Goods & Service Tax (GST) - India - Sampat &...

Goods & Service Tax(GST) - India

Biggest Tax Reform Since Independence….

Sampat & Mehta, GST Conference at Sofitel, Mumbai

Basic Concepts

What is GST ?▪ Goods and Service Tax (GST) is a comprehensive tax levy on manufacture,

sale and consumption of goods and service at a national level.

▪ No differentiation between goods and services as GST is levied at each stage inthe supply chain.

▪ Seamless input tax credit throughout the supply chain.

▪ The definition of GST as per Article 366(12A) of the Constitution of Indiais as follows:

“any tax on supply of goods or services or both except taxes on supplyof the alcoholic liquor for human consumption”

Currently, Petroleum Products are also not covered under GST Act. But, infuture it will be covered under GST.

Introduction - GST

▪ One tax, one nation

▪ Biggest tax reforms

▪ Mixtures of all existing indirect tax Acts

▪ Dual GST

▪ Remove cascading effects

Levy of GST will be operationalize by enacting followings Acts

▪ IGST Act by Central Government = 1 Act

▪ CGST Act by Central Government = 1 Act

▪ SGST Act by each State Government (Delhi and Pondicherry will also pass SGST Act) = 28 + 2 Act

▪ UT-GST Act by Central Government = 1 Act

▪ Compensation Act by Central Government = 1 Act

▪ Total = 34 Acts

Global scenario

▪ Currently around 160 countries have already introduced GST/National VAT.

▪ France was the first country to introduce GST system in 1954.

▪ Canada and Brazil alone have a dual VAT.

▪ Standard GST rate in most countries ranges between 15-20%.

▪ Centre has enacted CGST Act, IGST Act, UTGST Act on April 12, 2017

▪ GST to be effective from date to be notified by the Central Government

▪ Likely to roll out by July 1, 2017

Tax Structure in India after GST Implementation

Tax Structure

Direct Tax

Income Tax

Indirect

GST

Intra- state

CGST (Central) SGST (State)

Inter State

IGST (Central)

Basic Custom Duty

Framework of GST

Authority • Article 246 A of the Constitution – given to Centre, State and UT

Taxable Territory • Whole of India except the State of Jammu and Kashmir

Taxable Person• Registered Person – 2(94) of CGST• Taxable Person – 2(107) of CGST

Taxable Event • Supply of Goods / Services

Time of Payment • Time of Supply of Goods / Services

Whom to Pay • Place of Supply of Goods / Services

How much to Pay• Valuation (Sec 15 of CGST + Valuation Rule)• Rate of GST• Input Tax Credit

Compliances

• Registration• Payment• Returns• Refund / Assessments

Taxable Territory

GST Act extents to the whole of India except the State of Jammu and Kashmir

What is India ?

Land part and includes Air SpaceTerritorial Water [up to 12 nautical

miles] and includes Air space, Seabed and subsoil

Exclusive Economic Zone, Other Maritime Zone and includes

installation, structures and vessels

Continental Shelf and includes installation, structures and vessels

28 States

7 UT

Subsuming of Existing Indirect Taxes under CGST

CGST

Central Excise Duty

under Central Act

Additional Excise Duty

Service Tax under

Finance Act, 1994

CVD(Counter vailing -Customs

Duty)

SpecialAdditional Duty (SAD) of Customs

Central Surcharges,

Cesses

Subsuming of Existing Indirect Taxes under SGST

SGST

Value Added Tax

Entertainment tax

Central SalesTax

Entry TaxLuxury Tax

Lottery, Betting and

Gambling Tax

State surcharges,

Cesses

When to charge IGST or CGST and SGST

Supply

Intra State Supply

CGST & SGST

Inter State Supply

IGST

Import

BCD & IGST

Export & Deemed Export

Zero rate

S. S. Rajamouli (Supplier)

Bahubali Pvt. Ltd.

(Mumbai)

Import of Finished Goods

Outside India

Sale toDelhi

Sale to PuneSale to SEZ

IGST

CGST, SGST

No Tax

Example on When to charge IGST or CGST and SGST

Example on Cascading Effect of Taxes and Input Tax Credit Flow

Manufacturer Pvt Ltd Present Scenario GST

Manufacturing Price 5,000 5,000

( + ) Excise (Tax) @ 12.5% 625 0

Total 5,625 5,000

( + ) CST (Tax) 2%(+) GST @ 12% (assumed)

113600

Sale Price of a Product 5,738 5,600

Tax to be paid to Government Output Liability = 738 Output Liability = 600

Rate Structure

Description Rate

Exports, Deemed Exports, Essential Items (vegetables, food grains, milk etc )

0%

Common use items / necessary items (bulk drugs etc) 5%

Standard rate 12% / 18%

Demerit rate (tobacco products, luxury items, aerated beverages) 28%

GST Rates for Services as approved by GST CouncilServices of GTA in relation to transport of goods and Renting of Motor cab

5% - No ITC

GST Rates for Services as approved by GST Council

Selling of space for Advertisement in print media – 5% Full ITC

Temporary/ Permanent Transfer ofIntellectual Property Rights – 12% FullITC

GST Rates for Services as approved by GST CouncilRenting of Hotels, inns, Guest houses, Clubs, Campsites etc for residential or

lodging purpose

Room Tariff per night GST Rate

Rs. 1,000 to Rs. 2,500 12% Full ITC

Rs. 2,500 to Rs. 5,000 18% Full ITC

Above Rs. 5,000 including 5 star 28% Full ITC

GST Rates for Services as approved by GST CouncilSupply of Food / Drinks – Restaurant/ Outdoor Catering

License to serve Liquor – 18% Full ITC

AC Restaurant – 18% Full ITC

Outdoor Catering – 18% Full ITC AC Restaurant in 5* or

above hotel – 28% Full ITC

Restaurant with No AC and no Liquor License – 12% Full ITC

GST Rates for Services as approved by GST CouncilConstruction intended for a sale to buyer

▪ Construction of a Complex, Building, Civil Structure or a part thereof.

▪ The value of land is included

▪ 12% Full ITC, No refund of overflow of ITC

GST Rates for Services as approved by GST CouncilAll Other Services not specified – 18% Full ITC

Few examples of all other services which are not specified

▪ Renting of immovable properties for commercial use;

▪ Services of CA, CS, Consultants;

▪ Commission/Brokerage;

▪ Job work Charges;

▪ Inspection Services;

▪ Maintenance Contract and many more

Services Exempted in GST as decided by GST Council

▪ Total 85 exempt services notified.

▪ Toll charges for access to road or bridge.

▪ Transmission or distribution of electricity.

▪ Renting of residential dwelling for Residential use.

▪ Service by entity registered u/s 12AA of Income Tax Act (Charitable trusts)

▪ Services by Hotel, inn, guest house etc for residential or lodging purpose having declared tariff per day less than Rs. 1,000.

▪ Health care services and services of ambulance.

Scope of Supply(Section 7 of CGST Act)

Certain Definition – CGST/IGST Act

Section 2(52) of CGST ActGoods

• Every kind of movable property other than money and securities but includes actionable claim, growingcrops, grass and things attached to or forming part of the land which are agreed to be severed beforesupply or under a contract of supply

Section 2(72) of CGST ActManufacture

• Processing of raw material or inputs in any manner that results in emergence of a new product having adistinct name, character and use and the term “manufacturer” shall be construed accordingly

Section 2(102) of CGST ActServices

• Anything other than goods, money and securities but includes activities relating to the use of money or itsconversion by cash or by any other mode, from one form, currency or denomination, to another form,currency or denomination for which a separate consideration is charged

Section 2(94) of CGST ActRegistered Person

• A Person who is registered under section 25 but does not include a person having a Unique IdentityNumber

Section 2(105) of CGST ActSupplier

• The person supplying the said goods or services or both and shall include an agent acting as such onbehalf of such supplier in relation to the goods or services or both supplied

Section 2(107) of CGST ActTaxable Person

• A Person who is registered or liable to be registered under section 22 or section 24 of CGST Act


Section 2(50) of CGST ActFixed Establishment

• Place (other than the business establishment) which has the permanent presence of human and technicalresources to provide/ receive a service. Temporary presence of staff by way of a short visit at a placecannot be called a fixed establishment

Section 2(89) of CGST Act

Principal Place of Business

• The place of business specified as the principal place of business in the certificate of registration

Section 2(113) of CGST ActUsual Place of Residence

• In case of a body corporate - the place where it is incorporated or otherwise legally constituted• In case of individual – the place (country, state etc) where the individual spends most of his time for the

period in question, such as, the place where the individual has set up his home, or where he lives with hisfamily and is in full time employment


Section 2(31) of CGST ActConsideration

• Any Payment made / to be made in money or otherwise, the monetary value of any act or forbearance• In respect of / in response to or for the inducement of the supply of goods and or services whether by

recipient or by any other person• Deposit to be treated as consideration only when adjusted against Supply.• Consideration excludes Subsidy given by Central or State Government

Section 25(4) of CGST ActDistinct Person

• An establishment in such state and establishments in other state shall be treated as distinct persons.• Example : Suppose ABC Private Limited has one branch in Pune, Maharashtra and other branch in

Chennai, Tamilnadu then it will be considered a Distinct persons under GST Act.



Section 2(39) of CGST ActDeemed Exports

• Supplies of goods as may be notified under Section 147• Under Section 147 : Government may, on the recommendations of the council, notify certain supplies of

goods as deemed exports, where goods supplied do not leave India, and payment for such supplies isreceived either in Indian rupees or in convertible foreign exchange, if such goods are manufactured inIndia

Section 2(47) of CGST ActExempt Supply

• Supply of any goods or services or both which attracts Nil rate of tax or which may be wholly exempt from tax under section 11, or under section 6 of the IGST Act, and includes non – taxable supply

Section 2(68) of CGST ActJob Work

• Any treatment or process undertaken by a person on goods belonging to another registered person and the expression ‘job worker’ shall be construed accordingly

Certain Definition – IGST/IGST Act

Section 2(23) of IGST ActZero rated - Supply

• As per Section 16 of IGST Act : Any of the following supplies of Goods or Services or both namely :-• Export of goods or services or both• Supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone

unit

Section 25(9) of the CGST ActUnique Identity Number

• Specifies certain person who shall be required to obtain Unique Identity Number (UID) as againstregistration number

• The Specified persons are:• Any specialized agency of United Nations Organization or any Multilateral Financial Institution and

organization notified under the United Nations Act, 1947; Consulate or Embassy of Foreign countries• Any other person or class of person notified by the Commissioner


As per Explanation u/s 15(3) of CGST ActRelated Person

• Officers / Directors of one another’s business• Partners in business• Employer – Employee• A person directly/ indirectly owns/ controls/ holds 25% of shares of both the persons• One directly/ indirectly controls the other• Both are directly/ indirectly controlled by a third person• Together, they directly/ indirectly control a third person• Members of the same family• Sole agent / distributor of the other,

Scope of Supply

Section 7(1)(a) of CGST Act

Sale, Transfer, barter, exchange, license, rental, lease, disposal made or

agreed to be made

For Consideration

In the course or furtherance of Business

Section 7(1)(b) of CGST Act

Importation of Services

For Consideration

Whether or Not in the course or furtherance of

business

Section 7(1)(c) of CGST Act

Activities specified in Schedule I

Without Consideration

Section 7(1)(d) of CGST Act

Activities to be treated as supply of goods or services as referred in

Schedule II

All Forms of supply of Goods or Services or Both

Neither as a supply of Goods nor a supply of Services.

• Activities specified in Schedule III

• Notified supplies made by CG/ SG/ Local Authority as public Authority

Schedule I : Activities to be treated as supply even if made without consideration

▪ Permanent transfer / disposal of business assets where input tax credit has been availed on such assets:

o Proprietor/Partner transferring goods for personal use (example)

▪ Supply of goods or services between related persons, or between distinct persons :

o Branch / Depot Transfer

o Services provided by Head Office / Corporate Office to its Branch Offices or Regional offices

Provided that gifts not exceeding fifty thousand rupees in value in a financial year by an employer to anemployee shall not be treated as supply of goods or services or both

▪ Supply of Goods:

o By a principal to his agent where the agent undertakes to supply such goods on behalf of the principal; or

o By an agent to his principal where the agent undertakes to receive such goods on behalf of the principal

▪ Import of services by a taxable person from a related person or from any of his other establishments outside India,in the course or furtherance of business

Example : Scope of Supply

Permanent Transfer / Disposal of

Business Asset where Input Tax Credit has been availed on such

assets

Example : LLP has transferred

assets to Partner without

Consideration. Value of Assets :

Rs.100 and Rs.10 Input Credit is availed by LLP

Since, LLP has taken Input tax

credit of Asset so when it is

transferred to Partner it will be Supply and it is subject to GST.

Example : Scope of Supply

Supply of Goods or Services

between related person or

distinct person

Example :

A Ltd of Mumbai has made the

transfer of FG to its Branch B Ltd

of Surat

As per the definition of

Supply transfer to distinct person

without consideration is a

Supply so this kind of

transaction will be subject to the

levy of GST

Schedule II : Activities to be treated as Supply of Goods or Supply of Services

Clause Transaction Nature of Supply

1(a) Transfer of title in goods Goods

1(b) Transfer of: (Without transfer of title) ▪ rights in goods; or ▪ undivided share in goods

Service

1(c) Transfer of title in goods at future date upon payment of full consideration

Goods

2(a) Lease, tenancy, easement, license to occupy land Service

2(b) Lease or letting out of building including commercial, industrial or residential complex (wholly or partly) for business or commerce

Service



3 Treatment or processing of other’s goods (job work) Service

4(a)

4(c)

Transfer of business assets:▪ Transfer / disposal of goods forming part of business asset (with or

without consideration)▪ When a person ceases to be a taxable person except when:

o Business transferred as going concern o Business carried on by a personal representative (deemed to be a

taxable person)

Goods

4(b) Business assets put to private use or for any purpose other than business (With or without consideration)

Service

5(a) Renting of immovable property Service



5(b) Sale of under construction flats / units (money received before CC or First occupation certificate)

Service

5(c) Temporary transfer or permitting use or enjoyment of IPR Service

5(d) Development, design, programming, customization etc. of IT Software Service

5(e) Agreeing to the obligation to: ▪ Refrain from an act; or ▪ Tolerate an act or situation; or▪ Do an act

Service

5(f) Transfer of right to use any goods for any purpose whether or not for specified period for consideration

Service



6(a) Works Contract including transfer of property in goods Service

6(b) Supply of food as a part of service (Outdoor catering and restaurant sale)

Service

7 Supply of goods by an unincorporated association to its members Goods

Schedule III: Activities or Transactions which shall be treated neither as a supply of Goods nor a Supply of Services

▪ Services by an employee to the employer in the course of or in relation to his employment.

▪ Services by any court or Tribunal established under any law for the time being in force.

▪ Other

o the functions performed by the Members of Parliament, Members of State Legislature,Members of Panchayats, Members of Municipalities and Members of other local authorities;

o the duties performed by any person who holds any post in pursuance of the provisions of theConstitution in that capacity; or

o the duties performed by any person as a Chairperson or a Member or a Director in a bodyestablished by the Central Government or a State Government or local authority and who isnot deemed as an employee before the commencement of this clause.

▪ Services of funeral, burial, crematorium or mortuary including transportation of the deceased.

▪ Sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building.

▪ Actionable claims, other than lottery, betting and gambling.

Sale v/s Supply

Particulars Sale Supply

Transfer of Title of Goods is required ?

Presence of more than 1 person to trigger tax (except excise) ?

Consideration is required ?

Place of Supply

Place of Supply of Goods (other than Supply of Goods imported into or exported from India) [Section 10 of IGST Act]

Supply involves movement of Goods

Location of goods at the

time at which movement

terminates for delivery to recipient

Goods supplied on direction of third

person

Principal Place of Business of

the third person (i.e. address in

Registration Certificate)

Supply does not involves movement

of Goods

Location of Goods at the

time of delivery to the recipient

Goods are assembled or

installed at site

Place of installation or

assembly

Goods supplied on board a conveyance Eg. Vessel, aircraft, train, vehicle, etc.

Location at which such

goods are taken on board

Examples : Place of Supply

Supply involves movement of Goods

A of Surat makes supply to B of Pune

and goods are transferred to the

premise of B

Pune (So, IGST to be charged by A in his

Invoice)

Goods Supplied at the direction of third

person

C of Jaipur gave direction to A of

Vadodara to make supply to B of Surat

Jaipur (So, IGST to be charged by A in his

Invoice)

`


Supply does not involve movement of

Goods

A of Surat makes Supply to B of Surat

and there is no movement of Goods as B wants his Goods to be delivered at Pune where the Goods are located at the time of

the supply

Pune (So, IGST to be charged by A in his

Invoice)

Place of Supply of Goods during Import and Export

[Section 11 of IGST Act]

Goods imported into India

Location of Importer

Goods exported

from India

Location outside India


Goods imported in India

A of Mumbai imported goods from Singapore

Mumbai (Pay IGST under RCM along with

BCD)

Goods exported from India

A of Pune exported goods to Germany

Germany (No GST to be paid as Place of Supply is

outside India)`

Place of Supply in relation to Immovable Properties[Section 12(3) of IGST Act]

Lodging Accommodation by hotel, inn, guest house by way of Accommodation in any Immovable Properties

Ancillary Services to above services

Location of Property


Supply in relation to Immovable Properties,

Lodging Accommodation by

Hotel, Inn, etc

Sofitel Hotel of Mumbai gave accommodation to B of Surat who visited Mumbai for Business

meeting

Mumbai (CGST & SGST to be charged by Sofitel

in their Invoice)

Place of Supply of Services [Section 12(4) of IGST Act]

Restaurant and catering services, personal grooming, fitness, beauty treatment, health service including cosmetic and plastic surgery

Location where the services are actually

performed


Supply by Restaurant, catering services, etc

A of Mumbai provides Service in restaurant at Bangalore to B of Delhi

Bangalore (IGST to be charged by A in his

Invoice) `

Place of Supply of Service [Section 12(5) of IGST Act]

If recipient is Registered person,

Location of such person

If recipient is not Registered person

Location where the services are actually

performed

In relation to training and performance appraisal


Supply in relation to training and

performance appraisal

A of Surat provided training to a registered

person B of Mumbai and to the unregistered person C of Mumbai at

Surat Office

In case of B – Mumbai (IGST to be charged by A

in his Invoice)

In case of C – Surat (CGST & SGST to be charged by A in his

Invoice)


Service provided by way of Admission to a cultural, artistic, sporting, scientific, educational, entertainment event, or amusement park or any other

place and services ancillary thereto

Location will be the place where the event is actually held or where the park or such other place is located


Registered recipient

Location of Recipient

Unregistered Recipient

Event is actually held

If outside India, then location of the recipient

Organizing cultural, arts, sports, educational, scientific, entertainment event including

supply of services in relation to a conference, fair, exhibition, celebration or similar event

Services ancillary to above

Place of Supply of Services [Section 12(8), 12(9) & 12(10) of IGST Act]

of Services

Transportation of goods, including by

mail or courier

Registered Recipient : Location of Recipient

Unregistered Recipient : Location where goods are handed over for their transportation

Passenger Transportation Service

(Return journey treated as separate

journey)

Registered Recipient : Place of Registered Recipient

Unregistered Recipient : Place where passenger embarks on the conveyance for a continuous

journey

Services on board conveyance like vessel, aircraft,

train, motor vehicle

First scheduled point of departure of that conveyance for that journey


Transportation of goods, including by

mail or courier

A of Mumbai transported goods to B

of Surat and handed over the goods to Spot

Courier Private Limited in Mumbai

In case B is registered : Surat (IGST to be charged in the Invoice)

In case B is Unregistered : Mumbai (CGST & SGST to be charged in the Invoice)

Place of Supply

Any other services

Registered recipient :

Location of recipient

Unregistered recipient :

Address in supplier’s records

Unregistered recipient :

Location of supplier if address

not available

Definition

Section 2(6) of IGST Act

Export of Services

• the supplier of service is located in India;• the recipient of service is located outside India;• the place of supply of service is outside India;• the payment for such service has been received by the supplier of service in convertible foreign exchange;• the supplier of service and the recipient of service are not merely establishments of a distinct person in

accordance with Explanation 1 in section 8;

Place of supply of Services – where supplier or recipient is outside India [Section 13 & 14 of IGST Act]

Services on which Goods are required to

be made physically available by recipient &

Services requiring physical presence of

receiver / person acting on his behalf

Location where services actually

performed

Services supplied directly in relation to immovable property

Location of such immovable

property (or where it is

intended to be located)

Services by way of admission to /

organizing an event, etc. and ancillary

services

Place where services are

actually performed

Banking services to account holders,

intermediary services, hiring of means of

transport (other than aircraft & vessels) upto

1 month

Location of supplier

Transportation of goods (other than by way of mail / courier)

Destination of Goods.

Passenger transportation service

Place where passenger

embarks on the conveyance for

continuous Journey

Services provided on Board a conveyance

First scheduled point of

departure of that conveyance for

that journey

Online information and database access or retrieval services


Residuary

Location of the recipient(If not available in the ordinary course of business, then

Location of supplier

To Prevent double taxation / non taxation

or for the uniform application of rules, Central Government has power to notify

services / circumstances

Place of effective use and

enjoyment of services

Place of supply of Services – where supplier or recipient is outside India [Section 13 & 14 of IGST Act]

Place of Supply

[Section 12(12), 12(13) & 12(14) of IGST Act]

Banking and other Financial Services

including Stock Broking

Location of recipient in suppliers records

(If not available, location of supplier)

Insurance Services

Registered recipient


Unregistered recipient

Location of recipient in suppliers records

Advertisement Services to

Government, etc

Place is state of dissemination in

proportion

Note : In cases not covered in (2) and (3), address of recipient on records shall be the place of supply

Where no address of the recipient available in records, location of the supplier shall be the place of supply

Service of fixed telecommunication line, leased circuits, internet leased circuit, cable or

dish antenna

Location where above devices are installed

Post paid mobile connection for

telecommunication and internet services

Location of billing address of the recipient

of services

Prepaid mobile connection for telecommunication and

internet services

Through Internet : Location of recipient on

record

Through selling agent : Location of selling agent on

record of supplier

Though others : Location where pre payment

received

Place of supply of telecommunication services including data transfer, broadcasting, cable and direct to home television services to any person shall

[Section 12(11) of IGST Act]

Value of Taxable Supply(Section 15 of CGST Act)

Value of Supply of Goods / Services

WherePrice is the

sole consideration

Supplier and recipient are not related

Transaction Value

Value of Taxable Supply [Section 15(1) of CGST Act]

Transaction Value

Price actually paid or payable

Any Duties, Taxes, etc

OTHER THAN GST

Subsidies directly linked

to Price EXCLUDING

subsidies provided by

CG/SG

Amount paid by recipient on behalf of supplier Eg. Freight paid

by Buyer

INTEREST or LATE FEES or PENALTY for

delayed payment of

any consideration

Incidental Expenses

such as commission, Packing, etc charged by

Supplier

Transaction Value [Section 15(2) of CGST Act]

Discount

Before Supply

Discount has been duly recorded in Invoice i.e Trade

Invoice

At the time of Supply

Discount has been duly recorded in Invoice i.e Trade

Invoice

After Supply

Established in Agreement &

specifically linked to relevant invoice

Corresponding Input Credit

reversed by the Recipient

Transaction Value shall not include [Section 15(3) of CGST Act]

If Value of Supply cannot be determined by

Transaction Value then

Follow

Valuation Rules

Value of Supply

Open Market Value of such Supply

If Open Market Value not available

Consideration in Money (+) Amount equivalent to consideration not in money if such amount is known at the time of supply

Supply of goods/services of like

kind and quality

As per Rule 4 & 5 with Money

Consideration

When the consideration is not wholly in money [Rule 1 of Valuation Rules]

Case 1: When Open Market Value of such Supply is available

Particulars Amount

New Phone Supplied Rs.20,000/- + Exchange of Old Phone

Price of New Phone without Exchange Rs.24,000/-

Open Market Value Rs.24,000/-

Example of When the consideration is not wholly in money [Rule 1 of Valuation Rules]

Case 2: When Open Market Value of such Supply is not available.

Particulars Amount

Laptop Supplied along withbarter of printer

Rs.40,000/- + barter of printer manufacture by recipient

Value of printer at time of Supply Rs.4,000/-

Open market value of laptop Not known (Assumed)

Value of laptop Rs.44,000/-

Example of When the consideration is not wholly in money [Rule 1 of Valuation Rules]

Value of Goods/Services

Open Market Value

If Open Market

Value not available,

then value of Supply

of Goods/Service of

like kind & quality

110% of Cost of

Production

(Rule 4)

Reasonable basis consistent with principle and

general provision

Valuation – Related or Distinct Person (Other than through an Agent) [Rule 2 of Valuation Rules]

Note :

Where recipient is eligible for full ITC, the value declared in invoice shall be open market value of Goods/service

“Supply of goods or services or both of like kind and quality” means any othersupply of goods or services or both made under similar circumstances that, inrespect of the characteristics, quality, quantity, functional components,materials, and reputation of the goods or services or both first mentioned, isthe same as, or closely or substantially resembles, that supply of goods orservices or both.

Value of like Kind and Quality ?

Between Principal & Agent

Value of Goods

Open Market Value of goods being supplied OR 90% of price charged for

supply of like kind & quality by recipient to his customer (not related), where goods are intended for further

supply by recipient

110% of Cost of Production

Reasonable basis consistent with

Principle and General Provision

Valuation of Goods – Through an Agent [Rule 3 of Valuation Rules]

Principal 1

Agent

Sells Groundnut @ 5,000 per

quintal

Customer

Principal 2Sells Groundnut

@ 4,550 per quintal

Example

Value = Rs. 4,550 or Rs. 4,500 (90% of Rs. 5,000) at the option of Supplier

(Principal)

Value

Token Voucher CouponsStamp (other

than Postage)

Redeemable against a supply

Money value of goods or services or both redeemable against such token, voucher, coupons or stamp

Value of token, voucher, etc[Rule 6(6) of Valuation Rules]

E-Way Bill

Draft e-way Bill

Important Points

▪ To be issued by every registered person

▪ For every movement of goods

▪ To be generated from GSTN site before commencement of the movement of Goods

▪ Value > INR 50,000

▪ Can be generated / cancelled through SMS

▪ To be kept by the Supplier, Recipient and Transporter

▪ New Bill to be generated when transporter is transferring goods from one conveyance to another

Draft e-way Bill

When to Issue e-way Bill ?

▪ In relation to Supply

▪ For reason other then Supply (Example : Goods Return)

▪ Inward supply from an Unregistered person

Validity of e-way Bill

Distance Validity Period

< 100 km 1 Day

> 100 km < 300 km 3 Days

> 300 km < 500 km 5 Days

> 500 km < 1000 km 10 Days

> 1000 km 15 Days

Job Work(Section 143 of CGST Act)

Job Work u/s 143 of CGST Act

▪ No GST on RM supplied provided ;o Principal to supply goods under intimation

o Goods are received back within 1 year

▪ Principal is responsible for accountability of Input

▪ Goods are permitted to be supplied from place of business of job worker provided:

Principal declares the place of business of job worker as his additional place of business except

➢Job worker is registered u/s. 25

➢Principal is engaged in supply of such goods as may be notified by Council

▪ Transitional provision [ Section 141(1)/(2)];o If RM/SFG were transferred before appointed date but FG received after appointed date – No

GST provided goods are received back within 6 months

Taxation of Job Work – Section 143 of CGST Act

Job work

Satisfy Section 143

No GST payable on :

• Supply of raw material from principal to job worker

• Supply of semi/finished goods from job worker to manufacturer

GST on Job work charges payable

Does not satisfy other than Section 143

GST payable on :

• Supply of raw material from principal tojob worker

• Supply of semi/finished goods from jobworker to manufacturer

No GST on Job Work charges since paidon goods

Job Work u/s 143 – Special Procedure for Removal of Goods

Any Waste/Scrap generate during Job Work

Job Worker Registered

Yes

May be supplied by Job worker directly from his premises on payment of Tax

No

To be supplied by Principal on payment of tax

Time of Supply[Section 12, 13 & 14 of CGST Act]

Time of Supply of Goods/Services

Date on which the supplier receives the payment with respect

to supply

“the date on which the supplier receives the payment” shall be

earlier of

Date on which the payment is entered in his books of accounts

Or

Date on which the payment is credited to his bank account.

Issue of Invoice by the supplier

Earlier of

Last date on which he is required to issue invoice

with respect to the supply

Date of Issue of Invoice

Note for Time of Supply :The time of supply to the extent it relates to an addition in the value of supply by wayof interest, late fee or penalty for delayed payment of any consideration shall be thedate on which the supplier receives such addition in value.

Yes No

Examples : Time of Supply

Example 1:A of Mumbai makes supply to B of Surat and has issued Invoice on 29.05.2017 and payment is received on 23.05.2017

Time of Supply of Goods/Services

Answer 1:23.05.2017

Example 2:A of Mumbai makes supply to B of Surat and has issued Invoice on 01.05.2017 and payment is received on 23.05.2017

Answer 2 :01.05.2017

Note :If it is not possible to determine the time of supply under any of the above way then timeof supply shall be the date of entry in the books of accounts of the recipient of supply.

Earlier Of

Date of Receipt of goodsDate on which the payment is made

Date immediately following 30 days from the date of Issue of Invoice by

the supplier.

Time of Supply of Goods when tax payable under Reverse charge

Note :If it is not possible to determine the time of supply under any of the above way then time of supply shall be the date of entry in the books of accounts of the recipient of supply.

Earlier Of

Date on which the payment is made (entered in the books of

accounts of the recipient or debited in Bank Account

whichever is earlier)

Date immediately following 60 days from the date of Issue of

Invoice by the supplier.

Time of Supply of Services when tax payable under Reverse charge

Examples : Time of Supply

Time of Supply of Goods when Tax paid under Reverse Charge

A of Mumbai supplied Goods to B of Delhi

Date of Issue of Invoice : 28.04.2017

Date of Receipt of Goods : 01.05.2017

Payment Received : 10.05.2017

01.05.2017`

Time of Supply of Services when tax paid under Reverse Charge

A of Mumbai supplied Goods to B of Delhi

Date of Issue of Invoice : 28.04.2017

Payment received : 02.05.2017

02.05.2017`

Or

Time of Supply of vouchers along with Goods or Services or both

Date of Issue of vouchers, if supply

is identifiable at that point

Date of redemption of vouchers, in all

other cases

Where it is not possible to determine time of supply of Goods or Services as specified above then time of supply shall be

In case, periodical return has to be filed,

then the date on which such return is to be filed

In any other case, date on which the tax is paid.

Change in rate of tax in respect of supply of Goods or Services

Date of Supply of goods or services

Date of Invoice Date of receipt of payment

Time of Supply Rate of Tax

(1) (2) (3) (4) (5)

Before After After Earlier of (2) and (3)

New

Before Before After (2) Old

Before After Before (3) Old

After Before After (3) New

After Before Before Earlier of (2) and (3)

Old

After After Before (2) New

Composition Levy, Composite Supply and Mixed Supply

(Section 8/10 of CGST Act)

Composite Supply [Section 8 of CGST Act]

What is Composite supply ?

It means a supply consist of two or more taxable supply of goods or services orboth and are naturally bundled and are supplied with each other in theordinary course of business.

Example:

Passengers travel in Rajdhani Express from Mumbai to Delhi. The price paidconsist of three services like Transport of Passengers, Food Service & Bed rollsservice. Passenger have no option but to avail all the services. So it is acomposite supply and transportation of passenger is the principal supply.

Mixed Supply [Section 8 of CGST Act]

What is Mixed Supply ?

It means a supply consist of two or more individual supplies of goods orservices or both and are made in conjunction with each other for a single price.

Example:

A supply of a package consisting of canned foods, sweets, chocolates, cakes, dryfruits supplied together for a single price. However, each of such items can besupplied separately and is not dependent on each other. So, it is mixed supply.

How to determine tax liability on a Composite and Mixed Supplies ? [Section 8 of CGST Act]

Composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply

Mixed Supply comprising two or more supplies shall be treated as a supply of that particular supply which attracts the highest rate of tax

Composition Levy

▪ Applicable when Supply of Goods or Services along with Goods

▪ Optional Scheme

▪ Pay an Amount in lieu of tax, minimum rate to be:

▪ No Tax to be collected and No Input Tax Credit available

▪ If aggregate turnover (all India basis) during the FY exceeds INR 50 Lakhs, no composition from the day when limit is crossed

Sr. No. Particulars Rate

1 Turnover in State in case of Manufacturer 1%

2 Turnover in State in case of person engaged in making supplies (i.e Supply of Services along with Goods)

2.5%

3 Turnover in State in case of other supplies 0.5%

Conditions to Opt Composition Levy

▪ Registered Persons

▪ Not engaged in the supply of services other than supplies referred to in clause (b) of paragraph 6 of schedule II

▪ Not engaged in the supply of goods which are not leviable to tax under the Act

▪ Not engaged in making any inter-state outward supplies of goods

▪ Not engaged in making any supply of goods through an electronic commerce operator who is required to collect tax at source under section 52

▪ Not a manufacturer of such goods as may be notified by the Government on the recommendations of the council

▪ Aggregate Turnover < INR 50 Lakhs (All India basis for taxable persons having same PAN – who shall also opt for composition) but excludes Schedule III

▪ Aggregate turnover = Value of all supplies (taxable + non taxable + exempt + exports) – Value of (RCM supplies + inwards supplies) – taxes under GST

EXAMPLES

S. S. Rajamoulii (Supplier)

Bahubali Pvt. Ltd.

(Mumbai)

Import of Raw Material

Maharashtra

Outside India


Bahubali Pvt Ltd

(Mumbai)

Own Factory(Pune)


Sent for Manufacturing

Maharashtra

Outside India

Own Factory (Surat)

Bahubali Pvt Ltd

(Mumbai)

Own Factory (Surat)

Supply of Part Processed Material

Sent for Final Process

Maharashtra

Gujarat

Gujarat

Labourcharges invoice


Bahubali Pvt Ltd

(Mumbai)

Own Factory (Surat)


Sent for part Process

Maharashtra

Gujarat

Outside India

Labour charges invoice

S. S. Rajamoulii

(Job Worker)

Bahubali Pvt Ltd

(Mumbai)

Raw Material or SFG received from Bahubali on May 29, 2017

Maharashtra

Gujarat


FG return on July 10, 2017


Bahubali Pvt Ltd

(Mumbai)

Own Factory (Surat)


Sent for part Process

M/s Kattappa Sent for Job work

Maharashtra

Gujarat


Bahubali Pvt Ltd

(Mumbai)

Own Factory (Surat)


Sent for processing

Quality Control (External Co)

Sent for QC

Maharashtra

Gujarat

Invoice raised

Finished Goods returnedWith labour charge invoice


Bahubali Pvt Ltd

(Mumbai)

Own Factory (Surat)


Sent for preparation and marking

Maharashtra

Gujarat


S. S. Rajamouli (Supplier)

Bahubali Pvt Ltd

(Mumbai)

Branch(Surat)

Supply of Finished Goods

Finished Goods sent for sale or inspection

Maharashtra

Gujarat

Bahubali Pvt Ltd

(Mumbai)

FG sent for Assortment

(to Bahubali Pvt Ltd) (Bhopal)

FG sent for Assortment

(to Katapa Pvt Ltd)

• A Series of action or step taken in order toachieve a particular end (noun)

• Perform a series of mechanical or chemicaloperations on something in order to changeor preserve it (verb)

Process

Principal

Agent for sale Agent for sale

Goods under Consignment

Outside Maharashtra

Maharashtra

Company AExhibition in

Hotel

DelhiMumbai

Goods sent for

Company A(Mumbai)

Chennai

Employee carry goods for sale

▪ What if goods are not sold?

▪ If sold , Place of supply rule?

Big Four Ent.. LLP

(Mumbai)

To Customer in Mumbai

Deliver Goods on Approval for sale

▪ Is delivery subject to tax ?▪ When to raise Invoice ?

• Invoice to be raised within 6 Month from the date of delivery or

• Date of confirmation

As per Section 31(7) :-

(Earlier of)

Walmart Inc., USA

Blue Sky Trading LLP

(Mumbai)

Good Products Pvt. Ltd.

Bill to

Ship to

▪ What if, Good Products Pvt. Ltd. is in- Mumbai- SEZ- Delhi

▪ What if bill is raised on a company in Gujarat?

▪ Reason, why not considered export ?

Customer ACompany X

add part of RM and Mfg FG

DelhiMumbai

Trf part of RM for Mfg

On what value GST would be Charged by Company X?

Big Four Consulting LLP

(Mumbai)

Company X inMauritius

IFRS Advisory Services to

Whether Big Four would be required to Charge GST?

Big Four Consulting LLP

(Mumbai)

Company X inUSA

Management Consulting Services to

Whether Big Four would be required to pay GST?

ABC Private Limited(HO)Location A

XYZ Private Limited(Subsidiary Co.)

Location B

Sharing of Common Services such as:- Payroll Cost- IT Infra Cost- Insurance Expenses

OR Unit Located in SEZ

Nature of services provided by person registered in Mumbai

Registered location of

Service receiver

Servicesrender at

Place ofsupply

Tax

Statutory Audit of Co. in Kochi Mumbai Kochi Mumbai CGST/IGST

Tax Audit of Co. in Kochi Kochi Kochi Kochi IGST

Secretarial Audit of Co. in Mumbai Delhi Mumbai Delhi IGST

BPO Services Delhi Mumbai Delhi IGST

Brokerage/ Commission for Goods Mumbai Bangalore Mumbai IGST

Management Consulting Hyderabad Mumbai Hyderabad IGST

Input Tax Credit(Section 16 – 21 of CGST Act)


Section 2(62) of CGST ActInput Tax

• It means CGST, SGST, IGST, UTT charged on supply of goods or services or both made to him and include:• IGST charged on Import of Goods• Tax Payable under RCM but

• does not include tax paid under Composition Levy

Section 2(59) of CGST ActInput

• It means any goods other than capital goods used or intended to be used by a supplier in the course orfurtherance of business;

Section 2(60) of CGST ActInput Services

• It means any service used or intended to be used by a supplier in the course or furtherance of business.

Section 2(19) of CGST ActCapital Goods

• It means goods , the value of which is capitalized in the books of account of the person claiming the input tax credit and which are used or intended to be used in the course or furtherance of business.

Manner of Utilization of Input Tax Credit (ITC)[Section 49(5) of CGST Act]

Claiming Credit of Input against Input Liability should be in above order only. UTT Input can be used for UTT and IGST

IGST Output

IGST Input

CGST Input

SGST Input

CGST Output

CGST Input

IGST Input

SGST Input

SGST Output

SGST Input

IGST Input

CGST Input

Eg:- Manner of Utilization of Input Tax Credit (ITC)[Section 49(5) of CGST Act]

Particulars Amount CGST SGST Particulars Amount CGST SGST

Raw Material 10,000/- 250/- 250/- Sales 15,000/- 375/- 375/-

Job work charges 1,000/- 90/- 90/-

Total 11,000/- 340/- 340/- Total 15,000/- 375/- 375/-

Input credit (340) (340)

Payable 35/- 35/-

Eg:- Manner of Utilization of Input Tax Credit (ITC) [Section 49(5) of CGST Act]

Particulars Amount IGST CGST SGST Particulars Amount IGST CGST SGST

Purchase of Raw Material

10,000 500 - - Sales 5,000 250 - -

ExpensesMonthly basis

10,000 - 250 250 Sales 20,000 - 500 500

Job work charges 1,000 180 - - - - -

Total 21,000 680 250 250 Total 25,000 250 500 500

Input Credit - (250) (250) (250)

Balance - - 250 250

Input Credit (Bal. IGST)

- - (250) (180)

Payable - - - 70

Eligibility and Condition for taking ITC

[Section 16(1) of CGST Act]

Every registered person

Credit for input tax paid on any supply used / intended to be

used in the course / furtherance of

business

ITC Amount shall be credited to the Electronic Credit

Ledger

Notes:

1. Goods deemed to be received by a taxable person when the supplier delivers the goods to the recipient /any other person, on the direction provided by the taxable person to the supplier

2. Credit already availed to be reversed (with interest) if payment is not made to the supplier within 180days

3. If ITC on Capital Goods is claimed as Depreciation under IT Act then ITC can not be availed [Section 16(3)]

4. Credit only upon receipt of the last lot / installment in case of goods received in lots / installment

Possession of tax invoice / debit note

issued by a registered supplier

Goods and / or services have been received by

him (Refer note 1)

Tax actually paid by the supplier to the credit of

the appropriate Government, either in

cash or by utilization of ITC

Has furnished the monthly return in Form

GSTR – 3

Conditions for availment of ITC

[Section 16(2)]

• Due date of September return following the end of FY – i.e 20th October of the following FY.

• Filing of Annual Return – i.e 31st December of the Following FY

Example

Invoice Date – 10th August, 2017 (FY 2017-18)

A)Sept 18 return filing due date – 20th Oct, 2018

B)FY 2017-18 Annual Return filing due date – 31st Dec, 2018

Hence last date to avail credit – 20th Oct, 2018

But if Annual return of FY 2017-18 is filed on 31st Aug, 2018, last date to avail Credit – 31st Aug 2018

Last date by which Credit can be availed – Section 16(4) of CGST Act

Utilisation of ITC [Section 17(1) of CGST Act]

Use of Input tax credit

For Business Purpose

For Other Purpose

ITC Available

ITC NOT Available

Note:

Exempt supply includes sale value of land & building and 1% of sale value of securities

Option to Banking Companies & NBFC : A Standard rate of 50% of eligible ITC on Capital Goods, Inputs and Input Services on a Monthly basis – Once Option applied - No change for that year possible

If composition scheme is followed then ITC is not available.

Use of Input Credit : Partly for

Taxable Supplies

Zero – rated Supplies

Non –Taxable Supplies

Exempt Supplies

Nil – rated Supplies

Utilisation of ITC [Section 17(2), 17(3) & 17(4) of CGST Act]

ITC Available ITC NOT Available

Motor Vehicles / Other Conveyances

Restrictions on ITC (Blocked Credits) [Section 17(5)(a) of CGST Act]

ITC for Motor Vehicles/Other

Conveyances will NOT be available

Except:

When they are used for

Transportation of Goods, or Making the following taxable services:

• Further supply of such vehicles / conveyances, or

• Transportation of passengers, or

• Training for driving / flying / navigating such vehicles / conveyances

Supply of goods and services being

Restrictions on ITC (Blocked Credits) [Section 17(5)(b) of CGST Act]

• Allowed ONLY if goods / services of a particular category are used towards making taxable outward supplies of the same category

- Food and Beverages

- Outdoor Catering

- Beauty Treatment

- Health Services

- Cosmetic and Plastic Surgery

• Allowed ONLY if goods / services of a particular category are used towards making taxable outward supplies of the same category

OR• Allowed ONLY if where the services are notified as obligatory

for an employer to provide an employee

- Life / Health Insurance

- Rent – a - Cab

Supply of goods and services being:

Restrictions on ITC (Blocked Credits) [Section 17(5)(b) of CGST Act]

Never Allowed

Membership of Club

Health and Fitness Centre

Travel Benefits to Employee

Construction of Immovable Property (Other than Plant & Machinery)

ITC NOT Available

Restrictions on ITC (Blocked Credits) [Section 17(5)(c) & 17(5)(d) of CGST Act]

Work Contract Services, except where it is an input services for further supply of works

contact service

Goods or Services received by a taxable person for

construction of an immovable property on his own account even when used in course or

furtherance of business

Restrictions on ITC (Blocked Credits) [Section 17(5)(e), (f), (g), (h) & (i) of CGST Act)

ITC Not Available

Tax paid under Section 10 i.e Composition

Scheme

Supply received by Non-resident taxable person

except on goods Imported

Used for Personal

consumption

Goods lost, stolen, destroyed, written off or disposed of by way of gift or

free samples

Tax paid with the provisions of Sections 74,129

and 130 i.e Demand notice

Availability of credit in Special circumstances [Section 18 (1) & 18(2) of CGST Act] (Below Input Credit to be availed within 1 year from the date of issue of tax Invoice)

Person applied for registration within 30 days

of becoming liable to register and registration

granted

ITC Available in respect of

• Stock

• Semi – finished Goods

•Finished Goods

On the day immediately preceding the date from

which he becomes liable to pay tax

Person applied for Voluntary Registration


• Stock

• Semi – finished Goods

•Finished Goods

On the day immediately preceding the date of

Registration

Registered Person shifting from

Composition Scheme to Regular Tax Payment


• Stock• Semi – finished Goods• Finished Goods• Capital Goods(after reducing by

5% per quarter or part thereof from the date of invoice)

On the day immediately preceding the date from

which - becomes liable to pay tax

When Exempt supply becomes taxable


• Stock• Semi – finished Goods• Finished Goods• Capital Goods (exclusively

used for exempt supply)

On the day immediately preceding the date from which he becomes liable

to pay tax

Availability of credit in Special circumstances [Section 18 (3) of CGST Act]

Change in Constitution of Taxable Person

Change in Constitution of Registered Taxable Person

On Account of:

• Sale

• Merger

• Demerger

• Amalgamation

• Lease, or

• Transfer of Business

Transfer of Unutilized ITC in the Books allowed

Supply become wholly exempt or covered under Composition scheme


Any balance of ITC in electronic credit ledger shall lapse

ITC in respect of Stock , Semi finished goods, Finished goods, & Capital goods reduced by 5 % per quarter or part there of from date of invoice

Shall pay by debiting the electronic credit ledger or cash ledger equivalent to

In case of Register person, supply become wholly exempted or converted into Composition scheme

Supply of Capital Goods on which ITC already taken


Supply of CapitalGoods on which ITChas been takenearlier

Pay Tax on higher of

• Tax on Transaction Value or

• ITC availed earlier reduced by Percentage of Deduction as may be specified

Example on Supply of capital goods on which ITC already taken

▪ Purchase of Plant & Machinery on January 1, 2018 worth of INR 1,00,000: Taxpaid INR 28,000.

▪ Disposed off on April 15, 2018 for INR 50,000.

▪ Tax payable at 28%

Particulars Amount Amount

Tax on transaction value (1) 14,000

ITC availed(5% per quarter or part thereof from the date of invoice)

(10% of 28,000)

28,000

(2,800)

(2) 25,200

Tax liability will be [Higher of (1) or (2)]

25,200

Principal Job Worker

Inputs / Capital Goods sent for Job Work

Received back or directly supplied from Job – worker’spremises within 1 year (inputs) or 3 years (Capital Goods)of being Sent Out

Note : ITC available if the conditions and restrictions under job work are satisfied

ITC in respect of goods sent for Job Work

[Section 19 of CGST Act]

ITC is distributed to supplier of goods/services of same entity having the samePAN

ISD & Recipient in Different

States

CGST Act

Credit of CGST or IGST as CGST

or IGST

SGST Act

Credit of SGST or IGST as SGST

or IGST

ISD & Recipient in Same State

CGST Act

Credit of CGST or IGST

as CGST

SGST Act

Credit of SGST or IGST

as SGST

Input Service Distributor [Section 20 of CGST Act]

Conditions to distribute credit : Input Service Distributor

▪ Credit distributed to recipient through prescribed documents containingprescribed details. Such document should be issued to each of the recipient ofcredit.

▪ Credit distributed should not exceed the credit available for distribution

▪ Tax paid on input services used by a particular location (registered assupplier) has to be distributed only to that location.

▪ Credit of tax paid on input service used by more than one location who areoperational is to be distributed to all of them based on the prorate basis ofturnover of each location in a State to aggregate turnover of all such locationswho have used such services.

Important – Transitional Provisions

Carry Forward of CENVAT Credit [Section 140(1) of CGST Act]

Registered taxable person other than

composition scheme

Allowed carry forward of Input tax / CENVAT credit

– through a return

(Condition : Last Six Return should be filed under existing Law &

Credit should not relate to any exemption

notification)

Such Credit must be eligible under earlier law and

GST Law

Credit can be taken in the electronic

credit ledger

Unavailed CENVAT Credit on Capital Goods [Section 140(2) of CGST Act]

A registered taxable person, other than

composition dealer, shall be eligible to take the

credit

In the electronic credit ledger

Unavailed Credit on Capital Goods (as per Rule 2(a) of CENVAT

Credit Rule, 2004) not carried forward in a

return

Unavailed Credit = (Total Eligible Credit – Credit

availed) under the earlier law

Such credits must be eligible under the earlier

law and under GST law

Excess Claim shall be recovered as arrears of

tax under GST Law

Credit of eligible duties and taxes on input held in stock [Section 140(3) of CGST Act]

Person eligible for input tax credit

• Person not liable to be registered under the earlier law

• Person engaged in manufacture/sale of exempted goods, provision of exempted service

• Person providing works contract service and availing abatement under notification no. 26/2012

• First / Second stage dealer, importer

Credit available on

• Stock, semi-finished goods or finished goods held as on appointed date

• Above benefit not available for input services

• Such credit can be taken in the electronic credit ledger

Conditions

• Goods must be used or intended to be used for taxable supply

• Eligible to take credit under GST• Possession of invoice or other prescribed

documents• Invoice or other document should not be

earlier than 12 months immediately preceding the appointment day

• Supplier of service is not eligible for any abatement under GST Act.

• Credit shall be allowed @ 40 % of CGST/SGST.

• Scheme is availed for six tax period

A registered taxable person who was engaged in the manufacture of taxableand exempted goods under Central Excise or taxable as well as exemptedservice under Finance Act, 1994 but liable under GST will be entitled to takethe following amounts of CENVAT credit in his electronic credit ledger:-

▪ Amount c/f in return furnished under earlier law,

▪ Amount of CENVAT credit of eligible duties in respect of;o Stock

o Semi finished goods

o Finished goods

o Relating to exempt goods or services

Credit of eligible duties and taxes on input held in stock [Section 140(4) of CGST Act]

CGST / SGST

▪ A registered taxable person is entitled to take credit in electronic credit ledger ofeligible duties and taxes on inputs/ input services received on/ after theappointed day but the duty/ tax has been paid before the appointed day.

▪ Condition: Invoice/ any other duty/tax paying document recorded in the books ofaccounts within 30 days from the appointed day.

Credit of eligible duties and taxes paid in advance on inputs/input services [Section 140(5) of CGST Act]

Person eligible for input tax credit

• A registered taxable person who was paying tax under composition scheme

Credit available on

• Stock Semi-finished goods or finished goods held in stock as on appointed date

• Above benefit not available for input services

• Such credit can be taken in the electronic credit ledger

Conditions

• Person not paying taxes under composition scheme under GST Law

• Goods must be used for taxable supply• Otherwise eligible to take the credit

under earlier law and under GST Law• Such person should be in possession of

invoice / other prescribed document• Invoices / other prescribed document

was not issued earlier than 12 months immediately preceding appointment day

Credit of duties and taxes on inputs held in stock on switching over from composition scheme [Section 140(6) of CGST Act]

Other Points

▪ CENVAT Credit of Input Services has been reversed under earlier law due tonon-payment of consideration within a period of 3 months, then such creditcan be reclaimed subject to condition that the registered person has made thepayment of the consideration for that supply of service within a period of 3months from the appointed date.

▪ Excess Tax paid under earlier law, can only be claimed as Refund. It cannot becarried forward under GST Regime.

Procedure for Claiming Input Tax Credit of Earlier Law

Registered person entitled to take credit of Input Tax

File Form GST Tran – 1 within 60 days from the appointed date

Reverse Charge

Reverse Charge Mechanism (RCM)

Under normal scenario tax is paid by supplier of Goods or Service or both. However RCM , theliability to pay tax would be not on the supplier of Goods or Services or both, but on therecipient of such Good or Service or both.

The Act empowers the Government to notify categories and situations wherein GST shall becharges under reverse charge mechanism.

Why RCM required

Supplier of the goods & services is unregistered and makes supply to a registeredperson.

When an unregistered person makes supply of goods or services or both, he breaks the trailof supply chain as he would not be filing any return declaring the details if his supply.

His supply becomes relatively cheaper than the goods or service supplied by the registereddealer

Why RCM required

Supplier is located in non-taxable territory

GST being destination based taxation, the supplier located in non-taxable territory cannot collect and deposit tax from the recipient.

Therefor the recipient is made to pay tax under RCM to create similarlevel of taxes on goods and services , thereby eliminating the benefit onimported goods and services on account of lower taxes.

E.g. Import of services

Why RCM required

Levy of Tax in an unorganised sector

When in a particular sector many persons fall under unorganized sector, the cost of administering and collecting the taxes from them would be too high

Sometime majority of persons fall under threshold exemption limit due to low individual aggregate turnover

E.g.. Goods Transport Agency. Ola/ Uber operators

Why RCM required

Indirect levy of tax in a sector which is exempt

Legislature may exempt specific goods or service from levy of tax but indirectly levy taxon that sector under RCM

Eg : Advocates and Lawyers.

Notified Reverse Charge Services

SI No Services Recipient of service

1 Import of Services Any person located in the taxable territory other thannon-assesse online recipient(Business Recipient)

2 Services providedor agreed to beprovided by a goodstransport agency(GTA) in respect oftransportation ofgoods by road

a) any factory registered under or governed by the Factories Act, 1948;(b)any society registered under the Societies Registration Act, 1860 or under any other law for the time being in force in any part of India;(c) any co-operative society established by or under any law;(d)any person registered under CGST/SGST/UTGST Act;(e) any body corporate established, by or under any law; or(f) any partnership firm whether registered or not under any law including association of persons.(g) Casual taxable person


3 Services provided or agreed to be provided by an individualadvocate or firm of advocates by way of legal services, directly orindirectly

Any business entity.

4 Sponsorship services Anybody corporate or partnership firm.

5 Services provided or agreed tobe provided by a director of a company or a body corporate to the said company or the bodycorporate;

A company or a bodycorporate.



6 Services provided or agreed to be provided by arecovery agent to a banking company or a financialinstitution or a non-banking financial company

A banking company or a financialinstitution or a nonbankingfinancial company.

7 Transfer or permitting the use or enjoyment of acopyright covered under clause (a) of sub-section (1) ofsection 13 of the Copyright Act, 1957 relating to originalliterary, dramatic, musical or artistic Works

Publisher, Music company,Producer


▪ Only Full Reverse charge is allowed under GST Act

▪ Also Applicable on Goods under GST Act along with Services (earlier only Services were listed under Reverse Charge).

Reverse Charge

Can Recipient of Service or Goods paying tax under Reverse charge is allowed to take Input Credit against his output liability under GST Act ?

▪ Input Credit was not allowed to be utilized against output liability underReverse charge.

▪ Once the payment is made, then the receipt of service or goods who is payingtax under Reverse charge is allowed to take credit of the same tax whilefiling return.

Reverse Charge

Example :-

Person A is registered under GST. Person A purchases the goods from Person Bwho is not registered under GST.

Answer :-

Under such a case, GST will be payable by the recipient of supply i.e. Person A.So, Person A is required to declare the receipt of goods or services in form GSTR– 2.

Credit of such tax will be available to the recipient provided it is used in thecourse or furtherance of Business.

Reverse Charge

Works Contract

Works contract [Section 2(119) of CGST Act]

Works Contract

A contract for

Specified activities

In respect of

Immovable property

Wherein transfer of property in

goods

Whether as goods or in some other

form

is involved

In the execution

of such contract

Works Contract-Specified activities

Construction

fabrication

completion

erection

modification

installation

repair

alteration

Fitting out

maintenance

commissioning

Building

Improvement

renovation

Activities under Works

Contract

Section 142(10) of CGST Act :-

The goods or services or both supplied on or after the appointed day inpursuance of a contract entered into prior to the appointed day shall be liableto tax under the provisions of this Act.


No tax shall be payable on Goods/Services under this Act to the extent the taxwas leviable on the said goods/services under the value added tax act of thestate or under chapter V of the Finance Act, 1994.

Works contract – Transitional Provisions


Where tax was paid on any supply both under the Value Added tax Act andunder chapter V of the Finance Act. 1994 then tax shall be leviable under thisAct and the taxable person shall be entitled to take credit of value added tax orservice tax paid under the existing law to the extent of supplies made after theappointed day and such credit shall be calculated in such manner as may beprescribed.


Credit of eligible duties on inputs held in stock/contained in semi-finished/finished goods to a registered person providing works contractservice availing notification no.26/2012 – ST and such inputs or goods are usedor intended to be used for making taxable supplies under this Act eligible forInput tax credit on such inputs under this Act is in possession of prescribeddocuments issued not earlier than twelve months not eligible for anyabatement under this Act.

Works contract – Transitional Provisions

Returns

Return Type For Periodicity Due Date

GSTR - 1 Outward Supplies made by Taxpayer(other than Composition dealer, ISD, and TDS u/s 37)

Monthly 10th of Next Month

GSTR - 2 Inward Supplies made by Tax payer(other than Composition dealer, ISD, and TDS u/s 37)


GSTR - 3 Tax Return (other than Compositiondealer, ISD, and TDS u/s 37


Returns, Periodicity and Due dates [Section 37,38 & 39 of CGST Act]

Return Type For Periodicity Due Date

GSTR - 4 Composition Dealer Quarterly 18th of Next Month to the quarter

GSTR - 5 Periodic Return of Non Resident Foreign Tax Payer

Monthly 20th of Next Month or within 7 Daysafter the last day of the period of registration which ever is earlier.

GSTR - 6 ISD Monthly 13th of Next Month

GSTR - 7 Return of TDS Monthly 10th of Next Month

GSTR - 9 Annual Return Annually 31st December of next Financial Year

Returns, Periodicity and Due dates

Upload GSTR –1

Auto –Drafted GSTR – 2A based on

details from GSTR – 1 filed

by other supplier

Generate GSTR – 2 by accepting

/ rejecting / modifying

details from GSTR – 2A

Add missing Purchase Invoices

Supplier to accept

modifications

General Net Tax : Pay / Carried

forward in GSTR – 3

Return Process

▪ Every registered taxable person to furnish returns.

▪ Submission of return - through online mode.

▪ Return to be filed even if there is no business activity during the return period.

▪ Error or omission may be rectified – No specific provision for revisionprescribed.

▪ B2B transactions proposed on invoice level – GSTIN, Invoice No., Date, Value,Description, Rate of tax and value of tax.

▪ B2C invoice wise only for transaction above specified limit (INR 2,50,000).

▪ HSN Codes.

▪ Separate Tables for Debit / Credit / Input service distributor credit / TDS / etc.

▪ Common E – return for CGST, SGST and IGST.

GST Return – Important Points

Matching

• Details of inward supplyfurnished by a receiver tobe matched with details ofoutput supplies furnishedby corresponding supplier

• Credit details of matchingsupplies only to beaccepted – manner to beprescribed

Reversal

• Details not matchingresulting in excess to becommunicated to bothsupplier and receiver

• Details communicated butnot rectified by supplier tobe added to the output taxliability of recipient

• Duplication resulting inexcess also to be added tooutput tax liability ofrecipient

Reclaim

• Recipient entitled toreduce output tax liabilityif supplier rectifies thereturn within prescribedtime

Matching, Reversal and Re – Credit [Section 42 & 43 of CGST Act]

First Return

• Every registered taxable person who has made outward supplies between date of liability to register to date of grant of registration

• Filed after grant of Registration

Annual Return

• Every registered dealer to furnish annual return by 31st

December except :• ISD • Casual taxable person• Person deducting tax• Non resident taxable person

• Reconciliation statement to be furnished along with the statutory audited report and annual return

Final Return

• Every registered dealer opting for cancellation to furnish a final return to be furnished within 3 months from the date of cancellation or date of cancellation order, whichever is later

First, Annual and Final Return [Section 40, 44 & 45 of CGST Act]

GST Return – Important Points

Rectification

Rectification allowed till September 30 or date of filing of annual return

Penalty – Non Filing of Return

Late Fees : Rs.100 per day subject to a maximum of Rs.5000

Late Fees : Annual Return Rs.100 per day subject to maximum of 0.25% of the aggregate turnover of the defaulter

▪ Every person registered under GST Act has to pay tax online only.

▪ There will be one Single Challan Form for making payment of all taxes covered in GST Basket.

▪ Contents of Challan;o GSTIN, Name, Address, Email ID, Mobile No.

o Date

o CGST Code

o SGST Code

o IGST Code

o Details of Instruments.

Payment of Tax Liability under GST Act [Section 49 of CGST Act]

Tax reconciliation between Central and State Government

• The Exporting State will transfer to the Centre the credit of SGST used inpayment of IGST.

• The Importing dealer will claim credit of IGST while discharging his output taxliability in his own State,

• The Centre will transfer to the importing State the credit of IGST used inpayment of SGST,

• The relevant information will also be sub mechanism submitted to the CentralAgency which will act as a clearing house

Registration

Definitions

Taxable Supply

• Supply of goods or services or both which is leviable to tax under the Act.

Exempt Supply

• It means supply of any goods or services or both which is wholly exempt from tax as notified byGovernment.

Nil rated Supply

• It means supply of any goods or services or both which attracts NIL rate of tax.

Definitions

Non-taxable Supply

• It means supply of goods or services or both which is not leviable to tax under the Act.

Export Supply

• It means supply of goods or services or both which is exported out of India.

Direct dispatch from the place of job worker

• It means goods or services or both are dispatched directly from the place of Job Worker so it will beconsidered as the supply of Principal and that amount of supply will be included in the aggregateturnover of Principal.

Example :

Suppose Mr. X is trading on his own account and also acting as an agent ofBaahubali Private Limited Company for receiving and selling the goods. FurtherMr. X made a turnover on his own account that is Rs.12 lacs and on behalf ofPrincipal is Rs.10 Lacs.

Answer :

So, Aggregate turnover of Mr. X would be Rs.22 Lacs

Supplies made on behalf of Principal(s) or on own account ?

Under CGST Act, State wise registration is to be done.

Examples :-

Case 1 : ABC Private Limited has Place of Business in more than 1 state

State 1 : Mumbai, Maharashtra

State 2 : Bangalore, Karnataka.

Ans 1 : ABC Private Limited to apply for Registration under both the states compulsorily.

Registration

Case 2 : ABC Private Limited has more than one Place of Business in same state

Place 1 : Mumbai, Maharashtra

Place 2 : Pune, Maharashtra.

Ans 2 : ABC Private Limited has choice to either take combined registration or separate registration for both the places.

Registration

Person liable for registration - (Section 22)

▪ Every supplier whose

Aggregate turnover in a financial year exceeds Rs.20 lakhs (Rs.10 lakhs for special category states)(To apply in 30 days).

▪ Existing person registered under current law that are subsumed into GST.

▪ Transferee and successor of business.

▪ Transferee of business in case of amalgamation and demerger.

Registration

Person not liable for registration - (Section 23)

▪ Person engaged exclusively in the business of supplying non-taxable supplies , or wholly exempt supplies

▪ Person is an agriculturalist , to the extent of supply of produce outof cultivation of land.

Registration

Aggregate Turnover [Section 2(6)]

Means Excludes

Aggregate value of :

• Taxable supplies• Exempt supplies u/s 11• Nil rated supplies• Non-taxable supplies• Export supplies• Inter-state supplies• Supplies made on behalf of Principal(s) or on own account• In case of Job Work, direct dispatch from the place of job-worker shall

be considered as a supply by the Principal (and not by the job-worker)

• Value of inward supply onwhich tax is payableunder RCM

• CGST, SGST, UTGST, IGSTand cess

Computed on all India Basis of person having same PAN

Registration

Compulsory registration in certain cases - (Section 24)

▪ Person making an inter-State supply (outward supply).

▪ Casual taxable persons.

▪ Person required to pay tax under reverse charge mechanism.

▪ Electronic commerce operator.

▪ Non-resident taxable person.

▪ Notified persons required to deduct tax u/s 51.

▪ Persons who supply goods and / or services on behalf of another registeredtaxable person (whether as agent or other wise).

▪ Input service distributors.

▪ Persons supplying online information & database access or retrieval servicesfrom a place outside India to an unregistered person in India.

Registration

Example 1:-

XYZ Company has two offices one in Surat, Gujarat and other in Mumbai, Maharashtra and is involved in supply of taxable as well as non taxable supply of goods and services.

List of supplies of goods and services made by XYZ Company is as follows :

Supply made from Surat, Gujarat Supply made from Mumbai, Maharashtra

Taxable supply = Rs.5 Lacs Taxable supply = Rs.2 Lacs

Nil rated supply = Rs.3 Lacs Supply made by Job Worker = Rs.2 Lacs

Non taxable supply = Rs.5 Lacs Export supply = Rs.3 Lacs

Supplies made on behalf of Principal = Rs.2 Lacs

Registration

Whether XYZ Company is liable to take Registration ?

Answer 1:-

Aggregate turnover of XYZ Company is Rs.22 Lacs.

As, aggregate turnover > 20 Lacs

So, XYZ Company is liable for Registration under the GST Act.

Note :-

To calculate Aggregate turnover, Supply is to be considered for PAN India.

Registration

Example 2 :-

XYZ Company has two offices one in Surat, Gujarat and other in Mumbai, Maharashtra and is involved in supply of taxable as well as non taxable supply of goods and services.

List of supplies of goods and services made by XYZ Company is as follows :

Supply made from Surat, Gujarat Supply made from Mumbai, Maharashtra

Taxable supply = Rs.5 Lacs Non taxable supply = Rs.5 Lacs

Nil rated supply = Rs.3 Lacs Inter-state supply = Rs.1 Lac

Supplies made on behalf of Principal = Rs.2 Lacs

Registration

Whether XYZ Company is liable to take Registration ?

Answer 2 :-

Aggregate turnover of XYZ Company is Rs.16 Lacs.

As, aggregate turnover < 20 Lacs

But, as there is Inter-state supply

So, XYZ Company is compulsorily liable for Registration under the GST Act.

Registration

Deemed Registration - (Section 26)

▪ The grant of registration or Unique Identity Number under SGST Act or UT – GST Act then it shall be deemed to be a grant of registration or Unique Identity Number under CGST Act also.

▪ Rejection of registration under SGST Act or UT-GST Act then it shall be deemed to be rejection of registration under CGST Act.

Period From

Within 3 working days The date of submission of application

Within 7 working days The date of receipt of clarification, information or documents furnished by the applicant

Registration

Note :-

▪ If proper officer does not take any action.

▪ then the registration shall be deemed to be granted.

Special Provisions relating to casual taxable person or Non resident taxableperson – (Section 27)

Registration

Registration

A person who occasionally, undertakes transactions

involving supply of goods and services, and who has no fixed place of business

in India.

Time Period

Certificate of Registration issued to such persons shall be valid only for a

period of 90 Days. (Can be extended maximum by

further 90 days)

Advance Deposit

Required to make advance deposit of estimated tax

liability net tax at the time of registration.

Amendment of Registration – (Section 28)▪ Informed within 15 days of such change to the respective officer along with supporting documents.

▪ Amendment can be like change in the Legal Name of business, Address of the principal place of business orany additional place of business, or addition, deletion or retirement of partner or directors, Karta,Managing committee and so on.

▪ Proper officer may approve/reject amendment.

▪ No rejection without giving an opportunity of being heard.

▪ Rejection of amendment under CGST will be a deemed rejection under SGST and vice-a-versa.

Period From

Within 15 working days The date of submission of application

Within 7 working days The date of reply to the notice to show cause

Registration

Note :-

▪ If proper officer does not take any action.

▪ then the certificate shall be deemed to be amended.

Cancellation of Registration - (Section 29)

▪ Change in the constitution of business. (Partnership Firm may be changed to SoleProprietorship due to death of one of the two partners , leading to change in PAN).

▪ Person no longer liable to be registered (aggregate turnover < 20 Lacs or 10 Lacs, asapplicable).

▪ Where registered taxable person has contravened provisions of the Act (like taxshort paid, not paid, returns not filed).

▪ A composition supplier has not furnished returns for 3 consecutive tax periods/anyother person has not furnished returns for a continuous period of 6 months.

▪ Non-commencement of business within 6 months from date of registration by aperson who has registered voluntarily.

▪ Transfer of business or discontinuation of business (Death of proprietor, De-merger,Amalgamation and so on).

Registration

Cancellation of Registration - (Section 29)

▪ Where registration has been obtained by means of fraud , willful misstatement orsuppression of facts , the registration may be cancelled with retrospective effect.

▪ Cancellation can be done by Proper Officer suo motu or on application made by theregistered taxable person.

▪ Liability to pay tax before the date of cancellation will not be affected.

▪ Cancellation under CGST Act will be deemed cancellation under SGST Act and vice-versa.

▪ Substantial penalty in case registration obtained with fraudulent intentions.

▪ Notice of hearing and opportunity of being heard is a MUST before cancellation.

▪ Application for revocation or cancellation of registration shall be made within 30days from the date of service of cancellation of order.

Registration

Consequences of default in taking registration

Liable to a penalty

Registration

• Rs.10,000 or• 100% of tax evaded or not

deducted or short deductedHigher of

Note :-

▪ Input tax credit cannot be claimed for the period prior to registration.

▪ Pay liability with Interest.

Decoding GST Number [15 Digit GST No.]

7 6CA A F 3 M1 Z5 1S2 W

State Code

PAN Business Vertical

Blank

Check Sum

GST Refund

Point of Refund

▪ Refund arising from earlier law, will be adjudicated as per earlier law.

▪ No refund will be granted if the amount is less than Rs.1000/-.

▪ Refund allowed only in case of▪ Exports (including zero rated supplies).▪ Credit accumulation as a result of inverted duty structure on output supplies

other than Nil rated and fully exempt.

▪ Refund Application has to be made within 2 years from the relevant date;

▪ Time limit of 2 years not applicable on refund of balance in electronic cash ledger.

▪ Such refund can be claimed only in returns furnished.

Situation of Refund 2 years from below mentioned date

On account of excess payment Date of Payment of GST

On account of Export of Goods Date on which proper officer gives an order for export known as “Let Export Order

On account of Export of Services Date of BRC

On account of Finalization of Provisional Assessment

Date of the Finalization Order

Situations and Relevant Time Period for Refund

Situation of Refund 2 Years from below Relevant Date

In pursuance of an appellate authority’s order in favour of the taxpayer

Date of Communication of the appellate authority’s order

On account of no/less liability arising at the time of finalization of investigation proceedings

Date of communication of adjudication order or order relating to completion of Investigation

On account of refund of accumulated ITC due to inverted duty structure

Last day of the Financial year

Situations and Relevant Time Period for Refund

Accounts and Records

Accounts and Records [Section 35 & 36 of CGST Act]

▪ To be kept at the Principal Place of Business

▪ Owner or operator of warehouse or go down to keep records

▪ To maintain records until the expiry of 72 months – From the due date of furnishingof Annual Return – For the year pertaining to such accounts and records (i.e 80months from the end of the financial year)

▪ Records pertaining to revision and appeal to be kept for 1 year from the date ofdisposal of such proceedings or for the period specified above, whichever is later

Invoicing Under GST

Few Contents of Invoice

▪ Name, address and GSTIN No. of Supplier

▪ Date of Issue

▪ Invoice No.

▪ Name, address and GSTIN No. of Recipient

▪ Address of Delivery along with name of state and its code

▪ HSN Code

▪ Description of Goods or Services or Both

▪ Quantitative details

▪ Rate of Tax (CT, ST, IT and UTT)

▪ Place of Supply

▪ Signature or Digital Signature

Invoicing Under GST

Points for invoicing

▪ Supply meant for Export on Payment of IGST or Supply meant for Export under Bond or Letter of Undertaking without Payment of IGST (This is to be mentioned in the Export Invoices)

▪ If Advance is received then Receipt voucher to be issued

▪ Credit Note or Debit Notes to be issued (Same as Earlier)

▪ Manner of Issuing Invoice : o In case of Goods

o Original Copy being marked as Original for Recipient

o Duplicate Copy marked as Duplicate for Transporter

o Triplicate Copy marked as Triplicate for Supplier

o In case of Serviceso Original Copy being marked as Original for Recipient

o Duplicate Copy marked as Duplicate for Supplier

Tax Invoice, Credit Note and Debit Note

Other Points

▪ Not to Issue Tax Invoice < Less than INR 200

▪ If goods or services or both or paying tax under composition levy then Issue a Bill of Supply

▪ For Advance Received then Issue a Receipt voucher

▪ If Advance is received but supply is not done then Issue a Refund voucher

▪ If Tax is paid under Reverse Charge then recipient has to Issue an Invoice and at the time of making payment to supplier Issue a payment voucher

Credit Note and Debit Note [Section 34 of CGST Act]

Where taxable value and / or tax

Charged in Tax Invoice > Amount Payable or goods returned by

recipient or services found deficient

Charged in Tax Invoice < Amount Payable

Taxable Person to issue CREDIT Note

Taxable Person to issue DEBIT Note

No reduction in Output tax liability if incidence of tax

and interest on supply has been

passed to any other person

On or before 30th

September following the end of FY of supply or

date of annual return whichever

is earlier

Accounting Perspectives

Few Points :

▪ Invoicing as per the Draft Format

▪ E Way Bill to be used for movement of Goods

▪ For Accounting of Taxes :oPreferable is to create separate Ledger’s:

Outward Ledgers of IGST, CGST and SGST Inward Ledgers of IGST, CGST and SGST Tax paid under Reverse Charge (Ledgers of IGST, CGST and SGST)

▪ Pass Transfer Entry every month in Electronic Credit Ledger Account

▪ Maintain GSTN of every supplier and customer

Tax Deduction at Source

[Section 51 of CGST Act]

Tax Deduction at Source

▪ Government to notify persons who shall deduct TDS on supply of Taxable goods or services

▪ TDS @ 1% to be deducted

▪ On Taxable supply > 2,50,000 per contract

No deduction shall be made if the location of the supplier and the place ofsupply is in a state or union territory which is different from the State or as thecase may be, Union territory of registration of the recipient.

TDS – When to be paid and file return

▪ Payment – 10th of the next month

▪ Return – 10th of the next month

▪ Issue TDS Certificate – 5 days from the payment to the Government

Tax Deduction at Source - Exception

Tax Deduction at Source - Transitional provisions

Where a supplier has made any sale

of goods

In respect of which tax was required to

be deducted

Under any law of a state or union

territory relating to Value Added Tax

No TDS u/s 51Before the

appointed day

Has also issued an invoice for the

same

Where payment to the said supplier is

made on or after the appointed day

Thank You

Goods & Service Tax (GST) - India - Sampat &...

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