The important notes on GST containing Definition, importanant def u/s 2,composition scheme, change in rate of tax,taxable value of supply etc

1. Presentation by Harshita JainPresentation by Harshita Jain
(Article)
harshitajain199501@gmail.com

2. Definition
Taxes Subsumed under GST
Important definitions u/s 2
Levy and Collection of Central/State Goods
and Services Taxand Services Tax
Composition Scheme
Time and supply of goods and services
Change in rate of tax in respect of supply of
goods or services
Taxable value of supply

3. In order to streamline all the different types of
indirect taxes and implement a “single taxation”
system. This system is called as GST ( GST is the
abbreviated form of Goods & Services Tax). The
main expectation from this system is to abolish
all indirect taxes and only GST would be levied.
As the name suggests, the GST will be leviedAs the name suggests, the GST will be levied
both on Goods and Services.
It is destination based tax on consumption of
goods and services . In a nutshell, only value
addition will be taxed and burden of tax is to be
borne by the final costumer

4. •Central Excise Duty
•Duties of Excise (Medicinal
and toilet Preparation)
•Additional Duties of Excise
•State Vat
•Central Sales Tax
•Luxury Tax
•Entry Tax
Taxes currently levied andTaxes currently levied andTaxes currently levied andTaxes currently levied and
collected by the Centrecollected by the Centrecollected by the Centrecollected by the Centre
Taxes currently levied andTaxes currently levied andTaxes currently levied andTaxes currently levied and
collected by the Statecollected by the Statecollected by the Statecollected by the State
•Additional Duties of Excise
•Additional Duties of Customs
•Special Additional Duties of
Customs
•Service Tax
•Central Surcharge and Cesses
so far as they relate to supply
of goods and services
•Entry Tax
•Entertainment and Amusement
Tax
•Taxes on Advertisements
•Purchase Tax
•Taxes on Lotteries, Betting and
Gambling
•State Surcharge and Cesses so
far as they relate to supply of
goods and services

5. 1.GoodsGoodsGoodsGoods
means every kind of movable property
other than- money and securities
but includes
actionable claim,
growing crops,
grass and things attached to or forming part of the land which are agreed
to be severed before supply or under a contract of supply
2. ServicesServicesServicesServices
means anything other than goods;
Note:
1. Services include transactions in money but does not include money and
securities;
2.- Services does not include transaction in money other than an activity
relating to the use of money or its conversion by cash or by any other
mode, from one form, currency or denomination, to another form,
currency or denomination for which a separate consideration is charged.

6. 3. Supply includesSupply includesSupply includesSupply includes—
a) all forms of supply of goods and/or services such as
sale, transfer, barter, exchange, license, rental, lease
or disposal made or agreed to be made for a
consideration by a person in the course or
furtherance of business,furtherance of business,
b) importation of services, for a consideration whether
or not in the course or furtherance of business, and
c) a supply specified in Schedule I, made or agreed to
be made without a consideration.
d) Schedule II, in respect of matters mentioned therein,
shall apply for determining what is, or is to be
treated as a supply of goods or a supply of services.

7. 4. SupplierSupplierSupplierSupplier
-in relation to any goods and/or services shall mean the
person supplying the said goods and/or services and
-shall include an agent acting as such on behalf of such
supplier in relation to the goods and/or services supplied
5. Place of business” includesPlace of business” includesPlace of business” includesPlace of business” includes5. Place of business” includesPlace of business” includesPlace of business” includesPlace of business” includes
(a) a place from where the business is ordinarily carried on,
and includes a warehouse, a godown or any other place
where a taxable person stores his goods, provides or
receives goods and/or services; or
(b) a place where a taxable person maintains his books of
account; or
(c) a place where a taxable person is engaged in business
through an agent, by whatever name called

8. 6.6.6.6. PersonPersonPersonPerson includes—
an individual;
a HUF
a company;
a firm;
a LLP
any body corporate
incorporated by or under the
laws of a country outside
India;
a co-operative societya LLP
an association of persons or a
body of individuals, whether
incorporated or not, in India
or outside India;
any corporation established
by or under any Central, State
or Provincial Act or a
Government company as
defined in section 2(45) of the
Companies Act, 2013 (18 of
2013);
India;
a co-operative society
registered under
cooperative societies;
a local authority;
government;
society as defined under
the Societies Registration
Act, 1860 (21 of 1860); (m)
trust; and (n) every artificial
juridical person, not falling
within any of the preceding
sub-clauses

9. There shall be levied a tax called the Central/State Goods
and Services Tax (CGST/SGST) on all intra-State supplies
of goods and/or services on the value determined under
section 15 and at such rates as may be notified by thesection 15 and at such rates as may be notified by the
Central/State Government in this behalf,
but not exceeding 14% (fourteen percent), on the
recommendation of the Council and collected in such
manner as may be prescribed.
.

10. The Central or a State Government may, on the recommendation of the Council, by notification,
specify categories of supply of goods and/or services the tax on which is payable
a) on reverse charge basis and the tax thereon shall be paid by the recipient of such goods and/or
services and all the provisions of this Act shall apply to such person as if he is the person liable for
paying the tax in relation to the supply of such goods and/or services
b) services the tax on which shall be paid by the electronic commerce operator if such services are
supplied through it, and all the provisions of this Act shall apply to such electronic commerce operator as
if he is the person liable for paying the tax in relation to the supply of such services:
PROVIDED that where an electronic commerce operator does not have a physical presence in the
taxable territory, any person representing such electronic commerce operator for any purpose in the
taxable territory shall be liable to pay tax:
PROVIDED FURTHER that where an electronic commerce operator does not have a physical presence
in the taxable territory and also he does not have a representative in the said territory, such electronic
commerce operator shall appoint a person in the taxable territory for the purpose of paying tax and such
person shall be liable to pay tax.

11. According to sec 8(3), on the recommendation of the
Council, the proper officer of the Central or a State
Government may,
subject to such conditions and restrictions as may
be prescribed,
permit a registered taxable person,
whose aggregate turnover in the preceding financialwhose aggregate turnover in the preceding financial
year did not exceed 50 lakh rupees, to pay, in lieu of
the tax payable by him,
an amount calculated at such rate as may be
prescribed,
but not less than
2.5% case of a manufacturer and
1% in any other case, of the turnover in a State during the
year:

12. COMPOSITION SCHEME NOT APPLICABLE ON THE FOLLOWING
PERSON
(a) who is engaged in the supply of services; or
(b) who makes any supply of goods which are not leviable to tax
under this Act; or (exempted goods supplier)
(c) who makes any inter-State outward supplies of goods; or
(d) who makes any supply of goods through an electronic
commerce operator who is required to collect tax at sourcecommerce operator who is required to collect tax at source
under section 56; or
(e) who is a manufacturer of such goods as may be notified on
the recommendation of the Council:
PROVIDED FURTHER that no such permission shall be granted to
a taxable person unless all the registered taxable persons,
having the same PAN as held by the said taxable person, also opt
to pay tax under the provisions of this sub-section.

13. FEATURES
The permission granted under sub-section (1) shall
stand withdrawn from the day on which his aggregate
turnover during a financial year exceeds 50 lakh
rupees.
(3) A taxable person to whom the provisions of sub-
section (1) apply shall not collect any tax from thesection (1) apply shall not collect any tax from the
recipient on supplies made by him nor shall he be
entitled to any credit of input tax.
The tax payable by the registered dealer who has
adopted the scheme has to pay tax notified which is
normally lower then the normal tax rate but not less
then 2.5% in case of manufacturer and 1% in another
cases.
The composition scheme is voluntary

14. Case I- The time of supply of goods -
(a) the date of issue of invoice by the supplier
or the last date on which he is required, u/s
28, to issue the invoice with respect to the
supply; orsupply; or
(b) the date of payment received
(whichever is earlier)

15. In case of advance received i.e. in excess of the
amount indicated in the tax invoice but less then
Rs 1000, the time of supply to the extent of such
excess shall, at the option of the said supplier,
be the date of issue of invoice.
The date on which the supplier receives theThe date on which the supplier receives the
payment
a) the date on which the payment is entered in
his books of accounts or
b) the date on which the payment is credited to
his bank account
( whichever is earlier).

16. Case II- The time of supply in case of reverse
charge basis
(a) the date of the receipt of goods, or
(b) the date on which the payment is made, or
(c) the date immediately following thirty days
from the date of issue of invoicefrom the date of issue of invoice
(whichever is earlier)
In case the above dates cant be determined , the
time of supply shall be the date of entry in the
books of account of the recipient of supply.

17. Case III- In case of supply of vouchers, by
whatever name called, by a supplier, the time
of supply shall be-
(a) the date of issue of voucher, if the supply is
identifiable at that point; oridentifiable at that point; or
(b) (b) the date of redemption of voucher, in all
other cases;

18. Case IV- The time of supply of services
(a) the date of issue of invoice by the supplier or
the last date on which he is required, under
section 28, to issue the invoice with respect to
the supply; or
(b) the date on which the supplier receives the(b) the date on which the supplier receives the
payment with respect to the supply:
(whichever is earlier)
Case V-The provision of advance is same as in
case 1
the time of supply of goods

19. Case VI –The time of supply in case of reverse charge
basis
(a) the date on which the payment is made, or
(b) the date immediately following sixty days from the
date of issue of invoice by the supplier:
(whichever is earlier)
PROVIDED that where it is not possible to determine
the time of supply under clause (a) or (b), the time of
supply shall be the date of entry in the books of
account of the recipient of supply
Case VII – The provision of supply of voucher is same as
in case 3 the time of supply of goods

20. TIME OFTIME OFTIME OFTIME OF
SUPPLYSUPPLYSUPPLYSUPPLY
DATE OFDATE OFDATE OFDATE OF
INVOICEINVOICEINVOICEINVOICE
DATE OFDATE OFDATE OFDATE OF
PAYMENTPAYMENTPAYMENTPAYMENT
DATE OF SUPPLYDATE OF SUPPLYDATE OF SUPPLYDATE OF SUPPLY
GOODS SUPPLIED
BEFORE CHANGE IN
RATE
BEFORE BEFORE WHICHEVER IS
EARLIER
BEFORE AFTER DATE OF INVOICEBEFORE AFTER DATE OF INVOICE
AFTER BEFORE DATE OF PAYMENT
GOODS SUPPLIED
AFTER CHANGE IN
RATE
BEFORE AFTER DATE OF PAYMENT
BEFORE BEFORE WHICHEVER IS
EARLIER
AFTER BEFORE DATE OF INVOICE

21. VALUE OF SUPPLY INCLUDES THE FOLLOWING
a) any taxes, duties, cesses, fees and charges levied under any statute, if
charged separately by the supplier to the recipient;
b) any amount paid by receiver on behalf of supplier but not included in
the price actually paid or payable for the goods and/or services;
c) incidental expenses, such as, commission and packing, charged by the
supplier to the recipient of a supply
c) incidental expenses, such as, commission and packing, charged by the
supplier to the recipient of a supply
d) including any amount charged for anything done by the supplier in
respect of the supply of goods and/or services
d) interest or late fee or penalty for delayed payment of any
consideration for any supply; and
e) subsidies directly linked to the price excluding subsidies provided by
the Central and State governments;
VALUE OF SUPPLY EXCLUDES THE FOLLOWING
Discount given and has been duly shown in the invoice.

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