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Chapter 2
Levy and Collection GST
GST
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REVISION
CA VISHAL BHATTAD 09850850800 1
Circulars & notifications upto 30-04-2018 “business” includes provision by a club, association, society, or any such body (for a
Section 2(17) subscription or any other consideration) of the facilities or benefits to its members.
(Existing Amendments Applicable for Nov 18 & Onwards Exams)
Definition of Goods & Services The term person to include an association of persons or a body of individuals, whether
Section 2(84) incorporated or not, in India or outside India.
Goods :- As per Sec 2(52) of CGST Act, "goods" means every kind of movable property other than
enumerates activities which are to be treated as supply of goods or as supply of
money and securities but includes actionable claim, growing crops, grass and things attached Schedule II services. As per para 7 of Sch II states that supply of goods by any unincorporated
to or forming part of the land which are agreed to be severed before supply or under a contract of association or body of persons to a member thereof for cash, deferred payment or
supply; other valuable consideration shall be treated as supply of goods.
Services As per sec 2(102) of CGST Act, "services" 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 Clarification:- A conjoint reading of the above provisions of the law implies that supply of services by an
other mode, from one form, currency or denomination, to another form, currency or denomination unincorporated association or body of persons (AOP) to a member thereof for cash, deferred payment or
for which a separate consideration is charged; other valuable consideration shall be treated as supply of services.
It is reiterated that the question whether cash calls are taxable or not will entirely depend on the facts and
Clarification on certain issues related to Banking & Financial Services via Circulars circumstances of each case.
Issue: Cash calls in joint venture Is merely a transaction in money and hence not a supply
Whether Priority Sector Lending Certificates (PSLCs) are outside the purview of GST and therefore not
taxable? [Circular no. 34/8/2018 dt 01/03/2018] Cash Calls in nature of advance cash calls pooled by a JV towards taxable services received from a
member or a third party is in the nature of consideration & hence attracts GST
for supply of service
Clarification :
In Reserve Bank of India FAQ on PSLC,
it has been mentioned that PSLC may be construed to be in the nature of goods, dealing in which has 'Cash calls' are raised by an operating member of the joint venture on other members in proportion to their
been notified as a permissible activity under section 6(1) of the Banking Regulation Act, 1949 vide Government participating interests in the joint venture (unincorporated) to meet the expenditure on the operations to be
of India notification dated 4th February, 2016. PSLC are not securities. PSLC are akin to freely tradeable duty carried out as per the approved work programme and budget. Taxability of cash calls can be further
scrips, Renewable Energy Certificates, REP license or replenishment license, which attracted VAT. explained by the following illustrations:
In GST there is no exemption to trading in PSLCs. Thus, PSLCs are taxable as goods at standard
Illustration A: There are 4 members in the JV including the operating member and each one contributes `
rate of 18% under the residuary S. No. 453 of Schedule III of notification No. 1/2017-Central Tax(Rate). GST 100 as part of their share. A total amount of ` 400 is collected. The operating member purchases
payable on the certificates would be available as ITC to the bank buying the certificates. machinery for ` 400 for the JV to be used in oil production.
In the above situation it will not be the subject matter of 'ST/GST' for the reason that the operating member
Clarification regarding leviability of GST on taxable services provided by the members of the JV to the is not carrying out an activity for another for consideration. In Illustration A, the money paid for purchase of
JV and vice versa and inters se between the members of the JV. [Circular No. 35/09/2018 GST dated machinery is merely in the nature of capital contribution and is therefore a transaction in money.
05.03.2018]
Issue:- Whether GST is to be levied on taxable services provided by the members of the JV to the JV and vice Illustration B: There are 4 members in the JV including the operating member and each one contributes `
versa and inter se between the members of the JV 100 as part of their share. A total amount of ` 400 is collected. The operating member thereafter uses its
Legal Provision:- own machine and performs exploration and production activities on behalf of the JV.
In the above situation the operating member uses its own machinery and is therefore providing 'service'
CGST Act Provisions within the scope of supply of CGST Act. This is because in this scenario, the operating member is
recovering the cost appropriated towards machinery and services from the other JV members in their
expression “supply” includes all forms of supply of goods or services or both such as sale,
Section 7 transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a
participating interest ratio
consideration by a person in the course or furtherance of business, and includes activities
specified in Schedule II to the CGST Act. GST is levied on intra-State and inter-State supply of
goods and services.
GST
REVISION
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2 CA VISHAL BHATTAD 09850850800
Clarification on Inter-state movement of rigs, tools and spares, and all goods on wheels [like
Deemed Distinct Person &Supply (Para 2 of schedule I) cranes]- [Circular no. 21/21/2017 dt 22/11/2017 ]
Circular No 1/1/2017- IGST Act, Dated 7/7/2017

Clarification on Inter-state movement of various modes of conveyance, carrying goods or Basis of Clarification:-
passengers or for repairs and maintenance IGST exemption on inter-state movement of various
Issue: Whether inter-state movement of various modes of conveyance carrying goods or passengers modes of conveyance, between distinct persons as
or both, or for repairs and maintenance, between distinct persons as specified in section 25(4) of the specified in section 25(4) of the Central Goods and
CGST Act [except in cases where such movement is for further supply of the same conveyance], is Services Tax Act, 2017, carrying goods or passengers
leviable to IGST?
or both; or for repairs and maintenance, [except in
Legal Provision: In the above context, the legal provisions in GST laws are as under:
a) As per section 24(1)(i) of the CGST Act, persons making any inter-State taxable supply of goods shall be cases where such movement is for further supply of the
required to be registered under this Act. same conveyance] was examined and a circular
b) As per section 25(4) of the said Act a person who has obtained or is required to obtain more than one 1/1/2017-IGST dated 7.7.2017, was issued clarifying
registration, whether in one State or Union territory or more than one State or Union territory shall, in that such interstate movement shall be treated "neither
respect of each such registration, be treated as distinct persons for the purposes of this Act. as a supply of goods nor supply of service" and
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 therefore would not be leviable to IGST.
between distinct persons as specified in section 25, when made in the course or furtherance of business Issue & Clarification:
The issue pertaining to inter-state movement of rigs,
Clarification: Against the above background, the issue of inter-state movement of goods like movement of tools and spares, and all goods on wheels [like cranes]
various modes of conveyance, between distinct persons as specified in section 25(4) of the said Act, not was discussed in GST Council's meeting held on 10th
involving further supply of such conveyance, including November, 2017 and the Council recommended that
i.Trains, ii. Buses, iii. Trucks, iv. Tankers, v. Trailers,
vi. Vessels, vii. Containers, viii. Aircrafts, the circular 1/1/2017-IGST shall mutatis mutandis
apply to inter-state movement of such goods, and
GST Council recommendation except in cases where movement of such goods is for further supply of the same goods, such inter-state
Situations and conclusion movement shall be treated 'neither as a supply of goods or supply of service,' and consequently no IGST
Carrying Goods or Between deemed distinct person shall be would be applicable on such movements.
passenger or both Treated neither as supply Conclusion:
in conveyance of goods or services & no IGST to be
In this context, it is also reiterated that applicable CGST/SGST/IGST, as the case maybe, is leviable on
levied
Repairing Workshop
repairs and maintenance done for such goods.
Repairs & Maintenance On movement between deemed distinct
of conveyance persons shall be treated neither as supply
of goods or services & no IGST to be levied
Note: On repairs & maintenance charges Question:
done for such conveyances GST shall be Showroom
Vishwas Jewellers of Tumkur (Karnataka) takes gold jewel articles to Mumbai (Maharashtra).
payable Determine the GST applicability in the given case
Movement for further Treated as supply of goods or services
supply & IGST to be levied
Answer
As in the given case the customer is not ascertained beforehand by Vishwas Jewellers & thus the
movement of jewellery from State of karnataka to Maharashtra will be under delivery challan.
Conclusion : In view of above, it is hereby clarified that the inter-state movement of goods like movement of And on approval of jewel article by customer it will be a supply and tax invoice shall be issued , IGST shall
various modes of conveyance, between distinct persons as specified in section 25(4) of the CGST Act be levied as an interstate supply and not is not required to be registered as casual taxable person.
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.
However, applicable CGST/SGST/IGST, as the case may be, shall be leviable on repairs and
maintenance done for such conveyance. GST
REVISION
Clarification on issues regarding treatment of supply by an artist in various States and supply of literally as they may not have been set up directly under Article 323B of the Constitution. However, they are
goods by artists from galleries [Circular No. 22/22/2017 GST dated 21.12.2017] clothed with the characteristics of a tribunal.
Issue:- Regarding taxation of the supply of art works by artists in different States other than the State in which
In view of the aforesaid, it is hereby clarified that fee paid by litigants in the Consumer Disputes Redressal
they are registered as a taxable person. In such cases, if the art work is selected by the buyer, then the supplier
Commissions are not leviable to GST. Any penalty imposed by or amount paid to these Commissions will
issues a tax invoice only at the time of supply.
also not attract GST.
As the artists give their work of art to galleries where it is exhibited for supply. There seems to be confusion
regarding the treatment of this activity whether it is taxable in the hands of the artist when the same is given to
the art gallery or at the time of actual supply by the gallery.
Therefore, in exercise of the powers conferred under section 168 (1) of the Central Goods and Services Tax Composite & Mixed Supply
Act, 2017, for the purpose of uniformity in the implementation of the Act, it has been decided to clarify this
matter. As per sec 8 of CGST Act, The tax liability on a composite or a mixed supply shall be determined
in the following manner, namely:—
Legal Provision:- Same provisions as stated in above senario shall be applicable for the given issue. A Composite Supply comprising two or more supplies, one of which is a principal supply, shall
be treated as a supply of such principal supply; and
Clarification : A Mixed Supply comprising two or more supplies shall be treated as a supply of that particular
supply which attracts the highest rate of tax.
What Document to be For supply on approval basis - Delivery challan along E-way Bill.
Issued? On actual supply - Invoice to be issued
Composite Supply Mixed Supply
When Is GST Leviable? On Inter state - IGST Shall be levied As per sec 2(30) of CGST Act, "composite supply" means a As per sec 2(74) of CGST Act,
Display at Gallery - GST applicable on actual supply supply made by a taxable person to a recipient consisting of two or"mixed supply" means two or
more taxable supplies of goods or services or both, or any more individual supplies of goods
Whether CTP registration is required? No. combination thereof, which are naturally bundled and supplied in or services, or any combination
conjunction with each other in the ordinary course of business, thereof, made in conjunction with
Note :- In case of art work sent to the gallery for exhibition there is no consideration flow hence not a supply. one of which is a principal supply each other by a taxable person for
Sec 2(90) Principal Supply - means the supply of goods or a single price where such supply
Schedule III services which constitutes the predominant element of a does not constitute a composite
composite supply and to which any other supply forming part of the supply.
Clarification on certain issues regarding GST applicability on fees, penalty etc paid to Consumer composite supply is ancillary
Disputes Redressal Commission [Circular No. 32/06/2018 GST dated 12.02.2018]
Clarification on levy of GST on printing - [Circular no. 27/01/2018 dt 04/01/2018 ]
Issue:- Is GST leviable on the fee/amount charged in the following situations/cases: – Issue:-
(1) A customer pays fees while registering complaints to Consumer Disputes Redressal Commission office and To clarify whether supply in the situations listed below shall be treated as a supply of goods or supply of
its subordinate offices. These fees are credited into State Customer Welfare Fund's bank account. service: -
(2)Consumer Disputes Redressal Commission office and its subordinate offices charge penalty in cash when it 1. The books are printed/ published/ sold on procuring copyright from the author or his legal heir. [e.g. White
is required. Tiger Procures copyright from Ruskin Bond]
(3) When a person files an appeal to Consumers Disputes Redressal Commission against order of District 2. The books are printed/ published/ sold against a specific brand name. [e.g. Manorama Year Book]
Forum, amount equal to 50% of total amount imposed by the District Forum or Rs 25000/- whichever is less, is 3. The books are printed/ published/ sold on paying copyright fees to a foreign publisher for publishing
required to be paid. Indian edition (same language) of foreign books. [e.g. Penguin (India) Ltd. pays fees to Routledge
(London)] The books are printed/ published/ sold on paying copyright fees to a foreign publisher for
publishing Indian language edition (translated). [e.g. Ananda Publishers Ltd. pays fees to Penguin
Legal Provision:- As per sec 7 of CGST act read with schedule III of CGST Act, Services by any court or Tribunal
(NY)]
established under any law for the time being in force is neither a supply of goods nor services
Clarification:
The supply of books shall be treated as supply of goods as long as the supplier owns the books and has the
Clarification:- Consumer Disputes Redressal Commissions (National/ State/ District) may not be tribunals legal rights to sell those books on his own account.
GST
REVISION
Clarifications regarding GST in respect of certain services [Circular No. 34/08/2018 GST dated Clarification on classification of cut pieces of fabrics under GST (Unstitched Salwar Suits)
01.03.2018] [Circular No. 13/13/2017 GST dated 27.10.2017]
Issue Clarification Facts : It has been represented that before becoming readymade articles or an apparel, the fabric is
i) Whether activity of bus In the case of bus body building there is supply of goods and services. Thus, cut from bundles or thans and sold in that unstitched state. The consumers buy these sets or pieces
body building, is a supply of classification of this composite supply, as goods or service would depend and get it stitched to their shape and size.
goods or services? on which supply is the principal supply which may be determined on the
Classifications : Fabrics are classifiable under chapters 50 to 55 of the First Schedule to the
basis of facts and circumstances of each case.
The primary question that should be asked is what the essential Customs Tariff Act, 1975 on the basis of their constituent materials.
ii) Whether retreading of
tyres is a supply of goods or nature of the composite supply is and which element of the supply Conclusion : Mere cutting and packing of fabrics into pieces of different lengths from bundles or
s e r v i c e s ? imparts that essential nature to the composite supply. thans, will not change the nature of these goods and such pieces of fabrics would continue to be
Value may be one of the guiding factors in this determination, but not the classifiable under the respective heading as the fabric.
sole factor.
In retreading of tyres, which is a composite supply, the pre-dominant
element is the process of retreading which is a supply of service. Rubber Charge of GST
used for retreading is an ancillary supply.
Supply of retreaded tyres, where the old tyres belong to the supplier of Clarification regarding applicability of section 16 of the IGST Act, 2017, relating to zero rated
retreaded tyres, is a supply of goods (retreaded tyres under heading 4012 of supply for the purpose of compensation cess on exports. [Circular No. 01/01/2017 CC dated 26.07.2017]
the Customs Tariff attracting GST @ 28%)
Section 11(2) of the Goods and Services tax (Compensation to States) Act, 2017 provides that
Clarification regarding applicability of GST on the superior kerosene oil [SKO] retained for the provisions of IGST Act, and the rules made thereunder, shall, mutatis mutandis, apply in relation to the
manufacture of Linear Alkyl Benzene [LAB] levy and collection of the cess leviable under section 8 of that Act on the inter-State supply of goods and
services, as they apply in relation to the levy and collection of integrated tax on such inter-State supplies
Issue: Whether GST is applicable on the superior kerosene oil [SKO] retained for the manufacture of Linear under the said Act or the rules made thereunder.
Alkyl Benzene [LAB]? [Circular No. 12/12/2017 GST dated 26.10.2017] In view of the above, it has been clarified that provisions of section 16 of the IGST Act, 2017,
Facts: In this context, LAB manufacturers have stated that they receive superior Kerosene oil (SKO) from, a relating to zero rated supply will apply mutatis mutandis for the purpose of compensation cess
refinery, say, Indian Oil Corporation (IOC). They extract n- Paraffin from SKO and return back the remaining of (wherever applicable), that is to say that:
SKO to the refinery. In this context, the issue has arisen as to whether in this transaction GST would be levied a) Exporter will be eligible for refund of compensation cess paid on goods exported by him [on
similar lines as refund of IGST under section 16(3)(b) of the IGST, 2017]; or
on SKO sent by IOC for extracting n-paraffin or only on the n-paraffin quantity extracted by the LAB
b) No compensation cess will be charged on goods exported by an exporter under bond and he will
manufactures. Further, doubt have also been raised as to whether the return of remaining Kerosene by LAB be eligible for refund of input tax credit of compensation cess relating to goods exported [on
manufactures would separately attract GST in such transaction. similar lines as refund of input taxes under section 16(3)(a) of the IGST, 2017].
Clarification : 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 Analysis: -
received from refinery is retained and balance quantity ranging from 83%- 85% is returned back to refinery. The A registered person engaged in export of goods on which compensation less is applicable shall avail the
retained SKO is towards extraction of Normal Paraffin, which is used in the manufacturing of LAB. In this benefit of ‘zero rated supply’ u/s 16 of IGST Act & thus eligible for refund of compenses
transaction consideration is paid by LAB manufactures only on the quantity of retained SKO (n-paraffin).
In this context, the GST Council has 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).
Conclusion:-
Accordingly, it is hereby clarified that, in aforesaid case, GST will be payable by the refinery only on the net
quantity of superior kerosene oil (SKO) retained fo r the manufacture 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
GST
REVISION
Additional Amendments Circulars & notifications between 01-05-2018 to 31-10-2018 (Applicable for May 19 Exam)
As per CGST Amendment Act, 2018 Principal-agent relationship(Para 3 of schedule I)
Section 7 - Meaning and scope of supply Clarification on Scope of Principal-agent relationship in the context of Schedule I of the CGST Act
regarding. (Circular No. 57/31/2018-GST dt 04/09/2018)
1 Supply includes - Legal Provision
(a) All forms of supply of goods and/ or services or both such as As per para 3 of Schedule I
Ü sale transfer, barter, exchange, licence, rental, lease or disposal Supply of goods—
Ü made or agreed to be made (a) by a principal to his agent where the agent undertakes to supply such goods on behalf of the principal; or
(b) by an agent to his principal where the agent undertakes to receive such goods on behalf of the principal.
Ü for a consideration by a person As per Sec 2(5) “agent” means a person, including a factor, broker, commission agent, arhatia, del credere
Ü in the course or furtherance of business. agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of
(b) Importation of services, for a consideration whether or not in the supply or receipt of goods or services or both on behalf of another.
course or furtherance of business and Newly Inserted Also As per Sec 24(vii) Compulsory registration is required for person who make taxable supply of goods or
services on the behalf of other taxable person whether as an agent or Otherwise.
(c) The activities specified in Schedule I, made or agreed to be made Scope of Applicability:
without a consideration. Important Points:
The activities to be treated as supply of goods or supply of services as referred 1.all the activities between the principal and the agent and vice versa do not fall within the scope of the said
(d) entry.
to in Schedule II.Omitted
2.the element identified in the definition of “agent”, i.e., “supply or receipt of goods on behalf of the principal”
1A Where certain activities or transaction constitute a supply in accordance with the has been retained in this para 3.
provisions of subsection (1), they shall be treated either as supply of goods or supply of 3. It may be noted that the crucial factor is how to determine whether the agent is wearing the representative
services as referred to in Schedule II. Newly Inserted hat and is supplying or receiving goods on behalf of the principal.
Applicability of para 3
1 Supply of goods by Principle to Agent

then, any provision of goods from the
a Where the invoice for further supply is being principal to the agent would fall within
issued by the agent in his name
the fold of the said para
Scenario1
Mr. A, an artist, appoints M/s B (auctioneer) to auction his painting. M/s B arranges for the auction
and identifies the potential bidders. The highest bid is accepted and the painting is sold to the
highest bidder. The invoice for the supply of the painting is issued by M/s B on the behalf of Mr. A but
in his own name and the painting is delivered to the successful bidder. In this scenario, M/s B is not
merely providing auctioneering services, but is also supplying the painting on behalf of Mr. A to the
bidder, and has the authority to transfer the title of the painting on behalf of Mr. A. This scenario is
covered under Schedule I.
Scenario 2
A similar situation can exist in case of supply of goods as well where the C&F agent or commission
agent takes possession of the goods from the principal and issues the invoice in his own name. In
such cases, the C&F/commission agent is an agent of the principal for the supply of goods in terms
of Schedule I. The disclosure or non-disclosure of the name of the principal is immaterial in such
situations.
Registration Requirement: in scenario 1 M/s B and Scenario 2 C & f agents hall be liable for
compulsory registration in terms of the clause (vii) of section 24 of the CGST Act.
GST
REVISION
b where the invoice is issued by the agent Then such agent shall not fall within the Issue related to taxability of 'tenancy rights' under GST Circular no 44/2018 –
to the customer in the name of the principal ambit of Schedule I of the CGST Act
CT dt 02/05/2018
Scenario Facts: The transfer of tenancy rights against tenancy premium which is also known as “pagadi system” is
M/s XYZ, a banking company, appoints Mr. B (auctioneer) to auction certain goods. The prevalent in some States. In this system the tenant acquires, tenancy rights in the property against
auctioneer arranges for the auction and identifies the potential bidders. The highest bid is payment of tenancy premium(pagadi). The landlord may be owner of the property but the possession of
accepted and the goods are sold to the highest bidder by M/s XYZ. The invoice for the supply of the same lies with the tenant. The tenant pays periodic rent to the landlord as long as he occupies the
the goods is issued by M/s XYZ to the successful bidder. In this scenario, the auctioneer is
merely providing the auctioneering services with no role played in the supply of the goods. Even property.
in this scenario, Mr.B is not an agent of M/s XYZ for the supply of goods in terms of Schedule I. The tenant also usually has the option to sell the tenancy right of the said property and in such a case has
Registration Requirement: In scenario 1 and scenario 2, Mr. B shall not be liable to obtain to share a percentage of the proceed with owner of land, as laid down in their tenancy agreement.
registration in terms of clause (vii) of section 24 of the CGST Act. He, however, would be liable Alternatively, the landlord pays to tenant the prevailing tenancy premium to get the property vacated.
for registration if his aggregate turnover of supply of taxable services exceeds the threshold Such properties in Maharashtra are governed by Maharashtra Rent Control Act, 1999.
specified in sub-section (1) of section
2 Supply of goods by Agent to Principal Issue:
(I) Whether transfer of tenancy rights to an incoming tenant, consideration for which is in form of tenancy
where the goods being procured by the then further provision of the said goods premium, shall attract GST when stamp duty and registration charges is levied on the said premium?
a agent on behalf of the principal are by the agent to the principal would be
(ii) Further, in case of transfer of tenancy rights, a part of the consideration for such transfer accrues to the
invoiced in the name of the agent covered by said para
outgoing tenant, whether such supplies will also attract GST?
where the goods being procured by the then further provision of the said goods Objection by Industry: The stamp duty and registration charges is levied on such transfers of tenancy
b agent on behalf of the principal are by the agent to the principal would not rights, and such transaction thus should not be subjected to GST
invoiced in the name of the principal be covered by said para Legal Provision:- As per section 9(1) of the CGST Act there shall be levied central tax on the intra-State
Scenario supplies of services.
Mr. A appoints Mr. B to procure certain goods from the market. Mr. B identifies various As per para 2 of Schedule II any lease, tenancy, easement, licence to occupy land is classified under
suppliers who can provide the goods as desired by Mr. A, and asks the supplier (Mr. C) to send supply of service.
the goods and issue the invoice directly to Mr. A. In this scenario, Mr. B is only acting as the Also renting of residential dwelling for use as a residence is exempt as per Sl. No. 12 of notification No.
procurement agent, and has in no way involved himself in the supply or receipt of the goods.
12/2017-Central Tax(Rate).
Hence, in accordance with the provisions of this Act, Mr.B is not an agent of Mr. A for supply of
goods in terms of Schedule I. Observations: Merely because a transaction or a supply involves execution of documents which may
require registration and payment of registration fee and stamp duty, would not preclude them from the
scope of supply of goods and services and from payment of GST.
Special Case Study: Mr A sells agricultural produce by utilizing the services of Mr B who is a commission agent as
per the Agricultural Produce Marketing Committee Act (APMC Act) of the State. Mr B identifies the buyers and sells The transfer of tenancy rights cannot be treated as sale of land or building declared as neither a supply of
the agricultural produce on behalf of Mr. A for which he charges a commission from Mr. A. As per the APMC Act, the goods nor of services in para 5 of Schedule III to CGST Act, 2017. Thus a consideration for the said activity
commission agent is a person who buys or sells the agricultural produce on behalf of his principal, or facilitates shall attract levy of GST.
buying and selling of agricultural produce on behalf of his principal and receives, by way of remuneration, a
commission or percentage upon the amount involved in such transaction. Clarification
Answer:
1. Applicability of para 3 of schedule I: In cases where the invoice is issued by Mr. B to the buyer, the former is an
Cases Situations Clarifications Facts
agent covered under Schedule I. However, in cases where the invoice is issued directly by Mr. A to the buyer, the A is the owner of a property. B takes this property
commission agent (Mr. B) doesn’t fall under the category of agent covered under Schedule I. 1 Transfer of tenancy rights to
from A on rent. B pays `10,000 monthly to A as
2. Exemption: As per notification No. 12/2017 Central Tax (Rate) dated 24.06.2017 has exempted “services by any an incoming tenant, Taxable rent. In addition, B has paid `1,00,000 to A to get a
APMC or board or services provided by the commission agents for sale or purchase of agricultural produce” consideration for which is in right partly in A's property. This ` 1,00,000 is called
from GST. form of tenancy premium Tenancy Premium and liable to GST
3. Registration requirement: the services provided by the commission agent for sale or purchase of agricultural A is the owner of a property. B takes this property
produce is exempted. Such commission agents (even when they qualify as agent under Schedule I) are not Transfer of tenancy rights
2 to a new tenant against Taxable from A on rent. B pays `10,000 monthly to A as
liable to be registered according to sub-clause (a) of sub-section (1) of section 23 of the CGST Act, if the supply rent. In addition, B has paid `1,00,000 to A to get a
of the agricultural produce, and /or other goods or services supplied by them are not liable to tax or wholly consideration in the form of
right partly in A's property.B has further transfer
exempt under GST. tenancy premium rights to C for premium. Such premium also
However, in cases where the supply of agricultural produce is not exempted and liable to tax, such commission Taxable.
agent shall be liable for compulsory registration under sub-section (vii) of section 24 of the CGST Act.
GST
REVISION
Transfer of tenancy rights to a
Exempt
X is the owner of a residential property. Y takes this Applicability of GST
new tenant against property from X on rent. Y pays `10,000 monthly to X as
3 consideration for residential rent for residence . Before the end of the agreement, X Clarification regarding applicability of GST on the petroleum gases retained for the manufacture of
property in the form of tenancy pays `1,00,000 to Y, so that Y vacants the property. This
petrochemical and chemical products. [Circular No.53/2018 GST dt 09/08/2018]
premium `1,00,000 is also called Tenancy premium. Here X is
paying Y so that Y surrenders his right to stay in the
property. This will be exempt as the amount of tenancy Facts:- Manufacturers of other petrochemical and chemical products for issue of clarification on applicability
premium paid is for residential purpose. of GST on petroleum gases, which are supplied by oil refineries to them on a continuous basis through
X is the owner of a property. Y takes this property from X dedicated pipelines, while a portion of the raw material is retained by these manufacturers (recipient of
4 Services provided by outgoing supply), and the remaining quantity is returned to the oil refineries.
tenant by way of surrendering Taxable on rent. Y pays `10,000 monthly to X. Before the end of
the tenancy rights against the agreement, X pays `1,00,000 to Y, so that Y vacants In this regard, an issue has arisen as to whether in this transaction GST would be leviable
consideration in the form of a the property. This `1,00,000 is also called Tenancy
portion of tenancy premium premium and liable to GST. Here X is paying Y so that Y Ü on the whole quantity of the principal raw materials supplied by the oil refinery or
surrenders his right to stay in the property. Ü on the net quantity retained by the manufacturers of petrochemical and chemical products.
Clarification:- The provisions as stated in Circular 12/12/2017 – GST dt 26.10.2017 shall mutatis mutandis
apply in the above case also i.e
Ü GST will be payable by the refinery only on the net quantity of petroleum gases retained by the
recipient manufacturer for the manufacture of petrochemical and chemical products
Ü Refinery would be liable to pay GST on such returned quantity of petroleum gases, when the same
is supplied by it to any other person
Clarification on Taxability of petroleum contracts (Circular no. 32/06/2018 dt 12/02/2018)
Issue -Taxability of Cost Petroleum
Facts - As per the Production Sharing Contract(PSC) between the Government and the oil exploration &
production contractors, in case of a commercial discovery of petroleum, the contractors are entitled to
recover from the sale proceeds all expenses incurred in exploration, development, production and
payment of royalty. Portion of the value of petroleum which the contractor is entitled to take in a year for
recovery of these contract costs is called Cost Petroleum.
The relationship of the oil exploration and production contractors with the Government is not that of
partners but that of licensor/lessor and licensee/lessee in terms of the Petroleum and Natural Gas Rules,
1959.
Composite & Mixed Supply Having acquired the right to explore, exploit and sell petroleum in lieu of royalty and a share in profit
petroleum, contractors carry out the exploration and production of petroleum for themselves and not as a
Clarification on Servicing of cars involving both supply of Goods & services (Circular no. service to the Government.
47/21/2018 dt 08/06/2018)
Issue :- Clarification – As per Para 8.1 of the Model Production Sharing Contract (MPSC) states that subject to
How is servicing of cars involving both supply of goods (spare parts) and services (labour), where the value of the provisions of the PSC, the Contractor shall have exclusive right to carry out Petroleum Operations to
goods and services are shown separately, to be treated under GST? recover costs and expenses as provided in this Contract.
The oil exploration and production contractors conduct all petroleum operations at their sole risk, cost and
Clarification:- expense. Hence, cost petroleum is not a consideration for service to GOI and thus not taxable per se.
Ü The taxability of supply would have to be determined on a case to case basis looking at the facts and However, cost petroleum may be an indication of the value of mining or exploration services provided by
circumstances of each case. operating member to the joint venture, in a situation where the operating member is found to be supplying
Ü Where a supply involves supply of both goods and services and the value of such goods and services service to the oil exploration and production joint venture.
supplied are shown separately, the goods and services would be liable to tax at the rates as applicable to
GST such goods and services separately.
REVISION
Chapter 3
Reverse Charge & ECO
GST
REVISION
Circulars & notifications upto 30-04-2018(Existing Amendments Circulars & notifications between 01-05-2018 to 31-10-2018 (Applicable for May 19 Exam)
Applicable for Nov 18 & Onwards Exams)
Legal Services Sec 9(3) : Reverse Charge under notified cases
2 Service Supplied
11 Services supplied Newly Inserted Person liable to pay tax : A banking
Clarification on levy of GST on legal services - [Circular no. 27/01/2018 dt 04/01/2018 ] company or a non-banking financial
company, located in the taxable territory.
Issue
Whether legal services other than representational services provided by an individual advocate or a senior By To
advocate to a business entity are liable for GST under reverse charge mechanism? Individual Direct Selling Agents (DSAs)
Clarification A banking company or a non-banking financial
other than a body corporate, partnership
Yes. In case of legal services including representational services provided by an advocate including a senior company, located in the taxable territory.
or limited liability partnership firm.
advocate to a business entity, GST is required to be paid by the recipient of the service under reverse charge
mechanism, i.e. the business entity.
5A Services supplied by (Amendment via Notification issued by CBIC)

By To
Person liable to pay tax :
Ü Central Govt. Ü State Govt. Any registered person under
Ü Union TerritoryÜLocal authority CGST Act read with clause (v) of Any registered person in
by way of Renting of immovable Section 20 of IGST Act,2017 taxable territory
property,
Explanation :- “renting of 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.'. Newly Inserted
(N/N 15/2018 - CT (Rate) dt 26/06/2018)
Insurance Services
Insurance Agent has now been defined via N/N
7 Service Supplied by Person liable to pay 13/2017 -CT(Rate) dt 25/1/2018 i.e. ‘Insurance
tax : Any person Agent’ shall have the same meaning
By To carrying any assigned to it in sec 2(10) of Insurance Act
insurance business 1938.
Insurance Any person located in taxable “Insurance Agent” means an insurance agent
Agent carrying territory licensed under section 42 who receives or
insurance e.g. LIC or GIC
agrees to receive payment by way of
business commission or other remuneration in
consideration of his soliciting or procuring
insurance business [including business relating
to the continuance, renewal or revival of policies
of insurance.]
Comment :- Many insurance companies who are selling their policies through ECO operator not being licensed as
Insurance agent under sec 42 of Insurance Act, for them reverse charge shall not be applicable.
GST
REVISION
Chapter 5
Exemption
GST
REVISION
Circulars & notifications upto 30-04-2018 Retention money The entire amount charged by
Hospitals charge the
(Existing Amendments Applicable for Nov 18 & Onwards Exams) them from the patients
patients, say, `10000/-
and pay to the consultants/ including the retention money
Clarification on existing exemptions technicians only ` 7500/- and the
Exemption Related to Health Care and keep the balance for Fee/payments made to the
Sl.No. Health Care Services by HEALTH CARE SERVICES providing ancillary services doctors etc., is towards the
► aclinical establishment, which include nursing care, healthcare services provided
74 MEANS INCLUDES
► an authorized medical BUT SHALL NOT INCLUDE infrastructure facilities etc
practitioner or Mean any service by way of by way of hair transplant or cosmetic or
by the hospitals to the
► paramedics. diagnosis or treatment or transportati plastic surgery, except when patients and is exempt.
care for illness, injury, o n o f t h e undertaken to restore or to
Sl. No. Preservation of Stem Cell deformity, abnormality or Food supplied to admitted
by Cord blood banks
p a t i e n t t o reconstruct anatomy or Food supplied to the food prepared by the
73 pregnancy in any recognized patients: Food supplied to the
system of medicines in India and from a functions of body affected patients canteens run by the
Sl.No. Treatment of disposal of bio- and (Eg. Allopathy, Yoga, c l i n i c a l due to congenital defects, in-patients as advised by the
medical waste of clinical hospitals
75 establishme developmental abnormalities,
establishment by operators Naturopathy, Ayurveda, doctor/nutritionists is a part of
Homeopathy, Siddha, Unani) nt injury or trauma.
Sl.No. Health Care or Animal or composite supply of healthcare
46 Birds Service by Important Comments: and not separately taxable
Veterinary Clinic Taxable Services: Hair Transplant or Cosmetic or Plastic Surgery,
Food supplied to non-admitted
Clarifications on certain issue related to Health Care via Circulars patients: supplies of food by a
hospital to patients (not admitted)
Circular no. 27/01/2018 dt 04/01/2018 or their attendants or visitors are
taxable.
Subject Issues Clarifications
Supply food to the doctors and
Room Rent Whether rent on rooms Room rent in
their staff: such supplies, even
to patients provided to patients hospitals is exempted
when not charged, may be
is exempted? subjected to GST.
Circular no 32/06/2018 dt 12/02/2018
outsourced by the The suppliers shall charge tax as
Hiring of senior Hospitals hire senior doctors/ Health care services provided Hospitals from outdoor applicable and hospital will get
no ITC.
doctors/ consultants/ consultants/ technicians by a clinical establishment, an caterers
technicians independently, a uthorised medical
independently ► Without any contract of practitioner or para-medics
by Hospitals such persons with the Question:
a r e e x e m p t .
patient; and pay them Shiva Medical Centre, a Multi-speciality hospital, is a registered supplier in Mumbai. It hires senior
consultancy charges, Services provided by
doctors and consultants independently, without entering into any employer- employee agreement
► Without there being any senior doctors/ consultants/ with them. These doctors and consultants provide consultancy to the in-patients - patients who
employer-employee technicians hired by the are admitted to the hospital for treatment – without there being any contract with such patients. In
relationship. Will such hospitals, whether employees
return, they are paid the consultancy charges by Shiva Medical Centre.
consultancy charges However, the money actually charged by Shiva Medical Centre from the in-patients is higher than
or not, are healthcare services
be exempt from GST?
which are exempt. the consultancy charges paid to the hired doctors and consultants. The difference amount retained
by the hospital, i.e. retention money, includes charges for providing ancillary services like nursing
GST
REVISION
care, infrastructure facilities, paramedic care, emergency services, checking of temperature, weight, Charitable Activities
blood pressure, etc.
Further, Shiva Medical Centre has its own canteen – Annapurna Bhawan - which supplies food to the Sl.No. 1
in-patients as advised by the doctor/nutritionists as also to other patients (who are not admitted) or of notification
Charitable Activities (Chapter 99)
their attendants or visitors. Service by an entity registered under section 12AA of the Income tax Act, 1961 by way of charitable
The Department took a stand that senior doctors and consultants are providing services to Shiva activities
Medical Centre and not to the patients. Hence, their services are not the health care services and must
be subject to GST. Further, GST is applicable on the retention money kept by Shiva Medical Centre as CBIC Clarifications on certain issue related to Charitable Trust via Circulars
well as on the services provided by its canteen - Annapurna Bhawan alleging that such services are not
the health care services. Circular no 32/06/2018 dt 12/02/2018
You are required to examine whether the stand taken by the Department is correct provided the
services provided by Shiva Medical Centre are intra-State services. (RTP – Nov 2018)
Subject Issues Clarification
Hostel Is hostel Hostel accommodation services do not fall within the ambit of
Answer: accommodation charitable activities as defined in para 2(r) of notification No.
accommodation
Legal Provision:- As per Notification No. 12/2017 CT (R) dated 28.06.2017, services by way of health care provided by Trusts 12/2017-CT (Rate).
services by a clinical establishment, an authorised medical practitioner or para-medics are exempt from GST. provided by
to students covered
Health care services have been defined to mean any service by way of diagnosis or treatment or care for illness, Trusts to students within the definition However, services by a hotel, inn, guest house,
injury, deformity, abnormality or pregnancy in any recognised system of medicines in India and includes of Charitable club or campsite, by whatever name called, for residential or
services by way of transportation of the patient to and from a clinical establishment, but does not include hair Activities and thus, lodging purposes, having
transplant or cosmetic or plastic surgery, except when undertaken to restore or to reconstruct anatomy or exempt? Value of supply of a unit of accommodation below one
functions of body affected due to congenital defects, developmental abnormalities, injury or trauma. thousand rupees per day or equivalent are exempt.
Circular No. 32/06/2018 GST dated 12.02.2018 has clarified that in view of the above definition, it can be
inferred that hospitals also provide healthcare services.
Clarification:- On basis of the above provisions & circular the following analysis is derived Agriculture Services
Sl. No.54 - Exemption in Agriculture Sector
On the retention The entire amount charged by them from the patients including the
money kept by retention money kept by Shiva Medical Centre and the fee/payments made Circular no 16/16/2017- dt 15/11/2017
Medical Centre. to the doctors etc., is towards the healthcare services provided by the
GST applicable on warehousing of agricultural produce such as tea (i.e. black tea, white tea etc.), processed coffee beans
hospitals to the patients and is exempt from GST. or powder, pulses (de-husked or split), jaggery, processed spices, processed dry fruits, processed cashew nuts etc
Senior doctors/ Consultants/ Services provided by the senior doctors and consultants hired by Shiva
Technicians hired by the hospitals, Medical Centre, being healthcare services, are also exempt from GST.
whether employees or not Warehousing Is GST applicable on Tea is a processed product made in tea factories after
of Tea warehousing of carrying out several processes, such as drying, rolling,
Food supplied by the Is a part of composite supply of healthcare services and is not separately agricultural produce such shaping, refining, oxidation, packing etc. on green leaf and is
hospital canteen to the in - taxable. Thus, it is exempt from GST. However other supplies of food by as tea (i.e. black tea, white the processed output of the same
a hospital to patients (not admitted) or their attendants or visitors are tea etc.)
patients as advised by the
taxable. Thus, Such black tea, green tea, white tea etc. is not an
doctor/nutritionists In view of the same, GST is not applicable on the food supplied by agriculture produce & warehouse will be taxable
Annapurna Bhawan to in-patients as advised by doctors/nutritionists
while other supplies of food by it to patients (not admitted) or their
attendants/visitors are taxable.
GST
REVISION
Warehousing Is jaggery considered as Processing of sugarcane into jaggery changes its essential
an agricultural produce? characteristics Sl. No.15 Passenger Transport Service (Heading 9964 )
of jaggery of notification
Thus, jaggery is not an agricultural produce such activities
warehousing will be taxable CBIC Clarification on classification under Passenger Transport Services
Warehousing Pulses commonly known The process of dehusking or splitting is usually not carried out by Circular no 32/6/2018 dt 12/02/2018
of Pulses as dal are obtained after farmers or at farm level but by the pulse millers & the product Subject
dehusking or splitting or
Issues Clarification
obtained is 'Dal'.
both. So are these Services of elephant Whether the services of elephant or camel Elephant/ camel joy rides cannot be classified
products to be considered Therefore pulses (dehusked or split) are also not agricultural
or camel ride, ride, rickshaw ride and boat ride should be as transportation services.
as Agricultural produce? produce & Warehousing will be taxable. rickshaw ride and classified as passenger transport service These services will attract GST @ 18% with
However whole pulse grains such as whole gram, rajma etc. are boat ride in which case, the rate of tax on such
threshold exemption being available to small
covered in the definition of agricultural produce & services will be 18% or
Classified as recreational, service providers. [ Notification No. 11/2017-
Warehousing will be Exempt.
cultural and sporting services treating CT(Rate) dated 28.06.2017 as amended by
Corresponding notifications issued under IGST and UGST Acts and therefore the exemption from GST is not
them as joy rides, leviable to GST@ 28%? Notification No. 1/2018-CT(Rate) dated
available to their loading, packing, warehousing etc.
25.01.2018]
Clarification on taxability of custom milling of paddy

Issue Government Sector
whether custom milling of paddy by Rice millers for Civil Supplies Corporation is liable to GST or is
exempted under S. No 55 of Notification 12/2017 - Central Tax (Rate) dated 28th June 2017. (Circular CBIC Clarification on certain issues related to Insurance Services provided to the Govt.
no. 19/19/2017 dt 20/11/2017)
Clarification: Circular no. 16/16/2017 dt 15/11/2017

Milling of paddy is not an intermediate production process in relation to cultivation of plants. It is a process carried out after
the process of cultivation is over and paddy has been harvested. Further, processing of paddy into rice is not usually carried Subject Issues Clarification
out by cultivators but by rice millers. Milling of paddy into rice also changes its essential characteristics.
Conclusion: GST leviable on where premium is paid by Services provided to the Central Government, State
1. Therefore, milling of paddy into rice cannot be considered as an intermediate production process in relation to cultivation General Insurance S t a t e G o v e r n m e n t a n d Government, Union territory under any insurance
of plants for food, fibre or other similar products or agricultural produce. policies provided by scheme for which total premium is paid by the Central
2. In view of the above, it is clarified that milling of paddy into rice is not eligible for exemption under S. No 55 of Notification a State Government Government, State Government, Union territory are
12/2017 - Central Tax (Rate) dated 28th June 2017 and corresponding notifications issued under IGST and UTGST
to employees of the exempt from GST under Sl. No. 40 of notification No.
Acts.
3. Therefore, it is hereby clarified that milling of paddy into rice on job work basis, is liable to GST at the rate of 5%, on State government/ 12/2017-Central Tax (Rate).
the processing charges (and not on the entire value of rice). Police personnel,
employees of
Where premium is paid by Services provided by State Government by way of
Electricity
employees, students etc.? general insurance (managed by government) to
Department or
employees of the State government/ Police personnel,
students of colleges/
employees of Electricity Department or students are
private schools etc.
exempt via which Entry 6 of notification No. 12/2017-
CT(R) exempts Services by Central Government, State
Government, Union territory or local authority to
individuals.
GST
REVISION
Newly inserted Exemptions
Sl. No.79 A Protected Monuments under Ancient Monuments Act, 1958 (chapter 9996) Sl. No.9C Service Provided by Govt. Entity
of notification of notification
Newly Inserted
Services by way of admission to a protected monument so declared under the Ancient Monuments and Supply of service by a Government Entity to Central Government, State Government, Union territory,
Archaeological Site and Remains Act 1958 or any of the State Acts, for the time being in force local authority or any person specified by Central Government, State Government, Union territory or
local authority against consideration received from Central Government, State Government, Union
Sl. No.19A territory or local authority, in the form of grants, has been exempted from CGST.
of notification
Transportation of Goods by an Aircraft
Further, the term "Government Entity" has also been defined in the notification as under:
"Government Entity" means an authority or a board or any other body inc luding a society, trust,
Services by way of transportation of goods by an aircraft from customs station of clearance in India to a place
corporation,
outside India.
(i) set up by an Act of Parliament or State Legislature; or
Note : Nothing contained in this serial number shall apply after the 30th day of September, 2019. Amended (ii) established by any Government,
with 90% or more participation by way of equity or control, to carry out a function entrusted by the
Central Government, State Government, Union Territory or a local authority. [Notification No. 32/2017
Sl. No.19B Transportation of Goods by a Vessels CT (R) dated 13.10.2017].
of notification
Services by way of transportation of goods by a vessel from customs station of clearance in India to a place Sl. No.22
outside India. of notification
Services by way of Hire by road
Note : Nothing contained in this serial number shall apply after the 30th day of September, 2019. Amended Services by way of giving on hire –
(a) to a state transport undertaking, a motor vehicle meant to carry more than twelve passengers; or
Services Provided to Government (b) to a goods transport agency, a means of transportation of goods
(c) Motor vehicle for transport of students, faculty and staff, to a person providing services of
Sl. No.11A transportation of students, faculty and staff to an educational institution providing
of notification Services provided by Fair Price Shop services by way of pre-school education and education upto higher secondary school or
Newly Inserted
equivalent.
Newly Inserted
Service provided by Fair Price Shops to Central Government by way of sale of food grains, Kerosin, Sugar,
Edible Oil etc. under Public Distribution System(PDS) against consideration in the form of commission or
margin.
Impact of the amendment: - With effect from 15.11.2017, the exemptions under serial nos.11A and 11B [as given in points
(2) & (3)] have been merged under serial no. 11A which now exempts service provided by Fair Price Shops to Central
Government, State Government or Union territory by way of sale of food grains, kerosene, sugar, edible oil, etc. under
Public Distribution System against consideration in the form of commission or margin. Consequently, serial no. 11B has
been omitted [Notification No. 47/2017 CT (R) dated 14.11.2017].
Sl. No.3
of notification
Service to Govt. of article 243G
Pure services (excluding works contract service or other composite supplies involving supply of any goods) Sl. No.29A
provided to the Central Government, State Government or Union territory or local authority or a of notification
Services of Life Insurance Business Newly Inserted
Governmental authority or a Government Entity by way of any activity in relation to any function
entrusted to a Panchayat Newly Inserted under article 243G of the Constitution or in relation Services of life insurance provided or agreed to provided by the Naval Group Insurance Fund to the
to any function entrusted to a Municipality under article 243W of the Constitution. personnel of Coast Guard under the Group Insurance Schemes of the Central Government.
GST
REVISION
Central Government's share of profit petroleum exempted from CGST Amendments in Existing Exemption
[Notification No. 5/2018 CT (R) dated 25.01.2018] & Notification No.
5/2018 IT (R) dated 25.01.2018. Newly Inserted Exemption in Government Sector
The intra-State supply of services by way of grant of license or lease to explore or mine petroleum crude or
natural gas or both, has been exempted from so much of CGST as is leviable on the consideration paid to Sl. No.16 Transport by Air to Central Government
the Central Government in the form of Central Government's share of profit petroleum as defined in the of notification
contract entered into by the Central Government in this behalf.
Services provided to the Central Government, by way of transport of passengers with or without
Royalty and license fee exempted from IGST to the extent it is paid on the consideration attributable accompanied belongings, by air, embarking from or terminating at a regional connectivity scheme
to royalty and license fee included in transaction value under Rule 10(1)(c) of Customs Valuation airport, against consideration in the form of viability gap funding, are exempt from CGST. The
(Determination of value of imported Goods) Rules, 2007. [Notification No. 6/2018 IT (R) dated 25.01.2018] exemption was not available on or after the expiry of a period of one year ( 3 Years) from the date of
commencement of operations of the regional connectivity scheme airport as Amendment
Newly Inserted
notified by the Ministry of Civil Aviation.
IGST leviable on import of services in relation to temporary transfer or permitting the use or enjoyment of
any intellectual property right has been exempted to the extent of the aggregate of the duties of customs Sl. No.66 Education and Training (Heading 9992)
leviable under section 3(7) of the Customs Tariff Act, 1975, on the consideration declared under section of notification
14(1) of the Customs Act, 1962 towards royalties and license fees included in the transaction value as
specified under rule 10 (1)(c) of the Customs Valuation (Determination of Value of Imported Goods) Clarification on certain issues related to Education Services via
Rules, 2007 on which the appropriate duties of customs have been paid Circular No. 28/02/2018 - GST dated 18/01/2018 [N/N ]
Issue
If catering Services provided by educational institution to its students, faculty & Staff , whether these are exempt?
Clarification
Yes, it shall be exempt provided the said education institution is covered by the definition given
under the para 2(y) of notification no. 12.2017 - CT
Issue
If catering services are provided by a mess or canteen other than the education institution,
then also will it be exempted ?
Clarification
NO, it will be treated as supply service chargeable to GST 5% provided no input tax credit
has been taken on supply of such services
Sl. No.35 Specified General Insurance Scheme (Heading 9971 OR 9991)

of notification
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;
GST
REVISION
(e) Group Personal Accident Policy for Self-Employed Women; Circulars & notifications between 01-05-2018 to 31-10-2018 (Applicable for May 19 Exam)
(f) Agricultural Pumpset and Failed Well Insurance;
(g) premia collected on export credit insurance; Clarification on existing exemptions
(h) Restructured Weather based Crop Insurance Scheme (RWCIS) Amendment Sl.No. 74 Health Care Services (Heading 9993)
(i) Jan Arogya Bima Policy; of notification
(j) Pradhan Mantri Fasal Bima Yojana (PMFBY) Amendment Circular no 51/25/2018 dated 31-7-18
(k) Pilot Scheme on Seed Crop Insurance; Facts: - Many states are operating the ambulance service on an outsourced model and these services are funded
(l) Central Sector Scheme on Cattle Insurance; under the NHM and provided free of cost to all the patients. In this connection the Ministry of Health & family welfare,
has requested for a clarification of following issues
(m) Universal Health Insurance Scheme;
(n) Rashtriya Swasthya Bima Yojana; Service provided by Government or Public
Ambulance Exempted from GST
(o) Coconut Palm Insurance Scheme; Service provider (PSPs) by way of
Service
(p) Pradhan Mantri Suraksha BimaYojna; transportation of patients in an Ambulance
(q) Niramaya Health Insurance Scheme implemented by the Trust constituted under the provisions of the Exempt in Following Cases
National Trust for the Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Service provided by PSPs to the State
1.If it a pure service and not a composite
Multiple Disabilities Act, 1999 (44 of 1999). Government by way of transportation of on
supply involving supply of any goods
the behalf of State Govt. against the
or(refer S. no 3 of N/N 12/2017)
Consideration by way fees or otherwise from 2. If it is a composite supply of goods and
Sl. No.36 Life Insurance Services (Heading 9971 OR 9991) Government services in which the value of supply of
of notification goods constitutes not more than 25%
of value of said composite supply
Services of life insurance business provided under following schemes- (refer S. no 3A of N/N 12/2017)
a) Janashree Bima Yojana;
b) Aam Aadmi Bima Yojana; Sl.No. 1 Charitable Activities (Chapter 99)
c) Life micro-insurance product as approved by the Insurance Regulatory and Development Authority, of notification
having maximum amount of cover of ` 2 Lacs; Amendment
Circular no 66/40/2018- dt 26/09/2018
(d) Varishtha Pension BimaYojana;
Exemptions: Fee or consideration charged in any other form from the participants for participating in a religious,
(e) Pradhan Mantri Jeevan JyotiBimaYojana;
Yoga or meditation programme or camp meant for advancement of religion, spirituality or yoga shall be exempt
(f) Pradhan Mantri Jan DhanYogana;
(g) Pradhan Mantri Vaya Vandan Yojana.
lodging and boarding Residential programmes or camps meant Exempt: Residential programmes or camps
provided by Charitable for advancement of religion, spirituality or where the fee charged includes cost of lodging
yoga, where the fee charged includes cost and boarding shall also be exempt as long as
Trust of lodging and boarding the primary and predominant activity,
objective and purpose of such residential
programmes or camps is advancement of
religion, spirituality or yoga.
if charitable or religious trusts merely or such activities will be taxable
primarily provide accommodation or
serve food and drinks against
consideration in any form including donation
fitness camps or classes activities such as holding of fitness camps such activities will be taxable
provided by Charitable or classes such as those in aerobics,
Trust dance, music etc GST
REVISION
Sl. No.66 Education and Training (Heading 9992) Newly Inserted Exemptions
of notification
Exemption Related to Agriculture Sector
CBIC Clarification related to Educational Services
Sl. No.24A Warehousing of minor forest produce
produce (Heading 9967 OR 9985)
Circular No. 55/29/2018 - GST dated 10/08/2018: Taxability of services provided by Industrial training Institute of notification
a) Whether GST is payable on vocational training provided by private ITIs in designated trades and Services by way of warehousing of minor forest produce
in other than designated trades Newly Inserted
Clarification: Private ITIs qualify as an educational institution as covered in approved vocational

educational course.
Sl. No.55A Services by Way of Artificial insemination (Heading 9986)
of notification Newly Inserted
Therefore, services provided by a private ITI in respect of designated trades notified under
Apprenticeship Act, 1961 are exempt from GST Services by way of artificial insemination of livestock (other than horses).
As corollary, services provided by a private Ill in respect of other than designated trades would be
liable to pay GST and will be taxable Sl. No.9A Services provided by and to FIFA (chapter 99)
of notification
b) Whether GST is payable on the service, provided by a private Industrial Training Institute for Newly Inserted
conduct of examination against consideration in the form of entrance fee and also on the Services provided by and to Fédération Internationale de Football Association (FIFA) and its
services relating to admission to or conduct of examination. subsidiaries directly or indirectly related to any of the events under FIFA U-17 World Cup 2017 to be
Clarification: hosted in India.
i) Service provided by a private Industrial Training Institute for conduct of examination for Provided that Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly
entrance fees: As per the above provisions, it is clarified that in case of designated trades, services or indirectly related to any of the events under FIFA U-17 World Cup 2017."
provided by a private ITI by way of conduct of entrance examination against consideration in the
form of entrance fee will also be exempt from GST. Sl. No.47A Services supplied by Food Safety & Standard Authority of
ii) Service provided by a private ITI relating to admission to or conduct of examination: services of notification India (FSSAI) (Heading 9983 or 9991) Newly Inserted
provided to an educational institution, by way of services relating to admission to or conduct of
examination by a private ITI will also be exempt. Services by way of licensing, registration and analysis or testing of food samples supplied by the Food
Safety and Standards Authority of India (FSSAI) to Food Business Operators
Note: Other than designated trades in private ITI's, GST shall be payable on the aforesaid services as
these services are not covered by the exemption.
Service provided by Government ITI: For services provided to individual trainees/ students in relation
Sl. No.9D Service Provided by an old age home run by Government
c) of notification (Chapter 99 ) Newly Inserted
to vocational training & examination conducted by these Government ITI is exempt
Services by an old age home run by Central Government, State Government or by an entity registered
under section 12AA of the Income-tax Act, 1961 (43 of 1961) to its residents (aged 60 years or more)
against consideration upto ` 25,000 per month per member, provided that the consideration charged
is inclusive of charges for boarding, lodging and maintenance.
Sl. No.65B Services Supplied by a State Government to Excess Royalty

of notification
Collection Contractor (ERCC) (Heading 9991) Newly Inserted
Services supplied by a State Government to Excess Royalty Collection Contractor (ERCC) by way of
assigning the right to collect royalty on behalf of the State Government on the mineral dispatched by the
mining lease holders.
GST
REVISION
Explanation.- “mining lease holder” means a person who has been granted mining lease, quarry lease Sl. No.10A Services Supplied by Electricity Distribution Utilities
or license or other mineral concession under the Mines and Minerals (Development and Regulation) of notification (Heading 9954)
Act, 1957, the rules made thereunder or the rules made by a State Government under sub-section (1) of Newly Inserted
section 15 of the Mines and Minerals (Development and Regulation) Act, 1957 Services supplied by electricity distribution utilities by way of construction, erection, commissioning, or
Condition : - installation of infrastructure for extending electricity distribution network upto the tube well of the farmer
Provided that at the end of the contract period, ERCC shall submit an account to the State Government or agriculturalist for agricultural use.
and certify that the amount of goods and services tax deposited by mining lease holders on royalty is
more than the GST exempted
on the service provided by State Government to the ERCC of assignment of right to collect Sl. No.29A Services of Life Insurance Business (Heading 9971 OR 9991)
royalty and of notification
where such amount of GST paid by mining lease holders is less than the amount of GST exempted, the Newly Inserted
Services of life insurance provided or agreed to provided by the Naval Group Insurance Fund to the
exemption shall be restricted to such amount as is equal to the amount of GST paid by the
personnel of Coast Guard under the Group Insurance Schemes of the Central Government.
mining lease holders and
the ERCC shall pay the difference between GST exempted on the service provided by
State Government to the ERCC of assignment of right to collect royalty and GST paid by the Sl. No.77A Service by an unincorporated Body or a Non-Profit Entity
of notification
mining lease holders on royalty. (Heading 9995)
Newly Inserted
Sl. No.34 A Services provided by an unincorporated body or a non-profit entity registered under any law for the time
Service supplied by way of Guaranteeing the loans being in force, engaged in,-
of notification (Heading 9971)
Newly Inserted (i) activities relating to the welfare of industrial or agricultural labour or farmers; or
(ii) promotion of trade, commerce, industry, agriculture, art, science, literature, culture, sports, education,
Services supplied by Central Government, State Government, Union territory to their undertakings or
social welfare, charitable activities and protection of environment,
Public Sector Undertakings(PSUs) by way of guaranteeing the loans taken by such undertakings or
PSUs from the financial institutions. to its own members against consideration in the form of membership fee upto an amount of
one thousand rupees (Rs 1000/-) per member per year
Sl. No.31A Services provided by Coal Mines Provident Fund Organisation Sl. No.10F
of notification (Heading 9971 or 9991)
Service supplied to an Establishment outside India
Newly Inserted
Services by Coal Mines Provident Fund Organisation to persons governed by the Coal Mines Provident Services supplied by an establishment of a person in India to any establishment of that person
Fund and Miscellaneous Provisions Act, 1948. outside India, which are treated as establishments of distinct persons in accordance with Explanation
1 in section 8 of the Integrated Goods and Services Tax Act, 2017
Proviso
Sl. No.31B Services provided by National Pension System (NPS) Provided the place of supply of the service is outside India in accordance with section 13 of Integrated
of notification (Heading 9971 or 9991) Goods and Services Tax Act, 2017
Newly Inserted
Services by National Pension System (NPS) Trust to its members against consideration in the form of Sl. No.10G
administrative fee. Service supplied by an United Nations
Import of services by United Nations or a specified international organisation for official use of the United
Nations or the specified international organisation.
Explanation. - For the purposes of this entry, unless the context otherwise requires, “specified
international organisation” means an international organisation declared by the Central Government in
pursuance of section 3 of the United Nations (Privileges and Immunities Act) 1947, to which the provisions
of the Schedule to the said Act apply
GST
REVISION
Sl. No.10H Import services by Foreign diplomatic mission Sl. No.14 Renting of Hotel, Inn, etc. (Heading 9963 )
of notification Newly Inserted of notification
Import of services by Foreign diplomatic mission or consular post in India, or diplomatic agents or career Services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging
consular officers posted therein purposes, having declared tariff Value of Supply(substituted) of a unit of accommodation below
`1000 per day or equivalent.
Conditions :- Impact due to change in valuation Extra amenities provided by Hotel
Foreign diplomatic mission or consular post in India, or diplomatic agents or career consular officers Upto 26th After 26th Particulars Amount (`)
Particulars
posted therein shall be entitled to exemption from integrated tax leviable on the import of services subject July 2018 July 2018
Room Rent 700
to the conditions, - Declared Tariff 1200 1200
A/c Charges 200
(i) that the foreign diplomatic mission or consular post in India, or diplomatic agents or career consular Discount 600 600
Extra Furniture 200
officers posted therein, are entitled to exemption from integrated tax, as stipulated in the certificate Transaction value 600 600
issued by the Protocol Division of the Ministry of External Affairs, based on the principle of reciprocity; Value of Supply 1100
Gst liability Yes No(Exempt)
(ii) that the services imported are for official purpose of the said foreign diplomatic mission or consular Note – The Value of Supply as per sec 15 (2)(c)
Reason Exemp on based Exemp on based
post; or for personal use of the said diplomatic agent or career consular officer or members of his or includes all incidental expenses charged by the supplier
on Declared tariff on Value of Supply & thus no exemption shall be available as the value of
her family. supply exceeds ` 1000 & thus liable to GST.
(iii) that in case the Protocol Division of the Ministry of External Affairs, after having issued a certificate to
any foreign diplomatic mission or consular post in India, decides to withdraw the same subsequently,
it shall communicate the withdrawal of such certificate to the foreign diplomatic mission or consular
post;
(iv) that the exemption from the whole of the integrated tax granted to the foreign diplomatic mission or
consular post in India for official purpose or for the personal use or use of their family members shall
not be available from the date of withdrawal of such certificate.
Amendments in existing exemptions
Sl. No.41 Service by State Government Industrial Development

of notification Corporations (Heading 9972)
on For the purpose of this exemption, the Central Government, State Government, or Union
n ati
pla territory shall have 50 per cent. or more ownership in the entity directly or through an entity
Ex which is wholly owned by the Central Government or union territory. Newly Inserted Sl. No.5 Service to Govt. of article 243W (chapter 99)
of notification
Sl. No.4 Service to Govt. of article 243W (chapter 99) Services by a Central Government, State Government, Union Territory, Local Authority Omitted
or
of notification Governmental Authority by way of any activity in relation to any function entrusted to a Panchayat under
Services provided to the Central Government, State Government or Union territory or local authority or Omitted article 243G of the Constitution.
Note :
a Governmental authority by way of any activity in relation to any function entrusted to a Municipality
1. As per entry 2(zf) “Governmental authority” has the same meaning as assigned to it in the
under article 243W of the Constitution.
Explanation to clause (16) of section 2 of the Integrated Goods and Services Tax Act, 2017
GST
REVISION
Chapter 6 Time of Supply
Circulars & notifications upto 30-04-2018
Liability to pay GST in case of TDR in lieu of construction service and on construction service in
lieu of TDR has been deferred till possession/ right in the property is transferred to the land
owner by entering into a conveyance deed/ similar instrument [Notification No. 4/2018 CT (R)
dated 25.01.2018] & Notification No. 4/2018 IT (R) dated 25.01.2018.
Accordingly, in exercise of the powers conferred by section 148, the Central Government, on the
recommendations of the Council, hereby notifies the following classes of registered persons, namely-
(a) registered persons who supply development rights to a developer, builder, construction company
or any other registered person against consideration, wholly or partly, in the form of construction
service of complex, building or civil structure; and
(b) registered persons who supply construction service of complex, building or civil structure to
supplier of development rights against consideration, wholly or partly, in the form of transfer of
development rights,
Clarification:-
Sr. No Classes of Registered Person Time of supply
a) registered persons who supply development rights to a developer, Time when the possession
builder, construction company or any other registered person against or right in the property is
consideration, wholly or partly, in the form of construction service of transferred to the land
complex, building or civil structure; and owner by entering into a
conveyance deed or
b) similar instrument (eg.
allotment letter).
GST
REVISION
Chapter 7
Value of Supply
Circulars & notifications upto 31-10-2018 (Applicable for May 19 Exam)
CBIC Clarification (Circular No. 47/21/2018 dt 08/06/2018)
Issue 1:
i) Whether moulds and dies owned by Original Equipment Manufacturers (OEM) that are sent free of
cost (FOC) to a component manufacturer is leviable to tax and whether OEMs are required to
reverse input tax credit in this case?
Clarification :
Whether a Supply? : - Moulds and dies owned by the original equipment manufacturer (OEM) which are
provided to a component manufacturer (the two not being related persons or distinct persons) on FOC
basis does not constitute a supply as there is no consideration involved.
Input Tax Credit : - the moulds and dies are provided on FOC basis by the OEM to the component
manufacturer in the course or furtherance of his business, there is no requirement for reversal of input tax
credit availed on such moulds and dies by the OEM.
Value of Supply - the value of the supply made by the component manufacturer, the value of moulds and
dies provided by the OEM to the component manufacturer on FOC basis shall not be added to the value of
such supply because the cost of moulds/dies was not to be incurred by the component manufacturer and
thus, does not merit inclusion in the value of supply in terms of section 15(2)(b) of the CGST Act.
Issue 2:
ii) If there is a contract between OEM and component manufacturer for supply of components made
by using the moulds/dies belonging to the component manufacturer, but the same have been
supplied by the OEM to the component manufacturer on FOC basis?
Clarification :-
Value of Supply: - the amortized cost of such moulds/dies shall be added to the value of the components.
Input Tax Credit :- the OEM will be required to reverse the credit availed on such moulds/ dies, as the same
will not be considered to be provided by OEM to the component manufacturer in the course or furtherance
of the former's business.
GST
REVISION
Chapter 8
Input Tax Credit
GST
REVISION
Circulars & notifications upto 30-04-2018 Commissioner empowered to extend the time period for submission of quarterly details of
(Existing Amendments Applicable for Nov 18 & Onwards Exams) challans relating to job work under rule 45(3) of CGST Rules. [Notification No. 51/2017 CT dated
28.10.2017]
Commissioner empowered to extend the time period for submission of declaration under
rule 40(1)(b) of CGST Rules Existing Rule 45(3) of the CGST Rules lays down that the details of challans in respect of
goods dispatched to a job worker or received from a job worker or sent from one job
As per rule 40(1)(b) of the CGST Rules, the registered person claiming input tax credit under worker to another during a quarter shall be furnished for that period on or before the
Existing section 18(1) of CGST Act is required to electronically make a declaration that he is eligible to 25th day of the month succeeding the said quarter.
avail such credit, within 30 days from the date of becoming eligible to avail the said credit.
Amended Rule 45(3) has been amended to empower the CGST Commissioner or
Rule 40(1)(b) has been amended with effect from 01.07.2017 to empower CGST/IGST SGST/UTGST Commissioner to grant extension of time period for furnishing of the
Amended
Commissioner to extend the time period for submission of such declaration. Further, any said details.
extension of the time limit notified by the SGST Commissioner or UTGST Commissioner shall be
deemed to be notified by the CGST/IGST Commissioner.[Notification No. 22/2017 CT dated Impact of amendment:- Thus, now the said details may be furnished on or before the 25th day of the
17.08.2017] month succeeding the said quarter or within such further period as may be extended by the
Commissioner by a notification in this behalf.
Explanation inserted to Rule 42 & Rule 43 of CGST rules 2017 via N/N 55/2017 – CT dt 15/11/2017
Circulars & notifications between 01-05-2018 to 31-10-2018 (Applicable for May 19 Exam)
N/n 3/2018 C.T. dated 23-1-2018 (vide N/n 55/2017 dated 15-11-2017 substituted via N/n 3/2018 C.T.
dated 23-1-2018)
Explanation : For the purposes of rule 42 and 43, it is hereby clarified that the aggregate value of exempt Rule 36. Documentary requirements and conditions for claiming input tax credit.-
supplies shall exclude : (1) The input tax credit shall be availed by a registered person, including the Input Service Distributor, on
the basis of any of the following documents, namely,-
(a) The value of supply of services specified in the notification of the Government of India in the Ministry of
(a) an invoice issued by the supplier of goods or services or both.
Finance, Department of Revenue No. 42/2017-Integrated Tax (Rate), dated the 27th October, 2017
(b) an invoice issued by recipient (receiving goods and/or services from unregistered supplier)
published in the Gazette of India, Extraordinary, Part II, Section 3(i), vide number GSR 1338 (E) dated the
along with proof of payment of tax (in case of reverse charge)
27th October, 2017. i.e. supply of services having place of supply in Nepal or Bhutan against payment in
(c) a debit note issued by a supplier
Indian Rs. is exempted from payment of IGST.
(d) a bill of entry or any similar document prescribed under the Customs Act, 1962 for the
(b) The value of services by way of accepting deposits, extending loans or advances in so far as the assessment of integrated tax on imports;
consideration is represented by way of interest or discount, except in case of a banking company or a (e) Revised invoice
financial institution including a non-banking financial company, engaged in supplying services by way of (f) Documents issued by input service distributor.
accepting deposits, extending loans or advances; and
(2) Input tax credit shall be availed by a registered person only if all the applicable particulars as specified
(c) The value of supply of services by way of transportation of goods by a vessel from the customs station of in the provisions of Chapter VI are contained in the said document, and the relevant information, as
clearance in India to a place outside India. contained in the said document, is furnished in FORM GSTR-2 by such person.
Provided that if the said document does not contain all the specified particulars but contains the
Rule 45 : - Conditions and restrictions in respect of inputs and capital goods sent to the job worker details of the amount of tax charged, description of goods or services, total value of supply of goods or
Amendment services or both, GSTIN of the supplier and recipient and place of supply in case of inter-State supply,
Removal under the cover of Challan : The inputs, semi-finished goods or capital goods shall be sent to the input tax credit may be availed by such registered person (Inserted via N/N 39/2018 dt 04/09/2018)
job worker under the cover of a challan issued by the principal, including where such goods are sent directly
to a job-worker and where the goods are sent from one job worker to another job worker, the challan may be
issued either by the principal or the job worker sending the goods to another job worker.
Provided that the challan issued by the principal may be endorsed by the job worker, indicated therein the
quantity and description of goods where the goods are sent by one job worker to another or are returned to the
principal
Provided further that the challan endorsed by the job worker, indicating therein the quantity and description of
goods where the goods are sent by one job worker to another or are returned to the principal (inserted via N/n
GST 14/2018 - C.T dated 23-3-2018)
REVISION
Rule 37. Reversal of input tax credit in the case of non-payment of consideration.-
(1) A registered person, who has availed of input tax credit on any inward supply of goods or services or both,
but fails to pay to the supplier thereof, the value of such supply along with the tax payable thereon,
within the time limit specified in the second proviso to sub-section (2) of section 16,
shall furnish the details of such supply, the amount of value not paid and the amount of input tax
credit availed of proportionate to such amount not paid to the supplier in FORM GSTR-2 for the month
immediately following the period of one hundred and eighty days from the date of the issue of the
invoice:
Provided that the value of supplies made without consideration as specified in Schedule I of
the said Act shall be deemed to have been paid for the purposes of the second proviso to subsection
(2) of section 16.
Provided further that the value of supplies on account of any amount added in accordance
with the provisions of clause (b) of sub-section (2) of section 15 shall be deemed to have been paid for
the purposes of the second proviso to sub-section (2) of section 16 (Inserted via N/N 26/2018- CT dt
13/06/2018 )
Clarification regarding recovery of excess credit by an Input Service Distributor Circular No.
71/45/2018 dt 26/10/2018
Issue:- the manner of recovery of excess credit distributed by an Input Service Distributor (ISD) in
contravention of the provisions contained in section 20 of the CGST Act.
Clarification:-
1. According to Section 21 of the CGST Act where the ISD distributes the credit in contravention of the
provisions contained in section 20 of the CGST Act resulting in excess distribution of credit to one or more
recipients of credit, the excess credit so distributed shall be recovered from such recipients along with
interest and penalty if any.
2. The recipient unit(s) who have received excess credit from ISD may deposit the said excess amount
voluntarily along with interest if any by using FORM GST DRC-03.
3. If the said recipient unit(s) does not come forward voluntarily, necessary proceedings may be initiated
against the said unit(s) under the provisions of section 73 or 74 of the CGST Act as the case may be. FORM
GST DRC-07 can be used by the tax authorities in such cases.
4. It is further clarified that the ISD would also be liable to a general penalty under the provisions contained in
section 122(1)(ix) of the CGST Act.
GST
REVISION
Chapter 9
Place of Supply
GST
REVISION
Circulars & notifications upto 30-04-2018 Advertisements on internet Number of internet subscribers in each State/Union Territory
(Existing Amendments Applicable for Nov 18 & Onwards Exams) 10 Internet subscribers can be ascertained from the internet
subscriber figures published by the Telecom Regulatory
Authority of India (TRAI). Figures for the last quarter of a
IGST Rules given financial year will be used for calculating the number of
Provisions introduced for computing proportionate value of advertisement services attributable to different internet subscribers for the succeeding financial year.
States or Union territories in the absence of any contract between the supplier of service and recipient of Where the internet subscriber figures relate to a region
services [Notification No. 12/2017 IT dated 15.11.2017] comprising of more than one State/Union territory, the
subscriber figures for a State/Union territory of that region
Place of Supply of Advertisement service to Government(IGST Rules) shall be calculated in the ratio of the populations of that
State/Union territory, as determined in the latest census.
Factor which determines the proportionate Advertisements through Number of telecom subscribers in each State/Union Territory
value of service attributable to the 11
Sl. SMS Telecom subscribers in a telecom circle can be ascertained
Typeof advertisement dissemination in each State/Union territory from the telecom subscribers figures published by the TRAI.
No. Figures for a given quarter will be used for calculating the
Advertisements in newspapers and Amount payable for publishing an advertisement in subscribers for the succeeding quarter.
1 publications all the editions of a newspaper or publication, Where such figures relate to a telecom circle comprising of
which are published in each State/Union territory more than one State/Union territory, the subscriber figures
Advertisements through printed Amount payable for the distribution of a specific for that State/Union territory shall be calculated in the ratio of
the populations of that State/Union territory, as determined in
2 material like pamphlets, leaflets, number of such material in each State/Union the latest census.
diaries, calendars, T-shirts, etc. territory
Advertisements in hoardings (other Amount payable for the hoardings located in each
3 than those on trains) State/ Union territory Clarification on Taxability of satellite launch services via Circular No. 2/1/2017 IGST dated
27.09.2017
Advertisements on trains Length of the railway track in each State/Union
4 It has been clarified that place ofsupply of satellite launch services supplied by ANTRIX Corporation
Territory, for that train
Limited, a wholly owned Government of India Company, to international customers would be outside
Advertisements on the back of utility Amount payable for the advertisements on bills India in terms of section 13(9) and such supply which meets the requirements of section 2(6), will
5 bills of oil and gas companies, etc. pertaining to consumers having billing addresses in each
State/Union territory constitute export of service and shall be zero rated in accordance with section 16.
Where satellite launch service is provided to a person located in India, the place of supply of satellite
Advertisements on railway tickets Number of Railway Stations in each State/Union launch service would be governed by section 12(8) and would be taxable under CGST Act, UTGST Act
6 territory
Advertisements on radio stations Amount payable to such radio station, which by virtue of or IGST Act, as the case may be.
7 its name is part of each State/Union territory
Advertisement on television Number of viewers of such channel in each State/

8 channels union Territory.
Viewership can be ascertained from the channel
viewership figures published by the Broadcast
Audience Research Council. Figures for the last week
of a given quarter will be used for calculating
viewership for the succeeding quarter.
Where the channel viewership figures relate to a region
comprising of more than one State/Union territory, the
viewership figures for a State/ Union territory of that
region, will be calculated in ratio of the populations of
that State/Union territory, as determined in the latest
Census.
Advertisements in cinema halls Amount payable to a cinema hall or screens in a
9 multiplex in each State/ Union territory.
GST
REVISION
Circulars & notifications between 01-05-2018 to 31-10-2018 (Applicable for May 19 Exam) Whereas, as per section 12(3)(c) of the IGST Act, the place of supply of services by way of
accommodation in any immovable property for organising any functions shall be the location at which
the immovable property is located.
Thus, in such cases, if the location of the supplier and the place of supply is in the same State/ Union
CBIC Clarification via Circular no 48/22/2018 dt 14/06/2018
territory, it would be treated as an intra-State supply
Issue: ii) It is an established principle of interpretation of statutes that in case of an apparent conflict between
Whether the benefit of zero rated supply can be allowed to all procurements by a SEZ developer or a two provisions, the specific provision shall prevail over the general provision.
SEZ unit such as event management services, hotel and accommodation services, consumables etc? iii) In the instant case, section 7(5)(b) of the IGST Act is a specific provision relating to supplies of goods
or services or both made to a SEZ developer or a SEZ unit, which states that such supplies shall be
Clarification:
treated as inter-State supplies.
i) As per section 16(1) of the IGST Act, “zero rated supplies” means supplies of goods or services or both to a
iv) It is therefore, clarified that services of short term accommodation, conferencing, banqueting etc.,
SEZ developer or a SEZ unit. Whereas, section 16(3) of the IGST Act provides for refund to a registered
provided to a SEZ developer or a SEZ unit shall be treated as an inter-State supply
person making zero rated supplies under bond/LUT or on payment of integrated tax, subject to such
conditions, safeguards and procedure as may be prescribed.
Further, as per the second proviso to rule 89(1) of the Central Goods and Services Tax Rules, 2017
(CGST Rules in short), in respect of supplies to a SEZ developer or a SEZ unit, the application for refund
shall be filed by the:
(a) supplier of goods after such goods have been admitted in full in the SEZ for authorised operations, as
endorsed by the specified officer of the Zone;
(b) supplier of services along with such evidences regarding receipt of services for authorised operations as
endorsed by the specified officer of the Zone.
ii) A conjoint reading of the above legal provisions reveals that the supplies to a SEZ developer or a SEZ unit
shall be zero rated and the supplier shall be eligible for refund of unutilized input tax credit or integrated tax
paid, as the case may be, only if such supplies have been received by the SEZ developer or SEZ unit for
authorized operations. An endorsement to this effect shall have to be issued by the specified officer of the
Zone.
iii) Therefore, subject to the provisions of section 17(5) of the CGST Act, if event management services, hotel,
accommodation services, consumables etc. are received by a SEZ developer or a SEZ unit for authorised
operations, as endorsed by the specified officer of the Zone, the benefit of zero rated supply shall be
available in such cases to the supplier.
CBIC Clarification via Circular no 48/22/2018 dt 14/06/2018

Issue
Whether services of short-term accommodation, conferencing, banqueting etc. provided to a Special
Economic Zone (SEZ) developer or a SEZ unit should be treated as an interState supply (under section
7(5)(b) of the IGST Act, 2017) or an intra-State supply (under section 12(3)(c) of the IGST Act, 2017)?
Clarification:
i) As per section 7(5) (b) of the Integrated Goods and Services Tax Act, 2017 (IGST Act in short), the supply of
goods or services or both to a SEZ developer or a SEZ unit shall be treated to be a supply of goods or
services or both in the course of inter-State trade or commerce.
GST
REVISION
Chapter 10
Registration
GST
REVISION
Circulars & notifications upto 30-04-2018 Rule 20 – Application for cancellation of registration
Existing proviso deleted : Provided that no application for the cancellation of registration shall be
Sec 23(2) of CGST Act:- Exempt suppliers of services through an e-commerce platform from considered in case of a taxable person, who has registered voluntarily, before the expiry of a period of one
obtaining compulsory registration [Notification No. 65/2017 dt 15/11/2017 CT] year from the effective date of registration.
Impact of above amendment
Person making supplies of services other than supplies specified u/s 9(5) of CGST Act through an ECO who is The above proviso given in the aforesaid rule has been removed & thus by this exclusion its clarified that a
required to collect tax at source u/s 52 of CGST Act & has an aggregate T/O, to be computed on all India not person who has voluntarily registered can now apply for cancellation of registration without any prescribed
exceeding `20 lakhs F.Y. (`10 lakh in special category state except state of J & K) are notified as category of time limit.
exempted persons from registration.
Impact of this amendment:-
Earlier as per section 24 of CGST Act, compulsory registration requires to supplier of service through e- Foreign Diplomatic Mission / UN Organization to be granted centralized UIN [Notification No.
75/2017 CT dated 29.12.2017]
commerce operator, who is required to collect tax at source under section 52 of CGST Act.
Rule 17 of the CGST Rules has been amended to provide that the Unique Identity Number granted to
A major relief to the small scale service providers who are providing services through ecommerce operator, as
any specialised agency of the UN or any Multilateral Financial Institution and Organisation notified under
they need not register themselves if their turnover is below the threshold limit. the United Nations (Privileges and Immunities) Act, 1947, Consulate or Embassy of foreign countries
Note: This benefit is only given to Supplier of Service and not for supplier of goods. If supplier of goods supply shall be applicable to the territory of India.
any goods through ECO then liable to register compulsory u/s 24. Such centralized UIN will lessen the compliance burden on Foreign Diplomatic Missions / UN
Organizations.
Clarification regarding levy of GST on homestays [Circular No. 27/01/2018 dt 04/01/2018]
Effective date of amendment in registration details can be earlier than the date of submission of
Issue : Whether homestays providing accommodation through an Electronic Commerce Operator, below the application for amendment only when the Commissioner orders the same for reasons to be
threshold limit are exempt from taking registration? recorded in writing [Notification No. 75/2017 CT dated 29.12.2017]
Clarification: Rule 19 of the CGST Rules,2017 prescribes the provisions for amendment of particulars furnished in
Notification No. 17/2017-Central Tax (Rate), has been issued making ECOs liable for payment of GST in case application for registration.
of accommodation services provided in hotels, inns guest houses or other commercial places meant for .The said rule has been amended to provide that any particular of the application for registration shall not
residential or lodging purposes provided by a person having turnover below Rs. 20 lakhs (Rs. 10 lakhs in special stand amended with effect from a date earlier than the date of submission of the application for
category states) per annum and thus not required to take registration under section 22(1) of CGST Act. amendment on the common portal except with the order of the Commissioner for reasons to be recorded
in writing and subject to such conditions as the Commissioner may, in the said order, specify.
Such persons, even though they provide services through ECO, are not required to take registration in view of
section 24(ix) of CGST Act, 2017.
Rule 17 – Assignment of UIN to certain Special entities sub rule as given below is inserted via N/N
75/2017 – CT dt 29.12.2017
(1A) The Unique Identity Number granted under sub-rule (1) to a person under sec 25(9)(a) of CGST Act shall
be applicable to the territory of India.
Impact of above amendment
Option of centralized registration given to entities having UIN & the Central Government will be responsible for
all compliance in respect of such entities.
GST
REVISION
Clarification on Advance tax to be deposited by a casual taxable person

(Circular No. 71/45/2018 dt 26/10/2018)
Issue:-Whether the amount required to be deposited as advance tax while taking registration as a casual
taxable person (CTP) should be 100% of the estimated gross tax liability or the estimated tax liability
payable in cash should be calculated after deducting the due eligible ITC which might be available to CTP?
Clarification:-
1. It has been noted that while applying for registration as a casual taxable person, the FORM GST REG-1
seeks information regarding the “estimated net tax liability” only and not the gross tax liability.
2. It is accordingly clarified that the amount of advance tax which a casual taxable person is required to
deposit while obtaining registration should be calculated after considering the due eligible ITC which
might be available to such taxable person.
Clarification in case of long run exhibition by a casual taxable person
(Circular No. 71/45/2018 dt 26/10/2018)
Issue:-
As per section 27 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the said Act),
period of operation by causal taxable person is ninety days with provision for extension of same by the
proper officer for a further period not exceeding ninety days. Various representations have been received for
further extension of the said period beyond the period of 180 days, as mandated in law.
Clarification:-
1. It is clarified that in case of long running exhibitions (for a period more than 180 days), the taxable person
cannot be treated as a CTP and thus such person would be required to obtain registration as a normal
taxable person.
2. While applying for normal registration the said person should upload a copy of the allotment letter
granting him permission to use the premises for the exhibition and the allotment letter/consent letter shall be
treated as the proper document as a proof for his place of business.
3. In such cases he would not be required to pay advance tax for the purpose of registration.
4. He can surrender such registration once the exhibition is over.
An explanation added stating definition of handicraft goods via N/N 21/2018 -CT(R)
dt 26 /07/2018 & N/N 3/2018 -IT(R) dt 22/10/2018
Explanation - For the purpose of this notification, the expression “handicraft goods” means –
ÜGoods predominantly made by hand even though some tools or machinery may also have been used in the
process;
Üsuch goods are graced with visual appeal in the nature of ornamentation or in-lay work or some similar work
of a substantial nature;
Üpossess distinctive features, which can be aesthetic, artistic, ethnic or culturally attached and are amply
different from mechanically produced goods of similar utility.
Note:- After this new notification issued wrt sec 24 only a person if satisfying the above definition of
handicraft goods and engaged in inter state supply of such goods will be exempted from registration
requirement. In N/N 21/2018 -CT (R)39 entries are covered & in N/N 3/2018 - IT (R) 28 entries are covered GST
REVISION
Chapter 11
Tax Invoice, Credit & Debit Notes
GST
REVISION
Circulars & notifications upto 30-04-2018 Question 1:-
A customer may avail numerous services from the Bank / insurer in a given taxable period. Is it mandatory for
Rule 46A inserted via N/N 45/2017 – Central Tax dt 13.10.2017 Banks to issue a tax invoice for each transaction or can the Bank issue a consolidated invoice for the service
rendered during the tax period?
Rule 46A - Invoice-cum-bill of supply- Notwithstanding anything contained in rule 46 or rule 49 or rule
54, where a registered person is supplying taxable as well as exempted goods or services or both to an Answer :
unregistered person, a single “invoice-cum-bill of supply” may be issued for all such supplies. As per the provisions contained in the first proviso to Rule 47 of the CGST Rules, 2017 an insurer, a banking
company or a financial institution, including a NBFC may issue invoices within 45 days from the date of supply
of service. Further, sub-rule (2) of rule 54 of CGST Rules, 2017 provides that such entities may issue any
Question : - other document in lieu of the tax invoice. Accordingly, such entities may issue a consolidated statement/
Jai, a registered supplier, runs a general store in Ludhiana, Punjab. Some of the goods sold by him are exempt
whereas some are taxable. You are required to advise him on the following issues: invoice/ advice to the customer at the end of the month, with the details of all the charges levied during such
(I) Whether Jai is required to issue a tax invoices in all cases, even if he is selling the goods to the end month and GST payable thereon.
consumers?
(ii) Jai sells some exempted as well as taxable goods valuing ` 5,000 to a school student. Is he mandatorily Question 2:-
required to issue two separate GST documents? When a banking company is not required to serially number its invoices / document for supply of its services,
how will the service recipient get credit for GST on the services provided by the bank?
Answer
(a) As per section 31(1) of the CGST Act, 2017, every registered person supplying taxable goods is required to Answer :
issue a tax invoice. Section 31(3)(c) of the CGST Act, 2017 stipulates that every registered person supplying Under Rule 54(2) of the CGST Rules, 2017 a banking company or a financial institution including a NBFC or
exempted goods is required to issue a bill of supply instead of tax invoice Further, as per section 31(3)(b) of the an insurer can issue an invoice or any other document in lieu thereof whether or not serially numbered and
CGST Act, 2017 read with rule 46 of the CGST Rules, 2017, a registered person may not issue a tax invoice if: whether or not containing the address of the recipient but containing other information as mentioned under
(I) value of the goods supplied < ` 200,
Rule 46.
(ii) the recipient is unregistered; and
(iii) the recipient does not require such invoice.
There is no restriction on the invoice/document being a consolidated invoice/document but it must bear an
Instead such registered person shall issue a Consolidated Tax Invoice for such supplies at the close of each identification number, which need not necessarily be serially numbered.
day in respect of all such supplies. The recipient of service will get the credit for GST so long as the bank, etc. uploads the details of the invoice /
(b) As per rule 46A of the CGST Rules, 2017, where a registered person is supplying taxable as well as document under that number with GSTIN of the recipient in its statement if FORM GSTR-1.
exempted goods or services or both to an unregistered person, a single “invoice-cum-bill of supply” may be
issued for all such supplies. Thus, there is no need to issue a tax invoice and a bill of supply separately to the Question 3:-
school student in respect of supply of the taxable and exempted goods respectively. Whether commission paid to insurance agents shall be construed as supplies received under Section 9(3) of
CGST Act, 2017? If yes, whether the Life Insurance Company can raise a consolidated invoice for such
commission payments?
Rule 54 – Tax invoice in special cases - changes made for invoice issue pertaining to banking,
insurance & NBFCs Answer:-
Sr. No. 7 of notification No. 13/2017-Central Tax (Rate), dated 28th June, 2017 as amended covers
Where the supplier of taxable service is an insurer or a banking company or a financial institution, including supplies received from Insurance Agents and provides for the Insurance Company to pay GST on such
a non-banking financial company, the said supplier [may] issue a [consolidated] tax supplies under Section 9(3) of the CGST Act, 2017. In such cases, the insurance company may issue agent-
wise consolidated invoice at the end of the month for the supply of services received during the month.
invoice or any other document in lieu thereof,
by whatever name called [for the supply of services made during a month at the end of the month] ,
whether issued or made available, physically or electronically whether or not serially numbered, and
whether or not containing the address of the recipient of taxable service but containing other information Rule 55A inserted via N/N 45/2017 – Central Tax dt 13.10.2017
as mentioned under rule 46. Newly Inserted
Rule 55A. Tax Invoice or bill of supply to accompany transport of goods.
Effect of amendment:- Specific changes and relaxation for issuance of invoice on consolidated basis for
The person-incharge of the conveyance shall carry a copy of the tax invoice or the bill of supply issued in
this sector.
accordance with the provisions of rules 46, 46A or 49 in a case where such person is not required to carry an e-
way bill under these rules. GST
REVISION
Note:- On receipt of such time expired medicines if destroyed by manufacturer, The ITC on such goods will
INPUT SERVICE DISTRIBUTOR be reversed as per sec 17(5)(h)
1) If return of goods against a 'Credit Note'
Rule 54 (1A) (a) A registered person, having the same PAN and State code as an Input Service Distributor,
may issue an invoice or, as the case may be, a credit or debit note to transfer the credit of common input Ü As per Section 34(1) of the CGST Act the supplier can issue a credit note where the goods are
services to the Input Services Distributor, which shall contain the following details : Newly inserted returned back by the recipient. Thus, the manufacturer or the wholesaler who has supplied the
goods to the wholesaler or retailer, as the case may be, has the option to issue a credit note in
(i) name, address and Goods and Services Tax Identification Number of the registered person having relation to the time expired goods returned by the wholesaler or retailer,
the same PAN and same State code as the Input Service Distributor Ü In such a scenario, the retailer or wholesaler may return the time expired goods by issuing a delivery
(ii) a consecutive serial number not exceeding sixteen characters, in one or multiple series, containing challan. It may be noted that there is no time limit for the issuance of a credit note in the law except
alphabets or numerals or special characters - hyphen or dash and slash symbolised as “_” and “/” with regard to the adjustment of the tax liability in case of the credit notes issued prior to the month of
respectively, and any combination thereof, unique for a financial year; September following the end of the financial year and those issued after it.
(iii) date of its issue Ü As per sec 34(2) the tax liability may be adjusted by the supplier, subject to the condition that the
person returning the time expired goods has either not availed the ITC or if availed has reversed the
(iv) Goods and Services Tax Identification Number of supplier of common services and original invoice ITC so availed against the goods being returned.
number whose credit is sought to be transferred to the Input Service Distributor
Ü if the time limit specified section 34(2) of the CGST Act has lapsed, a credit note may still be
(v) Name, address and Goods and Services Tax Identification Number of the Input Service Distributor. issued by the supplier for such return of goods but the tax liability cannot be adjusted by him in his
(vi) taxable value, rate and amount of the credit to be transferred and hands.
(vii) Signature or digital signature of the registered person or his authorised representative. Ü In case time expired goods are returned beyond the time period specified in the 34(2) of the
CGST Act and a credit note is issued consequently, there is no requirement to declare such credit
note on the common portal by the supplier (i.e. by the person who has issued the credit note) as tax
liability cannot be adjusted in this case.
Procedure to be followed in respect of return of time expired drugs or medicines (Circular
No. 72/46/2018 dt 26.10.2018) Illustration:-
Issue - The common trade practice in the pharmaceutical sector is that the drugs or medicines (hereinafter SI.No. Date of Supply of Date of return of time Treatment in terms of tax liability & credit
referred to as “goods”) are sold by the manufacturer to the wholesaler and by the wholesaler to the retailer goods from expired goods from note
on the basis of an invoice/bill of supply as case may be. manufacturer/ retailer /wholesaler
It is significant to mention here that such goods have a defined life term which is normally referred to as the wholesaler to to wholesaler /
date of expiry. Such goods which have crossed their date of expiry are colloquially referred to as time wholesaler/ retailer manufacturer
expired goods and are returned back to the manufacturer, on account of expiry, through the supply chain.
Clarification – Case 1 1st July, 2017 20th September, Credit note will be issued by the supplier
2018 (manufacturer / wholesaler) and the same to be
SI.No. If return of goods by category of person Tax Compliance uploaded by him on the common portal.
Subsequently, tax liability can be adjusted by
1 Registered person Ü Issue a fresh tax invoice for the returned expired goods such supplier provided the recipient (wholesaler
Ü Value of supply shall be the value of the said goods as / retailer) has either not availed the ITC or if
shown in the invoice on basis of which they were supplied availed has reversed the ITC.
earlier
Case 2 1st July, 2017 20th October, Credit note will be issued by the supplier
Ü ITC shall be available to wholesaler / manufacturer as per (manufacturer / wholesaler) but there is no
sec 16 2018
requirement to upload the same on the common
Composition Supplier Ü Issue of bill of supply and pay tax at the rate applicable to portal. Subsequently tax liability cannot be
2
composition taxpayer adjusted by such supplier
Ü Value of supply shall be same as it was in original invoice
No ITC to the recipient
GST 3 Unregistered Supplier Ü Any commercial document without charging taxes
REVISION
Chapter 12
E-Way Bill, Accounts & Records

Accounts and Records
Clarification on issues in respect of maintenance of books of accounts relating to additional
Clarification regarding E-way Bill via Press release dt 31/03/2018 place of business by a principal or an auctioneer for the purpose of auction of tea, coffee,
rubber etc. [Circular No. 23/23/2017 GST dated 21.12.2017]
Situation 1 :- Consider a situation where a consignor is required to move goods from City X to City Z. He
appoints Transporter A for movement of his goods. Transporter A moves the goods from City X to City Y. Issue:
For completing the movement of goods i.e. , from City Y to City Z, Transporter A now hands over the As per the first proviso of section 35(1) of the CGST Act both the principal and the auctioneer are required to
maintain the books of accounts relating to their additional place(s) of business in such places. However,
goods to Transporter B. Thereafter, the goods are moved to the destination i.e. from City Y to City Z by principal and auctioneer face difficulties in relation to maintaining books of accounts at each and every
Transporter B. How would the e-way bill be generated in such situations? additional place of business related to stock of goods like tea, coffee, rubber, etc. meant for supply through
Clarification :- It is clarified that in such a scenario, only one e-way bill would be required. Part A can be an auction.
filled by the consignor and then the e-way bill will be assigned by the consignor to Transporter A. Whether both the principal as well as the auctioneer can be allowed to maintain the books of accounts
Transporter A will fill the vehicle details, etc. in Part B and will move the goods from City X to City Y. relating to the additional place(s) of business at their principal place of business itself?
On reaching City Y, Transporter A will assign the said e-way bill to the Transporter B. Thereafter,
Clarification:
Transporter B will be able to update the details of Part B. Transporter B will fill the details of his vehicle
(a) The principal and the auctioneer of tea, coffee, rubber etc. are required to declare warehouses
and move the goods from City Y to City Z. where such goods are stored as their additional place of business. The buyer is also required to
disclose such warehouse as his additional place of business if he wants to store the goods
Situation 2: - Consider a situation where a consignor hands over his goods for transportation on Friday to purchased through auction in such warehouses.
transporter. However, the assigned transporter starts the movement of goods on Monday. How would (b) Both the principal and the auctioneer are required to maintain the books of accounts relating to each
the validity of e-way bill be calculated in such situations? and every place of business in that place itself as per the first proviso to sub-section (1) of section
Clarification : - It is clarified that the validity period of e-way bill starts only after the details in Part B are 35 of the CGST Act. However, in case difficulties are faced in maintaining the books of accounts, it
is clarified that they may maintain the books of accounts relating to the additional place(s) of
updated by the transporter for the first time.
business at their principal place of business instead of such additional place(s).
In the given situation, Consignor can fill the details in Part A on Friday and handover his goods to the (c) Such principal or auctioneer shall intimate their jurisdictional proper officer in writing about the
transporter. When the transporter is ready to move the goods, he can fill the Part B i.e. the assigned maintenance of books of accounts relating to additional place(s) of business at their principal place
transporter can fill the details in Part B on Monday and the validity period of the e-way bill will start from of business.
Monday. (d) Further, the principal or the auctioneer shall be eligible to avail input tax credit (ITC) subject to the
fulfilment of other provisions of the Act and the rules made thereunder.
It is further clarified that this Circular is applicable to the supply of tea, coffee, rubber, etc. where the
auctioneer claims ITC in respect of the supply made to him by the principal before the auction of
such goods and the said goods are supplied only through auction.
GST
REVISION
Circulars & notifications between 01-05-2018 to 31-10-2018 (Applicable for May 19 Exam) The transport industry is facing difficulties due to the same and a request has been made to treat these
godowns as transit godowns.
Rule 138 (13) :- Cases where E-way is not required to be generated
o) where empty cylinders for packing of liquefied petroleum gas are being moved for reasons other Clarification:-
than supply. As per the above stated provisions it is hereby clarified that –
Note:- The above clause has been added to rule 138(13) via N/N 26/2018 CT dt 13/06/18 E-way Bill:-
Ü Goods are to be accompanied by E- way bill when stored in warehouse prior to delivery in
transporters godown
Rule 138A:- Documents shall be carried by a person-in-charge of a conveyance
Ü The transporters godown to be declared as an Additional place of business of recipient
Proviso:- Provided further that in case of imported goods, the person in charge of a conveyance shall Ü The transportation under the e-way bill shall be deemed to be concluded once the goods have
also carry a copy of the bill of entry filed by the importer of such goods and shall indicate the number and reached the transporter's godown . Hence, no need to extend e-way bill in such cases.
date of the bill of entry in Part A of FORM GST EWB-01. Ü whenever the goods are transported from the transporter's godown to the recipient taxpayer's
Newly Inserted
premises, the relevant provision of E-way bill rules shall apply.
Note:- The above proviso is added to rule 138A via N/N 39/2018 CT dt 04/09/18
Books of accounts:-
Ü in relation to goods stored at the transporter's godown by the recipient taxpayer may be maintained
Rule 138 C:- Report pertaining to inspection be uploaded by the Department by him at his principal place of business.
Proviso “Provided that where the circumstances so warrant, the Commissioner, or any other officer Ü It may be noted that the facility of declaring additional place of business by the recipient taxpayer is in
authorised by him, may, on sufficient cause being shown, extend the time for recording of no way putting any additional compliance requirement on the transporters.
the final report in Part B of FORM EWB-03, for a further period not exceeding three days.
Newly Inserted CBIC CLARIFICATION [Circular No. 47/21/2018 GST dated 08.06.18]
Transportation of goods by Railway
Explanation The period of twenty four hours or, as the case may be, three days shall be Issue Clarification
counted from the midnight of the date on which the vehicle was
In case of transportation of goods by railways, As per proviso to rule 138(2A) of the CGST Rules, 2017,
intercepted.” whether goods can be delivered even if the e- the railways shall not deliver the goods unless the e-way
way bill is not produced at the time of delivery? bill is produced at the time of delivery.
Note:- The above proviso is inserted to rule 138C via N/N 28/2018-CT, dt 19.06.2018.
Transportation of goods to another State
Issue Clarification
Clarification on E-way bill in case of storing of goods in godown of transporter [Circular No.
61/35/2018 – CT dt 04/09/2018] Where goods transit through another State It may be noted that e-way bill generation is not
while moving from one area in a State to another dependent on whether a supply is inter State or not, but
area in the same State. on whether the movement of goods is inter-State or not.
Issue:- Whether E-way bill is required in case of transportation of goods from transporters godown to any Therefore, if the goods transit through a
other place of recipient taxpayer second State while moving from one place in a State to
another place in the same State, an e-way bill is
Facts:- Textile traders use transporters' godown for storage of their goods due to their weak financial required to be generated.
conditions. Movement of goods from DTA unit to SEZ unit
The transporters providing such warehousing facility will have to get themselves registered under GST Issue Clarification
and maintain detailed records in cases where the transporter takes delivery of the goods and temporarily
stores them in his warehouse for further transportation of the goods till the consignee/recipient Where goods move from a DTA unit to a SEZ Where goods move from a DTA unit to a SEZ unit or vice
taxpayer's premises. unit or vice versa located in the same State versa located in the same State, there is no requirement
to generate an eway bill, if the same has been
exempted under rule 138(14)(d) of the CGST Rules
GST
REVISION
Accounts and Records
Section 35(2) read with rule 58:- Records to be maintained by owner or operator of godown or
warehouse and transporters
For the purposes of E-Way Bill rules, a transporter who is registered in more than one State or Union
Territory having the same Permanent Account Number,
he may apply for a unique common enrolment number by submitting the details in FORM
GST ENR-02 using any one of his Goods and Services Tax Identification Numbers, and
upon validation of the details furnished, a unique common enrolment number shall be
generated and communicated to the said transporter:
Provided that where the said transporter has obtained a unique common enrolment number, he
shall not be eligible to use any of the Goods and Services Tax Identification Numbers for the purposes of
the said E-way Bill Rules. [N/N 28/2018 CT dt 19/06/18] Newly Inserted
GST
REVISION
Chapter 13
Returns
GST
REVISION
Circulars & notifications upto 30-04-2018 Circulars & notifications between 01-05-2018 to 31-10-2018 (Applicable for May 19 Exam)
Notified category of person for quarterly filing of return GSTR-1 [N/N 32/2018 CT dt 10/08/18 & N/N
43/2018 CT dt 10/09/18]
Form GSTR 3B extended further and Form GSTR 2 has been postponed
As a measure of easing the compliance requirement for small tax payers, GSTR-1 has been allowed to be
GSTR 1 – Quarterly returns for persons having aggregate turnover of less than 1.5 cr ( N/N 71 filed quarterly return having aggregate turnover of upto 1.5 Cr in preceding or current financial year. As of
/2017 dt 29/12/2017) now this facility has been given till January - March 2019.
Notified category of person for monthly filing of return GSTR-1 [N/N 33/2018 CT dt 10/08/18 & N/N
As per powers exercised by sec 148 of CGST Act, 2017 , the Central Govt has notified the registered 44/2018 CT dt 10/09/18]
persons having aggregate turnover of upto 1.5 crore rupees in the preceding financial year or the
current financial year , as the class of registered person who shall follow the procedure of filing Tax payers with an aggregate turnover of more than 1.5 Cr will however continue to file GSTR -1 on
Quarterly return of GSTR -1 for furnishing the details of outward supply of goods or services. monthly basis.
Clarification issued via Circular no. 26/26/2017 – CT dt 29/12/2017

Payment of taxes for discharge of tax liability as per FORM GSTR-3B.– (N/N 34/2018-CT dt
The above mentioned class of registered person has the option to choose whether to file return GSTR 10/08/2018)
1 quarterly or monthly. Hence, once he opts to file any of the option he cannot change the return filing Every registered person furnishing the return in FORM GSTR-3B of the said rules shall,
periodicity for the entire financial year thereafter. subject to the provisions of section 49 of the said Act, discharge his liability towards tax, interest, penalty,
fees or any other amount payable under the said Act by debiting the electronic cash ledger or electronic
Also if he wrongly reports his aggregate turnover and opts to file return quarterly, he may be liable for
punitive action under CGST Act, 2017. credit ledger, as the case may be, not later than the last date, as specified in the first paragraph, on which
he is required to furnish the said return.
Q.55 : What is the procedure for enrolment as GSTP ?

Ans.: The procedure for enrolment of GSTP has been depicted in the following :
(i) An application in prescribed form may be made electronically through the common portal for
enrolment as GSTP.
(ii) The application shall be scrutinised and GST practitioner certificate shall be granted in the
prescribed form.
(iii) In case, the application is rejected, proper reasons shall have to be given.
(iv) The enrolment once done remains valid till it is cancelled.
(v) No person enrolled as a GSTP shall be eligible to remain enrolled unless he passes such
examination conducted at such periods and by such authority as may be notified by the
Commissioner on the recommendations of the Council.
As notified by CBIC via N/N 24/2018 CT - dt 28/05/2018 the National Academy of Customs,
Indirect Taxes and Narcotics, Department of Revenue, Ministry of Finance, Government of
India, as the authority to conduct the examination as per the said sub-rule.
(vi) Any person who has been enrolled as GSTP by virtue of him being enrolled as a Sales Tax
Practitioner or Tax Return Preparer under the earlier Indirect Tax law shall remain enrolled only
for a period of 18 months from the appointed date unless he passes the said examination within
the said period of 18 months. Amended GST
REVISION
Chapter 14
Payment of Tax
GST
REVISION
Sec 51: Tax deduction at source
1 Notwithstanding anything to the contrary contained in this Act, the Government may mandate,–– Proviso:-
Provided that no deduction shall be made
a a department or establishment of the Central Government or State Government; or if the location of the supplier and the place of
b local authority; or supply is in a State or Union territory which is different
from the State or as the case may be, Union territory of
c Governmental agencies; or registration of the recipient
such persons or category of persons as may be notified by the Government on the

d
recommendations of the Council
(hereafter in this section referred to as “the deductor”), to deduct tax

Ü at the rate of 1% (same provision under SGST Act as CGST 1% + SGST 1%)
Ü from the payment made or credited to the supplier (hereafter in this section referred to as
“the deductee”) of taxable goods or services or both,
where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees
Explanation –For the purpose of deduction of tax specified above, the value of supply shall be taken as As per Section 2(69): “local authority” means
the amount excluding the central tax, State tax, Union territory tax, integrated tax and
cess indicated in the invoice a) “Panchayat” as defined in clause (d) of article 243 of the Constitution;
CSGT SGST IGST Where value of supply b) a “Municipality” as defined in clause (e) of article 243P of the Constitution;
TDS
under a contract c) a Municipal Committee, a Zilla Parishad, a District Board, and any other authority legally entitled to, or
Rate 1% 1% 2%
exceeds 2,50,000 entrusted by the Central Government or any State Government with the control or management of a
municipal or local fund;
N/N 50/2018-CT dt 13/09/2018
d) a Cantonment Board as defined in section 3 of the Cantonments Act, 2006;
Sec 51 has been made effective from 01st Oct 2018, e) a Regional Council or a District Council constituted under the Sixth Schedule to the Constitution;
In exercise of the powers conferred by Section 1(3) of the CGST Act, 2017 & in supercession of N/N f) a Development Board constituted under article 371 & article 371J of the Constitution; or
33/2017 -CT dt 15/09/2017 the CG hereby appoints the g) a Regional Council constituted under article 371A of the Constitution
01st Oct 2018 as the date on which the provisions of Section 51 of the said Act shall come into
force with respect to Supplier PoS Supply Recipient TDS Remark
Ü persons specified under clause (a) (b) & (c) of 51(1) of the said Act and Mr.P MH Intra- MH Govt.
Ü the persons specified below under clause (d) of 51(1) of the said Act, namely: (MH) State (MH)
(a) an authority or a board or any other body,
(i) set up by an Act of Parliament or a State legislature; or Mr.Q Punjab Inter- PSU
(ii) established by any Government, (MH) State Punjab
with 51% or more participation by way of equity or control, to carry out any function
(b) Society established by the Central Government or the State Government or a Local Authority
under the Societies Registration Act, 1860 Mr.R Punjab Intra- MH Govt.
Newly Inserted (Punjab) State
(c) PSU (Public sector undertakings) GST
REVISION
Provisions related to deductor Default in TDS Payment to Govt.
6 If any deductor fails to pay to the Government the amount deducted as tax under sub-section (1),
2 Due date of payment of TDS : The amount deducted as tax under this section shall be paid to the
he shall pay interest in accordance with the provisions of section 50(1) (18% P.A.), in
Government by the deductor within ten days after the end of the month in which such deduction is
addition to the amount of tax deducted
made, in such manner as may be prescribed
The determination of the amount in default under this section shall be made in the manner specified
7
3 TDS Certificate : The deductor shall furnish to the deductee a certificate mentioning therein the in section 73 or section 74
Ü contract value, Ü rate of deduction, Ü amount deducted,
Ü amount paid to the Government and such other particulars in such manner as may be prescribed Erroneous Deduction of TDS
Failure to give TDS Certificate : If any deductor fails to furnish to the deductee the certificate, after The refund to the deductor or the deductee arising on account of excess or erroneous deduction
8
deducting the tax at source, within five days of crediting the amount so deducted to the Government, shall be dealt with in accordance with the provisions of section 54
4
the deductor shall pay, by way of a late fee, a sum of `100 per day from the day after the Proviso:- Provided that no refund to the deductor shall be granted, if the amount
expiry of such five days period until the failure is rectified, subject to a maximum amount of five deducted has been credited to the electronic cash ledger of the deductee
thousand rupees
Standard Operating Procedure – CBIC
Sec. 39 : Form and manner of submission of return by a person
required to deduct tax at source.- Tax deduction is not required in following situations:-
(1) Every registered person required to deduct tax at source under section 51 (hereafter in this rule 1. Total value of taxable supply ≤ ` 2.5 Lakh under a contract
referred to as deductor) shall furnish a return in FORM GSTR-7 electronically through the
common portal either directly or from a Facilitation Centre notified by the Commissioner. Finance Department of Pune Mahanagar Palika is making a payment of ` 2 Lakh to a
(2) The details furnished by the deductor under sub-rule (1) shall be made available electronically supplier for a contract of 'printing & stationery'. Whether TDS is required to be deducted?
to each of the suppliers in Part C of FORM GSTR-2A and FORM-GSTR- 4A on the common Ans:-
portal after the due date of filing of FORM GSTR-7.
(3) The certificate referred to in sub-section (3) of section 51 shall be made available electronically
to the deductee on the common portal in FORM GSTR-7A on the basis of the return furnished 2. Contract value > ` 2.5 Lakh for both taxable supply and exempted supply, but the value
under sub-rule (1). of taxable supply under the said contract ≤ ` 2.5 Lakh.
Education Department is making payment of ` 5 Lakh to a supplier of 'printed books and printed or
Provisions related to deductee illustrated post cards' where payment for books is ` 2 Lakh and ` 3 Lakh is for other printed or
illustrated post cards. Whether required to deduct TDS?
Credit to E-cash ledger of deductee : The deductee shall claim credit, in his electronic cash ledger, of Ans:-
5
the tax deducted and reflected in the return of the deductor furnished under section 39(3), in such manner
as may be prescribed
Rule 87(9) : E-cash Ledger 3. Receipt of services which are exempted. For example services exempted under notification
Any amount deducted under section 51 or collected under section 52 and claimed in FORM GSTR-02 No. 12/2017 – Central Tax (Rate) dated 28.06.2017 as amended from time to time.
by the registered taxable person from whom the said amount was deducted or, as the case may be,
collected shall be credited to his electronic cash ledger in accordance with the provisions of rule 87 Fisheries Department is making a payment of ` 10 Lakh to a contractor for supplying labour for
digging a pond for the purpose of Fisheries. Whether required to deduct TDS?
Ans:-
GST
REVISION
4. Receipt of goods which are exempted. For example goods exempted under notification No.
2/2017 – Central Tax (Rate) dated 28.06.2017 as amended from time to time. 8. All activities or transactions specified in Schedule III of the CGST/SGST Acts 2017, irrespective
of the value.
Health Department is making payment of `10 Lakh to a supplier for supply of Hearing Aids. Whether
required to deduct TDS on such supply of goods? Supplier Y of Mumbai enters into an agreement for sale of land worth `12,00,000/- to Finance
Ans:- Deptt. of Govt of Goa. Is TDS applicable for the given activity?
Ans:-
5. Goods on which GST is not leviable. For example petrol, diesel, petroleum crude, natural
gas, aviation turbine fuel (ATF) and alcohol for human consumption
Hindustan Aeronautics Limited (public sector undertaking) enters into a contract with Hindustan 9. Where the payment relates to a tax invoice that has been issued before 01.10.2018.
Petroleum for procurement of ATF and makes a payment of is `15 lacs for such supply. Determine
the applicability of TDS Eg. :- Supplier Ajay is a person registered under the GST in Jharkhand who makes taxable supply
Ans:- worth `10,000/- to a Local Authority of Jharkhand where value of taxable supply under the contract is
for `2, 75,000/- the tax invoice for which was issued on 05.09.2018 .
10. Where any amount was paid in advance prior to 01.10.2018 and the tax invoice has been issued
on or after 01.10.18, to the extent of advance payment made before 01.10.2018
6. Where a supplier had issued an invoice for any sale of goods in respect of which tax was National Institute of Technology (N.I.T) have entered into a contract worth ` 10 Lakh with a supplier
required to be deducted at source under the VAT Law before 01.07.2017, but where payment XYZ prior to 01.10.2018. N.I.T made a payment of ` 7 Lakhs to him prior to 01.10.2018. Should TDS
for such sale is made on or after 01.07.2017 [Section 142(13) refers] be applicable on ` 10 Lakh?
Ans:-
11. Where the tax is to be paid on reverse charge by the recipient i.e. the deductee
7. Where the location of the supplier and place of supply is in a State(s)/UT(s) which is different
from the State / UT where the deductor is registered National Sports authority of India a society controlled by Govt located in Delhi hires a GTA M/s Raj
transports ltd for transport of sports equipments from Delhi to Ghaziabad for which freight charges of
Govt. of Punjab engages a contractor M/s Nirmitee pvt ltd of Delhi for renovation of Bangla Bhawan in ` 2,85,000 is paid by National Sports authority of India. Determine the applicability of TDS?
Delhi. Determine the applicability of TDS Ans:-
Ans:-
Newly Inserted
GST
REVISION
Electronic Commerce Operator
12. Where the payment is made to an unregistered supplier
Health Department of Karnataka receives a taxable service worth ` 2,66,000 from Mansi & co of Important Definitions
Maharashtra being an unregistered person under GST. Is TDS applicable in the given case?
Ans:- Sec 2(44) Electronic Commerce : Electronic Sec 2(45) Electronic Commerce Operator :
Commerce Electronic Commerce Operator
means the supply of goods or services or both, means any person who owns, operates or
including digital products over digital or electronic manages digital or electronic facility or
network platform for electronic commerce
13. Where the payment relates to “Cess” component
M/s ABC Ltd. a Government agency located at Bengaluru purchases BMW car worth `15,00,000
including GST cess was charged on the same from Bhandari showroom , Mumbai. Is TDS applicable
in the given case?
Ans:-
Practical Illustrations
Supplier is registered and contract value is inclusive of GST:
Illustration 1:- Supplier Y of Mumbai makes taxable supply worth ` 10,000/- & exempted supply worth ` 20,000/-
Sec 9 (5) - CGST liability of E-commerce operator
in an invoice/bill of supply to Finance Deptt. of GoI located in New Delhi where contract for supply is for `
6,00,000/- (`.2,60,000 for taxable supply including GST and ` 3,40,000 for exempted supply). The rate of GST The Government may, on the recommendations of the Council,
is 18%. Following payment is being made by GoI to Y: `10,000/- (value of taxable Supply) + ` 1,800 (Integrated Ü by notification, specify categories of services
Ü the tax on intra-State supplies of which shall be paid by the electronic commerce operator if such
Tax) + ` 20, 000/- (value of exempted Supply).
services are supplied through it, and
Whether any deduction of tax is required?
Ü all the provisions of this Act shall apply to such electronic commerce operator as if he is the supplier
liable for paying the tax in relation to the supply of such services:
Ans :- Value of taxable supply in the contract =`2,60, 000/- (including GST)
Value of such contract excluding tax = 260000x100/118= ` 220340/-
Since, the value of taxable supply in the contract does not exceed ` 2.5 Lakh, deduction of tax is not required
Proviso Provided that where an electronic commerce any person representing such electronic
operator does not have a physical presence in commerce operator for any purpose in the
Illustration 2 :- the taxable territory, taxable territory shall be liable to pay tax
Three separate contracts for supply are given to M/S ABC by the Health Department of the Government
of West Bengal and the value of taxable supply is below ` 2.5 Lakh in case of each contract though their
combined value is more than ` 2.5 Lakh Proviso Provided further that where an electronic such electronic commerce operator shall
commerce operator does not have a physical appoint a person in the taxable territory for
presence in the taxable territory and also he the purpose of paying tax and such
Ans:- In given case above no deduction is required to be made since value of taxable supply in neither of the does not have a representative in the said person shall be liable to pay tax.
contract exceeds ` 2.5 Lakh. territory,
GST
REVISION
Notified ECO N/N 17/2017 - CT (Rate)- 28th June, 2017
It has notified the following categories of services (b) Services by way of providing accommodation in
supplied through ECO for this purpose - hotels, inns, guest houses, clubs, campsites or
(a) Services by way of transportation of other commercial places meant for residential or
passengers by a radio-taxi, motorcab, lodging purposes,
maxicab and motor cycle. except where the person supplying
such service through electronic commerce Analysis
operator is liable for registration under section
22(1) of the CGST Act. No. Cases TCS Remark
E-Commerce Operator E-Commerce Operator 1. VSmart selling his P.D. from
involving an aggregator involving an aggregator
own website Vsmart Academy.com
Payment of GST in anymanner in anymanner
Payment of GST
2. VSmart selling his P.D. from
Vsmart Stores.com where
SR consideration
SP directly received to Vsmart
GPS
System
3. VSmart selling his P.D. from
Amazon.com where first Amazon
collect the payment and then
A person Any person Any person makes remittance to Vsmart
Explanation The expression “net value of taxable supplies” shall mean
Sec 52: Collection of tax at source the aggregate value of taxable supplies of goods or services or both, other
than services notified under sec 9(5),
1 Notwithstanding anything to the contrary contained in this Act, made during any month by all registered persons through the operator
every electronic commerce operator (hereafter in this section referred to as the “operator”), not being an reduced by the aggregate value of taxable supplies returned to the
agent, suppliers during the said month
shall collect an amount calculated at such rate not exceeding 1%, as may be notified by the
Government on the recommendations of the Council, Example : ABC Ltd is an Electronic Commerce Operator. It provides the following information
of the net value of taxable supplies made through it by other suppliers where the
Particulars `
consideration with respect to such supplies is to be collected by the operator
Aggregate value of taxable supplies of goods by all 13,24,000
N/N 51/2018 -CT dt 13/09/2018 registered taxable persons through ABC Ltd during the
Sec 52 has been made effective from 1/10/2018 month of December, 2017
N/N 52/2018 -CT dt 20/09/2018 (Less) Value of supplies under section 9 (5) 1,00,000
The rate of TCS as notified by the CBIC on recommendation of council is 0.5% under CGST Act (Less) The aggregate value of taxable supplies returned 1,07,000
to the suppliers during the said month of December, 2017
Payment of GST Net Value of Taxable Supplies of ABC Ltd for the 11,17,000
Buyer
Seller month of December, 2017
Amount to be collected by ABC Ltd for the month of 11,170
December, 2017 in terms of Section 52 (1) i.e. 1%
Newly Inserted
GST
REVISION
2 The power to collect the amount specified in sub-section (1) shall be without prejudice to any other Analysis
mode of recovery from the operator Errors / Omissions in Monthly Statements
3 Payment on monthly basis : The amount collected under sub-section (1) shall be paid to the Rectification Allowed
Government by the operator within ten days after the end of the month in which such collection is Make rectifications in Statement itself
Manner
made, in such manner as may be prescribed Ü Rectify in statement furnished for the month in which errors/omissions come to
notice
4 Monthly Statement : Every operator who collects the amount specified in sub-section (1) shall furnish a
Ü Interest @ 18% p.a. is also payable
statement, electronically, containing
Ü the details of outward supplies of goods or services or both effected through it, Time Rectification allowed maximum by 10th Oct (after end of FY) However, if relevant
Ü including the supplies of goods or services or both returned through it, and Limitation annual statement has been filed prior to such date, then rectification is permissible
Ü the amount collected under sub-section (1) during a month, only upto date of furnishing of such annual statement.
in such form and manner as may be prescribed (GSTR-8), within ten days after the
end of such month 7 Claim of Credit in E-Cash Ledger of supplier : The supplier who has supplied the goods or services
or both through the operator shall claim credit, in his electronic cash ledger, of the amount
Rule 67 : Form and manner of submission of statement of supplies through an e-commerce collected and reflected in the statement of the operator furnished under sub-section (4), in such
manner as may be prescribed
operator.-
(1) Every electronic commerce operator required to collect tax at source under section 52 shall furnish a Rule 87(9) E-Cash Ledger :
statement in FORM GSTR-8 electronically on the common portal, either directly or from a Facilitation Any amount deducted under section 51 or collected under section 52 and claimed in FORM GSTR-2 by
Centre notified by the Commissioner, containing details of supplies effected through such operator the registered taxable person from whom the said amount was deducted or, as the case may be,
and the amount of tax collected as required under Sec 52(1) collected shall be credited to his electronic cash ledger in accordance with the provisions of Rule
(2) The details furnished by the operator under sub-rule (1) shall be made available electronically to each 87
Matching of Supply details
of the suppliers in Part C of FORM GSTR-2A on the common portal after the due date of filing of [GSTR-8 of Operator to be matched with GSTR-1 of Supplier]
FORM GSTR-8.
The details of supplies furnished by every operator under sub-section (4) (GSTR-8) shall be matched
Annual Return: Every operator who collects the amount specified in sub-section (1) shall furnish an
8 with the corresponding details of outward supplies furnished by the concerned supplier
5
annual statement, electronically, (GSTR-1) registered under this Act in such manner and within such time as may be prescribed
Ü containing the details of outward supplies of goods or services or both effected through it,
Ü including the supplies of goods or services or both returned through it, and Explanation :- For the purposes of this section, the expression “concerned supplier” shall
Ü the amount collected under the said sub-section during the financial year, mean the supplier of goods or services or both making supplies through the operator.
in such form and manner as may be prescribed(Form GSTR-9B), before the thirty first day of Rule 78 : Matching of details furnished by the e-Commerce operator with the details
December following the end of such financial year furnished by the supplier.-
The following details relating to the supplies made through an e- Commerce operator, as declared
6 Omission or Incorrect Statement in Monthly Statement: If any operator after furnishing a statement in FORM GSTR-8, shall be matched with the corresponding details declared by the supplier in
under sub-section (4) FORM GSTR-1,
discovers any omission or incorrect particulars therein, (a) State of place of supply; and
(b) net taxable value:
other than as a result of scrutiny, audit, inspection or enforcement activity by the tax Provided that where the time limit for furnishing FORM GSTR-1 under section 37 has been
authorities, extended, the date of matching of the above mentioned details shall be extended accordingly.
he shall rectify such omission or incorrect particulars in the statement to be furnished for Provided further that the Commissioner may, on the recommendations of the Council,
the month during which such omission or incorrect particulars are noticed, subject to payment of by order, extend the date of matching to such date as may be specified therein.
interest, as specified in Sec 50 (1) .
GST
REVISION
Illustration [ICAI Study material] available.
Ü MN Ltd. sold i-phone 6S mobile via i-kart (ECO) to customers worth `55,60,000 for Jan, 2018 and (4) Where the discrepancy is not rectified under sub-rule (2) or sub-rule (3),
some customers returned iphone worth ` 9,60,000 so net supply for Jan month would be ` an amount to the extent of discrepancy shall be added to the output tax liability
(55,60,000) = 46,00,000. of the supplier in his return in FORM GSTR-3 for the month succeeding the month in which the
Ü I-kart will furnish GSTR-8 (by 10 Feb), containing the net outward supply worth ` 46,00,000, the
details of which will be matched with details of outward supplies furnished in GSTR-1 by MN Ltd. details of discrepancy are made available and
such addition to the output tax liability and interest payable thereon shall be
made available to the supplier electronically on the common portal in FORM GST MIS–3.
9 Communication of discrepancy : Where the details of outward supplies furnished by the operator
under sub-section (4) (i.e. GSTR-8) do not match with the corresponding details furnished by the
supplier under sec 37(GSTR-1) or sec 39, Enquiry by GST officer
the discrepancy shall be communicated to both persons in such manner and within such time as
may be prescribed Amended 12 Notice by GST officer : Any authority not below the rank of Deputy Commissioner may serve a
notice, either before or during the course of any proceedings under this Act, requiring the operator
to furnish such details relating to—
Discrepancy is not Rectified by Supplier : The amount in respect of which any discrepancy is
10
communicated under sub-section (9) and which is not rectified by the supplier in his valid return or the a supplies of goods or services or both effected through such operator during any period; or
operator in his statement for the month in which discrepancy is communicated, stock of goods held by the suppliers making supplies through such operator in the godowns
b
shall be added to the output tax liability of the said supplier, or warehouses, by whatever name called, managed by such operator and declared as
where the value of outward supplies furnished by the operator is more than the value additional places of business by such suppliers, as may be specified in the notice
of outward supplies furnished by the supplier, in his return for the month succeeding the month in which the
13 Furnishing of information ask by officer : Every operator on whom a notice has been served
discrepancy is communicated in such manner as may be prescribed under sub-section (12) shall furnish the required information within fifteen working days of the
Payment of Interest : The concerned supplier, in whose output tax liability any amount has been added under date of service of such notice
11 sub-section (10), 14 Penalty for not furnishing information to officer : Any person who fails to furnish the
information required by the notice served under sub-section (12) shall, without prejudice to any
shall pay the tax payable in respect of such supply along with interest, at the rate specified under
action that may be taken under section 122, be liable to a penalty which may extend to twenty-
sec 50 (1)(i.e.18% p.a.) on the amount so added from the date such tax was due till the date of its payment five thousand rupees
Case Studies on ECO [ICAI Material]

79. Communication and rectification of discrepancy in details furnished by the ecommerce
operator and the supplier.- Case Study 1:
(1) Any discrepancy in the details furnished by the operator and those declared by the supplier shall be Mr. X is a supplier selling his own products through a web site hosted by him. Does he fall under
the definition of an “electronic commerce operator”? Whether he is required to collect TCS on
made available
such supplies?
to the supplier electronically in FORM GST MIS-3 and
to the e-commerce operator electronically in FORM GST MIS–4
on the common portal on or before the last date of the month in whichthe matching has been carried
out.
(2) A supplier to whom any discrepancy is made available under sub-rule (1) may make suitable
rectifications in the statement of outward supplies to be furnished for the month in which the
discrepancy is made available.
(3) An operator to whom any discrepancy is made available under sub-rule (1) may make suitable
rectifications in the statement to be furnished for the month in which the discrepancy is made
Newly Inserted
GST
REVISION
Case Study 2:
If we purchase goods from different vendors and are selling them on our website under our own billing.
Is TCS required to be collected on such supplies?
FAQ - CBIC
Question 1:
Foreign e-commerce operator do not have place of business in India since they operate from outside. But
their supplier and customers are located in India. So, in this scenario will the TCS provision be applicable
to such e-commerce operator and if yes, how will foreign e-commerce operator obtain registration?
Answer:-
Where registered supplier is supplying goods or services through a foreign e-commerce operator to a customer in
India, such foreign e-commerce operator would be liable to collect TCS on such supply and would be required to
obtain registration in each State / UT. If the foreign e-commerce operator does not have physical presence in a
particular State / UT, he may appoint an agent on his behalf.
Question 2:
Under multiple e-commerce model, Customer books a Hotel via ECO-1 who in turn is integrated with
ECO-2 who has agreement with the hotelier. In this case, ECO-1 will not have any GST information of the
hotelier. Under such circumstances, which e-commerce operator should be liable to collect TCS?
Answer:-
TCS is to be collected by that e-Commerce operator who is making payment to the supplier for the particular
supply happening through it, which is in this case will be ECO-2.
GST
REVISION
COMPARATIVE ANALYSIS
GST Customs GST Customs
Advance Ruling The Matter in which the Advance Ruling can be obtained
“advance ruling” means a Means a written decision on any of the questions Classification of any goods under
(a) classification of any goods or services
decision provided by the Authority referred to in section 28H raised by the applicant in the CTA, 1975
or both
or the Appellate Authority to an his application in respect of any goods prior to its
applicant on matters or on importation or exportation (Sec 28 E(b)) Amended (b) applicability of a notification issued under Applicability of a Exemption notification
questions specified by F.A. 2018 the provisions of this Act issued under Section 25(1) having a
bearing on the rate of duty
Ü in Sec 97 (2) or
Ü sub-Sec100(1),
(c) determination of time and value of supply The principles to be adopted for the
in relation to the supply of goods or services or both purposes of determination of value of
of goods or services or both
the goods
being undertaken or proposed
to be undertaken by the (d) admissibility of input tax credit of tax applicability of notifications issued in
applicant paid or deemed to have been paid respect of tax or duties under this Act or
the Customs Tariff Act, 1975 or any tax or
Applicants duty chargeable under any other law for
Newly Inserted the time being in force in the same
any person registered or means any person,— by F.A. 2018
manner as duty of customs leviable
d e s i r o u s o f o b t a i n i n g (i) holding a valid Importer-exporter Code Number under this Act or the Customs Tariff Act
granted under section 7 of the Foreign Trade
registration under this Act (Development and Regulation) Act, 1992; or Applicability of notification issued under
(e) determination of the liability to pay tax
(ii) exporting any goods to India; or on any goods or services or both this Act or CTA, 1975.
(iii) with a justifiable cause to the satisfaction of the Determination of origin of the goods in
Authority, (f) whether applicant is required to be
registered terms of the rules notified under the
Customs Tariff Act, 1975
who makes an application for advance ruling under
section 28H; Amended (g) whether any particular thing done by the any other matter as the Central
by F.A. 2018
applicant with respect to any goods or Government may, by notification,
services or both amounts to or results in specify. Newly Inserted
a supply of goods or services or both, by F.A. 2018
within the meaning of that term.
Appeal to appellate Authority

The concerned officer, the means the Authority for Advance Rulings
jurisdictional officer or an constituted under section 245-O of the Income-tax
applicant aggrieved by any Act, 1961 Newly Inserted
by F.A. 2018
advance ruling pronounced
under sub-section (4) of section
98, may appeal to the Appellate
Authority.
GST
REVISION
Chapter 18 Demand & Recovery of Tax
Circular specifying proper officers under sections 73 and 74 of the CGST Act and under the IGST Act
and fixing monetary limits for issuance of show cause notices by different level of officers
[Circular No. 31/05/2018 GST dated 09.02.2018]
Sl. CGST Officer Monetary limit of Monetary limit of IGST Monetary limit of CGST
No. CGST (including cess) (including cess) not & IGST (including cess)
not paid or short paid paid or short paid or not paid or short paid or
or erroneously erroneously refunded erroneously refunded
refunded or ITC of or ITC of IGST wrongly or ITC of CGST & IGST
CGST wrongly availed availed or utilized for wrongly availed or
or utilized for issuance issuance of SCNs and utilized for issuance of
of SCNs and passing passing of orders SCNs and passing of
of orders under under sections 73 and orders under sections
sections 73 and 74 of 74 of IGST Act made 73 and 74 of CGST Act
CGST Act applicable to matters in made applicable to
relation to IGST vide matters in relation to
section 20 of the IGST IGST vide section 20 of
Act the IGST Act
(1) (2) (3) (4) (5)
1 Superintendent Not exceeding

of Central Tax ` 10 lakh Not exceeding ` 20 lakh Not exceeding ` 20 lakh
2 Deputy or Assistant Above ` 10 lakh and Above ` 20 lakh and Above ` 20 lakh and
Commissioner not exceeding not exceeding ` 2 crores not exceeding ` 2 crores
of Central Tax ` 1 crore
3 Additional or Joint Above ` 1 crore Above ` 2 crores Above ` 2 crores

Commissioner without any limit without any limit without any limit
of Central Tax
The central tax officers of Audit Commissionerates and Directorate General of Goods and Services Tax
Intelligence hereinafter referred to as “DGGSTI”) shall exercise the powers only to issue show cause notices.
A show cause notice issued by them shall be adjudicated by the competent central tax officer of the Executive
Commissionerate in whose jurisdiction the noticee is registered.
In case show cause notices have been issued on similar issues to a noticee(s) and made answerable to
different levels of adjudicating authorities within a Commissionerate, such show cause notices should be
adjudicated by the adjudicating authority competent to decide the case involving the highest amount of central
GST tax and/or integrated tax (including cess).
REVISION
Chapter 19 Appeals & Revision
Appointment of Appellate Authority

A new rule 109A has been inserted in CGST Rules to appoint Appellate Authority as under:
If the decision or order against which Commissioner
the appeal is to be filed, is passed by Appellate Authority (Appeals)
the Additional or Joint Commissioner
If the decision or order against which Additional

the appeal is to be filed, is passed by Appellate Authority Commissioner
the Deputy or Assistant Commissioner (Appeals)
or Superintendent
[Notification No. 55/2017 CT dated 15.11.2017]
GST
REVISION
GST
REVISION

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CA - Final

BY : CA Vijay Sarda BY : CA Vijay Sarda

CA-FINAL IDT CA-FINAL DT CA Final IDT/DT Chart Revision

Levy and Collection GST

Circular No 1/1/2017- IGST Act, Dated 7/7/2017

1 Supply of goods by Principle to Agent

Clariﬁcation on Taxability of petroleum contracts (Circular no. 32/06/2018 dt 12/02/2018)

Issue -Taxability of Cost Petroleum

Reverse Charge & ECO

5A Services supplied by (Amendment via Notiﬁcation issued by CBIC)

Clariﬁcation on taxability of custom milling of paddy

Clariﬁcation: Circular no. 16/16/2017 dt 15/11/2017

Sl. No.35 Speciﬁed General Insurance Scheme (Heading 9971 OR 9991)

Services of general insurance business provided under following schemes –

Clariﬁcation: Private ITIs qualify as an educational institution as covered in approved vocational

Sl. No.65B Services Supplied by a State Government to Excess Royalty

Amendments in existing exemptions

Sl. No.41 Service by State Government Industrial Development

Sr. No Classes of Registered Person Time of supply

Input Tax Credit

Advertisement on television Number of viewers of such channel in each State/

CBIC Clariﬁcation via Circular no 48/22/2018 dt 14/06/2018

Clariﬁcation on Advance tax to be deposited by a casual taxable person

Tax Invoice, Credit & Debit Notes

E-Way Bill, Accounts & Records

Clariﬁcation issued via Circular no. 26/26/2017 – CT dt 29/12/2017

Q.55 : What is the procedure for enrolment as GSTP ?

such persons or category of persons as may be notiﬁed by the Government on the

(hereafter in this section referred to as “the deductor”), to deduct tax

13. Where the payment relates to “Cess” component

Case Studies on ECO [ICAI Material]

Appeal to appellate Authority

(1) (2) (3) (4) (5)

1 Superintendent Not exceeding

3 Additional or Joint Above ` 1 crore Above ` 2 crores Above ` 2 crores

Appointment of Appellate Authority

If the decision or order against which Additional

[Notiﬁcation No. 55/2017 CT dated 15.11.2017]

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