Provision/Section Description Application/Services

Section 7 of CGST Defines scope of 'supply' including sale, transfer,

All taxable supplies
Act barter, lease, etc.

Section 9 of CGST
Levy and collection of CGST on intra-state supplies All intra-state supplies
Act

Defines ‘services’ – anything other than goods,

Section 2(102) All service categories
money, and securities

Section 12 of IGST Place of supply of services when both supplier and Banking, insurance, telecom, real
Act recipient are in India estate

Section 13 of IGST Place of supply when either supplier or recipient is

Export/import of services, OIDAR
Act outside India

Section 10 of IGST Goods with movement – sale,

Place of supply of goods involving movement
Act delivery

Section 11 of IGST
Place of supply for import/export of goods Goods – import/export
Act

Rule 32 of CGST Valuation methods for forex, banking, insurance

Forex, banking, insurance valuation
Rules services

Deemed supplies – services between

Schedule I Branch-to-branch service, head office
related/distinct persons without consideration

Lists what is considered supply of goods vs.

Schedule II Rent, job work, construction
services

Activities treated as neither supply of goods nor Salaries, court judgments, securities
Schedule III
services trading

Notification Education, healthcare, interest on

Provides exemptions for specific services
12/2017 loans

Clarifies place of supply for banking, telecom, and Banking, telecom, cross-border
Circular 93/12/2019
intermediary services intermediary service

📦 A. Categories of Goods and GST Rates

Category of Goods GST Rate

Essential food items (milk, cereals, fruits) 0%

Packaged food (paneer, curd, butter) 5%

Category of Goods GST Rate

Household items (toothpaste, hair oil) 12%

Industrial inputs and capital goods 18%

Luxury goods (ACs, refrigerators, cars) 28%

Sin goods (tobacco, aerated drinks) 28% + Cess

B. Categories of Services and GST Rates

Category of Services GST Rate

Healthcare and Education (core services) 0% (Exempt)

Public transport (railways, air economy) 5%

Restaurants (non-AC or turnover < ₹50 lakhs) 5% (No ITC)

Hotel stay (₹1000–₹7500 per night) 12–18%

Professional services (CA, legal, IT) 18%

5-star hotels, luxury services 28%

🚫 Exempted Services under GST

1. Healthcare Services

 Services by a clinical establishment, an authorized medical practitioner or para-medics

 Services related to health care like nursing, midwife, ambulance services

 Services by way of transportation of patients in an ambulance

2. Educational Services

 Services provided by an educational institution to its students, faculty, and staff (including pre-school,
school, and higher education)

 Services by way of coaching or training relating to arts, culture, sports, or career

3. Financial Services (Selective)

 Interest on loans, advances, and deposits (including non-performing assets)

 Services by Reserve Bank of India

 Services by way of extending deposits, loans, or advances in so far as they are covered under the
exemption

4. Religious and Charitable Services

 Services by an entity registered under section 12AA of the Income Tax Act (charitable/religious trusts)

 Services by way of charitable activities or religious ceremonies

5. Transport Services

 Transport of goods or passengers by rail or road (local passenger transport by autorickshaw, metro,
bus, etc.)

 Transport of agricultural produce, milk, salt, food grains, pulses, etc.

6. Agricultural Services

 Agricultural services provided by an agricultural expert to the agriculture sector

 Renting of tractors, tillers, harvesters to a cultivator or a processor of agricultural produce

7. Other Exempt Services

 Services of funeral, burial, crematorium, or mortuary including transportation of the deceased

 Services by way of renting of residential dwelling for use as residence

 Services by way of life insurance, risk cover services (with some exceptions)

 Services by way of supply of goods or services by the Government or local authority (excluding
business activities)

Time of supply

Goods- I liked Raju Pandya when he was 31

Services- I proposed Shaki Pandya , when Pandya was 61 in Pakistan England match

1. Time of Supply of Goods

(Section 12 of CGST Act)

Scenario Time of Supply =

Earlier of:
Normal Case ➤ Date of Invoice
➤ Date of Payment Receipt

Earlier of:
Invoice not issued within time ➤ Due Date of Invoice (before/at time of supply)
➤ Date of Payment Receipt

Earlier of:
➤ Date of Receipt of Goods
Reverse Charge Mechanism (RCM)
➤ Date of Payment
➤ 30 days from Supplier's Invoice

Vouchers (identified supply) Date of issue of voucher

Vouchers (not identified) Date of redemption of voucher

Other Cases (residual) Date of entry in recipient's books

🔹 2. Time of Supply of Services

(Section 13 of CGST Act)

Scenario Time of Supply =

Earlier of:
Normal Case ➤ Date of Invoice (issued within 30 days)
➤ Date of Payment Receipt

Invoice not issued within 30 days Date of Payment Receipt

Earlier of:
Reverse Charge Mechanism (RCM) ➤ Date of Payment
➤ 60 days from Supplier's Invoice

Vouchers (identified supply) Date of issue of voucher

Vouchers (not identified) Date of redemption of voucher

Other Cases (residual) Date of entry in recipient’s books

🔹 3. Time of Supply in Continuous Supply Cases

📦 For Goods

(Sec 12):
➡️Time of Supply = Date of issuance of statement of accounts or Date of payment, whichever is earlier.

💼 For Services

(Sec 13):
Depends on contract terms:

Condition Time of Supply =

Due date fixed by contract Due Date of Payment

Due date not fixed Date of Payment Receipt

Payment linked to event completion Date of Completion of Event

🔹 4. Special Notes

 Advance Payment: GST is payable even if only advance is received (except for goods, as per latest
amendment — no GST on advance for goods).

 Time of Supply = Tax Liability arises.

 In case of composite or mixed supplies, apply rules of the principal supply.

Types of Assessment under GST Law

1. Self-Assessment (Section 59)

 Definition: Every registered person calculates tax on their own and files returns.

 Most common type.

  Example: GSTR-1, GSTR-3B filings by a regular taxpayer.

2. Provisional Assessment (Section 60)

 When used: If the taxpayer is unable to determine the correct value of goods/services or applicable
tax rate.

 Procedure:

o Apply to the proper officer.

o Officer allows provisional assessment by issuing an order.

o Final assessment done within 6 months (extendable).

3. Scrutiny Assessment (Section 61)

 When used: The officer examines the returns filed by the taxpayer.

 If any discrepancies are found:

o Notice is issued.

o Taxpayer must respond or correct errors.

o Further action may follow if not resolved.

4. Best Judgment Assessment

➡️Two types:

a) Assessment of Non-filers of Returns (Section 62)

 If a registered person fails to file returns, the officer assesses using best judgment based on available
data.

 Such assessment is withdrawn if return is filed within 30 days.

b) Assessment of Unregistered Persons (Section 63)

 Applied to unregistered persons who are liable to be registered.

 Also used when registration is cancelled but taxable activity continues.

5. Summary Assessment (Section 64)

 Used in urgent cases to protect government revenue.

 Initiated with prior permission of Additional/Joint Commissioner.

 Assessment done without waiting for full proceedings.

✉️What is GST Exemption?

GST exemption means that certain goods or services are not subject to Goods and Services Tax (GST). It can be
based on public interest, essentiality, or government policy. Exemptions are notified under Section 11 of the
CGST Act and Section 6 of the IGST Act.

Key Features:

 No GST is charged on exempt supplies.

 Input Tax Credit (ITC) is not available for exempt supplies.

 Exempt supplies are included in aggregate turnover for registration.

🔢 Types of GST Exemptions

Type of Exemption Description Examples

Absolute
Applies without any condition or threshold. Services by RBI, Blood bank services
Exemption

Conditional Granted only when specified conditions are Hotel tariff < ₹1,000/day, religious
Exemption fulfilled. place rental

Only part of the supply is exempted or threshold- Exempt turnover below ₹20 lakh (in
Partial Exemption
based exemption. some states)

👥 Examples of Exempt Services

Category Description Examples

Government Services Non-commercial sovereign functions Issuance of passport, driving license

Healthcare Services Medical treatment by hospitals/doctors OPD, IPD services, paramedics

Up to higher secondary or recognized

Educational Services Pre-school, school, university education
institutions

Charitable/Religious For specified activities and registered trusts Renting by temples for public, yoga by trust

Transport Non-AC and basic passenger transport Auto rickshaw, inland waterways, metro

Harvesting, loading, warehousing of agri-

Agriculture Related Support activities for cultivation or produce
produce

🏦 Examples of Exempt Goods

Category Goods Reason for Exemption

Food Items Fresh fruits, vegetables, unbranded cereals, milk Basic necessities

Educational Printed books, drawing books Promote literacy and education

Healthcare Human blood, vaccines, contraceptives Public health

Cottage/Handloom Khadi products, handmade textiles Boost rural and traditional industry
Cultural/Religious Idols of deities, rudraksha Religious significance

🔐 Legal Basis of Exemptions

Provision Details

Section 11, CGST Act Empowers government to grant exemption via notification

Section 6, IGST Act Grants central government power to exempt IGST

Notification Based Government issues regular updates with exemption lists

Schedule III, CGST Act Activities not treated as supply (e.g., employee services)

🧲 Schedule III - Not a Supply (Hence, Exempt)

Activity Not Treated as Supply Under GST

Services by employee to employer Employer-employee relationship

Court/Tribunal services Part of judiciary

Sale of land and completed building Not construction service

Funeral, burial, cremation services Respect for customs and traditions

Actionable claims (except lottery, betting) Excluded from GST

⚡ Impact of Exempt Supplies

Criteria Effect

Charging GST Not permitted

Input Tax Credit (ITC) Not available

GST Registration Threshold Exempt supplies included in turnover

GSTR Return Filing Must show exempt supplies in GSTR-1 & 3B

Composite & Mixed Supply Impact Affects classification and applicable rate

📖 Quick Reference Table

Type Taxable? ITC Allowed? Example

Exempt Supply No No Milk, Salt, Charitable education

Nil Rated Supply 0% GST No Sanitary napkins, Footwear < ₹500

Zero Rated Supply 0% GST Yes Exports, Supplies to SEZs

Non-GST Supply Not under GST

The composition levy scheme is an alternative method of GST return filing for small taxpayers with an annual
turnover of less than Rs. 1.5 crore, designed to bring simplicity and reduce compliance costs. It allows
businesses to pay a fixed rate based on turnover instead of regular GST.

more

BLACKBOXAI

Key Features of Composition Levy Scheme:

1. Eligibility: The scheme is available to taxpayers with an annual turnover of less than Rs. 1.5 crore (Rs.
75 lakh for special category states).

2. Tax Rates: The tax rates under the composition scheme are as follows:

 1% for manufacturers and traders

 2% for restaurants and food service providers

 5% for service providers (other than restaurants and food service providers)

3. Return Filing: Taxpayers under the composition scheme need to file a quarterly return (GSTR-4) and
an annual return (GSTR-9A).

4. Input Tax Credit (ITC): Taxpayers under the composition scheme are not eligible to claim ITC on their
purchases.

5. Invoices: Taxpayers under the composition scheme need to issue a bill of supply instead of a tax
invoice.

6. GST Payment: Taxpayers under the composition scheme need to pay GST on a quarterly basis.

Benefits of Composition Levy Scheme:

1. Simplified Compliance: The scheme reduces the compliance burden for small taxpayers.

2. Lower Tax Liability: The scheme provides a lower tax liability for small taxpayers.

3. No Need to Maintain Detailed Records: Taxpayers under the composition scheme do not need to
maintain detailed records of their transactions.

Limitations of Composition Levy Scheme:

1. Restrictions on ITC: Taxpayers under the composition scheme are not eligible to claim ITC on their
purchases.

2. Restrictions on Supply: Taxpayers under the composition scheme cannot make interstate supplies.

3. Restrictions on E-commerce: Taxpayers under the composition scheme cannot supply goods through
e-commerce operators.

📄 TAX INVOICE
Meaning:
A tax invoice is issued by a registered supplier when supplying taxable goods or services. It is the primary
document to claim Input Tax Credit (ITC).

Contents of a Tax Invoice (Rule 46):

 Name, address, and GSTIN of supplier

 Serial number of invoice

 Date of issue

 Name, address, and GSTIN (if registered) of recipient

 HSN Code/SAC of goods/services

 Description of goods/services

 Quantity, rate, value, taxable value

 Tax amounts (CGST, SGST, IGST, Cess)

 Place of suppl y (in case of inter-state supply)

 Signature or digital signature

Time Limits to Issue Invoice:

Type of Supply Time Limit for Invoice

Goods (Normal) Before or at the time of removal/delivery

Goods (Continuous) On or before statement or payment due date

Services Within 30 days from the date of supply

👍 CREDIT AND DEBIT NOTES

Credit Note:
Issued by the supplier when:

 Value of supply decreases

 Tax charged was higher than actual

 Goods returned by recipient

Debit Note:
Issued by the supplier when:

 Value of supply increases

 Tax charged was lower than actual

Declaration in GSTR:

 Must be reported in return of the month in which they are issued

 Cannot be reported after September following the financial year or the date of annual return
(whichever is earlier)
🚌 E-WAY BILL

Meaning:
An electronic document generated for movement of goods valued above ₹50,000.

Applicability:

 Inter-state and intra-state movement of goods

 Compulsory when goods move by road, rail, air, or vessel

Who should Generate:

 Registered person causing movement

 Transporter (if unregistered)

 E-commerce operator (in some cases)

Contents:

 Part A: Details of supplier, recipient, goods, invoice

 Part B: Vehicle details (to be filled before movement)

Validity:

 Up to 100 km: 1 day

 For every additional 100 km or part: +1 day

📊 RETURNS UNDER GST

Return Form Purpose Frequency Applicability

GSTR-1 Details of outward supplies Monthly Registered normal taxpayers

GSTR-3B Summary of outward, ITC, tax liability Monthly All regular taxpayers

GSTR-4 Return for Composition Scheme Quarterly Composition dealers

GSTR-5 Return for Non-Resident Taxable Persons Monthly Non-resident taxpayers

GSTR-6 Return for Input Service Distributors (ISD) Monthly ISD-registered persons

GSTR-7 TDS Return Monthly TDS deductors

GSTR-8 TCS Return Monthly E-commerce operators

GSTR-9 Annual Return Annually Registered persons (except few)

GSTR-9C Audit Reconciliation Statement Annually Taxpayers > ₹2 Cr turnover (if applicable)

💳 PAYMENT OF TAXES

Who Needs to Pay:

  All registered taxpayers

 Under forward charge, reverse charge, or composition scheme

Modes of Payment:

 Online: Internet banking, credit/debit cards

 Offline: Over-the-counter (for amount < ₹10,000)

 NEFT/RTGS through authorized banks

Electronic Ledgers:

Ledger Type Purpose

Electronic Cash Ledger For tax payment (deposit-based)

Electronic Credit Ledger For claiming ITC

Electronic Liability Ledger To view tax payable and due

🪙 TAXABILITY OF E-COMMERCE

E-commerce Operator (ECO):

A person who owns/operates/manages digital platforms for supply of goods/services.

Tax Provisions:

1. TCS (Tax Collected at Source)

o ECO must collect TCS @1% (0.5% CGST + 0.5% SGST or 1% IGST)

o Applies when ECO collects payment on behalf of sellers

2. Compulsory Registration:

o Every ECO and supplier selling through ECO (if not covered under exemption)

3. Supply Liability in Certain Cases:

o ECO liable to pay GST in specified services (e.g., ride-hailing, housekeeping)

4. Returns by ECO:

o File GSTR-8 (monthly TCS return)

Examples of ECO: Amazon, Flipkart, Uber, Swiggy

Let me know if you need diagrams, flowcharts, or revision flashcards for any of these topics!

Provisions in Respect of E-Way Bills:

E-way bills are electronic documents that are required to be generated for the movement of goods worth more
than Rs. 50,000. The provisions in respect of e-way bills are as follows:

1. Generation of E-Way Bill: The e-way bill is generated on the GST portal by the supplier or the
transporter.

2. Information Required: The e-way bill requires the following information:

  GSTIN of the supplier and the recipient

 Invoice number and date

 Value of the goods

 HSN code of the goods

 Vehicle number

3. Validity of E-Way Bill: The e-way bill is valid for a period of 1 day for a distance of up to 100 km and 15
days for a distance of more than 100 km.

4. Verification of E-Way Bill: The e-way bill can be verified by the tax authorities during the movement of
goods.

5. Penalty for Non-Compliance: A penalty of Rs. 10,000 or the tax due, whichever is higher, is payable for
non-compliance with the e-way bill provisions.

Provisions with Respect to Taxability of E-Commerce:

The provisions with respect to taxability of e-commerce are as follows:

1. Definition of E-Commerce: E-commerce means the supply of goods or services or both, including
digital products, over digital or electronic network.

2. Taxability of E-Commerce: E-commerce transactions are taxable under GST.

3. Registration Requirements: E-commerce operators are required to register under GST if their
aggregate turnover exceeds Rs. 20 lakh.

4. Tax Collection at Source (TCS): E-commerce operators are required to collect TCS at the rate of 1% on
the net value of taxable supplies made through their platform.

5. Return Filing: E-commerce operators are required to file returns on a monthly basis.

6. GST Rates: GST rates applicable to e-commerce transactions are the same as those applicable to
similar transactions in the physical market.

Taxability of E-Commerce Transactions:

The following e-commerce transactions are taxable under GST:

1. Supply of Goods: Supply of goods through e-commerce platforms is taxable under GST.

2. Supply of Services: Supply of services through e-commerce platforms is taxable under GST.

3. Digital Products: Supply of digital products, such as e-books, music, and software, is taxable under
GST.

Who Needs to Details to be

Return Frequency Due Date
File Reported

All registered Outward supplies,

taxpayers 11th of HSN codes, taxable
GSTR-1 Monthly
(except comp. next month value, and tax
scheme) amounts

GSTR-2A Auto- Monthly Auto- Inward supplies

 Who Needs to Details to be
Return Frequency Due Date
File Reported

generated for (view-only), HSN

all registered generated codes, taxable
taxpayers value, tax amount

Inward supplies,
Auto-
HSN code, taxable
generated for Auto-
GSTR-2B Monthly value, tax amount,
all registered generated
and Input Tax
taxpayers
Credit (ITC)

Summary of
outward/inward
All registered 20th of
GSTR-3B Monthly supplies, ITC
taxpayers next month
claimed, tax
payable and paid

18th of the Outward/inward

Composition
month supplies, tax
GSTR-4 Scheme Quarterly
after liability, and tax
taxpayers
quarter paid

31st Dec of
All regular Consolidated data
next
GSTR-9 registered Annually of all supplies, ITC,
financial
taxpayers and tax paid
year

Composition 31st Dec of

Summary of returns
taxpayers next
GSTR-9A Annually filed by composition
(now merged financial
taxpayers
with GSTR-4) year

31st Dec of Reconciliation

Taxpayers with
next statement between
GSTR-9C turnover Annually
financial GSTR-9 and audited
above ₹2 crore
year accounts

Taxpayers
13th of the Summary return
under QRMP
month with details of
QRMP scheme Quarterly
after outward/inward
(turnover < ₹5
quarter supplies and ITC
Cr)

Section 13(3) to 13(13) — Time of

Supply under GST

Section 13(3) - Time of Supply of Goods

(Special Cases)

 If goods are sent or transported

 Who Needs to Details to be
Return Frequency Due Date
File Reported

by supplier before receipt of

payment or invoice:

o Time of supply = Earlier

of:

 Date of removal
of goods, or

 Date of receipt
of payment

Section 13(4) - Time of Supply in case of

continuous supply of goods

 For continuous supply contracts

(e.g., electricity, gas, water):

o Time of supply = Date of

issue of invoice or last
date of receipt of
payment, whichever is
earlier

o If invoice not issued and

payment not received,
then due date of
payment

Section 13(5) - Time of Supply of

Services (General Rule)

 Time of supply = Earlier of:

o Date of issue of invoice,

or

o Date of receipt of
payment

Section 13(6) - Time of Supply of

Services where invoice not issued

 If invoice not issued within

prescribed time (usually 30 days
from supply), time of supply =
 Who Needs to Details to be
Return Frequency Due Date
File Reported

Date of receipt of payment

Section 13(7) - Time of Supply for

continuous supply of services

 Time of supply = Date of invoice

or due date of payment or date
of receipt of payment,
whichever is earliest

Section 13(8) - Time of supply in case of

supply involving related persons

 Where supplier and recipient

are related and invoice not
issued within prescribed time,
time of supply = Date of
payment or due date of
payment, whichever is earlier

Section 13(9) - Time of Supply where

goods sent on approval or sale or return
basis

 Time of supply = Earliest of:

o Date when goods

accepted by recipient,

o Date when goods are

withdrawn by supplier,

o Expiry of approval
period,

o Date of payment

Section 13(10) - Time of Supply where

advance payment received

 Time of supply = Date of receipt

of advance payment
 Who Needs to Details to be
Return Frequency Due Date
File Reported

Section 13(11) - Rules for determining

Time of Supply when there is change in
rate of tax

 Time of supply = Date on which

invoice is issued or payment is
received, whichever is earlier

Section 13(12) - Adjustment of tax rate

change

 If invoice issued after rate

change but payment received
before rate change, or vice
versa, time of supply follows
earlier date

Section 13(13) - Other provisions related

to time of supply

 If supplier fails to issue invoice

or recipient fails to pay within
prescribed period, time of
supply shall be date on which
invoice is issued or payment is
made, whichever is earlier