GST Compliance Manual

Manual on
Goods &
Services
Tax Law
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Table of Contents
GST Registration ................................................................................................ 3
Time of Supply ................................................................................................. 11
Place of Supply ................................................................................................ 14
Invoicing .......................................................................................................... 17
Accounts and Records ...................................................................................... 30
Valuation of Goods and Services ........................................................................ 34
Tax credit eligibility .......................................................................................... 38
Credit register ................................................................................................. 42
Input Service Distributor ................................................................................... 44
GST Returns .................................................................................................... 51
GST Payment ................................................................................................... 58
GST Refund ...................................................................................................... 63
Disclaimer........................................................................................................ 70
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GST
Registration
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A. GST Registration
Annual turnover
Annual turnover not Annual turnover above Rs 75 lacs
Taxpayer
exceeding Rs 20 lacs between Rs 20 lacs
under
and Rs 75 lacs
existing laws
(Rs. 10 lacs and 50
lacs in case of north
Mandatory
eastern states)
No mandatory registration, no
registration option for
Provisional Composition scheme
Registration, Mandatory
can opt for registration, can opt
composition for composition
scheme scheme
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B. Person liable to be registered
Every person who is engaged in supply of taxable goods and services or both shall be liable to
take registration in the state from where he makes a taxable supply of goods or services if his
aggregate turnover in the financial year exceeds twenty lakh rupees (ten lakh for special
category states)
C. Mandatory registration with no turnover limit for following categories of

persons
Engaged in Interstate supply

Casual taxable person
Tax payable under reverse charge
Electronic commerce operator
Non-resident taxable person
Person who supplies goods or services on behalf of other taxable person as an agent
Input service distributor or person supplying goods on behalf of registered person
Person required to deduct tax at source u/s 51 (like local authority, Government
agencies, a department or establishment of the Centre or State Government)
Person who is required to collect tax at source under Section 52 of the CGST Act.
Person supplying OIDAR service from a place outside India to a person in India, other than
a registered person
Transferee of the business, where a business of registered person has been transferred,
amalgamated or demerged as a going concern
Person having registration or holding license under the existing law
Such other person or class of person as may be notified by the Government
D. Continuing of existing registrations under GST
Registered Under Status

State VAT Migrated to GST
Excise Duty Migrated to GST
Service Tax Migrated to GST
Custom Duty To Continue under Current Law
Central Sales Tax Migrated to GST
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E. GST Registration - Migration of registered taxpayers under any of the existing
laws
Obtain the
provisional ID and Enrol on the GSTN GSTN portal to
password to portal by filling in issue a state wise
access GST the form and provisional
registration other requisite registration to the
documents company

portal

Company to file
the online Company to file
GSTIN to be application form state wise
for final GST registration form
generated
registration and for the final GST
file the required registration
documents
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F. Structure of registration number
PAN based 15-digit GSTIN for each State
Provisional ID example for the state of Maharashtra
State Code PAN Entity Code Check

digit
2 7 A A A C J 0 8 8 6 E 1 Z R
State code numeric code as per Indian Census 2011

Entity number of registration of an entity in one state (1-9 and then A-Z)
Multiple registrations within a State allowed subject to:

The separate unit can be considered as a Business Vertical;
ITC allowed only when goods / services supplied across the verticals;
For recovery of dues all business verticals to be considered as a single legal entity
G. Procedure in case of Fresh Registration
Application for Fresh Registration
Person applying for registration shall declare his Permanent Account Number (PAN),
mobile number, e-mail address, State or Union Territory in Part A of Form GST REG-01
on the GSTN Portal. However, following categories of person are not required to furnish
the said details for registration in Form GST REG-01:
Non-resident taxable person.

Person supplying OIDAR services from a place outside India to a non-taxable online
recipient.
Person required to deduct tax at source under Section 51 of the CGST Act.
Person required to collect tax at source under Section 52 the CGST Act.
Application of registration in Form GST REG-01 shall be filed within 30 days from the date
on which such person becomes liable for registration.
Every person being an Input Service Distributor1, whether or not having a GST
registration, shall file a separate application for registration as such Input Service
Distributor.
Validation of the aforesaid details shall be performed as follows:

Permanent Account Number: Database maintained by Central Board of Direct Taxes.
Mobile number and e-mail address: One-time password credentials which will be sent
on mobile number and e-mail address.
Upon verification, a temporary reference number shall be generated and communicated

to the applicant on the said mobile number and email address which shall be
1 Input Service Distributor means an office of the supplier of goods and / or services which receives tax invoices issued under
Section 31 of the CGST Act, towards the receipt of input services and issues ISD invoice for the purposes of distributing the credit
of GST paid on the said services to a supplier of taxable goods and/ or services having the same Permanent Account Number as
that of the said office.
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electronically submitted by the applicant in Part B of Form GST REG-01 on GSTN portal
along with the document as specified.
Person applying for registration is required to submit the following documents along with
Part B of Form GST REG-01:
Photographs (wherever specified in the Application Form);
Proof of Constitution of Business;
Proof of Principal Place of Business;
Bank Account Related Proof;
Authorization Form.
A detailed list of aforesaid documents has been prescribed in the Annexure to the
Form GST REG-01.
An acknowledgement for the receipt of application shall be issued electronically in

Form GST REG02.
H. Registration Procedure in other cases read with Section 27 of the CGST Act
Following category of person shall make application of registration as per table mentioned
below:
Sr no Type of Applicant Particulars Applicable Form

1 Person who is Application for registration Form GST REG-07
required to deduct Grant of registration within 3 Form GST REG06
tax at source or working days from the date of
collect tax at source application
Cancellation of registration by the Form GST REG08
proper office on satisfaction that
person is no longer liable to deduct
or collect tax at source
2 Registration to non- Application for registration to be Form GST REG-09
resident filed at least 5 days prior to the
taxable person and commencement of business
casual Person applying for registration shall make an advance
taxable person deposit of tax, which shall be credited to his electronic
cash ledger
Acknowledgement of application Form GST REG-02
and deposit
3 Registration to Application for registration Form GST REG-10
person supplying
OIDAR service from Grant of registration within 3 Form GST REG06
the place outside working days from the date of
India to a non- application
taxable online
recipient
4 Extension of period Application for registration Form GST REG-11
of operation by Person applying for registration shall make an advance
causal taxable deposit of tax, which shall be credited to his electronic
person or non- cash ledger
resident taxable Acknowledgement of application Form GST REG-02
person and deposit
5 Suo moto Temporary registration granted by Form GST REG-12
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Sr no Type of Applicant Particulars Applicable Form
registration the proper officer on account to
any survey, enquiry, etc, which
shall be effective from the date of
order
Application to be filed by applicant Form GST REG-01
pursuant to above order within 90
days of the date of temporary
registration
6 Assignment of Application for registration Form GST REG-13
Unique Identification Grant of registration within 3 Form GST REG06
Number2 working days from the date of
application
A person having a unit(s) in a Special Economic Zone or being a Special Economic Zone
developer shall make a separate application for registration as a business vertical distinct
from his other units located outside the Special Economic Zone.
I. Amendment of Registration Read with Section 28 of the CGST Act
The registered person shall file an application in Form GST REG-14, to amend the
particulars furnished in the registration application, within 15 days of such change
The proper officer shall approve the amendment by issuing order in Form GST REG - 15
within 15 working days from such application, where amendment relates to the:
Legal name of business.
Address of principal/ additional place of business.
Addition, deletion or retirement of partner or directors, Karta, Managing Committee,
Board of Trustee, CEO or other person responsible for day to day affairs.
In case of amendment in the details other than those specified above, a deemed approval
on making such amendment application shall be granted.
Change in mobile number, email address shall be amended only after due verification
through one time password on the GSTN portal
Fresh registration application to be filed in Form GST REG 01, where the amendment
involves change in constitution of business which relates to change in PAN of registered
person.
Proper officer may serve a show cause notice in Form GST REG 03 within 15 working
days from date of application, seeking further information/ documents from the applicant
which should be replied in Form GST REG 04 within 7 working days.
If the proper officer fails to reply within 15 days and 7 days as prescribed, the application
of amendment is deemed to be approved and the amended certificate shall be made
available on the GSTN portal.
2 Following person applying for GST registration shall be granted Unique Identification Number:
Any specialised agency of the United Nations Organisation or any Multilateral Financial Institution and Organisation notified
under the United Nations (Privileges and Immunities) Act, 1947, Consulate or Embassy of foreign countries;
Any other person or class of persons, as may be notified by the Commissioner.
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J. Cancellation of Registration
A person to whom the registration is granted may apply for cancellation in Form GST REG-
16 along with the documents as mentioned below within 30 days of occurrence of event
warranting cancellation:
Details of the stock (Raw material, Semi-Finished or Finished goods);
Details of all capital goods held in stock;
Details of liability of tax to be paid;
Details of payment made;
Other relevant document in support thereof.
Person who has registered voluntarily, cannot apply for cancellation within 1 year from
effective date of registration
Sr Particulars Time Limit Applicable Form

no
1 Suo moto cancellation - Form GST REG16
application by the registered
person
2 Notice of cancellation of - Form GST REG17
registration by the proper office
3 Response to the SCN by the 7 working days from Form GST REG18
registered person the date receipt of
notice
4 Order for cancellation of 30 days from the date Form GST REG19
registration of application, or
30 days from the date
of response to SCN
5 Order by the proper officer 30 days from the date Form GST REG20
dropping the proceeding of application, or
30 days from the date
of response to SCN
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Time of Supply
Parti
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Time of Supply Section 12 and 13 of CGST Act, 2017
Particulars Time of Supply

Time of supply of Goods
12(2) Time of supply of goods Earlier of:
Date of issue of invoice by the supplier;
or
Last date on which he is required to
issue invoice with respect to supply (ie,
removal of goods for supply to
recipient in case of movement of goods
or delivery of goods in all other cases);
or
Date on which supplier receives the
payment with respect to supply3.
12(3) The time of supply in case Earlier of:
where tax is payable under Date of receipt of goods; or
reverse charge Date of payment as entered in the
books of accounts of the recipient or
the date on which payment is debited
in his bank account, whichever is
earlier; or
Date immediately following 30 days
from the date of issue of invoice or any
other document by the supplier.
Proviso to Where it is not possible to determine
Section 12(3) the time of supply as above, the time
of supply shall be the date of entry in
the books of account of the recipient of
supply
Time of Supply of Services
13(2) Invoice is issued within 30 Earlier of:
days from the date of supply Date of issue of invoice; or
of services Date of receipt of payment3
Invoice is not issued with 30 Earlier of:
days from the date of supply Date of provision of service; or
of services Date of receipt of payment3
Where the time of supply is not determined from above, the same shall be
the date on which the recipient shows the receipt of services in his books of
accounts.
13(3) The time of supply in case Earlier of:
where tax is payable under Date of payment as entered in the
reverse charge books of account of the recipient or the
date on which payment is debited in his
books of account; or
Date immediately following 60 days
from the date of issue of invoice or any
other document.
3 the date of receipt of payment shall be the date on which the payment is entered in the books of account of the supplier or the
date on which payment is credited to his bank account, whichever is earlier.
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First proviso Where it is not possible to determine
to 13(3) the time of supply as above, the time
of supply shall be the date of entry in
the books of account of the recipient of
supply
Other
Second Time of Supply of services in Earlier of:
proviso to case of associated enterprises Date of entry in the books of account
13(3) located outside India of the recipient of supply; or
Date of Payment.
12(4) &13(4) Time of Supply in case of Time of supply in case of vouchers by a

supply of vouchers supplier, shall be
Date of issue of voucher, if the supply
is identifiable at that point; or
Date of redemption of voucher, in all
other cases.
12(6) & 13(6) Time of Supply in case of Time of supply to the extent it relates
addition in value on account to an addition in the value of supply by
of delayed payment way of interest, late fee or penalty for
delayed payment of any consideration
shall be due date on which the supplier
receives such addition in value.
12(5) & 13(5) Residuary Provision Where it is not possible to determine the
time of supply from the above, the time of
supply, shall
In a case where a periodical return has
to be filed, be the date on which such
return is to be filed; or
In other case, the date on which tax is
paid.
Proviso to Excess amount received upto Where amount up to Rs 1,000 is

Section 12(2) Rs 1000 received in excess of amount indicated
& 13(2) in an invoice, the time of supply to the
extent of such excess amount shall, at
the option of the registered person, be
the date of issue of invoice in respect
of such excess amount.
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Place of
Supply
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Place of Supply of Goods
Particulars Place of Supply
Domestic Supply
Involves movement of goods Location where the movement terminates for delivery
to recipient
Does not involve movement of goods Location of the goods at the time of delivery to the
recipient
On direction of the third party Third persons principal place of business
Assembled or installed at site Place of installation or assembly
On board a conveyance Location at which goods are taken on board
Import or Export
Imports Location of Importer
Exports Location outside India
Place of Supply of Services

Both supplier and recipient in India
1) Directly in relation to immovable property Location of immovable property
2) Lodging, hotel accommodation, hotel inn, If immovable property is outside India location of
guest house etc. the recipient
3) Accommodation in immovable property for
organizing functions
4) Ancillary services to the above
Restaurant, catering and personal care Location where services are performed
Training and performance appraisal Location of recipient if recipient registered or
Location of performance of service
Admission to event or parks Place where event is held or location of the park
Organization of event or assignment of If held in India
sponsorship Location of recipient if recipient registered or
Location of performance of service
If held outside India
Location of the recipient
Transportation of goods Location of recipient if recipient registered or
Location at which such goods are handed over for
their transportation
Passenger transportation service Location of recipient if recipient registered or
Location where passenger embarks the
conveyance
Services on board a conveyance Location of the first schedule point of departure of
the conveyance for the journey
Telecommunication service 1) Fixed lines, lease circuits, cable or dish antenna
location the same are installed
2) Postpaid mobile & internet location of billing
address of the recipient
3) Prepaid mobile, internet & D2H through
voucher or other means
To selling agent Address of selling agent
To subscriber location where payment is received
or voucher is sold
Online payment location of the recipient on
records of the supplier
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Banking and other financial services including Location of recipient of service on the records of
stock broking the recipient if available or else location of supplier
of service
Insurance Service Registered recipient location of the recipient or
location of recipient on records of the supplier
Advertisement service to government Each of such states in proportion to the value of

service
Note: Place of supply of services for services not covered above will be
- Location of such person if services provided to registered recipient
- If unregistered person:
a) Location of the recipient as per address in records o
b) Location of supplier of service

Location of Supplier or Location of Recipient is Outside India
Service supplied in respect of Goods which are Where the services are actually performed
required to be made physically available4
Service supplied in respect of goods provided Location where goods are situated at time of
from remote location by electronic means supply
Services which requires physical presence of Where the services are actually performed
the recipient
Service directly in relation to Immovable Location of the Immovable Property
Property
Admission to or organization of event or such Location where event is held
ancillary services
For the following services: Location of supplier
Service supplied by banking company or

financial institution or non-banking financial
company to account holders
Intermediary services
Hiring of means of transport including yacht
for one month (excluding aircrafts and vessel)
Transportation of goods other than mail or Place of destination of goods
courier
Passenger transportation service Place where the passenger embarks on the
conveyance for continuous journey
Service on Board a conveyance Location of first scheduled point of departure of
conveyance for the journey
Supply of online information and database Location of recipient of service
access or retrieval services
Note: Place of supply of services for services not covered above will be
- Location of recipient of service; or else
- Location of supplier of service
4 Not applicable to case of service provided in respect of goods which are temporarily imported into India for repairs and are
exported after repairs without being put to any other use in India
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Invoicing
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A. Purchase Order5
The Purchase order shall contain the following details:
Sr no Particulars
1 Name, address, contact details of the supplier
2 GSTIN of the supplier
3 Name, address, contact details of the person placing the order
4 GSTIN of the person placing the order

5 Name, address, contact details of the person receiving the goods
6 GSTIN of the person receiving the goods

7 Description of goods or service
8 HSN code of goods or accounting code of services
9 Rate of tax (CGST, SGST, IGST) (Exempt/ 5%/ 12%, 18%/ 28%)
10 Details of place of delivery/ supply

11 Specific direction, if any, for delivery of goods
12 Tax conditions
13 GST Compliant terms and conditions
B. Goods Receipt Note/ Materials Receipt Note (GRN/MRN)
The GRN/ MRN shall contain the following details:
Sr. No. Particulars

1 Purchase Order details
2 Date of receipt of goods
3 Description of goods with HSN code
4 Quantity in case of goods
5 Delivery challan number and date
5 Purchase order, goods receipt note and Material receipt note are not GST documents and hence contents of the same are not
prescribed under Invoice Rules. The contents mentioned above are indicative and are subject to business of the Company
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C. Tax Invoice
The tax invoice shall contain the following mandatory details:
Sr. No. Particulars
1 Name, address and GSTIN of the supplier
2 Invoice number - consecutive serial number containing only alphabets

and/or numerals, unique for a financial year in one or multiple series, not
exceeding sixteen characters, containing alphabets or numerals or special
characters hyphen or dash and slash symbolised as - and / respectively,
and any combination thereof, unique for a financial year
3 Invoice date
4 Name, address and GSTIN of the recipient
5 If customer is not registered and the taxable value of the supply is INR 50k
or more - Address of delivery, along with the name of the state and its code.
6 If customer is unregistered and taxable value of supply is less than 50k-
Address of delivery along with state and state code if the recipient request
such details to be recorded in invoice
7 HSN code of goods or services
8 Description of goods or services
9 Quantity in case of goods or Unique Quantity Code
10 Total value of goods or services
11 Taxable value of goods or services taking into account discount or

abatement, if any
12 Rate of tax (CGST, SGST/ UTGST or IGST and cess(if any));
13 Amount of tax charged in respect of taxable goods or services (CGST,

SGST/UTGST or IGST and cess(if any))
14 Place of supply along with the name of State in case of inter-state supply
15 Details of place of delivery where the same is different from the place of
supply (i.e. Bill to- Ship to Model)
16 Whether the tax is payable on reverse charge
17 Signature or digital signature of the supplier or authorised representative
18 Purchase Order and MRN reference6
6 Not mandated under rules. This details can be included in invoice based on business requirement
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Note:
1) In case of procurements from unregistered suppliers, registered person may issue consolidated
invoice per supplier at the end of a month, where the aggregate value of such supplies exceeds five
thousand rupees in a day from any supplier or all the suppliers
2) Invoice for supply of goods shall be prepared in Triplicate in the following manner;
i. the original copy being marked as 'Original For Recipient'
ii. the duplicate copy being marked as 'Duplicate For Transporter'
iii. the triplicate copy being marked as 'Triplicate for Supplier'
3) Invoice for supply of services shall be prepared in Duplicate in the following manner;
i. the original copy being marked as 'Original For Recipient'
ii. the duplicate copy being marked as 'Duplicate For Supplier
Timeline for issuance of tax invoice
a) Supply of Goods
Time of issue of
invoice in case of
supply of goods
Supply does
General Continuous Sale on
not involve
cases Supply of approval
movement
goods basis
of goods
removal of
goods for delivery of
If customer If no
goods or
supply to confirms confirmation
the recipient making
before or at within 6 is received
goods
the time months till 6 months
available to
each the
sucessive recipient.
statement at the end of
before or at
of account 6 months
the time of
is issued or from the
confirmation
sucessive date of
of sale
payment is removal
received
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b) Supply of Services
Time of issue of invoice in case

of supply of services
General Notified person Contract

cases Supplier is making supplies ceased
Continuous
an insurer Supply of between distinct before
or banking service persons (including completion
company or insurer, banking co., of supply
a financial financial institution,
institution telecom operator)
due date
of payment
payment linked to the
within 30 ascertain completion
days from able from of an event
date of the
supply of due date of
contract payment
service
not at the
ascertainabl time
e from the when
contract the
supply
ceases.
within 45
days from
date of on or
supply of before the
service before or date of
on or at the
before the completion before or at the
time of of an time supplier
due date receipt
of event records in his books
of or before the expiry
payment payment of the quarter
during which the
supply was made.
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D. Export Invoice
The Export invoice shall contain the following mandatory details:
Sr no Corresponding details required under the Revised GST Invoice Rules
1 Name and address of Supplier

2 GSTIN of Supplier
3 Name, address of customer
4 Name and address of the recipient, address of delivery, name of the country of
destination
5 Invoice number - consecutive serial number containing only alphabets and/or
numerals, unique for a financial year in one or multiple series, not exceeding
sixteen characters, containing alphabets or numerals or special characters
hyphen or dash and slash symbolised as - and / respectively, and any
combination thereof, unique for a financial year
6 Date of the invoice
7 Description of goods / services along with HSN code of goods or services

8 Quantity in case of goods and unit or Unique Quantity Code thereof
9 GST rate - IGST and cess (if any) rate (applicable only in case of export supply
on payment of IGST)
10 GST amount - IGST and cess (if any) amount (applicable only in case of export
supply on payment of IGST)
11 Total value & taxable value of goods after taking into account discount or
abatement, if any (including IGST in case of export supply on payment of IGST)
12 Signature or digital signature of the supplier or his authorized representative.
13 Endorsement on the invoice SUPPLY MEANT FOR EXPORT/SUPPLY TO SEZ

UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS ON PAYMENT OF
INTEGRATED TAX or SUPPLY MEANT FOR EXPORT/SUPPLY TO SEZ UNIT
OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS UNDER BOND OR
LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED TAX as the
case maybe
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E. Bill of Supply7
The Bill of Supply shall contain the following:

2 GSTIN of Supplier
4 If customer is registered - GSTIN/ Unique ID Number.

5 Invoice number - consecutive serial number containing only alphabets
and/or numerals, unique for a financial year in one or multiple series, not
exceeding sixteen characters, containing alphabets or numerals or special
characters hyphen or dash and slash symbolised as - and / respectively,
and any combination thereof, unique for a financial year
6 Date of the issue of Bill of Supply
7 Description of goods / services along with HSN code of goods or services
8 Total value of goods or services after taking into account discount or
abatement, if any
9 Signature or digital signature of the supplier or his authorized
representative.
7 A registered person is required to issue Bill of Supply in case of supply of exempted goods/ services
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F. Receipt Voucher8
The Receipt Voucher shall contain the following:
Sr Corresponding details required under the Revised GST Invoice Rules

no
2 GSTIN of Supplier
4 If customer is registered - GSTIN/ Unique ID Number

5 Receipt voucher number - consecutive serial number containing only
alphabets and/or numerals, unique for a financial year in one or multiple
series, one or multiple series, not exceeding sixteen characters, containing
alphabets or numerals or special characters hyphen or dash and slash
symbolised as - and / respectively, and any combination thereof, unique
for a financial year
6 Date of the issue of Receipt Voucher
7 Description of goods / services
8 Place of supply along with the name of State and its code, in case of a
supply in the course of inter-State trade or commerce
10 Amount of Advance taken
11 GST rate - IGST (for Interstate purchases) / CGST, SGST or UTGST (for
Intrastate purchases) / Cess
12 GST amount - IGST (for Interstate purchases) / CGST, SGST or UTGST (for
Intrastate purchases)/ Cess
13 Total amount (including GST)
14 Signature or digital signature of the supplier or his authorized

representative.
15 Indicate on the face of the document as to whether GST is payable under

reverse charge
8 (a) The supplier is required to issue a receipt voucher on receipt of advance payment with respect to any supply of goods/ services.
(b) Where at the time of receipt of advance,
i) If the rate of tax is not determinable - tax to be paid at 18%
ii) If nature of supply cannot be determined - IGST to be paid
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G. Refund Voucher9
The Refund Voucher shall contain the following:

2 GSTIN of Supplier
4 If customer is registered - GSTIN/ Unique ID Number.
5 Refund voucher number - consecutive serial number containing only

series, not exceeding sixteen characters, containing alphabets or numerals or
special characters hyphen or dash and slash symbolised as - and /
respectively, and any combination thereof, unique for a financial year
6 Date of the issue of Refund voucher
7 Description of goods / services on which refund made
8 Number and Date of Receipt voucher (against receipt of advances)
9 Amount of Refund

14 Indicate on the face of the document as to whether GST is payable under
reverse charge
9 The supplier is required to issue a refund voucher when advances had been received (and receipt voucher issued) but no supply was made
and no tax invoice issued i.e. on refund of advances
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H. Payment Voucher10
The Payment Voucher shall contain the following:

2 GSTIN of Supplier if registered
3 Name, address and GSTIN of recipient
4 Payment voucher number - consecutive serial number containing only
series, not exceeding sixteen characters, containing alphabets or numerals or
special characters hyphen or dash and slash symbolised as - and /
respectively, and any combination thereof, unique for a financial year
5 Date of the issue of Payment voucher
6 Description of goods / services
7 Place of supply along with the name of State, in case of inter-state supply
8 Amount paid
10 GST payable - IGST (for Interstate purchases) / CGST, SGST or UTGST (for
12 Signature or digital signature of the supplier or his authorized representative
10 The supplier is required to issue a payment voucher at the time of payment for goods and services on which RCM applies (including
payment to unregistered vendors)
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I. Revised Invoice, Credit Note or Debit Note11
The Revised Invoice, Credit Note or Debit Note shall contain the following:
Sr Corresponding details required under the Revised GST Invoice Rules

no
2 GSTIN of Supplier
3 Nature of document
4 Serial number and date of the corresponding tax invoice or, as the case may be,
bill of supply
6 If customer is registered - GSTIN/ Unique ID Number
sixteen characters containing alphabets or numerals or special characters hyphen
or dash and slash symbolised as - and / respectively, and any combination
thereof, unique for a financial year
8 Date of the issue of document
9 The address of delivery, along with the name of State and its code, (in case of
unregistered customer)
10 Taxable value of goods or services
11 GST rate - IGST (for Interstate purchases) / CGST, SGST or UTGST (for Intrastate
purchases) / Cess
Intrastate purchases)/ Cess credited or debited to the recipient
11 The words 'Revised Invoice' should be indicated prominently on the face of the invoice
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J. Delivery Challan
The Delivery Challan shall contain the following:

1 Date and number of delivery challan
2 Name and address of the consignor
3 GTIN of the consigner, if the consignor is registered
4 Name and address of the consignee
5 GSTIN of the consignee, if the consignee is registered
6 HSN code and description of goods
7 Quantity supplied ( provisional quantity can be mentioned, if exact quantity
supplied is not identifiable)
8 Taxable value of goods supplied
Intrastate purchases)/ Cess credited or debited to the recipient
11 Place of supply in case of interstate movement
12 Signature
Note:
(a) Delivery Challan for supply of goods shall be prepared in Triplicate in the following manner;
(i) The original copy being marked as 'Original for Consignee'
(ii) The duplicate copy being marked as 'Duplicate for Transporter'
(iii) The triplicate copy being marked as 'Triplicate for Consignor'
(b) Where goods are being transported on a delivery challan in lieu of invoice, the same shall
be declared in E-Way Bill
(c) Where the goods being transported are for the purpose of supply to the recipient but the
tax invoice could not be issued at the time of removal of goods for the purpose of supply, the
supplier shall issue a tax invoice after delivery of goods.
28 | P a g e
K. ISD Invoice or ISD Credit Note
The ISD Invoice or ISD Credit Note shall contain the following:
1 Name and address of Input Service Distributor

2 GSTIN of ISD
3 Name, address and GSTN of recipient receiving the credit
sixteen characters, containing alphabets or numerals or special characters
hyphen or dash and slash symbolised as - and / respectively, and any
combination thereof, unique for a financial year
5 Date of the issue of the document
6 Amount of credit distributed
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Accounts &
Records
30 | P a g e
A. List of Books of Accounts to be maintained
Every registered person shall keep and maintain following accounts at his principal place
of business, as mentioned in certificate of registration, a true and correct account of
Production or manufacture of goods;

Details of inward supply of goods or services or both;
Details of outward supply of goods or services or both;
Stock of goods;
Input tax credit availed;
Output tax payable and paid;
Account of goods or services imported or exported;
Supplies attracting payment of tax on reverse charge;
Relevant documents including invoices, bill of supply, delivery challans;
Credit notes, debit notes, receipt vouchers, payment vouchers, refund vouchers;
Account of stock with respect to each commodity received and supplied (it should
contain particulars of opening balance, receipt, supply, goods lost, stolen,
destroyed, written off or disposed off by way of gift or free samples and balance
stock including raw materials, finished goods, scrap and wastage thereof);
Separate account for advances received, paid and adjustments made thereto;
Account containing details of tax payable including tax payable under reverse
charge;
Account containing details of tax collected and paid, input tax, input tax credit
claimed;
A register of tax invoice, debit note, credit note, delivery challan issued or
received during any tax period;
Name and complete addresses of suppliers from whom the goods or services are
received;
Name and complete addresses of the person to whom the goods or services are
supplied; and
Complete address of the premises where the goods are stored, including goods
stored during transit along with the particulars of the stock stored therein.
B. Manner of maintenance of Books of Accounts
Books of account (including electronic form) shall be maintained at the principal

place of business and at every related place of business mentioned in the
certificate of registration.
Any entry in registers, accounts and documents shall not be erased, effaced or
overwritten, and all incorrect entries shall be scored out under attestation and
thereafter correct entry shall be recorded. Further, where the registers and other
documents are maintained electronically, a log of every entry edited or deleted
shall be maintained.
Each volume of books of accounts maintained shall be serially numbered.
Every registered person engaged in manufacturing of goods shall maintain

monthly production accounts showing quantitative details of raw materials or
31 | P a g e
services used in the manufacture and quantitative details of goods so
manufactured including the waste and by products.
Every registered person supplying services shall maintain the accounts showing
the quantitative details of goods used in the provision of each service, details of
input services utilized and services supplied.
Every registered person executing works contract shall keep separate accounts
for works contract showing
a) the names and addresses of the persons on whose behalf the works contract
is executed;
b) description, value and quantity (wherever applicable) of goods or services
received for the execution of works contract;
c) description, value and quantity (wherever applicable) of goods or services
utilized in the execution of works contract;
d) the details of payment received in respect of each works contract; and
e) the names and addresses of suppliers from whom he received goods or
services.
The records maintained in electronic form shall be authenticated by means of a

digital signature.
A registered person is required to retain the books of accounts and other records
as mentioned above until the expiry of 72 months from the due date of furnishing
annual return for the year pertaining to such accounts and records. In case such
records are kept manually, then such records shall be kept at every related place
of business mentioned in the registration certificate. In case the records are
maintained digitally, then such records shall be accessible that every related place
of business
Registered person who is party to an appeal or revision or any other proceedings

before any Appellate Authority or Revisional Authority or Appellate Tribunal or
Court, whether filed by him or Commissioner or is under investigation, shall retain
the books of accounts and other records for a period of one year after final
disposal of such appeal/ revision/ proceedings/ investigations or for the period
specified, whichever is later.
The registered person shall also provide, on demand, an account of the audit trail
and inter-linkages including the source document, whether paper or electronic,
and the financial accounts, record layout, data dictionary and explanation for
codes used and total number of records in each field along with sample copies of
documents.
The owner or the operator of the godown shall store the goods in such manner
that they can be identified item wise and owner wise and shall facilitate any
physical verification or inspection by the proper officer on demand. The owner or
operator of godown shall maintain books of accounts with respect to the period
for which particular goods remain in godown, including particulars relating to
receipt, dispatch, movement and disposal of goods
32 | P a g e
The owner or operator of warehouse and transporters, if not already registered
under the CGST / SGST Act, shall submit the details of business electronically in
Form GST ENR 01 and upon validation of the details furnished a unique enrolment
number shall be generated and communicated to the person The person already
enrolled in another state or Union Territory shall be deemed to be enrolled in the
State or Union territory
Person engaged in the business of transporting goods shall maintain records of

goods transported, delivered and goods stored in transit along with the GSTIN of
the registered consignor and consignee for each of his branches
Every agents shall maintain accounts depicting the
Details of authorization received from each principal to receive and supply goods /
services on behalf each principal
Description , value and quantity of goods / services received / supplied on behalf
of the principal including details of tax paid thereon
Details of accounts furnished to every principal
Proper electronic back-up of records shall be maintained and preserved in a manner

that the information can be restored within reasonable period of time in the event of
destruction of such records due to accidents or natural causes. Duly authenticated hard
copy or electronically readable form of such records or documents shall be produced on
demand.
33 | P a g e
Valuation of
Goods and
Service
34 | P a g e
A. Value of taxable supply
As per Section 15 of the CGST Act, 2017 the value of taxable supply shall be the
Transaction value [price actually paid or payable] where the supplier and recipient are
not related and includes:
Any Taxes, duties, cesses, fees and charges levied under any law for the time
being in force under Act, other than GST Act, of the same is charged separately;
Incidental expenses, reimbursable expenses subject to conditions;
Expenses paid as the recipient of the service, which were actually liable to be paid
by the supplier of service;
Interest or late fee or penalty for delayed payment of any consideration for any
supply;
Subsidies directly linked to price, excluding government subsidies
Exclusions in transaction value
Discounts given before or at the time of supply which is recorded in invoice;

Discounts given after the time of supply by virtue of terms of agreement (entered
into at or before time of such supply) provided the same is linked to invoices and
the recipient of goods / services reverse the corresponding input tax credit availed
earlier
Where the value of the supply of goods or services or both cannot be determined as
transaction value, the same shall be determined as per the valuation rules.
Valuation Rules
Rule Particulars
Value of supply of goods Where goods/services supplied for consideration not wholly in
or services where the money, the value shall be:
consideration is not Open Market Value (OMV) (a)
wholly in money (Rule 27 If no OMV then sum of consideration in money and further
of CGST Rules, 2017) amount equivalent to consideration not in money, if known at
time of supply (b)
If (a) and (b) not determinable then value of supply of like kind
and quality
If not determinable as per above then sum of consideration in
money and further amount equivalent to consideration not in
money as determined applying Rule 30 (value based on cost) or
31 (residual method) sequentially
Value of supply of goods Where goods/services between distinct/related persons shall be;
or services between OMV
distinct (eg stock If no OMV then value of supply of like kind and quality
transfer) or related If not determinable as per above then as determined applying
persons, other than Rule 30 or 31 sequentially
through an agent (Rule
28 of CGST Rules, 2017) In case full credit is available to recipient, the declared value in
invoice is deemed as OMV
Where goods are intended for further supply as such by the

recipient, the value shall at the option of the supplier be an amount
equivalent to 90% of the price charged for identical goods sold to
unrelated party
35 | P a g e
Value of supply of goods Value of supply of goods between principal and agent shall be;
made or received through OMV of the goods being supplied or at supplier's option, 90% of
an agent (Rule 29 of price charged for supply of goods of like kind and quality by
CGST Rules, 2017) recipient to his customer who is unrelated person where the
goods are meant for further supply by recipient
If not determinable as above then as determined applying Rule
30 or 31 sequentially
Value of supply of goods If value not determinable by preceding Rules, then 110% of Cost
or services or both based of production/manufacture/cost of acquisition of goods or cost
on cost (Rule 30 of CGST of provision of service
Rules, 2017)
Residual method for If value not determinable by preceding rules then same shall be
determination of value of determined using reasonable means consistent with the
supply of goods or principles and general provisions of section 15 and these rules
services or both (Rule 31 Supplier of service can opt for this Rule disregarding Rule 30
of CGST Rules, 2017)
Determination of value in For the following services, value would be determined as mentioned
respect of certain in the CGST valuation Rules:
supplies (Rule 32 of CGST In relation to services for the purchase or sale of foreign
Rules, 2017) currency, including money changing
In relation to services for booking of tickets for travel by air
provided by an air travel agent
In relation to services for life insurance business
In relation to supply by a person dealing in second hand goods
In relation to value of a token, or a voucher, or a coupon, or a
stamp (other than postage stamp) which is redeemable against a
supply of goods or services or both shall be equal to the money
value of the goods or services or both redeemable against such
token, voucher, coupon, or stamp;
Value of supply of Any expenditure or costs incurred by a supplier as a pure agent

services in case of pure of the recipient of supply shall be excluded from the value of
agent(Rule 33 of CGST supply, if all the following conditions are satisfied, namely,-
Rules, 2017)
(i) the supplier acts as a pure agent of the recipient of the
supply, when he makes the payment to the third party on
authorisation by such recipient;
(ii) the payment made by the pure agent on behalf of the
recipient of supply has been separately indicated in the
invoice issued by the pure agent to the recipient of service;
and
(iii) the supplies procured by the pure agent from the third
party as a pure agent of the recipient of supply are in
addition to the services he supplies on his own account
For the purposes of this rule, pure agent means a person who-
(a) enters into a contractual agreement with the recipient of

supply to act as his pure agent to incur expenditure or costs
in the course of supply of goods or services or both;
36 | P a g e
(b) neither intends to hold nor holds any title to the goods or
services or both so procured or supplied as pure agent of
the recipient of supply;
(c) does not use for his own interest such goods or services so
procured; and
(d) receives only the actual amount incurred to procure such
goods or services in addition to the amount received for
supply he provides on his own account
Rate of Exchange of For determination of value of taxable goods shall be the

currency, other than INR, applicable rate of exchange as notified by CBEC under section
for determination of value 14 of the Customs Act, 1962 as on the date of time of supply of
(Rule 34 of CGST Rules, such goods in terms of section 12 of the Act
2017) For determination of value of taxable services shall be the
applicable rate of exchange determined as per the generally
accepted accounting principles as on the date of time of supply
of such services in terms of section 13 of the Act
Value of supply inclusive Where the value of supply is inclusive of GST, amount of GST
of IGST, CGST, SGST, would be back calculated as per the defined formula
UTGST (Rule 35 of CGST
Rules, 2017)
37 | P a g e
Tax Credit
eligibility
38 | P a g e
A. Admissibility of Input Tax Credit (ITC)
A person is eligible to take the credit of IGST (including that on import of goods),
CGST and SGST charged on any supply of the goods or services to him (including
tax paid under reverse charge) which are used or intended to be used for the
furtherance of business
B. Non-admissibility of ITC
There are some supplies of goods and services on which ITC is not admissible.
Before booking the invoice, one has to check whether the goods/ services
procured are related to these kinds of transactions. These transactions are:
Sr no Particulars
1 Motor vehicles and other conveyances except when they are used:
i) for making the following taxable supplies, namely
further supply of such vehicles or conveyances ; or
transportation of passengers; or
imparting training on driving, flying, navigating such vehicles or
conveyances;
ii) for transportation of goods
2 i) Goods and / or services provided in relation to food and
beverages, outdoor catering, beauty treatment, health services,
cosmetic and plastic surgery other than in cases where the
outward taxable supply is of the same category
ii) membership of a club, health and fitness centre,
iii) rent a cab, life insurance, health insurance (except when the same
is notified by the government as obligatory for an employer to
provide to its employee under any law or when used to provide
outward taxable supply of the same category)
iv) travel benefits extended to employees on vacation such as
leave or home travel concession
3 Works contract services when supplied for construction of immovable
property (other than plant and machinery12) except where it is an input
service for further supply of works contract service
4 Goods or services or both received by a taxable person for construction of
an immovable property (other than plant and machinery) for self, even if
used in course of furtherance in business
5 Procurement of Goods/ services on which tax is charged under composition
scheme
6 Goods or services or both received by non-resident taxable person except
on goods imported by him
7 Goods and/or services used for personal consumption
8 Goods lost, stolen, destroyed, written off or disposed of by way of gift or
free samples
9 Tax paid under fraud, detention and confiscation cases
12Plant & Machinery is defined as apparatus, equipment and machinery fixed to earth by foundation or structural support that are
used for making outward supply of goods or services or both and includes such foundation and structural supports but excludes:
i) Land, building or any other civil structures.
ii) Telecommunication towers and;
iii) Pipelines laid outside the factory premises
39 | P a g e
Note: If the credit is eligible, CGST, SGST/UTGST and IGST paid on purchases should be
recorded separately in respective GST ITC ledgers. In case, the credit is not eligible, the same
has to be booked as cost and not to be debited to the GST ITC ledgers.
C. Conditions for availing tax credit
The recipient is in possession of a tax invoice, debit note, supplementary

invoice issued by a supplier
The recipient has received the goods or services or both
Tax charged in respect of such supply has been actually paid to the credit of
the appropriate Government
Supplier has filed the monthly return in Form GSTR-3
Where goods are received in lots or installments, registered person shall be

entitled to take credit upon receipt of the last installment
If depreciation has been claimed of the GST component under Income

Tax Act, the input tax credit shall not be allowed on the said GST
component
If the value of supply of goods or services or both (except supplies on

which tax is payable under reverse charge mechanism) including the
tax payable is not paid by the recipient within a period of 180 days
from the date of invoice, an amount equal to the input tax credit
availed shall be added to recipients output tax liability, along with
interest
Provided the recipient can re-avail the credit of input tax credit once the
payment is made.
D. Adjustments at the month end
At the month end, reversals should be made for required adjustments:
No credit will be available if the output supply is exempted from tax (list of
exempted goods and services has been notified, but subject to change by
the Government)
Reversal of proportionate credit on goods (including capital goods) or
services (including ISD credit) used for making both taxable as well as
exempted supplies
Reversal of proportionate credit on goods or services used for partly
business and partly non-business purpose
ITC in respect of free output supplies/ samples/ donations are not eligible
ITC will not be available in respect of goods and services which are outside
the purview of GST
E. Points to be kept in mind
ITC cannot be claimed after filing the return of the September month of the
following year to which the invoice or debit note pertains or filing of annual
return whichever is earlier
40 | P a g e
For example: The credit pertaining to the financial year 2017-18 shall be
availed before the filing of the return for the month of September, 2018
(due date 20 October 2018) or filing of annual return (due date 31
December 2018), whichever is earlier
In case of new registration or supplies become taxable, the person can

claim the
ITC in respect of the inputs, semi-finished and finished goods held in stock
on the
registration day subject to the condition that the date of invoice in respect
of such inward supplies shall not be more than one year prior to the date of
registration.
In case of sale, merger, demerger, amalgamation, lease or transfer of

business, unutilized ITC in the hands of transferor can be transferred to the
transferee entity provided there is a specific provision for transfer of
liabilities of the transferor to transferee.
In case of inputs or capital goods sent to job worker, credit can be taken by
the manufacturer even if the goods are directly sent to job workers
location without being brought to manufacturers place of business
Nature of Time limit to If not received back within time limit

goods receive the goods
back
Inputs One year Treated as supply by the manufacturer
to the job worker on the day when the
Capital Goods Three years
goods were send out and tax has to be
paid accordingly
Utilization of input credit towards output tax can be done in following

manner:
Credit of IGST should be first utilized towards payment of IGST and then CGST
and if remaining towards SGST
Credit of CGST should be first utilized towards payment of CGST and then IGST.
Credit of CGST cannot be utilized for payment of SGST
Credit of SGST should be first utilized towards payment of SGST and then IGST.
Credit of SGST cannot be utilized for payment of CGST
IGST CGST SGST
IGST CGST SGST
CGST IGST IGST
SGST
41 | P a g e
Credit
Register
42 | P a g e
A. Development of register
There is no specific format for input GST credit register prescribed under the GST law.
Based on the requirements for details to be disclosed in the GST return formats published
by the Government as on date, Input GST credit register to be developed and maintained
in its ERP system.
Balance in CGST, SGST/UTGST, and IGST paid accounts at the end of period, should tally
with balance of input credit available as per register.
B. Updation of register
The register will also stand amended whenever any debit or credit note is
booked on which GST is additionally charged or reversed
Further, in case of payment under RCM, there should be a mechanism

through which the amount paid under RCM shall be updated in the credit
register
Similar to RCM, there should be a mechanism through which credit

distributed by ISD will be captured in the credit register
C. Details of forms to be maintained under the ITC Rules
GST ITC-01 The registered person should make a declaration of the

details of inputs held in stock or inputs contained in semi-finished or
finished goods, or capitals goods, electronically, in the said form within a
period of 30 days of his becoming eligible to avail the input tax credit
GST ITC-02 - A registered person shall, in the event of sale, merger, de-
merger, amalgamation, lease or transfer or change in the ownership of
business for any reason, furnish the details of sale, merger, de-merger,
amalgamation, lease or transfer of business along with a request for
transfer of unutilized input tax credit lying in his electronic credit ledger to
the transferee
GST ITC-03 Declaration for intimation of ITC reversal / payment of tax

on inputs held in stock, inputs contained in semi-finished and finished
goods held in stock and capital goods under Section 18(4) of the CGST Act
(ie where a registered person opts to pay tax under composition scheme
or the goods or services or both supplied by him becomes wholly exempt
from tax)
GST ITC-04 Details of goods / capital goods sent to job worker and
received back along with the details of challan to be furnished on or before
the 25th of the month succeeding the quarter
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Input
Service
Distributor
44 | P a g e
A. Meaning of input service distributor (ISD)
Input Service Distributor means head office or any other office which receives tax
invoices towards receipt of input services and distributes the credit of CGST / SGST /
UTGST / IGST paid on the said services to the units (under the same PAN number as ISD)
making the taxable supply of goods and / or services utilizing such input services .
B. Procedure / Manner of distribution of input tax credit by ISD
The amount of credit distributed shall not exceed the amount of credit
available for distribution.
The Input Service Distributor shall separately distribute the amount of

eligible input tax credit and the amount of ineligible input tax credit
(ineligible under the provisions of Section 17 (5) of CGST Act 2017 or
otherwise).
The input tax credit on account of CGST, SGST, UTGST and IGST shall be
distributed separately.
Credit attributable to one recipient has to be distributed only to that

recipient.
Credit attributable to more than one recipient has to be distributed to all

such recipients on pro rata basis (discussed below).
Credit attributable to all recipients has to be distributed to all recipients on

pro rata basis (as discussed below).
The pro rata distribution shall be as follows:
C1 = (t1 / T) * C
where:
- C1 is the amount of credit to be distributed to one of the recipients, R1
- C is the amount of credit to be distributed
- t1 is the turnover of the recipient R1 during the relevant period
- T is the aggregate of turnover of all recipients to which the credit being
distributed is attributable and which are operational in the current year.
The turnover of a recipient has to be computed as follows:
The aggregate value of:

- all taxable supplies (excluding the value of inward supplies on which tax is
payable under reverse charge);
- exempt supplies made within a State or Union territory;
- exports of goods or services or both;
- inter-State supplies of goods or services or both;
but excluding:
- CGST, SGST, UTGST, IGST, GST Compensation cess
- Duties or taxes levied under Entry 84 of List I and Entry 51 and 54 of List
II of the Seventh Schedule to the Constitution (i.e. excise duties and State
taxes on petroleum products, alcoholic liquor for human consumption etc
and excise duties on tobacco & tobacco products)
45 | P a g e
The Relevant period shall be:
- if the recipients of credit have turnover in their States or Union territories
in the financial year preceding the year during which credit is to be
distributed, the said financial year;
- if some or all recipients of the credit do not have any turnover in their
States or Union territories in the financial year preceding the year during
which the credit is to be distributed, the last quarter for which details of
such turnover of all the recipients are available, previous to the month
during which credit is to be distributed.
Input tax credit of IGST shall be distributed as IGST to all recipients to

whom such credit is attributable.
Input tax credit of CGST and SGST / UTGST shall be distributed as:
- CGST and SGST, if the credit is distributed to recipient located in the
same state where the ISD is located;
- IGST, in other cases.
The GST Input Tax Credit Rules provide that any additional amount of
input tax credit on account of debit note issued to an ISD by the supplier
should be distributed in the same manner as explained above and shall be
distributed vide an ISD invoice in the month in which the debit note in
included in the return by filed by ISD in GSTR-6.
In case of any input tax credit reduction on account of a credit note issued
to ISD by the supplier:
- the input tax credit shall be apportioned to each recipient in the same
ratio in which the credit pertaining to the original invoice was
distributed;
- the apportioned amount shall be reduced from the credit to be
distributed in the month in which the credit note is included in GSTR-
6 and the remaining credit shall be distributed;
- where the amount of credit to be distributed is less than the amount
to be adjusted on account of the credit note, the amount to be
adjusted shall be added to the output liability of the concerned
recipient(s)
The above procedure has to be followed in case the input tax credit
distributed is reduced later on for any other reason.
C. Documents to be issued
ISD shall issue ISD invoice specifically indicating in such invoice that it is
issued only for distribution of input tax credits
ISD shall issue ISD credit note for reduction of credit in case the input
credit already distributed has to be reduced. Such credit reduction shall
be apportioned in the ratio in which input tax credit in original invoice was
distributed
Any additional input credit available with the ISD on account of receipt of
a debit note by ISD shall be distributed raising an ISD invoice. Such
distribution has to be made in the month in which such debit note is
include in FORM GSTR 6
46 | P a g e
The latest return format released in June 2017 mention that the ISD will
not have any reverse charge supplies. To our prima facie understanding,
purchases for services subject to reverse charge needs to be captured in
normal registration GSTR2 by self-invoice and then an invoice to be raised
through GSTR1 to GSTR6 and then distribution of the credit to other
GSTINs.
D. Details of inward supplies of ISD
The details of the inward supply will be communicated to ISD in Form

GSTR 6A which will be auto-generated by the GST portal on the basis of
GSTR-1 of the supplier.
The GSTR -6 return format released in June 2017 mention that the ISD
will not have any reverse charge supplies. If ISD wants to take reverse
charge supplies (refer note 4 of GSTR-6 format), then in that case ISD has
to separately register as Normal taxpayer.
E. Return by ISD to distribute the credit
ISD has to furnish a monthly return electronically in Form GSTR - 6 within

thirteen days after the end of such month. Based on such return, the
credit will reflect in Part-B of Form GSTR-2A of the recipient unit.
F. Illustration for distribution of credit by ISD
We have provided below an illustration for better understanding of the manner of taking and
distribution tax credit by an ISD under GST regime.
Assumptions taken:
An office of the company in Maharashtra has been registered as ISD under GST and has
received GST invoices of input services, say in the month of October 2017, as follows:
Sr No Types of taxes paid on Eligible Ineligible

the input service credit (Rs) credit
invoices (Rs)
1 Central GST 10,000 2,000
2 State GST 10,000 2,000
3 Integrated GST 15,000 1,000
Total 35,000 5,000
Lets say, for the purpose of this illustration, the Company has GST registrations in the
States of West Bengal, Karnataka and Maharashtra only.
The above credits taken by ISD pertains to the recipients, as follows:
47 | P a g e
(a) Eligible Credits:
Sr No Attributable States Types of Eligible

taxes credit
(Rs)
1 Attributable to the CGST 2,500
State of Karnataka SGST 2,500
only IGST 7,500
State of Maharashtra SGST 1,500
and Karnataka IGST 5,000
3 Attributable to all 3 CGST 6,000
States SGST 6,000
IGST 2,500
Total 35,000
(b) Ineligible Credits:
Sr No Types of taxes paid on Types of Eligible

the input service taxes credit
invoices (Rs)
State of Karnataka SGST 1,000
only IGST -
2 Attributable to the CGST -
State of Maharashtra SGST -
and Karnataka IGST 1,000
3 Attributable to all 3 CGST 1,000
States SGST 1,000
IGST -
Total 5,000
The turnover of the States for the quarter July 2017 to September 2017 is as follows:
Sr No Supplies Value of turnover of the States

Maharashtra Karnataka West
Bengal
1 Intra state 1,05,000 1,10,000 95,000
taxable and
exempt supplies
2 Export supplies - 75,000 -
3 Inter-State 2,50,000 2,25,000 3,00,000
taxable and
exempt supplies
Total turnover 3,55,000 4,10,000 3,95,000
Total turnover of all the recipients = Rs. 11,60,000
48 | P a g e
Distribution of eligible credits:
Sr Type of Attributable Distribution

no Tax States Maharashtra Karnataka West Bengal
1 CGST Attributable to - 2,500 -
the State of
Karnataka only
Attributable to 1,500*3,55,000 1,500*4,10,000 -
the State of / 765,000 / 765,000
Maharashtra
and Karnataka = 696.08 = 803.92
Attributable to 6,000*3,55,000 6,000*4,10,000 6,000*3,95,0
all 3 States / 11,60,000 / 11,60,000 00
/ 11,60,000
=1,836.21 =2,120.69
=2,043.10
2 SGST Attributable to - 2,500 -
the State of
Karnataka only
Attributable to 1,500*3,55,000 1,500*4,10,000 -
the State of / 765,000 / 765,000
Maharashtra
and Karnataka = 696.08 = 803.92
Attributable to 6,000*3,55,000 6,000*4,10,000 6,000*3,95,0
all 3 States / 11,60,000 / 11,60,000 00
/ 11,60,000
=1,836.21 =2,120.69
=2,043.10
3 IGST Attributable to - 7,500 -
the State of
Karnataka only
Attributable to 5,000*3,55,000 5,000*4,10,000 -
the State of / 765,000 / 765,000
Maharashtra
and Karnataka = 2,320.26 = 2,679.74
Attributable to 2,500*3,55,000 2,500*4,10,000 2,500*3,95,0
all 3 States / 11,60,000 / 11,60,000 00
/ 11,60,000
=765.09 =883.62
=851.29
Summary of distribution of eligible credits:
Credit to be distributed to Maharashtra

- As CGST Rs. 2,532.29
- As SGST Rs. 2,532.29
- As IGST Rs. 3,085.35
Credit to be distributed to Karnataka

- As CGST, SGST, UTGST NIL
- As IGST:
Underlying credit CGST Rs. 5,424.61
Underlying credit SGST Rs. 5,424.61
Underlying credit IGST - Rs. 11,063.36
49 | P a g e
Credit to be distributed to West Bengal
- As CGST, SGST, UTGST NIL
- As IGST:
Underlying credit CGST Rs. 2,043.10
Underlying credit SGST Rs. 2,043.10
Underlying credit IGST - Rs. 851.29
Similarly, the ISD of Maharashtra will distribute the credit of ineligible services in the same
manner.
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GST
Returns
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A. Summary Returns for the first two months:
For the first two months of GST implementation, tax would be payable based on a simple
return (Form GSTR-3B) containing summary of outward and inward supplies which will be
submitted before 20th of the succeeding month.
Following is the due date for Form 3B for the first two months
Return July 2017 August 2017

FORM GSTR-3B 20 August 2017 20 September 2017
B. Regular Returns
i) Monthly Returns by Registered Taxable Person (Section 37, 38 and 39 of CGST Act,
2017 read with Rule 59, 60 and Rule 61 of CGST Rule, 2017)
Every registered taxable person, other than a person opting for composition levy, Input
Service Distributor (ISD), non-resident taxable person or person required to deduct or
collect tax at source, is required to furnish details of outward and inward supplies of
goods/ services, input tax credit availed, tax payable, tax paid etc. on a monthly basis.
The following are the steps for furnishing the said details:
STEP 1:
The taxpayer (supplier) will have to furnish details of outward supplies made during the
month in Form GSTR-1 electronically through the common portal by 10th day of the
subsequent month.
Eg: The details of outward supplies made during September, 2017 shall be reported in
Form GSTR-1 which has to be furnished before 10 October, 2017. (given that for July
and August, 2017 due dates for the same have been extended)
STEP 2:
The details of outward supplies furnished by the supplier in Form GSTR-1 shall be auto-
populated and made available electronically to the recipient of supplies in PART A of
Form GSTR-2A through the GST common portal after the due date of filing of Form
GSTR-1.
STEP 3:
The recipient can make the corrections required i.e., addition, modification and deletion
in Form GSTR-2A and submit the final inward details in Form GSTR-2 by 15th day of the
subsequent month.
Eg: If the supplier has shown the tax on outward supply as Rs 100 for the month of July,
2017 and the actual tax as per tax invoice during that month is RS 150 respectively, the
recipient can modify the said entry to claim the credit to the extent of RS 150.
STEP 4:
The corrections done by the recipient shall be made available to the supplier in Form
GSTR-1A. The supplier has to either accept or reject the corrections by 17th day of the
subsequent month. Form GSTR-1 furnished by the supplier will be amended to the extent
of correction accepted by the supplier.
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Eg: The supplier can accept the corrections made by the recipient in Form GSTR-2 for the
month of September, 2017 i.e., increase in the tax amount by 17 October, 2017 and on
doing so, suppliers original Form GSTR-1 shall amended accordingly.
STEP 5:
Form GSTR-3 containing details of outward and inward supplies will be auto-populated
and will be made available for submission along with the payment. Form GSTR-3 has to be
submitted electronically by 20th day of subsequent month.
Eg: The details of inward and outward supplies made during the month of September,
2017 shall be reported in Form GSTR-3 which has to be furnished before 20 October,
2017.
Note 1: A Casual taxable person would have to file Form GSTR-1, Form GSTR-2 and
Form GSTR-3 for the period for which registration has been obtained.
Summary Table:
Return Frequency Due Date

th
FORM GSTR-1 10 day of succeeding month
Auto-populated after filing of Form
FORM GSTR-2A
GSTR-1
FORM GSTR-2 15th day of the succeeding month
Monthly Auto-populated after filing of Form
GSTR-2
FORM GSTR-1A
To be approved by supplier by 17th day
of succeeding month
FORM GSTR-3 20th day of succeeding month
Note 2: The Government has given relaxation in return filing time limit for first two
months as follows:
Revised Due Date for July Revised due date for

Return
2017 August
FORM GSTR-1 1-5 September 16-20 September
FORM GSTR-2 6-10 September 21-25 September
Subsequent to the due date of filling of GSTR 2 (for the month where GSTR 3B is
filed), GSTR 3 shall be auto populated as under:
Part A of GSTR 3 shall be electronically generated based on GSTR 1 and GSTR 2

Part B of GSTR 3 shall be electronically generated based on GSTR 3B
The registered person is required to modify Part B of GSTR 3 based on discrepancies

between GSTR 3B and GSTR 3 and discharge the tax and other liability, if any. If the
input tax credit as per GSTR 3 exceeds the input tax credit as per GSTR 3B, then the
additional amount shall be added to the electronic credit ledger of the registered person
ii) Return by an Input Service Distributor (Section 39(4), Section 37(2) of CGST Act, 2017
read with Rule 65 of CGST Rules, 2017)
Every Input service distributor (ISD) is required to furnish details of input tax credit of
GST paid on input services, received for distribution and distributed on a monthly basis.
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STEP 1:
Auto-populated details of inward supplies of services is made available to the ISD
(recipient) in Form GSTR-6A on the basis of Form GSTR-1 furnished by the supplier.
STEP 2:
The details of distribution of input tax credit and auto-populated details from Form GSTR-
6A after corrections shall be submitted by the ISD in Form GSTR-6 by 13th day of
succeeding month.

Details will be auto-populated from
FORM GSTR-6A
Monthly GSTR-1
FORM GSTR-6 13th day of the succeeding month
iii) Mismatch of Credit: (Section 42 of CGST Act, 2017 read with Rule 71 of the CGST Rules,
2017)
If the credit availed is more than the credit available as per GSTR-2A (auto
populated purchase details as uploaded by the supplier) or not reflecting in GSTR-2A and
the mismatch is not due to duplication of ITC claim by the recipient, the same shall be
communicated to both recipient and supplier on or before the last date of the month in
which tax matching has been carried out.
The supplier or the recipient has to make suitable rectifications in their returns to be
furnished for the month in which the discrepancy is made available.
In case the discrepancy is not rectified, the mismatched amount will be added to the
output tax liability of the recipient in his return (FORM GSTR-3) for the month succeeding
the month in which the discrepancy is made available. Along with output liability, the
recipient has to pay interest on the amount so added from the date of availing the credit
till the corresponding additions are made.
Furthermore, in case the supplier subsequently rectifies its return, the recipient shall
be eligible to reduce his output liability to that extent and shall be eligible for refund of the
interest earlier paid.
It is pertinent to note that if the supplier reduced its output liability and issues credit note,
the reversed amount will reflect as a negative item in Part A of Form GSTR- 2A as well as
in Form GST ITC-1 of the recipient.
Eg: A has made taxable supplies to B in the month of October, 2017. The outward tax
declared by A is Rs. 100 while the ITC claimed by the B is Rs. 150/-. In the month of
November, 2017, mismatch procedure is carried out and discrepancy to an extent of Rs.
50/- is communicated to both A and B on 30 November, 2017. A / B has to make suitable
rectifications as required by them in their returns to be filed for the month of November,
2017. In case, mismatch is not resolved in their November returns, the same (Rs. 50)
along with interest is added to the output liability of B in Form GSTR-3 to be filed for the
month of December, 2017.
54 | P a g e
iv) Return by a person deducting tax at source (Section 39(3) of the CGST Act, 2017 read
with Rule 66 of CGST Rules, 2017)
Every registered taxable person who is required to deduct tax at source is required to
furnish details of tax deducted and deposited on a monthly basis in Form GSTR 7
STEP 1:
Every person deducting tax at source (deductor) shall furnish the details of tax deducted
in Form GSTR-7 (TDS return) electronically by 10th day of the succeeding month.
STEP 2:
The details furnished in Form GSTR-7 shall be auto-populated and made available
electronically to respective suppliers in Part C of FORM GSTR-2A after the due date of
filing Form GSTR-7.
STEP 3:
The tax deduction certificate shall be made available electronically to the supplier
(deductee) in Form GSTR-7A within 5 days from the date of deposit of TDS by the
deductor.

th
FORM GSTR-7 10 day of the succeeding month
Auto-populated to each supplier after
Part C of GSTR-2A
Monthly submission of Form GSTR-7
Certificate within 5 days from the date
GSTR-7A
of deposit of TDS
v) Return by a person collecting tax at source (Section 52(4) of CGST Act, 2017 read with
Rule 67 of CGST Rules, 2017)
Every E-commerce operator who would collect tax at source is required to furnish details
of supplies effected, tax collected and deposited on a monthly basis.
STEP 1:
The e-commerce operator shall furnish a statement in Form GSTR-8 electronically by
10th day of the succeeding month for the amount of tax collected at source with respect
to taxable supplies made through it by suppliers wherein consideration for the supplies is
collected by the operator.
STEP 2:
The details furnished by the e-commerce operator shall be made available electronically
to respective suppliers in PART C of Form GSTR-2A after the due date of filing the GSTR-
8.
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th
10 day of the succeeding
FORM GSTR-8
month
Monthly Auto-populated to each
Part C of GSTR-2A supplier after filing of Form
GSTR-8
Note: As per the recent press note released by the Ministry of Finance, the applicability of
provisions relating to Tax Deduction at Source (TDS) (Section 51) and Tax Collection at
Source (TCS) (Section 52) of the CGST / SGST Act 2017 has been postponed.
Accordingly, the said provisions would be brought into force with effect from a future
date, which would be notified later.
Hence, persons who are liable to deduct or collect tax at source will be required to obtain
registration, but the liability to deduct or collect tax will arise from the date the respective
provisions are brought in force.
However, it would be pertinent to note that the persons supplying goods or services
through e-commerce operator will not be liable to obtain registration under GST under
clause (ix) of Section 24 of the CGST / SGST Act, 2017 till the provision related to TCS is
brought under force, unless they are liable to obtain registration under any other
provision of the CGST /SGST Act.
C. Annual Return (Section 44 of CGST Act, 2017 read with Rule 80 of CGST Rules, 2017)
i) Who is required to file annual Return?
Every registered taxable person other than a person under composition scheme, ISD,
person required to deduct or collect tax at source, a casual taxable person and non-
resident taxable person shall furnish, electronically, annual return in Form GSTR 9 by
31st December following the end of each financial year.
Eg: Annual Return for the period July 2017 to March 2018 shall be furnished by 31
December, 2018.
A person who is opting to pay tax under composition scheme shall furnish annual return
in Form GSTR 9A by 31st December following the end of each financial year. The form
has yet not been prescribed.
ii) Audit (Section 35(5) of the CGST Act, 2017 read with Rule 80(3) of the CGST Rules, 2017)
Every registered taxable person having aggregate turnover during the financial year
exceeds Rs. 2 crores is required to get his accounts audited by a chartered accountant or
a cost accountant. He has to furnish the copy of audited accounts and a reconciliation
statement in Form GSTR 9C along with the annual return in Form GSTR- 9.
iii) Reconciliation statement
As the value of outward and inward supplies as per audited books of accounts and as per
annual returns may differ due to various adjustments like related party supplies, post
supply discounts etc., the differences will be reconciled in a statement and such
statement is known as reconciliation statement.
56 | P a g e
D. Others
i) First Return (Section 40 of the CGST Act, 2017)
A person who has exceeded the threshold limits prescribed shall be required to obtain
registration under GST.
Once the registration is granted, the said person shall furnish the first return for the
period from the date on which he became liable to register till the date on which
registration is granted.
Eg: The aggregate turnover of B exceeded the prescribed threshold on 15 th August,

2017. Therefore, he became liable to obtain registration on 15 th August, 2017. The
registration was granted to B on 10th September, 2017.
Hence, B is required furnish his first return for the period 15 th August, 2017 till 10th
September, 2017.
ii) Final Return (Section 45 of the CGST Act, 2017 read with Rule 81 of the CGST Rules,
2017)
Every registered taxable person whose registration is cancelled is required to furnish final
return in Form GSTR -10 within 3 months of the date of cancellation or date of
cancellation order whichever is later.
Eg: A has applied for cancellation of registration on 12 th October, 2017. The effective
date of cancellation is 19 th November, 2017 and the date of cancellation order is 10 th
November, 2017. Hence, A has to furnish the final return by 18 th February, 2018.
iii) Late fee for non-filing of return
If any registered taxable person who fails to furnish the details of outward supplies in
Form GSTR -1 or inward supplies in Form GSTR - 2, monthly return or final return by the
due date, he shall be liable to pay late fees of RS 100/- for every day during which such
failure continues subject to maximum of RS 5,000/-.
Any registered taxable person who fails to furnish the annual return, he shall be liable to
pay late fees of RS 100/- for every day during which such failure continues subject to
maximum of an amount calculated at 0.25% of his turnover in the state/union territory.
iv) Notice to return defaulters (Section 46 of the CGST Act, 2017 read with Rule 68 of the
CGST Rules, 2017)
When a registered taxable person fails to furnish monthly return or annual return or final
return, then a notice in Form GSTR 3A shall be issued requiring him to furnish the said
return within 15 days from the date of receipt of such notice.
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GST
Payments
58 | P a g e
A. Aspects of Payments
i) Instances where payments to be made under GST
A person may be liable to make the payment under GST laws in following instances:
Person making intra-state supplies CGST and SGST
Person making inter-state supplies - IGST
Person liable to deduct tax TDS
Default in payment of tax or wrong availment of credit Interest
Short payment of taxes or commitment of offence - Penalty
Default in filing of returns Late fees
Any other payment which may be required to be made under the GST Act
ii) Person liable to make the payment
Supplier of goods/service
Recipient of supply, in case of Reverse Charge Mechanism
iii) Time of payment
Payment of CGST/ SGST/ IGST by taxpayer other than composite taxpayers is to be done
on monthly basis by 20 th of the succeeding month.
Payment of TDS/TCS is to be done by 10 th of month succeeding the month of

deduction/collection.
iv) Recording of liabilities and payments
All the liabilities and payments will be recorded in Electronic Ledgers of taxpayer maintained on
GST common portal in the following three ledgers:
Electronic Liability Register - Form GST PMT-1 (Rule 85 of the CGST Rules, 2017)
Electronic Credit Ledger - Form GST PMT-2 (Rule 86 of the CGST Rules, 2017)
Electronic Cash Ledger - Form GST PMT- 5 (Rule 87 of the CGST Rules, 2017)
B. Electronic Tax Liability Registers
i) What is Electronic Liability Register?
All liabilities of a taxable person under GST shall be reflected as a debit entry in Electronic
Liability Register and on discharge of any liability through electronic credit ledger or electronic
cash ledger or reduction in the liability, such amount shall be reflected as a credit in the liability
register.
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The electronic liability register comprises of two parts:
Part I Return related liabilities
- All liabilities accruing due to return and payments made against the liabilities will be
recorded in this part. Eg. outward tax liability, mismatch of ITC etc.
- If the balance in this part is positive (i.e., any return related tax liability is not
discharged), the return would be treated as invalid.
- Further, the taxpayer would not be able to file return of a tax period if liabilities
relating to previous tax period's return are not discharged completely.
Part II Other than return related liabilities
- All liabilities accruing which are not return related, will be recorded in this part. Eg:
liability on account of any order in appeal, rectification, review, revision, etc.
- The closing balance in this part shall not have any effect on filing of return.
C. Electronic Credit Ledger
i) What is Electronic Credit Ledger?
Every claim of ITC in the return, shall be credited to the Electronic Credit Ledger. (Eg.
credit of inputs, capital goods, input service, reverse charge, ISD credit, credit on
account of merger, pre-registration, etc.)
The electronic credit ledger shall be debited to the extent of discharge of any tax liability
through the credit ledger.
Amount available in this ledger can be used only to make payment of output tax liability.
(Liability of interest, penalty, fees, etc. cannot be discharged using the balance in credit
ledger)
Such credit cannot be utilized to pay the liability of CGST/SGST/IGST accruing on account
of reverse charge mechanism. Therefore, liability of RCM cannot be paid through credit
and has to be paid in cash only.
Utilization of input credit towards output tax can be done in following manner:
- Credit of IGST should be first utilized towards payment of IGST and then CGST and if
remaining towards SGST.
- Credit of CGST should be first utilized towards payment of CGST and then IGST. Credit
of CGST cannot be utilized for payment of SGST.
- Credit of SGST should be first utilized towards payment of SGST and then IGST. Credit
of SGST cannot be utilized for payment of CGST.
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D. Electronic Cash Ledger
i) What is Electronic Cash Ledger?
Any amount deposited in cash on account of GST / TDS / TCS shall be credited to
Electronic Cash Ledger.
Amount available in electronic cash ledger can be used for payment of tax, interest,
penalty, late fee, or any other amount payable under the Act.
On discharge of any liability through electronic cash ledger, the amount shall be debited
in the ledger.
ii) Generation of challan
Draft challan can be generated by logging into common portal.
Basic details of tax payer such as name, address, email, mobile no., GSTIN will be auto
populated in the challan.
The tax payer will have to fill in other details such as amount of tax (CGST, SGST, IGST,
and UTGST), interest, penalty, fees or any other amount payable.
The tax payer can partially fill in the challan form and temporarily save the challan for
completion at a later stage. A saved challan can be edited before finalization.
After submitting the details, final challan will be generated which cannot be modified, and
will be valid for 15 days.
The final challan generated, will have a 14-digit (yy/mm followed by 10-digits) Unique
Common Portal Identification Number (CPIN)
Within the validity period of challan, tax payer has to make payment for net tax liability
through prescribed modes.
If the tax payer is not registered under GST, he should approach proper officer, who will
generate a temporary identification number. Based on this number, payment can be
made and details of such payment shall be recorded in Form GST PMT-5, to be
maintained on Common Portal.
iii) Payment procedure
The deposit can be made through any of the following modes:
Internet banking through authorized banks
Credit card or Debit card after registering the same with the Common Portal through the
authorized banks
NEFT or RTGS from any bank
Over the Counter (OTC) through authorized banks, for deposits upto
RS 10,000 per challan per tax period, by cash, cheque or demand draft.
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Where payment is made by way of NEFT/RTGS, a mandate form (valid for 15 days from
generation of challan) shall be generated along with the challan, which is to be submitted to the
bank from where payment is to be made.
On successful credit of the amount to the concerned government account maintained in

the authorised bank, a Challan Identification Number (CIN: 17 digits = 14 digits CPIN + 3
digits Bank Code] will be generated by the collecting Bank and the same shall be indicated
in the challan. This is the actual proof of tax payment. If no Challan Identification Number
(CIN) is generated, the said person may represent electronically in Form GST PMT-7
through the Common Portal to the Bank or electronic gateway through which the deposit
was initiated.
On receipt of CIN from the authorized Bank, the said amount shall be credited to the
electronic cash ledger of the tax payer.
E. Others
i) Order of discharging tax liability
Every person has to discharge his tax liability and other dues in the following order:
1. Self-assessed tax and other dues related to returns of previous tax period.
2. Self-assessed tax and other dues related to returns of current tax period.
3. Any other liability (eg. Interest or Penalty)
Therefore, on payment of tax, it will be first attributed to the tax liability of previous tax period
and if remaining, will be attributed to the tax liability of current tax period.
ii) Interest on delayed tax payment
If there is delay in payment of tax, the tax payer should on his own pay interest for the
delayed period.
The interest in above case, shall be calculated from the date following the due date of tax
payment.
Interest is also required to be paid on undue or excess claim of input tax credit or undue
or excess reduction in output tax liability.
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GST
Refund
63 | P a g e
A. Introduction
In the taxation administration, refund refers to any amount that is due to the tax payer from
the tax administration (Section 54 of the CGST Act, 2017)
Refund of unutilized credits will be allowed in following cases:
Zero rated supplies either of IGST paid on such supplies or of unutilized ITC
Credit accumulation due to inverted duty structure
Tax payment on purchases made by Embassies or UN bodies
GST paid on supply which is not provided, either wholly or partially and for which invoice
has not been issued or where a refund voucher is issued
Excess / wrong payment of tax due to mistake or inadvertence
Deemed export of goods
Tax refund for international tourists
Refund of remainder of advance tax deposited by a casual / non-resident taxable person
Finalization of provisional assessment
Pre deposit for filing appeal including refund arising in pursuance of an appellate
authoritys order (when the appeal is decided in favour of the appellant).
Payment of duty / tax during investigation but NIL/ lower liability arises at the time of
finalization of investigation / adjudication
Refund shall not be allowed if the amount of refund is less than RS 1,000.
The amount of remainder of advance tax deposited by a causal or non-taxable person shall not
be refunded unless such person has furnished all the required returns in respect of the entire
period for which registration was in force.
B. Time limit for filing refund application
i) Refund claim of any tax and interest (if any, paid on such tax) or any other amount paid
to be made before the expiry of 2 years from the relevant date.
Following persons have to file the application before the expiry of six months from the last day
of quarter in which supply was received:
Any specialized agency of the united nation organization
Multilateral Financial Institution
An organization under the United Nation (Privileges and Immunities) Act
Consulate/Embassy of foreign countries
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Any other person or class of persons as may be specified in this behalf by the Indian
Government.
Relevant date under various scenarios where refund arises is tabulated as follows:
Particulars Relevant date

Export of goods out of India
By air or sea Date on which the ship or the aircraft

leaves India
By land Date on which such goods pass the

frontier
By post Date of dispatch of goods by the Post

Office concerned to a place outside India
Supply of goods regarded as deemed Date on which the return relating to such
exports deemed exports is furnished
Export of services out of India
Where supply of services had been Date of receipt of payment in convertible

completed prior to the receipt of foreign exchange
payment
Date of issue of invoice
Where payment for the services had
been received in advance prior to
the date of issue of the invoice
Tax becomes refundable as a Date of communication of such judgment,

consequence of judgment, decree, decree, order or direction
order or direction of the Appellate
Authority, Appellate Tribunal or any
court
Refund of unutilized ITC End of the financial year in which such

claim for refund arises
Provisional payment of tax Date of adjustment of tax after the final

assessment thereof
Claim by a person, other than the Date of receipt of goods or services or both
supplier by such person
In any other case Date of payment of tax
Refund of any balance in the electronic cash ledger can be claimed at the time of filing of
return in Form GSTR-3, GSTR-4 or GSTR-7.
ii) Refund of GST for supplies to SEZ
Application for refund of GST paid in respect of supplies to SEZ unit/developer shall be filed by
the supplier
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Supply of goods after such goods have been admitted in SEZ for authorized operations,
as endorsed by the specified officer of the zone.
Supply of services application to be filed along with such evidence regarding receipt of
services for authorized operations as endorsed by the specified officer of the zone.
iii) Refund claim by a casual taxable person:
Refund can be claimed by casual taxable person and non-resident taxable person of the
remainder of advance tax deposited by him after adjusting tax payable in the last return.
iv) Manner of calculation of Refund in case of zero-rated supply of goods or services
In case of zero-rated supply of goods or services or both without payment of tax under
bond or letter of undertaking, refund of ITC shall be granted as per the following formula:
Refund Amount = (Turnover of zero-rated supply of goods and services) x Net ITC
Adjusted Total Turnover
Net ITC means ITC availed on inputs and input services during the relevant period
Turnover of zero-rated supply of goods means the value of zero-rated supply of goods
made during the relevant period without payment of tax under bond or letter of
undertaking
Turnover of zero-rated supply of services means the value of zero-rates supply of

services made without payment of tax under bond or letter of undertaking, calculated in
the following manner;
- Zero-rated supply of services is the aggregate of the payments received during the
relevant period for zero-rated supply of services and zero-rated supply of services
where supply has been completed for which payment had been received in advance in
any period prior to the relevant period reduced by advances received for zero-rated
supply of services for which the supply of services has not been completed during the
relevant period.
Adjusted Total turnover means the turnover in a State or a Union territory, excluding the
value of exempt supplies other than zero-rated supplies, during the relevant period.
Relevant period means the period for which the claim has been filed.
v) Manner of calculation of Refund in case of inverted duty structure
In case of inverted duty structure, refund of ITC shall be granted as per the following
formula:
Max. Refund = (Turnover of inverted rated supply of goods) x Net ITC Tax payable thereon
Adjusted Total Turnover
Net ITC means ITC availed on inputs and input services during the relevant period.
Adjusted Total turnover means the turnover in a State or a Union territory, excluding the
value of exempt supplies other than zero-rated supplies, during the relevant period.
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C. Documents to be filed along with refund application
i) Following documentary evidences shall be submitted along with refund application:
Particulars Documents to be submitted
Export of goods A statement containing the number and date of shipping

bills or bills of export and the number and date of relevant
export invoices.
Export of services A statement containing the number and date of invoices and
the relevant BRC or FIRC, as the case may be, in a case
where the refund is on account of export of services;
Supply of goods A statement containing the number and date of invoices in
made to a SEZ unit prescribed manner along with the evidence regarding
or developer endorsement
A declaration to the effect that SEZ unit/developer has not

availed of ITC of tax paid by supplier of goods.
Supply of services A statement containing the number and date of invoices, the
made to a SEZ unit evidence regarding endorsement and the details of
or developer payment, along with proof thereof, made by the recipient to
the supplier for authorized operations.
A declaration to the effect that SEZ unit/developer has not

availed of ITC of tax paid by supplier of services.
Deemed exports A statement containing the number and date of invoices
along with such other evidence as may be notified in this
behalf,
Refund of any A statement in Annexure 1 of FORM GST RFD-01 containing
unutilized ITC where the number and date of invoices received and issued during
the credit has a tax period.
accumulated on
account of higher
rate of tax on inputs
compared to lower
rate of tax on output
supplies
Tax becomes Reference number of the order and a copy of the order
refundable as a passed by the proper officer or an appellate authority or
consequence of Appellate Tribunal or court resulting in such refund or
judgment, decree, reference number of the payment of the amount paid at the
order or direction of time of admission of appeal (pre-deposit) can be claimed as
the Appellate refund.
Authority, Appellate
Tribunal or any court
Wrong tax payment A statement showing details of transactions considered as
intra-state sale supply but which is subsequently held to be
inter-state supply.
Excess tax payment A statement showing details of amount of claim on account
of excess payment of tax.
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ii) Documents for defying unjust enrichment
Refund claimed does not exceed RS 2 lakhs
- A declaration to the effect that the incidence of tax, interest or any other amount
claimed as refund has not been passed on to any other person.
Refund claimed exceeds RS 2 lakhs
- A Certificate in Annexure 2 of FORM GST RFD-01 issued by a chartered accountant or

a cost accountant to the effect that the incidence of tax, interest or any other amount
claimed as refund has not been passed on to any other person.
iii) Where the amount of tax has been recovered from the recipient, it shall be deemed that
the incidence of tax has been passed on to the ultimate consumer.
Further, the said declaration or certificate is not required to be furnished in the following
cases:
a) refund of tax paid on zero rated supplies of goods or services
b) refund of unutilized ITC
c) refund of tax on a supply which is not provided or
d) refund of tax wrongfully collected and paid to Central or State Government
e) refund of tax or interest borne by class of notified applicants
D. Procedure for refund application
i) Filing of refund application
Application to be filed in Form GST RFD-01 along with documents prescribed before the
expiry of 2 years from the relevant date.
For refund of IGST paid on export of goods outside India, the shipping bill filed by an
exporter shall be deemed to be an application for refund of integrated tax paid on the
goods exported out of India and such application shall be deemed to have been filed when
The person in charge of the conveyance carrying the export goods duly files an export
manifest or an export report covering the number and the date of shipping bills or bills of
export; and
The applicant has furnished a valid return in FORM GSTR-3;
The details of the relevant export invoices contained in FORM GSTR-1 shall be
transmitted electronically by the common portal to the system designated by the
Customs and the said system shall electronically transmit to the common portal, a
confirmation that the goods covered by the said invoices have been exported out of India.
Upon the receipt of the information regarding the furnishing of a valid return in FORM
GSTR-3 from the common portal, the system designated by the Customs shall process the
claim for refund and an amount equal to the integrated tax paid in respect of each
shipping bill or bill of export shall be electronically credited to the bank account of the
68 | P a g e
applicant mentioned in his registration particulars and as intimated to the Customs
authorities.
Where the application relates to refund of ITC, the electronic credit ledger shall be
debited by an amount equal to the refund so claimed.
Refund relating to balance in electronic cash ledger would be made through returns
furnished for the relevant tax periods in FORM GSTR 3, 4 and 7
69 | P a g e
DISCLAIMER
This manual is for reference purpose only and to educate the internal stakeholders of the
Company of the key tax compliance aspects under the GST law. This manual should not
be considered as the basis to design any tax policy or contract or take any business
decision on any critical matter unless specific tax opinion/ advise on the subject matter
has been taken by the Company.
This manual should not to be assumed to be an advice or opinion provided by Ernst &
Young LLP
The manual intends to outline various provisions and requirements prescribed under the
Central Goods and Services Tax Act, 2017, the Integrated Goods and Services Tax Act,
2017, and the GST Rules prescribed thereunder. The terms used for the purpose of this
document should be interpreted only in terms with the said legislations or the rules
prescribed therein. The said document should be read in conjunction with the provisions
of the GST Act, Rules etc.
This manual is based on the above mentioned GST Laws and other information available
in public domain as on 28 July 2017. If there is a change, including a change having a
retrospective effect, in the statutory laws or any clarifications/ press release etc issued
by the Government, the comments expressed herein would necessarily have to be re-
evaluated in light of the changes. Ernst & Young LLP is under no obligation to update this
document for any changes notified after the said date unless specifically requested/
agreed with you.
This manual is solely for the information and use of the intended recipient only to whom
this manual is issued by Ernst & Young LLP. The manual should not be used for any other
purpose, or distributed to any other party, without our prior written consent of Ernst &
Young LLP.
Contents in this manual are not binding on the Revenue or any other authorities/
Appellate authorities and there can be no assurance that the Revenue or any other
authorities/ Appellate authorities may not take a contrary position.
No inference should be drawn from the use of the words will, should, may, would, etc
as they relate to the relative strengths of a principle outlined in the document. Each of
the principles described in the document entails certain risks. Tax laws are subject to
interpretation and thus subject to change at any time.
70 | P a g e

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Manual on

Time of Supply ................................................................................................. 11

Place of Supply ................................................................................................ 14

Accounts and Records ...................................................................................... 30

Valuation of Goods and Services ........................................................................ 34

Tax credit eligibility .......................................................................................... 38

Credit register ................................................................................................. 42

Input Service Distributor ................................................................................... 44

GST Returns .................................................................................................... 51

GST Payment ................................................................................................... 58

GST Refund ...................................................................................................... 63

C. Mandatory registration with no turnover limit for following categories of

Engaged in Interstate supply

D. Continuing of existing registrations under GST

Registered Under Status

PAN based 15-digit GSTIN for each State

Provisional ID example for the state of Maharashtra

State Code PAN Entity Code Check

State code numeric code as per Indian Census 2011

Multiple registrations within a State allowed subject to:

G. Procedure in case of Fresh Registration

Application for Fresh Registration

Non-resident taxable person.

Validation of the aforesaid details shall be performed as follows:

Upon verification, a temporary reference number shall be generated and communicated

An acknowledgement for the receipt of application shall be issued electronically in

Sr no Type of Applicant Particulars Applicable Form

I. Amendment of Registration Read with Section 28 of the CGST Act

Sr Particulars Time Limit Applicable Form

Particulars Time of Supply

12(4) &13(4) Time of Supply in case of Time of supply in case of vouchers by a

Proviso to Excess amount received upto Where amount up to Rs 1,000 is

Place of Supply of Services

Advertisement service to government Each of such states in proportion to the value of

Particulars Place of Supply

Service supplied by banking company or

The Purchase order shall contain the following details:

4 GSTIN of the person placing the order

6 GSTIN of the person receiving the goods

10 Details of place of delivery/ supply

B. Goods Receipt Note/ Materials Receipt Note (GRN/MRN)

The GRN/ MRN shall contain the following details:

Sr. No. Particulars

The tax invoice shall contain the following mandatory details:

Sr. No. Particulars

1 Name, address and GSTIN of the supplier

2 Invoice number - consecutive serial number containing only alphabets

4 Name, address and GSTIN of the recipient

8 Description of goods or services

9 Quantity in case of goods or Unique Quantity Code

10 Total value of goods or services

11 Taxable value of goods or services taking into account discount or

12 Rate of tax (CGST, SGST/ UTGST or IGST and cess(if any));

13 Amount of tax charged in respect of taxable goods or services (CGST,

17 Signature or digital signature of the supplier or authorised representative

18 Purchase Order and MRN reference6

Timeline for issuance of tax invoice

Time of issue of invoice in case

General Notified person Contract

The Export invoice shall contain the following mandatory details:

Sr no Corresponding details required under the Revised GST Invoice Rules

1 Name and address of Supplier

6 Date of the invoice