GST Ready Recokner PDF

www.questforexcellence.
in
CA Sumit Jalan
[ACA, B.Com.(H)]
www.questforexcellence.in
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QUEST FOR EXCELLENCE

THE PROFESSIONAL ACADEMY
IDT Customs GST Soft Skills PDP

Business Maths, LR & Statistics
CA Sumit Jalan
Founder and Trainer
+91-901-581-5884
+91-997-126-0430
contact@questforexcellence.in
2/73, Ground Floor, Lalita Park, Near
Gurudwara, Laxmi Nagar – 110 092
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AA Appellate Authority
AAAR Appellate Authority for Advance Ruling
AAR Authority for Advance Ruling
AC (with DC) Assistant Commissioner
AC (with JC) Additional Commissioner
ADG Additional Director General
AOP Association of Persons
AT Appellate Tribunal
BIS Bureau of Indian Standards
BOI Body of Individuals
BoS Bill of Supply
BRC Bank Realization Certificates
CA Chartered Accountant
CAG Comptroller and Auditor General
CBEC Central Board of Excise and Customs
CC Compensation Cess
CCPC Central Consumer Protection Council
CEA Central Excise Act
CENVAT Central Value Added Tax
CEO Chief Executive Officer
CETA Central Excise Tariff Act
CFS Container Freight Station
CG Central Government
CGSTA Central Goods and Services Tax Act
CIN Challan Identification No.
CJ Chief Justice
CKD Completely Knocked Down
CMA Cost and Management Accountant
CPC Civil Procedure Code
CPI Consumer Price Index
CrPC Criminal Procedure Code
CSD Canteen Stores Department
CST Central Sales Tax
CTA Customs Tariff Act
CTP Casual Taxable Person
CVD Countervailing Duty
CWF Consumer Welfare Fund
DC Deputy Commissioner
DD Demand Draft
DG Director General
DGFT Director General of Foreign Trade
Doc. Document
DSC Digital Signature Certificate
DTH Direct to Home
EBN e-Way Bill Number
e-CaL Electronic Cash Ledger
e-CrL Electronic Credit Ledger
ED Excise Duty
EHTP Electronic Hardware Technology Park
ELR Electronic Liability Register
EOU Export Oriented Unit
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EPCGA Export Promotion Capital Goods Authorization

EPFMP Employees' Provident Funds & Miscellaneous Provisions
EPFO Employees’ Provident Fund Organization
ESIC Employees’ State Insurance Corporation
EVC Electronic Verification Code
FA Finance Act
FG Finished Goods
FI Financial Institution
FIFA Fédération Internationale de Football Association
FY Financial Year
GA Governmental Authority
GAAP Generally Accepted Accounting Principles
GOI Government of India
GPRS General Packet Radio Services
GPS Global Positioning System
GST Goods and Services Tax
GSTIN Goods and Services Tax Identification Number
GSTN Goods and Services Tax Number
GSTP Goods and Services Tax Practitioner
GTA Goods Transport Agency
HC High Court
HSN Harmonized System of Nomenclature
HUF Hindu Undivided Family
IBC Insolvency and Bankruptcy Code
ICD Inland Container Depot
IIM Indian Institute of Management
IPC Indian Penal Code
IPR Intellectual Property Rights
IRDAI Insurance Regulatory and Development Authority of India
IS Inputs Stock
ISD Input Service Distributor
ISF Inputs contained in Semi-finished/ Finished goods Stock
IT Information Technology / Income Tax
ITA Income Tax Act
ITC Input Tax Credit
JC Joint Commissioner
LA Local Authority
LLP Limited Liability Partnership
LUT Letter of Undertaking
MEA Ministry of External Affairs
MLA Member of Legislative Assembly
MLC Member of Legislative Council
MP Member of Parliament
MV Market Value
NBFC Non-Banking Financial Company
NCCD National Calamity Contingent Duty
NCVT National Council on Vocational Training
NEFT National Electronic Funds Transfer
NPS National Pension System
NRTP Non-Resident Taxable Person
NSDC National Skill Development Corporation
NTOR Non-Taxable Online Recipient
NTT Non-Taxable Territory
OTC Over The Counter
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OTL Output Tax Liability

OTP One Time Password
PAN Permanent Account Number
PFRDAI Pension Fund Regulatory and Development Authority of India
PIC Person In-Charge
PO Proper Officer
RA Revisional Authority
RBI Reserve Bank of India
RC Registration Certificate
RCM Reverse Charge Mechanism
RFID Radio Frequency Identification Device
RRR Reserve Bank of India Reference Rate
RTGS Real Time Gross Settlement
RTI Right To Information
SAD Special Additional Duty
SCN Show Cause Notice
SCVT State Council on Vocational Training
SEBI Securities and Exchange Board of India
SEZ Special Economic Zone
SFG Semi-Finished Goods
SG State Government
SGSTA State Goods and Services Tax Act
SKD Semi-Knocked Down
SPV Special Purpose Vehicle
SRA Societies Registration Act
SSC Sector Skill Council
ST Service Tax
STEP Science and Technology Entrepreneurship Park
STP Sales Tax Practitioner
SWIFT Society for Worldwide Interbank Financial Telecommunication
TBI Technology Business Incubator
TCS Tax Collected at Source
TDS Tax Deducted at Source
TIN Tax Identification Number
TIP Tax, Interest and Penalty
TRP Tax Return Preparer
TT Taxable Territory
UIN Unique Identity Number
UN United Nations
UQC Unit Quantity Code
UT Union Territory
UTGSTA Union Territory Goods and Services Tax Act
VAT Value Added Tax
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• The idea was first introduced in 2006, with the proposal of implementing GST from 2010.
• Destination based tax on consumption of goods and services.
• Tax on “supply” of goods and/or services.
• Following taxes levied earlier, subsumed under GST
Central Govt. Taxes State Govt. Taxes

• Excise Duty • State VAT/CST
• Additional Excise Duties • Luxury Tax
• Excise Duty (Medicinal & Toilet • Entry Tax & Purchase Tax
Preps) • Entertainment Tax
• Service Tax • Taxes on Advertisements
• CVD & SAD • Taxes on lottery, betting &
• Surcharges and Cesses gambling
• Surcharges and Cesses
• CENVAT/CVD – State VAT set off not possible.
• State VAT – Service Tax set off not possible.

• CST – VAT set off not possible.
• Cascading Effect of Taxes
• Multiplicity of Duties, Taxes and Cesses.
• SAD credit only available to manufacturer of excisable goods
Dual GST system implemented by the virtue of Article 246A and 269A of The Constitution, as
introduced by the Constitution (101st Amendment) Act, 2016, in order to uphold the federalism of
the nation.
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Intra-state Supplies Inter-state

Supplies
For example, a carton manufacturer of Delhi sells his goods worth ₹100 to a dealer in Delhi
itself. Let us say, the Excise Duty on such goods used to be levied at a rate of 12% and the
VAT rate was 5%. In the GST regime, let us say, it falls under the purview of 12% GST,
bifurcated equally between CGST and SGST. Let us calculate the purchase price for the
dealer.
Earlier (Excise + VAT) Now (CGST + SGST)

Value ₹ 100.00 Value ₹ 100.00
Add: Excise Duty (12%) ₹ 12.00 Add: CGST (6%) ₹ 6.00
Value for VAT ₹ 112.00 Add: SGST (6%) ₹ 6.00
Add: VAT (5%) ₹ 5.60 Total ₹112.00
Total ₹ 117.60
What if in our example, the GST rate applicable is 18%?
Earlier (Excise + VAT) Now (CGST + SGST)

Value ₹ 100.00 Value ₹ 100.00
Add: Excise Duty (12%) ₹ 12.00 Add: CGST (9%) ₹ 9.00
Value for VAT ₹ 112.00 Add: SGST (9%) ₹ 9.00
Add: VAT (5%) ₹ 5.60 Total ₹118.00
Total ₹ 117.60
Continuing our first example, let us say the dealer has made a Value Addition of 20% of the
cost to the carton. The tax rates remain the same. He sells the goods to a consumer in Uttar
Pradesh. Let us now calculate the purchase price for the ultimate consumer.
Earlier (CST) Now (IGST)

Purchase Value (excl. ITC ₹ 112.00 Purchase Value (excl. ITC ₹ 100.00
available) available)
Add: Value addition (20%) ₹ 22.40 Add: Value addition (20%) ₹ 20.00
Value for CST ₹ 134.40 Value for GST ₹ 120.00
Add: CST (5%) ₹ 6.72 Add: IGST (12%) ₹ 14.40
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Total ₹ 141.72 Total ₹ 134.40
Transaction Central Government Delhi Government
Supply from Mfr. – Dealer (CGST + SGST) ₹ 6.00 ₹ 6.00

Supply from Dealer – Consumer (IGST) ₹ 2.40
Transfer from Delhi Govt. – Central Govt. ₹ 6.00 ₹ (6.00)
Total ₹ 14.40 ₹ 0.00
• GST Council has been set up, comprising of Union Finance Minister (Chairman), the
Minister of State (Revenue) and the State Finance Ministers, to make recommendations
to the Union and States on various matters like draft laws, rules and notifications,
threshold limits, composition threshold limits, exempted goods and services, rates of tax,
special provisions and such like.
• A SPV called the GSTN has been set up to provide a shared IT infrastructure and services
to the various stakeholders for implementation of GST.
• Central Excise shall continue to be levied on Tobacco and Tobacco Products along with
GST.
• Alcohol for human consumption and the following 5 (“PANCH”) petroleum products have
presently been kept outside the purview of GST:
o Petrol (Motor Spirit)
o Air Turbine Fuel
o Natural Gas
o Crude Oil
o High Speed Diesel
• GST has been enforced nationwide w.e.f. 1 July, 2017.

• The rate structure has been implemented broadly as per the following slab:
o 0% – Food grains and other items from CPI basket.
o 5% – Essential commodities and items of mass consumption.
o 12% and 18% – Standard Rates of GST for the general items at large.
o 28% – White goods etc., which were previously taxed at somewhere around 30-
31% or even more.
o Luxury products and demerit goods, including aerated drinks, pan masala, luxury
cars and tobacco products, which were earlier taxed at much higher rate shall
now be taxed in the 4th slab rate of 28%, but with additional cess being levied
upon them.
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• The aforementioned cess on luxury products and demerit goods, along with the clean
energy cess, jointly shall be used to fund the compensation for revenue loss of the states.
• Buoyancy to the Government Revenue
• Unified National Market
• Make in India
• Prevention of Cascading Effects

• Elimination of Multiplicity of Taxes
• Reduction in average tax burden
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CGSTA, 2017
• Section 7: Scope of Supply
• Section 8: Tax Liability on Composite and Mixed Supply
For a consideration Without consideration (as per Sch. I)

• All forms of supply, such as • Business Assets –
Sale, Transfer, Barter, License, Permanent transfer/disposal
Exchange, Lease, Rental, Disposal if ITC has been availed.
of goods/services • Supply of goods/services between
made or agreed to be made o related persons
by a person o distinct persons
in the course or furtherance of in the course or furtherance of
business. business.
• Importation of service Except gift from an employer to an
o In the course or furtherance employee below a value of ₹50,000
of business in a FY.
o Not in the course or • Supply of goods by –
furtherance of business o principal to agent
o agent to principal
• Importation of service
by a taxable person from
o a related person
o another establishment of the
person outside India
in the course or furtherance of
business.
• Transfer –
o Transfer of title in goods
o Transfer of title in goods under hire-purchase agreement
o Transfer of goods/right in goods/undivided share in goods, without the transfer
of title
• Land and Building –

o Lease, tenancy, easement, licence to occupy land
o Wholly or partly leasing or letting out of building (including commercial,
industrial or residential complex) for business or commerce
• Treatment or process -
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o Any treatment or process applied on another person’s goods
• Transfer of business assets

o Transfer or disposal
whether or not for a consideration.
o Private usage or making available to any person for non-business usage
whether or not for a consideration.
o When the person ceases to become taxable
unless –
▪ The business is transferred as going concern to another person, or
▪ The business is carried on by a personal representative who is deemed
to be a taxable person
• Specific matters to be treated as supply of services –

o Renting of immovable property
o Construction (including addition, alteration etc.)
of a civil structure or its part, building, complex
to be sold for whole or part consideration being received before the completion
or occupancy
o Temporary transfer or permission to use any IPR
o Development, design, enhancement, upgradation etc. of IT software
o Agreeing to refrain from an act
o Transfer of the right to use any goods for any purpose for consideration.
• Composite Supply –
o Works Contract
o Supply of food or any other such article for human consumption or any drink
(other than alcohol)
by way of or as a part of any service
for a consideration
• Specific matters to be treated as supply of goods –

o Supply of goods by any unincorporated AOP or BOI
to its members
for a consideration
• Services by an employee to his employer, with respect to his employment.

• Duties performed by –
o MPs, MLAs, MLCs and such like,
o any person holding a post under The Constitution, or
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o any person as a Chairperson/Member/Director of a body established by

Central/State govt. and who is not deemed as an employee before the
commencement of this clause
• Services by any Court or Tribunal
• Sale of land and, subject to Schedule II, sale of building.
• Services of funeral, burial, crematorium or mortuary, including transportation of the

deceased.
• Actionable claims, other than lottery, betting and gambling
Such notified activities or transactions undertaken by
• The Central Government

• The State Government
• Any local authority
in which they are engaged as public authorities.
Notfn. No.: 14/2017 – CT(R) and 11/2017 – IT(R)
Services by way of any activity in relation to a function entrusted to a Panchayat under article
243G of the Constitution has been notified to be treated neither as a supply of goods nor a
supply of service.
Subject to sub-section (1) and (2), Central/State government may notify certain transactions to
be treated as –
• Only supply of goods

• Only supply of services
Composite Supply Mixed Supply

A composite supply A mixed supply
comprising two or more supplies, comprising two or more supplies
one of which is a principal supply, shall be treated as supply of that particular
shall be treated as a supply of such principal supply
supply. which attracts the highest rate of tax.
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(1) Actionable claim [Sec. 2(1) of CGSTA]: shall have the same meaning as assigned to it
in section 3 of the Transfer of Property Act, 1882.
(2) Agent [Sec. 2(5) of CGSTA]: means a person, including a factor, broker, commission
agent, arhatia, del credere agent, an auctioneer or any other mercantile agent, by
whatever name called, who carries on the business of supply or receipt of goods or
services or both on behalf of another.
(3) Business [Sec. 2(17) of CGSTA]: includes–
(1) any trade, commerce, manufacture, profession, vocation, adventure, wager
or any other similar activity, whether or not it is for a pecuniary benefit;
(2) any activity or transaction in connection with or incidental or ancillary to sub-
clause (a);
(3) any activity or transaction in the nature of sub-clause (a), whether or not
there is volume, frequency, continuity or regularity of such transaction;
(4) supply or acquisition of goods including capital goods and services in
connection with commencement or closure of business;
(5) provision by a club, association, society, or any such body (for a subscription
or any other consideration) of the facilities or benefits to its members;
(6) admission, for a consideration, of persons to any premises;
(7) services supplied by a person as the holder of an office which has been
accepted by him in the course or furtherance of his trade, profession or
vocation;
(8) services provided by a race club by way of totalisator or a licence to book
maker in such club; and
(9) any activity or transaction undertaken by the Central Government, a State
Government or any local authority in which they are engaged as public
authorities.
(4) Capital goods [Sec. 2(19) of CGSTA]: means goods, the value of which is capitalised in
the books of account of the person claiming the input tax credit and which are used
or intended to be used in the course or furtherance of business.
(5) Composite supply [Sec. 2(30) of CGSTA]: means a supply made by a taxable person
to a recipient consisting of two or more taxable supplies of goods or services or both,
or any combination thereof, which are naturally bundled and supplied in conjunction
with each other in the ordinary course of business, one of which is a principal supply;
Illustration— Where goods are packed and transported with insurance, the supply
of goods, packing materials, transport and insurance is a composite supply and
supply of goods is a principal supply.
(6) Consideration [Sec. 2(31) of CGSTA]: in relation to the supply of goods or services or
both includes–
(1) any payment made or to be made, whether in money or otherwise, in respect
of, in response to, or for the inducement of, the supply of goods or services
or both, whether by the recipient or by any other person but shall not include
any subsidy given by the Central Government or a State Government;
(2) the monetary value of any act or forbearance, in respect of, in response to, or
for the inducement of, the supply of goods or services or both, whether by
the recipient or by any other person but shall not include any subsidy given
by the Central Government or a State Government:
Provided that a deposit given in respect of the supply of goods or services or both
shall not be considered as payment made for such supply unless the supplier applies
such deposit as consideration for the said supply.
(7) Distinct persons [Sec. 25(4) and (5) of CGSTA]:
(4) A person who has obtained or is required to obtain more than one
registration, whether in one State or Union territory or more than one State or
Union territory shall, in respect of each such registration, be treated as
distinct persons for the purposes of this Act.
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(5) Where a person who has obtained or is required to obtain registration in a

State or Union territory in respect of an establishment, has an establishment
in another State or Union territory, then such establishments shall be treated
as establishments of distinct persons for the purposes of this Act.
(8) Goods [Sec. 2(52) of CGSTA]: means every kind of movable property other than
money and securities but includes actionable claim, growing crops, grass and things
attached to or forming part of the land which are agreed to be severed before supply
or under a contract of supply
(9) Import of goods [Sec. 2(10) of IGSTA]: with its grammatical variations and cognate
expressions, means bringing goods into India from a place outside India.
(10) Import of services [Sec. 2(11) of IGSTA]: means the supply of any service, where–
(1) the supplier of service is located outside India;
(2) the recipient of service is located in India; and
(3) the place of supply of service is in India
(11) India [Sec. 2(56) of CGSTA]: means the territory of India as referred to in article 1 of
the Constitution, its territorial waters, seabed and sub-soil underlying such waters,
continental shelf, exclusive economic zone or any other maritime zone as referred to
in the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other
Maritime Zones Act, 1976, and the air space above its territory and territorial waters.
(12) Input tax [Sec. 2(62) of CGSTA]: in relation to a registered person, means the central
tax, State tax, integrated tax or Union territory tax charged on any supply of goods or
services or both made to him and includes—
(1) the integrated goods and services tax charged on import of goods;
(2) the tax payable under the provisions of sub-sections (3) and (4) of section 9;
(3) the tax payable under the provisions of sub-sections (3) and (4) of section 5
of the Integrated Goods and Services Tax Act;
of the respective State Goods and Services Tax Act; or
of the Union Territory Goods and Services Tax Act,
but does not include the tax paid under the composition levy.
(13) Local authority [Sec. 2(69) of CGSTA]: means–
(1) a “Panchayat” as defined in clause (d) of article 243 of the Constitution;
(2) a “Municipality” as defined in clause (e) of article 243P of the Constitution;
(3) a Municipal Committee, a Zilla Parishad, a District Board, and any other
authority legally entitled to, or entrusted by the Central Government or any
State Government with the control or management of a municipal or local
fund;
(4) a Cantonment Board as defined in section 3 of the Cantonments Act, 2006;
(5) a Regional Council or a District Council constituted under the Sixth Schedule
to the Constitution;
(6) a Development Board constituted under article 371 of the Constitution; or
(7) a Regional Council constituted under article 371A of the Constitution.
(14) Mixed supply [Sec. 2(74) of CGSTA]: means two or more individual supplies of goods
or services, or any combination thereof, made in conjunction with each other by a
taxable person for a single price where such supply does not constitute a composite
supply.
Illustration— A supply of a package consisting of canned foods, sweets, chocolates,
cakes, dry fruits, aerated drinks and fruit juices when supplied for a single price is a
mixed supply. Each of these items can be supplied separately and is not dependent
on any other. It shall not be a mixed supply if these items are supplied separately.
(15) Money [Sec. 2(75) of CGSTA]: means the Indian legal tender or any foreign currency,
cheque, promissory note, bill of exchange, letter of credit, draft, pay order, traveller
cheque, money order, postal or electronic remittance or any other instrument
recognised by the Reserve Bank of India when used as a consideration to settle an
obligation or exchange with Indian legal tender of another denomination but shall not
include any currency that is held for its numismatic value.
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(16) Person [Sec. 2(84) of CGSTA]: includes—

(1) an individual;
(2) a Hindu Undivided Family;
(3) a company;
(4) a firm;
(5) a Limited Liability Partnership;
(6) an association of persons or a body of individuals, whether incorporated or
not, in India or outside India;
(7) any corporation established by or under any Central Act, State Act or
Provincial Act or a Government company as defined in clause (45) of section
2 of the Companies Act, 2013;
(8) any body corporate incorporated by or under the laws of a country outside
India;
(9) a co-operative society registered under any law relating to co-operative
societies;
(10) a local authority;
(11) Central Government or a State Government;
(12) society as defined under the Societies Registration Act, 1860;
(13) trust; and
(14) every artificial juridical person, not falling within any of the above.
• Principal supply [Sec. 2(90) of CGSTA]: means the supply of goods or services which
constitutes the predominant element of a composite supply and to which any other
supply forming part of that composite supply is ancillary.
• Recipient [Sec. 2(93) of CGSTA]: of supply of goods or services or both, means—
(a) where a consideration is payable for the supply of goods or services or both,
the person who is liable to pay that consideration;
(b) where no consideration is payable for the supply of goods, the person to
whom the goods are delivered or made available, or to whom possession or
use of the goods is given or made available; and
(c) where no consideration is payable for the supply of a service, the person to
whom the service is rendered,
and any reference to a person to whom a supply is made shall be construed as a
reference to the recipient of the supply and shall include an agent acting as such on
behalf of the recipient in relation to the goods or services or both supplied.
• Registered person [Sec. 2(94) of CGSTA]: means a person who is registered under
section 25 but does not include a person having a Unique Identity Number.
• Related persons [Explanation to Sec. 15 of CGSTA]: persons shall be deemed to be
“related persons” if–
(i) such persons are officers or directors of one another’s businesses;
(ii) such persons are legally recognised partners in business;
(iii) such persons are employer and employee;
(iv) any person directly or indirectly owns, controls or holds twenty-five per
cent. or more of the outstanding voting stock or shares of both of them;
(v) one of them directly or indirectly controls the other;
(vi) both of them are directly or indirectly controlled by a third person;
(vii) together they directly or indirectly control a third person; or
(viii) they are members of the same family.
Also, persons who are associated in the business of one another in that one is the
sole agent or sole distributor or sole concessionaire, howsoever described, of the
other, shall be deemed to be related.
• Securities [Sec. 2(101) of CGSTA]: shall have the same meaning as assigned to it in
clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956.
• Services [Sec. 2(102) of CGSTA]: means anything other than goods, money and
securities but includes activities relating to the use of money or its conversion by
cash or by any other mode, from one form, currency or denomination, to another
form, currency or denomination for which a separate consideration is charged.
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• Supplier [Sec. 2(105) of CGSTA]: in relation to any goods or services or both, shall
mean the person supplying the said goods or services or both and shall include an
agent acting as such on behalf of such supplier in relation to the goods or services or
both supplied.
• Taxable person [Sec. 2(107) of CGSTA]: means a person who is registered or liable to
be registered under section 22 or section 24.
• Works contract [Sec. 2(119) of CGSTA]: means a contract for building, construction,
fabrication, completion, erection, installation, fitting out, improvement, modification,
repair, maintenance, renovation, alteration or commissioning of any immovable
property wherein transfer of property in goods (whether as goods or in some other
form) is involved in the execution of such contract.
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CGSTA, 2017
• Section 1: Extent of the Act
IGSTA, 2017
• Section 1: Extent of the Act
• Section 7: Inter-state Supply
• Section 8: Intra-state Supply
• Section 9: Supplies in territorial waters
• Section 10: Place of Supply of Goods (except Export/Import)
• Section 11: Place of Supply of Goods (Export/Import)
• Section 12: Place of Supply of Services (Supplier and Recipient in India)
• Section 13: Place of Supply of Services (Supplier/Recipient outside India)
It extends to the whole of India except the state of Jammu and Kashmir.
NOTE: The said Acts have been extended to Jammu & Kashmir w.e.f. 8 July, 2017, by the virtue
of Section 2 of the CGST (Extension to J&K) Act, 2017 and the IGST (Extension to J&K) Act, 2017.
Location of Supplier Place of Supply

State X State Y
Union Territory X Union Territory Y
State X Union Territory Y
Union Territory Y State X
• Supply of goods (till they cross the customs frontiers)/services

imported into the territory of India
shall be treated to be inter-state supply.
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• Supply of goods/services
Supplier – India To or by In the taxable territory

Place of Supply – Outside SEZ developer/SEZ unit o Not an intra-state
India supply
o Not covered
anywhere else in
Sec 7
Location of Supplier Place of Supply

State X State X
Union Territory Y Union Territory Y
Excluding – Supply of
Goods/services to/by Goods imported into the Goods to an international
SEZ developer/SEZ unit territory of India till they tourist
cross the customs frontiers
• Explanation 1: Where a person has

Establishment 1 Establishment 2
India Outside India

State/UT X State/UT Y
State/UT X State/UT X (different business vertical)
they shall be treated as establishment of distinct persons.
• Explanation 2: Branch/Agency/Representational Office shall be treated as establishment
• Location of supplier is in territorial waters, then such location

OR
• Place of supply is in territorial waters, then such place
shall be deemed to be in the coastal state/UT
where the nearest point of appropriate baseline is located.
• Where supply involves movement of goods

by the supplier/recipient/any third person
- Location of the Goods at the time of delivery to the recipient
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• Where supply does not involve movement of goods

by the supplier/recipient
- Location of the Goods at the time of delivery to the recipient
• Where goods are delivered
to a recipient or any other person on the direction of a 3rd person
by way of transfer of documents of title of goods or otherwise,
it shall be deemed that the said 3rd person has received the goods
- Principal Place of Business of the 3rd person
• Where the goods are assembled or installed at site
- The place of installation or assembly
• Where goods are supplied
on board a conveyance (vessel/aircraft/train/motor vehicle)
- The location at which such goods are taken on board
• Goods imported into India
- Location of the importer
• Goods exported from India
- Location outside India
(2) General Provision –

Except the services specified in sub-section (3) – (14)
Supply made to Place of Supply
A registered person - Location of the recipient

- Location of the recipient
Any other person where address on record exists
- Location of supplier in other cases
(3) Immovable Property –

Nature of Supply
a) Services provided by architects, interior b) Lodging accommodation by a hotel, inn,

decorators, engineers, estate agents, grant guesthouse, homestay, campsite, houseboat
of rights to use the property and such like or any other vessel
c) Accommodation in any immovable d) Any services ancillary to the other 3
property for organising any marriage or
reception, official, social, cultural and other
such functions
- Location at which the immovable property/boat/vessel is located

or intended to be located
• If the location of immovable property/boat/vessel is located or intended to be located

outside India
- Location of recipient
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• Where the immovable property/boat/vessel is located in

more than one state or UT,
the supply of service shall be treated as made in each state
in proportion to the value for services separately collected or determined in terms of
the contract/agreement entered into
or any other prescribed basis in the absence of such contract
(4)
Nature of Supply Place of Supply
Restaurant and Catering

Personal Grooming
Fitness - Location where the services are actually
performed
Beauty treatment
Heath Services (including plastic/cosmetic
surgery)
(5) Services in relation to training and performance appraisal to –

o a registered person
- Location of such person
o any other person
- Location where the services are actually performed
(6)
Admission to a… Place of Supply
Cultural Event
Artistic Event
Sporting Event
Scientific Event - Place where the event is held
OR
Educational Event - Place where the park is located
Entertainment Event
Amusement Park
Any other place and ancillary services
(7) Organization of an event (cultural, educational etc.) including services in relation to a

conference, fair, exhibition etc.
OR
Ancillary services
OR
Assigning sponsorship to such event
o To a registered person
(i) To any other person
21
- Place where the event is actually held if it is in India

OR
- Location of the recipient if the event is held outside India
• Where the event is held in more than one state or UT,
and a consolidated amount is charged
the place of supply shall be taken as being in each state/UT
(8) Services by way of transportation of goods, including mail or courier to –
o any other person
- Location where the goods are handed over FOR transportation
(9) Passenger transportation service to –
o any other person
- Location where the passenger embarks on the conveyance for a continuous journey
• Where the right to passage is given for future use
AND
the point of embarkation is not known at that time
- As per Sub-Section (2)
NOTE: Return journey shall be treated as separate journey, even if the right to passage
for onward and return journey is issued at the same time.
(10) Where services are supplied

on board a conveyance (vessel/aircraft/train/motor vehicle)
- The location of first scheduled point of departure
(11) Telecommunication services including
(a) Data transfer
(b) Broadcasting
(c) Cable
(d) DTH
Telecommunication Services
Fixed communication Postpaid mobile
line/ Leased Circuit/ connection for Prepaid mobile connection for telecom and
Cable or Dish telecom and internet internet services and DTH Any other case
Antenna services
Location of billing Address of the If address not

Location where it is Through a selling By any person to the
address of the recipient as per available, location of
installed agent or distributor final subscriber
recipient on record records the supplier
Location of receipt of
Address of the selling payment or sale of
agent on record voucher
• Where the address of the recipient is not available in the records

- Location of the supplier
22
• Where the prepaid service is availed through internet banking or any other electronic
mode of payment
- Location of the recipient on the record
• Where the leased circuit is installed in more than one state or UT,
and a consolidated amount is charged
the place of supply shall be taken as being in each state/UT
(12) Banking and other financial services, including stock broking services
o Location of recipient available on the records
o Location of recipient not available on the records
(13) Insurance Services
o Location of recipient available on the records
o Location of recipient not available on the records
(14) Advertisement services to
o The Central/State Government
o A statutory body
o A local authority
meant for the states/UTs identified in the contract/agreement
shall be taken as being in each state/UT
and the value of such supplies specific to each state/UT shall be
in proportion to the amount attributable to dissemination service in the respective
states/UTs
determined in terms of the contract/agreement entered into
(2) General Provision –

Except the services specified in sub-section (3) – (13)
Location of recipient Place of Supply
Available - Location of the recipient

Not available in ordinary course of business - Location of the supplier
(3) (a)
o In respect of goods which are required to be made physically available by the
recipient to the supplier or his order
- Location where the services are performed
o When aforementioned service is provided from a remote location through
electronic means
- Location where goods are situated at that time
NOTE: This clause shall not apply in case where goods are temporarily imported for
repairs and then exported without using in India
23
(b) Services supplied to an individual or someone on his behalf

which require the physical presence of such individual
with the supplier for the service.
- Location where the services are performed
(4) Immovable property –
o Services provided by architects, interior decorators, engineers, estate agents,
grant of rights to use the property and such like
o Lodging accommodation by a hotel, inn, guesthouse, club, campsite
- Location where the immovable property is located or intended
(5) Admission to/Organization of –
o Cultural/Artistic/Sporting/Scientific/Educational etc.
o Conference/Celebration/Exhibition/Fair etc.
and ancillary services
- Location where the event is held
(6) When services as mentioned in (3), (4) or (5) is supplied at more than one location,
including a location in the taxable territory
- Location in the taxable territory
(7) When services as mentioned in (3), (4) or (5) is supplied in more than one state/UT,
the supply of service shall be treated as made in each state
or any other prescribed basis in the absence of such contract.
(8)
Nature of Supply Place of Supply
Services supplied by a bank, financial

institution or NBFC to its account holders
Intermediary services
- Location of the supplier of service
Hiring of means of transport upto a period of 1
month
Include – Yachts
Exclude – Aircrafts and vessels
(9) Transportation of goods

Exclude – Mail or courier
- Place of destination of such goods
(10) Transportation of passengers
- Place where the passenger embarks for a continuous journey
(11) Services provided on board a conveyance during passenger transportation
Include - services intended to be consumed wholly or substantially while on board
- The first scheduled point of departure
(12) OIDAR – Shall be covered in the next chapter
(13) Power to Government to notify the place of supply for any service
to be the place of effective use and enjoyment of the service
for preventing double/non-taxation
or for uniform application of rules.
24
• Address on record [Sec. 2(3) of CGSTA]: means the address of the recipient as
available in the records of the supplier.
• Business vertical [Sec. 2(18) of CGSTA]: means a distinguishable component of an
enterprise that is engaged in the supply of individual goods or services or a group of
related goods or services which is subject to risks and returns that are different from
those of the other business verticals.
Explanation– For the purposes of this clause, factors that should be considered in
determining whether goods or services are related include–
(a) the nature of the goods or services;
(b) the nature of the production processes;
(c) the type or class of customers for the goods or services;
(d) the methods used to distribute the goods or supply of services; and
(e) the nature of regulatory environment (wherever applicable), including
banking, insurance, or public utilities.
• Continuous journey [Sec. 2(3) of IGSTA]: means a journey for which a single or more
than one ticket or invoice is issued at the same time, either by a single supplier of
service or through an agent acting on behalf of more than one supplier of service,
and which involves no stopover between any of the legs of the journey for which
one or more separate tickets or invoices are issued.
Explanation– For the purposes of this clause, the term “stopover” means a place
where a passenger can disembark either to transfer to another conveyance or break
his journey for a certain period in order to resume it at a later point of time.
• Conveyance [Sec. 2(34) of CGSTA]: includes a vessel, an aircraft and a vehicle.
• Customs frontiers of India [Sec. 2(4) of IGSTA]: means the limits of a customs area as
defined in section 2 of the Customs Act, 1962.
• Document [Sec. 2(41) of CGSTA]: includes written or printed record of any sort and
electronic record as defined in clause (t) of section 2 of the Information Technology
Act, 2000.
• Fixed establishment [Sec. 2(50) of CGSTA and Sec. 2(7) of IGSTA]: means a place
(other than the registered place of business) which is characterised by a sufficient
degree of permanence and suitable structure in terms of human and technical
resources to supply services, or to receive and use services for its own needs.
• Intermediary [Sec. 2(13) of IGSTA]: means a broker, an agent or any other person, by
whatever name called, who arranges or facilitates the supply of goods or services or
both, or securities, between two or more persons, but does not include a person
who supplies such goods or services or both or securities on his own account.
• Location of the recipient of services [Sec. 2(70) of CGSTA and Sec. 2(14) of IGSTA]:
means—
(a) where a supply is received at a place of business for which the registration
has been obtained, the location of such place of business;
(b) where a supply is received at a place other than the place of business for
which registration has been obtained (a fixed establishment elsewhere), the
location of such fixed establishment;
(c) where a supply is received at more than one establishment, whether the
place of business or fixed establishment, the location of the establishment
most directly concerned with the receipt of the supply; and
(d) in absence of such places, the location of the usual place of residence of the
recipient
• Location of the supplier of services [Sec. 2(71) of CGSTA and Sec. 2(15) of IGSTA]:
means—
(a) where a supply is made from a place of business for which the registration
has been obtained, the location of such place of business;
25
(b) where a supply is made from a place other than the place of business for
which registration has been obtained (a fixed establishment elsewhere), the
location of such fixed establishment;
(c) where a supply is made from more than one establishment, whether the
place of business or fixed establishment, the location of the establishment
most directly concerned with the provisions of the supply; and
(d) in absence of such places, the location of the usual place of residence of the
supplier.
• Motor vehicle [Sec. 2(76) of CGSTA]: shall have the same meaning as assigned to it in
clause (28) of section 2 of the Motor Vehicles Act, 1988.
• Other territory [Sec. 2(81) of CGSTA]: includes territories other than those comprising
in a State and those referred to in sub-clauses (a) to (e) of clause (114).
• Special economic zone [Sec. 2(19) of IGSTA]: shall have the same meaning as
assigned to it in clause (za) of section 2 of the Special Economic Zones Act, 2005.
• Special economic zone developer [Sec. 2(20) of IGSTA]: shall have the same meaning
as assigned to it in clause (g) of section 2 of the Special Economic Zones Act, 2005
and includes an Authority as defined in clause (d) and a Co-Developer as defined in
clause (f) of section 2 of the said Act.
• Union territory [Sec. 2(114) of CGSTA]: means the territory of—
(a) the Andaman and Nicobar Islands;
(b) Lakshadweep;
(c) Dadra and Nagar Haveli;
(d) Daman and Diu;
(e) Chandigarh; and
(f) other territory.
Explanation– For the purposes of this Act, each of the territories specified in sub-
clauses (a) to (f) shall be considered to be a separate Union territory.
• Place of business [Sec. 2(85) of CGSTA]: includes–
(a) a place from where the business is ordinarily carried on, and includes a
warehouse, a godown or any other place where a taxable person stores his
goods, supplies or receives goods or services or both; or
(b) a place where a taxable person maintains his books of account; or
(c) a place where a taxable person is engaged in business through an agent, by
whatever name called.
• Principal place of business [Sec. 2(89) of CGSTA]: means the place of business
specified as the principal place of business in the certificate of registration.
• State [Sec. 2(103) of CGSTA]: includes a Union territory with Legislature.
• Telecommunication service [Sec. 2(110) of CGSTA]: means service of any description
(including electronic mail, voice mail, data services, audio text services, video text
services, radio paging and cellular mobile telephone services) which is made
available to users by means of any transmission or reception of signs, signals, writing,
images and sounds or intelligence of any nature, by wire, radio, visual or other
electromagnetic means.
• Usual place of residence [Sec. 2(113)]: means–
(a) in case of an individual, the place where he ordinarily resides;
(b) in other cases, the place where the person is incorporated or otherwise
legally constituted
26
IGSTA, 2017
• Section 14: Special provision for payment of tax by a supplier of OIDAR services
(xi) Every person

supplying OIDAR services
from a place outside India
to a person in India, other than a registered person
(1) Any person supplying OIDAR services from a place outside India to a NTOR shall
submit a registration application in FORM GST REG – 10.
(2) The applicant shall be granted registration in FORM GST REG-06 subject to notified
conditions and restrictions.
(12) The place of supply of OIDAR services shall be the location of the recipient.
• Recipient shall be deemed to be located in the taxable territory if any 2 of the following
non-contradictory conditions are satisfied –
(i) the location of address presented by the recipient of services through internet is
in the taxable territory;
(ii) the credit card/debit card/store value card/charge card/smart card/any other
card by which the recipient of services settles payment has been issued in the
taxable territory;
(iii) the billing address of the recipient of services is in the taxable territory;
(iv) the IP address of the device used by the recipient of services is in the taxable
territory;
(v) the bank of the recipient of services in which the account used for payment is
maintained is in the taxable territory;
(vi) the country code of the SIM card used by the recipient of services is of taxable
territory;
(vii) the location of the fixed land line through which the service is received by the
recipient is in the taxable territory.
(1) When
supplier – any person located in NTT
27
recipient – non-taxable online recipient

then, tax payment liability – Supplier
• However, if an intermediary located outside India
arranges or facilitates supply of such service
to a non-taxable online recipient in India,
then the intermediary shall be deemed to be the supplier,
except when he satisfies the following conditions:
o The invoice or customer’s bill or receipt issued by such intermediary taking part
in the supply clearly identifies the service in question and its supplier in NTT
o The intermediary involved in the supply does not authorise the charge to the
customer or take part in its charge.
o The intermediary involved in the supply does not authorise delivery
o The general terms and conditions of the supply are not set by the intermediary
involved in the supply but by the supplier of services
(2) For the payment of IGST,

o The supplier shall take a single registration under the SRS to be notified by the
Government.
o In case there is a person in the TT representing such overseas supplier in the TT
for any purpose, such person (representative in India) shall get registered and
pay IGST on behalf of the supplier.
o In case the overseas supplier does not have a physical presence or does not
have a representative for any purpose in the TT, he may appoint a person in the
TT.
Every registered person providing OIDAR services from a place outside India to a NTOR shall
file return in FORM GSTR-5A on or before 20th day of the succeeding calendar month.
Notfn. No.: 2/2017-IT

The CG has notified the Principal Commissioner of CGST, Bengaluru West and his
subordinate officers as the officers empowered to grant registration to OIDAR service
suppliers located in a NTT, whose services are received by a NTOR.
• Website hosting and webpage hosting

• Accessing or downloading software (including procurement/ accountancy
programmes and anti-virus software) plus updates
• Accessing or downloading desktop themes
• Subscription to online newspapers and journals
• Use of search engines and Internet directories
• Accessing or downloading of music on to computers and mobile phones
• Automated distance teaching
28
• Non-taxable online recipient Sec. 2(16) of IGSTA]: means any Government, local
authority, governmental authority, an individual or any other person not registered
and receiving online information and database access or retrieval services in relation
to any purpose other than commerce, industry or any other business or profession,
located in taxable territory.
Explanation– For the purposes of this clause, the expression “governmental
authority” means an authority or a board or any other body–
(i) set up by an Act of Parliament or a State Legislature; or
(ii) established by any Government,
with ninety per cent. or more participation by way of equity or control, to carry out
any function entrusted to a municipality under article 243W of the Constitution.
• Non-taxable territory [Sec. 2(79) of CGSTA]: means the territory which is outside the
taxable territory.
• OIDAR services [Sec. 2(17) of IGSTA]: means services whose delivery is mediated by
information technology over the internet or an electronic network and the nature of
which renders their supply essentially automated and involving minimal human
intervention and impossible to ensure in the absence of information technology and
includes electronic services such as–
(i) advertising on the internet;
(ii) providing cloud services;
(iii) provision of e-books, movie, music, software and other intangibles through
telecommunication networks or internet;
(iv) providing data or information, retrievable or otherwise, to any person in
electronic form through a computer network;
(v) online supplies of digital content (movies, television shows, music and the
like);
(vi) digital data storage; and
(vii) online gaming.
• Return [Sec. 2(97) of CGSTA]: means any return prescribed or otherwise required to
be furnished by or under this Act or the rules made thereunder.
29
CGSTA, 2017
• Section 9: Levy and Collection
IGSTA, 2017
• Section 5: Levy and Collection
(1) CGST (IGST) shall be levied

on all intra (inter)-state supplies of goods/services
except on alcohol for human consumption
on the value determined u/s 15 of the CGSTA, 2017,
not exceeding 20% (40%)
GST Council Government Taxable Person
Notifies and Pays

Recommends
Collects
However, the IGST on imported goods

shall be levied and collected
o as per Sec. 3 of the CTA, 1975
o on the value as determined under the said Act
o at the point when Custom Duty is levied u/s 12 of the CA, 1962
The GST rates applicable on supplies have been notified vide
Notfn. No.: 01/2017 – CT(R) and 01/2017 – IT(R), for goods,
and
Notfn. No.: 11/2017 – CT(R) and 08/2017 – IT(R), for services,
as amended from time to time.
Circular No. 11/11/2017-GST

Clarification on taxability of printing contracts
Requests have been received to clarify whether supply of books, pamphlets,

brochures, envelopes, annual reports, leaflets, cartons, boxes etc., printed with
design, logo, name, address or other contents supplied by the recipient of such
supplies, would constitute supply of goods falling under Chapter 48 or 49 of the First
Schedule to the Customs Tariff Act, 1975 (51of 1975) or supply of services falling
under heading 9989 of the scheme of classification of services annexed to
notification No. 11/2017-CT(R).
2. In the above context, it is clarified that supply of books, pamphlets, brochures,

envelopes, annual reports, leaflets, cartons, boxes etc. printed with logo, design,
name, address or other contents supplied by the recipient of such printed goods, are
composite supplies and the question, whether such supplies constitute supply of
30
goods or services would be determined on the basis of what constitutes the principal
supply.
3. Principal supply has been defined in Section 2(90) of the Central Goods and Services
Tax Act as supply of goods or services which constitutes the predominant element of
a composite supply and to which any other supply forming part of that composite
supply is ancillary.
4. In the case of printing of books, pamphlets, brochures, annual reports, and the like,
where only content is supplied by the publisher or the person who owns the usage
rights to the intangible inputs while the physical inputs including paper used for
printing belong to the printer, supply of printing [of the content supplied by the
recipient of supply] is the principal supply and therefore such supplies would
constitute supply of service falling under heading 9989 of the scheme of
classification of services. Circular No. 11/11/2017-GST
5. In case of supply of printed envelopes, letter cards, printed boxes, tissues, napkins,
wall paper etc. falling under Chapter 48 or 49, printed with design, logo etc. supplied
by the recipient of goods but made using physical inputs including paper belonging
to the printer, predominant supply is that of goods and the supply of printing of the
content [supplied by the recipient of supply] is ancillary to the principal supply of
goods and therefore such supplies would constitute supply of goods falling under
respective headings of Chapter 48 or 49 of the Customs Tariff.
6. Difficulty if any, in the implementation of the circular should be brought to the notice
of the Board. Hindi version would follow.

Clarification regarding applicability of GST on the superior kerosene oil [SKO] retained for
the manufacture of Linear Alkyl Benzene [LAB]
Briefly stated, requests have been received related to applicability of GST on the
superior kerosene oil [SKO] retained for the manufacture of Linear Alkyl Benzene
[LAB].
2. In this context, LAB manufacturers have stated that they receive superior Kerosene
oil (SKO) from, a refinery, say, Indian Oil Corporation (IOC). They extract n-Paraffin
(C9-C13 hydrocarbons) from SKO and return back the remaining of SKO to the
refinery. In this context, the issue has arisen as to whether in this transaction GST
would be levied on SKO sent by IOC for extracting n-paraffin or only on the n-
paraffin quantity extracted by the LAB manufactures. Further, doubt have also been
raised as to whether the return of remaining Kerosene by LAB manufactures would
separately attract GST in such transaction.
3. The matter was examined. LAB manufacturers generally receive superior kerosene
oil [SKO] from a refinery through a dedicated pipeline; on an average about 15 to 17%
of the total quantity of SKO received from refinery is retained and balance quantity
ranging from 83%- 85% is returned back to refinery. The retained SKO is towards
extraction of Normal Paraffin, which is used in the manufacturing of LAB. In this
transaction consideration is paid by LAB manufactures only on the quantity of
retained SKO (n-paraffin).
4. In this context, the GST Council in its 22nd meeting held on 06.10.2017 discussed the
issue and recommended for issuance of a clarification that in this transaction GST will
be payable by the refinery on the value of net quantity of superior kerosene oil (SKO)
retained for the manufacture of Linear Alkyl Benzene (LAB).
31
5. Accordingly, it is here by clarified that, in aforesaid case, GST will be payable by the
refinery only on the net quantity of superior kerosene oil (SKO) retained for the
manufacture Circular No. 12/12/2017-GST of Linear Alkyl Benzene (LAB). Though,
refinery would be liable to pay GST on such returned quantity of SKO, when the
same is supplied by it to any other person.
6. This clarification is issued in the context of Goods & Service Tax (GST) law only and
past issues, if any, will be dealt in accordance with the law prevailing at the material
time.

Clarification on Unstitched Salwar Suits
Doubts have been raised regarding the classification of Cut pieces of Fabrics under
GST.
2. It has been represented that before becoming readymade articles or an apparel, the
fabric is cut from bundles or thans and sold in that unstitched state. The consumers
buy these sets or pieces and get it stitched to their shape and size.
3. Fabrics are classifiable under chapters 50 to 55 of the First Schedule to the Customs
Tariff Act, 1975 on the basis of their constituent materials and attract a uniform GST
rate of 5% with no refund of the unutilized input tax credit.
4. Mere cutting and packing of fabrics into pieces of different lengths from bundles or
thans, will not change the nature of these goods and such pieces of fabrics would
continue to be classifiable under the respective heading as the fabric and attract the
5% GST rate.
5. It is requested that suitable trade notices may be issued to publicize the contents of
this circular.
(2) The GST on the following 5 petroleum products

shall be levied as and when the Government notifies:
o Petrol (motor spirit)
o Aviation Turbine Fuel
o Natural Gas
o Crude petroleum
o High Speed Diesel
(3) The Government may notify

categories of supply of goods/services
the GST on which shall be paid on reverse charge basis
by the recipient of such goods or services
and all the provisions of the Acts
shall apply to the recipient
as if he is the person liable to pay the tax on such supplies
Notfn. No.: 04/2017 – CT(R) and IT(R)
Reverse charge is applicable on supplies of following goods -
Who What To whom
32
Cashew nuts, not shelled or

peeled
Agriculturist Any registered person
Tendu leaves
Tobacco leaves
Any person who
manufactures silk yarn from
Silk yarn Any registered person
raw silk or silk worm
cocoons
Lottery distributor or selling
SG/UT/LA Supply of lottery
agent
Used vehicles, seized and
confiscated goods, old and
CG/SG/UT/LA Any registered person
used goods, waste and
scrap

Issue related to classification and GST rate on lottery tickets
Supply of lottery has been treated as supply of goods under the Central Goods and
Services Tax (CGST) Act, 2017.
2. Accordingly, based on the recommendation of the GST Council, the GST rate for
supply of lottery has been notified under relevant GST rate notification relating to
CGST/IGST/UTGST/SGST. However, entries in the respective notifications mention
classification for lottery as “-”.
3. In this connection, references have been received, inter-alia, stating that due to
discrepancy in code allotted, i.e., lottery is defined as goods but code allotted for
lottery is under services, the assessees are not able to upload return or deposit tax in
time.
4. The matter has been examined. It should be noted that the process of filing return is
linked with rate of tax specified for supply. Further, there is complete clarity about
rate of tax on lotteries. As mentioned above, in GST, lottery is goods and the
classification indicated in relevant notification for lottery is “-”, which means any
chapter.
5. That being so, it is clarified that the classification for lottery in respective CGST, IGST,
UTGST and SGST notifications shall be ‘Any Chapter’ of the First Schedule to the
Customs Tariff Act, 1975 (51 of 1975) and tax on lottery should be paid accordingly at
prescribed rates, 12% or 28%, as the case may be.
Notfn. No.: 13/2017 – CT(R) and 10/2017 - IT(R)

Reverse charge is applicable on supplies of following services -
Who What To whom
a) any factory regd.
under the FA,
1948; or
Goods Transport
b) any society
Agency (GTA), who has
Transportation of goods by road registered under
not paid GST at the rate
the SRA, 1860 or
of 12%
under any other
law for the time
being in force in
33
any part of India;

or
c) any co-operative
society
established by or
under any law; or
d) any person
registered under
the CGSTA/
IGSTA/ SGSTA/
UTGSTA; or
e) any body
corporate
established, by or
under any law; or
f) any partnership
firm whether
registered or not
under any law
including
association of
persons and LLP;
or
g) any CTP.
located in the TT, i.e., the
Payer
An individual advocate Any business entity
including a senior located in the TT, who is
Legal services
advocate litigant, applicant or
A firm of advocates petitioner, as the case
An Arbitral Tribunal Any service may be
Any body corporate or
Any person Sponsorship partnership firm located
in the TT
Any service excluding-
(1) renting of immovable
property, and
(2) services specified below-
(i) services by the
Department of
Posts by way of
o speed post,
o express
parcel
post, Any business entity
CG/SG/UT/LA
o agency located in the TT
services
and
o life
insurance,
provided to a
person other than
CG/SG/UT/local
authority;
(ii) services in relation
to an aircraft or a
34
vessel, inside or
outside the
precincts of a port
or an airport;
(iii) transport of
goods/passengers.
The company or a body
A director of a company
corporate located in the
or a body corporate
TT
Any person carrying on
Any service
An insurance agent insurance business
located in the TT
A bank/FI/NBFC located
A recovery agent
in the TT
Transfer or permitting the use or
Author or music enjoyment of a copyright covered
A publisher, music
composer, u/s 13(1)(a) of the Copyright Act,
company, producer or
photographer, artist or 1957 relating to original literary,
the like, located in the TT
the like dramatic, musical or artistic
works
Members of Overseeing
Committee constituted Any service RBI
by the RBI
Notfn. No.: 10/2017 – IT(R)
Reverse charge is applicable on supplies of following services -
Who What To whom
Any person located in the
Any service
TT other than NTOR
Transportation of goods by
A person located in a NTT a vessel from a place
outside India up to the Importer located in the TT
customs station of
clearance in India
(4) In case of supply of taxable goods/services

by an un-registered supplier
to a registered recipient
the GST on such supply shall be paid on reverse charge basis
by the recipient
shall apply to him
Notfn. No.: 08/2017 – CT(R)
Intra-state supplies of goods/services received by a registered person from any un-
registered supplier, has been exempted from the GST leviable thereon u/s 9(4). [As
amended by Notfn. No.: 38/2017 – CT(R)]
Notfn. No.: 09/2017 – CT(R)

Supplies of goods/services received by a deductor u/s 51, from an un-registered supplier,
shall be exempt from the GST leviable thereon u/s 9(4), subject to the condition that the
deductor is not liable to be registered otherwise than u/s 24(vi).
Notfn. No.: 10/2017 – CT(R)
35
Supplies of second hand goods received by a registered person, dealing in buying and
selling of second hand goods and who pays the GST on the value of outward supply of
such second hand goods as determined u/r 32(5) of the CGSTR, 2017, from an un-registered
supplier, shall be exempt from the GST leviable thereon u/s 9(4).
According to , where a person dealing in buying and selling of second hand
goods makes a taxable supply of such goods, on purchase of which he has not availed any
ITC, the value of such supply shall be higher of -
• zero, or
• difference between the selling price and purchase price
(5) The Government may notify

categories of supply of services
the GST on which shall be paid by the e-commerce operator
if such services are supplied through it
shall apply to the e-commerce operator
• In case the e-commerce operator does not have a physical presence in the TT,
any representative of such operator in the TT
shall be liable to pay GST.
• In case the e-commerce operator does not have a physical presence in the TT,
and also nobody to represent the operator in TT,
he shall appoint a person for the purpose of paying GST.
GST on the supply of following services shall be paid by the e-commerce operator –
(i) Transportation of passengers by a radio-taxi, motorcab, maxicab and motor cycle
NOTE: “radio taxi” means a taxi including a radio cab, by whatever name called,
which is in two-way radio communication with a central control office and is
enabled for tracking using GPS or GPRS
(ii) Providing accommodation in hotels, inns, guest houses, clubs, campsites or other
commercial places meant for residential or lodging purposes, except where the
person supplying such service through e-commerce operator is liable for
registration u/s 22(1).
(iii) House-keeping, such as plumbing, carpentering etc, except where the person
supplying such service through e-commerce operator is liable for registration u/s
22(1).

GST @ 0.1% shall be levied on the supply of taxable goods by a registered supplier to a
registered recipient for export, subject to fulfilment of the following conditions:
(i) the supplier shall supply the goods on a tax invoice;
(ii) the recipient shall export the said goods within 90 days of the invoice date;
(iii) the recipient shall indicate the GSTIN of the supplier and the tax invoice number
issued by the supplier in respect of the said goods in the shipping bill or bill of
export, as the case may be;
(iv) the recipient shall be registered with an Export Promotion Council or a Commodity
Board recognised by the Department of Commerce;
(v) the recipient shall place an order on supplier for procuring goods at concessional
rate and a copy of the same shall also be provided to the jurisdictional tax officer
of the supplier;
(vi) the recipient shall move the said goods from place of supplier –
(a) directly to the Port, ICD, Airport or Land Customs Station from where the
said goods are to be exported; or
36
(b) directly to a registered warehouse from where such goods shall be moved
to the Port, ICD, Airport or Land Customs Station from where the said goods
are to be exported;
(vii) if the registered recipient intends to aggregate supplies from multiple registered
suppliers and then export, the goods from each registered supplier shall move to a
registered warehouse and after aggregation, the registered recipient shall move
goods to the Port, Inland Container Deport, Airport or Land Customs Station from
where they shall be exported;
(viii) in case of situation referred to in condition (vii), the registered recipient shall
endorse receipt of goods on the tax invoice and also obtain acknowledgement of
receipt of goods in the registered warehouse from the warehouse operator and
the endorsed tax invoice and the acknowledgment of the warehouse operator
shall be provided to the registered supplier as well as to the jurisdictional tax
officer of such supplier; and
(ix) when goods have been exported, the registered recipient shall provide copy of
shipping bill or bill of export containing details of Goods and Services Tax
Identification Number (GSTIN) and tax invoice of the registered supplier along with
proof of export general manifest or export report having been filed to the
registered supplier as well as jurisdictional tax officer of such supplier.
The supplier shall not be eligible for the aforementioned exemption if the recipient fails to
export the said goods within 90 days from the date of issue of tax invoice.
• Agriculturist [Sec. 2(7) of CGSTA]: means an individual or a Hindu Undivided Family

who undertakes cultivation of land—
(a) by own labour, or
(b) by the labour of family, or
(c) by servants on wages payable in cash or kind or by hired labour under
personal supervision or the personal supervision of any member of the
family.
• Casual taxable person [Sec. 2(20) of CGSTA]: means a person who occasionally undertakes
transactions involving supply of goods or services or both in the course or furtherance of
business, whether as principal, agent or in any other capacity, in a State or a Union territory
where he has no fixed place of business.
• Electronic commerce [Sec. 2(44) of CGSTA]: means the supply of goods or services
or both, including digital products over digital or electronic network.
• Manufacture [Sec. 2(72) of CGSTA]: means processing of raw material or inputs in
any manner that results in emergence of a new product having a distinct name,
character and use and the term “manufacturer” shall be construed accordingly.
• Outward supply [Sec. 2(83) of CGSTA]: in relation to a taxable person, means supply
of goods or services or both, whether by sale, transfer, barter, exchange, licence,
rental, lease or disposal or any other mode, made or agreed to be made by such
person in the course or furtherance of business.
• Reverse charge [Sec. 2(98) of CGSTA]: means the liability to pay tax by the recipient
of supply of goods or services or both instead of the supplier of such goods or
services or both under sub-section (3) or sub-section (4) of section 9, or under sub-
section (3) or subsection (4) of section 5 of the Integrated Goods and Services Tax
Act.
37
CGSTA, 2017
• Section 11: Power to Grant Exemption from Tax
IGSTA, 2017
• Section 6: Power to Grant Exemption from Tax
(1) On the recommendation of the GST Council

the Government may notify
goods/services of any specified description
to be exempt (absolutely or conditionally)
from the whole or a part of the GST leviable
w.e.f. such date as specified in the notification
List of Goods exempt from GST –
Live Animals Fruits and nuts Jaggery [17] Dicalcium Fuel wood [44]
[01] [08] Phosphate [28]
Meat and Tea, coffee Rice products, Blood and Stamps, maps
edible offal [09] paapad & contraceptives and duty credit
[02] bread [19] [30] scrips [48/49]
Fish [03] Grains [10] Prasad [21] Organic Silk [50]
manure [31]
Milk and other Flour [11] Water, toddy Kajal, Kumkum Wool [51]
animal and coconut etc. [33]
products [04] water [22]
Human hair Oil seeds [12] Cotton seed oil Municipal and Khadi [52]
and other cake [23] clinical waste
animal parts [38]
[05]
Trees and Lac and Salt [25] Plastic bangles Jute fibre, coir
plants [06] shellac [13] [39] fibre [53]
Vegetables Betel leaves Electrical Condoms and Indian
[07] [14] energy [27] contraceptives National Flag
[40] [63]
Human hair Earthen pot, Glass bangles Manual Handloom and
[67] clay lamps [70] agricultural charkha [84]
and clay idols implements
[69] [82]
Spacecraft Hearing aids Musical Muddhas and Passenger
[88] [90] instruments chalks [96] baggage [98]
[92]
38
Puja Samagri Private Lottery Supply of

[Any] [-] goods by a
Govt. Entity to
Govt. for
grants [-]
• A concessional rate of 2.5% CGST (i.e. 5% GST) has been prescribed for supplies to
Exploration and Production of Coal, Petroleum etc. [Notfn. No.: 03/2017 – CT(R)]
• Supply of goods by CSD to Unit Run Canteens/ authorized customers, or by Unit Run
Canteens to authorized customers [Notfn. No.: 07/2017 – CT(R)/IT(R)].
• Supply of heavy water and nuclear fuels falling in Chapter 28 of the First Schedule to
the Customs Tariff Act, 1975 (51 of 1975) by the Department of Atomic Energy to the
Nuclear Power Corporation of India Ltd. [Notfn. No.: 26/2017 – CT(R)/IT(R)]
• Inter-state supply of skimmed milk powder, or concentrated milk to a distinct person

as per section 25(4) of the CGSTA, 2017, for use in production of milk [for distribution
through dairy cooperatives] and not for further supply of skimmed milk powder, or
concentrated milk as such [Notfn. No.: 30/2017 – IT(R)].
Notfn. No.: 03/2017 – CT(R)/IT(R)
Specified supplies made to Exploration and Production of petroleum products and other
fossil fuels shall be taxed at a concessional rate of 5% only.

List of Services exempt from GST –
Sl. No. Description
1 Services by an entity registered under section 12AA of the ITA, 1961 by way of
charitable activities.
NOTE: “charitable activities” means activities relating to –
(i) public health by way of -
(A) care or counselling of
(I) terminally ill persons or persons with severe physical
or mental disability;
(II) persons afflicted with HIV or AIDS;
(III) persons addicted to a dependence-forming
substance such as narcotics drugs or alcohol; or
(B) public awareness of preventive health, family planning or
prevention of HIV infection;
(ii) advancement of religion, spirituality or yoga;
(iii) advancement of educational programmes or skill development
relating to-
(A) abandoned, orphaned or homeless children;
(B) physically or mentally abused and traumatized persons;
(C) prisoners; or
(D) persons over the age of 65 years residing in a rural area;
(iv) preservation of environment including watershed, forests and wildlife
2 Services by way of transfer of a going concern, as a whole or an independent
part thereof.
3 Pure services (excluding works contract service or other composite supplies
involving supply of any goods) provided to the CG/SG/UT/LA/GA by way of
any activity in relation to any function entrusted to a Panchayat under article
39
243G of the Constitution or in relation to any function entrusted to a

Municipality under article 243W of the Constitution.
NOTE: “Governmental Authority” means an authority or a board or any other body-
(i) set up by an Act of Parliament or a State Legislature; or
with 90%. or more participation by way of equity or control, to carry out any function
entrusted to a Municipality under article 243W of the Constitution or to a Panchayat
under article 243G of the Constitution.
4 Services by CG/SG/UT/LA/GA by way of any activity in relation to any

function entrusted to a municipality under article 243W of the Constitution.
5 Services by CG/SG/UT/LA/GA by way of any activity in relation to any
function entrusted to a Panchayat under article 243G of the Constitution.
6 Services by the CG/SG/UT/LA excluding the following services—
a) services by the Department of Posts by way of
o speed post,
o express parcel post,
o agency services, and
o life insurance
provided to a person other than the CG/SG/UT;
b) services in relation to an aircraft or a vessel, inside or outside the
precincts of a port or an airport;
c) transport of goods or passengers; or
d) any service, other than services covered under entries (a) to (c) above,
provided to business entities.
7 Services provided by the CG/SG/UT/LA to a business entity with an
aggregate turnover of up to ₹20 lakhs (₹10 lakhs in case of a special category
state) in the preceding FY.
Explanation- For the purposes of this entry, it is hereby clarified that the provisions of
this entry shall not be applicable to-
(a) services-
(i) by the Department of Posts by way of
▪ speed post,
▪ express parcel post,
▪ agency services, and
▪ life insurance
(ii) in relation to an aircraft or a vessel, inside or outside the precincts of
a port or an airport;
(iii) of transport of goods or passengers; and
(b) services by way of renting of immovable property.
NOTE: “business entity” means any person carrying out business.
“renting in relation to immovable property” means allowing, permitting or granting
access, entry, occupation, use or any such facility, wholly or partly, in an immovable
property, with or without the transfer of possession or control of the said immovable
property and includes letting, leasing, licensing or other similar arrangements in
respect of immovable property.
8 Services provided by the CG/SG/UT/LA to another CG/SG/UT/LA:

Provided that nothing contained in this entry shall apply to services-
(i) by the Department of Posts by way of
o speed post,
40

o life insurance
(ii) in relation to an aircraft or a vessel, inside or outside the precincts of a
port or an airport;
(iii) of transport of goods or passengers.
9 Services provided by CG/SG/UT/LA where the consideration for such services
does not exceed ₹5,000:
Provided that nothing contained in this entry shall apply to-
(i) services by the Department of Posts by way of
o speed post,
o life insurance
(ii) services in relation to an aircraft or a vessel, inside or outside the
precincts of a port or an airport;
(iii) transport of goods or passengers:
Provided further that in case where continuous supply of service, as defined in
section 2(33) of the CGSTA, 2017, is provided by the CG/SG/UT/LA, the
exemption shall apply only where the consideration charged for such service
does not exceed ₹5,000 in a FY.
9A Services provided by and to Fédération Internationale de Football Association
(FIFA) and its subsidiaries directly or indirectly related to any of the events
under FIFA U-17 World Cup 2017 to be hosted in India:
Provided that Director (Sports), Ministry of Youth Affairs and Sports certifies
that the services are directly or indirectly related to any of the events under
FIFA U-17 World Cup 2017.
9B Supply of services associated with transit cargo to Nepal and Bhutan
(landlocked countries).
9C Supply of service by a Government Entity to CG/SG/UT/LA or any person
specified by CG/SG/UT/LA against consideration received from
CG/SG/UT/LA, in the form of grants.
NOTE: “Government Entity” means an authority or a board or any other body
including a society, trust, corporation,
(i) set up by an Act of Parliament or State Legislature; or
with 90%. or more participation by way of equity or control, to carry out a function
entrusted by the CG/SG/UT/LA.
10 Services provided by way of pure labour contracts of construction, erection,

commissioning, installation, completion, fitting out, repair, maintenance,
renovation, or alteration of a civil structure or any other original works
pertaining to the beneficiary-led individual house construction or
enhancement under the Housing for All (Urban) Mission or Pradhan Mantri
Awas Yojana.
NOTE: “original works” means- all new constructions;
(i) all types of additions and alterations to abandoned or damaged structures
on land that are required to make them workable;
(ii) erection, commissioning or installation of plant, machinery or equipment or
structures, whether pre-fabricated or otherwise
41
11 Services by way of pure labour contracts of construction, erection,

commissioning, or installation of original works pertaining to a single
residential unit otherwise than as a part of a residential complex.
NOTE: residential complex” means any complex comprising of a building or buildings,
having more than one single residential unit.
“single residential unit” means a self-contained residential unit which is designed for
use, wholly or principally, for residential purposes for one family.
11A Service provided by FPS to CG by way of sale of wheat, rice and coarse
grains under Public Distribution System(PDS) against consideration in the
form of commission or margin.
11B Service provided by FPS to SG/UT by way of sale of kerosene, sugar, edible
oil, etc. under Public Distribution System (PDS) against consideration in the
form of commission or margin.
12 Services by way of renting of residential dwelling for use as residence.
13 Services by a person by way of-
(a) conduct of any religious ceremony;
(b) renting of precincts of a religious place meant for general public,
owned or managed by an entity registered as a charitable or religious
trust u/s 12AA of the ITA, 1961 or a trust or an institution registered u/s
10(23C)(v) of the ITA, 1961 or a body or an authority covered u/s
10(23BBA) of the said Act:
Provided that nothing contained in entry (b) of this exemption shall apply to-
(i) renting of rooms where charges are ₹1,000 or more per day;
(ii) renting of premises, community halls, kalyanmandapam or open area,
and the like where charges are ₹10,000 or more per day;
(iii) renting of shops or other spaces for business or commerce where
charges are ₹10,000 or more per month.
NOTE: general public” means the body of people at large sufficiently defined by some
common quality of public or impersonal nature.
“religious place” means a place which is primarily meant for conduct of prayers or
worship pertaining to a religion, meditation, or spirituality.
14 Services by a hotel, inn, guest house, club or campsite, by whatever name

called, for residential or lodging purposes, having declared tariff of a unit of
accommodation below ₹1,000 per day or equivalent.
NOTE: “declared tariff” includes charges for all amenities provided in the unit of
accommodation (given on rent for stay) like furniture, air-conditioner, refrigerators or
any other amenities, but without excluding any discount offered on the published
charges for such unit
15 Transport of passengers, with or without accompanied belongings, by –

a) air, embarking from or terminating in an airport located in the state of
o Arunachal Pradesh,
o Assam,
o Manipur,
o Meghalaya,
o Mizoram,
o Nagaland,
o Sikkim,
o Tripura or
o West Bengal (Bagdogra);
42
b) non-airconditioned contract carriage other than radio taxi, for

transportation of passengers, excluding tourism, conducted tour,
charter or hire; or
c) stage carriage other than airconditioned stage carriage.
16 Services provided to the CG, by way of transport of passengers with or
without accompanied belongings, by air, embarking from or terminating at a
regional connectivity scheme airport, against consideration in the form of
viability gap funding:
Provided that nothing contained in this entry shall apply on or after the expiry
of a period of 1 year from the date of commencement of operations of the
regional connectivity scheme airport as notified by the Ministry of Civil
Aviation.
17 Service of transportation of passengers, with or without accompanied
belongings, by—
(a) railways in a class other than—
(i) first class; or
(ii) an air-conditioned coach;
(b) metro, monorail or tramway;
(c) inland waterways;
(d) public transport, other than predominantly for tourism purpose, in a
vessel between places located in India; and
(e) metered cabs or auto rickshaws (including e-rickshaws)
NOTE: “e-rickshaw” means a special purpose battery powered vehicle of power not
exceeding 4000 watts, having three wheels for carrying goods or passengers, as the
case may be, for hire or reward, manufactured, constructed or adapted, equipped
and maintained in accordance with such specifications, as may be prescribed in this
behalf.
“inland waterway” means national waterways as defined in clause (h) of section 2 of
the Inland Waterways Authority of India Act, 1985 (82 of 1985) or other waterway on
any inland water, as defined in clause (b) of section 2 of the Inland Vessels Act, 1917 (1
of 1917)
“metered cab” means any contract carriage on which an automatic device, of the
type and make approved under the relevant rules by the State Transport Authority, is
fitted which indicates reading of the fare chargeable at any moment and that is
charged accordingly under the conditions of its permit issued under the Motor
Vehicles Act, 1988 (59 of 1988) and the rules made thereunder (but does not include
radio taxi).
18 Services by way of transportation of goods-

(a) by road except the services of—
(i) a goods transportation agency;
(ii) a courier agency;
(b) by inland waterways.
NOTE: “courier agency” means any person engaged in the door-to-door
transportation of time-sensitive documents, goods or articles utilising the services of
a person, either directly or indirectly, to carry or accompany such documents, goods
or articles.
19 Services by way of transportation of goods by an aircraft from a place

outside India upto the customs station of clearance in India.
20 Services by way of transportation by rail or a vessel from one place in India
to another of the following goods –
(a) relief materials meant for victims of natural or man-made disasters,
calamities, accidents or mishap;
43
(b) defence or military equipment;

(c) newspaper or magazines registered with the Registrar of
Newspapers;
(d) railway equipment or materials;
(e) agricultural produce;
(f) milk, salt and food grain including flours, pulses and rice; and
(g) organic manure.
NOTE: “agricultural produce” means any produce out of cultivation of plants and
rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel,
raw material or other similar products, on which either no further processing is done
or such processing is done as is usually done by a cultivator or producer which does
not alter its essential characteristics but makes it marketable for primary market.
21 Services provided by a goods transport agency, by way of transport in a

goods carriage of –
a) agricultural produce;
b) goods, where consideration charged for the transportation of goods
on a consignment transported in a single carriage does not exceed
₹1,500;
c) goods, where consideration charged for transportation of all such
goods for a single consignee does not exceed ₹750;
d) milk, salt and food grain including flour, pulses and rice;
e) organic manure;
f) newspaper or magazines registered with the Registrar of
Newspapers;
g) relief materials meant for victims of natural or man-made disasters,
calamities, accidents or mishap; or
h) defence or military equipment.
NOTE: “goods transport agency” means any person who provides service in relation
to transport of goods by road and issues consignment note, by whatever name
called.
21A Services provided by a goods transport agency to an unregistered person,

including an unregistered CTP, other than the following recipients, namely: -
(a) any factory registered under or governed by the FA, 1948; or
(b) any Society registered under the SRA, 1860 or under any other law for
the time being in force in any part of India; or
(c) any Co-operative Society established by or under any law for the time
being in force; or
(d) any body corporate established, by or under any law for the time
being in force; or
(e) any partnership firm whether registered or not under any law
including association of persons;
(f) any CTP registered under the CGSTA/IGSTA/SGSTA/UTGSTA.
22 Services by way of giving on hire –
(a) to a state transport undertaking, a motor vehicle meant to carry more
than twelve passengers; or
(b) to a goods transport agency, a means of transportation of
goods.
23 Service by way of access to a road or a bridge on payment of toll charges.
23A Service by way of access to a road or a bridge on payment of annuity.
24 Services by way of loading, unloading, packing, storage or warehousing of
rice.
44
25 Transmission or distribution of electricity by an electricity transmission or

distribution utility.
NOTE: “electricity transmission or distribution utility” means the Central Electricity
Authority; a State Electricity Board; the Central Transmission Utility or a State
Transmission Utility notified under the Electricity Act, 2003 (36 of 2003); or a
distribution or transmission licensee under the said Act, or any other entity entrusted
with such function by the CG/SG.
26 Services by the RBI.

27 Services by way of—
(a) extending deposits, loans or advances in so far as the consideration is
represented by way of interest or discount (other than interest
involved in credit card services);
(b) inter se sale or purchase of foreign currency amongst banks or
authorised dealers of foreign exchange or amongst banks and such
dealers.
NOTE: “interest” means interest payable in any manner in respect of any moneys
borrowed or debt incurred (including a deposit, claim or other similar right or
obligation) but does not include any service fee or other charge in respect of the
moneys borrowed or debt incurred or in respect of any credit facility which has not
been utilised.
28 Services of life insurance business provided by way of annuity under the NPS
regulated by the PFRDAI under the PFRDA Act, 2013.
29 Services of life insurance business provided or agreed to be provided by the
Army, Naval and Air Force Group Insurance Funds to members of the Army,
Navy and Air Force, respectively, under the Group Insurance Schemes of the
CG.
30 Services by the ESIC to persons governed under the Employees’ State
Insurance Act, 1948.
31 Services provided by the EPFO to the persons governed under the EPFMP Act,
1952.
32 Services provided by the IRDAI to insurers under the IRDAI Act, 1999.
33 Services provided by the SEBI set up under the SEBI Act, 1992 (15 of 1992) by
way of protecting the interests of investors in securities and to promote the
development of, and to regulate, the securities market.
34 Services by an acquiring bank, to any person in relation to settlement of an
amount upto ₹2,000 in a single transaction transacted through credit
card/debit card/charge card/other payment card service.
Explanation— For the purposes of this entry, “acquiring bank” means any banking
company, FI including NBFC or any other person, who makes the payment to any
person who accepts such card.
35 Services of general insurance business provided under following schemes

(a) Hut Insurance Scheme;
(b) Cattle Insurance under Swarnajaynti Gram Swarozgar Yojna
(earlier known as Integrated Rural Development Programme);
(c) Scheme for Insurance of Tribals;
(d) Janata Personal Accident Policy and Gramin Accident Policy;
(e) Group Personal Accident Policy for Self-Employed Women;
45
(f) Agricultural Pumpset and Failed Well Insurance;

(g) premia collected on export credit insurance;
(h) Restructured Weather Based Crop Insurance Scheme (RWCIS),
approved by the Government of India and implemented by the
Ministry of Agriculture;
(i) Jan Arogya Bima Policy;
(j) Pradhan Mantri Fasal Bima Yojana (PMFBY);
(k) Pilot Scheme on Seed Crop Insurance;
(l) Central Sector Scheme on Cattle Insurance;
(m) Universal Health Insurance Scheme;
(n) Rashtriya Swasthya Bima Yojana;
(o) Coconut Palm Insurance Scheme;
(p) Pradhan Mantri Suraksha Bima Yojna;
(q) Niramaya Health Insurance Scheme implemented by the Trust
constituted under the provisions of the National Trust for the
Welfare of Persons with Autism, Cerebral Palsy, Mental
Retardation and Multiple Disabilities Act, 1999.
36 Services of life insurance business provided under following schemes-
(a) Janashree Bima Yojana;
(b) Aam Aadmi Bima Yojana;
(c) Life micro-insurance product as approved by the IRDA, having
maximum amount of cover of ₹50,000;
(d) Varishtha Pension Bima Yojana;
(e) Pradhan Mantri Jeevan Jyoti Bima Yojana;
(f) Pradhan Mantri Jan Dhan Yojana;
(g) Pradhan Mantri Vaya Vandan Yojana
37 Services by way of collection of contribution under the Atal Pension Yojana.
38 Services by way of collection of contribution under any pension scheme of the
SG.
39 Services by the following persons in respective capacities –
(a) business facilitator or a business correspondent to a banking
company with respect to accounts in its rural area branch;
(b) any person as an intermediary to a business facilitator or a business
correspondent with respect to services mentioned in entry (a); or
(c) business facilitator or a business correspondent to an insurance
company in a rural area.
NOTE: “business facilitator or business correspondent” means an intermediary

appointed under the business facilitator model or the business correspondent model
by a banking company or an insurance company under the guidelines issued by the
RBI.
“insurance company” means a company carrying on life insurance business or

general insurance business.
“rural area” means the area comprised in a village as defined in land revenue
records, excluding-
the area under any municipal committee/municipal corporation/town area
committee/cantonment board/notified area committee; or any area that may be
notified as an urban area by the CG/SG.
46
40 Services provided to the CG/SG/UT under any insurance scheme for which
total premium is paid by the CG/SG/UT.
41 Upfront amount (called as premium, salami, cost, price, development charges
or by any other name) payable in respect of service by way of granting of long
term lease of 30 years, or more) of industrial plots or plots for development of
infrastructure for financial business, provided by the SG. Industrial
Development Corporations or Undertakings or by any other entity having 50%
or more ownership of CG/SG/UT to the industrial units or the developers in
any industrial or financial business area.
42 Services provided by the CG/SG/UT/LA by way of allowing a business entity
to operate as a telecom service provider or use radio frequency spectrum
during the period prior to the 1 April, 2016, on payment of licence fee or
spectrum user charges, as the case may be.
43 Services of leasing of assets (rolling stock assets including wagons, coaches,
locos) by the Indian Railways Finance Corporation to Indian Railways.
44 Services provided by an incubatee up to a total turnover of ₹50 lakhs in a FY
subject to the following conditions, namely-
(a) the total turnover had not exceeded ₹50 lakhs during the preceding
FY; and
(b) a period of 3 years has not elapsed from the date of entering into an
agreement as an incubatee.
NOTE: “incubatee” means an entrepreneur located within the premises of a TBI/STEP

recognised by the National Science and Technology Entrepreneurship Development
Board (NSTEDB) of the Department of Science and Technology, Government of India
and who has entered into an agreement with the TBI/STEP to enable himself to
develop and produce hi-tech and innovative products.
45 Services provided by-

(a) an arbitral tribunal to –
(i) any person other than a business entity; or
(ii) a business entity with an aggregate turnover up to ₹20
lakhs (₹10 lakhs in the case of special category states) in
the preceding FY;
(b) a partnership firm of advocates or an individual as an advocate
other than a senior advocate, by way of legal services to-
(i) an advocate or partnership firm of advocates providing
legal services;
(ii) any person other than a business entity; or
(iii) a business entity with an aggregate turnover up to ₹20
lakhs (₹10 lakhs in the case of special category states) in
the preceding FY;
(c) a senior advocate by way of legal services to-
(i) any person other than a business entity; or
(ii) a business entity with an aggregate turnover up to ₹20 lakhs
(₹10 lakhs in the case of special category states) in the
preceding FY.
NOTE: “legal service” means any service provided in relation to advice, consultancy
or assistance in any branch of law, in any manner and includes representational
services before any court, tribunal or authority.
47
46 Services by a veterinary clinic in relation to health care of animals or birds.

47 Services provided by the CG/SG/UT/LA by way of-
(a) registration required under any law for the time being in force;
(b) testing, calibration, safety check or certification relating to protection
or safety of workers, consumers or public at large, including fire
license, required under any law for the time being in force.
48 Taxable services, provided or to be provided, by a TBI/STEP recognised by
the National Science and Technology Entrepreneurship Development Board
(NSTEDB) of the Department of Science and Technology, Government of India
or bio-incubators recognised by the Biotechnology Industry Research
Assistance Council, under the Department of Biotechnology, Government of
India.
49 Services by way of collecting or providing news by an independent
journalist/PTI/UNI.
50 Services of public libraries by way of lending of books, publications or any
other knowledge-enhancing content or material.
51 Services provided by the GSTN to the CG/SG/UT for implementation of GST.
52 Services by an organiser to any person in respect of a business exhibition held
outside India.
53 Services by way of sponsorship of sporting events organised –
(a) by a national sports federation, or its affiliated federations, where the
participating teams or individuals represent any district, State, zone or
Country;
(b) by Association of Indian Universities, Inter-University Sports
Board, School Games Federation of India, All India Sports
Council for the Deaf, Paralympic Committee of India or Special
Olympics Bharat;
(c) by the Central Civil Services Cultural and Sports Board;
(d) as part of national games, by the Indian Olympic Association; or
(e) under the Panchayat Yuva Kreeda Aur Khel Abhiyaan Scheme.
54 Services relating to cultivation of plants and rearing of all life forms of
animals, except the rearing of horses, for food, fibre, fuel, raw material or
other similar products or agricultural produce by way of—
(a) agricultural operations directly related to production of any
agricultural produce including cultivation, harvesting, threshing, plant
protection or testing;
(b) supply of farm labour;
(c) processes carried out at an agricultural farm including tending,
pruning, cutting, harvesting, drying, cleaning, trimming, sun
drying, fumigating, curing, sorting, grading, cooling or bulk
packaging and such like operations which do not alter the
essential characteristics of agricultural produce but make it only
marketable for the primary market;
(d) renting or leasing of agro-machinery or vacant land with or
without a structure incidental to its use;
(e) loading, unloading, packing, storage or warehousing of
agricultural produce;
(f) agricultural extension services;
48
(g) services by any Agricultural Produce Marketing Committee or Board

or services provided by a commission agent for sale or purchase of
agricultural produce.
NOTE: “agricultural extension” means application of scientific research and

knowledge to agricultural practices through farmer education or training.
55 Carrying out an intermediate production process as job work in relation to

cultivation of plants and rearing of all life forms of animals, except the rearing
of horses, for food, fibre, fuel, raw material or other similar products or
agricultural produce.
56 Services by way of slaughtering of animals.
57 Services by way of pre-conditioning, precooling, ripening, waxing, retail
packing, labelling of fruits and vegetables which do not change or alter the
essential characteristics of the said fruits or vegetables.
58 Services provided by the National Centre for Cold Chain Development under
the Ministry of Agriculture, Cooperation and Farmer’s Welfare by way of cold
chain knowledge dissemination.
59 Services by a foreign diplomatic mission located in India.
60 Services by a specified organisation in respect of a religious pilgrimage
facilitated by the Ministry of External Affairs, the Government of India, under
bilateral arrangement.
NOTE: “specified organisation” shall mean-

(i) Kumaon Mandal Vikas Nigam Limited, a Government of Uttarakhand
Undertaking; or
(ii) ‘Committee’ or ‘State Committee’ as defined in section 2 of the Haj Committee
Act, 2002.
61 Services provided by the CG/SG/UT/LA by way of issuance of passport, visa,

driving licence, birth certificate or death certificate.
62 Services provided by the CG/SG/UT/LA by way of tolerating non-
performance of a contract for which consideration in the form of fines or
liquidated damages is payable to the CG/SG/UT/LA under such contract.
63 Services provided by the CG/SG/UT/LA by way of assignment of right to use
natural resources to an individual farmer for cultivation of plants and rearing
of all life forms of animals, except the rearing of horses, for food, fibre, fuel,
raw material or other similar products.
64 Services provided by the CG/SG/UT/LA by way of assignment of right to use
any natural resource where such right to use was assigned by the
CG/SG/UT/LA before the 1 April, 2016:
Provided that the exemption shall apply only to tax payable on one time
charge payable, in full upfront or in instalments, for assignment of right to use
such natural resource.
65 Services provided by the CG/SG/UT by way of deputing officers after office
hours or on holidays for inspection or container stuffing or such other duties in
relation to import export cargo on payment of Merchant Overtime charges.
66 Services provided –
(a) by an educational institution to its students, faculty and staff;
(b) to an educational institution, by way of-
49
(i) transportation of students, faculty and staff;

(ii) catering, including any mid-day meals scheme sponsored by
the Central Government, State Government or Union territory;
(iii) security or cleaning or housekeeping services performed in
such educational institution;
(iv) services relating to admission to, or conduct of examination by,
such institution; upto higher secondary:
Provided that nothing contained in entry (b) shall apply to an educational
institution other than an institution providing services by way of pre-school
education and education up to higher secondary school or equivalent.
NOTE: “educational institution” means an institution providing services by way of-

(i) pre-school education and education up to higher secondary school or
equivalent;
(ii) education as a part of a curriculum for obtaining a qualification recognised
by any law for the time being in force;
(iii) education as a part of an approved vocational education course
“approved vocational education course” means-

(i) a course run by an industrial training institute or an industrial training centre
affiliated to the NCVT/SCVT offering courses in designated trades notified
under the Apprentices Act, 1961; or
(ii) a Modular Employable Skill Course, approved by the NCVT, run by a person
registered with the Directorate General of Training, Ministry of Skill
Development and Entrepreneurship
67 Services provided by the IIMs, as per the guidelines of the CG, to their
students, by way of the following educational programmes, except Executive
Development Programme: -
(a) 2-year full time PG Programmes in Management for the PGDM, to
which admissions are made on the basis of Common Admission Test
(CAT) conducted by the IIM;
(b) fellow programme in Management;
(c) 5-year integrated programme in Management.
68 Services provided to a recognised sports body by-
(a) an individual as a player, referee, umpire, coach or team manager for
participation in a sporting event organised by a recognized sports
body;
(b) another recognised sports body.
NOTE: “recognised sports body” means –

(i) the Indian Olympic Association;
(ii) Sports Authority of India;
(iii) a national sports federation recognised by the Ministry of Sports and Youth
Affairs of the CG, and its affiliate federations;
(iv) national sports promotion organisations recognised by the Ministry of Sports
and Youth Affairs of the CG;
(v) the International Olympic Association or a federation recognised by the
International Olympic Association; or
(vi) a federation or a body which regulates a sport at international level and its
affiliated federations or bodies regulating a sport in India.
69 Any services provided by, -

(a) the NSDC set up by the Government of India;
(b) a SSC approved by the NSDC;
(c) an assessment agency approved by the SSC/NSDC;
(d) a training partner approved by the NSDC/SSC,
50
in relation to-
(i) the National Skill Development Programme implemented by the
NSDC; or
(ii) a vocational skill development course under the National Skill
Certification and Monetary Reward Scheme; or
(iii) any other Scheme implemented by the NSDC.
70 Services of assessing bodies empanelled centrally by the Directorate General
of Training, Ministry of Skill Development and Entrepreneurship by way of
assessments under the Skill Development Initiative Scheme.
71 Services provided by training providers (Project implementation agencies)
under Deen Dayal Upadhyaya Grameen Kaushalya Yojana implemented by
the Ministry of Rural Development, Government of India by way of offering
skill or vocational training courses certified by the NCVT.
72 Services provided to the CG/SG/UT administration under any training
programme for which total expenditure is borne by the CG/SG/UT
administration.
73 Services provided by the cord blood banks by way of preservation of stem
cells or any other service in relation to such preservation.
74 Services by way of-
(a) health care services by a clinical establishment, an authorised medical
practitioner or para-medics;
(b) services provided by way of transportation of a patient in an
ambulance, other than those specified in (a) above.
NOTE: “authorised medical practitioner” means a medical practitioner registered with

any of the councils of the recognised system of medicines established or recognised
by law in India and includes a medical professional having the requisite qualification
to practice in any recognised system of medicines in India as per any law for the time
being in force.
“clinical establishment” means a hospital, nursing home, clinic, sanatorium or any

other institution by, whatever name called, that offers services or facilities requiring
diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy
in any recognised system of medicines in India, or a place established as an
independent entity or a part of an establishment to carry out diagnostic or
investigative services of diseases.
“health care services” means any service by way of diagnosis or treatment or care for
illness, injury, deformity, abnormality or pregnancy in any recognised system of
medicines in India and includes services by way of transportation of the patient to
and from a clinical establishment, but does not include hair transplant or cosmetic or
plastic surgery, except when undertaken to restore or to reconstruct anatomy or
functions of body affected due to congenital defects, developmental abnormalities,
injury or trauma
75 Services provided by operators of the common bio-medical waste treatment

facility to a clinical establishment by way of treatment or disposal of bio-
medical waste or the processes incidental thereto.
76 Services by way of public conveniences such as provision of facilities of
bathroom, washrooms, lavatories, urinal or toilets.
77 Service by an unincorporated body or a non- profit entity registered under
any law for the time being in force, to its own members by way of
reimbursement of charges or share of contribution –
51
(a) as a trade union;

(b) for the provision of carrying out any activity which is exempt
from the levy of GST; or
(c) up to an amount of ₹5,000 per month per member for sourcing of
goods/services from a third person for the common use of its
members in a housing society or a residential complex.
78 Services by an artist by way of a performance in folk or classical art forms of-
(a) music, or
(b) dance, or
(c) theatre,
if the consideration charged for such performance is not more than
₹1,50,000:
Provided that the exemption shall not apply to service provided by such artist
as a brand ambassador.
NOTE: “brand ambassador” means a person engaged for promotion or marketing of

a brand of goods, service, property or actionable claim, event or endorsement of
name, including a trade name, logo or house mark of any person.
79 Services by way of admission to a museum, national park, wildlife sanctuary,

tiger reserve or zoo.
80 Services by way of training or coaching in recreational activities relating to-
(a) arts or culture, or
(b) sports by charitable entities registered under section 12AA of the ITA,
1961.
81 Services by way of right to admission to-
(a) circus, dance, or theatrical performance including drama or ballet;
(b) award function, concert, pageant, musical performance or any
sporting event other than a recognised sporting event;
(c) recognised sporting event,
where the consideration for admission is not more than ₹250 per person as
referred to in (a), (b) and (c) above.
NOTE: “recognised sporting event” means any sporting event-

(i) organised by a recognised sports body where the participating team or
individual represent any district, state, zone or country;
(ii) organised –
(A) by a national sports federation, or its affiliated federations, where the
participating teams or individuals represent any district, state or
zone;
(B) by Association of Indian Universities, Inter-University Sports Board,
School Games Federation of India, All India Sports Council for the
Deaf, Paralympic Committee of India or Special Olympics Bharat;
(C) by Central Civil Services Cultural and Sports Board;
(D) as part of national games, by Indian Olympic Association; or
(E) under Panchayat Yuva Kreeda Aur Khel Abhiyaan (PYKKA) Scheme.
82 Services by way of right to admission to the events organised under FIFA U-17
World Cup 2017
Notfn. No.: 18/2017 – IT(R)

All services imported by a unit/developer in the SEZ for authorised operations, has been
exempted from the entire IGST leviable thereon u/s 5 of the IGSTA, 2017
52
(2) On the recommendation of the GST Council,

the Government may
in cases involving exceptional circumstances
exempt goods/services/both
from the GST leviable on it
by a special order in each case.
(3) The government may clarify the scope or applicability

of the notification/order issued
by inserting an explanation in such notification/order
within 1 year from the date of issue
and such explanation shall be treated as to have always been a part of the said
notification/order.
Circular No. 1/1/2017-IGST

Clarification on Inter-state movement of various modes of conveyance, carrying goods or
passengers or for repairs and maintenance
The issue relating to levy of IGST exemption on inter-state movement of various

modes of conveyance, carrying goods or passengers or for repairs and maintenance,
between distinct persons as specified in section 25(4) of the Central Goods and
Services Tax Act, 2017, carrying goods or passengers or both; or for repairs and
maintenance, [except in cases where such movement is for further supply of the
same conveyance] has been examined.
2. In the above context, the legal provisions in GST laws are as under:
a) As per section 24 (1) (i) of the Central Goods and Services Tax Act, 2017,
persons making any inter-State taxable supply shall be required to be
registered under this Act.
b) As per section 25(4) of the said Act a person who has obtained or is required
to obtain more than one registration, whether in one State or Union territory
or more than one State or Union territory shall, in respect of each such
registration, be treated as distinct persons for the purposes of this Act.
c) Schedule I to the said Act specifies situations where activities are to be
treated as supply even if made without consideration which also includes
supply of goods or services or both between related persons or between
distinct persons as specified in section 25, when made in the course or
furtherance of business
d) Section 7 (2) envisages that activities or transactions undertaken by the
Central Government, a State Government or any local authority in which they
are engaged as public authorities, as may be notified by the Government on
the recommendations of the Council, shall be treated neither as a supply of
goods nor a supply of services.
3. Against the above background, the issue of inter-state movement of goods like
movement of various modes of conveyance, between distinct persons as specified in
section 25(4) of the said Act, not involving further supply of such conveyance,
including
i. Trains,
ii. Buses,
iii. Trucks,
iv. Tankers,
v. Trailers,
vi. Vessels,
vii. Containers,
viii. Aircrafts,
53
(a) carrying goods or passengers or both; or (b) for repairs and maintenance, [except
in cases where such movement is for further supply of the same conveyance] was
discussed in GST Council’s meeting held on 11th June, 2017 and the Council
recommended that such inter-state movement shall be treated ‘neither as a supply
of goods or supply of service’ and therefore not be leviable to IGST.
4. In view of above, it is hereby clarified that “the inter-state movement of goods like
movement of various modes of conveyance, between distinct persons as specified in
section 25(4) of the Central Goods and Services Tax Act, 2017, including the ones
specified at (i) to (viii) of para 3, may not be treated as supply and consequently IGST
will not be payable on such supply.
5. However, applicable CGST/SGST/IGST, as the case may be, shall be leviable on

repairs and maintenance done for such conveyance.
• Aggregate turnover [Sec. 2(6) of CGSTA]: means the aggregate value of all taxable
supplies (excluding the value of inward supplies on which tax is payable by a person
on reverse charge basis), exempt supplies, exports of goods or services or both and
inter-State supplies of persons having the same Permanent Account Number, to be
computed on all India basis but excludes central tax, State tax, Union territory tax,
integrated tax and cess.
• Continuous supply of services [Sec. 2(33) of CGSTA]: means a supply of services
which is provided, or agreed to be provided, continuously or on recurrent basis,
under a contract, for a period exceeding three months with periodic payment
obligations and includes supply of such services as the Government may, subject to
such conditions, as it may, by notification, specify.
• Exempt supply [Sec. 2(47) of CGSTA]: means supply of any goods or services or both
which attracts nil rate of tax or which may be wholly exempt from tax under section
11, or under section 6 of the Integrated Goods and Services Tax Act, and includes
non-taxable supply.
• Export of goods [Sec. 2(5) of IGSTA]: with its grammatical variations and cognate
expressions, means taking goods out of India to a place outside India.
• Export of services [Sec. 2(6) of IGSTA]: means the supply of any service when–
(i) the supplier of service is located in India;
(ii) the recipient of service is located outside India;
(iii) the place of supply of service is outside India;
(iv) the payment for such service has been received by the supplier of service in
convertible foreign exchange; and
(v) the supplier of service and the recipient of service are not merely
establishments of a distinct person in accordance with Explanation 1 in
section 8
• Family [Sec. 2(49) of CGSTA]: means–
(i) the spouse and children of the person, and
(ii) the parents, grand-parents, brothers and sisters of the person if they are
wholly or mainly dependent on the said person.
• Job work [Sec. 2(68) of CGSTA]: means any treatment or process undertaken by a
person on goods belonging to another registered person and the expression “job
worker” shall be construed accordingly.
• Non-taxable supply [Sec. 2(78)]: means a supply of goods or services or both which
is not leviable to tax under this Act or under the Integrated Goods and Services Tax
Act.
54
CGSTA, 2017
• Section 10: Composition Levy
(1) Overruling everything to the contrary contained in the CGSTA,

except the provisions relating to Reverse Charge,
a taxable person,
whose aggregate turnover in the previous FY did not exceed
₹1 crore (₹75 lakhs in case of HP, Sikkim and N-E States),
may opt to pay a nominal amount calculated at the prescribed rate,
instead of the tax payable by him.
• The prescribed rate must not (and does not, as per ) exceed –
Manufacturer 1%
Restaurant Services 2.5%
Other Suppliers 0.5%
of the turnover in state/UT.
• On the recommendation of The Council, the government may notify the increment of
the threshold limit of ₹50 lakhs, but it shall not exceed ₹1 crore.
(2) Conditions for eligibility to opt composition scheme –

(a) He is not engaged in the supply of services other than restaurant service
(b) He is not engaged in making any supply of goods which are not leviable to GST
(c) He is not engaged in making any inter-state outward supplies of goods
(d) He is not engaged in making any supply of goods through an e-commerce
operator
(e) He is not a manufacturer of goods notified by the government.
Notfn. No.: 08/2017 – CT
The manufacturers of
• ice cream,
• pan masala and
• tobacco products
have been notified to be ineligible to register as composition supplier.
• Where more than 1 registered person bear the same PAN,

all such persons must opt to pay tax under the composition levy scheme.
(3) The option availed of by a registered person

shall lapse with effect from the day
on which his aggregate turnover during a FY
exceeds the specified threshold limit.
55
(4) A taxable person opting to pay tax under composition levy

shall not collect any tax from the recipient on outward supplies
and also shall not be entitled to any credit of input tax.
(5) If an ineligible person pays tax under composition levy,

he shall be liable to a penalty
in addition to the tax payable by him under normal provisions
and the provisions of demand and recovery shall mutatis mutandis apply for
determination of the tax and penalty amount.
(1) A provisionally registered person (migrated from existing laws) who opts to pay tax
u/s 10 shall file an intimation in FORM GST CMP-01 before the end of 30 days from
the appointed day.
However, where a person intimates after the appointed day, he shall not collect any
tax from the appointed day itself and issue bill of supply for supplies made after that
day.
(2) In case of new registrations, the person may give an option to pay tax u/s 10 in Part B
of FORM GST REG-01.
(3) Any registered person who opts to pay tax u/s 10 shall intimate about the same in
FORM GST CMP-02, before the commencement of the FY during which he wishes to
exercise the option and shall also furnish a stock statement as on the date
immediately before commencement of the relevant FY, in FORM GST ITC-03, within
60 days of the commencement of the said FY.
(3A) Overruling all of the above, a person may opt to pay tax u/s 10 from the next month
itself if he files the intimation in FORM GST CMP-02 before 31 March, 2018, along with
FORM GST ITC-03 within 90 days from the commencement of exercising this option.
However, in such a case, the said person shall not be allowed to file FORM GST
TRAN-1 after furnishing FORM GST ITC-03.
(4) A provisionally registered person who has filed the intimation as per sub-rule (1) shall
furnish the stock details, including inward supply of goods received from
unregistered persons, as on the date immediately before the date from which he opts
to pay tax u/s 10, in FORM GST CMP-03, within 90 days (or as extended by the
Commissioner), from the said date of exercising the option.
(5) Any intimation under sub-rule (1)/(3)/(3A) regarding any place of business in a
State/UT shall be considered as an intimation regarding all other places of business
registered on the same PAN.
(1) For registered persons switching to composition levy u/s 10, the option shall be
effective from the beginning of the FY, whereas for those migrating, it shall be
effective from the appointed day.
(2) In case of persons opting for the same u/r 3(2), it shall be considered only after the
grant of registration and effective from the effective date of registration.
56
(1) The persons exercising the option to pay tax u/s 10 shall comply with the following
conditions –
(a) he is not a CTP/NRTP;
(b) the goods held in stock by him on the appointed day have not been
▪ purchased from another state/UT/country or
▪ received from his branch situated outside the State or
▪ received from his agent/principal outside the State,
where the option is exercised under rule 3(1);
(c) the goods held in stock by him have not been purchased from an
unregistered supplier and where purchased, he pays the tax on reverse
charge basis;
(d) he shall pay tax on reverse charge basis on inward supply of goods/services,
wherever applicable;
(e) he was not engaged in the manufacture of goods as notified u/s 10(2)(e),
during the preceding FY;
(f) he shall mention the words “composition taxable person, not eligible to
collect tax on supplies” at the top of the bill of supply issued by him; and
(g) he shall mention the words “composition taxable person” on every notice or
signboard displayed at a prominent place at his principal place of business
and at every additional place(s) of business.
(2) The registered person is not required to furnish fresh intimation every year and he
may continue to pay tax u/s 10 subject to the provisions of the CGSTA and Rules.
57
(1) The option to pay tax u/s 10 shall remain valid as long as the registered person
satisfies all the conditions mentioned earlier.
(2) The day he ceases to satisfy any of the conditions, he shall be liable to pay tax under
the regular provisions u/s 9(1) and shall issue a tax invoice for every taxable supply
made thereafter. Also, he shall file an intimation in FORM GST CMP-04 within 7 days
to withdraw from the scheme.
(3) The registered person who intends to withdraw from the scheme shall file an
application in FORM GST CMP-04 before the date of such withdrawal.
(4) Where the PO suspects the eligibility of the registered person to pay tax u/s 10, he
may issue a SCN to such person in FORM GST CMP-05 to be responded within 15
days from the receipt in FORM GST CMP-06.
(5) Upon receipt of the reply, the PO shall issue an order in FORM GST CMP-07 within
30 days, either accepting the reply or denying the option to pay tax u/s 10 from the
beginning itself or from the date when the provisions of the scheme were
contravened, as the case may be.
(6) Every such person referred in sub-rule (2)/(3)/(5) may furnish a stock statement in
FORM GST ITC-01 within 30 days regarding the stock held by him as on the date of
the withdrawal/denial.
(7) Any intimation/application for such withdrawal/denial regarding any place of

business in a State/UT shall be considered as an intimation regarding all other places
of business registered on the same PAN.
58
• Appointed Day [Sec. 2(9) of CGSTA]: means the date on which the provisions of this
Act shall come into force.
• Commissioner [Sec. 2(24) of CGSTA]: means the Commissioner of central tax and
includes the Principal Commissioner of central tax appointed under section 3 and the
Commissioner of integrated tax appointed under the Integrated Goods and Services
Tax Act.
• Existing law [Sec. 2(48) of CGSTA]: means any law, notification, order, rule or
regulation relating to levy and collection of duty or tax on goods or services or both
passed or made before the commencement of this Act by Parliament or any
Authority or person having the power to make such law, notification, order, rule or
regulation.
•
• Inward supply [Sec. 2(67) of CGSTA]: in relation to a person, shall mean receipt of
goods or services or both whether by purchase, acquisition or any other means with
or without consideration.
• Non-resident taxable person [Sec. 2(77) of CGSTA]: means any person who
occasionally undertakes transactions involving supply of goods or services or both,
whether as principal or agent or in any other capacity, but who has no fixed place of
business or residence in India.
• Turnover in state/UT [Sec. 2(112) of CGSTA]: means the aggregate value of all taxable
supplies (excluding the value of inward supplies on which tax is payable by a person
on reverse charge basis) and exempt supplies made within a State or Union territory
by a taxable person, exports of goods or services or both and inter-State supplies of
goods or services or both made from the State or Union territory by the said taxable
person but excludes central tax, State tax, Union territory tax, integrated tax and
cess.
59
CGSTA, 2017
• Section 31: Tax Invoice
• Section 32: Prohibition of unauthorized collection of tax
• Section 33: Amount of tax to be indicated on tax invoice
• Section 34: Credit and Debit Notes
(1) Supply of taxable goods

Nature of Supply Invoice to be issued before or at the time of…
Involves movement of goods removal of goods for supply

All other cases delivery of goods or making them available
• Tax invoice shall contain prescribed particulars such as description, quantity and value
of goods, the tax charged etc.
• The Government may notify categories of goods in respect of which tax invoice shall be
issued within prescribed time.
(2) Supply of taxable services
Date of Provision Prescribed Date

of Service [ ]
• Tax invoice shall contain prescribed particulars such as description, value of services,
the tax charged etc.
• The Government may notify categories of services in respect of which
o any other document issued shall be deemed to be tax invoice
o tax invoice may not be issued
60
Barring the cases mentioned in Rule 54, a tax invoice shall contain these particulars –
Address of Delivery
The invoice shall be issued in

Triplicate (in case of supply of goods) Duplicate (in case of supply of services)
ORIGINAL for recipient ORIGINAL for recipient

DUPLICATE for transporter DUPLICATE for supplier
TRIPLICATE for supplier
61
Notfn. No.: 12/2017 – CT and 05/2017 - IT

A registered person shall be required to mention the following no. of digits of HSN code on
the invoice –
Sl. No. Annual Turnover in the preceding FY No. of digits of HSN Code
1. Upto ₹1.5 crores NIL

2. ₹ 1.5 crores - ₹ 5 crores 2
3. Above ₹5 crores 4
In case of export of goods/services, the invoice shall bear the following words–
“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 may be, and instead of the name of State, shall bear the name of the Country of
destination.
Taxable service supplied by… Invoice to be issued…
General supplier Within 30 days

An insurer/bank/FI/NBFC Within 45 days
An insurer/bank/FI/NBFC/telecom Before or at the time such supplier records
operator/any other class of notified the same in his books of account
suppliers, supplying taxable services OR
between distinct persons Before the end of the quarter in which
supply was made
(3) Overruling sub-sections (1) and (2) –

(a)
Date of Issuance of RC
Effective Date of Registration/ 1 month

Date on which liability to register arises
62
Where the registered person has made taxable supply to an unregistered person during the
said period, he may issue –
In case of Where the value is One consolidated invoice
All supplies Any value Per recipient
Inter-state supplies Below ₹2,50,000 Per state
(b) If the value of goods/service supplied < ₹200

the supplier may not issue tax invoice
subject to prescribed conditions.
Subject to the fulfilment of the following conditions, a registered person shall issue a
consolidated tax invoice at the end of each day in lieu of issuing an invoice u/s 31(3)(b) in
respect of all such supplies.
(c)
Scenario Document to be issued
Supply of exempted goods/services
Bill of Supply
Composition Supplier
o Proviso – Similar to clause (b) above
63
A bill of supply shall contain these particulars –
However, any tax invoice or similar document issued under any other Act in respect of any
non-taxable supply shall be treated as BoS.
(d)
Receipt of advance payment Receipt Voucher
64
A receipt voucher shall contain these particulars –
Condition (at the time of receipt of advance…) Alternative
Rate of tax is not determinable 18%

Nature of supply is not determinable Inter-state
(e)
Advance received but supply not made Refund voucher
65
A refund voucher shall contain these particulars –
(f)
Supplies taxable on reverse charge basis Tax Invoice
received from unregistered suppliers • by the recipient on himself
• on the date of receipt
(g)
66
Payment for supplies taxable on reverse

Payment Voucher
charge basis
A payment voucher shall contain these particulars –
67
Where an invoice is required to be issued under clause (f), the registered person may issue a
consolidated invoice at the end of a month for supplies received from unregistered suppliers
u/s 9(4) during that month, if the aggregate value of such supplies exceed ₹ 5,000 per day
from any or all the suppliers.
(4) In case of continuous supply of goods,

the invoice shall be issued before or at the time
o each successive statement of accounts is issued, or
o each successive payment is received.
(5) In case of continuous supply of services, subject to (3)(d)
Payment
Due Date ascertainable Due date not Linked to completion of
by contract ascertainable by contract an event
On or before the due Before or at the time of On or before the date of

date of payment receipt of payment completion of the event
(6) In case where the supply of services

ceases under a contract
before the completion of the supply,
the invoice pertaining to supply till then
shall be issued at the time of such cessation.
(7) Overruling sub-section (1), in case of goods sent on approval,

where the goods are removed before supply,
the invoice shall be issued
Earlier of
6 months from the Before or at the time
date of removal of supply

Clarification on issues wherein the goods are moved within the State or from the State of
registration to another State for supply on approval basis
68
Various communications have been received particularly from the suppliers of

jewellery etc. who are registered in one State but may have to visit other States
(other than their State of registration) and need to carry the goods (such as jewellery)
along for approval. In such cases if jewellery etc. is approved by the buyer, then the
supplier issues a tax invoice only at the time of supply. Since the suppliers are not
able to ascertain their actual supplies beforehand and while ascertainment of tax
liability in advance is a mandatory requirement for registration as a casual taxable
person, the supplier is not able to register as a casual taxable person. It has also been
represented that such goods are also carried within the same State for the purposes
of supply. Therefore, in exercise of the powers conferred under section 168 (1) of the
Central Goods and Services Tax Act, 2017, for the purpose of uniformity in the
implementation of the Act, it has been decided to clarify this matter as follows –
2. It is seen that clause (c) of sub-rule (1) of rule 55 of the Central Goods and Services
Tax Rules, 2017 (hereafter referred as “the said Rules”) provides that the supplier shall
issue a delivery challan for the initial transportation of goods where such
transportation is for reasons other than by way of supply. Further, sub-rule (3) of the
said rule also provides that the said delivery challan shall be declared as specified in
rule 138 of the said Rules. It is also seen that sub-rule (4) of rule 55 of the said Rules
provides that “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”.
3. A combined reading of the above provisions indicates that the goods which are taken
for supply on approval basis can be moved from the place of business of the
registered supplier to another place within the same State or to a place outside the
State on a delivery challan along with the e-way bill wherever applicable and the
invoice may be issued at the time of delivery of goods. For this purpose, the person
carrying the goods for such supply can carry the invoice book with him so that he
can issue the invoice once the supply is fructified.
4. It is further clarified that all such supplies, where the supplier carries goods from one
State to another and supplies them in a different State, will be inter-state supplies
and attract integrated tax in terms of Section 5 of the Integrated Goods and Services
Tax Act, 2017.
5. It is also clarified that this clarification would be applicable to all goods supplied
under similar situations.
this circular.
7. Difficulty, if any, in the implementation of the above instructions may please be

brought to the notice of the Board. Hindi version would follow.
(1) An unregistered person

shall not collect any tax
under these laws
on supplies made by him.
69
(2) A registered person

shall not collect any tax
except as mentioned in these laws
on supplies made by him.
Overruling everything,
where any supply is made for a consideration,
every person who is liable to pay tax
shall indicate the tax amount for such supplies
on all documents relating to assessment, tax invoice and such like.
Credit Notes
(1) The supplier may issue to the recipient a credit note containing prescribed details in the
following cases –
o Where a tax invoice has been issued for supply of goods/services, but the value
or tax amount mentioned in the invoice is found to exceed the actual amount.
o Where the goods supplied are returned by the recipient.
o Where goods/services supplied are found to be deficient.
(2) The issuer shall declare the details of such credit note
in the return pertaining to the month of the issue,
but not later than September of the following FY of supply
or the date of furnishing the relevant annual return
whichever is earlier.
• The output tax liability of the supplier shall not be reduced

if the incidence of tax and interest on such supply has been passed on
to any other person.
Debit Notes
(3) The supplier may issue to the recipient a debit note containing prescribed details in the
following cases –
o Where a tax invoice has been issued for supply of goods/services, but the value
or tax amount mentioned in the invoice is found to be less than the actual
amount.
(4) The issuer shall declare the details of such debit note
in the return pertaining to the month of the issue.
• Tax invoice includes “revised invoice”

• Debit Note includes “supplementary invoice”
70
A revised tax invoice/ debit note/ credit note shall contain these particulars –
Where a Dr. Note is issued for any tax payable in accordance with provisions of Sec.
74/129/130, “INPUT TAX CREDIT NOT ADMISSIBLE” should be mentioned prominently on the
face of the document
Overruling Rule 46/49/54,

where a registered person is making taxable as well as exempted supplies
to an un-registered person,
he may issue a single “invoice-cum-bill of supply” for all such supplies.
71
(1) For the following purposes, a consignor may issue DC at the time of removal of goods,
instead of invoice:
(a) supply of liquid gas where the quantity at the time of removal from the place
of business of the supplier is not known,
(b) transportation of goods for job work,
(c) transportation of goods for reasons other than by way of supply, or
(d) such other supplies as may be notified by the Board
A delivery challan shall contain these particulars –
(2) The challan shall be prepared in triplicate –

o ORIGINAL for consignee
o DUPLICATE for transporter
o TRIPLICATE for consigner
(3) The goods being transported on challan shall be declared in accordance with e-Way
Bill Rules.
(4) Where the goods being transported are for the purpose of supply, but the supplier could
not issue a tax invoice at the time of removal of goods, he shall do so after delivery of
goods.
(5) Where the goods are being transported in SKD/CKD condition-
72
(a) Complete invoice shall be issued before dispatch of FIRST consignment

(b) DC shall be issued for every subsequent consignment, w.r.t. the invoice
(c) A copy of DC and certified copy of invoice shall be sent along with each
consignment
(d) The original invoice shall be sent along with the last consignment.
• Address of delivery [Sec. 2(2) of CGSTA]: means the address of the recipient of goods
or services or both indicated on the tax invoice issued by a registered person for
delivery of such goods or services or both.
• Assessment [Sec. 2(11) of CGSTA]: means determination of tax liability under this Act
and includes self-assessment, re-assessment, provisional assessment, summary
assessment and best judgment assessment.
• Continuous supply of goods [Sec. 2(32) of CGSTA]: means a supply of goods which is
provided, or agreed to be provided, continuously or on recurrent basis, under a
contract, whether or not by means of a wire, cable, pipeline or other conduit, and for
which the supplier invoices the recipient on a regular or periodic basis and includes
supply of such goods as the Government may, subject to such conditions, as it may,
by notification, specify.
• Output tax [Sec. 2(82) of CGSTA and Sec. 2(18) of IGSTA]: in relation to a taxable
person, means the tax chargeable under this Act on taxable supply of goods or
services or both made by him or by his agent but excludes tax payable by him on
reverse charge basis.
• Removal [Sec. 2(96) of CGSTA]: in relation to goods, means—
(a) despatch of the goods for delivery by the supplier thereof or by any other
person acting on behalf of such supplier; or
(b) collection of the goods by the recipient thereof or by any other person acting
on behalf of such recipient.
73
(1) Every registered person who causes movement of goods

o in relation to a supply, or
o for reasons other than supply, or
o due to inward supply from an un-registered person
of consignment value exceeding ₹50,000, shall furnish information relating to the
said goods in FORM GST EWB-01 (Part – A), prior to the commencement of such
movement.
However, in the following cases, the threshold limit of ₹50,000 shall not be
considered for the generation of e-way bills
STATE/UT A STATE/UT B
Principal Job worker
Supplier of handicraft goods [as per Notfn. No.: 32/2017 – CT] Any recipient
(2) Where the goods are transported by a registered person

as consignor/consignee, whether
o in his own conveyance, or
o in a hired conveyance, or
o by railways, or
o by air, or
o by vessel,
he may generate the e-way bill after furnishing information in FORM GST EWB-01
(Part – B)
(3) In case the e-way bill is not generated,

and the goods are handed over to a road transporter,
the registered person shall furnish the information relating to the transporter in FORM
GST EWB-01 (Part – B)
and the transporter shall generate the e-way bill on the basis of information
furnished by the registered person in FORM GST EWB-01 (Part – A)
• The registered person (or transporter) is free to opt for generating and carrying the e-
way bill in case the consignment value is below ₹50,000.
• In case an unregistered person causes the movement of goods
o in his own conveyance, or
o a hired conveyance, or
o through a transporter,
he (or the transporter) may generate the e-way bill at his option
NOTE: the movement shall be said to be caused by the recipient, if he is known at the time of
movement of goods.
• Also, where the goods are transported within 10 km

of the same state/UT
from the place of business of consigner
to the place of business of the transporter for further transportation.
74
the supplier (or transporter) may not furnish the details

in FORM GST EWB-01 (Part – B)
(4) Upon generation of the e-way bill, a unique EBN shall be made available to
o the supplier,
o the transporter and
o the recipient
(5) In case a transporter transfers the goods from one conveyance to another in the
course of transit, he shall first update the details of conveyance in the e-way bill in
FORM GST EWB-01 before any such transfer.
• However, where the goods are transported within 10 km
of the same state/UT
from the place of business of the transporter
to the place of business of the consignee,
the transporter may not update the details
in the e-way bill
(6) Where multiple consignments are intended to be transported in one conveyance,

the transporter may indicate the serial numbers of the e-way bills generated for each
consignment and generate a consolidated e-way bill in FORM GST EWB-02
before the movement of the goods.
(7) Where the consignor/consignee has not generated FORM GST EWB-01 for goods
worth value exceeding ₹50,000, the transporter shall generate the same on the
basis of invoice/BoS/challan, and may also generate a consolidated e-way bill in
FORM GST EWB-02 prior to the movement of goods.
(8) The information furnished in FORM GST EWB-01 (Part – A) shall be made available to
the registered supplier who may utilize the same for furnishing FORM GSTR – 1.
In case such information is furnished by an unregistered supplier, he shall be
informed electronically, if the mobile no. or the e-mail ID is available.
(9) Where an e-way bill has been generated, but goods are either
o not transported, or
o not transported as per the details furnished in the e-way bill,
the e-way bill may be cancelled within 24 hrs. of generation.
However, it cannot be cancelled if it has been verified in transit as per Rule 138B.
(10) An (consolidated) e-way bill generated under this rule shall be valid for the following
periods from the relevant date:
Distance Validity Period
Upto 100 km 1 day

For every additional 100 km or part thereof 1 additional day
However, The Commissioner may extend the validity period of certain notified
categories of goods.
• In case the goods cannot be transported within the validity period of the e-way bill
under exceptional circumstances, the transporter may generate another e-way bill
after updating the details in FORM GST EWB-01 (Part – B)
NOTE: “Relevant date” means the date on which the e-way bill has been generated and each
day shall be counted as 24 hrs.
75
(11) The details of e-way bill generated shall be made available to the recipient, if he is
registered, and he shall communicate his acceptance or rejection of the consignment
covered by the e-way bill.
(12) If he does not do so within 72 hrs. of the details being made available to him, it shall
be deemed that he has accepted the said details.
(13) The e-way bill generated shall be valid in every state and UT.
(14) Overruling the entire rule, no e-way bill is required to be generated –

(a) where specified goods like animals, agricultural produce etc. are being
transported.
(b) where the goods are being transported by a non-motorised conveyance.
(c) where the goods are being transported from the port, airport, air-cargo
complex and land customs station to an ICD/CFS for clearance by Customs
(d) In respect of movement of goods within notified areas
(1) The PIC of a conveyance shall carry –

(a) The invoice/BoS/Delivery Challan, and
(b) A copy of the e-way bill or the e-way bill number, either physically or
mapped to a RFID embedded on to the conveyance in manner notified by the
Commissioner
(2) A registered person may obtain an Invoice Ref. No. by uploading a tax invoice in
FORM GST INV-1, which shall be valid for 30 days, and produce the same for
verification by the PO in lieu of the tax invoice.
(3) Where the invoice is so uploaded by the registered person, the information in FORM
GST EWB-01 (Part – A) shall be auto-populated on the basis of FORM GST INV-1
(4) The Commissioner may notify a class of transporters to obtain a unique RFID and
embed it on to the conveyance, and map the e-way bill to the RFID prior to the
movement of goods.
(5) Overruling sub-rule (1)(b), the Commissioner may notify that the PIC of the
conveyance shall carry the following documents instead of the e-way bill –
(a) Tax invoice/BoS/Bill of Entry, or
(b) Delivery Challan, for goods being transported for reasons other than supply.
76
(1) The Commissioner or any other empowered officer may authorise the PO to
intercept any conveyance to verify the e-way bill or the e-way bill no. in physical
form for all inter-state and intra-state movement of goods.
(2) The Commissioner shall get RFID readers installed at places where the verification of
movement of goods is required to be carried out and the verification shall be done
through such device readers where the e-way bill has been mapped with the said
device.
(3) The physical verification of conveyances shall be carried out by an authorized PO.
However, on receipt of specific information on evasion of tax, physical verification of
a specific conveyance can also be carried out by any officer after obtaining prior
approval of the Commissioner or an authorized officer.
(1) A summary report of every inspection of goods in transit shall be recorded by the PO
in FORM GST EWB-03 (Part – A) within 24 hrs., and the final report in FORM GST
EWB-03 (Part – B) within 3 days of such inspection.
(2) Where the physical verification of goods being transported on any conveyance has
been done during transit at one place, no further physical verification shall be carried
out unless a specific information relating to tax evasion is received subsequently.
Where a vehicle has been intercepted and detained for more than 30 min, the transporter
may upload the information regarding the detention of vehicle in FORM GST EWB-04.
• PO [Sec. 2(91) of CGSTA]: in relation to any function to be performed under this Act,
means the Commissioner or the officer of the central tax who is assigned that
function by the Commissioner in the Board.
77
CGSTA, 2017
• Section 12: Time of Supply of Goods
• Section 13: Time of Supply of Services
• Section 14: Change in Rate of Tax in Respect of Supply of Goods/Services
(2)
Earliest of
Invoice Payment
Actual Date Last Date of Received* by

of Issue Issue the Supplier
• Supply shall be deemed to have been made to the extent it is covered by the
invoice/payment.
• Where the supplier of taxable goods
receives up to ₹1,000 in excess of the amount invoiced,
he may opt that
the time of supply of such excess shall be
the date of issue of invoice for the said amount.
78
Notfn. No. 40/2017-CT

The CG has notified the registered persons whose aggregate turnover
o in the preceding FY did not exceed ₹1.5 crores or
o in the year in which he has obtained registration, is likely to be less than ₹1.5 crores
and who did not opt for the composition levy as the class of persons who shall pay the
CGST on outward supply of goods at the actual/last date of issue of invoice, including in the
situations attracting section 14 of the CGSTA.
(3) In case of reverse charge
Earliest of
Goods Payment Invoice
Date of Entered in the Debited from 30 days from

Receipt books of the the account of the issue date
Recipient the Recipient
OR
Date of Entry in the books of the Recipient
(4) In case of supply of vouchers
79
Supply of voucher All other cases

is identifiable
Date of issue of Date of redemption

voucher of voucher
80
(5) In all other cases
Periodical return
has to be filed All other cases
Actual date of Date on which

filing the return tax is paid
(6) In case of interest/late fee/penalty for delayed payment
the time of supply shall be
the date on which the supplier receives such additional payment
(2)
Earliest of
Invoice issued Invoice not Any
within time issued within other
limit time limit case
Receipt* Receipt* Recipient

Issue of of Provision of shows the
Invoice of Service receipt in
Payment Payment
his books
81
• Supply shall be deemed to have been made to the extent it is covered by the
invoice/payment.
• Where the supplier of taxable services
receives up to ₹1,000 in excess of the amount invoiced,
he may opt that
the time of supply of such excess shall be
the date of issue of invoice for the said amount.
(3) In case of reverse charge
Earliest of
Payment Invoice
Entered in the Debited from
books of the the account of 60 days from
Recipient the Recipient the issue date
OR
Date of Entry in the books of the Recipient
82
• Supplier = Associated Enterprise outside India
Earlier of
Entry in the books Date of Payment
of the Recipient
• Section 13(4) = Section 12(4)
• Overruling Section 12 and 13, the time of supply shall be determined as –

(a)
83
(i)
(ii)
84
(iii)
(b)
85
(i)
(ii)
86
(iii)
NOTE: Date of Receipt of Payment
4 working days
• Associated Enterprises [Sec. 2(12) of CGSTA]: shall have the same meaning as
assigned to it in section 92A of the Income-tax Act, 1961.
• Voucher [Sec. 2(118) of CGSTA]: means an instrument where there is an obligation to
accept it as consideration or part consideration for a supply of goods or services or
both and where the goods or services or both to be supplied or the identities of their
potential suppliers are either indicated on the instrument itself or in related
documentation, including the terms and conditions of use of such instrument.
87
CGSTA, 2017
• Section 15: Value of Taxable Supply
(1) Value of Supply = Transaction Value

Transaction Value = The price actually paid or payable for the said company
Conditions:
o The supplier and the recipient of supply are NOT RELATED
o The price is the SOLE CONSIDERATION for the supply
For example, Mr. A supplied NIL rated goods to Mr. B at a price of ₹1,00,000. What is the
value of supply?
₹1,00,000
(2) Inclusions:
(a) Any taxes, duties, cesses, fees and charges levied by laws other than CGSTA,
SGSTA, UTGSTA, IGSTA and GST(CS)A, if charged separately.
(b) Any amount incurred by the recipient, but which was liable to be paid by the
supplier and not included in the price.
(c) Incidental expenses charged, including commission and packing or anything
done before or at the time of delivery of goods/supply of services.
(d) Interest or late fee or penalty for delayed payment.
(e) Subsidies directly linked to the price except the ones provided by CG or SG
▪ To be included in the value of supply of the supplier who receives the
subsidy
MR. A supplied a car to MR. B at an all-inclusive price of ₹5,00,000. The infrastructure
cess levied on this car is @ 1%, which MR. A charged separately in the invoice. The car
stereo was not available with MR. A at the moment. MR. B had good contacts at Sony
India, so he asked MR. A to reduce the price with ₹10,000 and he will purchase the same
from Sony itself. MR. A did the same. MR. A also charged ₹1,000 for decorating the car
with flowers and gift wrapping with satin ribbons. In order to promote small dealers of the
state, The State Government grants subsidy of ₹50,000 directly linked to the price, to MR.
A on the sale of this type of car. This subsidy has not been considered while calculating the
all-inclusive price for MR. B. What is the value of supply if the GST rate for this car is 28%?
Particulars Amount (₹)

Total consideration received 5,00,000.00
Less: Infrastructure cess @ 1% -
Less: Amount incurred by Mr. B for stereo (first less then add back) -
Less: Car decoration charges -
Less: State Government subsidy (50,000.00)
Amount inclusive of GST 4,50,000.00
Less: GST charged {(4,50,000.00 X 28)/128} (Rule 35) (98,437.50)
Value of Supply 3,51,562.50
88
(3) Exclusion:
Any discount given
o Before or at the time of supply if
▪ such discount is duly recorded in the invoice
o After the supply if
▪ such discount is established in an agreement entered into at or before
the time of supply and is specifically linked to relevant invoices.
▪ ITC attributable to this discount has been reversed by the recipient of
supply
In the previous example, in order to build healthy relation with Mr. B, Mr. A further allowed
5% of discount at the time of supply. How will this impact the value of supply?
Particulars Amount (₹)

Amount before discount 4,50,000.00
Less: Discount @ 5% on ₹4,50,000.00 (22,500.00)
Amount inclusive of GST 4,27,500.00
Less: GST charged {(4,27,500.00 X 28)/128} (Rule 35) (93,515.63)
Value of Supply 3,33,984.37
(4) Where the value cannot be determined as per sub-section (1), the same shall be
determined in the prescribed manner –
o Determination of Value of Supply Rules
(5) Value of certain notified supplies shall be determined in the prescribed manner –
o Determination of Value of Supply Rules
(a) The open market value

If not available, then
(b) Consideration in money + Equivalent amount in money for non-monetary
consideration if such amount is known at the time of supply
(c) Value of supply of like kind and quality
(d) Consideration in money + Equivalent amount in money for non-monetary
consideration as determined by
(i) Rule 30
(ii) Rule 31
A new laptop is available at a price of ₹40,000 along with the exchange of an old
laptop. The price of the new laptop without exchange is ₹50,000. Determine the value
of supply?
₹50,000
A new laptop is available at a price of ₹40,000 along with a barter of printer

manufactured by the recipient. The value of this printer at the time of supply is ₹5,000.
However, the open market value of the laptop is not known at the time of supply.
Determine the value of supply?
89
₹45,000
In order to promote the sale of a particular model of laptop, it is made available at a

price of ₹40,000 along with the exchange of an old laptop whose value cannot be
determined at the time of supply. The open market price of the new laptop is not known
as well. However, the manufacturer sells another model of laptop with same
configuration and features at a price of ₹45,000. Determine the value of supply?
₹45,000
NOTE: “Open market value” of a supply of goods/services means the full value in money,
excluding the IGST, CGST, SGST, UTGST and the CC payable by a person in a transaction,
where the supplier and the recipient of the supply are not related and price is the sole
consideration, to obtain such supply at the same time when the supply being valued is
made.
NOTE: “Supply of goods/services of like kind and quality” means any other supply of
goods/services made under similar circumstances that, in respect of the characteristics,
quality, quantity, functional components, materials, and reputation of the goods/services
first mentioned, is the same as, or closely or substantially resembles, that supply of
goods/services.
The value of supply between distinct/related persons, other than when made through an
agent, shall be –
(b) Value of supply of like kind and quality
(c) Value as determined by
(i) Rule 30
(ii) Rule 31
1. Option available –
Related
A B Not Related
C
Value of Supply from A – B = 90% of price charged by B from C for like kind and
quality goods.
2. If recipient is eligible for full ITC
Open market value = Value declared in the invoice
Mrs. C sold a new laptop to her son Mr. B at a price of ₹40,000. She sells the same
laptop in market at a price of ₹50,000. Determine the value of supply?
₹50,000
Mrs. C sold a new laptop to Mr. B at a price of ₹40,000. The open market price of this
model of laptop is not known. However, Mrs. C sells another model of laptop in the
90
market, with same configuration and features, at a price of ₹45,000. Determine the
value of supply?
₹45,000
The value of supply of goods between principal and his agent, shall be –
OR
Option available –
P Agent
A Not Related
C
Value of Supply from P – A = 90% of price charged by A from C for like kind and
quality goods.
(b) Value as determined by
(i) Rule 30
(ii) Rule 31
A principal supplies textile to his agent and the agent supplies textile of like kind and
quality in subsequent supplies at a price of ₹5,000 per lot on the day of supply. Another
independent supplier is supplying textiles of like kind and quality to the said agent at the
price of ₹4,800 per lot. Determine the value of supply?
₹4,800 OR 90% of ₹5,000 = ₹4,500
Value of Supply = 110% of cost of production/manufacture/acquisition of goods/provision of

service
Determine the value of supply using reasonable means consistent with the principles and
general provisions of the Act and these rules.
Option for Supplier of Services – Go for Rule 31, disregarding Rule 30
(1) Option to determine the value of certain supplies in the following manner –
(2) Services in relation to purchase or sale of foreign currency, including money

changing –
(a) Foreign Currency INR
Value of Supply = {(Buying or Selling Rate) – (RRR)} X Units of currency
91
Value of Supply = 1% X Gross Amount of INR

Value of Supply = Forex sold X RRR = INR
Forex purchased X RRR = INR
Whichever is lower INR X 1%
Determine the value of supply in following cases:
I. Sold 10,000 units of USD @ USD 1 = INR 60 (RRR: USD 1 = INR 59)
Value of Supply = INR (60 – 59) X 10,000 = INR 10,000
II. Purchased 5,000 units of KRW @ KRW 1 = INR 0.60 (RRR: Unavailable)
Value of Supply = INR {1% X (0.60 X 5,000)} = INR 30
III. Exchanged 10,000 JPY for 80 EUR (RRR: JPY 1 = INR 0.50, EUR 1 = INR 80)
Value of Supply = INR (10,000 X 0.50) = INR 5,000
INR (80 X 80) = INR 6,400
Lower of the two = INR 5,000 X 1% = INR 50
However, a supplier of services may opt for clause (b) for a FY and such option shall not be
withdrawn during the remaining part of that FY.
(b) Foreign Currency INR
Gross Amount of INR Value of Supply
Upto ₹1,00,000 Higher of [₹250 OR 1% of Gross Amount]
₹1,00,000 - ₹10,00,000 ₹1,000 + 0.5% of Gross Amount
Above ₹10,00,000 Lower of [(₹5,500 + 0.1% of Gross Amount) OR ₹60,000]
A forex dealer entered into following transactions in a particular tax period. Determine
the value of supply:
• 10 conversions of USD to EUR = ₹20,00,000 per transaction
• 20 conversions of JPY to USD = ₹5,00,000 per transaction
• 5 conversions of INR to USD = ₹20,000 per transaction
• (₹5,500 + 0.1% X ₹20,00,000) X 10 = ₹75,000

• (₹1,000 + 0.5% X ₹5,00,000) X 20 = ₹70,000
• ₹250 X 5 = ₹1,250
(3) Services in relation to booking of air tickets by air travel agents –

o Domestic bookings - 5% of basic fare
o International bookings - 10% of basic fare
NOTE: Basic Fare = That part of the air fare on which commission is normally paid to the
agent by the airline.
(4) Services in relation to life insurance business –

(a) If the amount allocated for investments/savings on behalf of the policyholder
is intimated to him at the time of supply:
Gross premium charged (-) Amount allocated for investment
(b) Single premium annuity policy other than above:
10% X single premium charged
(c) Other cases:
Year I: 25% of premium charged
Subsequent years: 12.5% of premium charged
Only risk cover policy,
Value of supply = premium charged
92
(5) Supply of second hand goods by a dealer of second hand goods, i.e.
o used goods as such, or
o used goods after minor processing, without changing its nature
without availing any ITC on such goods
Value of Supply = Higher of [₹0 or (Selling price – Purchase price)]
NOTE: In case of goods repossessed from an unregistered defaulting borrower, for the
purpose of recovery of loan
Purchase price = Original purchase price (-) 5% for every quarter or part from purchase (by
the defaulting borrower) to disposal (by the lender) of such goods
Mr. A (un-registered) defaulted on a loan of ₹5,00,000 taken from Mr. B. As agreed
between them earlier, Mr. B took the possession of Mr. A’s favourite car which he had
bought for ₹5,00,000 1 year ago, and sold it off after 11 months for ₹3,50,000.
Determine the value of supply for Mr. B?
Original purchase value of the car for Mr. A ₹5,00,000

Less: 40% (5% per quarter for 1 yr. and 11 months) ₹(2,00,000)
Purchase price of car for Mr. B ₹3,00,000
Value of Supply (₹3,50,000 - ₹3,00,000) ₹50,000
(6) Value of redeemable token/voucher/coupon/stamp (except postage stamp) =

Money value of the goods/services received on redemption
(7) Value of supply of services between notified distinct persons

o made in course or furtherance of business
o without consideration
o ITC is available
shall be deemed to be NIL
93
Value of supply of services in case of pure agent –

The expenditure/costs incurred by supplier as a pure agent of the recipient shall be excluded
from the value of supply, if the following conditions are satisfied:
• He makes payment to the third party on authorization of the recipient.
• Such payment made is separately indicated in the invoice from pure agent to
recipient.
• The supplies procured from third party are in addition to the services he supplies on
his own account.
NOTE: “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;
(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.
A CA firm is engaged to handle the legal work pertaining to the incorporation of a
Company. Other than its service fees, the firm also recovers from the Company,
registration fee and approval fee for the name of the company paid to the RoC. The fees
charged by the RoC for the registration and approval of the name are compulsorily levied
on the Company. The CA firm is merely acting as a pure agent in the payment of those
fees. Therefore, the firm’s recovery of such expenses is a disbursement and not part of the
value of supply made to the Company.
(1) For determination of value of goods, the rate of exchange of currency = Rate notified
by CBEC u/s 14 of CA, 1962 for the date of time of supply.
(2) For determination of value of services, the rate of exchange of currency = Rate
determined as per the GAAP for the date of time of supply
For determination of value of supply inclusive of GST:

GST = Value inclusive of tax X Applicable GST Rate
100 + Applicable GST Rate
94
CGSTA, 2017
• Section 22: Persons liable for registration
• Section 23: Persons not liable for registration
• Section 24: Compulsory registration in certain cases
• Section 25: Procedure for registration
• Section 26: Deemed registration
• Section 27: Special provisions relating to CTP/NRTP
• Section 28: Amendment of registration
• Section 29: Cancellation of registration
• Section 30: Revocation of cancellation of registration
(1) Every supplier shall be liable to be registered

in the State/UT from where he makes a taxable supply
if following condition is satisfied:
Where Aggregate Turnover exceeds
Special Category States ₹ 10,00,000

(except J&K)
All other states and UTs ₹ 20,00,000
• “Aggregate Turnover” shall include all supplies made by the taxable person, including
the ones made on behalf of all his principals.
• Supply of goods after completion of job work by a registered job worker shall be
treated as supply by the principal and included in the A.T. of the principal.
(2) Every person

who was registered or held a licence under
any subsumed indirect tax law
as on the day immediately preceding the GST implementation day
shall be liable to be registered under GST laws
w.e.f. the appointed day.
(3) Where a business concern is succeeded or transferred

as a going concern
from a registered taxable person to another person
the successor or transferee shall be liable to be registered
w.e.f. the date of such transfer or succession.
(4) Overruling sub-sections (1) and (3),

in case of amalgamation or demerger
pursuant to an order by HC, Tribunal or otherwise
the transferee shall be liable to be registered
95
w.e.f. the date on which the RoC issues incorporation certificate

giving effect to such order by HC or Tribunal.
(1) The following persons shall not be liable to register themselves –

(a) A person engaged exclusively in supplies that are not liable to or wholly exempt
from GST
(b) An agriculturist, to the extent of supply of produce out of cultivation of land
(2) The government may notify the categories of persons who may be exempted from
obtaining registration.
Notfn. No.: 05/2017 – CT
The suppliers of taxable goods/services liable to reverse charge mechanism u/s 9(3).
Notfn. No.: 32/2017 – CT and 08/2017 - IT

A CTP making intra-state (or a person making inter-state) taxable supplies of handicraft
goods and satisfying the following conditions –
o The aggregate value of such supplies ≤ ₹20 lakhs (10 lakhs for Special Category
states except J&K) in a FY
o He shall obtain a PAN and generate an e-way bill as prescribed
Notfn. No.: 07/2017 – IT

Job Workers, other than those –
o who are liable to register u/s 22 or
o who take voluntary registration u/s 25 or
o who are involved in jewellery, goldsmiths’ and silversmiths’ wares and other articles
engaged in making inter-state supply of services to a Registered Person.
Notfn. No.: 10/2017 – IT

The persons making inter-State supplies of taxable services and having
an aggregate turnover ≤ ₹20 lakhs (10 lakhs for Special Category states except J&K) in a FY.
(1) Overruling Section 22(1),

the following persons shall be required to register themselves –
(i) Persons making any inter-state taxable supply
(ii) CTP making taxable supply
(iii) Persons required to pay tax under RCM
(iv) Persons required to pay tax under Section 9(5)
(v) NRTP making taxable supply
(vi) Deductor of tax at source u/s 51, whether or not separately registered.
(vii) Persons supplying on behalf of other taxable persons, as agent etc.
(viii) ISD, whether or not separately registered.
(ix) Supplier of goods/services who supply through an e-commerce operator, other
than those covered u/s 9(5), who is required to collect tax at source u/s 52
(x) Every e-commerce operator
(xi) Every person supplying OIDAR services from outside India, to an un-registered
person in India
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(xii) Persons as notified by the Government
(1) Every person liable to register u/s 22 and 24

shall apply for registration
in the prescribed manner and subject to prescribed conditions
in every such State/UT in which he is so liable
as per following time limits:
Category of persons Time limit for registration
CTP/NRTP 5 days before commencement of business

All other cases Within 30 days
• Every person supplying from territorial waters of India

shall obtain the registration
in the coastal state/UT
where the nearest point of baseline is located
(2) Single State/UT – Single Registration

• A person having multiple business verticals in a state/UT
may be granted separate registrations for each vertical
(1) Any person having multiple business verticals within a State/UT, seeking a separate
registration for any of its business verticals, shall be granted the same subject to
following conditions –
(a) Such person has more than 1 business vertical
(b) Registration under composition levy provisions shall not be granted to any
business vertical if any of the other business verticals is paying tax under
normal provisions.
(c) All separately registered business verticals shall pay tax and issue a tax
invoice for supplies made to another registered business vertical.
(2) A registered person eligible to obtain separate registration for business verticals may
submit a separate application in FORM GST REG-01 for each such vertical.
(3) The provisions of Rule 9 and Rule 10 relating to verification and grant of registration
shall apply mutatis mutandis to an application submitted under this rule.
(3) A person may get voluntary registration

despite being not liable for the same
and all the provisions of GST laws shall apply on him.
97
(1) Every person liable to be registered u/s 25(1) or seeking registration u/s 25(3), except:
o NRTP
o TDS deductor u/s 51
o TCS collector u/s 52
o Supplier of OIDAR services from a place outside India to a NTOR
shall declare his PAN, mobile no., e-mail ID, State/UT in FORM GST REG-01 (Part – A)
before applying for registration.
• A person having a SEZ unit or being a SEZ developer shall make a separate
application for registration as a business vertical distinct from his other units located
outside the SEZ.
• Every ISD shall make a separate application for registration as such ISD.
(2) The PAN, mobile no. and e-mail ID shall be validated/verified.
(3) On successful verification a temporary reference no. shall be generated and

communicated to the applicant.
(4) Using this reference no. the applicant shall submit a duly signed application in FORM
GST REG-01 (Part – B) along with the specified documents.
(5) On receipt of the application an acknowledgement shall be issued in FORM GST

REG-02.
(6) A person applying for registration as a CTP shall be given a temporary reference no.
for making advance deposit of tax and the acknowledgement shall be issued only
after the said deposit.
(4) A person who has obtained or is required to obtain

more than one registration,
whether in one State/UT or more than one State/UT
shall be considered distinct persons in respect of each such registration.
(5) Where a person who has obtained or is required to obtain

registration in a State/UT in respect of an establishment,
has an establishment in another State/UT
then such establishments shall be treated as establishments of distinct persons.
(6) Eligibility Condition:

o Every person shall have a PAN issued under ITA, 1961
o Every tax deductor may have TAN issued under ITA, 1961
instead of the PAN
(7) Overruling above, a NRTP may be granted registration

on the basis of other prescribed documents.
(8) Where a person liable for registration

fails to obtain the same,
the PO may proceed to register such person
in the prescribed manner
without adversely affecting the proceedings under any law.
98
(1) Where as a result of any survey, enquiry, inspection, search or any other
proceedings, the PO finds that a person liable to registration has failed to apply for
the same, he may register the said person temporarily and issue an order in FORM
GST REG-12
(2) Such registration shall be effective from the date of the order.
(3) Every person to whom a temporary registration has been granted shall submit an
application for registration u/r 8 or 12 within 90 days from the grant of such
registration.
However, in case the said person has appealed against the grant of temporary
registration, he shall submit the application of registration within 30 days from the
date of issuance of order of the Appellate Authority, upholding the liability to register.
(4) Rules 9 and 10 shall apply mutatis mutandis.
(5) The GSTIN assigned as a result of such verification shall be effective from the date of
order granting registration under sub-rule (1).
(9) Overruling sub-section (1),

the following persons shall be granted UIN
in the prescribed manner and prescribed purposes
including refund of taxes for notified inward supplies:
o Any specialized agency of the UN
o Any multilateral financial institution and organization under UN(PI)A, 1947
o Consulate or Embassy of foreign countries
o Any other person notified by the Commissioner
(1) Every person required to be granted a UIN may submit an application in FORM GST
REG-13.
(2) The PO may

o upon submission of application in FORM GST REG-13. or
o after filling up FORM GST REG-13, or
o after receiving a recommendation from the MEA,
assign a UIN to the said person and issue a RC in FORM GST REG-06 within 3
working days from the date of application.
(10) The registration or UIN shall be granted or rejected

after due verification within the prescribed period
99
(1) The application shall be examined by the PO and if the same are found to be in order,
the grant of registration shall be approved within 3 working days from the date of
submission of application.
(2) Where the application is found to be deficient, or the PO requires any further
clarification, he may issue a notice to the applicant in FORM GST REG-03 within 3
working days from the date of submission of application, and the applicant shall
respond to the same in FORM GST REG-04 within 7 working days from the date of
receipt of such notice.
(3) Where the PO is satisfied with the clarification received, he may approve the grant of
registration within 7 working days from the date of such receipt.
(4) Where no reply is furnished by the applicant or the PO is not satisfied with the
clarification furnished, he shall reject such application and inform the applicant in
FORM GST REG-05.
(5) If the PO fails to take any action within 3 working days from the date of submission of
application (or 7 working days from the date of receipt of clarification), the grant of
registration shall be deemed to have been approved.
(11) A RC shall be issued in prescribed form within prescribed period.
(12) A registration or UIN shall be deemed to have been granted

after the expiry of prescribed period under sub-section 10
if no deficiency is communicated to the applicant within that period.
(1) Subject to section 25(12), where the application for registration has been approved, a
RC in FORM GST REG-06 shall be made available to the applicant and a GSTIN shall
be assigned subject to the following characters –
(a) 2 characters – State Code
(b) 10 characters – PAN/TAN
(c) 2 characters – Entity Code
(d) 1 character - Checksum
(2) The registration shall be effective from the date on which the person becomes liable
to registration, where the application has been submitted within 30 days from such
date.
(3) In case the application is submitted after 30 days, the effective date of registration
shall be the date of the grant of registration.
(4) Every RC shall be duly signed and verified through EVC by the PO.
(5) Where the registration has been granted under deeming fiction, the registration no.
shall be communicated to the applicant, and the RC shall be made available to him
within 3 days after the expiry of the stipulated period as per Rule 9(5).
100
(1) Every registered person shall display his RC in a prominent location at his principal as
well as additional place(s) of business.
(2) Every registered person shall display his GSTIN on the name board exhibited at the
entry of his principal as well as additional place of business.
Where the PO is satisfied that the physical verification of the place of business of a
registered person is required after the grant of registration, he may do so and the verification
report along with other documents shall be uploaded in FORM GST REG-30 within 15
working days from such verification.
(1) Grant of Registration/UIN under SGSTA/UTGSTA

shall be deemed to be grant of registration under CGSTA as well
if the application for such registration is not rejected u/s 25(10).
(2) Overruling Section 25(10),

any rejection of application for registration under SGSTA/UTGSTA
shall be deemed to be rejection under CGSTA as well.
(1) The RC issued to a CTP/NRTP

shall be valid for a maximum period of 90 days,
as specified in the certificate,
and the CTP/NRTP shall make taxable supplies
only after the issuance of this RC.
• On sufficient cause being shown,
the PO may extend the period of 90 days
with a further period not exceeding 90 days.
(2) The CTP/NRTP shall deposit in advance

an amount equivalent to the estimated tax liability
for the period for which registration is sought,
at the time of submitting the application for registration.
• In case of any extension,
the CTP/NRTP shall deposit in advance
an amount equivalent to additional estimated tax liability
for the period so extended.
(3) The amount deposited u/s 27(2),

shall be credited to the e-CaL of the CTP/NRTP
and utilized for the payment of tax, interest, penalty etc.
as per the provisions of Section 49.
101
(1) A NRTP shall submit a duly verified application in FORM GST REG-09, along with a
self-attested copy of his valid passport, at least 5 days prior to the commencement
of business.
However, in case of a business entity incorporated or established outside India, the
application for registration shall be submitted along with its TIN, PAN or any other
unique no. on the basis of which the entity is identified by the Government of that
country, if available.
(2) The NRTP applying for registration shall be given a TRN for making an advance
deposit of tax and the acknowledgement under rule 8(5) shall be issued only after
the said deposit in his e-CaL.
(3) The provisions of Rule 9 and 10 shall apply mutatis mutandis to the application
submitted.
(4) The registration application by a NRTP shall be duly signed through EVC by his
authorized signatory who shall be a resident with a valid PAN.
(1) Where a registered CTP/NRTP intends to extend the period of registration, an

application in FOR GST REG-11 shall be submitted by such person before the end of
the validity of registration granted to him.
(1) This application shall be acknowledged only on payment of the amount specified in
section 27(2).
(1) Every registered person/UIN holder

shall inform the PO
of any change in information furnished at the time of registration
in the prescribed form, prescribed manner and within prescribed period.
(2) On the basis of information furnished or as ascertained by him,

the PO may accept or reject the amendment
in prescribed manner and within the prescribed period.
• The approval of PO shall not be required
in respect of certain prescribed particulars.
• The PO shall not reject any application for amendment
without giving the applicant a chance to be heard.
(3) Any rejection/approval of amendments

under the SGSTA/UTGSTA
shall be deemed to be a rejection/approval under CGSTA as well.
102
(1) Where there is any change in any information furnished in the registration application
in FORM GST REG-01/07/09/10/13 either at the time of obtaining registration or as
amended from time to time, the registered person shall submit an application in
FORM GST REG-14 within 15 days of such change along with the relevant documents.
Furthermore,
(a) where the change relates to –
(i) legal name of business,
(ii) address of the principal or additional place of business or
(iii) addition, deletion or retirement of partners or directors, Karta,
Managing Committee, Board of Trustees, CEO or equivalent,
responsible for day to day affairs of the business.
which does not warrant cancellation of registration, the PO shall approve the
amendment within 15 working days from the date of receipt of application in
FORM GST REG-14 and issue an order in FORM GST REG-15 after due
verification effecting the amendment from the date of occurrence of such
event warranting the amendment.
(b) the change relating to (i) and (iii) in any state/UT shall be applicable for all
registrations of the registered person obtained on the same PAN.
(c) where the change relates to any particulars other than (a), the RC shall stand
amended upon submission of FORM GST REG-14.
(d) where a change in the constitution of any business results in change of PAN
of a registered person, he shall apply for fresh registration in FORM GST REG-
01.
However, any change in the mobile no. or e-mail ID of the authorized
signatory submitted under this rule, shall be carried out only after online
verification through OTP.
(2) Where the PO is of the opinion that the amendment sought is not warranted or the
documents furnished are incomplete/incorrect he may serve a SCN in FORM GST
REG-03 within 15 working days of receipt of FORM GST REG-14 to be responded
within 7 working days.
(3) The registered person shall furnish a reply in FORM GST REG-04 within 7 working
days from the date of service of the said notice.
(4) Where the reply furnished is found to be not satisfactory or no reply is furnished
within the prescribed period, the PO shall reject the application and pass an order in
FORM GST REG-05.
(5) If the PO fails to take any action –

(a) within 15 working days from the date of submission of application, or
(b) within 7 working days from the date of receipt of reply to the SCN,
the RC shall stand amended to the extent applied for and the amended RC shall be
made available to the registered person.
(1) The PO may either

o on his own motion, or
o on an application filed by the registered person, or
o on an application filed by legal heirs of a deceased registered person
103
cancel the registration in the prescribed manner and within the prescribed period, with
regards to the following circumstances –
(a) The business has been discontinued, transferred for any reason like death of
proprietor, amalgamation, demerger or disposed of for any reason, or
(b) There is any change in the constitution of the business, or
(c) The taxable person is no longer liable to be registered under Section 22 or
Section 24, unless he registered himself voluntarily.
(2) The PO may cancel the registration

in the following cases, even from a retrospective date,
after giving the person an opportunity to be heard –
o The registered person has contravened any prescribed provision of the Act or
the Rules
o A person under composition levy scheme has not furnished returns for 3
consecutive tax periods
o Any other registered person has not furnished returns for 6 consecutive months
o Registration has been obtained by fraud, wilful misstatement
(3) The cancellation under this section

shall not affect the liability of the person
for any period prior to the date of cancellation
irrespective of when such dues were determined.
(4) The cancellation of registration

under the SGSTA/UTGSTA
shall be deemed to be a cancellation under the CGSTA as well.
(5) Every registered person shall pay

o an amount equivalent to the credit of
input tax w.r.t.
▪ inputs held in stock
▪ inputs contained in semi-finished and finished goods
▪ capital goods or p&m
Or
o the output tax payable on such goods
whichever is higher,
upon cancellation of his registration
on the day immediately preceding the date of such cancellation
in the prescribed manner.
• In case of capital goods or p&m, the taxable person shall pay
o The input tax credit taken (-) prescribed percentage points
OR
o Tax on the transaction value of such goods or p&m
whichever is higher
(6) The amount under sub-section (5) shall be calculated in the prescribed manner.
104
A registered person other than

• registered TDS deductor/TCS collector, or
• person holding UIN
seeking cancellation of his registration shall submit an application in FORM GST REG-16
including the details of stock on the date from which the cancellation of registration is
sought, the tax liability thereon and the payment made against such liability within 30 days
of the occurrence of the event warranting such cancellation.
However, no application for cancellation shall be considered in case of a taxable person who
has registered voluntarily before the expiry of 1 year from the effective date of registration.
The registration granted is liable to be cancelled, if the said person –

a) does not conduct any business from the declared place of business, or
b) issues invoice/bill without supply of goods/services
c) violates section 171 (anti-profiteering measure)
(1) Where the PO has reasons to believe that a registration is liable to be cancelled u/s
29, he shall issue a SCN to such person in FORM GST REG-17 to be responded within
7 working days from the date of the service of such notice.
(2) The reply to the SCN shall be furnished in FORM GST REG-18 within the specified
period.
(3) Where a person who has applied for cancellation of registration is no longer liable to
be registered or his registration is liable to be cancelled, the PO shall issue an order in
FORM GST REG-19, within 30 days from the date of submission of application u/r
20(1)/the date of reply to the SCN, cancelling the registration, w.e.f. a date to be
determined by him and notify the taxable person, and direct him to pay the arrears.
(4) Where the reply furnished against the SCN is found to be satisfactory, the PO shall
drop all the proceedings and pass an order in FORM GST REG-20.
(5) The provisions of sub-rule (3) shall apply mutatis mutandis to the legal heirs of a
deceased proprietor, as if the application had been submitted by the proprietor
himself.
(1) In case the PO cancels registration on his own motion,

the previously registered person may apply to such officer
for revocation of such cancellation
within 30 days of service of the cancellation order
in the prescribed manner and subject to prescribed conditions.
(2) On such application, the PO may

either revoke the cancellation or reject the application
105
in the prescribed manner and within the prescribed period

after giving the applicant an opportunity to be heard.
(3) The revocation of cancellation of registration

under the SGSTA/UTGSTA,
shall be deemed to be revocation of cancellation under CGSTA
as well.
(a) Where a registration is cancelled by the PO on his own motion, the taxable person
may submit an application for revocation of cancellation order in FORM GST REG-21
to such PO within 30 days from the date of order of cancellation.
However, no application for revocation shall be filed, if the registration has been
cancelled for failure of the registered person to furnish returns, unless such returns
are furnished and all the amounts payable in respect of the said returns has been
paid.
(b) (a) Where the PO is satisfied that there are sufficient grounds for revocation of
cancellation, he shall do so by an order in FORM GST REG-22 within 30 days
from the date of receipt of application.
(b) The PO may reject the application for revocation of cancellation of
registration in FORM GST REG-05 under circumstances other than those
specified in (a) above.
(c) The PO shall, before passing the order as per (2)(b) issue a SCN in FORM GST REG-23
and the applicant shall reply to the same in FORM GST REG-24 within 7 working
days.
(d) Upon receipt of clarification in FORM GST REG-24, the PO shall dispose the
application as per sub-rule (2), within 30 days from the date of receipt of such
information.
• Appellate authority [Sec. 2(8) of CGSTA]: means an authority appointed or authorised

to hear appeals as referred to in section 107.
• Common working days [Sec. 2(27) of CGSTA]: in respect of a State or Union territory
shall mean such days in succession which are not declared as gazetted holidays by
the Central Government or the concerned State or Union territory Government.
• Input [Sec. 2(59) of CGSTA]: means any goods other than capital goods used or
intended to be used by a supplier in the course or furtherance of business.
• Input service distributor [Sec. 2(61) of CGSTA]: means an office of the supplier of
goods or services or both which receives tax invoices issued under section 31
towards the receipt of input services and issues a prescribed document for the
purposes of distributing the credit of central tax, State tax, integrated tax or Union
territory tax paid on the said services to a supplier of taxable goods or services or
both having the same Permanent Account Number as that of the said office.
• Tax period [Sec. 2(106)]: means the period for which the return is required to be
furnished.
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CGSTA, 2017
• Section 16: Eligibility and Conditions for taking ITC
• Section 17: Apportionment of Credit and Blocked Credits
• Section 18: Availability of Credit in Sp. Circumstances
• Section 20: Distribution of Credit by ISD
• Section 21: Recovery of Credit Distributed in Excess
(1) Every registered person

shall be entitled to take credit of input tax charged
on the inward supply of goods or services
used or intended to be used in the course or furtherance of his business,
subject to prescribed conditions and in the manner specified in Section 49.
This amount shall be credited to the e-CrL of the registered person.
(1) The ITC shall be availed by a registered person, including the ISD, on the basis of any
of the following documents –
o An invoice issued by the supplier u/s 31
o An invoice issued as per Section 31(3)(f), subject to payment of tax
o A dr. note issued u/s 34
o A BoE or any similar document prescribed under the CA, 1962 for the
assessment of IGST on imports
o An ISD invoice/cr. note/any other document issued u/r 54(1)
(2) ITC shall be availed only if all the applicable particulars as specified in the Tax
Invoice, Credit and Debit Notes Rules are contained in the said document, and such
relevant information is furnished in FORM GSTR-2.
(3) No ITC shall be availed by a registered person for any tax that has been paid under
any order of demand on account of fraud, wilful misstatement or suppression of
facts.
(2) Overruling this section, no credit shall be allowed to an entitled registered person
unless –
o he possesses a tax invoice, debit note or any other prescribed tax paying
document from a registered supplier
o he has received the goods/services
▪ Receiving the goods means the goods are delivered by the supplier
to a registered recipient or any other person on the direction of such
registered person, agent or not,
before or during the movement of goods,
by way of transfer of documents of title of goods or otherwise.
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(c) the tax charged for such supplies has actually been paid to the Government,
whether in cash or through utilization of admissible credit
(d) he has furnished the required return u/s 39.
• Where the goods against an invoice are received in lots/instalments,
the credit shall be allowed upon receipt of the last lot/instalment.
• In case the recipient does not pay to the supplier
the value of supply along with the tax amount, except the RCM cases,
within 180 days of the invoice date,
the amount of ITC availed shall be reversed and added to his output tax liability
along with interest on it, in the prescribed manner.
• The recipient shall be entitled to take the credit
on payment of the value of supply and the tax payable thereon.
(1) A registered person who has availed ITC on any inward supply but fails to pay the
consideration and applicable tax to the supplier within the time limit u/s 16(2), shall
furnish such details in FORM GSTR-2 for the month immediately following the period
of 180 days from the date of invoice.
However, in case of supplies made without consideration, the value of supplies shall
be deemed to have been paid
for the purpose of Section 16(2).
(2) The amount of ITC referred in (1) shall be added to the OTL of the registered person
for the month in which the details are furnished.
(3) The registered person shall be liable to pay interest @ notified u/s 50(1) for the period
starting from the date of availing credit till the date when the amount added to the
OTL is paid.
(4) The time limit specified in Sec. 16(4) shall not apply to a claim for re-availing any
credit that had been reversed earlier.
(3) In case the registered person has claimed depreciation

on the tax component of the cost of capital goods and p&m
under IT Act, 1961,
the ITC on such component shall not be allowed.
o Plant and machinery means apparatus, equipment, and machinery
fixed to earth by foundation or structural support
that are used for making outward supply of goods/services
and includes such foundation and structural supports
but excludes—
▪ land, building or any other civil structures;
▪ telecommunication towers; and
▪ pipelines laid outside the factory premises
(4) ITC in respect of any invoice or debit note shall not be allowed
after filing the return for the month of September of the following FY
or the relevant annual return, whichever is earlier.
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(1)
Goods/Services
Business Purpose Other Purposes
(2)
Goods/Services
Taxable Supplies Exempt Supplies

(including zero-rated supplies)
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(1) The IT that attract the provisions of section 17(1)/ (2) shall be attributed to the
business purposes or for making taxable supplies in the following manner –
(a) T = Total IT in a tax period (say, ₹1,00,000)
(b) T1 = IT out of T attributable to inputs used exclusively for non-business
purposes (say, ₹30,000)
(c) T2 = IT out of T attributable to inputs intended to be used exclusively for
making exempt supplies (say, ₹20,000)
(d) T3 = IT out of T in respect of inputs on which credit is not available u/s 17(5)
(say, ₹10,000)
(e) ITC credited to the e-CrL [C1], is calculated as –
C1 = T – (T1 + T2 + T3)
= ₹1,00,000 - ₹(30,000 + 20,000 + 10,000)
= ₹40,000
(f) T4 = ITC attributable to inputs intended to be used exclusively for making
supplies other than exempted but including zero-rated supplies (say,
₹10,000)
(g) T1, T2, T3 and T4 shall be determined and declared by the registered person at
the invoice level in FORM GSTR-2
(h) The balance ITC shall be called common credit [C2] and calculated as –
C2 = C1 – T4
= ₹40,000 - ₹10,000
= ₹30,000
(i) The balance ITC attributable towards exempt supplies [D1] shall be calculated
as –
D1 = (E ÷ F) × C2
= (₹2,00,000 ÷ ₹3,00,000) × ₹30,000
= ₹20,000
E = the aggregate value of exempt supplies during the tax period (excl. ED
etc.) (say, ₹2,00,000)
F = the total turnover in the State of the registered person during the tax
period (excl. ED etc.) (say, ₹3,00,000)
However, in case this information is not available, the values of E and F of the
last tax period for which such information is available, before the concerned
month, shall be used for calculation.
(j) The balance ITC attributable to non-business purposes [D2] shall be
calculated as follows:
D2 = 5% × C2
= 5% × ₹30,000
= ₹1,500
(k) The remainder ITC shall be the eligible ITC attributed to business purposes
and for supplies other than exempted but including zero-rated supplies [C3],
where:
C3 = C2 – (D1 + D2)
= ₹30,000 – ₹(20,000 + 1,500)
= ₹8,500
(l) C3 shall be computed separately for ITC of CGST, SGST, UTGST and IGST
(m) Aggregate of D1 and D2 (₹20,000 + ₹1,500 = ₹21,500) shall be added to the
OTL of the registered person.
However, where the IT relating to inputs used partly for non-business
purposes and partly for exempt supplies has been identified and segregated
at the invoice level by the registered person, it shall be included in T1 and T2
respectively, and the remaining ITC on such inputs shall be included in T4.
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(2) The ITC determined under (1) shall be calculated finally for the FY
before the due date for furnishing return for September of the following FY
in the same manner
(a) where the amount calculated finally for (D1 + D2) exceeds the amount
determined under (1) for (D1 + D2), such excess shall be added to the OTL of
the registered person in the month of or before September of the following
FY and he shall be liable to pay interest on the said excess @ as per Sec. 50(1)
for the period from 01 Apr till the date of payment.
(b) where the amount calculated finally for (D1 + D2) is less than the amount
determined under (1) for (D1 + D2), such difference shall be claimed as credit
by the registered person in his return for the month of or before September
of the following FY.
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(1) Subject to section 16(3), the ITC on cap goods that attract the provisions of section
17(1)/(2) shall be attributed to the business purposes or for making taxable supplies as
follows –
(a) The IT on cap goods used or intended to be used exclusively for non-
business purposes or for making exempt supplies shall be indicated in FORM
GSTR-2 and shall not be credited to his e-CrL.
(b) The IT on cap goods used or intended to be used exclusively for making
supplies other than exempt supplies but including zero-rated supplies shall
be indicated in FORM GSTR-2 and shall be credited to his e-CrL.
(c) The rest of the IT on cap. goods, not covered under (a) and (b) [A] (say,
₹30,000), shall be credited to the e-CrL and the useful life of such goods
shall be taken as 5 years from the invoice date.
However, where any cap. goods earlier covered under (a) is subsequently
covered under this clause, A shall be calculated by reducing the IT by 5% per
qtr. or part thereof and it shall be credited to the e-CrL
NOTE: An item of cap. goods declared under (a) on its receipt shall not attract
section 18(4), if it is subsequently covered under this clause
(d) The aggregate of A credited to e-CrL = Tc shall be the common credit on cap.
goods for a tax period. (say, during this particular tax period, there is no
other such cap. good for which “A” needs to be calculated as per (c).
Therefore, A = Tc = ₹30,000)
However, where any cap. goods earlier covered under (b) is subsequently
covered under (c), A shall be calculated by reducing the IT by 5% per qtr. or
part thereof and it shall be added to Tc
(e) The ITC attributable to a tax period on common cap. goods during their useful
life [Tm] shall be calculated as –
Tm = Tc ÷ 60
= ₹30,000 ÷ 60
= ₹500
(f) Tr = Aggregate of Tm of all common cap. goods whose useful life remains
during the tax period. (say, during this particular tax period, there was one
such cap. good already appearing in the balancesheet of the business entity,
whose useful life of 2 years remained and the Tm was ₹400. Therefore,
Tr = ₹500 + ₹400 = ₹900)
(g) The common ITC attributable towards exempt supplies [Te] shall be
calculated as –
Te = (E ÷ F) x Tr
= (₹2,00,000 ÷ ₹3,00,000) × ₹900
= ₹600
E = the aggregate value of exempt supplies during the tax period (excl. ED
etc.) (say, ₹2,00,000)
F = the total turnover in the State of the registered person during the tax
period (excl. ED etc.) (say, ₹3,00,000)
However, in case this information is not available, the values of E and F of the
last tax period for which such information is available, before the concerned
month, shall be used for calculation.
(h) This amount Te along with applicable interest shall be added to the OTL
during every tax period of the useful life of the concerned cap goods.
(2) Te shall be computed separately for CGST, SGST, UTGST and IGST
NOTE: The aggregate value of exempt supplies shall not include the supply of services
having place of supply in Nepal or Bhutan, against payment in INR.
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(3) The value of exempt supply under the previous sub-section

shall be such as prescribed, and include
o Supplies on which tax is payable on reverse charge basis
o Transactions in securities
o Sale of land
o Sale of building, other than as mentioned in Sch. II
For determining the value of exempt supply –

(a) The value of land and building = The value adopted for paying stamp duty, and
(b) The value of security = 1% of the sale value of such security
(c) A bank/FI/NBFC, engaged in supplying services by way of

accepting deposits, extending loans or advances
shall have the following 2 options:
o Comply with sub-section (2), or
o Every month avail of 50% of eligible ITC in that month, and the rest shall lapse.
• Option once exercised shall not be withdrawn during the FY
• Restriction of 50% shall not apply on supplies made by one registered person to
another having the same PAN.
A bank/FI/NBFC engaged in the supply of services of accepting deposits or extending

loans/advances that opts to not to comply with section 17(2) shall follow the following
procedure –
(a) The said bank shall not avail the credit of –
(i) The tax paid on inputs and input services that are used for non-business
purposes, and
(ii) Supplies specified in Section 17(5)
in FORM GSTR-2.
(b) The said bank shall avail the ITC on supplies made by one registered person to
another having the same PAN
(c) 50% of the remaining amount of input tax shall be the ITC admissible to the bank and
shall be furnished in FORM GSTR-2
(d) The aforementioned amounts shall be credited to the e-CrL of the said bank subject
to the provisions of sections 41, 42 and 43.
(d) Overruling Section 16(1) and 18(1), ITC shall not be available in respect of the following –
a. motor vehicles and other conveyances except when they are used–
i. for making the following taxable supplies, namely—
1. further supply of such vehicles or conveyances; or
2. transportation of passengers; or
3. imparting training on driving, flying, navigating such vehicles or
conveyances;
ii. for transportation of goods
b. the following supply of goods or services or both—
i. food and beverages, outdoor catering, beauty treatment, health
services, cosmetic and plastic surgery except where an inward supply
of goods or services or both of a particular category is used by a
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registered person for making an outward taxable supply of the same

category of goods or services or both or as an element of a taxable
composite or mixed supply;
ii. membership of a club, health and fitness centre;
iii. rent-a-cab, life insurance and health insurance except where–
1. the Government notifies the services which are obligatory for an
employer to provide to its employees under any law for the time
being in force; or
2. such inward supply of goods or services or both of a particular
category is used by a registered person for making an outward
taxable supply of the same category of goods or services or both
or as part of a taxable composite or mixed supply; and
iv. travel benefits extended to employees on vacation such as leave or
home travel concession
c. works contract services when supplied for construction of an immovable
property (other than plant and machinery) except where it is an input service
for further supply of works contract service.
NOTE: Construction includes re-construction, renovation, additions or
alterations or repairs, to the extent of capitalisation, to the said immovable
property.
d. goods/services received by a taxable person for construction of an immovable
property (other than plant or machinery) on his own account including when
such goods/services are used in the course or furtherance of business
e. goods/services on which tax has been paid under section 10;
f. goods/services received by a NRTP except on goods imported by him;
g. goods/services used for personal consumption;
h. goods lost, stolen, destroyed, written off or disposed of by way of gift or free
samples; and
i. any tax paid in accordance with the provisions of sections 74, 129 and 130
(e) The Government may prescribe the manner in which

the credit as mentioned in (1) and (2) shall be attributed.
(1) Subject to prescribed conditions and restrictions –

(a)
Date of Application of RC
Date on which liability to register arises 30 days
(b) A person who takes voluntary registration

shall be entitled to take ITC in respect of
▪ inputs stock
▪ inputs contained in semi-finished/finished goods stock
on the day immediately preceding
the date of grant of registration.
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(c) Where a registered person ceases to pay tax u/s 10

he shall be entitled to take ITC in respect of
▪ inputs stock
▪ inputs contained in semi-finished/finished goods stock
▪ capital goods (reduced by prescribed percentage points)
the date he becomes liable to pay tax u/s 9
(d) Where an exempt supply becomes taxable

the registered supplier shall be entitled to take ITC in respect of
▪ exclusive inputs stock
▪ exclusive inputs contained in semi-finished/finished goods stock
▪ exclusive capital goods (reduced by prescribed percentage points)
the date when such supply becomes taxable
(2) No ITC as mentioned in sub-section (1) shall be allowed

in respect of any inward supply
after the expiry of 1 year of the invoice date.
(3) In case of change in constitution of a registered person

by way of sale/merger/demerger/amalgamation/lease/transfer
with specific provision for transfer of liabilities
the said registered person shall be allowed
to transfer the unutilized ITC from his e-CrL to such
sold/merged/demerged/amalgamated/leased/transferred business
(1) On sale/merger/de-merger/amalgamation/lease/transfer or change in the

ownership of business for any reason, the registered person shall furnish the details
of such event in FORM GST ITC-02 along with a request for transfer of unutilized ITC
lying in his e-CrL to the transferee.
Furthermore, in case of demerger, the ITC shall be apportioned between the resulting
units in the ratio of the value of assets as specified in the demerger scheme.
(2) The transferor shall also submit a copy of a certificate issued by a practicing CA/CMA
certifying that such sale, merger etc. has been done with a specific provision for the
transfer of liabilities.
(3) The transferee shall accept such furnished details and thereupon the unutilized ITC
shall be credited to his e-CrL.
(4) The inputs and cap. goods so transferred shall be duly accounted by the transferee in
his books of account.
(4) Where a registered person who has availed ITC

opts to pay tax u/s 10
OR
where the goods/services supplied by him
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becomes wholly exempt

he shall pay the amount of ITC in respect of
o inputs stock
o inputs contained in semi-finished/finished goods stock
o capital goods (reduced by prescribed percentage points)
the date of exercising such option OR the date of such exemption
by debiting his e-CrL or e-CaL.
• After payment of such amount, any balance of ITC left in his e-CrL shall lapse.
(1) For the purposes of 18(4) and 29(5), the ITC relating to stock of inputs, semi-
finished/finished goods and cap goods shall be determined in the following manner –
(a) For stock of inputs, semi-finished and finished goods, the ITC shall be
calculated proportionately on the basis of corresponding invoices on which
credit had been availed on such stock
(b) For stock of cap goods, the ITC involved in the remaining useful life in months
shall be computed on pro-rata basis, taking the useful life as 5 years.
(2) Such amount shall be determined separately for ITC of CGST, SGST, UTGST and IGST
(3) Where the tax invoices are not available, the amount shall be determined on the
basis of prevailing market price of the goods on the effective date of the occurrence
of any of the events as specified in 18(4) or 29(5)
(4) The amount shall form part of the OTL and the details shall be furnished in
o FORM GST ITC-03 – In case of 18(4)
o FORM GSTR-10 – In case of 29(5)
(5) The details furnished shall be duly certified by a practicing CA/CMA
(5) The amount of credit u/ss (1) and tax payable u/ss (4)
shall be calculated in prescribed manner.
(6) In case of supply of capital goods or p&m

on which ITC has been taken
the registered person shall pay higher of the following:
o ITC taken on them (reduced by prescribed percentage points), OR
o Tax on their TV as determined u/s 15
• In case of refractory bricks, moulds and dies, jigs and fixtures supplied as scrap, the tax
on TV as determined u/s 15 shall be paid.
(6) The ITC relating to capital goods shall be determined as per sub-rule (1) and
determined separately for CGST, SGST, UTGST and IGST.
However, where the amount so determined is more than the tax on the transaction
value of the cap goods, it shall form part of the OTL and shall be furnished in FORM
GSTR-1
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(1) The ITC claimed on stock of inputs, SFG, FG and capital goods as per Sec. 18(1), shall
be subject to the following conditions –
(a) The ITC on cap goods shall be claimed after reducing the tax paid on such
cap goods by 5%/qtr. or a part thereof from the date of its invoice.
(b) The registered person shall within 30 days (as extended by the
Commissioner) from becoming so eligible shall make a declaration in FORM
GST ITC-01 to effect his eligibility.
(c) Such declaration shall clearly specify the stock details –
(i) on the day immediately preceding the date of his liability to pay tax
u/s 18(1)(a)
(ii) on the day immediately preceding the date of grant of registration u/s
18(1)(b)
(iii) on the day immediately preceding the date of his liability to pay tax as
per 18(1)(c)
(iv) on the day immediately preceding the date of taxability of supplies as
per 18(1)(d)
(d) Such declaration shall be duly certified by a practicing CA/CMA if the
aggregate value of the claim for CGST, SGST, UTGST and IGST exceeds ₹2
lakhs.
(e) The ITC claimed u/s 18(1)(c) and (d) shall be verified with the corresponding
details furnished in FORM GSTR-1/GSTR-4
(2) The ITC in case of supply of cap. goods or p&m, for Sec. 18(6), shall be calculated by
reducing the input tax on the said goods by 5%/qtr. or part thereof from the date of
its invoice.
(1) The ISD shall distribute the credit as follows

by way of issue of a document containing
the amount of ITC being distributed in the prescribed manner.
(2) The ISD may distribute the credit subject to following conditions:
(a) the credit can be distributed to the recipients of credit
against a document containing the prescribed details
(b) the amount of the credit distributed ≤ the amount of credit available for
distribution
(c) the ITC on input services attributable to a recipient of credit
shall be distributed only to that recipient
(d) the ITC on input services attributable to more than one recipient of credit
shall be distributed amongst such recipients on pro rata basis as follows:
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Turnover of a recipient in a state/UT during the relevant period

Agg. of the turnover of all relevant recipients, operational in the current FY, during the
relevant period
(e) the ITC on input services attributable to all recipients of credit

shall be distributed amongst such recipients on pro rata basis as follows:
Turnover of a recipient in a state/UT during the relevant period

Agg. of the turnover of all relevant recipients, operational in the current FY, during the
relevant period
NOTE:
(i) Relevant period means
▪ If turnover of all the relevant recipients of credit in their States/UTs
in the preceding FY is available – The previous FY
▪ If such details are not available for all relevant recipients of credit –
The last quarter preceding the month during which the credit is to be
distributed
for which such details are available
(ii) Turnover, in relation to any registered person engaged in supplying
taxable + non-taxable goods, means
The Value of Turnover (-) Central Excise Duty, State Excise Duty and State VAT
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(1) An ISD shall distribute ITC as follows –

(a) The ITC available for distribution in a month shall be distributed in the same
month and its details shall be furnished in FORM GSTR-6
(b) The ISD shall separately distribute the amount of ineligible ITC and the
amount of eligible ITC, as per clause (d)
(c) The ITC on account of CGST, SGST, UTGST and IGST shall be distributed
separately as per clause (d)
(d) The ITC that is required to be distributed as per section 20(2)(d)/(e) [C1] to
one of the recipients ‘R1’, whether registered or not, from the total of all of the
recipients to whom the ITC is attributable, including the recipients engaged in
making exempt supplies, or otherwise not registered, shall be calculated as
follows –
C1 = (t1 ÷ T) x C
C = the amount of credit to be distributed
t1 = turnover of R1 during the relevant period as referred in Sec. 20
T = aggregate of the turnover of all recipients to whom input service is
distributable during the relevant period
(e) The ITC of IGST shall be distributed as ITC of IGST to every recipient
(f) The ITC of CGST and SGST/UTGST shall –
(i) For recipient located in the same state/UT as the ISD – be distributed
as ITC of CGST and SGST/UTGST respectively.
(ii) For other recipients – be distributed as IGST and the amount to be so
distributed shall be the aggregate of ITC of CGST and SGST/UTGST
that qualifies for distribution to such recipient as per (d)
(g) The ISD shall issue an ISD invoice as per rule 54(1), clearly indicating in such
invoice that it is issued only for distribution of ITC
(h) The ISD shall issue an ISD cr. note as per rule 54(1), for reduction of credit in
case the ITC already distributed gets reduced for any reason.
(i) Any additional amount of ITC resulting from a dr. note issued to an ISD by the
supplier shall be distributed as per clauses (a) to (f) and such amount shall be
distributed as per (d). Such credit shall be distributed in the month in which
the dr. note is included in the return in FORM GSTR-6
(j) Any ITC required to be reduced resulting from a cr. note issued to an ISD by
the supplier shall be apportioned to each recipient in the same ratio in which
the ITC contained in the original invoice was distributed as per clause (d) and
the amount so apportioned shall be –
(i) reduced from the amount to be distributed in the month in which the
cr. note is included in the return in FORM GSTR-6, or
(ii) added to the OTL of the recipient where the amount so apportioned is
in negative due to amount of credit under distribution being less than
the amount to be adjusted.
(2) If the ITC distributed by an ISD is reduced later for any other reason for any of the
recipients, including that it was distributed to a wrong recipient by the ISD, the
process specified in clause (j) of sub-rule (1) shall apply mutatis mutandis for
reduction of credit.
(3) Subject to sub-rule (2), the ISD shall issue an ISD invoice on the basis of ISD cr. note
to the recipient entitled to such credit and include the ISD cr. note and the ISD
invoice in FORM GSTR-6 for the month in which such documents were issued.
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• An ISD invoice/cr. note shall contain the following details –
NOTE: Where the ISD is an office of a bank/FI/NBFC, a tax invoice shall include any
document in lieu thereof containing the said information
Where the ISD distributes the credit in contravention of Sec. 20

resulting in excess distribution to one or more recipients of credit
the excess credit so distributed shall be recovered
along with interest
and the provisions of Sec. 73 and 74 shall apply mutatis mutandis
for determination of the recovery amount.
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CGSTA, 2017
• Section 49: Payment of tax, interest etc.
• Section 50: Interest on delayed payment of tax
(1) Subject to prescribed conditions and restrictions

every deposit made towards tax, interest, penalty, fee etc.
by a person through
o Internet banking
o Credit/Debit cards
o NEFT/RTGS
o Any other mode
shall be credited to his e-CaL
maintained in the prescribed manner.
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(1) The e-CaL shall be maintained in FORM GST PMT-05 for crediting the amount
deposited and debiting any payment made towards tax, interest, penalty, fee etc.
(2) Any person shall generate a challan in FORM GST PMT-06 and enter the details of
the amount to be deposited by him towards tax, interest, penalty, fees etc.
This challan shall be valid for 15 days.
Also, a person supplying OIDAR services from a place outside India to a NTOR may
do so through the “e-Accounting System in Excise and Service Tax” from a date to be
notified by the Board.
(3) The said deposit shall be made through any of the following modes –
(i) netbanking through authorised banks
(ii) Credit/Debit card through authorised banks
(iii) NEFT/RTGS from any bank
(iv) OTC payment through authorised banks for deposits upto ₹10,000 per
challan per tax period, by cash, cheque or DD
NOTE: Any commission payable in respect of such payment shall be borne by the
payer.
However, this restriction of ₹10,000 shall not apply to deposits made by –
(a) Govt. deptts. or any other deposit by notified persons
(b) PO or any other officer authorised to recover outstanding dues from any
other person, including recovery made through attachment or sale of
movable/immovable properties
(c) PO or any other officer authorised to collect any amount in cash/cheque/DD
during an investigation or enforcement activity or any ad hoc deposit.
A person supplying OIDAR services from a place outside India to NTOR may also
make the deposit as per (2) through international money transfer through SWIFT
network.
(4) Any payment required to be made by an un-registered person shall be made on the
basis of TIN generated through the common portal.
(5) Where the payment is made through NEFT/RTGS, the mandate form shall be
generated along with the challan and submitted to the payer bank.
This mandate form shall be valid for 15 days from the date of generation of challan.
(6) On successful credit of the amount to concerned government account, a CIN shall be
generated by the collecting bank and indicated in the challan.
(7) On receipt of the CIN from the collecting bank, the amount deposited shall be credit
to the e-CaL and a receipt shall be made available on the common portal.
(8) In case the bank account gets debited but no CIN is generated/ communicated, the
payer may represent to the bank or e-gateway through which the deposit was
initiated in FORM GST PMT-07.
(9) Any TDS/TCS claimed by the deductee/collectee in his FORM GSTR-02 shall be
credited to his e-CaL
(10) Any refund claimed from the e-CaL shall be debited to the same.
(11) If the refund so claimed is fully or partly rejected, the rejected amount shall be re-
credited to the e-CaL by the PO by an order in FORM GST PMT-03
122
(12) In case of any discrepancy in the e-CaL, the registered person shall communicate the
same to the officer in FORM GST PMT-04
(2) In accordance with Section 41,

the self-assessed ITC of a registered person
as furnished in his return
shall be credited to his e-CrL
maintained in the prescribed manner.
(1) The e-CrL shall be maintained in FORM GST PMT-02 for each registered person
eligible for ITC and every claim of ITC shall be credited to this ledger.
(2) The e-CrL shall be debited to the extent of discharge of any liability
(3) Any unutilized amount claimed as refund u/s 54 shall be debited in the e-CrL
(4) If the refund so filed is fully or partly rejected, the rejected amount shall be re-
credited to the e-CrL by the PO by an order in FORM GST PMT-03
(5) No entry shall be made directly in the e-CrL under any circumstance except for the
provisions of this Chapter
(6) In case of any discrepancy in the e-CrL, the registered person shall communicate the
(3) Subject to prescribed conditions,

the amount available in the e-CaL
may be used in making the payment towards
tax, interest, penalty, fees etc.
in the prescribed manner and within the prescribed period.
(4) Subject to prescribed conditions,

the amount available in the e-CrL
may be used in making the payment towards output GST
in the prescribed manner and within the prescribed period.
(5) The ITC available in the e-CrL of a registered person

shall be utilised in the following manner:
123
(6) The balance in e-CaL or e-CrL

after payment of tax, interest, penalty, fee etc. payable
may be refunded in accordance with Section 54
(7) All liabilities of a taxable person

shall be maintained in an ELR
maintained in prescribed manner.
(1) The electronic liability register shall be maintained in FORM GST PMT-01 and all
amounts payable by him shall be debited to the said register.
(2) The ELR shall be debited by –

(a) tax, interest, late fee etc. payable as per the return
(b) tax, interest, penalty etc. payable as determined by a PO as a result of any
proceedings or as ascertained by the person himself
(c) tax and interest payable due to mismatch u/s 42/43/50
(d) interest accruing from time to time
(3) Payment of every liability as per the return of a registered person shall be made by
debiting the e-CrL/e-CaL and crediting the ELR
(4) TDS, TCS, amount payable under RCM, amount payable u/s 10, interest, penalty, fee
etc. shall be paid by debiting the e-CaL and crediting the ELR
(5) Any demand debited in the ELR shall stand reduced to the extent of relief given by
the AA/AT/court and crediting the electronic tax liability register.
(6) The penalty imposed or liable to be imposed shall be reduced partly or fully if the
taxable person pays the tax, interest and penalty as per the SCN or demand order
and the ELR shall be credited accordingly.
(7) In case of any discrepancy in the ELR, the registered person shall communicate the
(8) Every taxable person shall discharge his dues in the following order –
(a) Self-assessed tax and other dues related to returns of previous tax periods
(b) Self-assessed tax and other dues related to return of the current tax period
(c) Any other amount payable, including demand u/s 73 or 74
(9) Every person who has paid tax on goods/services

shall be deemed to have passed on the full incidence
to the recipient of such supplies
unless proven otherwise by such person.
124
(1) A UIN shall be generated for each debit/credit to the e-CaL/e-CrL
(2) The UIN relating to discharge of any liability shall be indicated in the corresponding
entry in the ELR
(3) A UIN shall be generated for each credit in the ELR for reasons other than (2) above.
(1) Every person who is liable to pay tax

but fails to do so within the prescribed period
shall on his own pay an interest @ not exceeding 18%
as may be notified by the Government
for the period for which the amount remains unpaid.
NOTE: As per Notfn. No.: 13/2017 – CT and 06/2017 - IT, the rate of interest prescribed by the
Govt. is 18%
(2) The interest u/ss (1) shall be calculated in the prescribed manner
from the day succeeding the date
on which such tax was due to be paid.
(3) Every taxable person

o who makes an undue or excess claim of ITC u/s 42(10) OR
o who makes an undue or excess reduction in OTL u/s 43(10)
shall pay an interest @ not exceeding 24%
as may be notified by the Government.
NOTE: As per Notfn. No.: 13/2017 – CT and 06/2017 - IT, the rate of interest prescribed by the
Govt. is 24%
• Authorized bank [Sec. 2(14) of CGSTA]: means a bank or a branch of a bank authorised by
the Government to collect the tax or any other amount payable under this Act.
125
CGSTA, 2017
• Section 37: Furnishing Details of Outward Supplies
• Section 38: Furnishing Details of Inward Supplies
• Section 39: Furnishing Returns
• Section 40: First Return
• Section 41: Claim of ITC and Provisional Acceptance
• Section 42: Matching, Reversal and Reclaim of ITC
• Section 43: Matching, Reversal and Reclaim of Reduction in OTL
• Section 44: Annual Return
• Section 45: Final Return
• Section 46: Notice to Return Defaulters
• Section 47: Levy of Late Fee
• Section 48: GST Practitioners
Amend
details of
outward
Furnish details of outward supplies supplies
Section 37 Section 37(2)
1 10 15 17 20 30
Furnish details of Furnish
inward supplies return
Section 38 Section 39
• Furnish the details of outward supplies

(including invoices, debit notes, credit notes, revised invoices)
effected during a tax period
in the prescribed form and prescribed manner.
• The commissioner may extend the time limit for sufficient reasons
• Any such extension by Commissioner of state/UT

shall be deemed to be extension by Commissioner under CGSTA
• Such details shall be communicated to the recipients

in the prescribed form and within prescribed time.
126
(1) The details of outward supplies shall be furnished in FORM GSTR-1.
(2) The details shall include –
Nature of Supply Invoice wise details Consolidated details

Intra-state Supplies Registered Recipients Un-registered Recipients
Inter-state Supplies Registered Recipients + Un-registered Recipients
Un-registered Recipients (invoice value ≤ ₹2.5 lakhs)
(invoice value > ₹2.5 lakhs) [State wise]
Debit and Credit Notes issued during the month
(3) The details furnished in FORM GSTR-1 shall be made available to the concerned registered
recipients in
o FORM GSTR-2A (Part A) – General recipients
o FORM GSTR-4A – Composition recipients
o FORM GSTR-6A – ISD recipients
after the due date of filing the said form.
• The recipient may

verify, validate, modify or delete the details of outward supplies
communicated by the suppliers of such supplies.
• Such modifications shall be communicated to the suppliers

in the prescribed manner and within prescribed time.
• Furnish the details of inward supplies

(including inward supplies taxable under RCM, credit/debit notes)
effected during a tax period
127
(1) The details of inward supplies shall be furnished in FORM GSTR-2 based on the
details received in FORM GSTR-2A as follows –
Part of FORM GSTR-2A Derived from…
Part A FORM GSTR-1 by registered suppliers

FORM GSTR-5 by NRTP
Part B FORM GSTR-6 by ISD
Part C FORM GSTR-7 by TDS deductor
FORM GSTR-8 by TCS collector
(3) The registered person shall separately specify the ineligible ITC (fully or partially) in
FORM GSTR-2 where such eligibility can be determined at invoice level.
(4) Where the ITC relates to non-taxable supplies or for non-business purposes and
cannot be determined at invoice level, the registered person shall declare the
quantum of ineligible ITC in the said form.
(8) FORM GSTR-2 shall include –

o invoice wise details of inter-state + intra-state supplies received from
registered + un-registered persons,
o import of goods and services, and
o dr. and cr. notes received from supplier
(4) The details furnished in FORM GSTR-2 along with FORM GSTR-4 and FORM GSTR-6
shall be made available to the concerned suppliers in FORM GSTR-1A.

• Every registered supplier

shall either accept or reject
the details so communicated by the recipient
and the details of outward supplies
shall stand amended accordingly.
• Furnish a return of
inward and outward supplies, ITC availed, tax payable, tax paid
and other prescribed particulars
in prescribed form and prescribed manner.
128
• Pay the tax due as per the return

to the Government
• Furnishing the return is mandatory, irrespective of the supplies.
(1) The monthly return shall be filed in FORM GSTR-3
(2) Part A of the return shall be auto-populated on the basis of information furnished
through FORM GSTR-1 and FORM GSTR-2, and other liabilities of the preceding tax
period.
(3) Every registered person furnishing FORM GSTR-3 shall discharge his liability towards
tax, interest, penalty, fees etc. by debiting his e-CaL or e-CrL as per Section 49 and
include the details in Part B of the said form.
(4) Any balance in the e-CaL may be claimed as refund as per Sec. 49(6) in Part B of the
return and it shall be deemed to be an application filed u/s 54.
• The commissioner may extend the time limit for sufficient reasons.

shall be deemed to be extension by Commissioner under CGSTA.
(5) Where the time limit for furnishing FORM GSTR-1 and FORM GSTR-2 has been
extended, the Commissioner may notify the manner and conditions subject to which
return shall be furnished in FORM GSTR-3B
(6) Where FORM GSTR-3B is furnished after the due date for furnishing FORM GSTR-2 –
(a) Part A of the return shall be auto-populated on the basis of information
furnished through FORM GSTR-1 and FORM GSTR-2, and other liabilities of
the preceding tax period, and Part B shall be generated on the basis of FORM
GSTR-3B filed for the tax period.
(b) In case there is any discrepancy between FORM GSTR-3 and FORM GSTR-
3B, the registered person shall modify Part B accordingly and discharge his
tax and other liabilities.
(c) In case the amount of ITC in FORM GSTR-3 exceeds the amount of ITC as per
FORM GSTR-3B, the additional amount shall be credited to the e-CrL of the
registered person.

System based reconciliation of information furnished in FORM GSTR-1 and FORM GSTR-2
with FORM GSTR-3B
Sections 37, 38 and section 39 of the CGST Act, 2017(hereinafter referred to as ‘the
Act’) read with rules 59, 60 and 61 of the CGST Rules, 2017(hereinafter referred to as
‘the Rules’) require every registered person to furnish details of outward supplies
made in a month in FORM GSTR-1, details of inward supplies received in a month in
FORM GSTR-2 and a return in FORM GSTR-3 by the 10th, 15th and 20thof the next
129
month respectively. Keeping in view that taxpayers may face certain issues in the
initial days after the introduction of GST, the GST Council extended the date for filing
of FORM GSTR-1 and FORM GSTR-2 for the months of July and August, 2017 and
approved the filing of a simplified return in FORM GSTR-3B for these two months by
the notified due dates after making the due payment of tax.
2. Registered persons opting to utilize transitional credit available under section 140 of
the Act read with the rules made there under for discharging the tax liability for the
month of July, 2017 were required to file FORM GST TRAN -1 on or before 28th
August,2017. This transitional credit was to be credited to the electronic credit ledger
and be available for discharging the tax liability.
3. As per the provisions of sub-rule (5) of rule 61 of the Rules, the return in FORM
GSTR-3B was required to be furnished when the due dates for filing of FORM GSTR-1
and FORM GSTR-2 have been extended. After the return in FORM GSTR-3B has been
furnished, the process of reconciliation between the information furnished in FORM
GSTR3B with that furnished in FORM GSTR-1 and FORM GSTR-2 would be carried
out in accordance with the provisions of sub-rule (6) of rule 61 of the Rules.
4. The detailed procedure for reconciliation of information furnished in FORM GSTR-3

and FORM GSTR-3B is detailed in succeeding paras.
Furnishing of information in FORM GSTR- 1 & FORM GSTR-2:

5. It may be noted that after the registered person has filed his return in FORM GSTR3B
and the statement of outward supplies in FORM GSTR-1, the inward supplies shall be
auto drafted for all registered persons (corresponding recipients of supply) and made
available to them in FORM GSTR-2A as per sub-rule (3) of rule 59 of the Rules. FORM
GSTR-2A is the exact replica of FORM GSTR-2 containing only those details that are
autopopulated from the details furnished in FORM GSTR-1 by the corresponding
suppliers. Based on the details communicated in FORM GSTR-2A, the registered
person shall prepare the statement of inward supplies in FORM GSTR-2 by:-
a. adding, deleting or modifying the invoice level details communicated in
FORM GSTR-2A;
b. adding information pertaining to details that are required to be furnished in
GSTR-2 but are not part of FORM GSTR-2A like details of imports, details of
supplies attracting reverse charge that have been received by registered
person;
c. providing details of supplies received from composition suppliers and
exempt, nil-rated & non GST inward supplies;
d. providing details of advances paid on inward supplies attracting reverse
charge, if any, along with adjustments;
e. providing details of reversal of ITC as per the provisions of rules 37, 39, 42
and 43 of the Rules, if any; and
f. providing HSN wise summary details of inward supplies.
Correction of erroneous details furnished in FORM GSTR-3B:

6. In case the registered person intends to amend any details furnished in FORM
GSTR3B, it may be done in the FORM GSTR-1 or FORM GSTR-2, as the case may be.
For example, while preparing and furnishing the details in FORM GSTR-1, if the
outward supplies have been under reported or excess reported in FORM GSTR-3B,
the same maybe correctly reported in the FORM GSTR-1. Similarly, if the details of
inward supplies or the eligible ITC have been reported less or more than what they
should have been, the same maybe reported correctly in the FORM GSTR-2. This will
get reflected in the revised output tax liability or eligible ITC, as the case may be, of
the registered person. The details furnished in FORM GSTR-1 and FORM GSTR-2 will
be auto-populated and reflected in the return in FORM GSTR-3 for that particular
month.
130
Action on the system-based reconciliation:

7. After the registered person has furnished the statement of inward supplies in FORM
GSTR-2 by the extended date, the common portal shall auto-draft Part-A of the
return in FORM GSTR-3 for the said month based on the information furnished in
FORM GSTR-1 and FORM GSTR-2. Based on the revised figures of output tax liability
and eligible input tax credit, Table 12 of Part B of FORM GSTR-3 shall be made
available. The common portal would populate the correct figures of tax payable in
column (2) of Table 12 of FORM GSTR3, based on the information furnished in FORM
GSTR-1 and FORM GSTR-2. The tax paid through the electronic cash ledger and
electronic credit ledger in the return in FORM GSTR3B shall be displayed by the
system in column (3) to (7) of the Table 12 of Part B of FORM GSTR-3. Where there is
no difference between the details of output tax liability and eligible input tax credit
furnished in FORM GSTR-3B and the details furnished in FORM GSTR-1 and FORM
GSTR-2, the amount of tax payable and tax paid shall be the same in FORM GSTR-3B
and FORM GSTR-3. The person can sign and submit FORM GSTR-3 without any
additional payment of tax.
Additional payment of taxes:

8. Where the tax payable by a registered person as per FORM GSTR-3is more than
what has been paid as per FORM GSTR-3B, the common portal would show another
instance of Table 12 for making additional payment of taxes, in accordance with the
mandate of clause (b) of sub-rule (6) of rule 61. As the tax payable in column (2) of
Table 12 of FORM GSTR-3 is more than what was shown in FORM GSTR-3B, the
additional amount of tax payable can be paid by debiting the electronic cash or
credit ledger as per the provisions contained in section 49 of the Act along with
applicable interest on delayed payment of tax starting from 26th day of August, 2017
till the date of debit in the electronic cash or credit ledger. If the eligible ITC claimed
by the person in FORM GSTR-2 is less than the ITC claimed and utilised by the
registered person in FORM GSTR-3B, the same would be added to his output tax
liability and shall have to be paid by him along with interest by debiting the
electronic cash or credit ledger as per the provisions contained in section 49 of the
Act before submitting the return in FORM GSTR-3 to complete the process. It may be
noted that where the transitional credit as declared in FORM GST TRAN-1 is credited
to the electronic credit ledger, the same can be utilised for the payment of the said
additional tax liability.
Additional claim of eligible ITC:

9. Where the eligible ITC claimed by the taxpayer in FORM GSTR-3B is less that the ITC
eligible as per the details furnished in FORM GSTR-2, the additional amount of ITC
shall be credited to the electronic credit ledger of the registered person when he
submits the return in FORM GSTR-3 (in accordance with clause (c) of sub-rule (6) of
rule 61). However, simultaneously, if there is an increase in the output tax liability, the
registered person can utilise this additional amount of ITC eligible as per the details
furnished in FORM GSTR-2 along with the balance in the electronic cash ledger, if
required, for the payment of the increased output tax liability and submit his return in
FORM GSTR-3.
Reduction in output tax liability:

10. Where the output tax liability of the registered person as per the details furnished in
FORM GSTR-1 and FORM GSTR-2 is less than the output tax liability as per the details
furnished in the FORM GSTR-3B and the same is not offset by a corresponding
reduction in the input tax credit to which he is entitled, the excess shall be carried
forward to the next month’s return to be offset against the output liability of the next
month by the taxpayer when he signs and submits the return in FORM GSTR-3.
However, simultaneously, if there is a decrease in the eligible input tax credit, the
same will be adjusted against the above mentioned reduction in output tax liability
131
and the balance, if any, of the reduction in output tax liability shall be carried forward
to the next month’s return to be offset against the output liability of the next month.
Submission of GSTR-3B without payment of taxes:

11. Where, for some reasons, the registered person has only submitted the return in
FORM GSTR-3B and has not made the payment of taxes by debiting the same from
his electronic cash or credit ledger, the return shall still be subjected to the
reconciliation process as detailed above. Such registered person should furnish the
details in FORM GSTR-1, FORM GSTR-2 and sign and submit the return in FORM
GSTR-3 along with the payment of the due taxes as per the provisions of section 49
of the Act. However, since the payment was not made on or before the due date, the
registered person shall be liable for payment of interest on delayed payment of tax
starting from 26th day of August, 2017 till the date of debit in the electronic cash and
/ or credit ledger but will not be liable to pay any late fee provided the requisite
return in FORM GSTR-3B was submitted on or before the due date.
12. Where the registered person has not submitted the return in FORM GSTR-3B, he is
required to furnish the details in FORM GSTR-1 and FORM GSTR-2 and sign and
submit the return in FORM GSTR-3 along with the payment of the due taxes as per
the provisions of section 49 of the Act. However, since the payment was not made
on or before the due date, the registered person shall be liable for payment of
interest on delayed payment of tax starting from 26th day of August, 2017 till the date
of debit in the electronic cash and / or credit ledger. No late fee, however, would be
levied for late filing of return in terms of section 47 of the Act, in accordance with the
recommendation of the GST Council, as notified vide Notification No. 28/2017-
Central tax dated 01.09.2017.
Processing of information furnished:

13. After submission of the information in FORM GSTR-1 and FORM GSTR-2, the process
of matching as per section 41, 42 and 43 of the Act read with rules 69 to 76 of the
Rules shall be carried out as if these details were submitted in the regular course.
Any amendment in the details furnished in FORM GSTR-1 and GSTR-2 shall be done
following the procedure laid down under sub-section (3) of section 37 and sub-
section (5) of section 38 of the Act respectively. The return shall be considered to be
a valid return when the tax payable as per FORM GSTR-3 has been paid in full after
which the return shall be taken up for matching.
this circular.
15. Difficulty, if any, in implementation of the above instructions may please be brought
to the notice of the Board. Hindi version would follow.
Furnish return
1 10 Section 39 18 30
• Every Composition supplier shall

furnish a return of turnover in the State/UT, inward supplies, tax payable and tax paid.
132

to the Government
• Furnishing the return is mandatory, irrespective of the supplies.

• The details of inward supplies

modified, deleted or included by the recipient in his return
shall be communicated to the supplier
in the prescribed manner and within the prescribed time.
(1) Every person registered to pay tax u/s 10 shall furnish the quarterly return in FORM
GSTR-4 by adding, correcting, modifying the details received in FORM GSTR-4A.
Moreover, where such person opts to pay tax u/s 10 w.e.f. the 1st day of the month
which is not the 1st month of the quarter, he shall furnish
o FORM GSTR-4 for the period of qtr. for which he has paid tax u/s 10
o Applicable returns for the prior period of the qtr.
(2) Every registered person furnishing FORM GSTR-4 shall discharge his liability towards
tax, interest, penalty, fees etc. by debiting his e-CaL
(3) FORM GSTR-4 shall include –

(a) invoice wise details of inter-state + intra-state supplies received from
registered + un-registered persons, and
(b) consolidated details of outward supplies
(4) A registered person who opts to pay tax u/s 10 from the beginning of a FY, shall
furnish FORM GSTR-1, FORM GSTR-2 and FORM GSTR-3(or 3B) relating to the period
during which he was liable to do so till, earlier of –
o due date of furnishing return of September of the succeeding FY, or
o the date of furnishing annual return of the preceding FY.
NOTE: The said person shall not be eligible to avail ITC on receipt of invoices/dr. notes from
the supplier for the period prior to his opting for composition scheme.
(5) Where the option of composition scheme is withdrawn by the person himself or the
PO, the said person shall furnish the details relating to period before he becomes
taxable u/s 9 in FORM GSTR-4 till, earlier of –
o due date of furnishing return for qtr. ending September of the succeeding FY,
or
o the date of furnishing annual return of the preceding FY.
• Furnish a return in the prescribed manner and prescribed form

o Within 20 days of end of the relevant calendar month
OR
o Within 7 days after the last day of the period of registration
133
whichever is earlier

to the Government.
Every registered NRTP shall furnish a return in FORM GSTR-5 providing the details of
outward as well as inward supplies and pay the tax, interest and other liabilities by the due
date of furnishing such return.

Furnish return
Section 39
1 10 13 30
• Furnish a return
in the prescribed manner and prescribed form
• The details of inward supplies

modified, deleted or included by the recipient in his return
shall be communicated to the supplier
in the prescribed manner and within the prescribed time.
Every ISD shall furnish a return in FORM GSTR-6 after adding, correcting or deleting the
details received in FORM GSTR-6A.
The said return shall contain the details of tax invoices on which credit has been received
and those issued u/s 20

• Subject to Section 37 and 38

if the registered person discovers any error or omission
by himself
he shall rectify such mistakes
134
in the return to be furnished for the tax period of such discovery

and also pay the interest due on such amount.
• No such rectification shall be allowed after the due date for furnishing return for
September or Q2 of the next FY, or the actual date of furnishing relevant annual return,
• Subject to prescribed conditions and restrictions

every registered person shall be entitled
to take the self-assessed ITC in his return
and such amount shall provisionally be credited to his e-CrL.
• This credit shall be utilized only for payment of

self-assessed output tax as per the return.
• The details of inward supplies furnished shall be matched

(a) with the corresponding details of outward supplies furnished by the
corresponding suppliers in his valid return
(b) with the IGST paid on imported goods
(c) for duplication of ITC claims
• All the claims of correctly matching ITC as mentioned above

shall be finally accepted and communicated to the recipient.
• Where the ITC claimed exceeds the tax declared by the supplier
OR
such supply is not declared by the supplier in his valid returns,
the discrepancy shall be communicated to both.
• If the supplier does not rectify the discrepancy

in his valid return for the month of communication,
it shall be added to the OTL of the recipient
in the month succeeding the month of communication.
• If the supplier declares the invoice /debit note in his valid return
within the time period prescribed in Section 39(9)
the recipient shall be eligible to reduce the amount added earlier
from his OTL
• In case of duplication of claims of ITC,

it shall be communicated to the recipient only
• Amount of such duplication shall be added

to the OTL of the recipient in his return
pertaining to the month of communication
135
• In both the scenarios,

if any amount is added to the OTL of the recipient,
he shall be liable to pay interest @ u/s 50(1) on such amount
from the date of availing credit
till the corresponding additions are made.
• If later on, any reduction as mentioned earlier is accepted

the interest paid shall be refunded
by crediting the e-CaL of the recipient
but it should not exceed the amount of interest paid by the supplier
• If any amount is reduced from the OTL

in contravention to the aforementioned provision,
it shall be added to the OTL of the recipient
in his return for the month of contravention
and the recipient shall be liable to pay interest @ u/s 50(3)
on such added amount.
The following details relating to the claim of ITC provisionally allowed u/s 41 shall be
matched after the due date of furnishing FORM GSTR-3 –
(a) GSTIN of the supplier
(b) GSTIN of the recipient
(c) Invoice/Dr. note no.
(d) Invoice/Dr. note date
(e) Tax amount
However, where the time limit for filing FORM GSTR-1 and FORM GSTR-2 has been
extended, the date of matching the claim of ITC shall also be extended accordingly.
Furthermore, the Commissioner may extend the date of matching the claim of ITC to specific
dates by issuing an order on the recommendation of the GST Council.
NOTE:
(i) The claim of ITC in respect of invoices/dr. notes in FORM GSTR-2 that were accepted
by the recipient from FORM GSTR-2A without any amendment shall be treated as
matched if the corresponding supplier has furnished a valid return.
(ii) The claim of ITC shall be considered as matched if
the amount of ITC claimed ≤ the tax paid by the corresponding supplier on such
invoice/dr. note.
(1) The final acceptance of claim of ITC shall be made available to the claimant in FORM
GST MIS-1.
(2) The claim of ITC which had earlier been communicated as mismatched but now is
found to be matched after rectification by the supplier or recipient shall be finally
accepted and made available to the claimant in FORM GST MIS-1.
136
(1) Any discrepancy in the claim of ITC and the details of addition to the OTL on
continuation of such discrepancy shall be communicated to
o the recipient, making such claim, in FORM GST MIS-1
o the supplier in FORM GST MIS-2
on or before the last date of the month in which such matching was carried out.
(2) The supplier may make suitable rectifications in FORM GSTR-1 to be furnished for the
month in which the discrepancy is communicated.
(3) The recipient may make suitable rectifications in FORM GSTR-2 to be furnished for
the month in which the discrepancy is communicated.
(4) In case it is not so rectified, the discrepancy shall be added to the OTL of the
recipient in his FORM GSTR-3 furnished for the succeeding month.
Any duplication in the claims of ITC in FORM GSTR-2 shall also be communicated in FORM
GST MIS-1
• The details of credit notes relating to outward supplies furnished shall be matched
(a) with the corresponding reduction in the ITC claimed by the corresponding
recipient in his valid return
(b) for duplication of claims for reduction in OTL
• All the claims of correctly matching reduction in OTL

shall be finally accepted and communicated to the supplier.
• Where the reduction of OTL claimed exceeds the corresponding reduction of claim for
ITC
OR
such credit note is not declared by the recipient in his valid returns,
the discrepancy shall be communicated to both.
• If the recipient does not rectify the discrepancy

in his valid return for the month of communication,
it shall be added to the OTL of the supplier
in the month succeeding the month of communication.
• If the recipient declares the credit note in his valid return

within the time period prescribed in Section 39(9)
the supplier shall be eligible to reduce the amount added earlier
from his OTL.
• In case of duplication of claims for reduction of OTL,

it shall be communicated to the supplier only.
137
• Amount of such duplication shall be added

to the OTL of the supplier in his return
pertaining to the month of communication.
• In both the scenarios,

if any amount is added to the OTL of the supplier,
he shall be liable to pay interest @ u/s 50(1) on such amount
from the date of such claim for reduction in OTL
till the corresponding additions are made.
• If later on, any reduction as mentioned earlier is accepted

the interest paid shall be refunded
by crediting the e-CaL of the supplier
but it should not exceed the amount of interest paid by the recipient.
• If any amount is reduced from the OTL

in contravention to the aforementioned provision,
it shall be added to the OTL of the supplier
in his return for the month of contravention
and the supplier shall be liable to pay interest @ u/s 50(3)
on such added amount.
The following details relating to the claim of reduction in OTL shall be matched after the due
date of furnishing FORM GSTR-3 –
(a) GSTIN of the supplier
(b) GSTIN of the recipient
(c) Cr. note no.
(d) Cr. note date
(e) Tax amount
However, where the time limit for filing FORM GSTR-1 and FORM GSTR-2 has been
extended, the date of matching the claim of reduction in OTL shall also be extended
accordingly.
Furthermore, the Commissioner may extend the date of matching the claim of ITC to specific
dates by issuing an order on the recommendation of the GST Council.
NOTE:
(i) The claim of reduction in OTL in respect of cr. notes in FORM GSTR-1 that were
accepted by the recipient in FORM GSTR-2 without any amendment shall be treated
as matched if the corresponding supplier has furnished a valid return.
(ii) The claim of reduction in OTL shall be considered as matched if
the amount of OTL after the reduction claimed ≥ the claim of ITC after considering
the reduction admitted and discharged by the corresponding supplier on such cr.
note. in his valid return.
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(1) The final acceptance of claim of reduction in OTL shall be made available to the
claimant in FORM GST MIS-1.
(2) The claim of reduction in OTL which had earlier been communicated as mismatched
but now is found to be matched after rectification by the supplier or recipient shall
be finally accepted and made available to the claimant in FORM GST MIS-1.
(1) Any discrepancy in the claim of reduction in OTL and the details of addition to the
OTL on continuation of such discrepancy shall be communicated to
o the supplier, making such claim, in FORM GST MIS-1
o the recipient in FORM GST MIS-2
on or before the last date of the month in which such matching was carried out.
(2) The supplier may make suitable rectifications in FORM GSTR-1 to be furnished for the
month in which the discrepancy is communicated.
(3) The recipient may make suitable rectifications in FORM GSTR-2 to be furnished for
the month in which the discrepancy is communicated.
(4) In case it is not so rectified, the discrepancy shall be added to the OTL of the supplier
in his FORM GSTR-3 furnished for the succeeding month and debited to his ELR as
well.
Any duplication in the claims of reduction in OTL in FORM GSTR-1 shall also be
communicated in FORM GST MIS-1.
The interest to be refunded u/s 42(9) or 43(9) shall be claimed by the registered person in
FORM GSTR-3 and shall be credited to his e-CaL.
The amount so credited shall be available for payment of any future liability towards interest
or
the taxable person may claim refund of the amount u/s 54.
• Where any registered person,

who has furnished the outward/inward supply details
and which have remained unmatched u/s 42 or 43,
discovers any error or omission
he shall rectify such mistakes
and pay any tax and interest arising due to short payment earlier
139
• No such rectification shall be allowed after the due date for furnishing return for
September of the next FY, or the actual date of furnishing relevant annual return,
whichever is earlier
• Applicable on every registered person, except

ISD; TDS deductor; TCS collector; CTP; NRTP
• Before 31st day of December of the succeeding Financial Year
• In case the registered person is required to get his accounts audited u/s 35(5)
the annual return shall be accompanied with
o A copy of audited annual accounts
o A reconciliation statement, reconciling the value of supplies as per the return
and as per the audited annual financial statement
(1) In general cases, the annual return shall be furnished in FORM GSTR-9.
However, in case of composition suppliers, the annual return shall be furnished by
FORM GSTR-9A
(3) Every registered person whose agg. turnover during a FY exceeds ₹2 crores shall get
his accounts audited u/s 35(5). A copy of the audited annual accounts and a certified
reconciliation statement shall be furnished in FORM GSTR-9C
• Applicable on every registered person, except

ISD; NRTP; TDS deductor; TCS collector; Composition supplier
whose registration has been cancelled
• Within 3 months of the

o date of cancellation
OR
o date of order of cancellation
whichever is later
The Final Return shall be furnished in FORM GSTR-10
Date on which liability to register arises
Date of Issuance of RC
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Outward supplies made between

• Date on which he became liable for registration
AND
• Date on which registration has been granted
shall be declared in the first return
after grant of registration.
Where a registered person fails to furnish

Periodic/annual/final return
a notice shall be issued
requiring him to furnish the same
within 15 days
in the prescribed manner and prescribed form
A notice in FORM GSTR-3A shall be issued to a registered person who fails to furnish return
u/s 39/44/45/52
• Any registered person who fails to furnish

o Details of outward/inward supplies
o Periodic return
o Final return
by the due date
shall pay late fee of
₹100/day OR ₹5,000
whichever is lower
• Any registered person who fails to furnish

the annual return
by the due date
shall pay late fee of
₹100/day OR 25% of his turnover in the State/UT
whichever is lower
(1) The Government shall prescribe

o the manner of approval
o the eligibility conditions
o Duties and obligations
o Manner of removal
o Other conditions relevant for functioning
of a GST practitioner.
141
(2) A registered person may authorize

an approved GST practitioner to furnish
o the details of outward supplies
o the details of inward supplies
o the periodical returns
o the annual return
o the final return
(3) Overruling sub-section 2,

the responsibility for correctness of
return or other details furnished by a GST practitioner
shall continue to rest with the registered person
on whose behalf such details are furnished.
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(1) The application for enrolment as GSTP shall be submitted in FORM GST PCT-01 by
any person who,
(i) is a citizen of India,
(ii) is a person of sound mind,
(iii) is not adjudicated as insolvent,
(iv) has not been convicted by a competent court
and satisfied any of the following conditions:
(a) he is a rtd. officer of
▪ Comm. Tax Deptt. of any SG, or
▪ CBEC, Deptt of Revenue, GOI
who had worked at a rank of Group-B gazetted officer or above for 2 yrs. or
more during his service under the Govt., OR
(b) he has enrolled as a STP or TRP under the existing law for 5 yrs. or more,
(c) he has passed
▪ graduate/PG or equivalent degree exam in Commerce, Law, Banking
including Higher Auditing, Business Administration or Business
Management from any Indian University, OR
▪ a degree exam of any Foreign University recognized by any Indian
University as equivalent to the degree exam mentioned in (i), OR
▪ any other exam notified by the Govt., OR
▪ (a) final exam of the ICAI (CA)
(b) final exam of the ICAI (CMA)
(c) final exam of the ICSI (CS)
(2) On receipt of the aforementioned application, the authorized officer shall make
necessary enquiry and either enrol the applicant by issuing certificate in FORM GST
PCT-02 or reject the application if he is found to be unqualified for the same.
(3) Such enrolment shall be valid until it is cancelled.

However, no enrolled GSTP shall remain enrolled unless he passes certain exams
conducted at certain periods as may be notified by the Commissioner.
Also, no person earlier enrolled as STP/TRP shall be eligible to remain enrolled unless
he passes the said exam within 1 year from the appointed date.
(4) A GSTP guilty of misconduct shall be issued a SCN in FORM GST PCT-03 for such
misconduct, and after being heard, may be directed by the PO by issuing an order in
FORM GST PCT-04 the he shall henceforth be disqualified to function as a GSTP.
(5) The aggrieved person may appeal against such order to the Commissioner within 30
days of issuance of the same.
(6) Any registered person may authorize a GSTP in FORM GST PCT-05, or at any time
withdraw such authorization in the same form, and the GSTP shall be allowed to
undertake the tasks indicated in the said authorization.
(7) Where a statement required to be furnished by a registered person has been

furnished by the GSTP, a confirmation shall be sought from the regd. person through
e-mail/SMS and the furnished statement shall be made available to him as well.
However, where the regd, person fails to respond to such request till the last date of
furnishing such statement, his confirmation shall be deemed to have been received.
(8) A GSTP may undertake any of the following activities on behalf of the regd. person if
so authorized –
143
(a) furnish the details of outward and inward supplies;

(b) furnish monthly, quarterly, annual or final return;
(c) make deposit for credit into the electronic cash ledger;
(d) file a claim for refund; and
(e) file an application for amendment or cancellation of registration.
However, where any application for refund or amendment/cancellation of
registration is submitted by the authorized GSTP, a confirmation shall be sought from
the regd, person and the application shall be made available to him. Such application
shall not be proceeded with until the regd. person gives his consent to the same.
(9) Any regd. person opting to furnish his return through GSTP shall-
(a) give his consent in FORM GST PCT-05 to any GSTP and
(b) before confirming submission of any statement prepared by the GSTP, ensure
that the facts mentioned are true and correct.
(10) The GSTP shall –

(a) prepare the statements with due diligence, and
(b) affix his DSC on the statements prepared by him or e-verify using his
credentials.
(11) A GSTP enrolled in any other state/UT shall be treated as enrolled in the state/UT for
the functions mentioned in (8).
1) No person shall be eligible to attend before any authority as a GSTP for any
proceedings on behalf of any regd. person unless he has been enrolled as a GSTP.
2) A GSTP attending on behalf of a regd./un-regd. person in any proceedings before any
authority shall produce a copy of FORM GST PCT-05, if so required.
• Valid Return [Sec. 2(117) of CGSTA]: means a return furnished under sub-section (1) of
section 39 on which self-assessed tax has been paid in full.
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IGSTA, 2017
• Section 15: Refund of IGST to international tourists
• Section 16: Zero rated supply
• Section 17: Apportionment of tax and settlement of funds
• Section 18: Transfer of ITC
• Section 19: Tax wrongfully collected and paid to CG/SG
The IGST paid by tourist leaving India

on any supply of goods taken out of India by him
shall be refunded in prescribed manner
NOTE: Tourist = Person not normally resident of India, staying in India for not more than 6
months for legitimate non-immigrant purposes.
(1) It means
(a) export of goods/services, or
(b) supply of goods/services to a SEZ developer/unit
(2) Subject to Section 17(5) of the CGSTA, 2017

ITC may be availed for making zero-rated supplies
ignoring the fact that such supply may be an exempt supply.
(3) A registered person making zero rated supply

shall be eligible to claim refund under either of the following options, as per the
provisions of Sec 54 of CGSTA –
(a) He may supply goods/services under bond or LUT
without payment of IGST
and claim refund of unutilised ITC
subject to prescribed conditions, or
(b) He may supply goods/services on payment of IGST
and claim refund of such tax paid
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(1) The shipping bill filed by an exporter shall be deemed to be an application for refund
of IGST and it shall be deemed to have been filed only when –
(a) The PIC of conveyance duly files an export manifest/export report covering
the no. and date of shipping bills/bills of export, and
(b) the applicant has furnished FORM GSTR-3 (or 3B)
(2) The details of relevant export invoices contained in FORM GSTR-1 shall be e-
transmitted to the system designated by Customs and the said system shall confirm
that the goods covered by the said invoices have been exported.
However, in case the due date for furnishing FORM GSTR-1 is extended by the
Government, the supplier shall furnish the information related to exports in Table 6A
of FORM GSTR-1 after filing FORM GSTR-3B and this information shall be transmitted
to the Customs system.
Such information furnished in Table 6A shall be auto-drafted in FORM GSTR-1 for the
said tax period.
(3) On receipt of the information regarding furnishing of FORM GSTR-3 (or 3B), the
system designated by Customs shall process the refund claim and the IGST amount
paid shall be credited to the bank account of the applicant intimated to the Customs
authorities.
(4) The refund claim shall be withheld in case –

(a) a request has been received from the jurisdictional Commissioner to withhold
the payment as per section 54(10)/ (11)
(b) the PO of Customs determines that the goods were exported in violation of
CA, 1962.
(5) Where refund is withheld as per (a) above, the PO of IGST at Customs station shall
intimate the applicant and the jurisdictional Commissioner.
(6) On transmission of the intimation to the common portal, the PO of

CGST/SGST/UTGST shall pass an order in FORM GST RFD-07 (Part B)
(7) In case the applicant later on becomes entitled to the amount so withheld, the
concerned jurisdictional officer shall refund the same by passing an order in FORM
GST RFD-06.
(8) The CG may pay the refund of IGST to the Govt. of Bhutan instead of the exporter for
certain class of notified goods.
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(1) A registered person opting to supply for export without payment of IGST shall furnish
a bond/LUT in FORM GST RFD-11 to the Commissioner before exporting. This form
shall bind him to pay the due tax and interest within –
(a) 15 days after 3 months (as extended) from the invoice date, if the goods are
not exported, or
(b) 15 days after 1 year (as extended) from the invoice date, if the payment of
such services is not received in convertible foreign exchange.
(2) The details of relevant export invoices contained in FORM GSTR-1 shall be e-
transmitted to the system designated by Customs and the said system shall confirm
that the goods covered by the said invoices have been exported.
However, in case the due date for furnishing FORM GSTR-1 is extended by the
Government, the supplier shall furnish the information related to exports in Table 6A
of FORM GSTR-1 after filing FORM GSTR-3B and this information shall be transmitted
to the Customs system.
Such information furnished in Table 6A shall be auto-drafted in FORM GSTR-1 for the
said tax period.
(3) In case the goods are not exported within the specified time and the registered
person fails to pay the amount as per (1), the export allowed under the Bond/LUT
shall be withdrawn and the amount shall be recovered u/s 79.
(4) The export so withdrawn shall be restored immediately when the amount due is
paid.
(5) CBEC may notify the conditions and safeguards under which a LUT may be furnished
instead of a bond.
(6) The provisions of (1) shall mutatis mutandis apply to zero-rated supplies made to a
SEZ developer/unit without payment of IGST.
Notfn. No.: 37/2017 – CT

Conditions and safeguards for exporters for furnishing LUT instead of Bond –
(i) all registered persons who intend to supply for export without payment of IGST shall
be eligible to furnish a LUT in place of a bond
except those who have been prosecuted under the CGSTA/IGSTA or any of the
existing laws in force in a case where the amount of tax evaded exceeds ₹250
lakhs.
(ii) the LUT shall be furnished in duplicate on the letter head of the registered person,
for a FY in the annexure to FORM GST RFD – 11 and it shall be executed by the
working partner/the MD/the CS/the proprietor/a person duly authorised by such
working partner/BoD of such company/proprietor.
(iii) where the regd. person fails to pay the tax and interest due within the period
specified in Rule 96A(1), the facility to export without payment of IGST shall be
deemed to have been withdrawn. It shall later be restored on making such
payment.

Clarification on issues related to furnishing of Bond/Letter of Undertaking for exports
In view of the difficulties being faced by the exporters in submission of bonds/Letter

of Undertaking (LUT for short) for exporting goods or services or both without
payment of integrated tax, Notification No. 37/2017 – Central Tax dated 4th October,
147
2017 has been issued which extends the facility of LUT to all exporters under rule
96A of the Central Goods and Services Tax Rules, 2017 (hereafter referred to as “the
CGST Rules”) subject to certain conditions and safeguards. This notification has been
issued in supersession of Notification No. 16/2017 – Central Tax dated 7th July, 2017
except as respects things done or omitted to be done before such supersession.
2. In the light of the new notification, three circulars in this matter, namely Circular No.
2/2/2017 – GST dated 5th July, 2017, Circular No. 4/4/2017 – GST dated 7th July, 2017
and Circular No. 5/5/2017 – GST dated 11th August, 2017, which were issued for
providing clarity on the procedure to be followed for export under bond/LUT, now
require revision and a consolidated circular on this matter is warranted. Accordingly,
to ensure uniformity in the procedure in this regard, the Board, in exercise of its
powers conferred under section 168 (1) of the Central Goods and Services Tax Act,
2017 clarifies the following issues:
a) Eligibility to export under LUT: The facility of export under LUT has been now
extended to all registered persons who intend to supply goods or services for
export without payment of integrated tax except those who have been
prosecuted for any offence under the CGST Act or the Integrated Goods and
Services Tax Act, 2017 or any of the existing laws and the amount of tax
evaded in such cases exceeds two hundred and fifty lakh rupees unlike
Notification No. 16/2017-Central Tax dated 7th July, 2017 which extended the
facility of export under LUT to status holder as specified in paragraph 5 of the
Foreign Trade Policy 2015-2020 and to persons receiving a minimum foreign
inward remittance of 10% of the export turnover in the preceding financial
year which was not less than Rs. one crore.
b) Validity of LUT: The LUT shall be valid for the whole financial year in which it
is tendered. However, in case the goods are not exported within the time
specified in subrule (1) of rule 96A of the CGST Rules and the registered
person fails to pay the amount mentioned in the said sub-rule, the facility of
export under LUT will be deemed to have been withdrawn. If the amount
mentioned in the said sub-rule is paid subsequently, the facility of export
under LUT shall be restored. As a result, exports, during the period from
when the facility to export under LUT is withdrawn till the time the same is
restored, shall be either on payment of the applicable integrated tax or under
bond with bank guarantee.
c) Form for bond/LUT: Till the time FORM GST RFD-11 is available on the
common portal, the registered person (exporters) may download the FORM
GST RFD-11 from the website of the Central Board of Excise and Customs
(www.cbec.gov.in) and furnish the duly filled form to the jurisdictional
Deputy/Assistant Commissioner having jurisdiction over their principal place
of business. The LUT shall be furnished on the letter head of the registered
person, in duplicate, and it shall be executed by the working partner, the
Managing Director or the Company Secretary or the proprietor or by a
person duly authorised by such working partner or Board of Directors of such
company or proprietor. The bond, wherever required, shall be furnished on
non-judicial stamp paper of the value as applicable in the State in which the
bond is being furnished.
d) Documents for LUT: Self-declaration to the effect that the conditions of LUT
have been fulfilled shall be accepted unless there is specific information
otherwise. That is, self-declaration by the exporter to the effect that he has
not been prosecuted should suffice for the purposes of Notification No.
37/2017- Central Tax dated 4th October, 2017. Verification, if any, may be
done on post-facto basis.
e) Time for acceptance of LUT/Bond: As LUT/Bond is a priori requirement for
export, including exports to a SEZ developer or a SEZ unit, the LUT/bond
should be processed on top most priority. It is clarified that LUT/bond should
be accepted within a period of three working days of its receipt along with
148
the self-declaration as stated in para 2(d) above by the exporter. If the LUT /
bond is not accepted within a period of three working days from the date of
submission, it shall deemed to be accepted.
f) Bank guarantee: Since the facility of export under LUT has been extended to
all registered persons, bond will be required to be furnished by those persons
who have been prosecuted for cases involving an amount exceeding Rupees
two hundred and fifty lakhs. A bond, in all cases, shall be accompanied by a
bank guarantee of 15% of the bond amount.
g) Clarification regarding running bond: The exporters shall furnish a running
bond where the bond amount would cover the amount of self-assessed
estimated tax liability on the export. The exporter shall ensure that the
outstanding integrated tax liability on exports is within the bond amount. In
case the bond amount is insufficient to cover the said liability in yet to be
completed exports, the exporter shall furnish a fresh bond to cover such
liability. The onus of maintaining the debit / credit entries of integrated tax in
the running bond will lie with the exporter. The record of such entries shall be
furnished to the Central tax officer as and when required.
h) Sealing by officers: Till mandatory self-sealing is operationalized, sealing of
containers, wherever required to be carried out under the supervision of the
officer, shall be done under the supervision of the central excise officer
having jurisdiction over the place of business where the sealing is required to
be done. A copy of the sealing report would be forwarded to the
Deputy/Assistant Commissioner having jurisdiction over the principal place
of business.
i) Purchases from manufacturer and Form CT-1: It is clarified that there is no
provision for issuance of CT-1 form which enables merchant exporters to
purchase goods from a manufacturer without payment of tax under the GST
regime. The transaction between a manufacturer and a merchant exporter is
in the nature of supply and the same would be subject to GST.
j) Transactions with EOUs: Zero rating is not applicable to supplies to EOUs and
there is no special dispensation for them under GST regime. Therefore,
supplies to EOUs are taxable like any other taxable supplies. EOUs, to the
extent of exports, are eligible for zero rating like any other exporter.
k) Realization of export proceeds in Indian Rupee: Attention is invited to para A
(v) PartI of RBI Master Circular No. 14/2015-16 dated 01stJuly, 2015 (updated
as on 05th November, 2015), which states that “there is no restriction on
invoicing of export contracts in Indian Rupees in terms of the Rules,
Regulations, Notifications and Directions framed under the Foreign
Exchange Management Act, 1999. Further, in terms of Para 2.52 of the
Foreign Trade Policy (2015-2020), all export contracts and invoices shall be
denominated either in freely convertible currency or Indian rupees but
export proceeds shall be realized in freely convertible currency. However,
export proceeds against specific exports may also be realized in rupees,
provided it is through a freely convertible Vostro account of a non-resident
bank situated in any country other than a member country of Asian Clearing
Union (ACU) or Nepal or Bhutan”.
Accordingly, it is clarified that the acceptance of LUT for supplies of goods to
Nepal or Bhutan or SEZ developer or SEZ unit will be permissible irrespective
of whether the payments are made in Indian currency or convertible foreign
exchange as long as they are in accordance with the applicable RBI
guidelines. It may also be noted that the supply of services to SEZ developer
or SEZ unit under LUT will also be permissible on the same lines. The supply
of services, however, to Nepal or Bhutan will be deemed to be export of
services only if the payment for such services is received by the supplier in
convertible foreign exchange.
l) Jurisdictional officer: In exercise of the powers conferred by sub-section (3)
of section 5 of the CGST Act, it is hereby stated that the LUT/Bond shall be
149
accepted by the jurisdictional Deputy/Assistant Commissioner having

jurisdiction over the principal place of business of the exporter. The exporter
is at liberty to furnish the LUT/bond before either the Central Tax Authority or
the State Tax Authority till the administrative mechanism for assigning of
taxpayers to the respective authority is implemented.
3. Circular No. 2/2/2017 – GST dated 5th July, 2017, Circular No. 4/4/2017 – GST dated
7th July, 2017 and Circular No. 5/5/2017 – GST dated 11th August, 2017 are hereby
rescinded except as respects things already done or omitted to be done.
this circular.
5. Difficulty, if any, in implementation of the above instructions may please be brought

to the notice of the Board. Hindi version would follow.
Circular No. 2/1/2017-IGST

Clarification on supply of satellite launch services by ANTRIX Corporation Ltd.
Request has been received regarding taxability of satellite launch services provided
to both international and domestic customers by ANTRIX Corporation Limited which
is a wholly owned Government of India Company under the administrative control of
Department of Space (DOS).
2. In the above context, the legal provisions in GST laws are as under:
a) Export of services is defined in IGST Act in Section 2(6) where the following 5
conditions have been prescribed as necessary for a supply to qualify as
export of service:
(i) the supplier of service is located in India;
(ii) the recipient of service is located outside India;
(iii) the place of supply of service is outside India;
(iv) the payment for such service has been received by the supplier of
service in convertible foreign exchange; and
(v) the supplier of service and the recipient of service are not merely
establishments of a distinct person in accordance with Explanation 1
in section 8;
One of the five conditions for a supply of service to be considered as “export
of service” is that the place of supply of service is outside India.
b) Section 13(9) of the IGST Act provides that where location of supplier of
services or location of recipient of services is outside India, the place of
supply of services of transportation of goods, other than by way of mail or
courier, shall be the place of destination of such goods. However, where
location of supplier and recipient of services is in India, then the place of
supply is governed by section 12 (8) of the IGST Act, which stipulates that
place of supply will be the location of the recipient of services provided he is
registered; if not registered, then the place of supply will be the place where
goods are handed over for their transportation.
3. In view of the above, place of supply of satellite launch services supplied by ANTRIX
Corporation Limited to international customers would be outside India in terms of
section 13(9) of IGST Act, 2017 and such supply which meets the requirements of
section 2(6) of IGST Act, thus constitutes export of service and shall be zero rated in
accordance with section 16 of the IGST Act. Where satellite launch service is
provided by ANTRIX Corporation Limited to a person located in India, the place of
supply of satellite launch service would be governed by section 12 (8) of the IGST Act
and would be taxable under CGST Act, UTGST Act or IGST Act, as the case may be.
150
(1) Out of the IGST paid to the CG

in respect of the following inter-state supplies or imports,
the amount of tax equivalent to CGST on similar intra-state supply shall be apportioned
to the CG –
(a) To/by an unregistered person or a person registered under composition levy
provisions.
(b) where the registered person is not eligible for ITC
(c) To/by a registered person in a FY, where he does not avail of the ITC within the
specified period and thus remains in the IGST account after expiry of the due
date for furnishing of annual return
(2) The balance amount of IGST

in respect of the aforementioned supplies
shall be apportioned to-
(a) State where such supply takes place, and
(b) CG where such supply takes place in a UT
However, where the place of such supply cannot be determined separately, it shall be
apportioned to –
(a) Each of the state
(b) CG in relation to the UTs
in proportion to the total supplies made by such taxable person
to each of such States or UTs, in a FY.
In case the taxable person making such supplies is not identifiable,
the said balance shall be apportioned to all States and CG
in proportion to the SGST or UTGST collected by the SG/CG
during the immediately preceding FY.
(3) Similar provisions as mentioned in (1) and (2)

shall apply to the apportionment of interest, penalty etc.
mutatis mutandis, in connection with the tax so apportioned,
(4) Where an amount has been apportioned to the CG/SG

under sub-sections (1), (2) or (3)
the amount collected as IGST shall be reduced
and the CG shall transfer the amount to the respective accounts
in the prescribed manner and within prescribed time.
(5) Any IGST apportioned to a SG or the CG on account of UT

if subsequently found to be refundable and refunded
shall be reduced from the amount to be apportioned to such SG or CG in the prescribed
manner and within the prescribed time.
On utilization of IGST availed under this Act for payment of –
151
(a) CGST – the amount collected as IGST shall be reduced and CG shall transfer from the
IGST account to the CGST account in prescribed manner and within the prescribed
time.
(b) UTGST - the amount collected as IGST shall be reduced and CG shall transfer from the
IGST account to the UTGST account in prescribed manner and within the prescribed
time.
(c) SGST - the amount collected as IGST shall be reduced and apportioned to “appropriate
SG”, and the CG shall transfer the apportioned amount to the account of “appropriate
SG” in prescribed manner and within the prescribed time.
(1) A registered person who has paid IGST on an inter-state supply

which is subsequently held to be an intra-state supply
shall be granted refund of the IGST so paid
in prescribed manner and subject to prescribed conditions.
(2) A registered person who has paid CGST and SGST/UTGST on an intra-state supply
which is subsequently held to be an inter-state supply
shall not be required to pay any interest on the IGST payable.
152
CGSTA, 2017
• Section 54: Refund of Tax
• Section 55: Refund in Certain Cases
• Section 56: Interest on Delayed Refunds
• Section 57: Consumer Welfare Fund
• Section 58: Utilization of Fund
(1) Any person may make an application

for claiming refund of any tax and interest or any other amount
within 2 years from the relevant date
• However, refund of any balance in the e-CaL
may be claimed in the periodic return
• Relevant date means –
o In case of goods exported –
▪ By sea/air – the date on which the ship/aircraft leaves India
▪ By land – the date on which the goods pass the frontier
▪ By post – the date of despatch of goods by the Post Office
o In case of deemed exports, for tax paid on supply of goods,
the date on which the return relating to such supply is furnished.
Notfn. No.: 48/2017 – CT

The following supplies shall be considered as deemed exports –
Sl. Description of Supply
No.
1 Supply of goods by a registered person against Advance Authorisation issued by

DGFT
2 Supply of capital goods by a registered person against EPCGA
3 Supply of goods by a registered person to Export Oriented Unit
4 Supply of gold by a bank or PSU specified in the Notfn. No. 50/2017-Customs
against Advance Authorisation
o In case of services exported –

▪ Where supply is completed before payment – the date of receipt of
payment in convertible forex
▪ Where payment is received in advance before invoice date – The date
of issue of invoice
153
o In case tax is refundable as a result of any judgement/decree/order

of Appellate Authority, Appellate Tribunal, or any court –
The date of communication of such judgement etc.
o In case of refund of unutilized ITC u/ss (3) – The end of the FY in which such
claim for refund arises.
o In case tax is paid on provisional basis – The date of adjustment of tax after the
final assessment.
o In the case of a person, other than supplier – The date of receipt of supply
o In any other case – The date of payment of tax
(2) To be read with Section 55
(3) A registered person may claim refund of

any unutilized ITC
at the end of any tax period
in the following cases only –
o Zero-rated supplies made without payment of tax
o Accumulated credit on account of
Input tax rate > Output tax rate (except Nil rated/fully exempt supplies)
other than supplies notified by the Government.

No refund of unutilized ITC accumulated due to higher rate of tax on inputs than that on
output supply shall be allowed in respect of the following goods –
• Woven fabrics
• Corduroy fabrics
• Knitted or crocheted fabrics
• Rail locomotives, coaches, wagons etc.
Supply of construction services as per 5(b) of Sch. II [Notfn. No: 15/2017 – CT(R) and 12/2017
– IT(R)]
• However, no refund of ITC shall be allowed

in case of exported goods subjected to export duty
• Also, no refund of ITC shall be allowed
if the supplier avails of drawback in respect of CGST or
claims refund of IGST paid on such supplies
(4) The application of refund shall be accompanied by –

(a) Prescribed documentary evidence to establish that a refund is due
(b) Documentary or other evidence to establish that
the tax, interest or any other amount
for which refund is claimed
is collected from/paid by him
and the incidence has not been passed on to any other person.
However, in case the refund claim < ₹2,00,000
such evidence is not necessary
but a declaration need to be filed which shall certify that
the incidence has not been passed on to any other person.
(5) If the PO is satisfied with the application

he may order the refund of whole or part of the amount
and such amount shall be credited to the CWF.
154

in case of refund claimed on account of zero-rated supplies
by registered persons other than the ones notified by the Govt.
90% of the claimed amount (-) ITC provisionally accepted
shall be provisionally refunded in the prescribed manner
subject to prescribed conditions and safeguards
and then make the order u/ss (5) after duly verifying
the documents furnished by the applicant.
(7) Such order shall be issued within 60 days

from the date of receipt of complete application.
(14) Overruling this section,

no refund shall be paid u/ss (5) or (6)
if the amount is less than ₹1,000.
(8) Overruling sub-section (5)

the refundable amount shall be paid to the applicant
instead of being credited to the CWF –
(a) Refund of tax paid on zero-rated supplies or
on inputs/input services used in making such supplies
(b) Refund of unutilized ITC under sub-section (3)
(c) Refund of tax paid on a supply which has
either wholly or partially not been provided
and for which either the tax invoice has not been issued
or a refund voucher is issued.
(d) Refund of tax u/s 77
(e) The tax, interest or any other amount paid by the applicant
if the incidence has not been passed on to any other person.
(f) The tax or interest borne by a notified class of applicants.
(9) Overruling anything to the contrary

contained in any judgement/decree/order/direction
of the AT or any court
or any other provision in the Act/Rules or any other law
refund shall be made according to sub-section (8) ONLY.
(10) In case any refund of unutilized ITC is due u/ss (3)

to a registered person who
o has defaulted in furnishing any return, or
o is required to pay tax/interest/penalty,
which has not been stayed by any court, tribunal or appellate authority
by the specified date, i.e., last date for filing appeal under this Act.
the PO may
(a) Withhold the payment of refund until the discrepancy is resolved
(b) Deduct the payable amount under this Act or previous laws from the refund
due
(11) In case the order of refund is under appeal, or

when any other proceeding under the Act is pending
and the Commissioner opines that
grant of such relief shall adversely affect the revenue
155
in the said appeal/proceeding

on account of fraud or malfeasance,
he may withhold the refund till a specific time
after giving the applicant an opportunity of being heard.
(12) Overruling Section 56

in case a refund is withheld u/ss (11), the taxable person
shall be entitled to interest @ 6% [Notfn. No.: 13/2017 – CT and 06/2017 - IT]
if as a result of the appeal/proceedings
he becomes entitled to refund.
(13) Overruling anything to the contrary contained in this Section,

the amount of advance tax deposited by CTP/NRTP
shall not be refunded unless such person
has furnished all the returns required u/s 39
in respect of the entire period for which RC has been granted.
156
(1) Any person claiming refund of any tax, interest etc. paid by him, other than refund of
IGST paid on exports, may file an application in FORM GST RFD-01.
However, any claim for refund of balance in e-CaL may be made through the return
furnished for the relevant tax period in FORM GSTR-3/4/7
Furthermore, the application for refund for supplies to a SEZ unit/developer shall be
filed by the –
(a) supplier of goods after such goods have been admitted in full in the SEZ for
authorized operations, as endorsed by the specified officer of the Zone,
(b) supplier of services along with such evidence regarding receipt of services for
authorised operations as endorsed by the specified officer of the Zone
Also, the application for refund for supplies regarded as deemed exports may be
filed by –
(a) the recipient of deemed export supplies, or
(b) the supplier of deemed export supplies, where
▪ the recipient does not avail of ITC on such supplies and
▪ the recipient furnishes an undertaking that the supplier may claim the
refund.
Also, the refund of any amount out of the advance tax deposited by a CTP/NRTP
after adjusting the tax payable shall be claimed by him in the last return.
(2) FORM GST RFD-01 shall be accompanied by any of the following evidences in
Annexure I to establish that a refund is due to the applicant-
(a) the ref. no. and a copy of the order passed by the PO/AA/AT/court resulting
in such refund or ref. no. of the payment of the amount u/s 107(6) and 112(8)
claimed as refund
(b) in case of refund on export of goods - a statement containing the no. and
date of shipping bills/bills of export and the no. and the date of relevant
export invoices
(c) in case of refund on export of services - a statement containing the no. and
date of invoices and the relevant BRC/FIRC
(d) in case of refund on supply of goods to SEZ unit/developer - a statement
containing the no. and date of invoices along with the evidence regarding the
endorsement specified earlier
(e) in case of refund on supply of services to SEZ unit/developer - a statement
containing the no. and date of invoices, the evidence regarding the
endorsement specified earlier and the details and proof of payment made by
the recipient for authorised operations
(f) in case of refund on supply of goods/services made to a SEZ unit/developer -
a declaration that the SEZ unit/developer has not availed the ITC of the tax
paid by the supplier.
(g) in case of refund on deemed exports - a statement containing the no. and
date of invoices along with other notified evidences.
Notfn. No.: 49/2017 – CT

CG has notified the following as evidences which are required to be produced by the
supplier of deemed export supplies for claiming refund –
1. Acknowledgement by the tax officer of the AA/EPCGA holder that the said
supplies have been received by the said authorization holder, or
A copy of the tax invoice of such supplies duly signed by the recipient EOU
2. An undertaking by the recipient that no ITC has been availed by him on such
supplies
3. An undertaking by the recipient that he shall not claim any refund on such
supplies and that the supplier may claim the refund
157
(h) in case of claim of refund of unutilized ITC u/s 54(3) - a statement containing
the no. and date of invoices received and issued during the tax period
(i) in case of refund on finalization of provisional assessment - the ref. no. and a
copy of the final AO
(j) in case of refund for inter-state supply that was earlier considered as intra-
state supply - a statement showing the details of transactions
(k) in case of refund for excess payment of tax - a statement showing the details
of the amount
(l) in case the refund claimed does not exceed ₹2 lakhs - a declaration that the
incidence of tax, interest etc. claimed as refund has not been passed on to
any other person.
However, such a declaration is not required u/s 54(8) (a)/(b)/(c)/(d)/(f)
(m) in case the refund claimed exceeds ₹2 lakhs - a certificate in Annexure 2 of
FORM GST RFD-01 issued by a CA/CMA that the incidence of tax, interest etc.
has not been passed on to any other person.
However, such a declaration is not required u/s 54(8) (a)/(b)/(c)/(d)/(f)
(3) In case the application relates to refund of ITC, the e-CrL shall be debited by the
applicant
(4) In case of zero-rated supplies without payment of tax under bond/LUT, refund of ITC
shall be granted as follows –
Refund = Turnover of zero-rated supplies × Net ITC ÷ Adjusted Total Turnover
A. Refund = Max refund admissible
B. Net ITC = ITC availed on inputs during the relevant period
C. Turnover of zero-rated supplies = the value of zero-rated supplies made
without payment of tax under bond/LUT
NOTE: Zero-rated supply of services = payments received for relevant period
+ advances for services completed in relevant period (-) advances for
services not completed during the relevant period
D. Adjusted Total Turnover = Turnover in a state/UT excluding the value of
exempt supplies other than zero-rated supplies during the relevant period.
(3) In case of refund of inverted duty structure, refund of ITC shall be granted as
follows –
(4) Max Refund Amount = {(Turnover of inverted rated supply of goods) × Net ITC ÷
Adjusted Total Turnover} – Tax payable on such inverted rated
supply of goods
158
(1) In case of application for claim of refund of balance in e-CaL, an acknowledgement in

FORM GST RFD-02 shall be issued to the applicant, indicating the date of filing the
claim and the time period specified in 54(7) shall be counted from such date of filing.
(2) Other refund applications shall be forwarded to the PO who shall scrutinize the
application within 15 days of its filing, and where it is found complete u/r 89(2),(3)
and (4), an acknowledgement in FORM GST RFD-02 shall be issued to the applicant,
indicating the date of filing the claim and the time period specified in 54(7) shall be
counted from such date of filing.
(3) Any deficiency shall be communicated to the applicant in FORM GST RFD-03,
requiring him to file a fresh refund application after rectification of such deficiencies.
(4) FORM GST RFD-03 communicated under SGSTR, 2017 shall be deemed to have been
communicated under CGSTR, 2017 as well.
(1) The provisional refund u/s 54(6) shall be granted subject to the condition that the
claimant has not been prosecuted for any offence under the current or past indirect
tax laws with amount of tax evasion exceeding ₹250 lakhs during 5 yrs. immediately
preceding the tax period to which the claim for refund relates.
(2) On satisfaction after scrutiny, the PO shall make a sanction order in FORM GST RFD-
04 within 7 days from the date of acknowledgement u/r 90(1)/ (2)
(3) The PO shall issue a payment advice in FORM GST RFD-05 for the sanctioned
amount and the same shall be credited to the bank account specified in the
application for refund.
159
(1) On examination of the application, if any amount is found refundable u/s 54(5), the
PO shall issue a sanction order in FORM GST RFD-06 mentioning the following
details –
Total amount refundable
(-) Any amount provisionally refunded u/s 54(6)
(-) Any amount adjusted against o/s demand
Balance amount refundable
However. in case the amount of refund is completely adjusted against any o/s
demand, an order giving details of such adjustments shall be issued in FORM GST
RFD-07 (Part A)
(2) Where the PO/Commissioner opines that the refundable amount is liable to be
withheld u/s 54(10)/ (11), he shall pass an order in FORM GST RFD-07 (Part B)
informing him the reasons for the same.
(3) In case the PO opines that the whole or any part of the refund claimed is not
admissible, he shall issue a SCN in FORM GST RFD-08, to which the applicant shall
be required to respond within 15 days in FORM GST RFD-09.
If the PO is satisfied with the response, a sanction order shall be issued in FORM GST
RFD-06, and if not, the whole or part of the claim shall be rejected after giving the
applicant an opportunity of being heard.
(4) Where any refundable amount is found payable u/s 54(8) in terms of sub-rule (1)/(2)
above, the PO shall issue an order in FORM GST RFD-06 a payment advice in FORM
GST RFD-05 for the sanctioned amount and the same shall be credited to the bank
account specified in the application for refund.
(5) In case the aforementioned amount is found not payable to the applicant, the PO
shall issue sanction order in FORM GST RFD-06 and an advice in FORM GST RFD-05
to credit the said amount in CWF.
(1) In case any deficiency is communicated u/r 90(3), the amount earlier debited u/r
89(3) shall be re-credited to the ECrL.
(2) In case any refund claimed is fully or partly rejected FINALLY u/r 92, the amount so
debited shall be re-credited to the ECrL by an order made in FORM GST PMT-03.
Subject to prescribed conditions,

the following classes of persons, when notified,
shall be entitled to claim refund of taxes paid
on notified supplies received by them:
o Any specialized agency of the UN
o Any multilateral financial institution and organization under UN(PI)A, 1947
o Consulate or Embassy of foreign countries
o Any other person notified by the Commissioner
• Such person may make an application for refund
within 6 months
160
from the last day of the quarter

in which such supply was received

CSD under the MOD, GOI has been specified as a person who shall be entitled to claim a
refund of 50% of the applicable GST paid by it on all inward supplies of goods received by
it for the purposes of subsequent supply of such goods to the Unit Run Canteens of the CSD
or to the authorized customers of the CSD.

The Govt. has notified the following classes of persons for the purposes of Section 55 –
(i) UN or a declared international organization under the UN(PI)A, 1947, and
(ii) Embassies and their officers
subject to the following conditions –
(a) UN or a specified international organization shall be entitled to claim refund of GST
paid on inward supplies subject to a certificate from the UN/organization stating
that the supplies have been used for official purposes.
(b) Embassies and their officers shall be entitled to claim refund of GST paid on inward
supplies subject to –
(i) that such person is entitled to refund of GST as stipulated in the certificate
issued by the Protocol Division of the MEA based on the principle of
reciprocity,
(ii) that in case of services, the head of the Embassy or any other officer
authorised by him shall furnish an undertaking in original stating that the
supply received is for official purpose or personal use of the officer or his/her
family members.
(iii) that in case of goods, the concerned embassy will produce a certificate that
–
I. the goods have been used by the embassy
II. the goods will not be supplied further or otherwise disposed of
before 3 yrs. from its receipt, and
III. in the event of non-compliance of (I), the embassy will pay back the
refund amount
(iv) in case the Protocol Division, MEA, GOI, withdraws the certificate granted, it
shall communicate such withdrawal to the embassy,
(v) the refund of GST facility shall not be available from the date of withdrawal
of such certificate.
(1) Every notified UIN holder claiming refund of the taxes paid on his inward supplies,
shall furnish the details of such supplies in FORM GSTR-11 along with application for
such refund claim.
(2) Every person who has been issued a UIN for purposes other than refund shall also
furnish the details of inward supplies of taxable goods/services as may be required
by the PO in FORM GSTR-11
161
(1) Every notified UIN holder claiming refund of the taxes paid on his inward supplies,
shall apply for refund in FORM GST RFD-10 once in every quarter, along with FORM
GSTR-11.
(2) An acknowledgement for receipt of the application shall be issued in FORM GST
RFD-02
(3) The refund shall be available if –

(a) the inward supply has been received from a registered person against a tax
invoice and the price of supply, excluding any tax, covered under a single
invoice exceeds ₹5,000,
(b) name and GSTIN/UIN of the applicant is mentioned in the tax invoice, and
(c) other notified restrictions and conditions are satisfied.
(4) Rule 92 shall apply mutatis mutandis
(5) In case any conflict between any express provision in a treaty/international

agreement and the provisions of this Chapter arises, the treaty/agreement shall
prevail.
(1) If any tax ordered for refund is not paid within 60 days
from the date of receipt of application
an interest @ 6% shall be payable [Notfn. No.: 13/2017 – CT and 06/2017 - IT]
from the date immediately after the expiry of the 60 days
till the date of refund.
• However, in case such refund arises
from a final order passed by any adjudicating authority
or an appellate authority/tribunal or court
the rate of interest shall be 9% [Notfn. No.: 13/2017 – CT and 06/2017 - IT]
• In case such order is against
an order passed by the PO u/s 54(5),
the former shall be deemed to be an order passed under the said section.
Where any interest is due and payable to the applicant, the PO shall make an order and issue
a payment advice in FORM GST RFD-05 for the sanctioned amount and the same shall be
credited to the bank account specified in the application for refund.
This form shall specify –
• the amount of delayed refund, and
• the period of delay for which interest is payable
162
The Government shall constitute a CWF,

and the following amounts shall be credited to the Fund
in the prescribed manner –
(a) The amount referred in Section 54(5)
(b) Any income from investment of the amount credited to the Fund
(c) Other money received
(1) All sums credited to the Fund

shall be utilized by the Government for welfare of consumers
(2) The Government or the authority specified by it

shall maintain proper accounts and relevant records
and prepare an annual statement of accounts
in consultation with the CAG of India.
163
(1) All credits to the CWF shall be made u/r 92(5)
(2) Any credited amount ordered as payable to any claimant by orders of the
PO/AA/AT/court shall be paid from the CWF
(3) Any utilization of the CWF u/s 58(1), shall be made by debiting the Fund and crediting
the account to which amount is transferred for utilization
(4) The Govt. shall constitute a Standing Committee with a Chairman, a Vice-Chairman,
a Member Secretary and other members to recommend for proper utilization of the
CWF for welfare of consumers.
(5) The Committee shall meet at least once in 3 months.
(6) Any agency/organization engaged in consumer welfare activities for 3 yrs. registered
under any law,
including village/mandal/samiti level consumer co-operatives especially Women, SC
and ST, or
any industry recommended by the BIS to be engaged for 5 yrs. in viable research
activity contributing in formulation of standard mark of mass consumption products,
or
the CG/SG
may apply for a grant from CWF.
A consumer may also apply for reimbursement of legal expenses incurred by him as
a complainant in a consumer dispute, after its final adjudication.
(7) All such applications shall be made by the applicant to the Member Secretary. The
Committee shall consider an application only after the Member Secretary inquires
into the same in detail and recommend for consideration
(8) The Committee shall have powers –

(a) to require any applicant to produce books, accounts, documents, instruments
or commodities that may be necessary for proper evaluation of the
application
(b) to require any applicant to allow any authorised officer of govt. to enter and
inspect the premises where consumer welfare activities are claimed to be
carried on
(c) to get the accounts of the applicant audited in order to ensure proper
utilization of the grant.
(d) in case of any default or suppression of information, to require any applicant
to refund the sanctioned grant in lump-sum and get prosecuted under the
CGSTA, 2017
(e) to recover any sum due from any applicant as per the CGSTA, 2017
(f) to require any applicant to submit a periodical report indicating proper
utilization of the grant
(g) to reject any application due to factual inconsistency or inaccuracy in
material particulars
(h) to recommend min, grant to be given to an applicant after considering his
financial status, importance of the concerned activity and ensuring the proper
utilization of the grant
(i) to identify and recommend beneficial and safe sectors for the purpose of
investments out of the CWF
164
(j) to relax the conditions required to be fulfilled by an applicant during the

period of engagement in consumer welfare activities.
(k) to make guidelines for the management, administration and audit of the CWF.
(9) The CCPC and the BIS shall recommend the GSTC the broad guidelines for
considering the projects for the purpose of incurring expenditure from the CWF
• Adjudicating authority [Sec. 2(4) of CGSTA]: means any authority, appointed or

authorised to pass any order or decision under this Act, but does not include the
Central Board of Excise and Customs, the Revisional Authority, the Authority for
Advance Ruling, the Appellate Authority for Advance Ruling, the Appellate Authority
and the Appellate Tribunal.
• Appellate tribunal [Sec. 2(9) of CGSTA]: means the Goods and Services Tax Appellate
Tribunal constituted under section 109.
• Audit [Sec. 2(13) of CGSTA]: means the examination of records, returns and other
documents maintained or furnished by the registered person under this Act or the
rules made thereunder or under any other law for the time being in force to verify the
correctness of turnover declared, taxes paid, refund claimed and input tax credit
availed, and to assess his compliance with the provisions of this Act or the rules
made thereunder.
• Drawback [Sec. 2(42) of CGSTA]: in relation to any goods manufactured in India and
exported, means the rebate of duty, tax or cess chargeable on any imported inputs
or on any domestic inputs or input services used in the manufacture of such goods.
• Revisional authority [Sec. 2(99) of CGSTA]: means an authority appointed or authorised for
revision of decision or orders as referred to in section 108.
165
CGSTA, 2017
• Section 51: Tax deduction at source
• Section 52: Collection of tax at source
(1) Overruling anything to the contrary in the CGSTA, the Government may mandate –
(a) A CG/SG department/establishment,
(b) A local authority,
(c) A Government agency, or
(d) Persons/category of persons notified by the Government
to deduct tax at source @ 1% from the payment to a supplier
of taxable supplies if the total value of such contractual supply (excluding GST and CC)
exceeds ₹2,50,000.
However, no TDS in the following case:
Notfn. No.: 33/2017 – CT

The Government appointed 18 September, 2017 as the date on which Section 51(1) shall
come into force and notified the following persons under the said section –
(a) an authority/board/any other body –
(i) set up by an Act of Parliament/State Legislature, or
(ii) established by any Govt.
with 51% or more participation by way of equity or control, to carry out any function
(b) Society established by CG/SG/LA under SRA, 1860
(c) PSUs
The Government shall notify a date later from when the aforementioned persons shall
deduct tax.
(2) The tax deducted shall be paid to The Government
Month-end
10
166
(3) The deductor shall furnish a certificate to the deductee

mentioning the following:
o Contract value
o Rate of deduction
o Amount deducted
o Amount paid to the government
o Other prescribed particulars
(4) If any deductor fails to furnish such a certificate

within 5 days of crediting the tax to the Government
the deductor shall be liable to pay late fee of
₹100 per day from the expiry of aforementioned 5 days
till the actual payment date
subject to a maximum limit of ₹5,000.
(5) The deductee shall claim credit of the TDS

(furnished by the deductor in his periodic return)
in his e-CaL in the prescribed manner.
(1) Every tax deductor shall furnish a return in FORM GSTR-7 within 10 days after the end of
the tax period.
(2) The details furnished by the deductor shall be made available to the deductee suppliers in
FORM GSTR-2A (Part C) and FORM GSTR-4A after the due date of filing FORM GSTR-7
(3) The certificate referred to in section 51(3) shall be made available to the deductee in
FORM GSTR-7A on the basis of FORM GSTR-7 furnished.
(6) If the deductor fails to pay to the Government the TDS

he shall also pay interest in accordance with Section 50(1)
(7) The default amount shall be determined

in accordance with the provisions of demand and recovery
(8) The refund to the deductor or deductee

on account of excess or erroneous deduction
shall be dealt with in accordance with Section 54.
However, no such refund shall be granted to the deductor
if the deducted amount has been credited to e-CaL of deductee
(1) Overruling anything to the contrary in the CGSTA,

every e-commerce operator, other than an agent,
shall collect an amount of tax @ 1% of the net value of
taxable supplies made through it by other suppliers
where the consideration w.r.t. such supplies
is to be collected by the operator.
167
“Net Value of Taxable Supplies” = Aggregate value of taxable supplies, except the ones
mentioned in Sec. 9(5), made during any month by all registered persons through the
operator (-) aggregate value of taxable supplies returned to the suppliers during that
month.
(2) The power to collect this tax amount

shall be without adversely affecting
any other mode of recovery from the operator.
(3) The tax collected shall be paid to The Government
Month-end
10
(4) Every operator who collects the tax

shall furnish a statement
containing the details of outward supplies effected through it,
including the supplies returned through it,
and the tax amount collected
within 10 days after the end of such month.
(5) Every operator who collects the tax

shall furnish an annual statement
containing aforementioned details
by 31 December of next financial year.
(1) Every tax collecting operator shall furnish a statement in FORM GSTR-8 containing
details of
o supplies effected through it and
o the amount of tax collected
(2) These details shall be made available to the collectee suppliers in Part C of FORM
GSTR-2A after the due date of filing FORM GSTR-8
The annual statement u/s 52(5) shall be furnished in FORM GSTR-9B
(6) If any operator discovers any omission or incorrect particulars

after furnishing the monthly statement
other than as a result of scrutiny, audit, inspection or enforcement activity by the tax
authorities,
he shall rectify the same in the month during which
such omission/incorrect particulars are noticed
subject to payment of interest as per Sec. 50(1)
However, no such rectification shall be allowed
after the due date for furnishing return of September of the next FY
168
or the actual date of furnishing annual return of the relevant year

7) The supplier who has supplied through the operator

shall claim credit of the TCS
(furnished by the operator in his periodic return)
in his e-CaL in the prescribed manner.
8) The details of supplies furnished by every operator

under sub-section (4)
shall be matched with the corresponding details of outward supplies furnished by the
concerned supplier
in the prescribed manner and within prescribed time
9) In case of mismatch, the discrepancy shall be communicated to both persons

within prescribed time.
10) The amount of discrepancy communicated

and which is not rectified by either of them in the month of communication, shall be
added to the OTL of the said supplier
in his return for the month succeeding the month in which discrepancy is
communicated,
where the value of outward supplies furnished by the operator > the value of outward
supplies furnished by the supplier.
11) The concerned supplier shall pay the tax payable

along with interest as per Sec. 50(1) on the added amount
from the due date till the date of payment.
The following details furnished in FORM GSTR-8, relating to the supplies made through an e-
commerce operator, shall be matched with the corresponding details declared by the
supplier in FORM GSTR-1:
(a) State of place of supply, and
(b) Net taxable value
In case the time limit for FORM GSTR-1 gets extended, the date of matching shall also be
extended accordingly.
The date of matching may be extended by the Commissioner as well.
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(1) Any discrepancy in the details so furnished shall be communicated to

o supplier in FORM GST MIS-3, and
o operator in FORM GST MIS-4
on or before the last day of the month of matching.
(2) The supplier may make suitable rectifications in FORM GSTR-1 pertaining to the
month of communication.
(3) The operator may make suitable rectifications in FORM GSTR-8 pertaining to the
month of communication.
(12) Any authority ranking DC and above may serve a notice

either before or during any proceeding
requiring the operator to furnish details relating to –
(a) Supplies effected through such operator during any period, or
(b) Stock of goods held by the suppliers in warehouses/godowns managed by such
operator and declared as additional place of business by the suppliers
(13) Every such operator shall furnish the required information

within 15 working days of the date of service of such notice
(14) Any person who fails to furnish such information

will be liable to a penalty which may extend to ₹25,000.
without affecting the action that may be taken u/s 122.
(1) Any persons required to deduct/collect tax at source shall submit a registration
application in FORM GST REG-07
(2) After due verification the PO may grant a RC in FORM GST REG-06 within 3 working
days from the date of submission of application
(3) Where upon enquiry or resulting from any proceeding, the PO is satisfied that the
said person is no longer liable to do so, he may cancel the registration and
communicate the same in FORM GST REG-08 following the cancellation procedure
in Rule 22
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CGSTA, 2017
• Section 35: Accounts and other records
• Section 36: Period of retention of accounts
• Section 65: Audit by tax authorities
• Section 66: Special audit

shall keep the following accounts
at his principal place of business –
(a) Production/manufacture of goods
(b) Inward and Outward supplies
(c) Stock of Goods
(d) ITC availed
(e) Output tax payable and paid
(f) Other prescribed particulars
• However, in case more than one place of business is specified in the RC, the accounts
relating to each such place shall be kept at such places of business.
• Also, the registered person may maintain such accounts
in electronic form in the prescribed manner
(2) Every owner/operator of

o warehouse
o godown
o any other place used for storage of goods
and every transporter
irrespective of their registration status
shall maintain records of
consignor, consignee and other relevant details of the goods
(3) The Commissioner may notify

a class of taxable persons
to maintain additional accounts or documents
for specified purposes.
(4) Where the Commissioner considers

that any class of taxable persons cannot maintain books
as per the provisions of this section
he may permit them to maintain books
171

whose turnover exceeds the prescribed limit during a FY
shall get his accounts audited by CA/CMA
and shall submit a copy of the audited annual accounts
reconciliation statement u/s 44(2) and
other prescribed documents
in prescribed form.
(6) Subject to the provisions of Section 17(5)(h),

where the registered person fails to maintain accounts u/ss (1),
the PO shall determine the tax payable
on the goods/services not accounted for
as if such goods/services had been supplied
and the provisions of demand and recovery shall apply mutatis mutandis for such tax
determination.
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(1) In addition to Sec. 35(1), every registered person shall keep and maintain a true and
correct account along with relevant documents including invoices, BoS, delivery
challans, cr. notes, dr. notes, receipt vouchers, payment vouchers and refund
vouchers of
o the goods/services imported/exported, or
o supplies attracting RCM
(2) Every registered person other than a composition supplier shall maintain the
accounts of stock in respect of goods received and supplied including raw materials,
finished goods and scrap, containing the particulars of
opening balance, receipt, supply, goods lost, stolen, destroyed, written off or
disposed of as gift/free sample and the balance of stock
(3) Every registered person shall maintain a separate account of advanced received,
paid and adjusted.
(4) Every registered person other than a composition supplier shall maintain an account
of
o tax payable
o tax collected and paid
o input tax
o ITC claimed
o register of tax invoice, cr. notes, dr. notes, delivery challans issued/received
during any tax period.
(5) Every registered person shall keep the particulars of –

(a) names and addresses of suppliers from whom taxable supplies have been
received
(b) names and addresses of recipients to whom he has made supplies
(c) address of the premises where goods are stored by him along with the
details of the stock kept there, including storage during transit.
(6) If any taxable goods are found stored at any place other than the premises
mentioned above without the cover of any valid documents, the PO shall treat these
goods as supplied.
(7) Every registered person shall keep the account books, including e-records, at
principal place of business and additional place(s) of business.
(8) Any account entry shall not be erased/overwritten and all non-clerical incorrections
shall be scored out and corrected under attestation. In case of e-records, a log of
every entry edited and deleted shall be maintained.
(9) Each volume of manual account books shall be serially numbered.
(10) In case any account books are found at any premises other than place(s) of business
as per RC, they shall be presumed to be maintained by the said registered person,
unless proven otherwise.
(11) Every agent shall maintain accounts containing the –

(a) particulars of authorisation received from each principal to receive/supply
goods/services,
(b) particulars including description, value and quantity of goods/services
received on behalf of every principal,
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(c) particulars including description, value and quantity of goods/services

supplied on behalf of every principal,
(d) details of accounts furnished to every principal, and
(e) tax paid on receipt/supply of such goods/services
(12) Every registered manufacturer shall maintain monthly production accounts showing
quantitative details of the input, output and waste/by-products
(13) Every registered service supplier shall maintain the accounts with quantitative details
of inputs used and services supplied.
(14) Every registered works contract service provider shall keep separate accounts
showing –
(a) the names and addresses of the persons on whose behalf works contract is
executed
(b) description, value and quantity of inputs received
(c) description, value and quantity of inputs utilized
(d) the details of payment received for each works contract
(e) the names and addresses of input suppliers
(15) The aforementioned accounts may be maintained in electronic form and shall be
authenticated with DSC
(16) Accounts along with all the prescribed documents shall be preserved for the period
as mentioned in Sec. 36 and
o in case of manual maintenance – shall be kept at every related place of
business
o in case of digital maintenance – shall be accessible at every related place of
business
(17) Any carrier or c&f agent shall maintain true and correct records of goods handled by
him on behalf of a registered person and produce the same when required by the
PO.
(18) Every registered person shall produce the accounts books maintained under any law,
when demanded.
(1) Proper electronic back-up of records shall be maintained in such manner that it can
be restored within reasonable period of time after accidental destruction of such
records.
(2) The registered person maintaining e-records shall produce a duly authenticated copy
of the same in hard copy or in any electronically readable format, when demanded.
(3) When required, the registered person shall provide the details, passwords and any
other relevant information for access to such electronic files along with a printed
copy of such files.
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(1) Every un-registered person required to maintain accounts u/s 35(2) shall submit the
details regarding his business in FORM GST ENR-01. Upon validation of such details a
UEN shall be generated and communicated to him.
(2) The person so enrolled in any other state/UT shall be deemed to be enrolled in the
state/UT as well.
(3) Every such person shall amend the details furnished in FORM GST ENR-01 if
required.
(4) Subject to Rule 56 –

(a) Any person engaged in transporting goods shall maintain records of goods
transported, delivered and stored in transit by him along with GSTIN of the
registered consignor and consignee for each of the branches.
(b) Every owner/operator of a warehouse/godown shall maintain accounts
books w.r.t. the period for which particular goods remain in the warehouse,
including the particulars relating to dispatch, movement, receipt and disposal
of such goods.
(5) The owner/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/inspection by the PO on demand.
Every registered person required to maintain accounts as per 35

shall retain them for 72 months
from the due date of furnishing annual return
for the year pertaining to such accounts and records.
• However, in case the registered person is involved in

an appeal, revision or any other proceedings
before an Appellate Authority, Revisional Authority or AT,
whether filed by him or the Commissioner,
OR
he is under investigation for any offence,
the books pertaining to such proceedings shall be maintained,
for a period of 1 year after the final disposal of appeal etc.
or 72 months, whichever is later.
(1) The Commissioner or any officer authorized by him

may undertake audit of any registered person
for prescribed period, at prescribed frequency
and in prescribed manner
by way of general/specific order.
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(2) Such officer may conduct audit

at the place of business of the registered person
or in his office.
(3) The registered person shall be informed about audit

at least 15 days in advance
(4) The audit shall be completed within 3 months

• The Commissioner may extend this period
by a further period not exceeding 6 months
for reasons recorded in writing.
(5) During audit, the authorised officer may

require the registered person –
(i) to afford him the necessary facility to verify the books as required
(ii) to furnish such information as he may require and render assistance for timely
completion of the audit.
(6) On conclusion of audit,

the PO shall inform the auditee
about the findings, his rights and obligations and the reasons for such findings
within 30 days.
(7) Where the audit conducted u/ss (1) results in detection of

tax not paid, short paid or erroneously refunded, or
ITC wrongly availed or utilised
the PO may initiate action under the provisions of
demand and recovery.
1) The period of audit to be conducted u/s 65(1) shall be a FY or its multiples.
2) The PO shall issue a notice u/s 65(3) in FORM GST ADT-01
3) The PO authorized to conduct audit shall verify

o the documents on the basis of which account books are maintained and
returns are furnished.
o the correctness of the turnover
o exemptions and deductions claimed
o the rate of tax applied on supplies
o the ITC availed and utilised
o refund claimed
o other relevant issues
(4) The PO may inform the registered person of any discrepancy noticed during audit and the
said person may file his reply. After considering the reply furnished, the PO shall finalise
the findings.
(5) The PO shall inform the findings of audit to the registered person u/s 65(6) in FORM GST
ADT-02
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(1) If at any stage of scrutiny, inquiry, investigation or any other proceedings,

any officer ranking AC and above,
opines that the value declared is not correct or
the credit availed is beyond normal limits,
he may take the prior approval of the Commissioner and
direct such registered person
to get his records and books of accounts audited
by a CA/CMA nominated by the Commissioner
(2) The CA/CMA shall submit an audit report

duly certified and signed by him
to the said AC within 90 days,
mentioning therein other specified particulars.
• However, for any material and sufficient reason,
the AC may extend this period by a further period of 90 days
on an application made by the CA/CMA/registered person.
(3) The provisions of sub-section (1) shall have effect

irrespective of the fact that the accounts of the assessee
has been audited under any other provision
of this Act or any other law in force.
(4) The auditee shall be given an opportunity of being heard

in respect of any material gathered on the basis of such audit
which is proposed to be used against him in any proceedings
under this Act.
(5) The expenses of examination and audit

including the remuneration of the CA/CMA
shall be determined and paid by the Commissioner
and such determination shall be final.
(6) Where the audit conducted u/ss (1) results in detection of

tax not paid, short paid or erroneously refunded, or
ITC wrongly availed or utilised
the PO may initiate action under the provisions of
demand and recovery.
(1) Where special audit is required to be conducted u/s 66, the PO shall issue a direction
to the registered person in FORM GST ADT-03 to get his records audited by a
CA/CMA specified in the said form.
(2) On conclusion of the special audit, the registered person shall be informed of the
findings of the special audit in FORM GST ADT-04.
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CGSTA, 2017
• Section 59: Self-assessment
• Section 60: Provisional assessment
• Section 61: Scrutiny of Returns
• Section 62: Assessment of non-filers of returns
• Section 63: Assessment of unregistered persons
• Section 64: Summary assessment in certain special cases
Every registered person

shall self-assess the taxes payable under this Act
and furnish a return for each tax period as specified u/s 39.
(1) Where the taxable person is unable to determine

o the value of goods/services, or
o the rate of tax applicable
he may request the PO in writing
giving reasons for payment of tax on provisional basis
and the PO shall pass an order within 90 days
from the date of receipt of such request
allowing payment of tax on provisional basis
at such rate or on such value
as specified.
(2) The payment of tax on provisional basis may be allowed

if the taxable person executes a bond in the prescribed form
and with such surety and security as the PO deems fit
binding the taxable person for payment of difference between
the tax finally assessed and the tax assessed provisionally
(3) The PO shall pass the final assessment order

within 6 months from the date of communication of order u/ss (1)
after obtaining the information as may be required for the same.
However, this period may be extended
by a further period not exceeding
o 6 months by the JC or AC
o 4 years by the Commissioner
for sufficient reasons being recorded in writing.
(4) The registered person shall be liable to pay interest

on any tax payable but not paid by the due date u/s 39(7)
178
on the supply of goods/services under provisional assessment

at the rate specified u/s 50(1)
from the first day after the due date of payment
till the date of actual payment
whether such amount is paid before or after the issuance of final assessment order.
(5) Where the registered person is entitled to a refund

as a result of the final assessment order
an interest shall be paid on such refund u/s 56
subject to the provisions of section 54(8).
(1) Every registered person requesting for payment of tax on a provisional basis u/s
60(1) shall furnish an application in FORM GST ASMT-01 along with the supporting
documents.
(2) On receipt of application, the PO may issue a notice in FORM GST ASMT-02 requiring
the registered person to furnish additional information in support of his request in
FORM GST ASMT-03.
(3) The PO shall issue a permission order in FORM GST ASMT-04 indicating the value or
the rate based on which the assessment is to be allowed on a provisional basis and
the amount for which the bond is to be executed and security, to the extent of 25%
of the bond amount, to be furnished.
(4) The bond shall be executed u/s 60(2) in FORM GST ASMT-05 along with a security in
the form of a bank guarantee for the aforementioned amount.
Bond under SGSTA/IGSTA shall be deemed to be under CGSTA.
(5) The PO shall issue a notice in FORM GST ASMT-06 for information required to
finalize the assessment u/s 60(3) and issue a final AO in FORM GST ASMT-07
specifying the amount payable/refundable.
(6) After issue of final AO, the applicant may apply in FORM GST ASMT-08 for the
release of the security furnished earlier.
(7) After ensuring that the applicant has paid the required amount, the PO shall release
the security and issue an order in FORM GST ASMT-09 within 7 working days from
the date of application
(1) The PO may scrutinize the return furnished by the registered person to verify the
correctness of the return
and inform him of the discrepancies noticed and seek explanation.
(2) In case the explanation is found acceptable,
the registered person shall be informed accordingly
and no further action shall be taken.
(3) In case no satisfactory explanation is furnished
within 30 days of information, or as extended
OR
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where even after accepting the discrepancy,

the registered person fails to take corrective actions
in his return for the month of acceptance
the PO may initiate appropriate action u/s 65, 66, 67
or determine tax and other dues u/s 73, 74
(1) Where any return is selected for scrutiny, the PO shall scrutinize the same u/s 61 and
in case of any discrepancy issue a notice to the registered person in FORM GST
ASMT-10 informing him of such discrepancy. The said person shall be required to
reply to such notice within the permitted period, which shall not exceed 30 days.
The PO shall also quantify the amount of tax, interest etc. in relation to such
discrepancy, wherever possible.
(2) The registered person may accept the discrepancy mentioned in the notice and pay
the tax, interest etc. and inform the same, or
furnish an explanation for the discrepancy to the PO
in FORM GST ASMT-11
(3) Where the explanation furnished or the information submitted is found acceptable,
the PO shall inform the registered person in FORM GST ASMT-12.
(1) Overruling anything to the contrary u/s 73, 74.

where a registered person fails to file the periodic or final return
despite receiving a notice u/s 46
the PO may assess the tax liability of such person
to the best of his judgement
taking into account all relevant material available/collected
and issue an assessment order within a period of 5 years
from the due date of furnishing annual return
pertaining to the FY to which the tax not paid relates.
(2) Where the registered person furnishes a valid return

within 30 days of the service of order u/ss (1)
the said assessment order shall be deemed to have been withdrawn
but the liability for payment of interest u/s 50(1)
or for payment of late fee u/s 47 shall continue.
(1) The AO made u/s 62(1) shall be issued in FORM GST ASMT-13
Overruling anything to the contrary contained in Sec. 73 or 74

where a taxable person fails to obtain registration despite being liable to do so or
his registration has been cancelled but he was liable to pay tax,
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the PO may assess the tax liability of such person to the best of his judgment for the relevant
tax periods
and issue an assessment order within 5 years
from the due date of furnishing annual return for the FY to which the tax not paid pertains
after giving the person an opportunity of being heard.
(2) The PO shall issue a notice u/s 63 in FORM GST ASMT-14 containing the grounds on
which the assessment is proposed to be made on best judgement basis and after
allowing 15 days to the taxable person to furnish a reply, he shall pass an order in
FORM GST ASMT-15
(1) With the prior permission of AC/JC

the PO may assess the tax liability of a person
regarding whom any evidence has come to his notice
and issue an assessment order
if he has sufficient grounds to believe that any delay in doing so
may adversely affect the interest of revenue.
• In case of supply of goods,
if the taxable person to whom the liability pertains is not ascertainable,
the person in charge of the such goods
shall be deemed to be the taxable person liable to be assessed.
(3) The summary AO u/s 64(1) shall be issued in FORM GST ASMT-16
(2) On receiving an application from the taxable person

within 30 days of issue of the order u/ss (1)
or on his own motion
if the AC/JC considers that such order is erroneous
he may withdraw the same
and the procedure of demand and recovery shall follow.
(4) The application u/s 64(2) may be filed in FORM GST ASMT-17.
(5) The withdrawal or application rejection order u/s 64(2) shall be issued in FORM GST
ASMT-18.
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CGSTA, 2017
• Section 73: For any reason other than fraud or any wilful-misstatement or
suppression of facts.
• Section 74: By reason of fraud or any wilful-misstatement or suppression of facts.
• Section 75: General provisions relating to determination of tax
• Section 76: Tax collected but not paid to Government
• Section 77: Tax wrongfully collected and paid to CG/SG
• Section 78: Initiation of Recovery Proceedings
• Section 79: Recovery of tax
• Section 80: Payment of tax and other amount in instalments
• Section 81: Transfer of property to be void in certain cases
• Section 82: Tax to be first charge on property
• Section 83: Provisional attachment to protect revenue in certain cases
• Section 84: Continuation and validation of certain recovery proceedings
182
•
• •
•
•
•
Relevant Date
For (A), (B), (D) and (E) –
The due date for
furnishing of annual return
for the FY to which the Tax +
Tax + default relates to Interest + 15%
Interest + For (C) – of Penalty (=Tax)
3 years Penalty The date of refund
5 years
30 days Show Cause Notice Tax + 30 days

The PO may issue statements Interest + 25%
3 months for same grounds, in lieu of of Penalty (=Tax) 6 months
SCN, for other periods
Tax +
Order Interest + 50%
Tax + 30 days
Interest + of Penalty (=Tax)
Penalty Higher of
10% of tax Tax +
OR Interest +
₹ 10,000
Penalty (=Tax)
(1) Any period of stay ordered by a court or AT

shall be excluded in computing the periods u/s 73 or 74
(2) Where any AA/AT/court concludes that charges of fraud do not stand, the notice u/s
74(1) shall be deemed to have been issued u/s 73(1) and dealt with accordingly.
(3) In case order is issued in pursuance with AA/AT/court direction

it shall be issued within 2 years from communication date.
(4) An opportunity of hearing shall be granted where a request is received in writing from
the taxable person
(5) On sufficient cause being shown, the hearing may be adjourned for not more than 3
times during the proceedings.
(6) All the relevant facts and the basis of decision of the PO shall be mentioned in the
order.
183
(7) The amount demanded in the order shall not exceed the amount specified in the notice
or on any other ground.
(8) Where the AA/AT/court modifies the amount of tax determined by the PO, the interest
and penalty shall stand modified accordingly.
(9) Interest shall be payable whether specified in the order or not
(10) The adjudication proceedings shall be deemed to be concluded if no order is issued

within the specified time limit.
(11) Where an appeal against a decision, prejudicial to the interest of revenue in some other
proceedings, of any lower adjudicating authority is pending before a higher adjudicating
authority, the period between the 2 decisions (that of lower and higher) shall be
excluded in computing the period for order u/s 73 or 74
(12) Overruling both the sections, any unpaid amount of self-assessed tax shall be
recovered as per Sec. 79
(13) Where any penalty is imposed u/s 73 or 74, no penalty for the same act or omission
shall be imposed on the same person under any other provision.
(1) Overruling anything and everything to the contrary,

every person, who has collected any amount as GST from any other person, shall
forthwith pay this amount to the Government, irrespective of whether such supply was
taxable or not.
(2) In case it is not done so, the PO may serve such person with a SCN specifying the tax
amount and the penalty equivalent to that amount.
(3) If any representation is made by the person, the PO shall consider it and then
determine the amount due from such person. Thereupon, such person shall pay the
amount so determined.
(4) In addition to the amount as per (1) or (3), the person shall also be liable to pay interest
@ specified in Section 50 from the date of collection to the date of payment.
(5) On a request being received in writing, an opportunity of hearing shall be granted.
(6) The PO shall issue an order within 1 year of the issue of notice.
(7) In case issuance of such order is stayed by a court/AT, the period of stay shall be
excluded while computing the period of 1 year
(8) In his order, the PO shall duly mention the relevant facts and basis of his decision.
(9) The amount paid under (1) or (3) shall be adjusted against the tax payable, if any, by the
person in relation to supplies referred in (1)
184
(10) Where any surplus is left after such adjustment, it shall either be credited to the CWF
or refunded to the person who has borne the incidence of such amount.
(11) The person who has borne the incidence of the amount, may apply for refund as per
the provisions of Section 54.
(1) The PO shall serve, along with the –

(a) notice u/s 73(1)/74(1)/76(2) – a summary thereof in FORM GST DRC-01
(b) statement u/s 73(3)/74(3) – a summary thereof in FORM GST DRC-02
specifying the details of the amount payable.
(2) In case the person chargeable with tax makes payment before service of
notice/statement as per Section 73(5)/74(5), he shall inform the PO in FORM GST
DRC-03 and the PO shall issue an acknowledgement in FORM GST DRC-04
(3) In case the person chargeable with tax makes payment u/s 73(8)/74(8) within 30
days of the service of notice, he shall intimate the PO in FORM GST DRC-03 and the
PO shall issue an order in FORM GST DRC-05 concluding the proceedings.
(4) The representation referred in Section 73(9)/74(9)/76(3) shall be in FORM GST DRC-
06
(5) A summary of the order issued u/s 73(9)/74(9)/76(3) shall be uploaded in FORM GST
DRC-07 specifying the amount of tax, interest and penalty payable.
(6) This order shall be treated as the notice for recovery.
(7) Any rectification of the order u/s 161, shall be made by the PO in FORM GST DRC-08
Similar provision has been discussed in Section 19 of the IGSTA, 2017 (please refer
)
A taxable person shall pay any amount payable as a result of any order issued under this Act,
within 3 months of service of such order.
However, this time limit may be reduced at the discretion of the PO for reasons to be recorded
in writing.
(1) One or more of the following modes may be adopted to recover any amount which is
payable to the Government under this Act but not paid:
(a) The PO may himself or ask any other specified officer to deduct the amount
payable from any owing to such defaulting person.
185
(b) The PO may himself or ask any other specified officer to recover the amount
payable by detaining and selling any goods belonging to such person which are
under the control of such officer.
(c)
(i) The PO may issue notice to any other person who has to pay to or holds
money on account of such defaulter, requiring him to pay to the
Government money, sufficient to pay the defaulter’s dues, within the
time specified in the notice or when such person’s liability arises. In case
the money is equal to or less than the defaulter’s dues, the entire
amount shall be required to be paid to the Government.
(ii) Every person to whom such notice is issued, shall be bound to comply
with the same, and where such person is a bank, post officer or insurer,
it shall not be necessary to produce any deposit receipt, pass book,
policy or any such document for any entry, endorsement etc. despite
that being their regular practice, rule or requirement.
(iii) In case the person to whom notice is issued fails to comply with the
same, he shall be deemed to be a defaulter in respect of the specified
amount and all the consequences of this Act shall follow.
(iv) The officer issuing such notice may amend or revoke the notice or
extend the time limit for payment any time.
(v) Any person making payment in compliance with such notice shall be
deemed to have paid under the authority of the defaulter and such
payment credited to the Government shall be deemed to be good and
sufficient discharge of his liability to the extent of the receipt.
(vi) Any person discharging any liability of the defaulter after service of such
notice, shall be personally liable to the extent of liability discharged or to
the extent of the liability of the defaulter for tax, interest and penalty,
whichever is less.
(vii) Where the person to whom notice is issued proves to the satisfaction of
the PO that he does not have to pay any due to the defaulter or he does
not hold any money on account of the defaulter, the provisions of this
clause shall not be applied on him.
(d) In accordance with the rules, the PO may distrain any movable or immovable
property belonging to or under the control of the defaulter and detain the same
until the amount payable is paid.
In case any part of the payable amount, or the cost of distress or keeping the
property remains unpaid for 30 days after the distraint, the officer may sale the
property and the proceeds may be used to satisfy the payable amount and the
costs including cost of sale remaining unpaid and return any surplus to the
defaulter.
(e) The PO may send a signed certificate to the Collector of the district in which
such person owns any property or resides or carries on his business, or to any
officer authorized by the Government, and such officer shall proceed to recover
the specified amount from such person as an arrear of land revenue.
(f) Overruling the CrPC, the PO may apply to the appropriate Magistrate and such
Magistrate shall proceed to recover the amount as if it were a fine imposed.
(2) Where the terms of any bond or other instrument executed under the Act provides that
the amount due under that bond may be recovered as per sub-section (1), then without
prejudice to other modes of recovery, the amount may so be recovered.
(3) Where the amount of CGST, interest or penalty is payable and remains unpaid, the PO
of SGST/UTGST may recover the same as if it were an arrear of SGST/UTGST ad credit
186
it to the account of the CG. In case it is less than the amount due, it shall be credited in
proportion to the amount due to each Govt.
In case a person defaults in paying any amount payable to the Government, the PO may
require a specified officer* to deduct the amount from any money owing to such defaulter in
FORM GST DRC-09 as per Section 79(1)(a).
*specified officer = any officer of the CG/SG/UTG/LA, or of a Board/Corporation/company

owned/controlled, wholly/partly, by the CG/SG/UTG/LA
(1) Where any amount due from a defaulter is to be recovered as per Section 79(1)(b) by
selling his goods, the PO shall prepare an inventory and estimate the MV of such
goods and sell only that quantity of the goods as may be required to recover the
amount payable + administrative expenditure incurred on recovery proceedings.
(2) The said goods shall be sold through auction for which a notice shall be issued in
FORM GST DRC-10 clearly indicating the goods to be sold and the purpose of sale.
(3) The last day to submit the bid or the date of auction shall not be earlier than 15 days
from the date of issue of FORM GST DRC-10.
However, in case the goods are perishable/hazardous in nature or where the
expenses of keeping them in custody are likely to exceed their value, the PO may sell
them without delay.
(4) The PO may specify the amount of pre-bid deposit to be furnished to make the
bidders eligible to participate. The deposit may be returned to unsuccessful bidders
and forfeited in case the successful one fails to make the full payment.
(5) The PO shall issue a notice to the successful bidder in FORM GST DRC-11, requiring
him to make full payment within 15 days from the date of auction. On such payment,
he shall issue a certificate in FORM GST DRC-12 and transfer the possession of goods
to the said bidder.
(6) In case the defaulter pays the amount under recovery and the expenses incurred
thereon before the issue of FORM GST DRC-10, the PO shall cancel the auction and
release the goods.
(7) The PO shall cancel the process and proceed for re-auction in case
o no bid is received or
o the auction is non-competitive due to lack of
▪ adequate participation, or
▪ low bids
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(1) The PO may serve a notice in FORM GST DRC-13 on a third person u/s 79(1)(c)
directing him to deposit the specified amount.
(2) Where the third person makes payment of the full amount specified in the notice, the
PO shall issue a certificate in FORM GST DRC-14 indicating the details of the liability
discharged.
In case any amount is payable to a defaulter in the execution of a decree of a civil court, the
PO shall send a request to the said court in FORM GST DRC-15 and the court shall execute
the attached decree and credit the net proceeds for settlement of the recoverable amount,
subject to CPC.
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(1) The PO shall prepare a list of defaulter’s movable/immovable properties, estimate

their MV and issue an order of attachment/distraint and a notice for sale in FORM
GST DRC-16 prohibiting any transaction with regard to such properties as may be
required for the recovery of amount due, subject to Rule 151.
(2) The PO shall send a copy of FORM GST DRC-16 to the concerned Authority to
encumber the said property, which shall be removed only on written instructions
from the PO.
(3) In case the property so attached is –

(a) immovable – the order shall be affixed on the said property and shall remain
affixed till the confirmation of sale.
(b) movable – the PO shall seize the said property in accordance with Chapter
XIV of CGSTA, 2017 and the custody of the property shall be taken by the PO
himself or an authorized officer.
(4) The said property shall be sold through an auction for which the notice shall be
issued in FORM GST DRC-17 indicating the property to be sold and the purpose of
sale
(5) Overruling this Chapter, in case the property to be sold is

o a negotiable instrument, or
o a share in a corporation,
the PO may sell such property through a broker and from the proceeds, the said
broker shall
o retain his commission,
o deposit the amount recoverable to the government and
o pay any balance amount to the owner of the instrument/share
(6) The PO may specify the amount of pre-bid deposit to be furnished to make the
bidders eligible to participate. The deposit may be returned to unsuccessful bidders
and forfeited in case the successful one fails to make the full payment.
(7) The last day to submit the bid or the date of auction shall not be earlier than 15 days
from the date of issue of FORM GST DRC-17.
However, in case the goods are perishable/hazardous in nature or where the
expenses of keeping them in custody are likely to exceed their value, the PO may sell
them without delay.
(8) In case of a claim/objection is raised that any property is not liable to be

attached/distrained, the PO shall investigate such claim/objection and may postpone
the sale for such time as he may deem fit.
(9) The person making the claim/objection must adduce evidence to show that on the
date of issue of order under (1), he had some interest in, or was in possession of the
property in question.
(10) On investigation, if the PO is satisfied that

o the property was not in the possession of the defaulter or any other person
on his behalf on the said date, or
o the property in his possession did not belong to him, wholly or partly, but to
any other person,
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on the said date,

the PO shall order the release of the property from attachment wholly or to the
extent he deems fit.
(11) In case the PO is satisfied that

o the property possessed by the defaulter was his own property, or
o the property was in possession of some other person in trust for him, or
o the property was occupied by some other person paying rent to him,
on the said date, he shall reject the claim made and proceed with the auction.
(12) The PO shall issue a notice to the successful bidder in FORM GST DRC-11, requiring
him to make full payment within 15 days from the date of such notice. On such
payment, he shall issue a certificate in FORM GST DRC-12 specifying
o the details of the property,
o date of transfer
o the details of bidder
o the amount paid
and title of the property shall be deemed to be so transferred.
In case the highest bid is made by more than one person and one of them is a co-
owner of the property, he shall be deemed to be the successful bidder.
(13) Any stamp duty, tax or fee payable in respect of such transfer shall be paid to the
government by the person to whom the title of the property is transferred.
(14) In case the defaulter pays the amount under recovery and the expenses incurred
thereon before the issue of FORM GST DRC-17, the PO shall cancel the auction and
release the goods
(15) The PO shall cancel the process and proceed for re-auction in case
o no bid is received or
o the auction is non-competitive due to lack of
▪ adequate participation, or
▪ low bids
(1) A debt not secured by a negotiable instrument, a share in a corporation, or any other
movable property not in the possession of the defaulter except for that in custody of
any court shall be attached by FORM GST DRC-16 prohibiting –
(a) debt – the creditor from recovering and the debtor from paying off the debt,
till further order from the PO
(b) share – the person in whose name share may be standing from transferring
the same or receiving any dividend.
(c) any other property – the possessor from giving it to the defaulter.
(2) A copy of the order shall be

o affixed on some visible part of the PO’s office
o sent –
▪ debt – to the debtor
▪ share – to the regd. address of the corporation
▪ any other property – to the possessor
(3) The said debtor may pay the indebted amount to the PO, and it shall be deemed to
be paid to the defaulter.
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In case the property to be attached is in the custody of any court or Public Officer, the PO
shall send the order to such court/officer, requesting to hold the property and any
interest/dividend payable thereon till the amount payable is recovered.
(1) In case the interest of the defaulter in a partnership property is to be attached, the PO
may order to charge the share of such partner in the partnership property and profits
with payment of due amount. The PO may appoint a receiver by the same or
subsequent order, who shall receive the profit share (declared or accruing) and any
other amount receivable by such partner. He may also direct the accounts and
enquiries and make an order for sale of such partnership interest if required.
(2) The other partners may redeem the interest charged or purchase the same in case
the sale is being directed.
The amount realised on sale of goods or properties for recovery purposes shall be –
(a) First, appropriated against administrative cost of the recovery process
(b) Next, appropriated against the recoverable amount
(c) Next, appropriated against any other amount due under GST laws
(d) Any balance, paid to the defaulter.
In case any amount is recoverable in accordance with section 79(1)(e), the PO shall send a
certificate to the Collector/DC of the district or any other authorised officer in FORM GST
DRC-18, to recover the amount specified therein from the concerned person as if it were an
arrear of land revenue.
In case any amount is recoverable in accordance with section 79(1)(f), the PO shall make an
application to the appropriate Magistrate in FORM GST DRC-19, to recover the amount
specified thereunder from the concerned person as if it were a fine imposed by him under
the CrPC.
In case any person has become surety for the amount due by the defaulter, he may be
proceeded against as if he were the defaulter.
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No officer or any person involved in the organization of auction shall

o bid for,
o acquire or
o attempt to acquire
any interest in the property sold directly or indirectly.
No sale under this Chapter shall take place on

o a Sunday or
o other general holidays recognized by the Government or
o any notified holiday for the area in which the sale is to take place.
The PO may seek necessary assistance from the officer in-charge of the jurisdictional police
station and the said officer shall depute sufficient number of police officers for providing
such assistance.
On an application filed by a taxable person, the Commissioner may extend the time for
payment or allow the payment of dues other than the self-assessed amount in any return, in
max. 24 monthly instalments, subject to payment of interest u/s 50 and other prescribed
conditions.
However, in case there is default in payment of any instalment on its due date, the whole
outstanding balance payable on such date shall become due and payable forthwith and shall
be liable for recovery without any further notice.
(1) In case of an application filed by a taxable person in FORM GST DRC-20 seeking
extension of time u/s 80, the Commissioner shall ask for a report from the
jurisdictional officer about the financial ability of the taxable person to pay the said
amount.
(2) After considering the application and report, the Commissioner may issue an order in
FORM GST DRC-21 allowing the taxable person further time to make payment and/or
pay such amount in monthly instalments, not exceeding 24.
(3) Such facility shall not be allowed in case –

(a) the taxable person has already defaulted on payment of any amount under
GST laws for which the recovery process is on,
(b) the taxable person has not been allowed to make payment in instalments in
the preceding FY under the GST laws.
(c) the instalment facility is sought for an amount less than ₹25,000.
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After any amount becomes due on any taxable person, if he creates a charge on or parts with
the property belonging to him or in his possession through sale, mortgage, exchange etc. in
favour of any other person, with the intention of defrauding the Government, such transaction
shall be void against any claim in respect of any amount payable by such person.
However, such transaction shall not be void if it is made for adequate consideration, in good
faith and without notice of any such proceedings under this Act, or with prior permission of the
PO.
Overruling anything and everything, other than IBC, 2016, any amount payable by a person on
account of tax, interest or penalty, which he is liable to pay to the Government, shall be a first
charge on the property of such person.
During any proceeding u/s 62, 63, 64, 67, 73 or 74, where the Commissioner considers it to be
necessary, he may provisionally attach any property belonging to the taxable person, including
his bank account, by an order in writing, to protect the interest of the revenue.
Such provisional attachment shall cease to have effect after 1 year from the date of the order.
(1) An order u/s 83 shall be passed in FORM GST DRC-22, mentioning the details of
property to be attached.
(2) The PO shall send a copy of FORM GST DRC-22 to the concerned Authority to
encumber the said property, which shall be removed only on written instructions
from the PO
(3) In case of perishable/hazardous property, if the taxable person pays the lower of
market value of such property or the amount payable, such property shall be
released by an order in FORM GST DRC-23 on proof of payment.
(4) In case the taxable person fails to pay such amount on perishable/hazardous
property, the Commissioner may dispose of such property and the realized amount
shall be adjusted against the payable amount.
(5) Any person whose property is so attached may file an objection against such
attachment within 7 days and the Commissioner may release the said property by
issuing an order in FORM GST DRC-23 after giving the person an opportunity of being
heard.
(6) The Commissioner may release the provisionally attached property by issuing an
order in FORM GST DRC-23, on being satisfied that the property attached was or is
no longer liable for attachment.
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In case a notice of demand of Government dues is served upon a person and any appeal or
revision application is filed or any other proceeding is initiated in respect of such dues then –
(a) Where such dues are enhanced in such proceeding, the Commissioner shall serve upon
the person another notice of demand of the additional amount and any recovery
proceedings in relation to such dues may continue from the stage at which it stood
immediately before the disposal of such proceeding.
(b) In case such dues are reduced in such proceeding –
(i) A fresh notice of demand is not necessary
(ii) The Commissioner shall intimate about the reduction to such person and
appropriate authority with whom recovery proceedings are pending
(iii) Any recovery proceeding initiated before the disposal of the appeal may
continue from the stage at which it stood before such disposal
The order for reduction or enhancement of any demand u/s 84 shall be issued in FORM GST
DRC- 25
• Market Value [Sec. 2(73) of CGSTA]: shall mean the full amount which a recipient of a
supply is required to pay in order to obtain the goods or services or both of like kind
and quality at or about the same time and at the same commercial level where the
recipient and the supplier are not related.
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CGSTA, 2017
• Section 95: Definitions
• Section 96: Authority for Advance Ruling
• Section 97: Application for Advance Ruling
• Section 98: Procedure on Receipt of Application
• Section 99: Appellate Authority for Advance Ruling
• Section 100: Appeal to Appellate Authority
• Section 101: Orders of Appellate Authority
• Section 102: Rectification of Advance Ruling
• Section 103: Applicability of Advance Ruling
• Section 104: Advance Ruling to be void in certain circumstances
• Section 105: Powers of Authority and Appellate Authority
(a) Advance Ruling means a decision provided by the Authority or the Appellate Authority
to an applicant on matters or on questions specified in section 97(2) or section 100(1), in
relation to the supply of goods/services being undertaken or proposed to be
undertaken by the applicant.
(b) Appellate Authority means the Appellate Authority for Advance Ruling constituted u/s
99.
(c) Applicant means any person registered or desirous of obtaining registration under this
Act.
(d) Application means an application made to the Authority u/s 97(1);
(e) Authority means the Authority for Advance Ruling, constituted u/s 99.
Subject to the provisions of this Chapter,

the AAR constituted under SGSTA/UTGSTA
shall be deemed to be the AAR for that state/UT
The Govt. shall appoint officers ranking JC and above as members of the AAR
(1) An applicant seeking advance ruling under this Chapter may make an application
stating the question on which advance ruling is sought in the prescribed manner and
with prescribed fee.
195
(2) Categories of questions on which Advance Ruling may be sought –

(a) Classification of any goods/services
(b) Applicability of a notification issued under this Act
(c) Determination of time and supply of goods/services
(d) Admissibility of ITC of tax paid or deemed to have been paid.
(e) Determination of the liability to pay tax on any goods/services
(f) Whether applicant is required to be registered
(g) Whether any particular thing done amounts to supply
(1) An advance ruling application u/s 97(1) shall be filed in FORM GST ARA-01 and shall
be accompanied by a fee of ₹5,000 to be deposited as per section 49.
(2) The application and all the relevant documents accompanying such application shall
be signed as per rule 26.
(1) On receipt of application, the AAR shall forward a copy to the concerned officer and
call upon him to furnish relevant records, if necessary.
However, where any such record has been called for by the AAR, it shall be returned to
the said concerned officer asap.
(2) After examining the application and the records called for
and after hearing the applicant and the concerned officer or their authorized
representative, the AAR may either admit or reject the application by order.
However, the AAR shall not admit any such application the question raised in which is
already pending or decided in any proceedings in the case of an applicant under any of
the provisions of this Act.
However, no such application shall be rejected under this sub-section unless and
opportunity of hearing has been given.
And where the application is finally rejected, the reasons for such rejection shall be
specified in the order.
(3) A copy of every such order shall be sent to the applicant and the concerned officer
(4) Where an application is admitted, the AAR shall pronounce its advance ruling on the
question asked after examining further materials as placed before it by the applicant or
obtained by the AAR itself, and after providing an opportunity of hearing to the
applicant and the concerned officer or their authorized representatives.
(5) In case of difference of opinion amongst members of AAR, they shall state the points of
difference and refer the case to the AAAR for hearing and decision.
(6) The AAR shall pronounce its advance ruling in writing within 90 days from the date of
receipt of application.
(7) A duly signed and certified copy of this pronouncement shall be sent to the applicant,
the concerned officer and the jurisdictional officer.
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Any member of the AAR shall certify a copy of the advance ruling to be a true copy of its
original.
Subject to the provisions of this Chapter,

the AAAR constituted under SGSTA/UTGSTA
shall be deemed to be the AAAR for that state/UT.
(1) The concerned officer, the jurisdictional officer or an applicant aggrieved by any
pronouncement of AAR may appeal to the AAAR.
(2) Every such appeal shall be filed within 30 days from the date on which the ruling
sought to be appealed is communicated to the trio.
However, on sufficient cause being shown, the AAAR may extend this period by a
further period not exceeding 30 days.
(3) Every appeal shall be accompanied with prescribed fee.
(1) An appeal against advance ruling shall be filed in FORM GST ARA-02 and shall be
accompanied by a fee of ₹ 10,000 to be deposited as per section 49.
(2) An appeal against advance ruling shall be filed by the concerned officer referred u/s
100 in FORM GST ARA-03 and no fee shall be payable by the said officer for such
appeal.
(3) The said appeal and all relevant documents shall be signed –
(a) in case of concerned officer – by an officer authorised by such officer
(b) in case of applicant – as per Rule 26
(1) After giving the parties to the appeal or reference an opportunity of being heard, the
AAAR may pass such order as it thinks fit, confirming or modifying the ruling.
(2) Such order shall be passed within 90 days from the date of filing appeal u/s 100 or a
reference u/s 98(5).
(3) In case of difference of opinion amongst members of AAAR on any point, it shall be
deemed that no advance ruling can be issued in respect of the question under appeal
or reference.
197
(4) A duly signed and certified copy of the pronouncement by the AAAR shall be sent to
the applicant, the concerned officer, the jurisdictional officer and to the AAR.
A copy of the advance ruling pronounced and duly signed by the members of AAAR shall be
sent to –
(a) the applicant and the appellant
(b) the concerned officer of CGST and SGST/UTGST
(c) the jurisdictional officer of CGST and SGST/UTGST, and
(d) the AAR
as per section 101(4).
The AAR or the AAAR may amend any order passed u/s 98 or 101, in order to rectify any
apparent error which is noticed by the AAR or AAAR suo moto, or is brought to his notice by
the concerned officer, jurisdictional officer, applicant or the appellant within 6 months from the
date of the order.
However, any such rectification that enhances the tax liability or reduced the amount
admissible as ITC shall be shall not be made unless the applicant/appellant has been given an
opportunity of being heard.
(1) The advance ruling pronounced by the AAR or the AAAR shall be binding only –
(a) On the applicant
(b) On the concerned officer/jurisdictional officer in respect of the applicant.
(2) It shall be binding unless the law, facts or circumstances supporting the original
advance ruling has changed.
(1) Where the AAR or the AAAR finds that the advance ruling pronounced by it has been
obtained by the applicant/appellant by fraud or misrepresentation, it may declare by
order such ruling to be void ab-initio and all the provisions of this Act shall apply as if
no such ruling had ever been made.
However, no such order shall be passed without granting an opportunity of being heard
to the applicant/appellant.
(2) A copy of this order shall be sent to the applicant, the concerned officer and the
jurisdictional officer.
(1) For the purpose of exercising its powers regarding –

(a) Discovery and inspection
(b) Enforcing the attendance of any person and examining him on oath
198
(c) Issuing commissions and compelling production of books of account and other
records
the AAR and AAAR shall have all the powers of a civil court under CPC, 1908
(2) The AAR/AAAR shall be deemed to be a civil court for the purpose of CrPC and every
proceeding before them shall be deemed to be a judicial proceeding under the IPC.
(17) Authorized Representative [Sec. 116(2) of CGSTA]: shall mean a person authorised by
the person referred to in sub-section (1) to appear on his behalf, being—
(a) his relative or regular employee; or
(b) an advocate who is entitled to practice in any court in India, and who has not
been debarred from practicing before any court in India; or
(c) any chartered accountant, a cost accountant or a company secretary, who
holds a certificate of practice and who has not been debarred from practice;
or
(d) a retired officer of the Commercial Tax Department of any State Government
or Union territory or of the Board who, during his service under the
Government, had worked in a post not below the rank than that of a Group-B
Gazetted officer for a period of not less than two years:
Provided that such officer shall not be entitled to appear before any
proceedings under this Act for a period of one year from the date of his
retirement or resignation; or
(e) any person who has been authorised to act as a goods and services tax
practitioner on behalf of the concerned registered person.
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CGSTA, 2017
• Section 107: Appeals to AA
• Section 108: Powers of RA
• Section 109: Constitution of AT and benches thereof
• Section 110: President and members of AT
• Section 111: Procedure before AT
• Section 112: Appeals to AT
• Section 113: Orders of AT
• Section 114: Financial and administrative powers of President
• Section 115: Interest on refund of amount paid for admission of appeal
• Section 116: Appearance by authorized representative
• Section 117: Appeal to HC
• Section 118: Appeal to SC
• Section 119: Sums due to be paid notwithstanding appeal, etc.
• Section 120: Appeal not to be filed in certain cases
• Section 121: Non-appealable decisions and orders
(1) Any person aggrieved by any decision/order

passed under the GST Acts
by an adjudicating authority
may appeal to the prescribed AA
within 3 months from the date of communication of such decision/order.
(1) An appeal to the AA shall be filed in FORM GST APL-01 along with the relevant
documents and a provisional acknowledgement shall be issued to the appellant
immediately.
(2) The grounds of appeal and the form of verification as contained in FORM GST APL-01
shall be signed by the appellant as per Rule 26.
(3) The appellant shall submit a certified copy of the decision/order appealed against
within 7 days of filing FORM GST APL-01 and a final acknowledgement shall be
issued thereafter by the AA in FORM GST APL-02 indicating appeal number. The
appeal shall be treated as filed only when the final acknowledgement is issued.
Now, in case the said certified copy is filed
o Within 7 days of filing FORM GST APL-01 – The date of filing of appeal shall
be the date of issue of provisional acknowledgement
o After 7 days of filing FORM GST APL-01 – The date of filing of appeal shall be
the date of submission of such copy.
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(2) The Commissioner may examine the record of any proceedings in which
an adjudicating authority has passed any decision under the GST Acts
in order to satisfy himself regarding the legality of the said decision
and may order any subordinate officer
to apply to the AA within 6 months from the date of communication of the said decision
for the determination of such points arising out of the said decision
as may be specified in the said order.
(1) An application to the AA u/s 107(2) shall be made in FORM GST APL-03 along with
the relevant documents.
within 7 days of filing FORM GST APL-03 and an appeal number shall be generated
thereafter by the AA
Any person/officer applying u/s 107(1)/(2) may appeal to –

(a) The Commissioner (Appeals) – against order passed by the AC/JC
(b) The Additional Commissioner (Appeals) – against order passed by the
AC/DC/Superintendent
(3) The application filed by an authorised officer under (2) above

shall be treated as an appeal made against the order of the adjudicating authority
and the said authorized officer shall be treated as the appellant,
thereby applying the provisions of the Act accordingly.
(4) The AA may extend the aforementioned period of 3/6 months by 1 month
if he is satisfied that the appellant was prevented from appealing by sufficient cause.
(5) Every appeal under this section shall be in the prescribed form
and verified in the prescribed manner.
(6) No appeal shall be filed under (1), unless the appellant has paid —
(a) in full, such part of the tax, interest, fine, fee and penalty arising from the
impugned order, as is admitted by him; and
(b) 10% of the remaining amount of tax in dispute arising from the said order, in
relation to which the appeal has been filed.
(7) Where the appellant has paid the aforementioned amount, the recovery proceedings
for the balance amount shall be deemed to be stayed.
(8) The AA shall give the appellant an opportunity of being heard
(9) The AA may grant time to the parties and adjourn the hearing for sufficient reasons to
be recorded in writing.
However, the said adjournment shall not be allowed more than 3 times to a party.
(10) The AA may allow the appellant to add any ground of appeal
at the time of hearing,
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which was not specified earlier in the application,

if it is satisfied that the omission was not wilful or unreasonable.
(11) After making necessary inquiry, the AA shall pass an order

confirming/modifying/annulling the decision/order appealed against
but shall not refer the case back to the adjudicating authority that passed the said
decision/order.
However, an order
o enhancing any fee/penalty/fine in lieu of confiscation or
o confiscating goods of greater value or
o reducing the amount of refund/ITC
shall not be passed unless the appellant has been given an opportunity of being heard.
Further, where the AA opines that any tax has
o not been paid
o short paid
o erroneously refunded
or ITC has been
o wrongly availed
o wrongly utilized
no order shall be passed requiring the appellant to pay such tax/ITC
unless he is given the SCN against the proposed order
and the order is passed within the time limit u/s 73/74
(12) The order of the AA disposing of the appeal shall be in writing

and shall state
o The points for determination,
o The decision on such points and
o The reasons for such decision.
(13) Where possible, the AA shall hear and decide every appeal within 1 year from the date
on which it is filed.
However, where the issuance of order is stayed by the order of court/AT
the period of such stay shall be excluded in computing the 1 yr. period.
(14) and (15) On disposal of the appeal, the AA shall communicate the order passed by it to
o The appellant,
o The respondent,
o The adjudicating authority,
o The jurisdictional Commissioner of CGST and
o The jurisdictional Commissioner of SGST/UTGST
(16) Every order passed under this section shall be final and binding on the parties,
subject to Sections 108/113/117/118.
(1) Along with its order u/s 107(11), the AA shall issue a summary order in FORM GST
APL-04 clearly indicating the final demand amount.
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(1) Subject to Section 121, the RA may

(a) On his own motion, or
(b) Upon information received by him, or
(c) On request from the Commissioner of SGST/UTGST
examine the record of any proceedings,
and if he considers that any decision passed by any subordinate officer is
o erroneous in so far as it is prejudicial to the interest of the revenue and
o is illegal or improper or has not taken into account certain material facts
▪ available at the time of issuance of the order, or
▪ not available at the time of issuance of the order, or
▪ in consequence of an observation by the CAG of India,
he may stay the operation of such decision for a befitting period
and after giving the concerned person an opportunity of being heard and making
necessary inquiry
pass an order enhancing/modifying/annulling the said decision.
(2) The RA shall not exercise any power under (1) above, if –
(a) the order has been subject to an appeal u/s 107/112/117/118, or
(b) the 6 months period as per section 107(2) has not yet expired or
more than 3 yrs. have expired after the passing of the decision/order sought to
be revised, or
(c) the order has already been taken for revision under this section at an earlier
stage, or
(d) the order has been passed in exercise of the powers under (1) above.
Moreover, the RA may pass an order under (1) on any point which has not been raised
and decided in an appeal referred to in (a) above,
o before the expiry of 1 yr. from the date of the order in such appeal or
o before the expiry of 3 yrs. as referred in (b) above,
whichever is later.
subject to Sections 113/117/118.
(4) If the said order involves an issue on which the AT (or HC) has given its decision in
some other proceedings
and an appeal to the HC (or SC) against such decision is pending
the period spent between
o the date of the decision of the AT (or HC) and
o the date of the decision of the HC (or SC)
shall be excluded in computing the period of limitation as per (2)(b) above
where revision proceedings have been initiated by way of issue of notice under this
section.
(5) Where the issuance of the order under (1) is stayed by the order of court/AT
the period of such stay shall be excluded in computing the limitation period under
(2)(b) above.
NOTE: In this section, “decision” includes intimation given by any officer lower in rank than the
RA.
203
(1) On recommendations of The Council, The Government shall constitute an AT known as

Goods and Services Tax Appellate Tribunal (GSTAT) for hearing appeals against the
orders passed by the AA/RA.
(2) The powers of the AT shall be exercisable by
o the National Bench and its Regional Benches

o the State Bench and its Area Benches
(3) The National Bench of the AT shall be situated at New Delhi

which shall be presided over by the President and shall consist of
o One Technical Member (Centre) and
o One Technical Member (State).
(4) On recommendations of The Council, The Government shall constitute the required no.
of Regional Benches, and such Regional Benches shall consist of
o A Judicial Member,
o One Technical Member (Centre) and
o One Technical Member (State).
(5) The National Bench/Regional Benches of the AT shall have jurisdiction to hear appeals
against the orders passed by the AA/RA
in the cases where one of the issues involved relates to the place of supply.
(6) The Government shall notify a State Bench for each State/UT
for exercising the powers of the AT within the concerned State/UT.
Moreover, on receipt of request from any SG, the Government shall
constitute recommended number of Area Benches in that State.
Also,
o on receipt of a request from any State or
o on its own motion for a UT,
the Government may notify the AT in a State to act as the AT for any other State/UT
subject to prescribed terms and conditions.
(7) The State Bench/Area Benches shall have jurisdiction to hear appeals against the orders
passed by the AA/RA
in the cases involving matters other than those referred in (5).
(9) Each State Bench and Area Benches of the AT shall consist of
o A judicial member,
o One technical member (centre) and
o One technical member (state)
and the SG may designate the senior most Judicial Member in a State as the State
President.
(8) The President and the State President shall distribute the business or transfer cases
among Regional Benches/Area Benches by general/special order.
204
(10) In the absence of a Member in any Bench due to vacancy or otherwise,

any appeal may be heard by a Bench of two Members
with the prior approval of the President/State President.
However, any appeal where
o the tax/ITC involved or
o the difference in tax/ITC involved or
o the amount of fine/fee/penalty determined in any order appealed against
does not exceed ₹5,00,000 and
which does not involve any question of law
may be heard by a bench consisting of a single member
with the prior approval of the President and subject to prescribed conditions.
(11) If the Members of the National Bench/Regional Benches/State Bench/Area Benches

differ in opinion on any point(s),
it shall be decided according to the opinion of the majority, if there is a majority,
but if the Members are equally divided, they shall state the point(s) on which they
differ,
and the case shall be referred by the President/State President to one or more of the
other Members of the National Bench/Regional Benches/State Bench/Area Benches
for hearing on such point(s)
and such point(s) shall be decided according to the opinion of the majority of Members
who have heard the case, including those who first heard it.
(12) For administrative convenience, the Government may transfer –

(a) Any Judicial Member/Technical Member (State) from one Bench to another
Bench, whether National or Regional; or
(b) Any Technical Member (Centre) from one Bench to another Bench, whether
National/Regional/State/Area.
in consultation with the President.
(13) For administrative convenience, the SG may transfer a Judicial Member/Technical

Member (State) from one Bench to another Bench within the State, in consultation with
the State President.
(14) No act or proceedings of the AT shall be questioned or shall be invalid

merely on the ground of any vacancy or defect in the constitution of the AT.
(1) The following persons shall be qualified for appointment as –

(a) The President –
▪ ex-judge of the SC, or
▪ present or ex-Chief Justice of a HC, or
▪ present or ex-judge of a HC
who have served in that capacity for at least 5 yrs.
(b) A Judicial Member –
▪ ex-judge of the HC, or
▪ present or ex-District Judge qualified to be appointed as a judge of a HC,
or
▪ present or ex-member of Indian Legal Service and has held a post
ranking Additional Secretary and above for 3 yrs.
205
(c) A Technical Member (Centre) –

▪ present or ex-member of the Indian Revenue (Customs and Central
Excise) Service (Group A), with 15 yrs. completed in the said Group.
(d) A Technical Member (State) –
▪ present or ex-officer of the SG ranking Additional Commissioner or
above of VAT/SGST or any other notified rank,
with at least 3 yrs. experience in the administration of any previous law
or the SGSTA or in the field of finance and taxation.
(2) The President and the Judicial Members of the National Bench/Regional Benches shall
be appointed by the Government after consultation with the CJI.
However, in case of any vacancy in the office of the President by reason of death,
resignation or otherwise, the senior most member of the National Bench shall act as the
President unless a new President is appointed.
Further, where the President is unable to discharge his function sue to absence. Illness
or any other cause, the senior most member of the National Bench shall discharge such
functions unless the President resumes his duties.
(3) The Technical Member (Centre) and Technical Member (State) of the National
Bench/Regional Benches shall be appointed by the Government on the
recommendations of a Selection Committee consisting of prescribed persons.
(4) The Judicial Member of the State Bench/Area Benches shall be appointed by the SG
after consultation with the CJ of the HC of the State.
(5) The Technical Member (Centre) of the State Bench/Area Benches shall be appointed by
the CG and
Technical Member (State) of the State Bench/Area Benches shall be appointed by the
SG
(6) No appointment of the members of the AT shall be invalid merely due to any vacancy
or defect in the constitution of the Selection Committee.
(7) Before appointing any person as the President or Members of the AT, the CG/SG shall
satisfy itself that such person does not have any financial or other interests which may
prejudicially affect his functions.
(8) The President, State President and the Members of the AT shall be entitled to
prescribed salary and allowances.
Moreover, the said salary and allowances shall not be varied to their disadvantage after
their appointment.
Tenure of Earlier of… Eligible for
Reappointment
(9) The President 3 yrs. or until he is 70 yrs. of Yes
age
(10) The State President 3 yrs. or until he is 65 yrs. of Yes
age
The Judicial Member 3 yrs. or until he is 65 yrs. of Yes
age
(11) The Technical Member 5 yrs. or until he is 65 yrs. of Yes
(Centre) age
206
The Technical Member 5 yrs. or until he is 65 yrs. of Yes

(State) age
(12) The President, State President or any Member may resign from his office by addressing
a notice in writing under his hand to the CG/SG.
However, the President/State President/Member shall continue to hold office -
o for 3 months from the date of receipt of notice by the CG/SG, or
o until a duly appointed successor enters the office, or
o until the expiry of his term of office
whichever is earliest.
(13) In case of
(a) the President, Judicial Members and Technical Members of the National
Bench/Regional Benches or
(b) the Technical Members (Centre) of the State Bench/Area Benches
the CG may (after consultation with the CJI), and in case of
o the State President, Judicial Members and Technical Members (State) of the
State Bench/Area Benches
the SG may (after consultation with the CJ of HC)
may remove such President/Member from the office, who –
(a) has been adjudged an insolvent; or
(b) has been convicted of an offence which, in the opinion of such Government
involves moral turpitude; or
(c) has become physically or mentally incapable of acting as such President, State
President or Member; or
(d) has acquired such financial or other interest as is likely to affect prejudicially his
functions as such President, State President or Member; or
(e) has so abused his position as to render his continuance in office prejudicial to
the public interest
However, the President, State President or the Member shall not be removed under (d)
and (e), unless he has been informed of the charges against him and has been given an
(14) Without affecting sub-section (13), -

(a) After an inquiry made by a SC nominated by the CJI,
the President/Judicial Member/Technical Member of the National
Bench/Regional Benches, Technical Member (Centre) of the State Bench/Area
Benches
in respect of whom a reference has been made by the CG
shall be removed from their office
on the ground of proved misbehaviour or incapacity
only by an order by the CG and after giving the said President or Member an
(b) After an inquiry made by a HC judge nominated by the CJ of the concerned HC,
the Judicial Member/Technical Member (State) of the State Bench/Area
Benches
in respect of whom a reference has been made by the SG
shall be removed from their office
on the ground of proved misbehaviour or incapacity
only by an order by the SG and after giving the said President or Member an
207
(15) The CG may suspend

the President/Judicial Member/Technical Members of the National Bench/Regional
Benches or
the Technical Member (Centre) of the State Bench/Area Benches
from office
in respect of whom a reference has been made to the SC judge under (14) above,
with the concurrence of the CJI.
(16) The SG may suspend

the Judicial Member/Technical Member (State) of the State Bench/Area Benches
from office
in respect of whom a reference has been made to the HC judge under (14) above,
with the concurrence of the CJ of HC.
(17) Subject to Article 220 of The Constitution

the President/State President/other Members
on ceasing to hold their office,
shall not be eligible to appear/act/plead
before the National Bench and the Regional Benches or the
State Bench and the Area Benches thereof
where he was the President/Member.
(1) The AT shall not be bound by the procedure laid down in the CPC, 1908
while disposing any proceedings/appeal before it
but shall be guided by the principles of natural justice and
shall have power to regulate its own procedure, under the provisions of this Act.
(2) The AT shall have the same powers as are vested in a civil court under the CPC, 1908
while trying a suit in respect of the following matters –
(i) summoning and enforcing the attendance of any person and examining him on
oath;
(ii) requiring the discovery and production of documents;
(iii) receiving evidence on affidavits;
(iv) subject to the provisions of sections 123 and 124 of the Indian Evidence Act,
1872, requisitioning any public record or document or a copy of such record or
document from any office;
(v) issuing commissions for the examination of witnesses or documents;
(vi) dismissing a representation for default or deciding it ex parte;
(vii) setting aside any order of dismissal of any representation for default or any
order passed by it ex parte; and
(viii) any other matter which may be prescribed.
(3) Any order made by the AT may be enforced by it

as if it were a decree made by a court,
and it shall be lawful for the AT to send for execution of its orders to the court
in whose jurisdiction –
(a) The regd. office of the company is situated (in case of an order against a
company), or
(b) The person concerned voluntarily resides/carries on business (in case of an
order against any other person)
208
(1) Any person aggrieved by an order passed against him u/s 107/108
may appeal to the AT against such order
within 3 months from the date such order is communicated to the said person.
(2) The AT may refuse to admit any such appeal where

o the tax/ITC involved, or
o the amount of fine/fee/penalty determined by such order,
does not exceed ₹50,000.
(3) The Commissioner may examine the record of any order

passed by the AA/RA
in order to satisfy himself regarding the legality of the said order
and may order any subordinate officer
to apply to the AT within 6 months from the date of communication of the said order
for the determination of such points arising out of the said decision
as may be specified in his order.
(4) The application filed by an authorised officer under (3) above

shall be treated as an appeal made against the order of the AA/RA
and the provisions of the Act shall apply accordingly.
(5) On receipt of notice that an appeal has been filed under this section,
the party against whom the appeal has been preferred may file
a memorandum of cross-objections within 45 days of such receipt
against any part of the order appealed against,
and such memorandum shall be disposed of by the AT
as an appeal presented under (1).
(6) The AT may

o admit an appeal - within 3 months after the expiry of the period under (1), or
o permit the memorandum – within 45 days after the expiry of the period under
(5)
if it is satisfied that there was sufficient cause for not presenting it within the said
period.
(7) The appeal to the AT shall be in the prescribed form and accompanied by prescribed
fee, to be verified in the prescribed manner.
(8) No appeal shall be filed under (1), unless the appellant has paid —
(a) in full, such part of the tax, interest, fine, fee and penalty arising from the
impugned order, as is admitted by him; and
(b) 20% of the remaining amount of tax in dispute arising from the said order in
relation to which the appeal has been filed, in addition to the amount paid u/s
107(6).
(9) Where the appellant has paid the aforementioned amount, the recovery proceedings
for the balance amount shall be deemed to be stayed.
209
(10) Every application made before the AT –

(a) in an appeal for rectification of error or for any other purpose, or
(b) for restoration of an appeal or an application,
shall be accompanied by prescribed fees.
(1) An appeal to the AT u/s 112(1) shall be filed in FORM GST APL-05 along with the
relevant documents and a provisional acknowledgement shall be issued to the
appellant immediately.
(2) The memorandum of cross-objections u/s 112(5) shall be filed in FORM GST APL-06.
(3) The appeal and the memorandum of cross-objections shall be signed as per Rule 26.
within 7 days of filing FORM GST APL-05, along with the fees specified in sub-rule (5)
and a final acknowledgement shall be issued thereafter by the AA in FORM GST APL-
02 indicating appeal number. The appeal shall be treated as filed only when the final
acknowledgement is issued.
Now, in case the said certified copy is filed
o Within 7 days of filing FORM GST APL-05 – The date of filing of appeal shall
be the date of issue of provisional acknowledgement
o After 7 days of filing FORM GST APL-05 – The date of filing of appeal shall be
the date of submission of such copy.
(5) The fees for filing of appeal or restoration of appeal shall be ₹1,000 for every
₹1,00,000 of
o tax/ITC involved or
o the fine/fee/penalty determined in the order appealed against
subject to ₹25,000.
(6) There shall be no fee for application made before the AT for rectification of errors
referred u/s 112(10).
(1) An application to the AT u/s 112(3) shall be filed in FORM GST APL-07, along with the
relevant documents.
within 7 days of filing FORM GST APL-07 and the registrar shall generate an appeal
number.
210
(1) The appellant shall not be allowed to produce any oral/documentary evidence other
than the evidence produced by him during the proceedings before the adjudicating
authority/AA except in the following circumstances –
(a) where the adjudicating authority/AA has refused to admit evidence, which
ought to have been admitted; or
(b) where the appellant was prevented by sufficient cause from producing the
evidence which he was called upon to produce by the adjudicating
authority/AA; or
(c) where the appellant was prevented by sufficient cause from producing
before the adjudicating authority/AA any evidence which is relevant to any
ground of appeal; or
(d) where the adjudicating authority/AA has made the order appealed against
without giving sufficient opportunity to the appellant to adduce evidence
relevant to any ground of appeal.
(2) No evidence shall be admitted under (1) above unless the AA/AT records the reasons
in writing.
(3) The AA/AT shall not take any evidence produced under (1) above unless the
adjudicating authority has been allowed a reasonable opportunity to –
(a) examine the evidence or to cross-examine any witness produced by the
appellant, or
(b) produce any evidence/witness in rebuttal of the evidence produced by the
appellant under sub-rule (1)
(4) This rule shall not affect the power of the AA/AT to direct the production of any
document, or the examination of any witness, to enable it to dispose of the appeal.
(1) After giving the parties to the appeal an opportunity of being heard, the AT may pass
orders
confirming/modifying/annulling the order appealed against or
refer the case back to the AA/RA/original adjudicating authority
for a fresh adjudication or decision after taking additional evidence, if necessary.
(2) The AT may grant time to the parties and adjourn the hearing for sufficient reasons to
be recorded in writing.
However, the said adjournment shall not be allowed more than 3 times to a party.
(3) The AT may amend any order passed by it under (1) above
to rectify any error apparent on the face of the record,
if such error is
o noticed by it suo moto, or
o brought to its notice by
▪ the Commissioner of CGST/SGST/UTGST or
▪ the other party to the appeal
within 3 months from the date of the order.
However, no amendment
o enhancing an assessment or
o reducing a refund/ITC or
211
o otherwise increasing the liability of the other party

shall be made, unless the party has been given an opportunity of being heard.
(4) Where possible, the AT shall hear and decide every appeal within 1 year from the date
on which it is filed.
(5) and (6) On disposal of the appeal, the AT shall communicate the order passed by it to
o The AA/RA/original adjudicating authority,
o The appellant, and
o The jurisdictional Commissioner of SGST/UTGST
subject to Sections 117/118.
(2) The jurisdictional officer shall issue a statement in FORM GST APL-04 clearly
indicating the final demand amount confirmed by the AT.
The President shall exercise the prescribed financial and administrative powers
over the National Bench and Regional Benches of the AT.
Moreover, the President shall have the authority to delegate
his financial and administrative powers
to any other Member or officer of the National Bench and Regional Benches
on the condition that he shall continue to act under the direction, control and supervision of the
President
while exercising such delegated powers.
In case an amount paid by the appellant u/s 107(6) or 112(8) is required to be refunded
on order of the AA/AT,
interest u/s 56 shall be payable in respect of such refund
from the date of payment
till the date of refund.
(1) Any person who is required to appear before an officer/AA/AT

in connection with any proceedings
may appear by an authorized representative
except for when required under the Act to appear personally for examination on oath
or affirmation.
(3) Any person –

(a) who has been dismissed/removed from Government service, or
(b) who is convicted of an offence connected with any proceedings under
212
▪ the CGSTA/SGSTA/IGSTA/UTGSTA or
▪ the existing laws or
▪ the Acts passed by a SG dealing with the imposition of taxes on sale of
goods or supply of goods/services, or
(c) who is found guilty of misconduct by the prescribed authority, or
(d) who has been adjudged as an insolvent
shall not be qualified to represent any person under (1) –
(i) for all times - in case of (a), (b) and (c), and
(ii) for the period during which the insolvency continues – in case of (d)
(4) Any person who has been disqualified under the SGSTA/UTGSTA
shall be deemed to be disqualified under this Act.
Where an authorized representative, except a practicing advocate/CA/CMA/CS, is found

guilty of misconduct in connection with any proceedings under the Act, the Commissioner
may disqualify him from appearing as an authorized representative, after providing him an
(1) Any person aggrieved by any order passed by the State Bench/Area Benches of the AT
may file an appeal to the HC
and the HC may admit such appeal,
if it is satisfied that the case involves a substantial question of law.
(2) An appeal under (1) above shall be filed within 180 days
from the date on which the order appealed against is received by the aggrieved person
and it shall be in the prescribed form and verified in prescribed manner.
However, the HC may entertain an appeal even after the said period expires
if it is satisfied that there was sufficient cause for not filing it.
(3) Where the HC is satisfied that a substantial question of law is involved in any case,
it shall formulate that question
and the appeal shall be heard only on the question so formulated,
and at the hearing of the appeal,
the respondents shall be allowed to argue that the case does not involve such question.
However, if the HC is satisfied that the case involves any other substantial question of
law not formulated by it,
it may hear the appeal on such question as well
for reasons to be recorded in writing.
(4) The HC shall decide the formulated question of law

and deliver a befitting judgement
containing the grounds on which such decision is founded.
(5) The HC may determine any issue which –

(a) has not been determined by the State Bench/Area Benches, or
213
(b) has been wrongly determined by the State Bench/Area Benches by reason of a
decision on the said question of law.
(6) Where an appeal has been filed before the HC,

it shall be heard by a bench of at least 2 judges,
and shall be decided in accordance with the opinion of such judges
or of any majority of such judges.
(7) In case there is no such majority, the judges shall state the point of law upon which
they differ
and then the case shall be heard upon that point
by one or more of the other judges of the HC
and such point shall be decided according to the opinion of the majority of the judges
who have heard the case
including those who first heard it.
(8) The HC judgement shall be given effect by either side on the basis of a certified copy of
the judgement.
(9) The provisions of CPC, 1908 relating to appeals to the HC shall apply mutatis mutandis.
(1) An appeal to the HC u/s 117(1) shall be filed in FORM GST APL-08.
(2) The grounds of appeal and the form of verification as contained in FORM GST APL-
08 shall be signed as per Rule 26.
(1) An appeal shall lie to the SC –

(a) from any order passed by the National Bench/Regional Benches of the AT, or
(b) from any order passed by the HC in an appeal made u/s 117,
which the HC certifies to be fit for appeal to the SC
immediately after passing the judgement,
suo moto or on an application made by the aggrieved party.
(2) The provisions of CPC. 1908 relating to appeals to the SC shall apply mutatis mutandis.
(3) Where the judgement of the HC is varied/reversed in the appeal,

the SC order shall be given effect
in the same manner as the HC judgement u/s 117.
The jurisdictional officer shall issue a statement in FORM GST APL-04 clearly indicating the
final demand amount confirmed by the HC/SC.
214
Overruling the fact that an appeal has been filed to the HC/SC,
sums due to the Govt. resulting from an order passed by
o the National Bench/Regional Benches of the AT u/s 113(1), or
o the State Bench/Area Benches of the AT u/s 113(1), or
o the HC u/s 117
shall be payable in accordance with the said order.
(1) On recommendations of The Council,

The Board may issue orders/instructions/directions from time to time
fixing monetary limits for regulating the filing of appeal by an officer.
(2) Where the officer of the CGST has not filed an appeal
against any order passed under this Act
due to the orders/instructions/directions issued under (1) above,
it shall not preclude such officer from filing appeal in any other case
involving similar issues or questions of law.
(3) Overruling the fact that no appeal has been filed by the officer
due to the orders/instructions/directions issued under (1) above,
no party in appeal shall contend that the officer has acquiesced in the decision
by not filing an appeal.
(4) The AT/court hearing such appeal shall have regard to the circumstances
under which appeal was not filed by the officer
due to the orders/instructions/directions issued under (1) above.
Overruling anything to the contrary in this Act,

no appeal shall lie against any order passed by an officer
if such order relates to any of the following matters –
(a) an order of the Commissioner or other authority empowered to direct transfer of
proceedings from one officer to another officer; or
(b) an order pertaining to the seizure or retention of books of account, register and other
documents; or
(c) an order sanctioning prosecution under this Act; or
(d) an order passed u/s 80.
215
CGSTA, 2017
• Section 85: Liability in case of transfer of business
• Section 86: Liability of agent and principal
• Section 87: Liability in case of amalgamation or merger of companies
• Section 88: Liability in case of company in liquidation
• Section 89: Liability of directors in private company
• Section 90: Liability of partners of firm to pay tax
• Section 91: Liability of guardians, trustees etc.
• Section 92: Liability of Court of Wards etc.
• Section 93: Special provisions regarding liability to pay tax, interest or penalty
• Section 94: Liability in other cases
(1) Where a taxable person transfers his business in whole or part

by sale, gift, lease, leave and license, hire etc.
he himself and the transferee
shall jointly and severally be liable
wholly or to the extent of such transfer
to pay the TIP due from the taxable person
upto the time of such transfer
irrespective of whether the amount due was determined before transfer or thereafter.
(2) Where the aforementioned transferee carries on such business

in his own name or in some other name,
he shall be liable to pay tax on the supplies made after the transfer date
and in case he is already registered,
he shall apply for amendment to his RC within prescribed time.
Where an agent supplies/receives any taxable goods

on behalf of his principal,
such agent and principal shall be liable to pay tax on such goods
jointly and severally.
(1) When 2 or more companies are amalgamated/merged

as per court/Tribunal order or otherwise
and the order is w.e.f. a date earlier than the order date
216
then any transaction of supply amongst such companies during this period
shall be included in the turnover of supply/receipt of the respective companies
and they shall be liable to pay tax accordingly.
(2) Overruling such order of amalgamation/merger

the said amalgamating/merging companies
shall be treated as distinct companies for the period upto the date of the said order
and that is the date w.e.f. which the RC of the said companies shall be cancelled.
(1) When any company is being wound up

as per court/Tribunal order or otherwise
every liquidator appointed as receiver of any assets of the company
shall give the intimation of his appointment to the Commissioner
within 30 days of such appointment.
(2) After obtaining required information

the Commissioner shall notify the liquidator
within 3 months of receiving the aforesaid intimation
the amount of TIP which is due or likely to be due
to be paid by the Company.
The Commissioner shall notify the liquidator in FORM GST DRC-24
(3) When any private company is wound up

and any TIP determined cannot be recovered
then every director of such company at any time during which the tax was due
shall be liable to pay such amount jointly and severally
unless he proves to the satisfaction of the Commissioner
that such non-recovery cannot be attributed to any gross neglect, misfeasance or
breach of duty on his part.
(1) Overruling Companies Act, 2013,

where any TIP due from a private company
for any period cannot be recovered
then every director of the Company during such period
shall be liable to pay such amount jointly and severally
unless he proves that such non-recovery cannot be attributed to any gross neglect,
misfeasance or breach of duty on his part.
(2) Where any private company is converted into a public company and any TIP for any
period
during which such company was a private company cannot be recovered before such
conversion,
then nothing contained in sub-section (1) shall apply on any director of such private
217
company.
However, this sub-section shall not apply to any personal liability imposed on such
director.
Overruling any contract to the contrary and any other law,

where any firm is liable to pay any TIP,
the firm and each of the partners of the firm
shall be liable for such payment jointly and severally.
Where any partner retires from the firm, he or the firm shall intimate the Commissioner of the
date of such retirement in writing and such partner shall be liable to pay TIP due up to the date
of his retirement.
However, in case no such intimation is given within 1 month from the date of retirement, the
liability of such retiring partner shall continue until the date of receipt of such intimation by the
Commissioner.
Where the business in respect of which any TIP is payable is carried on by any guardian,
trustee or agent of a minor/other incapacitated person,
the amount due shall be levied and recovered from such guardian, trustee or agent in the same
manner and to the same extent as it would have been determined and recovered from such
minor/incapacitated person, had this not been the case, and all the provisions of the Act shall
apply accordingly.
Where the estate or any portion thereof of a taxable person owning a business in respect of
which any TIP is payable is under the control of the Court of Wards, the Administrator General,
the Official Trustee or any receiver or manager appointed by a court order, shall be levied and
recovered from such person in the same manner and to the same extent as it would have been
determined and recovered from the taxable person as if he were conducting the business
himself, and all the provisions of the Act shall apply accordingly.
(1) Subject to IBC, 2016, where a person liable to pay TIP dies –
(a) Then, if a business carried on by such person is continued by his legal
representative or any other person, such legal rep or other person shall be liable
to pay TIP due from the deceased, and
(b) If the business is discontinued, his legal representative shall be liable to pay the
TIP due from the deceased, out of his estate and to the extent to which the
estate is capable of meeting the charge.
irrespective of when the TIP is determined.
(2) Subject to IBC, 2016, where a person liable to pay TIP is a HUF/AOP, and its property is
partitioned amongst the various members or groups of members, then,
218
each member/group of members shall jointly and severally be liable to pay the TIP due
from the HUF/AOP upto the time of the partition, irrespective of when it is determined.
(3) Subject to IBC, 2016, where a person liable to pay TIP is a firm being dissolved, then
every partner shall jointly and severally be liable to pay the TIP due from the firm upto
the time of dissolution, irrespective of when it is determined.
(4) Subject to IBC, 2016, where a person liable to pay TIP is –

(a) the guardian of a ward on whose behalf the business is carried on by the
guardian, or
(b) a trustee who carries on the business under a trust for a beneficiary,
then, if the guardianship or trust is terminated,
the ward/beneficiary shall be liable to pay the TIP due from the taxable person upto the
time of termination, irrespective of when it is determined.
(1) Where a taxable person is a firm/AOP/HUF and has discontinued business –

(a) The TIP payable by such firm/AOP/HUF upto the date of such discontinuance
may be determined as if no such discontinuance had taken place, and
(b) Every person who was a partner/member at the time of discontinuance shall
jointly and severally be liable for the TIP payable irrespective of when it is
determined, and the provisions of the Act shall mutatis mutandis apply on such
person.
(2) In case the constitution of a firm/AOP has changed, the partners/members, both before
and after such change, shall jointly and severally be liable to pay TIP due from such
firm/AOP before the reconstitution, subject to Section 90
(3) Sub-section (1) shall mutatis mutandis apply where a firm/AOP is dissolved or a HUF
has effected partition w.r.t. the business carried on by it.
NOTE: (i) Firm includes LLP

(ii) Court means District Court, High Court or Supreme Court
219
CGSTA, 2017
• Section 143: Job Work Procedure
• Section 19: ITC w.r.t. inputs and cap goods sent on job work
• Section 141: Transitional provisions relating to job work
(1) A registered principal

may send any inputs or capital goods
to a job worker for job work
and subsequently to another job worker from there and likewise
without payment of tax
under intimation and subject to prescribed conditions.
(a) The principal shall bring back
the inputs/capital goods
(other than moulds & dies, jigs & fixtures or tools)
after completion of job work or otherwise
within 1 year/3 years
of being sent out
to any of his place of business
without payment of tax.
(b) The principal shall supply
the inputs/capital goods
(other than moulds & dies, jigs & fixtures or tools)
after completion of job work or otherwise
within 1 year/3 years
of being sent out
from the place of business of job worker
on payment of tax within India
or with/without paying tax for export
as the case may be.
o The principal shall not supply such goods
unless he declares this place of business
as his additional place of business
except –
▪ where the job worker is registered u/s 25, or
▪ where the job worker is engaged in supply of goods notified by
Commissioner.
(b) The responsibility for keeping proper accounts

for the inputs or capital goods
shall lie with the principal.
220
(c) In case the prescribed time period

with respect to inputs sent for job work
is not adhered to,
it shall be deemed that such inputs had been supplied
by the principal to the job worker
on the day when the said inputs were sent for job work.
(d) In case the prescribed time period

with respect to capital goods sent for job work,
other than moulds & dies, jigs & fixtures and tools,
is not adhered to,
it shall be deemed that such capital goods had been supplied
by the principal to the job worker
on the day when the said capital goods were sent for job work.
(e) Overruling sub-sections (1) and (2),

any waste and scrap generated during the job work
may be supplied by
o The job worker (from his place of business on payment of tax) – if he is
registered
o The principal – if job worker is not registered.
NOTE: Input includes intermediate goods.

the principal shall be allowed ITC
on inputs sent to job worker for job work
(2) Overruling Section 16(2)(b)

the principal shall be entitled to take ITC
on inputs sent directly to the job worker for job work.
(3) Where the inputs sent for job work

are not received back or supplied
in accordance with Section 143(1)(a)/(b)
within 1 year of
o being sent out or
o receipt (in case sent directly to the job worker)
they shall be deemed to have been supplied
by the principal to the job worker.

the principal shall be allowed ITC
on capital goods sent to job worker for job work
(5) Overruling Section 16(2)(b)

the principal shall be entitled to take ITC
on capital goods sent directly to the job worker for job work
221
(6) Where the capital goods sent for job work

are not received back
within 3 years of
o being sent out or
o receipt (in case sent directly to the job worker)
they shall be deemed to have been supplied
by the principal to the job worker.
(7) Sub-sections (3) and (6) shall not apply to

o moulds and dies
o jigs and fixtures
o tools
sent out to a job worker for job work.
(1) The inputs/semi-finished goods/cap goods shall be sent to the job worker
under the cover of a challan issued by the principal.
including the case where such goods are sent directly to a job-worker.
(2) The challan issued shall contain the details specified in Rule 55.
(3) The details of challans in respect of goods

o dispatched to a job worker or
o received from a job worker or
o sent from one job worker to another
during a quarter shall be included in FORM GST ITC-04
to be furnished on or before 25th day of the succeeding month (as extended).
(4) Where the inputs/cap goods are not returned to the principal within the time
stipulated in Section 143,
they shall be deemed to have been supplied by the principal to the job worker
on the day when the said inputs/cap goods were sent out
and the said supply shall be declared in FORM GSTR-1 of the principal
thereby making him liable to pay tax along with applicable interest.
(1) Where any inputs received at a place of business had been removed
o as such or
o after being partially processed
to a job worker as per the existing law
prior to the appointed day
and such inputs are returned to the said place
within 6 months from the appointed day,
no tax shall be payable on such inputs.
The said period of 6 months may be extended by the Commissioner for a further period
of upto 2 months.
Moreover, if such inputs are not returned within the specified period,
the ITC shall be liable to be recovered as per Section 142(8)(a).
222
(2) Where any semi-finished goods had been removed

from the place of business to any other premises
for carrying out certain manufacturing processes
as per the existing law
and the said goods are returned to the said place
within 6 months from the appointed day,
no tax shall be payable on the said goods.
of upto 2 months.
Moreover, if the said goods are not returned within the specified period,
Also, the manufacturer may transfer the said goods to the premises of any registered
person
for supplying therefrom
o in India - on payment of tax, or
o outside India - without payment of tax
within the specified period,
in accordance with the existing law.
(3) Where any excisable goods manufactured at a place of business had been removed
without payment of duty
for carrying out tests or any other process not amounting to manufacture,
to any other premises
in accordance with the existing law
and such goods, are returned to the said place
after undergoing tests or any other process
within 6 months of the appointed day,
no tax shall be payable on such goods.
of upto 2 months.
Moreover, if the said goods are not returned within the specified period,
Also, the manufacturer may transfer the said goods from the said other premises
in accordance with the existing law
o in India - on payment of tax, or
o outside India - without payment of tax
within the specified period.
(4) The tax under (1), (2) and (3) above shall not be payable
only if the manufacturer and the job worker
declare the details of the inputs or goods held in stock by the job worker on behalf of
the manufacturer
on the appointed day
in the prescribed form and within the prescribed period.
223
Every person to whom Section 141 applies

shall submit a declaration in FORM GST TRAN-1
within the period specified in Rule 117
specifying the stocks of
o inputs,
o semi-finished goods or
o finished goods
held by him on the appointed day.
224
CGSTA, 2017
• Section 139: Migration of existing taxpayers
• Section 140: Transitional arrangements for input tax credit
• Section 142: Miscellaneous transitional provisions
(1) Every person

o registered under the existing laws and
o having a valid PAN
shall be issued a RC on provisional basis
on and from the appointed day
subject to prescribed conditions
which unless replaced by a final RC under (2) below
shall be liable to be cancelled if the prescribed conditions are not complied with.
(2) The final RC shall be granted in the prescribed form and subject to prescribed
conditions.
(3) The provisional RC issued under (1) above

shall be deemed to have not been issued
if the said registration is cancelled
due to an application filed by the registered person
that he was not liable to registration u/s 22 or 24.
225
(1) (a) Every person other than TDS deductor/ISD, registered under an existing law
and having PAN shall enrol under GST laws by validating his e-mail ID and
mobile no.
(b) Upon enrolment, the said person shall be granted registration on a
provisional basis and a RC in FORM GST REG-25, incorporating the GSTIN
therein shall be made available to him.
However, a taxable person who has been granted multiple registrations
under the existing law based on a single PAN shall be granted only 1
provisional registration under the Act.
(2) (a) Every person who has been granted a provisional registration shall submit an
application in FORM GST REG-26, along with the documents specified in the
said application.
(b) The information asked for above shall be furnished within 3 months
(extended till 31 Dec, ’17 vide Order No.: 06/2017-GST).
(c) If the information furnished are found proper, a RC shall be made available in
FORM GST REG-06.
(3) Where the information is either not furnished or not found to be proper, the PO shall
serve a SCN in FORM GST REG-27 and after allowing the person concerned a
reasonable opportunity of being heard, cancel the provisional registration by issuing
an order in FORM GST REG-28.
(3A) Where the RC has not been made available to the applicant
within 15 days from furnishing the information as per (2)(c), and
no notice has been issued as per (3) within the said period, the
registration shall be deemed to have been granted.
However, the SCN issued in FORM GST REG-27 can be withdrawn by issuing an
order in FORM GST REG-20, if it is found that there was no cause to issue the notice.
(4) Every person registered under existing law who is not liable to be registered under
the Act may apply for cancellation of registration in FORM GST REG-29 and the PO
shall do so, after conducting the required enquiry.
(1) A registered person, other than composition supplier,

shall be entitled to take CENVAT credit
carried forward in the return relating to period ending 30 June,’17
furnished by him under the existing law
in his e-CrL.
However, the registered person shall not be allowed
to take credit in the following circumstances –
(i) Where the said credit is inadmissible as ITC under this Act
(ii) Where he has not furnished all the returns required under the existing laws
pertaining to the last 6 months before GST laws
(iii) Where the said amount of credit relates to goods sold under exemptions
notified by the Government.
(2) A registered person, other than composition supplier,

shall be entitled to take credit of unavailed CENVAT credit of capital goods
226
not carried forward in the return relating to

period ending 30 June,’17
furnished by him under the existing law
in his ECrL,
only if such credit is admissible as
o CENVAT credit under the existing law and
o ITC under this Act.
NOTE: Unavailed CENVAT credit = Entitled CENVAT credit (-) Availed CENVAT credit
(3) A registered person who was

o not liable to be registered under the existing law or
o engaged in the manufacture of exempted goods or provision of exempted
services
o providing works contract service and availing benefit of Notfn. No. 26/2012 – ST
o a first stage dealer/ second stage dealer/ registered importer/ depot of a
manufacturer
shall be entitled to take credit of eligible duties in respect of
o Inputs stock
o Inputs contained in semi-finished/finished goods stock
on 1 July, 2017 subject to the following conditions:
(i) such inputs/goods are used/intended to be used for making taxable supplies
under this Act,
(ii) the said registered person is eligible for ITC on such inputs
(iii) the said registered person is in possession of invoice or other prescribed
documents evidencing payment of duty under the previous laws, issued not
before 12 months immediately preceding the enforcement of GST laws.
(iv) the supplier of services is not eligible for any abatement under this Act.
In case a registered person,
other than a manufacturer or a supplier of services
does not possess invoice or any such other document
then such registered person shall be allowed
to take credit at prescribed rate in prescribed manner
subject to prescribed conditions and limitations.
(4) A registered person who was engaged in manufacture of

taxable goods as well as exempted goods under the CEA, 1944 or
taxable services as well as exempted services under the FA, 1994
but which are taxable under this Act,
he shall be entitled to take the CENVAT credit –
(a) carried forward in a return furnished as per sub-section (1)
(b) In respect of IS/ISF as on 1 July, 2017 relating to such exempted goods/services
as per sub-section (3)
in his e-CrL.
(5) A registered person shall be entitled to take the credit of

eligible duties and taxes in respect of inputs received
on or after the appointed day
but the duty or tax of which has been paid by the supplier under the existing law,
if the invoice for the same was recorded in the books of such person within 30 days
(extendible by Commissioner for upto 30 days) from the appointed day.
He shall furnish a statement w.r.t. this credit taken
227
(6) A registered person who was

o paying tax at a fixed rate or
o paying a fixed amount in lieu of tax payable
under the existing law
shall be entitled to take credit of VAT and ET in respect of IS/ISF
held on the appointed day,
in his ECrL,
subject to the following conditions:
(i) such inputs/goods are used/intended to be used for making GSTable supplies
(ii) the said registered person in not paying tax under composition levy scheme
(iii) the said registered person is eligible for ITC on such inputs
(iv) the said registered person is in possession of invoice or other prescribed
documents evidencing payment of tax under the previous laws, issued not
before 12 months immediately preceding the enforcement of GST laws
(7) Overruling anything to the contrary contained in this Act,

the ITC on services received by an ISD before the appointed day
shall be eligible for distribution as credit under this Act
even if the invoice relating to such services are received on or after the appointed day.
(8) Where a registered person having centralized registration under the previous laws
has obtained a registration under this Act,
such person shall be allowed to take the CENVAT credit
carried forward in the return relating to period ending 30 June, ‘17
furnished under the previous laws
in his e-CrL
if such credit is admissible as ITC under this Act.
However, if the registered person furnishes the said return within 3 months of the
appointed day,
if such return is either original return
or revised return, reducing the credit claimed earlier.
(9) Where any CENVAT credit availed for input services has been reversed
due to non-payment of consideration within 3 months,
such credit can be reclaimed
if the registered person pays the amount of consideration
within 3 months from the appointed day.
(10) The amount of credit under (3), (4) and (6) shall be calculated in the prescribed manner.
NOTE: For (3), (4) and (6), “eligible duties” mean –

(i) Additional Excise Duties
(ii) CVD/SAD
(iii) Central Excise Duty
(iv) NCCD
For (5), “eligible duties and taxes” mean –
(i) Eligible duties as defined above
(ii) Service Tax
228
The CGST credit taken as per Section 140

on the stock of gold dore bar or jewellery made out of such bar held on 01 July, ’17,
relating to the CENVAT credit carried forward
which had accrued on account of payment of the CVD u/s 3(1) of the CTA, 1975
at the time of importation of such bar
shall be restricted to 1/6th of the credit.
The remaining 5/6th of the credit shall be debited from the e-CrL at the time of supply of
such bar/jewellery.
Where such supply has already been made, the debit shall be within one week from the
date of commencement of these Rules.
229
(1) Every registered person entitled to take ITC u/s 140 shall submit a declaration in
FORM GST TRAN-1 within 90 days (extended till 30 Nov, ’17 vide Order No.:
07/2017-GST) of the appointed day, specifying separately the amount of ITC of
eligible duties and taxes to which he is entitled under the provisions of the said
section.
The Commissioner may extend the said period by a further period of upto 90 days.
Moreover, in case the inputs have been received from an EOU or a unit located in
EHTP, the credit shall be allowed to the extent as provided in Rule 3(7) of the
CENVAT Credit Rules, 2004.
(2) Every declaration under (1) above shall –

(a) in the case of a claim u/s 140(2), specify separately the following particulars
in respect of every capital good as on the appointed day –
(i) The tax/duty availed/utilized, and
(ii) The tax/duty yet to be availed/utilized
by way of ITC under each of the existing laws till the appointed day.
(b) in the case of a claim u/s 140(3)/(4)(b)/(6)/(8), specify separately the details
of stock held on the appointed day,
(c) in the case of claim u/s 140(5), furnish the following details –
(i) the name of the supplier, invoice serial no. and date,
(ii) the description and value of the goods/services
(iii) the quantity and the unit/unit quantity code (in case of goods)
(iv) the amount of eligible taxes and duties, or the VAT/ET charged by the
supplier, and
(v) the date on which the receipt of goods/services is entered in the
books of account of the recipient.
(3) The credit specified in FORM GST TRAN-1 shall be credited to the e-CrL of the
applicant maintained in FORM GST PMT-2
(4) (a) (i) In accordance with the proviso to Section 140(3),
a registered person who was not registered under the existing law
shall be allowed to avail the ITC on ED/CVD levied goods
held in stock on the appointed day
for which he does not possesses any document evidencing payment of ED.
(ii) The ITC referred in (i) above shall be allowed @ -
➢ 60% - on goods attracting 9% or more CGST, and
➢ 40% - on other goods
of the CGST applicable on supply of such goods
and shall be credited after the CGST payable on such supply has been paid.
In case IGST is paid on such goods, the amount of credit allowed shall be @
30% and 20% respectively of the said tax.
(iii) The scheme shall be available for 6 tax periods from the appointed date.
(b) The CGST credit shall be availed subject to the following conditions –
(i) Such goods were not
➢ unconditionally exempt from ED or
➢ nil rated in CETA, 1985
(ii) the document for procurement of such goods is available with the registered
person,
(iii) the registered person availing of this scheme submits a statement in FORM
GST TRAN-2 at the end of each of the aforementioned 6 tax periods,
indicating the details of supplied of such goods effected during the tax
period.
(iv) The credit allowed shall be credited to the e-CrL of the applicant, and
230
(v) The stock of goods on which the credit is availed is stored in an easily
identifiable manner.
The amount credited under Rule 117(3) may be verified and proceedings u/s 73/74 shall be
initiated in respect of any credit wrongly availed, wholly or partly.
(1) Where any goods on which any ED has been paid at the time of removal
during 6 months prior to the appointed day,
are being returned to any place of business of a registered person
within 6 months after the appointed day,
by an un-registered person,
the said registered person shall be eligible for refund of the ED so paid
if such goods are identifiable to the satisfaction of the PO.
However, in case such goods are returned by a registered person,
the return shall be deemed to be a supply.
(2) (a) Where the price of any goods/services is revised upwards on or after 01 July, ‘17
due to a contract entered into before the said day,
the registered person who had removed such goods/ provided such services
shall issue a supplementary invoice/ dr. note to the recipient
within 30 days of such price revision
and such supplementary invoice/ dr. note shall be deemed to have been issued
in respect of an outward supply made under this Act.
(b) Where the price of any goods/services is revised downwards on or after
01 July, ‘17
due to a contract entered into before the said day,
the registered person who had removed such goods/ provided such services
may issue a cr. note to the recipient
within 30 days of such price revision
and such cr. note shall be deemed to have been issued
in respect of an outward supply made under this Act.
However, the registered person shall be allowed to reduce his OTL
on account of issue of the cr. note
only if the recipient of the said note has reduced his corresponding ITC.
(3) Every claim for refund of any CENVAT credit/duty/tax/interest/any other amount paid
under the existing law
filed by any person before, on or after the appointed day
shall be disposed of as per the previous laws
and any amount eventually accruing to him shall be paid in cash
overruling anything to the contrary contained under the previous laws
except for Section 11B(2) of the CEA, 1944.
However, any fully/partially rejected claim for refund of CENVAT credit shall lapse.
Moreover, no such refund of CENVAT credit shall be allowed where the balance as on
the appointed day has been carried forward under this Act.
231
(4) Every refund claim of any duty/tax paid under the previous indirect tax laws
filed in respect of goods/services exported before or after the appointed day
shall be disposed of as per the previous laws.
However, any fully/partially rejected claim for refund of CENVAT credit shall lapse.
Moreover, no such refund of CENVAT credit shall be allowed where the balance as on
the appointed day has been carried forward under this Act.
(5) Every refund claim of ST paid under the previous laws

filed in respect of services not provided
and any amount eventually accruing to him shall be paid in cash
except for Section 11B(2) of the CEA, 1944.
(6) (a) Every appeal/review/reference proceeding relating to a CENVAT credit claim

initiated before, on or after the appointed day under the previous laws
and any amount of credit found admissible to him shall be refunded in cash
except for Section 11B(2) of the CEA, 1944
and any amount rejected shall not be admissible as ITC under this Act.
However, no such refund of CENVAT credit shall be allowed where the balance
as on the appointed day has been carried forward under this Act.
(b) Every appeal/review/reference proceeding relating to recovery of CENVAT
credit
initiated before, on or after the appointed day under the previous laws
and if any amount of credit becomes recoverable as a result of such
appeal/review/reference
the same shall be recovered as an arrear of tax under this Act
unless it is recovered under the existing law
and the amount so recovered shall not be admissible as ITC under this Act
(7) (a) Every appeal/review/reference proceeding relating to any output duty/tax

liability initiated before, on or after the appointed day under the previous laws
and if any amount becomes recoverable as a result of such
appeal/review/reference
the same shall be recovered as an arrear of duty/tax under this Act
and the amount so recovered shall not be admissible as ITC under this Act.
(b) Every appeal/review/reference proceeding relating to any output duty/tax
liability initiated before, on or after the appointed day under the previous laws
and if any amount is found admissible to him, it shall be refunded in cash
(8) (a) Where as a result of an assessment/adjudication proceedings instituted under

the existing law before/on/after the appointed day
any amount of tax/interest/fine/penalty becomes recoverable,
232

(b) Where as a result of an assessment/adjudication proceedings instituted under
the existing law before/on/after the appointed day
any amount of tax/interest/fine/penalty becomes refundable,
the same shall be refunded in cash under the said law
(9) (a) Where any return furnished under the existing law is revised after the
appointed day, and as a result of such revision
any amount is found recoverable or
any amount of CENVAT credit is found inadmissible,
(b) Where any return furnished under the existing law is revised after the
appointed day, and as a result of such revision
any amount is found refundable or
any amount of CENVAT credit is found admissible,
the same shall be refunded in cash under the said law
(10) Except for the cases provided to the contrary in this Chapter,
the goods/services supplied on or after the appointed day
under a contract entered into before the appointed day
shall be liable to tax under this Act.
(11) (a) Overruling Section 12, no tax shall be payable on goods under this Act
to the extent tax was leviable on the said goods under the VAT Act of the State.
(b) Overruling Section 13, no tax shall be payable on services under this Act
to the extent tax was leviable on the said services under the FA, 1994.
(c) Where tax was paid on any supply both under the VAT Act and the FA, 1994,
GST shall be leviable under this Act
and the taxable person shall be entitled to take credit of VAT and ST
paid under the existing law
to the extent of supplies made after the appointed day
and such credit shall be calculated in the prescribed manner.
(12) Where any goods sent on approval basis

within 6 months before the appointed day
are rejected/not approved by the buyer and returned to the seller
within 6 months after the appointed day
no tax shall be payable thereon.
not exceeding 2 months.
Moreover, in case the goods are returned after the specified period
the tax shall be payable by the person returning the goods
if such goods are liable to tax under this Act.
233
Also, the tax shall be payable by the person who has sent the goods on approval basis
if such goods are liable to tax under this Act
and are not returned.
(13) Where a supplier has sold any goods in respect of which

tax was required to be deducted at source
under any VAT law of a state/UT
and has also issued an invoice for the same before the appointed day,
no TDS shall be made u/s 51 by the deductor under the said section
where the payment to the said supplier is made on or after the appointed day.
Every person to whom Section 142(11)(c) applies,

shall submit a declaration in FORM GST TRAN-1
within the period specified in Rule 117 (or as extended),
furnishing the proportion of supply on which VAT/ST has been paid before the appointed
day
but the supply is made after the appointed day and the ITC admissible.
Every person having sent goods on approval under the existing law
and to whom section 142(12) applies
shall submit details of such goods set on approval in FORM GST TRAN-1
within the period specified in Rule 117 (or as extended).
Every registered person who has submitted a declaration in FORM GST TRAN-1 within the
time period specified in Rule 117, 118, 119 and 120 may revise such declaration once and
submit the revised declaration in FORM GST TRAN-1 within the time period specified in the
said rules or as extended.
234
CGSTA, 2017
• Section 144: Presumption as to documents in certain cases
• Section 145: Admissibility of micro films, facsimile copies of documents and
computer print outs as documents and as evidence
• Section 146: Common Portal
• Section 147: Deemed Exports
• Section 148: Special procedure for certain processes
• Section 149: Goods and services tax compliance rating
• Section 150: Obligation to furnish information return
• Section 151: Power to collect statistics
• Section 152: Bar on disclosure of information
• Section 153: Taking assistance from an expert
• Section 154: Power to take samples
• Section 155: Burden of proof
• Section 156: Persons deemed to be public servants
• Section 157: Protection of action taken under this Act
• Section 158: Disclosure of information by a public servant
• Section 159: Publication of information in respect of persons in certain cases
• Section 160: Assessment proceedings etc. not to be invalid on certain grounds
• Section 161: Rectification of errors apparent on the face of record
• Section 162: Bar on jurisdiction of civil courts
• Section 163: Levy of fee
• Section 169: Service of notice in certain circumstances
• Section 170: Rounding off of tax, etc.
• Section 171: Anti-profiteering measure
• Section 172: Removal of difficulties
• Section 173: Amendment of Act 32 of 1994
• Section 174: Repeal and saving
Where any document –

(i) is produced by any person under any Act
(ii) has been seized from the custody/control of any person under any Act
(iii) has been received from any place outside India in the course of any proceedings under
any Act
and such document is tendered by the prosecution in evidence against him or any other
person being tried jointly with him, the court shall –
(a) unless the contrary is proved by such person, presume –
(i) that the contents of such document are true
(ii) that the signature and every other part of such document which purports to be
in the handwriting of any particular person, or it has been reasonably assumed
by the court to be as such, is in that person’s handwriting, and in case a
235
document is executed or attested, that it was done so by whom it purports to

have been executed or attested.
(b) admit the document in evidence without considering that it is not duly stamped, if it is
otherwise admissible in evidence.
(1) Overruling any other law –

(a) A micro film of a document or the reproduction of the image/images embodied
in such micro film, or
(b) A fax copy of a document, or
(c) A statement contained in a document and included in a printed material
produced by a computer, subject to prescribed conditions, or
(d) Any information stored electronically on any device or media, including their
hard copies
shall be deemed to be a document for the purposes of this Act, admissible as
independent evidence in any proceedings.
(2) In any proceedings under GST Act, where it is desired to give a statement in evidence
by virtue of this section, a certificate –
(a) identifying the document containing the statement and describing the manner in
which it was produced
(b) giving appropriate particulars of the device involved in production of that
document to show that it was produced by a computer
shall be evidence of any matter stated in the certificate and for the purposes of this
sub-section for a matter to be stated to the best of the knowledge and belief of the
person stating it.
The Government may notify the Common GST e-Portal for facilitating registration, payment of
tax, furnishing of returns, computation and settlement of IGST, e-way bill and for carrying out
other prescribed functions and purposes.
Notfn. No.: 4/2017-CT

The CG has notified www.gst.gov.in, the website managed by the GSTN, as the Common
GST e-Portal for facilitating registration, payment of tax, furnishing of returns, computation
and settlement of IGST and e-way bill.
The Government may notify certain supplies of goods as deemed exports, where goods
supplied do not leave India, and payment for such supplies is received either in INR or in
convertible foreign exchange, if such goods are manufactured in India.
Subject to prescribed conditions and safeguards the Government may notify certain classes of
registered persons and the special procedures to be followed by such persons including those
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with regard to registration, furnishing of return, payment of tax and administration of such
persons.
(1) Every registered person may be assigned a GST compliance rating score by the
Government based on his record of compliance with the provisions of this Act.
(2) The GST compliance rating score may be determined on the basis of prescribed
parameters.
(3) The GST compliance rating score may be updated at periodic intervals and intimated to
the registered person and also placed in the public domain in prescribed manner.
(1) Any person being –

(a) a taxable person, or
(b) A local authority or other public body or association, or
(c) any authority of the SG responsible for the collection of VAT or sales tax or
State excise duty or an authority of the CG responsible for the collection of
excise duty or customs duty; or
(d) an IT authority, or
(e) a banking company; or
(f) a State Electricity Board or an electricity distribution or transmission licensee
under the Electricity Act, 2003, or any other entity entrusted with such
functions by the CG/SG; or
(g) the Registrar or Sub-Registrar appointed under section 6 of the Registration Act,
1908; or
(h) a Registrar of Companies; or
(i) the registering authority empowered to register motor vehicles under the Motor
Vehicles Act, 1988; or
(j) the Collector, or
(k) the recognised stock exchange, or
(l) a depository; or
(m) an officer of the RBI; or
(n) the GSTN, or
(o) a person to whom a UIN has been granted; or
(p) any other person as may be specified, on the recommendations of the Council,
by the Government,
who is responsible for maintaining
o record of registration or
o statement of accounts or
o any periodic return/document containing details of payment of tax and other
details of transaction of goods/services or
o transactions related to bank account or
o consumption of electricity or
o transaction of purchase, sale or exchange of goods/property or right/interest in
a property
shall furnish an information return of the same for prescribed period and within
prescribed time.
237
(2) Where the Commissioner, or an officer authorized by him, considers that the
information so furnished is defective, he may intimate the provider of such information
return and give him an opportunity of rectifying the defect within 30 days of such
intimation (extendible on application).
In case he fails to do so within the prescribed time, then overruling the Act, such
information return shall be treated as not furnished and the provisions of this Act shall
apply accordingly.
(3) Where a person who is required to furnish information return has not furnished the
same within the specified time, the said authority may serve upon him a notice
requiring furnishing such information return within 90 days from the date of service of
notice and such person shall furnish the information return.
(1) The Commissioner may, by notification, direct that statistics may be collected relating
to any matter dealt with by or in connection with this Act.
(2) Upon such notification, the Commissioner, or any person authorized by him, may call
upon the concerned persons to furnish such information or returns in the prescribed
manner relating to any matter in respect of which statistics is to be collected.
(1) No information of any individual return or any part thereof with respect to any matter
given for Section 150/151, shall be published in a manner enabling the identification of
its relation with any particular person without prior consent of the concerned person or
his authorized rep in writing. Also, no such information shall be used for the purpose of
any proceedings under this Act.
(2) Except for prosecution under any Act, no person who is not engaged in the collection
of statistics under this Act or compilation/computerization of the same shall be
permitted to see or have access to any information or any individual return referred to
in Section 151.
(3) This section shall not apply to the publication of any information relating to a class of
taxable persons or class of transactions, if in the opinion of the Commissioner, it is
desirable in the public interest to publish such information.
Any officer ranking AC and above may take assistance of any expert at any stage of scrutiny,
inquiry, investigation or any other proceedings before him having regard to the nature and
complexity of the case and the interest of revenue.
238
The Commissioner or an officer authorised by him may take samples of goods from the
possession of any taxable person, where he considers it necessary, and provide a receipt for
any samples so taken.
Where any person claims that he is eligible for ITC under this Act, the burden of proving such
claim shall lie on such person.
All persons discharging functions under this Act shall be deemed to be public servants within
the meaning of section 21 of the IPC.
(1) No suit, prosecution or other legal proceedings shall lie against the President/State
President/Members/officers/other employees of the AT or any other person authorised
by the said AT for anything which is in good faith done or intended to be done under
this Act.
(2) No suit, prosecution or other legal proceedings shall lie against any officer
appointed/authorised under this Act for anything which is done or intended to be done
in good faith under this Act.
(1) All particulars contained in any statement made, return furnished or

accounts/documents produced or in any record of evidence given in the course of any
proceedings under this Act, except for proceedings before a criminal court, or in any
record of any proceedings under this Act shall not be disclosed, except for as provided
in sub-section (3).
(2) Overruling the Indian Evidence Act, 1872, no court shall require any officer of this Act to
produce before it or to give evidence before it in respect of particulars referred in sub-
section (1), except as provided in sub-section (3)
(3) This section shall not apply to the disclosure of –

(a) Any particulars in respect of any statement, return, accounts, documents,
evidence, affidavit or deposition, for any prosecution under the IPC or the
Prevention of Corruption Act, 1988, or any other law, or
(b) Any particulars to the CG/SG or to any person acting in the implementation of
this Act, for carrying out the objects of this Act, or
(c) Any particulars when such disclosure is caused by the lawful exercise of any
process for the service of any notice or recovery of any demand under this Act,
or
239
(d) Any particulars to a civil court in any suit or proceedings, to which the
Government or any authority under this Act is a party, which relates to any
matter arising out of any proceedings under any law authorizing any such
authority to exercise any powers thereunder, or
(e) Any particulars to any officer appointed for audit of tax receipts or refunds of
the tax imposed by this Act; or
(f) Any particulars relevant for any inquiry into the conduct of any officer
appointed/authorised under this Act, to any person(s) appointed as an inquiry
officer under any law; or
(g) Any such particulars to an officer of the CG/SG, as may be necessary to enable
that Government to levy or realise any tax or duty; or
(h) Any particulars when such disclosure is caused by the lawful exercise by a
public servant or any other statutory authority, of his or its powers under any
law; or
(i) Any particulars relevant to any inquiry into a charge of misconduct in
connection with any proceedings under this Act against
▪ a practising advocate,
▪ a tax practitioner,
▪ a practising cost accountant,
▪ a practising chartered accountant,
▪ a practising company secretary
to the authority empowered to take disciplinary action against the members
practising the profession of a legal practitioner, a cost accountant, a chartered
accountant or a company secretary, as the case may be; or
(j) Any particulars to any agency appointed for data entry on any automated
system or for operating/upgrading/maintaining any automated system where
such agency is contractually bound not to use/disclose such particulars except
for the aforesaid purposes; or
(k) Any particulars to an officer of the Government as may be necessary for the
purposes of any other law; or
(l) Any information relating to any class of taxable persons or class of transactions
for publication, if, in the opinion of the Commissioner, it is desirable in the
public interest, to publish such information.
(1) If the Commissioner or any officer authorized by him is of the opinion that it is in the
public interest to publish the name of any person and any other particulars relating to
any proceedings/prosecution under this Act in respect of such person, he may get such
name and particulars published.
(2) No publication shall be made in relation to any penalty imposed under this Act until the
time for presenting an appeal to the AT u/s 107 has expired without an appeal being
presented, or if presented, has been disposed of.
In case of firm/company/AOP, the names of the
o Partners
o Directors
o Managing agents
o Secretaries
o Treasurers/managers
o Members
may also be published if justified by the circumstances.
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(1) No assessment, re-assessment, adjudication, review, revision, appeal, rectification,

notice, summons or other proceedings done, accepted, made, issued, initiated in
pursuance of this Act shall be invalid or deemed to be invalid merely by reason of any
mistake, defect or omission therein, if such proceedings are in substance and effect in
conformity with or according to the intents, purposes and requirements of this Act or
any existing law.
(2) The service of any notice, order or communication shall not be called in question, if the
notice, order or communication, as the case may be, has already been acted upon by
the person to whom it is issued or where such service has not been called in question
at or in the earlier proceedings commenced, continued or finalised pursuant to such
notice, order or communication.
Subject to Section 160 but overruling the rest of the Act, any authority who has issued any
decision/order/notice/certificate/any other document may rectify any error which is apparent
on the face of record in such document, either on its own motion or where such error is
brought to its notice by any officer appointed under CGSTA/SGSTA/UTGSTA or by the affected
person within3 months from the date of issue of such document.
However, no such rectification shall be done after 6 months of the issue of such document,
except where it is purely in the nature of correction of clerical/arithmetical error, arising due to
some accidental slip or omission.
If such rectification adversely affects any person, the principles of natural justice shall be
followed by the correcting authority.
Subject to sections 117 and 118, no civil court shall have jurisdiction to deal with or decide any
question arising from or relating to anything done or purported to be done under this Act.
Wherever a copy of any order or document is to be provided to any person on an application

made by him for that purpose, there shall be paid such fee as may be prescribed.
(1) Any decision, order, summons, notice or other communication under this Act shall be
served by any one of the following methods —
(a) by giving it directly or by a messenger including a courier to
▪ the addressee or
▪ the taxable person or
241
▪ his manager/authorised representative /an advocate/a tax practitioner

holding authority to appear in the proceedings on behalf of the taxable
person or
▪ a person regularly employed by him in connection with the business, or
▪ any adult member of family residing with the taxable person;
(b) by registered post or speed post or courier with acknowledgement due, to the
person for whom it is intended or his authorised representative, if any, at his last
known place of business or residence; or
(c) by sending a communication to his e-mail address provided at the time of
registration or as amended from time to time; or
(d) by making it available on the common portal; or
(e) by publication in a newspaper circulating in the locality in which the taxable
person or the person to whom it is issued is last known to have resided, carried
on business or personally worked for gain; or
(f) if none of the modes aforesaid is practicable, by affixing it in some conspicuous
place at his last known place of business or residence and if such mode is not
practicable for any reason, then by affixing a copy thereof on the notice board
of the office of the concerned officer or authority who or which passed such
decision or order or issued such summons or notice.
(2) Every decision, order, summons, notice or any communication shall be deemed to
have been served on the date on which it is tendered or published or a copy thereof is
affixed in the manner provided in sub-section (1).
(3) When such decision, order, summons, notice or any communication is sent by
registered post or speed post, it shall be deemed to have been received by the
addressee at the expiry of the period normally taken by such post in transit unless the
contrary is proved.
The amount of tax, interest, penalty, fine or any other sum payable, and the amount of refund
or any other sum due, under the provisions of this Act shall be rounded off to the nearest rupee
and, for this purpose, where such amount contains a part of a rupee consisting of paise, then, if
such part is 50p or more, it shall be increased to ₹ 1 and if such part is less than 50p it shall be
ignored.
(1) Any reduction in rate of tax on any supply of goods/services or the benefit of ITC shall
be passed on to the recipient by way of commensurate reduction in prices.
(2) The CG may by notification, constitute an Authority, or empower an existing Authority

constituted under any law, to examine whether ITC availed by any registered person or
the reduction in the tax rate have actually resulted in a commensurate reduction in the
price of the goods/services supplied by him.
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The National Anti-Profiteering Authority shall consist of –

(a) a Chairman who holds or has held a post equivalent in rank to a Secretary to the GOI,
and
(b) 4 Technical Members who are or have been Commissioners of SGST/CGST for at
least 1 year
OR
have held an equivalent post under the previous indirect tax laws
(to be nominated by the Council)
(1) The Council may constitute a Standing Committee on Anti-profiteering

which shall consist of the officers nominated by CG and SG.
(2) The SG of each state shall constitute a State level Screening Committee
which shall consist of –
(a) 1 officer of the SG to be nominated by the Commissioner, and
(b) 1 officer of the CG to be nominated by the Chief Commissioner
243
(1) The Chairman and Members of the Authority shall be appointed by the CG
on the recommendations of a Selection Committee constituted by the Council.
(2) The Chairman shall be paid a salary of ₹2,25,000 p.m.

and other allowance and benefits admissible to a CG officer with equivalent pay.
However, in case the Chairman is a retired officer,
the salary shall be reduced by the amount of pension.
(3) The Technical Member shall be paid a monthly salary and other allowances and
benefits as are admissible to him when holding an equivalent Group ‘A’ post in the
GOI.
However, where a retired officer is selected as a Technical Member,
his monthly salary shall be the last drawn salary reduced by the amount of pension
in accordance with the recommendations of the 7th Pay Commission
as accepted by the CG.
Tenure of Earlier of… Eligible for

Reappointment
(4) The Chairman 2 yrs. or until he is 65 yrs. of Yes
age*
(5) The Technical Member 2 yrs. or until he is 65 yrs. of Yes
age*
*NOTE: The Chairman/Technical Member shall not be selected if he has attained 62
yrs. of age.
Moreover, on recommendation of the Council, the CG may terminate the appointment
of the Chairman/Technical Member at any time, subject to an opportunity of being
heard.
The ADG of Safeguards under the CBEC shall be the Secretary to the Authority.
The Authority may determine the methodology and procedure to determine

whether the benefit of reduction in tax rate or ITC has been passed on
by the registered person to the recipient
by way of commensurate reduction in prices.
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The Authority shall –

(i) determine whether any benefit of reduction in tax rate or ITC
has been passed on to the recipient
by commensurate reduction in prices.
(ii) identify the registered person who has not passed on such benefits
(iii) order
(a) reduction in prices
(b) return of the amount not passed on by way of commensurate reduction in
prices
along with interest @ 18% from the date of collection till the date of return
OR
recovery of the said amount, in case the eligible person does not claim the
return or is not identifiable,
and depositing the same in the CWF.
(c) Imposition of penalty as specified in the Act, and
(d) Cancellation of registration under the Act.
(iv) furnish a performance report to the Council by the 10th of the close of each quarter.
(1) Within 2 months from the date of receipt of a written application from
o an inserted party or
o a Commissioner or
o any other person
the Standing Committee shall examine the accuracy and adequacy of the evidence
provided in the application
to determine whether there is prima-facie evidence to support the claim
that the benefit of reduction in the rate of tax or the ITC has not been passed on
to the recipient by commensurate reduction in prices.
(2) All applications from interested parties on issues of local nature

shall first be examined by the State level Screening Committee
and the Committee shall forward the same with its recommendations to the Standing
Committee
upon being satisfied that the supplier has contravened section 171.
245
(1) Where the Standing Committee is satisfied with the prima-facie evidence under Rule
128, it shall refer the matter to the DG of Safeguards for a detailed investigation.
(2) The DG of Safeguards shall conduct investigation and collect necessary evidence to
determine whether the said benefits have been passed on to the recipient.
(3) Before initiation of the investigation, the DG of Safeguards shall issue a notice to the
interest parties containing the following –
(a) The description of the goods/services in respect of which the proceedings
have been initiated.
(b) Summary of the statement of facts on which the allegations are based, and
(c) The time limit allowed to the interested parties and other persons who may
have information related to the proceedings for furnishing their reply
(4) The DG of Safeguards may also issue notices to other persons for a fair enquiry into
the matter.
(5) The DG of Safeguards shall make available the evidence presented to it by one
interested party to the other interested parties who are participating in the
proceedings.
(6) The DG of Safeguards shall complete the investigation within 3 months (or as
extended by upto 3 months) of the receipt of reference from the Standing Committee
and upon completion of the investigation furnish a report of its findings to the
Authority with the relevant records.
(1) The provisions of Section 11 of the RTI Act, 2005 shall apply mutatis mutandis to the
disclosure of any confidential information.
(2) The DG of Safeguards may require the parties providing confidential information to
furnish a non-confidential summary thereof.
In case the party feels it cannot be summarised, the said party may submit a
statement of reasons as to why summarisation is not possible.
The DG of Safeguards may seek opinion of any other agency or statutory authorities.
(1) The DG of Safeguards or an authorized officer shall be deemed to be the PO to

summon any person whose attendance he considers necessary to give evidence or
any other thing u/s 70 and shall have the same power as that of a civil court under
CPC, 1908.
(2) Every such inquiry shall be deemed to be a judicial proceeding u/s 193 and 228 of
IPC.
246
(1) Within 3 months from the date of receipt of DG of Safeguards report, the Authority
shall determine whether a registered person has passed on the benefit of the
reduction in tax rate or ITC to the recipient by commensurate reduction in prices.
(2) An opportunity of hearing shall be granted to the interested parties by the Authority
where any request is received in writing from such interested parties.
(3) Where the Authority determines that such benefit has not been passed on, it may
order -
(a) reduction in prices
(b) return of the amount not passed on by way of commensurate reduction in
prices
along with interest @ 18% from the date of collection till the date of return
OR
recovery of the said amount, in case the eligible person does not claim the
return or is not identifiable,
and depositing the same in the CWF.
(c) Imposition of penalty as specified in the Act, and
(d) Cancellation of registration under the Act.
If the Members of the Authority differ in opinion on any point, the point shall be decided
according to the opinion of the majority.
Any order passed by the Authority shall be immediately complied with by the registered
person
failing which action shall be initiated to recover the amount under the GST laws.
The Authority may require any authority of CGST/SGST/UTGST to monitor the

implementation of the order passed by it.
The National Anti-profiteering Authority shall cease to exist after 2 yrs. from the date on
which the Chairman enters upon his office
unless the Council recommends otherwise.
247
CGSTA, 2017
• Section 67: Power of inspection, search and seizure
• Section 68: Inspection of goods in movement
• Section 70: Power to summon
• Section 71: Access to business premises
• Section 72: Officers to assist PO
(1) Where the PO ranking JC and above

has reasons to believe that –
(a) a taxable person has
▪ suppressed any transaction relating to supply
▪ suppressed the stock of goods in hand
▪ claimed ITC in excess of his entitlement
▪ indulged in contravention of any provisions of the Act or Rules to evade
tax
OR
(b) any person engaged in the business of transporting goods or
an owner/operator of warehouse/godown
is keeping goods which have escaped payment of tax or
has kept his accounts or goods in a manner to evade tax
he may authorize any other officer to inspect any places of business of
o the taxable person,
o the persons engaged in the business of transporting goods, or
o the owner/operator of warehouse/godown.
(2) As a result of inspection or otherwise

where the PO ranking JC and above
has reasons to believe that
any goods liable to confiscation or
any documents/books/things which shall be relevant to any proceedings under the Act
are secreted in any place
he may himself/authorize any other officer to
search and seize such goods/documents/books/things.
However, where it is not practicable to seize any such goods
the PO may serve an order
on the owner/custodian of the goods
that he shall not remove/part with/otherwise deal with the goods
without prior permission of such officer.
Also, the documents/books/things seized
shall be retained only for so long as may be necessary for their examination and for any
inquiry/proceedings under this Act.
248
(3) The documents/books/things referred previously or

any other documents/books/things produced by
the taxable person or any other person
which have not been relied upon for issue of any notice under the Act
shall be returned to such person within 30 days of the issue of said notice.
(4) Where the access to any premises, almirah, electronic devices, box or receptacle is
denied
and it is suspected that
any goods/accounts/registers/documents of the person are concealed in it
the officer authorized u/ss (2) shall have the power to seal or break open the door of
such premises
or to break open any such almirah, electronic devices, box or receptacle.
(5) The person from whose custody any documents are seized
shall be entitled to make copies or take extracts from them
in the presence of an authorized officer
at the time and place indicated by such officer
except where in his opinion
making such copies or taking extracts
may prejudicially affect the investigation
(6) The seized goods shall be released provisionally

upon execution of a bond and furnishing of a security
or on payment of applicable tax, interest and penalty
as the case may be.
(7) Where no notice in respect of the seized goods

is given within 6 months of the seizure,
the goods shall be returned to the person
from whose possession they were seized.
However, on sufficient cause being shown
this period may be extended by the PO
by a period not exceeding 6 months.
(8) Considering the

o Perishable/hazardous nature of any goods
o Depreciation in the value of goods over time
o Constraints of storage space for the goods
o Other relevant conditions
the Government may notify the goods or class of goods
which shall be disposed of by the PO in the prescribed manner
as soon as may be after its seizure.
(9) The PO or any authorized officer

shall prepare an inventory of the seized goods
specified in sub-section (8)
(10) The provisions of the CrPC, 1973 relating to search and seizure
shall apply mutatis mutandis
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(11) Where the PO has reasons to believe that

any person has evaded or is attempting to evade any tax
he may seize the accounts/registers/documents
of such person produced before him
for reasons to be recorded in writing
and grant him a receipt for the same.
These shall be retained for so long as may be necessary
in connection with any proceedings under the Act for prosecution,
(12) The Commissioner or any authorized officer

may cause purchase of any goods/services
by any authorized person from the business premises of any taxable person
to check issue of tax invoices/bills of supply
and on return of goods so purchased
the taxable person shall refund the amount so paid towards the goods
after cancelling any tax invoice/bill of supply issued earlier.
(1) A PO ranking JC and above shall issue an authorization in FORM GST INS-01 to any
subordinate officer to conduct inspection/search/seizure of
goods/documents/books/things liable to confiscation where he has reasons to
believe that any place is to be visited for such purposes.
(2) The PO shall make a seizure order in FORM GST INS-02 where any
goods/documents/books/things are liable to be seized u/s 67(2).
(3) The PO may entrust upon the owner/custodian of seized goods, the custody of such
goods for safe keeping and the said person shall not remove, part with, or otherwise
deal with these goods without prior permission of such officer.
(4) For goods that cannot practicably be seized, the PO may serve an order of
prohibition in FORM GST INS-03 on the owner/custodian of goods that he shall not
remove, part with, or otherwise deal with these goods without prior permission of
the officer.
(5) The officer seizing the goods/documents/books/things shall prepare an inventory of

such goods/documents/books/things containing the description, quantity/unit,
make/model and get it signed by the owner/custodian.
(1) The seized goods may be provisionally released on execution of a bond in FORM GST
INS-04 for the value of the goods and furnishing bank guarantee equivalent to tax,
interest and penalty payable as security.
(2) In case such a person fails to produce the goods at the appointed date and place
indicated by the PO, the security shall be encashed and adjusted against the tax,
interest and penalty and fine.
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(1) In case perishable/hazardous goods are seized, and if the taxable person pays
(a) the MV of such goods or
(b) the tax, interest and penalty payable
whichever is lower,
such goods shall be released immediately by an order in FORM GST INS-05, on
proof of payment.
(2) In case he fails to make such payment, the Commissioner may dispose of such goods
and the realization shall be adjusted against the amount payable.
(1) The Government may require the PIC of a conveyance

carrying any consignment of goods of specified value
to carry with him prescribed documents and devices.
(2) The details of documents required to be carried u/ss (1)

shall be validated in prescribed manner.
(3) Where any conveyance referred u/ss (1) is intercepted by PO

he may require the PIC to produce the documents and devices for verification, and the
said person shall be liable to produce the same and also allow the inspection of goods.
(1) The PO shall have power to summon any person

whose attendance he considers necessary
to produce evidence/document/any other thing
in any inquiry in the same manner as CrPC
(2) Every such inquiry shall be deemed to be a “judicial proceeding”
within the meaning of Section 193 and 228 of IPC.
(1) Any officer authorized by PO ranking JC and above

shall have access to any place of business of a registered person to inspect books of
account, documents, computers, computer programs, computer software (installed or
not)
and other things required/available at such place
for carrying out any audit, scrutiny, verification and checks
to safeguard the interest of revenue
(2) Every PIC of such place shall make available to the authorized officer, or the audit
party/CA/CMA nominated u/s 66
the following documents for scrutiny
within 15 days from the day of demand (or as extended) –
(i) Records prepared/maintained by the registered person
and declared to the PO in the prescribed manner,
251
(ii) Trial balance or its equivalent

(iii) Annual financial statements, duly audited, wherever required
(iv) Cost audit report u/s 148 of CA, 2013
(v) The income tax audit report u/s 44AB of the IT Act, 1961
(vi) Any other relevant record
All officers of Police, Railways, Customs, and those officers engaged in the collection of land
revenue, including village officers, officers of SGST/UTGST, shall assist PO in implementation of
this Act.
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CGSTA, 2017
• Section 122: Penalty for certain offences
• Section 123: Penalty for failure to furnish information return
• Section 124: Fine for failure to furnish statistics
• Section 125: General Penalty
• Section 126: General disciplines related to penalty
• Section 127: Power to impose penalty in certain cases
• Section 128: Power to waive penalty or fee or both
• Section 129: Detention, seizure and release of goods and conveyances in transit
• Section 130: Confiscation of goods or conveyances and levy of penalty
• Section 131: Confiscation or penalty not to interfere with other punishments
• Section 132: Punishment for certain offences
• Section 69: Power to Arrest
• Section 133: Liability of officers and certain other persons
• Section 134: Cognizance of offences
• Section 135: Presumption of culpable mental state
• Section 136: Relevancy of statements under certain circumstances
• Section 137: Offences by companies
• Section 138: Compounding of offences
(1)
Offences Penalty
(i) Supply goods/services without issuing any invoice
OR
Issue an incorrect/false invoice for any such supply
(ii) Issue invoice/bill without supply of goods/services
(iii) Collect tax but fail to pay the same to the Government
beyond 3 months of such payment becoming due.
(iv) Collect any tax in contravention of the Act but fail to
pay the same to the Government beyond 3 months of
such payment becoming due
(v) o Fail to deduct tax u/s 51(1)
o Deduct less tax than required u/s 51(1)
o Fail to pay the tax deducted to the Government
u/s 51(2)
(vi) o Fail to collect tax u/s 52(1)
o Collect less tax than required u/s 52(1) Higher of
o Fail to pay the tax collected to the Government o ₹10,000
u/s 52(3) o Tax evaded
(vii) Utilize full or part ITC without actual receipt of o Tax not/short
goods/services deducted u/s 51 or
(viii) Fraudulently obtain any refund deducted but not
(ix) Distribute ITC in contravention of Section 20 paid to the
(x) o Falsify/substitute financial records or Government
253
o Produce fake accounts/documents o Tax not/short

o Furnish any false information/return collected u/s 52 or
with an intention to evade tax collected but not
(xi) Fail to obtain registration despite being liable to the paid to the
same Government
(xii) Furnish any false information regarding registration o ITC availed/passed
particulars at the time of applying for registration, or on/distributed
subsequently irregularly
(xiii) Obstruct or prevent any GST officer in discharge of o Refund claimed
his duties fraudulently
(xiv) Transport any taxable goods without the cover of
specified documents
(xv) Suppress turnover in order to evade tax
(xvi) Fail to keep/maintain/retain books of accounts and
other specified documents
(xvii) o Fail to furnish
o Furnish false
Information/documents during any proceedings
(xviii) Supply/transport/store any goods which are liable to
confiscation
(xix) Issue any invoice by using the regn. no. of another
registered person.
(xx) Tamper with or destroy any material evidence
(xxi) Dispose of/tamper with any
detained/seized/attached goods
(2) Any registered person who supplies any goods/services on which any
(a) tax
▪ has not been paid,
▪ short paid or
▪ erroneously refunded; or
(b) ITC has been wrongly
▪ availed or
▪ utilized
For reason Penalty
(a) other than Higher of
▪ fraud or ▪ ₹10,000 or
▪ any wilful-misstatement or ▪ 10% of the tax due from
▪ suppression of facts such person
to evade tax
(b) of Higher of
▪ fraud or ▪ ₹10,000 or
▪ any wilful-misstatement or ▪ the tax due from such
▪ suppression of facts person
to evade tax
(3)
Any person who - Shall be liable to a penalty of
(a) aids/abets any of the offences u/ss (1)
(b) possesses or in any way concerns himself in

▪ transporting
▪ removing
▪ depositing
254
▪ keeping ₹25,000 max.

▪ concealing
▪ supplying
▪ purchasing
▪ dealing in any other way
goods which he knows are liable to confiscation under
this Act
(c) receives or is in any way concerned with the supply of
services which he knows are in contravention of this
Act.
(d) fails to appear before the GST officer when issued with
a summon for the same
(e) fails to issue invoice or account for an invoice in his
books
If a person who is required to furnish an information return u/s 150 fails to do so

within the period specified in the notice issued u/s 150(3),
the PO may direct that
such person shall be liable to pay a penalty of
o ₹100/day OR
o ₹5,000
whichever is lower.
If any person required to furnish any information/return u/s 151 –

➢ fails to furnish the same without any reasonable cause, or
➢ furnishes false information/return wilfully
he shall be punishable with a fine
which may extend to ₹10,000
and in case of a continuing offence
to a further fine which may extend to
o ₹100 per day after the first day, OR
o ₹25,000
whichever is lower.
Any person contravening any provision of this Act

for which no penalty is separately provided for anywhere
shall be liable to pay a penalty extending to ₹25,000.
(1) No penalty shall be imposed for minor breaches of tax regulations or procedural
requirements,
255
particularly, any omission/mistake in documentation which is easily rectifiable and

made without any fraud intent or gross negligence.
NOTE: (a) Minor breach = Tax involved in breach < ₹5,000.
(b) Easily rectifiable omission/mistake = Error apparent on the face of record.
(2) The penalty imposed shall depend on the facts and circumstances of each case
and shall be commensurate with the degree and severity of the breach.
(3) No penalty shall be imposed on any person without giving him an opportunity of being
heard.
(4) While imposing penalty in an order, the officer shall specify the nature of the breach
and the applicable law, regulation or procedure under which the penalty for breach has
been specified.
(5) When a person voluntarily discloses the circumstances of a breach to an officer

prior to the discovery of the breach
the PO may consider this fact as a mitigating factor while quantifying a penalty for that
person.
(6) This section shall not apply in cases where

the penalty specified is
o either a fixed sum or
o a fixed percentage.
Where the PO is satisfied that a person is liable to be penalised

and the same is not covered under proceedings in section 62/63/64/73/74/129/130
he may issue an order levying such penalty
after giving the person an opportunity of being heard.
On the recommendation of the Council,

the Government may notify the waiver of any
o penalty referred u/s 122/123/125 or
o late fee referred u/s 47
for a specified class of taxpayers
under the specified mitigating circumstances.
(1) Overruling this Act, where any person

o Transports any goods or
o Stores any goods while in transit
in contravention to the Act,
all such goods and conveyances
and the documents relating to such goods and conveyances
256
shall be liable to be detained/seized,

and shall be released –
(a) where the owner of the goods comes forward for payment of tax and penalty -
▪ in case of taxable goods – on payment of applicable tax + penalty (100%
tax payable)
▪ in case of exempted goods – on payment of
➢ 2% of the value of goods or
➢ ₹25,000
whichever is less
(b) where the owner of the goods does not come forward for payment of tax and
penalty –
▪ in case of taxable goods – on payment of applicable tax + penalty (50%
of value – tax paid)
▪ in case of exempted goods – on payment of
➢ 5% of the value of goods or
➢ ₹25,000
whichever is less
(c) upon furnishing a security equivalent to the amount payable under (a)/(b) in the
prescribed form.
However, no such goods/conveyances shall be detained/seized without serving an
order of detention/seizure on the person transporting the goods.
(2) Section 67(6) shall apply for detention and seizure mutatis mutandis.
(3) The PO detaining/seizing goods/conveyances

shall first issue a notice specifying the tax and penalty
and then an order for payment of the same
under clause (a)/(b)/(c)
(4) No tax, interest or penalty u/ss (3) shall be determined

without giving the person an opportunity of being heard.
(5) On payment of amount referred in (1) above,

all proceedings in respect of the notice specified in (3)
shall be deemed to be concluded.
(6) Where the person transporting any goods

or the owner of the goods
fails to pay the tax and penalty u/ss (1)
within 7 days of such detention/seizure,
further proceedings shall be initiated u/s 130.
However, where the detained/seized goods are perishable/hazardous in nature
or are likely to depreciate in value with passage of time,
the said period may be reduced by the PO.
(1) Overruling this Act, if any person –

o supplies/received any goods in contravention of the Act in order to evade tax,
or
o does not account for any goods on which he is liable to pay tax, or
257
o supplies any goods liable to tax without having applied for registration, or
o contravenes this Act in order to evade tax, or
o uses any conveyance for transporting goods in contravention of the Act
unless the owner of the conveyance proves that it was so used without the
knowledge of
▪ the owner,
▪ his agent, if any, and
▪ the PIC of the conveyance.
then, all such goods/conveyances shall be liable to confiscation
and the defaulting person shall be liable to penalty u/s 122.
(2) Whenever any goods/conveyance is confiscated under this Act,

the owner of the goods shall be given an option
to pay a befitting fine in lieu of confiscation.
However, such fine shall not exceed (the MV of the goods confiscated – the tax
chargeable)
Moreover, fine + penalty leviable ≥ penalty leviable u/s 129(1).
Also, where any such conveyance is used for carriage of goods/passengers for hire,
the owner of the conveyance shall be given an option
to pay a fine equal to the tax payable on the goods being transported in lieu of
confiscation.
(3) In addition to the fine in lieu of confiscation imposed u/ss (2),

the owner of the goods/conveyance shall be liable to any tax, penalty and charges
payable.
(4) No order for

o confiscation of goods/conveyance
o imposition of penalty
shall be issued without giving the person an opportunity of being heard.
(5) Where any goods/conveyance are confiscated under this Act,

the title of such goods/conveyance shall vest in the Government.
(6) The PO adjudging confiscation shall hold possession of the things confiscated
and on his request, every police officer shall assist him in holding such possession.
(7) After being satisfied that the confiscated goods/conveyance are not required in any
other proceedings,
the PO may dispose such goods/conveyance
after giving reasonable time not exceeding 3 months to pay fine in lieu of confiscation,
and the sale proceeds shall be deposited with the Government.
Without adversely affecting the CrPC, 1973,

the confiscation made/penalty imposed under this Act
shall prevent the infliction of any other punishment
to which the defaulter is liable
under this act or any other law.
258
(1)
Offences Punishment
(a) Supply goods/services without issuing any
invoice in order to evade tax
(b) Issue invoice/bill without supply of
goods/services leading to wrongful
utilization of ITC or refund of tax.
(c) Avail ITC using the invoices referred to in
(b) above
(d) Collect any tax but fail to pay the same to
the Government beyond 3 months of such
payment becoming due
(e) o Evade tax
o Fraudulently avail ITC
o Fraudulently obtain refund In cases where the
in cases not covered under (a) – (d) above o tax evaded
(f) o Falsify/substitute financial records or o ITC wrongly availed/utilized
o Produce fake accounts/documents o refund wrongly taken
o Furnish any false information
with an intention to evade tax (i) exceeds ₹500 lakhs -
(g) Obstruct or prevent any GST officer in imprisonment for 6 mths. - 5
discharge of his duties yrs. + fine
(h) Possess or in any way concerns himself in
▪ transporting (ii) is between ₹200 lakhs - ₹500
▪ removing lakhs -
▪ depositing imprisonment for 6 mths. - 3
▪ keeping yrs. + fine
▪ concealing
▪ supplying (iii) is between ₹100 lakhs - ₹200
▪ purchasing lakhs -
▪ dealing in any other way imprisonment for 6 mths. - 1
goods which he knows are liable to yr. + fine
confiscation under this Act
(i) Receive or is in any way concerned with
the supply of services which he knows are In case of (f)/(g)/(j) –
in contravention of this Act.
(j) Tamper with or destroy any material (iv) imprisonment for upto 6
evidence months
(k) o Fail to furnish OR
o Furnish false fine
information which he is required to furnish OR
under the Act both
(l) o Attempt to commit
o Abet the commission of
any of the offences mentioned in (a) to (k)
(2) In case a person convicted under this section

is again convicted of an offence under this section
he shall be punishable with imprisonment for 6 mths. - 5 yrs. + fine
259
(3) The imprisonment referred in (1)(i)/(ii)/(iii) and (2)

may be for less than 6 months only for special and adequate reasons
to be recorded in the judgement of the Court.
(4) Overruling CrPC, 1973, all offences under this Act

except the ones referred to in (5)
shall be non-cognizable and bailable.
(5) The following offences shall be cognizable and non-bailable –

Offences Involving
(a) Supply goods/services without issuing
any invoice in order to evade tax
(b) Issue invoice/bill without supply of
goods/services leading to wrongful
utilization of ITC or refund of tax.
Amount exceeding ₹500 lakhs
(c) Avail ITC using the invoices referred to
in (b) above
(d) Collect any tax but fail to pay the same
to the Government beyond 3 months
of such payment becoming due
(6) A person shall not be prosecuted under this section

except with the previous sanction of the Commissioner.
NOTE: For the purpose of this Section, “tax” includes CGST/SGST/UTGST/IGST and
Compensation Cess.
(1) The Commissioner may authorize any CGST officer to arrest a person
where he has reasons to believe that the person has committed any offence
specified u/s 132(1)(a)/(b)/(c)/(d)
punishable under (i)/(ii) of sub-section (1), or sub-section (2) of the said section.
(2) Where a person is arrested u/ss (1)

for an offence specified u/s 132(5),
the officer authorized to arrest him
shall inform him of the grounds of arrest
and produce him before a Magistrate within 24 hrs.
(3) Subject to CrPC, 1973 –

(a) Where a person is arrested u/ss (1) for any offence u/s 132(4),
he shall be admitted to bail
or in default of bail, forwarded to the custody of the Magistrate.
(b) In the case of a non-cognizable and bailable offence,
the AC/DC shall have the same powers and subject to same provisions
as an officer in charge of a police station,
for the purpose of releasing an arrested person on bail,
260
(1) Where
(a) any person
▪ engaged in collection of statistics u/s 151 or
▪ compilation/computerization of such statistics
or
(b) any officer of CGST
▪ having access to information specified u/s 150(1)
or
(c) any person engaged with the provision of service on the common portal
or
(d) the agent of common portal
wilfully discloses any information or contents of any return furnished
otherwise than
(e) in execution of his duties under the said sections or
(f) for the purposes of prosecution for an offence under any law
he shall be punishable with
o imprisonment for upto 6 months, or
o fine of upto ₹25,000, or
o both
(2) Any person –

(a) who is a Government servant
shall not be prosecuted for any offence under this section
except with the prior sanction of the Government.
(b) who is not a Government servant
shall not be prosecuted for any offence under this section
except with the prior sanction of the Commissioner.
No court shall take cognizance of any offence punishable under this Act
except with the prior sanction of the Commissioner,
and no court inferior to that of a Magistrate of First Class,
shall try any such offence.
In any prosecution for an offence under this Act

which requires a culpable mental state on the part of the accused,
the court shall presume the existence of such mental state
but it shall be a defence for the accused to prove otherwise.
NOTE: Culpable mental state includes intention, motive, knowledge of a fact, and belief in, or
reason to believe, a fact.
261
A statement made and signed by a person on appearance

in response to any summons issued u/s 70
during any proceeding
shall be relevant in any prosecution for an offence under this Act,
for proving the truth of the facts which it contains
in the following cases –
(a) when the person who made the statement
o is dead or
o cannot be found or
o is incapable of giving evidence or
o is kept out of the way by the adverse party or
o whose presence cannot be obtained without unreasonable delay or expense
or
(b) when the person who made the statement is examined as a witness in the case before
the court
and the court opines to admit the statement as evidence.
(1) Where an offence under this Act is committed by a Company,

every person who was in charge of the conduct of business of the company
at the time the offence was committed,
as well as the company itself,
shall be deemed to be guilty of the offence and
shall be liable to be proceeded against and punished.

where an offence under this Act is committed by a Company
and it is proved that the offence has been committed
with the consent of or is attributable to any negligence on the part of
any director/manager/secretary/other officer
then such officer shall also be deemed to be guilty of that offence
and shall be liable to be proceeded against and punished.
(3) Where an offence under this Act is committed by

a partnership firm/LLP/HUF/trust,
the partner/karta/managing trustee
shall be deemed to be guilty of the offence
and shall be liable to be proceeded against and punished.
Sub-section (2) shall apply to such persons, mutatis mutandis.
(4) This section shall not render any such person liable to any punishment
if he proves that the offence was committed without his knowledge or
that he had exercised all due diligence to prevent such offence.
262
(1) Any offence under this Act may be compounded by the Commissioner
either before or after the institution of prosecution,
on payment of the prescribed compounding amount
by the person accused of the offence to the CG/SG.
However, this section shall not apply to –
(a) a person who has been allowed to compound once
in respect of any offence specified in section 132(1)(a) to (f)
and the offences specified in clause (l) of the said sub-section
which are relatable to the ones specified in (a) to (f).
(b) a person who has been allowed to compound once
in respect of any offence other than the ones specified in (a) above
in respect of supplies of value exceeding ₹1 crore.
(c) a person who has been accused of committing an offence under this Act
which is also an offence under any other law.
(d) a person who has been convicted for an offence under this Act by a court
(e) a person who has been accused of committing an offence specified in section
132(1)(g)/(j)/(k), and
(f) any other prescribed class of persons/offences.
Moreover, any compounding allowed under this section
shall not affect the proceedings instituted under any other law.
Also, compounding shall be allowed only after making payment of tax, interest and
penalty involved in such offences.
(2) The compounding amount prescribed for the offences shall be

o at least
▪ Higher of
➢ ₹10,000 or
➢ 50% of tax involved
and
o at most
▪ Higher of
➢ ₹30,000 or
➢ 150% of tax involved
(3) On payment of the compounding amount determined by the Commissioner,

no further proceedings shall be initiated under this Act
against the accused in respect of the same offence
and any criminal proceedings shall stand abated
if already initiated for the said offence.
263
(1) An applicant may make an application u/s 138(1)

in FORM GST CPD-01 to the Commissioner for compounding of an offence
either before or after the institution of prosecution.
(2) On receipt of the application, the Commissioner shall call for a report from the
concerned officer w.r.t. the particulars furnished in the said application
or any other information relevant for the examination of the application.
(3) By an order in FORM GST CPD-02,

the Commissioner may allow the application indicating the compounding amount
and grant the applicant immunity,
if he is satisfied that the applicant has
o co-operated in the proceedings before him and
o made full and true disclosure of facts of the case
OR
he may reject the application
within 90 days.
(4) The application shall not be decided as per (3) above

without giving the applicant an opportunity of being heard
and recording the grounds of such rejection.
(5) The application shall not be allowed unless

the applicable tax, interest and penalty have been paid.
(6) The applicant shall pay the compounding amount ordered within 30 days of receipt
of FORM GST CPD-02.
(7) In case the applicant fails to pay the compounding amount within the specified time,
the order in FORM GST CPD-02 shall be vitiated and be void.
(8) The immunity granted to a person under (3) above

may be withdrawn by the Commissioner at any time
if he is satisfied that such person had concealed any material particulars
or had given false evidence
during the compounding proceedings.
Thereupon, such person may be tried for the offence that appears to have been
committed by him
and the Act shall apply as if no such immunity had been granted.
264

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QUEST FOR EXCELLENCE

IDT Customs GST Soft Skills PDP

EPCGA Export Promotion Capital Goods Authorization

OTL Output Tax Liability

• Destination based tax on consumption of goods and services.

• Tax on “supply” of goods and/or services.

• Following taxes levied earlier, subsumed under GST

Central Govt. Taxes State Govt. Taxes

• CENVAT/CVD – State VAT set off not possible.

• State VAT – Service Tax set off not possible.

• Cascading Effect of Taxes

• Multiplicity of Duties, Taxes and Cesses.

• SAD credit only available to manufacturer of excisable goods

Intra-state Supplies Inter-state

Earlier (Excise + VAT) Now (CGST + SGST)

What if in our example, the GST rate applicable is 18%?

Earlier (Excise + VAT) Now (CGST + SGST)

Earlier (CST) Now (IGST)

Total ₹ 141.72 Total ₹ 134.40

Transaction Central Government Delhi Government

Supply from Mfr. – Dealer (CGST + SGST) ₹ 6.00 ₹ 6.00

• GST has been enforced nationwide w.e.f. 1 July, 2017.

• Buoyancy to the Government Revenue

• Unified National Market

• Prevention of Cascading Effects

• Reduction in average tax burden

For a consideration Without consideration (as per Sch. I)

• Land and Building –

o Any treatment or process applied on another person’s goods

• Transfer of business assets

• Specific matters to be treated as supply of services –

• Specific matters to be treated as supply of goods –

• Services by an employee to his employer, with respect to his employment.

o any person as a Chairperson/Member/Director of a body established by

• Sale of land and, subject to Schedule II, sale of building.

• Services of funeral, burial, crematorium or mortuary, including transportation of the

• Actionable claims, other than lottery, betting and gambling

Such notified activities or transactions undertaken by

• The Central Government

• Only supply of goods

Composite Supply Mixed Supply

(5) Where a person who has obtained or is required to obtain registration in a

(16) Person [Sec. 2(84) of CGSTA]: includes—

Location of Supplier Place of Supply

• Supply of goods (till they cross the customs frontiers)/services

Supplier – India To or by In the taxable territory

Location of Supplier Place of Supply

• Explanation 1: Where a person has

India Outside India

• Location of supplier is in territorial waters, then such location

• Where supply involves movement of goods

• Where supply does not involve movement of goods

(2) General Provision –

A registered person - Location of the recipient

(3) Immovable Property –

a) Services provided by architects, interior b) Lodging accommodation by a hotel, inn,

- Location at which the immovable property/boat/vessel is located

• If the location of immovable property/boat/vessel is located or intended to be located

• Where the immovable property/boat/vessel is located in

Restaurant and Catering

(5) Services in relation to training and performance appraisal to –

(7) Organization of an event (cultural, educational etc.) including services in relation to a