Goods & Services Tax

Educational Series

Contents

S. No.

Topic

Page

No.

1

Anti Profiteering under GST

1

2

Scrutiny of Returns under Goods & Services Tax

2

3

Standing Committee for Consumer Welfare Fund

3

4

Place of supply of services where location of supplier or location of 4

recipient is outside India - IGST Act, 2017

5

Online Information And Database Access Or Retrieval Services

5

6

Definitions under Integrated Goods & Services Tax Act, 2017

6

7

Definitions under Integrated Goods & Services Tax Act, 2017

7

8

Zero Rated Supply under IGST Act, 2017

8

9

Place of Supply

9

10

Apportionment of Tax Under IGST Act, 2017

10

11

Levy and Collection under IGST Act, 2017

11

12

Power to Grant Exemption Under IGST Act, 2017

12

13

Apportionment of Tax Under IGST Act, 2017

13

(i)

14

Decisions relating to Services in 23rd GST Council Meeting

14

15

Recommendations made by the GST Council in the 23rd meeting

15

16

Recommendations made by the GST Council in the 23rd Meeting

16

17

Recommendations made by the GST Council in the 23rd Meeting

17

18

Intra State Supplies under IGST Act, 2017

18

19

Establishment under IGST Act, 2017

19

20

Special Provision for Payment of Tax by a Supplier of Online Information 20

and Database Access or Retrieval Services

21

Place of Supply – Online Information and Database Access or Retrieval 21

Services

22

The Union Territory Goods & Services Tax Act, 2017

22

23

Supply of Goods under IGST Act, 2017

23

24

Apportionment of Tax and Settlement of Funds under IGST Act, 2017

24

25

Apportionment of Tax and Settlement of Funds under IGST Act, 2017

25

26

Tax Wrongly Collected and Credited

26

27

Transfer of Input Tax Credit

27

28

Application of Provisions of Central Goods & Services Act, 2017

28

29

Import of Services made on or after the Appointed Day

29

30

Power to make Rules and Regulations

30

31

Laying of Rules, Regulations and Notifications

31

32

Removal of Difficulties

32

33

Powers of Officers under Union Territory Goods & Services Tax, 2017

33

34

Authorisation of Officers of Central Tax as Proper Officer in UTGST Act, 34

2017

(ii)

35

Administration under UTGST Act, 2017

35

36

Levy & Collection of Tax

36

37

Levy & Collection of Tax

37

38

Power to Grant Exemption from Tax

38

39

Payment of Tax

39

40

Section 10, 11 of Union Territory Goods & Services Tax Act, 2017

40

41

Demands & Recovery under UTGST Act, 2017

41

42

Recovery of Tax under Union Territory Goods & Services Act, 2017

42

43

Advance Ruling

43

44

Constitution of Authority for Advance Ruling under UTGST Act, 2017

44

45

Constitution of Appellate Authority for Advance Ruling

45

46

Transitional Provisions

46

47

Power to Make Rules

47

48

Notification No. 8/2017 – Integrated Tax

48

49

Notification No. 9/2017 – Integrated Tax

49

50

Notification No. 47/2017 – Central Tax (Rate)

50

51

Notification No. 43/2017 – Central Tax (Rate)

51

52

Notification No.44/2017- Central Tax (Rate)

52

53

Circular No. 27/01/2018-GST

53

54

Circular No. 27/01/2018-GST

54

55

Circular No. 27/01/2018-GST

55

(iii)

56

Circular No. 27/01/2018-GST

56

57

Chapter IX – Miscellaneous, UTGST Act, 2017

57

58

Chapter IX – Miscellaneous, UTGST Act, 2017

58

59

Powers under UTGST Act, 2017

59

60

Recommendations made on GST Rate changes on services by the 25th GST 60

Council Meeting

61

Recommendations made on GST Rate changes on services by the 25th GST 61

Council Meeting

62

Recommendations made on GST Rate changes on services by the 25th GST 62

Council Meeting

63

Recommendations made on GST Rate changes on services by the 25th GST 63

Council Meeting

64

Power to Issue Directions & Removal of Difficulties under UTGST Act, 2017 64

65

Recommendations made on GST Rate changes on services by the 25th GST 65

Council Meeting

66

Recommendations for Changes in GST/IGST Rate and Clarifications in 66

Respect of GST Rate on Certain Goods - As per discussions held in the 25th

GST Council Meeting

67

Recommendations for Changes in GST/IGST Rate and Clarifications in 67

Respect of GST Rate on Certain Goods -As per discussions held in the 25th

GST Council Meeting

68

Recommendations for Changes in GST/IGST Rate and Clarifications in 68

Respect of GST Rate on Certain Goods - As per discussions held in the 25th

GST Council Meeting

69

Recommendations for Changes in GST/IGST Rate and Clarifications in 69

Respect of GST Rate on Certain Goods -As per discussions held in the 25th

GST Council Meeting

70

Recommendations for Changes in GST/IGST Rate and Clarifications in 70

Respect of GST Rate on Certain Goods -As per discussions held in the 25th

GST Council Meeting

(iv)

71

Recommendations for Changes in GST/IGST Rate and Clarifications in 71

Respect of GST Rate on Certain Goods -As per discussions held in the 25th

GST Council Meeting

72

Central Goods & Services Tax Rules, 2017

72

73

Central Goods & Services Tax Rules, 2017 - Chapter III

73

74

Central Goods & Services Tax Rules, 2017 - Registration

74

75

Central Goods & Services Tax Rules, 2017 - Registration

75

76

Central Goods & Services Tax Rules, 2017 – Registration Verification

76

77

Composition Levy under Goods & Services Tax

77

78

Central Goods & Services Tax Rules, 2017- Issue of Registration Certificate 78

79

Separate registration for multiple business verticals within a State or a 79

Union territory Rules

80

Grant of registration to persons required to deduct tax at source or to 80

collect tax at source

81

Grant of registration to non-resident taxable person

81

82

Central Goods & Services Tax Rules, 2017 – Rule 14 & Rule 15

82

83

Suo Moto Registration

83

84

Central Goods & Services Tax Rules, 2017 - Rule 17 & Rule 18

84

85

Amendment of Registration

85

86

Amendment of Registration

86

87

Cancellation of Registration

87

88

Cancellation of Registration in Certain Cases

88

89

Cancellation of Registration

89

90

Revocation of cancellation of registration

90

(v)

91

Value of supply of goods or services where the consideration is not wholly 91

in money

92

Value of supply of goods or services or both between distinct or related 92

persons, other than through an agent

93

Value of supply of goods made or received through an agent

93

94

Central Goods & Services Tax Rules, 2017 - Rule 30 & Rule 31

94

95

Central Goods & Services Tax Rules, 2017

95

96

Central Goods & Services Tax Rules, 2017 - Rule 34 & Rule 35

96

97

Press Release regarding Policy Changes of 26th GST Council Meeting

97

98

E-way Bill Recommendations

98

99

E-way Bill Recommendations

99

100

E-way Bill Recommendations

100

(vi)

From the President

In an advance move to boost the growth of Indian economy, India's effort to implement Goods and

Service Tax (GST) has been synchronized quite well with the spirit to provide a single tax structure

ensuring transparency and accountability at parity. Endorsing the major role of GST in the inclusive

development of New India, the Economic Survey 2017-18 confirmed that ‘ GST has given a new perceptive

of the Indian economy and new data has emerged. There has been a fifty percent increase in the number of

indirect taxpayers. There has also been a large increase in voluntary registrations, especially by small

enterprises that buy from large enterprises wanting to avail themselves of input tax credits. ’

Well said that ‘ Success is the sum of small efforts repeated day in and day out’, and henceforth, while

aligning the words of our Hon’ble Prime Minister that ‘ GST is a great step by Team India, great step

towards transformation, and great steps towards transparency’, professionals including Company

Secretaries are serving their expertise towards successful implementation of GST throughout the Nation.

Right from big business houses to small shops in remote areas, governance professionals are assisting in

apprising the people with the mechanics of GST and unlocking the door of opportunities in an era of

corruption free and sustainably governed New India.

Subsuming a bigger role in supporting the government towards its initiatives for an inclusive nation, The

Institute of Company Secretaries of India (ICSI) has cherished a golden partnership in Nation building

activities, including an out and out support for the directed implementation of GST Pan India too.

The Institute while building the capacity of its members, students and stakeholders in GST is constantly

apprising the relevant updates through GST Newsletter, GST Educational Series, GST App, GST Point and

alike. The one among the featuring initiative in this direction is the publication of our daily GST

Educational Series, which is being well received by the public at large. It is evident from the fact that

more than 200 issues of the same have successfully been brought out.

The GST Educational Series have been useful as an academic tool for all the stakeholders. With the

perspective to strengthen the understanding and advance the knowledge related to GST to public at large

on topics contained under the GST Law, ICSI has released a compilation of 100 issues [Issue No. 101-200]

of GST Educational Series.

Though the GST Educational Series are also available at GST Corner of the ICSI Website at

https://www.icsi.edu/GSTEducationalSeries.aspx., ICSI has released a one spot compilation of the daily series titled GST Educational Series to facilitate the readers to augment their understanding of the

aspects related to GST and continue to be a source of support and enhance their commitment for the

subject.

I place on record my earnest admiration to CS Nikita Agarwal for preparing this publication in a sincere,

effective and presentable manner under the guidance of Ms. Sonia Baijal, Director, ICSI.

I am sure that this one spot source of knowledge and updates in GST, would be a valuable tool for our

professionals in serving their professional expertise towards ‘ Naye Bharat ka Naya Nirman’

Looking forward for your treasured feedback on the compilation.

Place : New Delhi CS Makarand Lele Date : May 2018 President The Institute of Company Secretaries of India

(vii)

Goods & Services Tax

Educational Series

Issue 101

Anti Profiteering Under Goods & Services Tax

Explanation to Rule 137 of Chapter XV containing Anti Profiteering Rules explains the meaning

of various terms for understanding the provisions, which include:

“Authority” means the National Anti-profiteering Authority

constituted under rule 122

“Committee” means the Standing Committee on Anti-

profiteering constituted by the Council in terms of sub-rule

(1) of rule 123 of these rules

“Interested party” includes:

a. suppliers of goods or services under the proceedings;

and

b. recipients of goods or services under the proceedings

c. any other person alleging, under sub-rule (1) of rule

128, that a registered person has not passed on the

benefit of reduction in the rate of tax on any supply of

goods or services or the benefit of input tax credit to the

recipient by way of commensurate reduction in prices.

“Screening Committee” means the State level Screening

Committee constituted in terms of sub-rule (2) of rule 123

of these rules

Issued vide reference number PD & PP : GST: 101/2017, updated version.

Goods & Services Tax

Educational Series

Issue 102

Scrutiny of Returns under Goods & Services Tax

Rule 99 of CGST Rules, 2017 deals with the scrutiny of returns with following provisions:

Any return selected to be scrutinised shall be done in

accordance with provisions of section 61. In case of any

discrepancy, he shall issue a notice to the said person in

FORM GST ASMT-10 seeking explanation within thirty

days from the date of service of the notice or such further

period as may be permitted by him and also, where

possible, quantifying the amount of tax, interest and any

other amount payable in relation to such discrepancy

The registered person may accept the

discrepancy mentioned in the notice and pay the

tax, interest and any other amount arising from

such discrepancy and inform the same or furnish

an explanation for the discrepancy in FORM GST

ASMT- 11 to the proper officer

Where the explanation furnished by the

registered person or the information submitted

is found to be acceptable, the proper officer shall

inform him accordingly in FORM GST ASMT-12

Issued vide reference nu

mber PD & PP : GST : 102/2017.

Goods & Services Tax

Educational Series

Issue 103

Standing Committee for Consumer Welfare Fund

Rule 97(4) of CGST Rules, 2017 states that the Government shall, by an order, constitute a

Standing Committee with a Chairman, a Vice-Chairman, a Member Secretary and such other

Members as it may deem fit and the Committee shall make recommendations for proper

utilisation of the money credited to the Consumer Welfare Fund for welfare of the consumers.

The Committee shall have the following powers

• require any applicant to get registered with any authority as the Central Government may

specify

• to require any applicant to produce before it or a duly authorised Officer of the Government

such books, accounts, documents, instruments, or commodities in custody and control of the

applicant, as may be necessary for proper evaluation of application

• to get the accounts of the applicants audited

• to recover any sum due from any applicant

• to require any applicant to allow entry and inspection of any premises, from which activities

claimed to be for the welfare of consumers are stated to be carried on, to a duly authorised

officer of the Central Government or State Government

• to make guidelines for the management, administration and audit of the Consumer

Welfare Fund

• to reject an application placed before it on account of factual inconsistency, or

inaccuracy in material particulars

• to require any applicant, in case of any default, or suppression of material information on his

part, to refund in lump-sum, the sanctioned grant to the Committee, and to be subject to

prosecution

• to require any applicant, or class of applicants to submit a periodical report, indicating

proper utilisation of the grant

• to relax the conditions required for the period of engagement in consumer welfare

activities of an applicant

• to recommend minimum financial assistance, by way of grant to an applicant, having regard to

his financial status, and importance and utility of nature of activity under pursuit, after ensuring

that the financial assistance provided shall not be misutilised

• to identify beneficial and safe sectors, where investments out of Consumer Welfare Fund

may be made and make recommendations

Issued vide reference number PD & PP : GST: 103/2017, updated version.

Goods & Services Tax

Educational Series

Issue 104

Place of supply of services where location of supplier or

location of recipient is outside India- IGST Act, 2017

Section 13(12) of IGST Act, 2017 deals with the place of supply of online information and

database access or retrieval services which clarifies it to be the location of the recipient of

services.

However for the purposes of this sub-section, person receiving such services shall be deemed

to be located in the taxable territory, if any two of the following non contradictory conditions

are satisfied, as under:

Location of address presented by the

recipient of services through internet is in the

taxable territory

Credit card or debit card or store value

card or charge card or smart card or

any other card by which the recipient

Billing address of the recipient of

of services settles payment has been

services is in the taxable territory

issued in the taxable territory

Internet protocol

Bank of the recipient

Country code of the

Location of the fixed

address of the device

of services in which

subscriber identity

land line through

used by the recipient

the account used for

module card used by

which the service is

of services is in the

payment is

the recipient of

received by the

taxable territory

maintained is in the

services is of taxable

recipient is in the

taxable territory

territory

taxable territory

Issued vide reference number PD & PP : GST : 104/2017.

Goods & Services Tax

Educational Series

Issue 105

Online Information And Database Access Or

Retrieval Services

Section 2(17) of IGST Act, 2017 defines “online information and database access or retrieval

services” as services whose delivery is mediated by information technology over the internet

or an electronic network and the nature of which renders their supply essentially automated

and involving minimal human intervention and impossible to ensure in the absence of

information technology and includes electronic services such as:

advertising on the

internet

online supplies of

digital content

online gaming

(movies, television

shows, music and the

like)

providing cloud

digital data storage

services

providing data or

provision of e-books,

information,

movie, music,

retrievable or

software and other

otherwise, to any

intangibles through

person in electronic

telecommunication

form through a

networks or internet

computer network

Issued vide reference number PD & PP : GST : 105/2017.

Goods & Services Tax

Educational Series

Issue 106

Definitions under Integrated

Goods & Services Tax Act, 2017

Section 2 of IGST Act, 2017 lays down definitions of important terms in the Act, unless the context otherwise

requires:

(2)

‘‘Central tax” means the tax levied and collected under the Central Goods and Services Tax Act;

(3)

“Continuous journey” means a journey for which a single or more than one ticket or invoice is issued

at the same time, either by a single supplier of service or through an agent acting on behalf of more

than one supplier of service, and which involves no stopover between any of the legs of the journey

for which one or more separate tickets or invoices are issued. Explanation.––For the purposes of this

clause, the term “stopover” means a place where a passenger can disembark either to transfer to

another conveyance or break his journey for a certain period in order to resume it at a later point of

time;

(4)

“Customs frontiers of India” means the limits of a customs area as defined in section 2 of the

Customs Act, 1962;

(7)

“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;

(8)

“Goods and Services Tax (Compensation to States) Act” means the Goods and Services Tax

(Compensation to States) Act, 2017;

(9)

“Government” means the Central Government;

(12)

“Integrated tax” means the integrated goods and services tax levied under this Act;

(13)

“Intermediary” means a broker, an agent or any other person, by whatever name called, who

arranges or facilitates the supply of goods or services or both, or securities, between two or more

persons, but does not include a person who supplies such goods or services or both or securities on

his own account

Issued vide reference number PD & PP : GST : 106/2017.

Goods & Services Tax

Educational Series

Issue 107

Definitions under Integrated Goods & Services Tax Act, 2017

Section 2 of IGST Act, 2017 lays down definitions of important terms in the Act, unless the context otherwise

requires:

(16) “Non-taxable online recipient” means any Government, local authority, governmental authority, an

individual or any other person not registered and receiving online information and database access or

retrieval services in relation to any purpose other than commerce, industry or any other business or

profession, located in taxable territory.

Explanation:––For the purposes of this clause, the expression “governmental authority” means an authority

or a board or any other body:

set up by an Act of

Parliament or a State

Legislature

established by any

Government

with ninety per cent or more participation by way of equity or control, to carry out any function entrusted

to a municipality under article 243W of the Constitution;

(18) “Output tax” , in relation to a taxable person, means the integrated tax chargeable under this Act on taxable

supply of goods or services or both made by him or by his agent but excludes tax payable by him on reverse

charge basis;

(19) “Special Economic Zone” shall have the same meaning as assigned to it in clause (za) of section 2 of the Special Economic Zones Act, 2005;

(20) “Special Economic Zone developer” shall have the same meaning as assigned to it in clause (g) of section 2 of

the Special Economic Zones Act, 2005 and includes an Authority as defined in clause (d) and a Co-Developer

as defined in clause (f) of section 2 of the said Act;

(21) “Supply” shall have the same meaning as assigned to it in section 7 of the Central Goods and Services Tax Act;

(22) “Taxable territory” means the territory to which the provisions of this Act apply;

(23) “Zero-rated supply” shall have the meaning assigned to it in section 16

Issued vide reference number PD & PP : GST : 107/2017.

Goods & Services Tax

Educational Series

Issue 108

Zero Rated Supply under IGST Act, 2017

Section 16 of IGST Act, 2017 explains the provisions related to Zero Rate Supplies under Goods & Services Tax

which are as under:

Zero Rated Supply means any of the following supplies of goods or services or both, namely:

export of goods or services or both

supply of goods or services or both to a Special Economic Zone

developer or a Special Economic Zone unit

Credit of input tax may be availed for making zero-rated supplies, notwithstanding that such supply may be an

exempt supply and subject to provisions of Section 17(5) of CGST Act, 2017.

A registered person making zero rated supply shall be eligible to claim refund under either of the following

options in accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules

made thereunder:

he may supply goods

or services or both

he may supply goods

under bond or Letter

or services or both,

of Undertaking, subject

subject to such

to such conditions,

conditions, safeguards

safeguards and

and procedure as may

procedure as may be

be prescribed, on

prescribed, without

payment of integrated

payment of integrated

tax and claim refund of

tax and claim refund of

such tax paid on goods

unutilised input tax

or services or both

credit OR

supplied

Issued vide reference nu

mber PD & PP : GST : 108/2017.

Goods & Services Tax

Educational Series

Issue 109

Place of Supply

Section 13(8) of IGST Act, 2017 derives the place of supply to be the location of supplier of

services for the following services:

services consisting of

services supplied by a banking

hiring of means of

company, or a financial institution, or

transport, including

a non-banking financial company, to

intermediary services

yachts but excluding

account holders

aircrafts and vessels, up

to a period of one month

Following terms for the purpose of this Section:

(a) “account” means an account bearing interest to the depositor, and includes a non-

resident external account and a non-resident ordinary account;

(b) “banking company” shall have the same meaning as assigned to it under clause (a) of

section 45A of the Reserve Bank of India Act, 1934;

(c) ‘‘financial institution” shall have the same meaning as assigned to it in clause (c) of

section 45-I of the Reserve Bank of India Act, 1934;

(d) “non-banking financial company” means :

non-banking institution

such other non-banking

which is a company and

institution or class of such

a financial

its principal business is

institutions, as the Reserve

institution

receiving of deposits,

Bank of India may, with the

which is a

under any scheme or

previous approval of the

company

arrangement or in any

Central Government and by

other manner, or lending

notification in the Official

in any manner

Gazette, specify

” means:

Issued vide reference number PD & PP : GST : 109/2017.

Goods & Services Tax

Educational Series

Issue 110

Apportionment of Tax Under IGST Act, 2017

Section 17(1) of Integrated GST Act, 2017 lays down that out of the following integrated tax

paid to the Central Government, the amount of tax calculated at the rate equivalent to the

central tax on similar intra-State supply shall be apportioned to the Central Government.

in respect of inter-State supply of

goods or services or both to an

in respect of inter-State supply of

unregistered person or to a registered

goods or services or both where the

person paying tax under section 10 of

registered person is not eligible for

CGST Act

input tax credit

in respect of inter-State supply of

goods or services or both made in a

financial year to a registered person,

in respect of import of goods or

where he does not avail of the input

services or both by an unregistered

tax credit within the specified period

person or by a registered person

and thus remains in the integrated tax

paying tax under section 10 of CGST

account after expiry of the due date for

Act

furnishing of annual return for such

year in which the supply was made

in respect of import of goods or

services or both made in a financial

in respect of import of goods or

year by a registered person, where he

services or both where the registered

does not avail of the said credit within

person is not eligible for input tax

the specified period and thus remains

credit

in the integrated tax account after

expiry of the due date for furnishing of

annual return for such year in which

the supply was received

Issued vide reference number PD & PP : GST : 110/2017.

Goods & Services Tax

Educational Series

Issue 111

LEVY and COLLECTION under IGST Act, 2017

Section 5 of the IGST Act, 2017 lays down the provisions of Levy and Collection of integrated

goods and services tax on all inter-State supplies of goods or services or both. Few points to be

noted include:

It will be levied exception the supply of alcoholic liquor

for human consumption

Integrated tax on goods

imported into India shall

Integrated tax on the

be levied and collected

The Government may, on

supply of petroleum

as per section 3 of the

the recommendations of

crude, high speed diesel,

Customs Tariff Act, 1975

the Council, by

motor spirit , natural gas

on the value as

notification, specify

and aviation turbine fuel

determined under the

categories of supply of

shall be levied when

said Act at the point

goods or services or

notified by the

when duties of customs

both, the tax on which

Government on the

are levied on the said

shall be paid on reverse

recommendations of the

goods under section 12

charge basis

Council

of the Customs Act, 1962

The Government may, on

the recommendations of

Under reverse charge, all

the Council, by

the provisions of this Act

notification, specify

shall apply to such

It will be levied on the

categories of services,

recipient as if he is the

value determined under

the tax on inter-State

person liable for paying

section 15 of CGST Act

supplies of which shall

the tax in relation to the

and not exceeding 40%

be paid by the electronic

supply of such goods or

commerce operator

services or both

Issued vide reference number PD & PP : GST : 111/2017.

Goods & Services Tax

Educational Series

Issue 112

Power to Grant Exemption Under IGST Act, 2017

Section 6-Power to grant exemption from tax

(3)The Government may, if it

(1)Where the Government is

considers necessary or

satisfied that it is necessary in

expedient so to do for the

the public interest so to do, it

(2)Where the Government is

purpose of clarifying the scope

may, on the recommendations

satisfied that it is necessary in

or applicability of any

of the Council, by notification,

the public interest so to do, it

notification issued, insert an

exempt generally, either

may, on the recommendations Explanation in such notification

absolutely or subject to such

of the Council, by special order or order, as the case may be, by

conditions as may be specified

in each case, under

notification at any time within

therein, goods or services or

circumstances of an exceptional

one year of issue of the

both of any specified

nature to be stated in such

notification under sub-section

description from the whole or order, exempt from payment of (1) or order under sub-section

any part of the tax leviable

tax any goods or services or

(2), and every such Explanation

thereon with effect from such

both on which tax is leviable

shall have effect as if it had

date as may be specified in such

always been the part of the first

notification

such notification or order, as

the case may be

Where an exemption in respect of any goods or services or both from the whole or part of the

tax leviable thereon has been granted absolutely, the registered person supplying such goods

or services or both shall not collect the tax, in excess of the effective rate, on such supply of

goods or services or both.

Issued vide reference number PD & PP : GST : 112/2017.

Goods & Services Tax

Educational Series

Issue 113

Apportionment of Tax Under IGST Act, 2017

INTER STATE

SUPPLY- Section 7

Supply of goods

imported into the

territory of India, till

Supply of services

they cross the

imported into the

customs frontiers of

territory of India

India

Supply of

Supply of

goods/services

goods or

where location of

services

supplier and place

of supply are in

when the

supplier is

located in

India and the

two

place of

different

a State and

supply is

to or by a

in the taxable

States

two different

a Union

Special

territory, not

Union

territory

outside India

Economic

being an intra-

territories

Zone

State supply

developer or

a Special

Economic

Zone unit

Issued vide reference number PD & PP : GST : 113/2017.

Goods & Services Tax

Educational Series

Issue 114

Decisions relating to Services in

23rd GST Council Meeting

In the 23rd meeting of GST Council held at Guwahati, Assam on 10.11.2017, the following decisions relating to

exemptions / changes in GST rates / ITC eligibility criteria, rationalization of rates / exemptions and clarification

on levy of GST on services were taken. The information is being uploaded immediately after the GST Council’s

decision and it will be subject to further vetting during which the list may undergo some changes.

EXEMPTIONS/CHANGES IN GST RATES/ITC ELIGIBILITY CRITERIA

1. All stand-alone restaurants irrespective of air conditioned or otherwise, will attract 5% GST without ITC.

Food parcels (or takeaways) will also attract 5% GST without ITC.

2. Restaurants in hotel premises having room tariff of less than Rs 7500 per unit per day will attract GST of 5%

without ITC.

3. Restaurants in hotel premises having room tariff of Rs 7500 and above per unit per day (even for a single

room) will attract GST of 18% with full ITC.

4. Outdoor catering will continue to be at 18% with full ITC.

5. GST on Services by way of admission to "protected monuments" will be exempted.

6. The rate of GST on job work services in relation to manufacture of those handicraft goods in respect of

which the casual taxable person has been exempted from obtaining registration, shall be reduced to 5%

with full ITC.

RATIONALIZATION OF EXEMPTION ENTRIES

7. The existing exemption entries with respect to services provided by Fair Price Shops to Central

Government, State Governments or Union territories by way of sale of food grains, kerosene, sugar, edible

oil, etc. under Public Distribution System (PDS) against consideration in the form of commission or margin,

is being rationalized so as to remove ambiguity regarding list of items and the category of recipients to

whom the exemption is available.

8. In order to maintain consistency, entry at item (vi) of Sr. No.3 of notification No. 11/2017- CT(R) will be

aligned with the entries at items (ii), (iii), (iv) and (v) of SI.No.3. [The word “services” in entry (vi) will be

replaced with "Composite supply of Works contract as defined in clause 119 of Section 2 of CGST Act,

2017"].

9. In order to obviate disputes and litigation, it is proposed to place- (i) permanent transfer of Intellectual

Property other than Information Technology software in the goods rate of 12%; and (ii) permanent transfer

of Intellectual Property in respect of Information Technology software in the goods rate list of 18%.

Source : cbec.gov.in

Issued vide reference number PD & PP : GST : 114/2017.

Goods & Services Tax

Educational Series

Issue 115

Recommendations made by the GST Council

in the 23rd meeting

The GST Council, in its 23rd meeting held at Guwahati on 10th November 2017, has recommended the

following facilitative measures for taxpayers:

Return Filing

a)

The return filing process is to be further simplified in the following manner:

i.

All taxpayers would file return in FORM GSTR-3B along with payment of tax by 20th of

the succeeding month till March, 2018.

ii.

For filing of details in FORM GSTR-1 till March 2018, taxpayers would be divided into

two categories. Details of these two categories along with the last date of filing GSTR 1

are as follows:

(a) Taxpayers with annual aggregate turnover upto Rs. 1.5 crore need to file GSTR-1 on

quarterly basis as per following frequency:

Period

Dates

Jul- Sep

31st Dec 2017

Oct- Dec

15th Feb 2018

Jan- Mar

30th April 2018

(b) Taxpayers with annual aggregate turnover more than Rs. 1.5 crore need to file

GSTR-1 on monthly basis as per following frequency:

Period

Dates

Jul- Oct

31st Dec 2017

Nov

10th Jan 2018

Dec

10th Feb 2018

Jan

10th Mar 2018

Feb

10th Apr 2018

Mar

10th May 2018

iii.

The time period for filing GSTR-2 and GSTR-3 for the months of July, 2017 to March

2018 would be worked out by a Committee of Officers. However, filing of GSTR-1 will

continue for the entire period without requiring filing of GSTR-2 & GSTR-3 for the

previous month / period.

Source : cbec.gov.in

Issued vide reference number PD & PP : GST : 115/2017.

Goods & Services Tax

Educational Series

Issue 116

Recommendations made by the GST Council

in the 23rd Meeting

The GST Council, in its 23rd meeting held at Guwahati on 10th November 2017, has recommended the following

facilitative measures for taxpayers:

Return Filing

a)

The return filing process is to be further simplified in the following manner:

i. All taxpayers would file return in FORM GSTR-3B along with payment of tax by 20th of the

succeeding month till March, 2018.

ii. For filing of details in FORM GSTR-1 till March 2018, taxpayers would be divided into two categories.

Details of these two categories along with the last date of filing GSTR 1 are as follows:

(a) Taxpayers with annual aggregate turnover upto Rs. 1.5 crore need to file GSTR-1 on quarterly

basis as per following frequency:

Period

Dates

Jul- Sep

31st Dec 2017

Oct- Dec

15th Feb 2018

Jan- Mar

30th April 2018

(b) Taxpayers with annual aggregate turnover more than Rs. 1.5 crore need to file GSTR-1 on

monthly basis as per following frequency:

Period

Dates

Jul- Oct

31st Dec 2017

Nov

10th Jan 2018

Dec

10th Feb 2018

Jan

10th Mar 2018

Feb

10th Apr 2018

Mar

10th May 2018

iii. The time period for filing GSTR-2 and GSTR-3 for the months of July, 2017 to March 2018 would be

worked out by a Committee of Officers. However, filing of GSTR-1 will continue for the entire period

without requiring filing of GSTR-2 & GSTR-3 for the previous month / period.

Source : cbec.gov.in

Issued vide reference number PD & PP : GST : 116/2017.

Goods & Services Tax

Educational Series

Issue 117

Recommendations made by the GST Council

in the 23rd Meeting

Return Filing

A large number of taxpayers were unable to file their return in FORM GSTR-3B within due date

for the months of July, August and September, 2017. Late fee was waived in all such cases. It has

been decided that where such late fee was paid, it will be re-credited to their Electronic Cash

Ledger under “Tax” head instead of “Fee” head so as to enable them to use that amount for

discharge of their future tax liabilities. The software changes for this would be made and

thereafter this decision will be implemented.

For subsequent months, i.e. October 2017 onwards, the amount of late fee payable by a taxpayer

whose tax liability for that month was ‘NIL’ will be Rs. 20/- per day (Rs. 10/- per day each under

CGST & SGST Acts) instead of Rs. 200/- per day (Rs. 100/- per day each under CGST & SGST

Acts).

A facility for manual filing of application for advance ruling is being introduced for the time

being.

Further benefits for service providers

Exports of services to Nepal and Bhutan have already been exempted from GST. It has now

been decided that such exporters will also be eligible for claiming Input Tax Credit in respect of

goods or services used for effecting such exempt supply of services to Nepal and Bhutan.

In an earlier meeting of the GST Council, it was decided to exempt those service providers

whose annual aggregate turnover is less than Rs. 20 lakhs (Rs. 10 lakhs in special category

states except J & K) from obtaining registration even if they are making inter-State taxable

supplies of services. As a further measure towards taxpayer facilitation, it has been decided to

exempt such suppliers providing services through an e-commerce platform from obtaining

compulsory registration provided their aggregate turnover does not exceed twenty lakh

rupees. As a result, all service providers, whether supplying intra-State, inter-State or through

ecommerce operator, will be exempt from obtaining GST registration, provided their aggregate

turnover does not exceed Rs. 20 lakhs (Rs. 10 lakhs in special category States except J & K).

Benefits for Diplomatic Missions/UN organizations

In order to lessen the compliance burden on Foreign Diplomatic Missions / UN Organizations, a

centralized UIN will be issued to every Foreign Diplomatic Mission / UN Organization by the

Central Government and all compliance for such agencies will be done by the Central

Government in coordination with the Ministry of External Affairs.

Source : cbec.gov.in

Issued vide reference number PD & PP : GST : 117/2017.

Goods & Services Tax

Educational Series

Issue 118

Intra State Supplies under IGST Act, 2017

Section 8 of IGST Act, 2017 states that to be an Intra State supply of goods, the location of

the supplier and the place of supply of goods are in the same State or same Union territory.

Similarly, supply of services where the location of the supplier and the place of supply of

services are in the same State or same Union territory shall be treated as intra-State supply.

The following supply of goods shall not be treated as intra-State supply:

supply of goods

goods imported

to or by a Special

into the territory

Economic Zone

of India till they

supplies made to

developer or a

cross the

a tourist referred

Special Economic

customs

to in section 15

Zone unit

frontiers of India

Similarly, intra-State supply of services shall not include supply of services to or by a

Special Economic Zone developer or a Special Economic Zone unit.

Issued vide reference number PD & PP : GST : 118/2017.

Goods & Services Tax

Educational Series

Issue 119

Establishment under IGST Act, 2017

As per the Explanation to Section 8 of IGST Act, 2017, the following are treated as establishments of

distinct persons:

an establishment in India and any other

establishment outside India

an establishment in a State or Union

territory and any other establishment

outside that State or Union territory

establishment in a State or Union

territory and any other establishment

being a business vertical registered

within that State or Union territory

However, a person carrying on business through a branch or an agency or a representational office in

any territory shall be treated as having an establishment in that territory.

According to Section 9 of IGST Act, 2017, in the following cases, the place of supply, shall be deemed to

be in the coastal State or Union territory where the nearest point of the appropriate baseline is located:

where the place

of supply is in

the territorial

where the

waters

location of

the

supplier is

in the

territorial waters

Issued vide reference number PD & PP : GST : 119/2017.

Goods & Services Tax

Educational Series

Issue 120

Special Provision for Payment of Tax by a Supplier of Online

Information and Database Access or Retrieval Services

Section 14 of IGST Act lays down that on supply of online information and database access or retrieval services by

any person located in a non-taxable territory and received by a non-taxable online recipient, the supplier of

services located in a non-taxable territory shall be the person liable for paying integrated tax on such supply of

services.

However in the case of supply of online information and database access or retrieval services by any person

located in a non-taxable territory and received by a nontaxable online recipient, an intermediary located in the

non-taxable territory, who arranges or facilitates the supply of such services, shall be deemed to be the recipient

of such services from the supplier of services in non-taxable territory and supplying such services to the non-

taxable online recipient except when such intermediary satisfies the following conditions:

the invoice or customer’s bill or receipt issued or made available by such

intermediary taking part in the supply clearly identifies the service in

question and its supplier in non-taxable territory

the intermediary involved in the supply does not authorise the charge to

the customer or take part in its charge which is that the intermediary

neither collects or processes payment in any manner nor is responsible

for the payment between the non-taxable online recipient and the

supplier of such services

the intermediary involved in the supply does not authorise delivery

the general terms and conditions of the supply are not set by the

intermediary involved in the supply but by the supplier of services

The abovementioned supplier may take a single registration under the Simplified Registration Scheme to be

notified by the Government provided that any person located in the taxable territory representing such supplier

for any purpose in the taxable territory shall get registered and pay integrated tax on behalf of the supplier. Also, if

such supplier does not have a physical presence or does not have a representative for any purpose in the taxable

territory, he may appoint a person in the taxable territory for the purpose of paying integrated tax and such

person shall be liable for payment of such tax.

Issued vide reference number PD & PP : GST : 120/2017.

Goods & Services Tax

Educational Series

Issue 121

Place of Supply – Online Information and Database

Access or Retrieval Services

Section 13(12) of IGST Act, 2017 lays down the place of supply in case of online information and database access

or retrieval services to be the location of the recipient of services. However, for the purposes of this sub-section,

person receiving such services shall be deemed to be located in the taxable territory, if any two of the following

non contradictory conditions are satisfied:

• the location of address presented by the recipient of services through internet is in the taxable territory

a.

• the credit card or debit card or store value card or charge card or smart card or any other card by which the recipient of

services settles payment has been issued in the taxable territory

b.

• the billing address of the recipient of services is in the taxable territory

c.

• the internet protocol address of the device used by the recipient of services is in the taxable territory

d.

• the bank of the recipient of services in which the account used for payment is maintained is in the taxable territory

e.

• the country code of the subscriber identity module card used by the recipient of services is of taxable territory

f.

• the location of the fixed land line through which the service is received by the recipient is in the taxable territory

g.

Issued vide reference number PD & PP : GST : 121/2017.

Goods & Services Tax

Educational Series

Issue 122

The Union Territory Goods & Services Tax Act, 2017

Various important terms under Section 2 of Union Territory Goods & Services Tax Act, 2017 include:

Section 2: In this Act, unless the context otherwise requires—

(1) ‘‘Appointed day’’ means the date on which the provisions of this Act shall come into force;

(2) ‘‘Commissioner’’ means the Commissioner of Union territory tax appointed under section 3;

(3) ‘‘Designated authority’’ means such authority as may be notified by the Commissioner;

(4) ‘‘Exempt supply’’ means supply of any goods or services or both which attracts nil rate of tax or

which may be exempt from tax under section 8, or under section 6 of the Integrated Goods and

Services Tax Act, and includes non-taxable supply;

(5) ‘‘Existing law’’ means any law, notification, order, rule or regulation relating to levy and

collection of duty or tax on goods or services or both passed or made before the commencement

of this Act by Parliament or any Authority or person having the power to make such law,

notification, order, rule or regulation;

(6) ‘‘Government’’ means the Administrator or any Authority or officer authorised to act as

Administrator by the Central Government;

(7) ‘‘Output tax’’ in relation to a taxable person, means the Union territory tax chargeable under

this Act on taxable supply of goods or services or both made by him or by his agent but excludes

tax payable by him on reverse charge basis;

(8) ‘‘Union territory’’ means the territory of —

(i) the Andaman and Nicobar Islands; (ii) Lakshadweep; (iii) Dadra and Nagar Haveli; (iv)

Daman and Diu; (v) Chandigarh; or (vi) other territory.

Explanation—For the purposes of this Act, each of the territories specified in sub-clauses (i) to

(vi) shall be considered to be a separate Union territory

(9) ‘‘Union territory tax’ means the tax levied under this Act.

Issued vide reference number PD & PP : GST : 122/2017.

Goods & Services Tax

Educational Series

Issue 123

Supply of Goods under IGST Act, 2017

Section 11 lays down the Place of Supply of goods imported into or exported from India.

Imported into

Location of

India

importer

Place of Supply

of Goods

Exported from

Location outside

India

India

Section 15 deals with Refund of Integrated Tax paid by an International Tourist on supply of

goods taken out of India by him. It will be as per the rules prescribed in this regard.

Tourist means a person not normally resident in India, who enters India for a stay

of not more than six months for legitimate non immigrant purposes.

Issued vide reference number PD & PP : GST : 123/2017.

Goods & Services Tax

Educational Series

Issue 124

Apportionment of Tax and Settlement of Funds

under IGST Act, 2017

As discussed earlier, Section 17(1) of IGST Act, 2017 deals with how integrated tax paid to the

Central Government is to be apportioned and credited. Section 17(2) deals with balance

amount of integrated tax remaining in the integrated tax account in respect of the supply for

which an apportionment to the Central Government has been done under sub-section (1) shall

be apportioned to:

State where such

supply takes

Central Government where

place

such supply takes place in a

Union territory

Where the place of such supply made by any taxable person cannot be determined separately,

the said balance amount shall be apportioned to:

a.

b.

Central Government in relation

to

Union

territories,

in

Each of the States

proportion to the total supplies

made by such taxable person to

each of such States or Union

territories

Where the taxable person making such supplies is not identifiable, the said balance amount

shall be apportioned to all States and the Central Government in proportion to the amount

collected as State tax or, as the case may be, Union territory tax, by the respective State or, as

the case may be, by the Central Government during the immediately preceding financial year.

Issued vide reference number PD & PP : GST : 124/2017.

Goods & Services Tax

Educational Series

Issue 125

Apportionment of Tax and Settlement of Funds

under IGST Act, 2017

In continuance to provisions of Section 17(1) and 17(2) of IGST Act, 2017 relating to

apportionment of integrated tax, the below mentioned provisions follow:

Section 17(3)

•The provisions of sub-sections (1) and (2) relating to apportionment of integrated tax shall, mutatis

mutandis, apply to the apportionment of interest, penalty and compounding amount realised in

connection with the tax so apportioned

Section17(4)

•Where an amount has been apportioned to the Central Government or a State Government under

sub-section (1) or (2) or (3), amount collected as integrated tax shall stand reduced by an amount

equal to the amount so apportioned and the Central Government shall transfer to the central tax

account or Union territory tax account, an amount equal to the respective amounts apportioned to

the Central Government and shall transfer to the State tax account of the respective States an amount

equal to the amount apportioned to that State, in such manner and within such time as may be

prescribed

Section17(5)

•Any integrated tax apportioned to a State or, as the case may be, to the Central Government on

account of a Union territory, if subsequently found to be refundable to any person and refunded to

such person, shall be reduced from the amount to be apportioned under this section, to such State, or

Central Government on account of such Union territory, in such manner and within such time as may

be prescribed

Issued vide reference number PD & PP : GST : 125/2017.

Goods & Services Tax

Educational Series

Issue 126

Tax Wrongly Collected and Credited

Section 19 of IGST Act, 2017 deals with the provisions of tax which is wrongly collected as

interstate tax being intra state or vice versa.

A registered person who has paid integrated tax on a supply

considered by him to be an inter-State supply, but which is

subsequently held to be an intra-State supply, shall be granted refund

of the amount of integrated tax so paid in such manner and subject to

such conditions as may be prescribed.

A registered person who has paid central tax and State tax or Union

territory tax, as the case may be, on a transaction considered by him

to be an intra-State supply, but which is subsequently held to be an

inter-State supply, shall not be required to pay any interest on the

amount of integrated tax payable.

Issued vide reference number PD & PP : GST : 126/2017.

Goods & Services Tax

Educational Series

Issue 127

Transfer of Input Tax Credit

Section 18 of Integrated Goods & Services Tax, 2017 deals with transfer of Input Tax Credit. It

lays down that on utilisation of credit of integrated tax availed under this Act for payment of:

Central tax in accordance with the provisions of Section

49(5) of the Central Goods and Services Tax Act,2017, the

amount collected as integrated tax shall stand reduced by an

amount equal to the credit so utilised and the Central

Government shall transfer an amount equal to the amount so

reduced from the integrated tax account to the central tax

account in such manner and within such time as may be

prescribed;

Union territory tax in accordance with the provisions of

section 9 of the Union Territory Goods and Services Tax Act,

the amount collected as integrated tax shall stand reduced by

an amount equal to the credit so utilised and the Central

Government shall transfer an amount equal to the amount so

reduced from the integrated tax account to the Union

territory tax account in such manner and within such time as

may be prescribed

State tax in accordance with the provisions of the respective

State Goods and Services Tax Act, the amount collected as

integrated tax shall stand reduced by an amount equal to the

credit so utilised and shall be apportioned to the appropriate

State Government and the Central Government shall transfer

the amount so apportioned to the account of the appropriate

State Government in such manner and within such time as

may be prescribed

Appropriate State in relation to a taxable person, means the State or Union territory where he is

registered or is liable to be registered under the provisions of the Central Goods and Services Tax Act.

Issued vide reference number PD & PP : GST : 127/2017.

Goods & Services Tax

Educational Series

Issue 128

Application of Provisions of

Central Goods & Services Act, 2017

Section 20 of IGST Act,2017 states that subject to the provisions of this Act and the rules made thereunder, the following provisions of Central Goods and Services Tax Act shall, mutatis mutandis, apply, so far as may be, in relation to integrated tax as

they apply in relation to central tax as if they are enacted under this Act:

(i)

scope of supply

(ii)

composite supply and mixed supply

(iii)

time and value of supply

(iv)

input tax credit

(v)

registration

(vi)

tax invoice, credit and debit notes

(vii)

accounts and records

(viii)

returns, other than late fee

(ix)

payment of tax

(x)

tax deduction at source

(xi)

collection of tax at source

(xii)

assessment

(xiii)

refunds

(xiv)

audit

(xv)

inspection, search, seizure and arrest

(xvi)

demands and recovery

(xvii)

liability to pay in certain cases

(xviii) advance ruling

(xix)

appeals and revision

(xx)

presumption as to documents

(xxi)

offences and penalties

(xxii)

job work

(xxiii) electronic commerce

(xxiv)

transitional provisions and

(xxv)

miscellaneous provisions including the provisions relating to the imposition of interest and penalty

For the purposes of this Act, the value of a supply shall include any taxes, duties, cesses, fees and charges levied under any law

for the time being in force other than this Act, and the Goods and Services Tax (Compensation to States) Act, if charged separately by the supplier.

In cases where the penalty is leviable under the Central Goods and Services Tax Act and the State Goods and Services Tax Act

or the Union Territory Goods and Services Tax Act, the penalty leviable under this Act shall be the sum total of the said penalties.

Issued vide reference number PD & PP : GST : 128/2017.

Goods & Services Tax

Educational Series

Issue 129

Import of Services made on or after the Appointed Day

Section 21 of Integrated Goods & Services Tax Act, 2017 lays down provisions in relation to

import of services made on or after the appointed day.

Import of services made on or after the appointed day shall be liable to tax under the

provisions of IGST regardless of whether the transactions for such import of services had been

initiated before the appointed day.

Few points to be noted are:

It is made clear that if the tax on such import of services had been paid in full

under the previous law, no tax shall be payable on such import under this Act

If the tax on such import of services had been paid in part under the previous

law, the balance amount of tax shall be payable on such import under this Act

For the purposes of this section, a transaction shall be deemed to have been

initiated before the appointed day if either the invoice relating to such supply

or payment, either in full or in part, has been received or made before the

appointed day

Issued vide reference number PD & PP : GST : 129/2017.

Goods & Services Tax

Educational Series

Issue 130

Power to make Rules and Regulations

Section 22 of Integrated Goods & Services tax Act, 2017 decides the Power to make Rules and

Regulations where the Government may, on the recommendations of the Council, by

notification, make rules for carrying out the provisions of this Act.

Without prejudice to the generality of the provisions of sub-section (1), the Government may

make rules for all or any of the matters which by this Act are required to be, or may be,

prescribed or in respect of which provisions are to be or may be made by rules.

Power to make rules conferred by

this section shall include the power

to give retrospective effect to the

rules or any of them from a date not

earlier than the date on which the

provisions of this Act come into

force

Any rules made under sub-section

(1) may provide that a contravention

thereof shall be liable to a penalty not

exceeding ten thousand rupees

Issued vide reference number PD & PP : GST : 130/2017.

Goods & Services Tax

Educational Series

Issue 131

Laying of Rules, Regulations and Notifications

Section 24 of Integrated GST Act, 2017 lays down the procedure as under :

Every rule made by the Government, every

regulation made by the Board and every

notification issued by the Government

under this Act, shall be laid, as soon as may

be, after it is made or issued, before each

House of Parliament, while it is in session,

for a total period of thirty days which may

be comprised in one session or in two or

more successive sessions, and if

before the expiry of the session immediately

following the session or the successive

sessions aforesaid, both Houses agree in

making any modification in the rule or

regulation or in the notification, as the case

may be, or both Houses agree that the rule

or regulation or the notification should not

be made, the rule or regulation or

notification, as the case may be, shall

thereafter have effect only in such modified

form or be of no effect

Any such modification or annulment shall be without prejudice to the validity of anything

previously done under that rule or regulation or notification.

Issued vide reference number PD & PP : GST : 131/2017.

Goods & Services Tax

Educational Series

Issue 132

Removal of Difficulties

Section 25 of the Integrated Goods & Services Tax, 2017 states that if any difficulty

arises in giving effect to any provision of this Act, the Government may, on the

recommendations of the Council, by a general or a special order published in the Official

Gazette, make such provisions not inconsistent with the provisions of this Act or the

rules or regulations made thereunder, as may be necessary or expedient for the

purpose of removing the said difficulty.

However no such order shall be made after the expiry of a period of three years from

the date of commencement of this Act and every order made under this section shall be

laid, as soon as may be, after it is made, before each House of Parliament.

With regard to appointment and authorization of officers under IGST Act, 2017, as given

under Section 3 and Section 4 of IGST Act, 2017, the Board may appoint such central

tax officers as it thinks fit for exercising the powers under this Act.

The officers appointed under the State Goods and Services Tax Act or the Union

Territory Goods and Services Tax Act are authorised to be the proper officers for the

purposes of this Act, subject to such exceptions and conditions as the Government shall,

on the recommendations of the Council, by notification, specify.

Issued vide reference number PD & PP : GST : 132/2017.

Goods & Services Tax

Educational Series

Issue 133

Powers of Officers under Union Territory

Goods & Services Tax, 2017

Section 5 of UTGST Act, 2017 deals with Powers of Officers under the Act, which are as under:

(1) Subject to such conditions and

limitations as the Commissioner

(2) An officer of a Union territory

may impose, an officer of the

tax may exercise the powers and

Union territory tax may exercise

discharge the duties conferred or

the powers and discharge the

imposed under this Act on any

duties conferred or imposed on

other officer of a Union territory

him under this Act

tax who is subordinate to him

(3) The Commissioner may,

(4) Notwithstanding anything

subject to such conditions and

contained in this section, an

limitations as may be specified in

Appellate Authority shall not

this behalf by him, delegate his

exercise the powers and discharge

powers to any other officer

the duties conferred or imposed

subordinate to him

on any other officer of Union

territory tax

Issued vide reference number PD & PP : GST : 133/2017.

Goods & Services Tax

Educational Series

Issue 134

Authorisation of Officers of Central Tax as Proper Officer

in UTGST Act, 2017

Section 6 of UTGST Act, 2017 deals with Authorisation of officers of central tax as proper

officer in certain circumstances, which include:

•Without prejudice to the provisions of this Act, the officers appointed

under the Central Goods and Services Tax Act are authorised to be the

proper officers for the purposes of this Act, subject to such conditions

(1)

as the Government shall, on the recommendations of the Council, by

notification, specify

•Subject to the conditions specified in the notification issued under sub-

section (1),

•(a) where any proper officer issues an order under this Act, he shall

also issue an order under the Central Goods and Services Tax Act, as

authorised by the said Act under intimation to the jurisdictional

officer of central tax

(2)

•(b) where a proper officer under the Central Goods and Services Tax

Act has initiated any proceedings on a subject matter, no proceedings

shall be initiated by the proper officer under this Act on the same

subject matter

•Any proceedings for rectification, appeal and revision, wherever

applicable, of any order passed by an officer appointed under this Act,

(3)

shall not lie before an officer appointed under the Central Goods and

Services Tax Act.

Issued vide reference number PD & PP : GST : 134/2017.

Goods & Services Tax

Educational Series

Issue 135

Administration under UTGST Act, 2017

The Union Territory Goods & Services Tax Act, 2017 was enacted by Parliament in the

Sixty-eighth Year of the Republic of India.

This Act extends to the Union territories of the Andaman and Nicobar Islands,

Lakshadweep, Dadra and Nagar Haveli, Daman and Diu, Chandigarh and other territory.

Section

Section

3

The Administrator may,

4

The Administrator may,

by order, authorise any

by notification, appoint

officer to appoint officers

Commissioners and such

of Union territory tax

other class of officers as

below

the

rank

of

may be required for

Assistant Commissioner

carrying out the purposes

of Union territory tax for

of this Act and such

the administration of this

officers shall be deemed

Act.

to be proper officers for

such purposes as may be

specified therein

Issued vide reference number PD & PP : GST : 135/2017.

Goods & Services Tax

Educational Series

Issue 136

Levy & Collection of Tax

Section 7 of UTGST Act, 2017 deals with the levy and collection of tax under UTGST Act, 2017.

(1) Subject to the provisions of sub-section (2), there

shall be levied a tax called the Union territory tax on all

intra-State supplies of goods or services or both, except

on the supply of alcoholic liquor for human

consumption, on the value determined under section 15

of the Central Goods and Services Tax Act and at such

rates, not exceeding twenty per cent., as may be notified

by the Central Government on the recommendations of

the Council and collected in such manner as may be

prescribed and shall be paid by the taxable person.

(2) The Union territory tax on the supply of petroleum

crude, high speed diesel, motor spirit (commonly known

as petrol), natural gas and aviation turbine fuel shall be

levied with effect from such date as may be notified by the

Central Government on the recommendations of the

Council.

(3)

The

Central

Government

may,

on

the

recommendations of the Council, by notification, specify

categories of supply of goods or services or both, the tax

on which shall be paid on reverse charge basis by the

recipient of such goods or services or both and all the

provisions of this Act shall apply to such recipient as if he

is the person liable for paying the tax in relation to the

supply of such goods or services or both.

Issued vide reference nu

mber PD & PP : GST : 136/2017.

Goods & Services Tax

Educational Series

Issue 137

Levy & Collection of Tax

Section 7 of UTGST Act, 2017 deals with the levy and collection of tax under UTGST Act, 2017.

(4) The Union territory tax in respect of the

supply of taxable goods or services or both by a

supplier, who is not registered, to a registered

person shall be paid by such person on reverse

charge basis as the recipient and all the

provisions of this Act shall apply to such

recipient as if he is the person liable for paying

the tax in relation to the supply of such goods or

services or both.

(5) The Central Government may, on the

recommendations of the Council, by

notification, specify categories of services the

tax on intra-State supplies of which shall be

paid by the electronic commerce operator if

such services are supplied through it, and 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

Where an electronic commerce operator does not have a physical presence in the taxable

territory, any person representing such electronic commerce operator for any purpose in the

taxable territory shall be liable to pay tax.

Also, where an electronic commerce operator does not have a physical presence in the taxable

territory and also he does not have a representative in the said territory, such electronic

commerce operator shall appoint a person in the taxable territory for the purpose of paying tax

and such person shall be liable to pay tax.

Issued vide reference number PD & PP : GST : 137/2017.

Goods & Services Tax

Educational Series

Issue 138

Power to Grant Exemption from Tax

Section 8 of UTGST Act, 2017 lays down the Power to grant exemption from tax which reads as under:

•Where the Central Government is satisfied that it is necessary in

the public interest so to do, it may, on the recommendations of the

Council, by notification, exempt generally either absolutely or

subject to such conditions as may be specified therein, goods or

8(1) services or both of any specified description from the whole or any

part of the tax leviable thereon with effect from such date as may

be specified in such notification.

•Where the Central Government is satisfied that it is necessary

in the public interest so to do, it may, on the recommendations

of the Council, by special order in each case, under

8(2) circumstances of an exceptional nature to be stated in such

order, exempt from payment of tax any goods or services or

both on which tax is leviable

•The Central Government may, if it considers necessary or expedient

so to do for the purpose of clarifying the scope or applicability of any

notification issued under sub-section (1) or order issued under sub-

section (2), insert an explanation in such notification or order, as the

8(3) case may be, by notification at any time within one year of issue of the

notification under sub-section (1) or order under sub-section (2), and

every such explanation shall have effect as if it had always been the

part of the first such notification or order, as the case may be

•Any notification issued by the Central Government under sub-

section (1) of section 11 or order issued under sub-section (2)

of the said section of the Central Goods and Services Tax Act

8(4) shall be deemed to be a notification or, as the case may be, an

order issued under this Act

For the purposes of this section, where an exemption in respect of any goods or services or both from

the whole or part of the tax leviable thereon has been granted absolutely, the registered person

supplying such goods or services or both shall not collect the tax, in excess of the effective rate, on such

supply of goods or services or both.

Issued vide reference number PD & PP : GST : 138/2017.

Goods & Services Tax

Educational Series

Issue 139

Payment of Tax

Section 9 of the Union Territory Goods & Services Tax Act, 2017 lays down the provisions

relating to Payment of Tax.

The amount of input tax credit available in the electronic credit ledger of the registered person

on account of:

(a) integrated tax shall first

be utilised towards payment

(b) the Union territory tax

of integrated tax and the

shall first be utilised

amount remaining, if any,

towards

payment

of

(c) the Union territory

may be utilised towards the

Union territory tax and

tax shall not be utilised

payment of central tax and

the amount remaining, if

towards payment of

State tax, or as the case may

any, may be utilised

central tax.

be, Union territory tax, in

towards

payment

of

that order

integrated tax

Issued vide reference number PD & PP : GST : 139/2017.

Goods & Services Tax

Educational Series

Issue 140

SECTION 10, 11 of Union Territory

Goods & Services Tax Act, 2017

Section 10 with regard to transfer of Input Tax Credit states that for utilisation of input tax

credit of Union territory tax for payment of tax dues under the Integrated Goods and Services

Tax Act in accordance with the provisions of sub-section (5) of section 49 of the Central Goods

and Services Tax Act, as reflected in the valid return furnished under sub-section (1) of section

39 of the Central Goods and Services Tax Act, the amount collected as Union territory tax shall

stand reduced by an amount equal to such credit so utilised and the Central Government shall

transfer an amount equal to the amount so reduced from the Union territory tax account to the

integrated tax account in such manner and within such time as may be prescribed.

Section 11 cover provisions related to officers required to assist proper officers which are as

under

(1) All officers of

Police, Railways,

(2) The Government

Customs, and those

may, by notification,

officers engaged in

empower and

the collection of land

require any other

revenue, including

class of officers to

village officers, and

assist the proper

officers of central tax

officers in the

and officers of the

implementation of

State tax shall assist

this Act when called

the proper officers in

upon to do so by the

the implementation

Commissioner

of this Act

Issued vide reference nu

mber PD & PP : GST : 140/2017.

Goods & Services Tax

Educational Series

Issue 141

Demands & Recovery under UTGST Act, 2017

Section 12 of the Union Territory Goods & Services Tax Act, 2017 deals with the provisions of

Tax wrongfully collected and paid to the Central Government or Union Territory Government.

The provisions state that:

(1) A registered person who has paid the

central tax and the Union territory tax on

a transaction considered by him to be an

intra-State

supply,

but

which

is

subsequently held to be an inter-State

supply, shall be refunded the amount of

taxes so paid in such manner and subject

to such conditions as may be prescribed

(2) A registered person who has

paid integrated tax on a transaction

considered by him to be an inter-

State

supply,

but

which

is

subsequently held to be an intra-

State supply, shall not be required to

pay any interest on the amount of

the central tax and the Union

territory tax payable

Issued vide reference number PD & PP : GST : 141/2017.

Goods & Services Tax

Educational Series

Issue 142

Recovery of Tax under Union Territory

Goods & Services Act, 2017

Section 13 of Union Territory Goods & Services Tax Act, 2017 covers the provisions of

Recovery of Tax. The following are the provisions:

(1) Where any amount of tax, interest or penalty is payable by a person to

the Government under any of the provisions of this Act or the rules made

thereunder and which remains unpaid, the proper officer of central tax,

during the course of recovery of said tax arrears, may recover the amount

from the said person as if it were an arrear of central tax and credit the

amount so recovered to the account of the Government under the

appropriate head of Union terrirtory tax

(2) Where the amount recovered under sub-section (1) is less than the

amount due to the Government under this Act and the Central Goods

and Services Tax Act, the amount to be credited to the account of the

Government shall be in proportion to the amount due as Union

territory tax and central tax

Issued vide reference number PD & PP : GST : 142/2017.

Goods & Services Tax

Educational Series

Issue 143

Advance Ruling

Section 14 of the Union Territory Goods & Services Tax Act, 2017 contains the provisions for

Advance Ruling. In this Chapter, unless the context otherwise requires, the following terms

will be defined as:

‘ Advance ruling’ means a decision provided by

Authority or Appellate Authority to an applicant

on matters or on questions specified in section

97(2) or section 100(1) of the CGST Act, in

relation to the supply of goods or services or both

being undertaken or proposed to be undertaken

by the applicant

‘ Appellate Authority’’ means the Appellate

Authority for Advance Ruling constituted under

section 16

‘ Applicant’ means any person registered or

desirous of obtaining registration under this Act

‘ Application’ means an application made to the

Authority under sub-section (1) of section 97 of

the Central Goods and Services Tax Act

‘ Authority’’ means the Authority for Advance

Ruling, constituted under section 15

Issued vide reference number PD & PP : GST : 143/2017.

Goods & Services Tax

Educational Series

Issue 144

Constitution of Authority for Advance Ruling under

UTGST Act, 2017

Section 15 - Constitution

of Authority for Advance

Ruling

The Central Government

shall, by notification,

The qualifications, the

constitute an Authority to

method of appointment of

be known as the (name of

The Authority shall

the members and the

the Union territory)

consist of :

terms and conditions of

Authority for Advance

their service shall be such

Ruling

as may be prescribed

One member from

One member from amongst

amongst the officers of

the officers of Union

central tax; and

territory tax, to be appointed

by the Central Government

The Central Government may, on the recommendations of the Council, notify any Authority

located in any State or any other Union territory to act as the Authority for the purposes of this

Act.

Issued vide reference nu

mber PD & PP : GST : 144/2017.

Goods & Services Tax

Educational Series

Issue 145

Constitution of Appellate Authority for Advance Ruling

Section 16 of the Union Territory Goods & Services Tax Act, 2017 deals with Constitution of

Authority for Advance Ruling. The provisions read as:

Central Government shall, by notification,

constitute an Appellate Authority to be known

as the (name of the Union territory) Appellate

Authority for Advance Ruling for Goods and

Services Tax for hearing appeals against the

advance ruling pronounced by the Advance

Ruling Authority

CONSTITUTION OF

APPELLATE

AUTHORITY FOR

ADVANCE RULING

Chief Commissioner of

central tax as designated

by the Board; and

The Appellate

Authority shall

consist of

Commissioner of Union

territory tax having

jurisdiction over the

applicant

Central Government may, on the recommendations of the Council, notify any Appellate

Authority located in any State or any other Union territory to act as the Appellate Authority for

the purposes of this Act.

Issued vide reference nu

mber PD & PP : GST : 145/2017.

Goods & Services Tax

Educational Series

Issue 146

Transitional Provisions

Section 17 of Union Territory Goods & Services Tax Act, 2017 deals with Migration of Existing

Tax Payers.

•On and from the appointed day, every person registered under any of the

existing laws and having a valid Permanent Account Number shall be

issued a certificate of registration on provisional basis, subject to such

conditions and in such form and manner as may be prescribed, which

(1) unless replaced by a final certificate of registration under sub-section (2),

shall be liable to be cancelled if the conditions so prescribed are not

complied with

•The final certificate of registration shall be granted in such form and

(2) manner and subject to such conditions as may be prescribed

•The certificate of registration issued to a person under sub-section (1) shall

be deemed to have not been issued if the said registration is cancelled in

pursuance of an application filed by such person that he was not liable to

(3) registration under section 22 or section 24 of the Central Goods and

Services Tax Act

Issued vide reference number PD & PP : GST : 146/2017.

Goods & Services Tax

Educational Series

Issue 147

Power to Make Rules

Section 22 of Union Territory Goods & Services Tax Act, 2017 lays down the Powers to Make

Rules under the Act. The provisions of the Section lay down:

(1)

(2)

(3)

(4)

•The Central

•Without

•The power

•Any

rules

Government

prejudice to

to

make

made under

may, on the

the

rules

sub-section

recommend

generality of

conferred

(1)

may

ations of the

the

by

this

provide that

Council, by

provisions

section shall

a

notification,

of

sub-

include the

contraventi

make rules

section (1),

power

to

on thereof

for carrying

the Central

give

shall

be

out

the

Government

retrospectiv

liable to a

provisions

may make

e effect to

penalty not

of this Act

rules for all

the rules or

exceeding

or any of the

any of them

ten

matters

from a date

thousand

which

by

not earlier

rupees

this Act are

than

the

required to

date

on

be, or may

which

the

be,

provisions

prescribed

of this Act

or in respect

come

into

of

which

force

provisions

are to be or

may

be

made

by

rules

Issued vide reference nu

mber PD & PP : GST : 147/2017.

Goods & Services Tax

Educational Series

Issue 148

Notification No. 8/2017 – Integrated Tax

Notification No. 8/2017 – Integrated Tax was issued on 14th September, 2017 wherein,

in exercise of the powers conferred by section 20 of the Integrated Goods and Services

Tax Act, 2017 (13 of 2017) read with sub-section (2) of section 23 of the Central Goods

and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the

“said Act”), the Central Government, on the recommendations of the Council, hereby

specifies the persons making inter-State taxable supplies of handicraft goods as the

category of persons exempted from obtaining registration under the aforesaid Act.

Aggregate value of such supplies, to be computed on all India basis, should not exceed an

amount of twenty lakh rupees in a financial year. The aggregate value of such supplies,

to be computed on all India basis, does not exceed an amount of ten lakh rupees in case

of Special Category States, other than the State of Jammu and Kashmir.

The persons making inter-State taxable supplies mentioned in the preceding paragraph

shall be required to:

a. obtain a Permanent Account Number; and

b. generate an e-way bill in accordance with the provisions of rule 138 of the

Central Goods and Services Tax Rules, 2017.

Explanation - For the purposes of this notification, the expression “handicraft goods”

means the products mentioned in the Notification Table along with the Harmonized

System of Nomenclature (HSN) code, when made by the craftsmen predominantly by

hand even though some machinery may also be used in the process.

Issued vide reference number PD &PP: GST : 148/2017.

Goods & Services Tax

Educational Series

Issue 149

Notification No. 9/2017 – Integrated Tax

Notification Number 9/2017- Integrated Goods & Services Tax dated October 13, 2017

was released wherein, in exercise of the powers conferred by section 20 of the

Integrated Goods and Services Tax Act, 2017 read with sub-section (2) of section 23 of

the Central Goods and Services Tax Act, 2017, the Central Government, on the

recommendations of the Council, hereby makes the following amendments in the

notification of the Government of India in the Ministry of Finance (Department of

Revenue), No.8/2017- Integrated Tax, dated September 14th, 2017. In the said

notification, the following changes were made:

A. For serial number 9 and the entries relating thereto, the following shall be substituted,

namely:-

9.

Textile

(handloom

products),

Including 50, 58, 61,

Handmade shawls, stoles and

62, 63”

scarves

B. After serial number 28 and the entries relating thereto, the following shall be inserted,

namely:-

29

Chain stitch

Any Chapter

30

Crewel, namda, gabba

Any Chapter

31

Wicker willow products

Any Chapter

32

Toran

Any Chapter

33

Articles made of shola

Any Chapter

Issued vide reference number PD & PP : GST : 149/2017.

Goods & Services Tax

Educational Series

Issue 150

Notification No. 47/2017 – Central Tax (Rate)

Notification Number 47/2017- Central Tax (Rate) dated November 14, 2017 came into effect from

November 15, 2017 wherein, in exercise of the powers conferred by Section 11(1) of the Central Goods

and Services Tax Act, 2017, the Central Government, on being satisfied that it is necessary in the public

interest so to do, on the recommendations of the Council, made the following further amendments in

the Notification No.12/2017- Central Tax (Rate), dated the 28th June, 2017, namely:-

In the said notification, in the Table, -

(a) against serial number 11A, for the entry in column (3), the following entry shall be substituted

namely: - “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.”

(b) the serial number 11B and the entries relating thereto, shall be omitted;

(c) after serial number 79 and the entries relating thereto, the following serial number and entries

shall be inserted namely: -

(1)

(2)

(3)

(4)

(5)

79A

Heading 9996

Services by way of Nil

Nil

admission

to

a

protected

monument

so

declared under the

Ancient Monuments

and Archaeological

Sites and Remains

Act 1958 (24 of

1958) or any of the

State Acts, for the

time being in force

Issued vide reference nu

mber PD & PP : GST : 150/2017.

Goods & Services Tax

Educational Series

Issue 151

Notification No. 43/2017 – Central Tax (Rate)

Notification Number 43/2017- Central Tax (Rate) dated November 14, 2017 seeks to

amend Notification No.4/2017- Central Tax (Rate), dated the 28th June, 2017. The

Notification came into effect from November 15, 2017. The same notifies that in

exercise of the powers conferred by sub-section (3) of section 9 of the Central Goods

and Services Tax Act, 2017, the Central Government, on the recommendations of the

Council, hereby makes the following amendments in Notification No. 4/2017 namely:-

In the said notification, in the TABLE, - (i) after Sl. No. 4 and the entries relating thereto,

the following serial number and the entries shall be inserted, namely: -

4A

5201

Raw cotton

Agriculturist

Any registered

person

The principal notification No.4/2017-Central Tax (Rate), dated the 28th June, 2017,

published in the Gazette of India, and last amended by Notification No. 36/2017-Central

Tax (Rate) dated 13th October, 2017 published in the Gazette of India.

Issued vide reference number PD & PP : GST : 151/2017.

Goods & Services Tax

Educational Series

Issue 152

Notification No.44/2017- Central Tax (Rate)

Notification Number 44/2017- Central Tax (Rate) dated November 14,2017 was

released which stands applicable with effect from November 15,2017 whereby, in

exercise of the powers conferred by clause (ii) of the proviso to sub-section (3) of

section 54 of the Central Goods and Services Tax Act, 2017, the Central Government, on

the recommendations of the Council, hereby makes the following further amendments

in the notification No.5/2017-Central Tax (Rate) of the Government of India in the

Ministry of Finance , dated the 28th June, 2017, namely:-

In the said notification, in the TABLE, for Sl. No. 6A and the entries relating thereto, the

following entries shall be substituted, namely:

6A

5608

Knotted netting of twine, cordage or rope;

made up fishing nets and other made up

nets, of textile materials

6B

5801

Corduroy fabrics

6C

5806

Narrow woven fabrics, other than goods of

heading 5807; narrow fabrics consisting of

warp without weft assembled by means of

an adhesive (bolducs)

The principal notification No.5/2017-Central Tax (Rate), dated the 28th June, 2017

was published in the Gazette of India and last amended vide notification No. 29/2017-

Central Tax(Rate) dated 22nd September, 2017.

Issued vide reference number PD & PP : GST : 152/2017.

Goods & Services Tax

Educational Series

Issue 153

Circular No. 27/01/2018-GST

Circular No. 27/01/2018 was released on January 4,2018 which contains clarifications regarding levy

of GST on accommodation services, betting and gambling in casinos, horse racing, admission to cinema,

homestays, printing, legal services etc. Representations were received from trade and industry for

clarification on certain issues regarding levy of GST on supply of services. The FAQs are as under:

S.No. Questions/Clarifications Sought

Clarifications

1. 1.

1. Will GST be charged on actual tariff or 1. Declared or published tariff is relevant only for

declared tariff for accommodation determination of the tax rate slab. GST will be

services?

payable on the actual amount charged (transaction

2. What will be GST rate if cost goes up value).

(more than declared tariff) owing to 2. GST rate would be determined according to

additional bed?

declared tariff for the room, and GST at the rate so

3. Where will the declared tariff be determined would be levied on the entire amount

published?

charged from the customer. For example, if the

4. Same room may have different tariff declared tariff is Rs. 7000 per unit per day but the

at different times depending on amount charged from the customer on account of

season or flow of tourists as per extra bed is Rs. 8000, GST shall be charged at 18%

dynamic pricing. Which rate to be on Rs. 8000.

used then?

3. Tariff declared anywhere, say on the websites

5. If tariff changes between booking and through which business is being procured or printed

actual usage, which rate will be used? on tariff card or displayed at the reception will be

6. GST at what rate would be levied if an the declared tariff. In case different tariff is declared

upgrade is provided to the customer at different places, highest of such declared tariffs

at a lower rate?

shall be the declared tariff for the purpose of levy of

GST.

4. In case different tariff is declared for different

seasons or periods of the year, the tariff declared for

the season in which the service of accommodation is

provided shall apply.

5. Declared tariff at the time of supply would apply.

6. If declared tariff of the accommodation provided

by way of upgrade is Rs 10000, but amount charged

is Rs 7000, then GST would be levied @ 28% on Rs

7000/-.

Source: http://cbec.gov.in/resources//htdocs-cbec/gst/circularno-27-gst.pdf

Issued vide reference number PD & PP : GST : 153/2017.

Goods & Services Tax

Educational Series

Issue 154

Circular No. 27/01/2018-GST

Circular No. 27/01/2018 was released on January 4,2018 which contains clarifications

regarding levy of GST on accommodation services, betting and gambling in casinos, horse

racing, admission to cinema, homestays, printing, legal services etc. The FAQs are as under:

S.No. Questions/Clarifications Sought

Clarifications

2.

Vide notification No. 11/2017-Central Tax Relevant part of entry 34 of the said CGST

(Rate) dated the 28th June 2017 entry 34, GST notification reads as under: “Heading 9996

on the service of admission into casino under (Recreational, cultural and sporting services) –

Heading 9996 (Recreational, cultural and (iii) Services by way of admission to

sporting services) has been levied @ 28%. entertainment events or access to amusement

Since the Value of supply rule has not facilities including exhibition of cinematograph

specified the method of determining taxable films, theme parks, water parks, joy rides,

amount in casino, Casino Operators have been merry-go rounds, go carting, casinos, race-

informed to collect 28% GST on gross amount course, ballet, any sporting event such as Indian

collected as admission charge or entry fee. Premier

League

and

the

like

14%

The method of levy adopted needs to be (iv)…

clarified.

(v) Gambling - 14 %” As is evident from the

notification, “entry to casinos” and “gambling”

are two different services, and GST is leviable at

28% on both these services (14% CGST and

14% SGST) on the value determined as per

section 15 of the CGST Act. Thus, GST @ 28%

would apply on entry to casinos as well as on

betting/ gambling services being provided by

casinos on the transaction value of betting, i.e.

the total bet value, in addition to GST levy on

any other services being GST provided by the

casinos (such as services by way of supply of

food/ drinks etc. at the casinos). Betting, in pre-

GST regime, was subjected to betting tax on full

bet value.

Source: http://cbec.gov.in/resources//htdocs-cbec/gst/circularno-27-gst.pdf

Issued vide reference number PD & PP : GST : 154/2017.

Goods & Services Tax

Educational Series

Issue 155

Circular No. 27/01/2018-GST

Circular No. 27/01/2018 was released on January 4,2018 which contains clarifications regarding levy

of GST on accommodation services, betting and gambling in casinos, horse racing, admission to cinema,

homestays, printing, legal services etc. The FAQs are as under:

S.No. Questions/Clarifications Sought

Clarifications

3.

The provision in rate schedule notification No. 11/2017-

GST would be leviable on the entire bet value i.e.

Central Tax (Rate) dated the 28th June 2017 does not total of face value of any or all bets paid into the

clearly state the tax base to levy GST on horse racing. This totalisator or placed with licensed book makers, as

may be clarified.

the case may be. Illustration: If entire bet value is

Rs. 100, GST leviable will be Rs. 28/-

4.

1. Whether for the purpose of entries at Sl. Nos. 34(ii) 1. Price/ declared tariff does not include taxes.

[admission to cinema] and 7(ii)(vi)(viii) [Accommodation 2. Room rent in hospitals is exempt.

in hotels, inns, etc.], of notification 11/2017-CT (Rate)

dated 28th June 2017, price/ declared tariff includes the 3. Any service by way of serving of food or drinks

tax component or not?

including by a bakery qualifies under section 10 (1)

(b) of CGST Act and hence GST rate of composition

2. Whether rent on rooms provided to in-patients is levy for the same would be 5%.

exempted? If liable to tax, please mention the entry of CGST

Notification 11/2017- CT(Rate)

3. What will be the rate of tax for bakery items supplied

where eating place is attached - manufacturer for the

purpose of composition levy?

5.

Whether homestays providing accommodation through an Notification No. 17/2017-Central Tax (Rate), has

Electronic Commerce Operator(ECO), below threshold been issued making ECOs liable for payment of GST

limit are exempt from taking registration?

in case of accommodation services provided in

hotels, inns guest houses or other commercial

places meant for residential or lodging purposes

provided by a person having turnover below Rs. 20

lakhs (Rs. 10 lakhs in special category states) per

annum and thus not required to take registration

under section 22(1) of CGST Act. 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.

Source: http://cbec.gov.in/resources//htdocs-cbec/gst/circularno-27-gst.pdf

Issued vide reference number PD & PP : GST : 155/2017.

Goods & Services Tax

Educational Series

Issue 156

Circular No. 27/01/2018-GST

Circular No. 28/01/2018 was released on January 4,2018 which contains clarifications regarding levy

of GST on accommodation services, betting and gambling in casinos, horse racing, admission to cinema,

homestays, printing, legal services etc. The FAQs are as under:

S.No. Questions/Clarifications Sought

Clarifications

6.

To clarify whether supply in the situations listed The supply of books shall be treated as

below shall be treated as a supply of goods or supply of goods as long as the supplier

supply of service:

owns the books and has the legal rights to

sell those books on his own account.

1. The books are printed/ published/ sold on

procuring copyright from the author or his legal

heir. [e.g. White Tiger Procures copyright from

Ruskin Bond]

2. The books are printed/ published/ sold against a

specific brand name. [e.g. Manorama Year Book]

3. The books are printed/ published/ sold on paying

copyright fees to a foreign publisher for publishing

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

(NY)]

7.

Whether legal services other than representational Yes. In case of legal services including

services provided by an individual advocate or a representational services provided by an

senior advocate to a business entity are liable for advocate including a senior advocate to a

GST under reverse charge mechanism?

business entity, GST is required to be paid

by the recipient of the service under

reverse charge mechanism, i.e. the business

entity

Source: http://cbec.gov.in/resources//htdocs-cbec/gst/circularno-27-gst.pdf

Issued vide reference nu

mber PD & PP : GST : 156/2017.

Goods & Services Tax

Educational Series

Issue 157

Chapter IX - Miscellaneous

Section 21 of the Union Territory Goods & Services Tax Act, 2017 provides a list of the provisions of the Central

Goods and Services Tax Act, which shall, mutatis mutandis, apply to Union Territory Goods & Services Tax Act,

2017 subject to the following modifications and alterations which the Central Government considers necessary

and desirable to adapt those provisions to the circumstances, namely:—

•references to ‘ this Act’’ shall be deemed to be references to ‘ the Union Territory Goods

(i)

and Services Tax Act, 2017’’

•references to ‘ Commissioner’ shall be deemed to be references to ‘ Commissioner’ of

(ii)

Union territory tax as defined in clause (2) of section 2 of this Act

•references to ‘ officers of central tax’ shall be deemed to be references to ‘ officers of

(iii)

Union territory tax’’

•references to ‘ central tax’’ shall be deemed to be references to ‘ Union territory tax’’ and

(iv)

vice versa

•references to ‘ Commissioner of State tax or Commissioner of Union territory tax’’ shall be

(v)

deemed to be references to ‘ Commissioner of central tax’’

•references to ‘ State Goods and Services Tax Act or Union Territory Goods and Services

(vi)

Tax Act’’ shall be deemed to be references to ‘ Central Goods and Services Tax Act"

•references to ‘ State tax or Union territory tax’’ shall be deemed to be references to

(vii)

‘ central tax’’

Issued vide reference number PD & PP : GST : 157/2017.

Goods & Services Tax

Educational Series

Issue 158

Chapter IX - Miscellaneous

Section 21 of the Union Territory Goods & Services Tax Act, 2017 provides a list of the

provisions of the Central Goods and Services Tax Act, which shall, mutatis mutandis, apply to

Union Territory Goods & Services Tax Act, 2017 subject to modifications and alterations which

the Central Government considers necessary and desirable to adapt those provisions to the

circumstances. The provisions included, relate to:

(i)scope of supply;

(iv) time and value of supply;

(vii) tax invoice, credit and debit

(ii) composition levy;

notes;

(v) input tax credit;

(iii) composite supply and mixed

(viii) accounts and records;

supply;

(vi) registration;

(ix) returns;

(xvi) inspection, search, seizure and

(x) payment of tax;

(xiii) assessment;

arrest;

(xi) tax deduction at source;

(xiv) refunds;

(xvii) demands and recovery;

(xii) collection of tax at source;

(xv) audit;

(xviii) liability to pay in certain

cases;

(xxv) settlement of funds;

(xix) advance ruling;

(xxii) offences and penalties;

(xxvi) transitional provisions;

(xx) appeals and revision;

(xxiii) job work;

(xxvii) miscellaneous provisions

including the provisions relating to

(xxi) presumption as to documents;

(xxiv) electronic commerce;

the imposition of interest and

penalty

Issued vide reference number PD & PP : GST : 158/2017.

Goods & Services Tax

Educational Series

Issue 159

Powers under UTGST Act, 2017

>

Section 23 lays

> Section 24 establishes that:

down

that

the

Every rule made by the Central

Board

may,

by

Government, every regulation made by

notification, make

the Board and every notification issued

regulations

by the Central Government under this

consistent with this

Act, shall be laid, as soon as may be,

Act and the rules

after it is made or issued, before each

made thereunder to

House of Parliament, while it is in

session, for a total period of thirty days

carry

out

the

which may be comprised in one session

purposes of this Act

or in two or more successive sessions,

and if, before the expiry of the session

immediately following the session or the

successive sessions aforesaid, both

Houses

agree

in

making

any

modification in the rule or regulation or

in the notification, as the case may be, or

both Houses agree that the rule or

regulation or the notification should not

be made, the rule or regulation or

notification, as the case may be, shall

thereafter have effect only in such

modified form or be of no effect, as the

case may be; so, however, that any such

modification or annulment shall be

without prejudice to the validity of

anything previously done under that

rule or regulation or notification, as the

case may be.

Issued vide reference number PD & PP : GST : 159/2017.

Goods & Services Tax

Educational Series

Issue 160

Recommendations made on GST R

ate changes on services

by the 25th GST Council Meeting

The Union Finance Minister Shri Arun Jaitley Chaired the 25th Meeting of the GST Council in New Delhi on January

18, 2018. The Council has recommended many relief measures regarding GST rates on goods and services

covering many sectors and commodities. The Council has also recommended issuance of certain clarifications on

issues relating to GST rates and taxability of certain goods and services.

(A) Exemptions / Changes in GST Rates / ITC Eligibility Criteria

To extend GST exemption on Viability Gap Funding (VGF) for a period of 3 years from the date of commencement

1. of RCS airport from the present period of one year.

2. To exempt supply of services by way of providing information under RTI Act, 2005 from GST.

To exempt legal services provided to Government, Local Authority, Governmental Authority and Government

3. Entity.

4. To reduce GST rate on construction of metro and monorail projects (construction, erection, commissioning or

installation of original works) from 18% to 12%.

5. To levy GST on the small housekeeping service providers, notified under section 9 (5) of GST Act, who provide

housekeeping service through ECO, @ 5% without ITC.

6. To reduce GST rate on tailoring service from 18% to 5%.

To reduce GST rate on services by way of admission to theme parks, water parks, joy rides, merry-go-rounds, go-

7. carting and ballet, from 28% to 18%.

To grant following exemptions:

(i) To exempt service by way of transportation of goods from India to a place outside India by air;

8. (ii) To exempt service by way of transportation of goods from India to a place outside India by sea and provide

that value of such service may be excluded from the value of exempted services for the purpose of reversal of ITC.

The above exemptions may be granted with a sunset clause upto 30th September, 2018.

To exempt services provided by the Naval Insurance Group Fund by way of Life Insurance to personnel of Coast

9. Guard under the Group Insurance Scheme of the Central Government retrospectively w.e.f. 1.7.2017.

To exempt IGST payable under section 5(1) of the IGST Act, 2017 on supply of services covered by item 5(c) of

Schedule II of the CGST Act, 2017 to the extent of aggregate of the duties and taxes leviable under section 3(7) of

10. the Customs Tariff Act, 1975 read with sections 5 & 7 of IGST Act, 2017 on part of consideration declared under

section 14(1) of the Customs Act, 1962 towards royalty and license fee includible in transaction value as specified

under Rule 10 (c) of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007.

Source: http://pib.nic.in/newsite/PrintRelease.aspx?relid=175726

Issued vide reference number PD & PP : GST : 160/2017.

Goods & Services Tax

Educational Series

Issue 161

Recommendations made on GST Rate changes on services

by the 25th GST Council Meeting

The Union Finance Minister Shri Arun Jaitley Chaired the 25th Meeting of the GST Council in New Delhi on January 18, 2018.

The Council has recommended many relief measures regarding GST rates on goods and services covering many sectors

and commodities. The Council has also recommended issuance of certain clarifications on issues relating to GST rates and

taxability of certain goods and services.

(A) Exemptions / Changes in GST Rates / ITC Eligibility Criteria

11. To allow ITC of input services in the same line of business at the GST rate of 5% in case of tour operator service.

To reduce GST rate (from 18% to 12%) on the Works Contract Services (WCS) provided by sub-contractor to the main

contractor providing WCS to Central Government, State Government, Union territory, a local authority, a Governmental

12. Authority or a Government Entity, which attract GST of 12%. Likewise, WCS attracting 5% GST, their sub-contractor

would also be liable @ 5%.

To enhance the exemption limit of Rs 5000/- per month per member to Rs 7500/- in respect of services provided by

13. Resident Welfare Association (unincorporated or nonprofit entity) to its members against their individual contribution.

To reduce GST rate on transportation of petroleum crude and petroleum products (MS, HSD, ATF) from 18% to 5%

14. without ITC and 12% with ITC.

To exempt dollar denominated services provided by financial intermediaries located in IFSC SEZ, which have been

15. deemed to be outside India under the various regulations by RBI, IRDAI, SEBI or any financial regulatory authority, to a

person outside India.

To exempt (a) services by government or local authority to governmental authority or government entity, by way of

lease of land, and (b) supply of land or undivided share of land by way of lease or sub lease where such supply is a part

16. of specified composite supply of construction of flats etc. and to carry out suitable amendment in the provision

relating to valuation of construction service involving transfer of land or undivided share of land, so as to ensure that

buyers pay the same effective rate of GST on property built on leasehold and freehold land.

17. To amend entry 3 of notification No. 12/2017-CT(R) so as to exempt pure services provided to Govt. entity.

18. To expand pure services exemption under S. No. 3 of 12/2017-C.T. (Rate) so as to include composite supply involving

predominantly supply of services i.e. upto 25% of supply of goods.

19. To reduce job work services rate for manufacture of leather goods (Chapter 42) and footwear (Chapter 64) to 5%.

To exempt services relating to admission to, or conduct of examination provided to all educational institutions, as

defined in the notification.

20. To exempt services by educational institution by way of conduct of entrance examination against consideration in the

form of entrance fee.

Source: http://pib.nic.in/newsite/PrintRelease.aspx?relid=175726

Issued vide reference number PD & PP : GST : 161/2017.

Goods & Services Tax

Educational Series

Issue 162

Recommendations made on GST Rate changes on services

by the 25th GST Council Meeting

(A) Exemptions / Changes in GST Rates / ITC Eligibility Criteria

21. To enhance the limit to Rs 2 lakh against Sl. No. 36 of exemption notification No. 12/2017-C.T. (Rate) which exempts services of life insurance business provided under life micro insurance product approved by IRDAI upto maximum amount of cover of Rs. 50,000.

To exempt reinsurance services in respect of insurance schemes exempted under S.Nos. 35 and 36 of notification No. 12/2017-CT

22. (Rate).[It is expected that the premium amount charged from the government/insured in respect of future insurance services is reduced.]

To increase threshold limit for exemption under entry No. 80 of Notification No. 12/2017-C.T. (Rate) for all the theatrical

23. performances like Music, Dance, Drama, Orchestra, Folk or Classical Arts and all other such activities in any Indian language in theatre GST from Rs.250 to 500 per person and to also extend the threshold exemption to services by way of admission to a planetarium.

24. To reduce GST on Common Effluent Treatment Plants services of treatment of effluents, from 18% to 12%.

25. To exempt services by way of fumigation in a warehouse of agricultural produce.

26. To reduce GST to 12% in respect of mining or exploration services of petroleum crude and natural gas and for drilling services in

respect of the said goods.

27. To exempt subscription of online educational journals/periodicals by educational institutions who provide degree recognized by any

law from GST.

28. To exempt the service provided by way of renting of transport vehicles provided to a person providing services of transportation of

students, faculty and staff to an educational institution providing education upto higher secondary or equivalent.

To extend the concessional rate of GST on houses constructed/ acquired under the Credit Linked Subsidy Scheme for Economically

Weaker Section (EWS) / Lower Income Group (LIG) / Middle Income Group-1 (MlG-1) / Middle Income Group-2 (MlG-2) under the

29. Housing for All (Urban) Mission/Pradhan MantriAwasYojana (Urban) and low-cost houses up to a carpet area of 60 square metres

per house in a housing project which has been given infrastructure status, as proposed by Ministry of Housing & Urban Affairs, under

the same concessional rate.

To tax time charter services at GST rate of 5%, that is at the same rate as applicable to voyage charter or bare boat charter, with the

30. same conditions.

To levy concessional GST @12% on the services provided by way of construction, erection, commissioning, installation, completion,

31. fitting out, repair, maintenance, renovation, or alteration of building used for providing (for instance, centralized cooking or distributing) mid-day meal scheme by an entity registered under section 12AA of IT Act.

32. To exempt services provided by and to FédérationInternationale de Football Association (FIFA) and its subsidiaries directly or indirectly related to any of the events under FIFA U-20 World Cup in case the said event is hosted by India.

33. To exempt government’s share of profit petroleum from GST and to clarify that cost petroleum is not taxable per se.

Source: http://pib.nic.in/newsite/PrintRelease.aspx?relid=175726

Issued vide reference number PD & PP : GST : 162/2017.

Goods & Services Tax

Educational Series

Issue 163

Recommendations made on GST Rate changes on services

by the 25th GST Council Meeting

The Union Finance Minister Shri Arun Jaitley Chaired the 25th Meeting of the GST Council in New Delhi on January

18,2018. The Council has recommended many relief measures regarding GST rates on goods and services covering

many sectors and commodities. The Council has also recommended issuance of certain clarifications on issues

relating to GST rates and taxability of certain goods and services.

(B) Rationalization of certain exemption entries

To provide inCGST rules that value of exempt supply under sub-section (2) of section 17, shall not include the value of

1.

deposits, loans or advances on which interest or discount is earned (This will not apply to a banking company and a

financial institution including a non-banking financial company engaged in providing services by way of extending

deposits, loans or advances).

To defer the liability to pay GST in case of TDR against consideration in the form of construction service and on

2.

construction service against consideration in the form of TDR to the time when the possession or right in the property is

transferred to the land owner by entering into a conveyance deed or similar instrument (eg. allotment letter). No

deferment in point of taxation in respect of cash component.

To tax renting of immovable property by government or local authority to a registered person under reverse Charge while

3.

renting of immovable property by government or local authority to un-registered person shall continue under forward

charge

To define insurance agent in the reverse charge notification to have the same meaning as assigned to it in clause (10) of

4.

section 2 of the Insurance Act, 1938, so that corporate agents get excluded from reverse charge.

5.

To insert a provision in GST Rules under section 15 of GST Act that the value of lottery shall be 100/112 or 100/128 of the

price of lottery ticket notified in the Gazette (the same is currently notified in the rate notification).

6.

To add, in the GST rate schedule for goods at 28%, actionable claim in the form of chance to win in betting and gambling

including horse racing.

To insert in GST rules under section 15 of GST Act,-

7.

Notwithstanding anything contained in this chapter, value of supply of Betting & Gambling shall be 100 % of the face value of

the bet or the amount paid into the totalizator.

Source: http://pib.nic.in/newsite/PrintRelease.aspx?relid=175726

Issued vide reference number PD & PP : GST : 163/2017.

Goods & Services Tax

Educational Series

Issue 164

Power to Issue Directions & Removal of Difficulties

under UTGST Act, 2017

•The Commissioner may, if he considers it necessary or

expedient so to do for the purpose of uniformity in the

Section 25

implementation of this Act, issue such orders,

instructions or directions to the Union territory tax

Power to Issue officers as he may deem fit, and thereupon all such

Instructions or officers and all other persons employed in the

implementation of this Act shall observe and follow such

Directions

orders, instructions or directions.

•(1) If any difficulty arises in giving effect to any

provision of this Act, the Central Government may, on

the recommendations of the Council, by a general or a

special order published in the Official Gazette, make

Section 26

such provisions not inconsistent with the provisions of

this Act or the rules or regulations made thereunder, as

may be necessary or expedient for the purpose of

Removal of

removing the said difficulty: Provided that no such

Difficulties

order shall be made after the expiry of a period of three

years from the date of commencement of this Act

•(2) Every order made under this section shall be laid, as

soon as may be, after it is made, before each House of

Parliament

Issued vide reference number PD & PP : GST : 164/2017.

Goods & Services Tax

Educational Series

Issue 165

Recommendations made on GST Rate changes on services

by the 25th GST Council Meeting

The Union Finance Minister Shri Arun Jaitley Chaired the 25th Meeting of the GST Council in New Delhi on January

18, 2018. The Council has recommended many relief measures regarding GST rates on goods and services

covering many sectors and commodities. The Council has also recommended issuance of certain clarifications on

issues relating to GST rates and taxability of certain goods and services.

(C) Clarifications

1.

To clarify that exemption of Rs 1000/- per day or equivalent (declared tariff) is available in respect of

accommodation service in hostels.

2.

To clarify that fee paid by litigants in the Consumer Disputes Commissions and any penalty imposed by

these Commissions, will not attract GST.

3.

To clarify that elephant/ camel joy rides are not classified as transportation services and attract GST @ 18%

with threshold exemption to small services providers.

4.

To clarify that leasing or rental service, with or without operator, of goods, attracts same GST as supply of

like goods involving transfer of title in the said goods. Therefore, the GST rate for the rental services of self-

Propelled Access Equipment (Boom. Scissors/Telehandlers) is 28%.

5.

To clarify that,-

1)

Services provided by senior doctors/consultants/technicians hired by the hospitals, whether

employees or not, are healthcare services which is exempt.

2)

Hospitals also provide healthcare services. The entire amount charged by them from the patients

including the retention money and the fee/payments made to the doctors etc., is towards the

healthcare services provided by the hospitals to the patients and is exempt.

3)

Food supplied to the in-patients as advised by the doctor/nutritionists is a part of composite supply

of healthcare and not separately taxable. Other supplies of food by a hospital to patients (not

admitted) or their attendants or visitors are taxable.

6.

To clarify that services by way of,-

1.

admission to entertainment events or access to amusement facilities including casinos, race-course

2. ancillary services provided by casinos and race-course in relation to such admission.

3. services given by race-course by way of totalisator (if given through some other person or charged

separately as fees for using totalisator for purpose of betting, are taxable at 28%. Services given by

race-course by way of license to bookmaker which is not a service by way of betting and gambling,

is taxable at 18%.

Source: http://pib.nic.in/newsite/PrintRelease.aspx?relid=175726

Issued vide reference number PD & PP : GST : 165/2017.

Goods & Services Tax

Educational Series

Issue 166

Recommendations for Changes in GST/IGST Rate and

Clarifications in Respect of GST Rate on Certain Goods - As per

discussions held in the 25thGST Council Meeting

The Union Finance Minister Shri Arun Jaitley Chaired the 25th Meeting of the GST Council in New Delhi. The

Council has recommended certain in GST/IGST rate and clarifications in respect of GST rate on Goods specified

below as per discussions in the 25th GST Council Meeting. These decisions of the GST Council are being

communicated for general information, and will be given effect to through Gazette notifications / circulars which

only shall have the force of law.

A. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 28% TO 18%:

S. No.

Chapter/Heading/Sub-

Description

heading/Tariff item

1.

87

Old and used motor vehicles [medium and large cars and

SUVs] on the margin of the supplier, subject to the condition

that no input tax credit of central excise duty/value added tax

or GST paid on such vehicles has been availed by him.

2.

8702

Buses, for use in public transport, which exclusively run on

bio-fuels.

B. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 28% TO 12%:

S. No.

Chapter/Heading/Sub-

Description

heading/Tariff item

1.

87

All types of old and used motors vehicles [other than medium

and large cars and SUVs] on the margin of the supplier of

subject to the conditions that no input tax credit of central

excise duty /value added tax or GST paid on such vehicles has

been availed by him.

Source: http://pib.nic.in/newsite/PrintRelease.aspx?relid=175728

Issued vide reference nu

mber PD & PP : GST : 166/2017.

Goods & Services Tax

Educational Series

Issue 167

Recommendations for Changes in GST/IGST Rate and Clarifications in

Respect of GST Rate on Certain Goods -As per discussions held in the

25thGST Council Meeting

The Council has recommended certain in GST/IGST rate and clarifications in respect of GST rate on Goods specified below as

per discussions in the 25th GST Council Meeting. These decisions of the GST Council are being communicated for general

information, and will be given effect to through Gazette notifications / circulars which only shall have the force of law.

C. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 18% TO 12%:

S.

Chapter/Heading/Sub-

Description

No.

heading/Tariff item

1.

1704

Sugar boiled confectionary

2.

2201

Drinking water packed in 20 litters bottles

3.

2809

Fertilizer grade Phosphoric acid

4.

29 or 38

Bio-diesel

The following Bio-pesticides,

S. No.

Name of the bio pesticide

1

Bacillus thuringiensis var. israelensis

2

Bacillus thuringiensis var. kurstaki

3

Bacillus thuringiensis var. galleriae

4

Bacillus sphaericus

5

Trichoderma viride

5

38

6

Trichoderma harzianum

7

Pseudomonas fluoresens

8

Beauveriabassiana

9

NPV of Helicoverpaarmigera

10

NPV of Spodopteralitura

11

Neem based pesticides

12

Cymbopogan

6.

4418

Bamboo wood building joinery

7.

8424

Drip irrigation system including laterals, sprinklers

8.

8424

Mechanical Sprayer

Source: http://pib.nic.in/newsite/PrintRelease.aspx?relid=175728

Issued vide reference nu

mber PD & PP : GST : 167/2017.

Goods & Services Tax

Educational Series

Issue 168

Recommendations for Changes in GST/IGST Rate and Clarifications in

Respect of GST Rate on Certain Goods -As per discussions held in the

25thGST Council Meeting

Union Finance Minister Shri Arun Jaitley Chaired the 25th Meeting of the GST Council in New Delhi. The Council

has recommended certain in GST/IGST rate and clarifications in respect of GST rate on Goods specified below

as per discussions in the 25th GST Council Meeting. These decisions of the GST Council are being communicated

for general information, and will be given effect to through Gazette notifications / circulars which only shall

have the force of law.

D. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 18% TO 5%:

S.

Chapter/Heading/Sub

No.

-heading/Tariff item

Description

1.

13

Tamarind Kernel Powder

2.

1404/3305

Mehendi paste in cones

LPG supplied for supply to household domestic consumers by

3.

2711

private LPG distributors

Scientific and technical instruments, apparatus, equipment,

4.

88 or any other chapter

accessories, parts, components, spares, tools, mock ups and

modules, raw material and consumables required for launch

vehicles and satellites and payloads

E. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 12% TO 5%:

S.

Chapter/Heading/Sub-

Description

heading/Tariff item

No.

1.

4601, 4602

Articles of straw, of esparto or of other plaiting materials;

basketware and wickerwork

Source: http://pib.nic.in/newsite/PrintRelease.aspx?relid=175728

Issued vide reference nu

mber PD & PP : GST : 168/2017.

Goods & Services Tax

Educational Series

Issue 169

Recommendations for Changes in GST/IGST Rate and Clarifications in

Respect of GST Rate on Certain Goods -As per discussions held in the

25thGST Council Meeting

The Council has recommended certain in GST/IGST rate and clarifications in respect of GST rate on Goods

specified below as per discussions in the 25th GST Council Meeting. These decisions of the GST Council are being

communicated for general information, and will be given effect to through Gazette notifications / circulars which

only shall have the force of law.

F. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR INCREASE FROM 12% TO 18%:

Chapter/Heading/Sub-

S.No.

Description

heading/Tariff item

1.

5601 22 00

Cigarette filter rods

G. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 12% TO 5% WITH NO

REFUND OF UNUTILISED INPUT TAX CREDIT:

S. No.

Chapter/Heading/Sub-

Description

heading/Tariff item

1.

5801 37 20

Velvet fabric

H. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 3% TO 0.25%:

Chapter/Heading/Sub-

S. No.

Description

heading/Tariff item

1.

7102

Diamonds and precious stones

I. NIL GST RATE:

i.

Vibhuti

ii.

Parts and accessories for manufacture of hearing aids.

iii.

De-oiled rice bran

Source: http://pib.nic.in/newsite/PrintRelease.aspx?relid=175728

Issued vide reference number PD & PP : GST : 169/2017.

Goods & Services Tax

Educational Series

Issue 170

Recommendations for Changes in GST/IGST Rate and Clarifications in Respect of

GST Rate on Certain Goods -As per discussions held in the

25thGST Council Meeting

The Council has recommended certain in GST/IGST rate and clarifications in respect of GST rate on Goods

specified below as per discussions in the 25th GST Council Meeting. These decisions of the GST Council are being

communicated for general information, and will be given effect to through Gazette notifications / circulars which

only shall have the force of law.

J. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR INCREASE FROM NIL TO 5%:

S. No.

Chapter/Heading/Sub-heading/Tariff item

Description

1.

2302

Rice bran (other than de-oiled rice bran)

K. CHANGES IN COMPENSATION CESS ON CERTAIN GOODS:

Chapter/

Heading/

Present

Compensation

S.

Sub-

Description

Compensation Cess

Cess Rate

No

heading/

Rate

Recommended

Tariff item

Motor vehicles [falling under heading 8702, as it was in

excise regime] cleared as ambulances, duly fitted with

1.

all fitments, furniture and accessories necessary for an

8702

15%

Nil

ambulance from the factory manufacturing such

vehicles.10-13 seater buses and ambulances, subject to

specified conditions.

Old and used motor vehicles [medium and large cars

2.

and SUVs], on the margin of the supplier, subject to the

87

condition that no input tax credit of central excise

Applicable rate

Nil

duty/value added tax or GST paid on such vehicles has

been availed by him.

All types of old and used motors vehicles [other than

3.

medium and large cars and SUVs] on the margin of the

87

supplier of subject to the conditions that no input tax

Applicable rate

Nil

credit of central excise duty /value added tax or GST

paid on such vehicles has been availed by him.

Source: http://pib.nic.in/newsite/PrintRelease.aspx?relid=175728

Issued vide reference number PD & PP : GST : 170/2017.

Goods & Services Tax

Educational Series

Issue 171

Recommendations for Changes in GST/IGST Rate and Clarifications in Respect of

GST Rate on Certain Goods -As per discussions held in the

25thGST Council Meeting

L. CHANGES IN IGST RATE RECOMMENDED ON CERTAIN GOODS:

Chapter/ Heading/

S.

Present

IGST Rate

Sub-heading/Tariff

Description

No.

IGST Rate

Recommended

item

Satellites and payloads and Scientific and technical

instruments, apparatus, equipment, accessories,

88or any other chapter

1.

parts, components, spares, tools, mock ups and

18%

5%

modules, raw material and consumables required

for launch vehicles and satellites and payloads

M. MODIFICATION IN DEFINITION/ CLARIFICATION IN RESPECT OF CHANGES IN GST/IGST RATES ON GOODS:

Chapter/

S.

Heading/

Present GST

Description

Modification/clarification Recommended

No.

Sub-heading/

Rate

Tariff item

The GST to apply only on the net quantity of Poly

Poly

Butylene

Butylene Feed Stock or Liquefied Petroleum Gases

Feed Stock &

18%

1.

27

retained for the manufacture of Poly Iso Butylene

Liquefied

Petroleum Gas

or Propylene or di-butyl para cresol respectively,

subject to specified conditions.

Only the goods falling under chapter 86 attract 5%

GST rate with no refund of unutilised ITC. Goods

Rail

coach

Applicable GST

2. Any chapter

falling in any other chapter will attract applicable

industry

rate

GST rate under the respective chapters, even if

supplied to the Indian railways.

5% + Rs. 400

Coal rejects fall under heading 2701 and attract 5%

PMT

3.

2701

Coal rejects

GST and Rs. 400 PMT Compensation Cess.

Compensation

Cess

Source: http://pib.nic.in/newsite/PrintRelease.aspx?relid=175728

Issued vide reference number PD & PP : GST : 171/2017.

Goods & Services Tax

Educational Series

Issue 172

Central Goods & Services Tax Rules, 2017

The rules relating to Goods & Services Tax may be called the Central Goods and Services Tax

Rules, 2017.

They shall come into force with effect from 22nd June, 2017.

Chapter I is the Preliminary Chapter of Central Goods and Services Tax Rules, 2017.

Following definitions are included in Chapter I of the same

In these rules, unless the context otherwise requires:

"ACT" means the Central Goods and

Services Tax Act, 2017

“FORM” means a Form appended to

these rules

“SECTION” means a section of the

Act

“Special Economic Zone” shall have

the same meaning as assigned to it

in clause (za) of section 2 of the

Special Economic Zones Act, 2005

Words and expressions used herein but not defined and defined in the Act shall have the

meanings respectively assigned to them in the Act.

Issued vide reference number PD & PP : GST : 172/2017.

Goods & Services Tax

Educational Series

Issue 173

Central Goods & Services Tax Rules, 2017

CHAPTER III of Central Goods & Services Tax Act, 2017 deals with the registration provisions.

Rule 8 contains the provisions for Application for registration.

8(1): Every person other than:

a person

a person supplying online

a non-

required to

a person

information & database

resident

deduct tax

required to

access or retrieval

taxable

at source

collect tax at

services from place

person

under

source under

outside India to non-

section 51

section 52

taxable online recipient

who is liable to be registered under section 25(1) and every person seeking registration under

section 25(3) (hereafter in this Chapter referred to as “the applicant”) shall, before applying for

registration, declare his:

Permanent Account

Number

mobile number

e-mail address

State or Union

territory

in Part A of Form GST REG-01 on the common portal, either directly or through a Facilitation

Centre notified by the Commissioner.

A person having a unit(s) in a Special Economic Zone or being a Special Economic Zone

developer shall make a separate application for registration as a business vertical distinct from

his other units located outside the Special Economic Zone. Every person being an Input Service

Distributor shall make a separate application for registration as such Input Service Distributor.

Issued vide reference number PD & PP : GST : 173/2017.

Goods & Services Tax

Educational Series

Isssue 174

Central Goods & Services Tax Rules, 2017

CHAPTER III of Central Goods & Services Tax Act, 2017 deals with the registration provisions.

Rule 8 contains the provisions for Application for registration.

Rule 8(2): It lays down the verification of details entered for registration:

Permanent Account Number shall be validated online by

the common portal from the database maintained by the

Central Board of Direct Taxes

Mobile number declared shall be verified through a one-

time password sent to the said mobile number

E-mail address declared shall be verified through a

separate one-time password sent to the said e-mail

address

Rule 8(3) lays down that on successful verification of the Permanent Account Number, mobile

number and email address, a temporary reference number shall be generated and

communicated to the applicant on the said mobile number and e-mail address.

Issued vide reference number PD & PP : GST : 174/2017.

Goods & Services Tax

Educational Series

Issue 175

Central Goods & Services Tax Rules, 2017

CHAPTER III of Central Goods & Services Tax Act, 2017 deals with the registration provisions.

Rule 8 contains the provisions for Application for registration.

•Using the reference number generated, the applicant

shall electronically submit an application in Part B

Rule

of FORM GST REG-01, duly signed or verified

through electronic verification code, along with the

documents specified in the said Form at the

common portal, either directly or through a

8(4)

Facilitation Centre notified by the Commissioner

Rule •On receipt of an application, an acknowledgement

shall be issued electronically to the applicant in

FORM GST REG-02

8(5)

•A person applying for registration as a casual taxable

Rule person shall be given a temporary reference number

by the common portal for making advance deposit of

tax in accordance with the provisions of section 27

and the acknowledgement under sub-rule (5) shall

8(6) be issued electronically only after the said deposit

Issued vide reference number PD & PP : GST : 175/2017.

Goods & Services Tax

Educational Series

Issue 176

Central Goods & Services Tax Rules, 2017

CHAPTER III of Central Goods & Services Tax Act, 2017 deals with the registration provisions. Rule 9

mandates the rules for verification of registration application and approval, summarized as below:

The application shall be forwarded for examination alongwith the

accompanying documents and if the same are found to be in order,

approve the grant of registration to the applicant within a period of

three working days from the date of submission of the application

Where the application is found to be deficient or any

clarification are sought, issue a notice to the applicant

electronically in FORM GST REG-03 within a period of three

working days from the date of submission of the application

Applicant shall furnish such clarification or documents

electronically, in FORM GST REG-04, within a period of seven

working days from the date of the receipt of such notice

Where the proper officer is satisfied with the clarification, he

may approve grant of registration to the applicant within a

period of seven working days from the date of the receipt of

such clarification or information or documents

Where no reply is furnished by the applicant in response to

the notice issued reject such application and inform the

applicant electronically in FORM GST REG-05

If the proper officer fails to take any action:

(a) within a period of three working days from the date of submission of the application; or

(b) within a period of seven working days from the date of the receipt of the clarification application

for grant of registration shall be deemed to have been approved.

Issued vide reference number PD & PP : GST : 176/2017.

Goods & Services Tax

Educational Series

Issue 177

Composition Levy under Goods & Services Tax

The rates under Composition levy were modified vide Notification No. 03/2018- CT dated

23.01.2018.

Rule 7 of the Central Goods & Services Tax Rules, 2017 was thereby amended to incorporate

the notified changes.

Rule 7: Rate of tax of the composition levy: The category of registered persons, eligible for

composition levy under section 10 and the provisions of this Chapter, specified in column (2) of

the Table below shall pay tax under section 10 at the rate specified in column (3) of the said

Table:-

S. No.

Category of Registered Persons

Rate of Tax

(1)

(2)

(3)

1.

Manufacturers, other than manufacturers of such half per cent. of the

goods as may be notified by the Government

turnover in the State or

Union territory

2.

Suppliers making supplies referred to in clause (b) of two and a half per cent. of

paragraph 6 of Schedule II

the turnover in the State

or Union territory

3.

Any other supplier eligible for composition levy half per cent. of the

under section 10 and the provisions of this Chapter

turnover

of

taxable

supplies of goods in the

State or Union territory

Issued vide reference number PD & PP : GST : 177/2017.

Goods & Services Tax

Educational Series

Issue 178

Central Goods & Services Tax Rules, 2017

CHAPTER III of Central Goods & Services Tax Act, 2017 deals with the registration provisions. Rule 10

deals with rules for Issue of Registration Certificate, as below:

Where the application for grant of registration has been approved under rule 9, a certificate of

registration in FORM GST REG-06 showing the principal place of business and additional place or

places of business shall be made available to the applicant on the common portal.

A Goods and Services Tax Identification Number shall be assigned subject to the following characters,

namely:-

two characters for the

State code

ten characters for the

Permanent Account Number or

the Tax Deduction and

Collection Account Number

two characters for the

entity code

one checksum character

The registration shall be effective from the date on which the person becomes liable to registration

where the application for registration has been submitted within a period of thirty days from such date.

Every certificate of registration shall be [duly signed or verified through electronic verification code] by

the proper officer under the Act.

Where the registration has been granted, the applicant shall be communicated the registration number,

and the certificate of registration, duly signed or verified through electronic verification code, shall be

made available to him on the common portal, within a period of three days after the expiry of the period

specified in sub-rule (5) of rule 9.

Issued vide reference number PD & PP : GST : 178/2017.

Goods & Services Tax

Educational Series

Issue 179

Central Goods & Services Tax Rules, 2017

CHAPTER III of Central Goods & Services Tax Act, 2017 deals with the registration provisions. Rule 11

lays down the rules in case of separate registration for multiple business verticals within a State or

a Union territory.

(1)Any person having multiple business verticals within a State or a Union territory, requiring a

separate registration for any of its business verticals shall be granted separate registration in respect of

each of the verticals subject to the following conditions, namely:-

•such person has more than one business vertical as defined in clause (18)

of section 2

a.

•the business vertical of a taxable person shall not be granted registration

to pay tax under section 10 if any one of the other business verticals of the

b.

same person is paying tax under section 9

•all separately registered business verticals of such person shall pay tax

under the Act on supply of goods or services or both made to another

registered business vertical of such person and issue a tax invoice for such

c.

supply

Any business vertical of a registered person that has been granted a separate registration becomes

ineligible to pay tax under section 10, all other business verticals of the said person shall become

ineligible to pay tax under the said section.

A registered person eligible to obtain separate registration for business verticals may submit a separate

application in FORM GST REG-01 in respect of each such vertical.

Issued vide reference number PD & PP : GST : 179/2017.

Goods & Services Tax

Educational Series

Issue 180

Central Goods & Services Tax Rules, 2017

CHAPTER III of Central Goods & Services Tax Act, 2017 deals with the registration provisions.

Rule 12 deals with grant of registration to persons required to deduct tax at source or to collect

tax at source. The procedure is as under:

Any person required to deduct tax in accordance with the

provisions of section 51 or a person required to collect tax at

source in accordance with the provisions of section 52 shall

electronically submit an application, duly signed or verified

through electronic verification code, in FORM GST REG-07

for the grant of registration through the common portal,

either directly or through a Facilitation Centre notified by the

Commissioner

The proper officer may grant registration after due verification

and issue a certificate of registration in FORM GST REG-06

within a period of three working days from the date of

submission of the application

Where, upon an enquiry or pursuant to any other proceeding

under the Act, the proper officer is satisfied that a person to

whom a certificate of registration in FORM GST REG-06 has

been issued is no longer liable to deduct tax at source under

section 51 or collect tax at source under section 52, the said

officer may cancel the registration issued under sub-rule (2)

and such cancellation shall be communicated to the said person

electronically in FORM GST REG-08

The proper officer shall follow the procedure as provided in rule 22 for the cancellation of

registration.

Issued vide reference number PD & PP : GST : 180/2017.

Goods & Services Tax

Educational Series

Issue 181

Central Goods & Services Tax Rules, 2017

CHAPTER III of Central Goods & Services Tax Act, 2017 deals with the registration provisions.

Rule 13 deals with Grant of registration to non-resident taxable person, as under:

A non-resident taxable person shall electronically submit an application, along with a self-attested

copy of his valid passport, for registration, duly signed or verified through electronic verification

code, in FORM GST REG-09, at least five days prior to the commencement of business at the

common portal either directly or through a Facilitation Centre notified by the Commissioner

In the case of a business entity incorporated or

established outside India, the application for

A person applying for registration

registration shall be submitted along with its

as a non-resident taxable person

tax identification number or unique number on

shall be given a temporary

the basis of which the entity is identified by the

reference number by the common

Government of that country or its Permanent

portal for making an advance

Account Number, if available

deposit of tax in accordance with

the provisions of section 27 and

the acknowledgement under sub-

rule (5) of rule 8 shall be issued

electronically only after the said

deposit in his electronic cash

The provisions of rule 9

ledger

and rule 10 relating to

the verification and the

grant of

The application for registration

registration shall,

made by a non-resident taxable

mutatis mutandis, apply

person shall be [duly signed or

to an application

verified through electronic

submitted under this

verification code] by his

rule

authorised signatory who shall

be a person resident in India

having a valid Permanent

Account Number.

Issued vide reference number PD & PP: GST : 181/2017.

Goods & Services Tax

Educational Series

Issue 182

Central Goods & Services Tax Rules, 2017

Rule 14 of Central Goods & Services Tax Rules, 2017 mandates the grant of registration to a

person supplying online information and database access or retrieval services from a place

outside India to a non-taxable online recipient. Rule 15 deals with extension in period of

operation by casual taxable person and non-resident taxable person.

RULE 14

RULE 15

Any person supplying online

information and database access or

Where a registered casual taxable

retrieval services from a place

person or a non-resident taxable

person intends to extend the

outside India to a non-taxable

period of registration indicated in

online recipient shall electronically

his application of registration, an

submit

an

application

for

application in FORM GST REG-11

registration, duly signed or verified

shall be submitted electronically

through electronic verification code,

through the common portal

in FORM GST REG-10

The applicant shall be granted

The application under sub-

registration, in FORM GST REG-06,

rule

(1)

shall

be

subject to such conditions and

acknowledged

only

on

restrictions and by such officer as

payment of the amount

may be notified by the Central

specified in sub-section (2) of

Government

on

the

section 27

recommendations of the Council

Issued vide reference number PD & PP : GST : 182/2017.

Goods & Services Tax

Educational Series

Issue 183

Central Goods & Services Tax Rules, 2017

Rule 16 of CGST Rules,2017 contained in Chapter III – Registration Rules suggests procedure

for Suo Moto Registration.

•Where, pursuant to any survey, enquiry, inspection, search or any other

proceedings under the Act, the proper officer finds that a person liable to

(1)

registration under the Act has failed to apply for such registration, such officer

may register the said person on a temporary basis and issue an order in FORM

GST REG12

•The registration granted under sub-rule (1) shall be effective from the date of such

order granting registration

(2)

•Every person to whom a temporary registration has been granted shall, within a

period of ninety days from the date of the grant of such registration, submit an

application for registration in the form and manner provided in rule 8 or rule 12

•Where the said person has filed an appeal against the grant of temporary

(3)

registration, in such case, the application for registration shall be submitted

within a period of thirty days from the date of the issuance of the order upholding

the liability to registration by the Appellate Authority

•The provisions of rule 9 and rule 10 relating to verification and the issue of the

(4)

certificate of registration shall, mutatis mutandis, apply to an application

submitted under sub-rule (3)

•Goods and Services Tax Identification Number assigned, pursuant to the

verification under sub-rule (4), shall be effective from the date of the order

(5)

granting registration under sub-rule (1)

Issued vide reference number PD & PP : GST : 183/2017.

Goods & Services Tax

Educational Series

Issue 184

Central Goods & Services Tax Rules, 2017

Rule 17 deals with Assignment of Unique Identity Number to certain special entities.

Every person required to be granted a Unique Identity Number

in accordance with the provisions of sub-section (9) of section 25

may submit an application electronically in FORM GST REG-13,

duly signed or verified through electronic verification code, in

the manner specified in rule 8 at the common portal, either

directly or through a Facilitation Centre notified by the

Commissioner, which shall be applicable to India.

The proper officer may, upon submission of an

application in FORM GST REG-13 or after filling up the

said form or after receiving a recommendation from the

Ministry of External Affairs, Government of India, assign

a Unique Identity Number to the said person and issue a

certificate in FORM GST REG-06 within a period of three

working days from the date of the submission of the

application.

Rule 18 states Display of registration certificate and Goods and Services Tax

Identification Number on the name board:

Every registered person shall

display

his

certificate

of

registration in a prominent

location at his principal place of

business and at every additional

place or places of business

Every registered person shall

display his Goods and Services Tax

Identification Number on the

name board exhibited at the entry

of his principal place of business

and at every additional place or

places of business.

Issued vide reference number PD & PP : GST : 184/2017.

Goods & Services Tax

Educational Series

Issue 185

Central Goods & Services Tax Rules, 2017

Rule 19 mandates the procedure for Amendment of Registration:

(1) Where there is any change in any of the particulars furnished in the application for registration in FORM GST

REG-01 or FORM GST REG-07 or FORM GST REG-09 or FORM GST REG-10 or for Unique Identity Number in

FORM GST-REG-13, either at the time of obtaining registration or Unique Identity Number or as amended from

time to time, the registered person shall, within a period of fifteen days of such change, submit an application,

duly signed or verified through electronic verification code, electronically in FORM GST REG-14, along with the

documents relating to such change at the common portal, either directly or through a Facilitation Centre notified

by the Commissioner.

(a) Where the change relates to:

(i) legal name of business

(ii) address of the principal place of

business or any additional place(s) of

business

(iii) addition, deletion or retirement of partners

or directors, Karta, Managing Committee, Board

of Trustees, Chief Executive Officer or

equivalent, responsible for the day to day affairs

of the business

which does not warrant cancellation of registration under section 29, the proper officer shall, after due

verification, approve the amendment within a period of fifteen working days from the date of the receipt of the

application in FORM GST REG-14 and issue an order in FORM GST REG-15 electronically and such amendment

shall take effect from the date of the occurrence of the event warranting such amendment

(b) the change relating to sub-clause (i) and sub-clause (iii) of clause (a) in any State or Union territory shall be

applicable for all registrations of the registered person obtained under the provisions of this Chapter on the same

Permanent Account Number

(c) other than those specified in clause (a), the certificate of registration shall stand amended upon submission of

the application in FORM GST REG- 14 on the common portal

(d) where a change in the constitution of any business results in the change of the Permanent Account Number of

a registered person, the said person shall apply for fresh registration in FORM GST REG-01.

Issued vide reference number PD & PP : GST : 185/2017.

Goods & Services Tax

Educational Series

Issue 186

Central Goods & Services Tax Rules, 2017

Rule 19 mandates the procedure for Amendment of Registration:

•Where the proper officer is of the opinion that the amendment

sought is either not warranted or the documents furnished

therewith are incomplete or incorrect, he may, within a period

of fifteen working days from the date of the receipt of the

(2)

application in FORM GST REG-14, serve a notice in FORM GST

REG-03, requiring the registered person to show cause, within

a period of seven working days of the service of the said notice,

as to why the application submitted under sub-rule (1) shall

not be rejected

•The registered person shall furnish a reply to the notice to

show cause, issued under sub-rule (2), in FORM GST REG-04,

(3)

within a period of seven working days from the date of the

service of the said notice

•Where the reply furnished under sub-rule (3) is found to be

not satisfactory or where no reply is furnished in response to

the notice issued under sub-rule (2) within the period

(4)

prescribed in sub-rule (3), the proper officer shall reject the

application submitted under sub-rule (1) and pass an order in

FORM GST REG -05

•If the proper officer fails to take any action:

•(a) within a period of fifteen working days from the date of

submission of the application, or

•(b) within a period of seven working days from the date of

(5)

the receipt of the reply to the notice to show cause under

sub-rule (3), the certificate of registration shall stand

amended to the extent applied for and the amended

certificate shall be made available to the registered person

on the common portal.

Issued vide reference number PD & PP : GST : 186/2017.

Goods & Services Tax

Educational Series

Issue 187

Central Goods & Services Tax Rules, 2017

Rule 20 deals with Cancellation of Registration:

a person to whom a

registration has been

granted under rule 12

A registered person,

other than

to whom a Unique

Identity Number has been

granted under rule 17

details of inputs held in

stock

Rule 20

finished goods held in

stock

shall electronically

submit an application in

inputs contained in semi-

FORM GST REG-16,

finished

including therein

of capital goods held in

stock on the date from

which the cancellation of

registration is sought

liability thereon and

details of payment, if any,

made against such

liability

May submit along with the application, relevant documents in support thereof, at the common

portal within a period of thirty days of the occurrence of the event warranting the

cancellation.

Issued vide reference number PD & PP : GST : 187/2017.

Goods & Services Tax

Educational Series

Issue 188

Central Goods & Services Tax Rules, 2017

Rule 21 deals with Cancellation of Registration in Certain Cases:

The registration granted to a person is liable to be cancelled, if the said person,-

a)

•does not conduct any

business from the declared

place of business

b)

•issues invoice or bill

without supply of goods or

services in violation of the

provisions of this Act, or the

rules made thereunder

c)

•violates the provisions of

section 171 of the Act or the

rules made thereunder

Issued vide reference number PD & PP : GST : 188/2017.

Goods & Services Tax

Educational Series

Issue 189

Central Goods & Services Tax Rules, 2017

Rule 22 provides for Cancellation of Registration

(1)Where the proper officer has reasons to believe that the

(2) The reply to the

registration of a person is liable to be cancelled under section

show cause notice shall

29, he shall issue a notice to such person in FORM GST REG-

be furnished in FORM

17,requiring him to show cause, within a period of seven

REG–18 within the

working days from the date of the service of such notice, as to

period specified

why his registration shall not be cancelled

(3)Where a person who has submitted

(5) The provisions of

an application for cancellation of his

(4) Where the reply

sub-rule (3) shall,

registration is no longer liable to be

furnished is found to

mutatis

mutandis,

registered or his registration is liable

be satisfactory, the

apply to the legal

to be cancelled, the proper officer shall

proper officer shall

heirs of a deceased

issue an order in FORM GST REG-19,

drop the proceedings

proprietor, as if the

within a period of thirty days from

and pass an order in

application had been

the date of application, cancel the

FORM GST REG –20.

submitted by the

registration, with effect from a date to

proprietor himself

be determined by him and notify the

taxable person, directing him to pay

arrears of any tax, interest or penalty

including the amount liable to be paid

Issued vide reference number PD & PP : GST : 189/2017.

Goods & Services Tax

Educational Series

Issue 190

Central Goods & Services Tax Rules, 2017

Rule 23- Revocation of cancellation of registration

Issued vide reference number PD & PP : GST : 190/2017.

Goods & Services Tax

Educational Series

Issue 191

Central Goods & Services Tax Rules, 2017

Rule 27 of the CGST Rules, 2017 deals with Value of supply of goods or services where the

consideration is not wholly in money:

Where the supply of goods or services is for a consideration not wholly in money, the value of

the supply shall be:

(b) if the open market value is not

available, be the sum total of

(a) be the open market value of such consideration in money and any such

supply

further amount in money as is

equivalent to the consideration not in

money, if such amount is known at the

time of supply

RULE 27

(d)if the value is not determinable

(c)if the value of supply is not under clause (a) or clause (b) or clause

determinable under clause (a) or (c), be the sum total of consideration in

clause (b), be the value of supply of money and such further amount in

goods or services or both of like kind money

that

is

equivalent

to

and quality

consideration not in money as

determined by the application of rule

30 or rule 31 in that order

Issued vide reference nu

mber PD & PP : GST : 191/2017.

Goods & Services Tax

Educational Series

Issue 192

Central Goods & Services Tax Rules, 2017

Rule 28 of the CGST Rules, 2017 deals with Value of supply of goods or services or both

between distinct or related persons, other than through an agent:

The value of the supply of goods or services or both between distinct persons as specified in

sub-section (4) and (5) of section 25 or where the supplier and recipient are related, other than

where the supply is made through an agent, shall be:

be the open market value of such

supply

if the open market value is not

available, be the value of supply of

goods or services of like kind and

quality

if the value is not determinable

under clause (a) or (b), be the value

as determined by the application of

rule 30 or rule 31, in that order

Where the goods are intended for further supply as such by the recipient, the value shall, at the

option of the supplier, be an amount equivalent to ninety percent of the price charged for the

supply of goods of like kind and quality by the recipient to his customer not being a related

person.

Where the recipient is eligible for full input tax credit, the value declared in the invoice shall be

deemed to be the open market value of the goods or services.

Issued vide reference number PD & PP : GST : 192/2017.

Goods & Services Tax

Educational Series

Issue 193

Central Goods & Services Tax Rules, 2017

Rule 29 of the CGST Rules, 2017 deals with Value of supply of goods made or received

through an agent.

The value of supply of goods between the principal and his agent shall:

be the open market value of the

goods being supplied, or at the

option of the supplier, be

ninety percent. of the price

charged for the supply of goods

of like kind and quality by the

recipient to his customer not

being a related person, where

the goods are intended for

further supply by the said

recipient

Rule

29

where the value of a supply

is not determinable under

clause (a), the same shall be

determined

by

the

application of rule 30 or

rule 31 in that order

Issued vide reference number PD & PP : GST : 193/2017.

Goods & Services Tax

Educational Series

Issue 194

Central Goods & Services Tax Rules, 2017

RULE 30

RULE 31

Value of supply of goods or

Residual method for

services or both based on cost

determination of value of supply of

goods or services or both

• Where the value of a

• Where the value of

supply of goods or

supply of goods or

services or both is not

services or both cannot

determinable by any of

be determined under

the preceding rules of

rules 27 to 30, the same

this Chapter, the value

shall be determined

shall be one hundred

using reasonable means

and ten percent of the

consistent

with

the

cost of production or

principles

and

the

manufacture or the cost

general provisions of

of acquisition of such

section 15 and the

goods or the cost of

provisions

of

this

provision

of

such

Chapter

services

• Provided that in the case

of supply of services, the

supplier may opt for this

rule, ignoring rule 30.

Issued vide reference number PD & PP : GST : 194/2017.

Goods & Services Tax

Educational Series

Issue 195

Central Goods & Services Tax Rules, 2017

For the purposes of Value of Supply Rules, the following expressions would mean:

" open market value” of a supply of

goods or services or both means the

full value in money, excluding the

integrated tax, central tax, State tax,

Union territory tax and the cess

“supply of goods or services or both of like

payable by a person in a transaction,

kind and quality” means any other supply of

where the supplier and the recipient

goods or services or both made under similar

of the supply are not related and the

circumstances that, in respect of the

price is the sole consideration, to

characteristics, quality, quantity, functional

obtain such supply at the same time

components, materials, and the reputation of

when the supply being valued is made

the goods or services or both first mentioned,

is the same as, or closely or substantially

resembles, that supply of goods or services or

both

Issued vide reference nu

mber PD & PP : GST : 195/2017.

Goods & Services Tax

Educational Series

Issue 196

Central Goods & Services Tax Rules, 2017

Issued vide reference number PD & PP: GST : 196/2017.

Goods & Services Tax

Educational Series

Issue 197

Press Release regarding Policy Changes of

26th GST Council Meeting

Recommendations made during the 26th meeting of the GST Council held in New Delhi on

10th March, 2018:

A. Return filing System

The present system of filing of GSTR 3B and GSTR 1 is extended for another three

months i.e., April to June, 2018 till the new return system is finalized. A new model

was discussed extensively and Group of Ministers on IT has been tasked to finalize

the same.

B. Reverse charge mechanism

The liability to pay tax on reverse charge basis has been deferred till 30.06.2018. In

the meantime, a Group of Ministers will look into the modalities of its implementation

to ensure that no inconvenience is caused to the trade and industry.

C. TDS/TCS

The provisions for deduction of tax at source (TDS) under section 51 of the CGST Act

and collection of tax at source (TCS) under section 52 of the CGST Act shall remain

suspended till 30.06.2018. In the meantime, the modalities of linking State and Central

Governments accounting system with GSTN will be worked out so that seamless

credit is available to the registered traders whose tax is deducted or collected at

source.

D. Grievance Redressal Mechanism

GST implementation Committee (GIC) has been tasked with the work of redressing

the grievances caused to the taxpayers arising out of IT glitches.

Issued vide reference number PD & PP : GST : 197/2017.

Goods & Services Tax

Educational Series

Issue 198

E-way Bill Recommendations

Recommendations of the GST Council held in New Delhi in 26th Meeting for introduction of e-

way bill for inter-State movement of goods across the country from 01st April 2018. For intra-

State movement of goods, e-way bill system will be introduced w.e.f. a date to be announced in

a phased manner but not later than 01st June, 2018.

Key Changes:

•E-way bill is required to be generated only where the value of the consignment exceeds Rs.

50000/-

1.

•For smaller value consignments, no e-way bill is required

•The provisions of Rule 138(7) will be notified from a later date

•Currently, there is no requirement to generate e-way bill where an individual consignment

value is less than Rs. 50,000/-, even if the transporter is carrying goods of more than Rs.

2.

50,000/- in a single conveyance

•Value of exempted goods has been excluded from value of the consignment,for the purpose of

e-way bill generation

3.

•Public conveyance has also been included as a mode of transport and responsibility of

generating e-way bill in case of movement of goods by public transport would be that of the

4.

consignor or consignee

•Railways has been exempted from generation and carrying of e-way subject to that without

production of e-way bill, railways will not deliver the goods to the recipient

5.

• But railways are required to carry invoice or delivery challan etc

Issued vide reference number PD & PP : GST : 198/2017.

Goods & Services Tax

Educational Series

Issue 199

E-way Bill Recommendations

Recommendations of the GST Council held in New Delhi in 26th Meeting for introduction of e-

way bill for inter-State movement of goods across the country from 01st April 2018. For intra-

State movement of goods, e-way bill system will be introduced w.e.f. a date to be announced in

a phased manner but not later than 01st June, 2018.

Key Changes:

6.

• Time period for the recipient to communicate his acceptance or rejection of the

consignment would be the validity period of the concerned e-way bill or 72

hours,whichever is earlier

7.

• In case of movement of goods on account of job-work, the registered job worker can

also generate e-way bill

8.

• Consignor can authorize the transporter, courier agency and e-commerce operator to fill

PART-A of e-way bill on his behalf

9.

• Movement of goods from the place of consignor to the place of transporter upto a

distance of 50 Km [increased from 10 km] does not require filling of PART-B of e-way

bill

• They have to generate PART-A of e-way bill

10.

• Extra validity period has been provided for Over Dimensional Cargo (ODC)

Issued vide reference number PD & PP : GST : 199/2017.

Goods & Services Tax

Educational Series

Issue 200

E-way Bill Recommendations

Recommendations of the GST Council held in New Delhi in 26th Meeting for introduction of e-

way bill for inter-State movement of goods across the country from 01st April 2018. For intra-

State movement of goods, e-way bill system will be introduced w.e.f. a date to be announced in

a phased manner but not later than 01st June, 2018.

Key Changes:

•If the goods cannot be transported within the validity

period of the e-way bill, the transporter may extend

11.

the validity period in case of transhipment or in case

of circumstances of an exceptional nature

•Validity of one day will expire at midnight of the day

immediately following the date of generation of e-way

12.

bill

•Once verified by any tax officer, the same conveyance

will not be subject to a second check in any State or

13.

Union territory, unless and until, specific information

for the same is received

•In case of movement of goods by railways, airways

and waterways, the e-way bill can be generated even

14.

after commencement of movement of goods

•Movement of goods on account of Bill-To-Ship-To

supply will be handled through the capturing of place

15.

of despatch in PART-A of e-way bill

Issued vide reference number PD & PP : GST : 200/2017.

Document Outline

COVER PAGE

1 Goods and Service Tax 25 october

2 Goods and Service Tax 26 october

3 Goods and Service Tax 27 october

4 Goods and Service Tax 30 october

5 Goods and Service Tax 31 october

6 Goods and Service Tax 01 November

7 Goods and Service Tax 02 November

8 Goods and Service Tax 03 November

9 Goods and Service Tax 06 November

10 Goods and Service Tax 07 November

11 Goods and Service Tax 08 November

12 Goods and Service Tax 09 November

13 Goods and Service Tax 10 November

14 Goods and Service Tax 13 November

15 Goods and Service Tax 14 November

16 Goods and Service Tax 15 November

17 Goods and Service Tax 16 November

18 Goods and Service Tax 20 November

19 Goods and Service Tax 21 November

20 Goods and Service Tax 22 November

21 Goods and Service Tax 23 November

22 Goods and Service Tax 24 November

23 Goods and Service Tax 27 November

24 Goods and Service Tax 28 November

25 Goods and Service Tax 29 November

26 Goods and Service Tax 30 November

27 Goods and Service Tax 01 December

28 Goods and Service Tax 04 December

29 Goods and Service Tax 05 December

30 Goods and Service Tax 06 December

31 Goods and Service Tax 07 December

32 Goods and Service Tax 08 December

33 Goods and Service Tax 11 December

34 Goods and Service Tax 12 December

35 Goods and Service Tax 13 December

36 Goods and Service Tax 14 December

37 Goods and Service Tax 15 December

38 Goods and Service Tax 18 December

39 Goods and Service Tax 19 December

40 Goods and Service Tax 20 December

41 Goods and Service Tax 21 December

42 Goods and Service Tax 22 December

43 Goods and Service Tax 26 December

44 Goods and Service Tax 27 December

45 Goods and Service Tax 28 December

46 Goods and Service Tax 29 December

47 Goods and Service Tax 01 January

48 Goods and Service Tax 04 January

49 Goods and Service Tax 05 January

50 Goods and Service Tax 08 January

51 Goods and Service Tax 09 January

52 Goods and Service Tax 10 January

53 Goods and Service Tax 11 January

54 Goods and Service Tax 12 January

55 Goods and Service Tax 15 January

56 Goods and Service Tax 16 January

57 Goods and Service Tax 17 January

58 Goods and Service Tax 18 January

59 Goods and Service Tax 19 January

60 Goods and Service Tax 22 January

61 Goods and Service Tax 23 January

62 Goods and Service Tax 24 January

63 Goods and Service Tax 25 January

64 Goods and Service Tax 29 January

65 Goods and Service Tax 30 January

66 Goods and Service Tax 31 January

67 Goods and Service Tax 01 February

68 Goods and Service Tax 02 February

69 Goods and Service Tax 05 February

70 Goods and Service Tax 06 February

71 Goods and Service Tax 07 February

72 Goods and Service Tax 08 February

73 Goods and Service Tax 09 February

74 Goods and Service Tax 12 February

75 Goods and Service Tax 13 February

76 Goods and Service Tax 15 February

77 Goods and Service Tax 16 February

78 Goods and Service Tax 19 February

79 Goods and Service Tax 20 February

80 Goods and Service Tax 21 February

81 Goods and Service Tax 22 February 1

82 Goods and Service Tax 23 February

83 Goods and Service Tax 26 February

84 Goods and Service Tax 27 February

85 Goods and Service Tax 28 February

86 Goods and Service Tax 01 March

87 Goods and Service Tax 05 March

88 Goods and Service Tax 06 March

89 Goods and Service Tax 07 March

90 Goods and Service Tax 08 March

91 Goods and Service Tax 09 March

92 Goods and Service Tax 12 March

93 Goods and Service Tax 13 March

94 Goods and Service Tax 14 March

95 Goods and Service Tax 15 March

96 Goods and Service Tax 16 March

97 Goods and Service Tax 19 March

98 Goods and Service Tax 20 March

99 Goods and Service Tax 21 March

100 Goods and Service Tax 22 March