On CGST

2nd Edition
GST IN INDIA
jagdeep.sharma@groupindogulf.com 1
WHAT TO STUDY IN - GST LAW
ACT RULES
1. REVISED GST MODEL LAW 2017 1. REGISTRATION RULES
2. CGST ACT 2017 2. INVOICE RULES
3. SGST ACT 2017 3. PAYMENT RULES
4. IGST ACT 2017 4. RETURN RULES
5. UTGST ACT 2017 5. REFUND RULES
6. COMPENSATION BIL 2017 6. TRANSITIONAL RULES
7. COMPENSATION RULES
8. VALUATION RULES
Taxable Event Under GST
Taxable Event
Present Indirect Taxation GST
Manufacturing of Goods (ED)
Rendering/Provision of Services
(ST) Supply of Goods
and/or Services
Sale of Goods
(VAT/CST)
Import/Export of Goods
(BCD/CVD/SAD/NCCD/ADD/SGD/etc
Taxes to be Subsumed into CGST
EXCISE
CVD
SERVICE u/s 3(1)
TAX
CGST
SAD
CESS u/s 3(5)
Surcharges
Taxes to be Subsumed into SGST
VST/CST
LUXURY ENTRY TAX
TAX /OCTROI
ENTERTAINMENT
TAX SGST PURCHASE TAX
TAXES ON
STATE CESSES/
LOTTERY/BATTING
SURCHARGE
/GABLING
GST
INTRA INTER
STATE STATE
SGST CGST UNION IGST

TERRITORY
UTGST
Note: a) UT Means, UTS which are not Governed by Any Special Legislature.
b) Delhi & Pondicherry are not UT as per UTGST ACT
CGST ACT 2017
CGST ACT
COMPRISES
21 174 3
CHAPTERS SECTIONS SCHEDULES
CGST - CONTENTS
CHAPTERS SECTIONS
I. PRELIMINARY 1-2
II. ADMINISTRATION 3-6
III. LEVY AND COLLECTION OF TAX 7-11
IV. TIME AND VALUE OF SUPPLY 12-15
V. INPUT TAX CREDIT 16-21
VI. REGISTRATION 22-30
VII.TAX INVOICES, DR & CR NOTES 31-34
VIII.ACCOUNTS AND RECORDS 35-36
IX. RETURNS 37-48
X. PAYMENT OF TAX 49-53
CHAPTERS SECTIONS
XI. REFUNDS 54-58
XII. ASSESSMENT 59-64
XIII. AUDIT 65-66
XIV. INSPECTION,SEARCH,SEIZURE 67-72
& ARREST
XV. DEMANDS AND RECOVERY 73-84
XVI. LIABILITY TO PAY IN CERTAIN CASES 85-94
XVII. ADVNACE RULING 95-106
XVIII. APPEALS AND REVISION 107-121
XIX. OFFENCES AND PENALITIES 122-138
XX. TRANSITIONAL PROVISIONS 139-142
XXI. MISCELLANEOUS 143-174
Section 2-
Important Definitions
(2) Address of delivery means the address of the recipient of goods or services or
both
Indicated on the Tax invoice issued by a registered person
For delivery of such Goods or services or both;
(6) Aggregate Turnover means
The Aggregate Value of EXCLUDING
TAXABLE Value of Inward Supply on
EXEMPT which Tax is paid under RCM.
EXPORTS
INTER-STATE SUPPLY ALL Duties & Taxes under
OF Persons having the SAME PAN, . GST.
To be Computed on ALL INDIA BASIS
(18) Business vertical means a distinguishable component of an enterprise
that is engaged in the supply of individual goods or services or a group of
related goods or services which is subject to Risks and Returns that are
different from those of the other Business Verticals.
(19) Capital goods means goods, The value of which is Capitalised in the books
of account of the person claiming the input tax credit and which are used
or intended to be used in the course or furtherance of business;
(20) Casual taxable person means a person who occasionally undertakes

transactions involving supply of goods or services or both in the course
or furtherance of business, whether as principal, agent or in any other capacity, in a
State or a Union territory where he has no fixed place of business;
(30) Composite supply means a supply made by a taxable person to a

recipient consisting of two or more taxable supplies of goods or services or both,
or any combination thereof, which are naturally bundled and supplied in conjunction
with each other in the ordinary course of business, one of which is a principal
supply;
Illustration: Where Goods are packed and transported with insurance, the
supply of goods, packing materials, transport and insurance is a composite supply
and supply of goods is a principal supply.
(32) Continuous supply of goods means a supply of goods which is
provided, or agreed to be provided, continuously or on recurrent basis, under a
contract, whether or not by means of a wire, cable, pipeline or other conduit, and
for which the supplier invoices the recipient on a regular or periodic basis
(33) Continuous supply of services means a supply of services which is

Provided, or agreed to be provided, Continuously or on Recurrent basis, under a
contract,
For a period exceeding 3 Months with periodic payment obligations
(31) Consideration in Relation to the Supply of Goods or Services or Both Includes

a) Any Payment made or To be made, Whether in Money or Otherwise,
b) The Monetary Value of any Act or forbearance
In respect of, in response to, or for the inducement of the Supply of Goods/services or
both, whether By
The Recipient, or Any other Person
Exclude; Any Subsidy given by the CG or SG.
Provided that a Deposit given in respect of the Supply, shall not be considered as Payment
made for such Supply Unless the Supplier Applies such Deposit as Consideration for the
said Supply.
(34) Conveyance includes a vessel, an aircraft and a vehicle;
(43) Electronic cash ledger means the electronic cash ledger referred to in
subsection (1) of section 49;
(47) Exempt supply means supply of any goods or services or both which
attracts NIL rate of tax or which may be wholly exempt from tax under section 11,
Or U/S 6 of the IGST Act, and includes
non-taxable supply;
(50) Fixed establishment means a place (other than the registered place of
business) which is characterised by a sufficient degree of permanence and suitable
structure in terms of human and technical resources to supply services,
or to receive and use services for its own needs;
(56) India means the territory of India as referred to in article 1 of the

Constitution, its territorial waters, seabed and sub-soil underlying such waters,
continental shelf, exclusive economic zone or any other maritime zone as referred to in
the Territorial Waters, Continental Shelf, Exclusive Economic Zone and
other Maritime Zones Act, 1976, and the air space above its territory and territorial
waters;
(103) State Include a Union Territory with Legislature; i.e DELHI & POUNDICHERY
Explanation; UT with Legislature Shall be Treated as State.
(61) Input Service Distributor means an office of the supplier of goods or

services or both which receives Tax Invoices issued under section 31 towards
The Receipt of input services and issues a prescribed document for the purposes
of Distributing the credit of SGST,CGST,IGST & UTGST Tax paid on the said services
To a supplier of taxable goods or services or both having the
Same PAN as that of the said office;
(62) input tax in relation to a registered person, means the CGST,SGST,IGST,UTGST Tax
charged on any supply of goods or services or both made to him and includes
(a) The IGST tax charged on Import of goods;
(b) The Tax payable U/S 9(3) & (4) i.e RCM
(c) The Tax payable u/s 5(3) & (4) of the IGST Act; i.e RCM, or
(d) The Tax payable U/S 9(3) & (4) of the Respective SGST Act; i.e RCM, or
(e) The Tax payable U/S 7(3) & (4) of the UTGST Act, i.e RCM,
But does not include the tax paid under the composition levy U/S 10;
(71) Location of the supplier of services
Scenario Location of Supplier

(a) where a supply is made from a place Location of Such Registered Place of
of business for which the Business
registration has been obtained,
(b) where a supply is made from a place Location of such fixed establishment
other than Registered Place
(c) where a supply is made from more The location of the establishment most
than one establishment, directly concerned with the provisions of
the supply
(d) in absence of such places The location of the usual place of
residence of the supplier
PLACE OF SUPPLY OF GOODS OR SERVICES OR BOTH
Section 10. (1) The place of supply of goods, other than supply of goods imported into, or
exported from India, shall be as under, (IGST ACT)
Scenario Place of supply

a) When movement of Goods is involved Location of Goods where movement terminates for
delivery
b) When Goods are supplied by transfer of Principal place of business of third person on whose
documents during movement of Goods direction Goods were supplied to another person
c) When movement of Goods is not involved Location of Goods at the time of delivery
(like sale of Goods at Mall/Showroom)
d) When Goods are assembled or installed at Place of such installation or assembly

site
e) When Goods are supplied on board a Location at which such Goods are taken on board
conveyance (like food supplied by Indian Railways on journey)
(73) Market Value shall mean The Full Amount which a Recipient of a supply is
required to pay in order to obtain the goods or services or both of like kind and quality
at or about the same time and at the same commercial level where the Recipient and the
supplier are not related;
(74) Mixed supply means Two or more individual supplies of goods or services,
or any combination thereof, made in conjunction with each other by a taxable person
for a single price where such supply does not constitute a composite supply;
Illustration: Sale of Brush with Tooth Paste, Shampoo with Soap, Comb with Hair Oil etc.
CHAPTER III
Levy And Collection of TAX
Section 7(1) Meaning of SUPPLY-Include; Section 7(2) Supply Exclude

a) Alll form of Supply of Goods or Services or
Both such As, a) Activities Specified in
Sale, Transfer, Barter, Exchange , Licence, Schedule III
Rental, Lease , or Disposal made or Agreed
to be Made b) Activities Undertaken By The
FOR A CONSIDERATION
By a person in the Course or Furtherance CG
of Business; SG
b) Import of Services For a Consideration. Local Authority
c) Activities Specified in SCHEDULE I, without
Consideration. In which they are engaged as Public
d) Activities Specified in SCHEDULE II. Authorities, as Notified by Govt. on
the Recommendation of The
COUNCIL
SCHEDULE I
ACTIVITIES TO BE TREATED AS SUPPLY EVEN IF MADE WITHOUT
CONSIDERATION
1. Permanent Transfer/ Disposal of Business Assets ON which ITC HAS BEEN
AVAILED.
2. Supply of Goods/Services/Both between
Related Person or Distinct Person
When made in the Course or Furtherance of Business.
Provided that, Gifts Upto Rs.50K in a FY, From Employer to
Employee shall Not be Treated as SUPPLY.
3. Supply of GOODS -
a) By a Principal to His AGENTS, If He Undertakes to SUPPLY
b) By an Agent to His PRINCIPAL, If He Undertakes to Receive Such
goods on behalf of the Principal.
4. IMPORT OF SERVICES, By a Taxable Person From
His Reative
His other Establishment Located O/S Inida
In the course or Furtherance of Business.
SCHEDULE III
[Section 7]
ACTIVITIES OR TRANSACTIONS WHICH SHALL BE TREATED NEITHER
AS A SUPPLY OF GOODS NOR A SUPPLY OF SERVICES
1. Services by an employee to the employer in the course of or in relation to his
employment.
2. Services by any court or Tribunal established under any law for the time being in force.
3. (a) the functions performed by the Members of
Parliament/State/Legislature/Panchayats/ Municipalities/Local authorities;
(b) the duties performed by any person who holds any post in pursuance of the provisions
of the Constitution in that capacity; or
(c) the duties performed by any person as a Chairperson or a Member or a Director in a
body established by the Central Government or a State Government or local authority
and who is not deemed as an employee before the commencement of this clause.
4. Services of funeral, burial, crematorium or mortuary including transportation of the
deceased.
5. Sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building.
6. Actionable claims, other than lottery, betting and gambling.
IGST ACT-CHAPTER III
Section 5 Levy And Collection of Tax
5(1) Subj. to the Provisions of (2), There shall be Levied a Tax called IGST on
All INTER-STATE SUPPLIES.
Except Alcoholic Liquor for Human consumption,
On the Value determined U/S 15 of CGST Act.
Provided that, IGST on Goods Imported Into India Shall be levied & collected in
accordance with the provisions of Section3 of CTA 1975, As per Custom Valuation.
5(2) Provided that, IGST on Petroleum & Gases shall be levied later on, as may be
notify.
5(3) RCM; The govt. on the recommendations of the Council, may notify specific
categories of Supplies on which Tax shall be paid on Reverse charges basis.
5(4) If goods are supplied by Non Registered Person to Registered, IGST shall be paid
by such Registered Person, i.e Recipient under RCM.
5(5) Govt. May notify on the recommendation of the Council, Specific Categories of
Service, The tax on Inter-State Supplies of which shall be paid by E-Commerce
operator, if such services are supplied through it.
IGST ACT-Chapter IV
Section 7 Determination of Nature of Supply
Section 7 Inter-State Supply Section 8 Intra-State Supply

Subject to the Provisions of Sections Subject to the Provisions of Sections
10 & 12, 10 & 12,
Where LOS & POS Are
a) In 2 Different States : Delhi Haryana Where Location of Supplier (LOS) and
b) In 2 Different UT : Chandigarh A&N Place of Supply (POS) are in Same State or
c) In 1 State & 1 UT: Punjab Chandigarh Same UT (with Legislature)
Shall be treated as Intra-State Supply.
2) Supply of Goods/Services Imported
into Territory of India.
2) Supply of Goods/ Services or Both

Export
Deemed Export (SEZ Units/Developer)
Not covered elsewhere.
Chapter IV Time And Value of Supply
Section 12(1): Liability to Pay Tax on Supply of Goods
Arise At TOS (2)
a) EARLIER of Date of Issue of Invoice ,OR Compliance of 31(1);

OR
b) Date of Payment Receive by Supplier(DOP)
Shall be DOP Entered in BOA,OR

Date on which Payment Cr in Bank A/c of Supplier, WEE
Section 12(3) TOS in RCM, in case of
SUPPLY OF GOODS
a) Date of Receipt of GOODS,OR
b) Earlier of DOP entered in BOA of Recipient,
OR DOP is Dr in Bank A/c of Recipient, OR
c) Date Immediately following 30 Days from the
DOI of Invoice, WEE
Provided that, where it is not possible to
determine the TOS under Clause(a),(b) & (c),
Shall be the DOE in BOA of Recipient.
Section 12(4)/13(4) TOS in case of Supply
of Vouchers by supplier, shall be
IF Supply Identifiable DOI of Voucher,
Supply Not Identifiable DOR of Voucher
SECTION 12(5)/13(5) SECTION 12(6)/13(6)
Where TOS Cant be TOS in Case of Interest, Late
determined under the Fee, or Penalty for Delayed
Provisions of Sub Sections Payment of Any
(2),(3),(4), The TOS Shall be Consideration, Shall Be -
Date on Which Periodical The Date on Which Supplier

Return is to be filed, OR Receive such Additional
Date on which TAX is Paid Amount
Section 13 TOS of Services
A) Invoice Issued within Period Prescriber U/s 31(2),OR
YES NO
DOI of Invoice DOP of Service

OR WEE OR
DOR of Payment DOR of Payment
B) Date on which Recipient shows ROS in his BOA, if above

Case do not Apply.
Section 13(3) TOS in RCM, in case of
SUPPLY OF SERVICE
a) Earlier of DOP entered in BOA of Recipient, OR DOP is
Dr in Bank A/c of Recipient, OR
b) Date Immediately following 60 Days from DOI of
Invoice by supplier, WEE
Provided that, where clause (a) & (b) do not follow,
The DOE in BOA of Recipient.
Provided further that, if Supply by Associated
Enterprises (Located O/S India),The TOS Shall be,
Earlier of Following
a) DOE in BOA of Recipient, OR
b) DOP, WEE
Section 14 Change in Rate of Tax
CASE-1 Change TOS CASE-4 Change TOS
SUPPLY BEFORE EARLIER SUPPLY AFTER EARLIER
ROP INVOICE BEFORE ROP
INVOICE AFTER
DOI DOI
PAYMENT AFTER PAYMENT BEFORE

SUPPLY BEFORE SUPPLY AFTER
INVOICE AFTER ROP INVOICE AFTER DOI
PAYMENT BEFORE PAYMENT BEFORE

SUPPLY BEFORE SUPPLY AFTER
INVOICE BEFORE DOI INVOICE BEFORE ROP
PAYMENT AFTER PAYMENT
jagdeep.sharma@groupindogulf.com AFTER 28
Winners
- Who Dare to Dream-
Thank-YoU
INDOGULF CROPSCIENCES LTD

CMA JAGDEEP SHARMA
Assistant Manager
Costing/Taxation
9818798007

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2nd Edition

2. CGST ACT 2017 2. INVOICE RULES

3. SGST ACT 2017 3. PAYMENT RULES

4. IGST ACT 2017 4. RETURN RULES

5. UTGST ACT 2017 5. REFUND RULES

6. COMPENSATION BIL 2017 6. TRANSITIONAL RULES

Present Indirect Taxation GST

Manufacturing of Goods (ED)

SGST CGST UNION IGST

(20) Casual taxable person means a person who occasionally undertakes

(30) Composite supply means a supply made by a taxable person to a

(33) Continuous supply of services means a supply of services which is

(31) Consideration in Relation to the Supply of Goods or Services or Both Includes

(56) India means the territory of India as referred to in article 1 of the

(61) Input Service Distributor means an office of the supplier of goods or

Scenario Location of Supplier

Scenario Place of supply

d) When Goods are assembled or installed at Place of such installation or assembly

Section 7(1) Meaning of SUPPLY-Include; Section 7(2) Supply Exclude

Section 7 Inter-State Supply Section 8 Intra-State Supply

2) Supply of Goods/ Services or Both

Arise At TOS (2)

a) EARLIER of Date of Issue of Invoice ,OR Compliance of 31(1);

Shall be DOP Entered in BOA,OR

Date on Which Periodical The Date on Which Supplier

DOI of Invoice DOP of Service

B) Date on which Recipient shows ROS in his BOA, if above

CASE-2 Change TOS CASE-5 Change TOS

CASE-3 Change TOS CASE-6 Change TOS

INDOGULF CROPSCIENCES LTD

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