Goods and Services Tax Laws, Concepts & Impact Analysis for Traders and Service Providers

Contents at a glance About the authors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix Table of contents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xv PART A

CONCEPTUAL UNDERSTANDING OF GST LAW Chapter 1

Overview of Goods & Services Tax (GST). . . . . . . . . . . . . . . . . . . . . . . 3

Chapter 2

GST Terminology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Chapter 3

Constitutional Framework of GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

Chapter 4

Charge of GST Including Exemption . . . . . . . . . . . . . . . . . . . . . . . . . . 95

Chapter 5

Supply of Goods and Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105

Chapter 6

Time of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119

Chapter 7

Place of Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133

Chapter 8

Composition Levy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153

Chapter 9

Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161

Chapter 10

Valuation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175

Chapter 11

Payment under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183

Chapter 12

Returns under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195

Chapter 13

E-commerce Transactions under GST. . . . . . . . . . . . . . . . . . . . . . . . . 213

Chapter 14

Invoices, Debit and Credit Notes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219

Chapter 15

Input Tax Credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237

Chapter 16

Job Work under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253

Chapter 17

Assessments under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259

Chapter 18

Refunds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271

Chapter 19

Transitional Provisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285

Chapter 20

Overview of IGST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303

Chapter 21

Overview of UTGST Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319

Chapter 22

Overview of SGST Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 329

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GST - Laws, Concepts & Impact Analysis for Traders and Service Providers

PART B

GST – IMPACT ANALYSIS ON SELECT INDUSTRIES Chapter 1

Services and Service Providers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337

Chapter 2

Small Businesses (SSIs, Traders and Retailers). . . . . . . . . . . . . . . . . . 361

Chapter 3

Banking and Financial Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 389

Chapter 4

Railway Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 415

Chapter 5

Insurance Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 441

Chapter 6

Hotels and Restaurants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 461

Chapter 7

Education and Commercial Coaching. . . . . . . . . . . . . . . . . . . . . . . . . 477

Chapter 8

Registrar to an Issue (RTI) and Share Transfer Agents (STA). . . . . . . 489

Chapter 9

Media and Entertainment and Paper Industry. . . . . . . . . . . . . . . . . . . 501

Chapter 10

Logistics Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 517

Chapter 11

Transportation of Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 539

Chapter 12

Telecommunication Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 555

Chapter 13

Stock Broking Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 585

Chapter 14

Professional Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 599 PART C

LEGISLATION I.

The Constitution (101st Amendment) Act, 2016. . . . . . . . . . . . . . . . . . . . . . 611

II.

Taxation Laws (Amendment) Act, 2017. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 619

III.

Central GST Act and Rules III-1. Central Goods and Services Tax Act, 2017. . . . . . . . . . . . . . . . . . . . . . 645 III-2. Central Goods and Services Tax Rules, 2017 . . . . . . . . . . . . . . . . . . . . 807

IV.

IGST Act and Rules IV-1. Integrated Goods and Services Tax Act, 2017. . . . . . . . . . . . . . . . . . . . 917 IV-2. Integrated Goods and Services Tax Rules, 2017. . . . . . . . . . . . . . . . . . 943

V.

GST (Compensation to States) Act and Rules V-1. Goods and Services Tax (Compensation to States) Act, 2017. . . . . . . . 945 V-2. Goods and Services Tax Compensation Cess Rules, 2017 . . . . . . . . . . 959

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Contents at a glance

VI.

Press Releases, Circulars and Order VI-1. Press Releases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 961 VI-2. Circulars. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 979 VI-3. Order. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 993

VII. GST Tariff – Goods and Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 995 Goods – Tariff and Exemptions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 995 Services – Tariff and Exemptions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 995 CD Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xliii

xiii

Table of contents About the authors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix Contents at a glance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xi PART A

CONCEPTUAL UNDERSTANDING OF GST LAW Chapter 1 Overview of Goods & Services Tax (GST). . . . . . . . . . . . . . . . . . . . . . 3 Power of Government to Levy Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Major Indirect Taxes Presently Levied. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Deficiencies in Present Indirect Taxation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Need for GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Cascading Effect. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Scope of Services in GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Scope of Goods in GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Taxes to be Subsumed in GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Taxes not Subsumed in GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Point of Levy of GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Liability to Pay GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Advantages of GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Disadvantages of GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 GST Models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Dual GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Central GST (CGST) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 State GST (SGST). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Integrated GST (IGST). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 GST Network (GSTN) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Legal Frame Work. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Amendments in other Tax Statutes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 GST Compensation Act, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Tax Administration/Dual Control. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Chapter 2 GST Terminology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 CGST/SGST Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 IGST Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 xv

GST - Laws, Concepts & Impact Analysis for Traders and Service Providers

UTGST Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Explanation of Terms under CGST/SGST/UTGST Law. . . . . . . . . . . . . . . . . . . . . . . . 35 Actionable Claim [Section 2(1)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Address of Delivery [Section 2(2)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Address on Record [Section 2(3)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Agent [Section 2(5)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Aggregate Turnover [Section 2(6)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Agriculturist [Section 2(7)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Assessment [Section 2(11)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Associated Enterprise [Section 2(12)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Business [Section 2(17)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Business Vertical [Section 2(18)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Casual Taxable Person [Section 2(20)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Deemed Exports [Section 2(39)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Electronic Commerce [Section 2(44)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Electronic Commerce Operator [Section 2(45)]. . . . . . . . . . . . . . . . . . . . . . . . . 50 Exempt Supply [Section 2(47)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Government [Section 2(53)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 India [Section 2(56)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Job-work [Section 2(68)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Local Authority [Section 2(69)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Manufacture [Section 2(72)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Market Value [Section 2(73)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Money [Section 2(75)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Non-resident taxable person [Section 2(77)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Non-taxable & Taxable Territory [Section 2(79), 2(109)]. . . . . . . . . . . . . . . . . . 59 Person [Section 2(84)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Place of Business [Section 2(85)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Principal Place of Business [Section 2(89)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Principal Supply [Section 2(90)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Recipient [Section 2(93)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Removal [Section 2(96)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Reverse Charge [Section 2(98)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Securities [Section 2(101)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Services [Section 2(102)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Supplier [Section 2(105)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Telecommunication Service [Section 2(110)]. . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Turnover in a State or Union Territory [Section 2(112)]. . . . . . . . . . . . . . . . . . . 66 Usual Place of Residence [Section 2(113)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Voucher [Section 2 (118)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Works Contract [Section 2(119)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 xvi

Table of contents

Competent Authority (Schedule II). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Construction (Schedule II). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Governmental Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Health Care Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Education Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Explanation of Terms under IGST Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Continuous Journey [Section 2(3)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Custom Frontiers of India [Section 2(4)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Export of Services [Section 2(6)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Fixed Establishment [Section 2(7)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Government [Section 2(9)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Import of Goods [Section 2(10)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Import of Services [Section 2(11)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Intermediary [Section 2(13)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 Non-taxable Online Recipient [Section 2(16)]. . . . . . . . . . . . . . . . . . . . . . . . . . 79 Online Information Database Access or Retrieval Services [Section 2(17)]. . . . 79 Output Tax [Section 2(18)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 Zero Rated Supply [Section 2(23)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 Explanation of Terms under UTGST Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 Government [Section 2(6)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 Union Territory [Section 2(8)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 Chapter 3 Constitutional Framework of GST. . . . . . . . . . . . . . . . . . . . . . . . . . . 83 Constitutional Framework of GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 Constitutional (115th Amendment) Bill, 2011. . . . . . . . . . . . . . . . . . . . . . . . . . . 83 New insertion of Articles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 Constitution (101st Amendment) Act, 2016. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 The GST Council (GSTC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 Meaning of Goods, Services and GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 Rate of GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 Tax Rates on Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 Taxability and Levy of GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 Dispute Redressal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 Highlights/Journey of Constitutional Amendments for GST. . . . . . . . . . . . . . . . . . . . . 91 GST Compensation to States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 Objectives of Compensation Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 Compensation Cess. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 Chapter 4 Charge of GST Including Exemption. . . . . . . . . . . . . . . . . . . . . . . . . 95 Levy of GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 Rate of tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 xvii

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Reverse Charge – Section 9(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 Supply by a Non Registered Supplier – Section 9(4). . . . . . . . . . . . . . . . . . . . . 97 Electronics Commerce Operator. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 Taxable Person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 Persons liable for registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 Person having more than one registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102 Establishment having more than one registration. . . . . . . . . . . . . . . . . . . . . . . 102 Power to Grant Exemption from Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102 Power under circumstances of special nature. . . . . . . . . . . . . . . . . . . . . . . . . . 103 Clarification of a notification. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 Date of effectiveness of notification or order . . . . . . . . . . . . . . . . . . . . . . . . . . 103 Chapter 5 Supply of Goods and Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 Meaning and Scope of Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 Meaning of Goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 Meaning of Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 Distinction between Goods and Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 Sale and Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 Barter and Exchange. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108 License, Rental and Lease. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108 Disposal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108 Made or Agreed to be made . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 Consideration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 In the Course or Furtherance of Business. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110 Importation of Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110 Schedule I – Supplies without Consideration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 Permanent transfer or disposal of business assets. . . . . . . . . . . . . . . . . . . . . . . . 111 Supply of goods or services between related or distinct persons . . . . . . . . . . . 112 Employer and employee transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112 Transactions between principal and agent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112 Importation of services from related or distinct person. . . . . . . . . . . . . . . . . . . 113 Schedule II – Matters for Determination of Goods or Services. . . . . . . . . . . . . . . . . . 113 Schedule III – Activities neither Supply of Goods nor Services . . . . . . . . . . . . . . . . . 116 Composite Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117 Mixed Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118 Time of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119 Chapter 6 Relevance of Time of Supply in GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119 Time of Payment of GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119 Time of Supply of Goods Generally. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119 xviii

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Removal of goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120 Removal of goods for purpose other than supply. . . . . . . . . . . . . . . . . . . . . . . 121 Meaning of date of receipt of payment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 Receipt of excess payment upto INR 1000/-. . . . . . . . . . . . . . . . . . . . . . . . . . . 121 Continuous supply of goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 Supply of Goods on Approval or Sale or Return Basis . . . . . . . . . . . . . . . . . . . . . . . . 122 Goods Liable for Payment of Tax on Reverse Charge Basis . . . . . . . . . . . . . . . . . . . . 122 Supply of Vouchers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123 Residual Cases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124 Interest, Late Fee or Penalty for Delayed Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . 124 Time of Supply of Services Generally. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125 Meaning of date of receipt of payment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126 Receipt of excess payment upto INR 1000/-. . . . . . . . . . . . . . . . . . . . . . . . . . . 126 Continuous supply of services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126 Supply ceases under a contract. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127 Services Liable for Payment of Tax on Reverse Charge Basis. . . . . . . . . . . . . . . . . . . 127 Reverse Charge Basis in Case of Associated Enterprises. . . . . . . . . . . . . . . . . . . . . . . 128 Supply of Vouchers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129 Residual Cases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129 Interest, Late Fee or Penalty for Delayed Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . 130 Change in Effective Rate of Tax before the Supply of Goods and Services. . . . . . . . . 130 Change in Effective Rate of Tax after the Supply of Goods and Services. . . . . . . . . . 131 Chapter 7 Place of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133 Meaning of Place of Supply and its Relevance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133 Different Establishment of the Same person. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133 Location in Territorial Waters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134 Supply of Goods in the Course of Inter-State Trade and Commerce. . . . . . . . . . . . . . 134 Supply of Goods in the Course of Intra-State Trade and Commerce. . . . . . . . . . . . . . 134 Goods Required to be Moved. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 Goods Supplied on FOR Basis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 Supply of Goods on Ex Works Basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 Suppliers’ Obligation to Keep Record of Movement of Goods. . . . . . . . . . . . . . . . . . 136 Supply of Goods to a Third Person. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 Goods Supplied to a Third Person by Recipient during Movement to him. . . . . . . . . 137 Supply of Goods which are not Required to be Moved. . . . . . . . . . . . . . . . . . . . . . . . 137 Supply of Goods Required to be Installed or Assembled. . . . . . . . . . . . . . . . . . . . . . . 138 Goods Supplied on Board a Conveyance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138 Supply of Goods as Export or Import into India. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139 xix

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Supply of Goods - Non Applicability of any of the above Rules. . . . . . . . . . . . . . . . . 139 Supply of Services in the Course of Inter-State Trade and Commerce . . . . . . . . . . . . 139 Supply of Services in the Course of Intra-State Trade and Commerce . . . . . . . . . . . . 140 General Principles to Determine Place of Supply of Service. . . . . . . . . . . . . . . . . . . . 140 Challenges in Ascertaining Place of Supply of Service. . . . . . . . . . . . . . . . . . . . . . . . 140 General Rule for Place of Supply of Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141 Place of Supply in Relation to Immovable Property Service. . . . . . . . . . . . . . . . . . . . 142 Immovable Property, Boat or Vessel Located at more than One Place. . . . . . . . . . . . . 143 Restaurant, Catering, personal Grooming Services . . . . . . . . . . . . . . . . . . . . . . . . . . . 143 Training, Performance Appraisal Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 Admission to an Event . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 Organising Events and Auxiliary Services in Relation thereto. . . . . . . . . . . . . . . . . . . 144 Event held in more than one states of India. . . . . . . . . . . . . . . . . . . . . . . . . . . . 145 Goods Transport and Courier Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145 Passenger Transportation Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145 Services on Board or Conveyance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146 Telecommunication Service, Data Transfer, Broadcasting, Cable and DTH. . . . . . . . 146 Telecommunication and other services – address of recipient not on record . . 147 Leased circuit provided in multiple states. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147 Banking and other Financial Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147 Insurance related Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148 Advertisement Services to Government, Local Authority or Statutory Body . . . . . . . 148 Either Recipient or Supplier of Service is Located Outside India – Location of Service Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148 Services Provided at Various Taxable Territories including India . . . . . . . . . . . . . . . . 151 Power of Central Government to Notify. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151 Chapter 8 Composition Levy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153 Objective of Composition Levy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153 Advantages and Disadvantages of Opting for Composition Scheme. . . . . . . . . . . . . . 153 Taxable Persons Eligible for Composition Levy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153 Taxable Persons not Eligible for Composition Levy . . . . . . . . . . . . . . . . . . . . . . . . . . 154 Special Category States. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154 Meaning of Aggregate Turnover for Composition Levy . . . . . . . . . . . . . . . . . . . . . . . 155 Rate of Tax as Composition Levy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155 Other Restrictions on Composition Taxable Person. . . . . . . . . . . . . . . . . . . . . . . . . . . 155 Inward Inter-state Supply and Composition Taxable Person. . . . . . . . . . . . . . . . . . . . 156 Imports and Exports – Composition Taxable Person. . . . . . . . . . . . . . . . . . . . . . . . . . 156 Composition Scheme – Mandatory or Optional. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157 xx

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Collection of Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157 Input Tax Credit on Supply from Composition Dealer. . . . . . . . . . . . . . . . . . . . . . . . . 157 Withdrawal of Composition Scheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158 Validity of Composition Levy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158 Penal Provisions on Cancellation of Option for Composition Levy. . . . . . . . . . . . . . . 159 Switch over to Composition Scheme and Vice versa. . . . . . . . . . . . . . . . . . . . . . . . . . 159 Applicability of Reverse Charge Obligations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159 Inward Supply from Unregistered Persons. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159 Chapter 9 Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161 Relevance of Registration in GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161 Persons Liable to Seek Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161 Persons not Liable for Registration under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162 Basic Requirements for Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163 Structure of GST Registration Number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163 Various Types of Registrations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164 Time Allowed for Seeking Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164 Effective Date of Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164 Registration on Voluntary Basis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165 Requisite Documents for Obtaining Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165 Centralised Registration of Multi-unit Operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . 166 Time Limit for Grant or Refusal of Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166 Facility of Downloading Registration Certificate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167 Migration of Taxable Person already Registered under Central Excise/Service Tax/State VAT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168 Registration Procedure for E-commerce Operator and Person required to Deduct Tax at Source . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168 Registration of Non-resident Tax Payer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168 Validity Period of Registration of Casual or Non-resident Tax Payer . . . . . . . . . . . . . 168 Input Service Distributor (ISD) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168 Central, State Government or a Local Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169 UN bodies, Consulates or Embassies of Foreign Countries. . . . . . . . . . . . . . . . . . . . . 169 Unique Identification Number (UIN) and its Relevance . . . . . . . . . . . . . . . . . . . . . . . 169 Suo Moto Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170 Amendment in Registration Certificate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170 Rejection of Request for Amendment in Registration . . . . . . . . . . . . . . . . . . . . . . . . . 171 Cancellation of Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171 Voluntary Registration and Cancellation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172 Cancellation of Registration by Department Suo Moto. . . . . . . . . . . . . . . . . . . . . . . . 172 xxi

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Implications of Cancellation of Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173 Revocation of Cancellation of Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173 Physical Verification of Business Premises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173 Chapter 10 Valuation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175 Relevance of Registration in GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175 Value to be Considered for Levy of Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175 Meaning of Consideration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176 Meaning of Money. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177 Deposits – Treatment in Valuation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177 Valuation of Taxable Supplies in Ordinary Course. . . . . . . . . . . . . . . . . . . . . . . . . . . . 178 Meaning of Transaction Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178 Meaning of the Term ‘Related’. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179 Meaning of Person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179 Valuation other than Transaction Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180 Chapter 11 Payment under GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183 Types of Tax Payments Required to be made in GST . . . . . . . . . . . . . . . . . . . . . . . . . 183 Persons Liable to make Payments under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183 Due date for making the Payment of Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183 Different Payment Options. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184 Types of Ledgers Maintained by GSTN. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185 Electronic Liability Register. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185 Electronic Cash ledgers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186 Electronic Credit Ledger. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186 Payments from electronic credit ledger and restrictions. . . . . . . . . . . . . . . . . . 187 Payments from electronic Cash ledger and process . . . . . . . . . . . . . . . . . . . . . 188 Challan–Generation and making Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189 Payment of Tax and Filing of Valid Return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190 Refund Adjustment and Rejection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190 Delay in Payment of Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190 Undue or Excess Claim of Input Tax Credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191 Tax Deduction at Source. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191 TDS not to be Deducted. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192 Certificate of TDS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192 Refund of erroneous deduction of TDS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192 Tax Collection at Source. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192 Reverse Charge. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193

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Chapter 12 Returns under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195 Return – Meaning and Purpose. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195 Returns Prescribed under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195 Filing of Returns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197 UN Bodies and Government Departments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197 Common Return Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 Deposit of Self-assessment Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 Return of a Business Vertical . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 Return of Non-resident Taxpayer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 Return of Taxpayer Paying Tax on Compounding Basis . . . . . . . . . . . . . . . . . . . . . . . 199 Return of Outward Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199 Details in Return of Outward Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200 Date of filing return. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201 Changes in return of outward supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201 Return of Inward Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202 Input tax credit and return of inward supplies. . . . . . . . . . . . . . . . . . . . . . . . . . 203 Monthly Return. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203 Returns of other Taxable Persons. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204 Annual Return. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205 Quarterly Return of Job Work Transactions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206 First Return. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206 Final Return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207 Matching, Reversal and Reclaim of Input Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . 207 Non-matching, its Impact and Consequences. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208 Matching, Reversal and Reclaim of Reduction in Output Tax Liability . . . . . . . . . . . 209 Consequences of Non-filing of Return. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209 Goods and Service Tax Practitioners (GSTP) and Facilitation Centres (FC). . . . . . . . 210 Chapter 13 E-commerce Transactions under GST. . . . . . . . . . . . . . . . . . . . . . . 213 Present Taxation Structure of E-commerce Sector. . . . . . . . . . . . . . . . . . . . . . . . . . . . 213 Business Models of E-commerce Trade. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213 Impact of GST on E-commerce Operator. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214 Meaning and Scope of Electronic Commerce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214 Tax Collected at Source (TCS). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215 Rate, collection and deposit of TCS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215 Deposit of TCS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215 Filing of return. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216 Rectification of return by E-commerce operator. . . . . . . . . . . . . . . . . . . . . . . . 216 Claim of TCS by Suppliers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216 xxiii

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Return of Suppliers and Matching of Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216 Additional Returns to be Filed by E-commerce Operator . . . . . . . . . . . . . . . . . . . . . . 217 Chapter 14 Invoices, Debit and Credit Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . 219 Type of Invoices in GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219 Tax Invoice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220 Meaning and relevance of tax invoice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220 Tax invoice of goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220 Tax invoice for services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221 Requisite particulars to be shown on tax invoice . . . . . . . . . . . . . . . . . . . . . . . 222 Details required on Tax invoice for export . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223 Requirement of Additional details. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223 Manner of issuance of tax invoice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224 Meaning and purpose of Common portal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224 Bill of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225 Requisite particulars on Bill of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225 Receipt Voucher . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225 Refund Voucher. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226 Payment Voucher . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227 Credit Note. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227 Meaning and usage of credit note. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227 Time limit for declaration of credit note. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228 Non-deduction in case of credit notes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228 Debit Note/Supplementary Invoice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228 Meaning and usage of Debit note/Supplementary invoice. . . . . . . . . . . . . . . . 228 Time limit for declaration of debit notes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 229 Input tax credit of debit note/supplementary invoice . . . . . . . . . . . . . . . . . . . . 229 Requisite Details to be Shown on Credit Note, Debit Note/Supplementary Tax Invoice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 230 Revised Invoice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 230 Revised invoice and Supplementary invoice – Difference. . . . . . . . . . . . . . . . 231 Consolidated Revised invoice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231 Consolidated Revised Tax Invoice for Inter-state Supply. . . . . . . . . . . . . . . . . 232 Details on invoice issued by ISD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233 Banking company or NBFC as ISD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233 Goods Transport Agency and Tax Invoice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233 Passenger Transportation Services and Tax Invoice. . . . . . . . . . . . . . . . . . . . . . . . . . . 234 Chapter 15 Input Tax Credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237 Concept of Input Tax Credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237 xxiv

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Meaning of Input. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237 Meaning of Capital goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237 Meaning of Input service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238 Meaning of Input tax and Input tax credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238 Eligibility Conditions for Availing Input Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . 239 Entitlement Conditions for Input Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239 Further Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240 Input Tax Credit on Goods Supplied to a Third Person . . . . . . . . . . . . . . . . . . . . . . . . 242 Input Tax Credit on Capital Goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 242 In-eligible or Blocked Input Tax Credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 242 Services not eligible for input tax credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243 Goods and/or Services Partly used for Business. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244 Taxable and Exempt Supplies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244 Bank, financial institution or NBFC supplying exempt services. . . . . . . . . . . . 244 Construction Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245 Person applying for Registration in GST for First Time. . . . . . . . . . . . . . . . . . . . . . . . 245 Person making Late Application for Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246 Registered Taxable Person Switching over from Composition Levy. . . . . . . . . . . . . . 246 Registered Taxable Person Switching over to Composition Levy. . . . . . . . . . . . . . . . 247 Exempt Supply of Goods becoming Taxable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247 Taxable Supply of Goods becoming Exempt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247 Change in the Constitution of Registered Taxable Person. . . . . . . . . . . . . . . . . . . . . . 247 Supply of Capital Goods on which Input Tax Credit has been Availed. . . . . . . . . . . . 248 Inputs Directly Sent to Job Worker. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248 Capital Goods Sent to Job Worker . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249 Meaning of Input Service Distributor (ISD). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249 Manner of Distribution of Credit by ISD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250 Conditions for Distribution of Credit by ISD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251 Meaning of Relevant Period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251 Consequences of Excess Distribution of Credit by ISD. . . . . . . . . . . . . . . . . . . . . . . . 252 Chapter 16 Job Work under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253 Meaning of Job Work and Job Worker. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253 Registration Requirement of a Job Worker. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253 Supply of Goods by Principal to a Job Worker. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254 Supply of Goods Directly to a Job Worker. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254 Moulds and Dies, Jigs and Fixtures or Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254 Supply of Goods on Completion of Job Work. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255 Consequences of Non-receipts of Inputs within One Year. . . . . . . . . . . . . . . . . . . . . . 255 xxv

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Consequences of Non-receipt of Capital Goods within Three Years. . . . . . . . . . . . . . 256 Moulds and Dies, Jigs and Fixtures or Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256 Scrap and Waste Generated during Job Work. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256 Return of Job Work. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 258 Chapter 17 Assessments under GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259 Meaning and Types of Assessments in GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259 Various Assessments at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259 Various Types of Assessments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260 Provisional Assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262 Request of taxable person. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263 Bond with Surety. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263 Details and conditions in order permitting provisional assessment . . . . . . . . . 263 Short/Excess payment in provisional assessment. . . . . . . . . . . . . . . . . . . . . . . 264 Release of Security. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265 Scrutiny of Returns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265 Ingredients of scrutiny of returns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265 Consequences of non-furnishing of satisfactory explanation. . . . . . . . . . . . . . 265 Assessment of Non-filers of Return. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266 Time limit for finalising the Best Judgment Assessment. . . . . . . . . . . . . . . . . . 266 Withdrawal of order of Best Judgment Assessment . . . . . . . . . . . . . . . . . . . . . 266 Validity of order of Best Judgment Assessment . . . . . . . . . . . . . . . . . . . . . . . . 267 Interest and late fee in case of Best Judgment Assessment. . . . . . . . . . . . . . . . 267 Assessment of Unregistered Persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267 Summary Assessment – Meaning, Circumstances and Procedure. . . . . . . . . . . . . . . . 268 Withdrawal of Summary Assessment order . . . . . . . . . . . . . . . . . . . . . . . . . . . 268 Chapter 18 Refunds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271 Meaning of Refund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271 Situations giving Rise to Refund in GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271 Application for Refund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271 Meaning of Relevant Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272 Refund of Tax Paid on Inward Supply of Goods and/or Services . . . . . . . . . . . . . . . . 273 Refund of Input Tax Credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 274 Refund of Balance in Electronic Cash Ledger. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 274 Application for Refund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275 Documents to be filed with refund application. . . . . . . . . . . . . . . . . . . . . . . . . 275 Refund application for supplies made to SEZ. . . . . . . . . . . . . . . . . . . . . . . . . . 276 Refund claim of less than INR 2 lakhs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 276 Refund claim of more than INR 2 lakhs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 277 xxvi

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Passing of incidence of tax or interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 277 Refund Filed by Suppliers of Zero Rated Goods and Services . . . . . . . . . . . . . . . . . . 277 Refund for Export – Bank Realisation Certificate. . . . . . . . . . . . . . . . . . . . . . . 277 Refund for Export – Principle of unjust enrichment. . . . . . . . . . . . . . . . . . . . . 278 Time Limit for Processing of Refund Claim . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 278 Types of Refunds Payable to Applicant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 278 Contrary directions of tribunal, court or any other provision of the Act. . . . . . 279 Procedure of Rejection of Refund Application. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279 Withholding of Refund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279 Meaning of Specified date. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279 Withholding of refund by Commissioner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280 Interest for withholding period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280 Refund of Advance Deposit by Casual or Non-resident Taxable Person. . . . . . . . . . . 280 Minimum Ceiling on Refund Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280 Interest on Delayed Refund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280 Consumer Welfare Fund – Meaning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281 Circumstances for crediting consumer welfare fund. . . . . . . . . . . . . . . . . . . . . 281 Amounts to be credited to consumer welfare fund. . . . . . . . . . . . . . . . . . . . . . 281 Utilisation of consumer welfare fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281 Chapter 19 Transitional Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285 ‘Appointed day’ and ‘Existing law’ – Meaning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285 Migration of Existing Registered Taxable Persons. . . . . . . . . . . . . . . . . . . . . . . . . . . . 286 Time limit for seeking registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286 Mandatory requirement for migration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287 Procedure for migration to GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287 Information required for enrolment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287 Input Service Distributor (ISD) migration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 288 Primary authorized signatory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 288 Carry Forward of Cenvat or State Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290 Conditions attached for carry forward. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290 Unavailed Cenvat Credit on Capital Goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290 Credit of Eligible Duties and Taxes in respect of Inputs Held in Stocks. . . . . . . . . . . 291 Conditions for availment of credit on inputs. . . . . . . . . . . . . . . . . . . . . . . . . . . 291 Not in possession of tax paying document . . . . . . . . . . . . . . . . . . . . . . . . . . . . 292 Exempted as well as not exempted goods or services. . . . . . . . . . . . . . . . . . . . 292 Input goods or services in transit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293 Inputs in stock of a person switching over from composition scheme. . . . . . . 293 Credit distribution of service tax by ISD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294 Transfer of Unutilised Cenvat Credit by Taxable Person having Centralised Registration. . 294 xxvii

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Availing Cenvat Credit in Certain Cases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294 Inputs removed for job work returned on or after the appointed day. . . . . . . . 294 Semi-finished goods removed for job work returned on or after the appointed day. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 295 Finished goods removed for job work returned on or after the appointed day. . . . 296 Tax paid Goods Returned on or after the Appointed Day. . . . . . . . . . . . . . . . . . . . . . . 296 Issue of Supplementary Invoices, Debit or Credit Notes on Revision of Prices . . . . . 297 Pending Refund Claims to be Disposed of under Existing Law. . . . . . . . . . . . . . . . . . 297 Refund claims filed after the appointed day for goods cleared and/ or services provided before the appointed day and exported before or after the appointed day to be disposed of under existing law. . . . . . . . . . . . . . 298 Refund claims filed after the appointed day for payments received and tax deposited before the appointed day in respect of services not provided. . . 298 Claim of cenvat credit to be disposed of under existing law. . . . . . . . . . . . . . . 298 Finalisation of Proceedings relating to Output Duty or Tax Liability . . . . . . . . . . . . . 298 Amount Recovered or Refunded in Pursuance of Assessment or Adjudication Proceedings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 299 Amount Recovered or Refunded in Pursuance of Revision of Returns. . . . . . . . . . . . 299 Treatment of Long-term Construction or Works Contract. . . . . . . . . . . . . . . . . . . . . . 299 Taxability of Supply of Goods in Certain Cases. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300 Taxability of Supply of Services in Certain Cases. . . . . . . . . . . . . . . . . . . . . . . . . . . . 300 Progressive or Periodic Supply of Goods and/or Services. . . . . . . . . . . . . . . . . . . . . . 300 Goods Sent on Approval Basis Returned after the Appointed Day . . . . . . . . . . . . . . . 300 Deduction of Tax at Source. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 301 Tax paid on Goods Lying with Agents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 301 Credit of stock lying at branches (depots). . . . . . . . . . . . . . . . . . . . . . . . . . . . . 301 Credit of education cess, Swachh Bharat cess and Krishi Kalyan cess. . . . . . . 302 Chapter 20 Overview of IGST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303 Need of IGST and Important Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303 Integrated goods and service tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303 Export and import of goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304 Export and import of service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304 Establishment of a distinct person. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304 Fixed establishment and place of business . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304 Output tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305 Territory of India. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305 Intermediary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305 Supplies in the Course of Intra-state Trade and Commerce. . . . . . . . . . . . . . . . . . . . . 305 Supplies in the Course of Inter-state Trade and Commerce. . . . . . . . . . . . . . . . . . . . . 306 xxviii

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Levy of IGST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 307 IGST on petroleum products. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 307 IGST on goods imported into India. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 307 Threshold limit in IGST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 308 IGST and reverse charge. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 308 Supply by an unregistered person. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 308 Electronic commerce operator. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 308 Exemption from Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309 Clarification in notification. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309 Online Information and Database Access or Retrieval Services Located outside India. . . . . 309 Meaning of online information and database access or retrieval services . . . . 310 Person liable for tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 310 Liability of an intermediary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 310 Single registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 311 Supplier not physically present in taxable territory. . . . . . . . . . . . . . . . . . . . . . 311 Payment of CGST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 311 Payment of UTGST/SGST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 312 Apportionment of Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 312 Why is apportionment of IGST required. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 312 Circumstances requiring apportionment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 313 Manner of apportionment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 313 Supply to unregistered person or persons covered by composition scheme. . . 314 Supply to taxable persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314 Apportionment to States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314 Non-determinable place of supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314 Taxable person non-determinable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315 Interest, fine and penalty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315 Payment of apportioned amount. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315 Amount of SGST apportioned found to be refundable. . . . . . . . . . . . . . . . . . . 315 Zero rated Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315 Input tax credit on zero rated sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315 Refund on export of goods and/or services. . . . . . . . . . . . . . . . . . . . . . . . . . . . 315 Refund to SEZ developer or SEZ Unit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 316 Application of Provisions of CGST Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 316 TDS and TCS rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317 Power of Central Government to make rules . . . . . . . . . . . . . . . . . . . . . . . . . . 317 Tax wrongfully collected and deposited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317 Refund to outbound tourist . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 318 Chapter 21 Overview of UTGST Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319 Applicability of UTGST Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319 xxix

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Levy of UTGST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319 Exemption from GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 321 Input Tax Credit and its Adjustment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 321 Wrongful Collection and Payment of Tax and its Consequences. . . . . . . . . . . . . . . . . 321 Migration of Existing Taxable Persons to UTGST. . . . . . . . . . . . . . . . . . . . . . . . . . . . 322 Transition Provisions in respect of Input Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . 322 Input tax credit as per returns filed under existing law. . . . . . . . . . . . . . . . . . . 322 Input tax credit on capital goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 323 Input tax credit on input stocks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 323 Taxable as well as exempted goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324 Goods in transit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324 Switch over from composition levy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325 Transition of Goods Sent for Job Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325 Miscellaneous Transition Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325 Return of taxable goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325 Revision of price of goods supplied before appointed day. . . . . . . . . . . . . . . . 326 Refund claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 326 Proceedings of input tax credit under the existing law. . . . . . . . . . . . . . . . . . . 326 Proceedings of output tax under the existing law. . . . . . . . . . . . . . . . . . . . . . . 326 Proceedings of assessment or adjudication under the existing law. . . . . . . . . . 327 Revision of return after the appointed day . . . . . . . . . . . . . . . . . . . . . . . . . . . . 327 Tax paid goods supplied after the appointed day. . . . . . . . . . . . . . . . . . . . . . . . 327 Goods sent on approval basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 327 Tax deducted at Source (TDS). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 328 Chapter 22 Overview of SGST Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 329 State Taxes being Subsumed in GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 329 SGST and its Features. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 330 Tax Administration/Dual Control. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 330 SGST Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 331 PART B

GST – IMPACT ANALYSIS ON SELECT INDUSTRIES Chapter 1 Services and Service Providers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337 Levy of Service Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337 Service Tax Revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 338 Meaning of Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 338 xxx

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Services under GST regime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 339 What is Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 339 Territorial Jurisdiction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340 Threshold Exemption for Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340 GST Rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340 Relief from Double Taxation – Sale v. Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 343 Taxable Person/Composition Scheme. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 344 Place of Registration/Centralised Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 345 Supply of Goods/Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 345 Specific Cases of Supply of Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 345 Inter-state or Intra-state?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350 Export of Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350 Import of Services/Reverse Charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 351 Transactions between Head Office and Branch Offices located outside/inside India. . 351 Time of Supply of Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 352 Valuation of Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 352 Invoice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353 Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 354 Input Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 355 Input Service Distributor Concept (ISD) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 356 Refund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 356 Payment of Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 357 Dealing with Unregistered Supplier. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 357 Reverse Charge Mechanism. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 357 Domestic/SEZ Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 359 Place of Supply of Services (Sections 10, 11, 12 and 13 of the IGST Act, 2017). . . . 359 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 360 Abbreviations Used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 360 Chapter 2 Small Businesses (SSIs, Traders and Retailers) . . . . . . . . . . . . . . . 361 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 361 Taxable Territory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 362 Taxable Person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 362 Threshold Exemption Limit for Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 363 Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 364 Composition Levy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 365 Registration under Composition Scheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 366 Restrictions for the Composition Scheme. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 366 Composition Scheme only to supply of goods . . . . . . . . . . . . . . . . . . . . . . . . . 366 xxxi

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Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 367 Types of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 367 Dealing with unregistered suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 368 Time of Supply of Goods and/or Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 369 Place of Supply of Goods and Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 369 Inter-state or Intra-state?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 370 Valuation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 370 GST on Stock Transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 371 Input Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 372 Input Service Distributor (ISD) Concept . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 372 Reconciliation of Inward and Outward Supplies [Section 42 of the CGST Act, 2017].373 Transitional Credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 373 Treatment of Credit on Unsold Stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 374 Central duties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 374 State duties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 375 Credit Transfer Document. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 376 Invoicing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 377 Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 377 Rate of Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 379 Tax rates on important commodities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 381 Blockage of Working Capital. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 382 Administrative Control over Small Assessees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 383 Way Forward. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 384 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 386 Abbreviations Used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 387 Banking and Financial Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . 389 Chapter 3 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 389 Scope & taxability under Service Tax Regime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 389 Scope of Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 389 Specific Exemptions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 390 Activities not considered as Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 391 Valuation of Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 391 Specific Abatement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 392 Place of Provisions of Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 392 Invoice/Challan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 393 Rate of Service Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 393 Cenvat Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 393 Reverse Charge Mechanism. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 393 xxxii

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Scope and Taxation under GST Regime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 394 Taxable Territory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 394 Scope & Taxability of Banking Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 395 Chit Funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 397 Threshold Exemption. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 398 Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 398 Distinct Persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 399 Meaning and Scope of Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 399 Exemptions under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 401 Classification of Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 401 Time of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 402 Place of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 402 Services by Banks in SEZ. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 403 Services by Banks outside India (Exports). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 404 Valuation of Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 404 Valuation in case of Money Changers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 405 Rate of GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 406 Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 406 Invoicing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 408 Reverse Charge Mechanism. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 409 Dealing with Unregistered Supplier. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 410 Input Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 410 Transitional Credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 411 Input Service Distributor (ISD) Concept . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 411 Electronic Commerce Operator Services (E-commerce) by Banks etc . . . . . . . . . . . . 412 Way Forward. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 412 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 413 Abbreviations Used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 413 Chapter 4 Railway Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 415 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 415 Major Issues Concerning Railways in GST Regime at a Glance. . . . . . . . . . . . . . . . . 416 Territory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 416 Railways under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 417 Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 417 Business Verticals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 417 Taxable Person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 418 Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 418 xxxiii

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Meaning & Scope of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 418 Types of Supply (Section 8 of the CGST Act, 2017). . . . . . . . . . . . . . . . . . . . . . . . . . 419 Classification of Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 420 Time of Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 420 Valuation of Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 421 Stock Transfers under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 421 Input Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 422 Input Service Distributor Concept (ISD). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 423 Reconciliation of inward and outward supplies (Matching of Invoices) (Section 42 of the CGST Act, 2017). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 423 Transitional credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 423 Treatment of credit on unsold stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 424 Invoice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 425 Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 426 Rate of Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 427 Payment of Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 428 Tax Deduction at Source (TDS). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 429 Tax Collection at Source (TCS). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 430 Job-works under GST (Section 143 of the CGST Act, 2017). . . . . . . . . . . . . . . . . . . . 431 Transactions between Head Office and Branch Offices located outside/inside India. . 431 Inter-state or Intra-state Supplies? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 431 Place of Supply of Goods and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 432 Import of Goods – GST or Custom Duty?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 433 Managing Procurement Vendors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 434 Impact on Ongoing Contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 434 Captive Consumption. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 434 Works Contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 434 Exemption under Service Tax and GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 434 GST on Activities of YTSK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 436 Cleaning/Sanitation Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 436 Taxability of Long-term Lease Arrangements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 437 Taxability of General Sales Agent (GSA). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 437 Specific Services Provided by Railways – Taxability under GST . . . . . . . . . . . . . . . . 437 Other Implications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 438 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 439 Abbreviations Used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 440 Chapter 5 Insurance Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 441 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 441 xxxiv

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Indirect Taxation of Insurance Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 442 Relevant Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 442 Scope of Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 443 Negative List of Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 443 Specific Exemptions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 443 Taxability under Service Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 445 Payment of Tax under Reverse Charge Mechanism. . . . . . . . . . . . . . . . . . . . . . . . . . . 445 Taxation of Insurance Services under GST Regime . . . . . . . . . . . . . . . . . . . . . . . . 446 Taxable Territory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 446 Rate of GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 446 Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 447 Distinct Persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 447 Meaning and Scope of Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 448 Classifications of Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 448 Time of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 449 Place of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 449 Valuation of Supply of Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 451 Exemptions under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 452 Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 454 Invoicing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 455 Reverse Charge. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 456 Dealings with Unregistered Supplier . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 457 Input Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 457 Matching Concept. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 458 Input Service Distributor (ISD) Concept. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 458 Transitional Credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 459 Refunds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 459 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 459 Abbreviations Used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 460 Chapter 6 Hotels and Restaurants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 461 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 461 Taxation Regime under Service Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 461 Taxation under GST regime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 462 Taxable Territory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 463 Supply of Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 463 Place of Supply Provisions Applicable to Hotel/Restaurants. . . . . . . . . . . . . . . . . . . . 464 Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 465 Rate of GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 466 xxxv

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CBEC Clarification. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 467 Impact in GST Regime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 468 Exemptions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 471 Restaurant (F & B) segment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 471 Rates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 473 Composition Scheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 474 Reverse Charge Applicable for Dealing with Unregistered Supplier. . . . . . . . . . . . . . 474 Classification of Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 475 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 476 Abbreviations Used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 476 Chapter 7 Education and Commercial Coaching. . . . . . . . . . . . . . . . . . . . . . . 477 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 477 Education and Coaching. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 477 Goods and Services Tax (GST) as a Tax Reform. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 478 Taxation under Service Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 479 Taxation under GST Regime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 481 Taxable Territory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 481 Exemptions from GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 482 CBEC clarification on Exemption to Lodging in Hostels. . . . . . . . . . . . . . . . . 482 Impact on Coaching/Training. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 483 CBEC clarification on impact vide Press Release dated 07.07.2017 . . . . . . . . 485 Classification of Education related Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 485 Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 486 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 487 Abbreviations Used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 488 Chapter 8 Registrar to an Issue (RTI) and Share Transfer Agents (STA). . . 489 Registrar to an Issue (RTI). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 489 Share Transfer Agent (STA). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 490 Securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 490 Territory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 491 Taxable Person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 491 Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 492 Threshold Exemption Limit for Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 492 Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 493 Time of Supply of Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 493 Place of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 493 Rate of GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 494 xxxvi

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GST Suvidha Providers (GSTSP). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 494 Inter-state and Intra-state Supplies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 495 Valuation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 496 Value of Supply of Services in case of Pure Agent. . . . . . . . . . . . . . . . . . . . . . . . . . . . 496 Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 497 Input Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 498 Reconciliation of Inward and Outward Supplies (Matching of Invoices). . . . . 499 Input Service Distributor Concept (ISD). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 499 Transitional Credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 499 Working for Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500 Procurement and Distribution Model for Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500 Abbreviations Used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500 Chapter 9 Media and Entertainment and Paper Industry. . . . . . . . . . . . . . . . 501 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 501 Taxation under Service Tax Regime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 501 Broadcasting Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 501 Multiplexes and Film Production. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 502 Taxation under GST regime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 503 Territorial Jurisdiction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 504 Taxable Person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 505 Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 505 Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 505 Time of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 506 Place of Supply (Sections 12 and 13 of the IGST Act, 2017). . . . . . . . . . . . . . . . . . . . 506 Valuation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 506 Returns (Sections 37 to 45 of the CGST Act, 2017). . . . . . . . . . . . . . . . . . . . . . . . . . . 507 Input Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 508 Matching of Invoices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 509 Input Service Distributor concept (ISD). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 509 Transitional Credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 509 Treatment of Credit on Unsold Stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 510 Central duties (As per section 140(3) of the CGST Act, 2017). . . . . . . . . . . . . 510 State duties (As per section 140(3) of the SGST Act, 2017). . . . . . . . . . . . . . . 510 Dealing with Unregistered Suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 511 Entertainment Tax levied by Local Bodies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 511 GST Rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 512

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GST on Print Media . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 514 GST Preparedness. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 514 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 515 Abbreviations Used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 516 Chapter 10 Logistics Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 517 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 517 Taxation under Service Tax Regime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 518 Taxation under GST Regime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 519 Territory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 519 Taxable Territory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 519 Non-taxable Territory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 520 Taxable Person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 520 Threshold Exemption for Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 520 Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 520 Meaning and Scope of Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 521 Dealing with Unregistered Suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 521 Time of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 522 Place of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 522 Returns (Sections 37 to 45 of the CGST Act, 2017). . . . . . . . . . . . . . . . . . . . . . . . . . . 523 Input Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 524 Input Tax Credit of Fuel/HSD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 525 Reconciliation of Inward and Outward Supplies (Matching Concept). . . . . . . 525 Exemptions in GST Regime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 525 Lack of Clarity on Abatements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 527 Requirement to Carry Invoice and other Documents (E-Way Bills) . . . . . . . . . . . . . . 528 E-way Bills Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 528 Supply Chain Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 531 Warehouse Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 532 Taxability of Cargo Agent Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 534 Dedicated Freight Corridors by Railways. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 534 Increased Efficiency of Service Providers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 535 Procurement Practices (Third-Party Logistics Support). . . . . . . . . . . . . . . . . . . . . . . . 535 Transitional Credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 536 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 536 Abbreviations Used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 538 Chapter 11 Transportation of Goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 539 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 539 xxxviii

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Exemptions in Service Tax Regime . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 540 Territory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 541 Taxable Territory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 541 Non-taxable Territory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 541 Threshold Exemption for Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 542 Taxable Person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 542 Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 542 Meaning of Supply (Section 7 of the CGST Act, 2017). . . . . . . . . . . . . . . . . . . . . . . . 543 Dealing with Unregistered Suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 543 Time of Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 543 Place of Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 544 Supply of Services to SEZ/Export . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 545 Rate of GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 545 Exemptions under GST Regime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 546 Abatements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 547 Returns (Sections 37 to 45 of the CGST Act, 2017). . . . . . . . . . . . . . . . . . . . . . . . . . . 548 Input Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 549 E-way Bill. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 549 Credit of Aviation Turbine Fuel/High-Speed Diesel/Electricity. . . . . . . . . . . . 550 Reconciliation of Inward and Outward Supplies. . . . . . . . . . . . . . . . . . . . . . . . 550 Reverse Charge. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 550 Inspection of Goods in Movement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 551 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 552 Abbreviations Used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 553 Chapter 12 Telecommunication Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 555 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 555 Territory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 555 Taxable Person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 556 Threshold Exemption Limit for Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 556 Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 556 Meaning and Scope of Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 558 Types of Supply (Section 8 of the CGST Act, 2017) . . . . . . . . . . . . . . . . . . . . 558 Dealing with Unregistered Suppliers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 559 Telecom Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 559 Specific Telecom Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 560 Taxability of Spectrum Rights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 560 Taxability of Inter-Linking Charges or Intra-Circle Roaming. . . . . . . . . . . . . . 561 Taxability of International in-bound Roaming . . . . . . . . . . . . . . . . . . . . . . . . . 561 xxxix

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Taxability of Mobile Wallet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 562 Taxability of Supply of SIM cards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 562 Taxability of Value Added Services (VAS). . . . . . . . . . . . . . . . . . . . . . . . . . . . 563 Taxability of Free of Charge (FOC) Supplies for Marketing/Promotion . . . . . 563 Taxability of Supplies Made/to be made to Employees . . . . . . . . . . . . . . . . . . 564 Taxability of Supply of Online Information and Database Access or Retrieval Services (OIDAR). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 564 Stock Transfers under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 565 Time of Supply under GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 565 Place of Supply of Goods and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 566 Rate of GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 568 Tax Invoice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 570 Valuation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 571 Security Deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 572 Valuation/Pricing issues in case of Stock Transfer between Distinct Persons . 572 Input Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 572 Reconciliation of Inward and Outward Supplies (Matching Concept). . . . . . . 574 Input Service Distributor (ISD) Concept. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 575 Transitional Credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 575 Treatment of Input Credit on Goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 576 Unavailed Cenvat Credit relating to one time charges for Spectrum Rights Assignment by CG/SG/UT/Local Authority . . . . . . . . . . . . . . . . . . . . . 577 Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 578 Tax Deduction at Source (TDS). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 579 Tax Collection at Source (TCS). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 579 Job works under GST (Section 143 of the CGST Act, 2017). . . . . . . . . . . . . . . . . . . . 580 Works Contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 580 Transactions between Head Office and Branch Offices located outside/inside India. . 581 Inter-state/Intra-state Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 581 Import of Goods – GST or Custom Duty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 581 Impact on Ongoing Contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 582 Accounting Issues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 582 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 583 Abbreviations Used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 584 Chapter 13 Stock Broking Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 585 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 585 Meaning of Stock Broker. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 585 Meaning of Goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 585 xl

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Meaning of Securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 586 Territory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 586 Taxable Person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 587 Threshold Limits for Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 587 Registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 588 Composition Levy (Section 10 of the CGST Act, 2017) . . . . . . . . . . . . . . . . . . . . . . . 588 Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 589 Dealing with Unregistered Suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 589 Taxability of Sub-broker’s Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 589 Inter-state or Intra-state Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 590 Time of Supply of Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 590 Place of Supply of Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 590 Valuation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 591 Payment of Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 593 Input Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 594 Reconciliation of Inward and Outward Supplies (Matching Concept). . . . . . . . . . . . . 594 Transitional Credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 595 Rate of GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 595 Returns (Sections 37 to 45 of the CGST Act, 2017). . . . . . . . . . . . . . . . . . . . . . . . . . . 595 What Stock Brokers should do. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 597 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 597 Abbreviations Used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 598 Chapter 14 Professional Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 599 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 599 Role of Professionals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 599 Professional Opportunities in Indirect Taxes at Glance. . . . . . . . . . . . . . . . . . . . . . . . 600 Enhanced Role of Professionals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 603 Specific Recognition to Professionals in GST Laws . . . . . . . . . . . . . . . . . . . . . . . . . . 603 GST Practitioner. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 604 Authorized Representative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 604 Classification of Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 605 Rate of GST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 606 Impact of GST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 606 GST: Tax of the Future. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 606 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 607 Abbreviations Used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 607

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PART C

LEGISLATION I.

The Constitution (101st Amendment) Act, 2016. . . . . . . . . . . . . . . . . . . . . . 611

II.

Taxation Laws (Amendment) Act, 2017. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 619

III.

Central GST Act and Rules III-1. Central Goods and Services Tax Act, 2017. . . . . . . . . . . . . . . . . . . . . . 645 III-2. Central Goods and Services Tax Rules, 2017 . . . . . . . . . . . . . . . . . . . . 807

IV.

IGST Act and Rules IV-1. Integrated Goods and Services Tax Act, 2017. . . . . . . . . . . . . . . . . . . . 917 IV-2. Integrated Goods and Services Tax Rules, 2017. . . . . . . . . . . . . . . . . . 943

V.

GST (Compensation to States) Act and Rules V-1. Goods and Services Tax (Compensation to States) Act, 2017. . . . . . . . 945 V-2. Goods and Services Tax Compensation Cess Rules, 2017 . . . . . . . . . . 959

VI.

Press Releases, Circulars and Order VI-1. Press Releases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 961 VI-2. Circulars. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 979 VI-3. Order. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 993

VII. GST Tariff – Goods and Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 995 Goods – Tariff and Exemptions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 995 Services – Tariff and Exemptions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 995

CD CONTENTS 1. Central Tax Notifications (Non-Tariff and Tariff) 2. Integrated Tax Notifications (Non-Tariff and Tariff) 3. Compensation Cess Notifications (Non-Tariff and Tariff) 4. Central Excise Notifications (Non-Tariff) 5. Customs - IGST Exemption Notifications 6. CGST Forms 7. FAQs

xlii

CD Contents LIST OF NOTIFICATIONS Notification No.

G.S.R. No.

Date

Description

Central Tax (Non-tariff) Notifications 1/2017

G.S.R. 605(E)

19 June 2017

Notifying particular sections of the CGST Act, 2017

2/2017

G.S.R. 609(E)

19 June 2017

Appointment and jurisdiction of Central Tax Officers

3 /2017

G.S.R. 610(E)

19 June 2017

Notifying the CGST Rules, 2017

4/2017

G.S.R. 606(E)

19 June 2017

Notifying www.gst.gov.in as the Common Goods and Services Tax Electronic Portal

5/2017

G.S.R. 607(E)

19 June 2017

Specifying the category of persons exempted from obtaining registration under the Act, which is persons only engaged in making taxable supplies

6/2017

G.S.R. 608(E)

19 June 2017

Notifying the modes of verification for the purpose of rule 26(1) of the CGST Rules, 2017

7/2017

G.S.R. 644(E)

19 June 2017

Amending Notification No. 3/2017-Central Tax which notified the CGST Rules, 2017

8/2017

G.S.R. 647(E)

27 June 2017

Notifying the turnover limit for Composition Levy for CGST

9/2017

G.S.R. 658(E)

28 June 2017

Notifying particular sections of the CGST Act, 2017

10 /2017

G.S.R. 663(E)

28 June 2017

Amending Notification No. 3/2017-Central Tax which notified the CGST Rules, 2017

11/2017

G.S.R. 659(E)

28 June 2017

Amending Notification No. 6/2017-Central Tax

12/2017

G.S.R. 660(E)

28 June 2017

Notifying the number of HSN digits required on tax invoice

13/2017

G.S.R. 661(E)

28 June 2017

Prescribing the rate of interest under the CGST Act, 2017

14/2017

G.S.R. 818(E)

1 July 2017

Assigning jurisdiction and power to officers of various directorates xliii

GST - Laws, Concepts & Impact Analysis for Traders and Service Providers Notification No.

G.S.R. No.

Date

Description

15/2017

G.S.R. 819(E)

1 July 2017

Amending Notification No. 10/2017-Central Tax

16/2017

G.S.R. 848(E)

7 July 2017

Specifying the conditions and safeguards for furnishing a Letter of Undertaking in place of a bond for export without payment of integrated tax Corrigendum dated 10 July 2017

17/2017

G.S.R. 965(E)

27 July 2017

Amending the CGST Rules, 2017

Central Tax (Tariff) Notifications 1/2017

G.S.R. 673(E)

28 June 2017

Notifying the CGST rate schedule for goods Corrigendum dated 30 June 2017 Corrigendum dated 12 July 2017 Corrigendum dated 27 July 2017

2/2017

G.S.R. 674(E)

28 June 2017

Notifying CGST exempt goods under ­­section 11(1) Corrigendum dated 12 July 2017 Corrigendum dated 27 July 2017

xliv

3/2017

G.S.R. 675(E)

28 June 2017

Notifying 2.5% concessional CGST rate for supplies to petroleum operations undertaken under exploration license/mining lease

4/2017

G.S.R. 676(E)

28 June 2017

CGST payable on reverse charge on certain specified supplies of goods under section 9(3)

5/2017

G.S.R. 677(E)

28 June 2017

Supplies of goods in respect of which no refund of unutilised input tax credit shall be allowed under section 54(3)

6/2017

G.S.R. 678(E)

28 June 2017

Refund of 50% of CGST on supplies to CSD under section 55

7/2017

G.S.R. 679(E)

28 June 2017

Exemption from CGST to supplies by CSD to Unit Run Canteens and supplies by CSD/ Unit Run Canteens to authorised customers notified under section 11(1)

8/2017

G.S.R. 680(E)

28 June 2017

CGST exemption from reverse charge upto Rs. 5000 per day under section 11(1)

CD Contents Notification No.

G.S.R. No.

Date

Description

9/2017

G.S.R. 681(E)

28 June 2017

Exempting supplies to a TDS deductor by a supplier, who is not registered, under section 11(1)

10/2017

G.S.R. 682(E)

28 June 2017

CGST exemption for dealers operating under Margin Scheme notified under section 11(1)

11/2017

G.S.R. 690(E)

28 June 2017

Notifying the rates for supply of services under CGST Act Annexure: Scheme of Classification of Services

12/2017

G.S.R. 691(E)

28 June 2017

Notifying the exemptions on supply of services under the CGST Act

13/2017

G.S.R. 692(E)

28 June 2017

Notifying the categories of services on which tax will be payable under reverse charge mechanism under the CGST Act

14/2017

G.S.R. 693(E)

28 June 2017

Notifying the supplies which shall be treated neither as a supply of goods nor as a supply of service under the CGST Act

15/2017

G.S.R. 694(E)

28 June 2017

Notifying the supplies not eligible for refund of unutilized input tax credit under the CGST Act

16/2017

G.S.R. 695(E)

28 June 2017

Notifying specialised agencies entitled to claim a refund of taxes paid on the notified supplies of goods or services or both received by them under the CGST Act

17/2017

G.S.R. 696(E)

28 June 2017

Notifying the categories of services the tax on intra-State supplies of which shall be paid by the electronic commerce operator

18/2017

G.S.R. 807(E)

30 June 2017

Reduction of the rate of Central Tax, Union Territory Tax, on fertilisers from 6% to 2.5% and Integrated Tax rate on fertilisers from 12% to 5%

Integrated Tax (Non-tariff) Notifications 1/2017

G.S.R. 603(E)

19 June 2017

Notifying particular sections of the IGST Act, 2017

2/2017

G.S.R. 604(E)

19 June 2017

Notifying that persons only engaged in making taxable supplies exempt from obtaining registration under the DGST Act

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GST - Laws, Concepts & Impact Analysis for Traders and Service Providers Notification No.

G.S.R. No.

Date

Description

3/2017

G.S.R. 662(E)

28 June 2017

Notifying particular sections of the IGST Act, 2017

4/2017

G.S.R. 699(E)

28 June 2017

Notifying the IGST Rules, 2017

5/2017

G.S.R. 697(E)

28 June 2017

Notifying the number of HSN digits required on tax invoice Act

6/2017

G.S.R. 698(E)

28 June 2017

Prescribing the rate of interest under the IGST Act, 2017

Integrated Tax (Tariff) Notifications 1/2017

G.S.R. 666(E)

28 June 2017

Notifying the rate of integrated tax Corrigendum dated 30 June 2017 Corrigendum dated 12 July 2017 Corrigendum dated 27 July 2017

2/2017

G.S.R. 667(E)

28 June 2017

Exemption from IGST to inter-State supplies of particular goods Corrigendum dated 12 July 2017 Corrigendum dated 27 July 2017

3/2017

G.S.R. 668(E)

28 June 2017

Exemption from IGST to inter-State supplies of particular goods

4/2017

G.S.R. 669(E)

28 June 2017

Supply of goods in respect of which tax payable on reverse charge basis by recipient of inter-State supply of such goods Corrigendum dated 30 June 2017

5/2017

G.S.R. 670(E)

28 June 2017

Supplies of goods in respect of which no refund of unutilised input tax credit shall be allowed

6/2017

G.S.R. 671(E)

28 June 2017

Prescribing refund of 50% of IGST on supplies to CSD

7/2017

G.S.R. 672(E)

28 June 2017

Exemption from IGST to supplies by CSD to Unit Run Canteens and supplies by CSD/ Unit Run Canteens to authorised customers

8/2017

G.S.R. 683(E)

28 June 2017

To notify the rates for supply of services under IGST Act Corrigendum dated 30 June 2017 Corrigendum dated 5 July 2017

xlvi

CD Contents Notification No.

G.S.R. No.

Date

Description

9/2017

G.S.R. 684(E)

28 June 2017

Exemption from IGST to inter-State supply of particular services

10/2017

G.S.R. 685(E)

28 June 2017

Notifying the categories of services on which integrated tax will be payable under reverse charge mechanism under the IGST Act

11/2017

G.S.R. 686(E)

28 June 2017

Notifying the supplies which shall be treated neither as a supply of goods nor as a supply of service under the IGST Act

12/2017

G.S.R. 687(E)

28 June 2017

Notifying the supplies not eligible for refund of unutilized Input Tax Credit under the IGST Act

13/2017

G.S.R. 688(E)

28 June 2017

Notifying specialised agencies entitled to claim a refund of taxes paid on the notified supplies of goods or services or both received by them under the IGST Act

14/2017

G.S.R. 689(E)

28 June 2017

Notifying the categories of services the tax on inter-State supplies of which shall be paid by the electronic commerce operator

15/2017

G.S.R. 740(E)

30 June 2017

Exemption from integrated tax to SEZ rescinded except as respects things done or omitted to be done before such rescission

16/2017

G.S.R. 809(E)

30 June 2017

Reduction of the rate of Central Tax, Union Territory Tax, on fertilisers from 6% to 2.5% and Integrated Tax rate on fertilisers from 12% to 5%

17/2017

G.S.R. 834(E)

5 July 2017

Rescinding Notification No. 15/2017-Integrated Tax (Rate) dated 30th June 2017

18/2017

G.S.R. 835(E)

5 July 2017

Exemption from IGST to SEZs on import of services by a unit/developer in a SEZ

Compensation Cess (Non-tariff) Notifications 1/2017

G.S.R. 700(E)

28 June 2017

Appointing 1st day of July, 2017, as the date on which all the provisions of Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017) shall come into force

2/2017

G.S.R. 820(E)

01 July 2017

Notifying the Goods and Services Tax Compensation Cess Rules, 2017

xlvii

GST - Laws, Concepts & Impact Analysis for Traders and Service Providers Notification No.

G.S.R. No.

Date

Description

Compensation Cess (Tariff) Notifications 1/2017

G.S.R. 720(E)

28 June 2017

Notifying the rates of goods and services tax compensation cess under the Goods and Services Tax (Compensation to States) Act, 2017 Corrigendum dated 30 June 2017

2/2017

G.S.R. 709(E)

28 June 2017

Notifying the rates of compensation cess on supply of specified services Corrigendum dated 1 July 2017

3/2017

G.S.R. 892(E)

18 July 2017

Amending Notification No. 1/2017 so as to increase the Compensation Cess rates on cigarettes as mentioned in the notification with effect from 18-07-2017

04/2017

G.S.R. (E)

20 July 2017

Exempting intra-State supplies of second hand goods received by a registered person, who pays the goods and services tax compensation cess on the value of outward supply of such second hand goods, from any supplier, who is not registered, from the whole of the goods and services tax compensation cess leviable thereon

Central Excise (Non-Tariff) Notifications 20/2017

G.S.R. 734(E)

30 June 2017

Notifying the CENVAT Credit Rules, 2017

21/2017

G.S.R. 735(E)

30 June 2017

Issuance of Credit Transfer Document to a dealer to evidence payment of excise duty on goods manufactured and cleared under invoice before 1st July, 2017

Customs – IGST Exemption Notifications 31/2017

G.S.R. 766 (E)

30 June 2017

Granting exemption to unclaimed postal articles

33/2017

G.S.R. 768 (E)

30 June 2017

Granting exemption to re-import of challenge cup and trophies, won by Defence units

36/2017

G.S.R. 771 (E)

30 June 2017

Granting exemption to imports by VicePresident of India on appointment or during his tenure of office

xlviii

re-import

of

CD Contents Notification No.

G.S.R. No.

Date

37/2017

G.S.R. 772 (E)

30 June 2017

Granting exemption to imports relating to Defence and internal security forces

38/2017

G.S.R. 773(E)

30 June 2017

Granting exemption to re-import of engines and parts of aircraft

39/2017

G.S.R. 774(E)

30 June 2017

Amending Notification No. 3/57-Customs 8-01-1957 so as to provide exemption to imports by Diplomats, Trade Representatives

41/2017

G.S.R. 776(E)

30 June 2017

Granting exemption to Challenge cups, trophies and medals and prizes etc. won by Indian players

42/2017

G.S.R. 777(E)

30 June 2017

Amending Notification Nos. 102/2007 14-09-2007, 4/99 8-01-1999, and 172/1994 30-09-1994

43/2017

G.S.R. 778(E)

30 June 2017

Amending the specified exemption notifications relating to re-import, bilateral/ multilateral agreements, imports by defence, security, sportsperson etc.

44/2017

G.S.R. 779(E)

30 June 2017

Amending the specified exemption notifications relating to re-import of personal private property, articles supplied free under warranty, free gifts, donations by charitable organisations etc.

45/2017

G.S.R. 780(E)

30 June 2017

Granting exemption to re-import of goods exported under duty drawback, rebate of duty or under bond on or after 1-07-2017

46/2017

G.S.R. 781(E)

30 June 2017

Granting exemption to re-import of goods exported under duty drawback, rebate of duty or under bond on or before 30-06-2017

50/2017

G.S.R. 785(E)

30 June 2017

Superseding Notification No. Customs 17-03-2012 and 12/2012-­ prescribing effective rates of customs duty and IGST for goods imported into India

G.S.R. 817(E)

1 July 2017

Corrigendum to Notification No. 50/2017

G.S.R. (E)

3 July 2017

Corrigendum to Notification No. 50/2017

G.S.R. 788(E)

30 June 2017

53/2017

Description

Levying Special Additional Duty on the s­ pecified goods

xlix

GST - Laws, Concepts & Impact Analysis for Traders and Service Providers Notification No.

G.S.R. No.

Date

Description

54/2017

G.S.R. 789(E)

30 June 2017

Exempting Education Cess on IGST and ­Compensation Cess on import of goods

55/2017

G.S.R. 790(E)

30 June 2017

Exempting Education Cess on IGST and ­Compensation Cess on import of goods

64/2017

G.S.R. 833(E)

5 July 2017

IGST exemption to SEZs on import of goods by a unit/developer in an SEZ

65/2017

G.S.R. 850(E)

8 July 2017

Amending Notification 50/2017-Customs dated 30-06-2017

66/2017

G.S.R. 853(E)

10 July 2017

Increasing the import duty on sugar Raw sugar [Refined or White sugar—Raw sugar if imported by bulk consumer under tariff head 1701, from the present 40% to 50% with immediate effect and without an end date]

No.

LIST OF FORMS Form No.

Description Composition Forms

Form GST CMP–01

Intimation to pay tax under section 10 (composition levy) (Only for persons registered under the existing law migrating on the appointed day)

Form GST CMP–02

Intimation to pay tax under section 10 (composition levy) (For persons registered under the Act)

Form GST CMP–03

Intimation of details of stock on date of opting for composition levy (Only for persons registered under the existing law migrating on the appointed day)

Form GST CMP–04

Intimation/Application for Withdrawal from Composition Levy

Form GST CMP–05

Notice for denial of option to pay tax under section 10

Form GST CMP–06

Reply to the notice to show cause

Form GST CMP–07

Order for acceptance/rejection of reply to show cause notice Registration Forms

l

Form GST REG–01

Application for Registration

Form GST REG–02

Acknowledgment

CD Contents Form No.

Description

Form GST REG–03

Notice for Seeking Additional Information/Clarification/ Documents relating to Application for <<Registration/ Amendment/Cancellation >>

Form GST REG–04

Clarification/additional information/document <<Registration/Amendment/Cancellation>>

Form GST REG–05

Order of Rejection of Application for <Registration/Amendment/ Cancellation/>

Form GST REG–06

Registration Certificate

Form GST REG–07

Application for Registration as Tax Deductor at source (u/s 51) or Tax Collector at source (u/s 52)

Form GST REG–08

Order of Cancellation of Registration as Tax Deductor at source or Tax Collector at source

Form GST REG–09

Application for Registration of Non Resident Taxable Person

Form GST REG–10

Application for registration of person supplying online information and data base access or retrieval services from a place outside India to a person in India, other than a registered person.

Form GST REG–11

Application for extension of registration period by casual/nonresident taxable person

Form GST REG–12

Order of Grant of Temporary Registration/ Suo Moto Registration

Form GST REG–13

Application/Form for grant of Unique Identity Number to UN Bodies/mbassies/others

Form GST REG–14

Application for Amendment in (For all types of registered persons)

Form GST REG–15

Order of Amendment

Form GST REG–16

Application for Cancellation of Registration

Form GST REG–17

Show Cause Notice for Cancellation of Registration

Form GST REG–18

Reply to the Show Cause Notice issued for cancellation for registration

Form GST REG–19

Order for Cancellation of Registration

Form GST REG–20

Order for dropping the proceedings for cancellation of registration

Form GST REG–21

Application for Revocation of Cancellation of Registration

Form GST REG–22

Order for revocation of cancellation of registration

Registration

for

Particulars

li

GST - Laws, Concepts & Impact Analysis for Traders and Service Providers Form No.

Description

Form GST REG–23

Show Cause Notice for rejection of application for revocation of cancellation of registration

Form GST REG–24

Reply to the notice for rejection of application for revocation of cancellation of registration

Form GST REG–25

Certificate of Provisional Registration

Form GST REG–26

Application for Enrolment of Existing Taxpayer

Form GST REG–27

Show Cause Notice for cancellation of provisional registration

Form GST REG–28

Order for cancellation of provisional registration

Form GST REG–29

Application for cancellation of provisional registration

Form GST REG–30

Form for Field Visit Report Center Jurisdiction (Ward/Circle/ Zone) Input Tax Credit Forms

Form GST ITC–01

Declaration for claim of input tax credit under sub-section (1) of section 18

Form GST ITC–02

Declaration for transfer of ITC in case of sale, merger, demerger, amalgamation, lease or transfer of a business under sub-section (3) of section 18

Form GST ITC–03

Declaration for intimation of ITC reversal/payment of tax on inputs held in stock, inputs contained in semi-finished and finished goods held in stock and capital goods under sub-section (4) of section 18

Form GST ITC–04

Details of goods/capital goods sent to job worker and received back Accounts and Records Forms

Form GST ENR–01

Application for Enrolment u/s 35 (2) Return Forms

Form GSTR–01 Form GSTR–01A

Details of auto drafted supplies (From GSTR 2, GSTR 4 or GSTR 6 )

Form GSTR–02

Details of inward supplies of goods or services

Form GSTR–2A

Details of auto drafted supplies (From GSTR 1, GSTR 5, GSTR6, GSTR-7 and GSTR-8)

Form GSTR–3 lii

Details of outward supplies of goods or services

Monthly return

CD Contents Form No.

Description

Form GSTR–3A

Notice to return defaulter u/s 46 for not filing return

Form GSTR–3B

Monthly return in case period for furnishing return is extended

Form GSTR–4

Quarterly return for registered person opting for composition levy

Form GSTR–4A

Auto-drafted details for registered person opting for composition levy (Auto-drafted from GSTR-1, GSTR-5 and GSTR-7)

Form GSTR–5 Form GSTR–5A

Form GSTR–6 Form GSTR–6A

Return for Non-resident taxable person Details of supplies of online information and database access or retrieval services by a person located outside India made to nontaxable persons in India Return for input service distributor Details of supplies auto-drafted form (Auto-drafted from GSTR1)

Form GSTR–7

Return for Tax Deducted at Source

Form GSTR–7A

Tax Deduction at Source Certificate

Form GSTR–8

Statement for tax collection at source

Form GSTR–11

Statement of inward supplies by persons having Unique Identification Number (UIN) GST Practitioner Forms

Form GST PCT–01

Application for Enrolment as Goods and Services Tax Practitioner

Form GST PCT–02

Enrolment Certificate of Goods and Services Tax Practitioner

Form GST PCT–03

Show Cause Notice for disqualification

Form GST PCT–04

Order of rejection of enrolment as GST Practitioner

Form GST PCT–05

Authorisation/withdrawal of authorisation for Goods and Services Tax Practitioner Payment Forms

Form GST PMT–01

Electronic Liability Register of Registered Person (Part–I: Return related liabilities) (To be maintained at the Common Portal)

Form GST PMT–02

Electronic Liability Register of Taxable Person (Part–II: Other than return related liabilities) (To be maintained at the Common Portal)

Form GST PMT–02

Electronic Credit Ledger of Registered Person (To be maintained at the Common Portal)

liii

GST - Laws, Concepts & Impact Analysis for Traders and Service Providers Form No.

Description

Form GST PMT–03

Order for re-credit of the amount to cash or credit ledger on rejection of refund claim

Form GST PMT–04

Application for intimation of discrepancy in Electronic Credit Ledger/Cash Ledger/Liability Register

Form GST PMT–05

Electronic Cash Ledger (To be maintained at the Common Portal)

Form GST PMT–06

Challan for deposit of goods and services tax

Form GST PMT–07

Application for intimating discrepancy relating to payment Refund Forms

Form GST RFD–01

Application for Refund

Form GST RFD–02

Acknowledgment

Form GST RFD–03

Deficiency Memo

Form GST RFD–04

Provisional Refund Order

Form GST RFD–05

Payment Advice

Form GST RFD–06

Refund Sanction/Rejection Order

Form GST RFD–07

Order for Complete adjustment of sanctioned Refund

Form GST RFD–08

Notice for rejection of application for refund

Form GST RFD–09

Reply to show cause notice

Form GST RFD–10

Application for Refund by any specialized agency of UN or any Multilateral Financial Institution and Organization, Consulate or Embassy of foreign countries, etc.

Form GST RFD–11

Furnishing of bond or Letter of Undertaking for export of goods or services Provisional Assessment Forms

Form GST ASMT–01

Application for Provisional Assessment under section 60

Form GST ASMT–02

Notice for Seeking Additional Information/Clarification/ Documents for provisional assessment

Form GST ASMT–03

Reply to the notice seeking additional information

Form GST ASMT–04

Order of Provisional Assessment

Form GST ASMT–05

Furnishing of Security

Form GST ASMT–06

Notice for seeking additional information/clarification/documents for final assessment

liv

CD Contents Form No.

Description

Form GST ASMT–07

Final Assessment Order

Form GST ASMT–08

Application for Withdrawal of Security

Form GST ASMT–09

Order for release of security or rejecting the application

Form GST ASMT–10

Notice for intimating discrepancies in the return after scrutiny

Form GST ASMT–11

Reply to the notice issued under section 61 intimating discrepancies in the return

Form GST ASMT–12

Order of acceptance of reply against the notice issued under section 61

Form GST ASMT–13

Assessment order under section 62

Form GST ASMT–14

Show Cause Notice for assessment under section 63

Form GST ASMT–15

Assessment order under section 63

Form GST ASMT–16

Assessment order under section 64

Form GST ASMT–17

Application for withdrawal of assessment order issued under section 64

Form GST ASMT–18

Acceptance or Rejection of application filed under section 64 (2) Audit Forms

Form GST ADT–01

Notice for conducting audit

Form GST ADT–02

Audit Report under section 65(6)

Form GST ADT–03

Communication to the registered person for conduct of special audit under section 66

Form GST ADT–04

Information of Findings upon Special Audit Advance Ruling Forms

Form GST ARA–01

Application Form for Advance Ruling

Form GST ARA–02

Appeal to the Appellate Authority for Advance Ruling

Form GST ARA–03

Appeal to the Appellate Authority for Advance Ruling Appeal Forms

Form GST APL–01

Appeal to Appellate Authority

Form GST APL–02

Acknowledgment for submission of appeal

Form GST APL–03

Application to the Appellate Authority under sub-section (2) of Section 107

lv

GST - Laws, Concepts & Impact Analysis for Traders and Service Providers Form No.

Description

Form GST APL–04

Summary of the demand after issue of order by the Appellate Authority, Tribunal or Court

Form GST APL–05

Appeal to the Appellate Tribunal

Form GST APL–06

Cross-objections before the Appellate Tribunal under sub-section (5) of section 112

Form GST APL–07

Application to the Appellate Tribunal under sub section (3) of Section 112

Form GST APL–08

Appeal to the High Court under section 117 Transition Forms

Form GST TRAN–01

Transitional ITC/Stock Statement

Form GST TRAN–02

Statement of details for supplies of goods effected during the tax period Inspection, Search and Seizure Forms

Form GST INS–01

Authorisation for Inspection or Search

Form GST INS–02

Order of Seizure

Form GST INS–03

Order of Prohibition

Form GST INS–04

Bond for Release of Goods Seized

Form GST INS–05

Order of Release of Goods/Things of Prishable or Hazardous Nature Demand and Recovery Forms

Form GST DRC–01

Summary of Show Cause Notice

Form GST DRC–02

Summary of Statement

Form GST DRC–03

Intimation of payment made voluntarily or made against the show cause notice (SCN) or statement

Form GST DRC–04

Acknowledgement of acceptance of payment made voluntarily

Form GST DRC–05

Intimation of conclusion of proceedings

Form GST DRC–06

Reply to the Show Cause Notice

Form GST DRC–07

Summary of the order

Form GST DRC–08

Rectification of Order

Form GST DRC–09

Order for recovery through specified officer under section 79

lvi

CD Contents Form No.

Description

Form GST DRC–10

Notice for Auction of Goods under section 79 (1) (b) of the Act

Form GST DRC–11

Notice to successful bidder

Form GST DRC–12

Sale Certificate

Form GST DRC–13

Notice to a third person under section 79(1) (c)

Form GST DRC–14

Certificate of Payment to a Third Person

Form GST DRC–15

Application before the Civil Court Requesting Execution for a Decree

Form GST DRC–16

Notice for attachment and sale of immovable/movable goods/ shares under section 79

Form GST DRC–17

Notice for Auction of Immovable/Movable Property under section 79(1) (d)

Form GST DRC–18

Certificate action under clause (e) of sub-section (1) section 79

Form GST DRC–19

Application to the Magistrate for Recovery as Fine

Form GST DRC–20

Application for Deferred Payment/Payment in Instalments

Form GST DRC–21

Order for acceptance/rejection of application for deferred payment/payment in instalments

Form GST DRC–22

Provisional attachment of property under section 83

Form GST DRC–23

Restoration of provisionally attached property/bank account under section 83

Form GST DRC–24

Intimation to Liquidator for recovery of amount

Form GST DRC–25

Continuation of Recovery Proceedings Compounding of Offence Forms

Form GST CPD–01

Application for Compounding of Offence

Form GST CPD–02

Order for rejection/allowance of compounding of offence

FAQs FAQs issued by CBEC on 31st March 2017 GST Twitter Handle FAQs GST Migration - Advisory GST Migration - FAQs

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