GST FLYERS – Updated as on 1st January, 2018
GST
Dated:- 8-1-2018
PDF DOWNLOAD
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\nDocument 1
\nCENTRAL BOARD OF EXCISE & CUSTOMS
\nNEW DELHI
\n\u00e0\u00a4\u00b8\u00e0\u00a5\u20ac\u00e0\u00a4\u00ae\u00e0\u00a4\u00be \u00e0\u00a4\u00b6\u00e0\u00a5\u0081\u00e0\u00a4\u00b2\u00e0\u00a5\u008d\u00e0\u00a4\u2022 \u00e0\u00a4\u008f\u00e0\u00a4\u00b5\u00e0\u00a4\u201a .
\nCUSTOMS
\nAND
\n\u00e0\u00a4\u2022\u00e0\u00a5\u2021\u00e0\u00a4\u00a8\u00e0\u00a5\u008d\u00e0\u00a4\u00a6\u00e0\u00a5\u008d\u00e0\u00a4\u00b0\u00e0\u00a5\u20ac\u00e0\u00a4\u00af
\n\u00e0\u00a4\u2030\u00e0\u00a4\u00a4\u00e0\u00a5\u008d\u00e0\u00a4\u00aa\u00e0\u00a4\u00be\u00e0\u00a4\u00a6
\nCENTRAL,
\nEXCISE
\n\u00e0\u00a4\u00b6\u00e0\u00a5\u0081\u00e0\u00a4\u00b2\u00e0\u00a5\u008d\u00e0\u00a4\u2022
\n\u00e0\u00a4\u00ad\u00e0\u00a4\u00be\u00e0\u00a4\u00b0\u00e0\u00a4\u00a4
\n\u00e0\u00a4\u00b8\u00e0\u00a4\u00a4\u00e0\u00a5\u008d\u00e0\u00a4\u00af\u00e0\u00a4\u00ae\u00e0\u00a5\u2021\u00e0\u00a4\u00b5 \u00e0\u00a4\u0153\u00e0\u00a4\u00af\u00e0\u00a4\u00a4\u00e0\u00a5\u2021
\n\u2022 \u00e0\u00a4\u00b8\u00e0\u00a4\u00b0\u00e0\u00a4\u2022\u00e0\u00a4\u00be\u00e0\u00a4\u00b0
\nGOVERNMENT
\nOF INDIA
\n\u00e0\u00a4\u00a6\u00e0\u00a5\u2021\u00e0\u00a4\u00b6\u00e0\u00a4\u00b8\u00e0\u00a5\u2021\u00e0\u00a4\u00b5\u00e0\u00a4\u00be\u00e0\u00a4\u00b0\u00e0\u00a5\u008d\u00e0\u00a4\u00a5 \u00e0\u00a4\u2022\u00e0\u00a4\u00b0\u00e0\u00a4\u00b8\u00e0\u00a4\u201a\u00e0\u00a4\u0161\u00e0\u00a4\u00af
\nGST FLYERS
\nUpdated as on 1st January, 2018
\nFOREWORD
\nFlyers on important topics of GST are being brought
\nout by the National Academy of Customs, Indirect Taxes,
\n&Narcotics (NACIN), the apex training institution under
\nthe Central Board of Excise & Customs (CBEC). These
\nFlyers are being issued from time to <\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n T………. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n \n.400 = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n gal advice = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n e business of supplying goods or services = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n a supplier within the meaning of the = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n \ne-commerce operators need not take compulsory = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n try. The decision making = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n narios where cancellation = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n y of issuing = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ax periods; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n e to be registered or his registration is li- = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n STR-10 through the common portal either = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n seven working days from the date = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n \nsupply. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ls out = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n stinct persons as specified in = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n Hence even an unregistered person = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n pply of goods where the location of the supplier = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n arly identifiable = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ssued by CBEC in the = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n there is no attempt to offload the = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n . = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n g highest rate of tax. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n other constituent supplies, such mixed = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n cipal supply and therefore such supplies would = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n However, in other = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n e in rate). Notification no. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n charge basis = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ian economy. A shopkeeper may issue = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n oods or = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n on 12 to 14 of the CGST = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n f supply would arise only at the time of issue of invoice and = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ate of its issue; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n istered person issues a receipt voucher, = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n with the respective place = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n Notification no.38\/2017-Central Tax (Rate) dated = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n \nexports of goods or services or both and inter-State supplies of = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n or Composition Scheme. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ted or established outside India, the application = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n y for the period for which the = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n Rs. 20 Lakh (Rs. 10 lakh = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n Namda, Gabba = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n al for making the mandatory advance = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n d after fifteenth day but be- = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n specified in column (2) of the Table below till = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ces or = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n both the amount of ineligible and eligible input = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n tly attributable to. If input services = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n rata basis on the basis of = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n cheme, = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n vices including services by way of extending = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ant financial year. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n \niii. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n person engaged in any other supply = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n made thereafter and he = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n proper officer has reason to believe = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n tered = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n e to a TDS = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n he tax in respect of supply = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ption = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ST FLYERS = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ice is a commercial instrument = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ce of tax invoice under GST = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n t prescribed for an invoice, however, = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n characters = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n erson who becomes liable for = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n he course of inter-State = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ceases under a contract = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n r can issue a debit note to the recipient. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n g marked as DUPLICATE = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n consignor and the consignee, = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n be prepared in triplicate, in case = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n referred = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ollowing accounts and records will have to be = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n he details of payment received in respect of each = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n s, = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n mon Portal in FORM GST ENR-01. A unique = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n e has been issued for supply of any goods = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n e date of furnishing of the relevant annual = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n f the supplier = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n r = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n stration and shall be accessible at = = = = = = = =<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n…..10
\n3. The Meaning and Scope of Supply
\n…..17
\n4. Composite Supply and Mixed Supply
\n..25
\n5. Time of Supply in GST…….
\n……..35
\n6. GSTonadvances received for futuresupplies 44
\n7. Conceptof Aggregate Turnover in GST..
\n8. Non-resident taxable person in GST……
\n9. Casual taxable person in GST…..
\n10. Input Service Distributor in GST……
\n……..53
\n…..55
\n.59
\n…..68
\n11. Composition Levy Scheme in GST…….
\n…..74
\n12. Reverse Charge Mechanism in GST………
\n…85
\n13. Tax Invoice and other such instruments in GST………..97
\n14. Accounts and Records in GST………
\n.114
\n15. Credit Note in GST….
\n122
\n16. Debit Note in GST……
\n..127
\n17. Electronic Cash\/Credit Ledgers and Liability .131
\nRegister in GST
\n18. Electronic Way Bill in GST……
\n..138
\n19. Input Tax Credit Mechanism in GST…….
\n.149
\n20. Transition Provisions under GST..
\n.158
\n21. Integrated Goods and Services Tax Act ….167
\n22. Compensation cess in GST….
\n…185<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n44. National Anti-Profiteering Authority in GST ……406
\n45. Benefits of Goods and Services Tax (GST).\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026..413
\n46. Special Audit in GST
\n…417
\n47. TDS Mechanism under GST………
\n.421
\n48. TCS Mechanism under GST..
\n…426
\n49. Inspection, Search, Seizure and Arrest..
\n.430
\n50. Appeals and Review Mechanism under GST.437
\n51. Recovery of Tax……
\n.449
\nFlyers Compiled by National Academy of Customs, Indirect
\nTaxes and Narcotics (NACIN), GST Team
\nPrepared by the following officers:
\n1. Shri Sanjeev Nair, Examiner (AR), CESTAT, Mumbai
\n2.
\n3.
\n4.
\n5.
\n(S. No. 4, 17, 24, 25, 26, 28, 34, 35, 36, 37, 38, 39, 40,
\n41, 42, 50)
\nShri Deepak Mata, Asstt. Director, NACIN, Mumbai (S.
\nNo. 6, 10, 12, 13, 14, 18, 23, 30, 43, 45)
\nShri Girish Vadassery, Asstt. Commr. Ahmednagar (S. No.
\n2,7, 8, 9, 15, 16, 22, 31, 33, 44, 46)
\nShri Shirish Gogate, Supdt., DTPS, Mumbai (S. No.<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nor opinion. For greater details, you are requested to refer to the
\nrespective CGST\/SGST\/UTGST\/IGST Acts, Rules, Notifications,
\nCirculars, Orders issued from time to time.
\nChapter One
\nRegistration under GST Law
\nIntroduction
\nIn any tax system registration is the most fundamental
\nrequirement for identification of tax payers ensuring tax
\ncompliance in the economy. Registration of any business.
\nentity under the GST Law implies obtaining a unique number
\nfrom the concerned tax authorities for the purpose of collecting
\ntax on behalf of the government and to avail Input tax credit
\nfor the taxes on his inward supplies. Without registration, a
\nperson can neither collect tax from his customers nor claim
\nany input tax credit of tax paid by him.
\nNeed and advantages of registration
\nRegistration will confer the following advantages to a taxpayer:
\nHe is legally recognized as supplier of goods or
\nservices.
\nHe is legally authorized to collect tax from his
\ncustomers and pas<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nor both that are not liable to tax or wholly exempt from tax
\nor an agriculturist, to the extent of supply of produce out of
\ncultivation of land are not liable to register under GST. Also,
\nif all the supplies being made by a supplier are taxable under
\nreverse charge, there is no requirement for such a supplier
\nto register in light of Notification No. 5\/2017-Central Tax
\ndated 19.06.2017.
\nNature of Registration
\nThe registration in GST is PAN based and State specific.
\n2
\nRegistration under GST Law
\nSupplier has to register in each of such State or Union
\nterritory from where he effects supply. In GST registration,
\nthe supplier is allotted a 15-digit GST identification
\nnumber called “GSTIN” and a certificate of registration
\nincorporating therein this GSTIN is made available to the
\napplicant on the GSTN common portal. The first 2 digits
\nof the GSTIN is the State code, next 10 digits are the PAN
\nof the legal entity, the next two digits<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nterm, and also if your aggregate turn over in the
\nfinancial year is above the exemption threshold of
\n20 lakh rupees (10 lakh rupees in special category
\nstates except J & K). However, the GST law enlists
\n3
\nGST FLYERS
\ncertain categories of suppliers who are required to
\nget compulsory registration irrespective of their
\nturnover that is to say, the threshold exemption of
\n20 lakh rupees or 10 lakh rupees as the case may
\nbe is not available to them. Some of such suppliers
\nwho need to register compulsorily irrespective of
\nthe size of their turnover are those who are, –
\nInter-state suppliers; However, persons making
\ninter-state supplies of taxable services and having
\nan aggregate turnover, to be computed on all India
\nbasis, not exceeding an amount of twenty lakh rupees
\n(ten lakh rupees for special category States except
\nJ & K) are exempted from obtaining registration
\nvide Notification No. 10\/2017-Integrated Tax
\ndated 13.10.2017.
\nA
\npe<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nregistration and are entitled to avail the threshold
\nexemption of Rs. 20 Lakh as per Notification No.
\n65\/2017-Central tax dated 15.11.2017.
\nThose ecommerce operators who are notified as
\nliable for GST payment under Section 9(5) of the
\nCGST Act, 2017
\nTDS Deductor
\nInput service distributor
\nThose supplying online information and data base
\naccess or retrieval services from outside India to a
\nnon-registered person in India.
\nA casual taxable person is one who has a registered business
\nin some State in India, but wants to effect supplies from
\nsome other State in which he is not having any fixed place
\nof business. Such person needs to register in the State
\nfrom where he seeks to supply as a casual taxable person.
\nA non-resident taxable person is one who is a foreigner
\nand occasionally wants to effect taxable supplies from any
\nState in India, and for that he needs GST registration. GST
\n5
\nGST FLYERS
\nlaw prescribes special proce<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nprocess will also be fast. Strict time lines have been stipulated
\nfor completion of different stages of registration process.
\nAn application has to be submitted on line through the
\ncommon portal (GSTN) within thirty days from the date
\nwhen liability to register arose. The casual and non-resident
\ntaxable persons need to apply at least five days prior to the
\ncommencement of the business. For transferee of a business
\nas going concern, the liability to register arises on the date
\nof transfer.
\n6
\nRegistration under GST Law
\nThe Proper Officer has to either raise a query or approve
\nthe
\ngrant of registration within three working days failing
\nwhich registration would be considered as deemed to have
\nbeen approved. The applicant would have to respond within
\nseven working days starting from the fourth day of filing
\nthe original application. The proper officer would have to
\ngrant or reject the application for registration within seven
\nworking days thereaf<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n7
\nGST FLYERS
\nof registration can take place; the one when the taxable
\nperson no more requires it (voluntary cancellation), and
\nanother when the proper officer considers the registration
\nliable for cancellation in view of certain specified defaults
\n(Suo-motu cancellation) like when the registrant is not
\ndoing business from the registered place of business or if
\nhe issues tax invoice without making the supply of goods
\nor services. The taxable person desirous of cancellation of
\nRegistration will apply on the common portal within 30
\ndays of event warranting cancellation. He will also declare
\nin the application the stock held on the date with effect
\nfrom which he seeks cancellation. He will also work out
\nand declare the quantum of dues of payments and credit
\nreversal, and the particulars of payments made towards
\ndischarge of such liabilities. In case of voluntary registration
\n(taken despite not being liable for obtaining registration),
\nno cancell<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nnotice to the person and hearing him on the issue.
\nPhysical verification in connection with registration
\nPhysical verification is to be resorted to only where it is
\nfound necessary in the subjective satisfaction of the proper
\nofficer. If at all, it is felt necessary, it will be undertaken only
\nafter granting the registration and the verification report
\nalong with the supporting documents and photographs
\nshall have to be uploaded on the common portal within
\nfifteen working days.
\n******
\n9
\nChapter Two
\nCancellation of Registration
\nin GST
\nIntroduction:
\nThe registration granted under GST can be cancelled for
\nspecified reasons. The cancellation can either be initiated
\nby the department on their own motion or the registered
\nperson can apply for cancellation of their registration. In
\ncase of death of registered person, the legal heirs can apply
\nfor cancellation. In case the registration has been cancelled
\nby the department there is a provision for revocation o<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\na) any registered person, other than a person paying tax
\nunder Composition levy has not furnished returns for a
\ncontinuous period of six months;
\na) any person who has taken voluntary registration under
\nsub-section (3) of section 25 has not commenced busi-
\nness within six months from the date of registration;
\na) registration has been obtained by means of fraud, will-
\nful misstatement or suppression of facts
\nProcedurefor cancellation:
\ni.
\nA person already registered under any of the existing
\nlaws (Central excise, Service tax, VAT etc.), but who
\nnow is not liable to be registered under the GST Act
\nhas to submit an application electronically by 31ST
\nDecember 2017, in FORM GST REG-29 at the
\ncommon portal for the cancellation of registration
\ngranted to him. The Superintendent of Central Tax
\n11
\nGST FLYERS
\niii.
\niv.
\nV.
\nvi.
\nii.
\nshall, after conducting such enquiry as deemed fit,
\ncancel the said registration.
\nThe cancellation of registration under the State\n<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nable to be cancelled, the Superintendent of Central
\nTax will issue an order in FORM GST REG-19,
\nwithin a period of thirty days from the date of appli-
\ncation or, as the case may be, the date of the reply to
\n12
\nvii.
\nviii.
\nix.
\nCancellation of Registration in GST
\nthe show cause issued, cancel the registration, with
\neffect from a date to be determined by him and no-
\ntify the taxable person, directing him to pay arrears.
\nof any tax, interest or penalty.
\nThe registered person whose registration is cancelled
\nshall pay an amount, by way of debit in the electronic
\ncredit ledger or electronic cash ledger, equivalent to
\nthe credit of input tax in respect of inputs held in
\nstock and inputs contained in semi-finished or fin-
\nished goods held in stock or capital goods or plant
\nand machinery on the day immediately preceding
\nthe date of such cancellation or the output tax pay-
\nable on such goods, whichever is higher.
\nIn case of capit<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\ndirectly or through a Facilitation Centre notified by the
\nCommissioner.
\nRevocation of Cancellation:
\ni. When the registration has been cancelled by the
\nProper Officer (Superintendent of Central Tax) on
\nhis own motion and not on the basis of an applica-
\ntion,then the registered person, whose registration
\nhas been cancelled, can submit an application for
\nrevocation of cancellation of registration, in FORM
\nGST REG-21, to the Proper Officer (Assistant or
\nDeputy Commissioners of Central Tax), within a
\nperiod of thirty days from the date of the service of
\nthe order of cancellation of registration at the com-
\nmon portal, either directly or through a Facilitation
\nCentre notified by the Commissioner:
\nii.
\nHowever, if the registration has been cancelled for
\nfailure to furnish returns, application for revocation
\nshall be filed, only after such returns are furnished
\nand any amount due as tax, in terms of such returns,
\nhas been paid along w<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nof the service of the notice in FORM GST REG-
\n24.
\nUpon receipt of the information or clarification in
\nFORM GST REG-24, the Proper Officer (Assis-
\ntant or Deputy Commissioners of Central Tax) shall
\ndispose of the application within a period of thirty
\ndays from the date of the receipt of such information
\nor clarification from the applicant. In case the infor-
\nmation or clarification provided is satisfactory, the
\nProper Officer (Assistant or Deputy Commissioners
\nof Central Tax) shall dispose the application as per
\npara (iii) above. In case it is not satisfactory the ap-
\n15
\nGST FLYERS
\nvi.
\nplicant will be mandatorily given an opportunity of
\nbeing heard, after which the Proper Officer (Assis-
\ntant or Deputy Commissioners of Central Tax) after
\nrecording the reasons in writing may by an order in
\nFORM GST REG- 05, reject the application for
\nrevocation of cancellation of registration and com-
\nmunicate the same to the applicant.
\nThe revocat<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nThe term, “supply” has been inclusively defined in the
\nAct. The meaning and scope of supply under GST can be
\nunderstood in terms of following six parameters, which can
\nbe adopted to characterize a transaction as supply:
\n1.
\nSupply of goods or services. Supply of anything other
\nthan goods or services does not attract GST.
\n17
\nGST FLYERS
\n2. Supply should be made for a consideration
\n3.
\n\u00e0\u00a4\u00b2\u00e0\u00a4\u201a
\n4.
\nSupply should be made in the course or furtherance
\nof business
\nSupply should be made by a taxable person
\n5. Supply should be a taxable supply
\n556
\n6.
\nof
\nWhile these six parameters describe the concept
\nsupply, there are a few exceptions to the requirement
\nof supply being made for a consideration and in the
\ncourse or furtherance of business. Any transaction
\ninvolving supply of goods or services without
\nconsideration is not a supply, barring few exceptions,
\nin which a transaction is deemed to be a supply even
\nwithout consideration. Further import of services\n<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nactivities which shall be treated as neither supply of goods
\nnor supply of services – in other words, outside the scope of
\nGST.A few important ones are: –
\n1. Services by an employee to the employer in the
\ncourse of or in relation to his employment.
\n2.
\n3.
\nServices of funeral, burial, crematorium or mortuary
\nincluding transportation of the deceased.
\nSale of land and, sale of building where the entire
\nconsideration has been received after completion
\ncertificate is issued or after its first occupation.
\nActionable claims are included in the definition of goods,
\nhowever, schedule III provides that actionable claims other
\nthan lottery, betting and gambling shall be neither goods
\nnor services.
\nSupply for consideration
\nConsideration has specifically been defined in the CGST
\nAct, 2017. It can be in money or kind. Any subsidy given
\nby the Central Government or a State Government is not
\nconsidered as consideration. It is immaterial whether the
\npayment is made by the re<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nsection 25, when made in the course or furtherance
\nof business: Provided that gifts not exceeding fifty
\nthousand rupees in value in a financial year by an
\nemployer to an employee shall not be treated as
\nsupply of goods or services or both.
\nSupply of goods- (a) by a principal to his agent
\nwhere the agent undertakes to supply such goods
\non behalf of the principal; or (b) by an agent to his
\nprincipal where the agent undertakes to receive such
\ngoods on behalf of the principal.
\nImport of services by a taxable person from a related
\nperson or from any of his other establishments outside
\nIndia, in the course or furtherance of business.
\nSupply in the Course or Furtherance of Business
\n20
\nThe Meaning and Scope of Supply
\nGST is essentially tax only on commercial transactions.
\nHence only those supplies that are in the course or
\nfurtherance of business qualify as Supply under GST.
\nHence any supplies made by an individual in his personal
\ncapacity do<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nwho is liable to be registered is a taxable person. Similarly,
\na person not liable to be registered but has taken voluntary
\nregistration and got himself registered is also a taxable
\nperson.
\nIt should be noted that GST in India is state-centric. Hence
\n21
\nGST FLYERS
\na person making supplies from different states need to take
\nseparate registration in each state. Further the person may
\ntake more than one registration within a state if the person
\nhas multiple business verticals. A person who has obtained
\nor is required to obtain more than one registration, whether
\nin one State or Union territory or more than one State or
\nUnion territory shall, in respect of each such registration, be
\ntreated as distinct persons for the purposes of GST. Hence
\na supply between these entities constitutes supply under
\nGST.
\nTaxable supply
\nFor a supply to attract GST the supply must be taxable.
\nTaxable supply has been broadly defined and means any
\nsupply of <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nand place of supply are in the same State or Union territory.
\nImports, Supplies from and to SEZs are treated as deemed
\ninter-State supplies.
\nComposite\/Mixed supply
\nA composite supply means a supply made by a taxable
\nperson to a recipient comprising two or more supplies
\nof goods or services or any combination thereof, which
\nare naturally bundled and supplied in conjunction
\nwith each other in the ordinary course of business, one
\nof which is a principal supply. For instance, a travel
\nticket from Mumbai to Delhi may include service of food
\nbeing served on board, free insurance, use of airport
\nlounge. In this case, transport of passenger, constitutes
\nthe pre-dominant element of the composite supply, and
\nis treated as the principal supply and all other supplies
\nare ancillary.
\nThe GST Law lays down the tax liability on a composite or
\nmixed supply in the following manner.
\nComposite Supply comprising two or more
\nsupplies one o<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nsupplies. Some of the supplies will be a combination of
\ngoods or combination of services or combination of goods
\nand services both. Each individual component in a given
\nsupply may attract different rate of tax. The rate of tax to be
\nlevied on such supplies may pose a problem in respect of
\nclassification of such supplies. It is for this reason, that the
\nGST Law identifies composite supplies and mixed supplies
\n25
\nGST FLYERS
\nand provides certainty in respect of tax treatment under
\nGST for such supplies.
\nComposite Supply under GST
\nUnder GST, a composite supply would mean a supply
\nmade by a taxable person to a recipient consisting of two
\nor more taxable supplies of goods or services or both, or
\nany combination thereof, which are naturally bundled and
\nsupplied in conjunction with each other in the ordinary
\ncourse of business, one of which is a principal supply;
\nIllustration: Where goods are packed and transported with
\ninsurance, the supply of goods, pack<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nyear 2012 as under –
\n“Bundled service' means a bundle of provision of various
\nservices wherein an element of provision of one service is
\ncombined with an element or elements of provision of any
\nother service or services. An example of 'bundled service'
\nwould be air transport services provided by airlines
\nwherein an element of transportation of passenger by air is
\ncombined with an element of provision of catering service
\non board. Each service involves differential treatment as
\na manner of determination of value of two services for the
\npurpose of charging service tax is different.
\nThe rule is – 'If various elements of a bundled service are
\nnaturally bundled in the ordinary course of business, it
\nshall be treated as provision of a single service which
\ngives such bundle its essential character'
\nIllustrations –
\nA hotel provides a 4-D\/3-N package with the facility
\nof breakfast. This is a natural bundling of services
\nin the ordinary course of business.<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nvalue of one service on to another service that is chargeable
\nat a concessional rate.
\nWhether services are bundled in the ordinary course
\nof business would depend upon the normal or frequent
\npractices followed in the area of business to which services
\nrelate. Such normal and frequent practices adopted in a
\nbusiness can be ascertained from several indicators some of
\nwhich are listed below –
\nThe perception of the consumer or the service receiver.
\nIf large number of service receivers of such bundle of
\nservices reasonably expect such services to be provided
\n28
\nComposite Supply and Mixed Supply
\nas a package, then such a package could be treated as
\nnaturally bundled in the ordinary course of business.
\nMajority of service providers in a particular area
\nof business provide similar bundle of services. For
\nexample, bundle of catering on board and transport by
\nair is a bundle offered by a majority of airlines.
\nThe nature of the various servi<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n29
\n29
\nGST FLYERS
\nThe different elements are not available separately.
\nThe different elements are integral to one overall
\nsupply if one or more is removed, the nature of
\n–
\nthe supply would be affected.
\nNo straight jacket formula can be laid down to determine
\nwhether a service is naturally bundled in the ordinary
\ncourse of business. Each case has to be individually
\nexamined in the backdrop of several factors some of which
\nare outlined above.”
\nThe above principles explained in the light of what constitutes
\na naturally bundled service can be gainfully adopted
\nto determine whether a particular supply constitutes a
\ncomposite supply under GST and if so what constitutes the
\nprincipal supply so as to determine the right classification
\nand rate of tax of such composite supply.
\nMixed Supply
\nUnder GST, a mixed supply means two or more individual
\nsupplies of goods or services, or any combination thereof,
\nmade in conjunction with each other by a taxable person
\nfor a single <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nThe following illustration given in the Education Guide
\nof CBEC referred to above can be a pointer towards a
\nmixed supply of services: –
\n“A house is given on rent one floor of which is to be used
\nas residence and the other for housing a printing press.
\nSuch renting for two different purposes is not naturally
\nbundled in the ordinary course of business. Therefore,
\nif a single rent deed is executed it will be treated as a
\nservice comprising entirely of such service which attracts
\nhighest liability of service tax. In this case renting for use
\nas residence is a negative list service while renting for
\nnon-residence use is chargeable to tax. Since the latter
\ncategory attracts highest liability of service tax amongst
\nthe two services bundled together, the entire bundle
\nwould be treated as renting of commercial property.”
\nDetermination of tax liability of tax liability of
\nComposite and Mixed Supplies
\nThe tax liability on a composite or a mixed supply sha<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nsupply would qualify as supply of services and accordingly
\nthe provisions relating to time of supply of services would
\nbe applicable. Alternatively, the mixed supply, if involves
\nsupply of goods liable to tax at higher rates than any other
\nconstituent supplies, such mixed supply would qualify as
\nsupply of goods and accordingly the provisions relating to
\ntime of supply of services would be applicable.
\n32
\nComposite Supply and Mixed Supply
\nCertain clarifications on composite and mixed supply
\ngiven by CBEC
\nThe printing industry in India in particular faces a dilemma
\nin determining whether the nature of supply provided is that
\nof goods or services and whether in case certain contracts
\ninvolve both supply of goods and services, whether the
\nsame would constitute a supply of goods or services or if
\nit would be a composite supply and in case it is, then what
\nwould constitute the principal supply. It is to be noted that
\nin case of compos<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nconstitute supply of service falling under heading 9989 of
\nthe scheme of classification of services.
\n33
\nGST FLYERS
\nIn case of supply of printed envelopes, letter cards, printed
\nboxes, tissues, napkins, wall paper etc. falling under Chapter
\n48 or 49, printed with design, logo etc. supplied by the
\nrecipient of goods but made using physical inputs including
\npaper belonging to the printer, predominant supply is that of
\ngoods and the supply of printing of the content [supplied by
\nthe recipient of supply] is ancillary to the principal supply of
\ngoods and therefore such supplies would constitute supply
\nof goods falling under respective headings of Chapter 48 or
\n49 of the Customs Tariff.
\n******
\n34
\nChapter Five
\nTime of Supply in GST
\nTime of Supply
\nIn order to calculate and discharge tax liability it is important
\nto know the date when the tax liability arises i.e. the date
\non which the charging event has occurred. In GST law, i<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\ncases, invoice needs to be issued before or at the time of
\ndelivery of goods or making available goods to the recipient.
\nSimilarly, an invoice for supply of services needs to be issued
\nbefore or after the provision of service but not later than
\nthirty days from the date of provision of service.
\nTime of supply of goods (Default Rule)
\nEarliest of the following dates
\nDate of issue of invoice by the supplier. If invoice
\nis not issued, then the last date on which supplier
\nis legally bound to issue the invoice with respect to
\nthe supply.
\nDate on which supplier receives the payment.
\nSection 148 of the CGST Act, 2017, confers powers on
\nthe government (on the recommendation of the GST
\nCouncil) to notify certain classes of registered persons
\nand the special procedures to be followed by such
\npersons including those with regard to registration,
\nfurnishing of return, payment of tax and administration
\nof such persons. In exercise of powers conferred by this
\nsec<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n66\/2017-Central Tax dated 15.11.2017 may be referred
\nto.
\nTime of supply of services (Default Rule)
\nEarliest of the following dates
\nIf the invoice is issued within the legally prescribed
\nperiod under section 31(2) of the CGST Act, 2017
\nread with Rule 47 of CGST Rules, 2017 (which is
\nthirty days from the date of the supply of service),
\nthen the date of issue of invoice by the supplier or
\ndate of receipt of payment, which ever is earlier.
\nIf the invoice is not issued within the legally
\nprescribed period under section 31(2) of the CGST
\nAct, 2017 then the date of provision of service or
\ndate of receipt of payment, whichever is earlier.
\n37
\nGST FLYERS
\nDate on which recipient shows the receipt of
\nservice in his books of account, in a case aforesaid
\ntwo provisions do not apply.
\nThe supply of services shall deemed to have been made to
\nthe extent it is covered by the invoice or by the payment, as
\nthe case may be. For example, Firm 'A' receives an<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nEarliest of the following dates
\nDate of receipt of goods
\nDate on which payment is entered in the books of
\n38
\nTime of Supply in GST
\naccounts of the recipient or the date on which the
\npayment is debited in his bank account, whichever
\nis earlier.
\nDate immediately following 30 days from the date
\nof issue of invoice or any other legal document in
\nlieu of invoice by the supplier.
\nHowever, if it is not possible to determine the time of
\nsupply in aforesaid manner then the time of supply is the
\ndate of entry of the transaction in the books of accounts of
\nthe recipient of supply.
\nTime of supply of services when tax is to be paid on
\nreverse charge basis
\nEarliest of the following dates
\nDate of payment as entered in the books of account
\nof the recipient or the date on which the payment
\nis debited in his bank account, whichever is earlier
\nDate immediately following 60 days from the date
\nof issue of invoice or any other legal document in
\nlieu of invoice by the sup<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nvouchers for specific supply i.e. supply is identifiable at the
\ntime of issuance of voucher. In trade parlance, these are
\nknown as single purpose vouchers. For example, vouchers
\nfor pressure cookers or Television or for spa or haircut.
\nSimilarly, a voucher can be general purpose voucher which
\ncan be used for multiple purposes. For example, a Rs.
\n1000\/- voucher issued by Shoppers' Stop store can be used
\nfor buying any product at any Shoppes' Stop store. Time of
\nsupply is different in case of single purpose voucher and in
\nthe case of general purpose voucher.
\nTime of supply in the case of single purpose voucher i.e.
\ncase where supply is identifiable at the time of issuance of
\nvoucher is date of issue of voucher. However, in all other
\ncases of supply of vouchers, time of supply is date of
\nredemption of voucher.
\n40
\nTime of Supply in GST
\nTime of supply of goods or services (Residual
\nprovisions)
\nIn case it is not possible to determine th<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nservices
\nWhere there is a change in rate of tax of supply of goods
\nor services, time of supply has to be determined in the
\nfollowing manner:-
\n41
\nGST FLYERS
\nInvoice
\nissued
\nPayment
\nSupply is completed before the change in rate of tax
\nTime of supply Applicable
\nreceived
\nrate of tax
\nbefore date
\nbefore date
\nof change
\nof change
\nin tax rate
\nin tax rate
\nNo
\nNo
\nearliest of the New rate of
\nYes
\nNo
\nNo
\nYes
\ndate of invoice tax
\nor payment
\nDate of issue of Old tax rate
\ninvoice.
\nDate of receipt Old tax rate
\nof payment
\nSupply is completed after the change in rate of tax
\nPayment
\nInvoice
\nTime of sup-
\nApplicable
\nissued before
\nreceived
\nply
\nrate of tax
\ndate of
\nbefore date
\nchange in tax
\nof change in
\nrate
\ntax rate
\nYes
\nYes
\nYes
\nNo
\nNo
\nYes
\nearliest of the Old rate of tax
\ndate of invoice
\nor payment
\nDate of receipt New rate of tax
\nof payment
\nDate of issue New rate of tax
\nof invoice
\nHowever, the special procedure for payment of tax by
\n42
\nTime of Sup<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nAct, 2017. As per the said provisions, the time of supply is
\ndetermined with reference to the time when the supplier
\nreceives payment with respect to the supply as well as a
\nfew other references like issue of invoice, receipt of goods
\netc. In general, the time of supply is earliest of issuance of
\ninvoice or receipt of payment. Therefore, in case of advance
\nreceived for any supply, time of supply is fixed at the point
\nwhen advance is received, irrespective of the fact whether
\nthe supply is made or not. Accordingly, GST needs to be
\npaid with reference to the time at which advance is received,
\nif any, and this requires compliances with a few procedures,
\ndocumentation and reconciliation of taxes paid on the
\nadvances and supply made.
\nAs
\nper the explanation 1 to Section 12 of the CGST Act,
\n2017 a “supply” shall be deemed to have been made to the
\nextent it is covered by the invoice or, as the case may be, the
\npayment. For instance, an advance of Rs. 1<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nthey need to discharge GST liability accordingly. But the
\nsupplier of services are required to pay GST at the time of
\nreceipt of advances.
\nMany of the goods which were in the highest tax bracket of
\n28% have been brought down to the 5\/12\/18% bracket after
\nthe decision of the GST Council in its meeting held on
\n10.11.2017. Notification no. 41\/2017-Central Tax (Rate)
\ndated 14.11.2017 has also been issued giving effect to the
\nrevised rates. It may so happen that advances were given
\nwhen the rate was 28% and the supplier has paid tax on it.
\nSubsequently the rate has been reduced to say 18%. Now,
\nassuming supply happened after the change in tax rate and
\n45
\nGST FLYERS
\nthe invoice for the same was also issued after the change
\nin tax rate, the time of supply, according to section 14 of
\nthe CGST Act, is the date of issue of invoice. Therefore,
\n10% additional tax paid can either be adjusted against the
\nbalance payment<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nd) name, address and Goods and Services Tax Identifica-
\n46
\nGST on advances received for future supplies
\ntion Number or Unique Identity Number, if registered,
\nof the recipient;
\ne) description of goods or services;
\nf) amount of advance taken;
\ng) rate of tax (central tax, State tax, integrated tax, Union
\nterritory tax or cess);
\nh) amount of tax charged in respect of taxable goods or
\nservices (central tax, State tax, integrated tax, Union
\nterritory tax or cess);
\ni) place of supply along with the name of State and its
\ncode, in case of a supply in the course of inter-State
\ntrade or commerce;
\nj) whether the tax is payable on reverse charge basis; and
\nk) signature or digital signature of the supplier or his au-
\nthorised representative.
\nWhat if the rate of tax or place of supply is not
\ndeterminable at the time of receiving advance payment?
\nThe proviso to Rule 50 of the Rules ibid provides that
\nwhere at the time of receipt of advance, if the rate of
\ntax i<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nbut subsequently no supply is made and no tax invoice is
\nissued in pursuance thereof, the said registered person
\nmay issue to the person who had made the payment, a
\nrefund voucher against such payment;
\nThe refund voucher shall be as per Rule 51 of the Rules
\nibid and shall contain following particulars:
\na) name, address and Goods and Services Tax Identifica-
\ntion Number of the supplier;
\nb) a consecutive serial number not exceeding sixteen char-
\nacters, in one or multiple series, containing alphabets
\nor numerals or special characters' hyphen or dash and
\nslash symbolized as “-” and “\/” respectively, and any
\ncombination thereof, unique for a financial year;
\nc) date of its issue;
\nd) name, address and Goods and Services Tax Identifica-
\ntion Number or Unique Identity Number, if registered,
\n48
\nGST on advances received for future supplies
\nof the recipient;
\ne) number and date of receipt voucher issued in accor-
\ndance with the provisio<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nof supply (POS). Table 11B captures adjustment of tax
\npaid on advance received and reported in earlier tax
\n49
\nGST FLYERS
\nperiods against invoices issued in the current tax period.
\nThe details of information relating to advances would
\nbe submitted in Table 11A only if the invoice has not
\nbeen issued in the same tax period in which the advance
\nwas received. Whereas adjustments made in respect
\nof advances received during the earlier tax period,
\nbut invoices issued in the current tax period would be
\nreflected in Table 11B.
\nIt
\nmay
\nbe noted that dates for FORM GSTR-2 and FORM
\nGSTR-3 have not been notified so far.
\nGST on advance received by Composition dealer:
\nA Composition dealer is governed by Section 10 of the
\nAct ibid which states as under:
\n10. (1) Notwithstanding anything to the contrary contained
\nin this Act but subject to the provisions of sub-sections (3)
\nand (4) of section 9, a registered person,
\nwhose aggregate
\nturnover in the preced<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n13.10.2017.Section 10 of the Act ibid also suggests that
\na composition dealer has to pay, in lieu of tax payable by
\nhim, an amount calculated at the prescribed rate. The
\nprescribed rate is applied on the turnover in the state
\nof the composition dealer. Turnover in a state has been
\ndefined in Section 2(112) of the Act ibid as \u201cturnover
\nin State” or “turnover in Union territory” means the
\naggregate value of all taxable supplies (excluding the
\nvalue of inward supplies on which tax is payable by a
\nperson on reverse charge basis) and exempt supplies
\nmade within a State or Union territory by a taxable
\nperson, exports of goods or services or both and inter-
\nState supplies of goods or services or both made from
\nthe State or Union territory by the said taxable person
\nbut excludes central tax, State tax, Union territory.
\nIn Table 6 of the GSTR-4, the return for composition
\ntaxpayer, the tax on outward supplies made shall
\nbe<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\npersons having the same Permanent Account Number, to be
\ncomputed on all India basis but excludes central tax, State tax,
\nUnion territory tax, integrated tax and cess.
\nThe aggregate turnover is a crucial parameter for deciding
\nthe eligibility of a supplier to avail the benefit of exemption
\nthreshold of Rs. 20 Lakhs [Rs. 10 Lakhs in case of special
\ncategory States except J & K] and for determining the
\nthreshold limit for composition levy. Let us dissect the
\ndefinition in small parts to understand the meaning clearly.
\nThere are certain terms used in the definition which need a
\nbit of elaboration.
\nIt
\nmay be noted that the inward supplies on which the
\n53
\nGST FLYERS
\nrecipient is required to pay tax under Reverse Charge
\nMechanism (RCM) does not form part of the 'aggregate
\nturnover'. The law stipulates certain supplies like, Goods
\nTransport Agency services, services received from outside
\nIndia, to name a few<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nHowever, the composition levy would be calculated on the
\nbasis of turnover in the State.
\n******
\n54
\nChapter Eight
\nNon-resident taxable person
\nIntroduction
\nin GST
\n\u201cNon-resident taxable person\u201d means any person who
\noccasionally undertakes transactions involving supply of
\ngoods or services or both, whether as principal or agent or
\nin any other capacity, but who has no fixed place of business
\nor residence in India.
\nA non-resident taxable person making taxable supply in
\nIndia has to compulsorily take registration. There is no
\nthreshold limit for registration. A non-resident taxable
\nperson cannot exercise the option to pay tax under
\ncomposition levy. He has to apply for registration at least
\nfive days prior to commencing his business in India using a
\nvalid passport (and need not have a PAN number in India).
\nA business entity incorporated or established outside India,
\nhas to submit the application for registration along with its
\ntax ide<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nfor registration shall be submitted along with its tax
\nidentification number or unique number on the basis of
\nwhich the entity is identified by the Government of that
\ncountry or its PAN, if available.
\nThe application for registration made by a non-resident
\ntaxable person has to be signed by his authorized signatory
\nwho shall be a person resident in India having a valid
\nPAN. On successful verification of PAN, mobile number
\nand e-mail address the person applying for registration as
\na non-resident taxable person will be given a temporary
\nreference number by the Common Portal for making the
\nmandatory advance deposit of tax for an amount equivalent
\nto the estimated tax liability of such person for the period
\nfor which the registration is sought. The registration
\ncertificate shall be issued electronically only after the said
\n56
\nNon-resident taxable person in GST
\ndeposit appears in his electronic cash ledger. The amount
\ndepo<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nextension.
\nInput Tax Credit: Input tax credit shall not be available
\nin respect of goods or services or both received by a non-
\nresident taxable person except on goods imported by him.
\nThe taxes paid by a non-resident taxable person shall be
\navailable as credit to the respective recipients.
\nReturns: The non-resident taxable person shall furnish
\na return in FORM GSTR-5 electronically through the
\nCommon Portal, either directly or through a Facilitation
\nCentre notified by the Commissioner, including therein
\n57
\nGST FLYERS
\nthe details of outward supplies and inward supplies and
\nshall pay
\nthe tax, interest, penalty, fees or any other amount
\npayable under the Act or these rules within twenty days
\nafter the end of a calendar month or within seven days after
\nthe last day of the validity period of registration, whichever
\nis earlier.
\nRefund: The amount of advance tax deposited by a non-
\nresident taxable person at the time of initial registration<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nfor in case of Special Category States, other than the State
\nof Jammu and Kashmir.). A casual taxable person cannot
\nexercise the option to pay tax under composition levy.
\nHe has to apply for registration at least five days prior to
\ncommencing his business in India. The specified handicraft
\ngoods are as under:
\n59
\nGST FLYERS
\nSr.
\nNo
\n1
\nProducts
\nHSN Code
\nLeather articles (including bags, 4201, 4202,
\npurses, saddlery, harness, gar- 4203
\nments)
\n2 Carved wood products (including 4415, 4416
\nboxes, inlay work, cases, casks)
\n3
\nCarved wood products (including 4419
\ntable and kitchenware)
\nCarved Wood Products
\n4
\n5
\nWood turning and lacquer ware
\n6
\nutility items]
\n7
\n\u00e0\u00bc\u2039
\n4420
\n4421
\nBamboo products [decorative and 46
\nGrass, leaf and reed and fiber 4601, 4602
\nproducts, mats, pouches, wallets
\n4823
\n(handloom products), Including 50,
\n8
\nPaper Mache articles
\n9
\nTextile
\nHandmade shawls,
\n58,61,62,63
\nstoles and scarves
\n10
\nTextiles hand printing<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nAny chapter
\n31
\nWicker willow products
\nAny chapter
\n61
\nGST FLYERS
\n32
\nToran
\n33
\nArticles made of shoal
\nAny chapter
\nAny chapter
\nA casual taxable person has to make an advance deposit of
\ntax in an amount equivalent to his estimated tax liability for
\nthe period for which the registration is sought.
\nRegistration:
\nA casual taxable person has to apply for registration at least
\nfive days prior to the commencement of business. There is
\nno special form to register as a casual taxable person. The
\nnormal FORM GST REG-01 which is used by other
\ntaxable persons can be used for obtaining registration by
\ncasual taxable person also. A casual taxable person, before
\napplying for registration, should declare his Permanent
\nAccount Number, mobile number, e-mail address, State
\nor Union territory in Part A of FORM GST REG-01on
\nthe common portal, either directly or through a Facilitation
\nCentre notified by the Commissioner.
\nThe Permanent Account Number shall be validated o<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\ndeposit of tax for an amount equivalent to the estimated
\ntax liability of such person for the period for which the
\nregistration is sought. The registration certificate shall be
\nissued electronically only after the said deposit appears
\nin his electronic cash ledger. The amount deposited shall
\nbe credited to the electronic cash ledger of casual taxable
\nperson. On depositing the amount, an acknowledgement
\nshall be issued electronically to the applicant in FORM
\nGST REG-02.
\nThe casual taxable person can make taxable supplies only
\nafter the issuance of the certificate of registration. The
\ncertificate of registration shall be valid for the period
\nspecified in the application for registration or ninety days
\nfrom the effective date of registration, whichever is earlier.
\nIn case the casual taxable person intends to extend the period
\nof registration indicated in his application of registration,
\nan application in FORM GST REG-11shall be submitte<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nfore the twentieth day of the following month.
\nd) FORM GSTR-3B to be filed but before the twentieth
\nday of the following month.
\nIt may be mentioned that presently only FORM GSTR-1
\nand FORM GSTR-3B is required to be filed.
\nSpecial Returns procedure for registered persons with
\nturnover up to Rs. 1.5 Crore:
\nThe government has notified that the registered persons
\nhaving aggregate turnover of up to 1.5 crore rupees in the
\npreceding financial year or the current financial year, as
\n64
\nCasual taxable person in GST
\nthe class of registered persons who shall follow the special
\nprocedure as detailed below for furnishing the details of
\noutward supply of goods or services or both.
\nThe said persons shall furnish the details of outward supply
\nof goods or services or both in FORM GSTR-1 effected
\nduring the quarter as specified in column (2) of the Table
\nbelow till the time period as specified in the corresponding
\nentry in column (3) of the said Table, n<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nthe time period as specified in the corresponding entry in
\ncolumn (3) of the said Table, namely
\nSr. Month for which the details
\nNo.
\nin
\nFORM GSTR-1 are fur-
\nnished
\nTime period for
\nfurnishing the
\ndetails in FORM
\nGSTR-1
\n10th January, 2018
\n1
\nJuly – November, 2017
\n2
\nDecember, 2017
\n3
\nJanuary, 2018
\n4
\n10th February,
\n2018
\n10th March, 2018
\n20
\n5
\nFebruary, 2018
\nMarch, 2018
\n10th April, 2018
\n10th May, 2018
\nThe special procedure or extension of the time limit for
\nfurnishing the details or return, as the case may be, under
\nsub-section (2) of section 38 (GSTR-2) and sub-section (1)
\nof section 39 (GSTR-3) of the Act, for the months of July,
\n2017 to March, 2018 shall be subsequently notified in the
\nOfficial Gazette.
\nHowever, a casual tax person shall not be required to file any
\nannual return as required by a normal registered taxpayer.
\nRefund by Casual taxable person:
\nThe casual taxable person is eligible for the refund<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nboth having same PAN as that of the ISD.
\nIt is important to note that the ISD mechanism is meant
\nonly for distributing the credit on common invoices
\npertaining to input services only and not goods (inputs or
\ncapital goods). Companies may have their head office at
\none place and units at other places which may be registered
\nseparately. The Head Office would be procuring certain
\nservices which would be for common utilization of all units
\nacross the country. The bills for such expenses would be
\nraised on the Head Office. But the Head Office itself would
\nnot be providing any output supply so as to utilize the credit
\nwhich gets accumulated on account of such input services.
\n68
\nInput Service Distributor in GST
\nSince the common expenditure is meant for the business
\nof all units, it is but natural that the credit of input services
\nin respect of such common invoices should be apportioned
\nbetween all the consuming units. ISD mechanism enables
\nsuch proportionate distribut<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\ntax credit. The input tax credit on account of central tax
\nand State tax or UT tax in respect of recipient located in
\nthe same state shall be distributed as central tax and State
\ntax or UT tax respectively. The input tax credit on account
\nof central tax and State tax or UT tax shall, in respect of a
\nrecipient located in a State or Union territory other than
\nthat of the ISD, be distributed as integrated tax and the
\n69
\nGST FLYERS
\namount to be so distributed shall be equal to the aggregate
\nof the amount of input tax credit of central tax and State tax
\nor Union territory tax that qualifies for distribution to such
\nrecipient. The input tax credit on account of integrated tax
\nshall be distributed as integrated tax.
\nLet's take an example to understand this concept. The
\nCorporate office of ABC Ltd., is at Bangalore, with its
\nbusiness locations of selling and servicing of goods at
\nBangalore, Chennai, Mumbai and Kolkata. Software<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nare attributable to more than one recipient of credit, the
\ndistribution shall be in the pro-rata basis of turnover in the
\n70
\nInput Service Distributor in GST
\nState\/Union Territory. For example, if an ISD has 4 units
\nacross the country. However, if a particular input service
\npertains exclusively to only one unit and the bill is raised
\nin the name of ISD, the ISD can distribute the credit only
\nto that unit and not to other units. If the input services are
\ncommon for all units, then it will be distributed according
\nto the ratio of turnover of all the units. The following
\nillustration will clarify the issue
\nM\/s XYZ Ltd, having its head Office at Mumbai, is registered
\nas ISD. It has three units in different states namely \u2018Mumbai\u2019,
\nJabalpur' and 'Delhi' which are operational in the current
\nyear. M\/s XYZ Ltd furnishes the following information for
\nthe month of July, 2017 & asks for permission to distribute
\nthe below input t<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nthe turnover of all the units is as under: –
\na) Unit Mumbai: (50000000\/100000000) *1200000 =
\n72
\nInput Service Distributor in GST
\nRs.600000
\nb) Unit Jabalpur: (30000000\/100000000) *1200000
\nRs.360000
\nc) Unit Delhi: (20000000\/100000000) *1200000
\nRs.240000
\n=
\n=
\nAn ISD will have to file monthly returns in GSTR-6
\nwithin thirteen days after the end of the month and will
\nhave to furnish information of all ISD invoices issued. The
\ndetails in the returns will be made available to the respective
\nrecipients in their GSTR 2A. The recipients may include
\nthese in its GSTR-2 and take credit. An ISD shall not be
\nrequired to file Annual return. An ISD cannot accept any
\ninvoices on which tax is to be discharged under reverse
\ncharge mechanism. This is because the ISD mechanism is
\nonly to facilitate distribution of credit of taxes paid. The
\nISD itself cannot discharge any tax liability (as person liable
\nto pay tax) and remit tax to government account. If ISD<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\na registered taxable person, whose aggregate turnover does
\nnot exceed Rs. One crores (Rs. 75 lakh for special category
\nStates except J & K and Uttrakhand) in the financial year
\n2016-17 may opt
\nmay opt
\nfor this scheme.
\nA taxpayer registered under composition levy scheme
\n74
\nComposition Levy Scheme in GST
\nhas to pay an amount equal to certain fixed percentage of
\nhis annual turnover as tax to the government. This tax has
\nto be paid on quarterly basis. Such taxpayer does not have to
\nmaintain elaborate accounts and records and instead of two
\nmonthly statements and a return (which a normal taxpayer
\nhas to file under GST), he has to file a simple quarterly
\nreturn in FORM GSTR-04. The time Limit for GSTR-4
\nfor the quarter July to September, 2017 has been extended
\nto 24th December, 2017 vide Notification No. 59\/2017-
\nCGST.
\nHowever, upon opting for this scheme, he cannot
\nissue taxable invoice under GST law and can neither collect
\nGST from his customers nor can claim I<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\ndeposits, loans or advances shall not be taken into
\naccount.
\nRegistration and intimation under the scheme.
\nRegistration under GST law is compulsory for opting for
\nthe Composition scheme. A person who is registered under
\nexisting laws and has obtained a provisional registration
\nunder GST has to file an electronic intimation in the
\nFORM GST CMP-01 on the common portal (www.
\ngstn.gov.in). He can file this intimation either before the
\nappointed day (i.e. day on which GST came into force
\n01\/07\/2017) or within 30 days (or as extended by the
\ncommissioner) of the appointed day (01\/07\/2017), (which
\nwas later extended up to 16\/08\/2017). If he intimates after
\nthe appointed day, he shall not collect GST and issue bill of
\nsupply from the appointed day. Further such person has to
\nfurnish a statement containing details of stock including the
\ninward supply of goods received from unregistered persons,
\nheld by him on the day preceding the da<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nA person having a single PAN and registered in more than
\none State under GST can opt for the scheme, provided
\nhe meets all the conditions of the scheme, only if all such
\nregistered persons opt for the Composition scheme. A
\nregistered person cannot choose to opt for the Composition
\nscheme in one state and not in other states. Further, an
\nintimation for withdrawal from the scheme; or denial of the
\nscheme with respect to any one registered person under the
\nsame PAN will be applicable for all such registered persons.
\n4. Effective Date for composition levy
\n77
\nGST FLYERS
\nEffective date for the taxpayers who are already registered
\nunder the existing laws and obtained provisional registration
\nunder GST law and intimates about opting for the scheme
\neither before the appointed day (01\/07\/2017) or within
\n30 days (or as extended) of the appointed day, shall be the
\nappointed date.
\nEffective date for registered taxpayer who intimates
\nabout opting for the schem<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\niv.
\nV.
\nvi.
\nvii.
\nviii.
\nix.
\nComposition Levy Scheme in GST
\nof business or residence in India.
\nA supplier of services except a person engaged in
\nsupply of restaurant service.
\nA person engaged in providing inter-state supply of
\ngoods.
\nA person engaged in supply of non-taxable goods i.e.
\ngoods which are not taxable under GST law
\nA person engaged in supply of goods through an
\nElectronic Commerce Operator (ECO) who is re-
\nquired to collect Tax at source under section 52 of
\nthe CGST Act.
\nThe goods held in stock by him on the appointed day
\nhave not been purchasedin the course of inter-State trade
\nor commerce or imported from a place outside Indiaor
\nreceived from his branch situated outside the State or
\nfrom his agent or principaloutside the State where reg-
\nistration under the Composition Scheme has been taken.
\nthe goods held in stock by him have
\nbeen purchased from
\nsupplier and where purchased, he pays the tax under the
\nreverse charge mechanism.
\nhave not
\nan<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nhas to pay 1% (0.5% CGST and 0.5% SGST\/
\nUTGST) of turnover of taxable supplies of goods
\nin a state or Union Territory, as the case may be.
\nBill of Supply
\nA taxable person opting for the scheme has to issue bill of
\n80
\nComposition Levy Scheme in GST
\nsupply as he is not eligible to issue taxable invoice under
\nGST. He has to mention the words “composition taxable
\nperson, not eligible to collect tax on supplies” at the top of
\nevery bill of supply issued by him.
\n8.
\nConditions & Restrictions under the scheme
\nA person opting for the scheme has to adhere to the
\nfollowing conditions
\nIssue bill of supply in the prescribed manner
\nPay all taxes on purchases including taxes to be
\npaid on reverse charge basis
\nDon't claim input tax credit of purchases
\nMention the words “composition taxable person”
\non every notice board or signboard displayed at the
\nprominent place at his every place of business.
\nWhere ever a person, registered under any of the\n<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nshall also file an intimation for withdrawal from the scheme.
\n10.
\nConditions which may render a person in-eligible
\nfor the scheme
\nA person is in-eligible for the scheme, if
\n11.
\nhe wrongly opts for the scheme.
\nhis turnover exceeds Rs. One crore (In the case of
\n9 North East and special category states, namely
\nArunachal Pradesh, Assam, Manipur, Meghalaya,
\nMizoram, Nagaland, Sikkim, Tripura and
\nHimachal Pradesh, the limit of turnover is Rs. 75
\nLakhs in the preceding financial year)
\nhe contravenes eligibility criteria or any of the
\nconditions of the scheme
\nWithdrawal from the composition levy scheme and
\nprocedure thereafter.
\nA registered person who intends to withdraw from the
\nscheme has to file an intimation for withdrawal from the
\n82
\nComposition Levy Scheme in GST
\nscheme in the FORM GST CMP-04, before the date of
\nsuch withdrawal. A registered person who ceases to satisfy
\nany provision of the scheme has to file an intimation for
\nwithdrawal f<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nthat the registered person has wrongly opted for the scheme
\nor he has contravened the provisions of the scheme, then
\nhe will seek a reply by issuing a show cause notice to such
\nperson in the FORM GST CMP-05. This notice is to be
\nreplied within 15 days of receipt of the same. Thereafter
\nwithin 30 days of receipt of reply, officer has to issue an
\norder in FORM GST CMP-07, either accepting the reply
\nor denying the option to pay tax under the scheme.
\n83
\nGST FLYERS
\nSubsequently the registered person who has been denied
\nthe option to pay tax under the scheme has to forward a
\nstatement in FORM GST ITC-01 containing details
\nof the stock of the inputs and inputs contained in semi-
\nfinished or finished goods held in stock by him on the date
\non which the option is denied. The said statement has to be
\nsubmitted on the common portal within 30 days from the
\ndate of denial order passed in the FORM GST CMP-07.
\nThe delinquent taxpayer will be lia<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nperson to a registered person is covered.
\nAs
\nper the provisions of section 9(3) of CGST \/ SGST
\n(UTGST) Act, 2017 \/ section 5(3) of IGST Act, 2017, the
\nGovernment may, on the recommendations of the Council,
\nby notification, specify categories of supply of goods or
\nservices or both, the tax on which shall be paid on reverse
\n85
\nGST FLYERS
\ncharge basis by the recipient of such goods or services or
\nboth and all the provisions of this Act shall apply to such
\nrecipient as if he is the person liable for paying the tax in
\nrelation to the supply of such goods or services or both.
\nSimilarly, section 9(4) of CGST \/ SGST (UTGST) Act,
\n2017 \/ section 5(4) of IGST Act, 2017 provides that the tax
\nin respect of the supply of taxable goods or services or both
\nby a supplier, who is not registered, to a registered person
\nshall be paid by such person on reverse charge basis as the
\nrecipient and all the provisions of this Act shall apply to
\nsuch recipient as if he is the person liab<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\ndeductor in terms of notification no.9\/2017-Central Tax
\n(Rate) dated 28.06.2017. Thus, Government entities
\n86
\nReverse Charge Mechanism in GST
\nwho are TDS Deductors under Section 51 of CGST Act,
\n2015, need not pay GST under reverse charge in case of
\nprocurements from unregistered suppliers.
\nRegistration: A person who is required to pay tax under
\nreverse charge has to compulsorily register under GST
\nand the threshold limit of Rs. 20 lakh (Rs. 10 lakh for
\nspecial category states except J & K) is not applicable to
\nthem.
\nITC:
\nA supplier cannot take ITC of GST paid on goods or
\nservices used to make supplies on which recipient is liable
\nto pay tax.
\nTime of Supply
\nThe Time of supply is the point when the supply is liable
\nto GST. One of the factor relevant for determining time
\nof supply is the person who is liable to pay tax. In reverse
\ncharge, recipient is liable to pay GST. Thus time of supply
\nfor supplies under reverse charge is different from the
\nsupplies w<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nin the invoice is payable on reverse charge. Similarly,
\nthis also needs to be mentioned in receipt voucher
\nas well as refund voucher, if tax is payable on reverse
\ncharge.
\nMaintenance of accounts by registered persons:
\nEvery registered person is required to keep and
\nmaintain records of all supplies attracting payment
\nof tax on reverse charge
\nAny amount payable under reverse charge shall be
\npaid by debiting the electronic cash ledger. In other
\nwords, reverse charge liability cannot be discharged
\nby using input tax credit. However, after discharging
\nreverse charge liability, credit of the same can be
\ntaken by the recipient, if he is otherwise eligible.
\n88
\n4.
\n5.
\nReverse Charge Mechanism in GST
\nInvoice level information in respect of all supplies
\nattracting reverse charge, rate wise, are to be furnished
\nseparately in the table 4B of GSTR-1.
\nAdvance paid for reverse charge supplies is also
\nleviable to GST. The person making advance payment\n<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nNo.
\nof supply of
\nSupplier of
\nservice
\nRecipient of
\nservice
\nService
\n90
\n90
\n1
\nAny service
\nAny person
\nsupplied by any
\nperson who
\nlocated in a
\nReverse Charge Mechanism in GST
\nAny person
\nlocated in
\nthe taxable
\nnon-taxable
\nis located in
\na non-taxable
\nterritory to any
\nperson other
\nthan non-
\ntaxable online
\nrecipient.
\nterritory
\nterritory other
\nthan non-
\ntaxable online
\nrecipient.
\n2
\nGTA Services
\nGoods
\nTransport
\nAgency (GTA)
\nwho has not
\npaid integrated
\ntax at the rate
\nof 12%
\nAny factory,
\nsociety, co-
\noperative
\nsociety,
\nregistered
\nperson, body
\ncorporate,
\npartnership
\nfirm, casual
\ntaxable person;
\nlocated in
\nthe taxable
\nterritory
\n91
\nGST FLYERS
\n3
\nLegal Services An individual Any business
\nby advocate
\nadvocate
\nentity located
\nincluding a
\nin the taxable
\nterritory
\nsenior advocate
\nor firm of
\nadvocates
\nAny business
\n4
\nServices
\nAn arbitral
\nsupplied by an
\ntribunal
\nentity located
\narbitral tribunal
\nto a business
\nin the taxable
\nterrit<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n7
\nServices
\nsupplied by a
\ndirector of a
\ncompany or a
\nbody corporate
\nto the said
\ncompany or the
\nA director of a The
\nThe company
\ncompany or a
\nor a body
\ncorporate
\nlocated in
\nbody corporate
\nthe taxable
\nterritory
\nbody corporate
\n8
\nServices
\nAn insurance
\nAny person
\nsupplied by
\nagent
\nan insurance
\nagent to any
\nperson carrying
\non insurance
\nbusiness
\n9
\nServices
\nA recovery
\nsupplied by a
\nagent
\nrecovery agent
\nto a banking
\ncompany or
\na financial
\ninstitution or
\na non-banking
\nfinancial
\ncompany
\ncarrying on
\ninsurance
\nbusiness,
\nlocated in
\nthe taxable
\nterritory
\nA banking
\ncompany or
\na financial
\ninstitution or
\na non-banking
\nfinancial
\ncompany,
\nlocated in
\nthe taxable
\nterritory
\n94
\n24
\nReverse Charge Mechanism in GST
\nlocated in
\n10
\nServices
\nA person
\nsupplied by a
\nperson located
\nin non- taxable
\nterritory
\nby way of
\ntransportation
\nof goods by a
\nvessel from a
\nplace outside
\nIndia up to the
\ncustoms station
\nof clearance in
\nIndia
\nnon-tax<\/p>\n
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\nissued by a seller to a buyer. It identifies both the trading
\nparties and lists, describes, and quantifies the items sold,
\nshows the date of shipment and mode of transport, prices
\nand discounts, if any, and delivery and
\npayment terms.
\nIn certain cases, (especially when it is signed by the seller
\nor seller's agent), an invoice serves as a demand for payment
\nand becomes a document of title when paid in full. Types
\nof invoice include commercial invoice, consular invoice,
\ncustoms invoice, and proforma invoice. It is also called a bill
\nof sale or contract of sale.
\nInvoice under GST
\nUnder the GST regime, an \u201cinvoice\u201d or \u201ctax invoice\u201d means
\nthe tax invoice referred to in section 31 of the CGST
\nAct, 2017. This section mandates issuance of invoice or
\na bill of supply for every supply of goods or services. It
\nis not necessary that only a person supplying goods or
\n97
\nGST FLYERS
\nservices need to issue invoice. The GST law m<\/p>\n
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\nUnder GST a tax invoice is an important document. It
\nnot only evidences supply of goods or services, but is also
\nan essential document for the recipient to avail Input Tax
\nCredit (ITC). A registered person cannot avail input tax
\ncredit unless he is in possession of a tax invoice or a debit
\nnote.
\nGST is chargeable at the time of supply. Invoice is
\nan important indicator of the time of supply. Broadly
\nspeaking, the time of supply of goods or services is the date
\nof issuance of invoice or receipt of payment whichever is
\n98
\nTax Invoice and other such instruments in GST
\nearlier. However, a special procedure for payment of tax
\nhas been prescribed for registered persons (other than
\ncomposition dealers) supplying goods. Such category of
\npersons (suppliers of goods other than composition dealers)
\nneed to pay GST only at the time of issue of invoice
\nirrespective of when they receive payment.
\nThus the importance of invoice under GST cannot be over-\n<\/p>\n
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\nInvoice rules makes it mandatory for an invoice to have
\nfollowing fields (only applicable field are to be filled):
\na) name, address and GSTIN of the supplier;
\nb) a consecutive serial number, in one or multiple series,
\ncontaining alphabets or numerals or special characters
\nhyphen or dash and slash symbolised as \u201c-\u201d and \u201c\/\u201d re-
\nspectively, and any combination thereof, unique for a
\nfinancial year;
\nc) date of its issue;
\nd) name, address and GSTIN or UIN, if registered, of the
\nrecipient;
\ne) name and address of the recipient and the address of
\ndelivery, along with the name of State and its code, if
\nsuch recipient is un-registered and where the value of
\ntaxable supply is fifty thousand rupees or more;
\nf) HSN code of goods or Accounting Code of services;
\ng) description of goods or services;
\nh) quantity in case of goods and unit or Unique Quantity
\nCode thereof;
\ntotal value of supply of goods or services or both;\n<\/p>\n
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\n-hyphen or dash and slash symbolised as “-” and “\/”re-
\nspectively, and any combination thereof, unique for a
\nfinancial year;
\nc) date of its issue
\nd) name,
\naddress and GSTIN or UIN, if registered, of the
\nrecipient;
\ne) HSN Code of goods or Accounting Code for services;
\nf) description of goods or services or both;
\n101
\nGST FLYERS
\ng) value of supply of goods or services or both taking into
\naccount discount or abatement, if any; and
\nh) signature or digital signature of the supplier or his au-
\nthorized representative
\nServices
\nA registered person supplying taxable services shall, before
\nor after the provision of service but within a prescribed
\nperiod, issue a tax invoice, showing the description, value,
\ntax charged thereon and such other particulars as has been
\nprescribed in the Invoice Rules.
\nThe Government may, on the recommendations of the
\nCouncil, by notification and subject to such conditions as
\nmay be mentioned therein, specify the categories of service<\/p>\n
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\nregistration has to apply for registration within 30 days of
\nbecoming liable for registration. When such an application is
\nmade within the time period and registration is granted, the
\neffective date of registration is the date on which the
\nbecame liable for registration. Thus there would be a time
\nlag between the date of grant of certificate of registration
\nand the effective date of registration. For supplies made by
\nsuch person during this intervening period, the law enables
\nissuance of a revised invoice, so that ITC can be availed by
\nthe recipient on such supplies.
\nperson
\nReceipt Voucher\/ Refund voucher on receipt of advance
\npayment
\nWhenever a registered person receives an advance payment
\nwith respect to any supply of goods or services or both,
\nhe has to issue a receipt voucher or any other document,
\ncontaining such particulars as has been prescribed in the
\nInvoice Rules, evidencing receipt of such payment.
\nWhere any such receipt vouche<\/p>\n
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\ntrade or commerce;
\nj) whether the tax is payable on reverse charge basis; and
\nk) signature or digital signature of the supplier or his au-
\nthorized representative.
\nIt has also been provided in the Invoice Rules that if at the
\ntime of receipt of advance,
\ni.
\nthe rate of tax is not determinable; the tax may be
\npaid @18%;
\n104
\nTax Invoice and other such instruments in GST
\nii.
\nthe nature of supply is not determinable, the same
\nshall be treated as inter-State supply.
\nInvoice and payment voucher by a person liable to pay
\ntax under reverse charge
\nA registered person liable to pay tax under reverse charge
\n(both for supplies on which tax is payable under reverse
\ncharge mechanism and supplies received from unregistered
\npersons) has to issue an invoice in respect of goods or service
\nor both received by him. Such a registered person in respect
\nof such supplies also has to issue a payment voucher at the
\ntime of making payment to the supplier.
\nInvoice i<\/p>\n
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\nbefore the completion of the supply, the invoice shall be
\nissued at the time when the supply ceases and such invoice
\nshall be issued to the extent of the supply made before such
\ncessation.
\nSale on approval basis
\nWhere the goods being sent or taken on approval for sale or
\nreturn are removed before the supply takes place, the invoice
\nshall be issued before or at the time of supply or six months
\nfrom the date of removal, whichever is earlier.
\nAmount of tax to be indicated in invoice
\nWhere any supply is made for a consideration, every person
\nwho is liable to pay tax for such supply has to prominently
\nindicate in all documents relating to assessment, tax invoice
\nand other like documents, the amount of tax which shall
\nform part
\nof the price at which such supply is made.
\nCredit and Debit Notes
\nIn cases where tax invoice has been issued for a supply and
\nsubsequently it is found that the value or tax charged in that
\ninvoice is more than what is actual<\/p>\n
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\nAny registered person who issues a debit note in relation to
\na supply of goods or services or both shall declare the details
\nof such debit note in the return for the month during which
\nsuch debit note has been issued and the tax liability shall be
\nadjusted in such manner as may be prescribed.
\nA revised tax invoice and credit or debit note has to contain
\nthe following particulars –
\na) the word \u201cRevised Invoice”, wherever applicable, indi-
\ncated prominently;
\nb) name, address and GSTIN of the supplier;
\nc) nature of the document;
\n107
\nGST FLYERS
\nd) a consecutive serial number containing alphabets or nu-
\nmerals or special characters -hyphen or dash and slash
\nsymbolised as “-” and “\/”respectively, and any combina-
\ntion thereof, unique for a financial
\ne) date of issue of the document;
\nyear;
\nf) name, address and GSTIN or UIN, if registered, of the
\nrecipient;
\ng) name and address of the recipient and the address of
\ndelivery, <\/p>\n
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\nFOR SUPPLIER.
\nThe serial number of invoices issued during a tax period
\nshall be furnished electronically through the Common
\nPortal in FORM GSTR-1.
\nTax invoice in Special Cases
\nAn ISD invoice or, as the case may be, an ISD credit note
\nissued by an Input Service Distributor shall contain the
\nfollowing details:
\na) name, address and GSTIN of the Input Service Dis-
\ntributor;
\nb) a consecutive serial number containing alphabets or
\nnumerals or special characters hyphen or dash and
\nslash symbolised as, “-“,”\/”, respectively, and any com-
\nbination thereof, unique for a financial year;
\nc) date of its issue;
\nd) name,
\naddress and GSTIN of the recipient to whom
\nthe credit is distributed;
\ne) amount of the credit distributed; and
\n109
\nGST FLYERS
\nf) signature or digital signature of the Input Service Dis-
\ntributor or his authorized representative.
\nTax Invoice in special cases
\nWhere the Input Service Distributor is an office of a
\nbanking company or a financ<\/p>\n
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\nregistration number of goods carriage in which the goods
\nare transported, details of goods transported, details of
\nplace of origin and destination, GSTIN of the person liable
\nfor paying tax whether as consignor, consignee or goods
\ntransport agency, and also containing other information as
\nprescribed under rule 1 of Invoice Rules.
\n110
\nTax Invoice and other such instruments in GST
\nWhere the supplier of taxable service is supplying passenger
\ntransportation service, a tax invoice shall include ticket in
\nany form, by whatever name called, whether or not serially
\nnumbered, and whether or not containing the address of
\nthe recipient of service but containing other information as
\nprescribed under rule 1 of Invoice Rules.
\nTransportation of goods without an invoice
\nIn the following cases it is permissible for the consignor
\nto issue a delivery challan in lieu of invoice at the time of
\nremoval of goods:
\na) supply of liquid gas where the quantity at t<\/p>\n
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\nof supply of goods, in the following manner:-
\na) the original copy being marked as ORIGINAL FOR
\nCONSIGNEE;
\nb) the duplicate copy being marked as DUPLICATE
\nFOR TRANSPORTER; and
\nc) the triplicate copy being marked as TRIPLICATE
\nFOR CONSIGNER.
\nWhere goods are being transported on a delivery challan
\nin lieu of invoice, the same shall be declared in FORM
\n[WAYBILL].
\nWhere the goods being transported are for the purpose
\nof supply to the recipient but the tax invoice could not be
\nissued at the time of removal of goods for the purpose of
\nsupply, the supplier shall issue a tax invoice after delivery of
\ngoods.
\n112
\nTax Invoice and other such instruments in GST
\nWhere the goods are being transported in a semi knocked
\ndown or completely knocked down condition,
\na) the supplier shall issue the complete invoice before dis-
\npatch of the first consignment;
\nb) the supplier shall issue a delivery challan for each of
\nthe subsequent consignments, givin<\/p>\n
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\nto as rules) provide that every registered person shall
\nkeep and maintain all records at his principal place
\nof business. It also cast, responsibility on owner or
\noperator of warehouse or godown or any
\nother place
\nused for storage of goods and on every transporter,
\nirrespective of whether he is a registered person
\nor not, to maintain specified records. The section
\nalso empowers the Commissioner to notify a class
\n114
\nAccounts and Records in GST
\n3.
\nof taxable persons to maintain additional accounts
\nor documents for specified purpose or to maintain
\naccounts in other prescribed manner. It also provides
\nthat every registered person whose turnover during
\na financial year exceeds the prescribed limit shall get
\nhis accounts audited by a chartered accountant or a
\ncost accountant.
\nSection 35 of the CGST Act, 2017 provides that
\nevery registered person shall keep and maintain, at
\nhis principal place of business, as mentioned in the
\ncertificate of registration, a tr<\/p>\n
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\nmaintained by every registered person:
\na) accounts of stock in respect of goods received and sup-
\nplied; and such account shall contain particulars of the
\nopening balance, receipt, supply, goods lost, stolen, de-
\nstroyed, written off or disposed of by way of gift or free
\nsamples and balance of stock including raw materials,
\nfinished goods, scrap and wastage thereof;
\nb)
\nc)
\nd)
\na separate account of advances received, paid and ad-
\njustments made thereto;
\nan account, containing the details of tax payable, tax
\ncollected and paid, input tax, input tax credit claimed,
\ntogether with a register of tax invoice, credit note, debit
\nnote, delivery challan issued or received during any tax
\nperiod [not required for person paying tax under sec-
\ntion 10];
\nnames and complete addresses of suppliers from whom
\ngoods or services, chargeable to tax under the Act, have
\nbeen received;
\ne) names and complete addresses of the persons to whom
\nsup<\/p>\n
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\nworks contract; and
\nthe names and addresses of suppliers from whom
\nhe has received goods or services.
\nThe books of account shall be kept at the principal
\nplace of business and at every related place(s) of
\nbusiness mentioned in the certificate of registration
\nand such books of account shall include any
\n117
\nGST FLYERS
\n7.
\n8.
\nelectronic form of data stored on any electronic
\ndevices. The data so stored shall be authenticated by
\nway of digital signature. Unless proved otherwise, if
\nany documents, registers, or any books of account
\nbelonging to a registered person are found at
\nany premises other than those mentioned in the
\ncertificate of registration, they shall be presumed to
\nbe maintained by the said registered person. If any
\ntaxable goods are found to be stored at any place(s)
\nother than those declared without the cover of any
\nvalid documents, the proper officer shall determine
\nthe amount of tax payable on such goods <\/p>\n
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\nbills of supply, credit and debit notes,
\nand delivery
\nchallans relating to stocks, deliveries, inward supply
\nand outward supply shall be preserved for seventy-
\ntwo months (six years) from the due date of
\nfurnishing of annual return for the year pertaining
\nto such accounts and records and shall be kept at
\nevery related place of business mentioned in the
\ncertificate of registration.
\nA registered person, who is a party to an appeal
\nor revision or any other proceedings whether
\nfiled by him or by the Commissioner, or is under
\ninvestigation for an offence, has to retain the
\nrecords pertaining to the subject matter of such
\nappeal or revision or proceedings or investigation
\nfor a period of one year after final disposal of such
\nappeal or revision or proceedings or investigation,
\nor for the period specified above (seventy-two
\nmonths), whichever is later.
\nElectronic Records: The following requirements
\nhave been prescribed for maintenance of records
\nin electronic form.
\nPr<\/p>\n
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\nenrolment number shall be generated and communicated
\nto them. A person enrolled in any other State or Union
\nterritory shall be deemed to be enrolled in the State or
\nUnion Territory.
\n12. Every person engaged in the business of transporting
\ngoods shall maintain records of goods transported,
\ndelivered and goods stored in transit by him and
\nfor each of his branches. Every owner or operator
\nof a warehouse or godown shall maintain books
\nof accounts, with respect to the period for which
\nparticular goods remain in the warehouse, including
\n120
\nAccounts and Records in GST
\nthe particulars relating to dispatch, movement,
\nreceipt, and disposal of such goods. The goods shall
\nbe stored in such manner that they can be identified
\nitem wise and owner wise and shall facilitate any
\nphysical verification or inspection, if required at any
\ntime.
\n******
\n121
\nChapter Fifteen
\nCredit Note in GST
\nIntroduction:
\nA supplier of goods or services or both <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nor services or both and the taxable value or tax charged
\nin that tax invoice is found to exceed the taxable value or
\ntax payable in respect of such supply, or where the goods
\nsupplied are returned by the recipient, or where goods or
\nservices or both supplied are found to be deficient, the
\nregistered person, who has supplied such goods or services
\nor both, may issue to the recipient what is called as a credit
\nnote containing the prescribed particulars.
\nFormat
\nThere is no prescribed format but credit note issued by a
\nsupplier must contain the following particulars, namely: –
\na)
\nname, address and Goods and Services Tax Identifica-
\ntion Number of the supplier;
\nb) nature of the document;
\nc) a consecutive serial number not exceeding sixteen char-
\nacters, in one or multiple series, containing alphabets or
\nnumerals or special characters hyphen or dash and slash
\nsymbolised as “-” and “\/” respectively, and any combina-
\ntion thereof, u<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nreturn, whichever is earlier. In other words, the output tax
\nliability cannot be reduced in cases where credit note has
\nbeen issued after September.
\nThe output tax liability of the supplier gets reduced once
\nthe credit note is issued and it is matched. The details of
\nthe credit note relating to outward supply furnished by the
\nsupplier for a tax period shall, be matched-
\na) with the corresponding reduction in the claim for
\n124
\nCredit Note in GST
\ninput tax credit by the recipient in his valid return
\nfor the same tax period or any subsequent tax peri-
\nod; and
\nb) for duplication of claims for reduction in output tax
\nliability.
\nThe claim for reduction in output tax liability by the supplier
\nthat matches with the corresponding reduction in the claim
\nfor input tax credit by the recipient shall be finally accepted
\nand communicated to the supplier. The reduction in output
\ntax liability of the supplier shall not be permitted, if the<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n125
\nGST FLYERS
\nin his return for the month in which such duplication is
\ncommunicated.
\nRecords
\nThe records of the credit notes have to be retained until
\nthe expiry of seventy-two months from the due date of
\nfurnishing of annual return for the year pertaining to such
\naccounts and records. Where such accounts and documents
\nare maintained manually, it should be kept at every related
\nplace of business mentioned in the certificate of registration
\nand shall be accessible at every related place of business where
\nsuch accounts and documents are maintained digitally.
\nConclusion
\nThe credit note is therefore a convenient and legal method
\nby which the value of the goods or services in the original
\ntax invoice can be amended or revised. The issuance of the
\ncredit note will easily allow the supplier to decrease his tax
\nliability in his returns without requiring him to undertake
\nany tedious
\nprocess of refunds.
\n******
\n126
\nChapter Sixteen
\nDebit Note in GST
\nIntrod<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\ntax payable in respect of such supply, the registered person,
\nwho has supplied such goods or services or both, shall issue
\nto the recipient a debit note containing the prescribed
\nparticulars.
\nFormat:
\nThere is no prescribed format but debit note issued by a
\nsupplier must contain the following particulars, namely: –
\na) name,
\naddress and Goods and Services Tax Identifica-
\ntion Number of the supplier;
\nb) nature of the document;
\nc) a consecutive serial number not exceeding sixteen char-
\nacters, in one or multiple series, containing alphabets or
\nnumerals or special characters hyphen or dash and slash
\nsymbolised as “-” and “\/” respectively, and any combina-
\ntion thereof, unique for a financial year;
\nd) date of issue;
\ne) name, address and Goods and Services Tax Identifica-
\ntion Number or Unique Identity Number, if registered,
\nof the recipient;
\nf) name and address of the recipient and the address of
\ndelivery, along with the name of State and its code, if
\nsuch recipient <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nevery related place of business where such accounts and
\ndocuments are maintained digitally.
\nConclusion:
\nThe debit note or a supplementary invoice is therefore a
\nconvenient and legal method by which the value of the
\ngoods or services in the original tax invoice can be enhanced.
\nThe issuance of the debit note will easily allow the supplier
\n129
\nGST FLYERS
\nto pay his enhanced tax liability in his returns without
\nrequiring him to undertake any other tedious process.
\n******
\n130
\nChapter Seventeen
\nElectronic Cash\/Credit
\nLedgers and Liability Register
\nin GST
\nIntroduction:
\nOn the common portal each registered taxpayer will have
\none electronic register called the Electronic liability register
\nand two electronic ledgers namely Electronic Cash Ledger
\nand Electronic Credit Ledger. These register and ledgers will
\nreflect the amount of tax payable, the amount available to
\nsettle the tax liability online, and input credit balance. This
\nis a h<\/p>\n