issue 2: An advance is received by a supplier for a service contract which got cancelled subsequently. The supplier has issued receipt voucher and paid the GST on such advance received. Whether he can claim refun

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Furnishing the details of outward supplies other than QRMP [Section 37(1)]
Returns – GST Ready Reckoner
GST
Furnishing the details of outward supplies other than QRMP [ Section 37(1) ]
Introduction
The basic features of the return mechanism in GST includes electronic filing of returns, uploading of invoice level information, auto-population of information relating to input tax credit from returns of supplier to that of recipient, invoice level information matching and auto-reversal of input tax credit in case of mismatch. The returns mechanism is designed to assist the taxpayer to file returns and avail ITC.
Furnishing details of outward supplies [ section 37(1) of CGST Act & Rule 59(1) ]
* Person Liable to furnish GSTR-1: – Every registered person, other than
* an Input Service Distributor,
* a non-resident taxable person and
* a person paying tax under the provisions of section 10 or
* TDS deductor section 51 or
* TCS collecting  secti

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-3B for the said tax period, at his own option, amend or furnish additional details of outward supplies of goods or services or both in FORM GSTR-1A for the said tax period electronically through the common portal, either directly or through a Facilitation Centre as may be notified by the Commissioner. [ First proviso of rule 59(1) Inserted vide Notification No. 12/2024 – Central Tax dated 10-07-2024, ]
Extension of Due date: –
* The Commissioner may, for reasons to be recorded in writing, by notification, extend the time limit for furnishing such details for such class of taxable persons as may be specified therein.
* Any extension of time limit notified by the Commissioner of State tax or Commissioner of Union territory tax shall be deemed to be notified by the Commissioner.
Due dates of submission of GSTR-1
* The details of outward supplies of goods or services or both effected during a tax period on or before the 10th day (now extended upto 11th days) o

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jurisdictional Commissioner may, for the reasons to be recorded in writing, extend the time limit for filing such outward supply statement for the particular class of taxable persons.
* The supplier of the goods or services shall either accept or reject the modification, addition or deletion of the invoice data by the:
* Recipient in Form GSTR-2 under section 38, 
* Input Service Distributors in Form 6 and
* Composition dealer in Form GSTR-4.
* Corrections done in GSTR-2, 4 or 6 will be populated in GSTR 1A and supplier of goods and or services shall either accept or reject the details on or before the 17th day but not before the 15th day of the succeeding month and GSTR 1 shall stand amended accordingly.
* The Outward Supply Statement ( Sale) (GSTR 1 Return) has following main sections.
Rule 67A Manner of furnishing of return or details of outward supplies by short messaging service facility
* A registered person who is required to furnish a Nil return under

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ies with invoice value more than Rs. 1 lakh rupees made to the unregistered persons; [ Inserted vide Notification No. 12/2024 – Central Tax dated 10-07-2024 ]
* (b) consolidated details of all –
* (i) intra-State supplies made to unregistered persons for each rate of tax; and
* (ii) Upto 31st July 2024, State wise inter-State supplies with invoice value upto 2.5 lakh rupees made to unregistered persons for each rate of tax;
* (iii) From 1st August 2024, State wise inter-State supplies with invoice value upto Rs. 1 lakh rupees made to unregistered persons for each rate of tax; [ Inserted vide Notification No. 12/2024 – Central Tax dated 10-07-2024 ]
* (c) debit and credit notes, if any, issued during the month for invoices issued previously.
As per rule 59(4A) of CGST Rules [ Inserted vide Notification No. 12/2024 – Central Tax dated 10-07-2024 ]
* The additional details or the amendments of the

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l not be allowed to furnish the details of outward supplies of goods or services or both in FORM GSTR-1, if he has not furnished the return in FORM GSTR-3B for the preceding month.
*
A registered person, as per the rule 88C(1) in respect of a tax period to whom an intimation the intimated of the difference in Part A of FORM GST DRC-01B, electronically on the common portal, shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1 or using the IFF for a subsequent tax period, unless he has either deposited the amount specified in the said intimation or has furnished a reply explaining the reasons for any amount remaining unpaid, as required under the of rule 88C(2).
*
A registered person, to whom an intimation has been issued on the common portal under the provisions of rule 88D(1) in respect of a tax period or periods, shall not be allowed to furnish the details of outward

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ion to this rule 
* a) Casual taxable person
* b) Cancellation of GSTN of normal taxpayer
* a taxpayer who has applied for cancellation of registration will be allowed to file GSTR-1 after confirming receipt of the application.
* b) Necessary to file GSTR-1, even if no business activity in any tax period.
* Filling of GSTR-1 is mandatory for all normal and casual taxpayer even if there is no business activity in any particular period. for such period a nil GSTR-1 is required to be filed.
* A Nil GSTR-1 can be filed through an SMS using the registered mobile number of the taxpayer. GSTR-1 through SMS is verified by registered number based OTP facility.
Important Notification & Circular
* Mandatory furnishing of correct and proper information of inter-State supplies and amount of ineligible/blocked Input Tax Credit and reversal thereof in return in FORM GSTR-3B and statement in FORM GSTR-1. [ See Circular No. 170/02/2022-GST dated 06.07.2022 ]
* Furni

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Registration under GST Law – General
Registration – GST Ready Reckoner
GST
Registration under GST Law
Introduction
In any tax system registration is the most fundamental requirement for identification of tax payers ensuring tax compliance in the economy. Registration of any business entity under the GST Law implies obtaining a unique number from the concerned tax authorities for the purpose of collecting tax on behalf of the government and to avail Input tax credit for the taxes on his inward supplies. Without registration, a person can neither collect tax from his customers nor claim any input tax credit of tax paid by him.
As per article 279A(4) of the Constitution of India, The GST Council shall make recommendation to the uni

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Refunds under GST – Introduction
GST Law and Procedure – GST Law and Procedure [January, 2019]
GST
Chapter Thirty Four
Refunds under GST
INTRODUCTION
Timely refund mechanism is essential in tax administration, as it facilitates trade through release of blocked funds for working capital, expansion and modernization of existing business.
The provisions pertaining to refund contained in the GST law aim to streamline and standardise the refund procedures under GST regime. Thus, under the GST regime there will be a standardised form for making any claim for refunds. The claim and sanctioning procedure will be completely online and time bound which is a marked departure from the existing time consuming and cumbersome procedure.
It has been decided, however, that since the online refund module is not available immediately, the refund process would be handled manually and Circular No. 17/17/2017GST dated 15.11.2017 Superseded Vide Circular No. 125/44/2019-GST dated 18-1

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of pre-deposit
9. Excess payment due to mistake
10. Refunds to International tourists of GST paid on goods in India and carried abroad at the time of their departure from India
11. Refund on account of issuance of refund vouchers for taxes paid on advances against which goods or services have not been supplied
12. Refund of CGST & SGST paid by treating the supply as intra-State supply which is subsequently held as inter-State supply and vice versa.
Thus practically every situation is covered. The GST law requires that every claim for refund is to be filed within 2 years from the relevant date.
CREDIT NOTES
Further, Section 34 of the CGST Act, 2017 provides for issuance of credit notes for post supply discounts or if goods are returned back within a stipulated time. When such credit notes are issued, obviously it would call for reduction in output liability of the supplier. Hence, the taxes paid initially on the supply would be higher than what is actually payable. In such a scen

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r
(b) supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit.
On account of zero rating of supplies, the supplier will be entitled to claim input tax credit in respect of goods or services or both used for such supplies even though they might be non-taxable or even exempt supplies. Every person making claim of refund on account of zero rated supplies has two options. Either he can export under Bond/ LUT and claim refund of accumulated Input Tax Credit or he may export on payment of integrated tax and claim refund thereof as per the provisions of Section 54 of CGST Act, 2017. Thus, the GST law allows the flexibility to the exporter (which will include the supplier making supplies to SEZ) to claim refund upfront as integrated tax (by making supplies on payment of tax using ITC) or export without payment of tax by executing a Bond/LUT and claim refund of related ITC of taxes paid on inputs and input services used in making zero rated su

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chment.
CLAIM BY A PERSON WHO HAS BORNE THE INCIDENCE OF TAX
Any tax collected by the taxable person more than the tax due on such supplies must be credited to the Government account. The law makes explicit provision for the person who has borne the incidence of tax to file refund claim in accordance with the provisions of Section 54 of the CGST Act, 2017.
REFUNDS TO CASUAL/NON-RESIDENT TAXABLE PERSONS
A casual/Non-resident taxable person has to pay tax in advance at the time of registration. Refund may become due to such persons at the end of the registration period because the tax paid in advance may be more than the actual tax liability on the supplies made by them during the period of validity of registration period. The law envisages refund to such categories of taxable persons also. But the amount of excess advance tax shall not be refunded unless such person has filed all the returns due during the time their registration was effective. It is only after such compliance that

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try seek refund of integrated tax paid by them. The term, “tourist” has been defined and refers to any person who is not normally resident in India and who enters India for a stay of not more than 6 months for legitimate non-immigrant purposes.
UNJUST ENRICHMENT
Talking about unjust enrichment, a presumption is always drawn that the businessman will shift the incidence of tax to the final consumer. This is because GST is an indirect tax whose incidence is to be borne by the consumer. It is for this reason that every claim of refund (barring specified exceptions) need to pass the test of unjust enrichment. And every such claim if sanctioned is first transferred to the Consumer Welfare Fund. The GST law makes this test inapplicable in case of refund of accumulated ITC, refund on account of exports, refund of payment of wrong tax (integrated tax instead of central tax plus state tax and vice versa), refund of tax paid on a supply which is not provided or which refund voucher is issued o

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cknowledgement shall be made available to the applicant through the common portal electronically. However, till the time the refund module on the GSTN portal is operationalised, facility for manual filing of refund claims has been provided. The claim for refund of amount lying in the credit balance of the cash ledger can be made in the monthly returns also. The proper officer has to convey deficiencies if any in the refund claimed in such cases the claim will be sent back to the applicant along with the notified deficiencies and the applicant can file the refund claim again after making goods the deficiencies. The claim, if in order, has to be sanctioned within a period of 60 days from the date of receipt of the application of claim complete in all respect. If this mandatory period is exceeded, interest at the rate of 6% (9% in case of refund made on order passed by an adjudicating authority or Appellate Tribunal or court which has attained finality) will become payable along with refu

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at they have not availed input tax credit of the tax paid by the supplier. If the claim is for refund of accumulated ITC, only a statement containing invoice details as prescribed in the refund chapter of the CGST Rules, 2017 need to be given. In case of claim of refund on account of any order or judgment of appellate authority or court, the reference number of the order giving rise to refund should also be given. For crossing the bar of unjust enrichment, if the refund claim is less than ₹ 2 Lakhs, then a self-declaration by the applicant to the effect that the incidence of tax has not been passed to any other person will suffice to process the refund claim. For refund claims exceeding ₹ 2 Lakhs, a certificate from a Chartered Accountant/Cost Accountant will have to be given.
COMPLIANCE WITH NATURAL JUSTICE
In case the claim is sought to be rejected by the proper officer, a notice has to be given online to the applicant stating the ground on which the refund is sought to

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ce the system of filing of return in FORM GSTR-3 has not started so far, the refund of integrated tax on export of goods would be granted based on FORM GSTR-1 and FORM GSTR-3B for the time being. The details of the relevant export invoices contained in FORM GSTR-1 (or Table 6A thereof) shall be transmitted electronically by the common portal to the system designated by the Customs and the said system shall electronically transmit to the common portal, a confirmation that the goods covered by the said invoices have been exported out of India.
Upon receipt of the information regarding the furnishing of a valid return in FORM GSTR-3 or FORM GSTR-3B, as the case may be and FORM GSTR-1 from the common portal, the system designated by the Customs shall process the claim for refund and an amount equal to the integrated tax paid in respect of each shipping bill or bill of export shall be electronically credited to the bank account of the applicant mentioned in his registration particulars and

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ich the supplier has availed the benefit of Notification no. 48/2017-Central Tax dated 18.10.2017 or Notification no. 40/2017- Central Tax(Rate) dated 23.10.2017 or Notification No. 41/2017-Integrated Tax(Rate) dated 23.10.2017.
Manual filing of Refund Claims
Rule 97A has been inserted in the CGST Rules, 2017 vide Notification no. 55/2017-Central Tax dated 15.11.2017 to enable manual processing of refund claims. The said rule provides that any reference to electronic filing of an application, intimation, reply, declaration, statement or electronic issuance of a notice, order or certificate on the common portal shall, in respect of that process or procedure, include manual filing of the said application, intimation, reply, declaration, statement or issuance of the said notice, order or certificate in such Forms as appended to CGST Rules, 2017.
Circular no. 17/17/2017-GST dated 15.11.2017 and Circular no. 24/24/2017-GST dated 21.12.2017 has been issued clarifying the procedure for fil

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r the details in statement 2 or 4 of Annexure to FORM GST RFD – 01), within the time stipulated for filing of such refund under the CGST Act, 2017.
Procedure for filing refund claims of unutilised ITC on account of zero rated supply
The application for refund of unutilized input tax credit on inputs or input services used in making such zero-rated supplies shall be filed in FORM GST RFD-01A on the common portal and the amount claimed as refund shall get debited in accordance with rule 86(3) of the CGST Rules, 2017 from the amount in the electronic credit ledger to the extent of the claim. The common portal shall generate a proof of debit (ARN- Acknowledgement Receipt Number) which would be mentioned in the FORM GST RFD-01A submitted manually, along with the print out of FORM GST RFD-01A to the jurisdictional proper officer, and with all necessary documentary evidences as applicable (as per details in statement 3 or 5 of Annexure to FORM GST RFD-01), within the time stipulated for fil

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ies/Records in respect of manual refund claims
The Circular no.17/17/2017-GST dated 15.11.2017 read with Circular no. 24/24/2017-GST dated 21.12.2017 lays down the modalities for maintenance of records in respect of such manual refund claims, which needs to be adhered to scrupulously. The time limits laid down in the Act need to be followed and the prescribed forms need to be generated manually for processing of such refund claims
Manual filing and processing of refund claims on account of inverted duty structure, deemed exports and excess balance in electronic cash ledger
Due to the non-availability of the refund module on the common portal, it has been decided by the competent authority that the applications/documents/forms pertaining to refund claims on account of inverted duty structure (including supplies in terms of notification Nos. 40/2017-Central Tax (Rate) and 41/2017-Integrated Tax (Rate) both dated 23.10.2017), deemed exports and excess balance in electronic cash ledger

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the registered persons having aggregate turnover of up to ₹ 1.5 crore in the preceding financial year or the current financial year and opting to file FORM GSTR-1 on quarterly basis (Notification no. 71/2017-Central Tax dated 29.12.2017 refers) shall apply for refund on a quarterly basis. Further, it is stated that the refund claim for a tax period may be filed only after filing the details in FORM GSTR-1 for the said tax period. It is also to be ensured that a valid return in FORM GSTR3B has been filed for the last tax period before the one in which the refund application is being filed. Since the date of furnishing of FORM GSTR 1 from July, 2017 onwards has been extended while the dates of furnishing of FORM GSTR 2 and FORM GSTR 3 for such period are yet to be notified, it has been decided by the competent authority to sanction refund of provisionally accepted input tax credit at this juncture. However, the registered persons applying for refund is required to give an undertak

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services used in making such exports shall be granted.
Manual Claims in respect of Deemed Exports
The Government has issued notification No. 48/2017-Central Tax dated 18.10.2017 under section 147 of the CGST Act, 2017 wherein certain supplies of goods have been notified as deemed export. Further, the third proviso to rule 89(1) of the CGST Rules, 2017 allows the recipient or the supplier to apply for refund of tax paid on such deemed export supplies. In case such refund is sought by the supplier of deemed export supplies, the documentary evidences as specified in notification No. 49/2017-Central Tax dated 18.10.2017 are also required to be furnished which includes an undertaking by the recipient of deemed export supplies that he shall not claim the refund in respect of such supplies and that no input tax credit on such supplies has been availed of by him.
The undertaking from the recipient should be submitted manually by the supplier along with his application for refund claim. Simi

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inputs or input services used in making zero-rated supply of goods or services or both, shall be granted in case of supplies received on which the supplier has availed the benefit of Notification no. 48/2017-Central Tax dated 18.10.2017.
Refund amount to be sanctioned by respective authorities
Para 2.5 of Circular No. 17/17/2017-GST dated 15.11.2017 may be referred to in order to ascertain the jurisdictional proper officer to whom the manual application for refund is to be submitted. Where any amount claimed as refund is rejected under rule 92 of the CGST Rules, 2017, either fully or partly, the amount debited, to the extent of rejection, shall be re-credited to the electronic credit ledger by an order made in FORM GST RFD-1B until the FORM GST PMT-03 is available on the common portal. Further, the payment of the sanctioned refund amount shall be made only by the respective tax authority of the Central or State Government. Thus, the refund order issued either by the Central tax autho

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nally by the Central tax authority and a sanction order is passed in accordance with the provisions of rule 91(2) of the CGST Rules, 2017 the Central tax authority shall communicate the same, through the nodal officer, to the State tax authority for making payment of the sanctioned refund amount in relation to State tax and vice versa. The aforesaid communication shall primarily be made through e-mail attaching the scanned copies of the sanction order [FORM GST RFD-04 and FORM GST RFD-06], the application for refund in FORM GST RFD-01A and the Acknowledgement Receipt Number (ARN). Accordingly, the jurisdictional proper officer of Central or State Tax, as the case may be, shall issue FORM GST RFD-05 and send it to the DDO for onward transmission for release of payment. After release of payment by the respective PAO to the applicant's bank account, the nodal officer of Central tax and State tax authority shall inform each other. The manner of communication as referred earlier shall be fo

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Recovery of Tax
GST Law and Procedure – GST Law and Procedure [January, 2019]
GST
Chapter Fifty One
Recovery of Tax
1. All tax administration occasionally comes across a situation where the tax dues are not paid correctly by the tax payers, most of the times inadvertently and sometimes deliberately. To minimise the inadvertent short payment of taxes the concept of 'Matching' of details of 'Outward supplies' of supplier with the details of 'Inward supplies' of recipient has been introduced in the GST Act. Moreover, the self-assessed tax has to be paid by due date prescribed under the GST Act and in case of any failure to pay the same by due date the Input Tax Credit will not be available to his customers and also the tax payer will not be able to file any return for further period. Effectually these provisions works as a Self-Policing system and takes care of any mis-match in the payment of taxes. However, despite these provisions there may arise some instances where the tax

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the tax dues along with interest, are paid within specified time limit/incidence. The Table below gives a comprehensive chart of provisions for voluntary compliance:-
Sr.No.
Action by Tax Payer
Amount of Penalty payable-Normal Cases
Amount of Penalty payable-Fraud Cases
Remarks
1.
Tax amount, along with interest, aid before issuance of Notice.
No Penalty and no Notice shall be issued.
15% of the Tax amount and no
Notice shall be issued.
The penalty shall also be not chargeable in cases Where the self-assessed tax or any amount collected as tax is paid (with interest) within 30 days from the due date of payment.
2.
Tax amount, along with interest, paid within 30 days of issuance of Notice.
No Penalty. All proceedings deemed to be concluded.
25% of the Tax amount. All proceedings deemed to be concluded.
3.
Tax amount, along with interest, paid within 30 days of communication of Order.
10% of the Tax amount or ₹ 10,000/-, whichever is higher
50% of the Tax amount.

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hat all proceedings in respect of the said Notice shall be deemed to be concluded. If it becomes inevitable to issue a show cause notice and thereafter pass an Order, the GST Act ensures a timely completion of all these procedures by providing a fixed timeline for issuance of notice and order-as follows:-
Sr. No.
Nature of Case
Time for issuance of Notice
Time for issuance of Order
1.
Normal Cases
Within 2 years and 9 months from the due date of filing of Annual Return for the Financial Year to which the demand pertains or from date of erroneous refund.
Within 3 years from the due date of filing of Annual Return for the Financial
Year to which the demand pertains or from date of erroneous refund.
2.
Fraud Cases
Within 4 years and 6 months from the due date of filing of Annual Return for the Financial Year to which the demand pertains or from date of erroneous refund.
Within 5 years from the due date of filing of Annual Return for the Financial Year to which the demand pert

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id, with interest, within 30 days from the due date of payment.
4. All these provisions make it clear that there are sufficient opportunities to make amend and discharge the tax liability with nil or nominal penalties. However, there are disincentives also for the person who fails to utilise these beneficial provisions. Besides that, the law also provides that the Board may fix certain monetary limits for not filing an Appeal against any order. It means if any order is passed in favour of the assessee the department will not pursue the case further by filing Appeals if the amount involved is less than the specified limit. At present, under the existing laws, the monetary limits for not filing an appeal to various judicial forums are follows: –
i. Tribunal- ₹ 10 Lakhs
ii. High Courts- ₹ 20 Lakhs and
iii. Supreme Court- ₹ 25 Lakhs
5. The recovery proceedings are final step towards realization of any tax or amount, which has been confirmed as payable after following

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ptions for recovery of government dues includes deduction of money from any amount payable to such tax payer, by detaining and selling any goods, by directing any other person from whom the money is due to such person, attaching any moveable (Including Negotiable Instruments and Shares) and/or immovable property belonging to the defaulter etc.
iii. However, considering various business aspects the provisions for payment of all such amounts, other than self-assessed tax, in instalments have also been made in the Act. A person can avail this benefit of payment in instalments, by making application to the Commissioner by specifying reasons for such request. On receipt of such application the Commissioner may allow payment of amount in instalments, subject to maximum 24 monthly instalments and on payment of applicable interest.
Here it may be noted that if there is default in payment of any one instalment then the whole outstanding balance shall become due and payable immediately.
Ma

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Value of supply in case of Pure Agent Concept in GST [Rule 33 of CGST Rules]
Valuation / Value of Supply – GST Ready Reckoner
GST
Determination of value of supply in case of Pure Agent Concept in (GST Rule 33 Of CGST Rules)
Introduction
* The GST Act defines an Agent as a person including a factor, broker, commission agent, arhatia, del credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another.
* So, who is a pure agent and why is a pure agent relevant under GST?
* Broadly, speaking a pure agent is one who while making a supply to the recipient, also receives and incurs expenditure on some other supply on behalf of the recipient and claims reimbursement (as actual, without adding it to the value of his own supply) for such supplies from the recipient of the main supply . While the relationship between them (provider of service and recipient of se

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act is that, the person who provides any service as a pure agent receives only the actual amount for the services provided. Coming back to our example of Importer and Customs Broker, the agreement provides reimbursement of transport services utilised at actuals.
* In this case, let's say the value of transport service was ₹ 10,000/-. If the Customs Broker charges any amount more than ₹ 10,000/-, then he will not be considered as a pure agent for the services of transport and the value of transport service will be included in the value of his Customs Broker service.
EXCLUSION FROM VALUE
Expenditure incurred as pure agent becomes relevant, when it comes to determining the value of a supply for levy of GST (Rule 33 of CGST Rule). The preceding para explains who will be considered as a pure agent. The valuation rules provide that expenditure incurred as pure agent, will be excluded from the value of supply, and thus also from aggregate turnover. However, such exc

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uded in the value of supply under GST.
The following illustration will make the concept clearer.
* Corporate services firm A is engaged to handle the legal work pertaining to the incorporation of Company B.
* Other than its service fees, A also recovers from B, registration fee and approval fee for the name of the company paid to Registrar of the Companies.
* The fees charged by the Registrar of the companies, registration and approval of the name are compulsorily levied on B.
* A is merely acting as a pure agent in the payment of those fees.
* Therefore, A's recovery of such expenses is a reimbursement and not part of the value of supply made by A to B.
Important Case Law : 
1. M/S. SREE SUBHA SALES (2022 (11) TMI 259 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA)
* Reimbursement of tree cut compensation amount paid to farmers and land owners during the course of execution of work is not chargeable to GST as the Applicant qualifies to be a Pure Agent a

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available on this matter.
*
M/S. 2COMS Foundation – 2022 (6) TMI 1285 – AAR, Maharashtra.
*
M/S. Cadmaxx Solutions Education Trust – 2019 (10) TMI 1093 – AAR, Karnataka.
*
Premier Vigilance & Security Pvt. Ltd. – 2018 (11) TMI 337 – AAR, West Bengal
*
Toll charges paid are not to be excluded from the value of supply under Rule 33. GST shall, therefore, be payable at the applicable rate on the entire value of the supply, including toll charges paid.
*
The Applicant is not acting as a 'pure agent' of the Bank while paying toll charges, which are the cost of the service provided to the Banks so that his vehicles can access roads/bridges to provide security services to the recipient.
Important Notification & clarification 
1. Clarification on issue of GST on Airport levies Circular No. 115/34/2019-GST dated 11th October 2019
Issue:-  clarification on issues relating to GST on airport levies and to clarify that airport levies do not form par

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provided by the airlines to the airport operator (AAI, DAIL, MAIL etc) and airlines shall be liable to pay GST on the same under forward charge. ITC of the same will be available with the airport operator.
2. clarified in erstwhile Service Tax regime by CBEC vide Circular No. 175/01/2014 – ST, Dated: January 10, 2014;
Issue:- If a RWA provides certain services such as payment of electricity or water bill issued by third person, in the name of its members, acting as a 'pure agent' of its members, is exclusion from value of taxable service available for the purposes of exemptions provided in Notification 33/2012-ST or 25/2012-ST ?
Clarification:- In Rule 5(2) of the Service Tax (Determination of Value) Rules, 2006, it is provided that expenditure or costs incurred by a service provider as a pure agent of the recipient of service shall be excluded from the value of taxable service, subject to the conditions specified in the Rule.
For illustration, where the payment for an el

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thorises B, to incur expenditure on his behalf for procuring the services of a transporter and agrees to reimburse B for the transportation cost at actuals.
* In the given illustration, B is providing Customs Brokers service to A, which would be on a principal to principal basis. The ancillary service of transportation is procured by B on behalf of A as a pure agent and expenses incurred by B on transportation should not form part of value of Customs Broker service provided by B to A. This, in sum and substance is the relevance of the pure agent concept in GST.
2. RPM Ltd., registered in Mumbai (Maharashtra), is a manufacturer of paint. It imports a paint mixer machine from Dubai. RPM Ltd enters into a contract with Mudra Logistics, a licensed customs broker with its office at Ahmedabad (Gujarat), to meet all the legal formalities in getting the said machine cleared from the customs station.
Apart from this, RPM Ltd authorises Mudra Logistics to incur, on its behalf,

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10
Telephone expenses
2,000
Compute the value of supply made by Mudra Logistics with the help of given information.
Would your answer be different if Mudra Logistics has charged Rs.13,00,000 as a lump sum consideration for getting the imported machine cleared from the customs station and bringing the same to the warehouse of RPM Ltd.?
In this case
* Mudra Logistics has entered into a contractual agreement with recipient of supply, RMP Pvt.  Ltd.., to incur, on behalf of such recipient, the expenses mentioned in S. No. (2) to (7) incurred in relation to clearance of the imported machine from the customs station and bringing the same to the warehouse of the recipient. Further, Mudra Logistics does not hold any title to said services and does not use them for his own interest.
* Lastly, Mudra Logistics receives only the actual amount incurred to procure such services in addition to agency charges. Thus, Mudra Logistics qualifies as a pure agent.
* Further, rule 33

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Online Information Data Base Access and Retrieval (OIDAR) Services in GST
GST Law and Procedure – GST Law and Procedure [January, 2019]
GST
Chapter Forty Two
Online Information Data Base Access and Retrieval (OIDAR) Services in GST
WHAT IS OIDAR?
Online Information Database Access and Retrieval services (hereinafter referred to as OIDAR) is a category of services provided through the medium of internet and received by the recipient online without having any physical interface with the supplier of such services. E.g. downloading of an e-book online for a payment would amount to receipt of OIDAR services by the consumer downloading the e-book and making payment.
The IGST Act defines OIDAR to mean services whose delivery is mediated by information technology over the internet or an electronic network and the nature of which renders their supply essentially automated and involving minimal human intervention and impossible to ensure in the absence of information technology and

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hould the services provided by them be left out of the tax net. At the same time, since the service provider is located overseas and may not be having a presence in India, the compliance Online Information Data Base Access and Retrieval Services in GST verification mechanism become difficult. It is in such circumstances, that the government has plans to come out with a simplified scheme of registration for such service providers located outside.
HOW WOULD OIDARSERVICES BE TAXABLE UNDER GST?
For any supply to be taxable under GST, the place of supply in respect of the subject supply should be in India. In case, both the supplier of OIDAR Service and the recipient of such service is in India, the place of supply would be the location of the recipient of service i.e. it would be governed by the default place of supply rules.
What happens in cases where the supplier of service is located outside India and the recipient is located in India. In such cases also the place of supply would be

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vices by any person located in a non-taxable territory and received by a non-taxable online recipient, the supplier of services located in a non-taxable territory shall be the person liable for paying integrated tax on such supply of services.
Now if an intermediary located outside India arranges or facilitates supply of such service to a non-taxable online recipient in India, the intermediary would be treated as the supplier of the said service, except when the intermediary satisfies the following conditions.
(a) the invoice or customer's bill or receipt issued or made available by such intermediary taking part in the supply clearly identifies the service in question and its supplier in non-taxable territory;
(b) the intermediary involved in the supply does not authorise the charge to the customer or take part in its charge which is that the intermediary neither collects or processes payment in any manner nor is responsible for the payment between the nontaxable online recipient an

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supplier does not have a physical presence or does not have a representative for any purpose in the taxable territory, he may appoint a person in the taxable territory for the purpose of paying integrated tax and such person shall be liable for payment of such tax.
Who is a Non-Taxable Online Recipient?
“non-taxable online recipient” means any Government, local authority, governmental authority, an individual or any other person not registered and receiving online information and database access or retrieval services in relation to any purpose other than commerce, industry or any other business or profession, located in taxable territory.
The expression “governmental authority” means an authority or a board or any other body,
i) set up by an Act of Parliament or a State Legislature; or
ii) established by any Government,
with ninety per cent or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243W of the Constitu

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hotographs, reports, medical results
Yes
No
No
Indicative List of OIDAR Services
1. Website supply, web-hosting, distance maintenance of programmes and equipment;
(a) Website hosting and webpage hosting;
(b) automated, online and distance maintenance of programmes;
(c) remote systems administration;
(d) online data warehousing where specific data is stored and retrieved electronically;
(e) online supply of on-demand disc space.
2. Supply of software and updating thereof;
(a) Accessing or downloading software (including procurement/accountancy programmes and antivirus software) plus updates;
(b) software to block banner adverts showing, otherwise known as Banner blockers;
(c) download drivers, such as software that interfaces computers with peripheral equipment (such as printers);
(d) online automated installation of filters on websites;
(e) online automated installation of firewalls.
3. Supply of images, text and information and making available of databases;
(a) Acce

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, ringtones, or other sounds;
(c) accessing or downloading of films;
(d) downloading of games on to computers and mobile phones;
(e) accessing automated online games which are dependent on the Internet, or other similar electronic networks, where players are geographically remote from one another.
(5) Supply of distance teaching.
(a) Automated distance teaching dependent on the Internet or similar electronic network to function and the supply of which requires limited or no human intervention, including virtual classrooms, except where the Internet or similar electronic network is used as a tool simply for communication between the teacher and student;
(b) workbooks completed by pupils online and marked automatically, without human intervention, The place of supply of online information and database access or retrieval services shall be the location of the recipient of services.
Filing of Returns by a person providing OIDAR service to a non-taxable online recipient in India.
In

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A person dealing in second hand goods ( Margin Scheme) [Rule 32(5) of CGST Rules]
Valuation / Value of Supply – GST Ready Reckoner
GST
Margin Scheme in GST
Normally GST is charged on the transaction value of the goods. However, in respect of second hand goods, a person dealing is such goods may be allowed to pay tax on the margin i.e. the difference between the value at which the goods are supplied and the price at which the goods are purchased. If there is no margin, no GST is charged for such supply. The purpose of the scheme is to avoid double taxation as the goods, having once borne the incidence of tax, re-enter the supply and the economic supply chain.
Valuation of Second Hand Goods [Rule 32(5) of the GST Rules, read along with Notification No.10/2017-Central Tax (Rate), date 28 Jun 2017]
* The taxable value of supply of second hand goods i.e. used goods as such or after such minor processing which does not change the nature of goods shall be the difference between t

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in second hand goods and paying tax under margin scheme is not liable to pay tax on reverse charge basis on procurement of such goods from unregistered persons.
* Example :- Mr. Ramesh sells its old car to Sai Motors, who is dealing in old cars for Rs. 4.00 lakhs. Sai motors resells it for Rs. 4.70 Lakhs to Mr. B. value of supply in this case would be 0.70 lakhs . Further, XYZ is not required to pay tax on reverse charge on purchase of car from unregistered Mr. Ramesh, since the activity is exempt from GST.
Value of supply of goods repossessed from a defaulting borrower.
* If the defaulting borrower is not a registered person, the purchase value will be purchase price in the hands of such borrower reduced by 5% points for every quarter or part thereof, between the date of purchase and date of disposal by the person making such repossession.
* In other word value of supply = Selling price – (purchase price of defaulting borrower – 5% per quarter or part thereof From the date of p

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uti Celerio Car of March, 2022 make (Original price ₹ 5 lakh) for ₹ 3 lakhs from an unregistered person and sells the same after minor furbishing( repair cost 20,000/-) in July, 2022 for ₹ 3,50,000/-. The company does not avail any ITC.
what will be value of supply if car sold after minor furbishing ( repair cost 20,000/-) in July, 2022 for ₹ 2,50,000/-?
In this case
* The value of supply of services for GST purpose shall be ₹ 50000/-, i.e. (3,50,000 – 3,00,000) the difference between the selling and the purchase price of the company.
* The value of supply of services for GST purpose shall be ₹ NIL, i.e. (3,00,000 – 2,50,000) the difference between the selling and the purchase price of the company.
In case any other value is added by way of repair, refurbishing, reconditioning etc., the same shall also be added to the value of goods and be part of the margin.
If margin scheme is opted for a transaction of second hand goods, the person selling

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Job Work under GST
GST Law and Procedure – GST Law and Procedure [January, 2019]
GST
Chapter Twenty Seven
Job Work under GST
Introduction
Job-work sector constitutes a significant industry in Indian economy. It includes outsourced activities that may or may not culminate into manufacture. The term Job-work itself explains the meaning. It is processing of goods supplied by the principal. The concept of job work already exists in Central Excise, wherein a principal manufacturer can send inputs or semi-finished goods to a job worker for further processing. Many facilities, procedural concessions have been given to the job workers as well as the principal supplier who sends goods for job work.The whole idea is to make principal responsible for meeting compliances on behalf of the job-worker on the goods processed by him (job-worker), considering the fact that typically the job-workers are small persons who are unable to comply with the discrete provisions of the law.
The GST A

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her job worker and after completion of job work bring back such goods without payment of tax. The principal is not required to reverse the ITC availed on inputs or capital goods dispatched to job-worker.
b) Principal can send inputs or capital goods directly to the job worker without bringing them to his premises, still the principal can avail the credit of tax paid on such inputs or capital goods.
c) However, inputs and/or capital goods sent to a job worker are required to be returned to the principal within 1 year and 3 years, respectively, from the date of sending such goods to the job worker.
d) After processing of goods, the job-worker may clear the goods to-
(i) Another job-worker for further processing;
(ii) Dispatch the goods to any of the place of business of the principal without payment of tax;
(iii) Remove the goods on payment of tax within India or without payment of tax for export outside India on fulfilment of conditions.
The facility of supply of goods by prin

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n the details specified in rule 10 of the Invoice Rules.
The responsibility for keeping proper accounts for the inputs or capital goods shall lie with the principal.
Input Tax credit on goods supplied to job-worker
Section 19 of the CGST Act, 2017 provides that the principal (a person supplying taxable goods to the job-worker) shall be entitled to take the credit of input tax paid on inputs sent to the job- worker for the job work. Further, the proviso also provides that the principal can take the credit even when the goods have been directly supplied to the job-worker without bringing into the premise of the principal. The principal need not wait till the inputs are first brought to his place of business.
Time Limits for return of processed goods
As per section 19 of the CGST Act, 2017, inputs and capital goods after processing shall be returned back to principal within one year or three years respectively of their being sent out. Further, the provision of return of goods is not

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GST on GTA Service
Query (Issue) Started By: – saket s Dated:- 9-8-2017 Last Reply Date:- 10-8-2017 Goods and Services Tax – GST
Got 4 Replies
GST
Hi,
Subsequent to decisions of 20th meeting of GST Council how much GST freight forwarder will charge and whether, as a service recipient, can we take credit of GST.
Thanks
Saket
Reply By KIRTIKUMAR PUROHIT:
The Reply:
12% with Input Tax Credit & 5% without ITC
Reply By HimansuSekhar Sha:
The Reply:
Let the notif. Is notified.
Re

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Integrated Goods and Services Tax Act
GST Law and Procedure – GST Law and Procedure [January, 2019]
GST
Chapter Twenty One
Integrated Goods and Services Tax Act
The introduction of Goods and Services Tax (GST) is a significant reform in the field of indirect taxes in our country. Multiple taxes levied and collected by the Centre and states would be replaced by one tax called Goods and Services Tax (GST). GST is a multi-stage value added tax on consumption of goods or services or both.
2. A “dual GST” model has been adopted in view of the federal structure of our country. Centre and States will simultaneously levy GST on every supply of goods or services or both which takes place within a State or Union territory. Thus, there shall be two components of GST as under: –
i. Central tax (CGST):
(levied & collected under the authority of CGST Act, 2017 passed by the Parliament)
ii. State tax (SGST)
(levied & collected under the authority of SGST Act, 2017 passed by respecti

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of taxes on sale of goods in the course of interstate trade
4. The CST suffers from following shortcomings:
i. CST is collected and retained by the origin state, which is an aberration. Any indirect tax, by definition is a consumption tax, the incidence of which is borne by the consumer. Logically, the tax should accrue to the destination state having jurisdiction over such consumer.
ii. Input Tax Credit (ITC) of CST is not allowed to the buyer which results in cascading of tax (tax on tax) in the supply chain.
iii. Various accountal forms are required to be filed in CST viz., C Form, E1, E2, F, I, J Forms etc. which adds to the compliance cost of the business and impedes the free flow of trade.
iv. Another negative feature of CST is the opportunity it provides for “arbitrage” because of the huge difference between tax rates under VAT and CST being levied on intra-State sales and inter-State sales respectively
5. The IGST model would remove all these deficiencies. IGST is a mech

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Prescribed order of utilization of IGST/CGST/SGST credit:
The IGST payment can be done by utilizing ITC. The amount of ITC on account of IGST is allowed to be utilized towards payment of IGST, CGST and SGST in that order.
8. Nature of Supply
It is very important to determine the nature of supply – whether it is inter-state or intra state, as the kind of tax to be paid (IGST or CGST+SGST) depends on that.
i. Inter- state Supply:
Subject to place of supply provisions, where the location of the supplier and the place of supply are in
a) two different States;
a) two different Union territories; or
a) a State and a Union territory,
Such supplies shall be treated as a supply of goods or services in the course of inter-State trade or commerce.
Any supply of goods or services in the taxable territory, not being an intra-State supply shall be deemed to be a supply of goods or services in the course of inter-State trade or commerce. Supplies to or by SEZ are defined as inter-State sup

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al tourists
* Any other supply in the taxable territory which is not intra state supply
Thus, the nature of the supply depends on the location of the supplier and the place of supply. Both these terms have been defined in the IGST Act.
9. Location of Supplier broadly is the registered place of business or the fixed establishment of the supplier from where the supply is made. Sometime, a service provider has to go to client location for providing service. However, such place would not be considered as the location of supplier. It has to be either regular place of business or fixed establishment which is having sufficient degree of permanence and suitable structure in terms of human and technical resources.
10. Place of supply
10.1 Place of supply provisions have been framed for goods & services keeping in mind the destination/consumption principle. In other words, place of supply is based on the place of consumption of goods or services. As goods are tangible, the determination of

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e of Supply
1
Where the supply involves movement of goods, whether by the supplier or the recipient or by any other person.
Location of the goods at the time at which the movement of goods terminates for delivery to the recipient.
2
where the goods are delivered to recipient or any person on the direction of third person by way of transfer of title or otherwise, it shall be deemed that third person has received the goods
The principal place of business of such person
3
where there is no movement of goods either by supplier or recipient
Location of such goods at the time of delivery to recipient
4
where goods are assembled or installed at site
The place where the goods are assembled or installed
5
where the goods are supplied on board a conveyance, like vessel, aircraft, train or motor vehicle
The place where such goods are taken on board the conveyance
6
Where the place of supply of goods cannot be determined in terms of sub-section (2), (3), (4) and (5)
It shall be d

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3
Training and performance appraisal,
B2B : Location of such registered person;
B2C: Location where the services are actually performed.
4
Admission to an event or amusement park
Place where the event is actually held or where the park or such other place is located.
5
Organization of an event.
B2B : Location of such registered person;
B2C: Location where the event is actually held.
If event is held outside India :Location of the recipient
6
Transportation of goods including mails
B2B : Location of such registered person;
B2C : Location at which such goods are handed over for their transportation
7
Passenger transportation.
B2B : Location of such registered person;
B2C : Place where the passenger embarks on the conveyance for a continuous journey
8
Services on board a conveyance
Location of the first scheduled point of departure of that conveyance for the journey.
9
Telecommunication services.
Services involving fixed line, circuits, dish etc., place of supply

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ription of supply
Place of supply
1.
B2B
Location of such registered person
2.
B2C
(i) Location of the recipient here the address on record exists, and
(ii) the location of the supplier of services in other cases.
D. Place of supply of services in case of cross-border supplies 🙁 Section 13)
(Where the location of the supplier of services or the location of the recipient of services is outside India)
i. In respect of following category of services, the place of supply is determined with reference to a proxy.
Rest of the services are governed by a default provision.
S.No
Nature of service
Place of supply
1.
Services supplied in respect of goods that are required to be made physically available from a remote location by way of electronic means, (Not Applicable in case of goods that are temporarily imported into India for repairs and exported.)
the location where the services are actually performed, the location where goods are situated
2.
services supplied to an indiv

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f destination of the goods
8.
Passenger transportation.
Place where the passenger embarks on the conveyance for a continuous journey
9.
Services on board a conveyance.
The first scheduled point of departure of that conveyance for the journey.
10.
online information and database access or retrieval services”
The location of recipient of service.
ii. For the rest of the services other than those specified above, a default provision has been prescribed as under.
Default Rule for the cross border supply of Services other than nine Specified Services
S.No.
Description of supply
Place of supply
1
Any
Location of the Recipient of Service If not available in the ordinary course of business: The location of the supplier of service.
11. Supplies in territorial waters: 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 is be deemed to be in the coastal Stat

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sidered as 'zero rated supply' on which no tax is payable. However, ITC is allowed subject to such conditions, safeguards and procedure as may be prescribed, refund in respect of such supplies may be claimed by following either of these options:
i. supply made without payment of IGST under Bond and claim refund of unutilised ITC or
ii. supply made on payment of IGST and claim refund of the same.
14. Refund of integrated tax paid on supply of goods to tourist leaving India:
Section 15 of the IGST Act provides for refund of IGST paid to an international tourist leaving India on goods being taken outside India subject to such conditions and safeguards as may be prescribed. An international tourist has been defined as a non-resident of India who enters India for a stay of less than 6 months. IGST would be charged on such supplies as the same is in the course of export.
This Section was not made applicable from 1st July, 2017 and will be notified at a later date once the ecosystem for

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Goods and Services Tax – GST – Dated:- 9-8-2017 – PRESS RELEASE 25th July, 2017 On National Anti-profiteering Authority under GST The GST Council has formed a Selection Committee under the Chairmanship of Cabinet Secretary to identify and recommend eligible persons for appointment as Chairman and Members of the National Anti-profiteering Authority under GST. The National Anti-profiteering Authority is tasked with ensuring the full benefits of a reduction in tax on supply of goods or services flow to the consumers. 2. When constituted by the GST Council, the National Anti-profiteering Authority shall be responsible for applying anti-profiteering measures in the event of a reduction in rate of GST on supply of goods or services or, if the be

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of Safeguards, CBEC who shall give his recommendation for consideration of the National Anti-profiteering Authority. 4. In the event the National Anti-profiteering Authority confirms the necessity of applying anti-profiteering measures, it has the power to order the business concerned to reduce its prices or return the undue benefit availed along with interest to the recipient of the goods or services. If the undue benefit cannot be passed on to the recipient, it can be ordered to be deposited in the Consumer Welfare Fund. In extreme cases the National Anti-profiteering Authority can impose a penalty on the defaulting business entity and even order the cancellation of its registration under GST. 5. The constitution of the National Anti-prof

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Inspection, Search, Seizure and Arrest
GST Law and Procedure – GST Law and Procedure [January, 2019]
GST
Chapter Forty Nine
Inspection, Search, Seizure and Arrest
In any tax administration the provisions for Inspection, Search, Seizure and Arrest are provided to protect the interest of genuine tax payers (as the Tax evaders, by evading the tax, get an unfair advantage over the genuine tax payers) and as a deterrent for tax evasion. These provisions are also required to safeguard Government's legitimate dues. Thus, these provisions acts as a deterrent and by checking evasion provide a level playing field to genuine tax payers.
2. It may be mentioned that the options of Inspection, Search, Seizure and Arrest are exercised, only in exceptional circumstances and as a last resort, to protect the Government Revenue. Therefore, to ensure that these provisions are used properly, effectively and the rights of tax payers are also protected, it is stipulated that Inspection, Search or

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an officer of the rank of Joint Commissioner or above a Joint Commissioner or an officer higher in rank can give such authorization only if he has reasons to believe that the person concerned has done one of the following actions:
(a) Suppression of any transaction relating to supply of goods or services or stock in hand;
(b) Claimed excess input tax credit;
(c) Contravention of any provisions of the Act or the Rules to evade tax;
(d) Transporting or keeping goods which escaped payment of tax or manipulating accounts or stocks which may cause evasion of tax;
Inspection can also be done of the conveyance, carrying a consignment of value exceeding specified limit. The person in charge of the conveyance has to produce documents / devices for verification and allow inspection. Inspection during transit can be done even without authorisation of Joint Commissioner.
(ii) Inspection in movement
(a) Any consignment, value of which is exceeding ₹ 50,000/-, may be stopped at any pl

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ns of search and seizure also provides enough safeguards and the GST Law stipulates that search of any place of business etc. can be carried out only under authorisation from an officer of the rank of Joint Commissioner and if he has a reason to believe that the person concerned has done at least one of the following:-
(a) Goods liable to confiscation or any documents /books/record/things, which may be useful for or relevant to any proceedings, are secreted in any place then all such places can be searched;
(b) All such goods/documents/books/record/ things may be seized, however, if it is not practicable to seize any such goods then the same may be detained. The person from whom these are seized shall be entitled to take copies/ extracts of seized records;
(c) The seized documents/books/things shall be retained only till the time the same are required for examination /enquiry/proceedings and if these are not relied on for the case then the same shall be returned within 30 days from

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sses, a record of entire proceedings is made and forwarded to the Commissioner forthwith.
(iv) Arrests
In the administration of taxation the provisions for arrests are created to tackle the situations created by some unscrupulous tax evaders. To some these may appear very harsh but these are necessary for efficient tax administration and also act as a deterrent and instil a sense of discipline. The provisions for arrests under GST Law have sufficient inbuilt safeguards to ensure that these are used only under authorisation from the Commissioner. Besides this, the GST Law also stipulates that arrests can be made only in those cases where the person is involved in offences specified for the purposes of arrest and the tax amount involved in such offence is more than the specified limit. The salient points of these provisions are:-
(a) Provisions for arrests are used in exceptional circumstance and only with prior authorisation from the Commissioner.
(b) The law lays down a stringent c

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Overview -Input Tax Credit Mechanism in GST
Input Tax Credit (ITC) – GST Ready Reckoner
GST
Introduction – Input Tax Credit Mechanism in GST
Uninterrupted and seamless chain of input tax credit (hereinafter referred to as, “ITC”) is one of the key features of Goods and Services Tax. ITC is a mechanism to avoid cascading of taxes. Cascading of taxes, in simple language, is 'tax on tax'. Under the earlier system of taxation, credit of taxes being levied by Central Government was not available as set-off for payment of taxes levied by State Governments, and vice versa. One of the most important features of the GST system is that the entire supply chain would be subject to GST to be levied by Central and State Government concurrently. As the tax charged by the Central or the State Governments would be part of the same tax regime, credit of tax paid at every stage would be available as set-off for payment of tax at every subsequent stage.
Let us understand how 'cascading' of taxe

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ect he actually pays duty on the 'value added' over and above the cost of the inputs. This mechanism eliminates cascading of taxes. However, when the pen was sold by the manufacturer to a trader he was required to levy VAT on such sale. But under the earlier system, the manufacturer could not use the credit of central excise duty paid on the pen for payment of VAT, as the two were being levied by Central and State government respectively with no statutory linkage between the two. Hence he was required to pay VAT on the entire value of the pen, i.e. ₹ 22/-, which actually includes the central excise duty to the tune of ₹ 2/-. This was cascading of taxes or tax on tax as VAT was not only paid on the value of pen i.e. ₹ 20/- but also on the central excise duty i.e. ₹ 2/-.
Goods and Services Tax (GST) has mitigated such cascading of taxes. Under the present system most of the indirect taxes levied by Central and the State Governments on supply of goods or services

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State Tax] on intra-state supply of goods or services or both.
c) Union Territory Goods and Services Tax (UTGST) [also known as Union territory Tax] on intra-union territory supply of goods or services or both.
d) Integrated Goods and Services Tax (IGST)[also known as Integrated Tax] on inter-state supply of goods or services or both. In case of import of goods also the present levy of Countervailing Duty (CVD) and Special Additional Duty (SAD) would be replaced by Integrated tax.
The protocol to avail and utilise the credit of these taxes is as follows:
Credit of
To be utilised first for payment of
May be utilised further for payment of
CGST
CGST
IGST
SGST/UTGST
SGST/UTGST
IGST
IGST
IGST
CGST, then SGST/UTGST
What is the Input Tax Credit.
Input credit means at the time of paying tax on output, you can reduce the tax you have already paid on inputs and pay the balance amount.
Here's how:
When you buy a product/service from a registered dealer you pay taxes on the pu

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o included.
c) Tax is actually paid by the supplier.
d) He has furnished the return.
e) If the inputs are received in lots, he will be eligible to avail the credit only when the last lot of the inputs is received.
f) He should pay the supplier the value of the goods or services along with the tax within 180 days from the date of issue of invoice, failing which the amount of credit availed by the recipient would be added to his output tax liability, with interest [rule 2(1) & (2) of ITC Rules]. However, once the amount is paid, the recipient will be entitled to avail the credit again. In case part payment has been made, proportionate credit would be allowed.
C) Documents on the basis of which credit can be availed are:
a) Invoice issued by a supplier of goods or services or both
b) Invoice issued by recipient alongwith proof of payment of tax
c) A debit note issued by supplier
d) Bill of entry or similar document prescribed under Customs Act
e) Revised invoice
f) Do

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rance, health insurance except where it is obligatory for an employer under any law;
iv. travel benefits extended to employees on vacation such as leave or home travel concession;
c) Works contract services when supplied for construction of immovable property, other than plant &machinery, except where it is an input service for further supply of works contract;
d) Goods or services received by a taxable person for construction of immovable property on his own account, other than plant & machinery, even when used in course or furtherance of business;
e) goods and/or services on which tax has been paid under composition scheme;
f) goods and/or services used for private or personal consumption, to the extent they are so consumed;
g) Goods lost, stolen, destroyed, written off, gifted, or free samples;
h) Any tax paid due to short payment on account of fraud, suppression, mis-declaration, seizure, detention.
G) Special circumstances under which ITC is available:
a) A person

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le, the person making such supplies shall be entitled to take ITC in respect of goods held in stock (inputs as such and inputs contained in semi-finished or finished goods) relatable to exempt supplies. He shall also be entitled to take credit on capital goods used exclusively for such exempt supply subject to reductions for the earlier usage as prescribed in the rules.
e) ITC, in all the above cases, is to be availed within 1 year from the date of issue of invoice by the supplier.
f) In case of change of constitution of a registered person on account of sale, merger, demerger etc, the unutilised ITC shall be allowed to be transferred to the transferee.
g) A person switching over from composition scheme under section 10 to normal scheme or where a taxable supply become exempt, the ITC availed in respect of goods held in stock (inputs as such and inputs contained in semi-finished or finished goods) as well as capital goods will have to be paid.
h) In case of supply of capital go

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f the available ITC in such cases has to be worked out as prescribed in the rules.
I) Provisions Specifically applicable for Construction Service w.e.f. 01.04.2019, in case of supply of construction services, the input tax shall be calculated finally, for each on going project or project which commences on or after 1st April, 2019, which did not undergo or did not require transition of input tax credit consequent to change of rates of tax on 1st April, 2019 in accordance with notification No. 11/2017- Central Tax (Rate), dated the 28th June, 2017, as amended, for the entire period from the commencement of the project or 1st July, 2017, whichever is later, to the completion or first occupation of the project, whichever is earlier, before the due date for furnishing of the return for the month of September following the end of financial year in which the completion certificate is issued or first occupation takes place of the project. This has to be calculated in the manner specifically

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Reduced tax liability on homes under GST
GST
Dated:- 9-8-2017

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Document 1
davp 15502/13/0144/1718
JAGO
GRAHAK
JAGO
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GST
NATION
TAX
MARKET
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GOOD NEWS
FOR
HOME
BUYERS
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Reduced tax liability
on homes under GST
The CBEC and States have received many complaints that in view of the works contract
service tax rate under GST at 12% in respect of under construction flats, complex etc, the people
who have booked flats and made part payment before 1st July, 2017, are being asked to
bear higher tax incidence for payments made after 1st July, 2017. This is against the GST law,
as explained below.
Construction of flats, complex, buildings have a lower incidence of GST as compared to a
plet

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ction material was
earlier being borne by the builders, which they passed on to the customers as part of the price
charged from them. This was not visible to the customer as it formed a part of the cost of the flat.
• The earlier headline rate of service tax on construction of flats, residences, offices etc. was 4.5%. Over and above
this, VAT @1% under composition scheme was also charged. The buyer only looked at the headline rate of 5.5%.
In other Cities/States, where VAT was being levied under the composition scheme @2% or above, the headline
rate visible to the customer was above 6.5%. What the customer did not see is the embedded taxes on account of
cascading and sticking of input taxes in the cost of the flat etc.
•

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Imports in GST Regime
GST Law and Procedure – GST Law and Procedure [January, 2019]
GST
Chapter Twenty Three
Imports in GST Regime
Introduction
Under the GST regime, Article 269A constitutionally mandates that supply of goods, or of services, or both in the course of import into the territory of India shall be deemed to be supply of goods, or of services, or both in the course of inter-State trade or commerce. So import of goods or services will be treated as deemed inter-State supplies and would be subject to Integrated tax. While IGST on import of services would be leviable under the IGST Act, the levy of the IGST on import of goods would be levied under the Customs Act, 1962 read with the Custom Tariff Act, 1975. The importer of services will have to pay tax on reverse charge basis. However, in respect of import of online information and database access or retrieval services (OIDAR) by unregistered, non-taxable recipients, the supplier located outside India shall be resp

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ted into India shall be levied and collected in accordance with the provisions of the Customs Tariff Act, 1975 on the value as determined under the said Act at the point when duties of customs are levied on the said goods under the Customs Act, 1962. The integrated tax on goods shall be in addition to the applicable Basic Customs Duty (BCD) which is levied as per the Customs Tariff Act. In addition, GST compensation cess, may also be leviable on certain luxury and de-merit goods under the Goods and Services Tax (Compensation to States) Cess Act, 2017.
The Customs Tariff Act, 1975 has accordingly been amended to provide for levy of integrated tax and the compensation cess on imported goods. Accordingly, any goods which are imported into India shall, in addition to the Basic Customs duty, be liable to integrated tax at such rate as is leviable
Sr.No.
Date of prior intimation given for procuring deemed export supplies
Details of registered person
Jurisdictional GST officer details of

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egrated tax shall be assessable value plus Customs Duty levied under the Act, and any other duty chargeable on the said goods under any law for the time being in force as an addition to, and in the same manner as, a duty of customs.
The value of the imported article for the purpose of levying cess shall be assessable value plus Basic Customs Duty levied under the Act, and any sum chargeable on that goods under any law for the time being in force as an addition to, and in the same manner as, a duty of customs. The integrated tax paid shall not be added to the value for the purpose of calculating cess.
Let's take an example:
Suppose the assessable value of an article imported into India is ₹ 100/-. Basic Customs Duty is 10% ad-valorem. Education Cess is 3%; Integrated tax rate is 18% and Compensation Cess is 15%
The taxes will be calculated as under:
Particulars
Duty
(A) Assessable Value
₹ 100/-
(B) Basic Customs Duty@10%
Rs.10/-
(C) Education Cess @3%
Rs.0.30
(D

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atment of Goods imported into India and deposited in a warehouse and sold while in warehouse before clearance from Customs (Circular No. 46/2017 dated 24th November, 2017):
The Customs Act, 1962 provides for removal of goods from a customs station to a warehouse without payment of duty. The said Act has been amended to include 'warehouse' in the definition of “customs area” in order to ensure that an importer would not be required to pay the Integrated tax at the time of removal of goods from a customs station to a warehouse.
However, the transaction of sale / transfer etc. of the warehoused goods between the importer and any other person may be at a price higher than the assessable value of such goods. Such a transaction squarely falls within the definition of “supply” and shall be taxable under the IGST Act, 2017. It may be noted that as per sub-section (2) of section 7 of the IGST Act, any supply of imported goods which takes place before they cross the customs frontiers of India,

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one or multiple, shall be levied and collected only at the time of importation i.e. when the import declarations are filed before the Customs authorities for the customs clearance purposes for the first time. Further, value addition accruing in each such high sea sale shall form part of the value on which IGST is collected at the time of clearance.
Import of goods by 100% EOU's and SEZs:
Import of goods by 100% EOU's would be governed by Notification no. 52/2003-Customs as amended by Notification no. 78/2017-Customs dated 13.10.2017. EOUs are allowed duty free import of goods (exempt from Customs duties, IGST & Compensation Cess) under the said notifications. However, exemption from IGST is only available till 31.03.2018.
Goods imported by a unit or a developer in the Special Economic Zone for authorised operations are exempted from the whole of integrated tax under section 3 (7) of the Customs Tariff Act, 1975 vide Notification No. 64/2017-Customs dated 05.07.2017.
Input tax credi

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us, if an importer say is located in Rajasthan, the state tax component of the integrated tax shall accrue to the State of Rajasthan.
Import of services
Import of services has specifically been defined under IGST Act, 2017 and refers to supply of any service where the supplier is located outside India, the recipient is located in India and the place of supply of service is in India.
As per the provisions contained in Section 7(1) (b) of the CGST Act, 2017, import of services for a consideration whether or not in the course or furtherance of business shall be considered as a supply. Thus, in general, import of services without consideration shall not be considered as supply. However, business test is not required to be fulfilled for import of service to be considered as supply.
Furthermore, in view of the provisions contained in Schedule I of the CGST Act, 2017, the import of services by a taxable person from a related person or from a distinct person as defined in Section 25 of the

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taxable person from a related person or from a distinct person
Not required
Necessarily Required
As per the provisions contained in Section 21 of the IGST Act, 2017, all import of services made on or after the appointed day i.e 1st July, 2017 will be liable to integrated tax regardless of whether the transactions for such import of services had been initiated before the appointed day. However, if the tax on such import of services had been paid in full under the existing law, no tax shall be payable on such import under the IGST Act. In case the tax on such import of services had been paid in part under the existing law, the balance amount of tax shall be payable on such import under the IGST Act, 2017. For instance, suppose a supply of service for Rs. One crore was initiated prior to the introduction of GST, a payment of ₹ 20 lacs has already been made to the supplier and service tax has also been paid on the same, the integrated tax shall have to be paid on the balance &#83

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ervices
2.1
Services are provided on goods but from a remote location by way of electronic means
Location where goods are situated at the time of supply of services
2.2.
Above provisions is not applicable in respect of goods which are temporarily imported into India for repairs and are exported after repairs
3.
Services supplied directly in relation to an immovable property
Place where the immovable property is located or intended to be located
4.
Admission to, or organisation of an event
Place where the event is actually held
4.1
Above Services provided in more than one country including India
India
4.2
Above Services provided in more than one state
Proportionate Basis
5.
Services supplied by a banking company, or a financial institution, or a non-banking financial company, to account holders
Location of the supplier of services
5.1
Intermediary services
5.2
Services consisting of hiring of means of transport, including yachts but excluding aircrafts and vessel

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Goods and Services Tax – GST – Dated:- 9-8-2017 – PRESS RELEASE 07th August, 2017 The Schedule to the Goods and Service Tax (GST) (Compensation to State) Act 2017 specifies the maximum rate at which Goods and Service Tax Compensation Cess may be collected. In respect of motor vehicles, the maximum rate at which Goods and Service Tax Compensation Cess may be collected is 15%. 2. After introduction of GST, the total tax incidence on motor vehicles [GST + Compensation Cess] has come down vis-a-vis

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GST on Works Contract Service provided to Government Authorities
Query (Issue) Started By: – Mayuri Shete Dated:- 9-8-2017 Last Reply Date:- 10-8-2017 Goods and Services Tax – GST
Got 3 Replies
GST
Hello
We provide works contract services. rate of GST on the same is 18%.
But is it same if we provide the service to Government Authorities (Government of India,Minsitry of Defence (R&D) ?
Previously we were exempted from service tax.
please help.
Reply By KASTURI SETHI:
The Reply:

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Goods and Services Tax – Started By: – pawan kumar – Dated:- 9-8-2017 Last Replied Date:- 30-12-1899 – if pathpedhi (Credit Co operative Society) paid commission to their agent. in this case can credit cooperative society paid agent gst on RCM basis on commission amount . or agent have to take gst registration.Agent means who collect money from client and deposit it into client account in credit co operative society. for this service society paid commission to their agent. can society paid gst

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GSTR – 1 filing query
Query (Issue) Started By: – RameshBabu Kari Dated:- 9-8-2017 Last Reply Date:- 12-8-2017 Goods and Services Tax – GST
Got 1 Reply
GST
Dear Experts,
While filing the GSTR-1 through online, There is a problem with it i.e
1.In B2B transactions, We have uploaded the all out word supplies(total invoices is 34) but in the B2B, showing only 24 only. and also not matching the total liability. (In this case, if we try to enter any inovice, it is showing that this invo

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