GST & CUSTOMS LAW

Complete Study Notes

[Link] Semester-VI | DSC-6.3 | University of Delhi

UGCF / NEP Based Syllabus

All 5 Units | Definitions | 9/18 Mark Pointers | Q&A; | Flowcharts

Unit Topic Hours Marks

Unit 1 Structure, Registration & Exemptions 9 18

Unit 2 Levy and Collection of GST 16 27

Unit 3 Input Tax Credit & RCM 9 18

Unit 4 Tax Invoice, Returns & Payment 7 15

Unit 5 Customs Law 4 12

TOTAL 45 90
 ■ EXAM PATTERN & GENERAL GUIDELINES

Important rules for the examination — READ FIRST

✦ EXAM GUIDELINES [General]

1. Provisions cutoff — All GST provisions notified up to 31st December before the even semester start are
examinable.

2. Total Questions — 5 questions with internal choice — attempt any one from each pair.

3. Customs Law Weightage — 12 Marks dedicated to Customs Law; internal choice in Customs question is
also from Customs only.

4. GST Rates in Practicals — The examiner will provide GST rates in all practical/numerical questions — you
do not need to memorise rates.

5. Case Studies — Questions based on case studies will be included — focus on application of concepts.

6. Question Types — Unit 1,3 — Theory + Practical. Unit 2 — Mostly Practical. Unit 4 — Theory. Unit 5 —
Theory + Practical (assessable value).
 UNIT 1: STRUCTURE, REGISTRATION &
EXEMPTIONS

9 Hours | 18 Marks | Theory + Practical

1.1 Constitutional Framework & Rationale for GST

■ DEFINITION TO REMEMBER

GST (Goods and Services Tax) is a comprehensive, multi-stage, destination-based indirect tax
levied on every value addition. It replaced multiple indirect taxes like VAT, Service Tax, Excise
Duty etc. under ONE unified tax, implemented via the 101st Constitutional Amendment Act, 2016.

✦ RATIONALE / REASONS FOR INTRODUCING GST [9 Marks]

1. Elimination of Cascading Effect — Old taxes were levied on taxes (tax on tax) — GST removed this by
allowing full input credit.

2. Uniform Tax Structure — Different states had different VAT rates causing confusion — GST created one
unified rate across India.

3. Widening the Tax Base — GST brought more businesses and services under the tax net increasing
government revenue.

4. Ease of Doing Business — Single registration, single return for multiple taxes simplified compliance for
businesses.

5. Export Competitiveness — Exports are zero-rated under GST making Indian goods cheaper and more
competitive globally.

6. Reduction of Tax Evasion — Invoice matching in GSTR-1 and GSTR-3B system makes tax evasion difficult
through digital trail.

7. Boost to GDP — Efficient tax system reduced costs, improved logistics (no inter-state check posts) and
boosted economic growth.

8. One Nation One Tax — Replaced 17+ taxes and 23+ cesses with one tax promoting economic integration of
India.

9. Consumer Benefit — Reduced overall tax burden on goods and services by eliminating multiple levies in the
supply chain.

✦ 101st CONSTITUTIONAL AMENDMENT ACT 2016 — KEY FEATURES [9 Marks]

1. Insertion of Article 246A — Gave concurrent power to both Parliament and State Legislatures to levy GST
on goods and services.

2. Article 269A — IGST — Introduced IGST on inter-state supply; revenue shared between Centre and State as
per Parliament's law.
 3. Article 279A — GST Council — Constituted the GST Council as a federal body with Centre + all States to
recommend GST rates and policies.

4. Abolition of CST — Central Sales Tax was abolished and replaced by IGST for inter-state transactions.

5. Fifth Schedule — Excluded Items — Petroleum products, alcohol for human consumption kept outside GST
(still under old tax regime).

6. Entry 84 and 92C — Parliament can levy excise duty on petroleum and tobacco; states retain VAT on alcohol
— excluded from GST.

7. State Compensation Mechanism — States guaranteed compensation for any revenue loss for 5 years
(2017-2022) via compensation cess.

8. Concurrent Jurisdiction — Both Centre and States can tax same transaction — Centre levies CGST and
State levies SGST simultaneously.

9. IGST Framework — Inter-state supply taxed under IGST Act; destination state gets the state portion of tax
collected.

1.2 Structure of GST — CGST, SGST, IGST, UTGST

■ DEFINITION TO REMEMBER

GST has a dual structure: CGST (Central GST) collected by Centre + SGST (State GST) collected
by States on intra-state supply. IGST (Integrated GST) collected by Centre on inter-state supply
and then apportioned. UTGST applies to Union Territories without legislature (Delhi & Puducherry
use SGST).

Type Full Form Who Collects When Applicable Administered by

CGST Central GST Central Govt Intra-State Supply CGST Act, 2017

SGST State GST State Govt Intra-State Supply Respective State Act

IGST Integrated GST Central Govt Inter-State Supply / Imports IGST Act, 2017

UTGST Union Territory GST UT Admin Supply in UT w/o Legislature UTGST Act, 2017

✦ STRUCTURE OF GST — 9 POINTER ANSWER [9 Marks]

1. Dual GST Model — India follows dual GST — both Centre and State simultaneously levy tax on the same
transaction.

2. CGST — Collected by Central Government on intra-state supply; governed by CGST Act 2017.

3. SGST — Collected by State Government on intra-state supply; each state has its own SGST Act.

4. IGST — Collected by Centre on inter-state supply; destination state's share transferred after collection.

5. UTGST — Levied in Union Territories without legislature (Andaman, Chandigarh, Daman & Diu, etc.).

6. Example — Intra State — Sale within Delhi: 18% GST = 9% CGST (to Centre) + 9% SGST (to Delhi Govt).

7. Example — Inter State — Sale from Delhi to Mumbai: 18% IGST (all to Centre, then 9% to Maharashtra).
 8. Revenue Sharing — IGST revenue is shared — Centre keeps CGST portion, destination state gets SGST
equivalent.

9. No Cascading Effect — Input Tax Credit (ITC) of CGST set-off against CGST; IGST can set-off
CGST+SGST both.

1.3 GST Council

■ DEFINITION TO REMEMBER

GST Council is a constitutional body under Article 279A that makes recommendations on GST
rates, exemptions, thresholds, model laws, and other matters. It is a joint forum of the Union and
States for cooperative federalism in indirect taxation.

✦ GST COUNCIL — COMPOSITION & FUNCTIONS [9 Marks]

1. Constitutional Basis — Established under Article 279A inserted by the 101st Constitutional Amendment Act,
2016.

2. Chairperson — Union Finance Minister is the ex-officio Chairperson of the GST Council.

3. Members — Union Minister of State for Finance (Vice-Chair) + Finance Ministers of all 28 States and 8 UTs.

4. Voting — Centre has 1/3rd voting power; all States together have 2/3rd; decisions need 3/4th majority.

5. Quorum — At least 50% of total members must be present for a valid meeting (quorum requirement).

6. Recommendations on Rates — Recommends GST rates on goods and services — nil, 5%, 12%, 18%, 28%
slabs.

7. Recommendations on Exemptions — Decides what goods/services are exempt from GST or taxed at nil
rate.

8. Dispute Resolution — Council provides mechanism to resolve disputes between Centre and States on GST
matters.

9. Special Provisions — Can recommend special rates for natural calamities; compensation cess was
recommended by Council.

1.4 GST Network (GSTN)

■ DEFINITION TO REMEMBER

GSTN is a non-profit, non-government private limited company set up to provide IT infrastructure

and services for implementation of GST. It is the technology backbone of GST — facilitating
registration, return filing, tax payment, and refunds through the GST portal ([Link]).

✦ GST NETWORK — KEY FEATURES [9 Marks]

1. Nature — Section 8 (non-profit) company incorporated under Companies Act 2013 — not a government
entity.

2. Shareholding — Central Govt 24.5%, State Govts collectively 24.5%, financial institutions 51% (private).
3. GST Portal — Operates [Link] — the single online platform for all GST-related compliance activities.

4. Registration — All new GST registrations are processed digitally through GSTN portal with Aadhaar-based
verification.

5. Return Processing — Processes crores of returns like GSTR-1, GSTR-3B; matches invoices between buyer
and seller.

6. Tax Payment — Facilitates electronic payment of GST through integrated banking and challan (PMT-06)
system.

7. Refund Processing — Processes refund applications electronically on portal for exporters and other eligible
taxpayers.

8. Analytics — Provides tax authorities with data analytics for audit, scrutiny and anti-evasion purposes.

9. Integration — Integrated with Income Tax, Customs (ICEGATE), Banking networks and Ministry of Corporate
Affairs.
1.5 GST Registration (Sections 22-27 + Rule 10)

■ DEFINITION TO REMEMBER

Registration under GST is the process by which a taxable person obtains a unique 15-digit
PAN-based GSTIN (GST Identification Number). It is mandatory for all persons whose aggregate
turnover exceeds the threshold limit, enabling them to collect tax, claim ITC, and file returns
legally.

■ REGISTRATION THRESHOLD LIMITS

Category of Supplier Threshold for Goods Threshold for Services

Normal States (General) Rs. 40 Lakhs Rs. 20 Lakhs

Special Category States* Rs. 20 Lakhs Rs. 10 Lakhs

Manipur, Mizoram, Nagaland, Tripura Rs. 10 Lakhs Rs. 10 Lakhs

*Special Category States: Arunachal Pradesh, Assam, Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Sikkim,
Meghalaya, Manipur, Mizoram, Nagaland, Tripura (NE States + hill states)

✦ MANDATORY REGISTRATION — WHO MUST REGISTER COMPULSORILY (Sec 24) [9 Marks]

1. Inter-State Supplier — Any person making inter-state supply of taxable goods/services must register
regardless of turnover.

2. Casual Taxable Person — Person who occasionally supplies goods/services in a state where he has no
fixed place of business.

3. Non-Resident Taxable Person — Foreign person supplying goods/services in India must register before
commencing supply.

4. Reverse Charge Recipient — Person who is required to pay tax under reverse charge mechanism (Section
9(3) and 9(4)).

5. E-Commerce Operator — Every e-commerce operator (like Amazon, Flipkart) must mandatorily register
irrespective of turnover.

6. Supplier through E-Commerce — Supplier supplying goods through e-commerce operator (except services
under Section 9(5)).

7. TDS Deductor — Government departments, PSUs, local authorities deducting TDS under Section 51 must
register.

8. TCS Collector — E-commerce operators required to collect tax at source (TCS) under Section 52 must
register.

9. Input Service Distributor — Head office distributing common ITC to its branches must register as Input
Service Distributor.

✦ AGGREGATE TURNOVER — CONCEPT (Sec 2(6)) [PRACTICAL IMPORTANT] [9 Marks —

PRACTICAL]
 1. Definition — Sum of all taxable supplies + exempt supplies + exports + inter-state supplies by a person under
same PAN.

2. What is INCLUDED — Taxable supplies, exempt supplies, export of goods/services, inter-state supplies all
counted together.

3. What is EXCLUDED — Central Tax, State Tax, UT Tax, Integrated Tax, compensation cess — taxes are
NOT part of turnover.

4. What is EXCLUDED (2) — Value of inward supplies on which tax paid under RCM by recipient is NOT
included in supplier's turnover.

5. PAN Based — Aggregate turnover is computed for all registrations of a person across all states under the
same PAN.

6. Purpose — Used to determine: (a) liability to register, (b) eligibility for composition scheme, (c) quarterly
return.

7. Practical Rule — Exclude all GST amounts from sales figure before computing aggregate turnover for
registration test.

8. Example — Trader sells Rs.38 lakh goods + Rs.5 lakh exempt goods = Rs.43 lakh > Rs.40 lakh — must
register.

9. Charitable Trust — Even trust/NGO must register if aggregate turnover of taxable supplies exceeds
threshold limit.

✦ PROCESS OF GST REGISTRATION [18 Marks] [18 Marks]

1. Application — REG-01 — Application filed on GST portal within 30 days of becoming liable; casual/NR
taxable person — 5 days before.

2. Documents Required — PAN, Aadhaar, proof of business address, bank account, photograph of
proprietor/partners/directors.

3. ARN Generation — Application Reference Number (ARN) generated immediately on submission — proof of
application filing.

4. Aadhaar Authentication — From Jan 2020 — Aadhaar-based authentication mandatory; without it, physical
verification required.

5. Time Limit — Proper Officer — If Aadhaar authenticated: registration granted within 7 working days; else 30
days after verification.

6. Show Cause Notice — If documents incomplete or discrepancy found, notice in REG-03 issued; applicant
must reply in REG-04 within 7 days.

7. Rejection — REG-05 — If officer not satisfied, registration can be rejected; order of rejection served in
REG-05.

8. GSTIN Allotment — On approval, 15-digit GSTIN allotted — State Code(2) + PAN(10) + Entity Code(2) +
Check Digit(1).

9. Certificate — REG-06 — Registration Certificate issued in Form REG-06; displayed at principal place of
business.
10. Effective Date — If applied within 30 days: effective from date of liability; if applied late: effective from date
of grant.

11. Multiple Registrations — Separate registration required for each state; multiple vertical businesses in same
state can opt for separate registration.

12. Amendment of Registration — Core field changes (legal name, principal place, partners) need proper
officer approval via REG-14 & REG-15.

13. Cancellation — Voluntary cancellation by taxpayer or suo motu cancellation by officer for non-compliance
via REG-19.

14. Revocation — Within 30 days of cancellation order, taxpayer can apply for revocation of cancellation in
REG-21.

15. Deemed Registration — If proper officer fails to act within prescribed time, registration deemed to be
granted automatically.

16. Suo Motu Registration — Officer can register a person who is liable but has not applied — protects
revenue interest.

17. Single Registration — Normally one registration per state; ISD and multiple business verticals are
exceptions.

18. Rule 10 — Certificate — Registration certificate (REG-06) must be displayed prominently at principal place
of business.
1.6 Exemptions from GST

■ DEFINITION TO REMEMBER

Exemption means that a supply of goods/services is not subject to GST even though it falls within
the scope of supply. Exemptions can be absolute (nil-rated) or conditional. Supplier of exempt
supplies CANNOT claim Input Tax Credit on inputs used for making such exempt supplies.

✦ TYPES OF EXEMPTIONS [9 Marks]

1. Nil Rated Supplies — Goods/services taxable under GST law but at 0% rate — supplier cannot collect any
tax (e.g., fresh vegetables).

2. Exempt Supplies — Goods/services notified as exempt under Section 11 — no tax levied; ITC on inputs not
available.

3. Non-Taxable Supply — Alcohol for human consumption, petroleum products — outside GST entirely, taxed
under separate laws.

4. Zero Rated Supply — Exports and supplies to SEZ — taxed at 0% BUT supplier can claim full refund of ITC
(unlike nil rated).

5. Absolute Exemption — No condition attached — always exempt regardless of nature of supplier or recipient
(e.g., healthcare).

6. Conditional Exemption — Exempt only when certain conditions are satisfied — recipient type or purpose
specific.

7. Partial Exemption — Some components of a service may be exempt while others remain taxable (e.g.,
insured amount threshold).

8. Intra-state trader exemption — Suppliers dealing exclusively in exempt/nil-rated goods may be exempt even
if turnover exceeds threshold.

9. Effect on ITC — If a supplier makes both taxable and exempt supplies, ITC must be apportioned under Rule
42/43.

✦ KEY SERVICE EXEMPTIONS — AREAS TO FOCUS [9 Marks]

1. Health Services — Services provided by a clinical establishment, authorised medical practitioner or

para-medics are exempt.

2. Education Services — Services provided by educational institutions to students, faculty and staff are exempt
from GST.

3. Agriculture — Services relating to cultivation, harvesting, threshing, plant protection, testing by agricultural
extension officer exempt.

4. Legal Services — Representational services by individual advocates to individuals/unregistered persons

exempt; business services taxable.

5. Renting Residential Dwelling — Renting of residential dwelling for use as residence is exempt (but
commercial renting is taxable).
6. Passenger Transport — Transportation of passengers by non-AC stage carriage, metro, monorail,
waterways, air in economy class exempt.

7. GTA — Goods Transport Agency — Transportation of goods by GTA where consignment value is Rs.1500
or less per consignment exempt.

8. Interest on Loans — Interest income on loans, deposits, credit cards etc. is exempt from GST being a
financial service.

9. Charitable Activities — Services by charitable entities registered under section 12AA of Income Tax Act for
advancement of religion/spirituality.
■ FLOWCHARTS — REGISTRATION, LIMITS & EXEMPTIONS

FLOWCHART 1: IS REGISTRATION REQUIRED?

■ STEP 1: Calculate Aggregate Turnover (under same PAN, all India)

Exceeds Rs. 40L (goods) / Rs. 20L (services) for normal states?

→ If YES → STEP 2 | If NO → Check mandatory cases below

Exceeds Rs. 20L (goods) / Rs. 10L (services) for special category states?

→ If YES → STEP 2 | If NO → Check mandatory cases

MANDATORY regardless of turnover: Inter-state supply / Casual TP / NR Taxable Person / RCM payee /
E-Commerce Operator / TDS-TCS deductor / ISD

→ → MANDATORY REGISTRATION

■ STEP 2: Apply for Registration within 30 days in Form REG-01 on GST Portal

Aadhaar Authentication done?

→ YES → Registration within 7 working days | NO → Physical verification → 30 days

GSTIN allotted — 15 digit PAN-based number — Certificate in REG-06 issued

→ → REGISTRATION COMPLETE

FLOWCHART 2: THRESHOLD LIMITS AT A GLANCE

State Type Goods Threshold Services Threshold

Normal States (20 states) Rs. 40 Lakhs Rs. 20 Lakhs

Special Category States (HP, UK, Assam, J&K, Sikkim,

Rs. 20Meghalaya,
Lakhs Arunachal)Rs. 10 Lakhs

Manipur, Mizoram, Nagaland, Tripura Rs. 10 Lakhs Rs. 10 Lakhs

Composition Scheme Limit (Goods trader) Rs. 1.5 Crore (Rs. 75L for special
Not applicable
states) for services (except restaurant)
■ UNIT 1 — QUESTIONS & ANSWERS (Theory + Practical)

Q: What is GST? Explain the structure of GST in India. [9 Marks — Theory]

Ans: GST (Goods and Services Tax) is a comprehensive, multi-stage, destination-based indirect tax on supply.
India follows DUAL GST: (i) CGST — levied by Centre on intra-state supply; (ii) SGST — levied by State on
intra-state supply; (iii) IGST — levied by Centre on inter-state supply and imports; (iv) UTGST — for Union
Territories without legislature. Example: If Delhi trader sells to another Delhi buyer, both pay 9% CGST + 9%
SGST = 18% total. If Delhi trader sells to Mumbai, 18% IGST is charged, of which 9% goes to Maharashtra as
SGST equivalent.

Q: What is the significance of the 101st Constitutional Amendment for GST? [9 Marks — Theory]

Ans: The 101st Constitutional Amendment Act 2016 is the legal foundation of GST. Key impacts: (1) Article
246A — gave concurrent power to Centre and States to levy GST; (2) Article 269A — introduced IGST
framework for inter-state supply; (3) Article 279A — constituted the GST Council; (4) Abolished multiplicity of
taxes (VAT, Service Tax, Excise Duty etc.); (5) Excluded petroleum, alcohol from GST; (6) Provided for 5-year
compensation to states for revenue loss.

Q: Who must mandatorily register under GST regardless of turnover? [9 Marks — Theory]

Ans: Under Section 24 of CGST Act, the following must mandatorily register: (1) Inter-state suppliers; (2) Casual
Taxable Person; (3) Non-Resident Taxable Person; (4) Persons liable under Reverse Charge Mechanism; (5)
E-Commerce Operators; (6) Suppliers through e-commerce operators; (7) TDS deductors (Sec 51); (8) TCS
collectors (Sec 52); (9) Input Service Distributors. These categories must register even if turnover is below
threshold.

Q: Mr. A is a trader in Rajasthan dealing in readymade garments. His turnover details are: Taxable
goods Rs. 35 lakh, Exempt goods Rs. 8 lakh, Export of goods Rs. 5 lakh. Is he liable to register?
[Practical — Registration]

Ans: SOLUTION: Aggregate Turnover = Taxable Goods + Exempt Goods + Export Goods = 35 + 8 + 5 = Rs. 48
Lakh. Threshold for normal state (Rajasthan) for goods = Rs. 40 Lakh. Since Rs. 48 Lakh > Rs. 40 Lakh
threshold, Mr. A IS LIABLE to register under GST. He must apply within 30 days of crossing the threshold in
Form REG-01.

Q: What are the exemptions available for services under GST? Explain with examples. [9 Marks —
Theory]

Ans: Key exempt services: (1) Health — clinical establishments, doctors, paramedics; (2) Education — services
by recognized institutions to students; (3) Agriculture — cultivation, harvesting, testing services; (4) Legal —
advocate services to individuals; (5) Residential dwelling — renting for residential use; (6) Passenger transport
— non-AC bus, metro, inland waterways, air economy class; (7) GTA — goods transport below Rs.1500
consignment value; (8) Interest — on loans and deposits. Note: Supplier of exempt services CANNOT claim ITC
on inputs used for exempt services.

Q: Explain the composition of GST Council and its functions. [9 Marks — Theory]
Ans: GST Council (Article 279A): Chairperson — Union Finance Minister; Members — Minister of State for
Finance (VC) + Finance Ministers of all States and UTs. Voting: Centre = 1/3rd weight, States = 2/3rd; decisions
need 3/4th majority. Functions: (1) Recommend GST rates (0,5,12,18,28%); (2) Recommend exemptions; (3)
Recommend laws, model SGST Act; (4) Recommend special rates for calamities; (5) Dispute resolution; (6)
Decide compensation cess to states.
 UNIT 2: LEVY AND COLLECTION OF GST

16 Hours | 27 Marks | Mostly Practical + Case Studies

2.1 Scope of Supply — Section 7

■ DEFINITION TO REMEMBER

Supply is the taxable event under GST — GST is levied ONLY if there is a 'supply'. Supply
includes all forms of supply of goods or services or both such as sale, transfer, barter, exchange,
license, rental, lease or disposal made/agreed to be made for a consideration by a person in the
course or furtherance of business. [Section 7(1)(a) CGST Act]

✦ SCOPE OF SUPPLY — 9 POINTER ANSWER [9 Marks]

1. Supply for Consideration in Business — Main taxable event — any supply of goods/services for
money/money's worth in course of business.

2. Barter and Exchange — Exchange of goods for goods or services for services is also supply — both sides
are taxable.

3. Import of Services — Import of services for a consideration even if not in course of business is treated as
supply (Schedule II).

4. Supplies without Consideration — Schedule I lists supplies deemed supply even without consideration
(e.g., gifts to employees >Rs.50,000).

5. Schedule I — Deemed Supply — Permanent transfer of business assets, supply between related/distinct
persons, gifts >Rs.50,000 to employees.

6. Schedule II — Classification — Classifies activities as supply of goods or supply of services (e.g.,

construction = supply of service).

7. Schedule III — Neither Goods nor Services — Services by employee to employer, functions as
MP/MLA/MLC, funeral/burial services — not supply.

8. Alcoholic Liquor — Not a supply under GST — governed by State Excise laws; petroleum products GST
deferred.

9. Composite Supply vs Mixed Supply — Composite (natural bundle with principal supply) vs Mixed (artificial
bundle) — different tax treatment.

2.2 Composite and Mixed Supply

■ DEFINITION TO REMEMBER

Composite Supply = Two or more naturally bundled taxable supplies where one is a principal
supply — taxed at the rate of the PRINCIPAL SUPPLY. Example: Air ticket (principal) + food on
board (ancillary) = taxed at air ticket rate. Mixed Supply = Two or more independent supplies
artificially bundled — taxed at the HIGHEST rate applicable among the supplies.
 Feature Composite Supply Mixed Supply

Definition Naturally bundled supplies where one is principal Artificially bundled supplies — not natural combination

Essential Element Cannot be separated in normal business practice Can be supplied separately; packaged together for price

Tax Rate Rate of the PRINCIPAL supply HIGHEST rate among all supplies in the bundle

Example Diwali hamper with sweetbox + dry fruits: 5% rate Air ticket + food + insurance: each charged separately po

ITC Treatment ITC available on principal and ancillary both ITC on each component individually available

Legal Provision Section 8(a) CGST Act Section 8(b) CGST Act

2.3 Composition Levy Scheme — Section 10

■ DEFINITION TO REMEMBER

Composition scheme is a simplified GST scheme for small taxpayers with aggregate turnover up
to Rs. 1.5 Crore (Rs. 75 lakhs for special states) for goods and Rs. 50 lakhs for services. They pay
tax at a flat rate on turnover WITHOUT collecting tax from customers or claiming ITC.

Type of Business Composition Rate (on Turnover)

Manufacturers (except specified) 1% (0.5% CGST + 0.5% SGST)

Traders (goods dealers) 1% (0.5% CGST + 0.5% SGST)

Restaurants (not serving alcohol) 5% (2.5% CGST + 2.5% SGST)

Service providers (QRMP Scheme Sec 10(2A)) 6% (3% CGST + 3% SGST) — up to Rs.50L turnover

Special Composition — Ice-cream, Pan Masala, Tobacco NOT ELIGIBLE for composition scheme

✦ COMPOSITION SCHEME — 9 POINTER ANSWER [9 Marks]

1. Eligibility — Aggregate turnover not exceeding Rs.1.5 Crore (goods) or Rs.50 Lakh (services) in preceding
financial year.

2. Ineligible Persons — Supplier of services (except restaurant), inter-state supplier, e-commerce seller,
non-resident taxable person.

3. Cannot Issue Tax Invoice — Composition dealer issues BILL OF SUPPLY not tax invoice — cannot charge
GST to customer.

4. Cannot Claim ITC — No input tax credit available to composition dealer — the flat rate tax is a final tax on
turnover.

5. Flat Rate on Turnover — Pay GST at flat rate (1% for traders, 5% for restaurants, 6% for service providers)
on total turnover.

6. All Registrations Same Scheme — If composition opted for one state, must opt for all states/all business
verticals under same PAN.

7. Return Filing — File CMP-08 (quarterly statement) and GSTR-4 (annual return) — simpler than regular
taxpayer returns.
8. Exclusion from ITC Chain — Customers of composition dealer CANNOT take ITC of tax paid — as no tax
invoice is issued.

9. Mention on Signboard — Must display 'Composition Taxable Person, not eligible to collect tax on supplies'
on board at business.
2.4 Place of Supply

■ DEFINITION TO REMEMBER

Place of Supply determines WHETHER a supply is inter-state (IGST) or intra-state (CGST+SGST).

If Location of Supplier and Place of Supply are in SAME State → INTRA-STATE (CGST+SGST). If
in DIFFERENT States → INTER-STATE (IGST). Section 10-13 of IGST Act govern Place of Supply.

✦ PLACE OF SUPPLY — GOODS (Section 10 IGST Act) [9 Marks]

1. Goods involving movement — Place of supply = place where movement of goods TERMINATES for
delivery to recipient.

2. Goods not involving movement — Place of supply = location of goods at the time of delivery to the
recipient.

3. Goods delivered to third party — Place of supply = principal place of business of RECIPIENT (person on
whose direction goods delivered).

4. Assembly/Installation at site — Place of supply = place where goods are assembled or installed at site.

5. Goods on board (ship/aircraft) — Place of supply = location where goods are taken on board the
conveyance.

6. IGST Applicability — If place of supply is different from supplier's state → IGST; same state → CGST +
SGST.

7. Import — Place of supply for imports = location of importer; Centre collects IGST as BCD+IGST at customs
port.

8. Export — Export of goods is zero-rated supply — place of supply is outside India, so IGST Act governs.

9. Special Rule for E-Commerce — Online supply — place of supply is location of recipient or billing address of
recipient.

2.5 Time of Supply

■ DEFINITION TO REMEMBER

Time of Supply is the point when GST liability arises — i.e., WHEN to pay tax. For GOODS: earliest
of date of invoice OR date of receipt of payment. For SERVICES: earliest of date of invoice (if
within 30 days of supply) OR date of receipt of payment OR date of supply of service (if invoice
not issued in time). [Sections 12 and 13 CGST Act]

Scenario Time of Supply — GOODS Time of Supply — SERVICES

Invoice issued on time Earlier of: Invoice date OR Payment date Earlier of: Invoice date OR Payment date

Invoice NOT issued on time Date of delivery or making goods availableDate of supply of service

Advance Payment received Date of receipt of advance payment Date of receipt of advance payment

Reverse Charge Mechanism Earliest of: Invoice date / Payment date / 30

Earliest
days of:
from
Invoice
supplydate
date/ Payment date / 60 days from supply dat

Vouchers — specific supply Date of issue of voucher Date of issue of voucher

 Vouchers — not specific Date of redemption of voucher Date of redemption of voucher

2.6 Value of Supply — Section 15

■ DEFINITION TO REMEMBER

Value of Supply is the TAXABLE VALUE on which GST is calculated. The Transaction Value is the
price actually paid or payable for supply when buyer and seller are NOT related and price is the
SOLE consideration. Value is adjusted for inclusions and exclusions as per Section 15.

✦ VALUE OF SUPPLY — INCLUSIONS AND EXCLUSIONS [PRACTICAL IMPORTANT] [9 Marks —

PRACTICAL]

1. Transaction Value — Base — The price actually paid/payable for supply is the starting point of value
calculation.

2. Include: Any taxes (except GST) — Any other taxes, duties, cesses, fees charged separately but related to
supply must be added.

3. Include: Incidental Expenses — Packing charges, freight and insurance charged by supplier to recipient are
included in value.

4. Include: Subsidies from Private Parties — Subsidy received from private parties that reduces selling price
must be added back to value.

5. Include: Interest/Late Fees — Interest, late payment charges, penalty for delayed payment by recipient
included in value.

6. EXCLUDE: Post-Supply Discounts — Discounts given after supply (post-sale) can be excluded if they are
as per prior agreement and ITC reversed.

7. EXCLUDE: Pre-Supply Discounts — Discounts given before or at time of supply (shown on invoice) are
directly deducted — not included.

8. EXCLUDE: GST Itself — CGST, SGST, IGST, UTGST and Compensation Cess are NOT part of the value of
supply.

9. Related Party — When supplier and recipient are related, transaction value may not be accepted — valuation
rules in Rules 28-35 apply.
2.7 OIDAR and Online Money Gaming

■ DEFINITION TO REMEMBER

OIDAR (Online Information and Database Access or Retrieval) services are services delivered
over the internet with minimal human intervention. Examples: cloud services, e-books, online
gaming (non-monetary), music/video streaming, digital advertising. Online Money Gaming means
online games where players pay money with expectation of winning money — taxed at 28% on full
face value of bets/chips/tokens (amendment effective Oct 2023).

✦ OIDAR SERVICES — 9 POINTS [9 Marks]

1. Definition — Services delivered electronically over internet or electronic network with essentially
automated/minimal human intervention.

2. Examples — Cloud computing, SaaS software, streaming music/videos, e-books, online gaming
(non-monetary), digital advertising.

3. Cross-Border OIDAR — Foreign OIDAR service providers supplying to non-business recipients in India must
register and pay IGST.

4. Place of Supply for OIDAR — Location of recipient of service — ensures India can tax foreign digital
services consumed in India.

5. Section 14 IGST — Special provision for OIDAR from outside India — intermediary or company in India may
be treated as supplier.

6. Online Money Gaming — Amendment 2023 — Defined as online game where players pay to win prize
money — treated as actionable claim.

7. Rate for Online Money Gaming — 28% GST on full face value of bet/buy-in/chips regardless of whether
game is skill-based or chance-based.

8. Casino, Horse Racing, Lottery — All taxed at 28% on full face value after Oct 2023 amendment — no ITC
available.

9. Registration for Foreign Providers — Foreign OIDAR providers supplying to unregistered persons in India
must take simplified registration.

■ UNIT 2 — QUESTIONS & ANSWERS

Q: ABC Ltd. (Mumbai) sells goods worth Rs.1,00,000 to XYZ Ltd. (Delhi). Compute IGST @ 18%. Also,
if ABC Ltd. sells to PQR Ltd. in Mumbai, compute CGST and SGST. [Practical]

Ans: CASE 1 — Inter-state (Mumbai to Delhi): IGST @ 18% = Rs.1,00,000 × 18% = Rs.18,000. Total Invoice
Value = Rs.1,00,000 + Rs.18,000 = Rs.1,18,000. IGST goes to Central Government. CASE 2 — Intra-state
(Mumbai to Mumbai): CGST @ 9% = Rs.1,00,000 × 9% = Rs.9,000; SGST @ 9% = Rs.1,00,000 × 9% =
Rs.9,000. Total Invoice = Rs.1,18,000. CGST → Central Govt; SGST → Maharashtra Govt.

Q: A trader sells a Diwali gift hamper containing dry fruits (GST 12%) + ghee (GST 5%) + chocolates
(GST 18%) for Rs.2,000. Classify as composite or mixed supply and compute GST. [Practical —
Composite/Mixed Supply]
 Ans: This is a MIXED SUPPLY since these items can be individually supplied and are artificially bundled. As per
Section 8(b), Mixed Supply is taxed at the HIGHEST rate among all supplies. Highest rate = 18% (chocolates).
GST = Rs.2,000 × 18% = Rs.360. (If it were a Composite Supply, principal supply rate would apply.)

Q: Mr. Raj is a small trader in Rajasthan with annual turnover of Rs.80 lakhs from goods. Can he opt
for composition scheme? What are the restrictions? [Practical + Theory]

Ans: YES, Mr. Raj can opt for composition scheme since turnover Rs.80 lakh < Rs.1.5 crore limit (Rajasthan is
normal state). RESTRICTIONS: (1) Cannot supply services except restaurant; (2) Cannot make inter-state
outward supply; (3) Cannot issue Tax Invoice — must issue Bill of Supply; (4) Cannot claim ITC; (5) Must
display 'Composition Taxable Person' board; (6) Tax rate: 1% of turnover (0.5% CGST + 0.5% SGST). He will
file CMP-08 quarterly and GSTR-4 annually.

Q: Compute the value of supply: Price of goods Rs.50,000; Packing charges Rs.2,000; Freight
Rs.3,000 (charged by supplier); Trade discount shown on invoice Rs.1,000; GST @ 18% [Practical —
Value of Supply]

Ans: Transaction Value Computation: Price of goods: Rs.50,000 ADD: Packing charges (incidental expense):
Rs.2,000 ADD: Freight (charged by supplier): Rs.3,000 LESS: Trade discount (pre-supply, on invoice):
Rs.(1,000) TAXABLE VALUE: Rs.54,000 GST @ 18% = Rs.9,720 (CGST 9% = Rs.4,860 + SGST 9% =
Rs.4,860) Total Invoice Value = Rs.54,000 + Rs.9,720 = Rs.63,720

Q: What is OIDAR? How are foreign OIDAR service providers taxed in India? [9 Marks — Theory]

Ans: OIDAR = Online Information and Database Access or Retrieval. Services delivered over internet with
minimal human intervention. Examples: streaming (Netflix), cloud services (AWS), e-books, digital advertising.
For foreign providers supplying to NON-BUSINESS recipients in India: they must take registration in India and
pay IGST. If they have an intermediary/representative in India, that entity is treated as supplier. Place of supply
= location of recipient (India), so IGST applies. Post Oct 2023, online money gaming (28% on face value) is
separately dealt with as a sub-category of OIDAR/actionable claims.
 UNIT 3: INPUT TAX CREDIT & REVERSE CHARGE
MECHANISM

9 Hours | 18 Marks | Theory + Practical

3.1 Input Tax Credit (ITC) — Sections 16-21

■ DEFINITION TO REMEMBER

Input Tax Credit (ITC) means the credit of GST paid on INPUTS (goods/services used in business)
which can be set-off against GST payable on OUTPUT (sale). It eliminates the cascading effect of
taxes. ITC is available only to REGISTERED persons for goods/services used in the COURSE OF
BUSINESS for making TAXABLE SUPPLIES.

✦ CONDITIONS FOR CLAIMING ITC — Section 16(2) [IMPORTANT] [9 Marks]

1. Registered Person — Only a GST-registered taxpayer (supplier of taxable goods/services) can claim ITC.

2. Tax Invoice/Debit Note — Must possess a valid tax invoice or debit note issued by a registered supplier.

3. Receipt of Goods/Services — Goods or services must actually be received by the person claiming ITC.

4. Tax Actually Paid — Supplier must have actually paid the tax to government (verified through GSTR-2B
matching).

5. Return Filed — Claimant must have filed their GST return (GSTR-3B) to avail and utilize ITC.

6. Payment within 180 Days — Recipient must pay the supplier within 180 days of invoice — else ITC reversed
with interest.

7. Proportionate ITC — If goods/services used partly for taxable and partly for exempt supplies, ITC is
proportionate (Rule 42).

8. Time Limit to Claim — ITC to be claimed latest by 30th November following the financial year or date of filing
annual return.

9. Matching Requirement — ITC claim must match with details auto-populated in GSTR-2B from supplier's
GSTR-1.

3.2 Blocked Credits — Section 17(5)

■ DEFINITION TO REMEMBER

Blocked Credits are those items of ITC which a registered person CANNOT claim even if they are
used in the course of business. Section 17(5) of CGST Act lists specific goods and services on
which ITC is blocked regardless of their business use.

Category Blocked? (Section 17(5)) Exception (ITC Available)

Motor vehicles for transport of persons (up toBLOCKED

13 seats) If used for further supply, transportation business, driving school
 Food and beverages, outdoor catering BLOCKED If used for making same category supply or as part of composite supply

Beauty treatment, health services, cosmetic/plastic

BLOCKED surgery If used for making same category supply

Membership of club, health/fitness centre BLOCKED No exception

Travel benefits to employees (vacation) BLOCKED No exception

Works contract services for immovable property

BLOCKED If used for further supply of works contract or plant/machinery

Goods/services for construction of immovable

BLOCKED
property Plant and machinery is NOT blocked

Composition dealer's purchases BLOCKED Not applicable — composition dealer has no ITC at all

✦ UTILISATION OF ITC — SET-OFF ORDER (Rule 88A + Section 49) [9 Marks — PRACTICAL]

1. IGST First against IGST — ITC of IGST is first set off against IGST output tax liability.

2. IGST then against CGST — Remaining IGST ITC can be set off against CGST liability next.

3. IGST then against SGST — After IGST+CGST, remaining IGST ITC can be set off against SGST liability.

4. CGST against CGST only — ITC of CGST can ONLY be set off against CGST liability — cannot cross-set-off
with SGST.

5. SGST against SGST only — ITC of SGST can ONLY be set off against SGST liability — cannot cross-set-off
with CGST.

6. No CGST-SGST Cross Credit — CGST ITC cannot be used for SGST and vice versa — this is a strict rule
under Section 49(5).

7. Cash for Balance — After utilizing all ITC, any remaining liability must be paid in CASH through GST
payment.

8. Electronic Credit Ledger — ITC is maintained in Electronic Credit Ledger on GST portal — taxpayer can
check balance anytime.

9. ITC on Capital Goods — ITC on capital goods taken in the year of purchase itself — no deferral; reduce 5%
per quarter if used for both.
3.3 Reverse Charge Mechanism (RCM) — Section 9(3) and 9(4)

■ DEFINITION TO REMEMBER

Reverse Charge Mechanism (RCM) means the liability to pay GST shifts from the SUPPLIER to the
RECIPIENT of goods/services. Normally supplier pays GST; under RCM, the buyer pays GST
directly to the government. Section 9(3) — Notified goods/services. Section 9(4) — Purchases
from unregistered persons by registered persons.

Goods/Services Supplier Recipient who pays GST

GTA (Goods Transport Agency) services GTA Body corporate, partnership, registered person

Legal services by advocate/firm Individual advocate or firm Any Business Entity (registered or unregistered)

Services by Director to Company Director The Company/Body Corporate

Security Personnel Services Non-body corporate entity Registered business recipients

Services by Govt/Local Authority (excluding postal,

Government
insurance, transport) Registered person receiving service

Import of services Foreign supplier Recipient in India (even if for personal use)

Sponsorship services Any person Body corporate or partnership firm

Lottery (old — exempt now) State Government/lottery distributor

Lottery distributor/selling agent

✦ REVERSE CHARGE MECHANISM — 9 POINTER ANSWER [9 Marks]

1. Meaning — Tax liability shifts from supplier to recipient — recipient pays GST directly to government.

2. Section 9(3) — Specified List — Notified list of goods and services where RCM always applies regardless of
registration status.

3. Section 9(4) — Unregistered Supply — Registered person buying from unregistered supplier must pay GST
under RCM on such purchases.

4. ITC of RCM — Recipient who pays tax under RCM can claim ITC of such tax paid — but only in month of
actual payment.

5. Invoice by Recipient — Under RCM, RECIPIENT issues a self-invoice (not supplier) when supplier doesn't
issue tax invoice.

6. Time of Supply under RCM — Goods: earliest of invoice date / payment date / 30 days from supply;
Services: 60 days from supply.

7. GTA Example — Transport company (GTA) carries goods for ABC Ltd. — ABC Ltd. pays 5% GST on freight
under RCM.

8. Advocate Example — Law firm provides legal service to Company — Company pays 18% GST under RCM.

9. No Threshold for RCM Sec 9(3) — RCM under Sec 9(3) applies from first rupee — no threshold limit; must
register even below turnover limit.

3.4 ITC Apportionment — Rules 42 and 43

■ DEFINITION TO REMEMBER
 When a registered person makes BOTH taxable and exempt supplies, they cannot claim full ITC.
ITC must be apportioned: ITC attributable to taxable supply = allowed; ITC on exempt supply =
disallowed (must be reversed). Rule 42 covers Input goods/services; Rule 43 covers Capital
Goods.

✦ RULE 42 — APPORTIONMENT OF ITC (Common Credits on Inputs) [9 Marks — PRACTICAL]

1. Step 1 — Total ITC (T) — Calculate total ITC claimed on all purchases during the tax period.

2. Step 2 — Directly Attributable to Taxable (T1) — ITC directly attributable to taxable supplies — fully
allowed.

3. Step 3 — Directly Attributable to Exempt (T2) — ITC directly attributable to exempt/non-business supplies
— fully disallowed.

4. Step 4 — Blocked Credits (T3) — ITC blocked under Section 17(5) — disallowed.

5. Step 5 — Common Credit (C1) — C1 = T - T1 - T2 - T3 (remaining credit attributable to both taxable and
exempt).

6. Step 6 — ITC on Exempt (D1) — D1 = C1 × (Exempt Turnover / Total Turnover) — this amount must be
reversed monthly.

7. Step 7 — Final Eligible Credit — Eligible ITC = T1 + (C1 - D1) — only this can be set off against output tax.

8. Annual Reversal Adjustment — At year-end, recompute based on actual annual turnover and adjust any
excess/short reversal.

9. Rule 43 — Capital Goods — ITC on capital goods used for both — reversed at 5% per quarter for 60 months
of total ITC.
■ UNIT 3 — QUESTIONS & ANSWERS

Q: ABC Ltd. has the following ITC available: IGST Rs.50,000; CGST Rs.30,000; SGST Rs.20,000.
Output tax liability: IGST Rs.40,000; CGST Rs.25,000; SGST Rs.15,000. Compute net liability.
[Practical — ITC Set-off]

Ans: SET-OFF COMPUTATION: 1. IGST ITC (Rs.50,000) → Set off against IGST O/L (Rs.40,000): Balance
IGST ITC = Rs.10,000 2. Remaining IGST ITC → Set off against CGST O/L: Rs.10,000 vs CGST O/L
Rs.25,000. Balance CGST O/L = Rs.15,000 3. CGST ITC (Rs.30,000) → Set off against CGST O/L (Rs.15,000):
CGST ITC surplus = Rs.15,000 (carry forward) 4. SGST ITC (Rs.20,000) → Set off against SGST O/L
(Rs.15,000): SGST ITC surplus = Rs.5,000 (carry forward) Net Cash Payment Required: NIL (all liabilities
settled through ITC) Surplus ITC: CGST Rs.15,000 + SGST Rs.5,000 — carried forward to next month

Q: A company purchases a luxury car worth Rs.15 lakhs for use of the Managing Director. Can ITC
be claimed? Also, purchases computer worth Rs.2 lakhs for office. Can ITC be claimed? [Practical —
Blocked Credit]

Ans: CAR (Motor Vehicle for MD): ITC is BLOCKED under Section 17(5)(a). Motor vehicles with seating
capacity up to 13 persons used for purposes other than transportation business/driving school — ITC NOT
allowed. BLOCKED. COMPUTER for office: ITC is ALLOWED. Computer is not in the blocked list under Section
17(5). It is a capital good/input used in course of business — full ITC of IGST/CGST/SGST paid on it can be
claimed.

Q: GTA provides transport service to Omega Ltd. (registered) and charges Rs.50,000 as freight. GST
@ 5%. Who pays GST? Can Omega Ltd. claim ITC? [Practical — RCM]

Ans: Under Section 9(3), GTA services to registered business → GST payable under RCM by RECIPIENT.
Omega Ltd. (Recipient) pays GST = Rs.50,000 × 5% = Rs.2,500. GTA (Supplier) does NOT charge GST or pay
GST. Omega Ltd. must issue a SELF-INVOICE for this transaction. ITC: Yes, Omega Ltd. CAN claim ITC of
Rs.2,500 paid under RCM in the SAME MONTH of payment.

Q: Explain the conditions for eligibility of Input Tax Credit under Section 16. [9 Marks — Theory]

Ans: Section 16(2) conditions: (1) Registered person — only registered taxable person can claim ITC; (2) Valid
tax invoice/debit note — must possess proper tax invoice; (3) Goods/services received — actual receipt
required (for instalments, ITC per instalment); (4) Tax paid by supplier — supplier must have deposited tax to
government (verified via GSTR-2B); (5) Return filed — claimant must file GSTR-3B to utilize ITC; (6) Payment
within 180 days — if not paid to supplier within 180 days, ITC reversed with 18% interest; (7) Proportionate ITC
— if used partly for exempt supply, only proportionate ITC allowed under Rule 42.
 UNIT 4: TAX INVOICE, RETURNS & PAYMENT OF TAX

7 Hours | 15 Marks | Theory Based

4.1 Tax Invoice

■ DEFINITION TO REMEMBER

A Tax Invoice is the primary document issued by a registered supplier for every taxable supply of
goods/services. It serves as the basis for ITC claim by the recipient. Under Section 31, every
registered person making taxable supply must issue a tax invoice containing prescribed details
(Rule 46).

✦ TAX INVOICE — MANDATORY CONTENTS (Rule 46) [9 Marks]

1. Supplier Details — Name, address and GSTIN of the supplier must be clearly mentioned on the invoice.

2. Invoice Number & Date — Consecutive serial number not exceeding 16 characters, containing only
alphabets/numerals/hyphen/slash.

3. Recipient Details — Name, address, GSTIN (if registered) or state name + state code (if unregistered) of
recipient.

4. Place of Supply — Place of supply (with state name and state code) must be mentioned for determining
IGST/CGST+SGST.

5. HSN/SAC Code — HSN code for goods (6-digit for turnover above Rs.5 crore; 4-digit for Rs.1.5-5 crore;
optional below Rs.1.5 crore).

6. Description and Quantity — Description of goods/services, quantity (for goods), unit of measurement must
be mentioned.

7. Taxable Value — Value of supply and any applicable discount clearly mentioned — this is the base for GST
computation.

8. Tax Rate and Amount — Rate of tax (CGST, SGST, IGST, UTGST), amount of tax charged in respect of
taxable goods/services.

9. Signature — Signature or digital signature of supplier or authorized representative of the registered person.

✦ BILL OF SUPPLY, CREDIT NOTE, DEBIT NOTE, E-WAY BILL [9 Marks]

1. Bill of Supply — Issued by: (a) composition dealer; (b) supplier of exempted goods/services — no GST
charged, no ITC available.

2. Credit Note — Sec 34(1) — Issued by supplier when: goods returned, excess supply, deficiency in service,
price reduction — reduces tax payable.

3. Debit Note — Sec 34(3) — Issued by supplier when: price increased after invoice, short supply — increases
tax payable.
4. Time Limit — Credit/Debit Note — Must be declared in the return for the period ending 30th November of
next financial year.

5. E-Way Bill — Rule 138 — Required when goods worth >Rs.50,000 are transported — generated on E-Way
Bill portal ([Link]).

6. E-Way Bill Validity — Up to 200 km — 1 day; Every additional 200 km — 1 additional day; ODC (Over
Dimensional Cargo) — 1 day per 20 km.

7. E-Way Bill Generation — Generated by supplier, transporter or recipient; contains details of consignor,
consignee, vehicle, goods.

8. E-Way Bill Exemptions — Not required for: goods up to Rs.50,000; goods transported by non-motorised
conveyance; customs sealed goods.

9. Receipt Voucher — Issued by supplier when advance payment received before issue of tax invoice.
4.2 GST Returns

■ DEFINITION TO REMEMBER

GST Returns are periodic statements of tax liability filed by registered taxpayers. Returns enable
the government to verify tax compliance and ITC claims. The returns system creates an audit trail
by matching supplier's GSTR-1 with recipient's GSTR-2B auto-populated data.

Form Who Files Frequency Purpose/Contents

GSTR-1 All registered (except CTP, ISD, OIDAR,

Monthly
Composition)
(by 11th) or QuarterlyOutward
(QRMP) supplies — all sales invoices, credit/debit notes, advances

GSTR-2A Auto-generated — read only Auto-populated Auto-populated ITC from suppliers' GSTR-1 (dynamic; not final)

GSTR-2B Auto-generated — read only Monthly Static ITC statement — shows confirmed ITC available from GSTR-1

GSTR-3B All regular taxpayers Monthly (by 20th/22nd/24th) Summary return — net tax payment; outward + inward supplies summary

GSTR-4 Composition dealers Annual (by 30th April) Annual summary of outward supplies and tax paid by composition dealer

GSTR-9 Regular taxpayers Annual (by 31st Dec) Annual return — reconciliation of monthly returns with financials

GSTR-9A Composition taxpayers Annual (by 31st Dec) Annual return for composition scheme taxpayers

GSTR-9C Turnover > Rs.5 Crore Annual (by 31st Dec) Reconciliation statement + certification by CA/CMA

CMP-08 Composition dealers Quarterly (by 18th of next month)

Quarterly statement of tax payable by composition dealer

4.3 QRMP Scheme and Payment of Taxes

■ DEFINITION TO REMEMBER

QRMP (Quarterly Return Monthly Payment) scheme is for taxpayers with aggregate turnover up to
Rs.5 crore. Under QRMP, GSTR-1 and GSTR-3B are filed QUARTERLY but taxes are paid
MONTHLY using a fixed sum method or self-assessment method for the first two months; then full
return filed for third month.

✦ PAYMENT OF TAX — ELECTRONIC LEDGERS [9 Marks]

1. Electronic Cash Ledger — Money deposited by taxpayer in GST portal — used for tax payment; similar to
current account.

2. Electronic Credit Ledger — ITC available — credited when ITC is claimed; debited when ITC is used to pay
output tax.

3. Electronic Liability Register — Shows total tax liability; updated when returns filed or order passed by
officer.

4. Payment Order (PMT-06) — Challan used to deposit money in Electronic Cash Ledger via net
banking/NEFT/RTGS.

5. Tax Payment Priority — Self-assessed tax from return has payment priority; interest and penalties paid next.

6. TDS under GST — Section 51 — Government bodies, PSUs deduct 2% TDS (1% CGST + 1% SGST) on
contracts > Rs.2.5 lakh.
 7. TCS under GST — Section 52 — E-Commerce operators collect 1% TCS (0.5% CGST + 0.5% SGST) on
net value of supplies.

8. Interest on Late Payment — Interest @ 18% p.a. on delayed tax payment; 24% for wrongful ITC claim or
excess reduction.

9. Late Fee — Late fee for delay in GSTR-3B: Rs.50/day (Rs.20/day for nil return) capped at Rs.10,000 per
return.

4.4 E-Commerce and GST — Section 9(5)

■ DEFINITION TO REMEMBER

E-Commerce operator is a person who owns, operates or manages digital or electronic facility for
supply of goods or services. Under Section 9(5), for specified services (passenger transport like
Ola/Uber, housekeeping, restaurant services through apps), the E-Commerce operator is deemed
SUPPLIER and pays GST instead of the actual service provider.

✦ E-COMMERCE TAXATION — KEY POINTS [9 Marks]

1. TCS Obligation — E-commerce operators collect 1% TCS on net value of supplies made through their
platform.

2. Mandatory Registration — All e-commerce operators MUST register under GST regardless of turnover.

3. Section 9(5) — Deemed Supplier — For passenger transport (Ola/Uber), housekeeping, restaurant services
— operator pays tax as if supplier.

4. GSTR-8 — TCS Return — E-commerce operator files GSTR-8 by 10th of next month showing TCS collected.

5. Supplier's Credit — TCS collected by e-commerce operator is credited to supplier's Electronic Cash Ledger.

6. Benefit for Small Sellers — Sellers on e-commerce platforms (below threshold) still need to register — no
threshold exemption.

7. Market Place Model — Platform connecting buyers and sellers (Amazon, Flipkart) — must collect and remit
TCS.

8. Inventory Model — E-commerce operator selling own goods — treated as regular supplier; pays full GST.

9. Intra-state restriction — Inter-state supply by composition dealer not allowed — but e-commerce sellers are
already excluded from composition.
■ UNIT 4 — QUESTIONS & ANSWERS

Q: What is a Tax Invoice? What are its mandatory contents under GST? [9 Marks — Theory]

Ans: Tax Invoice is a document issued by a registered supplier for every taxable supply. It is the basis for ITC
claim. Mandatory contents (Rule 46): (1) Supplier name, address, GSTIN; (2) Consecutive invoice number (max
16 characters); (3) Date of issue; (4) Recipient name, address, GSTIN (or state name if unregistered); (5) Place
of supply; (6) HSN code for goods / SAC code for services; (7) Description and quantity of goods; (8) Taxable
value and discounts; (9) Applicable tax rate — CGST%, SGST%, IGST%; (10) Amount of tax charged; (11)
Whether supply is intra/inter-state; (12) Signature of authorized person.

Q: Distinguish between Credit Note and Debit Note under GST. [9 Marks — Theory]

Ans: CREDIT NOTE: Issued by SUPPLIER when: (a) Goods returned by recipient; (b) Goods/services found
deficient; (c) Price reduced after invoice; (d) Excess tax charged. Effect: Reduces supplier's output tax liability.
Must be declared in returns by 30th November of following FY. DEBIT NOTE: Issued by SUPPLIER when: (a)
Price increased after invoice issued; (b) Short supply of goods. Effect: Increases supplier's output tax liability.
Must be declared in the return for the relevant period. Both notes must contain original invoice number and date
for cross-referencing.

Q: Explain the QRMP Scheme. Who can opt for it? [9 Marks — Theory]

Ans: QRMP (Quarterly Return Monthly Payment): Taxpayers with aggregate turnover up to Rs.5 crore can opt.
Under QRMP: GSTR-1 filed quarterly (by 13th of month after quarter); GSTR-3B filed quarterly (by 22nd or
24th). Tax payment: Month 1 & 2 of quarter — pay 35% of last quarter's tax liability (Fixed Sum) OR self-assess
and pay; Month 3 — full GSTR-3B with actual computation. Benefit: Reduced compliance burden for small
taxpayers.

Q: What is e-Way bill? When is it mandatory and what is its validity period? [9 Marks — Theory]

Ans: E-Way Bill is an electronic document required for movement of goods worth more than Rs.50,000.
Generated on e-way bill portal. MANDATORY: (1) Inter-state movement of goods >Rs.50,000; (2) Intra-state
movement if state government notifies. NOT REQUIRED: Non-motorised vehicle; goods up to Rs.50,000; goods
under customs supervision; goods to/from Nepal/Bhutan. VALIDITY: Up to 200 km → 1 day; Every additional
200 km → 1 additional day; ODC cargo → 1 day per 20 km. Extension allowed if circumstances justify (Part B
update with new transporter details).
 UNIT 5: CUSTOMS LAW

4 Hours | 12 Marks | Theory + Practical (Assessable Value)

5.1 Basic Concepts of Customs Law

■ DEFINITION TO REMEMBER

Customs Law governs taxation of goods imported into and exported from India. The Customs Act,
1962 and Customs Tariff Act, 1975 are the principal legislation. The taxable event for imports is
CROSSING of customs frontiers (entering territorial waters); for exports, it is when goods CROSS
the customs frontiers to go out of India.

Term Definition Extent (km from baseline)

Baseline Low water line (low tide mark) on the coast of India as marked on official0charts
km

Indian Territorial Waters Waters extending up to 12 nautical miles from baseline — full sovereignty
12of
Nautical
India Miles

Contiguous Zone 24 nautical miles from baseline — India can enforce customs and fiscal 24
laws
Nautical Miles

Exclusive Economic Zone 200

(EEZ)
nautical miles from baseline — India has exclusive right to explore/exploit
200 Nautical
resources
Miles

Continental Shelf Seabed and subsoil beyond territorial water up to 200 NM — India has sovereign
200 Nautical
rights
Miles

High Seas Area beyond EEZ (beyond 200 NM) — open to all nations, no country's Beyond
sovereignty
200 NM

Indian Customs Waters Waters up to 100 nautical miles from baseline — customs authorities can
100
exercise
Nautical
powers
Miles

✦ BASIC CUSTOMS CONCEPTS — 9 POINTER ANSWER [9 Marks]

1. Taxable Event — For IMPORTS — taxable event is goods crossing customs frontier (entering territorial
waters). For exports — leaving India.

2. Indian Territorial Waters — 12 nautical miles from baseline — India's full sovereignty; customs law fully
applicable here.

3. Indian Customs Waters — 100 nautical miles from baseline — customs authorities empowered to stop and
search vessels.

4. Exclusive Economic Zone — 200 NM from baseline — India has exclusive right to exploit resources but not
full sovereignty.

5. High Seas — Beyond 200 NM — international waters; goods on high seas may be purchased without
customs duty.

6. Customs Frontier — The line at which goods entering India become subject to customs examination and
levy.

7. Bill of Entry — Document filed by importer for customs clearance of imported goods — contains details of
goods, value, duty.

8. Shipping Bill — Document filed by exporter for customs clearance of exported goods — authorizes export.
9. Date of Rate of Duty — Rate of customs duty applicable is the rate in force on the date goods cross customs
frontier (entry into territorial waters).
5.2 Types of Customs Duties

■ DEFINITION TO REMEMBER

Customs duties are levied on goods crossing the customs frontier. Multiple types of duties may
be levied cumulatively on the same goods. The main types are: Basic Customs Duty,
Anti-Dumping Duty, Safeguard Duty, and Protective/Preferential Duty.

Type of Duty Legal Basis Purpose Rate/Basis

Basic Customs Duty (BCD) Customs Tariff Act 1975, Section

Revenue12generation; protect domestic industry
Ad valorem or specific — as per Customs Tariff Schedu

Anti-Dumping Duty (ADD) Sec 9A Customs Tariff ActCounter

1975 dumping — foreign goods exported
Margin
below
of dumping
normal value
= Normal
to harm
value
Indian
minusindustry
Export price —

Countervailing Duty (CVD) Sec 9 Customs Tariff Act Counter subsidies given by foreign governments
Amount of
to subsidy
exporters
given by exporting country

Safeguard Duty Sec 8B Customs Tariff ActProtect

1975 domestic industry from sudden surge
Specific
in imports
rate notified
causingfor limited
serioustime
injury
period — temporar

Protective Duty Sec 6 Customs Tariff Act Protect a specified industry as recommended
As recommended
by Tariff Commission
by Tariff Commission — high rate to p

Social Welfare Surcharge Finance Act 2018 Fund social welfare schemes 10% on BCD (after exemptions)

IGST on Imports IGST Act Section 3(7) Level playing field between imported andSame
domestic
rate as
goods
applicable to domestic supply of similar g

✦ TYPES OF CUSTOMS DUTIES — 9 POINTER ANSWER [9 Marks]

1. Basic Customs Duty (BCD) — Primary customs duty levied on all imported goods as per rates in Customs
Tariff Schedule — revenue duty.

2. Ad Valorem BCD — BCD calculated as % of transaction value of imported goods (most common method).

3. Specific BCD — BCD charged as a fixed amount per unit (per kg, per piece) regardless of value.

4. Anti-Dumping Duty — Levied when foreign goods are sold in India at below normal value to damage
domestic industry.

5. Margin of Dumping — Normal Value (price in exporting country) minus Export Price (price charged to India)
= dumping margin.

6. Countervailing Duty — Neutralizes subsidies given by foreign government to their exporters making imports
artificially cheap.

7. Safeguard Duty — Temporary duty imposed when sudden surge in imports causes serious injury to domestic
industry.

8. Protective Duty — High duty to protect a specific domestic industry; recommended by Tariff Commission to
government.

9. IGST on Imports — Levied to ensure imported goods are not at tax advantage over domestic goods — same
rate as domestic GST.
5.3 Customs Valuation — Assessable Value (Practical Important)

■ DEFINITION TO REMEMBER

Customs Valuation determines the TAXABLE VALUE on which customs duties are calculated. The
primary method is TRANSACTION VALUE (Section 14 Customs Act + Rule 3 Customs Valuation
Rules 2007) — the price actually paid or payable for imported goods when buyer and seller are
NOT related and price is the SOLE CONSIDERATION. This is also called CIF
(Cost+Insurance+Freight) value.

✦ COMPUTATION OF ASSESSABLE VALUE (CUSTOMS VALUE) — STEP BY STEP [9 Marks —

PRACTICAL KEY]

1. Step 1 — FOB Value — Free On Board value = price of goods at the port of origin country (before freight and
insurance).

2. Step 2 — ADD: Freight — Cost of transportation of goods from foreign port to Indian port must be ADDED to
FOB value.

3. Step 3 — ADD: Insurance — Insurance cost for transit must be added. If not ascertainable, 1.125% of FOB
value taken.

4. Step 4 = CIF Value — CIF = Cost (FOB) + Insurance + Freight = Assessable Value for Customs duty
calculation.

5. Step 5 — ADD: Landing Charges — 1% of CIF value added as landing charges for unloading goods at
Indian port.

6. Assessable Value = CIF + 1% — Assessable Value = CIF Value + 1% Landing Charges = TOTAL TAXABLE
VALUE.

7. Compute BCD — BCD = Assessable Value × BCD Rate (as per customs tariff).

8. Compute Social Welfare Surcharge — SWS = 10% of BCD (after all exemptions on BCD).

9. Compute IGST — IGST = (Assessable Value + BCD + SWS + AIDC if any) × IGST Rate.

■ MASTER CUSTOMS PRACTICAL FORMAT

Particulars Amount (Rs.) Notes

FOB Value of Goods (given in USD × exchange rate) XX,XXX Starting point

ADD: Freight (actual or 20% of FOB if not given) + X,XXX Capped at 20% of FOB

ADD: Insurance (actual or 1.125% of FOB) + XXX If not given, use 1.125%

= CIF Value (Cost + Insurance + Freight) XX,XXX Also called 'value' under Sec 14

ADD: 1% Landing Charges (always 1% of CIF) + XXX Standard addition

= ASSESSABLE VALUE (Customs Value) XX,XXX THIS is taxable value

ADD: Basic Customs Duty @ ___% on AV + X,XXX BCD = AV × BCD%

ADD: Social Welfare Surcharge @ 10% on BCD + XXX SWS = BCD × 10%

ADD: IGST @ ___% on (AV + BCD + SWS) + X,XXX IGST on cumulative value

= TOTAL DUTY PAYABLE XX,XXX Sum of all duties above

= TOTAL COST TO IMPORTER (AV + All Duties) XX,XXX What importer actually pays
■ UNIT 5 — QUESTIONS & ANSWERS

Q: Mr. Rajesh imports goods from USA. FOB value = USD 10,000. Exchange rate: 1 USD = Rs.83. Air
freight = Rs.1,50,000. Insurance = Rs.20,000. BCD = 10%, SWS = 10% on BCD, IGST = 18%. Calculate
assessable value and total customs duty. [Practical — Assessable Value (12 Marks)]

Ans: STEP 1: FOB Value = USD 10,000 × Rs.83 = Rs.8,30,000 STEP 2: ADD Freight = Rs.1,50,000 STEP 3:
ADD Insurance = Rs.20,000 = CIF Value = Rs.8,30,000 + Rs.1,50,000 + Rs.20,000 = Rs.10,00,000 STEP 4:
ADD Landing Charges @ 1% of CIF = Rs.10,000 = ASSESSABLE VALUE = Rs.10,10,000 DUTY
COMPUTATION: Basic Customs Duty (BCD) @ 10% on AV = Rs.10,10,000 × 10% = Rs.1,01,000 Social
Welfare Surcharge (SWS) @ 10% on BCD = Rs.1,01,000 × 10% = Rs.10,100 IGST Base = AV + BCD + SWS =
Rs.10,10,000 + Rs.1,01,000 + Rs.10,100 = Rs.11,21,100 IGST @ 18% = Rs.11,21,100 × 18% = Rs.2,01,798
TOTAL DUTY = BCD + SWS + IGST = Rs.1,01,000 + Rs.10,100 + Rs.2,01,798 = Rs.3,12,898

Q: Distinguish between Anti-Dumping Duty and Safeguard Duty. [9 Marks — Theory]

Ans: ANTI-DUMPING DUTY: Imposed when foreign exporter sells goods in India below the NORMAL VALUE
(price in their home country). Purpose: prevent injury to Indian industry from unfair trade practice of dumping.
Rate: Margin of dumping (variable). Legal basis: Section 9A Customs Tariff Act. No time limit — continues as
long as dumping continues. SAFEGUARD DUTY: Imposed when there is sudden SURGE in IMPORTS (even at
fair prices) causing serious injury to domestic industry. Purpose: provide breathing space to domestic industry to
adjust. Rate: Specific rate notified. Legal basis: Section 8B Customs Tariff Act. TEMPORARY — levied for
limited period; WTO allows 4 years (extendable).

Q: Explain the concept of Indian Territorial Waters, Indian Customs Waters and Exclusive Economic
Zone. [9 Marks — Theory]

Ans: INDIAN TERRITORIAL WATERS: Area extending 12 nautical miles from the baseline (low water line) of
Indian coast. India has FULL SOVEREIGNTY here — all laws including customs apply completely. INDIAN
CUSTOMS WATERS: Area extending up to 100 nautical miles from the baseline. Customs authorities have
power to board, search and arrest vessels to prevent smuggling even beyond territorial waters. EXCLUSIVE
ECONOMIC ZONE (EEZ): Extends up to 200 nautical miles from baseline. India has exclusive right to explore,
exploit, conserve and manage natural resources. India can also authorize scientific research. HIGH SEAS: Area
BEYOND 200 nautical miles — international waters open to all nations. No country has sovereignty. Goods
purchased on high seas can be brought to India by paying customs duty on arrival.

Q: Mr. X imports machinery from Germany. FOB = Rs.5,00,000. Freight = Rs.50,000. Insurance not
stated. BCD = 7.5%, SWS = 10% on BCD. IGST = 12%. Calculate total customs duty. [Practical —
Without Insurance]

Ans: FOB Value = Rs.5,00,000 ADD: Freight = Rs.50,000 ADD: Insurance @ 1.125% of FOB (not stated — use
standard rate) = Rs.5,00,000 × 1.125% = Rs.5,625 = CIF Value = Rs.5,00,000 + Rs.50,000 + Rs.5,625 =
Rs.5,55,625 ADD: Landing Charges @ 1% of CIF = Rs.5,556 (rounded) = ASSESSABLE VALUE = Rs.5,61,181
(approx.) BCD @ 7.5% = Rs.5,61,181 × 7.5% = Rs.42,089 SWS @ 10% on BCD = Rs.42,089 × 10% =
Rs.4,209 IGST Base = Rs.5,61,181 + Rs.42,089 + Rs.4,209 = Rs.6,07,479 IGST @ 12% = Rs.6,07,479 × 12%
= Rs.72,897 TOTAL DUTY = Rs.42,089 + Rs.4,209 + Rs.72,897 = Rs.1,19,195
■ QUICK REVISION — ALL IMPORTANT NUMBERS &
FACTS

Exam Night Formula Sheet

Topic Key Number/Fact

Registration Threshold — Normal States Goods Rs. 40 Lakhs

Registration Threshold — Normal States Services Rs. 20 Lakhs

Registration Threshold — Special States Goods Rs. 20 Lakhs

Registration Threshold — Manipur, Mizoram, Nagaland, Tripura Rs. 10 Lakhs (both goods & services)

Composition Scheme limit — Goods trader Rs. 1.5 Crore (Rs.75L for special states)

Composition Scheme limit — Services Rs. 50 Lakhs

Composition rate — Trader/Manufacturer 1% (0.5% CGST + 0.5% SGST)

Composition rate — Restaurant 5% (2.5% CGST + 2.5% SGST)

Composition rate — Service provider (Sec 10(2A)) 6% (3% CGST + 3% SGST)

Time to apply for registration (Section 25) Within 30 days of becoming liable

Casual/Non-Resident taxable person registration 5 days before commencing supply

Registration granted if Aadhaar authenticated Within 7 working days

Registration if Aadhaar NOT authenticated Within 30 days (after physical verification)

ITC reversal if payment not made to supplier Within 180 days (with interest @ 18%)

Time limit to issue Tax Invoice — Goods At time of removal/delivery

Time limit to issue Tax Invoice — Services Within 30 days of supply (45 days for banks/NBFCs)

E-Way Bill required when value exceeds Rs. 50,000

E-Way Bill validity — up to 200 km 1 day

GSTR-1 filing date — Monthly 11th of next month

GSTR-3B filing date 20th / 22nd / 24th of next month (based on state)

TDS under GST — Section 51 2% (1% CGST + 1% SGST) on contracts > Rs.2.5 lakh

TCS under GST — Section 52 1% (0.5% CGST + 0.5% SGST) by e-commerce operato

Interest on delayed GST payment 18% per annum

Interest on wrong ITC claim 24% per annum

Customs — Territorial Waters 12 Nautical Miles from baseline

Customs — Indian Customs Waters 100 Nautical Miles from baseline

Customs — Exclusive Economic Zone 200 Nautical Miles from baseline

Customs — Landing Charges 1% of CIF value (always)

Customs — Insurance (if not given) 1.125% of FOB value

Customs — Social Welfare Surcharge 10% of BCD

Online Money Gaming / Casino / Horse Racing GST Rate 28% on face value of bets

GSTIN format 15 digits: State Code(2) + PAN(10) + Entity(2) + Check

Gifts to employees — GST applicable if value exceeds Rs. 50,000 per year per employee

GST Council — voting weight of Centre 1/3rd of total votes cast

GST Council — voting weight of all States combined 2/3rd of total votes cast

GST Council — majority needed for decision 3/4th of weighted votes

101st Constitutional Amendment — year of enactment 2016

GST Implementation date in India 1st July, 2017

Late fee for delay in GSTR-3B (normal return) Rs. 50 per day (capped at Rs.10,000)

Late fee for NIL GSTR-3B Rs. 20 per day (capped at Rs.10,000)
 ■ ITC SET-OFF RULES & CUSTOMS COMPUTATION
FLOWCHART

Visual Reference for Practicals

ITC SET-OFF ORDER — FLOWCHART

ITC TYPE FIRST against THEN against THEN against CANNOT set-off against

IGST ITC IGST Liability CGST Liability SGST Liability —

CGST ITC CGST Liability IGST Liability — SGST Liability

SGST ITC SGST Liability IGST Liability — CGST Liability

UTGST ITC UTGST Liability IGST Liability — CGST/SGST Liability

CUSTOMS DUTY COMPUTATION — STEP BY STEP FLOWCHART

Step Particulars Formula / Note

1 FOB Value Given directly OR USD × Exchange Rate

2 ADD: Freight Actual figure given (sea or air); if not given, add separately

3 ADD: Insurance Actual; if not stated = 1.125% of FOB Value

4 = CIF Value Cost + Insurance + Freight = STEP 1 + STEP 2 + STEP 3

5 ADD: Landing Charges Compulsory 1% of CIF Value (always add)

6 = ASSESSABLE VALUE (AV) CIF + Landing Charges = Taxable base

7 Basic Customs Duty (BCD) AV × BCD Rate%

8 Social Welfare Surcharge (SWS) BCD × 10%

9 Agriculture Infrastructure Dev Cess (AIDC)

AV × AIDC Rate% (if applicable — check question)

10 IGST Base AV + BCD + SWS + AIDC (if any)

11 IGST IGST Base × IGST Rate%

12 GST Compensation Cess (AV + BCD + SWS) × Cess Rate% (for luxury/sin goods)

13 TOTAL CUSTOMS DUTY PAYABLE BCD + SWS + AIDC + IGST + Cess

14 Total Cost to Importer AV + All Duties (Step 13)

 ■ EXAM TIPS & STRATEGY

[Link] Semester VI — DSC 6.3 — GST & Customs Law

✦ EXAM STRATEGY — 12 GOLDEN RULES [Must Read]

1. Read question carefully — Identify whether it's asking for THEORY or PRACTICAL; in practicals, show ALL
steps clearly.

2. Rates are given in exam — Never memorise GST rates for practical — examiner provides them; focus on
computation method.

3. Customs practical format — Always follow: FOB → ADD Freight → ADD Insurance → CIF → ADD 1%
Landing → AV → BCD → SWS → IGST.

4. ITC set-off order is critical — Wrong order = wrong answer. Remember: IGST first against IGST, then
CGST, then SGST.

5. Heading = Half the marks — In pointer answers, if your subheading is correct, examiner gives marks even if
explanation is brief.

6. Case study approach — Identify: Who is supplier? Who is recipient? What is supply? Then apply rules
(RCM, place of supply, composite/mixed).

7. Customs Law 12 marks — Both theory (types of duty, definitions) and one practical on assessable value —
prepare both.

8. Registration practicals — Always compute Aggregate Turnover first (taxable + exempt + exports — but NOT
taxes). Then compare threshold.

9. Composition scheme traps — Cannot make inter-state supply, cannot issue tax invoice, cannot claim ITC
— these are common MCQ/theory traps.

10. RCM time of supply — For goods under RCM: 30 days from date of supply; For services under RCM: 60
days — different timeframes.

11. E-Way Bill validity — 1 day per 200 km or part thereof — for 201 km, validity is 2 days. Common exam
MCQ.

12. 101st Amendment matters — Article 246A (concurrent power), 269A (IGST), 279A (GST Council) — these
article numbers are asked in theory.

All the best for your examination! Remember: GST is logical — understand the concept, not
just memorise.
Syllabus: [Link] DSC 6.3 | University of Delhi | UGCF/NEP | Semester VI