GST Ready Reckoner as Amended by Finance Act, 2023

by Pankaj Goel

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Contents

About the Author

Pankaj Goel

Chartered Accountant

� Pankaj Goel has over 20 years of experience wherein he has worked

with big organizations such as Maruti Suzuki India Limited and

PricewaterhouseCoopers.

� Pankaj has vast experience in varied sectors including IT, Telecom,

Automotive, Financial Services and consumer durables. Pankaj has

represented several clients before the departmental authorities and at

Tribunal as well.

� Pankaj is a Science Graduate and a Chartered Accountant and was placed

on the merit list in CA Finals. Pankaj also holds Diploma in Information

System Audit (DISA, awarded by ICAI, India).

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GST Ready Reckoner as Amended by Finance Act, 2023

Publisher: Commercial Law Publishers

Language: Hindi

ISBN: 9789356034068

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1. Introduction and Coverage	1
1.1 Evolution of GST Structure	1
1.2 Method for Computation of GSTâ€”General Concept	2
1.3 GST on Inter-State supplies	3
1.4 How IGST Model Works?	5
Components of GST	7
1.5 Flow of credits under GST	7
Credit Utilisations	7
1.6 Sharing of GST between Centre and the State	9
1.7 Earlier Tax structure and GSTâ€”A comparison	10
Taxes	10
Credits	10
1.8 Framework of GST Laws	10
1.9 Coverage of CGST Act	11
1.9.1 Coverage under GST	11
Whether GST can be imposed on electricity?	12
1.9.2 Territorial Coverage of Act	12
1.10 Common Portal and Authentication	14
1.11 Appointed Day	15
1.12 Judgments	15
2. Concept of Supply	16
Dictionary meanings	16
2.1 Supplyâ€”Section 7	17
2.2 Inclusions	19
Section 7(1)a): First Limb of â€˜supplyâ€™	19
2.2.1 Meaning of the specified transactions	21
2.2.1.1 Supply on approval basis	23
2.2.1.1.1 Export of Goods for Exhibitions	24
2.2.1.2 Clarification on GST implications on Cost Petroleum earned by Oil Exploration Contractor	25
2.2.1.3 GST on Tenancy Premium or Pagadi	25
2.2.2 Made or agreed to be made	26
2.3 Provided or agreed to be provided	26
2.3.1 What is the significance of the phrase â€˜agreed to be providedâ€™?	26
2.3.2 Does the liability to pay the service tax on a taxable service arise the moment it is agreed to be provided without actual provision of service?	26
2.3.3 Supply should be â€œFor a Considerationâ€â€”Section 2(31) & 2(75) of CGST Act	27
2.3.3.1 Display of Name by Charitable Institution is not a Supply	29
2.3.4 Supply should be made â€œby a Personâ€â€”Section 2(84) of CGST Act	30
2.3.4.1 Supplies by Unincorporated Joint Ventures to its members and vice-versa	31
2.3.5 Supply should be made â€œIn the course or furtherance of businessâ€â€” Section 2(17) of CGST Act	32
2.3.5.1 No reverse charge on supplies not in the course or furtherance of business	34
2.4 Inclusionsâ€”Second Limb	34
2.4.1 Activity or Transaction Between a Person and its Members	35
2.5 Inclusionsâ€”Third Limb	37
2.5.1 Permanent Transfer of business assets	37
2.5.2 Transaction between Related or Distinct persons	38
2.5.2.1 Press Release for Employer â€“ Employee Transactions	39
2.5.2.2 Taxability on transaction between employer and employee	40
2.5.2.3 GST on Recoveries made by Employer	40
2.5.3 Transaction between Principal and Agent	41
2.5.3.1 Concept of Agent	42
2.5.3.2 Del Credere Agent	43
2.5.4 Import of services between related persons	44
2.6 Inclusionsâ€”Fourth Limb	45
2.6.1 Schedule II â€“ Activities or Transactions to be treated as supply of goods	46
2.6.1.1 Transfer of title in goods Entry 1(a)	46
2.6.1.2 Transfer of Property in goods at later date	46
2.6.1.3 Transfer of Business Assets	47
2.6.1.4 Person ceasing to be a taxable person	48
2.6.1.5 Supply to a member by unincorporated Associations	48
2.6.2 Schedule II â€“ Activities or Transactions to be treated as supply of services	49
2.6.2.1 Transfer of rights in goods relatedâ€”Entries 1(b)and 5(f)	50
2.6.2.2 Immovable property relatedâ€”Entries 2 and 5(a),(b) and 6(a)	50
2.6.2.3 Treatment or processâ€”Entry 3	51
2.6.2.4 Putting business goods to personal or non-business useâ€” Entry 4(b)	52
2.6.2.5 Intellectual Property Rights Relatedâ€”Entry 5(c) & (d)	53
2.6.2.6 Refrainment Relatedâ€”Entry 5(f)	55
2.6.2.6.1 Clarifications issued by CBIC	55
2.7 Exclusions Schedule III	61
2.7.1 Employee related servicesâ€”Schedule III Clause 1	62
2.7.1.1 Taxability of services provided by Employer to Employee	63
2.7.2 Schedule III â€“ Clauses 2 & 3	63
2.7.2.1 Clarification on fee/amount levied by Consumer Disputes Redressal Forums	64
2.7.3 Schedule III â€“ Clause 4	65
2.7.4 Schedule III â€“ Clause 5	65
2.7.5 Schedule III â€“ Clause 6	66
2.7.6 Schedule III â€“ Clause 7 Merchant Trade Transactions(w.e.f. 01.02..2019 vide CGST (Amendment) Act, 2018(31 of 2018)	66
2.7.6.1 Non-Reversal of ITC	67
2.7.7 Schedule III â€“ Clause 8 High Sea Sales/Sales of Warehoused Goods (w.e.f. 01.02..2019 vide CGST (Amendment) Act,2018 (31 of 2018)	67
2.7.7.1 Non-Reversal of ITC	68
2.8 Exclusionâ€”Notified Activities by the Government	69
2.8.1 Grant of Alcoholic Liquor License by State Government	69
2.8.2 Inter-State Movement of Conveyances	70
2.9 Goods	71
2.10 Services	72
3. Taxable event and composition levy	73
3.1 Charging Section under Cgst Actâ€”Section 9	74
3.1.1 Forward charge	74
3.1.2 Reverse Charge under CGST Act	75
3.2 Charging Section under IGST Actâ€”Section 5	76
3.2.1 Forward charge	76
3.2.2 Judgments	78
3.2.3 Reverse Charge under IGST Act	79
3.3 Composition Levyâ€”Section 10	80
3.3.1 Composition Levy for Manufacturers and Specified Services	80
3.3.2 Composition Levy For Remaining Supplies of Goods or Services or Both	85
3.3.2.1 Procedures for Adopting Composition Scheme by Service Providers	87
3.3.3 Filing of Returns/Statement	87
3.3.4 Registration and intimation under the Composition scheme	88
3.3.5 Withdrawal from the composition levy scheme and procedure thereafter	88
3.3.5.1 Effective Date of Withdrawal from Composition Scheme	89
3.3.6 Action for wrongly opting the scheme or for contravention of any provision of the scheme	89
3.3.6.1 Effective Date of Denial of Composition Option by Authorities	89
3.4 List of Composition Forms	90
4. Reverse Charge mechanism	91
4.1 What is Reverse Charge?	91
4.2 Constitutional Validity	91
4.3 Whether Threshold applicable on Reverse Charge?	91
4.4 Charging Section under CGST Actâ€”Section 9	92
4.4.1 Reverse Charge under CGST Act	92
4.4.2 Reverse charge on Supplies from Unregistered Persons	93
4.4.2.1 No reverse charge on supplies not in course or furtherance of business	93
4.4.3 Reverse charge on supplies from unregistered persons not applicable to TDS deductors	93
4.5 Supplies Notified under Reverse Charge	94
4.5.1 Reverse Charge on Services	94
4.5.1.1 Services received from outside India	94
4.5.1.2 Services provided by Goods Transport Agency	95
4.5.1.2.1 Reverse Charge Not Applicable on Certain Supplies by GTA	97
4.5.1.2.2 Who will be treated as recipient of GTA services?	98
4.5.1.2.3 Firm and LLP	98
4.5.1.2.4 Undertaking to be filed by GTA on GSTN Portal	98
4.5.1.3 Legal Services provided by advocates, etc.	99
4.5.1.3.1 Clarifications issued in relation to services by advocates	99
4.5.1.3.2 Press Release issued in relation to services	100
4.5.1.4 Services by Arbitral Tribunal	100
4.5.1.4.1 Exemption for Services by Advocates and Arbitral Tribunal	101
4.5.1.5 Sponsorship Services	103
4.5.1.6 Services provided by Government to Business Entity	103
4.5.1.7 Renting Services provided by Government etc.to a Registered Person	104
4.5.1.8 Services provided by Director of a Company	105
Section 2(7) of the Companies Act,	105
4.5.1.8.1 Clarification on Director Remuneration	105
4.5.1.9 Services provided by Agent to an InsuranceCompany	106
4.5.1.10 Services provided by Recovery Agent to a Bank/FI	106
4.5.1.11 Transportation of goods by vessel upto custom station	106
4.5.1.11.1 Dual Taxation and Special Valuation Procedure for GST on Ocean Freight	107
4.5.1.11.2 Special Valuation Provision for Transportation by Vessel	108
4.5.1.12 Services by music composer, photographer and artist	108
4.5.1.13 Services by the members of Overseeing Committee to Reserve Bank of India	109
4.5.1.14 Supplies by DSAs to banks or NBFCs	109
4.5.1.15 Reverse charge made applicable on specified services to Banking Company	110
4.5.1.16 Reverse charge made applicable on specified services to Business Correspondent	110
4.5.1.17 Reverse charge made applicable on Supply of Security Services to Registered Person	111
4.5.1.18 Services supplied by way of TDR or Floor Space Index (FSI) (including additional FSI) for construction of a project by a promoter	112
4.5.1.19 Long-term lease of land (30 years or more) by any person against consideration in the form of upfront amount	112
4.5.1.20 Copyrights Granted by an Author	113
4.5.1.21 Services provided by way of Renting of Motor Vehicle	114
4.5.1.22 Lending of Securities as Securities Lending Scheme	115
4.5.1.23 Renting of Residential Dwelling to Registered Person	115
4.5.2 Reverse Charge on Goods	116
4.5.2.1 Reverse Charge and Rate on Priority Sector Lending Certificate (PSLC)	118
GST Rate on REC certificates and PSLC certificates 119 4.5.2.2 Reverse Charge on Supply of Second-Hand Goods by Government Clarified	119
4.6 Electronic Commerce Operator to be treated as supplier for specified services	120
4.7 Reverse Charge on Receipt of Supplies from an Unregistered Person	123
4.8 Reverse Charge Tax Not to be Paid by Credit	124
4.9 Credit on supplies used for making supplies on which reverse charge is applicable	125
5. Classification of Supply	126
5.1 Composite Supply, Mixed Supply and Single Supply	126
5.1.1 Naturally bundled in ordinary course of business	128
5.1.2 Principles for determining single supply	129
5.1.3 Classification of Printing Contracts	129
5.1.4 Clarifications issues in relation to printing of books	130
5.1.5 Classification of Cut Pieces of Fabric	130
5.1.6 Clarification on classification of various supplies	131
5.1.7 Time of supply in case of Composite supply	133
5.1.8 Time of supply in case of mixed supplies	133
5.2 Determination of tax liability under Composite supplies and Mixed supplies â€“ Section 8 of CGST Act	133
5.3 Judgments	133
5.4 Classification of Services	136
5.5 Customs Classification under Custom Tariff Act, (â€˜CTAâ€™)	137
5.5.1 Codification under CTA	137
5.5.2 Interpretation of CTA	137
5.5.3 Classification Rules at a glance	138
5.5.4 Other Rules	138
5.5.5 Interpretative Rules	139
5.5.6 Classification of Parts	140
5.5.7 General Principles of Classification	140
6. Time of Supply	141
6.1 Section 12â€”Concept of Time of supply	141
6.1.1 Timeline for issuance of invoiceâ€”Section 31 of CGST Act	142
6.2 Time of Supply of Goodsâ€”Section 12 of CGST Act	143
6.2.1 Special Provision for Government Supplies and Goods on Approval Basis	145
6.2.2 Vouchersâ€”Section 2(118) of CGST Act	145
6.3 Time of Supply of Serviceâ€”Section 13 of CGST Act	147
6.4 Time of supply in case of change in rate of tax for both goods and servicesâ€”Section 14 of CGST Act	149
6.5 Date of receipt of payment in case of change in rate of tax	149
7. Place of Supply of Goods	150
7.1 Need for Ascertaining Place of Supply	150
7.2 Delivery	151
7.3 Supply involving movement of goods	151
7.4 Intra-State Suppliesâ€”Sections 8 & 9 of IGST Act	153
7.5 Inter-State Suppliesâ€”Section 7 of IGST Act	154
7.6 Location of Recipient of Servicesâ€”Section 2(14) of IGST Act	155
7.6.1 Recipient of Suppliesâ€“Section 2(93) of CGST Act	155
7.7 Location of supplier of Servicesâ€”Section 2(15) of IGST Act	156
7.7.1 Supplierâ€”Section 2(105) of CGST Act	157
7.8 Judgments	157
Gunter Berkholz Case	157
7.9 Place of Supply of Goods (not Import and Export)â€” Section 10 of IGST	158
7.10 Place of Supply of Goods imported into or exported out of Indiaâ€”Section 11 of IGST Act	160
8. Place of Supply of Servicesâ€“I (Both Supplier and Recipient in India)	161
8.1 General Ruleâ€”Section 2(2) of IGST Act	161
8.1.1 Address on Record as defined u/s 2(3) of CGST Act	161
8.1.2 Place of Supply of Software Development Services	161
8.1.3 Bill to Ship to scenario for supply of Services	162
8.1.4 Place of Supply in case of Services Provided by Ports	162
8.2 Immovable Property Relatedâ€”Section 12(3) of IGST Act	163
8.2.1 What are the criteria to determine if a service is â€˜directly in relation toâ€™ immovable property?	164
8.2.2 Judgments	165
Macdonald Resorts Limited Câ€”270/09	166
8.2.3 Determination of Place of Supply in case of Immovable Property Related Services in Multiple States [Section 12(3) of IGST Act]	167
8.3 Where personal appearance is requiredâ€”Section 12(4) of IGST Act	168
8.4 Training and Performance Appraisal Relatedâ€”Section 12(5) of IGST Act	168
8.5 Admission to Eventsâ€”Section 12(6) of IGST Act	168
8.6 Organisation of Eventsâ€”Section 12(7) of IGST Act	169
8.6.1 Determination of Place of Supply in case of Event, etc. in Multiple States [Section 12(7) of IGST Act]	170
8.6.2 Judgments	170
8.7 Transportation of Goodsâ€”Section 12(8) of IGST Act	171
8.8 Transportation of Passengersâ€”Section 12(9) of IGST Act	172
8.8.1 Continuous Journeyâ€”Section 2(3) of IGST Act	172
8.9 Supply of services on board or conveyance or vesselâ€”Section 12(10) of IGST Act	174
8.10 Supply of Telecommunication Services including Data Transfer,Broadcasting, Cable and Direct to Home Television servicesâ€”Section 12(11) of IGST Act	175
8.10.1 Determination of Place of Supply in case of provision of Lease Circuit Services in Multiple States [Section 12(11)of IGST Act]	176
8.11 Supply of Banking or other financial or stock broking servicesâ€”Section 12(12) of IGST Act	176
8.12 Supply of Insurance servicesâ€”Section 12(13) of IGST Act	176
8.13 Supply of Advertisement servicesâ€”Section 12(14) of IGST Act	177
8.13.1 Determination of place of supply of advertisement services to Government	177
9. place of supply of servicesâ€“II(Either Supplier or Recipient are located outside India)	179
9.1 Import and Export of Goods or Services or Both	179
9.2 Zero Rated Supplies and Import/Export of Goods and Servicesâ€”(Section 16 of IGST Act)	180
9.3 Place of Supply of Services Rules (Either Supplier or Recipient are located outside India)â€”Section 13 of IGST Act	181
9.3.1 General Ruleâ€”Section 13(2) of IGST Act	181
9.3.1.1 Exemption to services having place of supply in Nepal and Bhutan	182
9.3.1.2 Place of Supply of Software DevelopmentServices	182
9.3.2 Actual Performance Basisâ€”Section 13(3) of IGST Act	183
9.3.2.1 Place of supply for testing software loaded in a prototype	185
9.3.2.2 Place of Supply in case of Temporary Imports of Diamonds	185
9.3.2.3 Judgments	186
9.3.3 Immovable Property Relatedâ€”Section 13(4) of IGST Act	186
9.3.4 Admission to or Organisation of Event, etc.â€”Section 13(5)of IGST Act	186
9.3.5 Service supply in taxable and non-taxable territoryâ€”Section 13(6) of IGST Act	186
9.3.6 Service supply in multiple States /UTsâ€”Section 13(7)of IGST Act	187
9.3.6.1 Determination of Place of Supply in case of Performance Based Services are Received /Provided in Multiple States [Section 13(7)of IGST Act]	187
9.3.6.2 Determination of Place of Supply in case of Immovable Property Related Services in Multiple States [Section 13(7) of IGST Act]	188
9.3.6.3 Determination of Place of Supply in case of Event, etc., in Multiple States [Section 13(7)of IGST Act]	189
9.3.7 Service supplied by Banking co./FI/NBFCâ€”Section13(8)(a) of IGST Act	189
9.3.8 Service provided by an intermediaryâ€”Section 13(8)(b) of IGST Act	190
9.3.8.1 Determining factors to be an intermediary	191
9.3.8.2 CBIC Clarification on Intermediary	193
9.3.8.3 Exemption to intermediary services in case of merchant trade transactions of goods	195
9.3.8.4 Judgments	196
9.3.9 Service provided by hiring of Yachts, etc.â€”Section 13(8)(c) of IGST Act	198
9.3.10 Transportation of goodsâ€”Section 13(9) of IGST Act	199
9.3.10.1 Place of Supply for Launch of Satellite	200
9.3.11 Transportation of Passengersâ€”Section 13(10) of IGST Act	200
9.3.12 Supply of services on board conveyance, etc.â€”Section 13(11) of IGST Act	201
9.3.13 Supply of Online Information and Databaseâ€”Sections 13(12) & 14 of IGST Act	201
9.3.14 Place of effective use and enjoyment of serviceâ€”Section 13(13) of IGST Act	205
9.3.14.1 Place of Supply of R&D services related to Pharmaceutical Sector	205
9.3.14.2 Place of Supply in case of Aircraft MRO Services	207
9.3.14.2.1 Rate of Aircraft MRO Services	208
9.3.14.3 Place of Supply in case of MRO Services For Ships and Vessels	208
9.3.14.3.1 Rate of Ship or Vessel MRO Services	208
10. GST Rate on Supply of Services	209
10.1 Construction Services and Real Estate	210
10.2 Commission Agents, etc.	210
10.3 Services relating to mining, petroleum exploration, electricity,gas and water distribution	211
10.4 Accommodation Services in Hotels, etc.	212
10.5 Restaurant Related Services	212
10.6 Passenger Transportation in Rail	212
10.7 Passenger Transportation in Cab	212
10.8 Passenger Transportation through Air	212
10.9 Goods Transportation through Rail	212
10.10 Goods Transportation through Vessel	212
10.11 Goods Transportation through Road by Goods Transport Agency (GTA)	212
10.12 Rental Services of Vehicles meant for Transportation	213
10.13 Transportation of goods by postal or courier services	213
10.14 Services by Foreman of Chit Fund	213
10.15 Transfer of Right to Use Goods	213
10.16 Real Estate Related	213
10.17 IPR Related	213
10.18 Lease of Goods	213
10.19 R&D and Legal and Accounting Services	213
10.20 Advertisement Space Selling and other professional services	214
10.20.1 GST Rate on selling of space for advertisement in souvenirs	214
10.21 Supply of E-Books, Telecommunication, Broadcasting, etc.	214
10.22 Tour Operator and Other Support Services	215
10.23 Agriculture Related Services	215
10.24 Maintenance, Repair and Installation Services	215
10.24.1 Meaning of not taking input tax credit on goods or services	217
10.25 Job Work Related Services	218
10.26 Other Manufacturing, Publishing, Printing etc. Services	218
10.27 Public Administration and Social Security Services	218
10.28 Education and Health Related Services	218
10.28.1 GST Rate on Catering in Educational Institution	219
10.29 Sewage and Waste Collection Related Services	220
10.30 Membership of Organisation Related Services	221
10.31 Admission to Events, films and Actionable Claim Related	221
10.32 Residuary Entry	221
10.33 Domestic Services	222
10.34 Services provided by extra territorial organisations and bodies	222
10.34.1 Activities of extra territorial organizations and bodies	222
10.35 Construction, Engineering or Installation Services in relation to Renewable Energy Plants	223
10.36 Definition of the Terms used in the Rate Notifications	224
10.36.1 Meaning of Goods	224
10.36.2 Applicability of Customs Tariff Act, 1975	224
11. Exemptions on Supply of Services	225
11.1 Charitable Institution Services	225
11.1.1 CBIC Clarification on Charitable Institutions	229
11.1.1.1 GST on management of educational institutions by charitable trusts:	231
11.1.1.2 Import of Services:	231
11.1.1.3 Services by and to Educational Institutions(including institutions run by Charitable trusts):	231
11.1.1.4 GST on arranging yoga and meditation camp by charitable trusts:	232
11.1.1.5 GST on hospital managed by charitable trusts:	232
11.1.1.6 GST on services provided to charitable trusts:	233
11.1.1.7 GST on supply of goods by Charitable Trusts:	233
11.1.2 Judgments	233
11.2 Transfer of a Going Concern, as a Whole or an Independent Part Thereof	233
11.3 Services to or by Government	234
11.4 Construction related Services	234
11.5 Rent Related Services	234
11.6 Accommodation in Hotel, etc. Related Service	234
11.7 Passenger Transport Related Service	234
11.8 Goods Transport Related Service	235
11.9 Transfer of Right to Use or Leases etc.	235
11.10 Financial Institutions, Insurance, Employee Benefits, etc. Related	235
11.11 Education or Sports Related	235
11.12 Agriculture Related	235
11.13 Health Related	235
11.13.1 Applicability of GST on Services provided by Hospitals	238
11.14 Event, Brand Ambassador, Artist, Music, etc. Related	239
11.15 Public Convenience Related	239
11.16 Services to members by societies, unincorporated body or non-profit entity	240
11.16.1 CBIC Clarification on Services by RWAs	241
11.17 Tour Operator Services	243
11.18 Incubator or Incubatee Related	243
11.19 Advocate, Arbitral Tribunal Related	244
11.19.1 Partnership firm and LLP	246
11.20 Transmission of Electricity Related	247
11.21 Exemption and Refund to Canteen Store Departments (CSD)(Section 55 of CGST Act)	248
11.22 Exemption on Supplies to TDS Deductor in Specified Circumstances	248
11.23 Exemption from Reverse Charge Payment on Purchase of Second Hand Goods From Unregistered Supplier	248
11.24 Inter-State Supply of Conveyancesâ€”Not a Supply	250
11.25 Services Associated with Transit Cargo to Nepal and Bhutan	251
11.26 Exemption to services having place of supply in Nepal and Bhutan	252
11.27 Toll charges to Road, etc.	252
11.27.1 GST on Overload Charges at Toll Plazas	253
11.27.2 Applicability of GST on Payment of Annuity for Construction of Road	253
11.27.3 GST on payment of additional toll fee	253
11.28 Exemption to royalties payment to be made outside India	253
11.29 Import of Services by SEZ unit or Developer	254
11.30 Import of Goods by SEZ unit or Developer	254
11.31 Services Provided by Indian Establishment to Establishment Located Outside India	255
11.32 Services Imported by UNO or Specified Organizations	255
11.33 Services Imported by Foreign Diplomatic Missions, Consular posts, Diplomatic Agent or Career Consulars	256
11.33.1 Services Provided by ADB and IFC	257
11.34 Import of Services by Individual for Non Business Purposes	257
11.35 Satellite Launch by ISRO	258
11.36 Misclleneous Exemptions	258
12. Compensation Cess and Rate of Tax on Goods	259
12.1 Compensation Cess	259
12.2 GST Rate of on Supplies of Goods	262
12.2.1 GST Rate on REC certificates and PSLC certificates	263
12.3 Special Rate on Intra State Supply of Goods or Services	263
12.4 GST Rate on laterals and other parts (Even if supplied separately) solely used for another goods	263
13. Valuation of Supply	264
13.1 Valuation of Taxable Supplyâ€”Section 15 of CGST Act	264
13.1.1 Price payableâ€”Section 15(1) of CGST Act	265
13.1.2 Inclusions u/s 15(2) of CGST Act	266
13.1.3 Exclusions from value of supplies u/s 15(3) of CGST Act	269
13.1.3.1 Post Supply Discount	269
13.1.3.2 Treatment of Gifts, Samples, Discounts and Post Supply Discounts	270
13.1.3.3 Treatment of Additional Discounts	271
13.1.4 Related Person u/s 15 of CGST Act	271
13.1.5 Examples for Valuation of Supplies	272
13.1.6 Inclusion of Value of Moulds and Dies for Valuation Purposes	273
13.1.7 GST on Car Maintenance Comprising of Both Goods and Services	274
13.1.8 Value of Supply where Kerala Flood Cess is Applicable(Rule 32A of CGST Rules)	274
13.2 Valuation Rulesâ€”Section 15(4) of CGST Act	274
13.2.1 Valuation based on costing of goods (Rule 30)	274
13.2.2 Residual Rule (Rule 31)	275
13.2.3 Consideration not wholly in money (Rule 27)	275
13.2.4 Branch Transfer or Supplies to Related Persons of goods and services (Rules 28 and 32(7))	276
13.2.5 Supplies of Goods (only) Through Agent (Rule 29)	278
13.3 Valuation of Specific Supplies (Rule 32)	278
13.3.1 Valuation of Foreign Currency Exchangeâ€”Rule 32(2)	278
13.3.2 Valuation of Air Travel Agent Servicesâ€”Rule 32(3)	278
13.3.3 Life Insurance Servicesâ€”Rule 32(4)	279
13.3.4 Margin Scheme â€“ Sale of Second Hand Goodsâ€”Rule 32(5)	279
13.3.5 Vouchers, Coupons and Stamps (Other than postage stamp)â€”Rule 32(6)	279
13.3.6 Value of supply of services in case of Pure Agentsâ€”Rule 32(7)	279
13.3.6.1 Non-Inclusion of Airport Levies in Taxable Value	281
13.3.6.2 Judgments	281
13.3.7 Value of Lottery	282
13.3.8 Valuation of Betting, Gambling and Horse Racing	282
13.3.9 Special Valuation Provision for Transportation by Vessel	283
13.4 Valuation for Construction of Renewable Energy Projects	283
13.5 Exchange rate for Valuation of Supplies (Rule 34)	284
14. Input Tax Credit	285
14.1 Some important definitions	285
14.1.1 Scope of Credits under CCR and GST	289
14.2 Eligibility for availment of input creditâ€”Section 16 of CGST Act	290
14.2.1 ITC Not Available on Input Invoices Not Available in GSTR-2B	294
14.2.1.1 Clarification Put Forth for Restriction of Credit Availment	296
14.2.1.2 Full credit allowed owing to COVID-19 during Specified Time Period	296
14.2.2 Clarification as to availability of credit to suppliers engaged in passenger transportation by air in economy class	297
14.2.3 Credit Availability in respect of addition to taxable value pursuant to Valuation Provisons	297
14.2.4 Specifying return in Form GSTR-3B as return to be filed under Section 39	297
14.2.5 Restriction on ITC Utilisation on specified Taxpayers for Tax Payment: Section 49 and Rule 86B	298
14.2.6 Restricted credit in GSTR-2B as per Section 38	298
14.2.7 Reversal of ITC where supplier has not paid the taxes:Section 41	299
14.2.8 Judgments	299
14.3 Disallowed Creditsâ€”Section 17(5) of CGST Act	301
14.3.1 Additional categories on which input tax credit is restricted or not available	306
14.3.2 ITC Availability in case of Sales Promotion Scheme	306
14.3.3 ITC Availed and Reversed	307
14.3.4 Clarification on barred ITC on motor vehicle, etc.	307
14.3.5 Judgments	308
14.4 Restricted or Apportioned Creditsâ€”Section 17(1) of CGST Act	311
14.4.1 CBIC Flyer	314
14.4.2 Value of Land and Security	315
14.4.3 Value of exempt Supplies	315
14.5 Special casesâ€”Section 18 of CGST Act	315
14.5.1 Removal of Capital goods or Plant & Machineryâ€”Section 18(6) of CGST Act	315
14.5.2 Credit on taking registrationâ€”Section 18(1) and 18(4) of CGSTAct	316
14.5.3 Credit Transfer on Amalgamation, Merger, etc. allowed to Transfereeâ€”Section 18(3) of CGST Act	318
14.5.3.1 Rules for allowing the credit on amalgamation,etc.	319
14.5.3.2 Clarifications on Transfer of Credits in case of Demerger	319
14.5.4 Credit Transfer on Obtaining Separate Registration for Multiple Places of Business within State (Rule 41A of CGST Rules w.e.f. 01.02.2019)	320
14.5.5 Credits and Job Workâ€”Section 19 of CGST Act and Input Credit Rules	321
14.6 Input Service Distributor (â€˜ISDâ€™)â€”Section 20 of CGST Act	321
14.6.1 Meaning of ISDâ€”Section 2 of CGST Act	322
14.6.2 Input Service Distributor (ISD)	322
14.6.3 Refund claim by ISD and Non-Resident Taxable Person	323
14.6.4 CBIC Flyer	323
14.6.5 Judgments	325
14.7 Blocking Available Input Tax Credit (Rule 86A)	326
14.7.1 Reasons for disallowing the usage of input tax credit	326
14.7.2 Consequences of such disallowance	326
14.7.3 Revocation of such Disallowance	326
14.7.4 Whether the order given is Appealable?	327
14.7.5 Guidelines for Blocking the Credit under Rule 86A	327
14.7.5.1 Grounds for blocking the credit	327
14.7.5.2 Proper Authority for Blocking the Credit	328
14.7.5.3 Process of Blocking the Credit	328
14.7.5.4 Period of Blocking of Credit	328
14.7.6 Judgments	328
14.8 Forms under Input Tax Credit Rules	329
15. job Work	330
15.1 Job work Definitionâ€”Section 2(68) of CGST Act	330
15.1.1 Whether Manufacturing Activity Will Come under Job Work Process	331
15.2 Job Work Procedureâ€”Section 143 of CGST Act	331
15.2.1 Issue of Challan under Job Work Procedures	333
15.2.2 Character of supply of goods by Principal to a job worker	334
15.2.3 Usage of goods by job worker	335
15.2.4 Input Tax Credit Availability to Job Worker and Principal	335
15.2.5 Registration Requirements for principal and job worker	335
15.2.6 Movement of goods for job work	336
15.2.7 Issuance of intimation by principal under Section 143 of CGST Act, 2017	337
15.2.7.1 ITC-04 filing periodicity	337
15.2.8 Valuation of Job work services	338
15.2.9 Determination of Place of Supply for moving job worked goods directly from job workerâ€™s premises	338
15.3 Job Work and Credit to Principalâ€”Section 19 of CGST Act	339
15.4 Whether Goods or Service?â€”Schedule II of CGST Act	340
15.4.1 Classification of Printing Contracts	340
15.4.2 Clarifications issued in relation to printing of books	341
15.4.3 GST on Body building of Motor Vehicles	341
15.5 Place of Supplyâ€”Section 12 of IGST Act	341
15.6 Place of Supplyâ€”Section 13 of IGST Act	342
15.7 GST Rate on Job Work Services	342
15.7.1 Job Work Related	343
15.7.1.1 GST Rate on job work to manufacture alcoholic liquor	349
15.7.2 Other Manufacturing, Publishing, Printing, etc., Services	349
15.8 Exemptions	351
15.8.1 Customised Milling of Paddy	352
15.9 CBIC Flyer on Job Work	352
15.9.1 Job work Procedural aspects	352
15.9.2 Input Tax credit on goods supplied to job worker	353
15.9.3 Extended Meaning of input	353
15.9.4 Waste clearing provisions	354
16 Construction of Complex & Real Estate	355
16.1 Construction of Complexâ€”Schedule II of CGST Act	355
16.2 Definitions	357
16.3 Various models prevalent in the industry for construction of complex	358
16.3.1 GST Applicability on Transfer of Development Rights	358
16.4 Whether Goods or Service?â€”Schedule II of CGST Act	359
16.5 Input Creditâ€”Section 17(5) of CGST Act	359
16.5.1 Determination of Proportionate credit attributable to Taxable and Exempt Supplies for Construction of Complex	360
16.6 Place of Supplyâ€”Section 12 of IGST Act	360
16.7 Place of Supplyâ€”Section 13 of IGST Act	361
16.8 GST Rates	361
16.8.1.1 Value of Land and Total Amount	380
16.8.1.2 Government Authority Para 4(ix)	381
16.8.1.3 Government Entity Para 4(x)	381
16.8.1.4 CBIC Flyer on Valuation of Construction of Complex Services	381
16.8.1.5 What are Affordable Housing Projects?	382
16.8.1.6 Definitions	382
16.8.2 Real Estate Related Supplies	388
16.8.2.1 Meaning of Total Amount	389
16.8.3 Rate on Services Supplied by Unregistered Suppliers to Promoters	390
16.8.4 Rate on Goods Supplied by Unregistered Suppliers to Promoters	391
16.9 Exemptions	392
16.9.1 Residential Complex	393
16.9.2 Original Works	393
16.9.3 Exemption on Transfer of Development Rights, etc.	395
16.9.3.1 Determination of Value for the purpose of Exemption and Payment by Promoter under RCM	399
16.10 Liability to pay tax in case of joint development (Section 148 of CGST Act)	400
16.10.1 Special Provision for Payment of GST by Promoter on Procurement of Development Rights or FSI or Long-Term Lease (Section 148 of CGST Act)	401
16.11 Press Release in relation to Construction of Complex	403
16.12 Refund of Input Tax	403
16.13 Reverse Charge	404
16.13.1 Reverse Charge on Receipt of Supplies from an Unregistered Person	404
16.13.2 Reverse Charge on Services	405
16.14 Judgments	406
16.15 ITC Reversals	409
16.15.1 ITC Reversal in relation to inputs and input services for Construction of Complex	409
16.15.1.1 Periodic Calculation of â€œEâ€ and â€œFâ€ for tax period wise calculations in case of Construction of Complex services	409
16.15.1.2 Final Calculation of â€œEâ€ and â€œFâ€ in case of Construction of Complex services	410
16.15.1.3 For projects commence on or after 1st April,2019, which did not undergo or did not require transition of input tax credit consequent to change of rates of tax on 1st April, 2019	410
16.15.1.4 For commercial portions in projects other than RREP which underwent transition of input tax credit consequent to change of rates of tax on 1st April, 2019	410
16.15.1.5 For RREP projects which underwent transition of input tax credit consequent to change of rates of tax on 1st April, 2019	411
16.15.2 ITC Reversal in relation to capital goods for Construction of Complex	411
16.15.2.1 Periodic Calculation of â€œEâ€ and â€œFâ€ for tax period wise calculations in case of Construction of Complex services	412
16.15.2.2 Final Calculation of â€œEâ€ and â€œFâ€ in case of Construction of Complex services	412
16.16 Clarifications on Real Estate	413
16.17 GST on sale of developed land	413
16.18 GST on Preferential Location Charges (PLC)	414
16.19 Challenges	414
17. Services by or to Government	416
17.1 Supplies By Government	416
17.2 GST Rates	422
17.2.1 Real Estate Related Suppllies	422
17.3 Exemptions available to supply by or to Government	423
17.3.1 Clarification on non-applicability of GST on general insurance services provided to/by Government	440
17.3.2 Exemption on Supplies to TDS Deductor in Specified Circumstances	440
17.3.3 Applicability of GST on Milling of Wheat/Paddy under PDS	440
17.3.4 Applicability of GST on Loans Guaranteed by State Government to its undertakings and PSUs	441
17.3.5 GST Exemptions to Coaching Services Supplied by NGOs under Central Scheme of â€˜Scholarship for Students with Disabilitiesâ€™	441
17.4 Reverse Charge on Services	441
17.5 Reverse Charge on Goods	443
17.5.1 Reverse Charge on Supply of Second-Hand Goods by Government Clarified	444
18. Services relating to Agriculture	446
18.1 Registration	446
18.2 Exemption of Services in relation to Agriculture	447
18.2.1 Terminologies in the Exemptions	450
18.2.2 Customised Milling of Paddy	451
18.2.3 Clarification as to Agriculture Produce	451
18.2.4 Applicability of GST on storage or warehousing of cotton in baled or ginned form	452
18.2.5 Judgments and Advance Rulings Relating to Agriculture Produce	452
18.3 GST Rate on services	454
18.3.1 Meaning of Agriculture Extension (Para 24)	456
18.3.2 Meaning of Agriculture Produce (Para 24)	456
18.3.3 Meaning of Agriculture Produce Marketing Committee or Board (Para 24)	456
18.4 Reverse Charge on Goods	456
19. Service in Relation to Passenger Transport	460
19.1 Rate of GST on Passenger Transport Services	460
19.1.1 Passenger Transportation in Rail	460
19.1.2 Passenger Transportation in Cab	461
19.1.3 Rental Services of Vehicles Meant for Transportation	463
19.1.4 Passenger Transportation through Air	466
19.1.4.1 Clarification as to availability of credit to passenger transportation by air in economy class	468
19.1.4.2 Meaning of not taking input tax credit on goods or services	468
19.1.4.3 Specified Organisations	468
19.2 Exemption on Passenger Transport Services	468
19.2.1 Stage carriage	470
19.2.2 Metro, monorail or tramway	471
19.2.3 Inland waterways	472
19.2.4 Metered cabs, radio taxis or auto rickshaws or e-rickshaw Metered Cab	473
19.2.5 Contract Carriage	474
19.2.6 Maxi cab and motorcab	474
19.2.7 Omnibus	475
19.2.8 Motor Vehicle	475
19.2.9 GST exemption on hiring of vehicle by Companies for transportation of employees	475
19.2.10 GST applicability on passenger transportation through private ferry	475
19.2.11 Difference between renting of motor vehicle and passenger transportation	476
19.3 Liability of Electronic Commerce Operator to pay Tax for specified services under Section 9(5) of the CGST Act	476
19.4 Place of Supply (When both recipient and provider are located in India)â€”Section 12(9) of IGST Act	477
19.4.1 Continuous Journeyâ€”Section 2(3) of IGST Act	477
19.5 Place of Supply (When either recipient or supplier is located outside India)â€”Section 13(10) of IGST Act	478
19.5.1 Supply of services on board conveyance, etc.â€”Section 13(11) of IGST Act	478
19.6 Valuation of Air Travel Agent Services (Valuation Rule)	478
19.7 Inter-State Movement of Conveyances	478
19.8 Reverse Charge on Services provided by way of Renting of Motor Vehicle	480
20. Transportation of Goods	481
20.1 What is Goods?	481
20.2 Goods Transport Agency (GTA)	482
20.2.1 Enrolment for Transporters	482
20.3 Courier Agency	483
20.3.1 Door to Door Transportation	483
20.3.2 Difference between Courier Agency and GTA	484
20.4 GST Rate on Goods Transportation Services	484
20.4.1 Goods Transportation through Rail	484
20.4.2 Goods Transportation through Vessel	485
20.4.3 Goods Transportation through Road by Goods Transport Agency (GTA)	486
20.4.4 Transportation of Goods Through Pipeline	491
20.4.5 Multimodal Transportation of Goods	492
20.4.6 Support Services in Transportation of Goods by GTA	493
20.4.7 Multimodal Transportation, Mode of Transport and Multimodal Transporter	495
20.4.8 Transportation of goods by postal or courier services	496
20.4.9 Transportation of goods by ropeway	496
20.5 Exemption on Goods Transportation Services	497
20.5.1 Goods Transportation Through Air	497
20.5.2 Goods Transportation Through Vessel or Rail	498
20.5.3 Goods Transportation by GTA	499
20.5.4 Partnership firm and LLP	503
20.5.5 Services associated with transit cargo to Nepal and Bhutan	503
20.5.5.1 GST exemption on services associated with transit cargo both to and from Nepal and Bhutan	503
20.5.6 Aircraft, Vessel, Goods Carriage and Custom Station	503
20.5.7 Inland waterways	505
20.6 Reverse Charge Mechanism on Services	506
20.6.1 Who will be treated as recipient of GTA services?	508
20.6.2 Firm and LLP	508
20.6.3 Special Valuation Provision for Transportation by Vessel	508
20.6.4 Undertaking to be filed by GTA	508
20.7 Place of Supply (both supplier and recipient are located in India)â€”Section 12(8) of IGST Act	510
20.7.1 ITC on Transportation of Goods with destination outside India	510
20.8 Place of Supply (either supplier or recipient is located in India)â€”Section 13(9) of IGST Act	510
20.9 Inter-State Movement of Conveyances	511
20.10 Clarification on GTA	512
20.10.1 Who is a GTA â€“ Goods Transport Agency?	512
20.10.2 Position under GST	513
20.10.3 What is a consignment note?	513
20.10.4 Significance of the term â€˜in relation toâ€™ in the definition of GTA	513
21. Transfer of Right To Use, Lease, License, Etc.	514
21.1 Transaction as supply of goods or services	514
21.2 GST Rate on supply of such services	515
21.2.1 Rental Services of Transport Vehicles with Operators	515
21.2.1.1 GST on Renting of trucks and other freight vehicles	517
21.2.2 Transfer of Right to Use Goods	517
21.2.3.1 Meaning of not taking input tax credit on goods or services	520
21.2.3.2 Meaning of Operator for Leasing of Aircraft(Para 15(iv))	520
21.2.3.3 Meaning of Scheduled Air Transport Services for Leasing of Aircraft (Para 15(iv)	520
21.2.3.4 Meaning of Scheduled Air Cargo Services for Leasing of Aircraft (Para 15(iv))	520
21.2.4 IPR Related	521
21.2.4.1 Meaning of Information Technology Software(Para 17(ii)	521
21.2.4.2 Copyright	521
21.2.4.3 Trademark	522
21.2.4.4 Patent	522
21.2.4.5 Design	522
21.2.4.6 Possible Classification of Software	523
21.2.4.7 Permanent Transfer of Intellectual Property Rights	523
21.2.5 Lease	523
21.2.5.1 Clarification on Grant of Right for Mineral Exploration and Mining	526
21.3 Compensation Cess Rate	526
21.4 Exemptions	526
21.4.1 Hire or Renting of Vehicles	529
21.4.2 Exemption to Royalties Payment to be made Outside India	529
21.4.3 Difference between instalment sales, conditional sale,outright sales and hire purchase	529
21.4.4 Lease	530
21.4.5 Hiring	530
21.4.6 Transfer of right to use	530
21.4.7 Judgments	531
21.5 Reverse charge	532
21.5.1 Copyright	534
21.6 Clarification on GST Rate Applicable on Imported Equipment	534
22. Renting of Immovable Properties	535
22.1 Whether service or goods?	535
22.2 What is renting in relation to immovable property?	536
22.3 GST Rate	536
22.4 Exemptions	536
22.4.1 Residence and Dwelling (S.No. 13)	540
22.4.1.1 Exemption to residential dwelling	541
22.4.2 Precincts and Religious ceremony (S.No. 14)	541
22.4.3 Religious place	542
22.4.4 Exemption to Upfront Premium Payable in Instalment	542
22.5 Place of Supply of Services (When both supplier and recipient are located in India)	543
22.6 Place of Supply of Services (When either supplier or recipient is located outside India)	543
22.7 Reverse Charge	544
22.7.1 Renting Services Provided by Government etc. to a Registered Person	544
22.7.2 Renting of Residential Dwelling to Registered Person	544
22.7.2.1 Meaning of Residential Dwelling	545
22.8 Judgments	545
23. Lottery, Betting and Gambling	547
23.1 GST Rate on Services	547
23.2 GST Rate on Goods	548
23.2.1 Judgments	549
23.3 Value of Lottery	549
23.4 Valuation of Betting, Gambling and Horse Racing	550
23.4.1 Clarification issued for Betting and Gambling	550
23.5 Exemptions	551
23.6 Reverse Charge	551
23.6.1 Lottery distributor or selling agent	552
24. education and sports	553
24.1 GST Rate	553
24.1.1 GST Rate on Catering in Educational Institution	554
24.2 Exemptions	554
24.2.1 Educational Institution (S.No. 69)	559
24.2.1.1 Pre-School	561
24.2.1.2 Higher Secondary School or equivalent	562
24.2.1.3 Forming part of curriculum	562
24.2.1.4 Maritime Training Institutions	562
24.2.1.5 Judgments	562
24.2.2 Approved vocational courses	563
24.2.3 Recognised Sports Body	563
24.3 Clarification as to Catering Services Provided by Educational Institution	563
24.3.1 Applicability of GST on Supply of Food in Anganwadis and Schools	564
24.4 Clarification on accommodation services provided to students by a Trust	564
24.5 Taxability of Programmes Run by IIMs	564
24.6 Applicability of GST on Services Provided by Central and State Boards such as NBE	565
24.6.1 GST Exemption on Testing Services Provided by Certain Institutes	565
24.7 Applicability of GST on entrance fee or issue of eligibility certificate or migration certificates by educational institutions	566
24.8 Place of Supply	566
24.9 CBIC clarification on Education	567
24.9.1 Composite and Mixed Supply insofar as Education is concerned	567
25. Financial Institutions, Insurance, Pension, Etc.	569
25.1 Services by Foreman of Chit Fund	570
25.1.1 Meaning of not taking input tax credit on goods or services	570
25.1.2 Chit	570
25.2 Transfer of Right to Use Goods	571
25.2.1 Meaning of not taking input tax credit on goods or services	573
25.2.2 Scheduled Air Transport Services for Leasing of Aircraft[Para 15(iv)]	573
25.2.3 Scheduled Air Cargo Services for Leasing of Aircraft[Para 15(iv)]	573
25.2.4 Aircraft	573
25.2.5 Meaning of not taking input tax credit on goods or services	573
25.2.6 Goods Carriage	574
25.3 Lease of Goods	574
25.3.1 Meaning of not taking input tax credit on goods or services	576
25.4 Exemptions	576
25.4.1 Authorised Dealer of Foreign Exchange	584
25.4.2 Banking Company	585
25.4.3 Business Facilitator or Business Correspondent	585
25.4.4 Insurance Business	585
25.4.5 Interest	586
25.4.6 Rural Area	586
25.5 Reverse Charge on Services	586
25.5.1 Services Provided by Business Facilitator (BF) or business Correspondent (BC)	588
25.6 Reverse Charge on Supply of Goods	588
25.7 Valuation of Foreign Currency (Valuation Rules)	589
25.7.1 Valuation of Life Insurance Services (Valuation Rules)	589
25.8 Place of Supply of Banking or other financial or stock broking Services (Both supplier and recipient are located in India)	590
25.8.1 Place of Supply of Insurance Services (Both supplier and recipient are located in India)	590
25.9 Place of Supply of Service supplied by Banking Co./FI/NBFC(When either supplier or recipient is located outside India)Section 13(8)(a) of IGST Act	590
25.10 Applicability of GST on Additional/Penal Interest on Late Payment of EMIs	590
25.11 Taxability of no claim bonus by Insurance companies	591
25.12 Judgments	592
26. Tour Operator Services	594
26.1 Tour Operator	594
26.2 GST Rate	595
26.2.1 Meaning of not taking input tax credit on goods or services	596
26.3 Exemptions	597
26.4 Valuation of Air Travel Agent Services (Valuation Rules)	599
26.5 Judgments	600
27. Event, Brand Ambassador, Artist etc., Services	601
27.1 GST Rate	601
27.1.1 Admission to Events, films, etc. Related	601
27.1.2 Clarification issued for Events, etc.	605
27.1.3 Clarification on GST rate on admission to place having casino, etc., and otherwise	606
27.2 Exemptions	606
27.2.1 GST on payment of honorarium to guest anchors	609
27.3 Place of Supply for Admission to Events (Both supplier and recipient are located in India)â€”Section 12(6) of IGST Act	609
27.3.1 Place of Supply of organisation of Events (Both supplier and recipient are located in India)â€”Section 12(7) of IGST Act	609
27.3.1.1 Determination of Place of Supply in case of Event, etc. in Multiple States [Section 12(7) of IGST Act]	610
27.4 Place of Supply of organisation of or admission to Events(Either supplier or recipient are located in India)â€”Section 13(5)of IGST Act	610
27.4.1 Determination of Place of Supply in case of Event, etc. in Multiple States (Section 13(7) of IGST Act)	610
28. Restaurant, hotel and Catering Services	612
28.1 Restaurant Servicesâ€”Entry 6(b) of Schedule I of CGST Act	612
28.2 Composition Levy	613
28.3 Place of Supplyâ€”Section 12 of IGST Act	613
28.4 Place of Supplyâ€”Section 13 of IGST Act	613
28.4.1 Hotel Accommodation services to SEZ are always inter-State	613
28.5 GST Rates for Restaurant Services	614
28.5.1 Restaurant Related Services	614
28.5.1.1 GST Rate on catering in Indian railways	616
28.5.1.2 GST Rate on Catering in Educational Institution	616
28.5.2 Accommodation Services in Hotels, etc.	617
28.5.2.1 Declared Tariff	617
28.5.2.2 Clarification in respect of accommodation in Hotels, etc.	619
28.5.2.3 Clarification on accommodation services provided by Air Force mess to its personnel	621
28.5.3 GST Rates on Outdoor Catering	622
28.5.4 GST Rates on Food etc, supplied by IRCTC in Trains or at Platforms	626
28.5.5 Clarification on GST Rate on Takeaway Services and Door Delivery Services	627
28.5.6 Clarification on GST Rate on Ice Cream supply by Ice Cream Parlors	627
28.5.6.1 GST rate on supply of ice-cream by ice-cream parlours	627
28.6 Exemptions	627
28.7 Reverse Charge on Electronic Commerce Operator for specified services	628
28.7.1 Clarifications in relation to Restaurant services tax to be paid by E Commerce Judgments	629
29. Works Contract	633
29.1 Distinction between Contract for Works or Services and Contract for Sales of Goods	633
29.2 Works Contractâ€”Section 2(119) of CGST Act	634
29.2.1 Some Definitions	635
29.3 Works Contract: Whether Goods or Service? Schedule II of CGST Act	637
29.4 Input Creditâ€”Section 17(5) of CGST Act	638
29.5 Place of Supply of Works Contract Serviceâ€”Section 12 of IGST Act	638
29.6 Place of Supply of Works Contract Serviceâ€”Section 13 of IGST Act	639
29.7 GST Rate on Works Contract Services	639
29.7.1.1 Meaning of not taking input tax credit on goods or services	652
29.7.1.2 Value of Land and Total Amount	653
29.7.1.3 Government Authority Para 4(ix)	654
29.7.1.4 Government Entity Para 4(x)	654
29.7.2 Applicable GST Rate on construction of Ropeway	654
29.8 Exemption	654
29.8.1 Original Works	655
29.9 Works Services by Contractor to Government and Time of Supply	657
29.10 Valuation for Construction of Renewable Energy Projects	657
29.11 Judgments	658
30. online information Database Access or Retrieval Services	660
30.1 What is online information and database access or retrieval services?	660
30.2 What will not constitute online information and database access and retrieval services?	660
30.3 Compulsory Registrationâ€”Section 24 of CGST Act	661
30.4 Place of Supply of Services (Either Supplier or Recipient located outside India)	662
30.5 Place of Supply of Services (Both supplier and recipient located in India)â€”Section 12 of IGST	664
30.6 Exemptions	664
30.7 Reverse Charge	666
30.8 Service Tax Clarification	666
30.9 Some Important Clarifications	666
30.9.1 Examples of what could be or could not be OIDAR services	666
30.9.2 Indicative List of OIDAR Service	667
30.9.2.1 Website supply, web-hosting, distance maintenance of programmes and equipment:	667
30.9.2.2 Supply of software and updating thereof:	667
30.9.2.3 Supply of images, text and information and making available of databases:	668
30.9.2.4 Supply of music, films and games, including games of chance and gambling games, and of political, cultural, artistic, sporting, scientific and entertainment broadcasts and events:	668
30.9.2.5 Supply of Distance Teaching:	668
31 Electronic Commerce Operator and TCS	669
31.1 Electronic Commerce Operator	669
31.2 Liability of ECS to pay GST	671
31.2.1 Clarifications in relation to Restaurant services tax to be paid by E Commerce	674
31.3 Tax Collected at Source (TCS)â€”Section 52 of CGST Act	677
31.4 Registration Requirements â€“ Section 24 of CGST Act	681
31.5 Penal Provisions Section 122 (1A)	682
31.6 Judgements	682
32. Supply of Second hand Goods and Vehicles	683
32.1 Supply of Old Goods by Individual is not Subject to GST	683
32.2 Margin Scheme - Sale of Second Hand Goodsâ€”Rule 32(5)	683
32.3 Exemption from Reverse Charge on Purchase of Second Hand Goods	684
32.4 Exemption from Compensation Cess to dealers operating under Margin Scheme	684
32.5 GST Rate on Supply of Second Hand Vehicles	685
32.6 Concessional Rate on Supply of Specific Second Hand Vehicles	686
32.7 Reverse Charge	687
32.7.1 Supply of Used, Confiscated, Waste and Scrap by Government etc. to Registered Person	687
33. Registration	688
33.1 Registrationâ€”Section 22 of CGST Act	688
33.1.1 Credit Transfer on Obtaining Separate Registration for Multiple Places of Business within State (Rule 41A of CGST Rules w.e.f. 01.02.2019)	694
33.1.2 Bank account to be linked with PAN of the registered person	694
33.2 Person not Requiring Registration â€” Section 23 of CGST Act	695
33.2.1 Movement of Goods on Approval Basis	700
33.2.2 Clarification in respect of non-registration by small service provider providing services through E-Commerce	700
33.3 Cases requiring Compulsory Registrationâ€”Section 24 of CGST Act	700
33.3.1 Section 24 is a Mandatory Provision	701
33.4 Special provisions relating to casual taxable and non-resident taxable person â€” Section 27 of CGST Act	702
33.4.1 Special Provision as to Enrolment of Warehouse Operator and Transporters (Rule 58)	702
33.4.2 Special procedure for registration, etc. of transporter godown for storing goods	703
33.4.3 Special Registration Procedure for Corporates undergoing Resolution Procedure	704
33.5 Initiation of AADHAAR Based Authentications For New and Existing Registrations (Section 22 of CGST Act, 2017)	705
34.5.1 Deemed Approval of Registration Application	707
33.5.2 AADHAAR Validation For Registered Taxable Persons(section 25(6A) of CGST Act, 2017)	707
33.5.2.1 Mandatory AADHAAR authentication of already registered persons in specified cases	708
33.5.2.2 Exceptions to AADHAAR authentication of already registered persons (w.e.f. 24.09.2021)	708
33.6 Amendment to and Cancellation or Suspension and Revocation of cancellation of registration â€” Sections 28, 29 & 30 of CGST Act	709
33.6.1 Procedure for Extension of time for filing revocation application	712
33.6.2 Relaxation in Revocation of Cancelled Registrations	713
33.6.2.1 Who can file the revocation application under Amnesty Scheme?	714
33.6.2.2 Further extensions by Commissioner for revocation application relating to Amnesty Scheme	714
33.6.2.3 Further relaxation for revocation of registration application in specific cases	715
33.7 Forms under Registration (Registration Rules)	716
33.8 Process Flow Under Registration (Rules)	718
33.8.1 Migration of Person Registered Under the Existing Law	718
33.8.1.1 Surrender of Registration by Migrated Taxpayer	719
33.8.1.2 Special Procedure of Registration for Persons Who Received only Provisional Identification Number (PID) till 31.12.2017	719
33.8.2 Registration Procedure in General	719
33.8.2.1 Mandatory Furnishing of Bank Account(Rule 10A of CGST Rules)	721
33.8.2.2 Mandatory Verfication Through AADHAAR	721
33.8.3 Casual Taxable Person	722
33.8.4 Non-resident Taxable Person	723
33.8.4.1 Difference between Casual Taxable Person and Non-resident Taxable Person	723
33.8.4.2 Validity Period of the Registration Certificate Issued to a Casual Taxable Person and Non-Resident Taxable person	724
33.8.5 Person Liable to Deduct Tax at Source	724
33.8.6 Person supplying Online Information & Data Base Access or Retrieval service from a place outside India to a non-taxable online recipient	725
33.8.7 Suo Moto Registration by Proper Officer	725
33.8.8 Unique Identification Number to Certain Special Entities	725
33.8.9 Amendment to Registration	726
33.8.9.1 Effective Date of Amendment to Registration(Rule 19)	727
33.8.10 Cancellation of Registration (On Application Made by Registered Person)	727
33.8.11 Cancellation of Registration by Proper Officer Suo Moto	728
33.8.12 Revocation of Cancellation of Registration	729
33.8.13 Goods & Services Tax Practitioner	730
33.8.13.1 Flow Chart Depicting Enrolment of GST Practitioner	732
33.8.14 Miscellaneous	733
33.9 Modes of Authentication (Rule 26)	733
34. Payment of Tax, Interest, TDS & TCS	736
34.1 Payment of Tax, Interest, etc. â€”Section 49 of CGST Act	736
34.1.1 Utilisation of input credit	738
34.1.2 Inter-head Transfer of Tax, Interest, Penalty, Fee or Any Other Amount [Rule 67 (13) of CGST Rules]	738
34.1.3 Restriction on ITC Utilisation on specified Taxpayers for Tax Payment (Rule 86B)	739
34.2 Interest â€”Section 50	740
34.2.1 Interest Payable only on utilization of wrongly availed ITC : Section 50(3)	740
34.2.2 Lower Interest in COVID 19(I) Conditions	742
34.2.2.1 Lower Interest in COVID 19 (II) Conditions5	745
34.2.3 Non-payment of Interest on Liability Arising Due to Late Filing of Returns (Section 50)	746
34.2.4 Interest Applicable Only on Net Cash Liability	747
34.2.4.1 Interest Applicable on Net Cash Liability Retrospectively from 01.07.2017	747
34.2.5 Prescribing procedure for calculation of interest under Section 50	747
34.3 Tax Deduction at Source (TDS)â€”Section 51 of CGST Act	750
34.3.1 CGST Exemption on Supplies to TDS Deductor in Specified Circumstances	752
34.3.2 Date from which the TDS Provisions are Effective?	752
34.3.3 Exemption From TDS provisions	752
34.3.4 Judgments	753
34.4 Tax Collected at Source (TCS)â€”Section 52 of CGST Act	754
34.4.1 Date from which TCS Provisions are Effective?	756
34.4.2 Clarification on TCS Collection by Tea Board	756
34.5.1 GST Flier	756
34.6 Tax Payment Procedures (Payment of Tax Rules20)	758
34.6.1 Electronic Tax Liability Register	758
34.6.1.1 CBIC Flyer on Electronic Liability Register	759
34.6.2 Electronic Credit Ledger	760
34.6.2.1 CBIC Flyer on Credit Ledger	760
34.6.3 Electronic cash Ledger	761
34.6.3.1 CBIC Flyer on Cash Ledger	762
34.6.3.2 Transfer of balance in Electronic Cash Ledger between GSTINs under same PAN	763
34.7 Utilisation of amount in cash ledger and credit ledger	763
34.8 Form Index for Payment of Tax	764
35. Tax Invoice, Credit Notes & Debit Notes	765
35.1 Issue of Tax invoiceâ€”Section 31 of CGST Ac	765
35.1.1 Types of Invoices	765
35.1.2 Timelines for issuance of Invoices	766
35.1.3 Tax Invoiceâ€”General Requirement	768
35.1.4 Revised Invoice	770
35.1.5 Bill of Supply and Bill of Supply-Cum-Invoice	771
35.1.6 Receipt Voucher	772
35.1.7 Refund Voucher	773
35.1.8 Payment Voucher (Reverse Charge)	773
35.1.9 Input Service Distributor	774
35.1.9.1 Invoice to be issued by Taxpayer to its ISD	774
35.1.10 Banks/NBFC	775
35.1.11 Goods Transport and Passenger Transport	776
35.1.12 Completely/Semi Knocked Down or in Batches or Lots	776
35.1.13 Specific Cases for Transportation of Goods without issue of Invoice	776
35.1.14 Movement of Goods on Approval Basis	777
35.1.15 Creation of Challan in Job Work	778
35.2 E-Invoice	778
35.2.2 Format of E-Invoice	778
35.2.3 Objective of introduction of E-Invoices	778
35.2.4 Interfaces in Generation of E-Invoice	779
35.2.5 Portals for Generation of E-Invoice (IRN)	779
35.2.6 Documents for Which E Invoice has to be generated	779
35.2.6.1 Obligation of Suppliers	779
35.2.7 Format of IRN	779
35.2.8 Mandatory Fields in an E-Invoice	780
35.2.9 Whether QR Code is mandatory to be included in E-invoice?	780
35.2.10 Notified persons to issue E-Invoice	780
35.2.11 E-Invoice Not Applicable For Following Persons	781
35.2.11.1 Declaration on Tax- Invoice in specified cases	781
35.2.11.2 Whether exemption from E-invoice is service specific?	782
35.2.12 E-invoice not to be issued in Duplicate or Triplicate	782
35.2.13 E-invoice not to be issued for below supplies	782
35.3 Mandatory mention of Dynamic QR Code on Specified B2C Tax Invoices	782
35.3.1 Clarifications Issued For Dynamic Quick Response Code	783
35.3.2 Dynamic Quick Response (QR) Code for supplies not qualifying as exports	785
35.4 Consolidated Invoice or No Invoice	786
35.5 Bar on Unauthorised Collection of Taxâ€”Section 32 of CGST Act	787
35.6 Credit Note & Debit Noteâ€”Section 32 of CGST Act	787
35.7 Documents to accompany during Transportation of Goods(Rule 55A)	788
35.8 Procedure for Return of Material	788
35.9 CBIC Flyer on Tax Invoice	790
35.9.1 Importance of tax invoice under GST	790
35.9.2 Revised Invoice	790
35.9.3 Issue of invoice in case, where supply of service ceases under a contract before completion of supply	791
35.9.4 Sale on approval basis	791
35.9.5 Amount of tax to be indicated in invoice	791
35.10 Some important Clarifications	791
36. Returns	793
36 Easing out of Compliance Burden : 27th GST Council Meeting	793
36.1 New Return Filing System	793
36.2 Furnishing of Returns	794
36.3 Contents of GSTR-1 Return (Rule 59)	795
36.3.1 Restriction on Filing of GSTR-1 (Rule 59)	795
36.3.2 Rectification of omissions or errors in GSTR-1 (Section 37 of CGST Act, 2017)	796
36.3.3 Outer Limit for Filing GSTR-1	796
36.4 Contents of Invoice Furnishing Facility (IFF) (Rule 59)	796
36.5 Inward Supplies Details : Section 38 and Rule 60	796
36.5.1 Difference between GSTR-2A and GSTR-2B	797
36.5.2 GSTR-2A and GSTR-3B mismatch for FY 2017-18 and 2018-19	798
36.6 Quarterly Return Monthly Payment Scheme â€“ Proviso to Section 39(1) and Rules 59,60 and 61	800
36.6.1 Eligibility for the Scheme	800
36.6.2 QRMP Scheme is GSTIN wise	800
36.6.3 How to opt for OR opt out of the Scheme	800
36.6.3.1 Default For First Quarter of QRMP	800
36.6.3.2 Opting for QRMP	800
36.6.3.3 Opting out of QRMP	801
36.6.4 Filing of outward Supplies Return by QRMP	801
36.6.4.1 Invoice Furnishing Facility (IFF)	801
36.6.5 Monthly Tax Payment by QRMP	801
36.6.5.1 Fixed Sum Method	802
36.6.5.1.1 Interest liability under Fixed Sum Method	803
36.6.5.1.2 Late Fee for delay in payment of deposit	803
36.6.5.2 Self-Assessment Method	803
36.6.5.2.1 Interest liability under self-assessment Method	803
36.6.5.2.2 Late Fee for delay in payment of deposit	803
36.6.6 Quarterly GSTR-3B by QRMP	803
36.7 NIL GSTR-3B Filing Through SMS	804
36.8 Specifying return in Form GSTR-3B as return to be filed under Section 39	804
36.8.1 How to take care of differences between GSTR-3B and GSTR-1?	804
36.8.2 System based reconciliation between GSTR-3B and GSTR-1/ GSTR-2	806
36.8.3 Mismatches in GSTR-3B and GSTR-1 and consequential tax payments	807
36.8.3.1 Intimation of difference of liability in GSTR-1 and GSTR-3B (Rule 88C)	807
36.8.4 Rectification of any omission or Error in GSTR-3B:Section 39(9)	808
36.8.5 Restriction in filing of GSTR-3B	808
36.8.6 Outer Limit for Filing GSTR-3B	808
36.8.7 Amendment to Return in Form GSTR-3B	809
36.8.7.1 Clarifications in relation to amended GSTR-3B	809
36.9 First Returnâ€”Section 40	810
36.10 Annual Returnâ€”Section 44	810
36.10.1 Annual Return from 01.08.2021 vide Finance Act, 2021	811
36.10.2 Optional Annual return (GSTR-9) and Reconciliation Statement (GSTR-9C) For Eligible Persons
36.10.3 Non-Filing of GSTR-9C by Foreign Airline Companies	812
36.10.4 Abolition of CA Certification of Form GSTR-9C vide Finance Act, 2021	813
36.10.5 Outer Limit for Filing GSTR-9	813
36.11 Final Returnâ€”Section 45	813
36.12 Fee for Late Filingâ€”Section 47	813
36.12.1 Reduced Late Filing Fee (w.e.f. 01.06.2021)	814
36.12.1.1 Reduced fines for late filings (Till 31.05.2021)	816
36.12.2 General Amnesty For Late Filing of Returns For Past Periods	816
36.12.2.1 Late filing of GSTR-4 return for past periods	817
36.12.2.2 Reduced Late Filing Fee for Annual Return for Past periods and from FY 2022-23	817
36.12.2.3 Reduced Late Filing Fee for Final Return in Form GSTR-10	817
36.13 Return Rules (List of Forms)	818
36.14 Online Information and Database Access or Retrieval Services(OIDAR)	818
36.15 Form and Manner of Submission of Return by Non-resident Taxable Person (Monthly Returns)	819
36.16 Form and Manner of Submission of Return by ISD (Monthly)	819
36.17 Form and Manner of Submission of Return by a Person Required to Deduct Tax at Source (Monthly)	819
36.18 Other Returns	819
36.18.1 Rectification of any omission or Error in GSTR-8:Section 52(6)	819
36.18.2 Outer Limit for Filing GSTR-8	820
36.19 Person Having Unique Identification Number	820
36.19.1 Returns to be filed by UN Entities	820
36.20 Judgments	820
37. Import, Export and Supplies To Sez	822
37.1 Export and Import of Goods and Services	822
37.1.1 Export of Services Through a Third Party	825
37.1.2 Difference Between Exempted Supplies and Zero Rated Supplies	825
37.1.3 Supply of Goods by Duty Free Shops	826
37.1.4 Taxability of short-term accommodation services to SEZ developer or unit	826
37.1.5 Export condition of â€œEstablishments of a Distinct Personâ€	827
37.2 Duties on Import of Goods and Services	828
37.3 Import of Goods	828
37.3.1 Duty Calculation	828
37.3.2 Change in the Import Procedures	830
37.3.2.1 Import Export Code (IEC)	830
37.3.2.2 Bill of Entry Regulations and Format	830
37.3.2.3 Import under Export Promotion Schemes and Duty Payment through EXIM Scrips	830
37.3.2.4 IGST on Import of Goods by EOUs and SEZ	830
37.3.2.5 IGST on Import of Services by SEZ	830
37.3.2.6 Project Imports	831
37.3.2.7 Baggage	831
37.3.2.8 Input Tax Credit	831
37.3.3 Supply on High Seas basis and Sale of Warehoused Goods, before Clearance, are not Supply (Schedule III to CGST Act)	831
37.4 Export of Goods or Services	832
37.4.1 Drawback	832
37.4.2 Refund under GST	832
37.4.2.1 Option 1: Refund on Exports Under Bond or Letter of Undertaking (LUT) (Refund Rules)	833
37.4.2.1.1 Online Filing of LUT for FY 2018-19 and onwards	836
37.4.2.1.2 Requirement of filing of LUT/Bond in case of export of exempted supplies	837
37.4.2.2 Option 2: Refund of IGST Paid on Export of Goods(Refund Rules)	837
37.5 Export of Services	839
37.5.1 Clarifications on Exports to Nepal and Bhutan	839
37.6 Supplies to SEZ Unit or Developer	840
37.6.1 Exemption on Import of Services by SEZ Unit or Developer	840
37.6.2 Exemption on Import of Goods by SEZ Unit or Developer	840
37.7 Concessional Rate to Trader Exporters for Procurement of Goods	840
37.8 CBIC Clarification on Certain Import Transactions	843
37.8.1 Import as Baggage	843
37.8.2 Import of Goods by 100% EOUâ€™s and SEZs	843
37.8.3 Input tax Credit of Integrated Tax	843
37.8.4 Import of Services	844
38. Refunds	845
38.1 Kinds of Refunds and General Pointsâ€”Section 54 of CGST Act	845
38.1.1 Relevant Date	846
38.1.1.1 Extension of Time Limit for Filing Refund Claim	847
38.1.2 Kinds of Refund Claims that can be Filed by Form RFD-01	847
38.1.3 Jurisdiction for Filing the Refund Claim	848
38.1.4 Steps in Refund Claim Processing	848
38.1.4.1 Facility of Withdrawal of Refund Claim	849
38.1.5 Pre-requisites, Periodicity and Procedure of Filing the Refund Claims	849
38.1.5.1 Mandatory AADHAAR authentication of already registered persons seeking refunds	851
38.1.6 Drawbacks and Refund Claims	851
38.1.7 Special Dispensation of Zero-Rated Supplies of Services with Payment of GST	852
38.1.8 Whether realization proof is required for refund of export of goods?	852
38.1.9 Refund Filing Process where inadvertently NIL Refund has Already Been Filed	853
38.1.10 Refund claim by ISD and Non-Resident Taxable Person	853
38.1.11 Refund of Compensation Cess when final product is not leviable to Cess	853
38.2 Refund of Unutilised Input Tax Creditâ€”Section 54(3) of CGST Act	854
38.2.1 Supplies of Services on which Refund is not Allowed	855
38.2.2 Eligibility of Refund of accumulated ITC in case of Export Goods attracting Nil rate of Export Duty	855
38.3 Inverted Duty Refunds	855
38.3.1 Supplies of Goods on which Refund is not Allowed(Inverted Duty)	855
38.3.2 How to reverse the input credit for intervening period?	859
38.3.3 Filing of refund claim by persons who have not reversed the lapsed credit till prescribed date	859
38.3.4 Refund of input credit allowed on export of specified items	859
38.3.5 Restriction on granting refund of CESS due to inverted duty structure	860
38.3.6 Clarifications Relating to Refund Arising on Account of Inverted Duty	860
38.3.7 Calculation of Refund Amount For Inverted Duty Structure	860
38.3.8 Reduction of GST Rate on a goods will not result in Refund on Account of Inverted Duty Structure	862
38.3.8.1 Inverted Tax Refund owing to concessional lower rate	862
38.4 Deemed Exports	862
38.4.1 Refund of Deemed Exports	864
38.4.2 Procedure to be followed by Recipient of Deemed Export Supplies	865
38.4.3 Debit entry to be passed in case of Refund filed by recipients of Deemed Exports	865
38.5 Time of Filing the Refund Claim in Specific Instancesâ€”Section 54(3) of CGST Act	866
38.6 Refund Restrictions	867
38.6.1 Pursuant to Deemed Exports Supplies and Supplies at Reduced Rate for Trader Exporter [Rule 89(4A) and (4B) of CGST Rules]	867
38.6.2 No Refund of IGST Paid on Export of Supplies Pursuant to Deemed Exports Supplies and Supplies at Reduced Rate for Trader Exporter [Rule 96(10) of CGST Rules]	868
38.6.3 Refund Restrictions on export of supplies procured at concessional GST rate or exempt	870
38.7 Refund of unutilised Credit of concessional rate of 0.05%/0.1%	870
38.8 Other Clarification	871
38.8.1 One to One Correlation not Required	871
38.8.2 Input Invoice dated For Previous Period is Valid For Claiming Refund of Subsequent Relevant Period	871
38.8.3 Refund Applications Generated on GSTN Portal But Documents Not Received	872
38.8.4 ITC Availed and Reversed	872
38.8.5 Clarifications on Refund of Compensation Cess	872
38.9 Disbursal of Entire Refund Claim Amounts [Section 54(8A) of CGST Act] by Jurisdictional Authority	873
38.10 Amount of Refund Claim of ITC in Relation to Zero Rated Supply	874
38.10.1 Capping Value of Export Goods for Refund Purposes	876
38.10.2 NET ITC restricted up to the input invoices reflecting in GSTR-2A	876
38.10.2.1 Incorporation of HSN codes against the input supplies while providing NET ITC Details in Annexure B	877
38.10.3 Adjusted Total Turnover	877
38.10.4 Calculation of Refund Amount	878
38.10.5 Bifurcation of Refund Claim amount of Respective Taxes for Both Zero Rated and inverted Duty Refund	878
38.11 Endorsement for SEZ Supplies	880
38.12 Documents to be filed	882
38.12.1 Refund to Supplier of IGST paid on Supplies to SEZ Unit or Developer	891
38.13 Acknowledgement and Refund order	892
38.14 Provisional Refund	892
38.15 Deficiency Memo	893
38.16 Recredit in Credit Ledgers	893
38.16.1 Recredit in case of Type 1 Rejections	894
38.16.2 Recredit in case of Type 2 Rejections	894
38.16.3 Procedure for recredit pursuant to excess or erroneous refund sanctioned	895
38.17 Bank Account and Disbursal of Refund Claim	895
38.17.1 Payment of refund in credit	896
38.17.2 Refund Payment in cash and credit in certain cases	896
38.17.3 Refund credit in the bank account linked with PAN of the refund claimant	897
38.18 Unjust Enrichmentâ€”Sections 54(8), 57 and 58	897
38.18.1 Consumer Welfare Fund	899
38.19 Withholding Refund or Adjustment of Refundâ€”Section 54(10)	901
38.19.1 Adjustment of Refund (Rule 92)	902
38.19.2 Withholding and Release of Withheld Refund Claim	903
38.19.3 Automatic intimation / transfer of withheld refund cases of IGST paid on export of goods	903
38.20 Interest on Delayed Refundsâ€”Section 56	904
38.21 Refunds filed by UNO, etc.â€”Section 55	904
38.21.1 Conditions for allowing the refunds to UNO	905
38.21.1.1 Refund Claim Processing for application by UN Entities	907
38.21.2 Exemption and Refund to Canteen Store Departments(CSD) (Section 55 of CGST Act)	909
38.22 Refund Under â€˜Seva Bhoj Yojnaâ€™ of the Ministry of Culture	911
38.23 Refund of Tax Paid on Inward supplies by Duty Free Shops,Etc. at International Airport for Goods Supplied to Outgoing International Tourist without Payment of Tax
38.23.1 Procedure for Filing such a Refund	912
38.24 Refund of TDS/TCS Deposited in Excess	915
38.25 Refund claim Pursuant to Order by Appellate Authority	915
38.26 Refund Filing of incorrect payment of Tax (w.e.f. 24.09.2021)	915
38.27 Refund of Excess Balance in Cash ledger	916
38.28 Special procedure prescribed for seeking refund of ITC on export of electricity	917
38.29 Recredit in case of wrongly sanctioned refund	917
38.30 Instructions for Scrutiny of Refund Claims	918
38.30.1 Uploading of detailed order along with RFD-06	918
38.30.2 Contents of refund order for all refund claims	918
38.30.3 Contents of refund order pertaining to refund of accumulated ITC on zero rated supplies or inverted tax supplies and refund of IGST paid on export of zero rated supplies	918
38.30.3.1 Details for refund of accumulated credit for zero rated supplies and inverted rated structure	918
38.30.3.2 Additional details for refund of accumulated credit on account of zero-rated supplies	919
38.30.3.3 Additional details for refund of accumulated credit for inverted rated structure	919
38.30.3.4 Additional details for refund relating to IGST paid on zero rated supplies	919
38.30.3.5 Additional details for refund relating to zero rated supplies to SEZ	919
38.30.4 Contents of refund order pertaining to refund of accumulated ITC on zero rated supplies or inverted tax supplies and refund of IGST paid on export of zero rated supplies	920
38.30.5 Contents of refund order pertaining to refund of excess balance in cash ledger	920
38.30.6 Contents of refund order pertaining to refund under â€œAny Otherâ€ category	920
38.30.7 Post audit	920
38.30.8 Review of Refund orders by Commissioner	920
38.31 Exclusion of COVID-19 related period from adjudication and refund filing	921
38.32 Procedure for refund of unutilised ITC on account of export of electricity	921
38.33 Filing of refund by unregistered persons	923
38.34 Refund Forms under Refund Rules	926
38.35 Judgments	926
39. Accounts, Audit and Inspection	931
39.1 Account and Recordsâ€”Section 35 of CGST Act	931
39.1.1 Records Maintenance by Registered Person (Rules)	932
39.1.2 Records Maintenance by Agent (Rules)	933
39.1.2.1 Records Maintenance by Auctioneer	933
39.1.3 Records Maintenance by Manufacturer (Rules)	934
39.1.4 Records Maintenance by Service Providers (Rules)	934
39.1.5 Records Maintenance by Works Contractor (Rules)	934
39.1.6 Requirement as to Electronic Records (Rules)	935
39.1.7 Requirement as to Warehouse Operator and Transporters (Rules)	935
39.2 Access to Business Premisesâ€”Section 71 of CGST Act	936
39.3 Auditâ€”Section 65 of CGST Act	937
39.3.1 Audits under Service Tax	937
39.3.2 Definition of Audit Under CGST Act	938
39.3.3 Types of Auditsâ€”Sections 65 & 66 of CGST Act	938
39.3.4 GST Audit Manual	940
39.3.4.1 Selection of Assessees for Audit	940
39.3.4.2 Apprising the registered person of irregularities noticed and ascertaining his view point	941
39.3.4.3 Preparation of Draft Audit Report and submission to senior officers	941
39.3.4.4 Final Audit Report	941
39.3.4.5 Follow up action and issue of show cause notice	941
39.4 Special Audit	942
39.5 Issues arising out of Audits	942
39.6 Audit Forms (Rules)	943
39.7 Inspection, Search and Seizureâ€”Section 67 of CGST Act	943
39.7.1 Process Flow of inspection, search or seizure	945
39.7.2 Amount of Bond and Security for Release of Goods(Inspection, Search and Seizure Rules)	945
39.7.3 Procedure in Respect of Seized Hazardous or Perishable Goods (Inspection, Search and Seizure Rules)	946
39.7.4 Specification of Goods that can be disposed off as soon as possible after seizure	946
39.7.5 Procedure for Search Under Section 67	947
39.7.5.1 Pre-requisite for a valid search	947
39.7.5.2 Procedure to be followed during a search	947
39.7.5.3 Rights of person searched	948
39.8 Power to Arrestâ€”Section 69	948
39.9 Important Clarifications on Search, Seizure and Inspection	949
39.10 Forms Under Accounts, Audit and Inspection	958
40 Assignment of Functions to Various Officers	960
40.1 Functions Under GST as per Departmental Hierarchy	960
40.2 Monetary Limits to Issue SCNs	960
40.3 Issuance of SCNs by Audit Teams or DGST Intelligence	961
40.4 Rank wise Section wise Distribution of Work	961
40.5 Adjudication of SCNs issued by DGGSTI	965
40.6 Judgments	966
41. Assessments	967
41.1 Provisional Assessmentâ€”Section 60 of CGST Act	968
41.1.1 CBIC Flyer on Provisional Assessment	969
41.1.1.1 Procedure:	969
41.1.1.2 Finalization of provisional assessment:	970
41.1.1.3 Interest Liability:	970
41.1.1.4 Release of Security Consequent to Finalization:	970
41.2 Scrutiny of Returnsâ€”Section 61 of CGST Act	971
41.2.1 Procedure for Scrutiny of Return	971
41.2.2 Specified items to be scrutinised by POs	972
41.2.2.1 Outward Tax Liability Related	972
41.2.2.2 Input Tax Credit Related	972
41.2.2.3 General	973
41.3 Assessment of Unregistered Personsâ€”Section 63 of CGST Act	973
41.4 Summary Assessmentâ€”Section 64	973
41.5 Best Judgment Assessmentâ€”Section 62	974
41.5.1 Procedure for Assessment in case of Non-Filers of Returns	975
41.5.2 Best Judgment Assessment Amnesty for certain orders	975
41.6 Assessment Proceedings not to be Invalidâ€”Section 160	975
41.7 List of Forms (Audit and Assessment Rules)	976
41.7.1 Provisional Assessment:	976
41.7.2 Scrutiny Assessment	976
41.7.3 Best Judgment and Assessment of Unregistered Persons	976
41.7.4 Summary Assessment	977
42. Show Cause Notice, Demands and Recoveries	978
42.1 Some of the Essential Attributes of Show Cause Notice	978
42.2 Notice has to be served on the assessee (Section 169 of CGST Act)	979
42.3 What constitutes fraud, or wilful misstatement, or suppression of facts to evade tax ?	980
42.4 Furnishing a memo before issuance of SCN	983
42.4.1 Judgments	983
42.5 Issuance of SCN in case of no Fraud, etc. (Section 73)	984
42.5.1 Extension of timeline for passing order Section 73(10)	986
42.6 Issuance of SCN in case of Fraud, etc. (Section 74)	986
42.6.1 No need of issue of SCN for Seizure and Confiscation Procedures	988
42.7 General Provision as to Adjudication of SCN (Section 75)	988
42.7.1 Redetermination of demand pursuant to non-sustenance of allegation of fraud, etc.	989
42.7.2 Exclusion of COVID-19 related period from adjudication and refund filing	990
42.7.3 Judgments	991
42.8 Monetary Limits to Issue SCNs	992
42.8.1 Summary of Adjudication Order (Rule 142)	992
42.9 Adjudication of SCNs by Audit Teams or DGST Intelligence	993
42.9.1 Adjudication of SCNs issued by DGGSTI	993
42.10 Tax Collected but not paid (Section 76)	994
42.11 Opportunity of Being Heard to Such Person	996
42.11.1 Judgments on Principles of Natural Justice	996
42.12 Recovery Proceedingsâ€”Sections 78 & 79	996
42.12.1 Mode of Recoveries and Procedure (Demand Recoveries Rules)	998
42.12.1.1 Auction Process under Rule 144A of CGST Rules, 2017	1002
42.12.1.2 Judgements	1002
42.12.2 Mode of Recoveries of Central Excise, CENVAT Credit and Service Tax	1003
42.12.2.1 Type of Demand and its recovery	1003
42.12.2.2 Excise Duty and Services Tax payment of period prior to 01.07.2018	1004
42.13 Payment of Tax in Instalmentsâ€”Section 80	1004
42.13.1 Disallowance of Facility of Tax Payment in Instalments(Demand Recoveries Rules)	1005
42.14 GST to have first charge on Property (Section 82 of CGST Act)	1005
42.15 Provisional Attachment (Section 83 of CGST Act and Rule 159 of CGST Rules)	1005
42.15.1 Guidelines for Attachment of Property	1006
42.15.1.1 Circumstances when the property can be attached	1006
42.15.1.2 How would the Commissioner form an opinion?	1007
42.15.1.3 Cases fit for Provisional Attachment	1007
42.15.1.4 Procedure for Provisional Attachment	1008
42.15.1.5 Release of movable attached property	1008
42.15.1.6 Some important things to be taken care of	1009
42.15.1.7 Period of Attachment	1009
42.15.2 Judgments	1009
42.16 Recovery Procedures for Enhancement or Reduction of Government Dues (Section 84 of CGST Act)	1010
42.17 List of Forms under Demand and Recoveries	1012
43. Advance Ruling	1014
43.1 Application for Advance Ruling (AR)â€”Section 97 of CGST Act	1014
43.2 Procedure for AR and Questions under ARâ€”Section 98	1015
43.2.1 Procedure of Application to AAR (Advance Ruling Rules)	1016
43.2.2 Certification of AR (Rules)	1016
43.3 Manual Filing of Application for Advance Ruling (Rules)	1016
43.3.1 Application to Advance Ruling	1016
43.4 Appeal to AAAR and Procedureâ€”Sections 100 & 101	1017
43.4.1 Procedure of Application to AAAR (Rules)	1017
43.5 Manual Filing of Application for Advance Ruling (Rules)	1018
43.5.1 Application of appeal against Advance Ruling	1018
43.5.2 Certification of AAAR Rulings (Rules)	1019
43.5.3 Judgments	1019
43.6 Rectification and Applicability of ARâ€”Sections 102 & 103 of CGST Act	1019
43.7 Other important pointsâ€”Sections 104 & 105	1020
43.8 Appeal to National Appellate Authority (NAA) (Section 101B of CGST Act) (effective from date to be notified)	1020
43.8.1 Procedure of Application to NAA	1021
43.9 List of Advance Ruling Forms	1021
44. Appeals and Revision
44.1 Types of Available Avenues Post Adjudication	1022
44.2 Appeals to Appellate Authorityâ€”Section 107	1023
44.2.1 Judgments	1024
44.2.2 Procedure for Appeal to Appellate Authority by Assessee(Appeal and Revision Rules)	1026
44.2.3 Procedure for application to Appellate Authority by Authorities (Rules)	1027
44.2.4 Authority to whom Appeal will be filed?	1027
44.2.5 Additional Evidence before Appellate Authority (Rules)	1027
44.2.6 Withdrawal of Appeal (Rule 109C)	1028
44.2.7 Order of Appellate Authority (Rules)	1028
44.3 Revisionâ€”Section 108	1029
44.3.1 Circumstances when RA cannot reviseâ€”Section 108(2) of CGST Act	1029
44.3.2 Other RA Related Pointsâ€”Section 108(2) of CGST Act	1030
44.4 Appeal to Tribunalâ€”Section 109 of CGST Act	1030
44.4.1 Types of Tribunal and their Jurisdiction	1031
44.4.2 Constitution of Tribunal Benches	1031
44.4.3 Hearing by a Single Bench and Double bench	1031
44.4.3.1 Hearing by a Single Bench	1031
44.4.3.2 Hearing of Other Cases	1032
44.4.4 Procedure before the Tribunalâ€”Section 112 of CGST Act	1032
44.4.5 Authorised Representative before the Tribunalâ€”Section 116 of CGST Act	1034
44.4.6 Procedure for Appeal to Tribunal by Assessee (Rules)	1034
44.4.7 Procedure for application to Appellate Tribunal by Authorities (Rules)	1035
44.4.8 Additional Evidence before Tribunal (Rules)	1035
44.4.9 Order of Tribunal (Rules)	1036
44.4.10 Difference of Opinion Between Members (Section 109(9)	1037
44.5 Appeals to High Courtâ€”Section 117	1037
44.5.1 Substantial Question of Law	1038
44.6 Appeals to Supreme Court (Section 118)	1038
44.7 COVID-19 Related Time Extensions	1039
44.7.1 Supreme Court COVID Orders	1039
44.7.2 CBIC Clarification on COVID related Limitation Periods	1040
44.8 Demand Decided is payable even if appealed against(Section 119)	1041
44.9 Judgments	1041
44.8 List of Forms for Appeal and Revisions	1043
45. Penalties, Detention, Prosecution & Compounding	1044
45.1 General Discipline for Penaltyâ€”Section 126 of CGST Act	1044
45.2 Penalty under no fraudâ€”Section 122(2) of CGST Act	1044
45.3 Penalty under fraud etc.â€”Section 122(2) of CGST Act	1047
45.4 Penalty under Various Casesâ€”Section 122(1) of CGST Act	1049
45.4.1 Penalty Provisions in Specific Circumstances	1051
45.4.2 Clarification on demand and penalty in respect of fake invoices	1051
45.5 Power to Impose Penalty in Certain Cases (Section 127 of CGST Act, 2017)	1052
45.6 Waiver of Penalty (Section 128 of CGST Act, 2017)	1053
45.7 Offences by Companies (Section 137 of CGST Act, 2017)	1053
45.8 Detention, Seizure of Goods/Conveyanceâ€”Section 129 of CGST Act	1054
45.8.1 Owner of Goods	1055
45.8.2 Reduced Penalties on Minor Deficiency During Inspection	1055
45.8.3 Inspection of vehicle	1056
45.8.4 Procedure of inspection of Vehicle	1057
45.8.5 Procedure for Detention and Release of Vehicle	1057
45.8.6 Auction Process under Rule 144A of CGST Rules, 2017	1058
45.8.7 Judgments	1058
45.9 Confiscation of Goods/Conveyancesâ€”Section 130 of CGST Act	1061
45.9.1 Fine payable in lieu of confiscation	1061
45.9.2 Procedure for Confiscation of Vehicle	1062
45.9.3 Goods/Conveyances Violating Provisions of GST alone are to be detained/confiscated	1062
45.9.4 No need of issue of SCN for Seizure and Confiscation Procedures	1063
45.9.5 Guidelines for Issuance of Summary of Demand Order in Form GST DRC-07	1063
45.10 Prosecution Provisionsâ€”Section 132 of CGST Act	1064
45.10.1 Circumstances for Prosecution	1064
45.10.2 Imprisonment and Fine	1065
45.10.3 Guidelines to arrest	1066
45.11 Compounding of Offencesâ€”Section 138	1067
45.11.1 Procedure for Compounding (Offences and Penalties Rules)	1068
45.12 List of Forms under Compounding	1069
45.13 List of Forms for Vehicle Inspection, Detention and Confiscation	1070
46. Transitional Provisions	1071
46.1 Transitional Provisions for CENVAT Creditâ€”Section 140 of CGST Act	1071
46.1.1 Other Compliances to be Undertaken under Section 140(Transitional Provisions Rules)	1077
46.1.1.1 Revision of GST TRAN-1	1078
46.1.1.2 Extension of TRAN-1 Filing Not Filed Due to Technical Faults	1078
46.1.2 Transitional Provisions for Unregistered Persons not possessing duty paying documentâ€”Section 140(3) of CGST Act	1079
46.1.2.1 Methods for allowing Credit Section 140(3)of CGST Act	1080
46.1.2.2 Credit Transfer Documents (CTD)	1080
46.1.2.3 Credit Availment at Prescribed Percentage	1082
46.2 Job Work Related Transitional Provisionsâ€”Section 141 ofCGST Act	1083
46.3 Miscellaneous Transitional Provisionsâ€”Section 142 of CGST Act	1084
46.4 Some Specific Casesâ€”Section 142 of CGST Act	1086
46.5 Non-Utilisation/Transition of Disputed and Not Allowed Credits	1087
46.6 Procedure for verification of Transitional Credit	1088
46.6.1 Basis on which the assessee needs to be picked by authorities for verification	1088
46.6.2 Transition of CENVAT Credit in relation to Cesses	1089
46.6.3 Documents that can be asked by the verification authorities	1090
46.6.4 Information details to be filed by the specific taxpayers	1090
46.6.5 Prescribed procedure for carrying out the verification	1090
46.7 Forms Under Transitional Provisions	1091
47. E-Way Bill	1092
47.1 Concept and Validity of EWB	1092
47.1.1 Restriction on Filing Part A of EWB	1100
47.1.1.1 Relaxation in rule restricting generation of e-way bill by a registered person	1100
47.1.2 EWB Generation in Case of â€˜Bill toâ€™ â€˜Ship Toâ€™ Transaction	1101
47.1.3 EWB Generation in Case of â€˜Bill Fromâ€™ and â€˜Ship Fromâ€™Scenario	1101
47.1.4 Procedure to be Adopted for Transportation through Road	1102
47.1.4.1 Procedure to be adopted when consignor or consignee does not generate EWB in case of inter-State supplies	1103
47.1.4.2 EWB Requirement if Goods are supplied within a State but Transited Through Different States	1104
47.1.5 Procedure to be Adopted for Transportation Through Rail or Air or Vessel	1104
47.1.5.1 Meaning of Transportation of Goods by Rail under E-Way Bill Provisions	1104
47.1.6 Procedure to be adopted for transportation of goods supplied through electronic commerce operator (ECO) or Courier Agency	1105
47.1.7 Re-assignment to new transporter for updation of information in EWB	1105
47.1.8 E-Way Bill Details to be made available by Portal	1106
47.1.9 Documents to be carried	1106
47.1.9.1 Physical Copy of invoice not to be carried when E-invoice has been generated	1107
47.1.10 Verification of Documents and Coveyance	1107
47.1.11 Prescribed Goods not requiring EWB for transportation	1108
47.1.12 Generation of E Way Bills	1108
47.1.13 Consolidated EWB	1110
47.1.14 E-Way Bills for multi modal transportation of goods	1111
47.1.15 Transporters and E-Way Bills	1111
47.1.15.1 Special Provision as to Enrolment of Warehouse Operator and Transporters (Rule 58)	1113
47.1.16 Reports Generated on E-Way Bill System	1113
47.1.17 Transportation of goods: One Invoice Multiple Vehicles	1114
47.1.18 Facilities given to large units having considerable EWBs	1114
47.1.19 Miscellaneous issues	1115
47.1.20 E Way Bill generation in case of movement of goods pursuant to service as principal supply	1116
47.2 Judgments	1116
48. Anti Profiteering	1117
48.1 Anti-Profiteering Measuresâ€”Section 171 of CGST Act	1117
48.1.1 Anti-Profiteering Rules, 2017	1117
48.1.1.1 Different Authorities provided under the said Rules	1117
48.1.1.2 Process to be followed for complaints received under Section 171	1118
48.1.1.3 Powers, Duties, etc. of Authority	1118
48.2 Competition Commission of India	1120
48.3 Judgments	1121
49. Liability and Other miscellaneous provisions	1122
49.1 Liability Provisions (Chapter XVI of CGST Act, 2017)	1122
49.1.1 Liability in case of Transfer of Business (Section 85 of CGST Act, 2017)	1122
49.1.2 Liability of Agent and Principal (Section 86 of CGST Act,2017)	1123
49.1.3 Taxability of Supplies during intervening period in Case of Amalgamation or Merger (Section 87 of CGST Act, 2017)	1123
49.1.4 Liability of Directors of Private Company (Sections 88 and 89 of CGST Act, 2017)	1124
49.1.5 Liability of a Partner of Firm (Section 90 of CGST Act,2017)	1125
49.1.6 Liability of a Guardian or Trustee etc. (Section 91 of CGST Act, 2017)	1125
49.1.7 Liability of Legal Representative (Section 93 of CGST Act, 2017)	1125
49.1.8 Liability in other Cases (Section 94 of CGST Act, 2017)	1126
49.2 Culpable Mental State (Section 135 of CGST Act, 2017)	1126
49.3 Goods and Service Tax Compliance Ratingâ€”Section 149 of CGST Act	1126
49.4 Information Returnâ€”Section 150 of CGST Act	1126
49.5 Power to Collect Statisticsâ€”Section 151 of CGST Act	1128
49.6 Sharing of Information by GSTN Portal (Section 158A)	1128
49.7 Publication of Names (Section 159 of CGST Act, 2017)	1128
49.8 Rectification of errorsâ€”Section 161 of CGST Act	1129
49.9 Rounding off of Taxesâ€”Section 170 of CGST Act	1129
49.10 Mandatory Provision of Electronic Payment Option by Specified Suppliers	1129
49.11 Mandatory Mention of Document Identification Number (DIN)	1129
49.12 Extension of Timeline for Other Compliances in view of COVID-19 (I)	1130
49.12.1 Extension of Timeline for Other Compliances in view of COVID-19 (II)	1131
49.12.2 Exclusion of COVID-19 related period from adjudication and refund filing	1132
49.13 COVID-19 Related Time Extensions	1133
49.13.1 Supreme Court COVID Orders	1133
49.13.2 CBIC Clarification on COVID related Limitation Periods	1135
appendix
The Central Goods and Services Tax Act, 2017	1139-1321
The Central Goods and Services Tax (Extension to Jammu and Kashmir) Act, 2017	1322-1323
The Integrated Goods and Services Tax Act, 2017	1324-1350
The Integrated Goods and Services Tax (Extension to Jammu and Kashmir) Act, 2017	1351
The Union Territory Goods and Services Tax Act, 2017	1352-1373
The Goods and Services Tax (Compensation to States)Act, 2017	1374-1386
The Central Goods and Services Tax Rules, 2017	1387-1562
The Integrated Goods and Services Tax Rules, 2017	1563-1574
The Goods and Services Tax Compensation Cess Rules, 2017	1575
The Goods and Services Tax (Period of Levy and Collection of Cess) Rules, 2022	1576
The Goods and Services Tax Settlement of Funds Rules, 2017	1577-1588

GST Ready Reckoner as Amended by Finance Act, 2023

GST Ready Reckoner as Amended by Finance Act, 2023

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