GST NOTES- STARGATE E-LEARNING PVT LTD.

CA MANOJ BATRA 1
Need of GST
PRESENT PROPOSED
Manufacture/ Sale / Service ED/VAT/CST/Octroi/ Service tax Supply of Goods/Service GST
Multiple Taxes Intra- State- CGST + SGST, Inter- state- IGST
Subsume- Multiplicity of Taxes
Import BCD/ Custom Cess/ CVD/ SP CVD- BCD + IGST
Service import- Service tax - IGST
Basis of Duty- Specific, Ad-valorem ( Tariff Value, MRP based, Basis of Duty- Advalorem ( Transaction Value)
Transaction Value), Production capacity, compounded levy scheme
Double Tax- IPR, Software, Food TREATED AS SERVICE OR GOODS
Cascading Effect Cascading effect mostly Removed
No Uniformity 29 VAT Law CGST/SGST- 197 Sections ( 27 CHAPTERS) + 5 Schedule
IGST- 24 SECTIONS ( 11 CHAPTERS)

Constitutional Validity
UNION LIST STATE LIST
Entry-82- Income Tax Entry 51- ED on Alcohlic Liquor, opium, Indian hemp & other
Narcotic drugs
Entry -83- custom duty Entry 53- Tax on cons. Or sale of Electricity
Entry- 84- Entry 54- . Taxes on the sale of petroleum crude, high speed diesel,
Duties of excise on the following goods manufactured or produced in motor spirit (commonly known as petrol), natural gas, aviation turbine
India, namely: (a) petroleum crude; (b) high speed diesel; (c) fuel and alcoholic liquor for human consumption, but not including sale in
motor spirit (commonly known as petrol); (d) natural gas; (e) the course of inter-State trade or commerce or sale in the course of
aviation turbine fuel; and (f) tobacco and tobacco products."; international trade or commerce of such goods.";
Entry 92 sale or pur of Newspaper & Advertisement ENTRY 52 - Taxes on entry of goods into a local area for consumption,
published therein use or sale therein. ( Octroi, Entry Tax)
Entry 92 A CST on inter-state Sale ENTRY -55- Taxes on advertisement
Entry 92 B- Tax on consignment of goods if interstate slae 62 - Taxes on luxuries, including taxes on entertainments, amusements,
betting and gambling
"62. Taxes on entertainments and amusements to the extent levied and
collected by a Panchayat or a Municipality
Entry 92 C- Service Tax Entry 59 Toll
Entry 97 Residuary entry Entry 62- entertainment
Total 97 entries Total 66 entries
GST NOTES- STARGATE E-LEARNING PVT LTD. CA MANOJ BATRA 2

101th Constitutional Amendment Act Total 20 Sections

GST Council provisions notified wef 12.09.2016 GST- Govt notifies applicability of 19 Section from 16.09.2016

19. Notwithstanding anything in this Act, any provision of any law relating to tax on goods or services or on both in force in any State
immediately before the commencement of this Act, which is inconsistent with the provisions of the Constitution as amended by this Act
shall continue to be in force until amended or repealed by a competent Legislature or other competent authority or until expiration of 1
year from such commencement, whichever is earlier.

"246A. (1) Notwithstanding anything contained in articles 246 and 254, Parliament, and, subject to clause (2), the Legislature of every
State, have power to make laws with respect to goods and services tax imposed by the Union or by such State. (2) 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.
Explanation.The provisions of this article, shall, in respect of goods and services tax referred to in clause (5) of article 279A, take effect
from the date recommended by the Goods and Services Tax Council.

TAXES NOT SUBSUMED IN GST

EXCLUDED PRODUCT EXCLUDED DUTY
Alcohlic Liquor for HC (1) Entertainment Tax levied by Local Security Transaction Tax
Authority/Panchayat Toll Tax
Petroleum, Crude, HSD, Motor Spirit, (2) BCD, Anti-dumping, Safeguard duty Property tax
Natural Gas, ATF (3) Stamp Duty Road & Passenger Tax
(4) Electricity Duty

TAXES SUBSUMED IN GST

Goods Service
Manufacture Excise Duty Service Tax
Additional Excise Duty, ED ON Medical & Toilet Product
CENTRAL & STATE CESSES
Sale/ Purchase Sales Tax/ VAT/CST/Purchase tax Luxury Tax- Accomodation in Banquet
Entry into other state Entry Tax/Octroi hall/Hotel which includes
Tax on lottery, betting , Gambling Use of goods/Service/Property for
Import enjoyment or comfort or pleasure by any
CVD = ED customer extraordinary
Sp. CVD = VAT Entertainment Tax on Movie ticket
GST NOTES- STARGATE E-LEARNING PVT LTD. CA MANOJ BATRA 3

W
Present Position- Goods Present Position- Service
M D R C SP SR
MFR- Excise Duty Sale Sale SERVICE TAX
Sale- Local- VAT Local- VAT
Local VAT Inter-state- CST
Inter-state- CST
Octroi

Proposed Position- Goods = Supply ( Branch Transfer Also) Proposed - Service

M D R C
Intra- state Supply Intra- state Supply Intra- state Supply SP SR
CGST CGST CGST Intra- state Supply
SGST SGST SGST CGST
SGST
Inter- state Supply Inter- state Supply Inter- state Supply
IGST IGST IGST

Proposed- Tobacco, Pan Masala, Luxury Cars, Aerated Beverages

M D R C
Intra- state Supply Intra- state Supply Intra- state Supply
CGST CGST CGST
SGST SGST SGST
GST Comp. Cess GST Comp. Cess GST Comp. Cess
Inter- state Supply Inter- state Supply
IGST IGST
GST Comp. Cess GST Comp. Cess
Present Proposed
Import Import
BCD BCD
CVD IGST
Custom cess EC & SHEC
Sp. CVD
GST NOTES- STARGATE E-LEARNING PVT LTD. CA MANOJ BATRA 4
R
Present Position- Goods Present Position- Service
M D R C SP SR
Value 1,00,000 Cost 1,12,000 Cost 1,23,200 Cost to Value 1,00,000
MFR- ED- 12% 12000 Profit 11,200 Profit 24,640 Consumer- SERVICE TAX 15% 15,000
Sale- 1,12,000 Sale 1,23,200 Sale 1,47,840 166320 1,15,000
Local VAT-12.5% 14,000 Local- VAT 15,400 Local- VAT 18,480
Inter-state- CST Inter-state- CST
Octroi

Proposed Position- Goods = Supply ( Branch Transfer Also) Proposed - Service

M D R C
Value 1,00,000 Value 1,00,000 Cost 1,11,200 Cost to SP SR
Intra- state Supply Profit 11,200 Profit 24,640 Consumer- Value 1,00,000
CGST -9% 9,000 Sale 1,11,200 Sale 1,35,840 160291.20 Intra- state Supply
SGST- 9% 9,000 Intra- state Supply Intra- state CGST 9% 9,000
CGST- 9% 9000 Supply SGST- 9% 9,000
SGST 9% 9000 CGST-9% 12,225.6 1,18,000
SGST-9% 12,225.6
Inter- state Supply Inter- state Supply Inter- state Supply
IGST 18,000 IGST 18,000 IGST 18,000

Present Proposed PRESENT PROPOSED

Value 1,00,000 Value 1,00,000 Value 1,00,000 Value 1,00,000
Import Import s. Tax 15% 15,000 IGST 18% 18,000
BCD- 10% 10,000 BCD- 10% 10,000 1,15,000 1,18,000
1,10,000 1,10,000
CVD- 12.5% 13,750 IGST 18% 19800
Custom cess EC & SHEC 712.50 1,29,800
1,24,462.50
Sp. CVD 4% 4,978.5
1,29,441.00
GST NOTES- STARGATE E-LEARNING PVT LTD. CA MANOJ BATRA
ROADMAP OF GST SEC 8
Except
(1) Alcoholic Liquor
Rate as per Sch. Not exceeding 14% (2) Petroleum
Product
(Recommended by GST council)
(3) Electricity
5
Note- CG/SG specify category of service
GST paid by Electronic Commerce operator
Note- CG/SG specify category of supplies
GST paid by Person Receiving
Goods/Service

CGST/SGST/IGST On intra- state Inter- state Supply Of goods/ service Paid by Taxable person
CGST + SGST IGST Means a person
Location of Location of Regd./ Required to by Regd in sch- V
Supplier and Supplier and
If Bus. In Special If Business other
Place of Supply Place of Supply
Category & Hilly than SCS
in Same state in different state
Areas (SCS)

Aggregate T.O Aggregate T.O

>10 L >20 L
States - Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and
Uttarakhand
EXEMPT
ISSUE OF INVOICE VALUE

When liability to Pay GST Arise

Determine Time of Supply
- Of goods
- Of service
Determine Aggregate T.O for Tax Period STEP-1 Calculate Output tax 3 Type of Ledger
Under Step- 2 calculate Input Tax Credit 1. Tax Liab Ledger
- CGST - CGST/SGST/IGST 2. Tax Credit Ledger
- SGST (Tax Credit Ledger) 3. Cash Credit Ledger
- IGST Step-3- Calculate net Tax Payable to Govt (Cash
Credit Ledger)
GST NOTES- STARGATE E-LEARNING PVT LTD. CA MANOJ BATRA 6

SEC 3. Meaning and scope of supply

(1) Supply includes
(a) all forms of supply of goods and/or services such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to
be made for a consideration by a person in the course or furtherance of business,
(b) importation of services, for a consideration whether or not in the course or furtherance of business, and
(c) a supply specified in Schedule I, made or agreed to be made without a consideration.
(2) Schedule II, in respect of matters mentioned therein, shall apply for determining what is, or is to be treated as a supply of goods or a
supply of services.
(3) Notwithstanding anything contained in sub-section (1),
(a) activities or transactions specified in schedule III; or
(b) activities or transactions undertaken by the Central Government, a State Government or any local authority in which they are engaged
as public authorities as specified in Schedule IV, shall be treated neither as a supply of goods nor a supply of services.
(4) Subject to sub-section (2) and sub-section (3), the Central or a State Government may, upon recommendation of the Council, specify, by
notification, the transactions that are to be treated as
(a) a supply of goods and not as a supply of services; or
(b) a supply of services and not as a supply of goods; or
(c) neither a supply of goods nor a supply of services.
(5) The tax liability on a composite or a mixed supply shall be determined in the following manner
(a) a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal
supply;
(b) a mixed supply comprising two or more supplies shall be treated as supply of that particular supply which attracts the highest rate of
tax.

SEC 2(49) goods means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass
and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply;

SEC 2(92) services means anything other than goods;

Explanation 1.- Services include transactions in money but does not include money and securities;
Explanation 2.- Services does not include transaction in money other than an activity relating to the use of money or its conversion by cash or by
any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is
charged.
Related Person

SEC 2(84) persons shall be deemed to be related persons if only -

(a) they are officers or directors of one another's businesses;
(b) they are legally recognized partners in business;
GST NOTES- STARGATE E-LEARNING PVT LTD. CA MANOJ BATRA 7
(c) they are employer and employee;
(d) any person directly or indirectly owns, controls or holds 25% or more of the outstanding voting stock or shares of both of them;
(e) one of them directly or indirectly controls the other;
(f) both of them are directly or indirectly controlled by a third person;
(g) together they directly or indirectly control a third person; or
(h) they are members of the same family;
Explanation I. - The term "person" also includes legal persons.
Explanation II. - Persons who are associated in the business of one another in that one is the sole agent or sole distributor or sole
concessionaire, howsoever described, of the other, shall be deemed to be related.

business vertical means a distinguishable component of an enterprise that is engaged in supplying an individual product or service or a
group of related products or services and that is subject to risks and returns that are different from those of other business verticals;
Explanation: Factors that should be considered in determining whether products or services are related include:
(a) the nature of the products or services;
(b) the nature of the production processes;
(c) the type or class of customers for the products or services;
(d) the methods used to distribute the products or provide the services; and
(e) if applicable, the nature of the regulatory environment, for example, banking, insurance, or public utilities.

Sec 2(28) consideration in relation to the supply of goods or services includes

(a) any payment made or to be made, whether in money or otherwise, in respect of, in response to, or for the inducement of, the supply
of goods or services, whether by the recipient or by any other person but shall not include any subsidy given by CG or SG;
(b) the monetary value of any act or forbearance, Whether Or Not Voluntary, in respect of, in response to, or for the inducement of, the
supply of goods or services, whether by the recipient or by any other person but shall not include any subsidy given by the Central
Government or a State Government:
( e.g Non Supply of goods or not timely delivery- Liquidated Damages/Penalty imposed- Monetary Value of Forbearance
Pre- Payment of Loan taken for 5 years (Penalty for early termination) Monetary value of Any Act
PROVIDED that a deposit, whether refundable or not, given in respect of the supply of goods or services shall not be considered as payment
made for the supply unless the supplier applies the deposit as consideration for the supply;
e.g- security deposit for telephone connection- No GST, but when Security deposit adjusted with 1st Bill- GST
Sec 2(11) import of service means the supply of any service, where
(a) the supplier of service is located outside India,
(b) the recipient of service is located in India, and
(c) the place of supply of service is in India;
GST NOTES- STARGATE E-LEARNING PVT LTD.
SUPPLY
(1) includes
(a) all forms of supply of
goods and/or services
Such As sale, transfer, barter,
exchange, license, rental,
lease or disposal

made or agreed to
be made for a
consideration

by a person

in the course or
FURTHERANCE OF
BUSINESS
(b) importation of services,

for a consideration

whether or not in
the course or
furtherance of
business
(c) a supply specified in Sch I,
made or agreed to be made
Without A Consideration
SCH- 1
1. Permanent
transfer/disposal of

BUSINESS ASSETS

WHERE INPUT TAX
CREDIT HAS BEEN
AVAILED on such
assets.
2. Supply of GOODS OR
SERVICES

BETWEEN RELATED
PERSONS, or

BETWEEN DISTINCT
PERSONS as
specified in section
(2) Sch-II- if Goods
+Service
Then what is treated as
Supply of Goods
1) Any transfer of the title
in goods is a supply of
goods.
2) Any transfer of title in
goods at a FUTURE
DATE upon payment of
full consideration .
3) Business assets
transferred

WHETHER OR NOT
FOR A
CONSIDERATION
4) Business Assets held in
stock at the time of de-
Reg
Except
(i) the business is
transferred as a going
concern or
(ii) the business is carried
on by a personal
representative who is
deemed
to be a taxable person
5) club/ Member
Then what is treated as
Supply of Service
(a) Any transfer of goods
without the transfer of
title thereof
CA MANOJ BATRA 8
SUPPLY- SEC 3
(3) Sch III Sch IV
Neither supply of goods ACTIVITIES BY CG/SG OR LA NEITHER SUPPLY OF GOODS NOR
Nor supply of service SUPPLY OF SERVICES
1. Services by an excluding the following services:
employee to the (i) services by the Department of Posts by way of speed post,
employer in the course express parcel post, life insurance and agency services;
of or in relation to his (ii) services in relation to an aircraft or a vessel , inside or
employment. outside the precincts of a Port Or An Airport; or
2. Services by any Court (iii) Transport Of Goods Or Passengers.
or Tribunal established
under any law 2. SERVICES PROVIDED BY A GOVERNMENT OR LOCAL
3. (a) The functions AUTHORITY TO INDIVIDUALS in discharge
performed by the MP, of its statutory powers or functions such as-
MLA , Members of (i) issuance of passport, visa, driving licence, birth certificate
Panchayats, Members of or death certificate; and
Municipalities; (ii) assignment of RIGHT TO USE NATURAL RESOURCES TO AN
(b) The duties INDIVIDUAL FARMER for purpose of agriculture.
performed by any 3. Services provided by a Government or local authority or a
person who holds any governmental authority by way of:
post in pursuance of the (i) any activity in relation to any function entrusted to a
provisions of the municipality under article 243 W of the Constitution;
Constitution; or (ii) any activity in relation to any function entrusted to a
(c) The duties Panchayat under article 243 G of the Constitution;
performed by any (iii) health care; and
person as a Chairperson (iv) education.
or a Member or a 4. SERVICES PROVIDED BY GOVERNMENT TOWARDS-
Director in a body (i) diplomatic or consular activities;
established by the CG or (ii) citizenship, naturalization and aliens;
a SG or local authority (iii) admission into , and emigration and expulsion from India;
and who is not deemed (iv) currency , coinage and legal tender , foreign exchange;
as an employee before (v) trade and commerce with foreign countries , import and
the commencement of export across
this clause. customs frontiers , interstate trade and commerce; or
4. Services by a FDM (vi) maintenance of public order.
located in India. 5. Any services provided by a Government or a local authority
5. Services of funeral, in the course of discharging any liability on account of any tax
GST NOTES- STARGATE E-LEARNING PVT LTD.
10, when made in
the course or
furtherance of
business.
3. Supply OF GOODS
(a) by a principal to his agent
where the agent undertakes
to supply such goods on
behalf of the principal, or
(b) by an agent to his
principal where the agent
undertakes to receive such
goods on behalf of the
principal.
4. Importation of services

by a taxable person
from a related
person
or

from any of his
other
establishments
outside India,
in the course or furtherance
of business.
Note- Tax on composite or mixed Supply
COMPOSITE SUPPLY = classified which is Principal Supply, MIXED SUPPLY = Supply which attract Highest Rate of Tax
(b) Any lease, tenancy,
easement, licence to
occupy land
(c) Any lease or letting out
of the building for
business or commerce,
either wholly or partly
(d) Job- work on other
goods person
(d) goods held for bus.
Used for private use.
Presently declared Service
(a) renting of immovable
property
(b) construction
(c) temporary transfer of
IPR;
(d) Information technology
software;
(e) To refrain from an act
(f) works contract ;
(g) transfer of the right to
use any goods ; and
(h) supply, by way of or as
part of any service or in
any other manner
whatsoever,
of goods, being food or
any other article for
human consumption or
any drink (other
than alcoholic liquor for
human consumption).
CA MANOJ BATRA 9
burial, crematorium or levied by such Government or
mortuary including authority.
transportation of the 6. Services provided by a Government or a local authority by
deceased. way of
(i) tolerating non-performance of a contract for which
consideration in the form of fines or liquidated damages; or
(ii) assignment of right to use any natural resource where such
right to use was assigned by the Government or the local
authority before the 1st April, 2016:
PROVIDED that the exemption shall apply only to service tax
payable on one time charge payable, in full upfront or in
installments, for assignment of right to use such
natural resource:
7. Services provided by Government by way of deputing
officers after office hours or on holidays for inspection or
container stuffing or such other duties in relation to
import or export of cargo on payment of Merchant Overtime
Charges (MOT).
8. Services provided by Government or a local authority by way
of-
(i) registration required under any law for the time being in
force; or
(ii) testing, calibration, safety check or certification relating to
protection or safety of workers, consumers or public at large,
required under any law
for the time being in force.
GST NOTES- STARGATE E-LEARNING PVT LTD. CA MANOJ BATRA 10
A

Includes Sch-1 Sch- Sch-III Sch-IV Whether

II supply
Exchange of New Car with old Car by Hundai
Interpretation of Supply for a consideration
Free Sample of Goods- free Medicine sample distributed by Cipla No No cons
Free Laptop to Students No No cons
Free GST classes / Free Warranty Service to Not Related Person No No cons
Free goods to Related Person- Employer to Employee - RP
Free GST classes to Related Person ( wife ) - RP
Free GST classes to Related Person ( Girl Friend ) No No cons
Building on Rent without consideration

To Girlfriend Not RP No No cons

To wife- RP
Advance Received for Goods
Advance Received for Service
Supply of goods 1 GSTIN OF Mr. A to another GSTIN of Mr. A
Supply of Service 1 GSTIN OF Mr. A to another GSTIN of Mr. A
In the course or furtherance of Business
Car/ Computer/ Fridge sold by an employee No
Import of service for a cons. In course or furtherance of business
Kapil Shama invites Jackie Chan to his show and makes payment
Kapil Shama invites Jackie Chan to his show and doesnt make payment No
Permanent transfer or disposal of Business Asset without cons.
Company ( E Ten ) Distributed its asset Free of cost to employee in winding up CA
domain or Donated its Computer to a School
Stargate gives its Old Table and Chair ( Business Asset) to Juice Wala free of Cost on
which ITC taken.
Stargate gives its Old CAR to Juice Wala free of Cost on which ITC NOT taken.
Due to GST Session Employees of Stargate get Late, and Stargate Send its Car to drop
there employees at their home. ( Business Assets used for pvt use) Or
Director of Stargate used CAR of the Company for Picking his children from school
Company ( E Ten ) not Distributed its asset remain in Stock in winding up CA domain
Company carrying CA Classes transferred to Stargate as Going Concern
GST NOTES- STARGATE E-LEARNING PVT LTD. CA MANOJ BATRA 11
A

Includes Sch-1 Sch- Sch-III Sch-IV Whether

II supply
Mobiles/Laptop provided by Stargate to its employees used for official and Personal
Purpose

Crane sold Goods

Crane given on Rent Service
Car sold under an agreement Payment in 10 installments & ownership transferred Goods
on Last installment
Vacant Land given on lease for Parking Business Service
Job work done on other goods Service
Flats which are sold during construction Construction
Advance received before completion or its first occupation by customer service
Temporary transfer of IPR Service
PERMANENT TRANSFER OF IPR Goods
X ltd develops Mobile App for Y Ltd Software
service
Activity of agreeing to the obligation to tolerate an act or situation
Penalty for early termination of agreement
Late delivery charges Service
Prepayment charges on early payment of Loan installment
Demurrage charges paid to the port authoritis for not clearing the goods within a
specified period of time
AMC of computers & Printers ( Toner/Mother Board also changed during service) Works Contract
Construction of building ( Cement, Bricks, Steel etc. also transferred during const.) Service
Sale of Food/ Liquor in Restaurant Service
Sale of goods by Club to member Goods
GST NOTES- STARGATE E-LEARNING PVT LTD. CA MANOJ BATRA 12
A

Whether treated as Supply Whether treated as Supply

Balance sheet Trfd to Employee without cons. Or Disposal for Consideration to Mr B
No ITC AVAILED Asset Donating to School
Land & Build Permanent Tfr No, as per sch-1 Yes, everything other than goods is
Since No ITC availed service
NOTE- But Refer Sch-II- Point -3 Author Note- since Stamp Duty is
leviable. So GST shouldnt be levied.
May be this will be taken care of.
ITC AVAILED Permanent Tfr Yes, as per sch-1 Covered in includes Part
Furniture Since ITC availed Yes, Supply of goods for consideration by
Author Note- Treated as Supply and ITC a person in the course or furtherance of
also reversible. May be this will be taken business.
care of in Future. Author Note- Treated as Supply and ITC
also reversible. May be this will be taken
care of in Future
ITC AVAILED Plant & Mach Permanent Tfr Yes, as per sch-1 Covered in includes Part

Computer Since ITC availed Yes, Supply of goods for consideration by
Author Note- Treated as Supply and ITC a person in the course or furtherance of
also reversible. May be this will be taken business
care of in Future Author Note- Treated as Supply and ITC
also reversible. May be this will be taken
care of in Future
No ITC AVAILED Permanent Tfr No, as per sch-1 Covered in includes Part
Motor Since No ITC availed Yes, Supply of goods for consideration by
Vehicle NOTE- But Refer Sch-II- Point -3 a person in the course or furtherance of
Whether treated as Supply? business
Author Note- Treated as Supply and ITC
also reversible. May be this will be taken
care of in Future
ITC AVAILED Motor Permanent Tfr Yes, as per sch-1 Covered in includes Part
vehicle- Since ITC availed Yes, Supply of goods for consideration by
Crane Author Note- Treated as Supply and ITC a person in the course or furtherance of
also reversible. May be this will be taken business
care of in Future Author Note- Treated as Supply and ITC
also reversible. May be this will be taken
care of in Future
GST NOTES- STARGATE E-LEARNING PVT LTD. CA MANOJ BATRA 13
M

Given Laptop Free of cost Recd architect service

employee Employer Sister Brother

supply- Not supply Architect
RP 1. if in course of RP
Not in course of
furtherance of Business furtherance of Business
sch- 1 Point 2 sch- 1 Point 2

Gifted jewellery Recd architect service

Son Father Sister
Not supply- because Builder supply- Recd service for making
RP Not for furtherance of RP Flats- in course of furtherance of
Business Business
sch- 1 Point 2 sch- 1 Point 2

Gifted jewellery A Ltd

Son Father
Jeweller supply Jeweller
RP
if in course of furtherance of B ltd Joint venture
For achieving Business RP supply
business sch- 1 Point 2
in course of furtherance of
Target Business- Sch- 1 Point 2

Computer Free of cost Free Laptop to Students Not Supply

Subsidiary Holding Free samples distributed of Medicines by Cipla Not Supply
supply Free warranty service Not Supply

in course of furtherance of Free GST classes to non Related Person Not supply
Business Free GST classes to Related Person supply
sch- 1 Point 2 Buiding on Rent without consideration

to Girlfriend Not supply

to Wife Supply
Son Father Son Father
Birthday cake not Supply Not Target of 1cr in a Gifted BMW Supply in course Cake business
in course of Business month of Business
GST NOTES- STARGATE E-LEARNING PVT LTD. CA MANOJ BATRA 14
O

Treated as Supply Zym Training service

GSTIN OF GSTIN OF wife Husband

MR. A 10 Laptop Free of cost for MR. A Supply between Related Person Zym
employees at Laptop Shop
FOOTWEAR without consideration LAPTOP SALE
SALE-Delhi Delhi

Treated as Supply
GSTIN OF GSTIN OF
MR. A Food/Spa Service to Employees Mr. A
of Laptop Shop without cons Restaurant/
LAPTOP SALE Spa
Delhi
GST NOTES- STARGATE E-LEARNING PVT LTD. CA MANOJ BATRA 15
A

Supply by Principal to Agent Supply by Agent to Principal

PRINCIPAL customer PRINCIPAL seller

Laptop Mfrer

Treated as
Supply Treated as Supply
Selling Buying Agent
Agent
Supply by agent to
Principal
Value = 10000 + 2000 Note- if only procure pur Value = 10000 + 2000
order- then GST on comm.

Import of Laptop Free of cost Recd architect service Import of service

employee Employer Sister Brother
Not service Not supply Architect
Not imported by Taxable person Personal House
imported
But supply-
but not in course of
1. if in course of furtherance furtherance of
of Business Business
sch- 1 Point 2 & 4 sch- 1 Point 2 & 4

Gifted jewellery Recd architect service

Son Father Sister
Not supply- because Builder Import of service- supply Brother
1. Not service Recd service for making
imported by Taxable Architect
2. Not for furtherance of Flats- in course of person
Business furtherance of Business
service
GST NOTES- STARGATE E-LEARNING PVT LTD.
A
Optional
Every registered taxable
person, whose
Agg. T. O in P.Y 50 L
Pay Composition Rate of Tax
- Not Less Than for

Manufacturer 2 %

Other 1%
Aggregate T.O = all taxable
supplies + exempt supplies +
exports of goods and/or
services + inter-State supplies
of a person having the same
PAN, to be computed on all
India basis and Less
CGST/SGST/ IGST
Exempt Supply = Non
Taxable supply + Nil Rated
Supply + Supply Exempt u/s
11
Note- NA for Person under Reverse
charge
Note- No Composition, if all
Regd. Taxable Person having
Same PAN All over India not
opt for composition [ means
follow for all Business Vertical]
e.g
business vertical Regd
sale of footwear
sale of Laptop
sale of Furniture
CA MANOJ BATRA 16
Composition scheme- SEC 9
Not eligible for composition
scheme
(a) who is engaged in the 1) Composition scheme If the proper officer has
SUPPLY OF SERVICES; or withdrawn from day on reasons to believe that a
(b) who makes any supply which Agg. T.O exceed 50 L taxable person was not
of GOODS WHICH ARE during F.Y eligible FOR COMPOSITION
NOT LEVIABLE TO TAX SCHEME
Note- if ineligible to
under this Act; or
Pay Diff. Tax
(c) who makes any inter-
composition scheme And
State outward supplies of 2) Can take ITC of stock of
Penalty
goods; or
IP/WIP/FG
(d) who makes any supply 3) Shall not collect tax from Note- section 66 or 67, as the
of goods through an recipient case may be, shall apply
electronic commerce 4) Not entitled to take credit of mutatis mutandis For
operator who input tax Determination Of Tax And
is required to collect tax Penalty
at source under section 56;
or
(e) who is a manufacturer
of such goods as may be
notified on the
recommendation of the
Council:
Composiiton scheme
Apply for all
GST NOTES- STARGATE E-LEARNING PVT LTD.
Taxable person
means a person who is
registered or liable to be
registered
Under Schedule V of this Act
CA MANOJ BATRA 17
Taxable person- SEC 10
who has obtained or is required to obtain more than one establishment of a person who has
registration obtained or is required to obtain

whether in one State or registration in a State

more than one State
shall, in respect of each such and any of his other establishments in
registration, be treated as distinct persons another State
e.g treated as establishments of distinct
In same state Business Vertical persons
e.g- Delhi
Sale of Shoes Business Vertical
option to take
Sale of Laptop
Shop of Shoes in Delhi
Separate Reg.
Sale of Books
Shop of Shoes in Haryana
Treated as Distinct Treated as Distinct Person
Person
GST NOTES- STARGATE E-LEARNING PVT LTD. CA MANOJ BATRA 18
Reg

person who is liable to be
registered under Schedule
V Threshold Limit irrelevant
Aggregate TO > 20 L
SCS Agg TO > 10 L
Agent on behalf of
Principal = included in
Value of Principal
Regd Job worker- Value
added in Principal
Reg not required
1) supplying goods
and/or services that
are not liable to tax or
are wholly exempt
2) an agriculturist
Aggregate T.O = all
taxable supplies + exempt
supplies + exports of
goods and/or services +
inter-State supplies of a
person having the same
PAN, to be computed on
all India basis and Less
CGST/SGST/ IGST
Registration- Sec 23
Take Reg. in State from where he makes Migration of (a) any specialized agency
Taxable Supply Existing Taxpayer of UN or any Multilateral
to GST Register in case of Financial Institution and
Mandatory Reg. Who is required Enforcement Organization notified
1) Inter-State Supplier under earlier law- cases under the United Nations
2) casual taxable persons, Shall be liable to be Grant Suo-moto (Privileges and
3) RCM Tax Payer regd under this Act Reg Immunities) Act, 1947,
4) NR Taxable Person from Appointed Note- if not Consulate or Embassy of
5) Tax Deductor u/s 46 day having PAN foreign countries shall be
6) TCS collector u/s 56 Temporary Reg granted a Unique Identity
7) Agent given Number; and
8) ISD Voluntary Reg Later converted (b) any other person or
9) Person supplying goods through May get Voluntary into PAN based class of persons, as may
Electronic commerce operator Regd. Reg no. be notified by the
Then all Prov apply Commissioner,
10) every electronic commerce operator as apply to Regd shall obtain a Unique
taxable Person Identity Number
11) person supplying online information
and database access or retrieval If Business
services from a place outside India to a Transferred due to
person in India, other than a Succession or
registered taxable person otherwise as going
concern-
12) such other person or class of persons Transferee liable to
as may be notified by the CG/SG. be Registered w.e.f
date of transfer or
succession

Apply within 30 days from the date on which he becomes liable to registration
casual taxable person or a non-resident taxable person shall apply for registration at least 5 days prior to the commencement of business
person having multiple business verticals in a State may obtain a separate registration for each business Vertical
Person must have PAN, For Tax Deductor must have TAN
Note- NR Taxable Person can get on basis of any other document
Note- Transfer due to Amalgamation/Demerger of 2 or more Co. by order of HC- Transferee liable to Reg w.e.f COI
registration or the Unique Identity Number, shall be granted or, as the case may be, rejected after due verification