GST is an indirect tax levied on the supply of goods and services. It has replaced multiple indirect taxes and aimed to simplify the indirect tax system in India. GST is charged on the final consumer but collected at each stage of supply. Supply includes sale, transfer, exchange and other transactions done in the course of business for consideration. Certain activities such as permanent transfer of business assets and supplies between related parties are treated as supply even if made without consideration under GST.

2. It is referred to as Goods and Services Tax because it is applicable on the supply of both Goods and
Services.
GST was introduced to replace multiple indirect taxes levied by State and Central Governments in order
to simplify the indirect tax system. It has replaced almost 17 of the existing state and central indirect
taxes such as central excise duty, additional customs duty, VAT, entertainment tax, service tax etc.
GST is an indirect tax whose burden is levied on the end user or final consumer.

6. Supply includes sale, transfer, exchange, barter, license, rental, lease and disposal. If a person undertakes either of these transactions
during the course or furtherance of business for consideration, it will be covered under the meaning of Supply under GST.
Examples:
 Mr. A buys a table for Rs.10,000 for his personal use and sells it off after 10 months of use to a dealer. This is not considered as
supply under CGST as this is not done by Mr. A for the furtherance of business
 Mrs. B provides free coaching to neighboring students as a hobby. This is not considered as supply as this act is not performed for a
consideration.

7. 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 1[person] from a related person or from any of his other establishments outside India, in the course or
furtherance of business.

8. 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 Legislature, Members of Panchayats, Members of
Municipalities and Members of 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.

9. 7. 1[Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods
entering into India.
8. (a) Supply of warehoused goods to any person before clearance for home consumption;
(b) Supply of goods by the consignee to any other person, by endorsement of documents of title to the goods, after the goods have
been dispatched from the port of origin located outside India but before clearance for home consumption.]

11. GTA
(Goods
Transport
Agencies)
Services
Legal Services
by advocate
Services by way of
renting of residential
dwelling for use as
residence
Import of
Services

13. ‘Input Tax Credit’ or ‘ITC’ means the Goods and Services Tax (GST) paid by a taxable person on any purchase of goods and/or services
that are used or will be used for business.
Conditions to Claim ITC
Possession of
related Document
Goods/Service
should be
Received
Tax Should be Paid
to Government
Return should be
Filed u/s 39

14. Case Particulars Dr. Cr.
1. Normal Purchase Expense/Asset Ac 10,000
Input Tax Credit Ac./GST Input Ac. 1,800
To XYZ Pvt. Ltd. (Vendor) 11,800
2. RCM Purchase Expense Ac. 10,000
Input Tax Credit Ac./GST Input Ac. 1,800
To XYZ Pvt. Ltd. (Vendor) 10,000
To GST Tax Liability Ac./GST Output
Ac.
1,800
3. Sale ABC Pvt. Ltd. 11,800
To Sale 10,000
To GST Tax Liability Ac./GST Output
Ac.
1,800

15. Documents under GST
Tax Invoice Bill of Supply Credit Note Debit Note

17. ‘E-Invoicing’ has been introduced for
reporting business to business (B2B)
invoices to GST System for certain notified
category of taxpayers.
It is applicable if the turnover of a person
exceeds 5 cr. In any financial year from FY
2017-2018. (Applicable from 1st August’23)

18. ‘E-way Bill’ has been introduced in order to monitor the
movement of goods for controlling any tax evasion. It is a
electronic document generated on GST portal evidencing
movement of goods.
Whenever there is a movement of goods with
value of exceeding 50,000:
 In relation to supply; or
 For reasons other than supply; or
 Due to inward supply from unregistered person.

19. Returns under GST(Monthly)
GSTR-1
(Contains the details of output lability
and Sale for the period)
Due Date - 11th of Next month
GSTR-2A & 2B
(Contains the details of input tax credit
and purchase for the period from
GSTR-1 of Supplier)
Generated on 13th of next month
GSTR-3B
(Contains the details of self-assessed
tax liability for the period, Calculated
by the person)
Due Date - 20th of next month

20. TDS or Tax Deducted at Source is income tax reduced from the money paid at the time of making
specified payments such as rent, commission, professional fees, salary, interest etc. by the persons
making such payments.
Example:
Shine Pvt Ltd make a payment for office rent of Rs 80,000 per month to the owner of the property. TDS is
required to be deducted at 10%. Shine Pvt ltd must deduct TDS of Rs 8000 and pay the balance of Rs
72,000 to the owner of the property.
Particulars Dr. Cr.
Owner
Dr.
80,000
To TDS Payable 8,000
To Bank 72,000

21. S.No. Section Description Rate Limit
1 Section 192 Payment of salary Normal Slab
Rate
Tax Slab
2 Section 194A Income by way of interest other than
"Interest on securities"
10% 5,000
3 Section 194C Payment to contractor/sub-contractor
a) HUF/Individuals
b) Others
1%
2%
30,000(One time)
Or
1,00,000
4 Section 194H Commission or brokerage 5% 15,000
5 Section 194I Rent
a) Plant & Machinery
b) Land or building or furniture or fitting
2%
10%
2,40,000
6 Section 194J Fees for professional or technical services 10% 30,000
7 Section 194Q Payment for purchase of goods of the
aggregate value exceeding Rs. 50 lakhs
0.1% 50,00,000
8 Section 194R Deduction of tax in case any benefit or
perquisite is provided and aggregate value of
such benefit/perquisite
10% 20,000

22. Returns under TDS
Form 24Q
TDS on Salary
Form 26Q
TDS on all payments made to
residents except salaries
Form 27Q
TDS on all payments made to
non-residents except salaries

23. TDS deducted in the month of Assessment month must be paid to the government by the 7th of next
month. However, the TDS deducted in the month of March can be deposited till 30th April.
S.No. Period Due Date
1 Q-1 (Apr-Jun) 31st July
2 Q-2 (Jul-Sep) 31st Oct
3 Q-3 (Oct-Dec) 31st Jan
4 Q-4 (Jan-Mar) 31st May

24. Tax collected at source (TCS) is the tax collected by the seller from the buyer on sale so that it can be
deposited with the tax authorities. [Section 206C of Income Tax Act]
Under TCS, certain persons are required to collect a specified percentage of tax from their buyers on
exceptional transactions. Most of these transactions are trading or business in nature. It does not affect
the common man.
Example:
Shine Pvt Ltd bought scrap from Icon Pvt. Ltd. of Rs 1,00,000.
In Books of Icon Pvt. Ltd.
Particulars Dr. Cr.
Shine Pvt. Ltd.
Dr.
1,01,000
To TCS Payable 1,000
To Sale 1,00,000

26. TCS deducted in the month of Assessment month must be paid to the government by the 7th of next month.
Return to be filed – Form 27EQ
S.No. Period Due Date
1 Q-1 (Apr-Jun) 15th July
2 Q-2 (Jul-Sep) 15th Oct
3 Q-3 (Oct-Dec) 15th Jan
4 Q-4 (Jan-Mar) 15th May