CA Blog India

GST QUICK REVISION

CAPSULE IN FORM OF
FLOWCHARTS
Supply

Inclusions Exclusions

Composite Supply

Naturally Bundled and one is principal supply

All forms of supply of goods or
services or both
Import of services for consideration
whether or not in course or
furtherance of business
Activities specified in Schedule I,
made or agreed to be made without
consideration
Schedule I
Permanent transfer/disposal of
business assets
Taxable person Good A ( principal)
Service by employee to employer +
Good B ( Supplemental)
OR
Service A ( principal)
Services by any court or Tribunal +
established under any law Service B ( Supplemental)
OR
Any Service( principal)
Functions performed by MP, MLA, +
members of Panchayats, Municipalities and Recipient
Any Good (Supplemental)
other local authorities; or
Persons holding constitutional post; or
Any chairperson, member or director in
body established by CG/SG/local authority
who is not deemed as an employee before
commencement of this clause

Services of funeral, burial, crematorium or Mixed Supply

Supply between related parties/ mortuary
distinct persons Taxable person
Any INDIVIDUAL
Good or Service
Sale of land, building, where no For single +
Gifts by employer to employee consideration received before issuance of consideration One or more than
exceeding Rs. 50,000 completion certificate One INDIVIDUAL
Goods or service
Recipient
Supply of goods by principal to agent Actionable claims other than lottery,
or agent to principal betting & gambling

Import of services by taxable person

from related person or any of his Transactions undertaken by CG/SG/local
establishment outside India, in authority in which they are engaged as
course or furtherance of business public authorities

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Aggregate Turnover Composite Scheme

Conditions Non eligibility

Taxable supply excluding Reverse Supply of services except clause (b) of Para 6
Aggregate Turnover < 1.5CRORE
Charge Having same of Sch II
PAN, on all
India Basis
Tax is not collected from Supply of goods not liable to tax
Exempt Supplies recipient of supply

Supply of goods through E-commerce

Export of goods and services
Interstate transfer to same PAN
Input tax credit not availed operator collecting tax u/s 52
Excluding
central, State, Manufacturer of goods notified by government
UT, integrated
tax and cess
Multiple registered persons having same PAN
unless all opt to pay tax under composition levy

Rate of tax
Actionable claims other than lottery, betting &
In case of: Rate not exceeding gambling
Threshold Limit Manufacturers 1% of T/O of State
and traders or UT
Supplies under 2.5% of T/O of State Transactions undertaken by CG/SG/local
Aggregate Turnover > 20 Lakhs; clause (b) of Para or UT authority in which they are engaged as public
10 Lakhs in case of Special category 6 of Sch II authorities
states Restaurant 5% of T/O of State
or UT

Time of Supply

GOODS (u/s 12) Liability to pay tax at the time of supply SERVICES (u/s 13)

Other Other Supply of Forward Reverse

Forward Charge Supply of cases cases vouchers Charge Charge (u/s
Reverse Charge vouchers (u/s
(u/s 12(3)) (u/s 12(2)) (u/s (u/s (u/s 13(4)) [u/s 13(2)] 13(3))
12(4)) 12(5)) 13(5))

Supply of Earlier of
Supply of two events
goods goods
Earliest of the Earliest of the identifiable when Earliest of the
Date of Date of identifiable Invoice
following:- following:- filing of filing of following:-
(a) the date of the (a) the date of issued u/s
return return 31(2)
receipt of goods; issue of (a) the date of
OR invoice or payment as
(b) the date of the last date Date of OR OR Date of entered in
issue of issue of Date of
payment as to issue issue of the BOA of
entered in the invoice u/s voucher Date of Date of voucher the recipient
payment payment invoice
BOA of the 31(1), or the date
recipient or the OR of tax of tax Supply of on which
Supply of OR
date on which (b) the date on goods goods payment
payment is which the Unidentifiable Unidentifiable is debited
Date of
debited in his supplier Receipt of in his bank
bank account, receives the payment account,
whichever is payment. whichever is
earlier; Date of Date of OR earlier;
OR redemption redemption OR
(c) the date of voucher of voucher Date of (b) the date
immediately provision immediately
following 30 of service following 60
days from the ✳ Receives an advance upto ` 1000 in excess of amount on invoice, option to days from
date of issue of treat the time of supply to be the date of issue of invoice relating to such the date
invoice. excess amount. of issue of
invoice.
Earlier
✳ Time of supply for interest, late fees or penalty for delayed payment of any of two
consideration shall be the date on which the supplier receives such addition events if
in value.(sec. 12(6) & 13(6)) Invoice
not
issued u/s
31(2)

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Value of goods and/or services u/s 15 = Transaction Value when supply is made to unrelated person and
price is the sole consideration. When value cannot be determined u/s 15, the same will be determined using
Valuation Rules.

Valuation Rules

RULE 1 : Where the
consideration is not wholly in
money
Value shall be either of the
following in the given order
• open market value
• total of consideration in
money + amount equal to the
consideration not in money
• value of supplies of like kind
and quality
• Consideration in money +
money value of consideration
as per rule 4 or 5 in that order.
RULE 2 : Where supply is
between distinct or related
persons, other than agent
Value shall be either of the
following in the given order:
• open market value
• value of supplies of like kind
and quality
• value as per rule 4 or 5 in that
order.
RULE 8 : Rate of exchange of currency, other than Indian rupees, for
determination of value
It shall be applicable reference rate for that currency as determined by the RBI on
the date when point of taxation arises in respect of such supply.
RULE 3 : When supply made or received
through an agent
Value shall be either of the following in the
given order:
• open market value or 90% of price charge
by recipient to his unrelated customer for
supplies of like kind and quality;
• value as per rule 4 or 5 in that order.
RULE 4 :Value of supply based on cost
Value shall be 110% of cost
RULE 5 : Residual method for
determination of value of supply
Value shall be determined using reasonable
means consistent with the principles and
general provisions of section 15 & valuation
rules. For services, rule 5 can be adopted
before rule 4.
RULE 7: Value of supply in case of pure
agent
Costs incurred by the supplier as a pure agent
of recipient shall be excluded from value of
supply.
RULE 6 : Value of supply in respect of certain
supplies
• Purchase/sale of foreign currency: When
exchanged from, or to, (INR), value = [Buying
rate/Selling rate – RBI reference rate at that
time] x total units of currency. If no RBI
reference rate, value = 1% of INR received/
provided. If the currencies exchanged are not
in INR, value = 1% of lesser of two amounts
that would have been received by converting
any of two currencies into INR at RBI
reference rate. OR specified % for different
slabs of the gross currency exchanged.
• Booking of tickets by air travel agent: Value
= 5% of basic fare for domestic bookings,
and 10% of the basic fare for international
bookings.
• Life insurance business: Value = gross
premium charged from a policy holder
reduced by amount allocated for investment
OR specified % of premium in 1st and
subsequent years.
• Buying & selling of second hand goods:
Value = Selling price – Buying price (ignore if
value is –ve).
• Coupon/voucher: Value = money value of
supplies redeemable against such voucher/
coupon.
• Notified supplies under Entry 2 of
Schedule 1: Value = Nil

Place of Supply of Goods

Other than Goods Goods Imported into or

Imported into or Exported from India
Exported from India

Goods Imported Goods Exported

into India from India

Place of supply of Goods shall Place of supply of Goods shall

be the location of the Importer be the location outside India

Supply Goods are supplied Supply does Goods are Goods are Place of supply
Involves by transfer of not Involve Assembled supplied of Goods
Movement of document during Movement Of or Installed on Board a cannot be
Goods Movement of Goods Goods at Site Conveyance Determined

Principal Place of Place of

Location of Location at supply shall be
Business of Third Location of Place of such which such
Goods where person on whose Goods at determined in
movement installation Goods are
direction Goods the time of or delivery such manner
terminates for taken on as may be
where supplied to delivery Board
delivery Another person prescribed

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Place of Supply of Services

Supply to a registered person - Location of such

General rule person.
Location of supplier of service and Supply to non-registered person - Location of
recipient of service is in India recipient, if address exists in records. In other
Specific situations cases, location of supplier

Organization Admission
Specific Services Telecommunication
Services of event and to a cultural, Services
Services such as on Board a services including
relating to ancillary artistic, sporting Goods Passenger directly
Health services, Conveyance data transfer,
Training & services relation etc., events, transportation transportation related to
Restaurant such as Broadcasting, cable
Performance to such event amusement services services Immovable
services Aircraft, and DTH
Appraisal or assigning of park & ancillary Property
Vessel etc.
Sponsorship services thereto

Place where the event

Place of
is actually held or Location
Actual
where the park or such of the first
Performance Services to Services to
other place is located scheduled
Registered unregistered
point of
person person
departure
of that
conveyance
Services to Services to
Registered Unregistered Location Where the
person person of such passenger
person embarks on
the conveyance
Services to Services to for continuous
Registered Unregistered journey
Location Place of person person
of such actual
person performance
Location Place where goods
of are handed over for
recipient their transportation Immovable property Immovable property
located in India located outside India

Services to Services to
registered Unregistered
person person

Fixed line / Mobile connection Mobile connection

Leased circuit, & Internet & Internet
Location of In any other case
Internet based services services (pre paid
such person
Event is Event is circuit (post paid services) services)
held in held outside
India India

Place of Billing address of

Installation of the recipient
Where the Location of such circuit
event is the recipient
actually held

If provided through If provided by any person

selling agent then place to final subscriber then
of supply is address of location where such
such selling agent payment is received

Address of the
recipient as per
records of the
supplier

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Place of Supply of Services

Location of supplier of service and recipient of services outside India

Services in
Admission Transportation Services relation to
Services to a cultural, of Goods on Board a Immovable Online
provided in Specific artistic, sporting, other than by Passenger Conveyance Property , hotel information
relation to Services educational or way of Mail Transportation such as accommodation, services and
Goods entertainment or or Courier Services Aircraft, inn guest house database access or
similar events services Vessel etc. or grant to u retrieval services
se immovable
property

Goods Where the Location Location of Location of

required Place passenger of the first Immovable Recipient of
to be made where the embarks scheduled property services
Services Place of
available for event is Destination on the point of
provided conveyance
providing from remote actually departure
services to held for continuous of that
location journey
the supplier conveyance
of services

Location Banking Services

where the services or consisting
services are Location services by Intermediary of hiring of
performed where the non- banking Services means of
Goods are financial transport
situated companies

Location of Supplier of Services

Input Tax Credit

Non eligibility Goods sent for Job Work

Eligibility
Payment not made within 180 days from Even if inputs/capital goods sent directly
Supplies used in furtherance of business date of issue of invoice, reavailment when to job worker
payment made
Possession of invoice/equivalent document
Claimed depreciation of tax component Inputs not received
Receipt of supplies Deemed Supply back within 1 year

Tax charged actually paid to government After due date of furnishing return u/s 39
for the month of September following the end Capital Goods
Furnished return u/s 39 of FY to which invoice/debit note pertains or not received back
annual return, whichever is earlier within 3 years

Credit restricted to Ineligible supplies as per section 17(5)

Input Service Distributor
Inward supplies Input tax No credit after the expiry of 1 year from Pro rata distribution of credit
used for: Business attributable to date of issue of invoice in case of new
purposes supplies used for registration or person ceases to pay tax
Other purposes the purposes of u/s 10 or exempt supply becomes taxable
By way of issue of document
business
Special circumstances
In case of change On the basis of turnover in a state/UT
Inward supplies Input tax Transfer of credit in constitution
used for: attributable to
Exempted output taxable supplies
supplies including zero Person opts to pay
Taxable output rated supplies Reversal of credit tax u/s 10
supplies
Supply of Capital
goods or P&M on
which ITC was taken

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Exempt Supplies Optional Voluntary registration

Registration
Agriculturist Separate registrations for
multiple business verticals
in a state/UT

Aggregate T/O > 20 Lakhs;10 Lakhs in Application for

case of Special category states registration Within 30 days of becoming liable

Persons registered under existing law

Transferee/successor of transferred
business Application for
Amendment
Within 15 days of such change

Interstate supplies

Input service distributor

Persons liable for registration

Application for
Cancellation
Persons covered under RCM Within 30 days of occurence of event
warranting cancellation

E-Commerce Operators/ persons

representing E-Commerce operators

Persons making supplies through

E-commerce operator, liable to collect tax Application for
at source u/s 52 Revocation of
Cancellation Within 30 days from date of servcie of
order of cancellation

Agents paying tax on behalf of other

taxable persons

Supply of OIDAR services from outside

India to non-registered person in India
5 days prior to Earlier of:
commencement Period
of business along Validity specified in
Specialised agencies- grant of UIN with advance application
deposit of or,
Application for estimated tax 90 days from
registration registration
Casual or Non-resident taxable persons liability

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Penalty: Outward, Inward & GST Returns Penalty: Annual Returns
Monthly Return - INR 100 per day
- INR 100 per day - Up to max. of 0.25% of aggregate
- Up to maximum of INR 5000/- turnover

Monthly Returns Annual Returns Misc. Returns

u/s 44

Normal Assessee Other Assessee Normal Assessee First Return (Sec. 40)
GSTR – 9 (31st Dec. of Every Registered person who has made
next F.Y.) outward supply in period
Between <date on which he is liable
Outward Details Non-Resident for registration> Till <date on which
u/s 37 Taxable Person, Person liable to pay tax registration has been granted>
GSTR -1(10th of Input Service under Composition
next month) Distributor, Person Levy
paying tax u/s 10,
GSTR -1A (15th 51 & 52 (Required GSTR – 9A (31st Dec. of
to 17th of next to file return u/s 39 next F.Y.) Final Return (Sec. 45)
month) only, No concept of Every Registered person who applies for
Inward/ Outward cancellation of return shall furnish final
Return) return within
- 3months of Date of Cancellation
- Date of Cancellation Order
Whichever is later

Inward Details Input Service

u/s 38 Distributor
GSTR -2 (15th of Monthly Return Return after Notice to Return Defaulters
next month) (within 13th of Where registered person fails to furnish
next month) return u/s 39 or 44 or 45
A notice shall be issued requiring him to
furnish such return within 15 days

Return u/s 39 Person liable to

(with Tax) pay tax under
Composition Levy
GSTR -3 (20th of
next month) Quarterly Return
(within 18th of the
month following
the quarter)

Non-resident
Taxable Person
20th of Next
Month or 7 days
after the last day
of registration u/s
27(1), whichever
is earlier

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Assessment

Provisional Assessment of Assessment of Scrutiny

Scrutiny of
Self Assessment Assessment Non-filers of Unregistered Assessment in
Returns
Return Persons Certain Special
Cases

Every registered Person unable In order to If return is not Proper officer Proper officer
person shall to determine verify accuracy furnished even to the best of may issue an
himself assess value of supply of return, the after service of his judgment, assessment
tax liability and or rate of tax. Proper Officer notice u/s 46, may issue an order imposing
furnish a return. may examine assessment order, tax liability on
return and seek within a period a person based
explanations. of 5 years from on any evidence
Payment of tax the date specified showing a tax
on provisional under section 44 liability.
basis on execution If explanation for furnishing of
Proper officer
of bond on a offered is the annual return.
shall assess the
request made. adequate, no liability of tax If person to whom
further action. within a period liability pertains is
of 5 years not ascertainable,
Final Assessment from the date the person in
Time: 6 months If no adequate specified u/s 44 charge of goods
from date of explanation for furnishing of shall be assessed.
communication offered or no annual return.
of order corrective
Extension: 6 measures. If order is
months by Joint erroneous, proper
Commissioner officer may
4 years by Proper Action u/s withdraw such
Commissioner Sec. 65,66,67,73 order and follow
or 74. the procedure laid
down in section 73
or section 74.
If short paid, If excess paid,
pay with refund with
interest u/s interest u/s
50 54(8)

Audit

Audit by Tax Authorities Special Audit

• Commissioner or any officer authorized by him • At any stage of scrutiny, inquiry or investigation.
may undertake audit of any registered person. • Assistant Commissioner is of the opinion that
• Audit may be conducted at the place of business the value has not been correctly declared or the
or in their office. credit availed is not within the normal limits
• At least 15 days prior notice should be given • may nominate a chartered accountant or cost
• Time Period : 3 months from the date of conduct accountant
of audit. • Time period : 90 days
• Extension : not exceeding six months. • Extension : further 90 days
• On conclusion, registered person shall be • Audit will be conducted even if accounts have
informed about findings, rights & obligations. already been audited.
• If results in demand of tax, shall be recovered • If results in demand of tax, shall be recovered
under section 73 or 74. under section 73 or 74.

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OFFENCES & PENALTIES

1 2 3

Offences related to invoices,
transportation, payment of tax,
ITC, refund, tax deduction or
collection, furnishing of false
records or information, etc.
(For details refer Note 1).
Higher of `10,000
or tax due
`10,000 or an amount
equivalent to tax evaded/tax
not deducted/collected/not
paid to the government/ITC
availed, passed or distributes
irregularly/fraudulent refund
whichever is higher.
Tax not paid, short paid or erroneously • Aids or abets offences
refunded or ITC has been wrongly vailed
• Acquire possession/concerns in
or utilized
dealing goods which he knows or
reason to believe are in contravention
such as transport, remove, keeps,
Fraud Other conceals, supply or purchase.
• Fails to appear when summon is
issued to give evidence/produce a
Higher of `10,000 document
or 10% of tax due • Fails to issue invoice or account for in
accordance with provision.
4
Fails to furnish
`100 per day for which
information return ` 25,000.
failure continues. Max
within the period as
` 5,000
specified in notice

Fails to furnish
• ` 10,000 No penalty
statistics without
reasonable cause/ • In continuing is provided
willfully furnishes offence `100 per separately
Prosecution day. Max ` 25,000
or causes to furnish
false information

>` 500 L `500 L < & >`200L `200 L < & > `100 L Aids/abets commission of offence
5 years and fine 3 years and fine 1 year and fine 6 months or fine
Not less than 6 Months

On 2nd Conviction Punishment will extend to 5 years and fine. Min 6 months

Note 1

1 Supplies made without invoice/ false invoice/ invoices or bills issued without any invoice/ transports taxable goods without
document cover.
2 Collects tax, but fails to pay within 3 months.
3 Fails to deduct any tax or collect tax/ deduct or collect lesser amount of tax/ failed to pay the same.
4 Takes or utilizes ITC/ takes or distributes ITC in contravention of the act.
5 Obtains refund fraudulently.
6 Falsifies or substitutes financial records/ produces fake accounts/ furnishes false information with an intention to evade tax/
suppresses the turnover in order to evade tax.
7 Fails to obtain registration/ furnishes false particulars with regard to registration/ issues invoices using registration number of
another person.
8 Obstructs or prevents officer incharge of its duties.
9 Fails to keep, maintain or retain books of accounts.
10 Fails to furnish information or documents/ furnishes false information during any proceedings.
11 Supplies, transports or stores goods which has a reason to believe are liable for confiscation.
12 Tampers with or destroys any material evidence or document. Disposes off or tampers any goods that have been detained, seized
or attached.

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INSPECTION, SEARCH AND SEIZURE

Proper Officer not below the rank of Joint Commissioner power to summon any person
whose attendance is necessary
to give evidence or to produce
documents in any enquiry (Sec.70)

Will record in writing the reasons to believe that

Taxable person Taxable person Taxable person Any person has evasion of tax by
has supressed has claimed has contravened kept goods or the person engaged Goods, Documents
any transactions ITC in excess of any provision of books of accounts in the business of or things, etc are
relating to goods, entitlement the act or rules to cause evasion transporting goods, secreted & useful
services or both of payment of tax warehouse or godown to any proceedings
(Sec 67(11)) operator / owner

Inspection of places of taxable as well as any person (Sec.67)

Search ,seize & confiscate goods,

documents, books or things (Sec 67 (2))

business premises of Goods in movement Practicable Not practicable

registered person (Sec. 71) (Sec.68)

Carrying out any audit, person in charge must not relied upon Service an order on
relied upon for issue
scrutiny, verification & carry documents of the owner or the
of notice (sec. 67(3))
checks to safe guard interest conveyance with him custodian of the
of revenue goods by proper
officer

On making demand on intercepted bye the Retained by Not remove or deal

authorized by proper proper officer such officer for Returned within 30 with the goods
officer any inquiry or days of the issue of except with the
proceedings under notice previous permission
Within 15 Working Days Of this act of officer
Demand Or Any Further
Period Allowed

Liability to produce the Manner to release

document & devices by confiscated goods,
person in charge
documents, etc

provisional basis Actual discharge perishable or

(Sec. 67(6)) when no notice hazardous goods,
issued (Sec.67 (7)) constraint of Disposed by
storage space, etc proper officer
(Sec.67 (8))

Execution of bond & Payment of applicable within 6 months of Prepare inventory of such
fumishing security tax interest & penalty seizure of goods goods(Sec. 67(9))

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Migration Provisional registration on appointed day Final registration after information

Credit in return Carry forward in GST

Exempted to taxable/ Composition Credit of closing stock

Un-availed ITC on Capital Goods Eligible in GST

Transitional Provisions

Goods/services received after GST Credit eligible in GST

CENVAT/ITC

Centralized registration T/f CENVAT to same PAN

Non-payment - CENVAT reversed Allowed if paid within 3 months

Credit by ISD Credit of Services received before

GST allowed

Job-Work CENVAT/ITC reversal if not returned within

No reversal if detail of stock given
6 months

From Registered Person New supply under GST

Goods returned
From Unregistered Person Refund if returned within 6 months

Return of
goods
Services not provided Amount to be refunded

Revision of price CENVAT/ITC reversal if not returned within 6 months

Transitional Provisions

Amount refundable To be paid in cash

Return & Assessment proceedings
for output, ITC etc Recover as GST arrear, unless
Amount recoverable
existing law

Tax leviable under Existing taxes to be levied

existing law
Tax on earlier contracts
Supply under contract GST would be levied
entered into earlier

Goods sent on approval Tax payable if returned after 6 months

Deduction of TDS No deduction if TDS liable for deduction in existing law

Import of Services Levy of IGST, if tax not paid under existing law

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