INSTRUCTIONS TO FOLLOW

1. Please take a printout of this material.

2. Please go through the entire material

3. I would like to recommend you to kindly go through the entire material as much as you can.

4. Some parts of the material are interconnected with CGST Act and respective rules of CGST and
IGST.

5. On earlier occasion I have shared a pdf document which consists of GST Act (s) with Rule(s)
Bare Law updated up to Finance Act, 2023. Please refer accordingly.

6. You will find some lines are in bold. Those are main principles.

7. The sub- headings which are highlighted in yellow are part of the syllabus content. The
paragraphs below the yellow sub-headings are explanation to the syllabus.

8. I would like to recommend you, don’t go through this material unless you gave a reading to the
first part and second part in pdf format shared earlier with you.

9. Please keep the class notes alongside for a better understanding.

10. If you have any doubts/clarifications please post your queries in my emailed –
chowdhuryco@[Link] or you can send me watsapp the same number (9831350437).
Further to this you can also call me, for this kindly notify me through watsapp for a convenient
time of discussion.

11. This part has not been discussed in our Class. This will be discussed when you classes resume
after puja holidays.

12. Happy Learning

Nilanjan Chowdhury
[Link] ( Hons. ) . [Link]. MBA ( Finance ). CPMA ( Symbiosis ).
LL.B. LL.M ( Business Laws & Criminal Laws )
Certified in Cyber Laws ( Indian Law Institute, New Delhi )
Certified in Intellectual Property Laws ( Indian Law Institute, New Delhi )
Accounts Officer
University of Kalyani
Kalyani, Nadia
West Bengal - 741235
Tel:- 03325828750 ( Ext:- 244 )
Tel:- 919831350437
 PART – III – INTEGRATED GOODS AND SERVICES ACT,2017
Contents
A. Levy of Tax, Reverse Charge, Tax on E-Commerce, Power to Grant exemption from Tax
B. Inter State & Intra State Supply of Goods and Services, Supplies in Territorial Waters, Place
of Supply, Zero Rated Supply, Deemed export, Refund in case of Zero Rated Supply,
Transfer of Input Tax Credit , Application of Provisions of Central and Goods Services Act.
------------------------------------------------------------------------------------------------------------------------------------------
Introduction:-

Earlier, the States effecting inter-State sale of goods were empowered to collect and retain Central Sales
Tax (CST) under the Central Sales Tax Act, 1956. The difficulties faced in the erstwhile Central Sales Tax
system are: (i) The levy is non-vatable i.e., the credit of CST is not available as a set-off in the hands of
the purchaser. (ii) CST directly gets added to the cost of the goods resulting in cascading effect of the
taxes on the cost of production of products. (iii) Creation of tax arbitrage on account of the rate of CST
being different from VAT levied on intra-State sale. (iv) Several businesses are not in a position to
procure goods in the course of inter-State trade or commerce after concessional rate of tax against the
declaration forms.

To usher in the GST regime, levy of a single tax called Integrated Goods and Services Tax was considered
necessary on the supply of goods or services or both taking place in the course of inter-State trade/
commerce. The rate of tax is equal to the sum total of Central Tax (CGST) and State Tax (SGST) or
Union Territory Tax (UTGST) though there are some cases where more rationalization is required in
terms of parity of net tax incidence. The new legislation, amongst others, broadly: (i) Provides for levy
of tax on all inter-State supplies of goods or services or both (except alcoholic liquor for human
consumption) at a rate recommended by the GST Council (not exceeding 40%); (ii) Provides for levy of
tax on goods imported into India; (iii) Provides for levy of tax on import of services on a reverse
charge basis; (iv) Empowers the Central Government to grant exemptions on the recommendation of
the GST Council; (v) Provides for determination of nature of supply (intra-State or inter-State) and
place of supply (vi) Provides for payment of tax by a supplier of Online Information and Database Access
or Retrieval Services (OIDAR) (vii) Enables apportionment of tax and settlement of funds on account of
transfer of input tax credit between the Central Government, State Government and Union Territory;
(viii) Provides for application of certain provisions of the Central Goods and Services Tax Act, 2017 to the
extent relevant for the purposes of this Act; (ix) Provides for transitional transactions in relation to
import of services.

Provisions of the IGST Act related to registration etc. came into operation through Notification No.
1/2017- Integrated Tax dated 19.6.2017. Further, Notification No. 3/2017-Integrated Tax dt. 28.06.2017
was issued to make other provisions of the IGST Act applicable w.e.f. 1st July. Effectively, all operation
provisions of the IGST Act have become applicable from 1st July 2017. Similar to extending
enforcement of IGST Act, Notification No. 4/ 2017–Integrated Tax dated 28th June, 2017 has been
issued to make Integrated Goods and Services Tax Rules, 2017 applicable w.e.f. 22nd June 2017.
However, IGST Rules, 2017 have been separately notified along with the Central Goods and Services tax
Rules, 2017.
 ---2---

Levy of Tax ( Section – 5 ):-

The Constitution mandates that no tax shall be levied or collected by a taxing Statute except by
authority of law. While no one can be taxed by implication, a person can be subject to tax in terms of
the charging section only. This is the charging provision of the IGST Act. It provides that all inter-State
supplies would be liable to IGST at rate recommended by the Council and notified subject to a ceiling
rate of 40%. The provision of this section is comparable to the provision under section 9 of the CGST
Act and section 7 of the UTGST Act. The levy is on all goods or services or both except alcoholic liquor
for human consumption. Further, GST may be levied in supply of petroleum crude, high spirit diesels,
motor spirit (petrol), natural gas and aviation turbine fuel with effect from the date notified by the
Government on the recommendations of GST Council. The levy of tax on supply of goods and / or
services is in three parts - (i) in the hands of the supplier and (ii) in the hands of the recipient of goods
/ services under reverse charge mechanism and, (iii) in case of specified services, in the hands of
electronic commerce operator.

Levy of tax: Every inter-State supply will be liable to tax, if: (i) There is a Supply either of goods or
services or both, even when a supply involves goods or services or both the law provides that such
supply would be classifiable only as goods or services in terms of Schedule II of the Act. (ii) The supply is
an inter-State supply – viz. ordinarily, the location of the supplier and the place of supply are in different
States.; (iii) The tax shall be payable by a ‘taxable person’ as explained in section 2(107) read with
section 22 and section 24 of the CGST Act. Every inter-State supply falling under section 7 of the IGST Act
will attract IGST, if it gets covered by section 5. This Act provides that IGST shall be levied on import of
goods in terms of section 3 of the Customs Tariff Act, 1975. It implies that on such importation of
goods, IGST will be payable in addition to the Basic Customs Duty (BCD). The proviso to section 5(1) of
the IGST Act also clarifies that the value and point at which IGST would be payable will be determined in
accordance with section 12 of the Customs Act, 1962. The rate of tax notified separately, but shall not
exceed 40%, and the value of supplies would be as determined under section 15 of the CGST Act.

Reverse Charge:-

Normally, the supplier of goods and/ or services will be liable to discharge tax on the supplies effected.
However, the Central Government is empowered to specify categories of supplies in respect of which
the recipient of goods and/ or services will be liable to discharge the tax. Notification No. 4/2017-
Integrated Tax (Rate) dated 28-Jun-17 amended vide Notification No. 37/2017-Integrated Tax (Rate)
dated 13-Oct-17, 2017, Notification No. 45/2017- Integrated Tax (Rate) dated 14-Nov-17 & 10/2017-
Integrated Tax (Rate), dated 28-Jun-17 amended vide Notification No. 34/2017-Integrated Tax (Rate)
dated 13-Oct-17 has been issued to notify the goods and services respectively where tax has to be paid
by recipient of supply under reverse charge mechanism.

Where the supplier is located in one state and the place of supply is in another state, the recipient is
liable to pay IGST showing the correct place of supply. It may be different from the State in which the
recipient is registered. Accordingly, all other provisions of this Act and CGST Act, as applicable, will apply
to the recipient of such goods and/ or services, as if the recipient is the person liable to pay tax in
relation to supply of such goods and/ or services. After the amendment in Section 5(4) of the IGST Act
2017, the liability of reverse charge on the registered recipient on receiving supplies from unregistered
supplier will be applicable only on (a) specified class of registered persons and (b) on specified
categories of goods or services or both.
 ---3---

Tax on E-commerce:

Where any supply of services is effected through e-commerce operator (commonly known as services
provided by aggregator), the law provides that the Central / State Government may on
recommendation of the Council specify (notify) that the e-commerce operator will be liable to
discharge the tax on such supplies. It is important to note that, in such supplies, the e-commerce
operator is neither the actual supplier of service/s nor does he actually receive the services. The actual
supplier of services is a third party who provides such service to the customer through e-commerce
operator. Instead of levying tax on such actual supplier, the law has imposed levy on e-commerce
operator. Therefore, this would be an exception to the imposition of tax. It is important to note that this
exception is carved out only in respect of supply of services through an e-commerce operator and will
not be applicable / relevant to supply of any goods through an e-commerce operator. It is important to
recognize the following aspects about e-commerce operations:
➢ Every online transaction is not e-commerce. It could be a portal providing information online to carry
out the transaction or it could be a online tracking of an offline transaction or it could be a service using
internet;
➢ Supplier offering ‘online channel’ to sell goods or services in addition to offline stores also does not
qualify as e-commerce;
➢ It does not necessarily require a ‘website’ or ‘app’ (application on mobile phones) to constitute e-
commerce, any ‘digital network’ like a easy dial phone number is enough; and
➢ Digital wallets are NOT e-commerce. In fact, most e-wallet companies do not have RBI approval but
work jointly with Payments Banks or (regular) Banks to provide a e-wallet experience where technology
comes from the enterprise and the cash-custody is with the banking license holder (see list on RBIs
website and find names many popular e-wallets missing
[Link]

Utmost care is required to come to conclusion that a given enterprise is an ‘e-commerce’ enterprise.
Notification No. 14/2017-Integrated Tax (Rate) dated 28-Jun-17 amended vide Notification No. 23/2017-
Integrated Tax (Rate) dated 22-Aug-17 has been issued to provide that in case of the following
categories of services, the tax on inter-State supplies shall be paid by the electronic commerce operator.

(i) services by way of transportation of passengers by a radio-taxi, motorcab, maxicab and motorcycle.
Vide Notification No. 17/2021-IT (R) dt. 18.11.2021, Notification No. 14/2017- IT (R) dt. 28.06.2017 has
been amended to the effect that services by way of transportation of passengers by an omnibus or any
other motor vehicle have also been included therein.

(ii) services by way of providing accommodation in hotels, inns, guest houses, clubs, campsites or other
commercial places meant for residential or lodging purposes, except where the person supplying such
service through electronic commerce operator is liable for registration under clause (v) of section 20 of
the Integrated Goods and Services Tax Act, 2017 read with sub-section (1) of section 22 of the said
Central Goods and Services Tax Act.

(iii) services by way of house-keeping, such as plumbing, carpentering etc, except where the person
supplying such service through electronic commerce operator is liable for registration under clause (v) of
section 20 of the Integrated Goods and Services Tax Act, 2017 read with sub-section (1) of section 22 of
the said Central Goods and Services Tax Act.
 ---4---

(iv) A new clause has been inserted in the Notification No. 14/2017-IT(R) dt. 28.06.2017 to include
supply of restaurant service other than the services supplied by restaurant, eating joints etc. located at
specified premises, within the list of services, the tax on which is payable by the electronic commerce
operator. Here, specified premises would mean premises providing hotel accommodation service having
declared tariff of any unit of accommodation above Rs. 7,500 per unit per day or equivalent. In case
where the e-commerce operator: (a) Does not have a physical presence then the person who represents
the e-commerce operator will be liable to pay tax. (b) Does not have a physical presence or a
representative, then the e-commerce operator is mandatorily required to appoint a person who will be
liable to pay tax.

Power to Grant exemption from Tax ( Section – 6 ):-

This provision states that the Central Government may grant exemptions for inter-State supply of
certain goods and/ or services. Reference may also be made to section 11 of the CGST Act.

The Central Government will be empowered to grant exemptions from payment of IGST on inter-State
supplies, subject to the following conditions:
(i) Exemption should be in public interest
(ii) By way of issue of notification
(iii) On recommendation from the Council
(iv) Absolute/ conditional exemption may be for any goods and/ or services
(v) Exemption by way of special order (and not notification) may be granted by citing the circumstances
which are of exceptional nature

Any exemption notification or special order issued under section 11 of the CGST Law will apply equally
for inter-State supplies, viz., any supply of goods or services or both which are exempt under CGST
Law will be exempt even under the IGST Law.

Related Provisions of the Statute:-

Statute Section Description

CGST Section 11 Exemption from payment of CGST/ SGST
UTGST Section 8 Power to grant exemption from tax

Inter-State supply of goods ( Section – 7 ( 1 ) & 7 (2):-

In respect of goods (treated as goods), if the location of the supplier and the place of supply are in two
different States or UT or either, then the supply will be in the course of inter-State trade or commerce
(amongst others).

Subject to the provisions of section 10, supply of goods, where the location of the supplier and the
place of supply are in–– (a) two different States; (b) two different Union territories; or (c) a State and a
Union territory, shall be treated as a supply of goods in the course of inter-State trade or commerce.
(2) Supply of goods imported into the territory of India, till they cross the customs frontiers of India,
shall be treated to be a supply of goods in the course of inter-State trade or commerce.
 ---5---

Inter-State supply of Services ( Section – 7 ( 3 ), 7( 4 ) & 7( 5 ):-

Subject to the provisions of section 12, supply of services, where the location of the supplier and the
place of supply are in––
(a) two different States;
(b) two different Union territories; or
(c) a State and a Union territory, shall be treated as a supply of services in the course of inter-State
trade or commerce.

Supply of services imported into the territory of India shall be treated to be a supply of services in the
course of inter-State trade or commerce.

Supply of goods or services or both, ––

(a) when the supplier is located in India and the place of supply is outside India;
(b) to or by a Special Economic Zone developer or a Special Economic Zone unit; or
(c) in the taxable territory, not being an intra-State supply and not covered elsewhere in this section,
shall be treated to be a supply of goods or services or both in the course of inter-State trade or
commerce

Intra-State supply of goods ( Section – 8 ):-

In relation to goods, section 8 of the IGST Act provides that where the ‘location of the supplier’ and the
‘place of supply’ are in the same State or same UT, such a supply will be treated as an intra-State supply.
Reference may be had with respect to the discussion on location of supplier of goods in the context of
Section 7 of the IGST Act which may be relied upon for the purpose of this discussion. This provision too,
is made subject to the provisions of Section 10, that is, regarding the place of supply, and the conclusion
reached by applying the said provisions is required to be read into this Section for the purpose of
determination of intra-State in nature. The two factors – ‘location of supplier’ and ‘place of supply’ –
must at the conclusion of a supply, be in the same State or UT. And when it is so, the supply would be an
intra-State supply of goods.

For example, a company having its regular registration in Uttar Pradesh has taken a causal registration in
Odisha. It has purchased certain goods in Odisha and supplying the same to the customer also in Odisha
under two separate transactions of supply, both of them will be intra State supplies. Therefore, it is
important to bear in mind that the place of incorporation of the supplier in any transaction relating to
goods is not relevant as the location of the supplier which has been explained earlier as – physical point
where the goods are situated under the control of the distinct person, wherever incorporated or
registered, ready to be supplied. Not only this, three cases have been discussed in the above chapter
wherein the location of supplier of goods may not be the location of supplier (i.e., in-transit sales, sales
on approval or return basis wherein the goods are carried from one state to another and sales from the
port directly without bringing the same to the registered place of business of the importer).
 ---6---

Further, three exceptions have been carved out in this provision to state that a few supplies are to be
treated as inter-state even if the supplier and recipient are in the same state:
(1) supply ‘to’ or ‘by’ a SEZ developer or unit;
(2) supply involving goods imported into India but not beyond the customs frontiers;
(3) supply to outbound tourist in terms of Section 15 of the IGST Act. These three exceptions make it
abundantly clear that they have been treated to be an inter State supply, expressly stated under section
7. This proviso excludes any opportunity to question the probable intra-State nature of the said supply.

Supplies in Territorial Waters ( Section 9 ):-

Notwithstanding anything contained in this Act, ––

(a) where the location of the supplier is in the territorial waters, the location of such supplier; or
(b) where the place of supply is in the territorial waters, the place of supply, shall, for the purposes of
this Act, be deemed to be in the coastal State or Union territory where the nearest point of the
appropriate baseline is located.

GST being a destination-based consumption tax (discussed in greater detail in section 10), the supply
may at times take place in the territorial waters of India, including cases where a supplier is required to
travel into the territorial waters in order to supply goods or services. While the nature of supply in these
cases may be inter-State supplies (in terms of section 7(5)(c) of the IGST Act – residuary clause), by
virtue of this Section, the law provides a deeming fiction to reinstate the steps to be applied in sections
7 and 8 by artificially specifying the location of ‘location of supplier’ and the location of ‘place of supply’.
For this reason, clear provisions are laid down as to where on the land mass of India, the actual location
will be linked to.

Place of supply of goods, other than supply of goods imported into, or exported from India ( Section
10 ):-

(1) The place of supply of goods, other than supply of goods imported into, or exported from India, shall
be as under, –– (a) where the supply involves movement of goods, whether by the supplier or the
recipient or by any other person, the place of supply of such goods shall be the location of the goods at
the time at which the movement of goods terminates for delivery to the recipient;
(b) where the goods are delivered by the supplier to a recipient or any other person on the direction of a
third person, whether acting as an agent or otherwise, before or during movement of goods, either by
way of transfer of documents of title to the goods or otherwise, it shall be deemed that the said third
person has received the goods and the place of supply of such goods shall be the principal place of
business of such person;
(c) where the supply does not involve movement of goods, whether by the supplier or the recipient, the
place of supply shall be the location of such goods at the time of the delivery to the recipient;
(d) where the goods are assembled, or installed at site, the place of supply shall be the place of such
installation or assembly;
(e) where the goods are supplied on board a conveyance, including a vessel, an aircraft, a train or a
motor vehicle, the place of supply shall be the location at which such goods are taken on board.

(2) Where the place of supply of goods cannot be determined, the place of supply shall be determined in
such manner as may be prescribed.
 ---7---

Place of supply of goods imported into, or exported from India ( Section 11 ):-

The place of supply of goods, ––

(a) imported into India shall be the location of the importer;
(b) exported from India shall be the location outside India.

Zero Rated Supply ( Section 16 ):-

(1) “Zero rated supply” means any of the following supplies of goods or services or both, namely: ––
(a) export of goods or services or both; or
(b) supply of goods or services or both 10[for authorized operations] to a Special Economic Zone
developer or a Special Economic Zone unit.

(2) Subject to the provisions of sub-section (5) of section 17 of the Central Goods and Services Tax Act,
credit of input tax may be availed for making zero-rated supplies, notwithstanding that such supply may
be an exempt supply.

(3) A registered person making zero rated supply shall be eligible to claim refund under either of the
following options, namely: ––
(a) he may supply goods or services or both under bond or Letter of Undertaking, subject to such
conditions, safeguards and procedure as may be prescribed, without payment of integrated tax and
claim refund of unutilized input tax credit; or
(b) he may supply goods or services or both, subject to such conditions, safeguards and procedures as
may be prescribed, on payment of integrated tax and claim refund of such tax paid on goods or services
or both supplied, in accordance with the provisions of section 54 of the Central Goods and Services Tax
Act or the rules made there under.

Deemed Exports [ Section 147(39) ]:-

Deemed exports are those supplies of goods that are notified as ‘deemed exports’ where:
(a) The goods supplied do not leave India;
(b) Payment for such supplies is received in Indian Rupees/ Convertible Foreign Exchange; and
(c) Such goods are manufactured in India.

The definition of ‘deemed exports’ under this Act is in line with the definition of ‘Deemed Exports’ under
Chapter 07.01 of the Foreign Trade Policy 2015-20. ‘Deemed Export’ under the FTP 2015- 20 covers
supply of goods to EOU/STP/EHTP/BTP, supply of goods under advance authorization etc. and hence
provides for refund, drawback and advance authorization to the supplier of goods. On the other hand,
the relevance of ‘deemed export’ under the GST laws is limited to the grant of refund of taxes on supply
of goods as ‘deemed export’. Therefore, a provision has been made under the Act to notify certain
transactions as ‘deemed export’ to avoid situations where the persons might claim refund of taxes on
‘deemed export’ defined in the FTP 2015-20. While deemed exports may be notified under section 147,
the nature of benefit available in respect of deemed exports requires a provision in the Act conferring
such entitlement. Section 54 would be the machinery provision for disposal of refund applications. And
deemed exports will not come within the scope of section 54(3).
 ---8---

Refund in case of Zero Rated Supply:-

In the case of zero-rated supply of goods or services or both without payment of tax under bond or
letter of undertaking in accordance with the provisions of sub-section (3) of section 16 of the Integrated
Goods and Services Tax Act, 2017 (13 of 2017), refund of input tax credit shall be granted as per the
following formula – Refund Amount = (Turnover of zero-rated supply of goods + Turnover of zero-
rated supply of services) x Net ITC ÷Adjusted Total Turnover
Where, -
(A) "Refund amount" means the maximum refund that is admissible;
(B) "Net ITC" means input tax credit availed on inputs and input services during the relevant period
other than the input tax credit availed for which refund is claimed under sub-rules (4A) or (4B) or both;
26
(C) “Turnover of zero-rated supply of goods" means the value of zero-rated supply of goods made during
the relevant period without payment of tax under bond or letter of undertaking or the value which is 1.5
times the value of like goods domestically supplied by the same or, similarly placed, supplier, as declared
by the supplier, whichever is less, other than the turnover of supplies in respect of which refund is
claimed under sub-rules (4A) or (4B) or both”;]
(D) "Turnover of zero-rated supply of services" means the value of zero-rated supply of services made
without payment of tax under bond or letter of undertaking, calculated in the following manner,
namely:-
Zero-rated supply of services is the aggregate of the payments received during the relevant period for
zero-rated supply of services and zero-rated supply of services where supply has been completed for
which payment had been received in advance in any period prior to the relevant period reduced by
advances received for zero-rated supply of services for which the supply of services has not been
completed during the relevant period;
(E) “Adjusted Total Turnover” means the sum total of the value of-
(a) the turnover in a State or a Union territory, as defined under clause (112) of section 2, excluding the
turnover of services; and
(b) the turnover of zero-rated supply of services determined in terms of clause (D) above and non-zero-
rated supply of services, excluding-
(i) the value of exempt supplies other than zero-rated supplies; and
(ii) the turnover of supplies in respect of which refund is claimed under sub-rule (4A) or sub-rule (4B) or
both, if any, during the relevant period];
(F) ”Relevant period” means the period for which the claim has been filed.
– For the purposes of this sub-rule, the value of goods exported out of India shall be taken as –
(i) the Free on Board (FOB) value declared in the Shipping Bill or Bill of Export form, as the case may be,
as per the Shipping Bill and Bill of Export (Forms) Regulations, 2017; or
(ii) the value declared in tax invoice or bill of supply, whichever is less.
 ---9---

Transfer of input tax credit ( Section 53 – CGST Act,2017 ):-

On utilisation of input tax credit availed under this Act for payment of tax dues under the Integrated
Goods and Services Tax Act in accordance with the provisions of sub-section (5) of section 49, as
reflected in the valid return furnished under sub-section (1) of section 39, the amount collected as
central tax shall stand reduced by an amount equal to such credit so utilised and the Central
Government shall transfer an amount equal to the amount so reduced from the central tax account to
the integrated tax account in such manner and within such time as may be prescribed.

Under section 49 (5) (b) (c) and (d) of the Act, CGST / SGST / UTGST credits can be utilised by a tax payer
on priority basis to respective CGST / SGST / UTGST dues first. Then, in case of CGST/SGST/UTGST,
balance, if any, can be used to pay IGST. As per section 53, if the amount of CGST is utilized for payment
of IGST, there shall be reduction in CGST, equal to the credit so utilized and the Central Government
shall transfer such amount to IGST account. Such treatment shall be ensured by the Central Government
for UTGST and SGST also in respective cases.

For better clarity, it may please be noted that equivalent provision is there vide section 18 of Integrated
Goods and Services Tax Act 2017. Accordingly, if the amount of IGST is utilized towards CGST / UTGST
liability, there shall be reduction in the amount of IGST equal to the credit so utilised and the Central
Government shall transfer such amount to IGST account. If the amount of IGST is utilized towards SGST
liability, there shall be reduction in the amount of IGST equal to the credit so utilised and such amount
will be apportioned to the appropriate State Government and the Central Government shall transfer the
amount so apportioned to the account of the respective State Government.

Application of provisions of Central Goods and Services Tax Act ( Section – 20 ):-

The following provisions of CGST Act shall apply to IGST Act:

⎯ scope of supply;
⎯ composite supply and mixed supply;
⎯ time and value of supply;
⎯ input tax credit;
⎯ registration;
⎯ tax invoice, credit and debit notes;
⎯ accounts and records;
⎯ returns, other than late fee;
⎯ payment of tax;
⎯ tax deduction at source;
⎯ collection of tax at source;
⎯ assessment;
⎯ refunds;
⎯ audit;
⎯ inspection, search, seizure and arrest;
⎯ demands and recovery;
⎯ liability to pay in certain cases;
⎯ advance ruling;
 ---10---

⎯ appeals and revision;

⎯ presumption as to documents;
⎯ offences and penalties;
⎯ job work;
⎯ electronic commerce;
⎯ transitional provisions; and
⎯ miscellaneous provisions including the provisions relating to the imposition of interest and penalty.

The following exceptions are provided:

(a) In case of TDS (tax deducted at source) the deductor shall deduct tax at the maximum rate of two per
cent from the payment made or credited to the supplier.
(b) In case of TCS (tax collected at source), the operator shall collect tax at such rate not exceeding two
per cent, as may be notified on the recommendations of the Council, of the net value of taxable
supplies.
(c) The value of a supply shall include any taxes, duties, cesses, fees and charges levied under any law for
the time being in force other than this Act, and the Goods and Services Tax (Compensation to States)
Act, if charged separately by the supplier.
(d) In cases where the penalty is leviable under the CGST Act and the SGST Act or the UTGST Act, the
penalty leviable under this Act shall be the sum total of the said penalties.
(e) The maximum amount of pre-deposit in case of filing of appeal has been prescribed as:
i. Rs. 25 crores in case of Appellate Authority
ii. Rs. 50 crores in case of Appellate Tribunal