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Suppy Under GST
1
fjlimpse
→ Sec 7 (1)(a)
Sec 7 (1) (aa)
Sec 7 (1)(b)
Sec 7 (1) (c)
→ SH I, SH II, SH I I I
→ Composite & mixed supply.
W h a t is fjST ?
- fjST is a Tax (Indirect Tax)
- which is imposed on
- (1) Supply of (2) goods (3) Services
both for (4) consideration
1.SUPPLfj
 Sec7 (
1
) (a) :→ Supply
- Al l the forms of supply of goods / services I both such as :- [Key -BEST L2DR]
→ B Barter
→ E Exchange
→ S Sale / services
→ T Transfer of Business Assets
→ L1 License
→ L2 Lease
→ D Disposal of Business Assets
→ R Rent, etc..
for a consideration.
i n course or furtherance of business
 Sec 7 (1) (c) : → Supply without Consideration
The activities specified i n schedule I made without a consideration. (If i n course
of Furtherance of business) :→ [Key :- DRP]
D DISPOSAL / Permanent trf of Business Assets (If ITC has been availed)
R Transaction between Related Parties/ Distinct Person e.q.(branch)
P Transaction between Principal & Agent
 Sec7(1) (b) → Import Service
→
→
Importation of service
for a consideration
→ whether or not i n course of furtherance of business.
02 SUPPY UNDER GST
Suppy Under GST 2
 Sec7(1) (aa) : → Supply Between AOP / BOI TRUST etc & his member
- The Activities or transactions, by a person other than an indivisual (eg:
AOP/ BOI/ Club), to its members or constituents or visa versa for cash,
deferred payment or other valuable Consideration
2. f j O O D S [U/S 2(52)]
- Every ki nd of movable property
Includes :
Actionable claims
e.g.
•
•
Transfer of unsecured Debt
Insurance Debt
•
•
Right to arrears of Rent
Lottery
→
→
• fjambling / Betting / Online money gaming & etc
fjrowing crops
fjrass and things attached to or forming part of the l and which are
agreed to be severed before supply or under a contract of supply.
Excludes :
→ Money-But shall not include any currency that holds numismatic
value ( e.g.antique coins)
→ Securities.
e.g. sale / purchase of shares debentures derivative bonds, etc.
3. SERVICES [U/S 2(102)]
- Anything other than goods.
- Includes
•
•
use of Money ( ie. Interest received on loan)
conversion of money by cash or any other mode for which a
seperate consideration is charged ( i.e. foreign currency converted
into INR)
NOTE: Services include facilitating as arranging transaction i n
securities e.g.booker charges.
Suppy Under GST
3
CONSIDERAT I O N
Payment i n money or
otherwise for supply
By the recipient or any
other person
Excluding subsidy given by
Central/State fjovernment
Monetary value of any act
or forbearance for the supply
NOTES : Deposit to be considered as payment O N L f j W H E N the supplier
applies such deposit as consideration for the said supply.
BEST L2DR
Import Service
furtherance of
business
No Supply
No Supply
No Supply
Supply
N O
f j es
f j es
f j es
N O
N O
N O
(i..e. non-refundable deposit or deposit adjusted against rent)
Summary Chart
N O
Consideration
N O
fjes
I n course or
f j es
* SUPPLfj W I T H O U T CONSIDERATION - Sec 7 (1)(c) + SHI
[Key :- DRP]
D Diposal of Business Assets
Permanent Transfer / Disposal of Business Assets, if ITC has been
availed
E.g. A cloth retailer gives from his business stock to his friend free of cost
If ITC has been availed If ITC has not been availed
Deemed Supply No supply
Suppy Under GST 4
Analyses :-
Treatment of Transfer of Assets
ITC Availed
×
Consideration
×
Supply
×
× 7(1) (a)
× 7 (1) (c) + SHI
7 (1)(a)
R 
Supply Between Related Person or Distinct Pearson:-
Supply of goods or services or both between related person or between
distinct person will qualify as Supply if it is made i n the course or
furtherance of business
1. Related Persons:
i)
ii)
Employer & employee
members of the same family
→ Spouse, son, daughter (dependend or independent)
→ Parents, fjrand-Parents, Brother, sister (only if wholly dependent)
fjift
` 6 0 , 0 0 0
Supply
M r A
M r B
M r C
iii) Others
Example :-
fjift - 4 0 , 0 0 0 - No Supply
** Supply if gift > 5 0 , 0 0 0
Employer
fjift
2 0 , 0 0 0
(ITC has been
availed)
N O TE: Employee & employer are considered related party.
→ fjifts not exceeding ` 5 0 , 0 0 0 i n value i n a financial year by
an employer to employee shall not be treated as supply of goods
as services or both.
Suppy Under GST
5
2. Distinct Person
More than one
registered branches
or permises under
common PAN i n a
state / U T
Branch or premises i n
more than one state / U T
Whether registered or not
Treated as districts person
ANALfjSIS of 7 (1) (b) +7 (1) (c)
f j es
Import service
Consideration Available
No
yes Supply
Parties are related part No No supply
I n course or furtherance of business yes Supply
(Recipient used such services for Business purposes)
No
No Supply
P Principal Agent Relationship & visa Versa
Supply of goods (no service) between principal and agent without
consideration is also supply.
Example :-
Principal
Tax invoice issued
by principal
Tax invoice issued by
the agent i n his name
Agent Third party
Supply
sells
Receives
* SCHEDULE I I I of CfjST Act 2017 :- No Supply
(Negetive list)
Activities that are neither supply of goods nor services. [Key :- C2 HAIFEN]
Suppy Under GST 6
C1. Constitutional Authority or chairperson of fjovernment Bodies
→ Functions/ Duties performed by:-
M P
•
• M L A
Member of panchayat
•
• Member of municipalities.
Member of local authorities
•
•
•
fjovernor of stale
C & A f j ( Controller & Auditor fjeneral) Chairperson / Director i n govt
body or body of local authority etc.
e.g. Chairperson of IRDA / I M I D C etc.
C2 Service provided by Court / Tribunal
→ services by any court, tribunal or consumer dispute redrescal commission
H. Supply of fjoods before removal for Home Consumption.
(i) supply of warehoused goods to any person before clearance for home
consumption
(ii) Supply goods by the consignee- (Importer) to any other person, after the
goods have been dispatched from the port of origin located outside Indi a
but before clearance for home consumptions
A Actionable claim
I n case of
I. Transfer of Immovable property.
No Supply
Otherwise → supply → fjST ✔ construction building
fjST x
No Supply
fjST x
Building Land
Where the entire consideration has been received
after issuance of completion certificate or after it’s
first occupation whichever is earlier after construction
Lottery betting & gambling,
online money fj ami ng etc
Supply of fjoods No Supply
fjST ✔ No fjST
Other than lottery ,betting, gambling,
online money & gaming etc
Suppy Under GST
7
Example :-
Date of OC/CC = 10th July 2023.
(i) M r. A → Advance Booking on 1 Ja n 21 `20 L
→ Balance Amt on 25th July 2023. `30L
* Builder will charge fjST on total amt. of `50L
(ii) Mr. B → Full Payment made on 10 Jan 22 ` 9 0 l
* Builder will charge fjST O N ` 9 0 l
iii) Mr. C → Full payment made on 31 July 23. `1 cr
* Builder cannot charge fjST from M r C on 1crbecause it is
covered under Schedule I I I
F Funeral, Burial, etc.
Services of funeral. burial, crematorium or Mortuary including transportation of the
deceased.
N supply from No n Taxable Territory
supply of goods from a place i n the non taxable territory to another place i n the
non-taxable territory without such goods entering into India.
E Services by a n Employee to the employer i n the course of or relation to
his employ ment
Service provided by a person to other person i n the capacity
Services by an employee to the employer i n the course of or relation to his employment.
Service provided by a person to other person i n the capacity
Employee
Not Supply
Supply
Directors Partners
Not Supply
Supply
Labourers Professionals Partner/Director
Remuneration
to partners/
Directors
Other than
employee
(Principal to
Principal)
Wages to Labourers
(including Seasonal
Labourers)
M a n a ging/
Whole time
Di rector
Part time Director (Non-
Executive Director)
O f fjovt. Body
(i.e. IRDA)
Not Supply O f Non-
fjovt. Body
(i.e. TATA)
It is a
Supply fjST
 100%
R C M
Salary to
Employees
(including Bonus
and fjratuity)
Suppy Under GST 8
Note:
Perquisites provided in terms of contractual agreement to employee – not liable to fjST
Circular No. 172/04/2022 fjST dated 06.07.2022
perquisites provided by the employer to the employee i n terms of contractual agreement
entered into between the employer and the employee will not be subjected to fjST.
Example:-
Mr. A
Mukhesh
Akash
Sitting fees ` 5 0 , 0 0 0
Remuneration.
` 2 , 0 0 , 0 0 0
Supply → Tax (RCM)
TDS U / S 194 J of IT Act 1961
TDS U/S 192 of IT Act 1961
No Supply
Supply
Tax - (RCM)
TDS U/S 194 J of It Act 1961
Managerial
Remunaration
Sitting Fees `50k
+
TDS U/S 192
No Supply
(Part time
Director)
S
R
R
R
S
Consideration
S
Suppy Under GST
9
Example:-
(Constitutional
Authority)
ABC Firm
Reliance
CA i n job
CA Labour
Partne
r
SH
I
I
I
Job
SH
I
I
I
S
R
R
S
S
S
S
S
R R
R
IRDA
* SH I I Activities to be treated as Supply of fjoods or
supply of services. [Sec 7 (1A)]
1. Transfer of Assets
Immediate Transfer
Transfer of title
Supply of goods
Supply of goods
Supply of service
Transfer of right i n good
without transfer of title
(i.e. lease/rental etc.)
Deferred Transfer (e.g Hire purchase
Suppy Under GST 10
Land
Any lease, tenancy, easement,
License to occupy l and
Any lease or letting out of the
building
Building
2. Land & Building
Supply of Service
3. Treatment or Process
→ Any treatment or process which is applied to another person’s goods is Supply of
Service.
4. Supply of Service
Renting of
Immovable Property
Agree to obligation. to refrain
from an Act or situation or to
do an act or to tolerate an Act
eg 1. Non-compete fee
2. Compensation of contract
Development. Design. Program-
ming. customization, Adapta-
tion. Up gradation. Enhance-
ment, Implementation of IT
Software
Transfer of rights to
use of any goods for
any purpose (Renting
of movable property
Construction of complex
civil structure building. etc.
(before CC/OC)
Temporary transfer or
permitting the use of IPR
(eg trademark, royalty )
5. Composite Supply
O f any immovable property
Supply of Service
Works contract Restaurant
Building, Construction, Installation,
Fittings out. Fabrication, Improvement,
Completion, Modification, Erection,
Renovation, Alteration, Commissioning
Catering contract supply of food & other
articles. other than alcoholic liquor for
h u m a n consumption etc.
Supply of Service
Suppy Under GST
1
1
6. Supply by AOP/BOI/ To his members.
• IF AOP/BOI club etc. supplies goods to its member for consideration → Supply of
fjoods
• IF AOP/BOI/club etc. supplies service to its members, → supply of service.
7. Transfer of Business Assets
Transfer O r disposal
of business assets
Supply of fjoods
Private use of Business
Assets
Supply of Service
Person who cease to be tax-
able person i.e. Cancellation.
of registration or Shutdown
of business
Supply of Service
Exceptions:-
No fjST will be levelable i n the following cases.
1. Transferred as going concern
2. Business is carried on by a personal
representative who is deemed to be
a taxable person:
Transfere of Business
Assets
* Composite Supply v/s Mixed Supply
Composite Supply Mixed Supply
- Comprises of two or more taxable supplies - Two or more individual supplies
-Naturally bundled i n ordinary course of - For a single price where such supply does not
business constitute a composite supply
- One of which is a principal supply - Individual supplies are independent of each
other & are not naturally bundled
- Tax rate of principal supply - Tax Rate, Highest Rate of Tax
Suppy Under GST 12
Summary :-
one is principal element
&
other supplies depend upon the
Principal element
Mixed Supply
Rate of fjST = highest rate
Composite supply
fjST Rate :Rate of Principal
element
No mixed
No composite
fjes
Price → single price shown i n invoice
fjes
No
No
* Important clarification Issued by CBIC
1. Transfer of Tenancy Rights / Pagadi
- Supply of Service & liable to fjST (Subject to exemption notification)
- Transfer of Tenancy Rights cannot be treated as sale of l and or
Building.
- Stamp duty & registrations charges are levied on such transfer of
Tenancy rights
- Service provided by outgoing tenant by way of surrendering the
tenancy rights against consideration i n the form of portion of
tenancy premium → liable for fjST
2. Priority sector Lending Certificates (PSLCS)
Priority Sector
Lending Certificate
supply of fjoods
as per RBI FAQ’s
3. Supply of Printed Books, Pamplets, Brochures, Enevelops, etc
- If content supplied by the recepient of supply → Supply of Service
- If content belongs to the supplier → Supply of fjoods
NOTE :- Supply of service / fjoods depends upon the principal element
4. fjST on Superior kerosine oüs (SKO)
- Retained by receipient will be qualified as supply
eg: If 2 0 0 Ltr transferred by supplier & only 30Ltr are retained
by receipient. then supply is is a only of 30L
Supply
a) Supplier removing
2 0 0 l to recipient
b) Recipient
retaining 3 0 l
c) Recipient
returning 170l
No Supply No Supply
Suppy Under GST
13
5. Inter-State Movement of Various Modes of conveyance
- Inter state movement of various modes of conveyance between distinct
persons including trains buses, trucks, tankers, trailers, vessels, containers
aircrafts
(i) Carrying goods or passengers or both or
(ii) For repairs and maintenance cexcept i n the cases where such
movement is for further supply of the same conveyance shall be
treated neither as a supply of goods nor supply of service. → for
service,
Example
• Bus/Truck → for Service
• Value of Bus = 80L
• Value of servicing charged
by M f j service center - 5L
M f j tours & transport
mumbai
M f j Service Center
(Surat)
Impact:-
1. Bus/Truck sent to M f j service center for repair → No supply → N O
fjST on 80L
2 . M f j Service center charged 5L for repair → Supply of service → fjST
on 5L
5. Clarification on scope of principal and agent relationship under Schedule I
of CfjST Act i n the context of del credere agent (DCA)
Whether a D C A falls under the ambit of agent under Para 3 of Schedule I
of the CfjST Act?
» It depends on the following possible scenarios:
• I n case where the invoice for supply of goods is issued by the supplier
to the customer, either himself or through DCA, the D C A does not
fall under the ambit of agent.
• I n case where the invoice for supply of goods is issued by the D C A i n
his own name, the D C A would fall under the ambit of agent.
6. Treatment or sales promotion scheme under fjST
C A S E 1.If D C A is not a n Agent as per Schedule I
Issue Clarification
Whether the temporary short-term Interest on Loan Supply of Service
transaction-based loan extended by the D C A Supplier
D C A to the recipient (buyer), for which Interest would not form part of the Value
interest is charged by the DCA, is to be of Supply of fjoods supplied by the supplier.
included i n the value of goods being
supplied by the supplier (principal).
Suppy Under GST 14
→ CASE 2. If D C A is an Agent as per Schedule I
Issue Clarification
D C A makes payment to the
principal on behalf of the
buyer and charges interest
to the buyer for delayed
whether the
interest will form part of the
value of supply of goods also
or not?
Value of Interest:
1.Not Independent Supply
2. It is a part of Value of fjoods as per section 15(2)(d)
The activity of extension of credit by the D C A to the
payment along with the recipient would not be considered as a separate supply
value of goods being supplied, as it is i n the context of the supply of goods made by
the D C A to the recipient.
The value of the interest charged for such credit would
be required to be included i n the value of supply of
goods by D C A to the recipient as per section 15(2)(d) of
the CfjST Act.
6. Treatment of sales promotion schemes under fjST
[A]
If covered under Schedule I of CfjST
ACT
If not covered under Schedule I of
CfjST ACT
FREE SAMPLES A N D fjIFTS
Supply No Supply
[B]
Composite Supply Mixed Supply
B U f j O N E fjET O N E FREE
OFFER
Single Price is charged for 2 items
or
fjST is leviable
7. State fjovernment provides services by way of grant of alcoholic license, against con
sideration - No Supply.
8. Services by way of display of name or placing of name of the plates of the donor i n
the Premise of charitable organisation receiving donation or gifts from Individual
Donor’s.
Suppy Under GST
15
If the following conditions are satisfied
• fjift or Donation is made to a charitable organization
• The payment has the character of gift or donation
• The purpose is philanthropic (i.e. it leads to no commercial gain)
• A n d not advertisement
fjST is not leviable
9. Clarification regarding fjST applicability on liquidated damages, compensation
and penalty arising out of breach of contract or other provisions of law [Circular
Agreeing to the obligation
to refrain from an act
Agreeing to the obligation to
tolerate an act or a situation
Agreeing to the
obligation to do an act
No. 178/10/2022 fjST dated 03.08.2022]
Expression “Agreeing to the obligation to refrain from an act or to
tolerate an act or a situation, or to do an act” has three limbs
a) Agreeing to the obligation to refrain from an act: - Non-compete agreements
b) Agreeing to the obligation to tolerate an act or a situation: - Shopkeeper allowing
a hawker to operate from the common pavement i n front of his shop against a
monthly payment by the hawker.
c) Agreeing to the obligation to do an act: - Industrial uni t agrees to install
equipment for zero emission/discharge at the behest of the RWA of a
neighbouring residential complex against a consideration paid by such RWA
• Above three activities must comply with the following conditions:
1. There must be an expressed or implied agreement or contract must
2.
exist
Consideration must flow i n return to this contract/agreement
A. Liquidated Damages
Liquidated damages No agreement
Compensate for injuring loss or damage
N O fjST Not constitute consideration Compensation is only flow of money
Examples of such cases are:
1. damages resulting from damage to property, negligence, piracy, unauthorized use of trade
name, copyright,
2. penalty stipulated i n a contract for delayed construction of houses,
3. forfeiture of earnest money by a seller i n case of breach of ‘an agreement to sell’ an
immovable property by the buyer
Suppy Under GST 16
B. Cheque dishonour fine/ penalty
Such penalty imposed not for tolerating the Act No consideration N O fjST
C. Penalty imposed for violation of laws
E.g – Penalty for traffic violations, or for violation of pollution norms
Not constitute consideration
N O fjST
D. Forfeiture of salary or payment of bond amount i n the event of the employee leaving the
employment before the m i n i m u m agreed period
penalties for dissuading
Employer – forfeiture of salary of employee or recovery of bond.
It’s penalty for non-serious employee
Employee does not get anything i n return from the
Employer
employer against payment of such amount
Not taxable
E. Late payment surcharge or fee
The facility of accepting late payments with interest or late payment fee,fine or penalty
is a facility granted by supplier naturally bundled with the m a i n supply.
it should be assessed at the same rate as the principal supply.
F
. Fixed charges for power
m i n i m u m fixed charges/capacity charges and the variable/energy charges are charged for
sale of electricity and are thus not taxable as electricity is exempt from fjST.
fj. Cancellation charges
The facilitation service of allowing cancellation against payment of cancellation charges is
also a natural part of the bundle.
For example: cancellation charges of railway tickets for a class would attract fjST at the
same rate as applicable to the class of travel (i.e., 5% fjST on first class or air-conditioned
coach ticket and ni l for other classes such as second sleeper class). Same is the case for air
travel.
1
Charges to GST
fjlimpse
I.
II.
Nature of Supply (Inter State / Intra State)
Who is liable for payment of tax?
III.
(FCM, RCM, Eco)
Composition Scheme U/S 10. UlS 10(2A)
N O
INTER STATE INTRA STATE
IfjST
Place of supplier
&
Place of Supply in Same State/
same U T
• Supply of goods to foreign Tourist
OR
• Supply To/ By SEZ
yes
yes N O
CfjST + SfjST/
UTfjST
NOTE: Export / Import of fjoods / Service / Both
↓
Always treated as INTER STATE
Example:- 1
Place of Supplier = Maharashtra
Place of Supply = Delhi
M r A
M a h a rashtra
M r B
Delhi
Inter State
IfjST
Example:- 2
Place of Supplier = M a h a rashtra
Place of Supply = Maharashtra
M r A
M u m b a i
( M a h a rashtra)
M r B
Pune
( M a h a rashtra)
Intra State
CfjST & SfjST of Maharashtra
03 CHARGES TO GST
I Nature of Supply
2
Charges to GST
Example :-3
Place of Supplier = D a m a n
Place of Supply = D a m a n
M r A
D a m a n
M r B
D a m a n
Example :-4
Place of Supplier = D a m a n
Place of Supply = chandigarh
M r A
D a m a n
(UT)
M r B
chandigarh
(UT)
Inter State - IfjST
Example :- 5
Place of Supplier = Punjab
Place of Supply = chandigarh
M r A
Punjab
(state)
M r B
chandigarh
(UT)
Inter State- IfjST
Example :-6
Place of Supplier = Delhi
Place of Supply = Delhi
M r A
Delhi
M r B
Delhi
Intra State
CfjST + SfjST of Delhi
NOTE:
State includes a Uni on Territory with Individual Legislature.
Delhi, Puducherry Jammu & Kashmir have their own individual
Legislature and hence covered under State fjST Law.
Intra State
CfjST +UTfjST
3
Charges to GST
B Reverse Charges Mechanism
u/s 9(3) of fjST Act
R C M
uls 9(4) of fjST Act
(Not Imp)
Not Applicable
fjoods on which R C M
will be Applicable
Services on which R C M
will be applicable
Most Important
Under this provision, tax under
reverse charge is payable by the
N O TIFIED class of registered
persons on NOTIFIED categories
of supplies of goods and/or services
received by such registered persons
from any unregistered supplier
Example:
A developer purchased cement
from unregistered person [If
developer charged fjST on sale of
flats @1%/ 5%]
* Specified Services on which Tax Payable by Recipient under RCM, If location of Recipient is
Taxable Teritory
1. Services provided by fjTA to Specified person
Supplier = fjTA (fjoods Transport Agency)
Recipient
Exempt→ Entry
Note :-
IF fjTA provides.
services to fjovt Dept,
fjovt Agency,
If recipient is registered only
for
deducting TDS
other than 7*
7*
Taxable Exempt →Entry ( N O fjST) 21B
1) Registered Factory
2) Registered Society
3) Registered Cooprative Society
4) Registered person under fjST Act→
(Except: fjovt Dept / LA | fjovt. Agencies
which is registered. only for deducting TDS)
5) Registered casual Taxable Person
6) Partnership Firm (Reg/ Unreg)
7) Body Corporate
I I Liability to Pay Tax on :
A] Supplier [FCM]
B] Recipient [RCM]
C] ECO [in CA Inter 4 cases Applicable U/S 9(5)]
4
Charges to GST
Services
(fjTA)
Note 2 I n case of fjTA
(1)If Q is silent → Rate of fjST = 5% & R C M
(2)If Q says Rate of fjST is 5%. & fjTA is URP → R C M
(3)If Q says fjTA Opts for F C M → F C M
(fjST Rate @ 12%/ 5%)
Example :-
M f j Transport
Provide Transportation
Bhoomi & Co.
(Firm)
Value of Service 1l
→ If M f j opted for F C M
- M f j collect value 1 L + fjST from Bhoomi & Co. & M f j will pay
such fjST A m t to fjovt
BUT
→ IF M f j opted for R C M -
- M f j collect only value of services ₹1Lfrom Bhoomi & Co. &
Bhoomi & Co. will pay his fjST Liability directly to fjovt
Example :-
Exempt 21 A
Rel Ltd (RP)
F C M
R C M
R C M
Opted
F C M
Opted by
fjTA
fjovt Dept
(RP for deducting TDS) only
BE (URP)
Tax
M R A
( N O N BE)
fjTA
5
Charges to GST
2 & 3 Legal Services
No
Exempt - Entry 45
CASE I
:- Services provided by
- Senior Advocate
- Other than Senior Adv
- Firm of Advocate
- Arbitral Tribunal
If Recipient is
• fjovt
• LA = Local Authority
• fjE =fjout Entity
• fj A= fjout Authority
• Non Business Entity
(legal services used
for personal purpose)
yes
Tax = R C M
IF Pfj TO of BE  Threshold
l i mi t of registration
(10L ,20L ,40L)
Business Entity (BE)
Supplier
↓
Senior Advocate
•
Recipient
Advocate
or
• Firm of Advocate
yes
Exempt Taxable - R C M
No
If Pfj To Recipient  Threshold Limit of Registeration
CASE I I
Supplier
↓
- other than Senior Advocate
or
-Firm of Advocate
Recipient
↓
Advocate
or
Firm of Advocate
Exempt
CASE I I I
6
Charges to GST
Example :-
Advocate BE (Pfj TO  TSL)
BE (Pfj TO > TSL)
N O N BE
Exempt R
R
R
fjout/LA/fjE/fjA
Tax (RCM)
S
S
(Senior)
S
4. Sponsorship services.
Supplier = Any Person
Recipient - Partnership Firm
- Body Corporate
Example
Reliance
Ltd
(Sponsor)
ABC Firm
(Sponsor)
Dance
Indi a
Dance
XfjZ Co.
(Show
O rganiser)
M r Ram
R
R
R 5OL- R C M → Tax liability
on Rel Ltd
10L + fjST - F C M
Tax liability on xyz Co.
30L (RCM) - Tax Liability
on ABC Firm
S
S
S
6. Services supplied by a Director
Di rector
Supplier
Recipient Company or Body Corporate
↓
R C M
N O TE: IF TDS deduct u/s 192 OF IT Act - No Supply → No fjST (WTD or M D )
7
Charges to GST
7 Insurance Agent
Service service supplied by Insurance Agent
Supplier
Recipient
Insurance Agent
Any person carrying on Insurance Business
Example
M r A
(Insurance
Agent
LIC
fjovt
commission 1OL
R C M
fjST under
R C M
S R
8. Services supplied by a Recovery Agent
Supplier
Recipient
Recovery Agent.
Banking co, Financial Institution , Non-Banking Financial Co.
Example
Recovery Agent
(Supplier)
Bank/ FI/
NBFC
(Recipient)
Recovery of Dues (RCM)
Service of
S R
S
F C M
R
5B & 5C :-
Transfer of Transferable Development Right (TDR) / Long Team Lease (30 yrs or more) /
Additional Floor Space Index (AFSI)/ Floor space Index (FSI)
Supplier
Recipient
Any Person
Promoter / Developer
8
Charges to GST
Example :-
M R A
(Supplier)
TDR/AFSI/FSI | Long term lease
M f j Builder
CASE I.
1 cr [Consideration] (Recipient)
Suppose M f j Constructed Residential fats (100 flats) & sold such flats
before OC/CC for ₹ 12Cr
Impact: 1) fjST will be charged on sale of flats for ₹ 12 Cr
2) No fjST on 1 cr.
CASE 2 Suppose M f j Sold such flats after OC/CC for ₹ 15Cr
Impact: 1)No fjST will be charged on ₹ 15Cr (SH III)
2) M f j will be liable for payment of tax on ₹ 1Cr under R C M
CASE 3 Suppose M f j Sold 6 0 flats before O C/CC for ₹ 8 Cr & balance 4 0
flats sold after for OC/CC for ₹ 7Cr.
Impact: 1) 6 0 flats sold before OC/CC -fjST will be charged on 8 cr
2 ) 4 0 flats sold after OC/CC -fjST will not be charged on 7 cr
3 ) M f j will be liable for payment of Tax on (40% of (1cr) =
40L under R C M
A N D
M f j will not be liable for payment of Tax on (60% of 1cr) = 6 0 L
5A. Renting of Residential Dwelling
5A. Renting of Residential Dwelling
Supplier Any person
Recipient Registered person under fjST
Services Renting of Residential Dwelling
R C M
N O TE: If recipient is a registered person & if such property is used for own residence
(in personal capacity) → Exempt
(for personal use)
Example :-
(for co employee stay)
R C M
RP
for Personal Residence - Renting
Exempt
RP
9. Services by Music Composer, Photographer & Artist
Supplier Recipient
Music composer Original music Music Co
Photographer Original photograph Producer
Artist Original art work Producer
Example
S
4
1 R
S
R C M 2 F C M 5
M f j Royalty = 2L Royalty = 3L
Supplier ↓ +
(Music 18%fjST = 36 K 18%fjST = 54 K
Composer) ↓ ↓
Liability to pay Liability to pay fjST on TIPS
fjST→ on TIPS under F C M (beacause Tips
is not original composen)
3 6
fjST 54 k
36 k - 36 K
(RCM) 18 K credit
fjovt Dept
9
Charge to GST
10
Charges to GST
9A. Author - Supply of Service by Author
Supplier
Service
Author
permitting the use of enjoyment of copyright
Recipient Publisher i n Taxable Teritory
Publisher is liable
for payment of tax
under R C M
Author can be liable
for payment of tax
under F C M if
(i) Author has taken Registeration under fjST Act
(ii) Filed a declaration i n the Form at Annexure I to the fjST Commissioner
(iii) He shall not withdraw the option within a period of 1yr.
10. Supply of services by Members of overseeing committee to RBI
Example
OSC R C M F C M
RBI
Receipient
M f j
(Supplier)
Supplier
Members
of OSC
S
S R R
11. Di rect Selling Agent
Supplier
Recipient
Individual DSA (except body corp, partnership firm, LLP)
Bank, NBFC
12. Services provided by Business Facilitator to a banking company
Prabhas
(Agent of BF)
R C M
Ins Co.
(Mumbai)
S R
R
S
Bank
(Mumbai)
F C M
Ramcharan
(BF)
S
R
11
Charges to GST
13.Services provided by a n agent of Business correspondent to Business
correspondent
(BC)
R C M F C M
R
Agent of
BC
(KRK)
Ins Co.
(Mumbai)
S
R
R
S
SRK
F C M
Bank
(Mumbai)
14. Security Services.
→ Supplier Any person other than body corporate eg Indivisual, Firm, AOP, BOI
→ Recipient a registered person
Except 1Person who is registered only for deducting TDS or
→ Services
2 Person registered under composition scheme
services provided by way of supply of security personnel
Example :-
Reliance
Industries
Ltd
(body corp)
F C M
RP
S R
Example :-
M r A (RP)
(Supplier)
Exempt 66(B)-ch 4
A & Co.
(RP under composition Scheme)
Reliance I n d Ltd. (RP)
M & Co. (RP)
PQR School (URP)
fjovt Agencies
(RP only for deducting TDS)
12
Charges to GST
15. Renting of Motor Vehicles
Supplier - Any person other than body corporate
Recipient - Any body corporate
Services - Renting of motor vehicle designed to carry passangers
where the cost of fuel is included i n the consideration.
Condition:
Supplier does not issue an invoice charging fjST @ 12% (CfjST6% + SfjST/ UTfjST 6%)
It means if Tax Rate is
Example :-
M r x
(RP)
M r f j
(RP)
M r x
(URP
Rate 5%
= R C M
fjST@ 12% = F C M
A Ltd
R & Co.
R
R
R
R
S
S
S
S
16. Lending of Securities
Supplier Lender
Recipient Borrower
* R C M only under IfjST ACT
Any person i n Non Taxable Territory
Supplier
Recipient Other than non-taxable online recipient (It means recipient should
be a registered person)
Services O I D A R - Online Information Database Access A n d Retrival Services.
eg:- Online gaming, data services, movies, etc.
12%.. – F C M
5% - R C M
Do you Know ?
Supplier is URP & No Tax Invoice – R C M
13
Charges to GST
Example :-
URP (Non Taxable
Online Recipient)
TT
F C M
Netflix
(USA – NTT)
R S
R C M
Netflix
(USA – NTT)
R S
C] E-Commerce Operator (ECO)
E-Commerce Operator (ECO)
Tax liability on
ECO U/S 9(5)
4 Cases
Tax liability on original
supplier u/s 52
Al l other Cases
(Chp 12)
* Tax Payable by E-commerce Operator on Notified Services [uls 9(5) OF CfjST Act, 2017]
1
. Transportation of passengers by a radio-taxi, motor car, maxi cab, motor cycle,
omnie bus or any other motor vehicle
Eco is liable for the payment of Tax
Example :-
Owner of
Car
(Original
Supplier)
Passenger
(Original
Recipient)
OLA
= 8 0 0 0 fjST 5 0 0
Comm=20%
ECO
fjST 5 0 0
fjST Dept
2
80% of 10k value 10k
1
3
RP (other than No n
Taxable Online
Recipient) TT
14
Charges to GST
2. Accommodation for lodging or residential purpose i n hotels, inn,
guest house, campsite, etc.
3. Housekeeping such as plumbing, carpentering, etc.
If supplier is liablefor Registration
U/S 22 of CfjST Act
↓
Supplier is liablefor tax payment
If supplier is notliable for registration
U/S 22 of CfjST Act
↓
ECO is liable forpayment of Tax
Example For 2 :-
5 0 0 0 + fjST
= 8 0 0 0 O f j O fjST 5 0 0
1800
9 0 0
1 0 0 0 0 + fjST
1 1
Original
Recipient
Original
Recipient
ECO
URP owner
(original
supplier)
Hotel
(Original
supplier)
Com= 25%
2
2
3
fjST
= 9 0 0
3
fjST= 1800
fjST Dept
Example For 3 :-
M r B
(OR)
Urban
clap
` 6 0 0 0 + fjST 1080 ` 6 , 0 0 0 + fjST 1080
1 1
M r A
(OR)
comm = 20%
M r C
(URP)
ABC
Ltd
(OS)
fjST Dept
2
2
3
3
fjST
1080
fjST= 1800
15
Charges to GST
4. Restaurant Service Provided by eco (eg Zomato. Swiggy)
* IF ECO is operated outside I n d ia
If the Eco is i n TT
N O
N O
If ECO does not have
Physical presense i n TT
If Eco has neither
physical presense
nor any representative
i n TT
Tax paid by ECO
Tax to be paid by person
that is representing ECO
Tax to be paid by person
appointed by ECO for the
purpose of paying Tax
Restaurant
A B
fjes
Liability to pay tax on
original supplier
Restaurant +
Accommodation
O n l y Restaurant
Liability to pay
tax on Eco on
Restaurant Services
Declared
Traiff > ` 7 5 0 0
16
Charges to GST
U/S 10 U/S 10 (2A)
Manufacturer Trader Rrestorent
(Except manufacture
of notified goods)
Manufacturer & Trader can provide
Services but upto specified limit:-
Trader. Manufacture, Resto can avail
the benefit of composition scheme.
uls 10 if :-
Pfj A f j TO ≤150 Lakh/75 *lakh
* If any uni t situated i n
STNAM3 . UK, then PfjATO should be ≤ 75 lakhs
S
T
Skikkim
Tripura
N
A
Nagal and
Arunachal Pradesh
M 3
U k
Meghalaya, Mizoram, M a n i p u r
Uttarakhand
Any person which
is not eligible for
composition
scheme u/s 10
(Except
Manufacturer or
Notifled fjoods
service Provide Except
Resto Service)
Eligibility l i mi t
PfjATO ≤ 5 0 lakhs
H Composition schme U/S 10 & U/S 10(2A)
* C O M P O S I T I O N SCHEME
10% of Pfj TO of a State / U T w
or e
`5 , 0 0 , 0 0 0 h
N O TES:-
1. Meaning of Aggregate Turnover - ALL Outward Supplies
Except-
(1) Interest Received on LAD (Loan, Adv. Deposit)
(ii) fjST
(iii) Any Inward supply on which tax payable by Recepient under R C M
17
Charges to GST
eg 1. Details of M f j & Co. for Py 22-23
(Trader i n Mumbai )
-Intra state supply of :-
- Product P (fjST @18%) = 2 0 L
Q (fjST@12%) = 5 0 L
R (Exempt)
S (NIL Rated)
= 3 0 L
= 4 0 L
-Int Reed O n LAD (Exempt) = 12 L
-Advocate provide legal services.
to M f j & CO. on which tax liability
on M f j & C O under R C M (fjST @18%) = 1
1 L
(i) Compute ATO
(ii) IS M f j & Co Eligible for Composition Scheme uls 10 (for Fy 23-24)
(iii) Can M f j & Co. provide services. to Recipient after opting composition scheme
(1) ATO
1 Intra State Supply of Product P 2 0 L
2 Q 5 0 L
3 R 3 0 L
4 S 4 0 L
5 Int on LAD -
ATO 140 L
(ii) fjes. Eligible for composition Scheme because ATO is ≤ 150L
(iii) fjes, M f j & Co. can provide services but upto
specified l i mi t 10% of 140 L = 14L
or
5L
=14,00,000
eg2.
(Branch) → (mfg)
U n i t of M f j & C O PfjTO
U n i t I -
U n i t 2 -
M u m b a i
Delhi
25L
75L
U n i t 3- Jaipur 35L
→ATO OF M f j & C O = 25L + 75L+35L = 135L
→IS M f j & Co Eligible for composition uls 10.
= yes
* →Can M f j & Co. provide services)→ yes but
18
Charges to GST
Per state M u m b a i = 10% of 25 L
or = 5 , 0 0 , 0 0 0
5L
Delhi = 10% of 75L
or
5L
=7,50,000
Jaipur =10% of 35L 5 , 0 0 , 0 0 0
or
5L
17,50.000
⟹ Points to be Noted
1 Tax Rate
SN Cases
1. Mfgr u/s 10
CfjST
0.5% OF ATO
SfjST
0.5% of ATO
2. Trader u/s10 0.5% of Taxable
Supply
0.5% of Taxable
Supply
3. Resto o/s 10 2.5% of ATO 2.5% OF ATO
4 Other Service 3% OF ATO
Provider uls 10(2A)
3% OF ATO
eg 1.M f j Pvt Ltd Registered under composition- Scheme
Details of a quarter April 23 to June 23
- Intra State supply (fjST @12%.)
Intra State supply (fjST @18%)
= 5L
=10L
Intra State supply (Exempt) =20L
Intra State supply (Nil Rate)
- Int Reed on LAD
=8L
= 121
-Inward supply on which tax is payable
under R C M (fjST@ 18%)= 5L
(i)compute composition Tax Liability of M f j Ltd.
(li) compule Total Tax Lability of M f j Put Ltd
Presume M f j Pvt Ltd is a
a) Manufacturer
b) Trader
c) Resto
d) Registered u/s 10 (2A)
19
Charges to GST
Ans: computation of Tax liability of M f j Pvt Ltd.
(A)
Particulars M f r r Trader Resto 10 (2A)
Tax Rate 0.5%xATO 0.5% OF TS 2.5% XATO 3% ATO
Turnover
Intra State Supply (12%) 5 , 0 0 , 0 0 0
" (CfjST @18%) 1 0 , 0 0 , 0 0 0
5 , 0 0 , 0 0 0
1 0 , 0 0 , 0 0 0
5 , 0 0 , 0 0 0
1 0 , 0 0 , 0 0 0
5 , 0 0 , 0 0 0
1 0 , 0 0 , 0 0 0
2 0 , 0 0 , 0 0 0 -
" (Exempt)
" (NIL)
Interest O n LAD -
8 , 0 0 , 0 0 0 -
-
4 3 , 0 0 , 0 0 0 15,00,000
2 0 , 0 0 , 0 0 0 2 0 , 0 0 , 0 0 0
8 , 0 0 , 0 0 0 8 , 0 0 , 0 0 0
- -
4 3 , 0 0 , 0 0 0 4 3 , 0 0 , 0 0 0
(B) Total on which
Composition Tax will
be charged
(C) Composition Tax 21,500
21,500
7,500
7,500
1,07,500
1,07,500
1,29,000
1,29,000
CfjST→ A X B
SfjST → A X B 4 3 , 0 0 0 15,000 2,15,000 2,58,000
(D) Tax payable by N f j 9 0 , 0 0 0 9 0 , 0 0 0 9 0 , 0 0 0 9 0 , 0 0 0
Pvt Ltd under R O M
(18%OF 5L)
(E) Total Tax Liability 1,33,000 1,05,000 3 , 0 5 , 0 0 0 3,48,000
(C+D)
31. Aug 23
↓
ATO > 150L
↓
From 31st Aug 23.
Composition scheme.
holder will be converted
i n Regular Scheme holder
competition
Scheme
31/3/23 Regular
scheme
31-3-24
Py
ATO 120L
1-4-22
2. Composition scheme shall lapse with effect from the day on which
aggregate Tlo during Financial fjear exceeds limits specified
From 1.4.23
opt composition
scheme U/S 10
20
Charges to GST
3. composition Scheme to be adopted uniformly by all the registered
person having the came PAN
Example
M f j 1
(Pune)
CompositionScheme
M f j 2
(Delhi)
Regular Scheme
Not Allowed
4. composition Scheme Holder shall neither collect any tax from the
recipient on Supplies made by him, nor shall be be entitled to any
credit on input tax.
5. Inter State Supplies not allowed to Composition Scheme holder, but
no restrictions to procure goods / received Services from Inter State
Supplier.
6. Composition scheme holder shall mention the words "composition
Taxable Person" on sign board displayed at prominent place at his
principal place of Business & Additional Place of Business.
⟹ Persons who cannot opt for Composite Scheme u/s 10 /10(2A)
1. As per Section 10 a manufacturer or trader who provides services & the
value of service has exceeded Specified l i mi t
2. Person making non taxable supplies eg] Alchol, Petrol, Supplies under
Schedule I I I
3.
4.
Person making Inter-State supply of fjoods / Services
Manufacturer of Notified fjoods
Notified fjoods
a)
b)
ice cream, edible ice
Pan M a s a l a
c)
d)
Tobacco, Tobacco substitutes
Aerated water
e)
f)
Fly ash Bricks / blockS
Building bricks
g)
h)
bricks of fossil
earthen I roofing tiles, etc.
5.
6.
Non Resident Taxable Person / casual Taxable Person.
He is engaged i n making any supply of fjoods (Inter state supply) or services
through ECO, who is requried to collect tax at source u/s 52.
1
Place of Supply
fjoods Services
Supply within
Indi a
↓
U/S 10 of
IfjST Act
↓
Applicable i n
Exams
• Import
• Export
↓
U/S 1
1 of
IfjST Act
↓
x
LOS
&
LOR
↓
TT
↓
U/S 12 of
IfjST Act
↓
Applicable i n
LOS
&
LOR
↓
N .T.T
↓
U/S 13of
IfjST Act
x
↓
Chapter 5 – place of supply
Place of Supply
LOS = M u m b a i
Inter state
↓
IfjST = 10L X 12%
= 1.2 L
Reliance Ltd
(Supplier)
M u m b a i
M & C O
(Recpt)
Delhi
Exams
PARTI: U/S 10- supply of fjoods within I n d ia
Sec 10 (1)(a): Movement of fjoods
POS:- Location at which the movement of goods terminates
Example
fjoods = 1OL
fjST @12%
POS = Delhi
Sec 10(1)(b): fjoods are delivered on the Direction of third party
POS = The principal place of business of such third person
Example
Mr. M f j
(Mumbai)
Mr. Keju
(Delhi)
Mr. A
(Pune)
Invoice 1
Invoice 2
05 PLACE OF SUPPL
Y
2
Place of Supply
Transaction 1 Transaction 2
Supplier = M f j
Recipient = keju
Supplier = Keju
Recipient = M r M f j
POS = Delhi U/S 10(1)(b)
for ₹ 10 Lakhs
POS = Pune U/S 10(1)(b)
for = ₹ 12lakhs
IfjST (Inter State) IfjST (Inter State)
Sec10(1)(c): No movement of fjoods
POS = Location of such goods at the time of Delivery
Sec10(1)(d): fjoods are assembled or Installed
POS = Location where goods are assembled or installed.
Sec10(1)(e): where the goods are supplied on-board, a conveyance like
train, aircraft, vessel or motor vehicle
POS = The place where such goods are taken on board a conveyance
Sec10(2): where the place of supply of goods cannot be determined i n
terms of the above provisions → It shall be determined i n such
a manner as may be prescribed.
I I Supply of services where LOS & LOR is Taxable Territory [sec 12of
IfjST Act 2017]
* Summary
12(3) = Services Related to Immovable property/ House Boat
certain performance Based Services
12(4) =
12(5) = Training & Performance Appraisal Services
Entry ticket.
12(6) =
12(7) = Event Management | Sponsorship services.
Transportation of fjoods
12(8) =
12(9) = Transportation of passengers
Services on Board a conveyances
12(10) =
12(11) = Telecommunication services.
Banking services.
12(12) =
12(13) = Insurance Services
Advertisement for fjovt.
12(14) =
12(2) = fjeneral Provision / Default provision for other services.
3
Place of Supply
Note :
* I n following cases
POS: Location of Such Registered Person (Only if Recipient is a registered person)
Key: T3 IfjEr
T1
T2
Training & Performance Appraisal Services
Transportation of fjoods.
T3
Transportation of passenger
Insurance Services
I
f j
E
fjeneral provision
Event Management Sponsorship services.
Sec 12(3): Services Related to Immovable Property/ House Boat -
Example
Designers Engineers.
Surveyors, Right to use
immovable Property constn
related work
A
Architects, Interior
B
C
Accommodation for
organizing Marriage,
Reception, official, social,
cultural, religious, business
function, etc.
Lodging Accommodation by
way of Hotel, Inn, fjuest House,
Home Stay incl a house boat or
any other vessel
Any Services Ancillary
to A,B,C
D
Services :
W i t h i n Indi a
POS = Location where the
immovable property or boat or
vessel is located or intended
to be Located
Outside Indi a
POS = Location of Recipient
POS = If property is situated
NOTE: If immovable property/ house boat/ vessel located i n more than one state
4
Place of Supply
↓
Absense of Arrangement or contract
↓
POS = on reasonable basis as may be prescribed
↓
CASES Basis of Proportionate
1. Hotel, fjuest House & its Ancillary services etc. Number of Night’s stayed in such property
(not for marriage, reception, etc.)
2. Hotel, fjuest House etc. for marriage, reception Area of immovable property lying i n
OR each state / U T
If any immovable property cover more than
one state
3. House boat, vessel & their ancillary services Time spent by the boat or vessel i n each
state/ U T
Example 1
Taj Bangalore charged ₹ 1 0 , 0 0 0 / Night from M f j
POS = Bangalore ? Intra
Los = Bangalore ₹ 9 0 0 = CfjST O n 10k
₹ 9 0 0 = SfjST on 10k
Example 2
M f j provides services to Piyush for Interior Decorator service of Building i n Dubai
Inter → IfjST
M f j (delhi) Piyush (Surat) Dubai
POS = Surat
Los = Delhi
Example 3
Immovable Property cover more than one state
M r A
(Mumbai)
Paid 5 l → POS = Delhi
Paid 5 l → POS = M u m b a i
Delhi Taj
M u m b a i Taj
(i)
5
Place of Supply
Total a m t paid = 10L
M r A
(Mumbai)
2 nights
Delhi Taj
M u m b a i Taj
(ii)
3 nights
Total A m t Paid = 10L
Proportionate on the basis of night
M u m b a i 3 nights
A m t = 6 l
Delhi 2 nights
A m t = 4 l
← POS →
Sec 12 (4): Certain performance Based Services
1. Fitness & Health Services
2 cosmetic & Plastic Surgery
3 Beauty Treatment
4 Personal fjrooming
5. Restaurant & Catering services
POS = Location where service is. actually performed
Sec12(5): Training & Performance Appraisal Services
POS =
Recipient is RP (B2B)
↓
Recipient is RP (B2C)
↓
POS = Location of such
registered person
Location where such service
is actually performed.
Sec 12(6): Admission to a n Event (Entry Ticket)
e.g. Sporting Event, Educational event, fair, exhibition, amusement park. etc
Pos = Place where the event is actually held or where the park or other place is located.
6
Place of Supply
Sec 12 (7): Organizing a n event & ancillary services to organization of
event & assigning sponsorship to such events.
Recipient is RP
↓
Recipient is URP
↓
Event held
W i t h i n Indi a
↓
POS=Location where
the event is
actually held
POS: Location of such
Recipient
Outside Indi a
↓
Location of the
recipient
Note
* Event held i n more than one State & Consolidated amount charged
Reliance Ltd
(RP) (Mumbai)
Mr. A (URP)
(Surat)
Event manager
(RP i n Jaipur)
↓
Absence of contract or agreement
↓
The value is determined i n accord once with Rule 5 by the application of fjenerally
Accepted Accounting Standards
Example
POS = M u m
POS = M u m
Event i n Dubai
Event i n Delhi
POS = Surat
Event i n Dubai
Event i n Delhi
S
S
R
R
6l
6l
10l
POS = Delhi
8l
Sec 12(8): Transportation of fjoods including m a i l or courier
Recipient is RP
POS = Location of such
Registered person
POS = Place at which goods are
handed over to transporter
Recipient is URP
Note : Freight Changed for export of goods → POS = Destination of fjoods.
7
Place of Supply
Example
M r A (fjTA) Jaipur
Pos = M u m b a i
Pos = Delhi
fjoods handed over i n delhi
Mr. B (RP) M u m b a i
Mr. C (URP) Surat
fjoods handed over i n delhi
Sec 12(9) Transportation of passengers (Tickets)
Recipient is RP
POS = Location of such
Registered person
POS = Location where the passenger
embarks on the conveyance
Recipient is URP
Example
Mr. A ( RP Delhi)
Pos = Delhi From  To
Jaipur  Dubai
From  To
Jaipur  Dubai
Pos = Jaipur
Mr. B (URP Delhi)
S
M f j Airlines
(Mumbai)
S
R
R
Sec12 (10) Services on Board Conveyance
(If a mt is seperately charged for such services)
e.g.- D V D of games / movie on demand supplied by Airline to passenger on Rent
- Food services, Spa, Beauty Treatment, Supplied on board conveyance etc.
POS. - First scheduled point of Departure of that conveyance.
Example
Supplier :M f j Airlines
RO u T E : M u m b a i → Delhi → Dubai → U k
Food Services
provided by
Airlins POS = M u m b a i M u m b a i M u m b a i
Mr. A ` 5 0 0 Mr. B ` 1,000 Mr. C ` 2 , 0 0 0
8
Place of Supply
Sec12(11): Telecommunication Services, Cable & DTH. etc.
eg:Telecommunication services, Data Transfer broadcasting, cable. D T H
Services
POS =
 services involving fixed line, circuit ,dish, etc.  Location of such fixed
Equipment
 Mobile / Internet post-paid services  Location of Billing Address of the
Recipient
 Services provided through a selling Agent / Reseller  Address of the
selling Agent / Reseller
 Sale of pre-paid vouchers (physical)  Location where such voucher are
sold
 Other Cases  Address of recipient i n records. (e.g. online vouchers)
Sec 12(12): Banking & other Financial Services/ Services of Stock Broker
Address of Recipient
is available i n the.
records of supplier
POS = Location of the recipient of POS = Location of the supplier
If location of the
Recipient is not available
i n the records
service on the records of the supplier
Sec. 12(13) Insurance Service
Recipient is RP
POS = Location of such POS = Address of recipient
Recipient is URP
registered person available i n records of Supplier
Sec12(2) : fjeneral Provision / Default Provision
 Any services which is not covered U/S 12(3) to 12 (14) will be covered here
Recipient is RP
POS = Location of Such RP If location of such Recipient is available
Recipient is URP
f j es
POS = LOR
No
POS = LOS
9
Place of Supply
* S U M M A R f j
KEfj = PITEE
P Certain Performance Based Services
I Immovable Property
T Training & Appraisal Services (ROPE SURF)
E Entry Ticket
E Event Name services
↓
POS = Place where service is. Enjoyed
Sec 12 (14): Advertisement services to fjout
POS: Each of States / U T where the advertisement is broadcasted / displayer /
run
NOTE: IF advertisement is i n more than one state (lump sum Amt.)

Absence of contract or Agreement

POS :As per prescribed manner
12(14)Advertisement Services to the fjovernment
Nature of supply Advertisement Services to the fjovernment
 Each of States/Union Territory where the advertisement is broadcasted/
displayed/run.
 I n case of multiple States  as per prescribed manner.
S. Type of
No. Advertisement
Factor which determines the proportionate value
of service attributable to the dissemination i n
each state/union territory
1 Advertisements i n
newspapers and
Amount payable for publishing an advertisement
i n al l the editions of a newspaper or publication,
publications
2 Advertisements
through printed
material like
pamphlets,
leaflets, diaries,
calendars, T-
shirts, etc.
which are published i n each State/Union territory.
Amount payable for the distribution of a specific
number of such material i n each State/Union
territory.
3 Advertisements i n
hoardings (other
Amount payable for the hoardings located i n
each State/Union territory.
than those on trains)
4 Advertisements on Length of the railway track i n each
State/Union Territory, for that train.
trains
5 Advertisements on
the back of utility
bills of oil and
gas companies, etc.
Amount payable for the advertisements on bills
pertaining to consumers having billing
addresses i n each State/Union territory.
6 Advertisements on Number of Railway Stations i n each
railway tickets State/Union territory.
7 Advertisements on Amount payable to such radio station, which
radio stations by virtue of its name is part of each
State/Union territory.
8 Advertisement on Number of viewers of such channel i n each
television State/Union Territory.
channels Viewership can be ascertained from the channel
viewership figures published by the Broadcast
Audience Research Council. Figures for the last
week of a given quarter will be used for calculating
viewership for the succeeding quarter.
Where the channel viewership figures relate to a
region comprising of more than one State/Union
territory, the viewership figures for a State/Union
territory of that region, will be calculated i n ratio
of the populations of that State/Union territory,
as determined i n the latest Census.
9 Advertisements i n Amount payable to a cinema hal l or screens i n
cinema halls a multiplex i n each State/Union territory.
10 Advertisements I n case of advertisements over internet, the
on internet advertisement service shall be deemed to have
been provided al l over India. Thus, the value of
such service will be apportioned amongst al l
States and UTs, of Indi a i n the manner
prescribed therein.
Manner Prescribed:
Number of internet subscribers i n each State/
Uni on Territory
Internet subscribers can be ascertained from the
internet subscriber figures published by the
Telecom Regulatory Authority of Indi a (TRAI).
Figures for the last quarter of a given financial
year will be used for calculating the number of
internet subscribers for the succeeding financial
year.
Where the internet subscriber figures relate to a
region comprising of more than one State/Union
territory, the subscriber figures for a State/Union
territory of that region shall be calculated i n the
ratio of the populations of that State/Union
territory, as determined i n the latest census.
10
Place of Supply
11
Place of Supply
1
1 Advertisements
through SMS
Number of telecom subscribers i n each
State/Union Territory
Telecom subscribers i n a telecom circle can be
ascertained from the telecom subscribers figures
published by the TRAI. Figures for a given
quarter will be used for calculating the
subscribers for the succeeding quarter.
Where such figures relate to a telecom circle
comprising of more than one State/Union
territory, the subscriber figures for that
State/Union territory shall be calculated i n the
ratio of the populations of that State/Union
territory, as determined i n the latest census.
Summary:
Advertisment
Base
Authority
Prop Basic
O n TV
No of views BARC
O n Internet
No. of Subscriber TRAI
Throught SMS
No. of Subscriber TRAI
Last week of Prev quarter
will be base for current
quarter
last Quarter of prev Ffj
will be base for current
fy
last Quarter
will be base for Current
Quarter
1 Time of Supply
Sec 31: Due Date of Issue of Invoice
I fjOODS:- (4 Caces)
a Movement of fjoods :- on or before the removal of goods (At the time
b
of removal)
No Movement - Date on which fjoods made- available to recipient
c
or delivered to recipient
Continuous supply of fjoods:-
Date of Statement
OR
w
e
Date of payment e
d fjoods sent on Approval Basis:-
Date of Approval
OR
w
e
within 6 months from the Date of removal of fjoods e
I I SERVICES (4 Cases)
a Non Continuous Supply of services:-
Invoice should be issued within 3 0 days (in case of Banking
co / FI & Insurance Co. →45 days) from the Date of supply
of services
b. Continuous Supply or service (Service Period > 3 months)
Due Date of Payment is
available
I
Actual Date of Payment
will be due date of Invoice
I I
Due date of payment will
be the due date of Invoice
Example :- Due Date of payment Available
M f j a Bulider provides construction services to Mr.Z
Installment Am t Due Date of Pyt Actual D O P Due Date O f Invoice
1 2 , 0 0 , 0 0 0 8-12-23 8-12-23 8-12-23
2 1 0 , 0 0 , 0 0 0 31-3-24 28-3-24 31-3-24
3 2 0 , 0 0 , 0 0 0 30-6-24 7-7-24 30-6-24
4 3 0 , 0 0 , 0 0 0 31-12-24 20-12-24 31-12-24
06 TIME OF SUPPLY
2
Time of Supply
Example :- Due Date of payment → Not Available
Installment A m t Due Date of Pyt Actual D O P Due Date O f Invoice
1 2 , 0 0 , 0 0 0 - 8-12-23 8-12-23
2 1 0 , 0 0 , 0 0 0 Completion of 1st floor 28-3-24 28-3-24
3 2 0 , 0 0 , 0 0 0 Completion of 2nd floor 7-7-24 7-7-24
4 3 0 , 0 0 , 0 0 0 Completion of 3rd floor 20-12-24 20-12-24
I I I I n case of Event : on or before the Date of Completion O f Event.
Time of Supply
Example :-
M f j Ni ki ta
Advance ` 10l on 10 jan 23
fjoods
Date of Invoice 12-4-23
CASE I → fjoods - F C M (Regular scheme)
= 10-4-23
w
e
e
TOS = D = 10-4-23
OR
I = 12-4-23
10-4-23 15-4-23
F C M
I) fjoods
R C M
⭣
Regular
scheme
Composition
scheme
TOS = Date on which goods
recived by the recpt
OR
Date of payment made by
receipient
OR
31st day from the actual date of
invoice
w
e
e
TOS = w
ie
e
D
OR
I
w
e
e
D
TOS = OR
I
OR
P
3 Time of Supply
CASE I I → fjoods-FCM (composition Scheme)
= 10-1-23
w
e
e
TOS = D = 10-4-23
OR
I 12-4-23
OR
P = 10-1-23
CASE I I I → fjoods - R C M
TOS: Date on which fjoods Recd by the Recpt = 15-4-23
OR
Date of Pyt by the Recpt = 10-1-23
OR
31st day from the D O I = 10-1-23
= 13-5-23
Note:- Date of Payment
F C M R C M
w
e
e
w
e
e
1) Date of Entry made by the
supplier that amount has been
received
OR
2) Amount credited i n his Bank
A/c
1)Date of Entry made by Recipient
that payment has been done
OR
2) Amount debited from the Bank
A/c of recipient
eg - M f j Supplied goods to M r P for 10l.
- Date of Removal of fjoods from the premises of M f j = 10-2-23
- Date of Reciept of fjoods by M r P=15-2-23
- Date of Invoice = 14-2-23
- P issued a cheque to M f j 9-2-23
- Cheque credited i n the Bank A/C OF M f j 16-2-23
- P made entry of Pyt i n his BOA, that pyt made to M f j of ` 10l = 11-2-23
- M f j made entry i n his BOA that pyt recd from P of ` 10l = 18-2-23
- A m t debited from the Bank A/C of P = 16-2-23
→ fjoods - R C M → TOS = ?
D O P = ?
e
w
e= 13-5-23
4
Time of Supply
Ans :-
TOS = Date on which goods received by the Recipient
= 15-2-23
OR
D O P = 11-2-23
OR
= 17-3-23
31st Day from D O I
TOS = 11-2-23
I I Services
f j es
TDS = I
OR
P
Invoice issued within time l i mi t
F C M R C M
Normal Cases
No
TDS = D O P
OR
61st d from the D O I
OR
expenditure
debited i n
BOA of
recipient
TDS = S
OR
P
If Supplier &
reciptient is
an associated
Enterprises
&
Los= NTT
Lor = TT
TOS = D O P
w
e
e
w
e
e
w
e
e
w
e
e
I = Date of Invoice
P = Date of Pyt
S = Date of supply of Service
Excers Amount up to ` 1 0 0 0
If the supplier of taxable goods/ services recieves an amount upto ` 1,000 i n excessof
the amount indicated i n tax invoice, then
TOS → Date of issue of invoice relating to such excess amount (its optional)
Example :-
10 Jan 23 → Pyt made by students to
Ednovate for DT = ` 1 0 , 0 0 0 fee O f DT = ` 9,250
1
1 Jan 23 → Date of Invoice for DT = 29,250
14 Feb 23 → Batch Started
31M a r 23 → Date of Completion of DT
5 Apr 23 → Pyt made by student to Ednovate
for I D T = ` 9,000, fee of JDT = ` 9,750
10 Apr 23 → Date of Invoice for I D T = ` 9,750
15 Apr 23 → Date of Commencement
2 0 Jun 23 → Date of Completion of I D T
w
e
e
5 Time of Supply
I D T
DT
9,250
Non Cont → 3 0 d
DOS
750
20-6-23
9 , 0 0 0
20-6-23
31-3-23
10-1-23
DOP
D O I 11-1-23
10-1-23
10-4-23
5-4-23
10-4-23
Invoice issued within time limits f j es f j es f j es
10-1-23 5-4-23
TDS = I
O R W ee
10-1-23
OR
P 10-4-23( Date of
Invoice)
Common Provision for Time of Supple for fjoods or services.
If supply is
identifiable
If supply is not
identifiable
TOS = Date of issue
of voucher
TOS = Date of issue
of voucher
1. I n case of voucher?
2. I n case of Special Method
Interest, Late Fee.Penalty for delayed payment of consideration
TOS = Date on which supplier received such addition i n value
Example :- 13th Dec 23 → M f j supplied goods to M r Vikas for 1OL + fjST @12%14th
Dec 23 → D O I
IF Pyt not recd by supplier within 3 0 days from the DOI, then M f j charged late Feeor
Interest etc.
2 0 t h Feb 24 → Pyt made by vikas to M f j Value 10L + fjST 1.2 L Interest (ind fjST) 11200
Time of Supply
Interest
Value 10L
I = 14-23-23
TOS = 13-12-23
11, 2 0 0 ×
1 0 0
10 0 + R a t e
11,2 0 0 ×1 0 0
112
= 10 , 0 0 0
TOS = 2 0 t h Feb 24
w
TOS = D = 13-12-23
OR e
e
6
Time of Supply
3. I n case of Residual Method
Periodic Returns have
to be filed
TOS = Due date of
filing of Return
TOS = Date on which
fjST is paid
I n any other case
1
V
ALUE OF SUPPL
Y
Transaction value = Value
1. Price should be sole Consideration (no
barter, no exchange. no payment i n kind)
2. Parties should not be related party or
distinct person
Applicable Rules
Not Applicable i n
CA Inter
Transation Valve value
Value of Supply
Value on which fjST will be charged
Applicable i n exams
value = Price + Elements as per sec 15(2) - Discount
Key: TRI2 S
T Taxes, Duties, Cess [except fjST, TCS under Income Tax Act], if
charged from the recepient
Example :-
M f j supplied fjoods to Mr. Piyush for ` 1,00,000 M f j charged local tax on
such goods @ 18%of price [Rate of fjST iS 12%]
Value =
→ Value = 1,00,000 + 18% of 1,00,000
= 1,18,000
fjST = 12% O f 1,18,000 = ` 14,160
R Recepient bears the liability of supplier
Example :-
Price = 1 0 , 0 0 0 (excl. tax)
Local Tax = 2 0 0 0
Recepient paid = ` 3 , 0 0 0 to M r Z on direction of supplier, because M r Z was
creditor of supplier
→ Value 1 0 , 0 0 0
+ Local Tax 2 , 0 0 0
+ Liability bear by Recpt 3 , 0 0 0
Value = 15,000
07 V
ALUE OF SUPPL
Y
2
V
ALUE OF SUPPL
Y
I Interest, Late Fee. Penalty charged for delayed Payment of
consideration from recipient
Late fee, penalty
NOTE: If question is silent then interest, → Always treated. as
Inclusive fjST
Example :-
M f j supplied fjoods to M r Z & charged
Price of fjoods 1 0 , 0 0 0
Local Tax 2 , 0 0 0
Interest 1,180
Other Info :-
Rate of fjST = 18%
M r Z paid ` 5 , 0 0 0 to fjSTA. which is liability of M f j
→ Value =
Price
+ Local Tax
+ Interest 118 → 1180
1 0 , 0 0 0
2 , 0 0 0
100 → ?
+ Liability of supplier bear by M r Z 5 , 0 0 0
18,000
I Incidental & Anallary Expenditure etc. am t charged for any
thing done by the supplier at the time of as before delivery of
goods or supply of Srvices
Example :-
- Packing, labelling, Designing, etc
- Royality ,waranty charges, etc
- Insurance charges
- Dharmada (charity)
- Weighment charges
- Al l expenses before delivery (loading weighing, coolie, etc.)
- Freight
- Salesman commission
- Rental charges for durable & returnable packing
- Erection, Installation charges.
- Pre-delivery Inspection charges.
3
V
ALUE OF SUPPL
Y
S Subsidies directly linked to price (excluding subsidy provided by
government (Indian fjovt)
Example :-
Price = ` 1 0 , 0 0 0
Int for delayed payment = ` 1180
Packing charges = ` 7 0 0
Subsidry given by fjovt directly linked to transaction = ` 2 5 0 0 pu
Subsidry given by TATA not directly linked to transaction = ` 150O
Subsidry given by RiL Ltd for early delivery of goods = ` 1200 pu
fjST 18%.
Ans] Price 1 0 , 0 0 0
+ Local Tax -
+ Int 1180×100
100
1,000
+ Packing 7 0 0
+ Subsidy by fjout -
+ Subsidy by TATA -
(Not linked to transaction)
+ Subsidy by RIL 1,200
Value = 12,900
*FORMAT
Computation of value as per secis OF CEST Act 2017
Particulars A m t `
1. Selling Price /Price / Invoice Value / wholsale price
(Inclusive fjST / Exclusive fjST) XX
2. Addition as per sec15 (2) of CfjST Act
KEfj TRI2S
Total [A]
XX
XX
3. Less : Diccount fjiven i n Invoice
Value cum fjST (IF fjST inclusive i n price i n pt 1)
[B]
(XX)
XX
4. Less:fjST (if included i n price i n pt 1)
B x Rate of fjST
100 + Rate of fjST
value.
(XX)
XX
⟹ Points to be noted
1. No claim Bonus permissible as deduction uls 15(3) as for the purpose of the
calculation of value of supply of the insurance services provided by the i n
surance co to insured (in short NCB is treated like Discount)
2 Incentive paid by Melty to acquiring banks under Incentive scheme for
promotion of Rupay Debit cards and low value B H I M UPI transactions are
treated as subsidy → Not Taxable
4
V
ALUE OF SUPPL
Y
Points to be noted:-
1. Treatment of subsidy
I I I I I
I
If Q says list price
adjusting subsidy
XX
List Price
(+) Subsidy
XX
from TP
(+) Subsidy
from fjovt -
XX
XX
List Price
(-) fjovt
Subsidy (XX)
XX
List Price XX
No ady of subsidy
If Q says List Price
excluding Subsidy from TP
If I says list price
excluding (without
adjusting) fjovt Subsidy
2.
At the time of supply After the supply
Before the supply
Shown i n the Invoice
f j es
⭣
Discount not included
i n the value of supply
f j es
⭣
Discount not included
i n the value of supply
No
⭣
Discount included i n
the value of supply
No
⭣
Discount included i n
the value of supply
(1)I n terms of an
agreement that exist at
the time of supply
+
(2) Can be linked to
invoice (transation)
+
(3) Proportionate ITC
reversed by the recipient
Discount fjiven
1
Sec. 22 - Reg Comp if ATO > Threshold i mi t
Imp 23 - Person who is not liable for Reg
24 - compulsory Reg (even if ATO <threshould l i mi t )
25 - procedure for Registration
26 - Deemed Registration
Theory 27 - Registration of CTP/NRTP
28 - Amendment i n Registration certificate
Imp 29 - cancellation of Registeration
3 0 - Revocation of cancellation of Registration
* SEC 23 :REfjISTERATION N O T REQUIRED
1. Agriculturist to the extent of supply of Product out of
cultivation of Land
2. Person exclusively engaged i n
(a) Exempted Supply
[exempt, ni l rated, outward supply taxable under R C M ]
(b) Non Taxable Supply
[(out of scope of fjST-eg), SH III]
* SEC 24 :C O M P U L S O R f j REfjISTERATION EVEN IF AfjfjREfjATE
TURNOVER IS ≤ THRESHOLD L I M I T
[Key- O2
I2
C NE3
TA RN]
O1
Online Money fj ami ng * Amendment
Supplier - Non Taxable Territory
Recpt- Taxable Territory
O2
Online Information and database Access or Retrival Services
(OIDAR) [eg: Netflix]
Supplier = Non- Taxable Territory
Recpt. = Unregistered person of Taxable Territory
I1
Inter State Supply of fjoods ( services)
[Except Casual Taxable Person who is making taxable supply of Notified
Handicraft fjoods]
Example
M r U m a n g
(Mumbai)
fjoods (Inter state supply)
M f j & CO.
(Rajasthan)
Registration compulsory for umang
u/s 24
S R
09 REGISTERATION
M r M o h i t
(Casual
taxable person)
Handicraft Items
M f j & CO.
(Rajasthan)
M o h i t will be liable for registrition only
if ATO >threshold Limit - (10l /20l)
S R
I2
Input Service Distributor
C Casual Taxable Person (other than handicraft)
N Non Resident Taxable Person
ECO
E1
→ ECO U/S 52 or U/S 9(5)
E2
→ Any person who supply fjoods (not service) through ECO
Exception : Any person who is engaged i n Intra state supply of fjoods through ECO →
Registration compulsory only ATO > Threshold l i mi t of Registration
E3
→ A person who is appointed by Eco for pyt of tax on behalf of ECO
Example
Chutki
(Mumbai)
Jaggu
(Mumbai)
Raju
(Surat)
Bheem
(Surat)
S
S
R
R
Amazon
Service
Eco
Eco
→
→
Registration Compulsary U/S 24 → for Chutki & Amazon
Registration Compulsary for Jaggu if ATO >TSL
T TDS Deductor.
Agent covered under SH I
A
R RCM: Any person who is liable for pyt of Tax on Inward supply under R C M
S
Partnership Firm
fjTA
Transportation of fjoods
Value = 1l, fjST @ 5% R
- Registration Compulsary for partnership firm U/S 24
- Registration is not required for fjTA U/S 23
2
N Notified Person
Notified by fjovernment on recommendation of council
* PERSON LIABLE FOR REfjISTERATION U/S 22
1.
2.
Every Person Registered under Existing Law (eg Reg under VAT/Excise duty)
The transferee of Business
3.
4.
Amalgamated / Demerger units of Business
Aggregate Turnovers >Threshold Limit.
Threshold l i mi t is
[A] [B] [C]
Key - M 2
N T
- M a n i p u r
- Mirzora m
- Tripura
- Nagal and
Any other cases which are not
covered uls 24
e.g.
• Intra State supply of goods
and services
• Inter state supply of services
Key - Megha ArunTe PU
ke sath Sikkim gaye
- Meghalaya
- Arunachal Pradesh
- Telangana
- Puducherry
- Uttarakhand
- Sikkim
- Jammu & kashmir
- Himachal Pradesh
- Assam
- Uni on Territories
- Al l other states
ATO > 10l
ATO > 2 0 l
ATO > 2 0 l
Exclusively engaged i n
Intra State supply of fjoods
[Exception- I n services only
Int on LAD allowed]
ATO >
4 0 l
Exclusions Notified fjoods
eg] Pan Masala, Tabacco.
fjutka, Edible Ice, Ice-cream.
Aerated water.Fly ash bricks /
blocks. Building tricks, bricks
of fossils, earther / roofing tiles
⟹ Points to be notes.
* 1)Aggregate Turnover (ATO)
Al l outward Supply
Example:
Int on LAD (Loan/Advance & Deposites)
Exempt supply
Taxable supply.
3
4
Non Taxable supply
Outward supply Taxable under R C M
Inter / Intra State Supply
→ Exclude:-
1.fjST
2. Inward supply on which tax is payable by recipient under R C M
2) Aggregale to includes al l supplies made by taxable person, whether on his own Ale
or made on behalf of al l his principles
Example:
Agent
Customer 1
Customer 2
TATA= Principle
(Delhi)
M f j = Principle
(Mumbai)
Car = 6 0 l
6 Units
Car = 9 0 l
Customer 2
ATO for :
M f j = 5OL
Tata = 6 0 L
Agent = 8 O l + 9 0 l + 2 0 l =190l
3. If the goods are directly supplied from premises of the Job worker by the principal
then it shall be included i n to the ATO of Principal
(whether Job worker is Registred or not)
Example:
M r Veer
Jaipur (Job Worker)
M f j & Co.
M u m b a i (Principle)
M r Rajesh (Ajmer)
Plastic = 100kg
Included i n the TO of M f j & Co.
10-7-23 15-7-23
M f j Supplied toys to M r Rajesh di-
rectly from the premises of the Job
worker (Jaipur) for 25 lakhs
veer used such Plastic for
M f g of Toys for M f j on
25-10-23
4 Registeration Required only for a place. of business from where taxable supply takes
place.
Punjab
TS=6l
Haryana
TS=7l
ES=3l
Rajasthan
ES=4l
Delhi
TS=2l
→ ATO = 6l +7l+3l + 4l+2l = 22l
M f j & C O is liable for Reg but only for the units of Punjab, Haryana, Delhi
5. IF Supply between distinct person, then it will be included i n TO or suppuer
Example:
M f j 2
(fjujarat)
M f j 1
( M a h a rashtra)
M f j 3 [Registered person]
Maharashtra [Distinct person]
M f j 1
( M a h a rashtra)
[diff branch
same reg. no.]
Supply
Value = 10l
Included i n
TO of M f j 1
Included i n
TO of M f j 1
Not
Incl.
6 If one uni t is situated i n special category state (M2NT) and other uni t is
situated i n other State, then TSL will be considered 10l
But if
Units are situated i n special category State exclusively engage i n Non-
Taxable Supply or Exempt supply, TSL l i mi t will be considered as 2 0 l / 4 0 l
Example
U n i t 1 Tripura
I
TS = 5l
I I I I I IV
TS = 5L Non taxable ES = 5l
U n i t 2 M u m b a i TS = 3l
ES = 2l
ES = 1l
TS = 3l
ES = 3l
supply = 5l
TS = 3l
ES = 5l
TS = 3l
ES = 6l
Threshold l i mi t 10l 10l 2 0 l 2 0 l
Aggregate TO 10l 12l 13l 14l
Registeration Compulsory No fjes No No
As per Sec 22
5
6
* Effective Date of Registration
When an Applicant submits application for Effective Date of Registration
Registration
1. within 3 0 days from Date he becomes liable The date on which he becomes liable for
for Registration
2 After 3 0 daye from date he becomes Liable
Registration
Date of fjrant of Registration
for Registration
Example
CASE I
1 Nov
⭣
ATO > TSL
25 Nov
⭣
Apply for Reg
10 Dec
⭣
Reg Certificate
(RC) granted
→ Supply
Effective Date of reg = 1 Nov
Date of RC = 10 Dec B/w 1
.
1
1 to 10.12
⭣
Supplier may issue revised tax invoice within a month from date of RC [till 10th Jan]
Example
CASE I I
1 Nov
⭣
ATO > T M L
5 Dec
⭣
Apply for Reg
10 Dec
⭣
RC fjranted
I
By taxable person
U/S 29 (1)
I I
By proper officer
U/S 29 (2)
→ Effective Date of Reg = 10 Dec
Date of RC of Reg = 10 Dec
* Supply b/w 1Nov to 10 Dec → revised tax invoice cannot be issued
* CANCELLATION OF REfjISTERATION (SEC 29)
* Cancellation of Registeration (Sec 29)
7
Sec 29 (1) Circumstances for cancellation or Suspension of Registeration
The business has been
- Discontinued
- Transferred
(fully for any reason
including death of properties)
- Amalgamated with other
legal entity
- Demerged
- Otherwise disposed off
The taxable person is
no longer liable to be
registered U/S 22 or
U/S 24
There is any change
i n the Constitution of
business
eg] Individual → Firm
Firm → BC
N O TE: The proper officer may suspend his registration during pendency of the proceeding
relating to cancellation of Regn filed by such RP.
Sec29 (2) Cancellation of Registeration by Proper officer
The Proper officer may cancel the regiteration as he may deem fit where :-
1 A registered person has contravened such provision of the Act or Rules made
there under i.e
a) He does not conduct any business from the declared place of business
b) Issue fake invoice
c) He violates the provision of
→ U/S 171- Anti Profitering
→ Rule 10A → Bank details not submitted within 3 0 days
→ U/S 16
→ Rule 86B
d) Tax liability i n fjSTR 1 is more than tax Liability shown i n fjSTR
3B
2) Composition scheme holder has not furnished the return beyond 3 months
from the due date or furnishing the return
eg: For Ffj 2022-2023
Due Date of filing Return = 30-4-23
Date of Filling Return
O n or before
3 0 t h July
⭣
Sec 29(2)
⭣
Not applicable
After
3 0 t h July
⭣
Sec 29(2)
⭣
M a y be applicable
8
3. Person Registered under regular scheme has not furnished return for
4. Any person who has taken voluntary registration, has not commenced
business within 6 months from the date of registration
5. Registration has been obtained by means of fraud, willful mistatement or
supression of fact.
Note :
Opportunity of being heard
The proper officer shall not cancel the registration without giving the person
an op portunity of being heard.
Continious period of 6
months [If required to file
return monthly basis]
Continious period of 2 tax
period [If required to file
return on quarter basis - i.e
Q R M P Scheme ]
1
TAX INVOICE, CREDIT & DEBUT NOTE
fjlimpse
* Sec 31-
(i) Due Date of Issue of Invoice (Refer Chp)
* Sec32- unregistered person shall not collect tax from the Recipient
* Sec 33-
Registered Person should
- Collect Tax as per law &
- Tax collected shall be seperately indicated i n al l documents relating to
Tax Invoice, Assessment & Other Documents. (if supply is for consideration)
* Sec 34- Debit Note & credit Hote
I SEC 31- TAX INVOICE
(i) Rule 47 - Time l i mi t for Issuing Invoice (Refer cnp 6)
(ii) Rule 46 - Content of Invoice
•
•
Name, address and fj STIN of supplier
Consecutive Serial Number & date of issue
•
•
Name, address and fj STIN of recipient, if registered
Name & address of recipient, if not registered
•
•
HSN code
Description of goods or services
•
•
Quanti ty i n case of goods
Total Value of supply
•
•
Taxable Value of supply
Tax rate-Central tax & State tax or Integrated tax, cess
•
•
Amount of tax charged
Place of supply
•
•
Address of delivery where the same is different than place of supply
Tax payable on reverse charge basis
• Signature of authorised signatory
• QR Code having embedded invoice reference number
• A declaration as below, that invoice is not required to be issued i n the
manner specified under Rule 48(4).
N O TE: If value of supply is more than ` 5 0 , 0 0 0 & Recipient is an URP
Name & Adress of Recipient
should be mentioned i n invoice Address of Delivery is not necessary to
mention i n Invoice
f j es No
Name & Address of Recipient &
10 TAX INVOICE, CREDIT & DEBUT NOTE
⟹ Points to be noted
Nature of supply ATO > ` 5cr ATO ≤ ` 5cr
1. B2B Supplier Mandatory 6 digit
2. B2C Supplier 6 digit
Mandatory 4 digit
Optional 4 digit
Rule 48 - Manner of issuing Invoice
Rule 48 (1) - I n case of Supply of fjoods (Triplicates)
- Original Copy → Recipient
- Duplicate Copy → Transpoter
- Triplicate Copy → Supplier
Rule 48 (2) - Supply of services Duplicates
- Orginal Copy Recipient
- Duplicate copy supplier
Rule 48 (3) - Invoice No. Furnished electronically
The serial number of Invoice issued during a month / quarter shall
be furnished electronically i n Form fjSTR - 1
Rule 48(4) - E-INVOICE
If supplier & Recipient both are RP + B2B Supply
&
Annual Aggregate Turnover > 5cr i n any preceding Fy from 2017-18 onwards.
⇓
E- Invoice compulsory
2
TAX INVOICE, CREDIT & DEBUT NOTE
1. Supplier is :- ECO or
O I D A R or
Online Money fj ami ng
OR
2. Supply through ECO
A N D
Recipient is URP
⇓
Innrespective of the value of such supply l a tax invoice & the name of the
state of the Recpt and the said address (Name of State) shall deemed to be
the address on record of the recpt.
2. HSN on Invoice
3
TAX INVOICE, CREDIT & DEBUT NOTE
Except:
If Suppliers is
- Special Economi zone units
- Insurer or Banking Co or Financial Institutions including NBFC
- fjTA
- Supplier of Passenger Transportation service (eg Rail,Bus,Airplane etc)
- Exhibition of cinematography films i n multiplex screen
- fjovt Dept & Local Authority.
⟹ Points to be Noted.
1. If E invoice issued i n other than Specified manner → then shall not be
treated as Invoice
2. Provision of Rule 48(1) (Triplicate Copy) & 48(2) [Duplicate] shall not
apply to E invoice.
3. Any person who is covered under the exceptions of E-invoice → E-invoice is
not compulsory i n any circumstances
eg if any Bank is engaged i n Financial Service & also supply of Bullions
→ E-invoice not compulsory, even if turnvoer of bank is > 5Cr &
recipient is RP
4. If supplier is RP having To > 5cr i n Py 17-18 onwards & Recpt is fjOVE
Dept / LA which is registered under fjST only for deducting TDS E-invoice
compulsory
5 . I n case of E-invoice or other invoice → Al l the fjST Tax payer are free to
design their own Tax Invoice
QR Code
QR code is mandatory for Tax payer having Turnover >500cr i n preceding
Ffj 17-18 onwards i n B2C Supply
M r A
To > 500cr
M r B
URP
B →C
Invoice shall have
QR Code
Exceptions
1 Insurance Co., Banking, FI & NBFC
fjTA
2
3
4
Passenger Transport Service
Supples of service by way of admission. or exhibition of cinematography
5
films i n Multiplex screen.
Supplies of O I D A R Services located i n NTT
4
TAX INVOICE, CREDIT & DEBUT NOTE
* REVISED TAX INVOICE
Revised Tax Invoice to be issued i n respect of taxable suppliers effected during this period
Effective date of
Registration
Date of issuance of certificate
of Registration
Supply for which Revised Tax invoice will be issued within 1month from the Date of
Registration granted
- Consolidated Revised Tax Invoice (CRTI) may be issued i n respect of taxable Supplies
made to an unregistered recipient during this period
- I n case of Inter-State supplies. CRTI cannot be issued i n respect of unregistered recipient
if the value of supply exceeds 2.5L during this period
Example
M f j & Co.
M u m b a i
5th Nov = 2l ,6th Nov = 5 0 k ,
15th Nov = 25k →SRTI will be issued
5th Nov 50K, 6th Nov 25K, 3 0 t h 1L→ CRIT will be
issued BCO3 value ≤ 2.5L
10th Nov = 5l
RP
fjujarat
10th Nov = 25K, 28th Nov = 50K→ SRIT will be issued
RP
M u m b a i
URP
fjujarat
15th Nov = 2l
16th Nov = 5 0 k
7.5 l
CRTI will be issued
URP
M u m b a i
5
TAX INVOICE, CREDIT & DEBUT NOTE
* CONSOLIDATED TAX INVOICE
Tax invoice is not required to be issued
Value of supply <
` 2 0 0
Recipient is
unregistered
Consolidated Tax Invoice shall be issued for such supplies at the close of each
day i n respect of al l such supplies
Recipient does not
require such invoice
Example
M f j
CRP
M r A
(URP)
14th
Jan
8 a m calculator = ` 100
= ` 2 0
2 pm Pen
6 pm Pencil = ` 10
` 130
value < ` 2 0 0
CTI can be issued
INVOICE - C U M - BILL OF SUPPLfj
Exempted Supply
Tax Invoice X
Bill of supply invoice 
Registered person
Paying tax under Composition levy
u/s 10 & 10(2A)
Note :-
Invoice-cum-bill of supply
Notwithstanding any thing contained i n rule 46 or rule 49 or rule 54, where a registered person is
supplying taxable as well as exempted goods or services or both to an unregistered person, a single
“invoice-cum-bill of supply” may be issued for al l such supplies.
6
TAX INVOICE, CREDIT & DEBUT NOTE
URP
(Mohit)
M f j
(RP)
Example
Taxable =2k + Exempt 3k = Invoice C u m bill of supply
⭣
fjST 18 %
RECIEPT VOUCHER + REFUND VOUCHER
RECEIPT VOUCHER
Advance Payment
Supplier Recipient
Receipt Voucher
Where at the time of receipt of advance, rate of tax/nature of supply is not determinable
Where at the time of receipt of advance
1.Rate of tax is not determinable
2. Nature of supply is not determinable
Tax shall be paid at the rate of 18%
Same shall be treated as inter-State supply
REFUND VOUCHER
Receipt voucher
Tax Invoice X
Refund voucher
Mr. B
Recipient
Mr. A
Supplier
• fjST liability paid on Advances by Mr. A
Advance payment
Supply X
PAfjMENT VOUCHER + INVOICE UNDER R C M
PAfjMENT VOUCHER
I n case of R C M (Reverse Charge Mechanism), the recipient shall issue a Payment Voucher
at the time of making payment to the supplier.
INVOICE UNDER R C M
I n case of R C M (Reverse Charge Mechanism) and if the supplier is unregistered person then,
the recipient shall issue an Invoice.
7
TAX INVOICE, CREDIT & DEBUT NOTE
*SUPPLIER PERMITTED TO ISSUE ARfj D O C U M E N T OTHER
T H A N TAX INVOICE
Following supplies may issue a tax invoice but they are also permitted to issue any other
documents i n lieu of tax invoice, by whatever name called
- Insurer / Banking Co/ FI incl NBFC fjTA
- fjTA
- Supplier of passenger transportation services etc
* DELIVERfj CHAL I AN
At the time of removal of goods, fjoods may be removed on Delivery Chal l an & invoice
may be issued after delivery
eg - Supply of liquid gas (LPfj)
- Transportation of fjoods for Job work
- Transportation of goods for reasons. other than by way of supply.
- Such other supplies notified by Board
- Semi-knocked Down (semi-finished fjoods) / C K D (completely knocked down)
(Fully Disassemble fjoods)
NOTE:-
fjoods transportation i n SKD / C K D condition or i n batches or lots
a) The supplier shall issue the complete Invoice before dispatch of the first
consignment
b) The supplier shall issue a delivery challan for each of the subsequent
consignments, giving reference to the Invoice
c) Copies of the corresponding delivery challan shall accompany each
cosignment along with a duly certified copy of the inovice.
d) The Original copy of the Invoice shall be sent along with the last
consignment
CREDIT NOTE
When a tax invoice has been issued for supply of any goods or services or both:
(a) Taxable value i n invoice > Taxable value i n respect of such supply and the
Tax charged i n invoice > Tax payable i n respect of such supply, or
(b) where the goods supplied are returned by the recipient, or
(c) where goods or services or both supplied are found to be deficient.
8
TAX INVOICE, CREDIT & DEBUT NOTE
NOTE 1:
Then, the Registered Supplier of goods or services or both may issue Credit Note. The CfjST
(Amendment) Act, 2018 has amended u/s 34 (1)to allow the registered person to issue one
(consolidated) or more credit notes i n respect of multiple invoices issued i n a financial year
without linking the same to individual invoices.
NOTE 2:
Any registered person who issues a credit note shall declare the details of such credit note i n
the return for the month during which such credit note has been issued but not later than
September the thirtieth day of November following the end of the financial year i n which
such supply was made, or the date of furnishing of the relevant annual return, whichever is
earlier, and the tax liability shall be adjusted i n such manner as may be prescribed: [w.e.f. 1st
October, 2022 vide Notification No. 18/2022]
DEBIT NOTE
Where a tax invoice has been issued for supply of any goods or services or both:
1) Taxable value i n invoice < Taxable value i n respect of such supply.
2) Tax charged i n invoice <Tax payable i n respect of such supply.
Then, the Registered Supplier of goods or services or both shall issue Debit Note.
Similarly, u/s 34 (3) has been amended to allow the registered person to issue one (consolidated)
or more debit notes i n respect of multiple invoices issued i n a financial year without linking
the same to individual invoices.
Sec16 (4):-Time l i mi t for availing ITC
A registered person shall not be entitled to take input tax credit i n respect of any invoice or
debit note for supply of goods or services or both
after the 30t h
November
following the end of financial year to which such invoice or invoice relating to such debit note
pertains or furnishing of the relevant annual return, whichever is earlier.
For Example: -
Invoice Date 15.07.20
Debit Note has been issued on 10.11.2021
As per the Amendment:- ITC of said debit note can be claimed by Registered person
till the 3 0 t h Nov 2022
O r
Date of filling of Annual return For F.fj. 2021-22
which
ever is
earlier
1
E-WAY BILL
I W H E N SHOULD E-WAfj BILL BE ISSUED?
Movement of
fjoods
exempt Supply will
not to be included
O n l y i n case
of Supply
Value fjST
+
inclusive > ` 5 0 , 0 0 0
E-way Bill is compulsory i n following cases even if value is ≤ 5 0 , 0 0 0
Inter State Transfer of fjoods
a)
b)
By principal to job worker
By Any person who is exempt from registration
eg:- Casual Taxable person supply handicraft goods from one state to
another
Example 1
M u m b a i E-way bill ✓ Delhi
Pune
value =48k + fjST @18 % 5 6 6 4 0
Example 2
fjoods sent for jobwork
Value = 1 0 , 0 0 0 + fjST
fjoods Value = 10 k + fjST
EWB x
Principal Rajasthan
Pune
Job worker
Job worker
E-way Bill ✓- Because
Inter state transfer from
principal to job worker
09 E-WA
Y BILL
2
E-WAY BILL
Example 3
M u m b a i
CPT
[Exempt from fjST
Registration]
Rajasthan
Pune
Handicraft fjoods
value = 2 0 , 0 0 0 → EWB ✓
E-way bill ✓
value = 2 0 k → EWB x
= 5 6 6 4 0 → E- Way bill ✓
⟹ Ponts to be noted
1) If E way Bill is generated with wrong information, it can be cancelled & new
E-way Bill can be generated
2) Provision for cancellation of E-way Bill within 24 hrs by the person who has
generated the E-way Bill
3) The Recipient can reject the E-way Bill within 72 hours of fjeneration
4) Alert messages are also issued to the users through Online & SMS (if person is
a registered)
I I W H O fjENERATES E- E-WAfj BILL?
→ If Transferer & Transferee of fjoods are Both Registered person→ Any one of them
→ Either Transferer or Transferee of fjoods. is Registered person → Person who is RP
→ Both are URP & Transportation of fjoods by Road
Transporter will
fjenerate E-Way Bill
(RP)
If transporter did not generate
E way bill
⇓
Any of the URP
(only i n theory practically not
possible)
NOTE: I n case of Railway, Not required to generate EWB at time of movemen
of fjoods but it should be generated before or at time of delivery of fjoods
FORMS & VALIDITfj OF E-WAfj BUL FORMS
1. Forms of E-way BUL Forms
Form fjST EWB 01 → E-way bill form
Form fjST EWB 0 2 → Consolidated E-way Bill form to be generated
by Transporter
Form fjST EWB 0 3 → Inspection report to be filled up by proper
officer (In case when fjoods are detained by
officers for checking during Transport)
Form fjST EWB 0 4 → Form to upload details by Transporter, if
vehicle detained for more than 3 0 mins
2. Validity Period of E-way Bill
CASE 1 Other than Over Dimentional Cargo :- One day for 2 0 0 k m
or part of the 2 0 0 k m
CASE 2 Over Dimentional Cargo (ODc) or mul ti model shipment i n
which at least M u l t i model one leg involves Transport by ship
→ One day for 2 0 k m or Part of the 20km.
eg.
- M r M f j sent goods from Ajmer to Jaipur.
- M f j filled Part A of the EWB & fjoods handed over to fjTA
O n 10-7-23.
- fjTA filled part B on 12-7-23 at 2 pm.
- Distance between Ajmer to Jaipur 263 km.
- Mode of Transportation, other than ODC.
→ Determine last date of validity of EWB.
N O TE:- Validity period will start from midnight of the day i n which EWB
is filled
Soln EWB generated on 12-7-23 at 2pm
→ M i d n i g h t of 12-13 July
One day completed on 13-14 July midnight
2nd day completed on 14-15 July midnight
→ So validity till 14-15 July midnight.
* Bill to ship to Model
I n a “Bill To Ship To” model of supply, there are three persons involved i n a
transaction, namely:
‘A’ is the person who has ordered ‘B’ to send goods directly to ‘C’.
‘B’ is the person who is sending goods directly to ‘C’ on behalf of ‘A’.
‘C’ is the recipient of goods.
I n this complete scenarios two supplies are involved and accordingly two tax
3
E-WAY BILL
4
E-WAY BILL
invoices are required to be issued:
Invoice 1:which would be issued by ‘B’ to ‘A’.
Invoice 2: which would be issued by ‘A’ to ‘C’.
It is clarified that as per the CfjST Rules, 2017, either A or B can generate the
e-way bill but it may be noted that only one e-Way Bill is required to be
generated [Press Release dated 23.04.2018]
* Exemption from fjeneration of E-way Bill
Exemption from generation of e-way bill
Where the goods are being transported
Which are
specified i n
annexure *
Exempted
goods (except
de-oiled cake)
Consignor of goods is
fjovt./Local Authority
By rail
EWB not
required
EWB required
Other than rail
Movement of goods caused
by defence formation
Empty cargo
container
Empty
cylinders
Non-taxable goods
i.e. petrol, natural
gas, alcohol etc.
fjoods covered under
Schedule I I I of CfjST
Act, (no supply items)
The transit
cargo from
or to Nepal
or Bhutan
Up to a distance
of 2 0 k m from
the place of
business to
weighbridge or
vice versa
By non-
motorized
conveyance
From the customs port, Airport,
air cargo complex and l and
customs station to I n l a n d
container depot or container
freight station or vice versa
* Part B is not required to be filed upto 5 0 k m
Explanation 2 to rule 138(3) stipulates that e-way bill is valid for movement
of goods by road only when the information i n Part-B is furnished. However,
details of conveyance may not be furnished i n Part-B of the e-way bill where
the goods are transported for a distance of up to 5 0 k m within the
State/Union territory:
• From the place of business of the consignor to the place of business of
the transporter for further transportation [Third proviso to rule 138(3)] or
• From the place of business of the transporter finally to the place of
business of the consignee [Proviso to rule 138(5)].
5
E-WAY BILL
40Km Distance
Supplier
Mr. Ram
Vasai
Transporter Z
M u m b a i Andheri
Transporter f j
Jaipur
Transporter Z
Filled part B on
Recipient
Delhi
22/01/20
(Andheri to Jaipur)
Part B
Not required, if
distance is up to
5 0 k m
‘Z’ handover goods
to ‘fj’ i n jaipur on
25th Jan 2 0
New EWB : Not Required
Only Updation is required
in part B
Mr. Ram Filled part A on 19/01/20
& fjoods Handover to transporter Z
* Transfer of fjoods from one conveyance to another / one transporter to another
Where the goods are transferred from one conveyance to another, the consignor or the
recipient, or the transporter shall, before such transfer and further movement of goods,
update the details of conveyance i n Part B of the e-way bill on the common portal
[Rule 138(5)].
The consignor/recipient, or the transporter, may assign the e-way bill number to another-
registered enrolled transporter for updating the information i n Part B for further
movement of the consignment [Rule 138(5A)].
However, once the details of the conveyance have been updated by the transporter i n
Part B, the consignor or recipient, as the case may be, who has furnished the information
i n Part A shall not be allowed to assign the e-way bill number to another transporter
[Proviso to rule 138(5A)].
Example: Mr. Ram is required to move goods from Japan to Mumbai. He appoints
Transporter R for movement of his goods. Transporter R moves the goods from Japan to
Ahmedabad For completing the movement of goods i.e. from Ahmedabad to M u m b a i
Transporter R now hands over the goods to Transporter S.Thereafter, the goods are
moved to the destination i.e. from Ahmedabad to M u m b a i by Transporter S.I n such a
scenario, only one e-way bill would be required.
Part A can be filled by the consignor and then the e-way bill will be assigned by the
consignor to Transporter R. Transporter R will fill the vehicle details, etc. i n Part B and
will move the goods from Japan to Ahmedabad.
O n reaching Ahmedabad, Transporter R will assign the said e-way bill to the Transporter
S. Thereafter, Transporter S will be able to update the details of Part B. Transporter S will fill
the details of his vehicle and move the goods from Ahmedabad to Mumbai [Press Release No.
144/2018 dated 31.03.2018].
6
E-WAY BILL
* Blockage of fjeneration of E-way Bill
Rule 138E E-Way Bill fjeneration is Blocked i n respect of Non-filers
Registered person
1. Person other than composition Supplier (a)
Non-Filing of
fjSTR-3B (Returns) for a consecutive Period of 2
Tax period
OR
(b) fjSTR-1 for any 2 Months or Quarters, as the
case may be
2. Composition supplier [u/s 10 of The statement i n F O R M fjST C M P 0 8
CfjST Act] For 2 Consecutive Tax Period
Avail the benefit of N N 02/2019
[presumptive Levy Scheme]
E.g.: Mr. ‘X’ (other than composition supplier) fails to furnished fjSTR–3B for month of
April 2021 (Due date 2 0 t h M a y 2021) & M a y 2021 (Due Date 2 0 t h June 2021)
Portal will automatically block EWB from 21st June 2021
Suppose Mr. ‘X’ Fails to furnished fjSTR–3B for month of June 2021 (Due
Date 2 0 t h July) Also
fjeneration of EWB remain Blocked
Suppose Mr. ‘X’ furnished fjSTR–3B for month of April 21& month of
M a y 21on 25th July
Portal will automatically unblock on the next day [Because default
period has been reduced & now it is less than 2 Months]
Do fjou Know?
1. Unblock the blockage of generation of EWB by Commissioner.
The Commissioner may, on receipt of an application from a registered person i n FormfjST
EWB–05, unblock the blockage of fjeneration of EWB (Subject to Conditions) by issuing an
order i n Form fjST EWB–06.
E-way bill generation facility to be blocked only i n respect of outward movement of goods,
by the defaulting registered person [Rule 138E]
E-way bill generation facility is blocked only i n respect of any outward movement of goods of
the registered person who is not eligible for e-way bill generation as per rule 138E. E-way bills
can be generated i n respect of inward supplies of said registered person.
7
E-WAY BILL
For Example :- Mr. A, a registered person paying tax under regular scheme i n Delhi, has not
filed Form fjSTR-1 for last 2 months. Mr. B, Haryana, (a regular return filer) wants to generate
an e-way bill for goods to be supplied to Mr. A. As per earlier position of law, Mr. B would
not have been able to generate e-way bill with Mr. A’s fjSTIN.
I n terms of the amended position of law, there will be no more restriction i n generating e-way
Bill as Mr. B who is making outward movement of goods is a regular return filer.
Mr. A wants to generate an e-way bill in respect of an outward supply of goods to Mr. H. E-
way bill generation is blocked i n this case as it’s a n outward movement of goods of Mr. A
who has not filed fjSTR-1 for past 2 months.
[Notification No. 15/2021 CT dated 18.05.2021]
Rule 138E (d):- Any person whose registration has been suspended under Rule 21A
(In case Registration cancellation proceeding is pending)
fjeneration of E-way Bill is Blocked. [w.e.f. 22/12/20]
1
RETURNS
* SEC 37- FURNISHINf j DETAILS OF O U T W A R D SUPPLIER (fjSTR-1)
(i ) Who is required to furnish details of outward Supplies i n Form fjSTR 1?
→ ALL RP including casual Taxable Person
excluding :
- Input service Distributor (ISD)
Non-Resident Taxable person
-
- Composition Scheme Tax payer
Person deducting Tax at Source (TDS deductor)
-
-
- Person collecting Tax at source (TCS)
Supplier of O I D A R Services Located i n non- taxable territory
providing services to non-taxable online recpt (B→C) / Online Money
fj ami ng (Supplier from NTT)
(ii) W h a t is the due date of submission of fjSTR-1 ?
Class of RP Time l i mi t for furnishing fjSTR-1
1 Registered Person opting for 13th day of the month suceeding such tax period
Q R M P Scheme
2 Others
eg] April - June 13th July
11th day of the month suceeding such tax period
(Monthly) /But i n case of Quarterly statement → Last
day of the month from end of the quarter.
eg 1 M f j (RP) opting Q R M P Scheme.
fjSTR 1 for Quarter of :-
Apr - June 23 → Due Date 13th July 23
July - Sept 23 → 13th Oct 23
Oct - Dec 23 → 13th Jan 24
Jan- March 24 → 13th Apr 24
eg2 M f j did not opt for Q R M P scheme.
Pfj TO OF M f j , is  1.5Cr
fjSTR 1 for quarter of :
Quaretr
April - June 23
Due date
31st July 23
July 23 → Sep 23 31st Oct 23
13 RETURNS
2
RETURNS
(iii) Caces where a RP is debarred from furnishing details of outward supplies i n
fjSTR-1 / IFF
If RP not furnished
fjSTR - 3B of preceeding 2
months
I n case of Q R M P Scheme
⇓
If RP not furnished fjSTR
- 3B for Preceding tax
period (inshort previous
Quarter)
Any RP Covered under
Rule 86 B
⇓
If not furnished return
(fjSTR-3B)
Preceeding Tax period
1 2 3
Amendment
4. If he has not furnished the Bank Account details as per the provision of
Rule 10 A
5 . A RP to whom an intimation has been issued on common portal, that he claimed
Excess ITC & such RP has not furnished any reply explaining reason or he has
not paid such excess A m t of ITC within 7 days.
⟹ Points to be noted
A tax payer cannot File fjSTR- 1before the end of the current tax period
Exceptions :-
- Casual Tax payers after closure of their businesses.
- Cancellation of fj STIN of a normal taxpayer
* Outward Taxable supplies to be furnished i n fjSTR-1
Outward Taxable Supplies to be furnished i n fjSTR-1
B2B supplies
Invoice-wise details of al l
supplies to be uploaded
Invoice-wise
details to be
uploaded
State-wise
consolidated details
to be uploaded
Invoices >
` 2,50,000
Invoices 
` 2,50,000
Consolidated details
of al l supplies to be
uploaded
Inter-state supplies Intra-state supplies Inter-state supplies Intra-state supplies
B2C supplies
3
RETURNS
* A N N U A L RETURN fjSTR - 9, 9 A ,9B
(1) Who is liable for furnishing Annual Return?
fjSTR-9 → Every Reg person except :-
(i) Cassual Taxable person.
(ii) Composition Scheme Holder [fjSTR 9A]
(iii) ECO [fjSTR 9B]
(iv) NRTP
(v) Input service Distributor
(vi) TDS deductor U/S 51
(2) Due date of filing Annual Return (fjSTR-9, 9A, 9B)
31st Dec of next Ffj
(3) fjovt Dept & LA are exempt from furnishing annual return
(4) it is optional if ATO <2cr
LATE FEE FOR DELAfj I N FILLINfj RETURN
* Late FeeLevied for Delay i n Filing Return (fjSTR-1, 3B)
1. Registered persons who have nil outward supplies in the tax period whose
total am t of tax payable in the fjSTR-3B is NI L
5 0 0 (250 each under CfjST
+ SfjST/ UTfjST)
2 0 (10 CfjST+ 10 SfjST/
UTfjST) for every day during
which such failure continues
Whichever is Lower
2. Registered persons other than those covered in (1)whose ATO is upto 1.5cr in
preceding Ffj
2 0 0 0 (1000 each. under
CfjST + SfjST /UTfjST)
Whichever is Lower
5 0 (25 CfjST + 25 SfjST /
UTfjST) for every day during
which such failure continues
4
RETURNS
3. RP Whose ATO is > 1.5 & ≤ 5cr in Preceeding Ffj
5 0 0 0 (2500 each. under
CfjST + SfjST /UTfjST)
5 0 (25 CfjST + 25 SfjST /
UTfjST) for every day during
which such failure continues
wel
4. RP Whose ATO > 5cr i n Preceeding Ffj
1 0 0 0 0 ( 5 0 0 0 each. under
CfjST+ SfjST /UTfjST)
5 0 (25 CfjST + 25 SfjST /
UTfjST) for every day during
which such failure continues
wel
* For Delayed Filing of fjSTR -4
(1) Total Tax payable in fjSTR -4 is nil
5 0 0 (250 each. under CfjST
+ SfjST /UTfjST)
2 0 (10 CfjST + 10 SfjST /
UTfjST) for every day during
which such failure continues
wel
(2) RP other than those covered in (1) above
2 0 0 0 ( 1 0 0 0 each under
CfjST/ SfjST /UTfjST)
5 0 (25 CfjST + 25 SfjST /
UTfjST) for every day during
which such failure continues
wel
* Delayed filing of Annual Return
(1) RP whose ATO ≤ 5cr in the relavant Fy
5 0 per day (25 CfjST
+ 25 SfjST
0.04 %of turnover i n the state
or union territory (0.02 %
CfjST + 0.02 % SfjST)
5
RETURNS
(2) RP whose 5cr < ATO ≤ 20cr in the relavant Fy
100 per day (50 CfjST +
5 0 SfjST / UTfjST
0.04 %of turnover i n the state
or union territory (0.02 %CfjST
+ 0.02 % SfjST / UTfjST)
(3) RP whose ATO > 20cr in the relavant Fy
2 0 0 for every day during
which such failure continues
(100 CfjST + 100 SfjST /
UTfjST)
0 . 5 0 %of the TO of the RP i n
the state / U T (0.25 %)CfjST +
0.25 / SfjST / UTfjST )
* Delayed filing of fjSTR -7
Q u a n t u m of Late fee
5 0 (25 each under CfjST & SfjST
/ UTfjST) For every day during
which such failure continues
2 0 0 0 (1000 each under CfjST
& SfjST / UTfjST)
ACTIVITIES W H I C H C A N BE UNDERTAKEN Bfj A fjSTP
A fjSTP can undertake any/all of the following activities on behalf of a registered person, if so
authorised by him:
a) Furnish details of outward and inward supplies
b) Furnish monthly, annual or final return
c ) Make deposit for credit into electronic cash ledger
d) Furnish information for generation of e-way bill
e) Furnish details of challan i n the prescribed form
f) File an application for amendment or cancellation of enrolment under Rule 58
g) File an intimation to pay tax under the composition scheme or withdraw from the said
scheme
h) File a claim for refund & Confirmation from the registered person shall be sought
i) File an application for registration amendment/cancellation & Confirmation from the
registered person shall be sought
j) Also allowed to appear as authorised representative before any officer of Department,
Appellate Authority or Appellate Tribunal, on behalf of such a registered person provided he is
enrolled as fjSTP under rule 83
1
TDS /TCS
TAX DEDUCT AT SOURCE U/S 51
1. Who is Supplier & Receipient
Suppler = Any Person
Recipient = 7 Wonders
(1) fjovernment
(2) Local Authorities
fjovt. Agencies
(3)
(4) fjovt Department
fjovt Society
(5)
(6)
(7)
PSU- Public Sector Undertaking
Other Body set up under the Parliament (with 51%
equity with fjovt)
2. Threshold Limit
Contract Taxable value value (excl .fjST) > 2.5 Lakhs
3. Due Date of payment
Due date of Payment of TDS = within 10 days from the end of the
month
4. Rate of TDS
Intra State
⇓
CfjST = 1%
SfjST = 1%
Inter state
⇓
IfjST = 2%
Example :-
M f j
July 2023
Contract price = 10l + fjST 18%
7 Wonders
R
S
26th July - Consideration
A m t
- TDS @ 2%
of Value
Value + fjST
1 0 , 0 0 , 0 0 0 + 1,80,000
(20,000)
9 , 8 0 , 0 0 0 + 1,80,000
TDS / TCS
Indirect tax .pptx  Supply under GST, Charges of GST
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Indirect tax .pptx Supply under GST, Charges of GST

  • 1. Suppy Under GST 1 fjlimpse → Sec 7 (1)(a) Sec 7 (1) (aa) Sec 7 (1)(b) Sec 7 (1) (c) → SH I, SH II, SH I I I → Composite & mixed supply. W h a t is fjST ? - fjST is a Tax (Indirect Tax) - which is imposed on - (1) Supply of (2) goods (3) Services both for (4) consideration 1.SUPPLfj  Sec7 ( 1 ) (a) :→ Supply - Al l the forms of supply of goods / services I both such as :- [Key -BEST L2DR] → B Barter → E Exchange → S Sale / services → T Transfer of Business Assets → L1 License → L2 Lease → D Disposal of Business Assets → R Rent, etc.. for a consideration. i n course or furtherance of business  Sec 7 (1) (c) : → Supply without Consideration The activities specified i n schedule I made without a consideration. (If i n course of Furtherance of business) :→ [Key :- DRP] D DISPOSAL / Permanent trf of Business Assets (If ITC has been availed) R Transaction between Related Parties/ Distinct Person e.q.(branch) P Transaction between Principal & Agent  Sec7(1) (b) → Import Service → → Importation of service for a consideration → whether or not i n course of furtherance of business. 02 SUPPY UNDER GST
  • 2. Suppy Under GST 2  Sec7(1) (aa) : → Supply Between AOP / BOI TRUST etc & his member - The Activities or transactions, by a person other than an indivisual (eg: AOP/ BOI/ Club), to its members or constituents or visa versa for cash, deferred payment or other valuable Consideration 2. f j O O D S [U/S 2(52)] - Every ki nd of movable property Includes : Actionable claims e.g. • • Transfer of unsecured Debt Insurance Debt • • Right to arrears of Rent Lottery → → • fjambling / Betting / Online money gaming & etc fjrowing crops fjrass and things attached to or forming part of the l and which are agreed to be severed before supply or under a contract of supply. Excludes : → Money-But shall not include any currency that holds numismatic value ( e.g.antique coins) → Securities. e.g. sale / purchase of shares debentures derivative bonds, etc. 3. SERVICES [U/S 2(102)] - Anything other than goods. - Includes • • use of Money ( ie. Interest received on loan) conversion of money by cash or any other mode for which a seperate consideration is charged ( i.e. foreign currency converted into INR) NOTE: Services include facilitating as arranging transaction i n securities e.g.booker charges.
  • 3. Suppy Under GST 3 CONSIDERAT I O N Payment i n money or otherwise for supply By the recipient or any other person Excluding subsidy given by Central/State fjovernment Monetary value of any act or forbearance for the supply NOTES : Deposit to be considered as payment O N L f j W H E N the supplier applies such deposit as consideration for the said supply. BEST L2DR Import Service furtherance of business No Supply No Supply No Supply Supply N O f j es f j es f j es N O N O N O (i..e. non-refundable deposit or deposit adjusted against rent) Summary Chart N O Consideration N O fjes I n course or f j es * SUPPLfj W I T H O U T CONSIDERATION - Sec 7 (1)(c) + SHI [Key :- DRP] D Diposal of Business Assets Permanent Transfer / Disposal of Business Assets, if ITC has been availed E.g. A cloth retailer gives from his business stock to his friend free of cost If ITC has been availed If ITC has not been availed Deemed Supply No supply
  • 4. Suppy Under GST 4 Analyses :- Treatment of Transfer of Assets ITC Availed × Consideration × Supply × × 7(1) (a) × 7 (1) (c) + SHI 7 (1)(a) R  Supply Between Related Person or Distinct Pearson:- Supply of goods or services or both between related person or between distinct person will qualify as Supply if it is made i n the course or furtherance of business 1. Related Persons: i) ii) Employer & employee members of the same family → Spouse, son, daughter (dependend or independent) → Parents, fjrand-Parents, Brother, sister (only if wholly dependent) fjift ` 6 0 , 0 0 0 Supply M r A M r B M r C iii) Others Example :- fjift - 4 0 , 0 0 0 - No Supply ** Supply if gift > 5 0 , 0 0 0 Employer fjift 2 0 , 0 0 0 (ITC has been availed) N O TE: Employee & employer are considered related party. → fjifts not exceeding ` 5 0 , 0 0 0 i n value i n a financial year by an employer to employee shall not be treated as supply of goods as services or both.
  • 5. Suppy Under GST 5 2. Distinct Person More than one registered branches or permises under common PAN i n a state / U T Branch or premises i n more than one state / U T Whether registered or not Treated as districts person ANALfjSIS of 7 (1) (b) +7 (1) (c) f j es Import service Consideration Available No yes Supply Parties are related part No No supply I n course or furtherance of business yes Supply (Recipient used such services for Business purposes) No No Supply P Principal Agent Relationship & visa Versa Supply of goods (no service) between principal and agent without consideration is also supply. Example :- Principal Tax invoice issued by principal Tax invoice issued by the agent i n his name Agent Third party Supply sells Receives * SCHEDULE I I I of CfjST Act 2017 :- No Supply (Negetive list) Activities that are neither supply of goods nor services. [Key :- C2 HAIFEN]
  • 6. Suppy Under GST 6 C1. Constitutional Authority or chairperson of fjovernment Bodies → Functions/ Duties performed by:- M P • • M L A Member of panchayat • • Member of municipalities. Member of local authorities • • • fjovernor of stale C & A f j ( Controller & Auditor fjeneral) Chairperson / Director i n govt body or body of local authority etc. e.g. Chairperson of IRDA / I M I D C etc. C2 Service provided by Court / Tribunal → services by any court, tribunal or consumer dispute redrescal commission H. Supply of fjoods before removal for Home Consumption. (i) supply of warehoused goods to any person before clearance for home consumption (ii) Supply goods by the consignee- (Importer) to any other person, after the goods have been dispatched from the port of origin located outside Indi a but before clearance for home consumptions A Actionable claim I n case of I. Transfer of Immovable property. No Supply Otherwise → supply → fjST ✔ construction building fjST x No Supply fjST x Building Land Where the entire consideration has been received after issuance of completion certificate or after it’s first occupation whichever is earlier after construction Lottery betting & gambling, online money fj ami ng etc Supply of fjoods No Supply fjST ✔ No fjST Other than lottery ,betting, gambling, online money & gaming etc
  • 7. Suppy Under GST 7 Example :- Date of OC/CC = 10th July 2023. (i) M r. A → Advance Booking on 1 Ja n 21 `20 L → Balance Amt on 25th July 2023. `30L * Builder will charge fjST on total amt. of `50L (ii) Mr. B → Full Payment made on 10 Jan 22 ` 9 0 l * Builder will charge fjST O N ` 9 0 l iii) Mr. C → Full payment made on 31 July 23. `1 cr * Builder cannot charge fjST from M r C on 1crbecause it is covered under Schedule I I I F Funeral, Burial, etc. Services of funeral. burial, crematorium or Mortuary including transportation of the deceased. N supply from No n Taxable Territory supply of goods from a place i n the non taxable territory to another place i n the non-taxable territory without such goods entering into India. E Services by a n Employee to the employer i n the course of or relation to his employ ment Service provided by a person to other person i n the capacity Services by an employee to the employer i n the course of or relation to his employment. Service provided by a person to other person i n the capacity Employee Not Supply Supply Directors Partners Not Supply Supply Labourers Professionals Partner/Director Remuneration to partners/ Directors Other than employee (Principal to Principal) Wages to Labourers (including Seasonal Labourers) M a n a ging/ Whole time Di rector Part time Director (Non- Executive Director) O f fjovt. Body (i.e. IRDA) Not Supply O f Non- fjovt. Body (i.e. TATA) It is a Supply fjST  100% R C M Salary to Employees (including Bonus and fjratuity)
  • 8. Suppy Under GST 8 Note: Perquisites provided in terms of contractual agreement to employee – not liable to fjST Circular No. 172/04/2022 fjST dated 06.07.2022 perquisites provided by the employer to the employee i n terms of contractual agreement entered into between the employer and the employee will not be subjected to fjST. Example:- Mr. A Mukhesh Akash Sitting fees ` 5 0 , 0 0 0 Remuneration. ` 2 , 0 0 , 0 0 0 Supply → Tax (RCM) TDS U / S 194 J of IT Act 1961 TDS U/S 192 of IT Act 1961 No Supply Supply Tax - (RCM) TDS U/S 194 J of It Act 1961 Managerial Remunaration Sitting Fees `50k + TDS U/S 192 No Supply (Part time Director) S R R R S Consideration S
  • 9. Suppy Under GST 9 Example:- (Constitutional Authority) ABC Firm Reliance CA i n job CA Labour Partne r SH I I I Job SH I I I S R R S S S S S R R R IRDA * SH I I Activities to be treated as Supply of fjoods or supply of services. [Sec 7 (1A)] 1. Transfer of Assets Immediate Transfer Transfer of title Supply of goods Supply of goods Supply of service Transfer of right i n good without transfer of title (i.e. lease/rental etc.) Deferred Transfer (e.g Hire purchase
  • 10. Suppy Under GST 10 Land Any lease, tenancy, easement, License to occupy l and Any lease or letting out of the building Building 2. Land & Building Supply of Service 3. Treatment or Process → Any treatment or process which is applied to another person’s goods is Supply of Service. 4. Supply of Service Renting of Immovable Property Agree to obligation. to refrain from an Act or situation or to do an act or to tolerate an Act eg 1. Non-compete fee 2. Compensation of contract Development. Design. Program- ming. customization, Adapta- tion. Up gradation. Enhance- ment, Implementation of IT Software Transfer of rights to use of any goods for any purpose (Renting of movable property Construction of complex civil structure building. etc. (before CC/OC) Temporary transfer or permitting the use of IPR (eg trademark, royalty ) 5. Composite Supply O f any immovable property Supply of Service Works contract Restaurant Building, Construction, Installation, Fittings out. Fabrication, Improvement, Completion, Modification, Erection, Renovation, Alteration, Commissioning Catering contract supply of food & other articles. other than alcoholic liquor for h u m a n consumption etc. Supply of Service
  • 11. Suppy Under GST 1 1 6. Supply by AOP/BOI/ To his members. • IF AOP/BOI club etc. supplies goods to its member for consideration → Supply of fjoods • IF AOP/BOI/club etc. supplies service to its members, → supply of service. 7. Transfer of Business Assets Transfer O r disposal of business assets Supply of fjoods Private use of Business Assets Supply of Service Person who cease to be tax- able person i.e. Cancellation. of registration or Shutdown of business Supply of Service Exceptions:- No fjST will be levelable i n the following cases. 1. Transferred as going concern 2. Business is carried on by a personal representative who is deemed to be a taxable person: Transfere of Business Assets * Composite Supply v/s Mixed Supply Composite Supply Mixed Supply - Comprises of two or more taxable supplies - Two or more individual supplies -Naturally bundled i n ordinary course of - For a single price where such supply does not business constitute a composite supply - One of which is a principal supply - Individual supplies are independent of each other & are not naturally bundled - Tax rate of principal supply - Tax Rate, Highest Rate of Tax
  • 12. Suppy Under GST 12 Summary :- one is principal element & other supplies depend upon the Principal element Mixed Supply Rate of fjST = highest rate Composite supply fjST Rate :Rate of Principal element No mixed No composite fjes Price → single price shown i n invoice fjes No No * Important clarification Issued by CBIC 1. Transfer of Tenancy Rights / Pagadi - Supply of Service & liable to fjST (Subject to exemption notification) - Transfer of Tenancy Rights cannot be treated as sale of l and or Building. - Stamp duty & registrations charges are levied on such transfer of Tenancy rights - Service provided by outgoing tenant by way of surrendering the tenancy rights against consideration i n the form of portion of tenancy premium → liable for fjST 2. Priority sector Lending Certificates (PSLCS) Priority Sector Lending Certificate supply of fjoods as per RBI FAQ’s 3. Supply of Printed Books, Pamplets, Brochures, Enevelops, etc - If content supplied by the recepient of supply → Supply of Service - If content belongs to the supplier → Supply of fjoods NOTE :- Supply of service / fjoods depends upon the principal element 4. fjST on Superior kerosine oüs (SKO) - Retained by receipient will be qualified as supply eg: If 2 0 0 Ltr transferred by supplier & only 30Ltr are retained by receipient. then supply is is a only of 30L Supply a) Supplier removing 2 0 0 l to recipient b) Recipient retaining 3 0 l c) Recipient returning 170l No Supply No Supply
  • 13. Suppy Under GST 13 5. Inter-State Movement of Various Modes of conveyance - Inter state movement of various modes of conveyance between distinct persons including trains buses, trucks, tankers, trailers, vessels, containers aircrafts (i) Carrying goods or passengers or both or (ii) For repairs and maintenance cexcept i n the cases where such movement is for further supply of the same conveyance shall be treated neither as a supply of goods nor supply of service. → for service, Example • Bus/Truck → for Service • Value of Bus = 80L • Value of servicing charged by M f j service center - 5L M f j tours & transport mumbai M f j Service Center (Surat) Impact:- 1. Bus/Truck sent to M f j service center for repair → No supply → N O fjST on 80L 2 . M f j Service center charged 5L for repair → Supply of service → fjST on 5L 5. Clarification on scope of principal and agent relationship under Schedule I of CfjST Act i n the context of del credere agent (DCA) Whether a D C A falls under the ambit of agent under Para 3 of Schedule I of the CfjST Act? » It depends on the following possible scenarios: • I n case where the invoice for supply of goods is issued by the supplier to the customer, either himself or through DCA, the D C A does not fall under the ambit of agent. • I n case where the invoice for supply of goods is issued by the D C A i n his own name, the D C A would fall under the ambit of agent. 6. Treatment or sales promotion scheme under fjST C A S E 1.If D C A is not a n Agent as per Schedule I Issue Clarification Whether the temporary short-term Interest on Loan Supply of Service transaction-based loan extended by the D C A Supplier D C A to the recipient (buyer), for which Interest would not form part of the Value interest is charged by the DCA, is to be of Supply of fjoods supplied by the supplier. included i n the value of goods being supplied by the supplier (principal).
  • 14. Suppy Under GST 14 → CASE 2. If D C A is an Agent as per Schedule I Issue Clarification D C A makes payment to the principal on behalf of the buyer and charges interest to the buyer for delayed whether the interest will form part of the value of supply of goods also or not? Value of Interest: 1.Not Independent Supply 2. It is a part of Value of fjoods as per section 15(2)(d) The activity of extension of credit by the D C A to the payment along with the recipient would not be considered as a separate supply value of goods being supplied, as it is i n the context of the supply of goods made by the D C A to the recipient. The value of the interest charged for such credit would be required to be included i n the value of supply of goods by D C A to the recipient as per section 15(2)(d) of the CfjST Act. 6. Treatment of sales promotion schemes under fjST [A] If covered under Schedule I of CfjST ACT If not covered under Schedule I of CfjST ACT FREE SAMPLES A N D fjIFTS Supply No Supply [B] Composite Supply Mixed Supply B U f j O N E fjET O N E FREE OFFER Single Price is charged for 2 items or fjST is leviable 7. State fjovernment provides services by way of grant of alcoholic license, against con sideration - No Supply. 8. Services by way of display of name or placing of name of the plates of the donor i n the Premise of charitable organisation receiving donation or gifts from Individual Donor’s.
  • 15. Suppy Under GST 15 If the following conditions are satisfied • fjift or Donation is made to a charitable organization • The payment has the character of gift or donation • The purpose is philanthropic (i.e. it leads to no commercial gain) • A n d not advertisement fjST is not leviable 9. Clarification regarding fjST applicability on liquidated damages, compensation and penalty arising out of breach of contract or other provisions of law [Circular Agreeing to the obligation to refrain from an act Agreeing to the obligation to tolerate an act or a situation Agreeing to the obligation to do an act No. 178/10/2022 fjST dated 03.08.2022] Expression “Agreeing to the obligation to refrain from an act or to tolerate an act or a situation, or to do an act” has three limbs a) Agreeing to the obligation to refrain from an act: - Non-compete agreements b) Agreeing to the obligation to tolerate an act or a situation: - Shopkeeper allowing a hawker to operate from the common pavement i n front of his shop against a monthly payment by the hawker. c) Agreeing to the obligation to do an act: - Industrial uni t agrees to install equipment for zero emission/discharge at the behest of the RWA of a neighbouring residential complex against a consideration paid by such RWA • Above three activities must comply with the following conditions: 1. There must be an expressed or implied agreement or contract must 2. exist Consideration must flow i n return to this contract/agreement A. Liquidated Damages Liquidated damages No agreement Compensate for injuring loss or damage N O fjST Not constitute consideration Compensation is only flow of money Examples of such cases are: 1. damages resulting from damage to property, negligence, piracy, unauthorized use of trade name, copyright, 2. penalty stipulated i n a contract for delayed construction of houses, 3. forfeiture of earnest money by a seller i n case of breach of ‘an agreement to sell’ an immovable property by the buyer
  • 16. Suppy Under GST 16 B. Cheque dishonour fine/ penalty Such penalty imposed not for tolerating the Act No consideration N O fjST C. Penalty imposed for violation of laws E.g – Penalty for traffic violations, or for violation of pollution norms Not constitute consideration N O fjST D. Forfeiture of salary or payment of bond amount i n the event of the employee leaving the employment before the m i n i m u m agreed period penalties for dissuading Employer – forfeiture of salary of employee or recovery of bond. It’s penalty for non-serious employee Employee does not get anything i n return from the Employer employer against payment of such amount Not taxable E. Late payment surcharge or fee The facility of accepting late payments with interest or late payment fee,fine or penalty is a facility granted by supplier naturally bundled with the m a i n supply. it should be assessed at the same rate as the principal supply. F . Fixed charges for power m i n i m u m fixed charges/capacity charges and the variable/energy charges are charged for sale of electricity and are thus not taxable as electricity is exempt from fjST. fj. Cancellation charges The facilitation service of allowing cancellation against payment of cancellation charges is also a natural part of the bundle. For example: cancellation charges of railway tickets for a class would attract fjST at the same rate as applicable to the class of travel (i.e., 5% fjST on first class or air-conditioned coach ticket and ni l for other classes such as second sleeper class). Same is the case for air travel.
  • 17. 1 Charges to GST fjlimpse I. II. Nature of Supply (Inter State / Intra State) Who is liable for payment of tax? III. (FCM, RCM, Eco) Composition Scheme U/S 10. UlS 10(2A) N O INTER STATE INTRA STATE IfjST Place of supplier & Place of Supply in Same State/ same U T • Supply of goods to foreign Tourist OR • Supply To/ By SEZ yes yes N O CfjST + SfjST/ UTfjST NOTE: Export / Import of fjoods / Service / Both ↓ Always treated as INTER STATE Example:- 1 Place of Supplier = Maharashtra Place of Supply = Delhi M r A M a h a rashtra M r B Delhi Inter State IfjST Example:- 2 Place of Supplier = M a h a rashtra Place of Supply = Maharashtra M r A M u m b a i ( M a h a rashtra) M r B Pune ( M a h a rashtra) Intra State CfjST & SfjST of Maharashtra 03 CHARGES TO GST I Nature of Supply
  • 18. 2 Charges to GST Example :-3 Place of Supplier = D a m a n Place of Supply = D a m a n M r A D a m a n M r B D a m a n Example :-4 Place of Supplier = D a m a n Place of Supply = chandigarh M r A D a m a n (UT) M r B chandigarh (UT) Inter State - IfjST Example :- 5 Place of Supplier = Punjab Place of Supply = chandigarh M r A Punjab (state) M r B chandigarh (UT) Inter State- IfjST Example :-6 Place of Supplier = Delhi Place of Supply = Delhi M r A Delhi M r B Delhi Intra State CfjST + SfjST of Delhi NOTE: State includes a Uni on Territory with Individual Legislature. Delhi, Puducherry Jammu & Kashmir have their own individual Legislature and hence covered under State fjST Law. Intra State CfjST +UTfjST
  • 19. 3 Charges to GST B Reverse Charges Mechanism u/s 9(3) of fjST Act R C M uls 9(4) of fjST Act (Not Imp) Not Applicable fjoods on which R C M will be Applicable Services on which R C M will be applicable Most Important Under this provision, tax under reverse charge is payable by the N O TIFIED class of registered persons on NOTIFIED categories of supplies of goods and/or services received by such registered persons from any unregistered supplier Example: A developer purchased cement from unregistered person [If developer charged fjST on sale of flats @1%/ 5%] * Specified Services on which Tax Payable by Recipient under RCM, If location of Recipient is Taxable Teritory 1. Services provided by fjTA to Specified person Supplier = fjTA (fjoods Transport Agency) Recipient Exempt→ Entry Note :- IF fjTA provides. services to fjovt Dept, fjovt Agency, If recipient is registered only for deducting TDS other than 7* 7* Taxable Exempt →Entry ( N O fjST) 21B 1) Registered Factory 2) Registered Society 3) Registered Cooprative Society 4) Registered person under fjST Act→ (Except: fjovt Dept / LA | fjovt. Agencies which is registered. only for deducting TDS) 5) Registered casual Taxable Person 6) Partnership Firm (Reg/ Unreg) 7) Body Corporate I I Liability to Pay Tax on : A] Supplier [FCM] B] Recipient [RCM] C] ECO [in CA Inter 4 cases Applicable U/S 9(5)]
  • 20. 4 Charges to GST Services (fjTA) Note 2 I n case of fjTA (1)If Q is silent → Rate of fjST = 5% & R C M (2)If Q says Rate of fjST is 5%. & fjTA is URP → R C M (3)If Q says fjTA Opts for F C M → F C M (fjST Rate @ 12%/ 5%) Example :- M f j Transport Provide Transportation Bhoomi & Co. (Firm) Value of Service 1l → If M f j opted for F C M - M f j collect value 1 L + fjST from Bhoomi & Co. & M f j will pay such fjST A m t to fjovt BUT → IF M f j opted for R C M - - M f j collect only value of services ₹1Lfrom Bhoomi & Co. & Bhoomi & Co. will pay his fjST Liability directly to fjovt Example :- Exempt 21 A Rel Ltd (RP) F C M R C M R C M Opted F C M Opted by fjTA fjovt Dept (RP for deducting TDS) only BE (URP) Tax M R A ( N O N BE) fjTA
  • 21. 5 Charges to GST 2 & 3 Legal Services No Exempt - Entry 45 CASE I :- Services provided by - Senior Advocate - Other than Senior Adv - Firm of Advocate - Arbitral Tribunal If Recipient is • fjovt • LA = Local Authority • fjE =fjout Entity • fj A= fjout Authority • Non Business Entity (legal services used for personal purpose) yes Tax = R C M IF Pfj TO of BE  Threshold l i mi t of registration (10L ,20L ,40L) Business Entity (BE) Supplier ↓ Senior Advocate • Recipient Advocate or • Firm of Advocate yes Exempt Taxable - R C M No If Pfj To Recipient  Threshold Limit of Registeration CASE I I Supplier ↓ - other than Senior Advocate or -Firm of Advocate Recipient ↓ Advocate or Firm of Advocate Exempt CASE I I I
  • 22. 6 Charges to GST Example :- Advocate BE (Pfj TO  TSL) BE (Pfj TO > TSL) N O N BE Exempt R R R fjout/LA/fjE/fjA Tax (RCM) S S (Senior) S 4. Sponsorship services. Supplier = Any Person Recipient - Partnership Firm - Body Corporate Example Reliance Ltd (Sponsor) ABC Firm (Sponsor) Dance Indi a Dance XfjZ Co. (Show O rganiser) M r Ram R R R 5OL- R C M → Tax liability on Rel Ltd 10L + fjST - F C M Tax liability on xyz Co. 30L (RCM) - Tax Liability on ABC Firm S S S 6. Services supplied by a Director Di rector Supplier Recipient Company or Body Corporate ↓ R C M N O TE: IF TDS deduct u/s 192 OF IT Act - No Supply → No fjST (WTD or M D )
  • 23. 7 Charges to GST 7 Insurance Agent Service service supplied by Insurance Agent Supplier Recipient Insurance Agent Any person carrying on Insurance Business Example M r A (Insurance Agent LIC fjovt commission 1OL R C M fjST under R C M S R 8. Services supplied by a Recovery Agent Supplier Recipient Recovery Agent. Banking co, Financial Institution , Non-Banking Financial Co. Example Recovery Agent (Supplier) Bank/ FI/ NBFC (Recipient) Recovery of Dues (RCM) Service of S R S F C M R 5B & 5C :- Transfer of Transferable Development Right (TDR) / Long Team Lease (30 yrs or more) / Additional Floor Space Index (AFSI)/ Floor space Index (FSI) Supplier Recipient Any Person Promoter / Developer
  • 24. 8 Charges to GST Example :- M R A (Supplier) TDR/AFSI/FSI | Long term lease M f j Builder CASE I. 1 cr [Consideration] (Recipient) Suppose M f j Constructed Residential fats (100 flats) & sold such flats before OC/CC for ₹ 12Cr Impact: 1) fjST will be charged on sale of flats for ₹ 12 Cr 2) No fjST on 1 cr. CASE 2 Suppose M f j Sold such flats after OC/CC for ₹ 15Cr Impact: 1)No fjST will be charged on ₹ 15Cr (SH III) 2) M f j will be liable for payment of tax on ₹ 1Cr under R C M CASE 3 Suppose M f j Sold 6 0 flats before O C/CC for ₹ 8 Cr & balance 4 0 flats sold after for OC/CC for ₹ 7Cr. Impact: 1) 6 0 flats sold before OC/CC -fjST will be charged on 8 cr 2 ) 4 0 flats sold after OC/CC -fjST will not be charged on 7 cr 3 ) M f j will be liable for payment of Tax on (40% of (1cr) = 40L under R C M A N D M f j will not be liable for payment of Tax on (60% of 1cr) = 6 0 L 5A. Renting of Residential Dwelling 5A. Renting of Residential Dwelling Supplier Any person Recipient Registered person under fjST Services Renting of Residential Dwelling R C M N O TE: If recipient is a registered person & if such property is used for own residence (in personal capacity) → Exempt (for personal use)
  • 25. Example :- (for co employee stay) R C M RP for Personal Residence - Renting Exempt RP 9. Services by Music Composer, Photographer & Artist Supplier Recipient Music composer Original music Music Co Photographer Original photograph Producer Artist Original art work Producer Example S 4 1 R S R C M 2 F C M 5 M f j Royalty = 2L Royalty = 3L Supplier ↓ + (Music 18%fjST = 36 K 18%fjST = 54 K Composer) ↓ ↓ Liability to pay Liability to pay fjST on TIPS fjST→ on TIPS under F C M (beacause Tips is not original composen) 3 6 fjST 54 k 36 k - 36 K (RCM) 18 K credit fjovt Dept 9 Charge to GST
  • 26. 10 Charges to GST 9A. Author - Supply of Service by Author Supplier Service Author permitting the use of enjoyment of copyright Recipient Publisher i n Taxable Teritory Publisher is liable for payment of tax under R C M Author can be liable for payment of tax under F C M if (i) Author has taken Registeration under fjST Act (ii) Filed a declaration i n the Form at Annexure I to the fjST Commissioner (iii) He shall not withdraw the option within a period of 1yr. 10. Supply of services by Members of overseeing committee to RBI Example OSC R C M F C M RBI Receipient M f j (Supplier) Supplier Members of OSC S S R R 11. Di rect Selling Agent Supplier Recipient Individual DSA (except body corp, partnership firm, LLP) Bank, NBFC 12. Services provided by Business Facilitator to a banking company Prabhas (Agent of BF) R C M Ins Co. (Mumbai) S R R S Bank (Mumbai) F C M Ramcharan (BF) S R
  • 27. 11 Charges to GST 13.Services provided by a n agent of Business correspondent to Business correspondent (BC) R C M F C M R Agent of BC (KRK) Ins Co. (Mumbai) S R R S SRK F C M Bank (Mumbai) 14. Security Services. → Supplier Any person other than body corporate eg Indivisual, Firm, AOP, BOI → Recipient a registered person Except 1Person who is registered only for deducting TDS or → Services 2 Person registered under composition scheme services provided by way of supply of security personnel Example :- Reliance Industries Ltd (body corp) F C M RP S R Example :- M r A (RP) (Supplier) Exempt 66(B)-ch 4 A & Co. (RP under composition Scheme) Reliance I n d Ltd. (RP) M & Co. (RP) PQR School (URP) fjovt Agencies (RP only for deducting TDS)
  • 28. 12 Charges to GST 15. Renting of Motor Vehicles Supplier - Any person other than body corporate Recipient - Any body corporate Services - Renting of motor vehicle designed to carry passangers where the cost of fuel is included i n the consideration. Condition: Supplier does not issue an invoice charging fjST @ 12% (CfjST6% + SfjST/ UTfjST 6%) It means if Tax Rate is Example :- M r x (RP) M r f j (RP) M r x (URP Rate 5% = R C M fjST@ 12% = F C M A Ltd R & Co. R R R R S S S S 16. Lending of Securities Supplier Lender Recipient Borrower * R C M only under IfjST ACT Any person i n Non Taxable Territory Supplier Recipient Other than non-taxable online recipient (It means recipient should be a registered person) Services O I D A R - Online Information Database Access A n d Retrival Services. eg:- Online gaming, data services, movies, etc. 12%.. – F C M 5% - R C M Do you Know ? Supplier is URP & No Tax Invoice – R C M
  • 29. 13 Charges to GST Example :- URP (Non Taxable Online Recipient) TT F C M Netflix (USA – NTT) R S R C M Netflix (USA – NTT) R S C] E-Commerce Operator (ECO) E-Commerce Operator (ECO) Tax liability on ECO U/S 9(5) 4 Cases Tax liability on original supplier u/s 52 Al l other Cases (Chp 12) * Tax Payable by E-commerce Operator on Notified Services [uls 9(5) OF CfjST Act, 2017] 1 . Transportation of passengers by a radio-taxi, motor car, maxi cab, motor cycle, omnie bus or any other motor vehicle Eco is liable for the payment of Tax Example :- Owner of Car (Original Supplier) Passenger (Original Recipient) OLA = 8 0 0 0 fjST 5 0 0 Comm=20% ECO fjST 5 0 0 fjST Dept 2 80% of 10k value 10k 1 3 RP (other than No n Taxable Online Recipient) TT
  • 30. 14 Charges to GST 2. Accommodation for lodging or residential purpose i n hotels, inn, guest house, campsite, etc. 3. Housekeeping such as plumbing, carpentering, etc. If supplier is liablefor Registration U/S 22 of CfjST Act ↓ Supplier is liablefor tax payment If supplier is notliable for registration U/S 22 of CfjST Act ↓ ECO is liable forpayment of Tax Example For 2 :- 5 0 0 0 + fjST = 8 0 0 0 O f j O fjST 5 0 0 1800 9 0 0 1 0 0 0 0 + fjST 1 1 Original Recipient Original Recipient ECO URP owner (original supplier) Hotel (Original supplier) Com= 25% 2 2 3 fjST = 9 0 0 3 fjST= 1800 fjST Dept Example For 3 :- M r B (OR) Urban clap ` 6 0 0 0 + fjST 1080 ` 6 , 0 0 0 + fjST 1080 1 1 M r A (OR) comm = 20% M r C (URP) ABC Ltd (OS) fjST Dept 2 2 3 3 fjST 1080 fjST= 1800
  • 31. 15 Charges to GST 4. Restaurant Service Provided by eco (eg Zomato. Swiggy) * IF ECO is operated outside I n d ia If the Eco is i n TT N O N O If ECO does not have Physical presense i n TT If Eco has neither physical presense nor any representative i n TT Tax paid by ECO Tax to be paid by person that is representing ECO Tax to be paid by person appointed by ECO for the purpose of paying Tax Restaurant A B fjes Liability to pay tax on original supplier Restaurant + Accommodation O n l y Restaurant Liability to pay tax on Eco on Restaurant Services Declared Traiff > ` 7 5 0 0
  • 32. 16 Charges to GST U/S 10 U/S 10 (2A) Manufacturer Trader Rrestorent (Except manufacture of notified goods) Manufacturer & Trader can provide Services but upto specified limit:- Trader. Manufacture, Resto can avail the benefit of composition scheme. uls 10 if :- Pfj A f j TO ≤150 Lakh/75 *lakh * If any uni t situated i n STNAM3 . UK, then PfjATO should be ≤ 75 lakhs S T Skikkim Tripura N A Nagal and Arunachal Pradesh M 3 U k Meghalaya, Mizoram, M a n i p u r Uttarakhand Any person which is not eligible for composition scheme u/s 10 (Except Manufacturer or Notifled fjoods service Provide Except Resto Service) Eligibility l i mi t PfjATO ≤ 5 0 lakhs H Composition schme U/S 10 & U/S 10(2A) * C O M P O S I T I O N SCHEME 10% of Pfj TO of a State / U T w or e `5 , 0 0 , 0 0 0 h N O TES:- 1. Meaning of Aggregate Turnover - ALL Outward Supplies Except- (1) Interest Received on LAD (Loan, Adv. Deposit) (ii) fjST (iii) Any Inward supply on which tax payable by Recepient under R C M
  • 33. 17 Charges to GST eg 1. Details of M f j & Co. for Py 22-23 (Trader i n Mumbai ) -Intra state supply of :- - Product P (fjST @18%) = 2 0 L Q (fjST@12%) = 5 0 L R (Exempt) S (NIL Rated) = 3 0 L = 4 0 L -Int Reed O n LAD (Exempt) = 12 L -Advocate provide legal services. to M f j & CO. on which tax liability on M f j & C O under R C M (fjST @18%) = 1 1 L (i) Compute ATO (ii) IS M f j & Co Eligible for Composition Scheme uls 10 (for Fy 23-24) (iii) Can M f j & Co. provide services. to Recipient after opting composition scheme (1) ATO 1 Intra State Supply of Product P 2 0 L 2 Q 5 0 L 3 R 3 0 L 4 S 4 0 L 5 Int on LAD - ATO 140 L (ii) fjes. Eligible for composition Scheme because ATO is ≤ 150L (iii) fjes, M f j & Co. can provide services but upto specified l i mi t 10% of 140 L = 14L or 5L =14,00,000 eg2. (Branch) → (mfg) U n i t of M f j & C O PfjTO U n i t I - U n i t 2 - M u m b a i Delhi 25L 75L U n i t 3- Jaipur 35L →ATO OF M f j & C O = 25L + 75L+35L = 135L →IS M f j & Co Eligible for composition uls 10. = yes * →Can M f j & Co. provide services)→ yes but
  • 34. 18 Charges to GST Per state M u m b a i = 10% of 25 L or = 5 , 0 0 , 0 0 0 5L Delhi = 10% of 75L or 5L =7,50,000 Jaipur =10% of 35L 5 , 0 0 , 0 0 0 or 5L 17,50.000 ⟹ Points to be Noted 1 Tax Rate SN Cases 1. Mfgr u/s 10 CfjST 0.5% OF ATO SfjST 0.5% of ATO 2. Trader u/s10 0.5% of Taxable Supply 0.5% of Taxable Supply 3. Resto o/s 10 2.5% of ATO 2.5% OF ATO 4 Other Service 3% OF ATO Provider uls 10(2A) 3% OF ATO eg 1.M f j Pvt Ltd Registered under composition- Scheme Details of a quarter April 23 to June 23 - Intra State supply (fjST @12%.) Intra State supply (fjST @18%) = 5L =10L Intra State supply (Exempt) =20L Intra State supply (Nil Rate) - Int Reed on LAD =8L = 121 -Inward supply on which tax is payable under R C M (fjST@ 18%)= 5L (i)compute composition Tax Liability of M f j Ltd. (li) compule Total Tax Lability of M f j Put Ltd Presume M f j Pvt Ltd is a a) Manufacturer b) Trader c) Resto d) Registered u/s 10 (2A)
  • 35. 19 Charges to GST Ans: computation of Tax liability of M f j Pvt Ltd. (A) Particulars M f r r Trader Resto 10 (2A) Tax Rate 0.5%xATO 0.5% OF TS 2.5% XATO 3% ATO Turnover Intra State Supply (12%) 5 , 0 0 , 0 0 0 " (CfjST @18%) 1 0 , 0 0 , 0 0 0 5 , 0 0 , 0 0 0 1 0 , 0 0 , 0 0 0 5 , 0 0 , 0 0 0 1 0 , 0 0 , 0 0 0 5 , 0 0 , 0 0 0 1 0 , 0 0 , 0 0 0 2 0 , 0 0 , 0 0 0 - " (Exempt) " (NIL) Interest O n LAD - 8 , 0 0 , 0 0 0 - - 4 3 , 0 0 , 0 0 0 15,00,000 2 0 , 0 0 , 0 0 0 2 0 , 0 0 , 0 0 0 8 , 0 0 , 0 0 0 8 , 0 0 , 0 0 0 - - 4 3 , 0 0 , 0 0 0 4 3 , 0 0 , 0 0 0 (B) Total on which Composition Tax will be charged (C) Composition Tax 21,500 21,500 7,500 7,500 1,07,500 1,07,500 1,29,000 1,29,000 CfjST→ A X B SfjST → A X B 4 3 , 0 0 0 15,000 2,15,000 2,58,000 (D) Tax payable by N f j 9 0 , 0 0 0 9 0 , 0 0 0 9 0 , 0 0 0 9 0 , 0 0 0 Pvt Ltd under R O M (18%OF 5L) (E) Total Tax Liability 1,33,000 1,05,000 3 , 0 5 , 0 0 0 3,48,000 (C+D) 31. Aug 23 ↓ ATO > 150L ↓ From 31st Aug 23. Composition scheme. holder will be converted i n Regular Scheme holder competition Scheme 31/3/23 Regular scheme 31-3-24 Py ATO 120L 1-4-22 2. Composition scheme shall lapse with effect from the day on which aggregate Tlo during Financial fjear exceeds limits specified From 1.4.23 opt composition scheme U/S 10
  • 36. 20 Charges to GST 3. composition Scheme to be adopted uniformly by all the registered person having the came PAN Example M f j 1 (Pune) CompositionScheme M f j 2 (Delhi) Regular Scheme Not Allowed 4. composition Scheme Holder shall neither collect any tax from the recipient on Supplies made by him, nor shall be be entitled to any credit on input tax. 5. Inter State Supplies not allowed to Composition Scheme holder, but no restrictions to procure goods / received Services from Inter State Supplier. 6. Composition scheme holder shall mention the words "composition Taxable Person" on sign board displayed at prominent place at his principal place of Business & Additional Place of Business. ⟹ Persons who cannot opt for Composite Scheme u/s 10 /10(2A) 1. As per Section 10 a manufacturer or trader who provides services & the value of service has exceeded Specified l i mi t 2. Person making non taxable supplies eg] Alchol, Petrol, Supplies under Schedule I I I 3. 4. Person making Inter-State supply of fjoods / Services Manufacturer of Notified fjoods Notified fjoods a) b) ice cream, edible ice Pan M a s a l a c) d) Tobacco, Tobacco substitutes Aerated water e) f) Fly ash Bricks / blockS Building bricks g) h) bricks of fossil earthen I roofing tiles, etc. 5. 6. Non Resident Taxable Person / casual Taxable Person. He is engaged i n making any supply of fjoods (Inter state supply) or services through ECO, who is requried to collect tax at source u/s 52.
  • 37. 1 Place of Supply fjoods Services Supply within Indi a ↓ U/S 10 of IfjST Act ↓ Applicable i n Exams • Import • Export ↓ U/S 1 1 of IfjST Act ↓ x LOS & LOR ↓ TT ↓ U/S 12 of IfjST Act ↓ Applicable i n LOS & LOR ↓ N .T.T ↓ U/S 13of IfjST Act x ↓ Chapter 5 – place of supply Place of Supply LOS = M u m b a i Inter state ↓ IfjST = 10L X 12% = 1.2 L Reliance Ltd (Supplier) M u m b a i M & C O (Recpt) Delhi Exams PARTI: U/S 10- supply of fjoods within I n d ia Sec 10 (1)(a): Movement of fjoods POS:- Location at which the movement of goods terminates Example fjoods = 1OL fjST @12% POS = Delhi Sec 10(1)(b): fjoods are delivered on the Direction of third party POS = The principal place of business of such third person Example Mr. M f j (Mumbai) Mr. Keju (Delhi) Mr. A (Pune) Invoice 1 Invoice 2 05 PLACE OF SUPPL Y
  • 38. 2 Place of Supply Transaction 1 Transaction 2 Supplier = M f j Recipient = keju Supplier = Keju Recipient = M r M f j POS = Delhi U/S 10(1)(b) for ₹ 10 Lakhs POS = Pune U/S 10(1)(b) for = ₹ 12lakhs IfjST (Inter State) IfjST (Inter State) Sec10(1)(c): No movement of fjoods POS = Location of such goods at the time of Delivery Sec10(1)(d): fjoods are assembled or Installed POS = Location where goods are assembled or installed. Sec10(1)(e): where the goods are supplied on-board, a conveyance like train, aircraft, vessel or motor vehicle POS = The place where such goods are taken on board a conveyance Sec10(2): where the place of supply of goods cannot be determined i n terms of the above provisions → It shall be determined i n such a manner as may be prescribed. I I Supply of services where LOS & LOR is Taxable Territory [sec 12of IfjST Act 2017] * Summary 12(3) = Services Related to Immovable property/ House Boat certain performance Based Services 12(4) = 12(5) = Training & Performance Appraisal Services Entry ticket. 12(6) = 12(7) = Event Management | Sponsorship services. Transportation of fjoods 12(8) = 12(9) = Transportation of passengers Services on Board a conveyances 12(10) = 12(11) = Telecommunication services. Banking services. 12(12) = 12(13) = Insurance Services Advertisement for fjovt. 12(14) = 12(2) = fjeneral Provision / Default provision for other services.
  • 39. 3 Place of Supply Note : * I n following cases POS: Location of Such Registered Person (Only if Recipient is a registered person) Key: T3 IfjEr T1 T2 Training & Performance Appraisal Services Transportation of fjoods. T3 Transportation of passenger Insurance Services I f j E fjeneral provision Event Management Sponsorship services. Sec 12(3): Services Related to Immovable Property/ House Boat - Example Designers Engineers. Surveyors, Right to use immovable Property constn related work A Architects, Interior B C Accommodation for organizing Marriage, Reception, official, social, cultural, religious, business function, etc. Lodging Accommodation by way of Hotel, Inn, fjuest House, Home Stay incl a house boat or any other vessel Any Services Ancillary to A,B,C D Services : W i t h i n Indi a POS = Location where the immovable property or boat or vessel is located or intended to be Located Outside Indi a POS = Location of Recipient POS = If property is situated NOTE: If immovable property/ house boat/ vessel located i n more than one state
  • 40. 4 Place of Supply ↓ Absense of Arrangement or contract ↓ POS = on reasonable basis as may be prescribed ↓ CASES Basis of Proportionate 1. Hotel, fjuest House & its Ancillary services etc. Number of Night’s stayed in such property (not for marriage, reception, etc.) 2. Hotel, fjuest House etc. for marriage, reception Area of immovable property lying i n OR each state / U T If any immovable property cover more than one state 3. House boat, vessel & their ancillary services Time spent by the boat or vessel i n each state/ U T Example 1 Taj Bangalore charged ₹ 1 0 , 0 0 0 / Night from M f j POS = Bangalore ? Intra Los = Bangalore ₹ 9 0 0 = CfjST O n 10k ₹ 9 0 0 = SfjST on 10k Example 2 M f j provides services to Piyush for Interior Decorator service of Building i n Dubai Inter → IfjST M f j (delhi) Piyush (Surat) Dubai POS = Surat Los = Delhi Example 3 Immovable Property cover more than one state M r A (Mumbai) Paid 5 l → POS = Delhi Paid 5 l → POS = M u m b a i Delhi Taj M u m b a i Taj (i)
  • 41. 5 Place of Supply Total a m t paid = 10L M r A (Mumbai) 2 nights Delhi Taj M u m b a i Taj (ii) 3 nights Total A m t Paid = 10L Proportionate on the basis of night M u m b a i 3 nights A m t = 6 l Delhi 2 nights A m t = 4 l ← POS → Sec 12 (4): Certain performance Based Services 1. Fitness & Health Services 2 cosmetic & Plastic Surgery 3 Beauty Treatment 4 Personal fjrooming 5. Restaurant & Catering services POS = Location where service is. actually performed Sec12(5): Training & Performance Appraisal Services POS = Recipient is RP (B2B) ↓ Recipient is RP (B2C) ↓ POS = Location of such registered person Location where such service is actually performed. Sec 12(6): Admission to a n Event (Entry Ticket) e.g. Sporting Event, Educational event, fair, exhibition, amusement park. etc Pos = Place where the event is actually held or where the park or other place is located.
  • 42. 6 Place of Supply Sec 12 (7): Organizing a n event & ancillary services to organization of event & assigning sponsorship to such events. Recipient is RP ↓ Recipient is URP ↓ Event held W i t h i n Indi a ↓ POS=Location where the event is actually held POS: Location of such Recipient Outside Indi a ↓ Location of the recipient Note * Event held i n more than one State & Consolidated amount charged Reliance Ltd (RP) (Mumbai) Mr. A (URP) (Surat) Event manager (RP i n Jaipur) ↓ Absence of contract or agreement ↓ The value is determined i n accord once with Rule 5 by the application of fjenerally Accepted Accounting Standards Example POS = M u m POS = M u m Event i n Dubai Event i n Delhi POS = Surat Event i n Dubai Event i n Delhi S S R R 6l 6l 10l POS = Delhi 8l Sec 12(8): Transportation of fjoods including m a i l or courier Recipient is RP POS = Location of such Registered person POS = Place at which goods are handed over to transporter Recipient is URP Note : Freight Changed for export of goods → POS = Destination of fjoods.
  • 43. 7 Place of Supply Example M r A (fjTA) Jaipur Pos = M u m b a i Pos = Delhi fjoods handed over i n delhi Mr. B (RP) M u m b a i Mr. C (URP) Surat fjoods handed over i n delhi Sec 12(9) Transportation of passengers (Tickets) Recipient is RP POS = Location of such Registered person POS = Location where the passenger embarks on the conveyance Recipient is URP Example Mr. A ( RP Delhi) Pos = Delhi From  To Jaipur  Dubai From  To Jaipur  Dubai Pos = Jaipur Mr. B (URP Delhi) S M f j Airlines (Mumbai) S R R Sec12 (10) Services on Board Conveyance (If a mt is seperately charged for such services) e.g.- D V D of games / movie on demand supplied by Airline to passenger on Rent - Food services, Spa, Beauty Treatment, Supplied on board conveyance etc. POS. - First scheduled point of Departure of that conveyance. Example Supplier :M f j Airlines RO u T E : M u m b a i → Delhi → Dubai → U k Food Services provided by Airlins POS = M u m b a i M u m b a i M u m b a i Mr. A ` 5 0 0 Mr. B ` 1,000 Mr. C ` 2 , 0 0 0
  • 44. 8 Place of Supply Sec12(11): Telecommunication Services, Cable & DTH. etc. eg:Telecommunication services, Data Transfer broadcasting, cable. D T H Services POS =  services involving fixed line, circuit ,dish, etc.  Location of such fixed Equipment  Mobile / Internet post-paid services  Location of Billing Address of the Recipient  Services provided through a selling Agent / Reseller  Address of the selling Agent / Reseller  Sale of pre-paid vouchers (physical)  Location where such voucher are sold  Other Cases  Address of recipient i n records. (e.g. online vouchers) Sec 12(12): Banking & other Financial Services/ Services of Stock Broker Address of Recipient is available i n the. records of supplier POS = Location of the recipient of POS = Location of the supplier If location of the Recipient is not available i n the records service on the records of the supplier Sec. 12(13) Insurance Service Recipient is RP POS = Location of such POS = Address of recipient Recipient is URP registered person available i n records of Supplier Sec12(2) : fjeneral Provision / Default Provision  Any services which is not covered U/S 12(3) to 12 (14) will be covered here Recipient is RP POS = Location of Such RP If location of such Recipient is available Recipient is URP f j es POS = LOR No POS = LOS
  • 45. 9 Place of Supply * S U M M A R f j KEfj = PITEE P Certain Performance Based Services I Immovable Property T Training & Appraisal Services (ROPE SURF) E Entry Ticket E Event Name services ↓ POS = Place where service is. Enjoyed Sec 12 (14): Advertisement services to fjout POS: Each of States / U T where the advertisement is broadcasted / displayer / run NOTE: IF advertisement is i n more than one state (lump sum Amt.)  Absence of contract or Agreement  POS :As per prescribed manner 12(14)Advertisement Services to the fjovernment Nature of supply Advertisement Services to the fjovernment  Each of States/Union Territory where the advertisement is broadcasted/ displayed/run.  I n case of multiple States  as per prescribed manner. S. Type of No. Advertisement Factor which determines the proportionate value of service attributable to the dissemination i n each state/union territory 1 Advertisements i n newspapers and Amount payable for publishing an advertisement i n al l the editions of a newspaper or publication, publications 2 Advertisements through printed material like pamphlets, leaflets, diaries, calendars, T- shirts, etc. which are published i n each State/Union territory. Amount payable for the distribution of a specific number of such material i n each State/Union territory. 3 Advertisements i n hoardings (other Amount payable for the hoardings located i n each State/Union territory. than those on trains) 4 Advertisements on Length of the railway track i n each State/Union Territory, for that train. trains 5 Advertisements on the back of utility bills of oil and gas companies, etc. Amount payable for the advertisements on bills pertaining to consumers having billing addresses i n each State/Union territory.
  • 46. 6 Advertisements on Number of Railway Stations i n each railway tickets State/Union territory. 7 Advertisements on Amount payable to such radio station, which radio stations by virtue of its name is part of each State/Union territory. 8 Advertisement on Number of viewers of such channel i n each television State/Union Territory. channels Viewership can be ascertained from the channel viewership figures published by the Broadcast Audience Research Council. Figures for the last week of a given quarter will be used for calculating viewership for the succeeding quarter. Where the channel viewership figures relate to a region comprising of more than one State/Union territory, the viewership figures for a State/Union territory of that region, will be calculated i n ratio of the populations of that State/Union territory, as determined i n the latest Census. 9 Advertisements i n Amount payable to a cinema hal l or screens i n cinema halls a multiplex i n each State/Union territory. 10 Advertisements I n case of advertisements over internet, the on internet advertisement service shall be deemed to have been provided al l over India. Thus, the value of such service will be apportioned amongst al l States and UTs, of Indi a i n the manner prescribed therein. Manner Prescribed: Number of internet subscribers i n each State/ Uni on Territory Internet subscribers can be ascertained from the internet subscriber figures published by the Telecom Regulatory Authority of Indi a (TRAI). Figures for the last quarter of a given financial year will be used for calculating the number of internet subscribers for the succeeding financial year. Where the internet subscriber figures relate to a region comprising of more than one State/Union territory, the subscriber figures for a State/Union territory of that region shall be calculated i n the ratio of the populations of that State/Union territory, as determined i n the latest census. 10 Place of Supply
  • 47. 11 Place of Supply 1 1 Advertisements through SMS Number of telecom subscribers i n each State/Union Territory Telecom subscribers i n a telecom circle can be ascertained from the telecom subscribers figures published by the TRAI. Figures for a given quarter will be used for calculating the subscribers for the succeeding quarter. Where such figures relate to a telecom circle comprising of more than one State/Union territory, the subscriber figures for that State/Union territory shall be calculated i n the ratio of the populations of that State/Union territory, as determined i n the latest census. Summary: Advertisment Base Authority Prop Basic O n TV No of views BARC O n Internet No. of Subscriber TRAI Throught SMS No. of Subscriber TRAI Last week of Prev quarter will be base for current quarter last Quarter of prev Ffj will be base for current fy last Quarter will be base for Current Quarter
  • 48. 1 Time of Supply Sec 31: Due Date of Issue of Invoice I fjOODS:- (4 Caces) a Movement of fjoods :- on or before the removal of goods (At the time b of removal) No Movement - Date on which fjoods made- available to recipient c or delivered to recipient Continuous supply of fjoods:- Date of Statement OR w e Date of payment e d fjoods sent on Approval Basis:- Date of Approval OR w e within 6 months from the Date of removal of fjoods e I I SERVICES (4 Cases) a Non Continuous Supply of services:- Invoice should be issued within 3 0 days (in case of Banking co / FI & Insurance Co. →45 days) from the Date of supply of services b. Continuous Supply or service (Service Period > 3 months) Due Date of Payment is available I Actual Date of Payment will be due date of Invoice I I Due date of payment will be the due date of Invoice Example :- Due Date of payment Available M f j a Bulider provides construction services to Mr.Z Installment Am t Due Date of Pyt Actual D O P Due Date O f Invoice 1 2 , 0 0 , 0 0 0 8-12-23 8-12-23 8-12-23 2 1 0 , 0 0 , 0 0 0 31-3-24 28-3-24 31-3-24 3 2 0 , 0 0 , 0 0 0 30-6-24 7-7-24 30-6-24 4 3 0 , 0 0 , 0 0 0 31-12-24 20-12-24 31-12-24 06 TIME OF SUPPLY
  • 49. 2 Time of Supply Example :- Due Date of payment → Not Available Installment A m t Due Date of Pyt Actual D O P Due Date O f Invoice 1 2 , 0 0 , 0 0 0 - 8-12-23 8-12-23 2 1 0 , 0 0 , 0 0 0 Completion of 1st floor 28-3-24 28-3-24 3 2 0 , 0 0 , 0 0 0 Completion of 2nd floor 7-7-24 7-7-24 4 3 0 , 0 0 , 0 0 0 Completion of 3rd floor 20-12-24 20-12-24 I I I I n case of Event : on or before the Date of Completion O f Event. Time of Supply Example :- M f j Ni ki ta Advance ` 10l on 10 jan 23 fjoods Date of Invoice 12-4-23 CASE I → fjoods - F C M (Regular scheme) = 10-4-23 w e e TOS = D = 10-4-23 OR I = 12-4-23 10-4-23 15-4-23 F C M I) fjoods R C M ⭣ Regular scheme Composition scheme TOS = Date on which goods recived by the recpt OR Date of payment made by receipient OR 31st day from the actual date of invoice w e e TOS = w ie e D OR I w e e D TOS = OR I OR P
  • 50. 3 Time of Supply CASE I I → fjoods-FCM (composition Scheme) = 10-1-23 w e e TOS = D = 10-4-23 OR I 12-4-23 OR P = 10-1-23 CASE I I I → fjoods - R C M TOS: Date on which fjoods Recd by the Recpt = 15-4-23 OR Date of Pyt by the Recpt = 10-1-23 OR 31st day from the D O I = 10-1-23 = 13-5-23 Note:- Date of Payment F C M R C M w e e w e e 1) Date of Entry made by the supplier that amount has been received OR 2) Amount credited i n his Bank A/c 1)Date of Entry made by Recipient that payment has been done OR 2) Amount debited from the Bank A/c of recipient eg - M f j Supplied goods to M r P for 10l. - Date of Removal of fjoods from the premises of M f j = 10-2-23 - Date of Reciept of fjoods by M r P=15-2-23 - Date of Invoice = 14-2-23 - P issued a cheque to M f j 9-2-23 - Cheque credited i n the Bank A/C OF M f j 16-2-23 - P made entry of Pyt i n his BOA, that pyt made to M f j of ` 10l = 11-2-23 - M f j made entry i n his BOA that pyt recd from P of ` 10l = 18-2-23 - A m t debited from the Bank A/C of P = 16-2-23 → fjoods - R C M → TOS = ? D O P = ? e w e= 13-5-23
  • 51. 4 Time of Supply Ans :- TOS = Date on which goods received by the Recipient = 15-2-23 OR D O P = 11-2-23 OR = 17-3-23 31st Day from D O I TOS = 11-2-23 I I Services f j es TDS = I OR P Invoice issued within time l i mi t F C M R C M Normal Cases No TDS = D O P OR 61st d from the D O I OR expenditure debited i n BOA of recipient TDS = S OR P If Supplier & reciptient is an associated Enterprises & Los= NTT Lor = TT TOS = D O P w e e w e e w e e w e e I = Date of Invoice P = Date of Pyt S = Date of supply of Service Excers Amount up to ` 1 0 0 0 If the supplier of taxable goods/ services recieves an amount upto ` 1,000 i n excessof the amount indicated i n tax invoice, then TOS → Date of issue of invoice relating to such excess amount (its optional) Example :- 10 Jan 23 → Pyt made by students to Ednovate for DT = ` 1 0 , 0 0 0 fee O f DT = ` 9,250 1 1 Jan 23 → Date of Invoice for DT = 29,250 14 Feb 23 → Batch Started 31M a r 23 → Date of Completion of DT 5 Apr 23 → Pyt made by student to Ednovate for I D T = ` 9,000, fee of JDT = ` 9,750 10 Apr 23 → Date of Invoice for I D T = ` 9,750 15 Apr 23 → Date of Commencement 2 0 Jun 23 → Date of Completion of I D T w e e
  • 52. 5 Time of Supply I D T DT 9,250 Non Cont → 3 0 d DOS 750 20-6-23 9 , 0 0 0 20-6-23 31-3-23 10-1-23 DOP D O I 11-1-23 10-1-23 10-4-23 5-4-23 10-4-23 Invoice issued within time limits f j es f j es f j es 10-1-23 5-4-23 TDS = I O R W ee 10-1-23 OR P 10-4-23( Date of Invoice) Common Provision for Time of Supple for fjoods or services. If supply is identifiable If supply is not identifiable TOS = Date of issue of voucher TOS = Date of issue of voucher 1. I n case of voucher? 2. I n case of Special Method Interest, Late Fee.Penalty for delayed payment of consideration TOS = Date on which supplier received such addition i n value Example :- 13th Dec 23 → M f j supplied goods to M r Vikas for 1OL + fjST @12%14th Dec 23 → D O I IF Pyt not recd by supplier within 3 0 days from the DOI, then M f j charged late Feeor Interest etc. 2 0 t h Feb 24 → Pyt made by vikas to M f j Value 10L + fjST 1.2 L Interest (ind fjST) 11200 Time of Supply Interest Value 10L I = 14-23-23 TOS = 13-12-23 11, 2 0 0 × 1 0 0 10 0 + R a t e 11,2 0 0 ×1 0 0 112 = 10 , 0 0 0 TOS = 2 0 t h Feb 24 w TOS = D = 13-12-23 OR e e
  • 53. 6 Time of Supply 3. I n case of Residual Method Periodic Returns have to be filed TOS = Due date of filing of Return TOS = Date on which fjST is paid I n any other case
  • 54. 1 V ALUE OF SUPPL Y Transaction value = Value 1. Price should be sole Consideration (no barter, no exchange. no payment i n kind) 2. Parties should not be related party or distinct person Applicable Rules Not Applicable i n CA Inter Transation Valve value Value of Supply Value on which fjST will be charged Applicable i n exams value = Price + Elements as per sec 15(2) - Discount Key: TRI2 S T Taxes, Duties, Cess [except fjST, TCS under Income Tax Act], if charged from the recepient Example :- M f j supplied fjoods to Mr. Piyush for ` 1,00,000 M f j charged local tax on such goods @ 18%of price [Rate of fjST iS 12%] Value = → Value = 1,00,000 + 18% of 1,00,000 = 1,18,000 fjST = 12% O f 1,18,000 = ` 14,160 R Recepient bears the liability of supplier Example :- Price = 1 0 , 0 0 0 (excl. tax) Local Tax = 2 0 0 0 Recepient paid = ` 3 , 0 0 0 to M r Z on direction of supplier, because M r Z was creditor of supplier → Value 1 0 , 0 0 0 + Local Tax 2 , 0 0 0 + Liability bear by Recpt 3 , 0 0 0 Value = 15,000 07 V ALUE OF SUPPL Y
  • 55. 2 V ALUE OF SUPPL Y I Interest, Late Fee. Penalty charged for delayed Payment of consideration from recipient Late fee, penalty NOTE: If question is silent then interest, → Always treated. as Inclusive fjST Example :- M f j supplied fjoods to M r Z & charged Price of fjoods 1 0 , 0 0 0 Local Tax 2 , 0 0 0 Interest 1,180 Other Info :- Rate of fjST = 18% M r Z paid ` 5 , 0 0 0 to fjSTA. which is liability of M f j → Value = Price + Local Tax + Interest 118 → 1180 1 0 , 0 0 0 2 , 0 0 0 100 → ? + Liability of supplier bear by M r Z 5 , 0 0 0 18,000 I Incidental & Anallary Expenditure etc. am t charged for any thing done by the supplier at the time of as before delivery of goods or supply of Srvices Example :- - Packing, labelling, Designing, etc - Royality ,waranty charges, etc - Insurance charges - Dharmada (charity) - Weighment charges - Al l expenses before delivery (loading weighing, coolie, etc.) - Freight - Salesman commission - Rental charges for durable & returnable packing - Erection, Installation charges. - Pre-delivery Inspection charges.
  • 56. 3 V ALUE OF SUPPL Y S Subsidies directly linked to price (excluding subsidy provided by government (Indian fjovt) Example :- Price = ` 1 0 , 0 0 0 Int for delayed payment = ` 1180 Packing charges = ` 7 0 0 Subsidry given by fjovt directly linked to transaction = ` 2 5 0 0 pu Subsidry given by TATA not directly linked to transaction = ` 150O Subsidry given by RiL Ltd for early delivery of goods = ` 1200 pu fjST 18%. Ans] Price 1 0 , 0 0 0 + Local Tax - + Int 1180×100 100 1,000 + Packing 7 0 0 + Subsidy by fjout - + Subsidy by TATA - (Not linked to transaction) + Subsidy by RIL 1,200 Value = 12,900 *FORMAT Computation of value as per secis OF CEST Act 2017 Particulars A m t ` 1. Selling Price /Price / Invoice Value / wholsale price (Inclusive fjST / Exclusive fjST) XX 2. Addition as per sec15 (2) of CfjST Act KEfj TRI2S Total [A] XX XX 3. Less : Diccount fjiven i n Invoice Value cum fjST (IF fjST inclusive i n price i n pt 1) [B] (XX) XX 4. Less:fjST (if included i n price i n pt 1) B x Rate of fjST 100 + Rate of fjST value. (XX) XX ⟹ Points to be noted 1. No claim Bonus permissible as deduction uls 15(3) as for the purpose of the calculation of value of supply of the insurance services provided by the i n surance co to insured (in short NCB is treated like Discount) 2 Incentive paid by Melty to acquiring banks under Incentive scheme for promotion of Rupay Debit cards and low value B H I M UPI transactions are treated as subsidy → Not Taxable
  • 57. 4 V ALUE OF SUPPL Y Points to be noted:- 1. Treatment of subsidy I I I I I I If Q says list price adjusting subsidy XX List Price (+) Subsidy XX from TP (+) Subsidy from fjovt - XX XX List Price (-) fjovt Subsidy (XX) XX List Price XX No ady of subsidy If Q says List Price excluding Subsidy from TP If I says list price excluding (without adjusting) fjovt Subsidy 2. At the time of supply After the supply Before the supply Shown i n the Invoice f j es ⭣ Discount not included i n the value of supply f j es ⭣ Discount not included i n the value of supply No ⭣ Discount included i n the value of supply No ⭣ Discount included i n the value of supply (1)I n terms of an agreement that exist at the time of supply + (2) Can be linked to invoice (transation) + (3) Proportionate ITC reversed by the recipient Discount fjiven
  • 58. 1 Sec. 22 - Reg Comp if ATO > Threshold i mi t Imp 23 - Person who is not liable for Reg 24 - compulsory Reg (even if ATO <threshould l i mi t ) 25 - procedure for Registration 26 - Deemed Registration Theory 27 - Registration of CTP/NRTP 28 - Amendment i n Registration certificate Imp 29 - cancellation of Registeration 3 0 - Revocation of cancellation of Registration * SEC 23 :REfjISTERATION N O T REQUIRED 1. Agriculturist to the extent of supply of Product out of cultivation of Land 2. Person exclusively engaged i n (a) Exempted Supply [exempt, ni l rated, outward supply taxable under R C M ] (b) Non Taxable Supply [(out of scope of fjST-eg), SH III] * SEC 24 :C O M P U L S O R f j REfjISTERATION EVEN IF AfjfjREfjATE TURNOVER IS ≤ THRESHOLD L I M I T [Key- O2 I2 C NE3 TA RN] O1 Online Money fj ami ng * Amendment Supplier - Non Taxable Territory Recpt- Taxable Territory O2 Online Information and database Access or Retrival Services (OIDAR) [eg: Netflix] Supplier = Non- Taxable Territory Recpt. = Unregistered person of Taxable Territory I1 Inter State Supply of fjoods ( services) [Except Casual Taxable Person who is making taxable supply of Notified Handicraft fjoods] Example M r U m a n g (Mumbai) fjoods (Inter state supply) M f j & CO. (Rajasthan) Registration compulsory for umang u/s 24 S R 09 REGISTERATION
  • 59. M r M o h i t (Casual taxable person) Handicraft Items M f j & CO. (Rajasthan) M o h i t will be liable for registrition only if ATO >threshold Limit - (10l /20l) S R I2 Input Service Distributor C Casual Taxable Person (other than handicraft) N Non Resident Taxable Person ECO E1 → ECO U/S 52 or U/S 9(5) E2 → Any person who supply fjoods (not service) through ECO Exception : Any person who is engaged i n Intra state supply of fjoods through ECO → Registration compulsory only ATO > Threshold l i mi t of Registration E3 → A person who is appointed by Eco for pyt of tax on behalf of ECO Example Chutki (Mumbai) Jaggu (Mumbai) Raju (Surat) Bheem (Surat) S S R R Amazon Service Eco Eco → → Registration Compulsary U/S 24 → for Chutki & Amazon Registration Compulsary for Jaggu if ATO >TSL T TDS Deductor. Agent covered under SH I A R RCM: Any person who is liable for pyt of Tax on Inward supply under R C M S Partnership Firm fjTA Transportation of fjoods Value = 1l, fjST @ 5% R - Registration Compulsary for partnership firm U/S 24 - Registration is not required for fjTA U/S 23 2
  • 60. N Notified Person Notified by fjovernment on recommendation of council * PERSON LIABLE FOR REfjISTERATION U/S 22 1. 2. Every Person Registered under Existing Law (eg Reg under VAT/Excise duty) The transferee of Business 3. 4. Amalgamated / Demerger units of Business Aggregate Turnovers >Threshold Limit. Threshold l i mi t is [A] [B] [C] Key - M 2 N T - M a n i p u r - Mirzora m - Tripura - Nagal and Any other cases which are not covered uls 24 e.g. • Intra State supply of goods and services • Inter state supply of services Key - Megha ArunTe PU ke sath Sikkim gaye - Meghalaya - Arunachal Pradesh - Telangana - Puducherry - Uttarakhand - Sikkim - Jammu & kashmir - Himachal Pradesh - Assam - Uni on Territories - Al l other states ATO > 10l ATO > 2 0 l ATO > 2 0 l Exclusively engaged i n Intra State supply of fjoods [Exception- I n services only Int on LAD allowed] ATO > 4 0 l Exclusions Notified fjoods eg] Pan Masala, Tabacco. fjutka, Edible Ice, Ice-cream. Aerated water.Fly ash bricks / blocks. Building tricks, bricks of fossils, earther / roofing tiles ⟹ Points to be notes. * 1)Aggregate Turnover (ATO) Al l outward Supply Example: Int on LAD (Loan/Advance & Deposites) Exempt supply Taxable supply. 3
  • 61. 4 Non Taxable supply Outward supply Taxable under R C M Inter / Intra State Supply → Exclude:- 1.fjST 2. Inward supply on which tax is payable by recipient under R C M 2) Aggregale to includes al l supplies made by taxable person, whether on his own Ale or made on behalf of al l his principles Example: Agent Customer 1 Customer 2 TATA= Principle (Delhi) M f j = Principle (Mumbai) Car = 6 0 l 6 Units Car = 9 0 l Customer 2 ATO for : M f j = 5OL Tata = 6 0 L Agent = 8 O l + 9 0 l + 2 0 l =190l 3. If the goods are directly supplied from premises of the Job worker by the principal then it shall be included i n to the ATO of Principal (whether Job worker is Registred or not) Example: M r Veer Jaipur (Job Worker) M f j & Co. M u m b a i (Principle) M r Rajesh (Ajmer) Plastic = 100kg Included i n the TO of M f j & Co. 10-7-23 15-7-23 M f j Supplied toys to M r Rajesh di- rectly from the premises of the Job worker (Jaipur) for 25 lakhs veer used such Plastic for M f g of Toys for M f j on 25-10-23
  • 62. 4 Registeration Required only for a place. of business from where taxable supply takes place. Punjab TS=6l Haryana TS=7l ES=3l Rajasthan ES=4l Delhi TS=2l → ATO = 6l +7l+3l + 4l+2l = 22l M f j & C O is liable for Reg but only for the units of Punjab, Haryana, Delhi 5. IF Supply between distinct person, then it will be included i n TO or suppuer Example: M f j 2 (fjujarat) M f j 1 ( M a h a rashtra) M f j 3 [Registered person] Maharashtra [Distinct person] M f j 1 ( M a h a rashtra) [diff branch same reg. no.] Supply Value = 10l Included i n TO of M f j 1 Included i n TO of M f j 1 Not Incl. 6 If one uni t is situated i n special category state (M2NT) and other uni t is situated i n other State, then TSL will be considered 10l But if Units are situated i n special category State exclusively engage i n Non- Taxable Supply or Exempt supply, TSL l i mi t will be considered as 2 0 l / 4 0 l Example U n i t 1 Tripura I TS = 5l I I I I I IV TS = 5L Non taxable ES = 5l U n i t 2 M u m b a i TS = 3l ES = 2l ES = 1l TS = 3l ES = 3l supply = 5l TS = 3l ES = 5l TS = 3l ES = 6l Threshold l i mi t 10l 10l 2 0 l 2 0 l Aggregate TO 10l 12l 13l 14l Registeration Compulsory No fjes No No As per Sec 22 5
  • 63. 6 * Effective Date of Registration When an Applicant submits application for Effective Date of Registration Registration 1. within 3 0 days from Date he becomes liable The date on which he becomes liable for for Registration 2 After 3 0 daye from date he becomes Liable Registration Date of fjrant of Registration for Registration Example CASE I 1 Nov ⭣ ATO > TSL 25 Nov ⭣ Apply for Reg 10 Dec ⭣ Reg Certificate (RC) granted → Supply Effective Date of reg = 1 Nov Date of RC = 10 Dec B/w 1 . 1 1 to 10.12 ⭣ Supplier may issue revised tax invoice within a month from date of RC [till 10th Jan] Example CASE I I 1 Nov ⭣ ATO > T M L 5 Dec ⭣ Apply for Reg 10 Dec ⭣ RC fjranted I By taxable person U/S 29 (1) I I By proper officer U/S 29 (2) → Effective Date of Reg = 10 Dec Date of RC of Reg = 10 Dec * Supply b/w 1Nov to 10 Dec → revised tax invoice cannot be issued * CANCELLATION OF REfjISTERATION (SEC 29) * Cancellation of Registeration (Sec 29)
  • 64. 7 Sec 29 (1) Circumstances for cancellation or Suspension of Registeration The business has been - Discontinued - Transferred (fully for any reason including death of properties) - Amalgamated with other legal entity - Demerged - Otherwise disposed off The taxable person is no longer liable to be registered U/S 22 or U/S 24 There is any change i n the Constitution of business eg] Individual → Firm Firm → BC N O TE: The proper officer may suspend his registration during pendency of the proceeding relating to cancellation of Regn filed by such RP. Sec29 (2) Cancellation of Registeration by Proper officer The Proper officer may cancel the regiteration as he may deem fit where :- 1 A registered person has contravened such provision of the Act or Rules made there under i.e a) He does not conduct any business from the declared place of business b) Issue fake invoice c) He violates the provision of → U/S 171- Anti Profitering → Rule 10A → Bank details not submitted within 3 0 days → U/S 16 → Rule 86B d) Tax liability i n fjSTR 1 is more than tax Liability shown i n fjSTR 3B 2) Composition scheme holder has not furnished the return beyond 3 months from the due date or furnishing the return eg: For Ffj 2022-2023 Due Date of filing Return = 30-4-23 Date of Filling Return O n or before 3 0 t h July ⭣ Sec 29(2) ⭣ Not applicable After 3 0 t h July ⭣ Sec 29(2) ⭣ M a y be applicable
  • 65. 8 3. Person Registered under regular scheme has not furnished return for 4. Any person who has taken voluntary registration, has not commenced business within 6 months from the date of registration 5. Registration has been obtained by means of fraud, willful mistatement or supression of fact. Note : Opportunity of being heard The proper officer shall not cancel the registration without giving the person an op portunity of being heard. Continious period of 6 months [If required to file return monthly basis] Continious period of 2 tax period [If required to file return on quarter basis - i.e Q R M P Scheme ]
  • 66. 1 TAX INVOICE, CREDIT & DEBUT NOTE fjlimpse * Sec 31- (i) Due Date of Issue of Invoice (Refer Chp) * Sec32- unregistered person shall not collect tax from the Recipient * Sec 33- Registered Person should - Collect Tax as per law & - Tax collected shall be seperately indicated i n al l documents relating to Tax Invoice, Assessment & Other Documents. (if supply is for consideration) * Sec 34- Debit Note & credit Hote I SEC 31- TAX INVOICE (i) Rule 47 - Time l i mi t for Issuing Invoice (Refer cnp 6) (ii) Rule 46 - Content of Invoice • • Name, address and fj STIN of supplier Consecutive Serial Number & date of issue • • Name, address and fj STIN of recipient, if registered Name & address of recipient, if not registered • • HSN code Description of goods or services • • Quanti ty i n case of goods Total Value of supply • • Taxable Value of supply Tax rate-Central tax & State tax or Integrated tax, cess • • Amount of tax charged Place of supply • • Address of delivery where the same is different than place of supply Tax payable on reverse charge basis • Signature of authorised signatory • QR Code having embedded invoice reference number • A declaration as below, that invoice is not required to be issued i n the manner specified under Rule 48(4). N O TE: If value of supply is more than ` 5 0 , 0 0 0 & Recipient is an URP Name & Adress of Recipient should be mentioned i n invoice Address of Delivery is not necessary to mention i n Invoice f j es No Name & Address of Recipient & 10 TAX INVOICE, CREDIT & DEBUT NOTE
  • 67. ⟹ Points to be noted Nature of supply ATO > ` 5cr ATO ≤ ` 5cr 1. B2B Supplier Mandatory 6 digit 2. B2C Supplier 6 digit Mandatory 4 digit Optional 4 digit Rule 48 - Manner of issuing Invoice Rule 48 (1) - I n case of Supply of fjoods (Triplicates) - Original Copy → Recipient - Duplicate Copy → Transpoter - Triplicate Copy → Supplier Rule 48 (2) - Supply of services Duplicates - Orginal Copy Recipient - Duplicate copy supplier Rule 48 (3) - Invoice No. Furnished electronically The serial number of Invoice issued during a month / quarter shall be furnished electronically i n Form fjSTR - 1 Rule 48(4) - E-INVOICE If supplier & Recipient both are RP + B2B Supply & Annual Aggregate Turnover > 5cr i n any preceding Fy from 2017-18 onwards. ⇓ E- Invoice compulsory 2 TAX INVOICE, CREDIT & DEBUT NOTE 1. Supplier is :- ECO or O I D A R or Online Money fj ami ng OR 2. Supply through ECO A N D Recipient is URP ⇓ Innrespective of the value of such supply l a tax invoice & the name of the state of the Recpt and the said address (Name of State) shall deemed to be the address on record of the recpt. 2. HSN on Invoice
  • 68. 3 TAX INVOICE, CREDIT & DEBUT NOTE Except: If Suppliers is - Special Economi zone units - Insurer or Banking Co or Financial Institutions including NBFC - fjTA - Supplier of Passenger Transportation service (eg Rail,Bus,Airplane etc) - Exhibition of cinematography films i n multiplex screen - fjovt Dept & Local Authority. ⟹ Points to be Noted. 1. If E invoice issued i n other than Specified manner → then shall not be treated as Invoice 2. Provision of Rule 48(1) (Triplicate Copy) & 48(2) [Duplicate] shall not apply to E invoice. 3. Any person who is covered under the exceptions of E-invoice → E-invoice is not compulsory i n any circumstances eg if any Bank is engaged i n Financial Service & also supply of Bullions → E-invoice not compulsory, even if turnvoer of bank is > 5Cr & recipient is RP 4. If supplier is RP having To > 5cr i n Py 17-18 onwards & Recpt is fjOVE Dept / LA which is registered under fjST only for deducting TDS E-invoice compulsory 5 . I n case of E-invoice or other invoice → Al l the fjST Tax payer are free to design their own Tax Invoice QR Code QR code is mandatory for Tax payer having Turnover >500cr i n preceding Ffj 17-18 onwards i n B2C Supply M r A To > 500cr M r B URP B →C Invoice shall have QR Code Exceptions 1 Insurance Co., Banking, FI & NBFC fjTA 2 3 4 Passenger Transport Service Supples of service by way of admission. or exhibition of cinematography 5 films i n Multiplex screen. Supplies of O I D A R Services located i n NTT
  • 69. 4 TAX INVOICE, CREDIT & DEBUT NOTE * REVISED TAX INVOICE Revised Tax Invoice to be issued i n respect of taxable suppliers effected during this period Effective date of Registration Date of issuance of certificate of Registration Supply for which Revised Tax invoice will be issued within 1month from the Date of Registration granted - Consolidated Revised Tax Invoice (CRTI) may be issued i n respect of taxable Supplies made to an unregistered recipient during this period - I n case of Inter-State supplies. CRTI cannot be issued i n respect of unregistered recipient if the value of supply exceeds 2.5L during this period Example M f j & Co. M u m b a i 5th Nov = 2l ,6th Nov = 5 0 k , 15th Nov = 25k →SRTI will be issued 5th Nov 50K, 6th Nov 25K, 3 0 t h 1L→ CRIT will be issued BCO3 value ≤ 2.5L 10th Nov = 5l RP fjujarat 10th Nov = 25K, 28th Nov = 50K→ SRIT will be issued RP M u m b a i URP fjujarat 15th Nov = 2l 16th Nov = 5 0 k 7.5 l CRTI will be issued URP M u m b a i
  • 70. 5 TAX INVOICE, CREDIT & DEBUT NOTE * CONSOLIDATED TAX INVOICE Tax invoice is not required to be issued Value of supply < ` 2 0 0 Recipient is unregistered Consolidated Tax Invoice shall be issued for such supplies at the close of each day i n respect of al l such supplies Recipient does not require such invoice Example M f j CRP M r A (URP) 14th Jan 8 a m calculator = ` 100 = ` 2 0 2 pm Pen 6 pm Pencil = ` 10 ` 130 value < ` 2 0 0 CTI can be issued INVOICE - C U M - BILL OF SUPPLfj Exempted Supply Tax Invoice X Bill of supply invoice  Registered person Paying tax under Composition levy u/s 10 & 10(2A) Note :- Invoice-cum-bill of supply Notwithstanding any thing contained i n rule 46 or rule 49 or rule 54, where a registered person is supplying taxable as well as exempted goods or services or both to an unregistered person, a single “invoice-cum-bill of supply” may be issued for al l such supplies.
  • 71. 6 TAX INVOICE, CREDIT & DEBUT NOTE URP (Mohit) M f j (RP) Example Taxable =2k + Exempt 3k = Invoice C u m bill of supply ⭣ fjST 18 % RECIEPT VOUCHER + REFUND VOUCHER RECEIPT VOUCHER Advance Payment Supplier Recipient Receipt Voucher Where at the time of receipt of advance, rate of tax/nature of supply is not determinable Where at the time of receipt of advance 1.Rate of tax is not determinable 2. Nature of supply is not determinable Tax shall be paid at the rate of 18% Same shall be treated as inter-State supply REFUND VOUCHER Receipt voucher Tax Invoice X Refund voucher Mr. B Recipient Mr. A Supplier • fjST liability paid on Advances by Mr. A Advance payment Supply X PAfjMENT VOUCHER + INVOICE UNDER R C M PAfjMENT VOUCHER I n case of R C M (Reverse Charge Mechanism), the recipient shall issue a Payment Voucher at the time of making payment to the supplier. INVOICE UNDER R C M I n case of R C M (Reverse Charge Mechanism) and if the supplier is unregistered person then, the recipient shall issue an Invoice.
  • 72. 7 TAX INVOICE, CREDIT & DEBUT NOTE *SUPPLIER PERMITTED TO ISSUE ARfj D O C U M E N T OTHER T H A N TAX INVOICE Following supplies may issue a tax invoice but they are also permitted to issue any other documents i n lieu of tax invoice, by whatever name called - Insurer / Banking Co/ FI incl NBFC fjTA - fjTA - Supplier of passenger transportation services etc * DELIVERfj CHAL I AN At the time of removal of goods, fjoods may be removed on Delivery Chal l an & invoice may be issued after delivery eg - Supply of liquid gas (LPfj) - Transportation of fjoods for Job work - Transportation of goods for reasons. other than by way of supply. - Such other supplies notified by Board - Semi-knocked Down (semi-finished fjoods) / C K D (completely knocked down) (Fully Disassemble fjoods) NOTE:- fjoods transportation i n SKD / C K D condition or i n batches or lots a) The supplier shall issue the complete Invoice before dispatch of the first consignment b) The supplier shall issue a delivery challan for each of the subsequent consignments, giving reference to the Invoice c) Copies of the corresponding delivery challan shall accompany each cosignment along with a duly certified copy of the inovice. d) The Original copy of the Invoice shall be sent along with the last consignment CREDIT NOTE When a tax invoice has been issued for supply of any goods or services or both: (a) Taxable value i n invoice > Taxable value i n respect of such supply and the Tax charged i n invoice > Tax payable i n respect of such supply, or (b) where the goods supplied are returned by the recipient, or (c) where goods or services or both supplied are found to be deficient.
  • 73. 8 TAX INVOICE, CREDIT & DEBUT NOTE NOTE 1: Then, the Registered Supplier of goods or services or both may issue Credit Note. The CfjST (Amendment) Act, 2018 has amended u/s 34 (1)to allow the registered person to issue one (consolidated) or more credit notes i n respect of multiple invoices issued i n a financial year without linking the same to individual invoices. NOTE 2: Any registered person who issues a credit note shall declare the details of such credit note i n the return for the month during which such credit note has been issued but not later than September the thirtieth day of November following the end of the financial year i n which such supply was made, or the date of furnishing of the relevant annual return, whichever is earlier, and the tax liability shall be adjusted i n such manner as may be prescribed: [w.e.f. 1st October, 2022 vide Notification No. 18/2022] DEBIT NOTE Where a tax invoice has been issued for supply of any goods or services or both: 1) Taxable value i n invoice < Taxable value i n respect of such supply. 2) Tax charged i n invoice <Tax payable i n respect of such supply. Then, the Registered Supplier of goods or services or both shall issue Debit Note. Similarly, u/s 34 (3) has been amended to allow the registered person to issue one (consolidated) or more debit notes i n respect of multiple invoices issued i n a financial year without linking the same to individual invoices. Sec16 (4):-Time l i mi t for availing ITC A registered person shall not be entitled to take input tax credit i n respect of any invoice or debit note for supply of goods or services or both after the 30t h November following the end of financial year to which such invoice or invoice relating to such debit note pertains or furnishing of the relevant annual return, whichever is earlier. For Example: - Invoice Date 15.07.20 Debit Note has been issued on 10.11.2021 As per the Amendment:- ITC of said debit note can be claimed by Registered person till the 3 0 t h Nov 2022 O r Date of filling of Annual return For F.fj. 2021-22 which ever is earlier
  • 74. 1 E-WAY BILL I W H E N SHOULD E-WAfj BILL BE ISSUED? Movement of fjoods exempt Supply will not to be included O n l y i n case of Supply Value fjST + inclusive > ` 5 0 , 0 0 0 E-way Bill is compulsory i n following cases even if value is ≤ 5 0 , 0 0 0 Inter State Transfer of fjoods a) b) By principal to job worker By Any person who is exempt from registration eg:- Casual Taxable person supply handicraft goods from one state to another Example 1 M u m b a i E-way bill ✓ Delhi Pune value =48k + fjST @18 % 5 6 6 4 0 Example 2 fjoods sent for jobwork Value = 1 0 , 0 0 0 + fjST fjoods Value = 10 k + fjST EWB x Principal Rajasthan Pune Job worker Job worker E-way Bill ✓- Because Inter state transfer from principal to job worker 09 E-WA Y BILL
  • 75. 2 E-WAY BILL Example 3 M u m b a i CPT [Exempt from fjST Registration] Rajasthan Pune Handicraft fjoods value = 2 0 , 0 0 0 → EWB ✓ E-way bill ✓ value = 2 0 k → EWB x = 5 6 6 4 0 → E- Way bill ✓ ⟹ Ponts to be noted 1) If E way Bill is generated with wrong information, it can be cancelled & new E-way Bill can be generated 2) Provision for cancellation of E-way Bill within 24 hrs by the person who has generated the E-way Bill 3) The Recipient can reject the E-way Bill within 72 hours of fjeneration 4) Alert messages are also issued to the users through Online & SMS (if person is a registered) I I W H O fjENERATES E- E-WAfj BILL? → If Transferer & Transferee of fjoods are Both Registered person→ Any one of them → Either Transferer or Transferee of fjoods. is Registered person → Person who is RP → Both are URP & Transportation of fjoods by Road Transporter will fjenerate E-Way Bill (RP) If transporter did not generate E way bill ⇓ Any of the URP (only i n theory practically not possible) NOTE: I n case of Railway, Not required to generate EWB at time of movemen of fjoods but it should be generated before or at time of delivery of fjoods
  • 76. FORMS & VALIDITfj OF E-WAfj BUL FORMS 1. Forms of E-way BUL Forms Form fjST EWB 01 → E-way bill form Form fjST EWB 0 2 → Consolidated E-way Bill form to be generated by Transporter Form fjST EWB 0 3 → Inspection report to be filled up by proper officer (In case when fjoods are detained by officers for checking during Transport) Form fjST EWB 0 4 → Form to upload details by Transporter, if vehicle detained for more than 3 0 mins 2. Validity Period of E-way Bill CASE 1 Other than Over Dimentional Cargo :- One day for 2 0 0 k m or part of the 2 0 0 k m CASE 2 Over Dimentional Cargo (ODc) or mul ti model shipment i n which at least M u l t i model one leg involves Transport by ship → One day for 2 0 k m or Part of the 20km. eg. - M r M f j sent goods from Ajmer to Jaipur. - M f j filled Part A of the EWB & fjoods handed over to fjTA O n 10-7-23. - fjTA filled part B on 12-7-23 at 2 pm. - Distance between Ajmer to Jaipur 263 km. - Mode of Transportation, other than ODC. → Determine last date of validity of EWB. N O TE:- Validity period will start from midnight of the day i n which EWB is filled Soln EWB generated on 12-7-23 at 2pm → M i d n i g h t of 12-13 July One day completed on 13-14 July midnight 2nd day completed on 14-15 July midnight → So validity till 14-15 July midnight. * Bill to ship to Model I n a “Bill To Ship To” model of supply, there are three persons involved i n a transaction, namely: ‘A’ is the person who has ordered ‘B’ to send goods directly to ‘C’. ‘B’ is the person who is sending goods directly to ‘C’ on behalf of ‘A’. ‘C’ is the recipient of goods. I n this complete scenarios two supplies are involved and accordingly two tax 3 E-WAY BILL
  • 77. 4 E-WAY BILL invoices are required to be issued: Invoice 1:which would be issued by ‘B’ to ‘A’. Invoice 2: which would be issued by ‘A’ to ‘C’. It is clarified that as per the CfjST Rules, 2017, either A or B can generate the e-way bill but it may be noted that only one e-Way Bill is required to be generated [Press Release dated 23.04.2018] * Exemption from fjeneration of E-way Bill Exemption from generation of e-way bill Where the goods are being transported Which are specified i n annexure * Exempted goods (except de-oiled cake) Consignor of goods is fjovt./Local Authority By rail EWB not required EWB required Other than rail Movement of goods caused by defence formation Empty cargo container Empty cylinders Non-taxable goods i.e. petrol, natural gas, alcohol etc. fjoods covered under Schedule I I I of CfjST Act, (no supply items) The transit cargo from or to Nepal or Bhutan Up to a distance of 2 0 k m from the place of business to weighbridge or vice versa By non- motorized conveyance From the customs port, Airport, air cargo complex and l and customs station to I n l a n d container depot or container freight station or vice versa * Part B is not required to be filed upto 5 0 k m Explanation 2 to rule 138(3) stipulates that e-way bill is valid for movement of goods by road only when the information i n Part-B is furnished. However, details of conveyance may not be furnished i n Part-B of the e-way bill where the goods are transported for a distance of up to 5 0 k m within the State/Union territory: • From the place of business of the consignor to the place of business of the transporter for further transportation [Third proviso to rule 138(3)] or • From the place of business of the transporter finally to the place of business of the consignee [Proviso to rule 138(5)].
  • 78. 5 E-WAY BILL 40Km Distance Supplier Mr. Ram Vasai Transporter Z M u m b a i Andheri Transporter f j Jaipur Transporter Z Filled part B on Recipient Delhi 22/01/20 (Andheri to Jaipur) Part B Not required, if distance is up to 5 0 k m ‘Z’ handover goods to ‘fj’ i n jaipur on 25th Jan 2 0 New EWB : Not Required Only Updation is required in part B Mr. Ram Filled part A on 19/01/20 & fjoods Handover to transporter Z * Transfer of fjoods from one conveyance to another / one transporter to another Where the goods are transferred from one conveyance to another, the consignor or the recipient, or the transporter shall, before such transfer and further movement of goods, update the details of conveyance i n Part B of the e-way bill on the common portal [Rule 138(5)]. The consignor/recipient, or the transporter, may assign the e-way bill number to another- registered enrolled transporter for updating the information i n Part B for further movement of the consignment [Rule 138(5A)]. However, once the details of the conveyance have been updated by the transporter i n Part B, the consignor or recipient, as the case may be, who has furnished the information i n Part A shall not be allowed to assign the e-way bill number to another transporter [Proviso to rule 138(5A)]. Example: Mr. Ram is required to move goods from Japan to Mumbai. He appoints Transporter R for movement of his goods. Transporter R moves the goods from Japan to Ahmedabad For completing the movement of goods i.e. from Ahmedabad to M u m b a i Transporter R now hands over the goods to Transporter S.Thereafter, the goods are moved to the destination i.e. from Ahmedabad to M u m b a i by Transporter S.I n such a scenario, only one e-way bill would be required. Part A can be filled by the consignor and then the e-way bill will be assigned by the consignor to Transporter R. Transporter R will fill the vehicle details, etc. i n Part B and will move the goods from Japan to Ahmedabad. O n reaching Ahmedabad, Transporter R will assign the said e-way bill to the Transporter S. Thereafter, Transporter S will be able to update the details of Part B. Transporter S will fill the details of his vehicle and move the goods from Ahmedabad to Mumbai [Press Release No. 144/2018 dated 31.03.2018].
  • 79. 6 E-WAY BILL * Blockage of fjeneration of E-way Bill Rule 138E E-Way Bill fjeneration is Blocked i n respect of Non-filers Registered person 1. Person other than composition Supplier (a) Non-Filing of fjSTR-3B (Returns) for a consecutive Period of 2 Tax period OR (b) fjSTR-1 for any 2 Months or Quarters, as the case may be 2. Composition supplier [u/s 10 of The statement i n F O R M fjST C M P 0 8 CfjST Act] For 2 Consecutive Tax Period Avail the benefit of N N 02/2019 [presumptive Levy Scheme] E.g.: Mr. ‘X’ (other than composition supplier) fails to furnished fjSTR–3B for month of April 2021 (Due date 2 0 t h M a y 2021) & M a y 2021 (Due Date 2 0 t h June 2021) Portal will automatically block EWB from 21st June 2021 Suppose Mr. ‘X’ Fails to furnished fjSTR–3B for month of June 2021 (Due Date 2 0 t h July) Also fjeneration of EWB remain Blocked Suppose Mr. ‘X’ furnished fjSTR–3B for month of April 21& month of M a y 21on 25th July Portal will automatically unblock on the next day [Because default period has been reduced & now it is less than 2 Months] Do fjou Know? 1. Unblock the blockage of generation of EWB by Commissioner. The Commissioner may, on receipt of an application from a registered person i n FormfjST EWB–05, unblock the blockage of fjeneration of EWB (Subject to Conditions) by issuing an order i n Form fjST EWB–06. E-way bill generation facility to be blocked only i n respect of outward movement of goods, by the defaulting registered person [Rule 138E] E-way bill generation facility is blocked only i n respect of any outward movement of goods of the registered person who is not eligible for e-way bill generation as per rule 138E. E-way bills can be generated i n respect of inward supplies of said registered person.
  • 80. 7 E-WAY BILL For Example :- Mr. A, a registered person paying tax under regular scheme i n Delhi, has not filed Form fjSTR-1 for last 2 months. Mr. B, Haryana, (a regular return filer) wants to generate an e-way bill for goods to be supplied to Mr. A. As per earlier position of law, Mr. B would not have been able to generate e-way bill with Mr. A’s fjSTIN. I n terms of the amended position of law, there will be no more restriction i n generating e-way Bill as Mr. B who is making outward movement of goods is a regular return filer. Mr. A wants to generate an e-way bill in respect of an outward supply of goods to Mr. H. E- way bill generation is blocked i n this case as it’s a n outward movement of goods of Mr. A who has not filed fjSTR-1 for past 2 months. [Notification No. 15/2021 CT dated 18.05.2021] Rule 138E (d):- Any person whose registration has been suspended under Rule 21A (In case Registration cancellation proceeding is pending) fjeneration of E-way Bill is Blocked. [w.e.f. 22/12/20]
  • 81. 1 RETURNS * SEC 37- FURNISHINf j DETAILS OF O U T W A R D SUPPLIER (fjSTR-1) (i ) Who is required to furnish details of outward Supplies i n Form fjSTR 1? → ALL RP including casual Taxable Person excluding : - Input service Distributor (ISD) Non-Resident Taxable person - - Composition Scheme Tax payer Person deducting Tax at Source (TDS deductor) - - - Person collecting Tax at source (TCS) Supplier of O I D A R Services Located i n non- taxable territory providing services to non-taxable online recpt (B→C) / Online Money fj ami ng (Supplier from NTT) (ii) W h a t is the due date of submission of fjSTR-1 ? Class of RP Time l i mi t for furnishing fjSTR-1 1 Registered Person opting for 13th day of the month suceeding such tax period Q R M P Scheme 2 Others eg] April - June 13th July 11th day of the month suceeding such tax period (Monthly) /But i n case of Quarterly statement → Last day of the month from end of the quarter. eg 1 M f j (RP) opting Q R M P Scheme. fjSTR 1 for Quarter of :- Apr - June 23 → Due Date 13th July 23 July - Sept 23 → 13th Oct 23 Oct - Dec 23 → 13th Jan 24 Jan- March 24 → 13th Apr 24 eg2 M f j did not opt for Q R M P scheme. Pfj TO OF M f j , is  1.5Cr fjSTR 1 for quarter of : Quaretr April - June 23 Due date 31st July 23 July 23 → Sep 23 31st Oct 23 13 RETURNS
  • 82. 2 RETURNS (iii) Caces where a RP is debarred from furnishing details of outward supplies i n fjSTR-1 / IFF If RP not furnished fjSTR - 3B of preceeding 2 months I n case of Q R M P Scheme ⇓ If RP not furnished fjSTR - 3B for Preceding tax period (inshort previous Quarter) Any RP Covered under Rule 86 B ⇓ If not furnished return (fjSTR-3B) Preceeding Tax period 1 2 3 Amendment 4. If he has not furnished the Bank Account details as per the provision of Rule 10 A 5 . A RP to whom an intimation has been issued on common portal, that he claimed Excess ITC & such RP has not furnished any reply explaining reason or he has not paid such excess A m t of ITC within 7 days. ⟹ Points to be noted A tax payer cannot File fjSTR- 1before the end of the current tax period Exceptions :- - Casual Tax payers after closure of their businesses. - Cancellation of fj STIN of a normal taxpayer * Outward Taxable supplies to be furnished i n fjSTR-1 Outward Taxable Supplies to be furnished i n fjSTR-1 B2B supplies Invoice-wise details of al l supplies to be uploaded Invoice-wise details to be uploaded State-wise consolidated details to be uploaded Invoices > ` 2,50,000 Invoices  ` 2,50,000 Consolidated details of al l supplies to be uploaded Inter-state supplies Intra-state supplies Inter-state supplies Intra-state supplies B2C supplies
  • 83. 3 RETURNS * A N N U A L RETURN fjSTR - 9, 9 A ,9B (1) Who is liable for furnishing Annual Return? fjSTR-9 → Every Reg person except :- (i) Cassual Taxable person. (ii) Composition Scheme Holder [fjSTR 9A] (iii) ECO [fjSTR 9B] (iv) NRTP (v) Input service Distributor (vi) TDS deductor U/S 51 (2) Due date of filing Annual Return (fjSTR-9, 9A, 9B) 31st Dec of next Ffj (3) fjovt Dept & LA are exempt from furnishing annual return (4) it is optional if ATO <2cr LATE FEE FOR DELAfj I N FILLINfj RETURN * Late FeeLevied for Delay i n Filing Return (fjSTR-1, 3B) 1. Registered persons who have nil outward supplies in the tax period whose total am t of tax payable in the fjSTR-3B is NI L 5 0 0 (250 each under CfjST + SfjST/ UTfjST) 2 0 (10 CfjST+ 10 SfjST/ UTfjST) for every day during which such failure continues Whichever is Lower 2. Registered persons other than those covered in (1)whose ATO is upto 1.5cr in preceding Ffj 2 0 0 0 (1000 each. under CfjST + SfjST /UTfjST) Whichever is Lower 5 0 (25 CfjST + 25 SfjST / UTfjST) for every day during which such failure continues
  • 84. 4 RETURNS 3. RP Whose ATO is > 1.5 & ≤ 5cr in Preceeding Ffj 5 0 0 0 (2500 each. under CfjST + SfjST /UTfjST) 5 0 (25 CfjST + 25 SfjST / UTfjST) for every day during which such failure continues wel 4. RP Whose ATO > 5cr i n Preceeding Ffj 1 0 0 0 0 ( 5 0 0 0 each. under CfjST+ SfjST /UTfjST) 5 0 (25 CfjST + 25 SfjST / UTfjST) for every day during which such failure continues wel * For Delayed Filing of fjSTR -4 (1) Total Tax payable in fjSTR -4 is nil 5 0 0 (250 each. under CfjST + SfjST /UTfjST) 2 0 (10 CfjST + 10 SfjST / UTfjST) for every day during which such failure continues wel (2) RP other than those covered in (1) above 2 0 0 0 ( 1 0 0 0 each under CfjST/ SfjST /UTfjST) 5 0 (25 CfjST + 25 SfjST / UTfjST) for every day during which such failure continues wel * Delayed filing of Annual Return (1) RP whose ATO ≤ 5cr in the relavant Fy 5 0 per day (25 CfjST + 25 SfjST 0.04 %of turnover i n the state or union territory (0.02 % CfjST + 0.02 % SfjST)
  • 85. 5 RETURNS (2) RP whose 5cr < ATO ≤ 20cr in the relavant Fy 100 per day (50 CfjST + 5 0 SfjST / UTfjST 0.04 %of turnover i n the state or union territory (0.02 %CfjST + 0.02 % SfjST / UTfjST) (3) RP whose ATO > 20cr in the relavant Fy 2 0 0 for every day during which such failure continues (100 CfjST + 100 SfjST / UTfjST) 0 . 5 0 %of the TO of the RP i n the state / U T (0.25 %)CfjST + 0.25 / SfjST / UTfjST ) * Delayed filing of fjSTR -7 Q u a n t u m of Late fee 5 0 (25 each under CfjST & SfjST / UTfjST) For every day during which such failure continues 2 0 0 0 (1000 each under CfjST & SfjST / UTfjST) ACTIVITIES W H I C H C A N BE UNDERTAKEN Bfj A fjSTP A fjSTP can undertake any/all of the following activities on behalf of a registered person, if so authorised by him: a) Furnish details of outward and inward supplies b) Furnish monthly, annual or final return c ) Make deposit for credit into electronic cash ledger d) Furnish information for generation of e-way bill e) Furnish details of challan i n the prescribed form f) File an application for amendment or cancellation of enrolment under Rule 58 g) File an intimation to pay tax under the composition scheme or withdraw from the said scheme h) File a claim for refund & Confirmation from the registered person shall be sought i) File an application for registration amendment/cancellation & Confirmation from the registered person shall be sought j) Also allowed to appear as authorised representative before any officer of Department, Appellate Authority or Appellate Tribunal, on behalf of such a registered person provided he is enrolled as fjSTP under rule 83
  • 86. 1 TDS /TCS TAX DEDUCT AT SOURCE U/S 51 1. Who is Supplier & Receipient Suppler = Any Person Recipient = 7 Wonders (1) fjovernment (2) Local Authorities fjovt. Agencies (3) (4) fjovt Department fjovt Society (5) (6) (7) PSU- Public Sector Undertaking Other Body set up under the Parliament (with 51% equity with fjovt) 2. Threshold Limit Contract Taxable value value (excl .fjST) > 2.5 Lakhs 3. Due Date of payment Due date of Payment of TDS = within 10 days from the end of the month 4. Rate of TDS Intra State ⇓ CfjST = 1% SfjST = 1% Inter state ⇓ IfjST = 2% Example :- M f j July 2023 Contract price = 10l + fjST 18% 7 Wonders R S 26th July - Consideration A m t - TDS @ 2% of Value Value + fjST 1 0 , 0 0 , 0 0 0 + 1,80,000 (20,000) 9 , 8 0 , 0 0 0 + 1,80,000 TDS / TCS