CA - INTER COURSE MATERIAL Quality Education beyond your imagination... SUBJECT CODE: 4B, MATERIAL NO: 74 FAST TRACK MATERIAL ON GOODS AND SERVICE TAX_ 38e (2" VERSION) (NEW EDITION THOROUGHLY REVISED & UPDATED WITH FINANCE ACT 2017. APPLICABLE FOR NOV 2018 CA INTER EXAMINATIONS. THIS MATERIAL IS SYNCHRONISED WITH JULY 2017 EDITION OF ICAI SM.THIS MATERIAL IS ISSUED ON 31.10.2018) NN MASTER MINDS CA + CMA * CS °« MEC + CEC GUNTUR | RAJAHMUNDRY | KURNOOL | VIZAG | NELLORE HYDERABAD | VIJAYAWADA | TIRUPATHI Cell: 98851 25025 / 26 Visit us @ www.mastermindsindia.com | Mail: [email protected] Facebook Page: Masterminds For CA | YouTube Channel: Masterminds For CAS.No Chapter Name Pages 4.__ [Introduction to GST 3-9 2. | Supply 10-17 3.__ | Levy and Collection of GST 18-25 5.__| Time & Value of Supply 26 - 32 6.__| Input Tax Credit, 33-38 7.__ | Registration 39-46 8, __ | Taxinvoice, Debit & Credit notes 47-83 9.__ | Payment of tax 54-57 10.__| Returns 58 - 62| MASTER MINDS = No.1 for CA/CMA & MEC/CEC 1. INTRODUCTION TO GST Government needed some funding (money) to - Y Y Y Meet the needs of Incur the public Fulfill its socio- public expenditure economic objectives Note: ‘+ Taxis one of the sources for generating revenue to the government. + Tax is money that people have to pay to the Government, used to provide public services. * Taxis not a voluntary payment or donation, but an enforced contribution. Branches of taxation ’ ¥ Direct Taxes Indirect Taxes + y Tax Burden will be bore : Tax Burden will be bome by the person himself ww) by another person ¥ + GS ¥ + Income tax interest tax/ est Customs Duty (Taxes on Income) Expenditure tax Features of Indirect Taxes Regressive in Nature: Indirect tax doesn't differentiate the persons based on their ability to pay. Inflationary: Indirect tax directly affects the prices of goods and services, ‘Tax on commodities and services: It is levied on commodities at the time of] manufacture or purchase or sale or importiexport thereof (commodity taxation). Burden shifting: A clear shifling of tax burden in respect of indirect taxes, Important source of revenue: Indirect taxes are a major source of tax revenues for Governments worldwide. No perception of direct pinch: Value of indirect taxes is generally included in the price or value. ‘Social welfare promotion: High taxes are imposed on the consumption of harmful products (sin goods). CA Inter | 38e(2nd Version) | Fast Track Material | GST El98851 25025 / 26 www.mastermindsindia.com Value added tax: GST is a value added tax levied on Comprehensive and continuous chain of tax credits: GST ‘could be levied on the value added at every point of value addition. Credit of GS Manufacture (Of Goods’ and Services Sale Consumption he supplier at each stage is permitted to avail ‘credit of GST paid on the purchase of goods and/or services. No cascading effect of Tax: Only the value added at each stage is taxed under GST, Destination Based Tax: Goods or services will be taxed at the place where their consumption takes place. Need for GST ¥ ¥ Deficiencies in the Existing ‘A cure for ills of the existing Indirect Tax Regime e indirect tax regime Y « ‘+ Noninclusion of several local levies in tate» VAT such as luxury tax, entertainment tac ete ‘+ Double taxation of a transaction whigt?iivelves both goods and services. No CENVAT after manufacturing: Non- integration of VAT& servic The following taxes shall be subsumed in the GST: Central levies | * Additional Excise duties, + Excise Duty, © Service Tax, © Excise duty under Medicinal & toilet preparation Act, + CVD & Special CVD, + CST, Central Surcharges and cesses in so far as they relate to supply of goods and services, Benefits of GST: ‘+ Lower the cost of goods and services ‘* Give a boost to the economy State levies J VAT! Sales tax, Luxury Tax, Tax on Advertisements, Entry tax & Purchase tax, Entertainment tax except levied by local bodies, Tax on betting, gambling, lottery, State surcharges and cesses in so far as they relate to supply of goods and services. Copyrights Reserved Ds To MASTER Guntur CA Inter | 38e(2nd Version) | Fast Track Material | GST| MASTER MINDS = No.1 for CA/CMA & MEC/CEC ‘+ Make our goods and services globally competitive * Creation of unified national market: i) Implements the common tax rates and procedures, ii) Remove common economic barriers by introducing an integrated tax. ‘* Mitigation of ill effects of cascading: Eliminates cascading effect by allowing input tax credit (ITC). ‘+ Elimination of multiple taxes and double taxation: Tackle the highly disputed issues relating to double taxation of a transaction as both goods and services. ‘* Boost to ‘Make in India’ initiative. ‘+ Buoyancy to the Government Revenue: To levy & collect the Government Revenue by widening the tax base. Constitution of GST: ‘+ Allother laws of the Central or State Government have to be consistent with the Constitution ‘+ As per Article 265, no tax shall be levied or collected except by authority of law * Source of power: Articles 246 and Schedule VII distributes the power to impose tax between the CG and SG Power to make laws vest with £ t « 1 ce SG > eGiand 56) CG (Taxes/matters not covered by Note: Taxes deriving their authority under entry 97 of list | are not applicable to Jammu & Kashmir unless consented to by J & K. Need for Constitutional Amendment Act, 2016: ‘+ Separate powers for Centre and State to impose various taxes. + Whereas Centre levied excise duty on goods produced, service tax on services rendered &custom duty on imported goods, ‘+ States levied Value Added Tax on sale or purchase of goods. + Besides, there were State specific levies like entry tax, Octroi, luxury tax, entertainment tax, lottery and betting tax, local taxes levied by Panchayats etc. ‘+ Require amendment in Constitution to integrate all Central & State taxes. + 101% Amendment Act, 2016 was passed. It has 20 sections. ignificant amendments: + Legislature of every State, have power to make laws with respect to goods and services tax imposed by the Union or by such State. ‘+ Parliament has exclusive power to make laws with respect to goods and services tax where the supply of goods, or of services, or both takes place in the course of inter-State trade or commerce. CA Inter | 38e(2nd Version) | Fast Track Material | GST EE98851 25025 / 26 www .mastermindsi com ‘+ Provisions of GST shall apply from the date recommended by GST Council, in the following goods: ¥ Petroleum crude, Y Diesel, Y Petrol, Y Natural gas and ¥ Aviation turbine fuel(ATF) Levy and Collection of GST on Inter-state supply (Article 269A): ‘+ Article 269A empowers the Centre to levy and collect the GST on inter-state trade or supply. ‘+ Tax collected shall be apportioned between the Centre and the states. ‘+ Supply of goods or services in the course of import shall be considered as deemed supplies in the course of inter-state trade or commerce. GST Council: ‘+ The decision making body of GST is GST Council, constituted as per Article 279A + Union Finance Minister is Chairman of this council & Ministers in charge of Finance/Taxation or any other Minister nominated by each States &UTs with Legislatures are its members. + GST Council makes recommendations to Union& States on important issues (Tax rates, ‘exemptions, threshold limits, dispute resolution etc.). ‘+ Every decision of GST Council taken by majority nee) ‘than % of weighted votes of members present & voting. Even after the introduction of GST: * Central excise duty-continues to be levied: natural gas. 3 jacco, petroleum crude, diesel, petrol, ATF and ‘+ State excise duty-leviable on manufaétite/production of alcoholic liquor, opium, Indian hemp and narcotics. + VAT is leviable on intra-State sale of petroleum crude, diesel, petrol, ATF, natural gas and alcoholic liquor. ‘+ Not taxable in GST-petroleum crude, diesel, petrol, ATF, natural gas and alcoholic liquor. Definitions: Article 366 ¥ Y + ‘ gst Services State Goods q ¥ v ¥ Any tax on supply of goods, or | | Anything other than) “46 anu ur with) | Includes all materials, services or both except supply goods Legislature commodities8. articles of alcoholic liquor for human consumption GST Models-Worldwide: ‘+ National GST- Levied by Centre with sharing of revenue with state. (Eg: Australia, China) * State GST- Levied by the state and retained by themselves. (Eg: USA) + Non Concurrent GST-Centre levies GST on services and State levies GST on goods. * Concurrent Dual GST Model- Levied by Centre and state on both goods and services. (Eg: Brazil, Canada, and India) CA Inter | 38e(2nd Version) | Fast Track Material | GST sc |for CA/CMA & MEC/CEC GST Models - Indi + India has adopted a dual GST model. * Centre and States simultaneously levies tax on goods and services. ‘* Centre has the power to tax intra-State sales & States are empowered to tax services. Types CGST —+> CGST Act, 2017 — Central Government. IGST —+ IGST Act, 2017. —» Central Government. SGST ——> SGST Act by Respective states —» State Government & Union Territories with state legislatures* UTGST —+ UTGST Act, 2017 ——-» Union Territories without state legislatures”. “Delhi and Pondicherry (Puducherry) **Andaman and Nicobar Islands, Lakshadweep, Dadra and Nagar Haveli, Daman and Diu and Chandigarh Manner of utilization of ITC: IGST v : IGST + ¥ cast cGsT SGST/UTGST + y + SGST/UTGST iest IGsT GST Common Portal: ‘+ Anelectronic portal based on a website managed by the GST network. + ANon-Profit company constituted under Sec.6 of the companies Act, 2013. + Acommon interface, common IT infrastructure for the tax payers and Government. + GST portal is accessible via Internet, + GST common portal’s Eco system consists of — + Tax payers, "Tax professionals, "Tax authorities, = Banks. Functions of the GSTN + Y Y Y y + Facilitating || Forwarding the) Computation and || Matching of | Providing MIS Running the registration returns _ settlement of IGST| tax payments reports based matching engine taxpayer retum || for matching, information reversal and reclaim of input tax credit, CA Inter | 38e(2nd Version) | Fast Track Material | GST - 7 |98851 25025 / 26 www .master Registration under GST: ‘+ Every supplier of goods and/ or services is required to obtain registration in the State/UT if his aggregate tumover exceeds Rs. 20 lakh during a FY. If the person is carrying out business in the Special Category States — Limit of 20 lakhs reduced to 10 lakhs. (Except Jammu and Kashmir) [Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand * GSP=GST Suvidha Providers. + ASP=Application Service Providers. ‘+ Facilitate the interaction between the GSTN and the tax payers. ‘+ Tax payers uploading invoices as well as filing of returns& act as a single stop shop for GST related services. ‘+ Help of ASPs who act as a link between taxpayers and GSPs. GST (Compensation to States) Act, 2017: ‘+ Asystem to compensate States for a period of 5 years on account of loss of revenue, arise due to implementation of GST ‘* The Base Year shall be 2015-16 for calculating compensation amount. Revenue proposed to be compensated would consist-Of:revenues from all taxes that stands subsumed into the GST law. LW ‘+ Cess is to be imposed over and above the GST orf ¢eitain notified goods: c Cigarettes Aerated Water T Tobacco c Cigar H Hookah PM's Pan Masala, Motor vehicle L Lignite T Tobacco Product c Coal ‘+ The Cess will be levied on all intra-state and inter-state supplies, including import of goods. + The Cess would not be leviable on supplies made by a person who has opted for composition levy. ‘+ Input tax credit on inward supplies liable to Cess can be utilized only for payment of Cess on ‘outward supplies liable to Cess. ‘+ 50% of the amount remaining unutilized in the fund at the end of the fifth year will be transferred to the Centre and the balance 50% would be distributed amongst the State and Union Territories in the ratio of total revenues from SGST/UTGST of the fifth year. CA Inter | 38e(2nd Version) | Fast Track Material | GSTfor CA/CMA & MEC/CEC ication of goods and services: HSN SAC + 1 Harmonised System of Service Accounting Code Nomenclature 1 ‘ Used for classifying the Used for classifying the services goods THE END CA Inter | 38e(2nd Version) | Fast Track Material | GST - > |98851 25025 / 26 www.mastermindsindia.com 1. 2. SUPPLY The incidence of tax / levy is the foundation stone of any taxation system GST resolves these issues by laying down one comprehensive taxable event (Supply) Under GST regime, the entire value of supply of goods and/or services is taxed in an integrated manner. ‘Supply Excludes [Supply for consideration or furtherance of the business - Sec.7 (1) (a) | | [importation of services for consideration or not in course or furtherance of] the business - Sec.7 (1) (0) ‘Sec.7 (1)(0) Negative list of services (Sec. 7(2) + Sch, Il) Supply for consideration or furtherance of the business: i) Supply should be of goods or services. ii) Supply should be made for a consideration ili) Supply should be made in the course or furtherance of business. iv) Supply should be made by a taxable person. v) Supply should be a taxable supply. i) Supply should be of goods or services: ‘Supply of anything other than goods or services like money, securities etc. does not attract GsT. Copyrights Reserved Ds To MASTER Guntur CA Inter | 38e(2nd Version) | Fast Track Material | GST Tm| MASTER MINDS = No.1 for CA/CMA & MEC/CEC ‘Supply includes all forms of supply of goods or services or both, such as: a (soe end vt] I { Barter and Exchange} (Licence, ease aerate] Not defined v Exchange Any payment made or to be made, whether in money or otherwise ‘The monetary value of any act or forbearance involves a where the consideration may be paid in the goods and money as well ‘Y Barter involves only the exchange of] ‘goods or services. ‘Supply should be made for a consideration: In respect of, In response to, or For the inducement of. transaction involving the transfer of goods] without transferring the right to| luse (Effective possession and| control always held by the| transferor). ‘Supply of goods or services or both, whether by the recipient or by any other person as a supply under the CGST Act iii) Supply should be made in the course or furtherance of bu: Business includes: “Shall not be included ‘Any subsidy given by the CG/ISG + Deposit (Unless otherwise the supplier treated as a consideration) Consideration may be paid in advange oifuture payment. Consideration may be in cash or (ar’kind. Consideration may not be necessarily received from the recipient only. Consideration does not incudéS Subsidy received from SG/ CG. ‘Supply of goods or services or both, without con: feration is not a supply unless deemed ess: [Any trade/commerce, manufacturer, profession etc. if there is no monetary benef: Any activity incidental / Ancillary to it ‘Any activity of same nature even ifno volume / continuity ‘Supplylacquisition of good: [closure of business. \cluding capital goods & services-in connection with commencement } Provision of facilities by club/association etc.to its members for consideration [Admission for consideration — to any premises Perey Services as holder of offce-accepled in courseMurtherance of rede or profession } Services by race club by way of ~Totalisator or a licence to book maker in such club J (Any activity by government flocal authority as public authorities, CA Inter | 38e(2nd Version) | Fast Track Material | GST98851 25025 / 26 www.mastermindsindia.com Focus on: © GSTisa tax on commercial transactions. © Those transactions incurred in the course or furtherance of the business shall constitute as a ‘Supply © Supplies made in the individual capacity without a commercial motive does not qualify as a supply Exception to the term “course or furtherance of business” is import of services for a consideration iv) Supply should be made by a taxable person: © GST could be levied only when the supplier is a taxable person, © Inother words, the recipient may or may not be a taxable person. Taxable person | A person who is registered or liable to be registered under section 22 or section 24 Focus on: © A person who was not registered yet but liable for registration or Shall also be a | Taxable Person © Aperson agreed to be registered himselfihersetf! itself voluntarily v) Supply should be a taxable supply: = Any supply of goods or services or both which, i&teviable to tax. «Exemptions may also be provided in respedt eeitain specified services/goods. 2. Importation of services for consideration or,f0t jh course or furtherance of the business: Importation of services In course or furtherance Not in course or of business furtherance of business ‘Supply Deemed as supply Y Supply should be in course or furtherance of business, Focus on: ¥ The exception to the said rule is import of services is deemed as supply even if the same has been imported not in course/furtherance of business. 3. Supply without consideration: This includes all supplies made to a taxable or non-taxable person, even if the same is without consideration 1 These are specifically mentioned in Schedule | Q The following four cases, supplies made without consideration will be treated as supply: CA Inter | 38e(2nd Version) | Fast Track Material | GST Tl| MASTER MINDS = No.1 for CA/CMA & MEC/CEC A. Permanent Transfer / Disposal of Business Assets: Business Assets- Input tax credit availed T Deemed Supply Permanently transferred or disposed Focus on: ‘+ Any kind of disposal or transfer of business assets made by an entity on permanent basis even though without consideration qualifies as supply. ‘* This provision would apply only if input tax credit has been availed on such assets ‘+ Ifany business asset is transferred from holding to subsidiary company for no consideration, it will be still treated as supply. B. Supply between related person or distinct persons: Cm) Ss ac ooniecseest C=) In course or furtherance of business Aiddng passa Focus on: a > Supply of goods or services or both betwWeervfelated persons or between distinct persons as specified in section 25, will qualify as supply provided it is made in the course or furtherance of business. ‘Same Family]. | Employer & ‘Sole Agent/ Distributor’ ‘members Employee Concessionaire One of them controls the other Third person controls both Third person holds more than or equal to 25% voting of both ‘Such persons together controls a third person Related Person: oooo Officers or Directors of another business Legally recognised Partners Distinct Persons: + A person who is obtained or required to obtain more than one registration for his premises located at one or more state(s) or Union(s) [i.e. union territory] shall be treated as distinct or ‘separate persons in respect of his/ her/ its premises. ‘The transactions between different locations of same legal entity will qualify as ‘supply’ CA Inter | 38e(2nd Version) | Fast Track Material | GST98851 25025 / 26 www.mastermindsindia.com Pradeep Lt Karnataka Distinct Persons Stock Transfers Deemed ‘Supply Focus on: ‘+ The employer and employee are related persons. + However the services provided by an employee to his employer in the course of employment shall not be treated as a supply of service In the course of employment, supply by the employer to the employee in terms of contractual agreement entered into between the employer and the employee, will not be subjected to GST. + As per Sch.I gifts of value more than Rs.50,000 made without consideration are subject to GST, when made in the course or furtherance of business. C. Supply between Principal & Agent: ‘Supply of Goods, by Principal to Agent or Vice vers@shall be considered as supply. ‘Supplies goods Received goods on behalf of Principal Focus on: ¥ Supply of Goods, by Principal to Agent and vice versa shall be a supply of goods irrespective of consideration, Supply of services shall not be covered here. D. Importation of services (without consideration): Import of services by taxable person from related person or from any of his other establishments ‘outside India, in the course or furtherance of business. H.O Provided Services HO (USA) In the Course or furtherance of business CA Inter | 38e(2nd Version) | Fast Track Material | GST Zl| MASTER MINDS = No.1 for CA/CMA & MEC/CEC Taxability of Import of Services With Consideration ety ‘Without Consideration In the course or furtherance of Not in the course or | Related person/distinct Other Cases furtherance of business | person and in the course business or furtherance of business [ Taxable Taxable Taxable Non-taxable 4. Activities to be treated as supply of goods or services-Schedule II: 1. TRANSFER SoG SoS ¥ Any transfer of the title in goods Y Any transfer of title in goods under an agreement which stipulates that property in goods shall pass at a future date upon payment of full consideration. v Any transfer of right in goods or of undivided share in goods without the transfer of title. 2. LAND AND BUILDING 3. TREATMENT OR PROCESS ‘SoS SoS ‘Any lease, tenancy, easement, license to occupy land. Any lease or letting out of the building including a commercial, industrial or residential complex for business or commerce, eithienwholly or partly. Y Any treatmenfor Process which is applied to other person's, goods. 7 << ‘4. TRANSFER OF BUSINESS ASSETS ‘SoG ¥ When goods forming part of the assets of a business are transferred or disposed of whether or not for a consideration. ‘SoS When a person carrying on a business starts using constitutes the predominant element of a composite supply. CA Inter | 38e(2nd Version) | Fast Track Material | GST| MASTER MINDS = No.1 for CA/CMA & MEC/CEC Determinations of the services are bundled in the ordinary course of business: ‘Majority of service providers in a particular area of business provides similar bundle af services, ‘There is a single price or the customer pays the same amount } ‘The different elements are integral to one overall supply } Various services in a bundle of services (The elements are normally advertised as a package) Perception of consumer or the service receiver } THE END CA Inter | 38e(2nd Version) | Fast Track Material | GST98851 25025 / 26 www mastermindsindia.com 3. LEVY AND COLLECTION OF GST +The very basis for the charge of tax in any taxing statute is the taxable event ‘+ The taxable event under GST is Supply CGST/ SGST/ UTGST Intra-state Supplies inter-state Supplies ‘+ Intra (within) - state Supply Location of the supplier Place of supplier Falls in the same State or Union territory ‘* Inter (between) - state Supply Includes Non-Taxable Supply ‘Supply of any goods or services or both; Attracts nil rate of tax “Wholly exempt from tax under section 11/Section 6 Includes Y Supplies charged to tax under reverse charge ¥ Transactions in securities Y Sale of land and sale of building when: entire consideration is received _post| completion certificate. Supply of services having place of supply in Nepal or Bhutan v Services by way of accepting deposits, extending loans or advances ¥ Transportation of goods by a vessel from the customs station of clearance in India to a place outside India CA Inter | 38e(2nd Version) | Fast Track Material | GST Tm| MASTER MINDS = No.1 for CA/CMA & MEC/CEC Aggregate turnover —__ All taxable supplies excluding reverse charge Exempt supplies. State te Union tersitory tax, Having same PAN, computed on all India basis Bulpnioxa integrated tax and cess Recipient Situation “Ina case where - (Consideration is payable for the supply of] goods/ services! both No consideration is payable for the supply of goods No consideration is payable for the supply of a service CGST Act, 2017: Person who is liable to pay that consideration (The person to whom — © The goods are delivered or © Made available or + Possession or use of the goods is given or made available The person to whom the service is rendered + The Act extends to whole of India including Jammu & Kashmir. ‘SGST Act, 2017: ‘+ State GST law of the respective State or Union Territory with State Legislature. ‘* State includes a union territory with legislature (Delhi and Puducherry). ‘+ Extends to whole of that State/Union Territory. UTGST Act, 2017: ‘+ Union territory without state legislature shall be treated as separate union territory ‘+ Union territory means the territory of — ‘Andaman and Nicobar Islands Lakshadweep Dadra and Nagar Haveli Daman and Diu Chandigarh Other territory, SARK K KS CA Inter | 38e(2nd Version) | Fast Track Material | GST Tl98851 25025 / 26 www.mastermindsindia.com Levy & Collection of CGST: Section 9(1) Levied on: All Intra-State Supplies of goods/ services/ both Collected and paid by: Taxable person ‘Supply outside purview of tax: Alcoholic liquor for human’ ‘consumption ‘Value for levy: Transaction value under Sec. 15 of the Act Rates: Rates as notified by Government, Max. rate will be 20% In respect of goods 0, 0.125, 1.5, 2.5, 6, 9, 14 In respect of services 25,6, 9,14 Note: S.G/ UT also levies similar rate of GST. Section 9(2): On the following products, tax could be let recommendation of council: ‘rom a date to be notified by the C.G on the Petroleum High speed diesel] { Motor spirt (Petro) Natural gas] {~ Aviation turbine crude fuel Reverse charge Section 9(384): ‘+ Supply of goods or services or both, notified by the Government on the recommendations of the GST Council + Taxable supplies by an unregistered supplier to a registered person + Focus on: Y The burden to pay GST is on the recipient. Y But the compliance requirements have been shifted from supplier to recipient. Y No GST shall be payable, if the aggregate of supplies received from all the suppliers not exceeds Rs.5000 in a day. Y In case of supplies made by unregistered persons to registered persons delayed til 1st July 2018, CA Inter | 38e(2nd Version) | Fast Track Material | GST ‘Emfor CA/CMA & MEC/CEC Electronic commerce operator services * Any person who owns operates or manages digital or electronic facility or platform for electronic commerce. ‘+ The Government may notify specific categories of services the tax on supplies of which shall be paid by electronic commerce operator (ECO) as if such services are supplied through it. ‘+ The following are the services notified: “Services provided by way of passenger transportation by — Radio taxi Motor cab Maxi cab Motor Cycle guaa + Services by way of providing accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes, except where the person supplying such service through electronic commerce operator is liable for registration. + Services by way of providing house-keeping, such as plumbing, carpentering etc., except Where the person supplying such service through electronic commerce operator is liable for registration. Person liable to pay GST when services supplied througiyan ECO: If the ECO is located in taxable SS Person liable to tax is the Cea Ym ae Person liable to pay tax is the person representing the ECO If the ECO has neither the physical presence nor any representation in the taxable territory Person liable to pay is the person appointed by the ECO for the purpose of paying the tax Goods imported into India [neo CGST and SGST/UTGST payable 0 IGST shall be levied and collected on import of goods as per the section 3 of the Custom Tariff Act, 1975. List of services taxable under reverse charge (Services where tax is payable by recipient): Category of Supply of Services Supplier Recipient 1. Supply of services by GTA GTA . Any registered factory + Any registered society ‘= Any co-operative society * Any registered person under any of the GST Acts CA Inter | 38e(2nd Version) | Fast Track Material | GST ‘SE98851 25025 / 26 www.mastermindsindia.com + Any Body corporate established, by or under any law; or * Partnership firm —_ including association of persons. * Casual taxable person 2. Services supplied by way of| An individual representational services | advocate including a before any court, tribunal or| senior advocate or authority, directly or indirectly | firm of advocates Any business entity located in the taxable territory 3. Legal services ‘An arbitral tribunal ‘Any business entity located in the taxable territory Y Renting of immovable property to unregistered entity and Y Services by Department of Posts(Speed post, Express parcel post, Life insurance, Agency services); ¥ Services in relation to an aircraft or a vessel; ¥ Transport of goods or passengers. 4. Sponsorship services ‘Any person ‘Any Body corporate or partnership firm (including LLP) located in the taxable territory. 5. Services excluding — CG,SG.UT or LA | Any business entity located in the taxable territory 6. Services supplied by a director 7. Insurance agent services \\gorporate ‘An insurance agent The company or body corporate located in the taxable territory ‘Any person carrying on insurance business, located in the taxable territory, 8. Recovery agent services A recovery agent ‘A banking company or a financial institution or a Non-banking financial company, located in the taxable territory. 9. Supply of services by way of | Author or music. Publisher, music company, producer Committee transfer or permitting the use composer, or the like, located in the taxable ‘or enjoyment of a copyright | photographer, artist, | territory. relating to original literary, or the like dramatic, musical or artistic works. 10. Overseeing Committee Members of RBI Services Overseeing COMPOSITION SCHEME OF LEVY: ‘+ It is an option for specified categories of small taxpayers to pay GST at a very low rate on the basis of tumover. + The advantages of composition scheme: CA Inter | 38e(2nd Version) | Fast Track Material | GST ‘EHfor CA/CMA & MEC/CEC Simple calculation of tax based on tumover Low rate of tax ‘Simple quarterly return Hassel free simple procedures for taxpayers Advantages jon Levy: lity for Compo: ‘+ Initially, Sec.10 of the CGST Act specifies the threshold limit for small tax payers as Rs.50 Lakhs ‘+ As of now, this threshold limit has now been fixed at Rs.100 lakhs (including the states Uttarkhand, Jammu & Kashmir) ‘+ The threshold limit has been stringently limited to Rs. 75 lakhs for Special Category states. ‘Arunachal Pradesh, Assam, Himachal Pradesh, Sikkim, Tripura, Manipur, Meghalaya Nagaland, Mizoram Threshold Limit _}) [Value of all outward supplies a CGSsT ‘Taxable person having the same| oO SGST PAN, computed on all india basis: 9 uTGsT 1 Taxable supplies 9 IGsT 1 Exempt supplies © Cess GF Value of inward supply on Exports 1 Inter-State Supplies which tax is payable on| reverse charge basis Composition Scheme- Procedure Procedure New registration under GST Registered person opting for composition levy [+ How to exercise option: Intimation in prescribed form + Effective date: Beginning of the financial year How to exercise option: Intimation in the registration form "Effective date: From the effective date of registration Copyrights Reserved To MASTER MINDS, Guntur CA Inter | 38e(2nd Version) | Fast Track Material | GST98851 25025 / 26 www.mastermindsindia.com Conditions Non eligibility ‘Aggregate Tumover<100 Manufacturer: Manufacture of notified goods lakhs / 75 Lakhs* CGST-0.5%+SGST-0.5% | | (ice-cream, pan masala and Total -1% on T/O in the tobacco) State or UT Tax is not collected from recipient of supply ‘Supplier of services other than Trader ‘supplier of food articles CGST-0.5%+SGST-0.5% Total -1% on Taxable T/O | [A casual taxable person or a in the State or UT non-resident taxable person Input tax credit not availed ay tax under section 9(3)/9(4) on inward supplies Restaurant Service ‘Supply of goods not lable to Provider tax CGST-2.5%+SGST-2.5% | ———— ay tax under section 9(4) for Total -5% on Taxable T/O goods held in stock by him, in the State or UT Person supplying goods purchased from an unregistered through an electronic ‘supplier ‘commerce operator Multiple registered persons having same PAN unless all opt to pay tax under ‘composition levy Not make inter-state outward ‘supplies of goods Use the words — © "Composition taxable person, not} ‘Actionable claims other than eligible to collect tax on supplies” on the § lottery, betting& gambling bills [ ‘+ "Composition taxable person” displayed at prominent places ‘Transactions undertaken by CGISGILA in which they are engaged as public authorities * Speci Focus on: Category States + The composition scheme shall be valid as long as the person is satisfying the prescribed Conditions and eligibility criteria. ‘+ Required to file intimation for withdrawal from the scheme within 7 days or 30 days ‘+ The Composition scheme shall be adopted uniformly by all the registered persons having the same PAN ‘+ Supplier cannot collect tax from the recipient ‘+ Taxable person opting for the composition scheme is not entitled to any credit of input tax Integrated Goods and Services Tax Act, 2017 + Extends to the whole of India including Jammu & Kashmir ‘+ Levied on all Inter-State Supplies of goods! services’ both except Alcoholic liquor for human consumption ‘+ Rates as notified by Government, Max.rate will be 40% CA Inter | 38e(2nd Version) | Fast Track Material | GST ‘SmNo. for CA/CMA & MEC/CEC ‘+ Levied and collected on import of goods as per the section 3 of the Custom Tariff Act, 1975 ‘+ Levied as additional duty of customs in addition to basic customs duty under the Customs Tariff Act, 1975. ‘* Taxable person should collect and pay tax on transaction value determined as per Sec. 15 of the Act. * Rates: In respect of goods In respect of services 0.25, 3, 5, 12, 18, 28 0,5, 12, 18, 28 Note: S.G/ UT also levies similar rate of GST. i) Onthe following products, tax could be levied from a date to be notified by the CG © Petroleum crude * Natural gas and + High speed diesel * Aviation turbine fuel ‘+ Motor spirit (Petrol) ii) Reverse charge shall be applicable in respect of, ¥ Notified supplies IGST shall be paid by the Recipient In addition to the services mentionedifiThe CGST Act, 2017, for the following services entire Nature of the Supply of Service Supplier Recipient 1. Any service supplied by any person | Any person located in who is located in a non-taxable | a non-taxable territory territory to any person other than non-taxable online recipient ‘Any person located in the taxable territory other than non-taxable online recipient 2. Services supplied by a person | A person located in a located in nontaxable territory by way | non-taxable territory of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India Importer THE END CA Inter | 38e(2nd Version) | Fast Track Material | GST98851 25025 / 26 www.master com 5. TIME & VALUE OF SUPPLY PARTI — TIME OF SUPPLY ‘+ Time of supply deals with Point in time when the liability to pay tax arises. ‘+ The point of taxation enables us to determine the rate of tax, value and due dates for payment of taxes. + The CGST Act provides separate provisions for time of supply for goods and services vide sections 12 and 13 of CGST Act (section 20 of the IGST Act) ‘+ Provisions relating to ‘time of supply’ provide answer to all such questions that arise on the timing of the liability to pay CGST and SGST/UTGST (Intra-state supply) and IGST(Inter-state supply) as time of supply fixes the point of time when the liability to pay tax arises. * Concept of Time of Supply of Goods/Services: * Supply of goods/services on which the supplier is liable to pay tax(Forward Charge) * Receipt of goods/services that are taxable under reverse charge(Reverse Charge) ‘Supply of vouchers that can be exchangeable for goods/used to pay for services Residual Cases Enhancement in the value on account of interest /late fee etc. for delayed payment «Time of Supply: [Forward ][ Reverse |[ Vouchers ][~ Residual |{~ Forward] {Reverse | ("Vouchers ]{ _Resiauat | chawge |! chee ||18e0:12 4) ||cases 'Sec.12|| charge || Charge | |{Se0.13(4)]| | Cases {See 13] | tSec.12 @ |] [sec. 12. || (5) &(6_}| fSec, 13 (2)1 | | 1Sec.13 (3)] 6) 816) Copyrights Reserved ‘To MASTER MINDS, Guntur CA Inter | 38e(2nd Version) | Fast Track Material | GST Em| MASTER MINDS = No.1 for CA/CMA & MEC/CEC Reverse charge means the liability to pay tax by the recipient of supply of goods or services or both instead of the supplier of such goods or services or both, —r( Due date of invoice (Sec.31)* Forward Charge Date of Invoice} ————— L+{~ Actual date of invoice st sanayoiuna| >| __ Date of receipt of goods 3 Reverse Charge »{ Date of payment (N-1) A 3 L+4{ 31st day from supplier’ invoice Ifthe above events are unascertainable, TOS= Date of entry of good in books of account of recipient of goods If the supply is identifiable at that point Date of issue of ee ee Due date of periodical retum fall the above dosnot work required to be filed (or) for asituation In any other case, the date on Which the taxis paid Date on which the supplier receives such addition in value Due date of invoice (Sec.31) TIME OF SUPPLY OF GOODS |_[ Residual Case Addition in value by way of interest, late fee/penalty for delayed payment of consideration for goods late of invoice (Sec.31 (_Generarcase_} (_Gontncous Supaiy) (_Saleonapprovat_ Before or at the time of supply Does not involve movement of goods Before or at the time of issuance of periodical slatementireceipt of, periodical payment Involves movement of goods Before or at the time of delivery of goods or making available thereof to the recipient months fom the dao of vemovel CA Inter | 38e(2nd Version) | Fast Track Material | GST 27TIME OF SUPPLY OF SERVICES limit specified W/S 317 98851 25025 / 26 www.mastermind: Date of issue of invoice Invoice has been {sgued within the time com sae8 St JNSUONUN Ifthe above events are unascertainable, TOS = Date of receipt of ‘services in the books of account ofthe recipient of supply Invoice has not been issued within the time limit specified WS 31° J9A9uOIUNA Date of payment (N-1) xi Non-Associated gs Enterprises a? 61st day from supplier's og invoice Date of payment (N-1) os Associated ez Enorpises "| (Gale oteniyofseracoom] | Se nooks ascoonttthe |_| 8g recolee of sph the abv avons ar unascaranable, TOS = Daa of uy of covicos books of acto te econ of 8p if the supply is identifiable at that point Date sue of Santer Vouchers |_| Fall the above do not work required to be filed (or) fora situation Residual Case the tax is paid ‘Addition in value by way of interest, late = ic ie on which the supplier receives feeipenalty for delayed payment of ‘such addition in value ‘Due date of periodical return Inany other case, the date on whict Copyrights Reserved ‘To MASTER MINDS, Guntur CA Inter | 38e(2nd Version) | Fast Track Material | GSTNo.1 for CA/CMA & MEC/CEC Due date of invoice (Sec.31) Case Continuous Supply + 4 y + £ Either before the In case of insurance Due date of — ]{ Due date of payment |[Payment is linked to provision of service or || companies / banking Payment is 's not ascertainable ||the completion of an’ within 30 days from the || companies and financial | | ascertainable event provision of service institutions including NBFCs, time period of 45 days is allowed instead of 30 days to raise the invoice ‘On or before the date of ‘On or before the due date of payment Before or at the time when the completion of that event supplier of service receives the payment Note-1: Date of Payment- Date of Payment shall be the earlier of the following two dates: (i) Date on which the payment is recorded in the books of accounts of the recipient of goods/services; or (ii) Date on which the payment is debited to the recipient's bak account. Note-2: Date of receipt of payment- Date of receipt of payment shall be the earlier of the following two dates’ SS Focus on: "In case of part payment was made in the form of an advance and the issuance of an invoice was made, then the supply shall be deemed to have been made to the extent of the amount so paid or covered by the invoice but not the full value of supply. "If payment received is up to Rs.1,000 in excess of the value of the goods/services invoiced, the supplier can choose to take the date of invoice issued with respect to such excess amount as the time of supply of goods/services for such excess value. "No GST is payable on advance received and on such advances GST is payable as and when the invoice is issued or to be issued, whichever is earlier. "Where the payment is received in installments, the time of supply shall be determined separately for each installment Copyrights Reserved Ds To MASTER Guntur CA Inter | 38e(2nd Version) | Fast Track Material | GST EE98851 25025 / 26 www.master PART Il - VALUE OF SUPPLY ‘+ GSTis levied as a percentage of the value of supply, whether of goods or of services. com ‘+ Therefore it becomes important to know how to arrive at the value on which tax is to be paid + Section 15 of the CGST Act supplemented with the Chapter IV of CGST Rules, deals with determination of Value of Supply. + Section 15: ‘Sec. 15(1) - Transaction value: Taxable value= Transaction value(After Consideration of Inclusions[Sec.15(2)] and Exclusions[Sec.15(3)]) Price is the sole consideration for the supply ta Sec. 15(2) & (3) — Inclusions and Exclusions in transaction value Sec. 15(4) > Where the taxable value of supply cannot be determined as per section 15(1) of CGST Act, the same needs to be determined in accordance with CGST Rules. Sec. 15(5) -» Empowers the Government to notify any supply,.the value of which would need to be determined in accordance with CGST Rules Price is the sole consideration+ unrelated persons+ Not notified supply U/S. 15(5) by Govt S Value of supply can be Value of supply cannot be determined in accordance ldetermined as per section 15(1) with CGST Rules, ‘one aigexe, Transaction value [After Consideration of Sec.15 (2) & (3)] © Section 15(2) &(3): ‘Taxable Value as per Sec.15 (1) = Transaction value [After Consideration of Sec.15 (2) & (2)] Exclusions (Sec.15 (3)] Inclusions [Sec.18 (2)] Taxes other than] (Payments made] { Incidental] [Interest, Late fee] [” Subsidies GST to third parties |] Expenses etc. froma by the recipient person other than CG / SG of supplies CA Inter | 38e(2nd Version) | Fast Track Material | GST Smfor CA/CMA & MEC/CEC * Section 15(2) - Inclusion: A. Taxes other than GST [Sec.15 (2) (a)]: Transaction value as per Sec. 15 (1) Any type of tax that is levied under GST law Shall not be considered B. Payments made to third parties [Sec.15 (2) (b)]: ‘Should include the following amounts- ¥ A supplier may need to incur various expenses out of his own pocket, in order to make a particular supply of goods/services. Further this amount charged from recipient. Y A customer makes direct payment of some of such liabilities of the supplier to the third parties (Even though does not include this amount in the bill) C. Incidental Expenses [Sec.15 (2) (c)]: Incidental expenses up to the point of delivery of goods/ for supply of services, if charged to recipient. Any other taxes, cesses, fees ete. Shall be considered D. Interest, Late fee etc. [Sec.15 (2) (d)]: Not only the base price but also the charges for delay in payment. E, Subsidies [Sec.15 (2) (e)]: Subsidy [QS oc — (Given byine case] { Given by a person or entity other than CG/ISG Should not be included ‘Should be included * Section 15(3)-Exclusions(Discounts): Before/ at the time of the supply After the supply = In terms of an agreement that| existed at the time of supply; = Can be linked to invoices and * Reversed the proportionate input| tax credit. ‘Shown properly in the invoice Not includable Includable Not includable Includable CA Inter | 38e(2nd Version) | Fast Track Material | GST Sm98851 25025 / 26 www.mastermindsindia.com Value of supply (Lottery, Betting, Gambling and Horse Racin: ‘Supply of lottery run by SG. ‘Supply of lottery authorized by SG ‘Supply of actionable claim (betting, gambling or horse racing) Face Value of the ticket or Price | [Face Value of the ticket or Price as, as notified by organizing state; notified by organizing state; whichever is higherx1 00/112 whichever is higherxt00/128 THE END 100% of the face value of bet or the amount paid into the tolalisator CA Inter | 38e(2nd Version) | Fast Track Material | GST| MASTER MINDS = No.1 for CA/CMA & MEC/CEC 6. INPUT TAX CREDIT Input tax credit will be given to avoid the cascading effect (double impact) of taxes. Earlier, State VAT taxes will be governed by the respective state laws, allowed ITC of VAT on inputs and capital goods for transactions within the state, but not on inputs and capital goods coming in the state from outside the state on which CST was paid. ‘+ Introduction of GST at both central and state levels has integrated taxes on goods/services for the purpose of set-off relief and ensured that the cascading effects prevalent under the earlier regime get removed. ‘+ GST legislature allows seamless credit on goods and services across the entire supply chain. + Definitions: ‘Types of Supplies Exempt] [Taabe | [ ZeroRated input supaly | | Suey | | Supply semees Reet |(Supyofgoows) 4 chapter || “GPleniese or” |[ Expacat | Supply ofpoods |" which s No2 Supply|| Botwhiehis || goods or [orssrvces rbot | coptaized in he levabletetax || semoesor | toa SEZ. | Books of account on | Developer Sez — [Unit Used or intended to be used in the ‘course or furtherance of business | + ITC may be availed on inward supplies (for inaking zero-rated supply. Therefore, ITC is available ‘on goods or services or both used\forSupplies made in the course of export or to a SEZ Developer/SEZ Unit. Y © Bligi — A registered person can claim ITC on inward supplies of goods! services! both used or intended to be used in the course or furtherance of business. + Goods or services or both which are used for both business and non-business purposes: ————_, Business Purpose Non-business Purpose eg 4 4 2 £ 5 i z E & 2 — Goods or services or both which are used for both Taxable (Including zero-rated supply) and Exempt supplies: Copyrights Reserved To MASTER MINDS, Guntur CA Inter | 38e(2nd Version) | Fast Track Material | GST98851 25025 / 26 Taxable supply (Including zero-rated supply) Exempt supply ITC ATTRIBUTABLE TO Availment of ITC Possession of tax Receipt of | | Tax has been paid to Filing of return paying document goods/services/both Govt ¥ ¥ t V_ Invoice’ Revised Invoice!) [The person taking the | Taxshould actually Debit note ITC must have receive waren eae lization of ITC by the Invoice issued by the on oie recipient (Reverse Charge) ¥ Document issued by Input Service Distributor Person taking the ITC must have filed his retum «Focus on: S — As per CGST Rules, the original copy issued by the supplier may preferably be kept for record to support the credit entry. + Goods delivered to a third party on the direction of registered person deemed to be received by the registered person. ITC available to registered person [Bill to Ship to Model}. — Incase the goods covered under an invoice are not received in a single consignment but are received in multiple lots / instalments, the ITC can be taken only upon receipt of the last lot / instalment. — If depreciation claimed on tax component, then ITC not allowed. No double benefits allowed * An optional scheme for Banking Company: Option 1 Avail Proportionate ie Option 2: Avail 50% of eligible ITC Remaining 50% ITC will lapse Restriction of 50% shall not apply to the tax paid on supplies made to| another registration within the same entity Y Option once exercised cannot be withdrawn during remaining part of the year. CA Inter | 38e(2nd Version) | Fast Track Material | GST ‘EH| MASTER MINDS = No.1 for CA/CMA & MEC/CEC ‘+ Payment for invoice to be made within 180 days: > In case the payment for an invoice was not made within 180 days of the date of issuance of invoice, then the ITC availed shall be reversed along with interest @ 18%. > The details of such supplies and corresponding credits thereon must be furnished in the GSTR 2 of the month immediately following such 180 days. > However, once the payment is made, the recipient will be entitled to avail the credit again without any time limit > Exceptions-Payment within 180 days does not apply in the following situations i) Supplies under Reverse Charge: Deemed supplies without consideration © Time limit for availing ITC: "ITC on invoices! Debit notes pertaining to a financial year can be availed any time til the due date of filing of the retum for the month of September of the succeeding financial year (i.e. 20" October) or the date of filing of the relevant annual return (i.e. 31° December), whichever is earlier. "The time limits stated above applies only in case of availment of credit for the first time. Such limits do not apply in case of re-availment of credit that had been reversed earlier. * Blocked credits: Generally, input tax credit is available on almost every ifput and input service used for supply of taxable goods or services except on goods! services/ batt specified below: Blocked credits Exception Motor vehicles and conveyances ~ | Motor vehicles and conveyances are used for- i) Transportation of goods; Further supply; Transportation of passengers; iv) Imparting training on driving/ flying/ navigating. Foods and beverages, outdoor catering, beauty | Used for making an outward taxable treatment, health services, cosmetic and plastic | supply of the same category or as an surgery element of a taxable composite or mixed supply. Inward supplies on which tax has been paid under the composition scheme - Goods and / or services used for personal consumption - Goods that are lost, stolen, destroyed, written off or - disposed of by way of gift or free samples Rent-a-cab, life insurance and health insurance i) The Government has made it obligatory for an employer to provide any of these services to his employees; ii) Used for making an outward taxable supply of the same category or as an element of a taxable composite or mixed supply. Membership of a club, health and fitness Centre - CA Inter | 38e(2nd Version) | Fast Track Material | GST ‘EH[ a I is N 98851 25025 / 26 www.mastermindsindia.com Works contract services for construction of an immovable property Works contract services received in connection with construction of an immovable property, used for- i) Further supply; ii) Plant and Machinery. Inward supplies received by a taxable person for construction of an immovable property on his own account even when such supplies are used in the course or furtherance of business Plant and Machinery Travel benefits to employees on vacation such as LTC or home travel concession Tax paid as a result of evasion of taxes, or upon detention of goods/conveyances in transit, or towards redemption of confiscated goods/conveyances Inward supplies received by a non-resident taxable person + Special circumstances enabling availing of credit: inputs as such nel for registration ¥ Inputs contaiet” in semi finished goods held in stock Y Inputs Sohiained in. finished goods Kel stock EE Voluntary ¢ {Gn the day immediately | egsraion preceding detest | registration | 2 UT J ; = ‘Onthe day immediately 2 preceding the date from é ‘which he becomes able 3 Inputs as such held in stock fo pay tax under regular g Inputs contained in semi ‘scheme 3 fished goods held in Stock 3 Inputs contained in finshed [esriipmetrinaee ‘On the day immediately ‘Registered person's: ‘apital go preceding the date from exempt supplies which such supply becoming taxable becomes taxable {TC claimed shal be veniied with the corresponding details furnished by the corresponding supplier Focus on: "ITC, in all the above cases, is to be avail supplier. Procedural Conditions: ‘On the day immediately preceding the date from ‘which he becomes fable ‘Stock s Sikkim ¢ g ELC) Ss Copyrights Reserved ‘To MASTER MINDS, Guntur u Uttarkhand CA Inter | 38e(2nd Version) | Fast Track Material | GST SE98851 25025 / 26 www.mastermindsindia.com Focus on: + Aggregate turnover to include total turnover of all branches with same PAN. ‘+ A person having place of business in different States, one branch in any of the Special Category States, then the limit for registration will be Rs. 10 lakh for all his branches, * Aggregate tumover to include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals. ‘+ Aperson is required to obtain registration with respect to his each place of business in India. ‘* Amalgamation’ Demerger by an order of High Court etc., the transferee is liable to be registered from the date on which ROC issues incorporation certificate. + Persons liable for compulsory registration: Persons making inter-State taxable supply Casual taxable person Person receiving supplies on which tax is payable by recipient on reverse charge basis, E-commerce Operators who are notified as liable for GST payment Non-resident taxable person : Persons who are required to deduct tax (TDS) A person who supplies on behalf of some other taxable person ‘Suppliers, who supply through an e-commerce operator E-commerce operators uonensi6a1 Auosindwoo Every person supplying online information and database access or retrieval services from a place outside India to a person in India other than a registered person Input Service Distributor Person/ class of persons notified by the CG/SG ‘+ Persons not liable for registration: Persons not liable for registration Person engaged exclusively in supply of wholly exempted supplies Person engaged exclusively in supply of non- taxable supplies Agriculturist to the extent of supply of produce out of cultivation of land Any other person as may be notified by the Govt. (See note) Note: Persons making only reverse charge supplies exempted from obtaining registration. CA Inter | 38e(2nd Version) | Fast Track Material | GST —No.1 for CA/CMA & MEC/CEC ime li Persons liable for registration or compulsory registration Casual taxable person or Non-resident taxable At least 5 days prior to the commencement of business Application for registration The date on which he becomes is submitted within 30 days liable for registration Application for registration is submitted atier 30 days >| The date of grant of registration Werticals in a State may obtain separate registration Within 30 days from the date on which he becomes liable areg enjoey Focus on: + A business entity having separate busine: for each of its business verticals. ‘+ Under GST, there is no concept of ceftalied registration as registration needs to be taken state- wise. Wy * A business entity having its branches in multiple states will have to take separate state-wise registration. ‘+ Aneentity can apply for single registration, provided that it declares one place as principal place of business and other as additional places of business. + If one of the business verticals of a taxable person is paying tax under normal levy, no other business vertical shall be granted registration to pay tax under composition levy. ‘+ If one of the business vertical registered separately becomes ineligible to pay tax under composition levy, all other business verticals would also become so ineligible. + Once a person get registered voluntarily, he was liable to pay GST irrespective of the fact that his aggregate T/O does not exceed Rs.20 lakh / 10 lakh. ‘+ PAN is mandatory to be eligible for grant of registration except in case of a Non-Resident Taxable Person, Copyrights Reserved To MASTER MINDS, Guntur CA Inter | 38e(2nd Version) | Fast Track Material | GST Aa |98851 25025 / 26 www.mastermindsindia.com * Business vertic: Business vertical { ‘A distinguishable component of an enterprise that is engaged in the supply of Individual goods or services ‘A group of related goods or services So Having different risks & returns that are different from others Distinct persons A person who has obtained! is required to obtain More than one registration, whether in {egistration in a State or Union territory in one or more State/ Union territory 4 > respect of an establishment and has an establishment in another State or Union territory + Unique Identification Number Specialized agencies of UNO, foreign embassies etc. are allowed refund of taxes paid by them, required to obtain a UIN from GST Portal ¥ For obtaining UIN, an online application has to be submitted. The UIN shall be granted within 3 days of filing of application. + Distinct persons: + Suo-moto registration: Y A proper officer finds that a person liable to registration under the Act has failed to apply for such registration, may register the said person on a temporary basis and issue an order in prescribed form, ¥ Such person so registered temporarily, shall Submits an application for registration; © Within 90 days from the date of grant of temporary registration or ‘© Within 30 days from the date of order of the appellant authority, in case if such person files an appeal CA Inter | 38e(2nd Version) | Fast Track Material | GST Zo| MASTER MINDS = No.1 for CA/CMA & MEC/CEC * Procedure for registration: Every person liable for registration& person seeking voluntary registration shall, apply for registration, by declaring PAN, mobile number, e-mail address, State/UT in Part A of FORM GST REG- 01 on GST Portal PAN, mobile number, e-mail address shall be validated through OTP. TRN is generated and communicated to the applicant Using TRN, the applicant shall submit application in Part B of application form, along with specified documents at Portal ‘An acknowledgement shall be issued to the applicant electronically. ‘Thereafter, application shall be forwarded to the proper officer Proper Officer examines the application and accompanying documents Incomplete/inaccurate [Grant registration certificate within 3} Issue notice within 3 working days seeking] working days (GST REG-06) clarification, information or documents Failed to be furnished Reject the application Not satisfied Grant registration certificate within 7 ‘working days (GST REG-06) Focus on: "In case of a casual taxable person TRN will be generated only after deposit of prescribed advance by the applicant. "The registration shall be deemed to have been approved in case if the proper officer fails to take any action within required time period "Every registered person shall display his registration certificate in a prominent location at his principal place of business as well as at every additional place of business. GSTIN shall be displayed on the name board of the applicant. * Registration shall be granted within 15 days of the date of physical verification, in case where there is a requirement for physical verification of the business premises by the proper officer. CA Inter | 38e(2nd Version) | Fast Track Material | GST As |