GST Amendments for May’24

Applicability:- These amendments are to be studied by students who have taken our CA Inter Batch by CA
Sahil Jain for N’23 CA Exams or for any of the earlier CA Exams. All of these amendments are already
covered in our M’24 and onwards batches and need not be studied separately by students of those
batches.

² Ch 1:- Introduction
1) Features of Indirect Taxes:- (Entire point deleted from syllabus)
A) An important source of revenue:-
Indirect taxes are a major source of tax revenues for Governments worldwide and continue to
grow as more countries move to consumption-oriented tax regimes. In India, indirect taxes
contribute MORE THAN 50% of the TOTAL tax revenues of Central and State Governments.
B) Tax on commodities and services:-
It is levied on commodities AT the time of supply or manufacture or purchase or sale or
import/export thereof. Hence, it is also known as COMMODITY TAXATION. It is ALSO levied on
supply of Services.
C) Shifting of burden:-
There is a clear shifting of tax burden in respect of indirect taxes. For example, GST which is PAID
BY the supplier of the goods is RECOVERED FROM the buyer by including the tax in the cost of the
commodity.
D) No perception of direct pinch:-
Since value of indirect taxes is generally INBUILT in the price of the commodity, most of the time
the tax payer/consumer pays the same WITHOUT actually knowing that he is paying tax to the
Government. Thus, tax payer does not perceive a DIRECT Pinch while paying indirect taxes.
E) Inflationary:-
Tax imposed on commodities and services causes an all-round price spiral. In other words, indirect
taxation DIRECTLY affects the prices of commodities and services and leads to INFLATIONARY
trend(i.e. Increases Prices).
F) Wider tax base:-
Unlike direct taxes, the indirect taxes have a wide TAX BASE(i.e. No. of People bearing these type of taxes is more).
MAJORITY of the products or services are subject to indirect taxes with low exemption thresholds.
G) Promotes social welfare:-
Higher taxes are imposed on the consumption of HARMFUL products (also known as ‘sin goods’)
such as alcoholic products, tobacco products etc. This not only checks their consumption but ALSO
enables the State to collect substantial revenue.
H) Regressive in nature:-
Generally, the indirect taxes are regressive in nature. The rich and the poor have to pay the SAME
RATE of indirect taxes on certain commodities of mass consumption. This may further INCREASE
the INCOME DISPARITIES between the rich and the poor.
2) Article 248 amended: Residuary powers of legislation amended (Newly added in syllabus)
Article 248 grants the RESIDUARY powers to Parliament to make laws with respect to any matter NOT
enumerated in the “Concurrent List or State List”. Such power shall INCLUDE the power of making any
law imposing a tax NOT mentioned in either of those Lists.

GST Amendments by CA Sahil Jain 1

 This article has been amended. Now, this power has been subjected to Article 246A, NAMELY the
power to make laws with respect to “goods and service tax” to be imposed by the Centre and States.
3) Power of Parliament to legislate with respect to a matter in the State List, in the national interest/in
case of emergency, extended to GST provided under Article 246A:- (Newly added in syllabus)
A) Article 249 grants the PARLIAMENT the power to make laws with respect to a matter in the “STATE
list” in NATIONAL INTEREST in a case where the Council of States has declared by resolution
supported by NOT LESS THAN two-thirds of the members present and voting on ANY matter
enumerated in the State List.
B) Similarly, Article 250 grants the PARLIAMENT the power to make laws with respect to ANY of the
matters enumerated in the “STATE List” if a proclamation of EMERGENCY is in operation.
C) Articles 249 and 250 have been AMENDED to grant power to PARLIAMENT to make laws with
respect to the Goods and Services Tax provided under Article 246A also ALONG WITH the matters
in the State list, in the NATIONAL INTEREST/in case of EMERGENCY.
4) Article 268: Duties levied by the Centre but collected and appropriated by the States (Newly added in
syllabus)

Article 268 pertains to the duties levied by the Centre but collected and appropriated by the States. It
stipulates that “such stamp duties” and “such duties of excise on medicinal and toilet preparations” as
are mentioned in the Union List shall be LEVIED BY the Government of India but shall be COLLECTED in
the case where such duties are leviable within any Union territory, by the Government of India, and in
other cases, by the States within which such duties are respectively leviable.

The CAA omits “and such duties of excise on medicinal and toilet preparations” from Article 268.

Duties of excise on medicinal and toilet preparations have been SUBSUMED into the goods and service
tax to be levied by the Centre and States.
5) Article 268A: Article 268A empowering Union to levy service tax omitted (Newly added in syllabus)
Service tax was levied in 1994 under the residual Entry 97 of the Union list. Article 268A was inserted
by the Constitution (88th) Amendment Act, 2003 to usher in service tax under a separate entry 92C in
the Union List. However, it was not notified ever since. This article has been OMITTED by the CAA.
6) Article 270: Distribution of the goods and services tax (GST) between the Centre and the States(Newly
added in syllabus)

Article 270 is amended to provide for DISTRIBUTION of the GST between the Centre and the States, by
order of the President AFTER considering recommendations of the Finance Commission.

This applies for THOSE tax amounts apportioned or payable TO the CG for taxes levied by it under
articles 246A(1) and (2) and Clause (1) of 269A.
7) Article 271 amended:- (Newly added in syllabus)
Article 271 empowers Parliament to INCREASE any of the duties, or taxes referred to in articles 269 or
270. It further provides that SUCH surcharge is NOT SHAREABLE and remains with the Centre. Now
this article is AMENDED to exclude GST from its purview.
8) Article 286: Article 286 imposing restrictions as to imposition of tax on the sale or purchase of goods
amended (Newly added in syllabus)
Article 286 which RESTRAINS the States from framing laws for imposition of ANY tax on the sale or
purchase of goods where such sale or purchase takes place “OUTSIDE the State” OR “in course of the
IMPORT of the goods into, or EXPORT of the goods out of, the territory of India”.

GST Amendments by CA Sahil Jain 2

 This article has been AMENDED to incorporate the changes arising out of GST by substituting the
words “sale or purchase” with “supply” and words “goods” with “goods or services or both”.

Consequently, States have NO RIGHT to impose GST on INTER-State supply of goods or services or
both. It will be levied by Union Government under Article 269A as mentioned earlier.

Further, clause (3) of Article 286 which stipulates that ANY law of a State shall, in so far as it imposes,
or authorises the imposition, of a tax on the sale or purchase of goods DECLARED BY Parliament by law
to be of SPECIAL IMPORTANCE in inter-State trade or commerce, be subjected to SUCH restrictions
and conditions in regard to the system of levy, rates and other incidents of the tax, as Parliament may,
by law, specify, has been OMITTED.(Hence, Parliament cannot declare any good to be of special importance to impose restrictions or
conditions on their taxation)

9) Article 279A of the Constitution of India:- (Substituted in syllabus with addition of certain content in this specific Article)
A) Article 279A of the Constitution empowers the PRESIDENT to constitute a JOINT forum of the
Centre and States namely, “Goods & Services Tax Council (GST Council)”.
B) The provisions relating to GST Council came into force on 12th September, 2016. President
constituted the GST Council on 15th September, 2016.
C) The GST Council shall consist of the following members, NAMELY:-
i) the Union Finance Minister is the Chairperson;
ii) the Union Minister of State in charge of Revenue or Finance is the Member;
iii) the Minister in charge of Finance or Taxation or any other Minister nominated by EACH State
Government are the Members.
D) The Members of the GST Council referred to clause (c) above shall, as soon as may be, CHOOSE
one amongst themselves to be the Vice- Chairperson of the Council for such period as they may
decide.
E) The GST Council SHALL make recommendations to the Union and the States on:-
i) the taxes, cesses and surcharges levied by the Union, the States and the local bodies which
may be subsumed in the GST;
ii) the goods and services that may be subjected to, or exempted from the goods and services
tax;
iii) model Goods and Services Tax Laws, principles of levy, apportionment of GST levied on
supplies in the course of inter-State trade or commerce under article 269A and the principles
that govern the “place of supply”;
iv) the threshold limit of turnover below which goods and services may be EXEMPTED from goods
and services tax;
v) the rates including floor rates with bands of goods and services tax;
vi) any special rate or rates for a specified period, to raise ADDITIONAL resources during any
natural calamity or disaster;
vii) special provision with respect to the States of “Jammu and Kashmir, Nagaland, Arunachal
Pradesh, Manipur, Meghalaya, Uttarakhand, Mizoram, Assam, Tripura, Himachal Pradesh and
Sikkim [Such States are referred as Special Category States]; AND
viii) any OTHER matter relating to the goods and services tax, as the Council may decide.

GST Amendments by CA Sahil Jain 3

 F) GST Council shall recommend the date on which the GST be levied ON petroleum crude, high
speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel.
G) While discharging the functions conferred by THIS article, the GST Council shall be guided by the
need for a harmonised structure of goods and services tax and for the development of a
harmonised national market for goods and services.
H) One-half of the total number of Members of the GST Council shall constitute the QUORUM at its
meetings.
I) The GST Council shall determine the PROCEDURE in the performance of its functions.
J) Every decision of the GST Council shall be taken at a meeting, by a majority of NOT LESS THAN
three-fourths of the WEIGHTED votes of the members present and voting, in accordance with the
following principles, NAMELY:-
i) the vote of the CG shall have a weightage of one-third of the “total votes cast”, AND
ii) the votes of ALL the State Governments taken TOGETHER shall have a weightage of two-thirds
of the “total votes cast”, in THAT meeting.
K) No act or proceedings of the GST Council shall be INVALID merely by reason of:-
i) any vacancy in, or any defect in, the constitution of the Council; or
ii) any defect in the appointment of a person as a Member of the Council; or
iii) any procedural irregularity of the Council not affecting the merits of the case.
L) The GST Council shall establish a mechanism to adjudicate any dispute:-
i) between the Government of India and one or more States; or
ii) between the Government of India and any State or States on one side and one or more other
States on the other side; or
iii) between two or more States, arising out of the recommendations of the Council or
implementation thereof.
10) Article 368 amended:- (Newly added in syllabus)
Article 368 has been amended to include Article 279A also within its purview. Consequently, AT LEAST
two-thirds of the majority in EACH House of the Parliament and ratification by AT LEAST half of the
States is specifically required to make ANY amendment in Article 279A relating to GST Council.
11) Benefits of GST:- (While the headings are largely still the same, the content has been tweaked a little)
A) Benefits to the Economy:-
i) Creation of unified national market:-
GST aims to make India a COMMON market with COMMON tax rates and procedures and
remove the “economic barriers(Different prices in different states ON ACCOUNT OF taxes)” thus paving the way
for an integrated economy at the national level.
ii) Boost to ‘Make in India' initiative:-
GST gives a major boost to the ‘Make in India' initiative of the Government of India by making
goods and services produced in India price-competitive in the national as well as international
market. Further, all imported goods are being charged integrated tax (IGST) which is more or
less equivalent to CGST + SGST. This brings parity in taxation on local and imported goods or
services.

GST Amendments by CA Sahil Jain 4

 iii) Enhanced investment and employment:-
The subsuming of major Central and State taxes in GST, complete and comprehensive set-off
of input tax on goods and services AND phasing out of Central Sales Tax (CST) reduces the
COST of locally manufactured goods and services and increases the competitiveness of Indian
goods and services in the international market and thus, gives boost to investments and Indian
exports. With a boost in exports and manufacturing activity, more employment will be
generated and GDP will increase.
B) Simplified tax structure:-
i) Ease of doing business:-
Simpler tax regime with fewer exemptions ALONG WITH reduction in multiplicity of taxes
under GST has led to simplification and uniformity in tax structure. The uniformity in laws,
procedures and tax rates ACROSS the country makes doing business easier. Common
definitions, common forms/ formats, common interface through GST portal result in
efficiencies and synergies across the board.
ii) Certainty in tax administration:-
Common procedures for registration of taxpayers, refund of taxes, uniform formats of tax
return, common tax base, common system of classification of goods or services along with
timelines for every activity ensures CERTAINTY in tax administration ACROSS India.
C) Easy tax compliance:-
i) Automated procedures with greater use of IT:-
GST is largely technology driven. The INTERFACE of the taxpayer with the tax authorities is
through the common portal (GSTN). There are simplified and automated procedures for
various processes SUCH AS registration, returns, refunds, tax payments. All processes, like
applying for registration, filing of returns, payment of taxes, filing of refund claims etc., are
ONLINE through GSTN. The human interface between the taxpayer and the tax administration
has greatly REDUCED thereby leading to speedy decisions. The measures like e-Invoice and
auto populated returns has eased the compliance for the registered person.
ii) Easier tax compliance:-
HARMONIZATION of laws, procedures and rates of tax has made compliance easier and simple.
There are common definitions, common forms/ formats, common interface through common
portal (GSTN) resulting in efficiencies and synergies across the board. All this has also helped in
reduction in compliance costs, alleviate the need for multiple record keeping for a variety of
taxes leading to lesser investment of resources and manpower in maintaining records to the
registered person.
D) Advantages for trade and industry:-
i) Benefits to industry:-
Average tax burden on trade and industry has come down, which has resulted in reduction in
prices of goods and services. This has resulted in more consumption, which in turn means
more production and thereby boosting the growth of the industries.
ii) Mitigation of ill effects of cascading:-
GST is a destination-based consumption tax. It has been designed in a manner so that tax is
collected at every stage and the credit of tax paid at the previous stage is available to set off
the tax to be paid at the next stage of transaction.

This eradicates “tax on tax” and allows cross utilization of input tax credits which benefit the
industry by making the entire supply chain tax neutral. Thus, GST prevents cascading of taxes

GST Amendments by CA Sahil Jain 5

 by providing a comprehensive input tax credit mechanism across the entire supply chain.

Such a seamless availability of input tax credit across goods or services at every stage of supply
helps in mitigating the ill effects of cascading, enables streamlining of business operations,
improving competitiveness in the markets in India and across globe.
iii) Benefits to small traders and entrepreneurs:-
GST has increased the threshold limit for GST registration for small businesses. Small
businesses have also been provided the benefit of composition scheme. With the creation of a
seamless national market across the country, small enterprises will have an opportunity to
expand their national footprint with minimal investment.

² Ch 2:- Supply under GST

1) Non-taxable territory [Section 2(79)]:- (Newly added in syllabus)
It means the territory which is OUTSIDE the taxable territory.
2) Section 7(1)(aa):- (Newly added part is highlighted in Red)
Supply INCLUDES Activities or transactions, BY a “person, OTHER THAN an individual”, TO its members
or constituents OR vice-versa, for cash, deferred payment or other valuable consideration.

Further, EXPLANATION to section 7(1)(aa) clarifies that, NOTWITHSTANDING anything contained in

ANY other law for the time being in force or ANY judgment, decree or order of any court, tribunal or
authority, the “person/ its members/ constituents” shall be DEEMED to be two SEPARATE persons and
the supply of activities/ transactions INTER SE shall be DEEMED to take place from one person to
another. This explanation prevents the use of “doctrine of mutuality” by such person(s) to avoid GST
liability.
3) Tax liability on composite and mixed supplies [Section 8]:- (Newly added part is highlighted in Red)
This section helps find the GST RATE at which a supply is taxable when “MULTIPLE supplies subject to
different GST Rates” are supplied together for a SINGLE Consideration.
A) Composite Supply [Section 8(a)]:-
i) What is a Composite Supply?
a) As per Section 2(30), a COMPOSITE supply MEANS a supply which satisfies ALL of the
following:-
> It is made BY a “taxable person[Defined u/s 2(107)]” TO a recipient;
> It comprises two or more TAXABLE supplies of “goods OR services OR both, OR any
combination thereof”;
> The supplies are “NATURALLY bundled” and “supplied IN CONJUNCTION with each
other”, IN the ORDINARY course of business; AND
> ONE of the supplies is a “PRINCIPAL supply”.
b) As per Section 2(90), “PRINCIPAL Supply” MEANS the supply of goods or services which:-
> Constitutes the PREDOMINANT element of a COMPOSITE supply; AND
> To which any OTHER supply forming part of that composite supply is ANCILLARY.
ii) How to determine WHETHER the goods/services are bundled in the ORDINARY Course of
business?
Some indicators of the same are discussed below:-

GST Amendments by CA Sahil Jain 6

 a) If LARGE number of service RECIPIENT of such bundle of services REASONABLY Expect such
services to be provided as a package, then such a package could be treated as NATURALLY
bundled in the ORDINARY course of business. (Eg:- Sale of Mobile WITH Battery)
b)
MAJORITY of Service PROVIDERS in a “particular area of business” provide SIMILAR BUNDLE
of services. (Eg:- Bundle of services of catering on board and services of transport by air is a bundle offered by a MAJORITY of
airlines)

c) The NATURE of the various services in a bundle of services will also help in determining
whether the services are bundled in the ordinary course of business. If the nature of
services is such that ONE of the services is the MAIN service and the OTHER services
COMBINED WITH such service are in the nature of INCIDENTAL or ANCILLARY services which
help in better enjoyment of a main service. (Eg:- Service of “stay in a hotel” is often combined with “provision of
breakfast and dinner provided free of cost during the stay”)

d) Other ILLUSTRATIVE indicators, NOT DETERMINATIVE but indicative of bundling of services

in the ORDINARY course of business are:-
> There is a single price or the customer pays the same amount , no matter how much of
the package they actually receive or use.
> The elements are normally ADVERTISED as a package;
> The different elements are NOT available SEPARATELY;
> The different ELEMENTS are INTEGRAL to one OVERALL SUPPLY. If one or more is
removed, the NATURE of the supply would be affected.
Note:- No straight jacket FORMULA can be laid down to determine WHETHER a service is
naturally bundled in the ordinary course of business. EACH case has to be INDIVIDUALLY
examined in the backdrop of several factors SOME of which are outlined above.
e) Some more examples of COMPOSITE Supplies are given below:-
> Works Contract Service (Here, “Works Contract Service” is considered a SEPARATE service in itself as per Schedule II of
CGST Act and is subjected to a separate rate specified for this service. Hence, no need to apply Section 8 for this bundle.)

> Restaurant Service (Here, “Restaurant Service” is considered a separate SERVICE in itself as per Schedule II of CGST Act and
is subjected to a separate rate specified for this service. Hence, no need to apply Section 8 for this bundle.)

> Supply of readymade shirts in designer boxes along with service of transportation and in-
transit insurance (Here, Supply of shirt is the Principal Supply)
> Supply of a TV with warranty and maintenance contract (Here, Supply of TV is the Principal Supply)
> Sale of flight ticket along with service of food being served on board, free insurance, and
the use of airport lounge (Here, Transportation of Passenger is the Principal Supply)
f) With respect to certain supplies, CBIC has, through various Circulars, CLARIFIED as to what
constitutes the PRINCIPAL supply in the given COMPOSITE supplies:-
> In the case of PRINTING of “books, pamphlets, brochures, annual reports, and the like”,
where ONLY CONTENT is SUPPLIED BY the “publisher OR the person who owns the usage
rights to the intangible inputs” while the “PHYSICAL INPUTS including Paper used for
printing” BELONG TO the printer, Supply of PRINTING [of the content supplied by the
recipient of supply] is the PRINCIPAL supply and therefore such supplies would constitute
supply of SERVICE.

GST Amendments by CA Sahil Jain 7

 > In case of supply of “printed envelopes, letter cards, printed boxes, tissues, napkins, wall
paper etc.” by the printer using its “PHYSICAL INPUTS including paper” to print the
“design, logo etc. SUPPLIED BY the recipient of goods”, PREDOMINANT supply is supply
of GOODS and the supply of PRINTING of the content [supplied by the recipient of
supply] is ANCILLARY to the principal supply of goods and therefore such supplies would
constitute supply of GOODS.
> In case of FOOD supplied to the in-patients as advised by the doctor/nutritionists is a
part of COMPOSITE supply of health care and NOT separately taxable. Other supplies of
food by a hospital to patients (not admitted) or their attendants or visitors are TAXABLE.
> In case of the activity of BUS BODY BUILDING, the principal supply may be determined on
the basis of facts and circumstances of EACH case.
> In case of the activity of Retreading of “Tyres belonging to Recipient”, PREDOMINANT
element is process of retreading which is a supply of SERVICE. Rubber used for
retreading is an ANCILLARY supply.

Supply of “RETREADED tyres”, where the OLD tyres BELONG TO the “supplier of
retreaded tyres”, is a supply of GOODS.

“Retread tyres” are REVAMPED tyres on which the worn out tread (the part of the tire
that makes contact with the surface of the road) is REPLACED using new tread.
iii) What is the Tax liability in the case of a COMPOSITE Supply?
As per Section 8(a), a “COMPOSITE supply(defined above)” comprising TWO OR MORE supplies,
ONE of which is a “PRINCIPAL supply(defined above)”, SHALL be treated as a supply of SUCH
Principal supply.

Accordingly, the ENTIRE value of “COMPOSITE supply” [i.e. main supply + ancillary supply(ies)]
SHALL be classified under the category of MAIN Supply and shall be taxed at the “GST rate
applicable to the MAIN supply”.

Eg:- If laptop (worth Rs. 52,000) is supplied with laptop bag (worth Rs. 3,000) to a customer for
a SINGLE Price of Rs.55,000. Being NATURALLY bundled, supply of laptop bag along with the
laptop is COMPOSITE supply which is TREATED AS the supply of the PRINCIPAL supply, i.e.
laptop. ASSUMING that the RATE of tax applicable on laptop is 18% and on laptop bag is 28%,
in the given case, rate of PRINCIPAL supply, i.e. laptop @ 18% will be charged on the ENTIRE
value of Rs. 55,000.

However, if the supplier indicates the price of laptop and bag SEPARATELY, then Rs. 52,000 will
be taxed @ 18% and 3,000 will be taxed @ 28%.

² Ch 3:- Charge of GST

1) Electronic Commerce [Section 2(44)]:- (Newly added in syllabus)
It MEANS the supply of goods or services or both including digital products OVER digital or electronic
networks.
2) Electronic Commerce Operator [Section 2(45)]:- (Newly added in syllabus)
It MEANS any person who “owns, operates or manages” a digital or electronic facility or platform for
electronic commerce.
3) Service by way of Renting of Motor Vehicle [Entry 15]:- (Newly added part is highlighted in Red)
Reverse Charge is applicable if ALL of the following are satisfied:-
GST Amendments by CA Sahil Jain 8
 A) Services provided by way of RENTING of any “motor vehicle designed to carry PASSENGERS” where
the cost of fuel is INCLUDED in the consideration charged from the service recipient;
B) The service is provided BY any “person OTHER THAN a body corporate” who does NOT charge
CGST @ 6%; AND
C) The service is provided TO any body corporate which is located IN the taxable territory.
Note:-
i) Service by way of RENTING of any “motor vehicle designed to carry passengers” where the
cost of fuel is INCLUDED in the consideration charged from the service recipient are taxable at
the following TWO RATES:-
a) At 5%(2.5% CGST+2.5% SGST/UTGST or 5% IGST) PROVIDED the Service Provider has taken ONLY the
limited ITC (of INPUT SERVICES in the SAME LINE of business); OR
b) At 12%(6% CGST+6% SGST/UTGST or 12% IGST) where the Service Provider has OPTED to pay GST at said
rate on its supplies. In this case, there is NO RESTRICTION on availing ITC on goods or
services USED IN supplying renting of motor vehicles service by the supplier of service.
ii) The following chart summarises the Charge of GST in the case of Renting of MVs:-
Supplier is a
FORWARD Charge
Body Corporate
tax under such Motor
Person liable to pay

Vehicle Renting

Where GST is Supplier is Recipient is a Body REVERSE

payable @5% anyone OTHER Corporate Charge
THAN a Body Recipient is anyone OTHER FORWARD
Corporate THAN a Body Corporate Charge
Where GST is FORWARD
payable @12% Charge

iii) Now there may arise a doubt as to whether RCM is applicable on

a) service of RENTING of motor vehicle designed to carry passengers; OR
b) service of TRANSPORTATION of passengers.
It is clarified vide Circular No. 177/09/2022 that there is a CLEAR DISTINCTION between the
two services which is as under:-
> A. The two services fall under two DIFFERENT HEADINGS in the Tariff.
> B.
• Services of RENTING of motor vehicles designed to carry passengers covers:-
' RENTING of motor vehicle
' FOR transport of passengers
' FOR a period of time
' where the renter defines HOW and WHEN the vehicles will be operated,
determining schedules, routes and other operational considerations.
• ‘Passenger TRANSPORT services’ covers passenger transport services over pre-
determined routes on pre-determined schedules.

GST Amendments by CA Sahil Jain 9

 Accordingly, where the body corporate HIRES the motor vehicle (for transport of employees
etc.) FOR a period of time, during which the motor vehicle shall be at the DISPOSAL OF the
body corporate, the service would fall under ‘services of RENTING of motor vehicles
designed to carry passengers’, and the body corporate shall be liable to pay GST on the
same under RCM.

Thus, reverse charge would apply on act of RENTING of vehicles by body corporate and in
such a case, it is for the body corporate to use in the manner as it likes subject to
agreement with the person providing vehicle on rent.

However, where the body corporate avails the passenger TRANSPORT service for specific
journeys or voyages and does NOT take vehicle on rent for any particular period of time, the
service would fall under ‘passenger transport services’ and the body corporate shall NOT be
liable to pay GST on the same under RCM.
4) Services relating to Real Estate Sector:- (Deleted part is highlighted in Red)
Reverse Charge is applicable in EITHER of the following cases:-
A) Case 1 [Entry 5B]:-
i) Services by way of, TRANSFER of development rights (TDR) or Floor Space Index (FSI) (including
additional FSI), are provided;
ii) The service is provided BY any person;
iii) The service is provided TO a promoter; AND
iv) The service is provided FOR construction of a project by a promoter.
B) Case 2[Entry 5C]:-
i) Services by way of LONG term lease of land (30 years or more) AGAINST consideration in form
of UPFRONT Amount (called as premium, salami, cost, price, development charges or by any
other name) and/or periodic rent;
ii) The service is provided BY any person;
iii) The service is provided TO a promoter; AND
iv) The service is provided FOR construction of a project by a promoter.
Interlinking:- Supply of “TDR, FSI, long term lease (premium)” of land BY a landowner TO a
developer(promoter) are EXEMPT subject to the condition that “the constructed flats are sold BEFORE
issuance of completion certificate” AND “tax is paid on them”.

EXEMPTION of “TDR, FSI, long term lease (premium)” is WITHDRAWN in case of flats sold AFTER issue
of completion certificate, but such withdrawal shall be LIMITED TO “1% of value in case of affordable
houses” and “5% of value in case of OTHER THAN affordable houses”. In SUCH cases, the liability to
pay tax on TDR, FSI, long term lease (premium) has been shifted FROM land owner TO builder under
the reverse charge mechanism (RCM), as stated above.
C) Case 1 [Entry 5AA]:-
i) Services by way of RENTING of residential dwelling is provided;
ii) The service is provided BY any person; AND
iii) The service is provided TO a REGISTERED person.

GST Amendments by CA Sahil Jain 10

 5) Section 9(5):- (A lot more details of this sub-section have been added to the syllabus now. Read and learn the entire part)
A) The Government may, on the recommendations of the Council, by NOTIFICATION, specify
categories of SERVICES(not Goods) the tax on INTRA-State(not Inter-state) supplies of which shall be paid BY
the “Electronic Commerce Operator(defined above)” IF such services are supplied through it, and ALL
the provisions of this Act shall apply to SUCH electronic commerce operator AS IF he is the supplier
liable for paying the tax in relation to the supply of such services. Such services shall be notified on
the recommendations of the GST Council.

Provided that where an Electronic Commerce Operator does NOT have a PHYSICAL presence IN the
taxable territory, ANY person representing SUCH electronic commerce operator FOR any purpose
in the taxable territory SHALL be liable to pay tax.

Provided further that where an Electronic Commerce Operator does NOT have a physical presence
in the taxable territory and ALSO he does NOT have a representative in the said territory, such
electronic commerce operator SHALL APPOINT a person in the taxable territory FOR the purpose of
paying tax and such person shall be liable to pay tax.
B) Notification No. 17/2017 CT (R) / Notification No. 14/2017 IT (R), as amended, has NOTIFIED the
following categories of SERVICES supplied through ECO for THIS purpose:-
i) services by way of TRANSPORTATION of PASSENGERS(not Goods) BY a radio-taxi, motorcab,
maxicab, motor cycle, omnibus or any other motor vehicle;

Definitions:-
a) “Radio taxi” MEANS a taxi including a radio cab, by whatever name called, which is in two-
way radio communication with a central control office and is enabled for tracking using
Global Positioning System (GPS) or General Packet Radio Service (GPRS).
b) “Maxi cab” MEANS any motor vehicle constructed or adapted to carry MORE THAN 6
passengers, but NOT MORE THAN 12 passengers, EXCLUDING the driver, for hire or reward.
c) “Motor cab” MEANS any motor vehicle constructed or adapted to carry NOT MORE THAN 6
passengers EXCLUDING the driver for hire or reward.
d) “Motor car” MEANS any motor vehicle OTHER THAN a transport vehicle, omnibus, road-
roller, tractor, motor cycle or invalid carriage.
e) “Omnibus” MEANS any motor vehicle constructed or adapted to carry MORE THAN 6
persons EXCLUDING the driver.
ii) supply of RESTAURANT service OTHER THAN the “services supplied by restaurant, eating joints
etc. located AT specified premises”.

Note:- “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.
iii) 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 section 22(1) of the CGST Act(i.e. Threshold based registration)”.

GST Amendments by CA Sahil Jain 11

 iv) 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 sub-section 22(1) of the CGST Act(i.e. Threshold based registration)”.
C) Tax on above services supplied through ECO shall be paid by the ECO. ALL the provisions of the
CGST/IGST Act shall apply to such ECO as if he is the supplier liable for paying the tax in relation to
the supply of above services.

The ECO may, on services NOTIFIED under section 9(5), including on restaurant service provided
through ECO, pay GST, by furnishing the details in Form GSTR-3B, reporting them as OUTWARD
taxable supplies.

In this regard, following issues have been clarified:-

i) ECOs not to collect TCS in respect of restaurant services so NOTIFIED:-
ECOs will NO LONGER be required to collect TCS (Tax Collected at Source) and file “Form GSTR-
8(discussed in TCS Chapter)” in respect of restaurant services on which IT pays tax in terms of section
9(5).
ii) ECOs not required to take SEPARATE registration for paying tax on restaurant service supplied
through them:-
As ECOs are ALREADY registered in accordance with rule 8 (as a supplier of their OWN goods or
services), there would be no mandatory requirement of taking SEPARATE registration by ECOs
for payment of tax on restaurant service under section 9(5).
iii) ECO to pay tax on any restaurant services supplied through them:-
ECOs will be liable to pay GST on any RESTAURANT service supplied through them INCLUDING
services supplied BY an UNREGISTERED person.
iv) Supply of restaurant services to be included in aggregate turnover of person supplying
restaurant services through ECO:-
It is clarified that the “Aggregate Turnover” of “person supplying restaurant service THROUGH
ECOs shall be computed in accordance with definition of aggregate turnover u/s 2(6)” and shall
INCLUDE the “aggregate value of supplies made by the restaurant THROUGH ECOs”.
Accordingly, FOR threshold consideration or any other purpose in the CGST Act, the “person
providing restaurant service through ECO” shall account for SUCH services in HIS aggregate
turnover.
v) Restaurant services provided through ECO not to be considered as inward supply for ECOs
liable to RCM:-
ECOs are NOT the RECIPIENT of “restaurant service supplied THROUGH them”. Since these are
NOT input services to ECO, these are NOT to be reported as “inward supply (liable to reverse
charge) in Form GSTR-3B”.
vi) Reversal of proportionate ITC on input goods and services not required by ECO:-
ECOs provide their own services AS an electronic platform and AS an intermediary for which it
would acquire inputs/input service on which ECOs avail input tax credit (ITC). The ECO charges
commission/fee etc. for the services it provides. The ITC is utilised by ECO for payment of GST
on services provided by ECO on its own account (say, to a restaurant).

The situation in this regard remains unchanged even after ECO is made liable to pay tax on
restaurant service. ECO would be eligible to ITC as before. Accordingly, it is clarified that ECO
shall NOT be required to reverse ITC on account of restaurant services on which it pays GST in
terms of section 9(5).

GST Amendments by CA Sahil Jain 12

 It may ALSO be noted that on restaurant service, ECO shall pay the ENTIRE GST liability in cash
(No ITC could be utilised for payment of GST on restaurant service supplied through ECO).
vii) GST to be paid by the supplier on services not notified under section 9(5) of CGST Act but
supplied through ECO:-
In respect of supplies NOT NOTIFIED under section 9(5) but supplied through ECO, the liability
to pay GST continues on such SUPPLIER and ECO shall continue to deposit TCS on such
supplies.
viii) ECO to raise invoice in respect of restaurant service supplied through ECO:-
The INVOICE in respect of restaurant service supplied through ECO under section 9(5) will be
issued by ECO(not Supplier).
ix) Billing in case of 'restaurant service' and goods/services other than restaurant service being
sold by a restaurant to a customer under the same order:-
There can a situation where “restaurant service” and “goods or services OTHER THAN
restaurant service” are sold by a restaurant to a customer under the SAME order. The question
arises as to who shall be liable for raising invoices in SUCH cases.

Considering that liability to pay GST on “supplies OTHER THAN restaurant service through the
ECO”, and other compliances under the CGST Act, including issuance of invoice to customer,
continues to lie with the respective suppliers (and ECOs being liable only to collect tax at
source (TCS) on such supplies), it is advisable that ECO raises SEPARATE bill on restaurant
service in such cases where ECO provides other supplies to a customer under the same order
[Circular No. 167/23/2021].
6) Composition Levy [Section 10 of CGST Act & Chapter-II of CGST Rules, 2017]:- (Newly inserted point is mentioned
below)

Any “intimation or application” for “withdrawal or denial” of the OPTION to pay tax u/s 10 in respect
of ANY place of business in any State or Union territory, shall be DEEMED to be an intimation in
respect of ALL OTHER places of business registered on the SAME PAN.

² Ch 4:- Place of Supply (Entire chapter is new)

Do from notes starting on next page

GST Amendments by CA Sahil Jain 13

 Ch-4 : Place of Supply
1) GST is a destination-based tax, i.e the tax is levied at the place where the goods or services are
CONSUMED, rather than the place where they are PRODUCED.

The determination of ‘place of supply’ and the ‘location of the supplier’ is essential to ascertain the
nature of supply, i.e. whether a supply is INTRA-State or INTER-State. In other words, these two
factors are required to determine whether a supply is subject to SGST/UTGST plus CGST in a given
State/ Union territory or else would attract IGST if it is an INTER-State supply.

If an inter-State transaction is WRONGLY treated as intra-State or vice-versa and tax paid accordingly,
the CORRECT tax will be required to be paid and REFUND to be claimed for tax wrongly paid. Though
NO INTEREST is levied in such a case, procedural requirements increase and working capital gets
blocked where the amount involved is huge. Hence, determining correct POS is of the paramount
importance.

Section 2(86) of the CGST Act, 2017 defines ‘place of supply’ to MEAN the “place of supply as referred
to in Chapter V of the Integrated Goods and Services Tax Act, 2017”. Thus, in order to understand the
provisions of the place of supply, we need to refer the provisions of the relevant Chapter of the IGST
Act, 2017.

In simple words, ‘place of supply’ is the place where the supply is CONSUMED. Thus, place of supply
determines the jurisdiction where the tax revenue should reach.

Goods, usually being TANGIBLE do not pose any significant problems for determination of their place
of consumption. Services, usually being INTANGIBLE pose problems w.r.t determination of place of
supply mainly due to following factors:-
A) The manner of delivery of a service could be altered easily. For example, telecom service could
change from post- paid to pre-paid or billing address of the customer could be changed, repair or
maintenance of software could be changed from onsite to online; banking services earlier required
customer to go to the bank, now the customer can avail service from anywhere.
B) Service provider, service receiver and the service provided may not be ascertainable or may easily
be suppressed as nothing tangible moves and there would hardly be any trail.
C) For supplying a service, a fixed location of service provider is not mandatory and even the service
recipient may receive service while on the move. The location of billing could be changed
overnight.
D) Sometime the same element may flow to more than one location, for example, construction or
other services in respect of a railway line, a national highway or a bridge on a river which originate
in one State and end in the other State.

Similarly, a copyright for distribution and exhibition of film could be assigned for many States in a
single transaction or an advertisement or a programme is broadcasted across the country at the
same time.

An airline may issue seasonal tickets, containing say 10 vouchers which could be used for travel
between any two locations in the country.

The card issued by New Delhi metro could be used by a person located in Noida, or New Delhi or

CA SAHIL JAIN | PAGE 4.1 14

 Faridabad, without the New Delhi metro being able to distinguish the location or journeys at the
time of receipt of payment.
E) Services are continuously evolving and thus, continue to pose newer challenges. For example, 15-
20 years back no one could have thought of DTH, online information, online banking, online
booking of tickets, internet, mobile telecommunication etc.
2) Considering the difficulties in determining the ACTUAL PLACE OF CONSUMPTION of services, the
various ELEMENTS involved in a service transaction are used as PROXIES for determining the “place of
consumption OR place of supply” of such services. A proxy which gives MORE APPROPRIATE RESULT
than others for determining the place of supply, could be used for determining the place of supply.

The various ELEMENTS used for determining the “place of supply” of a SERVICE are:-
A) Location of service provider
B) Location of service receiver
C) Place where the activity takes place/ place of performance
D) Place where the service is consumed
E) Place/person to which/whom actual benefit flows
3) Separate rules for determining place of supply in respect of B2B and B2C transactions:-
In respect of B2B Transactions, the supply is made BY a registered person TO another registered
person and the taxes paid are taken as CREDIT by the recipient, so such transactions are just PASS
THROUGH. GST collected on B2B supplies effectively create a “LIABILITY for the Government” and an
“asset for the recipient of such supplies” in AS MUCH AS the recipient is entitled to use the Input Tax
Credit (ITC) for payment of future tax liability. For B2B transactions, the “location of RECIPIENT” takes
care in almost ALL the situations as FURTHER credit is to be taken by recipient. The recipient usually
FURTHER supplies to another customer.

The supply is CONSUMED only when a B2B transaction is FURTHER converted into B2C (business to
consumer) transaction.

In respect of B2C Transactions, the supply is made TO an UNREGISTERED person who consumes the
same and the taxes paid ACTUALLY REACH the Government.
4) Provisions for determination of place of supply in GST law:-
Basis the above guiding principles, Chapter V of the IGST Act [Sections 10 to 14] prescribes both
general and specific rules to determine “place of supply” of goods and services in various
circumstances. These provisions prescribe the provisions relating to place of supply of goods and
services in domestic as well as cross-border transactions.

At the intermediate level, our discussion will be restricted to the provisions relating to the place of
supply of goods and services in DOMESTIC transactions [Section 10 and Section 12] only.

² Important definitions:-
1) Continuous journey [Section 2(3)]:-
It MEANS a journey for which a “single or more than one ticket or invoice” is issued at the SAME time,
either “by a single supplier of service OR through an agent acting on behalf of more than one supplier
of service”, and which involves NO STOPOVER between any of the legs of the journey for which one or
more separate tickets or invoices are issued.

Explanation:- For the purposes of THIS clause, the term “stopover” MEANS a place where a passenger

PLACE OF SUPPLY | PAGE 4.2 15

 can DISEMBARK either “to transfer to another conveyance OR break his journey for a certain period in
order to resume it at a later point of time”.

The term “conveyance” has been defined in section 2(34) of the CGST Act to INCLUDE a vessel, an
aircraft and a vehicle.
2) Fixed establishment [Section 2(7)]:-
It MEANS a place OTHER THAN the “place of business” which is characterised by a sufficient degree of
permanence and suitable structure in terms of human and technical resources TO “supply services, OR
to receive and use services for its own needs”.
3) Location of the RECIPIENT of services [Section 2(14)]:-
It MEANS:-
A) where a supply is received AT a “place of business(discussed later) for which registration has been
obtained”, the location of SUCH place of business;
B) where a supply is received AT a “place OTHER THAN the place of business for which registration
has been obtained, that is to say, a fixed establishment(defined above) elsewhere”, the location of
SUCH fixed establishment;
C) where a supply is received AT “MORE THAN ONE establishment, whether the place of business or
fixed establishment”, the location of the establishment MOST DIRECTLY CONCERNED with the
receipt of the supply; AND
D) in absence of SUCH places, the “location of the USUAL place of RESIDENCE of the RECIPIENT”.
Note:- The above definition relates only to SERVICES. The term ‘location of recipient of GOODS’ has
NOT been defined in the Act.
4) Location of the SUPPLIER of services [Section 2(15)]:-
It MEANS:-
A) where a supply is made FROM a “place of business(discussed later) for which registration has been
obtained”, the location of SUCH place of business;
B) where a supply is made FROM a “place OTHER THAN the place of business for which registration
has been obtained, that is to say, a fixed establishment(defined above) elsewhere”, the location of
SUCH fixed establishment;
C) where a supply is made FROM “MORE THAN ONE establishment, whether the place of business or
fixed establishment”, the location of the establishment MOST DIRECTLY CONCERNED with the
provision of the supply; AND
D) in absence of SUCH places, the “location of the USUAL place of RESIDENCE of the SUPPLIER.
Note:- The above definition relates only to SERVICES. The term ‘location of supplier of GOODS’ has
NOT been defined in the Act.

As already pointed out that ‘location of supplier of GOODS’ is not defined in the law, only the location
of supplier of services is defined. Services being intangible, sometimes, leave no trail as to the location
‘from’ where they are supplied and for that reason, a specific definition is required. Whereas in case of
goods, it is easier to determine as to where the goods are actually ‘located’. Taking a cue from the
definition of the place of supply(defined below), “location of supplier of goods” is where business is
ordinarily carried on or where the goods themselves are located.
5) Place of business [Section 2(85)]:-
It INCLUDES

CA SAHIL JAIN | PAGE 4.3 16

 A) a place FROM WHERE the business is ordinarily carried on, and INCLUDES a warehouse, a godown
or any other place where a taxable person “STORES his goods”, “supplies or receives goods or
services or both”;
B) a place where a taxable person maintains his BOOKS of Account; OR
C) a place where a taxable person is engaged in business through an AGENT, by whatever name
called;
Note:- This is an inclusive definition and is applicable for BOTH goods and services.
6) Supply [Section 2(21)]:-
It shall have the same meaning as assigned to it in “section 7 of the CGST Act, 2017”.

² Place of Supply of GOODS:-

1) Place of “supply of goods OTHER THAN supply of goods imported into, or exported from India(i.e.
Domestic Transactions)
” [Section 10 of the IGST Act]:-
A) As per Section 10(1), the place of “supply of goods, OTHER THAN supply of goods imported into, or
exported from India(i.e. Domestic Transactions)”, shall be as under:-
i) 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”;
Note:-
a) The ‘location of the goods’ is a question of fact to be ascertained by observing the JOURNEY
that the goods so supplied from their origin (from supplier) to termination (with the
recipient). This movement, however, can be undertaken by the supplier or recipient or even
any other person (like transporter) after having disclosed the destination of the movement
of goods.
b) It is important to understand that THIS provision does NOT apply in cases where there is no
movement of goods. Also, the provision does NOT link itself to transfer of property in goods
but to the movement of the goods.
ii) where the goods are DELIVERED by the supplier TO a recipient or any other person ON THE
DIRECTION of a THIRD PERSON(i.e. Bill to ship to model), whether acting as an agent or otherwise,
before or during movement of goods(not AFTER movement terminates), 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 third person”;
Note:-
a) Bill to Ship to model is a type of a tripartite arrangement of supply where there is a sale of
goods IN TRANSIT by the ORIGINAL buyer/ agents.
b) In simple words, where goods are delivered BY the supplier TO the recipient AT the
instruction of a third person, the “place of supply” is the PRINCIPAL place of business of
such third person and NOT of the actual recipient.
c) It is important to identify the two supplies involved in this transaction – one supply is BY
supplier TO third person and second supply is BY third person TO recipient. This provision
deals only with the first limb of supply, i.e. supply BY supplier TO third person.

Second limb of supply, i.e. supply BY third person TO recipient will be governed by the

PLACE OF SUPPLY | PAGE 4.4 17

 provisions of section 10(1)(a), i.e. the place of supply will be the location of the goods AT
the time when the movement of goods TERMINATES (ends) for delivery to the recipient.
d) Even though section 2(93) of CGST Act defines “recipient”, inter alia, as the ‘PAYER of the
consideration’; in this provision, recipient’ is the one who actually COLLECTS the goods and
the third person is the one who enjoys privity with the supplier to be able to direct him to
deliver the goods and also usually makes payment to the supplier.
iii) 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; (Eg:- A machinery already in Mr. B’s premises on Rental basis is purchased by him from the owner thereof. This
supply of machine would not involve any MOVEMENT)

iv) where the goods are ASSEMBLED or INSTALLED AT SITE, the place of supply shall be the “place
of SUCH installation or assembly”;
Note:- This is a case of COMPOSITE supply of goods wherein two supplies are involved, “supply
of goods” and “ancillary supply of installation/assembling service”. The PRINCIPAL supply is
supply of goods which are being installed.
v) 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(i.e. location where the GOODS got on-board the conveyance)”. (Learning trick:- This is the ONLY case u/s 10 where
instead of the FINAL location of goods, the ORIGIN point is taken to be the POS)

Note:-
a) When goods are sold supplied DURING a journey on board a conveyance, it becomes
difficult to determine the place of supply of goods – whether it is the location from where
the journey originates OR whether it is the destination OR whether it is any of the locations
covered by the conveyance during the journey.
b) “Place of supply” of goods supplied on board a conveyance is determined under this
provision EVEN IF the supply has been made by any of the PASSENGER on board the
conveyance and NOT BY the carrier of the conveyance.
B) As per Section 10(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.

² Place of Supply of SERVICES:-

1) Place of supply of services where location of supplier of service and the location of the recipient of
service is in India [Section 12 of the IGST Act]:-
As per Section 12(1), the provisions of THIS section shall apply to determine the “place of supply” of
services where the “location of SUPPLIER of services” AND the “location of the RECIPIENT of services”
is IN India(i.e. DOMESTIC Transactions).

The “Place of supply” in different scenarios is as follows:-

A) Learning category 1:- Cases where POS is location of Recipient IF the supply is B2B
i) General Rule [Section 12(2)]:-
The place of supply of services, EXCEPT the services specified in sub-sections (3) to (14):-
a) “made to a registered person(i.e. B2B Supply)” shall be the “location of such person(i.e. Recipient)”;
b) “made to any person OTHER THAN a registered person(i.e. B2C Supply)” shall be:-

CA SAHIL JAIN | PAGE 4.5 18

 > the “location of the RECIPIENT” where the address ON RECORD exists; AND
> the “location of the SUPPLIER” of services in OTHER cases.
ii) Insurance services [Section 12(13)]:-
The “place of supply” of insurance services shall:-
a) to a registered person(i.e. B2B Supply), shall be the “location of such person(i.e. Recipient)”;
b) to a person OTHER THAN a registered person(i.e. B2C Supply), shall be the “location of the
RECIPIENT of services on the records of the supplier of services”.
iii) Training and performance appraisal services [Section 12(5)]:-
The “place of supply” of services IN RELATION TO training and performance appraisal to:-
a) a registered person(i.e. B2B Supply), shall be the “location of such person(i.e. Recipient)”;
b) a person OTHER THAN a registered person(i.e. B2C Supply), shall be the “location where the
services are ACTUALLY PERFORMED”.
iv) ORGANISATION of events [Section 12(7)]:-
The “place of supply” of services provided BY WAY OF:-

ORGANISATION of a cultural, artistic, sporting, scientific, educational or entertainment event

INCLUDING supply of services in relation to a conference, fair, exhibition, celebration or similar
events; or

“services ANCILLARY to organisation of any of the events or services referred to in above

paragraph”, OR “assigning of SPONSORSHIP to such events”:-
a) to a registered person(i.e. B2B Supply), shall be the “location of such person(i.e. Recipient)”;
b) to a person OTHER THAN a registered person(i.e. B2C Supply), shall be the “place where the
event is actually held” and IF the event is held OUTSIDE India, the place of supply shall be
the “location of the RECIPIENT”.
Explanation:- Where the event is held in MORE THAN ONE State or Union territory and a
CONSOLIDATED amount is charged for supply of services relating to SUCH event, the “place of
supply” of such services shall be TAKEN AS being in each of the respective States or Union
territories in PROPORTION TO the “value for services separately collected or determined in
terms of the contract or agreement entered into in this regard” OR, in the absence of such
contract or agreement, on such OTHER basis as may be prescribed. (This explanation applies to
only B2C supplies since in B2B supplies, event location does not matter)

Also, the MANNER of determining PROPORTIONATE VALUE of service in the ABSENCE of a

contract or agreement between the supplier and recipient of services, the PROPORTIONATE
VALUE of services made in DIFFERENT States/Union territories (where the event is held) is
computed in accordance with rule 5 of the IGST Rules by the application of “generally accepted
accounting principles (GAAP)”. (Refer examples in ICAI’s SM)
v) Transportation of goods including mail or courier [Section 12(8)]:-
The “place of supply” of services by way of TRANSPORTATION of goods(not Passengers), including
by mail or courier:-
a) to a registered person(i.e. B2B Supply), shall be the “location of such person(i.e. Recipient)”;
b) to a person OTHER THAN a registered person(i.e. B2C Supply), shall be the “location at which
such goods are handed over FOR their transportation(i.e. Origin)”.

PLACE OF SUPPLY | PAGE 4.6 19

 Exception:- Provided that where the transportation of goods is TO a place OUTSIDE India, the
“place of supply” shall be the place of DESTINATION(not Origin) of such goods.
vi) Passenger transportation service [Section 12(9)]:-
The “place of supply” of services by way of TRANSPORTATION of passengers(not Goods):-
a) to a registered person(i.e. B2B Supply), shall be the “location of such person(i.e. Recipient)”;
b) to a person OTHER THAN a registered person(i.e. B2C Supply), shall be the “place where the
passenger EMBARKS(i.e. Origin) on the conveyance for a CONTINUOUS journey(defined above)”.
Exception:- Provided that where the right to passage is given for FUTURE use and the “point of
embarkation(i.e. point of departure)” is NOT known AT the time of “ISSUE of right to passage”, the
“place of supply” of SUCH service shall be determined in accordance with the provisions of
sub-section (2)(i.e. General Rule).

Explanation:- For the purposes of THIS sub-section, the “RETURN journey” shall be treated as a
SEPARATE journey, EVEN IF the “RIGHT to passage for onward and return journey” is issued at
the SAME time.
B) Learning category 2:- Cases where Place of performing service becomes POS irrespective of
whether supply is B2B or B2C
i) Services in relation to an immovable property or lodging accommodation in a
hotel/boat/vessel etc. [Section 12(3)]:-
The “place of supply” shall be the “location at which the immovable property or boat or vessel,
as the case may be, is located OR intended to be located” in the case of any services:-
a) DIRECTLY IN RELATION TO an IMMOVABLE PROPERTY, including services provided by
architects, interior decorators, surveyors, engineers and other related experts or estate
agents
b) any service provided BY WAY OF grant of rights “to USE immovable property OR for carrying
out or co- ordination of construction work”;
c) by way of LODGING ACCOMMODATION BY a hotel, inn, guest house, home stay, club or
campsite, by whatever name called, and including a house boat or any other vessel;
d) by way of ACCOMMODATION in any immovable property FOR organising any marriage or
reception or matters related thereto, official, social, cultural, religious or business function
including services provided IN RELATION TO such function at such property; OR
e) Services ANCILLARY to the above-mentioned services
Exception:- Provided that IF the location of the immovable property or boat or vessel is located
or intended to be located OUTSIDE India, the “place of supply” shall be the “location of the
RECIPIENT(Has to be IN India otherwise Section 12 itself is not applicable)”.

Note:- THIS provision is applicable on property ALREADY constructed/ developed as well as on

the property YET TO BE constructed/ developed. For example, if the services have been
supplied for an immovable property which is yet to be constructed/developed (e.g. architect’s
services for drawing the plan of a building), the place where such immovable property is
INTENDED to be located is the “place of supply”.

Explanation:- Where the “immovable property or boat or vessel” is located in MORE THAN
ONE State or Union territory(Eg:- National Highway spread over multiple States), the supply of services shall be
TREATED AS made in EACH of the respective States or Union territories, in PROPORTION TO

CA SAHIL JAIN | PAGE 4.7 20

 the “value for services separately collected or determined in terms of the contract or
agreement entered into in this regard” OR, in the absence of such contract or agreement, on
such OTHER basis as may be prescribed. Accordingly, Rule 4 of IGST Rules prescribes the
“manner of determining PROPORTIONATE VALUE of service in the ABSENCE of a contract or
agreement” as follows:-
Factor which determines the
Type of service IN RELATION TO immovable
PROPORTIONATE VALUE of service supplied
property
in DIFFERENT States/Union territories
Service provided by way of LODGING
ACCOMMODATION by hotel, inn, guest
house etc. and its ANCILLARY services
Number of nights stayed in SUCH
(OTHER THAN the cases where such
property(Refer examples in ICAI’s SM)
property is a SINGLE property located in 2 or
more contiguous States/ Union territories or
both)
• “All OTHER services provided IN RELATION
TO immovable property including services by
way of accommodation in any immovable
property FOR organising any marriage or
reception etc. AND in cases of supply of
ACCOMMODATION by a hotel, inn, guest AREA of the immovable property lying in
house, club or campsite, by whatever name EACH State/ Union territories(Refer examples in
ICAI’s SM)
called” where SUCH property is a SINGLE
property located in 2 or more contiguous
States or/and Union territories

• Services ANCILLARY to services mentioned

above
TIME SPENT by the boat or vessel
Services by way of LODGING in EACH such State/ Union territories, to be
ACCOMMODATION by a house boat or determined on the basis of DECLARATION
vessel and its ANCILLARY services made by the service provider(Refer examples in
ICAI’s SM)

ii) Restaurant and catering service, personal grooming, fitness, beauty and health services
[Section 12(4)]:-
The “place of supply” OF restaurant and catering services, personal grooming, fitness, beauty
treatment, health service including cosmetic and plastic surgery shall be the “location where
the services are ACTUALLY PERFORMED”.
iii) Services by way of ADMISSION to events/amusement park/other places [Section 12(6)]:-
The “place of supply” of services provided by way of ADMISSION to a “cultural, artistic,
sporting, scientific, educational, entertainment event” OR “amusement park” OR “ANY other
place” AND services ancillary thereto, shall be the “place where the event is actually held OR
where the park OR such other place is located”.
C) Learning category 3:- Miscellaneous Cases
i) Service supplied on board a conveyance [Section 12(10)]:-
The “place of supply” of services ON BOARD a conveyance, including a vessel, an aircraft, a
train or a motor vehicle, shall be the “location of the FIRST scheduled point of DEPARTURE of
THAT conveyance FOR the journey”.

PLACE OF SUPPLY | PAGE 4.8 21

 ii) Telecommunication service [Section 12(11)]:-
The “place of supply” of TELECOMMUNICATION SERVICES including data transfer,
broadcasting, cable and direct to home television services TO any person shall:-
a) in case of services BY WAY OF fixed telecommunication line, “leased circuits(Just for extra
knowledge:- It is a bi-directional PRIVATE telephone line that has been rented for private voice, data exchange or telecommunication
use)
”, internet leased circuit, cable or dish antenna, be the “location where the
telecommunication line, leased circuit or cable connection or dish antenna is INSTALLED”
FOR receipt of services;
b) in case of “mobile connection for telecommunication” and “internet services” provided on
post-paid basis, be the “location of BILLING ADDRESS of the RECIPIENT of services on the
record of the supplier of services”;
c) in cases where “mobile connection for telecommunication”, “internet service” and “direct
to home television services” are provided on pre-payment basis through a voucher or ANY
other means:-
> THROUGH a selling agent or a re-seller or a distributor of subscriber identity module card
or re-charge voucher, be the “ADDRESS of the selling agent or re-seller or distributor AS
PER the record of the supplier AT the time of supply”; OR
> BY any person TO the final subscriber, be the “location where such pre-payment is
received OR such vouchers are sold”;
d) in OTHER cases, be the “address of the RECIPIENT as per the records of the supplier of
services” and where such address is NOT available, the place of supply shall be “location of
the SUPPLIER of services”.
Exception 1:- Provided that where the “address of the RECIPIENT as per the records of the
supplier of services is NOT available”, the place of supply shall be “location of the SUPPLIER of
services”.

Exception 2:- Provided further that if SUCH pre-paid service is availed or the recharge is made
THROUGH internet banking or other electronic mode of payment, the “location of the
RECIPIENT of services on the record of the supplier of services” shall be the place of supply of
SUCH services.

Explanation:- Where the “leased circuit” is installed in MORE THAN ONE State or Union
territory and a CONSOLIDATED amount is charged for supply of services relating to such circuit,
the place of supply of such services shall be TAKEN AS being in EACH of the respective States
or Union territories in PROPORTION TO the “value for services separately collected or
determined in terms of the contract or agreement entered into in this regard” OR, in the
absence of such contract or agreement, on such OTHER basis as may be prescribed.

In the ABSENCE of a contract or agreement BETWEEN the supplier and recipient of services,
the VALUE of services supplied in DIFFERENT States/Union territories (where the leased circuit
is INSTALLED) is determined in accordance with Rule 6 of the IGST Rules in PROPORTION TO
the NUMBER OF POINTS lying in EACH such State/ Union territory.

The NUMBER OF POINTS in a circuit is determined in the following manner:-

CA SAHIL JAIN | PAGE 4.9 22

 > In the case of a circuit between two points or places, the STARTING point or place of the
circuit and the END point or place of the circuit will invariably constitute TWO points(Refer
examples in ICAI’s SM)

> Any INTERMEDIATE point or place in the circuit will ALSO constitute a point PROVIDED
that the benefit of the leased circuit is ALSO available at that intermediate point(Refer
examples in ICAI’s SM)

iii) Financial and stock broking services [Section 12(12)]:-

The “place of supply” of banking and other financial services, including stock broking services
to any person shall be the “location of the RECIPIENT of services on the records of the supplier
of services”.

Exception:- Provided that IF the location of recipient of services is NOT on the records of the
supplier, the place of supply shall be the “location of the SUPPLIER of services”.
iv) Advertisement service to the Government [Section 12(14)]:-
The “place of supply” of advertisement services TO the Central Government, a State
Government, a statutory body or a local authority meant for the States or Union territories
IDENTIFIED IN the contract or agreement shall be taken as being in EACH of such States or
Union territories and the VALUE of such supplies specific to EACH State or Union territory shall
be in PROPORTION TO the “amount ATTRIBUTABLE TO services provided BY WAY OF
dissemination in the RESPECTIVE States or Union territories as may be determined in terms of
the contract or agreement entered into in this regard” OR, in the absence of such contract or
agreement, on such OTHER basis as may be prescribed.

In the ABSENCE of a contract or agreement BETWEEN the supplier and recipient of services,
the PROPORTIONATE VALUE of advertisement services attributable to DIFFERENT States/Union
territories (where the advertisement is broadcasted/ run /played/disseminated) is computed
in accordance with rule 3 of the IGST Rules as under:-
Value of service attributable to dissemination in different States/Union
Type of
territories where the advertisement is broadcasted/ run
advertisement
/played/disseminated(Refer examples in ICAI’s SM)
Advertisements
Amount payable FOR publishing an advertisement in ALL the editions of a
in newspapers
newspaper or publication, which are published in EACH State/Union territory
and publications
Advertisements
through printed
material like
Amount payable FOR the distribution of a specific number of SUCH material
pamphlets,
in EACH State/Union territory
leaflets, diaries,
calendars, T-
shirts, etc.
Advertisements
in hoardings
Amount payable FOR the hoardings located in EACH State/ Union territory
(other than
those on trains)
Amount attributable to EACH State/Union territory calculated in the “ratio of
Advertisements
LENGTH of the railway track in EACH of such State/Union territory, for THAT
on trains
train”
Advertisements Amount payable to EACH State/Union territory for the advertisements on
on the back of bills pertaining to consumers having billing addresses in EACH of such
utility bills of oil State/Union territory
PLACE OF SUPPLY | PAGE 4.10 23
 and gas
companies, etc.
Advertisements
Amount attributable to EACH State/Union territory calculated in the “ratio of
on railway
NUMBER of Railway STATIONS in EACH of such State/Union territory”
tickets
Advertisements Amount payable to SUCH radio station, which by virtue of its name is part of
on radio stations EACH State/Union territory
Amount attributable to EACH State/Union territory calculated basis the
VIEWERSHIP of such channel in EACH of such State/ Union territory which
shall be derived as under:-
(a) Viewership can be ascertained from the channel viewership figures
published by the Broadcast Audience Research Council.

(b) Figures for the “last week of a given quarter” is used for calculating
viewership for the SUCCEEDING quarter.
Advertisement
on television
(c) Where the channel viewership figures relate to a region comprising of
channels
MORE THAN ONE State/Union territory, the viewership figures for a State/
Union territory of that region, is calculated in “ratio of the POPULATIONS of
that State/Union territory, as determined in the LATEST Census.”

(d) The ratio of the “viewership figures for EACH State or Union territory so
calculated”, when applied to the “amount payable for the service”, shall
represent the portion of the VALUE ATTRIBUTABLE to the dissemination in
THAT State or Union territory
Advertisements Amount payable TO a cinema hall or screens in a multiplex in EACH State/
in cinema halls Union territory.
Amount attributable to EACH State/Union territory calculated basis the
INTERNET SUBSCRIBERS in EACH of such State/ Union territory which shall
be derived in the following manner:-
(a) Internet subscribers can be ascertained from the internet subscriber
figures published by the Telecom Regulatory Authority of India (TRAI).

(b) Figures for the “last quarter of a given financial year” will be used for
Advertisements
calculating the number of internet subscribers for the SUCCEEDING financial
on internet
year.
It is DEEMED
(c) Where the internet subscriber figures relate to a region comprising of
that such service
MORE THAN ONE State/Union territory, the subscriber figures for a
is provided all
State/Union territory of THAT region shall be calculated in the “ratio of the
over India.
POPULATIONS of that State/Union territory, as determined in the LATEST
census.”

(d) The ratio of the “subscriber figures for EACH State or Union territory so
calculated”, when applied to the “amount payable for the service”, shall
represent the portion of the VALUE ATTRIBUTABLE to the dissemination in
THAT State or Union territory
Amount attributable to EACH State/Union territory calculated on the basis of
Advertisements the TELECOM SUBSCRIBERS in EACH of such State/ Union territory.
through SMS (a) Telecom subscribers in a telecom circle can be ascertained from the
telecom subscribers figures published by the TRAI.

CA SAHIL JAIN | PAGE 4.11 24

 (b) “Figures for a given quarter” will be used for calculating the subscribers
for the SUCCEEDING quarter.

(b) Where such figures relate to a telecom circle comprising of MORE THAN
ONE State/Union territory, the subscriber figures for THAT State/Union
territory shall be calculated in the “ratio of the POPULATIONS of that
State/Union territory, as determined in the LATEST census.”

² Ascertaining different types of supplies:-

1) Inter-State Supply [Section 7 of the IGST Act]:-
A) As per Section 7(1), SUBJECT TO the provisions of section 10, supply of GOODS, where the
“location of the supplier” and the “place of supply(not location of recipient)” are in:-
i) two different States;
ii) two different Union territories; OR
iii) a State and a Union territory,
shall be treated as a “supply of GOODS” in the course of INTER- State trade or commerce.
B) As per Section 7(3), SUBJECT TO the provisions of section 12, supply of SERVICES, where the
“location of the supplier” and the “place of supply(not location of recipient)” are in:-
i) two different States;
ii) two different Union territories; or
iii) a State and a Union territory,
shall be treated as a “supply of SERVICES” in the course of INTER- State trade or commerce.
C) As per Section 7(5)(c), supply of GOODS or SERVICES or BOTH 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.(This majorly
covers import-export transactions which are not a part of CA Inter syllabus)

2) Intra-State Supply [Section 8 of the IGST Act]:-

A) As per Section 8(1), SUBJECT TO the provisions of section 10, supply of GOODS, where the
“location of the supplier’ and the “place of supply of goods(not location of recipient)” are in the SAME
State or SAME Union territory shall be treated as INTRA-State supply.
B) As per Section 8(2), SUBJECT TO the provisions of section 12, supply of SERVICES, where the
“location of the supplier” and the “place of supply of services(not location of recipient)” are in the SAME
State or SAME Union territory shall be treated as INTRA-State supply.
Explanation 1:-
For the purposes of THIS Act(not just Section), where a person has:-
i) an “establishment in A State or Union territory” AND “any OTHER establishment OUTSIDE
THAT State or Union territory”; OR
ii) an “establishment in A State or Union territory” AND “any OTHER establishment REGISTERED
WITHIN THAT State or Union territory”,

PLACE OF SUPPLY | PAGE 4.12 25

 then, SUCH establishments, even if they belong to the SAME person, shall be TREATED AS
establishments of DISTINCT PERSONS.

Explanation 2:- A person carrying on a business THROUGH a “branch OR an agency OR a

representational office” in ANY territory shall be TREATED AS “having an establishment in THAT
territory”.
3) Supplies in Territorial Waters [Section 8 of the IGST Act]:-
Notwithstanding anything contained in THIS Act(entire IGST Act overruled):-
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”.
Note:- The term “Territorial waters” has NOT been defined in the GST law. However, as per United
Nations Convention on the Law of the Sea, the term “territorial sea” is a belt of coastal waters
extending at most 12 nautical miles FROM the baseline of a coastal state. Section 3(2) of the
“Territorial Waters, Continental Shelf, Exclusive Economic Zone and Other Maritime Zones Act, 1976”
stipulates that the limit of territorial waters is the line EVERY POINT of which is at a distance of 12
nautical miles from the NEAREST point of the appropriate base line.(discussed in detail in Chapter 3)

CA SAHIL JAIN | PAGE 4.13 26

² Ch 5:- Exemptions
1) Services related to CHARITABLE and RELIGIOUS activities:- (Amendment is highlighted below)
A) Entry 1:-
Services BY an “entity registered u/s 12AA or 12AB of the Income-tax Act, 1961” BY WAY OF
Charitable Activities.
Note:-
i) Here, “Charitable Activities” MEANS the activities relating to:-
a) PUBLIC HEALTH by way of:-
> care or counseling of:-
• “TERMINALLY ill persons” OR “persons with SEVERE physical or mental disability”;
• Persons afflicted with HIV or AIDS;
• Persons ADDICTED to a dependence-forming substance SUCH AS narcotics drugs or
alcohol; OR
> Public AWARENESS of “preventive health, family planning or prevention of HIV
infection”;
b) ADVANCEMENT of “RELIGION, spirituality or yoga”;
c) ADVANCEMENT of Educational Programmes/Skill Development RELATING TO:-
> Abandoned, orphaned or homeless CHILDREN;
> Physically or mentally abused and traumatized persons;
> Prisoners; OR
> Persons OVER the age of 65 years residing in a RURAL area;
d) PRESERVATION of “ENVIRONMENT including watershed, forests & wildlife”.
ii) Therefore, activities which are NOT covered within the EXHAUSTIVE Definition of “Charitable
Activities” will NOT be exempted under Entry 1. (Eg:- grant of advertising rights to a person on the premises of the
charitable/religious trust or on publications of the trust, or granting admission to events, functions, celebrations, shows against admission
tickets or fee etc.)

iii) Analysis of certain activities of REGISTERED Charitable Trusts:-

a) Arranging yoga and meditation camp by charitable trusts:-
As discussed above, services provided BY entity registered u/s 12AA or 12AB of the Income-
tax Act, 1961 by way of ADVANCEMENT of “religion, spirituality or yoga” are EXEMPT as
such activities are covered in definition of “Charitable Activities”.

Fee or consideration charged in any OTHER form FROM the participants FOR participating in
a religious, yoga or meditation programme or camp meant FOR advancement of religion,
spirituality or yoga shall be EXEMPT.

Residential programmes or camps where the Fee Charged INCLUDES cost of lodging and
boarding shall ALSO be exempt as long as the PRIMARY and PREDOMINANT activity,
OBJECTIVE and PURPOSE of such residential programmes or camps is ADVANCEMENT of
“religion, spirituality or yoga”.

GST Amendments by CA Sahil Jain 27

 However, if charitable or religious trusts MERELY or PRIMARILY “provide accommodation or
serve food and drinks” AGAINST “consideration in any form INCLUDING donation”, SUCH
activities will be TAXABLE. Similarly, activities SUCH AS holding of fitness camps or classes
such as those in aerobics, dance, music etc. will be TAXABLE.
b) Management of educational institutions:-
Activities of “schools, colleges or any other educational institutions” RUN BY charitable
trusts by way of “education or skill development” OF “abandoned, orphans, homeless
children, physically or mentally abused persons, prisoners or persons over age of 65 years
or above residing in a rural area”, will be CONSIDERED AS Charitable Activities and income
from such supplies will be WHOLLY EXEMPT from GST.

The term “Rural Area” MEANS the “area comprised in a VILLAGE as defined in land revenue
records”, EXCLUDING the “area under any municipal committee, municipal corporation,
town area committee, cantonment board or notified area committee OR any area that may
be notified as an urban area by the Central Government or a State Government”.

Activities OF a “school, college or an institution” RUN BY a trust which do NOT come within
the ambit of “Charitable Activities” will NOT be exempt under Entry 1 of the Notification.

Interlinking:- SUCH activities MAY be EXEMPT under “Entry 66 of the Notification(discussed later
in this chapter)
”.
c) Hostel accommodation provided by trusts:-
HOSTEL ACCOMMODATION services provided BY Charitable Trusts TO students do NOT fall
within the ambit of “Charitable Activities” as defined above.

Interlinking:- Accommodation service in hostels having value of supply UPTO Rs. 1,000 per
day is EXEMPT under Entry 14 of the Notification
d) Hospitals managed by charitable trusts:-
There is no SPECIFIC Exemption w.r.t. Hospitals managed BY charitable trusts.

Interlinking:- Exemption available to health care services under Entry 74 of the Notification
(discussed later in this chapter)
CAN BE applicable to services provided by Charitable Trusts too.
B) Entry 13:-
Services BY any person BY WAY OF:-
i) Conduct of any “RELIGIOUS ceremony(Eg:- Poojas done on Birth/Marriage/Death)”;
ii) RENTING of “Precincts(defined below)” of a “RELIGIOUS place(defined below)” which is:-
a) Meant for “GENERAL public(defined below)”;
b) Owned or managed BY an entity registered AS a “charitable or religious trust u/s 12AA or
12AB of the Income-tax Act, 1961 OR a trust or an institution registered under section
10(23C)(v) of the Income-tax Act OR a body or an authority covered under section
10(23BBA) of the said Income-tax Act.”
Exception:- NOTHING contained in point (ii) of THIS exemption shall apply to:-

> Renting of ROOMS where charges are Rs. 1,000 or more per DAY;

GST Amendments by CA Sahil Jain 28

 > Renting of “premises, community halls, kalyanmandapam or open area, and the like”
where charges are Rs. 10,000 or more per DAY; OR
> Renting of “shops or other spaces for business or commerce” where charges are Rs.
10,000 or more per MONTH.
Note:-

> “Precincts” is NOT to be interpreted in a RESTRICTED manner and ALL IMMOVABLE

property of the Religious place located WITHIN the “OUTER boundary walls of the
complex (of buildings and facilities) in which the religious place is located”, is to be
considered as being located IN the precincts of the religious place.

The immovable property which satisfies BOTH of the following conditions MAY be
considered as being located IN the precincts of the religious place and extended the
benefit of exemption:-
• It is located in the IMMEDIATE VICINITY and SURROUNDING of the religious place;
AND
• It is “owned by the religious place” OR “under the same management as the religious
place”.
> “Religious place” MEANS a place which is PRIMARILY meant for conduct of prayers or
worship PERTAINING TO a religion, meditation, or spirituality.
> “General public” MEANS the body of people at large sufficiently defined by some
COMMON quality of public or impersonal nature.
> IF a DONATION is received with specific instructions/mutual understanding between the
donor and the receiver that religious place will host an ADVERTISEMENT promoting
business of the donor, SUCH donation will be subject to GST since it is NOT covered by
Entry 13.

However, where the donation is received WITHOUT such instructions OR when the name
of the donor is displayed in recipient institution’s premises, in such a manner, which can
be said to be an expression of GRATITUDE and public recognition of donor’s act of
PHILANTHROPY and is NOT AIMED at giving publicity to the donor in such manner that it
would be an “advertising or promotion of his business”, then it can be said that there is
NO SUPPLY of “service” for a “CONSIDERATION (in the form of donation)”. In other
words, there is no obligation (quid pro quo) on part of recipient of the donation or gift to
do anything (supply a service). Therefore, there is no GST liability on such consideration.
2) Services provided TO the Government:- (Newly added part is highlighted in Red)
A) Entry 3:-
PURE services (EXCLUDING “works contract service OR other composite supplies involving supply
of any GOODS”) provided TO the “CG/SG/UT/LA” BY WAY OF:-
i) Any activity IN RELATION TO any function entrusted to a PANCHAYAT under article 243G of the
Constitution; OR
ii) Any activity IN RELATION TO any function entrusted to a MUNICIPALITY under article 243W of
the Constitution.
Note:- A “Pure Service” MEANS supply of services WITHOUT involving any supply of GOODS.

GST Amendments by CA Sahil Jain 29

 B) Entry 3A:-
COMPOSITE supply of goods and services in which the “Value of supply of GOODS” constitutes
NOT MORE THAN 25% of the value of the said COMPOSITE Supply provided TO the CG/SG/UT/LA
BY WAY OF:-
i) Any activity IN RELATION TO any function entrusted to a PANCHAYAT under article 243G of the
Constitution; OR
ii) Any activity IN RELATION TO any function entrusted to a MUNICIPALITY under article 243W of
the Constitution.
Note:- It is clarified, vide Circular No. 177/09/2022 GST, that if the services mentioned under
Entries 3 & 3A are PROCURED BY “Indian Army OR any other Government Ministry/Department
which does NOT perform any functions listed in the 11th and 12th Schedule, in the manner as a
local authority does for the general public”, the same are NOT eligible for exemption under Entries
3 and 3A.
C) Entry 11A:-
Service provided BY Fair Price Shops TO CG/SG/UT BY WAY OF sale of food grains, kerosene, sugar,
edible oil, etc. UNDER Public Distribution System AGAINST consideration in the form of
commission or margin.
D) Entry 16:-
Services provided TO the Central Government BY WAY OF transport of passengers with or without
accompanied belongings, BY Air, embarking from or terminating at a RCS (Regional Connectivity
Scheme) airport, AGAINST consideration in the form of VIABILITY GAP FUNDING.

However, NOTHING contained in THIS entry shall apply on or after the EXPIRY of a period of 3
years FROM the “date of COMMENCEMENT of operations of the RCS airport as NOTIFIED by the
Ministry of Civil Aviation”.

Note:- A “Regional Connectivity Scheme” is introduced to facilitate / stimulate regional air

connectivity by making it AFFORDABLE by supporting airline operators through:-
i) Concessions by “CG, SG and Airport Operators” to REDUCE the cost of airline operations ON
regional routes/other support measures; AND
ii) Financial (viability gap funding or VGF) support to meet the gap, if any, between the “cost of
airline operations” and “expected revenues on such routes”.

Under RCS, the UNDERSERVED airports of India are aimed to be connected to KEY AIRPORTS
through flights that will cost RS. 2,500 for per HOUR FLIGHT.

E) Entry 40:-
Services provided TO the CG/SG/UT under any insurance scheme for which TOTAL Premium is
PAID BY the CG/SG/UT.
3) Entry 41A & 41B:- (Entry deleted)
Supply of “TDR, FSI, long term lease (premium) of land” BY a landowner TO a developer are
EXEMPTED SUBJECT TO the condition that the “constructed flats are sold BEFORE issuance of
completion certificate” AND “tax is paid on them”.

EXEMPTION of TDR, FSI, long term lease (premium) shall be WITHDRAWN in case of flats sold AFTER

GST Amendments by CA Sahil Jain 30

 issue of completion certificate, but such WITHDRAWAL shall be LIMITED TO “1% of value in case of
AFFORDABLE” houses and “5% of value in case of OTHER THAN affordable houses”.
4) Entry 36A:- (Newly added part is highlighted in Red)
Services by way of REINSURANCE of the “insurance schemes specified in serial number 35 or 36 or
40”.
5) LEASING services:- [Entry 41] (Newly added part is highlighted in Red)
A) Service is EXEMPT if ALL of the following are satisfied:-
i) UPFRONT amount (called as premium, salami, cost, price, development charges or by any
other name) is payable;
ii) Service BY WAY OF granting of LONG term lease of 30 years, or more, is provided;
iii) The asset so leased are “industrial plots OR plots for development of infrastructure for
financial business”;
iv) The asset is given on lease BY “State Government Industrial Development Corporations or
Undertakings OR by any OTHER entity having 20% or more ownership of CG/SG/UT”
Explanation:- For the purpose of THIS exemption, the CG/SG/UT shall have 20% or more
ownership in the entity “directly OR through an entity which is WHOLLY owned by the
CG/SG/UT”.
v) The asset is given on lease TO “industrial units OR the developers in any industrial or financial
business area”.
B) AFORESAID exemption is admissible IRRESPECTIVE of whether such upfront amount is
payable/paid in one/more INSTALMENTS, provided the amount is DETERMINED UPFRONT.
C) Some MORE conditions which are to be satisfied to avail this exemption:-
i) The leased plots shall be USED FOR the purpose for which they are allotted, i.e., for industrial
or financial activity IN an industrial or financial business area.
ii) STATE Government concerned shall MONITOR and ENFORCE the above condition as per the
order issued by the State Government in this regard.
iii) In case of any “violation or subsequent change of land use”, DUE TO any reason whatsoever,
the ORIGINAL lessor, ORIGINAL lessee AS WELL AS any SUBSEQUENT lessee/ buyer/ owner
shall be JOINTLY AND SEVERALLY LIABLE to pay such amount of central tax(i.e. CGST), as WOULD
HAVE BEEN PAYABLE on the upfront amount charged for the long term lease of the plots BUT
FOR the exemption contained herein, ALONG WITH the applicable Interest and Penalty.
iv) The lease AGREEMENT entered into BY the original lessor WITH the original lessee or
subsequent lessee, or sub- lessee, AS WELL AS any SUBSEQUENT lease/ sale agreements, for
lease or sale of such plots to subsequent lessees or buyers or owners shall INCORPORATE in
the terms and conditions, the fact that the central tax was EXEMPTED on the long term lease
of the plots BY the original lessor TO the original lessee SUBJECT TO above condition and that
the parties to the said agreements UNDERTAKE TO COMPLY with the same.
Note:- “Upfront amount” is EXEMPT from GST. Allowing “choice of LOCATION of plot” is INTEGRAL
part of supply of LONG-term lease of plot and therefore, “location charge” is nothing, but PART of
“consideration charged for LONG term lease of plot”. Being charged upfront ALONG WITH the upfront
amount for the lease, the same is EXEMPT.

GST Amendments by CA Sahil Jain 31

 Accordingly, it is clarified, vide Circular No. 177/09/2022 GST, that “location charges OR preferential
location charges (PLC)” paid UPFRONT in ADDITION TO the “lease premium for LONG term lease of
land” constitute PART of upfront amount charged for long term lease of land and are eligible for the
SAME TAX TREATMENT, and thus eligible for exemption under Entry 41.
6) Entry 52A:- (Entire entry is deleted)
Tour operator service, which is performed “partly in India” AND “partly outside India”, supplied BY a
tour operator TO a “foreign tourist(explained below)”, TO THE EXTENT of the value of the “tour operator
service which is performed OUTSIDE India”.

However, “VALUE of the tour operator service performed outside India” shall be SUCH PROPORTION
of the “TOTAL CONSIDERATION charged for the ENTIRE tour” which is EQUAL TO the proportion which
the “number of DAYS for which the tour is performed OUTSIDE India” has to the “TOTAL number of
DAYS comprising the tour”, OR “50% of the total consideration charged for the entire tour”, whichever
is LESS.

Further, in making the above calculations, “any duration of time equal to or exceeding 12 hours shall
be CONSIDERED AS one full day” and “any duration of time less than 12 hours shall be taken as half a
day.

Explanation:- “foreign tourist” MEANS a person NOT NORMALLY resident in India, who enters India for
a stay of NOT MORE THAN 6 months for legitimate non-immigrant purposes.

Example:- A tour operator provides a tour operator service to a foreign tourist as follows:-
A) 3 days in India, 2 days in Nepal;
Consideration charged for the entire tour: Rs. 1,00,000
Exemption will be Rs. 40,000 [i.e. Lower of (1,00,000*2/5) and (50%*1,00,000)]
Therefore, Taxable value is 60,000 [i.e. 1,00,000 – 40,000]
B) 2 days in India, 3 nights in Nepal;
Consideration charged for the entire tour: Rs. 1,00, 000
Exemption will be Rs. 50,000 [i.e. Lower of (1,00,000*3/5) and (50%*1,00,000)]
Therefore, Taxable value is 50,000 [i.e. 1,00,000 – 50,000]
C) 2.5 days in India, 3 days in Nepal;
Consideration charged for the entire tour: Rs. 1,00,000
Exemption will be Rs. 50,000 [i.e. Lower of (1,00,000*3/5.5) and (50%*1,00,000)]
Therefore, Taxable value is 50,000 [i.e. 1,00,000 – 50,000]
7) Entry 79:- (Amendment is highlighted in Red)
Services BY WAY OF Admission TO a museum, national park, wildlife sanctuary, tiger reserve or
“zoo(defined below)”.

Note:- “Zoo” MEANS an establishment, whether stationary or mobile, where CAPTIVE animals are
kept for exhibition TO the public and INCLUDES a “circus AND rescue centres” but does NOT INCLUDE
a “circus” and “an establishment of a licensed DEALER in captive animals” [Section 2(39) of the Wild
Life (Protection) Act, 1972].
8) Entry 9AA:- (Entry deleted)
Services provided BY and TO “Fédération Internationale de Football Association (FIFA) and its
subsidiaries” directly or indirectly RELATED TO any of the events under FIFA U-17 Women’s World Cup
2020 TO BE hosted IN India.

GST Amendments by CA Sahil Jain 32

 Condition to be fulfilled:- Director (Sports), Ministry of Youth Affairs and Sports have to CERTIFY that
the services are directly/indirectly RELATED TO any of the events under FIFA U-17 Women’s World
Cup 2020.

Just for extra knowledge:- The 2020 world cup was NOT hosted by India since it was cancelled because
of COVID. India will now host the 2022 edition of the same games.
9) Entry 82A:- (Entry deleted)
Services by way of right to ADMISSION to the events organised under FIFA U-17 Women's World Cup
2020.
10) Entry 61A:- (New entry added to syllabus)
Services BY WAY OF granting “National Permit” TO a goods carriage to operate through-out India/
contiguous States.
11) Entry 9B:- (Entry deleted)
Supply of services ASSOCIATED WITH transit cargo TO “Nepal and Bhutan (landlocked countries)”.

² Ch 6:- Time of Supply

No amendment

² Ch 7:- Value of Supply

No amendment

² Ch 8:- Input Tax Credit (ITC)

1) Eligibility for taking ITC:- [Section 16(1)] (Newly added part is highlighted in Red)
A) REGISTRATION under GST:-
Every “REGISTERED person(defined above)” shall be ENTITLED to ITC of “GST charged on INWARD
supply of goods /services”. This is SUBJECT TO the “provisions relating to USE of ITC u/s 49” and
the “conditions and restrictions in the CGST rules”. [Section 49 is discussed in Chapter 9]
B) “Goods/services” to be USED FOR business purposes:-
ITC of GST will be available on “goods/services” which “are used OR intended to be used” IN the
course or furtherance of the “BUSINESS(defined previously)”. The “INTENTION to use” the goods and/or
services in the course or furtherance of business would ALSO SUFFICE for availing ITC on such
goods and/or services. ITC will be CREDITED TO “electronic CREDIT ledger”.
2) Conditions for taking ITC:- [Section 16(2)] (Newly added part is highlighted in Red)
THIS sub-section[i.e. 16(2)] starts with a non-obstante clause and hence ALL the conditions specified
therein must be fulfilled irrespective of fulfilment of any OTHER conditions given under any other SUB-
section of Section 16 for the purpose of taking of input tax credit. The registered person will be
entitled to ITC on a supply only if ALL the following 6 conditions are fulfilled:
3) OPTIONAL method for banks etc.:- [Section 17(4) read with rule 38] (Deleted from syllabus)
A) A “banking company OR a financial institution including a NBFC”, which accepts deposits, or
extends loans or advances, has the OPTION to go for Section 17(4) instead of 17(2)[not 17(1)]. IF it
chooses to opt for Section 17(4), it has to do as follows:-
i) The SAID company/institution shall NOT avail any ITC in respect of:-
a) the TAX PAID on “inputs and input services” that are USED FOR NON-business purposes;
AND

GST Amendments by CA Sahil Jain 33

 b) items mentioned u/s section 17(5)[blocked credits]
ii) FULL ITC can be availed i.r.o. “tax paid on supplies procured FROM another registration within
the SAME entity(i.e. 100% ITC can be availed i.r.o. Supplies BETWEEN entities having DIFFERENT GST Number but the SAME PAN
Number)
” PROVIDED such ITC does NOT get covered in EITHER of the cases mentioned in point (i)
above.
iii) 50% of the “REMAINING amount of input tax on inputs, capital goods and input services” shall
be the ITC admissible to SUCH company/institution.
B) The OPTION once exercised CANNOT be changed during the REMAINING PART of the FY.

² Ch 9:- Registration
1) Registration required only for a place of business from where taxable supply takes place:- (This is just a
clarificatory addition to syllabus which is not different in any way from what we have already discussed in class)

Even a “person LIABLE to get Registration because of getting covered u/s 22” is NOT liable to obtain
registration in THE “State/UT from where he makes an EXEMPT or NON-TAXABLE Supply”.

It is pertinent to note here that a supplier is required to obtain registration only IN the State(s) “FROM
where taxable supply is made” and NOT “where taxable supply is made”. It may be noted that IF
goods and/or services are supplied in different States, GST registration is NOT required in EACH such
State(s).

Further, registration is required to be obtained only IN the State(s) where the supplier has a “fixed
establishment(defined previously)”. This aspect is more relevant in respect of supply of services like repair &
maintenance, transportation, security, erection & commissioning services and construction contracts
etc.

Thus, if a person has ONLY liaison office or marketing office in a State and if there is no taxable supply
from THAT State, he is NOT required to obtain registration in THAT State, EVEN IF he is registered in
OTHER State/s. Thus, in that State where liaison office or marketing office is located, he will be treated
as ‘unregistered’.

For instance, Mr. X having registered office in Delhi, imports goods which are landed in Mumbai sea
port. Mr. X enters into a sales agreement with Mr. Y located in Mumbai to directly sell the goods from
Mumbai port. In this case, Mr. X is not required to obtain registration IN Mumbai as HE has no fixed
establishment IN Mumbai.
2) REQUIREMENT of getting registered u/s 24:- (Newly added part is highlighted in Red)
The category of persons required to COMPULSORY get registered under GST have been enlisted
below:-
A) Persons making any INTER-State “TAXABLE supply”;

Interlinking:- However, Section 23 provides EXEMPTION from Registration up to a THRESHOLD

LIMIT of Rs. 20 lakh/10 Lakhs in case of INTER- State supply of “taxable services” AND of “notified
handicraft goods”.
B) “Casual taxable persons (CTP)” making “TAXABLE supply”.

Interlinking:- However, Section 23 provides a THRESHOLD LIMIT of Rs. 20 lakh/10 Lakhs in case of
CTP who is “making INTER-State taxable supplies of notified handicraft goods” AND “availing the
benefit of EXEMPTION from Registration as mentioned u/s 23”.

GST Amendments by CA Sahil Jain 34

 C) “Non-resident taxable persons (NRTP)” making “TAXABLE supply”.
D) “Persons who are REQUIRED to PAY TAX under REVERSE Charge” on INWARD supplies received.

Interlinking:- However, persons engaged EXCLUSIVELY in making “OUTWARD supplies, tax on

which is liable to be paid on REVERSE charge basis” are EXEMPT from Registration u/s 23.
E) Persons who make “TAXABLE supply” of goods or services or both ON BEHALF OF “other TAXABLE
persons” whether AS an agent or otherwise.
F) Persons who are required to pay tax under section 9(5), i.e. E-commerce operator who is required
to pay tax on SPECIFIED services; AND
G) such OTHER person or class of persons as may be NOTIFIED by the Government on the
recommendations of the Council.
Note:- There are some other persons also who are required to get registered as per Section 24 but
they are NOT covered in CA Inter Level Syllabus, hence, not discussed here.
3) HOW to get Aadhaar Authentication done? (Newly added part is highlighted in Red)
A) NEW registrants:-
i) While filing the “APPLICATION for registration”, the applicant gets an OPTION as to whether he
wants to opt for Aadhaar authentication or not. If he OPTS “Yes” for Aadhaar authentication,
GST system sends "authentication link" ON the “mobile numbers and email ids (mentioned in
the registration application)” OF “promotor/partner AND primary authorized signatory” which
are SELECTED by the applicant.

Note:- While opting for Aadhaar authentication, the applicant needs to select ATLEAST “1
Primary Authorized Signatory” AND “1 Promoter/ Partner/Karta/Director/Member” FOR
authentication purposes.
ii) On clicking the “verification link”, a window for Aadhaar authentication will open where they
have to ENTER the “Aadhaar Number” and the “OTP received by them ON the mobile number
and email id linked with Aadhaar”.
iii) Once Aadhaar authentication has been successfully VALIDATED, the following happens:-
a) his application will be DEEMED to be approved WITHIN 7 working days UNLESS the tax
official raises a “show cause notice” WITHIN stipulated time; AND
b) the “registration application submitted by him” will NOT be marked for “MANDATORY Site
Visit”.
iv) However, in case the applicant does “NOT OPT for Aadhaar authentication WHILE applying for
registration” OR “where his Aadhar authentication FAILS in validation”, the following
happens:-
a) Registration application will NOT be deemed approved WITHIN 7 working days; AND
b) It will be marked for “MANDATORY Site Visit” and approval thereafter, BY the tax official.
Note:- In such a case, Registration application will get DEEMED approved after 30 calendar
days, IF tax official doesn't take any action. If tax official raises SCN WITHIN 30 calendar days,
then applicant has 7 working days to reply to it. Tax official can take further action on that
reply within 7 working days. If tax official doesn't take any action after receipt of applicant’s
reply within next 7 working days, his application will get DEEMED approved.

GST Amendments by CA Sahil Jain 35

 4) Procedure to get Registration AS a “CTP” or “NRTP”:- (Amendment is highlighted in Red)
A) Requirement to get Registered:-
Both “CTP” and “NRTP” have to COMPULSORILY get registered under GST IRRESPECTIVE of the
threshold limit, AT LEAST 5 days prior to commencement of business.

Note:- Section 23 provides EXEMPTION from Registration to CTP on satisfaction of certain

conditions.
B) Requirement to have a PAN:-
As per section 25(6), EVERY person MUST have a PAN to be eligible for registration. Since NRTP will
generally NOT have a PAN of India, he MAY be granted registration on the basis of “OTHER
prescribed documents”.

Thus, a NRTP has to SUBMIT a “self-attested copy of his valid PASSPORT” ALONG WITH the
“Application signed duly signed OR verified through electronic verification code BY his authorized
signatory who is an INDIAN RESIDENT having valid PAN”.

However, in case of a “business entity incorporated or established OUTSIDE India”, the

“Application for registration” shall be submitted ALONG WITH “its tax identification number or
unique number on the basis of which the entity is identified by the Government of that country or
its PAN, if available”.
5) Special provisions for grant of registration in case of persons required to deduct tax at source under
section 51 or to collect tax at source under section 52:- [Rule 12] (Entire provision is newly inserted)
“APPLICATION for registration” has to be submitted by SUCH persons in a DIFFERENT prescribed form
at GST Common Portal. They would be GRANTED registration within 3 WORKING days FROM the
“date of SUBMISSION of application” AFTER due verification.

Where, “on a request made in writing BY a person TO whom a registration has been GRANTED under
rule 12(2)” OR “upon an enquiry” OR “pursuant to any OTHER proceeding under the CGST Act”, the
proper officer is satisfied that a person to whom a certificate of registration has been ISSUED is NO
LONGER LIABLE to “deduct tax at source u/s 51 OR collect tax at source u/s 52”, the said officer may
CANCEL the registration issued and such cancellation shall be COMMUNICATED to the said person
electronically.
6) Amendment of Registration:- [Section 28 read with Rule 19] (Newly inserted part is highlighted in Red)
A) Definitions:-
i) Core Fields:-
Core fields are “legal name of the business”, “addition / deletion of stakeholders(like Partners,
Directors, Karta etc.)
”, “ADDRESS of principal place of business or additional place of business”.
ii) Non-core Fields:-
“ALL OTHER fields” are “non-core fields” LIKE “name of day to day functionaries, e-mail ids,
mobile numbers, etc.”.
B) Where there is ANY change in the “particulars furnished in registration application/UIN
application”, registered person or UIN holder SHALL submit the following AT the Common Portal:-
i) Submit an APPLICATION in prescribed manner, EITHER “at the time of obtaining registration or
Unique Identity Number” OR “as amended from time to time”, WITHIN 15 days of such
change; AND

GST Amendments by CA Sahil Jain 36

 ii) Submit the DOCUMENTS relating to such change.

² Ch 10:- Tax Invoice, Credit & Debit Notes

1) What is the FORMAT which is to be followed while making an Invoice? [Sections 31(1) & (2) read
with rule 46] (Newly inserted part is highlighted in Red)
There is no format prescribed for the Tax Invoice. All GST taxpayers are free to design their OWN Tax
Invoice Format. Only certain FIELDS, as mentioned below, have been prescribed as MANDATORY
fields:-
A) “Name, address and GSTIN” OF the supplier;
B) A CONSECUTIVE serial number NOT EXCEEDING 16 characters, in one or multiple series,
CONTAINING “alphabets/numerals/special characters, hyphen, dash, slash, and any combination
thereof”, UNIQUE for A FY;
C) Date of its ISSUE;
D) EITHER of the following:-
Details to be
mentioned

Recipient is Registered "Name, address and GSTIN or UIN" OF recipient

"Value of Supply" is NA (unregistered recipient may still REQUEST the aforesaid
Recipient is NOT LESS THAN 50,000 details to be recorded in the tax invoice)
Registered "Value of Supply" is "Name and address of the recipient" AND the "address of
50,000 or more delivery, ALONG WITH the name of State and its code"

Note:- Where any taxable service is supplied BY OR THROUGH an electronic commerce operator
OR BY a supplier of OIDAR services TO a recipient who is UNREGISTERED, IRRESPECTIVE of the
value of such supply, a tax invoice issued BY the registered person SHALL CONTAIN the “name and
address of the recipient along with its PIN code” and the “name of the State” and the SAID address
shall be DEEMED to be the “address on record of the RECIPIENT”.
E) HSN code for goods or services;
F) DESCRIPTION of goods or services;
G) “QUANTITY in case of goods” AND “Unit or Unique Quantity Code thereof”;
H) Total “Value of Supply” of goods or services or both;
I) TAXABLE “Value of Supply” of goods or services or both TAKING INTO ACCOUNT “discount or
abatement, if any”;
J) RATE of tax (central tax, State tax, integrated tax, Union territory tax or cess);
K) AMOUNT of tax charged i.r.o. TAXABLE goods or services (CGST/SGST/UTGST/IGST or cess);
L) “PLACE of supply” ALONG WITH the “Name of State”, IN CASE OF a supply in the course of INTER-
State trade or commerce;
M) “Address of delivery” where the same is DIFFERENT from the “Place of Supply”;
N) Whether the tax is payable on REVERSE Charge Basis;
O) “Signature or digital signature” OF the “supplier OR his authorized representative” (NOT REQUIRED
in case of issuance of an electronic invoice IN ACCORDANCE WITH the provisions of the
Information Technology (IT) Act, 2000); AND

GST Amendments by CA Sahil Jain 37

 P) Quick Response (QR) code, having embedded Invoice Reference Number (IRN) in it, in case E-
invoice has been issued.
Note:- The taxpayers EXEMPTED from the mandatory requirement of e-invoicing (discussed subsequently) are
required to provide a DECLARATION on the tax invoice stating that though their “aggregate turnover”
EXCEEDS the “NOTIFIED aggregate turnover for e-invoicing”, they are NOT required to prepare an e-
invoice.
2) Can an invoice reported to IRP be CANCELLED/AMENDED? (Newly inserted part is highlighted in Red)
A) Where needed, the seller CAN CANCEL IRN for an “e-invoice ALREADY REPORTED by reporting it on
IRP” WITHIN specified time.

However, if the CONNECTED e-way bill is “active OR verified by officer during transit”, cancellation
of IRN will NOT be permitted.
B) AMENDMENT of “e-invoice already uploaded on IRP” is not possible through the IRP. However, the
same can be done only ON GST portal WHILE filing GSTR-1.
3) Compliance with the Dynamic QR Code requirements in certain cases:- (Newly inserted part is highlighted in Red)
IF the supplier has issued “Invoice HAVING Dynamic QR Code for payment”, the SAID invoice shall be
DEEMED to have complied with Dynamic QR Code requirements.

Compliance with the “Dynamic QR Code requirements” has been examined in FOLLOWING cases:-
A) Case 1:- IF a supplier provides/ displays Dynamic QR Code, BUT the customer opts to make
payment WITHOUT using Dynamic QR Code AND supplier provides the cross reference of such
payment made without use of Dynamic QR Code, ON the invoice
In cases where the supplier, has DIGITALLY displayed the Dynamic QR Code AND the customer
PAYS for the invoice:-
i) USING “any mode LIKE UPI, credit/ debit card or online banking or cash or combination of
various modes of payment”, WITH or WITHOUT using Dynamic QR Code, AND the supplier
provides a “CROSS REFERENCE(transaction id along with date, time and amount of payment, mode of payment like UPI, Credit
card etc.)
of the payment” ON the invoice; OR
ii) IN Cash, WITHOUT using Dynamic QR Code AND the supplier provides a “CROSS REFERENCE of
the amount paid in cash”, ALONG WITH “date of such payment” ON the invoice;
the SAID invoice shall be DEEMED to have complied with the requirement of having a “Dynamic
QR Code”.
B) Case 2:- IF a supplier makes available to customers an electronic mode of payment like UPI Collect,
UPI Intent etc., through mobile applications or computer-based applications, WHERE though
Dynamic QR Code is not displayed, BUT the details of merchant as well as transaction are
displayed/ captured otherwise
In such cases, IF the “CROSS REFERENCE of the payment made USING such electronic modes of
payment” is made ON the invoice, the invoice shall be DEEMED to comply with the requirement of
“Dynamic QR Code”.

However, IF payment is made AFTER generation/ issuance of invoice, the supplier SHALL provide
Dynamic QR Code ON the Invoice.
C) Case 3:- In case of pre-paid invoices i.e. where payment has been made BEFORE issuance of the
invoice
If “CROSS REFERENCE of the payment received EITHER through electronic mode OR through cash

GST Amendments by CA Sahil Jain 38

 OR combination thereof” is made ON the invoice, THEN the invoice would be DEEMED to have
complied with the requirement of “Dynamic QR Code”.

In “cases OTHER THAN pre-paid supply i.e. where payment is made AFTER generation / issuance of
invoice”, the supplier SHALL provide Dynamic QR Code ON the Invoice.
D) Case 4:- In case where the “e-commerce operator (ECO)/online application” has COMPLIED WITH
the Dynamic QR Code requirements, whether the “Suppliers using SUCH e-commerce portal or
application” will STILL be required to comply with the requirement of Dynamic QR Code?
“Dynamic QR code” requirements apply to EACH supplier/registered person SEPARATELY, IF
“SUCH person is LIABLE to issue invoices WITH Dynamic QR Code FOR B2C supplies”.

In case, the “Supplier is making supply THROUGH the e- commerce portal or application”, AND the
SAID supplier gives “CROSS REFERENCES of the payment received IN RESPECT OF the said supply”
ON the invoice, then such invoices would be DEEMED to have complied with the requirements of
Dynamic QR Code.

In “cases OTHER THAN pre-paid supply i.e. where payment is made AFTER generation / issuance of
invoice”, the supplier SHALL provide Dynamic QR Code ON the Invoice.
E) Case 5:- In case of RETAIL sales over the counter, the payment from the customer is received ON
the payment counter by DISPLAYING dynamic QR code on digital display, whereas the invoice,
along with invoice number, is generated ON the processing system being used by supplier/
merchant AFTER receiving the payment.
In such cases, it may NOT be possible for the merchant/ supplier to provide “details OF invoice
number” IN the dynamic QR code displayed TO the customer ON payment counter. However,
EACH transaction i.e. receipt of payment from a customer is having a UNIQUE Order ID/ sales
reference number, which is LINKED WITH the invoice for the SAID transaction.

In such cases, the UNIQUE order ID/ unique sales reference number, which is uniquely linked to
the invoice issued for the said transaction, may be provided IN the Dynamic QR Code FOR digital
display, as long as the “details of SUCH unique order ID/ sales reference number linkage with the
invoice are available ON the processing system of the merchant/ supplier” AND “the cross
reference of SUCH payment along with unique order ID/ sales reference number are ALSO
provided on the invoice”.
F) Case - VI: In case PART-payment is received BEFORE dynamic QR code is generated.
When the PART-payment for any supply has ALREADY been received from the customer/ recipient,
EITHER in advance OR by adjustment (e.g. using a voucher, discount coupon etc), BEFORE the
dynamic QR Code is generated, then the dynamic QR code may provide only the REMAINING
amount payable by the customer/ recipient against “invoice value”.

The details of TOTAL invoice value, along with details/ cross reference of the part payment/
advance/ adjustment done, AND the remaining amount to be paid, should be provided ON the
invoice.
4) Supplier permitted to issue “any document OTHER THAN tax invoice”:- (Newly inserted part is highlighted in Red)
A) Section 31(2) and Proviso to section 31(1) read with rules 54 and 55 gives the Government a power
using which the Government may, on the recommendations of the Council, BY notification and

GST Amendments by CA Sahil Jain 39

 SUBJECT TO such conditions as may be mentioned therein, specify the CATEGORIES of services(not
Goods)
in respect of which:-
i) any “OTHER document issued in relation to the supply” shall be DEEMED to be a “tax invoice”;
OR
ii) “tax invoice” may NOT be issued.
B) FOLLOWING suppliers may issue a “tax invoice”, but they are ALSO permitted to issue “any OTHER
document IN LIEU OF tax invoice, by whatever name called”:-
i) Supplier 1:- Insurer/Banking company/Financial institution, including NBFC
A customer may avail NUMEROUS services from the bank / insurer IN a given tax period. SUCH
entities MAY issue a CONSOLIDATED tax invoice/ statement/ advice, any OTHER document in
lieu thereof, by whatever name called MAY BE issued/ made available, physically/
electronically, FOR supply of “services made DURING a month” AT the End of the month. The
document so issued AT the End of month shall contain the following:-
a) OPTIONAL Information in the “Document issued IN LIEU of Tax Invoice”:-
> Serial number; AND
> Address of the RECIPIENT of taxable service.
b) MANDATORY Information in the “Document issued IN LIEU of Tax Invoice”:-
“OTHER information (OTHER THAN serial no. and address of recipient)” as PRESCRIBED FOR
a Tax Invoice, UNDER rule 46.

Note:- The signature or digital signature OF the supplier/his authorised representative shall
NOT be required in the case of issuance OF a “consolidated tax invoice or any other
document in lieu thereof” IN ACCORDANCE WITH the provisions of the Information
Technology Act, 2000.
ii) Supplier 2:- Goods Transport Agency (GTA) supplying services in relation to transportation of
goods by road in a goods carriage
The said supplier shall issue a tax invoice or any other document in lieu thereof, by whatever
name called, containing the following particulars:-
a) OPTIONAL Information in the “Document issued IN LIEU of Tax Invoice”:-
Not Applicable
b) MANDATORY Information in the “Document issued IN LIEU of Tax Invoice”:-
> GROSS WEIGHT of the consignment;
> NAME of the “consignor” AND the “consignee”;
> REGISTRATION NUMBER of “goods carriage in which the goods are transported”;
> Details of GOODS transported;
> Details of PLACE of “origin and destination”;
> GSTIN of the “person liable for paying tax” WHETHER AS “consignor, consignee or GTA”;
AND
> OTHER information as PRESCRIBED FOR a tax invoice, UNDER rule 46.

GST Amendments by CA Sahil Jain 40

 iii) Supplier 3:- Supplier of Passenger Transportation Service
“Tax invoice” shall INCLUDE “TICKET in any form, by whatever name called” where such Ticket
should contain the following:-
a) OPTIONAL Information in the “Document issued IN LIEU of Tax Invoice”:-
> Serial number; AND
> Address of the RECIPIENT of taxable service.
b) MANDATORY Information in the “Document issued IN LIEU of Tax Invoice”:-
“OTHER information (OTHER THAN serial no. and address of recipient)” as PRESCRIBED FOR
a Tax Invoice, UNDER rule 46.

Note:- The signature or digital signature OF the supplier/his authorised representative shall
NOT be required in the case of issuance OF the “Ticket” IN ACCORDANCE WITH the
provisions of the Information Technology Act, 2000.
iv) Supplier 4:- Registered person supplying services by way of admission to exhibition of
cinematograph films in MULTIPLEX screens
Supplier is required to issue an “ELECTRONIC Ticket” and the SAID electronic ticket shall be
DEEMED to be a “tax invoice”. The said Electronic Ticket should contain the following:-
a) OPTIONAL Information in the “Document issued IN LIEU of Tax Invoice”:-
Details OF “RECIPIENT of service”
b) MANDATORY Information in the “Document issued IN LIEU of Tax Invoice”:-
“OTHER information (OTHER THAN details of recipient of service)” as PRESCRIBED FOR a Tax
Invoice, UNDER rule 46.
However, supplier of SUCH service in a “screen OTHER THAN multiplex screens” MAY, at his
OPTION, follow the above procedure.
Note:- Keeping in mind the LARGE NUMBER of Transactions in “banking, insurance and passenger
transportation sector”, taxpayers NEED NOT mention the “address of the customer” and the
“serial number” in their invoices, as mentioned above
5) What is Invoice-cum-Bill of Supply? [Rule 46A] (Newly inserted part is highlighted in Red)
Where a “registered person” is supplying “taxable” AS WELL AS “exempted” goods/services/both TO
an unregistered person, A SINGLE “invoice-cum-bill of supply” may be issued BY a Registered Supplier
when ALL of the following are satisfied:-
A) The supplier is supplying “taxable” AS WELL AS “exempted” goods/services/both; AND
B) The supply is made TO an “UNREGISTERED Person”.
Note:-
i) Rule 46A is NOTWITHSTANDING anything contained in rule 46 OR rule 49 OR rule 54 of CGST
Rules.
ii) The said single "invoice-cum-bill of supply" SHALL contain the PARTICULARS as specified under
rule 46 or rule 54, as the case may be, and rule 49.
6) WHEN is a Delivery Challan required to be issued? [Rule 55] (Deleted part is highlighted in Red)
Rule 55 specifies the cases where AT the time of removal of goods(not Services), goods MAY BE “removed
on delivery challan” AND “invoice may be issued AFTER delivery”.

GST Amendments by CA Sahil Jain 41

 The said cases are provided below wherein a Delivery Challan which is “serially numbered NOT
EXCEEDING 16 characters in one or multiple series” shall be issued AT the time of REMOVAL of goods
FOR transportation:-
A) Supply of liquid gas where the quantity AT the time of removal from the place of business of the
supplier is NOT known;
B) Transportation of goods for JOB WORK;
C) Transportation of goods for reasons OTHER THAN by way of supply; OR
D) Such other supplies as may be NOTIFIED by the Board

² Ch 11:- E-way Bill (EWB)

1) In WHICH cases is the E-way Bill required to be issued? (Deleted part is highlighted in Red)
In the following cases, e-way bill HAS TO BE issued EVEN IF the “value of the consignment” is LESS
THAN Rs. 50,000:-
A) INTER-State transfer of goods BY principal TO job-worker:-
Where goods are sent BY a principal located in one State or Union territory TO a job worker
located in any OTHER State or Union territory, the e-way bill SHALL be generated EITHER BY the
“principal OR the job worker, if REGISTERED”, IRRESPECTIVE of the value of the consignment.
[Third proviso to rule 138(1)]
B) INTER-State transfer OF handicraft goods BY a person exempted from obtaining registration:-
Where “Handicraft Goods (discussed in Notification No. 56/2018 CT in Ch-7 u/s 23)” are transported FROM one State
or Union territory TO another State or Union territory BY a person who has been EXEMPTED from
the “requirement of obtaining REGISTRATION u/s 24(1)/(2)”, the e-way bill shall be generated BY
the SAID person IRRESPECTIVE of the value of the consignment. [Fourth proviso to rule 138]

² Ch 12:- Accounts & Records(Entire chapter is new)

Do from notes starting on next page

GST Amendments by CA Sahil Jain 42

 Ch-12 : Accounts & Records
Assessment in GST is mainly focused on self-assessment by the taxpayers themselves. Every taxpayer is
required to self-assess the taxes payable and furnish a return for each tax period i.e. the period for which
return is required to be filed.
The compliance verification is done by the Department through scrutiny of returns and/or investigation.
Thus, the compliance verification is to be done through documentary checks rather than physical controls.
This requires certain obligations to be cast on the taxpayer for keeping and maintaining accounts and
records. Such accounts and records may be used by the department for compliance verification.

Every registered person shall keep and maintain all records at his principal place of business. Responsibility
has been casted on the owner or operator of warehouse or godown or any other place used for storage of
goods and on every transporter to maintain specified records even if they are not registered under GST.
They need not enroll for this purpose.

Further, Commissioner is empowered to notify a class of taxable persons to maintain additional accounts
or documents for specified purpose or to maintain accounts in other prescribed manner. Similarly, the
Commissioner can permit a class of taxable persons to maintain accounts in such manner as may be
prescribed if that class of taxable person is not in a position to keep and maintain accounts in accordance
with the provisions of GST Laws.

It is not mandatory to maintain the accounts in electronic form. Accounts and records may be maintained
either electronically or manually. Further, there is no prescribed format for maintaining the accounts.
Chapter VIII – Accounts and Records [Sections 35 and 36] of the CGST Act and Chapter VII – Accounts and
Records [Rules 56 to 58] of the CGST Rules, 2017, enumerates the accounts and records required to be
maintained by a taxpayer and the period for which such accounts and records are required to be
preserved. State GST laws also prescribe identical provisions in relation to accounts and records. Provisions
relating to Accounts and Records under CGST Act have also been made applicable to IGST Act vide section
20 of the IGST Act.

² Relevant Definitions
1) Commissioner [Section 2(24)]:-
It MEANS the Commissioner of “central tax” and INCLUDES the “PRINCIPAL Commissioner of central
tax appointed under section 3” AND the “Commissioner of integrated tax appointed under the
Integrated Goods and Services Tax Act”.
2) Principal place of business [Section 2(89)]:-
It MEANS the place of business specified as the “PRINCIPAL place of business” in the “certificate of
registration”.

² Accounts & Records

1) Who is required to maintain books of accounts and at which place?:- [Section 35(1) read with rule
56(7) and 56(10)]
Every “REGISTERED person[defined u/s 2(94)]” shall KEEP and MAINTAIN, books of accounts AT his
“PRINCIPAL place of business (hereinafter referred to as PPoB)” AND books of account RELATING TO
“ADDITIONAL place of business (hereinafter referred to as APoB)” [as mentioned IN the certificate of
registration].

Where MORE THAN ONE place of business is specified IN the certificate of registration, the accounts

CA SAHIL JAIN | PAGE 12.1 43

 relating to EACH place of business shall be kept at SUCH places of business.

Unless PROVED otherwise, IF any documents, registers, or any books of account BELONGING TO a
registered person are found AT “any premises OTHER THAN those mentioned in the certificate of
registration”, they shall be PRESUMED to be MAINTAINED BY the “SAID registered person”.
2) Which accounts and records are required to be maintained?
A) A TRUE and CORRECT account of following is to be maintained:-
i) production or manufacture of goods;
ii) inward and outward supply of goods or services or both;
iii) stock of goods;
iv) input tax credit availed;
v) output tax payable and paid
vi) such other particulars as may be PRESCRIBED [Section 35(1)]
B) Where the Commissioner considers that any CLASS of taxable persons is NOT in a position to keep
and maintain accounts in accordance with the provisions of THIS section, he may, for reasons to be
recorded IN WRITING, PERMIT such class of taxable persons to maintain accounts in SUCH
MANNER as may be PRESCRIBED. [Section 35(4)]
C) The Commissioner may NOTIFY a class of taxable persons to maintain ADDITIONAL accounts or
documents for SUCH purpose as may be specified therein. [Section 35(3)]

The ADDITIONAL records to be maintained by SPECIFIED persons are as under:-

i) Registered person:- [Rule 56(1)/(2)/(3)/(4)/(5)/(6)]
In ADDITION to the particulars mentioned in section 35(1), the rules ALSO provide that the
“registered person” is required to MAINTAIN a TRUE and CORRECT account of:-
a) the goods/services imported/exported,
b) “supplies attracting payment of tax on REVERSE CHARGE” ALONG WITH relevant
documents, including invoices, bills of supply, delivery challans, credit notes, debit notes,
receipt vouchers, payment vouchers and refund vouchers.
c) separate account of advances received, paid and adjustments made thereto.
d) particulars of:
> names and complete addresses of suppliers FROM WHOM he has received the goods or
services chargeable to tax under the Act;
> names and complete addresses of the persons TO WHOM he has supplied goods or
services, where required under the provisions of THIS Chapter.
e) particulars of the complete address of the premises where goods are STORED by him,
including goods stored during transit along with the particulars of the stock stored therein.

However, if ANY taxable goods are found to be stored AT “any place(s) OTHER THAN those
so DECLARED” WITHOUT the cover of any valid documents, the proper officer shall
determine the “amount of tax payable on SUCH goods” AS IF such goods have been
SUPPLIED by the registered person.

ACCOUNTS & RECORDS | PAGE 12.2 44

 A supplier is required to maintain FOLLOWING records relating to “STOCK of goods” and
“tax details”. However, a supplier who has OPTED for “composition scheme” is NOT
required to maintain SUCH records. [Rule 56(2) and (4)]
• Stock of goods:-
Accounts of stock in respect of goods RECEIVED and SUPPLIED by him, and such
accounts shall contain PARTICULARS OF the opening balance, receipt, supply, goods
lost, stolen, destroyed, written off or disposed of by way of gift or free sample and
the balance of stock including raw materials, finished goods, scrap and wastage
thereof.
• Details of tax:-
Account, containing the DETAILS OF tax payable (including tax payable under reverse
charge), tax collected and paid, input tax, input tax credit claimed, together with a
register of tax invoice, credit notes, debit notes, delivery challan issued or received
during any tax period.
ii) Agent:- [Rule 56(11)]
Every agent shall MAINTAIN ACCOUNTS depicting the:-
a) particulars of AUTHORISATION received by him from EACH principal to receive/supply
goods/services ON BEHALF OF such principal separately;
b) particulars including description, value and quantity (wherever applicable) of
goods/services RECEIVED on behalf of EVERY principal;
c) particulars including description, value and quantity (wherever applicable) of
goods/services SUPPLIED on behalf of EVERY principal;
d) details of ACCOUNTS furnished to EVERY principal; and
e) TAX PAID on receipts/ supply of goods/services effected on BEHALF OF every principal.
iii) Manufacturer:- [Rule 56(12)]
Apart from OTHER records, EVERY registered person MANUFACTURING goods has to maintain
MONTHLY production accounts showing quantitative details of raw materials/services used in
the manufacture and quantitative details of the goods so manufactured including the waste
and by products thereof.
iv) Service Provider:- [Rule 56(13)]
Every registered person supplying services has to ADDITIONALLY maintain the accounts
showing quantitative “details of GOODS USED in the provision of services”, “details of input
services utilised and the services supplied”.
v) Person executing works contract:- [Rule 56(14)]
EVERY registered person executing “works contract” shall keep SEPARATE accounts for works
contract showing:-
a) the names and addresses of the “persons on whose behalf the works contract is executed”;
b) description, value and quantity (wherever applicable) of goods/services RECEIVED for the
execution of works contract;
c) description, value and quantity (wherever applicable) of goods/services UTILIZED in the
execution of works contract;

CA SAHIL JAIN | PAGE 12.3 45

 d) the details of payment received in respect of EACH works contract; AND
e) the names and addresses of suppliers from whom he RECEIVED goods or services.
vi) Custodian/clearing and forwarding agent:- [Rule 56(17)]
Any person having custody over the goods IN THE CAPACITY OF a “carrier OR a clearing and
forwarding agent” FOR delivery or dispatch thereof TO a recipient ON BEHALF OF any
registered person shall maintain true and correct records in respect of such goods handled by
him on behalf of such registered person and shall produce the details thereof as and when
required by the proper officer.
vii) Owner/operator of a warehouse/godown and transporter:- [Section 35(2) read with rule 58]
a) “Every owner OR operator” OF “warehouse or godown or any other place” USED FOR
STORAGE of goods AND “every transporter”, IRRESPECTIVE of whether he is a registered
person or not, SHALL MAINTAIN RECORDS OF the consigner, consignee and other relevant
details of the goods in such manner as may be PRESCRIBED.
b) Enrolment, if not already registered in GST:- [Rule 58(1), 58(2) & 58(3)]
If SUCH persons are NOT already registered, they shall obtain a “unique enrollment
number” by applying electronically [In Form GST ENR-01] AT the GST Common Portal.

The person enrolled as aforesaid in any OTHER State or Union territory shall be DEEMED to
be enrolled in THE State or Union territory.

Such person may also AMEND the details furnished in the prescribed form.

Such person, once obtained “unique enrollment number”, shall NOT be eligible to use ANY
of the GSTIN.
c) Transporter:- [Rule 58(4)(a)]
Any person ENGAGED IN the business of TRANSPORTING GOODS shall maintain records of
“goods transported, delivered and goods stored in transit by him” ALONG WITH “GSTIN of
the registered consignor and consignee” for EACH of his branches.
d) Owner/operator of a warehouse/ godown:- [Rule 58(4)(b) & Rule 58(5)]
Every “owner OR operator” OF a “warehouse or godown” shall maintain books of accounts
with respect to the PERIOD for which particular goods remain in the warehouse, including
the particulars relating to dispatch, movement, receipt, and disposal of such goods.

The “owner or the operator” OF the godown shall STORE the goods in such manner that
they can be identified item-wise and owner-wise and shall FACILITATE any “physical
verification OR inspection” BY the proper officer on demand.
3) How the accounts and records will be maintained? [Second proviso to section 35(1) read with rule
56(7), (8), (9), (15), (16) and (18) and rule 57]
A) Records may be maintained MANUALLY
i) EACH volume of books of account maintained MANUALLY by the registered person shall be
SERIALLY NUMBERED.
B) Records may be maintained in ELECTRONIC FORM
i) Books of account INCLUDE ANY electronic form of data stored on ANY electronic device.

ACCOUNTS & RECORDS | PAGE 12.4 46

 ii) The registered person may keep and maintain SUCH accounts and other particulars in
electronic form stored on any electronic device and record so maintained shall be
AUTHENTICATED by means of a digital signature.
iii) Proper electronic back-up of records shall be maintained and preserved in such manner that,
in the event of DESTRUCTION of such records due to accidents or natural causes, the
information can be RESTORED within a reasonable period of time.
iv) The registered person maintaining ELECTRONIC records shall produce, on demand, the
relevant records or documents, duly AUTHENTICATED by him, in hard copy OR in any
electronically readable format.
v) Where the accounts and records are stored ELECTRONICALLY by any registered person, he
SHALL, on demand, provide the details of such files, passwords of such files and explanation
for codes used, where necessary, for access and any other information which is required for
such access along with a sample copy in print form of the information stored in such files.
C) No entry to be erased/overwritten
i) Any entry IN “registers, accounts and documents” shall NOT be erased, effaced or overwritten.
ii) All INCORRECT entries, OTHERWISE THAN those of clerical nature, SHALL be “scored out under
attestation” and there after “correct entry shall be recorded”.
iii) Where the registers and other documents are maintained ELECTRONICALLY, a log of EVERY
entry edited or deleted shall be maintained.
D) “ACCOUNTS maintained by the registered person” TOGETHER WITH “ALL the invoices, bills of
supply, credit and debit notes, and delivery challans relating to stocks, deliveries, inward supply
and outward supply” shall be PRESERVED for the period as provided in section 36 [discussed subsequently
in this Chapter]
and shall, where such accounts and documents are maintained MANUALLY, be KEPT AT
EVERY “related place of business mentioned in the certificate of registration” and shall be
ACCESSIBLE AT EVERY “related place of business where such accounts and documents are
maintained digitally”.
E) Every registered person shall, on demand, PRODUCE the “books of accounts which he is REQUIRED
TO MAINTAIN under any law for the time being in force”.
4) What are the consequences of failure to maintain the accounts? [Section 35(6)]
Where the registered person FAILS TO ACCOUNT FOR the goods and/or services in accordance with
the provisions of section 35(1), the proper officer SHALL determine the “amount of tax payable ON the
goods or services or both that are NOT ACCOUNTED FOR, AS IF SUCH goods or services or both had
been SUPPLIED by such person AND the provisions of “section 73/section 74(discussed in CA Final)”, as the
case may be, shall, mutatis mutandis, apply FOR determination of such tax.
5) What is the PERIOD of RETENTION of ACCOUNTS:- [Section 36]
Every registered person required to KEEP and MAINTAIN “books of account or other records in
accordance with the provisions of section 35(1)” SHALL retain them UNTIL the expiry of 72 months
FROM the “due date of furnishing of annual return FOR the year pertaining to SUCH accounts and
records”.

However, a REGISTERED person, who is a “party to an appeal OR revision OR any other proceedings
before any Appellate Authority or Revisional Authority or Appellate Tribunal or Court, whether filed by
him or by the Commissioner, OR is under investigation for an offence under Chapter XIX(to be discussed in CA
Final)
”, shall RETAIN the “books of account and other records pertaining to the SUBJECT MATTER of
SUCH appeal or revision or proceedings or investigation” for:-

CA SAHIL JAIN | PAGE 12.5 47

 A) a period of one year AFTER FINAL DISPOSAL of SUCH appeal or revision or proceedings or
investigation; OR
B) the period specified ABOVE u/s 36(i.e. 72 months FROM the “due date of furnishing of annual return FOR the year pertaining to
SUCH accounts and records”)

whichever is LATER.

ACCOUNTS & RECORDS | PAGE 12.6 48

² Ch 13:- Payment of Tax
1) What is the entire PRECEDURE for DEPOSITING money in Electronic Cash Ledger? (Newly inserted part is
highlighted in Red)

A) The “taxpayer OR any person on his behalf” GENERATES a Challan online ON the GST Portal after
entering the amount that COMBINATION of “MAJOR Heads(IGST/CGST/SGST/UTGST/Cess)” & “MINOR
Heads(Tax, Interest, Penalty, Fee, Others)” that he intends to DEPOSIT the money for. Eg:- Taxpayer can
generate a Challan to deposit Rs. 20,000 towards “CGST-Tax” and 5,000 towards “IGST-Interest”.
B) As soon as a Challan is Successfully GENERATED, a Common portal Identification Number (CPIN) is
issued to the taxpayer. CPIN is a 14-digit UNIQUE number to identify the challan.

CPIN remains VALID FOR a period of 15 days, i.e. the Challan stays valid for 15 days during which
the amount mentioned in the Challan can be deposited. AFTER the expiry of this 15 day period, a
NEW Challan will have to be generated.
C) “Challan Identification Number (CIN)” is GENERATED BY the collecting banks, once “PAYMENT in
lieu of a generated Challan” is SUCCESSFUL. It is a 17-digit number that is “14-digit CPIN plus 3-
digit Bank Code”.

CIN is generated by the “authorized banks OR Reserve Bank of India (RBI)” when payment is
actually “RECEIVED by SUCH authorized banks or RBI” AND “CREDITED in the relevant Government
account held with them”. It is an indication that the payment has been REALIZED and “credited to
the appropriate Government account”. CIN is communicated BY the authorized bank TO “taxpayer
as well as to GSTN”.
D) After the successful payment & generation of CIN, the amount so paid should AUTOMATICALLY get
CREDITED in the Electronic Cash Ledger of the taxpayer in the respective “Major Head – Minor
Head” combination that was mentioned in the Challan.
Note:-
i) Bank Reference Number (BRN) is the TRANSACTION NUMBER given by the bank FOR a
payment against a Challan.
ii) “E-FPB” stands for “Electronic Focal Point BRANCH”. These are BRANCHES of “AUTHORIZED
banks” which are AUTHORIZED to collect payment of GST. EACH “authorized bank” will
nominate ONLY ONE branch as its E-FPB for PAN India transaction.

The E-FPB will have to open accounts under EACH “MAJOR head” for ALL governments. Any
amount received by such E-FPB towards GST will be CREDITED TO the “appropriate account
held by such E-FPB”.

For NEFT/RTGS Transactions, RBI will act as E-FPB.

iii) The “MANDATE FORM” obtained AFTER making NEFT/RTGS/IMPS payment has to be
SUBMITTED IN the Bank. The VALIDITY of the “mandate form” is 15 days.
iv) The “person making the deposit OR the person on whose behalf the deposit has been made”,
can make a REPRESENTATION in prescribed form i.e. FORM GST PMT- 07 THROUGH “the
common portal OR e-gateway through which the payment has been made” in the FOLLOWING
cases:-
a) If CIN is NOT generated even AFTER “making payment AND submission of mandate form”;
OR

GST Amendments by CA Sahil Jain 49

 b) when AFTER generation, it has NOT been reflected IN the common portal.
v) Where the bank FAILS to communicate details of CIN TO the common portal, the Electronic
Cash Ledger may be updated on the basis of “e-Scroll of the RBI” in cases where the “details of
the said e-Scroll” are in CONFORMITY WITH the “details in CHALLAN generated in Form GST
PMT-06 on the common portal”.
vi) “Date of CREDIT into the treasury OF the State Government/Central Government” is DEEMED
to be the “date of DEBIT in the electronic cash ledger” and NOT the “ACTUAL date of
DEPOSIT(i.e. Credit) of amount IN the electronic cash ledger OF the taxable person”.
vii) Any amount “deducted under section 51 [TDS]” OR “collected under section 52 [TCS]” and
claimed by the registered taxable person FROM WHOM the said amount was deducted or
collected shall be credited to HIS “electronic CASH ledger”.
viii) “Manual or Physical” Challans are NOT allowed under the GST regime. It is MANDATORY to
generate Challans ONLINE on the GST Portal.
ix) An “UNREGISTERED person(like Casual Taxable Person)” has to make PAYMENT through electronic cash
ledger on the basis of “Temporary Identification Number” generated through common portal.
2) Common Points for Electronic Cash & Credit Ledger:- (Both points written below are newly introduced in syllabus)
A) A “unique identification number” shall be generated AT the common portal for EACH debit or
credit TO the electronic cash or credit ledger.
B) Similarly, the “unique identification number” RELATING TO “DISCHARGE of any liability” shall be
indicated in the corresponding entry in the “electronic LIABILITY register”.
3) Electronic Liability Register:- [Section 49(7), (8) & (9) read with Rule 85 of CGST Rules] (Amendment is
highlighted in Red)

A) What does this Ledger contain?

Section 49(7) enumerates about the third kind of ledger [AUTO updated on common portal] viz.
Electronic Liability Register. The Section lays down that ALL “liabilities of a taxable person” will be
recorded & maintained in a SEPARATE register, i.e. Electronic Liability Register. In other words,
“Electronic Liability Register” will reflect the “total liability” of a taxpayer FOR a particular tax
period.
B) How does the Electronic Liability Register get DEBITED?
ALL of the following amounts get DEBITED to this ledger:-
i) all amounts payable towards tax, interest, late fee and any other amount AS PER Return filed;
ii) all amounts payable towards tax, interest, penalty and any other amount “DETERMINED IN a
proceeding by an Assessing Authority a Proper Officer” OR “as ASCERTAINED BY the taxable
said person”;
iii) Interest payable u/s 50;
iv) any INTEREST amount that may accrue from time to time.
C) How does the Electronic Liability Register get CREDITED?
When ANY amount payable under GST Acts is paid, the following happens:-
i) The “Electronic Credit Ledger & Electronic Cash Ledger” gets DEBITED by the amount so paid,
hence, reducing the Credit Balance of SUCH Ledgers; AND
ii) The “Electronic Liability Register” gets CREDITED by the amount so paid, hence, reducing the
DEBIT Balance of SUCH Ledger.
GST Amendments by CA Sahil Jain 50
 D) ORDER of discharge of “Tax” & “OTHER Dues”:- [Section 49(8)]
The CHRONOLOGICAL Order in which the “liability of a taxable person” HAS TO be discharged is as
follows:-
i) “Self -assessed tax and other dues” FOR the “PREVIOUS Tax Periods” have to be discharged
first.
ii) “Self -assessed tax and other dues” FOR the “CURRENT period” have to be discharged next.
iii) Once the above two steps are exhausted, thereafter “any OTHER amount payable INCLUDING
demand determined under section 73 or section 74 to be discharged”

In other words, the “liability if any, arising OUT OF demand notice and adjudication
proceedings comes last”
Note:-
a) The sequence mentioned above has to be MANDATORILY followed.
b) The expression “other dues” referred above MEANS “interest, penalty, fee or any other
amount payable under the Act or the rules made there under”.
4) Presumption that incidence of tax is passed on:- [Section 49(9)] (Deleted part is highlighted in Red)
When a taxable person has PAID(to Govt.) the GST under the corresponding Act, the taxable person is
DEEMED to have PASSED ON the Incidence of SUCH payment of tax TO the “RECIPIENT of such goods
and /or services”.

Thus, IF tax has been paid under the CGST Act, 2017, THEN, the taxable person is DEEMED to have
passed on the incidence of such payment of CGST to the RECIPIENT. This is SUBJECT TO the “contrary
being PROVED”. ONUS to establish that incidence of tax has NOT been passed on to the recipient,
becomes relevant in case of Section 54 dealing with “REFUND of Tax”.
5) Transfer of Input Tax Credit:- [Section 53 of CGST Act & Section 18 of IGST Act] (Newly added part is highlighted in
Red)

A) If the “amount of CGST” is UTILISED TOWARDS “dues of IGST”, THEN, in terms of section 53 of the
CGST Act, the following SHALL happen:-
i) there shall be “REDUCTION in the amount of CGST”, EQUAL TO the “credit so utilized”; AND
ii) the Central Government SHALL TRANSFER SUCH amount EQUIVALENT TO the “amount so
reduced in CGST account” TO the IGST account.
B) Similarly, IF the “amount of IGST” is UTILISED TOWARDS “dues of CGST/UTGST”, THEN, in terms of
section 18 of the IGST Act, the following SHALL happen:-
i) there shall be “REDUCTION in the amount of IGST”, EQUAL TO the “credit so utilized”; AND
ii) the Central Government SHALL TRANSFER SUCH amount EQUIVALENT TO the “amount so
reduced in IGST account” TO “the CGST/UTGST account”.
C) However, IF the “amount of IGST” is UTILISED TOWARDS “dues of SGST”, THEN, in terms of section
18 of the IGST Act, the following shall happen:-
i) there shall be “REDUCTION in the amount of IGST”, EQUAL TO the “credit so utilized” AND will
be APPORTIONED TO the “appropriate State(defined below)” Government; AND
ii) the Central Government SHALL Transfer the “Amount SO APPORTIONED” TO the “account of
the RESPECTIVE State Government”.

GST Amendments by CA Sahil Jain 51

 Note:- Here, "appropriate State" IN RELATION TO a taxable person, MEANS the State or Union
territory where taxable person “is registered OR is liable to be registered” under the provisions of
the CGST Act.

² Ch 14:- TDS & TCS(Entire chapter is new)

Do from notes starting on next page

GST Amendments by CA Sahil Jain 52

 Ch-14 : TDS & TCS
Tax Deduction at Source (TDS) is a system, INITIALLY introduced by the Income Tax Department. It is one of
the modes/methods to collect tax, under which, certain PERCENTAGE of amount is DEDUCTED by a
recipient AT the time of making payment TO the supplier. It facilitates SHARING of “responsibility of tax
collection” BETWEEN the deductor and the tax administrator. This concept of TDS ensures REGULAR inflow
of tax collection to the Government. This mechanism acts as a powerful instrument to prevent tax evasion
and expands the tax net, as it provides for the creation of an audit trail.

Also, with the integration of data furnished by the Supplier and Buyer on the GST common portal, there
exists an audit trail to ensure for harmony of taxes paid by the supplier.

Section 51 of CGST Act, 2017 provides for deduction of tax at source in certain circumstances. This Section
specifically lists out the deductors who are MANDATED by CG to deduct tax at source, the rate of tax
deduction and the procedure for remittance of the tax deducted.
On the other hand, Tax Collection at Source (TCS) has similarities with TDS, as well as a few distinctive
features. TDS refers to the tax which is DEDUCTED when the recipient of goods or services make payment
to or credits a supplier’s account under a contract etc., while TCS refers to the tax which is COLLECTED by
the electronic commerce operator, when a supplier supplies some goods or services through its portal and
the payment for that supply is collected by the electronic commerce operator.
Section 52 of CGST Act, 2017 provides for collection of tax at source in certain circumstances. The Section
specifically lists out the tax collecting persons who are MANDATED by CG to collect tax at source, the rate
of tax collection and the procedure for remittance of the tax collected.
The amount of tax deducted/collected is reflected in the “Electronic Cash Ledger(not credit ledger)” of the
deductee/supplier respectively.

“Provisions of TDS and TCS under CGST Act” have ALSO been made applicable to IGST Act vide section 20
of the IGST Act.

² Tax Deducted at Source (TDS) under Section 51 of CGST Act, 2017

1) Who is required to deduct TDS:-
The TDS provisions EMPOWER the Central Government(not SG) to make it MANDATORY for the following
persons (the deductor) to deduct tax at source FROM payments made TO the suppliers of taxable
goods and/or services:-
A) Central/State Government department or establishment [Section 51(1)(a)]
B) Local Authority [Section 51(1)(b)]
C) Governmental Agencies [Section 51(1)(c)]
D) NOTIFIED Persons/category of persons [Section 51(1)(d)]
Note:-
i) With respect to deductors under section 51(1)(a), provisions of TDS are applicable to certain
PRESCRIBED authorities of Ministry of Defence, REMAINING authorities under the Ministry of
Defence are EXEMPT. Detailed list has been specified under Notification 57/2018 CT.
ii) The following persons have been NOTIFIED u/s 51(1)(d) of the CGST Act by CG:-
a) an authority OR a board OR any other body, -

CA SAHIL JAIN | PAGE 14.1 53

 > SET UP BY an Act of Parliament or a State Legislature; OR
> ESTABLISHED BY any Government,
with 51% or more participation BY WAY OF equity or control, to carry out any function;

It has been clarified vide Circular No. 76/50/2018 GST that the rider of 51% or more
participation BY WAY OF equity or control is applicable to BOTH the items. Thus, the
provisions of section 51 of the CGST Act are applicable only to SUCH authority or a board or
any other body “set up by an Act of parliament or a State legislature OR established by any
Government” in which 51% or more participation by way of equity or control is with the
Government.
b) society ESTABLISHED BY the “CG/ SG/ LA” under the Societies Registration Act, 1860;
c) Public Sector Undertakings
2) Categories of persons not liable to deduct TDS:-
Tax is NOT liable to be deducted at source in the FOLLOWING cases:-
A) When goods and/or services are supplied FROM a public sector undertaking (PSU) TO another PSU,
whether or not a distinct person [Notification No. 61/2018 CT]
B) When supply of goods and/or services takes place BETWEEN one person TO another person
SPECIFIED IN clauses (a), (b), (c) and (d) of section 51(1) of the CGST Act. [Notification No. 73/2018
CT]
3) Deductees:-
The deductees are the SUPPLIERS whose TOTAL “value of supply of TAXABLE goods and/or services”
under A contract EXCEEDS Rs. 2,50,000 EXCLUSIVE of tax & cess AS PER the invoice.
4) Standard Rate of deduction:-
The tax would be deducted @ 1% under CGST Act, 2017 OF the “payment made to the supplier (the
deductee) of TAXABLE goods and/or services”, where the TOTAL value of such supply, under a
contract, exceeds Rs. 2,50,000 (EXCLUDING the amount of GST & Cess indicated IN the invoice). Thus,
INDIVIDUAL supplies may be less than Rs. 2,50,000/-, but if TOTAL value of supplies under a
CONTRACT is MORE THAN Rs. 2,50,000/-, TDS has to be deducted.

The deductors have to deduct tax at the rate of 1% FROM the “payment made OR credited” TO the
supplier of TAXABLE goods and/or services under CGST Act, 2017.

Note:-
A) This 1% TDS rate is just under CGST Act. Equal rate of TDS is imposed under SGST/UTGST Act as
well bringing the TOTAL TDS Rate to 2%.
B) Section 20 of IGST Act provides that in the case of tax deducted at source, the deductor shall
deduct tax @ 2% from the “payment made OR credited” TO the supplier.
5) No TDS in certain cases:-
The PROVISO to Section 51(1) lays down that when the “location of the supplier” AND the “place of
supply” is in a State/ Union territory which is DIFFERENT FROM the “State/ Union territory of
registration of the RECIPIENT”, there will be NO TDS.

The above statement can be explained in the following situations:-

TDS & TCS | PAGE 14.2 54

 A) “Supplier”, “place of supply” and “recipient” are in the SAME state:-
It would be INTRA-State supply and TDS (Central plus State tax) shall be DEDUCTED. It would be
possible for the supplier (i.e. the deductee) to take credit of TDS in his “electronic cash ledger”.
B) “Supplier” as well as the “place of supply” are in DIFFERENT states:-
In such cases, Integrated tax would be levied. TDS to be DEDUCTED would be TDS (Integrated tax)
and it would be possible for the supplier (i.e. the deductee) to take credit of TDS in his electronic
cash ledger.
C) “Supplier” as well as the “place of supply” are in State A and the “recipient” is located in State B:-
The supply would be intra-State supply and Central tax and State tax would be levied. In such case,
TRANSFER of “TDS (Central tax + State tax of State B)” TO the “cash ledger of the supplier (Central
tax + State tax of State A)” would be difficult. So, in such cases, TDS would NOT BE DEDUCTED.
Thus, when BOTH the “supplier” AS WELL AS the “place of supply” are DIFFERENT from that of the
recipient, no tax deduction at source would be made.
6) Value of Supply:-
The “amount indicated IN the invoice EXCLUDING the GST and cess element”, is the value of supply
FOR the purpose of TDS under Section 51 of CGST Act, 2017.
7) Deposit of TDS with the Government:-
The “amount of tax DEDUCTED at source” should be deposited TO the Government account by
deductor BY 10th of the SUCCEEDING month.
8) TDS Certificate:-
A TDS Certificate is required to be issued BY “deductor (the person who is deducting tax)” IN
prescribed form TO the “deductee (the supplier from whose payment TDS is deducted)”.

The CONTENT of Form GSTR 7A (TDS Certificate) are given below:-

A) TDS Certificate No.
B) GSTIN of deductor
C) Name of deductor
D) GSTIN of deductee
E) i) Legal name of the deductee
ii) Trade name, if any
F) Tax period in which tax deducted and accounted for in GSTR-7
G) Details of supplies
H) Amount of tax deducted
9) Non-remittance by the deductor:-
If the deductor has NOT REMITTED the amount deducted as TDS TO the Government WITHIN the
prescribed time limit, he is liable to pay “PENAL INTEREST u/s 50” in ADDITION TO the “amount of tax
deducted”.
10) Reflection of amount of TDS:-
The amount of tax deducted is REFLECTED in:-
A) “Electronic Cash Ledger(not credit ledger)” of deductee.
B) Return filed by deductor u/s 39(3), i.e. GSTR-7 [Refer Chapter:15 Returns for detailed discussion on GSTR-7]

CA SAHIL JAIN | PAGE 14.3 55

 The deductee can claim CREDIT of the tax deducted, in his “electronic cash ledger”. This provision
enables the Government to cross check whether the amount deducted by the deductor is CORRECT
and that there is no mis-match between the “amount reflected in the electronic cash ledger” AND the
“amount shown in the return filed by deductor”.

This is similar to existing practice in INCOME TAX relating to E-TDS returns filed by deductor and 26AS
statement available for viewing the TDS remitted in respect of transactions by deductee.
11) Determination of amount in Default:-
Any DEFAULT in “determination of the amount u/s 51” shall be made in the MANNER specified in
Section 73 or section 74(discussed in CA Final), as the case may be.
12) Refund on excess/erroneous deduction:-
The deductor OR the deductee can claim REFUND of “excess deduction OR erroneous deduction”. The
provisions of section 54(discussed in CA Final) relating to refunds would apply in such cases.
13) Registration(discussed in Ch-9):- [Rule 12 of CGST Rules, 2017]
Any person required to DEDUCT tax in accordance with the provisions of section 51 shall
ELECTRONICALLY submit a “registration APPLICATION in PRESCRIBED FORM(i.e. Apply for GSTIN to be able to
deduct tax and file return even if you were not required to pay GST on own supplies)
” through the common portal. The proper
officer shall, AFTER due verification, grant registration WITHIN 3 working days FROM the “date of the
application”. Also, “on a request OR upon an enquiry OR pursuant to any other proceeding under the
Act”, IF the proper officer is satisfied that a person is NO LONGER LIABLE to deduct tax at source u/s
51, then the said officer may CANCEL the said registration, following procedures as provided in Rule 22
of the CGST Rules for the cancellation of registration.

² Tax Collected at Source (TCS) under Section 52 of CGST Act, 2017

1) Overview of TCS:-
TCS refers to the tax which is COLLECTED BY the electronic commerce operator when a supplier
supplies taxable goods or services THROUGH portal of e-commerce operator AND the payment for
that supply is collected by said electronic commerce operator.
2) Who is liable to collect TCS?
Every “Electronic Commerce Operator (ECO), NOT being an agent”, has been MANDATED to collect tax
at source (TCS) on the “NET VALUE of taxable supplies, i.e. supplies net of returns (if any), made
THROUGH IT by suppliers, where the ECO collects the consideration ON BEHALF OF the supplier for
such supplies.
Note:- “Net value of taxable supplies” shall MEAN the AGGREGATE value of TAXABLE supplies of
goods or services or both, OTHER THAN “services NOTIFIED u/s 9(5)(discussed in Ch-3)”, made during ANY
month by all REGISTERED persons THROUGH the operator REDUCED BY the “AGGREGATE value of
taxable supplies RETURNED to the suppliers during the SAID month”.
3) Rate of TCS:-
0.5% of the “net value of INTRA-State taxable supplies” under CGST and 0.5% of the “net value of
INTRA-State taxable supplies” under SGST/UTGST, i.e. Total 1%

1% of the “net value of INTER-State taxable supplies” under IGST.

Note:- The power conferred ON the e-commerce operator to collect tax at source, is without prejudice
to OTHER modes of recovery FROM operator. The powers of e-commerce operator are restricted only
to the extent of tax collection at source under circumstances specified therein and nothing more.

TDS & TCS | PAGE 14.4 56

 4) Deposit of TCS by ECO to Government:-
The TCS amount collected by the ECO has to be REMITTED TO the Government Treasury WITHIN 10
days AFTER the END of the “month in which the collection was made”.
5) Registration(discussed in Ch-9):- [Rule 12 of CGST Rules, 2017]
Any person required to COLLECT tax in accordance with the provisions of section 52 shall
ELECTRONICALLY submit a “registration APPLICATION in PRESCRIBED FORM(i.e. Apply for GSTIN to be able to collect
tax and file return even if you were not required to pay GST on own supplies)
” through the common portal. The proper officer
shall, AFTER due verification, grant registration WITHIN 3 working days FROM the “date of the
application”. Also, “on a request OR upon an enquiry OR pursuant to any other proceeding under the
Act”, IF the proper officer is satisfied that a person is NO LONGER LIABLE to collect tax at source u/s
52, then the said officer may CANCEL the said registration, following procedures as provided in Rule 22
of the CGST Rules for the cancellation of registration.
6) Filing of Monthly & Annual Statements by ECO:-(discussed in detail in Ch-15)
A) An electronic statement [Form GSTR 8] has to be filed by the ECO containing “details of the
OUTWARD supplies of goods and/ or services effected THROUGH IT, INCLUDING the supplies
RETURNED through it” AND the “amount collected by it as TCS DURING the month” WITHIN 10
days AFTER the END of the “EACH month in which supplies are made”.
B) Additionally, the ECO is ALSO mandated to file an “Annual Statement [Form GSTR 9B]” on or
before 31st day of December following the END of the Financial Year.
C) The Commissioner has been empowered to EXTEND the due date for furnishing of monthly and
annual statement BY the person collecting tax at source.
7) Notice to the Operator seeking details:-
A) An “officer NOT BELOW the rank of Deputy Commissioner” can issue NOTICE to an operator,
asking him to furnish “details RELATING TO volume of the goods/services supplied, stock of goods
lying in warehouses/godowns etc”.
B) The operator is REQUIRED to furnish such details WITHIN 15 working days.
C) In case an operator FAILS to furnish the information, besides being liable for PENAL ACTION under
section 122(discussed in CA Final), it shall ALSO be liable for penalty up to Rs. 25,000.

CA SAHIL JAIN | PAGE 14.5 57

² Ch 15:- Returns
1) What is the DUE DATE of submission of GSTR-5? (Amendment is highlighted in Red)
“GSTR-5 for a Month” should be furnished BY EARLIER of:-
A) within 20 13 days AFTER the END of such calendar month; OR
B) within 7 days AFTER the LAST day of “VALIDITY period of the registration”
Note:-
i) An NRTP should PAY the “tax, interest, penalty, fees or any other amount payable under the
CGST Act or the rules made thereunder”, TILL the last date of filing GSTR-5.
ii) An NRTP is NOT required to file an “Annual Return u/s 9 or 9A”.
2) GSTR-2A:- (Newly inserted part is highlighted in Red)
A) Form GSTR-2A is a system generated read only “Statement of INWARD supplies” FOR a recipient.

Interlinking:- In case of Composition Taxpayers, the same information is reflected in GSTR-4A.

B) This is a DYNAMIC statement and is UPDATED on a REAL TIME Basis.
C) The details become “AVAILABLE TO the recipient FOR view/download” AND “are updated
incrementally AS AND WHEN supplier(s) upload or change details in their RESPECTIVE form of
return/statement”, FOR the given tax period.
D) “Details of OUTWARD supplies furnished by the supplier in Form GSTR-1 or using the IFF” is made
available electronically TO the “concerned registered persons (recipients) in Form GSTR-2A”.
E) “Details of invoices furnished by a non-resident taxable person (NRTP) in Form GSTR-5”, “details of
TDS by deductor furnished in Form GSTR-7” and “details of TCS by an e-commerce operator
furnished in Form GSTR-8”, are made available TO the recipient, deductee or concerned person, in
Form GSTR-2A.
F) Further, details of the IGST paid on the “import of goods” OR “goods brought in DTA from SEZ
unit/developer” ON a bill of entry are ALSO made available in Form GSTR-2A.
3) GSTR-2B:- (Newly inserted part is highlighted in Red)
A) Form GSTR-2B is an auto-drafted auto-generated read only “Statement containing the details of
Eligible ITC” and this statement is made available TO the registered person (recipient) for EVERY
month.
B) It is a STATIC statement and is AVAILABLE only “ONCE in A month”.
C) It CONSISTS of ALL of the following:-
i) In respect of Purchases from “Suppliers OTHER THAN QRMP Suppliers”:-
The “details of OUTWARD supplies” furnished BY the suppliers IN Form GSTR- 1, BETWEEN the
“day immediately AFTER the due date of furnishing of Form GSTR-1 for the PREVIOUS month”
TO the “due date of furnishing of Form GSTR-1 for the month”.
ii) In respect of Purchases from “QRMP Suppliers”:-
The “details of invoices furnished by a non-resident taxable person in GSTR-5” and the “details
of OUTWARD supplies furnished BY his supplier who has OPTED for QRMP scheme, IN Form
GSTR-1 OR using the IFF, as the case may be”:-

GST Amendments by CA Sahil Jain 58

 a) For 1st Month of the “Quarter”:-
BETWEEN the “day immediately AFTER the due date of furnishing of Form GSTR-1 for the
PRECEDING quarter” TO the “due date of furnishing details using the IFF for the 1st month
of the quarter”;
b) For 2nd Month of the “Quarter”:-
BETWEEN the “day immediately AFTER the due date of furnishing details using the IFF for
the 1st month of the quarter” TO the “due date of furnishing details using the IFF for the 2nd
month of the quarter”;
c) For 3rd Month of the “Quarter”:-
BETWEEN the “day immediately AFTER the due date of furnishing of details using the IFF for
the 2nd month of the quarter” TO the “due date of furnishing of Form GSTR-1 for the
quarter”.
iii) the details of the IGST paid on the “import of goods” OR “goods brought in the DTA from SEZ
unit/developer” ON a bill of entry in THE month.
4) Statement for tax deducted at source [GSTR-7]:- [Section 39(3) read with rule 66] (Entire provision is newly
inserted)

Normally, whenever taxable goods or services or both are supplied TO a Central/ State Government’s
Department/ establishment or, local authority, or Governmental agencies, RECIPIENT is required to
deduct tax at source u/s 51 where the total value of such supply EXCEEDS Rs. 2,50,000.
A) Monthly return:-
Deductor shall furnish a MONTHLY return in Form GSTR-7.
B) Last date of filing return:-
The details in GSTR-7 should be furnished on/before 10th of the Month SUCCEEDING the “calendar
month in which tax has been deducted at source”.
C) TDS details available to deductee on common portal:-
The details of TDS furnished by the deductor in GSTR-7 shall be made available electronically TO
EACH of the deductees ON the common portal after filing of Form GSTR-7. The supplier can take
this amount as credit in his “electronic CASH ledger” after validation and use the same for payment
of “tax OR any other liability”.
D) Tax Deduction at Source (TDS) Certificate:-
A TDS Certificate is required to be issued BY deductor (the person who is deducting tax) in Form
GSTR-7A TO the deductee (the supplier from whose payment, TDS is deducted), WITHIN 5 days of
crediting the amount to the Government. It contains the details pertaining to value on which tax
has been deducted, rate of deduction, amount of tax deducted at source and amount paid to the
Government.
5) Statement for tax collection at source [GSTR-8]:-[Sub-sections (3), (4), (6) and (7) of section 52 read
with rule 67] (Entire provision is newly inserted)
A) Monthly statement:-
An “ECO liable to COLLECT tax at source” shall furnish a MONTHLY statement in Form GSTR-8
ELECTRONICALLY through the common portal. Form GSTR-8 contains the details of “supplies of
goods or services or both effected THROUGH ECO, including the supplies of goods or services or
both RETURNED through it” and the “amount of tax collected at source”.
B) Last date of filing statement and for deposit of tax collected at source:-
The details in GSTR-8 should be furnished on/before 10th of the month SUCCEEDING the “calendar
month in which tax has been collected at source”.

GST Amendments by CA Sahil Jain 59

 The due date of filing GSTR-8 may be EXTENDED by the Commissioner/Commissioner of State
GST/Commissioner of UTGST for a class of taxable persons by way of a notification.

Further, the amount of tax collected by ECO (TCS amount) is ALSO required to be DEPOSITED by
the 10th of the month SUCCEEDING the “calendar month in which tax has been collected at
source”.
C) TCS details available to suppliers on common portal and claiming of TCS by suppliers:-
The details of TCS furnished by the ECO in GSTR-8 shall be made available ELECTRONICALLY to
EACH of the “suppliers who supplied goods and/or services through ECO” ON the common portal
AFTER filing of GSTR- 8. The supplier can take this amount reflected in GSTR-8 as CREDIT in his
“electronic cash ledger” AFTER validation and USE the same for payment of “tax or any other
liability”.
D) Rectification of errors/omissions in GSTR-8:-
If AFTER submission of GSTR-8, the ECO discovers any DISCREPANCY therein on his own, NOT being
the result of any scrutiny, audit, inspection or enforcement proceedings, he should RECTIFY such
discrepancy IN “GSTR-8 to be filed for the month during which such discrepancy is NOTICED”,
SUBJECT TO payment of Interest u/s 50.

The rectification is NOT allowed after “30th November following the END of the financial year” OR
the “actual date of filing of the relevant annual statement [GSTR-9B]”, whichever is EARLIER.
6) Annual Return:- [Section 44 & 52(5) read with rule 80 of the CGST Rules] (Newly inserted part is highlighted in Red)
A) WHO is required to furnish an Annual Return?
ALL registered persons are required to file an “Annual Return” which may include a SELF-
CERTIFIED(not Audited) Reconciliation STATEMENT, reconciling the “value of supplies DECLARED in the
return furnished for the FY”, WITH the “AUDITED annual financial statement” for EVERY Financial
Year electronically, within such time and in such form and in such manner as may be PRESCRIBED.

However, FOLLOWING persons are NOT required to file the annual return:-
i) Casual taxable persons; (NOT Composition Taxpayer)
ii) Non- resident taxable person;
iii) Persons authorized to collect tax at source under section 52;
iv) Persons authorized to deduct tax at source under section 51; AND
v) Input service distributors; AND (not in syllabus)
The Commissioner may, on the recommendations of the Council, by notification, EXEMPT any class
of REGISTERED persons from filing “annual return” under THIS section.

Further, nothing contained section 44 shall apply TO ANY department of the Central Government
or a State Government or a local authority, whose Books Of Account are subject to AUDIT BY the
“Comptroller and Auditor- General of India (CAG), OR an auditor appointed FOR auditing the
accounts of local authorities under any law for the time being in force”.

B) What is the DUE Date for furnishing this Return?

The annual return for a financial year needs to be filed by 31st December of the next financial year.

GST Amendments by CA Sahil Jain 60

 The due date of filing annual return may be EXTENDED by the Commissioner/Commissioner of
State GST/Commissioner of UTGST for a class of taxable persons by way of a notification.
C) What is the FORM for submission of details of outward supplies?
i) For a Composition Taxpayer:-
Annual Return is filed using the Form GSTR-9A
ii) For OTHER Taxpayers:-
Annual Return is filed using the Form GSTR-9
Note:- It may be noted that an “ECO required to COLLECT tax at source” is required to file an
“annual statement referred to in section 52(5) in Form GSTR-9B”(yet to be notified). The statement for a
financial year needs to be filed BY 31st December of the NEXT Financial Year.
D) Who is required to furnish a self-certified reconciliation statement?
i) ALL registered persons are required to file furnish a “self- certified reconciliation statement”
along with “Annual Return” IF their “aggregate turnover” during a financial year EXCEEDS Rs. 5
crores.

However, following persons are NOT required to file self-certified reconciliation statement:
a) Casual taxable persons; (NOT Composition Taxpayer)
b) Non- resident taxable person;
c) Persons authorized to collect tax at source under section 52;
d) Persons authorized to deduct tax at source under section 51; AND
e) Input service distributors(not in syllabus); AND
ii) SUCH registered person should furnish, ELECTRONICALLY, the “annual return” ALONG WITH a
“copy of self-certified reconciliation statement, duly certified, in Form GSTR-9C”.
Note:- “Self-certified reconciliation statement” will RECONCILE the “value of supplies declared in
the RETURN furnished for THE Financial Year” WITH the “audited annual financial statement”.
7) Default/Delay in Furnishing Return:- [Sections 46 & 47]
A) Notice to return defaulters:- [Section 46 read with rule 68 of the CGST Rules] (Newly inserted part is
highlighted in Red)

A NOTICE in prescribed form is ISSUED, electronically, TO a “registered person who FAILS to furnish
“Return u/s 39 [Normal Return] OR section 44 [Annual Return] OR section 45 [Final Return] OR
section 52 [TCS Statement]”. The notice REQUIRES the registered person to furnish the return
WITHIN 15 days failing which the tax liability will be assessed under section 62, BASED ON the
relevant material available with the proper officer. In addition to tax so assessed, applicable
interest and penalty will ALSO be payable.
B) Late fees levied for delay in filing return:- [Section 47] (Learn revised fee from this amendment material)
Late Fee, after considering rationalisation, shall be levied u/s 47 as follows:-

GST Amendments by CA Sahil Jain 61

 DELAYED Filing of:-
Late Fee shall be LOWER of:-
1) Return u/s 39(GSTR-5)
1) Rs. 100 for every day during which such failure continues
2) Final Return u/s 45(i.e. GSTR-10)
2) Rs. 5,000
3) GSTR-8 by TCS Collectors
EITHER of the following is applicable:- Late Fee shall be LOWER of:-
1) Rs. 10 for every day during which
1) NIL Outward Supplies in Tax Period; OR such failure continues
2) Total TAX PAYABLE in GSTR-3B is NIL 2) Rs. 250
DELAYED Filing of:- Late Fee shall be LOWER of:-
1) GSTR-1 u/s 37 In PRECEDING FY, 1) Rs. 25 for every day during which
2) GSTR-3B u/s 39 Agg. Turnover < Rs. 1.5 Cr. such failure continues
2) Rs. 1,000
Late Fee shall be LOWER of:-
Any In PRECEDING FY, 1) Rs. 25 for every day during which
OTHER Rs. 1.5 Cr. < Agg. Turnover < Rs. 5 Cr. such failure continues
Case 2) Rs. 2,500
Late Fee shall be LOWER of:-
In PRECEDING FY, 1) Rs. 25 for every day during
Rs. 5 Cr. < Agg. Turnover which such failure continues
Late Fee u/s 47

2) Rs. 5,000
Late Fee shall be LOWER of:-
1) Rs. 10 for every day during which such failure
Total TAX PAYABLE is NIL
continues
DELAYED Filing of 2) Rs. 250
GSTR-4 u/s 39 Late Fee shall be LOWER of:-
1) Rs. 25 for every day during which such failure
Total TAX PAYABLE is NOT NIL
continues
2) Rs. 1,000
Late Fee shall be LOWER of:-
In RELEVANT FY, 1) Rs. 25 for every day during which such failure
Agg. Turnover < Rs. 5 Cr. continues
2) 0.02% of turnover in the state or union territory
DELAYED Filing
Late Fee shall be LOWER of:-
of Annual In RELEVANT FY, 1) Rs. 50 for every day during which such failure
Return u/s 44 Rs. 5 Cr. < Agg. Turnover < Rs. 20 Cr. continues
(i.e. GSTR-9/GSTR-9A)
2) 0.02% of turnover in the state or union territory
Late Fee shall be LOWER of:-
In RELEVANT FY,
1) Rs. 100 for every day during which such failure continues
Rs. 20 Cr. < Agg. Turnover
2) 0.25%(not 0.025%) of turnover in the state or union territory
DELAYED Filing of Late Fee shall be LOWER of:-
GSTR-7 by Tax 1) Rs. 25 for every day during which such failure continues
Deductors 2) Rs. 500

Note:- It may be noted that the “late fee” payable BY a registered person FOR delayed filing of a
return and/or annual return, as mentioned above, is with reference to ONLY the CGST Act. An
“EQUAL Amount of late fee” would be payable by such person under the RESPECTIVE
“SGST/UTGST Act” AS WELL.
8) What is the eligibility criteria for GSTP? (Newly inserted part is highlighted in Red)
A person has to satisfy ALL of the conditions mentioned below to be ELIGIBLE to get enrolled as GSTP:-
A) is a CITIZEN of India;
B) is a person of SOUND MIND;
C) is NOT adjudicated as INSOLVENT;
D) has NOT been CONVICTED by a competent court; AND

GST Amendments by CA Sahil Jain 62

 E) satisfies ANY of the following conditions, NAMELY:-
i) he is “RETIRED officer” of “Commercial Tax Department of any State Govt./CBIC” who, DURING
service under Government had worked in a “post NOT LOWER THAN the rank of a Group-B
gazetted officer” FOR a period ≥ 2 years;
ii) he has ENROLLED as a “sales tax practitioner OR tax return preparer” under the EXISTING law
FOR a period > 5 years;
iii) Has acquired any of the PRESCRIBED qualifications (mentioned below):-
a) Graduate or postgraduate degree or its equivalent examination having a degree in
Commerce, Law, Banking including Higher Auditing, or Business Administration or Business
Management FROM any INDIAN University established by any law for the time being in
force;
b) Degree examination of any FOREIGN University RECOGNISED BY any Indian University as
EQUIVALENT TO the “degree examination mentioned in above point”;
c) Any OTHER examination NOTIFIED by the Government, on the recommendation of the
Council, for THIS purpose;
d) Any DEGREE examination of an Indian University OR of any Foreign University recognized by
any Indian University as equivalent of the degree examination”; OR
e) Has passed FINAL examination of “ICAI/ ICSI/ Institute of Cost Accountants of India”.

GST Amendments by CA Sahil Jain 63