Gst in lucid manner

1. GST IN HALF AN HOUR
Approach
From taxable event (supply) to tax (appropriate rate) and then to taxable person
(registrant) – not vice versa
Step 1
To determine whether there is a ‘supply’ or not
Iftheanswerstoany of
theabovequestionsareaspertheanswersindicatedincolumn3ofthetable
above,THENa‘supply’ is being undertaken.
Step 2
To determine whether the ‘supply’ is ‘taxable’ or not
If a ‘supply’ is undertaken (Step 1), then pose the following questions
Sl.N
O.
QUESTION ANSWER
1 Is anything done(including,but notlimitedto,anactivity
or transactions specifiedinschedule II ofthe GST Act)
during the course of or furtherance of a business for a
consideration (monetary or non-monetary), not being
only a transaction in money or securities?
Yes
2 Is services imported for a consideration whether or not
in the course of or furtherance of business?
Yes
3 Is such activity in the nature of an activity listed in
Schedule I?
Yes
4 Issuch anactivityinthenatureofan activity listed in
Schedule III of the Act?
No
Sl.NO
.
QUESTION ANSWER
1 Isthe supply made or agreed to be madeinthetaxable
territory as per place of supply provisions?
Yes
2 Is this entirely covered in any of theexempted list as per
Notfn. No. 2/2017-CT (Rate) and 12/2017-CT (Rate)
No

2. Iftheanswertoboth
theabovequestionsisalsoaspertheanswersgivenincolumn3ofthetable
above,THENa‘taxablesupply’ is being supplied.
In essence, if a supply is made as specified under S.7 of GST law, i.e., any type
of supply for a consideration during the course of or furtherance of business,
subject further to Schedule I and III of the GST Acts, is a ‘taxable supply'.
Business Processes and areas of interest under GST
Registration – Threshold limits for goods suppliers, services suppliers (Intra-state and Inter-
state), composition dealers (conditions); Documentary and material
requirements; Compulsory Registration; Physical verification, Amendments,
Suspension, Cancellation and Revocation of Cancellation of registration;
Supply – Types, Schedule I, Schedule II, Schedule III, Exempt supplies, Composite and
Mixed Supplies, Zero-rated Supply
Time of - for Goods, for Services, for Continuous Supply of Goods and Services (more
Supply than 3 months, for RCM supplies, Removal on approval basis, Change in rate
of tax, Link with Time of Invoice
Value of
Supply – Inclusions and Exclusions, Valuation rules, Debit Notes and Credit Notes
Place of - for Goods, for Services, Conditions for Export and Import of Services and
SupplyImportance of Place of Supply condition, territorial waters
ITC - Eligibility and Conditions, Burden of Proof, Blocked Credits, Reversal of ITC
in certain circumstances, Jobwork, ISD
Returns - Types, Statement of inward and outward supplies
Payment of - Manner and Modes, TDS and TCS, wrong payments for inter-state as
Taxintra-state and vice versa, etc.
Refunds - Types; Conditions; Documentary requirements
Assessment – Types – Importance of provisional assessment and summary assessment,
Scrutiny of Returns
Audit - Departmental and Special Audit, Procedures and Processes
Inspection - Search Authorisation, Inspection of places and conveyances, arrest,
Summons, seizure - summary assessment followed by provisional attachment,
E-way bill requirements for various modes of supply, detention of goods and
conveyances in movement and confiscation thereof
Adjudication -Determination of tax, Invocation of extended period, General disciplines of
of Demands penalty, confiscation, types of offences, Manner of service of notices
dated 28th
June 2017 as amended from to time

3. andPenalty
Recovery - of tax collected but not paid to govt., modes of recovery of dues, payment in
instalments, Liability to pay in certain cases
Advance – Questions which can only be sought, Appellate authority - effect of dissent
Ruling
Appeals - Manner and Procedure of appeal to first Appellate Authority, Tribunal, HC
and SC, Requirement of Pre-deposit, Non-appealable decisions and orders
Revision - Authority, procedure
Prosecution – Prior Sanction and other Conditions; Documentary requirements, Procedures
Miscellaneous–Power to issue instructions, Delegation of powers, expert assistance,
samples, test purchases, protection of actions done in good faith, Bar on
civil courts’ jurisdiction, anti-profiteering measures, IGST settlement
mechanism, GST Council and its constituent committees and functions
Finer Points of GST
Delegation of powers cannot be done in respect of those legal provisions which require
reasonable belief to be formed by the officer
‘Aggregate turnover’ for the purpose of arriving threshold limits for registration or for
determining any rate of tax (if based on turnover) or for determining any exemption (based
on turnover), etc., will include turnover of exempt supplies including non-taxable supplies
and Interest income on deposits or advances given; for suppliers of goods and composition
taxpayers, only interest income is not includible for the purpose of calculating ‘aggregate
turnover’ but turnover of all other exempt supplies are included.
Audit is defined whereas Inspection is not defined.
Business includes every activity or transaction irrespective of who undertakes (including
governments and international organisations and embassies, courts, constitutional
authorities, etc.,) and volume, frequency, continuity or regularity of such activity or
transaction (exceptions of supply are contained in Schedule III)
Appellate authority cannot exercise the powers and duties of any other officer under the Act;
In other words, he can only hear appeals and pass orders
Cross-empowerment for rectification, appeal and revision is expressly prohibited (S.6(3) and
same subject matter proceedings cannot be initiated by SGST officer if CGST officer had
already initiated and vice versa. In Other words, since Inspection is the only
cross-empowered business process, two inspections on same assessee cannot continue.
Import of services for a consideration by individuals even while not in the course of business
is supply
Value for the purpose of GST includes all taxes other than GST
Tax is always self-assessed (S.59) and tax incidence is deemed to have been passed to
recipient unless contrary is proved by the supplier (S.49(9))

4. Tax is always paid in cash forgoods or services received under RCM
ITC on inputs to be reversed to the extent contained in the case of goods in case they are
lost, stolen, destroyed, written off or gifted or given as free samples
Burden of proof of claiming eligibility of ITC is on claimnant of ITC only (S.155)
No TDS if both PoS and supplier’s location are in a state different from the state in which the
government department, PSU, local body is located
Even for no supply during the month/period, NIL return to be filed
In assessment, only tax is assessed; interest is automatic and no penalty to be imposed
For imposing penalty, separate show cause notice, along with or without demand
In adjudication, Tax is levied and determined, Interest is charged and Penalty is imposed
Composite supply includes two or more taxable supplies only; mixed supply alone can have
exempted supplies
Payment of Consideration can be done by any person other than recipient too
Exempt supply includes non-taxable supply (non-GST goods and Electricity) and no-supply
(Schedule III)
In GST, Works contract pertains to only Immoveable Property
Supply includes definition under S.7 as well as in Schedule I
Cross-empowerment for SGST / CGST officers only for anti-evasion
IGST rate amendments / circulars / instructions are normally parimateria with CGST
notifications except for export and import of services and goods. But rule amendments are
not on par with CGST rule amendments, as both are entirely different.
Axioms of GST
No supply without business - except import of services for consideration
No taxable supply without consideration - except Schedule I activities
No tax without a supply
No taxable supply without registration
No composition registration ifinter-state supply
Compulsory registration for inter-state supply of goods or supply of goods through
E-commerce operator and RCM payers
No registration without mobile no., PAN,
Bank A/c no. Digital signature - All PAN number holders minus salaried persons
to take GST regn. (Subject to their crossing the
threshold limit of Rs.40 lakhs (intra-state) for
goods / Rs. 20 lakhs (both intra and inter-state
for services)

5. No Aadhar based registration, then compulsory verification
No regn. without proper place of business
No registrant without furnishing return
No taxable supply without tax invoice - vary for continuous supply, etc.,
No return without tax - except nil return
No current return, if no previous return
No tax without return - except voluntary payments in DRC-03
No tax payment through ITC for RCM
No collection of tax without levy
No retention of tax after collection
No ITCwithout proof
No full ITC when some supplies are exempt
No movement of goods without E-way bill - threshold limit for intra-state movement
No cancellation of regn., no penalty
and no demand of tax without SCN
No notice without reason and evidence
No order without notice
No notice for interest or recovery or attachment
No linkwith invoice and time limit for credit / debit notes
No refund claim after two years – exceptions to
No inspection or verification or visit or search without authorisation
No detention (of vehicle) without MOV-02
No MOV-07 without EWB-03 (SCN)
No MOV-09 without DRC-07 (order)
No confiscation without seizure
No audit without notice
No appeal without pre-deposit
No arrest without reasons to believefor CC and authorisation thereof
No prosecution without CC’s sanction
No delegation, if designated officer has to believe or form opinion as per law provision

6. No exercise of power without jurisdiction

7. Specific Provisions of Act under whichprocedural Rules and Formswere
prescribed
Sl.
No.
Section
no. of the
Act
Rule No. Forms Subject
1. 10 3-7,62 CMP-01 to 08
GSTR-4
Composition Levy
2. 15 27-35 Value of supply
3. 16 36-38 GSTR-2A/2B Eligibility and
conditions for
taking ITC
4. 17 38,42-43 GSTR-2A/2B Apportionment and
blocking of credits
5. 18 40-44 ITC-01 TO
ITC-03
Availability of
credit in special
circumstances
6. 19 45 ITC-04 Taking ITC in
respect of inputs
and capital goods
sent for jobwork
7. 20 39 Manner of
distribution of
credit by ISD
8. 22 24 REG-06 Person liable for
registration
(including migrated
Taxpayers)
9. 24 13-14 REG-06 AND
REG-09
Compulsory
Registration
10. 25 8-12,
16,17,25-26,41A
REG-01 TO
08,
REG-12,13,30,
Procedure for
Registration
11. 27 15 REG-11 Special provisions
for CTP and NRTP
12. 28 19 REG-14 & 15 Amendment of
Registration
13 29 20-22, 44 REG-16-19 &
REG-31
Cancellation or
suspension of
Registration

8. 14. 30 23 REG-05,
REG-21 TO 24
Revocation of
cancellation of
registration
15. 31 46-54 Tax Invoice
16. 34 53-54 Credit notes or debit
notes
17. 35 56-58, 80 ENR-01& 02 Accounts and other
records
18. 37 59, 67A GSTR-1, 2A,
4, 6
Furnishing details
of outward supplies
19. 38 60 GSTR 2A and
2B
Communication of
details of inward
supplies and ITC
20. 39 61,61A, 63-68 GSTR-3B, 5, 6,
7, 8
Furnishing of
returns
21. 41 41A ITC-02A Availment of ITC
22. 44 68, 80 GSTR-3A, 9,
9A, 9B, 9C
Annual Return
23. 45 68, 81 GSTR-3A,
GSTR-10
Final Return
24. 48 83-84 PCT-01 to
PCT-07
GST Practitioner
25. 49 85-88 PMT-01 TO
PMT-09
Payment of tax,
interest, penalty and
other amounts
26. 49A 88A Utilisation of ITC
subject to certain
conditions
27. 51 12, 66, 68 GSTR-07,
GSTR-3A
TDS
28. 52 12, 67, 68 GSTR-08,
GSTR-03A
TCS
29. 54 89-93, 95A-97A RFD-01 to
RFD-09,
RFD10B & 11
Refund of Tax
30. 55 82, 95 RFD-10 &
10A, GSTR-11
Refund in certain
cases
31. 57 97 Consumer Welfare
Fund
32. 60 98 ASMT-01 TO
09
Provisional
Assessment
33. 61 99 ASMT-10 to 12 Scrutiny of Returns

9. 34. 62 100 ASMT-13 Assessment of
Non-filers
35. 63 100 ASMT-14 & 15 Assessment of
Unregistered
Persons
36. 64 100 ASMT-16-18 Summary
Assessment
37. 65 101 ADT-01 & 02 Audit by tax
authorities
38. 66 102 ADT-03 & 04 Special Audit
39. 67 139-141 INS-01 TO 05 Power of
Inspection, Search
and Seizure
40. 68 55, 55A,
138A,B,C,D,E
EWB-01 to 06
and INV-1
Inspection of goods
in Movement
41. 73 142 DRC-01 TO 08 Determination of
tax not paid or short
paid or erroneously
refund or ITC
wrongly availed or
utilized for any
reason other than
fraud or any wilful
misstatement or
suppression of facts
42. 74 142 DRC-01 TO 08 Determination of
tax not paid or short
paid or erroneously
refund or ITC
wrongly availed or
utilized by reason of
fraud or any wilful
misstatement or
suppression of
facts
43. 76 142 DRC-01 TO 08 Tax collected but
not paid to
Government
44. 79 143-160 DRC-09 TO
DRC-19 &
DRC-24
Recovery of Tax

10. 45. 80 158 DRC-20 & 21 Payment of tax and
other amounts in
instalments
46. 83 159 DRC-22,22A,
23
Provisional
attachment to
protect revenue in
certain cases
47. 84 161 DRC-25 Continuation and
Validation of certain
recovery
proceedings
48. 88 160 DRC-24 Liability in case of
company in
liquidation
49. 90 153 Liability of partners
of firms to pay tax
50. 95 103 Definitions
(Advance Ruling)
51. 97 104 ARA-01 Application for
advance ruling
52. 98 105 Procedure on
receipt of
application
53. 100 106, 107A ARA-2 & 3 Appeal to Appellate
Authority (Advance
Ruling)
54. 107 108-109A APL-01 to
APL-03
Appeals to
Appellate Authority
55. 108 109B RVN-01 and
APL-04
Powers of
Revisional
Authority
56. 111 112 Procedure before
Appellate Tribunal
57. 112 110-111 APL-05 TO 07 Appeals to
Appellate Tribunal
58. 113 113 APL-04 Orders of the
Appellate Tribunal
59. 116 116 Appearance by
Authorised
representative
60. 117 114-115 APL-4 and
APL-08
Appeal to High
Court

11. 61. 129 MOV-01 to
MOV-11 and
DRC-10
Detention, seizure
and Release of
goods and
conveyances in
transit
62. 138 162 CPD-01 & 02 Compounding of
offences
63. 140 44A, 117, 120A,
121
TRAN-01 &02 Transitional
arrangements for
ITC
64. 141 119, 120A TRAN-01 Transitional
provisions relating
to Jobwork
65. 142 118, 120-120A TRAN-01 Miscellaneous
Transitional
Provisions
66. 171 122-137 Anti-profiteering
measure
67. 174 142A DRC-07A,
DRC-08A,
PMT-01
Repeal and savings
(Recovery of dues
under existing laws)

12. No. of Amendments made in CGST alone
Type of
amendment
Years Total Remarks
2017 2018 2019 2020 2021 2022 2023
No. of times
CGST Act
was amended
- 1 1 1 1 1 1 6 No. of
times, Act
was
amended is
only
presented
here and
NOT the
number of
provisions
amended
Non-tariff
notifications
including rule
amendments
75 79 78 95 40 28 9 404 No. of
times the
rule
provisions
were
amended
by each
notificatio
n is only
presented
here and
NOT the
number of
amended
provisions
in Rule
Rate
amendment
notifications
47 30 29 5 22 11 4 148
Circulars 27 60 52 14 25 20 3 211
Instructions 1 0 5 3 7 8 0 24
Removal of
Difficulty
Orders
11 4 2 1 0 1 0 19
Forms 193 No. of
forms are
only given
here and

13. NOT the
number of
times the
forms were
amended
Compensation cess rules were amended 5 times till 2022 since advent of GST
and Compensation cess rates were amended 6 times.
IGST rules were amended 29 times and rates amended 151 times (not all of
them were parimateria with CGST).