2. Learning Outcomes
• Levy and collection of GST
• Taxable event - supply of goods and services
• Place of supply,
• within state,
• interstate, import and export,
• Time of supply,
• Valuation for GST Valuation rules,
• Taxability of reimbursement of expense,
• Exemption from GST: Small supplier and composition scheme, classification of goods and service.
4. Levy and collection
Intra-state supply (supply
within State)
Basis of charge as per
CGST Act, 2017
Basis of charge as per
respective SGST/UTGST
Act, 2017 (Most of the
provisions are same as
CGST Act, 2017)
Inter-state supply (supply
from one state to another
state)
Basis of charge as per IGST
Act, 2017
5. Levy and collection as per CGST Act, 2017
• U/s 9(1) of CGST Act, 2017 there shall be levied a tax
• Called the Central Goods and Services Tax(CGST);
• On all the intra-state supplies of goods or services or both, except on supply of certain
supplies;
• On the value determined u/s 15; and
• At such a rate (maximum 20%,) as notified by the Central Government on
recommendation of GST Council; and
• Collected in such a manner as may be prescribed; and
• Shall be paid by the taxable person.
6. Levy and collection as per CGST Act, 2017
• U/s 9(2) of CGST Act 2017, the CGST of following supply shall be levied with the effect from
such date as notified by the Central Government on recommendation of GST Council-
• Petroleum crude, High speed diesel, Motor spirit (commonly known as petrol), Natural gas, Aviation turbine
fuel
• U/s 9(3), CGST is to be paid on reverse charge basis by the recipient on notified goods/ services
or both (liability to pay tax by the recipient of supply of goods / services rather than supplier of
goods/ services under forward charge)
• U/s 9(4), CGST on taxable supply of goods/ services to registered supplier from unregistered
supplier is to be paid on reverse charge basis by the recipient.
• U/s 9(5), E-Commerce operator is liable to pay CGST on notified intra-state
• supplies.
7. Levy and collection as per IGST Act, 2017
U/s 5(1) of IGST Act, 2017 there shall be levied a tax –
• Called the Integrated Goods and Services Tax (IGST);
• On all the inter-state supplies of goods or services or both, except on few supplies
• On the value determined u/s 15 of CGST Act, 2017; and
• At such a rate (maximum 40%,) as notified by the Central Government on recommendation
of GST Council; and
• Collected in such a manner as may be prescribed; and
• Shall be paid by the taxable person.
• Provided further that IGST will be imposed on goods/ services imported into India.
8. Levy and collection as per IGST Act, 2017
• U/s 5(2) of IGST Act, 2017, the CGST of following supply shall be levied with the effect
from such date as notified by the Central Government on recommendation of GST
Council-
• Petroleum crude, High speed diesel, Motor spirit (commonly known as petrol), Natural gas, Aviation
turbine fuel
• U/s 5(3), IGST is to be paid on reverse charge basis by the recipient on notified goods/
services or both (liability to pay tax by the recipient of supply of goods/ services rather
than supplier of goods/ services under forward charge).
• U/s 5(4), IGST on taxable inter-state supply of goods/ services to registered supplier from
unregistered supplier (agriculturist) is to be paid on reverse charge basis by the recipient.
• U/s 5(5), E-Commerce operator is liable to pay CGST on notified inter-state supplies.
12. Meaning of ‘Goods’
(Section 2 (52) of CGST Act)
• ‘Goods’ means every kind of movable property other than money and
securities but includes:
• actionable claim;
• growing crops, grass and things attached to/forming part of the land which are agreed
to be severed before supply or under a contract of supply.
13. Meaning of ‘Services’
(Section 2(102) of CGST Act):
• Services means anything other than goods, money and securities.
• Services include activities relating to the use of money or its conversion of
money by cash or by any other mode, from one form of currency or
denomination to another form, currency or denomination for which a
separate consideration is charged.
14. Meaning of ‘Consideration’
(Section 2(31) of CGST Act)
• The scope of the word ‘consideration’ in relation to the supply of goods or services or both
would include:
• any payment made or to be made, whether in money or otherwise, by the recipient or by any
other person; and
• the monetary value of any act or forbearance by the recipient or by any other person.
• However, any subsidy given by Central Government or State Government shall not be
treated as a part of consideration; and
• a deposit given in respect of supply of goods or services or both shall not be considered as
payment made for such supply unless the supplier applies the deposit as consideration for
the said supply.
15. Meaning of ‘Money’
(Section 2(75) of CGST Act)
• Money means Indian legal tender or any foreign currency, cheque,
promissory note, bill of exchange, letter of credit, draft, pay order, traveller
cheque, money order, postal or electronic remittance or any other instrument
recognised by the Reserve Bank of India when used as a consideration to
settle an obligation or exchange with Indian legal tender of another
denomination.
• However, money shall not include any currency that is held for its
numismatic (study or collection of currency; consisting of coins or medals)
value.
16. Meaning of ‘Business’
(Section 2(17) of CGST Act)
Business includes:
• a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity,
whether or not it is for a pecuniary benefit;
• b) any activity or transaction in connection with or incidental or ancillary to (a) above;
• c) any activity or transaction in the nature of (a) above, whether or not there is volume, frequency, continuity
or regularity of such transaction;
• d) supply or acquisition of goods including capital assets and services in connection with commencement or
closure of business;
• e) provision by a club, association, society, or any such body (for a subscription or any other consideration)
of the facilities or benefits to its members, as the case may be;
• f) admission, for a consideration, of persons to any premises;
17. Meaning of ‘Business’
• g) services supplied by a person as the holder of an office which has been
accepted by him in the course or furtherance of his trade, profession or
vocation;
• h) services provided by a race club by way of totalisator or a licence to book
maker in such club; and
• i) any activity or transaction undertaken by the Central Government, a State
Government or any local authority in which they are engaged as public
authorities.
18. Meaning of ‘Person’
(Section 2(84) of CGST Act)
Person includes:
• an individual (i.e. a natural human being);
• a Hindu Undivided Family (‘HUF’)
• a firm;
• a limited liability partnership firm;
• a company;
• a trust;
• a body -corporate incorporated by or under the laws of a country outside India;
• an association of persons (AOP), whether incorporated or not
• a body of individuals (BOI), whether incorporated or not
19. Meaning of ‘Person’
• Government (Central Government as well as State Government);
• a local authority (i.e., panchayat, municipality, cantonment board, etc); and
• a co-operative society registered under any law relating to cooperative societies;
• a society as defined under the Societies Registration Act, 1860;
• a corporation established by/under any Central, State or Provincial Act or
• Government company as defined u/s 2(45) of Companies Act, 2013;
• every artificial juridical person not covered above (artificial juridical persons are entities which are
not natural persons but are separate entities in the eyes of law. Though they may not be sued
directly in a court of law, but they can be sued through persons managing them. Examples are
universities, CCSU, ICAI, ICSI, etc.);
21. Introduction
• Under the old regime, taxable events for various taxes were different. For
example for excise, the taxable event was manufacture or production of
goods in India, for service, the taxable event was provision of service and
under VAT/CST it was sale of goods. To replace such multiplicity and
varying interpretations, GST has brought a single and unified taxable event
which is supply, i.e., tax would be payable on the supply of goods or services.
22. SUPPLY UNDER GST
All forms of supply
Of goods and/or services
Made or agreed to be made
For a consideration
By a Person
In the course or furtherance of
Business
Sale/ Transfer /Barter / Exchange /License /
Rental / Lease / Disposal
23. Scope of Supply
(Section 7 of CGST Act)
• Section 7(1): For the purposes of this Act, the expression “supply” includes:
• a) all forms of supply of goods or services or both such as
• sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made
• for a consideration by a person in the course or furtherance of business;
• b) import of services
• for a consideration
• whether or not in the course or furtherance of business;
• c) the activities specified in Schedule I, made or agreed to be made without a consideration; and
• d) the activities to be treated as supply of goods or supply of services as referred to in Schedule
II.
24. SCHEDULE I
ACTIVITIES TO BE TREATED AS SUPPLY EVEN IF MADE WITHOUT CONSIDERATION
1. Permanent transfer or disposal of business assets where input tax credit has been availed on such assets.
2. Supply of goods or services or both between related persons or between distinct persons as specified in section 25, when
made in the course or furtherance of
business:
Provided that gifts not exceeding fifty thousand rupees in value in a financial year by an employer to an employee shall not be
treated as supply of goods or services or
both.
3. Supply of goods—
(a) by a principal to his agent where the agent undertakes to supply such goods on behalf of the principal; or
(b) by an agent to his principal where the agent undertakes to receive such goods on behalf of the principal.
4. 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
25. SCHEDULE II
ACTIVITIES TO BE TREATED AS SUPPLY OF GOODS OR SUPPLY OF SERVICES
• 1. Transfer
• (a) any transfer of the title in goods is a supply of goods;
• (b) any transfer of right in goods or of undivided share in goods without the transfer of title thereof, is a
supply of services;
• (c) any transfer of title in goods under an agreement which stipulates that property in goods shall pass at a
future date upon payment of full consideration as agreed, is a supply of goods
• 2. Land and Building
• (a) any lease, tenancy, easement, licence to occupy land is a supply of services;
• (b) any lease or letting out of the building including a commercial, industrial or residential complex for
business or commerce, either wholly or partly, is a supply of services.
• Etc.
26. SCHEDULE III
ACTIVITIES OR TRANSACTIONS WHICH SHALL BE TREATED NEITHER AS A
SUPPLY OF GOODS NOR A SUPPLY OF SERVICES
1. Services by an employee to the employer in the course of or in relation to his employment.
2. Services by any court or Tribunal established under any law for the time being in force.
3. (a) the functions performed by the Members of Parliament, Members of State other local authorities;
(b) the duties performed by any person who holds any post in pursuance of the provisions of the Constitution
in that capacity; or
(c) the duties performed by any person as a Chairperson or a Member or a Director in a body established by the
Central Government or a State Government or local authority and who is not deemed as an employee before
the commencement of this clause.
4. Services of funeral, burial, crematorium or mortuary including transportation of the deceased.
5. Sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building.
6. Actionable claims, other than lottery, betting and gambling.
27. GST Supply
Intra State Supply
Goods and/or
Services
SGST
CGST
Inter State Supply
Goods and/or
Services
IGST
Import
Goods
Basic Custom
Duty
IGST
Services
IGST
Export
Goods and/or
Services
Physical Export
1. Pay IGST and Refund to
be claimed by Exporter
2. Sale without IGST
Supply to SEZ
Goods and/or
Services
Zero Rated
Pay IGST and Refund to be claimed by
SEZ
Non GST Supply
E.g. Diesel
Supply
29. Sec Rule Place of Supply Remarks
10(1)(a) Supply involves movement of
goods.
Location of the goods at
the time at which
movement of goods
terminates for delivery
to the recipient.
Movement may be
caused by the
supplier or the
recipient or any
other person.
10(1)(b) Triangular situation
1. Goods are delivered by a
supplier to a recipient or
any other person.
2. On the direction of a third
person [whether acting as
an agent or otherwise].
3. Before or during movement
of goods.
4. Either by way of transfer of
title to the goods or
otherwise.
The principal place of
business of such third
person.
Third person shall
be deemed to have
received the goods.
30. Rule Place of Supply Remarks
10(1)(c) Supply does not
involve movement of
goods.
Location of such goods
at the time delivery to the
recipient.
10(1)(d) Goods are assembled
or installed at site.
The place of such
installation or
assembly.
10(1))(e) Where the goods are
supplied on board a
conveyance [such as
vessel, an aircraft, a train
or motor vehicle].
Location at which such
goods are taken on
board.
30
Section 10(2): Residuary: Where the place of supply cannot be determined as
per above sub-sections, the same shall be determined in a manner as may be
prescribed.
31. Place of supply of goods – Imports & Exports
1. Import of goods S 2(10): Means bringing goods into India from a place outside
India
• S 8(1): Place of supply shall be the location of the importer.
2. Export of goods S 2(5): Means taking goods out of India to a place outside
India.
3. Sec 11(a) : Place of supply of goods:
a) Imported into India – location of the importer
b) Exported from India – location outside India.
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33. General Services – Sec 12(2)
Condition Location Remarks
Where a supply is made to a
registered person
The location of such person.
Where a supply is made to a
person other than
registered person.
a) The location of the recipient where the
address on record exists.
b) The location of the supplier of services in
other cases.
33
34. Sec 12 /
Sub-
section
Description of Service Place of supply
3(a) Services directly in relation to immovable property
[architects, interior decorators, surveyors, engineers and other
related experts or estate agents].
Location at which
immovable property or
boat or vessel is located or
intended to be located.
If immovable property or
boat or vessel is located
outside India, the place
of supply shall be the
location of the recipient.
Rent / Lease: Any service provided by way of grant of rights to
use immovable property.
Carrying out co-ordination of construction work
3(b) Service by way of lodging accommodation by a hotel, inn,
guest house, homestay, club or campsite including house boat or
any other vessel
34
Immovable property related services
35. Sec 12 /
Sub-section
Description of Service Place of supply
3 ( c) Service by way of accommodation in any immovable
property for
a) Organizing any marriage or reception or matters
related therewith;
b) Official, social, cultural, religious or business
function including services provided in relation to
such function at such property.
Location at which immovable property
or boat or vessel is located or intended
to be located.
If immovable property or boat or
vessel is located outside India, the
place of supply shall be the
location of the recipient.
3 (d) Any services ancillary to above services
Immovable property related services
36. Immovable property related services
• Explanation u/s 3: Where the immovable property or boat or vessel is
located in more than one State:-
• Supply of service shall be treated as made in each State.
• In proportion to the value of services separately collected or
determined, in terms of contract or agreement entered into in
this regard.
• In the absence of such contract or agreement, on such reasonable
basis as may be prescribed in this behalf.
36
37. Sec 12 /
Sub-section
Description of Service Place of supply
4 Performance based:
a) Restaurant & Catering services,
b) Personal grooming, fitness, beauty treatment,
c) Health service including cosmetic and plastic
surgery.
Location where the services are actually
performed.
6 Admission to Events: Services provided by way
of admission to an event [cultural, artistic,
sporting, scientific, educational or entertainment
event or amusement park or any other place] and
services ancillary thereto.
Place where the event is actually held.
Park or such other place is located.
37
Performance based / Event related services
38. Sec 12/
Sub-section
Description of Service Place of supply
7 Event managers: Services
provided by way of
organisation of a cultural,
artistic, sporting, scientific,
educational or entertainment
event including supply of
services in relation to a
conference, fair, exhibition,
celebration or similar events.
a) To a registered person, location of such person.
b) A person other than a registered person, place be the location
where the event is actually held.
If the event is held outside India, the place of supply shall be
the location of the recipient.
Where the event is held in more than one State and a
consolidated amount is charged:-
Supply of service shall be treated as made in each State.
In proportion to the value of services separately collected or
determined, in terms of contract or agreement entered into in
this regard.
In the absence of such contract or agreement, on such
reasonable basis as may be prescribed in this behalf.
Services ancillary to
organization of any of the
above events or services, or
assigning of sponsorship of
any of the above events.
39. Sec 12 /
Sub-
section
Description of Service Place of supply
5. Training & Performance Appraisal services a) To Registered Person, location of such
person.
b) Other than a registered person, the
location where the services are actually
performed.
10 Services on board a conveyance such as
vessel, aircraft, train or motor vehicle.
Location of first scheduled point of departure
of that conveyance for the journey.
Performance / Event related services
40. Sec 12 /
Sub-
section
Description of Service Place of supply
8 Transportation of goods, including by
mail or courier.
a) To a registered person, the location of such person.
b) A person other than a registered person, location at which the
goods are handed over for transportation.
9. Transportation of passengers
Where the right to passage is given for
future use and the point of
embarkation is not known at the time
of issue of right to passage.
a) To a registered person, the location of such person.
b) A person other than a registered person, place where the
passenger embarks on the conveyance for a continuous
journey.
Explanation: Return journey shall be a separate journey even if
the right to passage for onward and return journey is issued at the
same time.
As per rules applied to General Services – Sub-section (2).
Transportation services
41. Sec 12 /
Sub-
section
Description of Service Place of supply
12 Banking and other financial
services including stock broking
services
a) Location of the recipient of services on the
records of the supplier of services.
b) If the location of the recipient of services is not
on the records of the supplier of services, the
location of the supplier of services.
13 Insurance services a) To a registered person, the location of such
person.
b) To a person other than a registered person, the
location of recipient of services on the
record of the supplier of services.
41
Financial Services
42. Sec 12 /
Sub-section
Description of Service Place of supply
14 Advertisement services to:
a) Central Government;
b) A State Government;
c) A Statutory body or local authority
meant for identifiable States or UT
a) Location in each such States.
b) Value of supplies specific to each State shall
be in proportion attributable to services
provided by way of dissemination in the
respective State as may be determined in
terms of the contract or agreement
entered into in this regard.
c) In the absence of such contract or agreement,
on such reasonable basis as may be prescribed
in this behalf.
Advertisement Services
43. Sec 12 / Sub-section Conditions Place of supply
11
Telecommunication
services including
data transfer,
broadcasting, cable
and direct to home
television services
Services by way of
• fixed
telecommunicati
on line,
• leased circuits,
• internet leased
circuit,
• cable or dish
antenna.
Location where
telecommunication line, leased
circuit or cable connection or
dish antenna is installed for
receipt of services.
Telecommunication Services
44. Sec 12 / Sub-section Conditions Place of supply
11
Telecommunication
services including data
transfer, broadcasting,
cable and direct to home
television services
Post Paid Mobile
connection for
telecommunication and
internet services provided.
Location of billing address of recipient
of services on record of the supplier of
services.
Pre-paid Mobile
connection for
telecommunication, internet
service and DTH television
service are provided [on
pre-payment through a
voucher or any other
means].
a) Through a selling agent or a re-seller or a
distributor of SIM card or re-charge
voucher – address of the selling agent
etc. as per the record of the supplier of
service.
b) Final subscriber – location where the
pre-payment is received or such vouchers
are sold.
44
Telecommunication Services
45. Sec 12 / Sub-section Conditions Place of supply
11
Telecommunication
services including data
transfer, broadcasting,
cable and direct to home
television services
In other cases of mobile
connection.
Address of the recipient as per records of
the supplier of service.
Where address of recipient as per records of
the supplier is not available, the location of
supplier of service.
Where pre-paid service is
availed or the recharge is
made through internet
banking or other electronic
means of payment
The location of the service recipient on
record of the suppler of services.
45
47. Sec 13 / Sub-section Conditions Place of supply
Import / Export of
Services
Section shall apply to
determine the place of
supply of services where
the location of the
supplier of service or
the location of the
recipient of service is
outside India.
Services on goods: Services supplied
in respect of goods that are required to
be made physically available by the
recipient of service to the supplier of
service or to a person acting on behalf
of supplier of service in order to
provide the service.
Location where the services are
actually performed.
Where the services are provided from
a remote location by way of
electronic means, the location where
goods are situated at the time of
supply of service.
48. Sec 13 /
Sub-section
Description of Service Place of supply
4 Services directly in relation to
immovable property.
Place where the immovable property is located /
intended to be located
5 Admission to Events Place where the event is actually held.
6 Above any service in sub-sections
(3), (4) or (5) are supplied in more
than one location, including a
location in taxable territory.
Location in the taxable territory.
Export / Import of Services
49. Sec 13 /
Sub-
section
Description of Service Place of supply
8 Services supplied by a banking
company, or a financial institution,
or a NBFC, to account holders.
Location of the supplier of service.
Intermediary services Location of the supplier of service
Services consisting of hiring of
means of transport, including yachts
but excluding aircrafts and vessels
upto a period of one month.
Location of the supplier of service.
49
Export / Import of Services
50. Sec 13 / Sub-
section
Description of Service Place of supply
9 Transportation of goods, other
than by way of mail or courier.
Destination of the goods.
10. Passenger transportation service Location where the passenger embarks on the
conveyance for a continuous journey.
11. Services provided on board a
conveyance during the course of
passenger transport operation,
including services intended to be
wholly or substantially consumed
while on board.
First scheduled point of departure of the
conveyance for the journey.
Export / Import of Services
51. Sec 13 / Sub-
section
Conditions Place of
supply
Import / Export
of Services
Online
Information and
database access
or retrieval
services.
(OIDAR)
Person receiving such services shall be deemed to be located in the taxable
territory if any two of the following non-contradictory conditions are
satisfied, viz:
a) The location of address presented by the recipient of service via internet is
in taxable territory;
b) The credit card or debit card or store value card or charge card or smart
card or any other card by which the recipient of service settles payment has
been issued in the taxable territory.
c) The billing address of the recipient of service is in the taxable territory;
d) The internet protocol address of the device used by the recipient of service
is in the taxable territory;
e) The country code of the (SIM) card subscriber identity module used by the
recipient of service is of taxable territory;
f) The location of fixed land line through which the service is received by the
recipient is in taxable territory.
Location of
service
recipient.
52. Prevention of double taxation or non-taxation [S 10(13)]
1. To prevent double taxation or non-taxation of the supply of a service
2. For uniform application of rules.
3. The Central Government shall have the power to notify a description
of service or circumstances in which the place of supply shall be the
place of effective use and enjoyment of a service.
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