GST Summary (Module 1)

CH Section No. Sub Sec. Particulars Notes

 *Consideration -
2 Section Supply the fact that
(S some
7
U 7(1) It includes; consideration
P (a) ❖ made or agreed to be made will flow b/w
P ❖ For a consideration* parties should
L ❖ By a person exist at time of
Y) ❖ In course of business performance of
activity.

(aa) Service by person (other than

individual to its person)

(b) Import Of Service (not in course of

Business)
*Related Person
(c) Supply without Consideration – KMP, Partners,
[Schedule I] Holding and
❖ Permanent transfer of Subsidiary,
business asset + ITC claimed fellow
❖ Supply of goods b/w distinct subsidiary, joint
person or Related person* ventures, agent,
❖ Principal supply goods to principal,
agent and vice versa Employees (50k
❖ Import of service from (i) + transaction),
Related person or Branch Family (Spouse,
outside India + (ii) in course Children.
of business Parents,
Grandparents,
dependent
siblings,)

Whether supply is Goods or

7(1A) Services referred to Schedule II* *Schedule II –
• Transfer Referred to
• Land and Building notes for Detail
• Process to another person
Goods (E.g. Job works like Tailor)
• Transfer of Business Asset
• Supply of Services
• Composite Supply
 Following will not ≠ Supply
Activity or Transaction in
[SCHEDULE III]
7(2)
(a) • Service by Employer to
Employee in Relation of
Employment *Specified
• Service by Court or Tribunal Actionable
• a). Function of MP, MLAs, etc Claims:
b). Duties performed by a. Betting
C&AG, CJI, Election b. Casinos
commission, president and c. Gambling
Governor d. Horse racing
c). Duties performed by e. Lottery
Chairperson, or Member, or f. Online
Director of CG or SG money
establishment. gaming
• Funeral, Burial,
Crematorium, or Mortuary = 28% GST
Services including
Transportation of deceased
• Actionable claim other than
Specified Actionable
Claims*

Activity or Transaction notify by

Government on council’s
Recommendation

(b) • Granting of license for liquor

against license fee.
• Service by panchayat notify
under 243G or by
Municipality notify under
243W.
• Interstate movement of
goods, passenger or both by
various mode of conveyance,
for repair and maintenance
• Interstate movement of
Tools, Spares, Rigs, etc
 Composite Supply and Mixed
Supply
Section
8 1) Composite Supply:
• Two or more taxable supply
• Deemed to supply of
principal item E.g. Mobile,
• Principal supply = Charger, case
Predominant Element purchased, here
& other supply = Ancillary Principal item is
• It is Naturally Bundled mobile.

2) Mixed Supply:
• Two or more individual
supplies or any combination
• For a single price
• Deemed to supply of Highest E.g. Mr A
tax item. supplied Gift
bundle on
• Individual supplies are
occasion of
independent and artificially
Diwali consist,
bundled
Chocolates,
• Artificial bundled means not
snacks, and
in general practice of
drinks.
industry

Extent and commencement of GST

– CGST Act, 2017 extend to whole
India including J&K.
Section
1
3
(C PART
INDIA means -
H (I)
A • Territory of India referred in
R Article 1 of Constitution
G • Territorial water up to 12
E) Nautical miles.
• Air space above its territory
and territorial waters

Charging Section

Section
9 of
CGST
Act and
Section
5 of IGST
Act

• Subject to 9(2)
• Tax on all intra state supplies
• Of goods or service or both
• Except liquor for human
9(1) consumption
• On value determined by section
15
• On such rate (as may prescribed
by Council), not more than 20%

• Government on advice of
council
• Specify categories of goods or
service or both
9(3) • Tax on which paid on RCM basis
• By recipient (service receiver)
• Only S.R. liable to pay tax on
behalf of S.P.
• S.P. has legal Immunity
 • Central tax on supply of
• Petroleum crude (crude oil)
• High speed diesel
• Natual Gas
• Motor Spirit (petrol)
9(2) • Aviation Turbine Fuel (Aeroplane
Fuel)
• Government on Advice of
Council
• May specify category of service
*ECO if provide
• Tax on Intra state supplies.
service of its
• Shall paid by ECO (who provide
own not covered
service only)
9(5) here.
• If such supply through it
• And all provision applies only if *Only supply of
he is liable to pay tax in relation service covered
to supply of such service. here not supply
of goods
Specify category of
services: [ ECO ko RCM ke
under tax bharna padega]
1. Service of transportation of
passenger except by omnibus
(e.g. Uber, Rapido)
2. Service by way of Transportation
of passenger by omnibus except
where S.P. is Company
3. Service of Hotel
accommodation (e.g. OYO,
*E.g. Zomato an
Make my trip)
ECO provide
4. Housekeeping Services (e.g.
restaurant
UrbanClap)
services, where
5. Supply of Restaurant Services by
Taj Hotel is
ECO, (other than restaurant
supplying food,
where accommodation is above
here RCM NOT
7500 per day or equivalent) *
apply and taj
paid tax by itself
How ECO discharge tax liability?
 Notified Service for applicability of
RCM
*Organised
PART Sector =
Service Provider – GTA
(II) Factory, society,
Service Receiver – Person in
cooperative
organised sector* (person who
society,
liable to pay freight to GTA)
1. registered
person,
partnership
firm, Casual
taxable person,
Body Corporate

NOTES: -
1. However, nothing in this entry
applied to person registered to
deduct tax u/s 51
2. If GTA wants to pat tax under
forward charge Following to be
satisfied,
• Supplier must take
registration under CGST
Act,
• Supplier must issue tax
invoice to recipient +
prescribed declaration.

Legal Services
2.

Notes: -
1. Legal Services means service in
relation to Advice, Consultancy,
Assistance in relation to law,
includes representation before
court or tribunal.
2. One partner of firm is senior
Advocates = firm treated as
senior advocates firm.
3. If majority of partner is
Advocates = Firm is Treated as
firm of Advocates

Arbitral Tribunal (similar like Legal

Services)
 Sponsorship Services provided to
3. Body Corporate or Firm.

Example: BCCI
provide
4. Sponsorship
Services to
Reliance by
showing their
Ads in Stadium
S.P. = CG (except Indian Railways), and Charge 5
SG, UT, LA Crore Rupees.
S.R. = Business Entity Here,
Excluding; S.P. is BCCI and
1. Renting of Immovable Property S.R. is Reliance,
to unregistered person Hence RIL Shall
2. Service Specify below, pay Tax under
• Service by Dept. Of Post and RCM
Railway
• Service related to Aircraft
and vessels
• Transport of Goods/
Passenger E.g. A (a
registered
person) makes
contract with
Rajasthan Govt.
5. To extract soil
and for which A
paid 5% Royalty
to RJ Govt.,
here,
S.P. is Raj Govt.
 Services by way of renting of S.R. A, hence, A
residential dwelling to any shall pay under
registered person. RCM

Example:
Service by way of Renting of any Arihant provides
property other than Residential.
Residential
property to
RCM Applied only if
5AA. Sourabh (a
S.P. is Unregistered and registered
S.R. is Registered person) on Rent
Agreement.
In all other cases, Forward Charge Tax paid by
Shall Apply.
Sourabh under
RCM

Long Term Lease of Land by any

person where consideration is paid
in Upfront Amount (Advance)

5AB. S.P. - Any person other than state

Industrial Development
Corporation, or entity in which
Govt. Hold More than 20%.
 S.P. - Director
S.R. - Company or body Corporate
to whom services is provided.
(except when service provided in personal
capacity, like renting of his Immovable
Property).
Example:
Bansal and
Properties
5B. S.R. - Insurance Agent provide Land of
S.R. - Any person carrying 10 Crores to Mr
insurance Business. A on lease of 80
Lakhs p.a.
S.P. - Recovery Agent Here S.R. liable
S.R. - Banking Company or NBFC to pay Tax under
RCM.

S.P. - Music Composer,

Photographer, Artist and Other
Similar Person
S.R. - Music Company, Producer
and Other Similar Person
Example- Director
Service of – Enjoy Copyright and
of RIL provide
Permit use of Copyright related to Sitting Services to
Original Drama, Musical or Artistic Company,
Work. Here RIL is liacble
6. to pay tax under
RCM.

S.P. - Author
S.R. - Publisher
Service – Enjoy the Copyright
Permit use of Copyright

7.

8.
Example -
 An Author can choose to pay tax under a. Arijit Singh sold
copyright of His
Forward Charge, if; Sold his Music
• Author must take registration exclusively to T-
Series for use on
9. under CGST Act, their Channel.
• Author must issue tax invoice b. Panchayat (web
series) sold their
to Publisher + prescribed broadcasting right
declaration. exclusively to
prime video.

S.P. - Member of overseeing Example – James Clear

an Author permit
Committee. exclusive right of publish
S.R. - RBI his book called Atomic
Habit to Penguin
Publisher
9A.

S.P. - Direct Selling Agents (DSAs),

other than LLP, Partnership Firm,
Body Corporate.
S.R. - Banks or NBFCs

Service provided by Business

Facilitator to Banking Company.
(taxable in services provided in Urban Area)

S.P. - Agent
S.R. - Businesses

10.

Service – Supply of Security

Personnel
S.P. - Person other than Body
11. Corporate
S.R. - A Registered Person

*Nthing in this Entry Apply to -

 • Assessees Registered for TDS
• Registered person paying tax under
12. Composition.

Service of Renting of Motor

Vehicle to carry passenger where
cost of fuel included in
consideration to Body Corporate

13.

14.

Service of Lending of Security Under

Security Lending Scheme of SEBI

Composition Levy

Composition Scheme
15. • Notwithstanding anything to
Contrary in Act.
• But Subject to Section 9(3) &
9(4)
• A Registered Person
• Aggregate Turnover in PFY <= 75
Lakhs*
• May opts to pay tax under
prescribed Tax Rates
a. 0.5% of Total T/O
(Manufacturers)
b. 0.5% of Total T/O (Traders)
 c. 2.5% of Total T/O (If S.P. is
Restaurant)

Except Restaurant Person opts

clause a), b), or c), can’t supply
Services of Value 5 Lakhs or 10% of
16. Aggregate T/O (whichever is
Higher), in PFY.

Interest Income will be excluded

while calculating Aggregate
Turnover for Composition Purpose

Section PART Condition and Restriction for

10 (III) Composition: -

10(1) Registered Person eligible to opt

Under sub-section (1), if;
(a) Not Supply Service excess of
Prescribed Limit *As on date, limit
(b) Not engaged in Supply of non- of 75 Lakhs
taxable supplies Exceed to 1.5
(c) No supply through ECO. Crores, Except
(d) NO Inter State Supplies at
• Arunachal Pradesh
(e) Not engaged in Manufacturing of • Uttarakhand
notified Goods* • Manipur
• Meghalaya
(f) Neither CTP nor NRTP. • Mizoram
• Nagaland
• Sikkim
• Tripura

Validity of Composition,
❖ Composition levy remain valid Aggregate T/O
as along as all condition are includes: -
satisfied • Taxable
❖ Composition shall lapse w.e.f. • Exempt
• Non-Taxable
day on which Aggregate T/O • Export
exceed limit • Inter State Supplies
• T/O on which tax
❖ Consequence thereafter payable under RCM
• Pay GST under Regular But Excludes: -
Scheme • CGST and all other
types of GST and
• Issue Tax Invoice for every Cess
taxable Supply • Value of Inward
Supply on which
• File Intimation within 7 Days GST payable under
from occurrence of such RCM
event.
❖ ITC on Stock in Hand
10(2) • Allowed ITC from date of
Withdrawal *Notified
Goods: -
• Shall Furnish Statement, • Ice Cream and
within 30 Days of withdrawal other Edible ice
• Pan masala
of option on common portal.
• Aerated water
(soda)
• Fly ash bricks, fly
ash aggregate, fly
ash blocks
• Bricks of fossil
meals and similar
Composition Registered person siliceous earth
shall not collect any tax from • Building bricks
• Earthen or roofing
recipient nor shall entitled to tiles
claim any ITC. • Tabacco and
substitute

If proper officer has reason to

10(3) believe that person had paid tax
under composition despite of not
being eligible, such person liable to
pay tax at full rate + Interest +
Penalty.

PROCEDURE:
1. How to apply for composition?
• Intimation by person
applying for composition in
Part B of form GST-REG 01
• By registered Person – Filing
an application electronically
on portal before
commencement of Financial
Year.

2. Composition Reg. Person pay

tax under 9(3) and 9(4)
3. CTP or NRTP can’t take
registration under Composition
4. Composition registered person
10(4)
issue ;
✓ Bill of supply
 Tax Invoice
 5. Shall mention word
COMPOSITION TAXABLE
PERSON, NOT ELIGIBLE TO
COLLECT TAX ON SUPPLIES, on
10(5) top of bill
6. Shall mention word
COMPOSITION
TAXABLEPERSON on every
board.
7. Assesse not eligible (within 7
days) or intends to Withdrawal
can do so by Filing a
declaration*

OPTION TO PAY TAX AT

CONCESSIONAL RATE @6% (3%
EACH)

Notification no. 2/2019 CT, later

converted to Section 10(2A)

1. Eligible?
• Registered person whose
Aggregate T/O <= 50 Lakhs and *Entry to
• Who exclusively deals in composition:
services, or engaged in supply of
At
service exceeding 10% of T/O orcommencem
5 lakhs (whichever is Higher)
ent of FY or
at time of
2. Condition New
• Pay 6% tax on Turnover of 50 Registration
lakhs irrespective of
exemption except interest
income
Exit: At any
• Not engaged in Non-Taxable
Supply
Time
• Not engaged in interstate
supplies
• Assesse neither CTP nor
NRTP
 • Not engaged in supply of
notified goods
• Not making supply through
ECO

10(2A)

Inter State Supply

Subject to section 10, supply of
Goods where location of Supplier
and place of supply are in
• Different states
• Different UTs
• A state and a UT

Subject to section 10, supply of

Services where location of Supplier
and place of supply are in
• Different states
• Different UTs
• A state and a UT

Intra State Supply

Subject to section 10, supply of
Goods where location of Supplier
and place of supply are in Same
state or UT

Subject to section 10, supply of

Services where location of Supplier
and place of supply are in Same
state or UT
 All Sections
Supply in Territorial Waters,
are from
Notwithstanding anything in this act IGST Act
Section • Where location of supplier in
7 territorial water, or
(IGST Act) • Place of Supply is in territorial
water, then place of supply shall
be
Coastal State or UT where nearest
point of appropriate baseline
4 located.
(P
L
A
C
E) POS for Domestic Goods

1. Supply involves Movement of

Goods
POS – Location of Goods at time of
Delivery.

Section 2. Goods delivered to a person on

instruction of 3rd person (Bill to
8 Ship model)
(IGST Act)
POS – Place of Business of 3rd
Person (jisko billing ki Hai)

3. Supply doesn’t involve

movement of Goods
POS – Place of Delivery

4. Supply to unregistered person

and address is not on record
POS – Location of Buyer

5. Supply to unregistered person

and address is not on record
POS – Location of Seller
Section
9 6. Goods are Assembled at site
(IGST Act) POS – Place of Such Assembly
 6. Goods Supplied on board a
Conveyance
POS – Location at which goods
taken on Board

 Location of recipient of Services

a) if supply received at PoB then
Such PoB.
b) Supply received from any fixed
Section establishment (other than PoB),
10 then location of such fixed
(IGST Act) establishment.
c) Supply received at more than one
establishment, the location of
establishment most directly
concerned with supply
d) in absence of such places, usual
place of residence of recipient

 Location of Supplier of Services

a) Supply made from PoB then
such location of such PoB
b) Supply made from any fixed
establishment (other than PoB),
then location of such fixed
establishment
c) Supply made from more than
one establishment, the location of
establishment most directly
concerned with supply

POS where Location of SP and SR in

India
It makes a difference if the S.R. is
registered

General Clause
 Training and Performance Appraisal
Services

Organisation of event or
Sponsorship of event

Transportation of goods including

mail and courier

Passenger Transportaion Service

P A R T- I
Section
12
Return journey treated as separate
1. as Separate Journey, (even if ticket
for onward and return issued at
same time)

Issue of Right to Passage (Eg. MST in

Indian Train)

2.
3.

Insurance Services

Same as Case 1: General Clause.

4.
Example – Mr A (an
It Does NOT makes a difference if unregistered person), of
New Delhi travels from
the S.R. is registered Bhopal to Rajasthan via
SpiceJet flight and return
ticket from Rajasthan to
Property Related services Bhopal also included in
(property ka hona jaroori hai) same ticket
POS – From Bhopal to
5. Rajasthan: Bhopal
a). Services in relation to immovable From Rajasthan to
property by; (architects, surveyor, Bhopal: Rajasthan
designer, engineer, agents)

b). Service provided by way of Grant

of Right to use Immovable Property
or for carrying out construction
work.

c). Service by way of

accommodation by: (Hotel, Guest
6. House, Home Stay, etc)

d). Service by way of

Accommodation in Immovable
Property for: (marriage and
reception, any function etc)

e). Service ancillary (related ) to

above service.
 In all above cases, place where
such property is located (or
intended to be located) shall be
POS

7. If place of such property is at

outside India (or intended to be),
then POS shall be Location Of
recipient

P A R T- Location related services.

II
In following cases POS shall be
8. Actual place of Service.

• Restaurant and catering

• Personal Grooming
• Finess
• Beauty Tratment
• Health Services

Service by way of Admission to

event or other places (Entry Ticket)

 Service by way of admission in

(cultural, sport, educational,
scientific etc event)
 Service by way of Admission in
amusement park or any other
place

POS shall be place where Such

event held or Place located.

Service Supplied on Board a

Conveyance.
 POS shall be Location of First
Scheduled point of Departure of
that conveyance

Telecom Services:
1. Fixed Communication Line, like
9. leased circuit*, cable or dish
antenna (E.g. TATA Sky Dish for
TV broadcasting)

2. Post paid Mobile Connection

and Internet Connection

3. Prepaid Mobile connection,

internet services, and DTH Example; Rajdhani Express runs
from Delhi to Mumbai. Due to
services some track maintenance activity,
the train is cancelled between
10. a) Service provided through: Delhi to Agra and will now run
from Agra to Mumbai. Mr. A
(voucher card khareedana) board the train at Bhopal to
travel to Mumbai. During his
• Selling Agent journey, he avails catering
services
• Reseller POS: Delhi

• Distributor of Voucher
Card

b) Service provided by any POS shall be Location

where such
person to Final subscriber communication line
(Dukan se recharge karvana) or dish has Installed.

c) Prepaid service for which

payment made through net
banking / other banking POS shall be location
mode of Recipient of service
in books of Supplier,
(online recharge Karna) otherwise Location of
11. supplier
4. Other Cases
  *Leased Circuit installed in POS shall
one or more States
Adress of
• POS determine as proportion
12.
such person
basis
at time of
• In absence of contract, on
basis of service supplied in Supply.
different states or UTs
POS shall be place
where such
prepayment is
received

Financial, Banking, and Stock

POS shall Location
Broking Services of Recipient of
Service in records
of Supplier

POS shall be location

of Recipient of
service in books of
Government Advertisement Supplier, otherwise
Location of supplier
Services

Any advertisement service to CG,

SG, UT, LA, Statutory body under a
contract
POS – Each state where such Ads
are Broadcasted, Runs or Played
(in proportion)

Absence of Contract: -

Services are as under

 POS shall be

13.

14.

5
(E
X
E
M
P
T
I
O
N)