GST for Supply Chain Professionals Webinar of IIMM - Hyderabad

Basic
Understanding of
GST Concepts
Supply –
Time of Supply –
Place of Supply –
Value of Supply
What is Supply
Under GST
– Types of Supply
Taxable Person
Under GST & GST
Registration
Invoicing &
Delivery Challans
Under GST &
E-Way Bill
What is Input Tax
Credit in GST &
GST Payment
Mechanism
Reverse Charge
Mechanism (RCM)
GTA & Govt. Services
Import of Services
Purchase / Sales
Returns :
Treatment under
GST
Credit & Debit
Notes under GST
& Commercial
Credit Notes
Job Work
Transactions
Sending the Goods
for Repair & Return
Inter-Office / Inter-
unit Transactions -
Branch Transfer
Third Party
Transactions & Third
Party Payments;
Pure Agent
Transactions
Treatment of Free
of Cost Samples
Under GST
Trade Discounts
Supply of
Promotional Materials
Sales @ Exhibitions
Warehousing
Provisions –
Loss or Theft or
Pilfered Goods –
Treatment under GST
Sale of Secondhand
Goods & Scrap Sales
Sale of Used Capital
Goods

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SN Panigrahi, EssAnnPee Business Solution

GST is known as the Goods and Services Tax. It’s a
comprehensive indirect tax levy on manufacture, sale, and
consumption of goods as well as services at the national
level. It replaced all indirect taxes in India such as the excise duty,
VAT, services tax, etc. and unified as a Single Tax Levy.
The Government of India introduced the GST in 2017 under their
“one nation, one tax” system and the Goods and Service Tax
Act was passed in the Parliament on 29th March 2017 and
came into effect on 1st July 2017.
It is a comprehensive, multi-stage, destination-based tax that is
levied on every value addition.

Multiple Taxes to
Single Unified Tax
System
GST is a Value
Added Tax &
Multipoint Levy Tax
GST is a
Destination based
Tax
GST is a Dual Levy Tax
- Concurrently Levied
by both Center &
State
Seamless Input Tax
Credit – Eliminates
Cascading Effect
Value of Supply
Transaction Value
Place of Supply
To Determine
Nature of Supply
Time of Supply
To Determine
Point of Taxation
Taxable Person –
Registration Under
GST
Supply is the basis
for Levy &
Collection of GST
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Supplier Dealer
Customer
Basic Supply Value = Rs 100
GST @ 5% = Rs 5
Total Invoice Value = Rs 105
Supplier Pays the GST
Collected from Recipient
to the Govt.
Govt.
GST
Rs 5 Paid to
Govt
Inward Inv Value = Rs 105
Less ITC = Rs 5
Total Cost Value = Rs 100
Value Addition = Rs 50
Basic Supply Value=Rs 150
GST @ 5 =Rs 7.5
Total Inv Value =Rs 157.5
GST Paid is
Taken as
Credit
Govt.
GST
Rs 7.5 Paid to
Govt
GST Payable to Govt. = Rs 7.5
Less Credit Taken = Rs 5
Net Tax Payable = Rs 2.5

9
S1
Cotton
Yarn
S2
Fabric S3
Garments
FC
Customer
Basic Supply
Value = Rs 100
GST @ 5 = Rs 5
Total Invoice
Value = Rs 105
Inward Inv Value = Rs 105
Less ITC = Rs 5
GST @ 5 =Rs 7.5
Inward Inv Value = Rs 157.5
Less ITC = Rs 7.5
GST @ 5 =Rs 10.5
Inv Value= Rs 220.5
Less ITC = Rs 0
Total Cost
Value = Rs 220.5
Tax Paid = Rs 7.5
Less ITC = Rs 5
Net Tax Paid = Rs 2.5
GST on VA @5% = Rs 2.5
Net Tax Paid is Tax Paid on Value Addition. Therefore called Value Added Tax
Net Tax Paid = Rs 5 + Net Tax Paid = Rs 2.5 + Net Tax Paid = Rs 3 = Total Tax = 10.5
Tax Paid = Rs 10.5
Less ITC = Rs 7.5
Net Tax Paid = Rs 3
GST on VA @5% = Rs 3
Credit of Tax Paid at Every Stage is Available as Setoff for Payment of Tax at Subsequent Stage
C1
C2
1. GST is a Mutli-Point Taxation – At
Every Point of Supply, GST is Levied.
2. GST is a Value Added TAX
3. Seamless Credit is allowed as long
as the Value Chain Continues with
Furtherance of Business;
4. No Credit is allowed in case No
Furtherance of Business or
Exempted Supply

Indirect taxes can be either origin based or destination based. Origin based tax (also known as
production tax) is levied where goods or services are produced. Destination based tax
(consumption tax) are levied where goods and services are consumed.
GST is a Destination-based or Consumption-based Tax. Hence, the place of consumption will
decide the State that will collect tax. The parody behind destination-based taxation is, the
producing/selling state gets nothing while the consuming states receive complete share of
revenue.
Tax will go to Maharashtra 10

Dual Levy
Central
Levy
Union Territory
Levy
CGST
UT GST
State
Levy SGST
or
According to GST rules which are clear on the matter, IGST has to be shared between the Centre and states
in the ratio of 50:50
11
Central
Levy I GST
Center 50%
State 50%

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SN Panigrahi,
EssAnnPee Business Solution

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SN Panigrahi,

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Supply
All form of Supplies
for a consideration
Section 7(1)(a)
Even Some Specific
Supplies Without
Consideration
Section 7(1)(c) –
Schedule : I
Clarifying Certain
Activities Whether
Goods or Services
Section 7(1)(d)
– Schedule : II
Treated Neither as a
Supply of Goods Nor
a Supply of Services
–
Section 7(2)
Schedule : III
Sec 7 of
CGST Act
In the Course or Furtherance
of Business
Import of Services
for a Consideration
whether or not in
the course or
furtherance of
business - Section
7(1)(b)
➢  All forms of supply of goods and/or services
➢  such as sale, transfer, barter, exchange, license, rental, lease or disposal
➢  made or agreed to be made
➢  for a consideration
➢  by a person
➢  in the course or furtherance of business,
Involves
Goods or Services or Both
Supply
includes

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Supply Includes
Sale
Transfer
Barter
Exchange
Rent
License
Disposal

18
Goods Services Both
or or
Supply
Involves
The taxable event in GST is supply of goods or services or both
The term, “supply” has been
inclusively defined in the Act.
The meaning and scope of
supply under GST can be
understood in terms of following
six parameters :
1. Supply of goods or
services. Supply of
anything other than
goods or services does
not attract GST
2. Supply should be made
for a consideration
3. Supply should be made in
the course or furtherance
of business
by a taxable person
5. Supply should be a
taxable supply
within the taxable
territory

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Types of
Supply
Taxable Supply
Exempted Supply
Zero Rated Supply
Composite / Mixed Supply
Continuous Supply
Inward / Outward Supply
Inter / Intra State Supply
Deemed Supply
B2B & B2C Supply

01 02 03 04 05 06 07 08
It is the
supply of
goods or
services that
does not
attract GST
and allows
no claim on
ITC. Example:
Bread, fruits,
milk & curd
etc.
For a supply to
attract GST, the
supply must be
taxable. Taxable
supply has been
broadly defined
and means any
supply of goods
or services or
both which, is
leviable to tax
under the Act.
Zero Rated
Supply means
a) export of
goods or
services or
both; or
b) supply of
goods or
services or
both to a SEZ
developer or a
SEZ unit.
Composite
Supply: Two or
more goods and
/ or services are
Naturally
Bundled.
Mixed Supply :
two or more
individual
supplies of
goods or
services
Supply that is
repeatedly
provided or on
a periodic basis.
A continuous
supply is only
considered
complete when
the contract
comes to an end
Inward supplies :
any supply
received by your
business
(purchases and
expenses).
Outward
supplies : any
supply made by
your business
(Sales and any
other services
provided)
Inter-State
supplies :
Supplies
within the
State
Intra-State
supplies :
Supplies from
one State to
Another State
Goods sent for
Job work, but
Job work
Conditions Not
Fulfilled or
Goods or
services that
are bought for
business
purposes but
are later used
for private use,
or used as gifts
or samples

Wholly
Exempted
from Tax
Non-Taxable
Supply
Nil Rate of
Supply
Sec 2(47) of CGST Act: “exempt supply” means supply of any goods or services or both which
attracts nil rate of tax or which may be wholly exempt from tax under section 11, or under
section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply;
Supplies declared as
exempt from tax by
issue of a notification.
Tariff Rate is NIL - Listed
in Schedule 1 under GST
rate schedule.
Goods or services on
which GST is not
leviable
Examples : Bread,
Fruits, Milk and Curd
etc.
Example: Grains, salt,
jaggery, cereals,
Accommodation in hotel with
tariff below Rs. 1,000 per day
etc.
Examples : alcohol for
human consumption,
petroleum products,
electricity etc.

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Combination of
Supply
Mixed Supply
(Sec 2(74) of CGST Act)
Composite Supply
(Section 2(30) of CGST Act)
Naturally Bundled ?
& Made in Conjunction with
One Another?
Yes No
Rate Applicable on Principal Supply
(Section 8(a) of CGST Act)
Highest Rate Among All
(Section 8(b) of CGST Act)
SN
Panigrahi
Naturally Bundled and Supplied in Conjunction with each
other
Supply does not Constitute a 'Composite Supply'.
Multiple
Supplies
Single
Price
Examples : Goods are packed / repacked, loaded /
unloaded, staked / re-staked and transported /
transshipped with insurance.
Works Contract; Restaurant Food + Service
Rajdhani train ticket which includes Meal & Insurance.
Example : Gift Box consisting of canned foods, sweets, Ice
Cream, Chocolates, Cakes, Dry Fruits Supplied as a
Combo for Single Price; Gift Pack : Pen + Wallet + Watch;
Free Bucket with Detergent Powder

SN Panigrahi, EssAnnPee Business Solution 24

Location of
Supplier
Place of Supply
CGST SGST
Warangal
Telangana
Hyderabad
Telangana
INTRA-STATE SUPPLY
Customer
Selling Price 1000
CGST @ 9% 90
SGST @ 9% 90
Total Sale
Price
1180
Total tax paid
by Supplier
180
Tax Payable
Example
25

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Location of
Supplier Place of Supply
Bengaluru
In Karnataka
Hyderabad
In Telangana
INTER-STATE SUPPLY
IGST
Selling Price 1,000
IGST @ 18% 180
Total Sale
Price
1,180
Total tax paid
by Supplier
180
Customer
Tax Payable
Example

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SN Panigrahi,

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Se 2(107) of CGST Act : “taxable person” means a person who is Registered or Liable to be Registered
under section 22 or section 24.
Sec 22. (1) of CGST Act : Every supplier shall be liable to be registered under this Act in the State or Union
territory, other than special category States, from where he makes a taxable supply of goods or services or
both, if his aggregate turnover in a financial year exceeds twenty lakh rupees:
Provided that where such person makes taxable supplies of goods or services or both from any of the special
category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten
lakh rupees.
Sec 2(108) of CGST Act : “taxable supply” means a supply of goods or services or both which is leviable to tax
under this Act.
Sec(78) of CGST Act : “non-taxable supply” means a supply of goods or services or both which is not leviable
to tax under this Act or under the Integrated Goods and Services Tax Act.
Sec 24. of CGST Act : Compulsory Registration in certain cases
Special Category States (as mentioned in Art.279A(4)(g) of the Constitution of India) comprise of Arunachal
Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal
Pradesh and Uttarakhand.

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Sec 22. (1) of CGST Act : Every supplier who makes a taxable supply and whose
aggregate turnover in a financial year exceeds twenty lakh rupees need to be
Registered under GST.
Structure of Registration Number
State
Code
PAN
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Entity Code
Blank
Check Digit (Logical Code)
Each taxpayer will be allotted a state wise PAN-based 15-digit Goods and Services Taxpayer
Identification Number (GSTIN)
Various digits in GSTIN will denote the following :
State Code
as defined under the
Indian Census - 2011
Multiple Places of business
Alpha-numeric (1-9 and then A-Z) and
would be assigned depending on the
number of registrations a legal entity
(having the same PAN) has within
one state.
For Future
Use
10 Digit PAN

Aggregate
Turnover
Turnover of All Units Computed On All India Basis having
Same Permanent Account Number (PAN)
Taxable
supplies
Exempt
Supplies
Export
Turnover
Inter-State Supplies
Of Distinct Persons
Includes
Excludes
Value of Inward Supplies on which Tax is Payable by a Person on Reverse Charge Basis
Central Tax, State Tax, Union Territory Tax, Integrated Tax and Compensation Cess
Sec 2(6) of CGST Act : “aggregate turnover” means the aggregate value of all taxable supplies
(excluding the value of inward supplies on which tax is payable by a person on reverse charge basis),
exempt supplies, exports of goods or services or both and inter-State supplies of persons having the
same Permanent Account Number, to be computed on all India basis but excludes central tax, State
tax, Union territory tax, integrated tax and cess;
Aggregate Turnover
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Threshold Limit Crosses Rs 20 Lakhs for
Other than Special Category States
under Sec 22 of CGST Act
Threshold Limit Crosses Rs 10 Lakhs for
Special Category States
Compulsory Registration Irrespective of
Threshold Limit
Exempt from Register in Certain Cases
Sec 23 of CGST Act
When Gross
Turnover
Notification No. 06/2019 – Central Tax 29/01/2019
Prior 01/02/2019 W.e.f 01/02/2019
Threshold Limit Rs 10 L
Arunachal Pradesh
Assam
Jammu & Kashmir
Manipur
Meghalaya
Mizoram
Nagaland
Sikkim
Tripura
Himachal Pradesh
Uttarakhand
Threshold Limit Rs 10 L
Jammu & Kashmir
Manipur
Mizoram
Nagaland
Tripura
The threshold limit for
registration has been increased
from INR 10 lakh to INR 20
lakh in states of
Assam,
Arunachal Pradesh, Himachal
Pradesh, Meghalaya,
Sikkim and
Uttarakhand

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Person Engaged
in Exclusive
Supply of Goods
(Not Services)
Aggregate
Turnover in the
Financial Year
< Rs 40 Lakhs
Except
Persons Required to
take Compulsory
Registration under
Section 24 of CGST
Act
Persons Engaged in
Making Supplies of the
Following Goods:
➢ 1. Ice Cream and other
Edible Ice, whether or
not containing Cocoa
➢ 2. Pan Masala
➢ 3. Tobacco and
Manufactured Tobacco
Substitutes
Persons Engaged in Making
Intra-State supplies in the
States of
➢ Arunachal Pradesh,
➢ Manipur,
➢ Meghalaya,
➢ Mizoram,
➢ Nagaland,
➢ Puducherry,
➢ Sikkim,
➢ Telangana,
➢ Tripura,
➢ Uttarakhand
Persons Exercising Option
under the provisions of sub-
section (3) of section 25
(Voluntary Registration),
or
such registered persons
who intend to continue
with their registration
under the said Act
Exempt from Obtaining
Registration
(Sec 23(2))
w.e.f.
1st
April,
2019

The above limit of Rs 40 Lakhs does not apply to following:
(a) persons required to take compulsory registration under section 24 of the said Act;
(b) persons engaged in making supplies of Demerit goods, namely – Ice cream and other edible ice,
whether or not containing cocoa, Pan Masala and Tobacco and manufactured tobacco substitutes
(c) persons engaged in making intra-State supplies in the States of Arunachal Pradesh, Manipur,
Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, Uttarakhand
(d) persons exercising option under the provisions of sub-section (3) of section 25, i.e. who
have voluntarily obtained GST registration or such registered persons who intend to continue with
their registration under the said Act

Important Points to be noted
1. The new registration limit is only for goods and not for services
2. Inter-state supply of goods shall not be covered, since persons making inter-state supplies
are mandatorily required to get registered as per Section 24
3. If the person has obtained registration because of Section 24, the new limit of Rs. 40 Lakhs
shall not apply then.
4. The new limit is applicable from 1st April 2019, i.e. Financial Year 2019-20.

The Composition levy scheme is a very simple, hassle free compliance scheme for small taxpayers. It is a voluntary
and optional scheme.
Provisions related to composition levy have been provided under section 10 of the Central GST Act, 2017 and
Chapter 2 of the CGST Rules, 2017.
Under this scheme, a registered taxable person, whose aggregate turnover does not exceed Rs. One and Half
crores (Rs. I Cr. for special category States except J & K and Uttrakhand) in the Previous Financial year may opt for
this scheme.
A taxpayer registered under composition levy scheme has to pay an amount equal to certain fixed percentage of
his annual turnover as tax to the government. This tax has to be paid on quarterly basis. Such taxpayer does not
have to maintain elaborate accounts and records. He has to file a simple Quarterly Return in FORM GSTR-04.
Composition scheme : Applicable GST Rate
Type of Business CGST SGST Total
Manufacturers and Traders (Goods) 0.5% 0.5% 1%
Restaurants not serving Alcohol 2.5% 2.5% 5%
Service Providers 3% 3% 6%

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Generally speaking, an invoice is a commercial instrument issued by
a seller to a buyer. It identifies both the trading parties, and lists,
describes, and quantifies the items sold, shows the date of shipment
and mode of transport, prices and discounts, if any, and the delivery
and payment terms. An invoice serves as a demand for payment and
becomes a document of title when paid in full.
Invoice under GST Under the GST regime, an “invoice” or “tax invoice”
means the tax invoice referred to in Section 31 of the CGST Act, 2017. This
section mandates the issuance of an invoice or a bill of supply for every
supply of goods or services.
Normally a registered person is making supplies, then a Tax Invoice needs
to be issued by such Registered Person.
However, if a registered person is dealing only in exempted supplies or is
availing the composition scheme (composition dealer), then such a
registered person needs to issue a Bill of Supply in lieu of invoice.
In case of Reverse Charge Mechanism, the Recipient has to make “Self
Invoice”
An invoice or a bill of supply need not be issued if the value of the supply is
less than Rs. 200/-, subject to specified conditions.

There is no format prescribed for an invoice, however, Invoice rules makes it mandatory for an invoice to have the
following fields (only applicable field are to be filled):
(a) Name, address and GSTIN of the supplier
(b) A consecutive serial number, in one or multiple series, containing alphabets or numerals or special characters
like hyphen or dash and slash symbolised as “-” and “/” respectively, and any combination there of, unique
for a financial year
(c) Date of its issue
(d) Name, address and GSTIN or UIN, if registered, of the recipient
(e) Name and address of the recipient and the address of delivery, along with the name of State and its code, if
such recipient is un-registered and where the value of taxable supply is fifty thousand rupees or more
(f) HSN code of goods or Accounting Code of Services
(g) Description of goods or services
(h) Quantity in case of goods and unit or Unique Quantity Code there of
(i) Total value of supply of goods or services or both
(j) Taxable value of supply of goods or services or both, taking into account the discount or abatement, if any
(k) Rate of tax (Central tax, State tax, Integrated tax, union territory tax or cess)
(l) Amount of tax charged in respect of taxable goods or services (Central tax, State tax, Integrated tax, union
territory tax or cess)
(m) Place of supply along with the name of State, in case of a supply in the course of inter-State trade or commerce
(n) Address of delivery where the same is different from the place of supply
(o) Whether the tax is payable on reverse charge basis
(p) Signature or digital signature of the supplier or his authorized representative SN Panigrahi, EssAnnPee Business Solution
41

Tax Invoice
(Under Sec 31 of CGST Act; Rule 46)
SUPPLY to B2B or B2C Large or B2C Small
Supplier (Consigner)
Name & Address
GSTIN :
GSTIN :
Invoice No. & Date Sales Contract Ref.
Buyers Order No. & Date
Buyer Consignee (if other than Buyer) Terms & Instructions
Name & Address
GSTIN :
Packing Details
Marks & Nos
Description of Goods HSN
Code Qty UoM
Indian Currency Discount GST
Total Amount
Price Value Rate / Value
Discounted
Value
Price Amount
Discount
Bank Details
Grand Total
Amount Chargable (Rs in Words)
For
Place
Date Authorised Signatory

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For Supplying Taxable Goods
Sec 31. (1) A registered person supplying taxable goods shall, before or at the time of,—
(a) removal of goods for supply to the recipient, where the supply involves movement of goods; or
(b) delivery of goods or making available thereof to the recipient, in any other Case.
Issue a tax invoice showing the description, quantity and value of goods, the tax charged
thereon and such other particulars as may be prescribed
A supplier who is supplying exempted goods, instead of issuing a tax invoice, shall issue a bill of supply.
For Supplying Taxable Services
Sec 31(2) A registered person supplying taxable services shall, before or after the provision of service but within a
prescribed period, issue a tax invoice, showing the description, value, tax charged thereon and such other particulars as
may be prescribed.
Receipt voucher, Credit Note / Debit Note – Supplementary Invoice procedure also provided
The serial number of invoices issued during a tax period shall be furnished electronically through the Common Portal in
FORM GSTR-1.

In case of continuous supply of goods, where successive statements of accounts or successive payments are involved,
the invoice shall be issued before or at the time each such statement is issued or, as the case may be, each such
payment is received.
In case of continuous supply of services, where:
(a) The due date of payment is as certainable from the contract, the invoice shall be issued on or before the due
date of payment.
(b) The due date of payment is not as certainable from the contract, the invoice shall be issued before or at the time
when the supplier of service receives the payment.
(c) The payment is linked to the completion of an event, the invoice shall be issued on or before the date of
completion of that event.
In this case, the invoice shall be issued at the time when the supply ceases. The invoice shall be raised to the
extent of the supply made before such cessation.

45

46
Manner of Issuing Invoice
In case of supply of goods - The invoice shall be prepared in Triplicate
Duplicate for
Transporter
Original for
Recipient
Triplicate for
Goods
Supplier
In case of supply of Services - The invoice shall be prepared in Duplicate
Original for
Recipient
Duplicate for
Supplier of
Services
Goods

In the following cases it is permissible for the consignor to issue a Delivery Challan in lieu of invoice at the time of
removal of goods:
(a) Supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is not
known
(b) Transportation of goods for job work
(c) Transportation of goods for reasons other than by way of supply
(d) Such other supplies as may be notified by the Board

The delivery challan, serially numbered not exceeding 16 characters, in one or multiple series, shall contain the
following details:
(i) Date and number of the delivery challan
(ii) Name, address and GSTIN of the consigner, if registered
(iii) Name, address and GSTIN or UIN of the consignee, if registered
(iv) HSN code and description of goods
(v) Quantity (provisional, where the exact quantity being supplied is not known)
(vi) Taxable value
(vii) Tax rate and tax amount – Central tax, State tax,
(viii)Integrated tax, Union territory tax or cess, where the
(ix) transportation is for supply to the consignee
(x) Place of supply, in case of inter-State movement
(xi) Signature
The delivery challan shall be prepared in triplicate, in case of
(i) supply of goods, in the following manner:
(ii) (a) The original copy being marked as ORIGINAL FOR CONSIGNEE
(iii) (b) The duplicate copy being marked as DUPLICATE FOR TRANSPORTER
(iv) (c) The triplicate copy being marked as TRIPLICATE FOR CONSIGNER
48

49
Invoice & other Payment / Transaction Documents under GST
Tax Invoice (Sec 31 (1) & (2)) – Rule 46
Export Invoice (Sec 31 (1) & (2)) – Rule 46
Bill of Supply Sec 31(3)(c)’) – Rule - 49
Receipt Voucher (Sec 31(3)(d) – Rule 50
Refund Voucher (Sec 31(3)(e) – Rule 51
Self Invoice (RCM) (Sec 31(3) (f) - Rule 46
Payment Voucher (RCM) (Sec 31(3) (g) – Rule 52
Revised Invoice - Debit / Credit Note Sec 31(3)(a) – Rule 53
ISD Invoice – Rule 54
Delivery Challan - Rule 55
Consolidated Tax Invoice - Rule 46

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Classification
Goods Services
HSN
Code
SAC
Code
GST Rates for Goods
SCHEDULE I: LIST OF GOODS AT NIL RATE
SCHEDULE II: LIST OF GOODS AT 0.25% RATE
SCHEDULE III: LIST OF GOODS AT 3% RATE
SCHEDULE IV: LIST OF GOODS AT 5% RATE
SCHEDULE V: LIST OF GOODS AT 12% RATE
SCHEDULE VI: LIST OF GOODS AT 18% RATE
SCHEDULE VII: LIST OF GOODS AT 28% RATE
Compensation Cess applicable on Luxury & Demerit Items
GST Rates for Services
LIST OF SERVICES AT NIL RATE
LIST OF SERVICES AT 5% RATE
Compensation Cess applicable on Luxury
& Demerit Items
SN Panigrahi,
EssAnnPee Business
Solution

The Harmonized System (HS)
➢ Multipurpose Goods Nomenclature
➢ Basis for Customs Tariffs and Trade Statistics of 200
countries and economies
➢ More than 98 % of World trade in terms of the HS
➢ A universal economic language and code for
transportable goods
➢ Implemented internationally in 1988 by the HS
➢ Convention (153 Contracting Parties by June
2015)
➢ Maintained by WCO through the HS Committee
➢ Nomenclature Sub-Directorate acts as Secretariat
Used by :
❖ Customs and statisticians
❖ Governments
❖ International organizations
❖ Private sector

Description HSN No.
BASMATI Rice 10063020
BROWN RAJMA 0713.33 00
URAD DAL 0713.31 00
CLOVES 9071010
CASHEW 0801.32.10
JAGGERY BLOCKS 1701.13.10
MULTIGRAIN ATTA 1102.90.90
Soya Bean 1201 10 00
STEAM STERILIZED CHILLY POWDER 0904.22.11
STEAM STERILIZED CHILLY FLAKES 0904 22 12
Soya Flour 1208.10.00

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----------
----------
Above
5 Cr
Up to
Rs 5 Cr
Up to
Rs 5 Cr
Supply of Chemicals
Irrespective of Turnover
Aggregate Turnover in the
preceding Financial Year
Optional for
B2C invoices.
6-digit HSN code
for all invoices
4-digit HSN code for
all the B2B invoices
8-digit HSN on All
Tax Invoices
For Service
Invoice
The SAC is
strictly numeric
and is 6 digits.
The first two digits
are same for all
services i.e. 99,
the next two digits
represent the
major nature of
service and the
last two digit
represent detailed
nature of service.
PENALTY
It is very important to mention the correct HSN/ SAC Code on the tax invoices and Form GSTR-1
otherwise penalty of INR 50,000/- (INR 25,000/- each for CGST and SGST) can be levied for non-
mentioning or mentioning wrong HSN/ SAC Code under Section 125 of the Central Goods and
Services Tax Act, 2017 (i.e., General penalty).
For Goods Export
and Imports : 8
Digits Level –
Mandatory

57
It is a unique document / bill, which is electronically generated for the specific
consignment / movement of goods from one place to another, either inter-state or
intra-state
What is E-Waybill?
When it is Required?
Before Commencement of Movement of Goods. A copy or the number of an E-way Bill
generated needs to be carried by the person in charge of transportation of goods, along with the
copy of the Invoice or Bill of Supply or Delivery Challan.
Who Required to Generate?
Every Registered Person who Causes Movements of Goods
•In Relation to Supply or
•Reasons other than Supply or Inward supply from Unregistered Person
What is Value, above which E-
Waybill is Required?
For Consignment Value Exceeding Rs. 50,000/- E-Waybill Need to Generate.
However, some states have notified different threshold limits for intra-state movement of
products.
E-Waybill
SN Panigrahi
Consignment Value = Value of Goods Declared in Invoice, a Bill of Supply or Delivery Challan (+)
GST (-) Value of Exempt Supply of Goods
Why E-Waybill is Required?
.
It is used to Monitor Movement of Goods to / from a State in Order to Check Tax
Evasion.
What is Consignment Value?

58
Furthermore, there are certain exceptions where an E-way Bill needs to be generated irrespective
of the consignment value, such as in inter-state movement of goods from a principal manufacturer
to a job worker and for handicraft products.
When E-Way Bill is
Compulsory?
When is e way Bill not
Required?
No E-Waybill is Required when the mode of Transport is Non-Motor Vehicle.
In Cases as per Rule 138 (14), E-Waybill is Not Required.
How to Generate E-Way
Bill
Access the e-way bill generation portal at https://ewaybill.nic.in/ and enter the login
detail to enter the platform and then Create Part A & B in Form GST EWB-01 of E-
Waybill
What is Validity of e-Way
Bill
For Other than Odd Dimensional Cargo :An e-way bill is valid for one Day for a distance of 100 km,
and for Additional 100 Kms Extra Day is Added.
For Odd Dimensional Cargo it is 20 Kms/ Day. Day means Mid Night to Mid Night
Whether E-Waybill can be
Cancelled
E-Waybill can be cancelled by the Generator within 24 hours of its Generation. A
recipient has Right to cancel the e-way bill within 72 hours of its generation
E-Waybill
SN Panigrahi
Validity of Eway bill can be extended also. The generator of such Eway bill has to either
Eight hours before expiry or within Eight hours after its expiry can extend Eway
bill validity
Whether E-Waybill can be
Extended?

Type of conveyance Distance Validity of EWB
Other than Over
dimensional cargo
Less Than 200 Kms 1 Day
For every additional 200
Kms or part thereof
additional 1 Day
For Over dimensional
cargo
Less Than 20 Kms 1 Day
For every additional 20
Kms or part thereof
additional 1 Day
Validity of E-Way Bill The validity of e-way bill depends on the distance to be travelled by the
goods.
Validity of Eway bill can be extended also. The generator of such Eway bill has to either four
hours before expiry or within four hours after its expiry can extend Eway bill validity.

60
Sr
No
Description
A. Goods transported are -
a. Exempt from tax
b. By a non-motorised conveyance
c. Nil Rated Goods other than de-oiled cake
d. Alcoholic liquor for human consumption, petroleum crude, high speed diesel, motor spirit
(commonly known as petrol), natural gas or aviation turbine fuel
e. Not Treated as Supply
f. Transit cargo from or to Nepal or Bhutan
g. Empty cargo containers
h. Specified in annexure
Rule 138(14)
A. Goods Based

61
Sr No Description of Goods
1 Liquefied petroleum gas for supply to household and non domestic exempted category (NDEC) customers
2 Kerosene oil sold under PDS
3 Postal baggage transported by Department of Posts
4 Natural or cultured pearls and precious or semi-precious stones,
precious metals and metals clad with precious metal
5 Jewellery, goldsmiths and silversmiths wares and other articles
6 Currency
7 Used personal and household effects
8 Coral, unworked and worked coral

62

63

64
Input Tax
Credit
Available for
Capital
Goods
Input
Services
Input
S.2(59) “input” means any goods other than
capital goods used or intended to be used
by a supplier in the course or further of
business
S.2(60) “input services” means any services
used or intended to be used by a supplier in
the course or furtherance of business.
S.2(19) “capital goods” means goods, the
value of which is capitalized in the books
of accounts of the person claiming the Input
tax credit and which are used or intended to
be used in the course of furtherance of
business.
Sec 2(63)
of CGST Act
In GST: 100% credit is available
for all inputs, input services and
capital goods, which are
➢ Used or intended to be
used
➢ In the course or further
of his business
➢ Subject to fulfilment of
certain conditions
Input Tax Credit
means the credit of
input tax.

SN Panigrahi, EssAnnPee
Business Solution 65
Sec
16
Sec
18
Sec
19
Sec
20
Sec
21
Sec
17
Eligibility & Conditions for Taking Credit
Apportionment of Credit & Blocked Credit
Availability of Credit in Special Circumstances
Taking Input Tax Credit in Respect of Inputs &
Capital Goods Sent for Job Work
Manner of Distribution of Credit by ISD
Manner of Recovery of Credit Distributed in Excess

➢ Every registered taxable
person shall be entitled
➢ To take credit of input tax charged on
any supply of goods or services or both
➢ Which are used or intended to be used in the
course or furtherance of his business
➢ The said amount shall be credited to the electronic
credit ledger of such person
Subject to such conditions and restrictions
as may be prescribed and within the time
and manner specified in Section 49

(d)
(c)
(b)
(a)
Registered taxable person has furnished the Return
under Section 39
The tax charged in respect of such supply has been actually paid to
the Government, either in cash or through utilisation of input tax
credit admissible in respect of the said supply; and
Taxable person has Received the goods and / or
services or both
possession of a tax invoice, debit note, or such
other taxpaying document as may be prescribed
Requirements
for availing
ITC
Sec 16(2)

68
List of Tax
Paying
Documents
Debit Note
Self-Invoice
for Reverse
Charge
Tax Invoice
An invoice issued by the supplier of goods or
services or both in accordance with the provisions of
section 31
An invoice issued in accordance with the provisions
Section 31(3)(f) subject to payment of tax
A debit note issued by a supplier in accordance
with the provision of section 34
ISD Invoice
An ISD invoice or ISD credit note or any documents
issued by an Input Service Distributor in
accordance with the provisions of provisions of
sub-rule (1) of Rule 54
Bill of Entry a Bill of Entry or any similar document prescribed under
the Customs Act, 1962
Rule : 36 (1) of
CGST Rules credit.-
The input tax credit
shall be availed by a
registered person,
including the Input
Service Distributor, on
the basis of any of the
following documents,
namely
Tax Invoice
as per
Rule 46
Tax Invoice
as per
Rule 46
Debit Note
as per
Rule 53
ISD Invoice
as per
Rule 54
B/E as per
Sec 46
Customs Act

ITC allowed only to a Registered Taxable Person
Which are used or intended to be used in the
course or furtherance of his business
Possession of Tax Invoice / Tax Document
Goods or Services Received
Documentary Evidence of Tax Paid by the Supplier
Payment Made to Supplier within 180 Days
Tax Documents must contain GSTIN of both
Supplier and Recipient & other Particulars
Documentary Evidence of Returns Filled
Taxable Outward Supply
(Not Exempted)
ITC allowed against Tax Invoice; Self Invoice (RCM);
Debit Note; B/E; ISD Invoice
Recipient has Not Claimed Depreciation on
Capital Goods on the tax component
No ITC shall be allowed after GST return has been
filed for September or filing of relevant annual
return which ever is earlier
69

72
Section 49 of CGST Act, 2017; read with Rules 85 to 88 of CGST Rules, 2017 deals with payment of tax,
interest, penalty and other amounts. Focus on e-payments for the liabilities arising under GST rather than over
the counter payments. Simultaneously, for the small assessee, over the counter payment by cash / cheque/ DD
is permissible up to the limit of Rs. 10,000/- per challan per tax period.
Types of Registers /
Ledgers
Electronic Cash
Ledger
Electronic Credit
Ledger Electronic Liability
Ledger
Payments
Through
Internet Banking/
credit or debit cards /
NEFT / RTGS
Through Counter
Sec 49(1)
Used for any
payments
Tax, Interest,
Penalty. Fees or
any other Payment
Sec 49(3)
Input tax
credit
shall be
credited
Sec 49(2)
Used for
making
payments
of Taxes only
Sec 49(4)
All the tax
liabilities
Are
Recorded
Sec 49(7)
Can be viewed
Section 49 of
CGST Act, 2017
FORM GST PMT-01
FORM GST PMT-05
FORM GST PMT-02

73
Return form Who should file the return and what should be filed? Frequency Due date for filing
GSTR-1
Registered taxable supplier should file details of outward supplies of taxable goods and services as effected. Apart from this all credit
as well as debit notes are also required to be reported under this return. GSTR-1 return is required to be filed by normal taxpayers
monthly. However, normal taxpayers having turnover up to Rs.1.5 crores in the previous financial year, can file it on a quarterly basis.
Monthly /
Quarterly
11th of the subsequent month.
GSTR-2
Registered taxable recipient should file details of inward supplies of taxable goods and services claiming input tax credit. It is currently
not in use from September 2017 tax period onwards
Monthly 15th of the subsequent month.
GSTR-2A
GSTR-2A return is a auto-populated return which contains details of all inward supplies of goods and services (Purchases made from
registered suppliers during a tax period).
GSTR-2B
It is an auto-generated ITC statement, it will be generated for every recipient as per the data filled by the suppliers in their respective
Forms GSTR-1, GSTR-5 and GSTR-6. It will clear that the input tax credit is available or not for every document filed by the supplier.
GSTR-3
Registered taxable person should file monthly return on the basis of finalization of details of outward supplies and inward supplies plus
the payment of amount of tax. It is currently not in use from September 2017 tax period onwards
Monthly 20th of the subsequent month.
GSTR-3 B A Summary Return is required to be filed by the registered taxpayer where information with regard to inward, outward supplies, input
and tax liabilities.
Monthly
20th of the subsequent month.
GSTR-4 /CMP-08
return
Composition Supplier should file quarterly return. CMP-08 return has replaced the GSTR-4 return Quarterly 18th of the month succeeding quarter.
GSTR-5 Return for non-resident taxable person. Monthly 20th of the subsequent month.
GSTR-6 Return for Input Service Distributor. (ISD) Monthly 13th of the subsequent month.
GSTR-7 Return to be filed by TDS (Tax deducted at source) Diductor Monthly 10th of the subsequent month.
GSTR-8 E-commerce operator or tax collector should file details of supplies effected and the amount of tax collected. Monthly 10th of the subsequent month.
GSTR-9 Registered Taxable person should file Annual Return. Optional for Taxpayers with Turnover up to Rs.2 crore Annual 31 December of the next fiscal year.
GSTR-9 A Annual Return for the taxpayer who opted for Composition Scheme 31 December of the next fiscal year.
GSTR-9 C
Annual GST Reconciliation Statement. The requirement to get a GST audit and certification done by a CA / CMA now stands removed.
Taxpayers with a turnover exceeding Rs.5 crore in the previous financial year are required to file Form GSTR-9C on a self-certification
basis. This change is applicable from FY 20-21 onwards.
Annual
31 December of the next fiscal year.
GSTR-10 Taxable person whose registration has been cancelled or surrendered should file final return.
Once, after the
registration of GST
is cancelled
Within 3 months of date of cancellation or date of
cancellation order, whichever is later.
GSTR-11 Person having UIN claiming refund should file details of inward supplies. Monthly
28th of the month, following the month for which
the statement was filed.

Sessions Curriculum
Session 1
An Introductory Session – What is GST – The Need for GST – Advantages of GST
Constitutional Aspects and Basic Concepts of GST
Session 2
Taxable Event – Supply - Destination Principle - Concurrent Dual GST - IGST Model –
Taxable Persons
Meaning / Scope of Supply of Goods & Services
Definition – Nature of Supply – Types of Supply : Exempted & Zero-rated Supply - Mixed
and Composite Supply – Composition Levy.
Levy & Collection
Tax Liability - Power to Grant Exemptions
Classification –HSN/SAC include Rates - Exemptions
Session 3
Time of Supply
Time of Supply of Goods – Time of Supply of Services – Change in Rate of Supply
Session 4
Place of Supply
Nature of Supply – Place of Supply for Goods – Place of Supply for Domestic Services –
Place of Supply for International Services
Session 5
Value of Supply
Transaction Value - Consideration - Specific Inclusions and Exclusions – Discount –
Value on Stock Transfer - Sale-on-Approval – Supply of Gifts
Certified GST Practicing Professional (C-GST PP) – 25 Hrs Program

Sessions Curriculum
Session 6
GST Registration
Persons Liable for Registration - Persons Not Liable for Registration - Compulsory
Registration in Certain Cases - Procedure for Registration - Deemed Registration
Session 7
Input Tax Credit (ITC)
Eligibility and Conditions for Taking Input Tax Credit – Apportionment of Credits &
Blocked Credit – Availability of Credit in Special Circumstances – Taking Credit in Case
of Job Work & ISD
Session 8
Tax Invoice, Delivery Challan, Credit and Debit Notes
Tax Invoice - Amount of Tax to be Indicated in Tax Invoice and other Documents - Credit
and Debit Notes
Session 9
Payment of Tax
Payment of Tax, Interest, Penalty and other Amounts - Interest on Delayed Payment of
Tax
GST Returns Filling
Furnishing of Monthly Returns - Annual Return - Notice to Return Defaulters - Levy of
Late Fee
Accounts and Records
Accounts and other Records - Period of Retention of Accounts

Sessions Curriculum
Session 10
Assessment
Self-Assessment - Provisional Assessment - Scrutiny of Returns - Assessment of Non-
filers of Returns & Un-Registered
Session 11
GST Audit
Audit by Chartered Accountant or Cost Accountant - Audit by Tax Authorities – Special
Audit
Session 12
Advance Rulings
Definitions of Advance Ruling - Authority for Advance Ruling - Procedure on Receipt of
Application - Appeal to Appellate Authority - Orders of Appellate Authority - Powers of
Authority and Appellate Authority
AA Case Studies
Session 13
TDS & TCS & E- Commerce Transactions
Tax Deduction at Source - Collection of Tax at Source - E- Commerce Transactions
Session 14
Other Legal Provisions
Inspection, Search, Seizure And Arrest - Demands And Recovery - Appeals And
Revision - Offences And Penalties – Anti Profiteering

Sessions Curriculum
Session 15 GST for Supply Chain Professionals
Reverse Charge Mechanism (RCM) - Job Work - Pure Agent - Stock Transfers – Distinct
Persons - Advance Payments – Warrantee Supply - Sales Rejections / Returns - Short
Supply - Free of Cost Supply or Gifts - Goods on Approval Basis - E-WayBill – GTA –
ISD - Inverted Tax Structure & Refunds - Second Hand Goods - Margin Scheme –
Related Party Transactions - Employee & Employer Relationship
Session 16 &
17
Industry Specific Analysis : Pharmaceutical Industry, Medical & Hospital, Hospitality &
Hotel Industry, Real Estate, Construction, Gems & Jewelry & other Manufacturing
Industry etc
Service Sector :
Session 18 Exports & Imports under GST
Definitions of Exports & Imports – Treatment of Export & Import under GST – Export
under LUT without Payment of Tax – Export with Payment of IGST – Export Refund –
Merchant Exports - High Seas Sales – Import Duty Calculation
Session 19 Practicals – GST Registration, Returns Filling, Refund Claims etc
Session 20 Recapitulate Lessons Learned - Exam

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