GST in India – An Introduction 📚

Key Terms and Concepts

Overview of Taxation System in India 🇮🇳2

• Tax: A compulsory financial charge imposed by the government to fund public

services.
• Direct Tax: Imposed directly on the taxpayer (e.g., income tax)5.
• Indirect Tax: Passed on to the consumer (e.g., GST).

Genesis of GST in India 🌱61

• 2000: Concept of GST introduced7.

• 2016: Constitution (101st Amendment) Act enacted8.
• 2017: GST launched on July 1st.

Concept of GST 💡

• Value Added Tax: Levied on the supply of goods and services9.

• Input Tax Credit: Credit of GST paid on purchases can be set off against GST
payable on sales.

Framework of GST 🏛️

Dual GST Model

• CGST: Central Goods and Services Tax10.

• SGST: State Goods and Services Tax.
• IGST: Integrated Goods and Services Tax for inter-state transactions11.

Legislative Framework 📜4

• CGST Act, 2017: Governs CGST12.

• SGST Acts: State-specific GST laws13.
• UTGST Act, 2017: Governs Union Territories without legislatures.

Benefits of GST 🌟3

Economic Benefits
 • Unified National Market: Simplifies tax structure across India.
• Boost to ‘Make in India’: Enhances competitiveness of Indian goods.

Simplified Tax Structure14

• Ease of Doing Business: Uniform tax rates and procedures.

• Certainty in Tax Administration: Common procedures and timelines.

Questions and Answers ❓

Q1: What is GST and why was it introduced in India?

A1: GST is a value-added tax levied on the supply of goods and services15. It was
introduced to create a unified national market and simplify the tax structure.

Q2: What are the main components of the GST framework in India?

A2: The main components are CGST, SGST, and IGST. CGST is levied by the central
government, SGST by state governments, and IGST on inter-state transactions16.

Q3: How does the Input Tax Credit mechanism work under GST?

A3: The Input Tax Credit allows businesses to claim credit for the GST paid on purchases,
which can be set off against the GST payable on sales, ensuring no tax on tax.

Summary Points 📌

• GST: A comprehensive tax reform aimed at creating a unified market17.

• Dual GST Model: Involves both central and state governments18.
• Economic Benefits: Boosts competitiveness and simplifies tax compliance.
📚 Chapter 2: Supply Under GST
Key Terms and Concepts

1. Taxable Event

• Definition: Any transaction or occurrence that results in a tax consequence12.

• Importance: Determines the point at which tax is levied3.
• Example: Sale of goods, provision of services4.

2. Supply

• Definition: Supply of goods or services or both for consideration in the course or

furtherance of business67.
• Types:
o Supply for Consideration: In the course or furtherance of business78.
o Supply Without Consideration: Specified in Schedule I.
• Example: Sale, transfer, barter, exchange, license, rental, lease, disposal910.

3. Composite and Mixed Supplies11

• Composite Supply: Two or more supplies naturally bundled and supplied

together.
• Mixed Supply: Two or more individual supplies made together for a single price.

Relevant Definitions12

Goods

• Definition: Movable property other than money and securities13.

• Example: Actionable claims, growing crops.

Services

• Definition: Anything other than goods, money, and securities14.

• Example: Activities related to the use of money.

Questions and Answers

Q1: What is the significance of the taxable event under GST?15

 • A1: The taxable event is crucial as it determines the point at which tax is levied,
ensuring clarity and reducing litigation.

Q2: What are the different types of supplies under GST?

• A2: Supplies can be for consideration in the course or furtherance of business, or

without consideration as specified in Schedule I58.

Q3: How are composite and mixed supplies treated under GST?16

• A3: Composite supplies are naturally bundled and taxed as a single supply, while
mixed supplies are taxed individually.

Summary

• Taxable Event: Foundation of taxation, determining when tax is levied.

• Supply: Central concept under GST, including various forms and conditions.
• Composite and Mixed Supplies: Different tax treatments based on the nature of
the supply.
📚 Charge of GST
🔍 Introduction

Power to Levy Tax: Drawn from the Constitution of India, the 101st Constitutional
Amendment Act, 2016 enabled the introduction of GST on the supply of goods or
services in India24.

Taxable Event: The occurrence of the event which triggers the levy of tax5. Under GST,
the taxable event is SUPPLY6.

Types of GST:

• CGST: Central Goods and Services Tax7

• SGST/UTGST: State/Union Territory Goods and Services Tax
• IGST: Integrated Goods and Services Tax

📜 Extent and Commencement of GST Law1

• CGST Act, 2017: Extends to the whole of India8.

• State GST Law: Extends to the respective State/Union Territory9.
• IGST Act, 2017: Extends to the whole of India10.
• UTGST Act, 2017: Extends to Union Territories without Legislature3.

📊 Levy and Collection of GST11

CGST and IGST:

• Section 9 of CGST Act, 2017: Levy on all intra-State supplies except alcoholic
liquor for human consumption12.
• Section 5 of IGST Act, 2017: Levy on all inter-State supplies except alcoholic
liquor for human consumption.

Reverse Charge Mechanism:

• Definition: Liability to pay tax is on the recipient instead of the supplier.

• Categories: Specified goods and services, unregistered supplier to specified class
of registered persons1314.

📖 Relevant Definitions
 • Central Tax: CGST levied under Section 9 of the CGST Act7.
• Integrated Tax: IGST levied under Section 5 of the IGST Act15.
• State Tax: Tax levied under any State GST Act.
• Goods: Movable property excluding money and securities.
• Electronic Commerce: Supply of goods/services over digital networks16.
• Exempt Supply: Supply attracting nil rate of tax or wholly exempt17.
• Aggregate Turnover: Aggregate value of all taxable supplies, exempt supplies,
exports, and inter-State supplies18.

❓ Questions and Answers

Q1: What is the basis for the charge of tax under GST?

A1: The basis for the charge of tax under GST is the taxable event, which is the SUPPLY
of goods or services.

Q2: What are the different types of GST?

A2: The different types of GST are CGST, SGST/UTGST, and IGST.

Q3: What is the Reverse Charge Mechanism?

A3: Under the Reverse Charge Mechanism, the liability to pay tax is on the recipient of
goods or services instead of the supplier1920.

Q4: What is the extent of the CGST Act, 2017?

A4: The CGST Act, 2017 extends to the whole of India.

📚 Chapter 4: Place of Supply
🏷️ Key Terms and Concepts

1. Introduction

• GST: A destination-based tax levied at the place where goods or services are
consumed1.
• Place of Supply: Determines the jurisdiction where the tax revenue should
reach2.
• Location of Supplier: Essential to ascertain the nature of supply (intra-State or
inter-State)3.

2. Place of Supply of Goods

• Movement of Goods: The place of supply is the location where the movement of
goods terminates for delivery5.
• Bill to Ship to Model: The place of supply is the principal place of business of
the third person.
• No Movement of Goods: The place of supply is the location of goods at the
time of delivery47.
• Installation or Assembly: The place of supply is the place of installation or
assembly8.
• On Board a Conveyance: The place of supply is the location where goods are
taken on board910.

3. Place of Supply of Services11

• General Rule: For registered persons, the place of supply is the location of the
recipient12. For unregistered persons, it is the location of the supplier if the
recipient’s address is not available.
• Immovable Property: The place of supply is the location of the property1314.
• Restaurant and Catering Services: The place of supply is where the services are
performed.
• Training and Performance Appraisal: For registered persons, the place of
supply is the location of the recipient12. For unregistered persons, it is where the
services are performed15.
• Transportation of Goods: For registered persons, the place of supply is the
location of the recipient. For unregistered persons, it is where the goods are
handed over for transportation16.
 • Passenger Transportation: For registered persons, the place of supply is the
location of the recipient17. For unregistered persons, it is where the passenger
embarks on the journey18.

❓ Questions and Answers

Q1: What is the significance of determining the place of supply in GST?19

A1: Determining the place of supply is crucial as it identifies the jurisdiction where the
tax revenue should be collected, ensuring the correct application of SGST/UTGST, CGST,
or IGST2.

Q2: How is the place of supply determined for goods involving movement?6

A2: The place of supply is the location where the movement of goods terminates for
delivery to the recipient205.

Q3: What are the rules for determining the place of supply for services related to
immovable property?21

A3: The place of supply is the location of the immovable property or where it is
intended to be located1314.

Q4: How is the place of supply determined for services provided on board a
conveyance?22

A4: The place of supply is the location where the goods are taken on board the
conveyance109.

📑 Summary Points

• GST is a destination-based tax1.

• Place of Supply determines the jurisdiction for tax revenue2.
• Different rules apply for goods and services to determine the place of supply.
• Key Factors: Movement of goods, location of immovable property, and the
nature of services provided.
📚 Exemptions from GST1
Key Terms and Concepts

1. Introduction

• Exempt Supply: Supply of goods/services attracting nil rate of tax or wholly

exempt from tax, including non-taxable supply3.
• Non-Taxable Supply: Supply not leviable to tax under CGST or IGST Act4.

2. Power of the Government to Grant Exemption56

• Section 11 of CGST Act & Section 6 of IGST Act: Government can exempt
goods/services from tax on GST Council’s recommendation.
• Types of Exemptions:
o Absolute Exemption: Unconditional.
o Conditional Exemption: Subject to specified conditions7.

Goods Exempt from Tax8

• Essential Goods: Unpacked food grains, milk, eggs, curd, lassi, fresh vegetables9.
• Examples: Live fish, fresh milk, potatoes, grapes, Indian National Flag, plastic
bangles.

Services Exempt from Tax10

• Charitable and Religious Activities:

o Services by entities registered under section 12AA or 12AB of the Income-
tax Act1112.
o Conduct of religious ceremonies13.
o Renting precincts of religious places under specified conditions.
• Agriculture Related Services:
o Loading, unloading, packing, storage, or warehousing of rice1415.
o Warehousing of minor forest produce, cereals, pulses, fruits, and
vegetables16.
o Agricultural operations directly related to production17.
• Educational Services:
o Services by educational institutions to students, faculty, and staff1819.
o Conduct of entrance examinations.
o Transportation, catering, security, cleaning, and housekeeping services for
educational institutions20.
Questions and Answers

Q1: What is an exempt supply under GST?

A1: An exempt supply is the supply of any goods or services or both which attracts nil
rate of tax or is wholly exempt from tax, including non-taxable supply3.

Q2: What are the types of exemptions under GST?

A2: Exemptions can be absolute (unconditional) or conditional (subject to specified

conditions).

Q3: Which goods are exempt from GST?2

A3: Essential goods like unpacked food grains, milk, eggs, curd, lassi, and fresh
vegetables are exempt from GST9.

Q4: What services are exempt from GST?

A4: Services related to charitable and religious activities, agriculture, and education are
exempt from GST21.
Key Terms and Concepts

Goods and Services Tax (GST)

• Definition: GST is payable on the supply of goods or services12. It involves

various elements like purchase order, dispatch, delivery, payment, etc.
• Time of Supply: Indicates the point in time when the liability to pay GST arises34.

Time of Supply of Goods

• Forward Charge: The earlier of the date of issue of invoice or the date of receipt
of payment.
• Reverse Charge: The earliest of the date of receipt of goods, date of payment, or
30 days from the date of invoice5.
• Vouchers: Date of issue if the supply is identifiable; otherwise, the date of
redemption6.
• Residual Cases: Due date for filing the return or the date on which GST is paid7.
• Interest/Late Fee: Date on which the supplier receives the additional value.

Time of Supply of Services

• Forward Charge: The earlier of the date of issue of invoice or the date of receipt
of payment.
• Reverse Charge: The earliest of the date of payment or 60 days from the date of
invoice.
• Vouchers: Date of issue if the supply is identifiable; otherwise, the date of
redemption6.
• Residual Cases: Due date for filing the return or the date on which GST is paid7.
• Interest/Late Fee: Date on which the supplier receives the additional value.

Questions and Answers

Q1: What is the significance of the time of supply in GST?

A1: The time of supply determines when the liability to pay GST arises, ensuring timely
tax collection3.

Q2: How is the time of supply determined for goods under forward charge?8

A2: It is the earlier of the date of issue of invoice or the date of receipt of payment9.

Q3: What are the provisions for the time of supply of vouchers?
A3: The time of supply is the date of issue if the supply is identifiable; otherwise, it is the
date of redemption.

Summary

• Forward Charge: Invoice date or payment date, whichever is earlier.

• Reverse Charge: Receipt of goods, payment date, or 30/60 days from invoice
date.
• Vouchers: Issue date or redemption date.
• Residual Cases: Return filing date or tax payment date.
• Interest/Late Fee: Date of receipt of additional value.
📚 Chapter 7: Value of Supply
Introduction

GST is payable on:

• Supply of goods or services for a consideration in the course of business1.

• Certain supplies made without consideration as specified in Schedule I of the
CGST Act2.

Key Concepts

Value of Supply

• Transaction Value: The price actually paid or payable for the supply of goods or
services where the supplier and recipient are not related, and the price is the sole
consideration34.
• Inclusions in Value:6
o Taxes, duties, cesses, fees, and charges (excluding GST)7.
o Amounts incurred by the recipient on behalf of the supplier.
o Incidental expenses like commission and packing8.
o Interest, late fee, or penalty for delayed payment910.
o Subsidies directly linked to the price (excluding government subsidies)11.

Exclusions from Value

• Discounts:
o Given before or at the time of supply and recorded in the invoice12.
o Given after supply if established in terms of an agreement and linked to
relevant invoices, with proportionate input tax credit reversed by the
recipient.

Relevant Definitions

• Agent: A person who carries on the business of supply or receipt of goods or

services on behalf of another1314.
• Consideration: Payment made or to be made for the supply of goods or services,
excluding government subsidies15.
• Person: Includes individuals, HUF, companies, firms, LLPs, associations, and more.
Detailed Examples

1. Transaction Value Example:

o X Ltd. sells 1 MT of cement to Y for ₹6,70016. The value of supply is ₹6,700,
not the wholesale price of ₹7,00017.
2. Inclusions Example:
o Grand Biz contracts with ABC Co. for a dealers’ meet18. ABC Co. pays the
soft drinks vendor directly. This amount is added to the value of supply by
Grand Biz19.

Questions and Answers

Q1: What constitutes the value of a taxable supply?20

A1: The value of a taxable supply is the transaction value, which is the price actually paid
or payable for the supply of goods or services where the supplier and recipient are not
related, and the price is the sole consideration35.

Q2: What are the inclusions in the value of supply?21

A2: Inclusions are taxes (excluding GST), amounts incurred by the recipient on behalf of
the supplier, incidental expenses, interest or late fees, and subsidies directly linked to
the price.

Q3: When are discounts excluded from the value of supply?22

A3: Discounts are excluded if given before or at the time of supply and recorded in the
invoice, or if given after supply, established in terms of an agreement, and linked to
relevant invoices with proportionate input tax credit reversed by the recipient.

Summary Points

• Value of Supply: Transaction value, inclusions, and exclusions23.

• Key Definitions: Agent, consideration, person.
• Examples: Practical scenarios illustrating the concepts.
📚 Chapter 8: Input Tax Credit (ITC)
🎯 Learning Outcomes1

• Understand the definitions of inputs, input services, capital goods, and other
relevant terms2.
• Explain the conditions, timelines, restrictions, and processes for taking ITC4.
• Identify items on which ITC is available and blocked items5.
• Apply provisions to compute GST liability6.

📝 Key Terms and Concepts

📌 Inputs, Input Services, and Capital Goods2

• Inputs: Goods used in the course of business8.

• Input Services: Services used in the course of business.
• Capital Goods: Goods capitalized in the books and used in business.

📌 Eligibility and Conditions for ITC

• Eligibility: Registered person, goods/services used for business8.

• Conditions: Possession of tax invoice, receipt of goods/services, tax paid to the
government, and return filed.

📌 Blocked Credits

• ITC not available on certain items like motor vehicles, goods/services used for
personal consumption, etc.

📌 Utilization of ITC

• ITC can be used to pay output tax on taxable supplies910.

📊 Scheme of ITC - At a Glance11

• Avoids cascading effect of taxes.

• Available on all inputs, input services, and capital goods used for business3.
• Not available on exempt supplies except zero-rated supplies (exports/SEZ).
 • Proportionate ITC for common inputs/services used for both taxable and
exempt supplies7.

❓ Questions and Answers

Q1: What are the conditions for availing ITC?

A1: The conditions include possession of a tax invoice, receipt of goods/services, tax
paid to the government, and filing of returns.

Q2: What are blocked credits?

A2: Blocked credits are items on which ITC is not available, such as motor vehicles for
personal use, goods/services used for personal consumption, etc12.

Q3: How is ITC utilized?

A3: ITC is used to pay output tax on taxable supplies, ensuring no cascading effect of
taxes109.

🔍 Examples and Illustrations

• Example 1: A trader purchases goods and receives an invoice. The trader can
claim ITC if the goods are used for business and all conditions are met.
• Example 2: A company receives services for business purposes and can claim ITC
if the service provider has paid the tax to the government.
📚 Registration under GST
Key Terms and Concepts

1. Taxable Person: A person who is registered or liable to be registered under GST12.

This includes both registered and unregistered persons who are liable to register3.

2. Aggregate Turnover: The total value of all taxable supplies, exempt supplies,
exports, and inter-State supplies of a person having the same PAN, excluding taxes and
inward supplies on which tax is payable under reverse charge4.

3. Compulsory Registration: Certain cases where registration is mandatory regardless

of turnover, such as inter-State supplies, casual taxable persons, and non-resident
taxable persons.

4. Input Tax Credit (ITC): The credit of GST paid on purchases that can be used to pay
GST on sales.

Main Topics

1. Introduction

• Definition: Registration is the process of identifying taxpayers for ensuring tax

compliance5.
• Importance: Without registration, a person cannot collect tax or claim ITC6.

2. Persons Liable for Registration7

• Threshold Limits:
o General: ₹20 lakh8
o Special Category States: ₹10 lakh9
o Exclusive Supply of Goods: Up to ₹40 lakh in some cases
• Special Cases: Transfer of business, amalgamation, etc.

3. Compulsory Registration

• Inter-State Supplies: Mandatory for all inter-State suppliers10.

• Casual Taxable Persons and Non-Resident Taxable Persons: Must register
regardless of turnover.
• Others: Persons required to pay tax under reverse charge, e-commerce
operators, etc11.
4. Persons Not Liable for Registration7

• Exemptions: Persons exclusively supplying exempt goods/services, agriculturists,

and certain notified persons12.

5. Procedure for Registration13

• Steps: Application submission, verification, and issuance of registration

certificate.
• Amendment and Cancellation: Procedures for modifying or canceling
registration.

Potential Questions and Answers

Q1: What is the significance of registration under GST?

• A1: Registration is crucial for identifying taxpayers, collecting tax, and claiming
ITC. It ensures compliance and legal recognition as a supplier.

Q2: Who is required to register under GST?12

• A2: Any person whose aggregate turnover exceeds the specified threshold,
persons making inter-State supplies, casual taxable persons, and others as
specified.

Q3: What are the threshold limits for registration?14

• A3: ₹20 lakh for most states, ₹10 lakh for special category states, and up to ₹40
lakh for exclusive supply of goods in some cases9.

Q4: What is the procedure for obtaining GST registration?

• A4: Submit an application, undergo verification, and receive the registration

certificate. Amendments and cancellations follow specific procedures.
📄 Chapter 10: Tax Invoice, Credit, and Debit Notes
🎯 Learning Outcomes1

• Describe and analyze the provisions relating to tax invoices for taxable supply of
goods and services2.
• Enumerate the particulars of a tax invoice3.
• Understand the provisions relating to e-invoicing46.
• Explain the provisions for revised tax invoices, bills of supply, receipt vouchers,
refund vouchers, and payment vouchers7.
• Identify cases where no tax invoice is required8.
• Describe the issuance of credit and debit notes9.
• Explain the prohibition of unauthorized tax collection10.
• Describe the amount of tax to be indicated in tax invoices and other
documents11.

📜 Introduction

• Invoice: A commercial instrument issued by a supplier to a recipient, listing

goods/services, quantities, prices, and payment terms.
• Importance: Ensures tax compliance and transparency in taxable transactions.

📚 Key Terms and Concepts

📄 Tax Invoice

• Definition: A document evidencing the supply of goods/services and the tax

portion12.
• Section 31: Mandates issuance of an invoice for every supply of goods or
services13.

📄 Credit Note

• Definition: A document issued under Section 34(1) to reduce the tax liability.

📄 Debit Note

• Definition: A document issued under Section 34(3) to increase the tax liability.

📋 Provisions of Tax Invoice

⏰ Time Limit for Issuance

• Goods: Before or at the time of removal/delivery14.

• Services: Before or after provision, within a prescribed period15.

📄 Particulars of a Tax Invoice3

• Supplier and recipient details, description, quantity, value, tax rates, and amounts.

📄 E-Invoicing6

• Definition: Reporting B2B invoices to the GST system for certain taxpayers16.
• Advantages: Auto-reporting, reduction in errors, improved business efficiency.

❓ Questions and Answers

1. Q: What is a tax invoice?

o A: A document issued by a supplier to a recipient, evidencing the supply of
goods/services and the tax portion.
2. Q: What are the key particulars of a tax invoice?3
o A: Supplier and recipient details, description, quantity, value, tax rates, and
amounts.
3. Q: What is e-invoicing and its benefits?5
o A: E-invoicing is the reporting of B2B invoices to the GST system16.
Benefits include auto-reporting, error reduction, and improved business
efficiency.

📌 Summary

• Tax Invoice: Essential for tax compliance, must include specific details.
• Credit and Debit Notes: Adjust tax liabilities.
• E-Invoicing: Streamlines reporting and enhances efficiency.
📚 Chapter 11: Accounts and Records
Learning Outcomes1

• Enumerate the accounts and other records required under GST2.

• List additional records for agents, manufacturers, and service providers34.
• Describe accounts for works contracts, clearing and forwarding agents5.
• Enumerate records for warehouse operators and transporters6.
• Describe the retention period for books of accounts7.

Key Terms and Concepts

Agent

• Definition: A person who carries on the business of supply or receipt of goods/services

on behalf of another8.
• Example: A commission agent handling sales for a manufacturer.

Commissioner

• Definition: The Commissioner of central tax, including the Principal Commissioner9.

• Example: The authority overseeing tax compliance.

Common Portal

• Definition: The electronic portal for GST.

• Example: The GSTN portal used for filing returns.

Invoice or Tax Invoice

• Definition: The tax invoice referred to in section 3110.

• Example: A bill issued by a seller to a buyer.

Accounts and Records [Section 35]11

Who Must Maintain Records?

• Registered Persons: Must keep records at their principal place of business12.

• Warehouse Operators and Transporters: Must maintain records even if not registered.

Types of Records

• Production or Manufacture of Goods

• Inward and Outward Supply of Goods/Services13
• Stock of Goods
 • Input Tax Credit (ITC) Availed
• Output Tax Payable and Paid14

Additional Records for Specific Persons

• Agents: Authorization details, goods/services received and supplied, tax paid.

• Manufacturers: Monthly production accounts, raw materials used, waste/by-products.
• Service Providers: Accounts of goods used, input services utilized.
• Works Contractors: Separate accounts for each contract, goods/services received and
used15.
• Warehouse Operators and Transporters: Records of consigner, consignee, and goods
details.

Period of Retention [Section 36]16

• General Rule: Retain records for 72 months from the due date of the annual return17.
• Special Cases: Retain records for one year after final disposal of appeals, revisions, or
investigations.

Questions and Answers

Q1: Who is required to maintain books of accounts and at which place?1819

A1: Every registered person must maintain books at their principal place of business and
additional places as specified in the registration certificate2012.

Q2: What records are not required to be maintained by a composition taxable person?21

A2: Composition taxable persons are not required to maintain records of stock of goods and
details of tax payable, collected, and paid22.

Q3: What specific records must a works contractor maintain?

A3: Names and addresses of clients, details of goods/services received and used, payment
details, and supplier information158.

Q4: What are the consequences of failing to maintain accounts?23

A4: The proper officer will determine the tax payable on unaccounted goods/services as if they
were supplied, applying the provisions of sections 73 or 7424.
📜 E-Way Bill1
📌 Introduction

Under the GST regime, the E-Way Bill system was introduced to monitor the movement
of goods and control tax evasion2. It replaces physical check posts with a digital
interface.

📌 Key Terms and Definitions

• Common Portal: The GST electronic portal for uploading transaction details.
• Taxable Supply: Supply of goods or services that is taxable under the GST Act3.
• Place of Business: Includes the main business location, warehouses, and places
where books of accounts are maintained.
• Registered Person: A person registered under GST.

📌 When is an E-Way Bill Required?1

An E-Way Bill is required when the movement of goods exceeds ₹50,000 in value:4

1. In relation to a supply5.
2. For reasons other than supply6.
3. Due to inward supply from an unregistered person7.

📌 Information to be Furnished8

• Part A: Details of the supplier, recipient, and goods9.

• Part B: Transport details like vehicle number.

📌 Generation and Validity

• Generated by: Consignor, consignee, or transporter.

• Validity: Depends on the distance to be traveled (e.g., 1 day for up to 200 km)10.

📌 Benefits of E-Way Bill11

• Faster movement of goods12.

• Reduction in logistics costs.
• Elimination of state boundary check-posts.

📌 Special Situations
 • Bill To Ship To Model: Involves three parties and requires only one E-Way Bill.
• Consolidated E-Way Bill: For multiple consignments in one vehicle13.

📌 Exemptions

No E-Way Bill is required for:

• Non-motorized conveyance.
• Certain exempt goods (e.g., LPG for households, postal baggage).

❓ Questions and Answers

Q1: What is the purpose of the E-Way Bill system?1

A1: The E-Way Bill system monitors the movement of goods to control tax evasion and
facilitate faster movement by eliminating physical check posts.

Q2: When must an E-Way Bill be generated?14

A2: An E-Way Bill must be generated when the consignment value exceeds ₹50,000,
whether for supply, reasons other than supply, or inward supply from an unregistered
person4.

Q3: What information is required in Part A and Part B of the E-Way Bill?

A3:

• Part A: Supplier and recipient details, place of delivery, document number, value
of goods, HSN code, and reasons for transportation15.
• Part B: Transport details like vehicle number.

Q4: What are the benefits of using the E-Way Bill system?11

A4: Benefits include faster movement of goods, reduced logistics costs, and the
elimination of state boundary check-posts.

Q5: Are there any exemptions to generating an E-Way Bill?14

A5: Yes, exemptions include non-motorized conveyance and certain exempt goods like
LPG for households and postal baggage.
📚 Payment of Tax
Key Terms and Concepts

1. Electronic Ledgers

• Electronic Cash Ledger: A ledger where all deposits/payments made by a

taxpayer are recorded2.
• Electronic Credit Ledger: A ledger where self-assessed input tax credits are
credited.
• Electronic Liability Register: A ledger that records all liabilities of a taxable
person3.

2. Types of GST

• CGST (Central GST): Tax collected by the Central Government for intra-state
supplies.
• SGST (State GST): Tax collected by the State Government for intra-state supplies.
• IGST (Integrated GST): Tax collected for inter-state supplies, combining both
CGST and SGST4.

3. Utilization of Credit

• Cross Utilization: The methodology of using credits from one type of tax to pay
another5.
• Order of Utilization: The sequence in which credits must be used to discharge
liabilities.

4. Interest and Penalties

• Interest on Delayed Payment: Interest levied on late payments of tax.

• Penal Interest: Additional interest charged under specific circumstances.

Questions and Answers

Q1: What are the three types of electronic ledgers in GST?

A1: The three types of electronic ledgers are:1

1. Electronic Cash Ledger: Records all deposits/payments.

2. Electronic Credit Ledger: Records self-assessed input tax credits.
3. Electronic Liability Register: Records all liabilities.
Q2: How is the interest on delayed payment of tax calculated?6

A2: Interest on delayed payment is calculated from the day succeeding the due date
until the tax is paid. The rate is notified by the Government, not exceeding 18%.

Summary of Provisions

1. Electronic Cash Ledger: Used for making payments towards tax, interest,
penalty, fees, or any other amount78.
2. Electronic Credit Ledger: Used for making payments towards output tax9.
3. Electronic Liability Register: Maintains all liabilities of a taxable person3.
4. Interest on Delayed Payment: Levied on unpaid tax amounts, calculated from
the due date.
📚 Tax Deduction at Source (TDS) and Collection of
Tax at Source (TCS)1
Key Terms and Concepts

1. Introduction to TDS and TCS

• Tax Deduction at Source (TDS): A system where a certain percentage of tax is

deducted by the recipient at the time of making payment to the supplier.
• Tax Collection at Source (TCS): A system where tax is collected by the electronic
commerce operator when a supplier supplies goods or services through its
portal23.

2. Deductors of Tax at Source4

• Categories of Deductors: Central/State Government departments, local

authorities, governmental agencies, and notified persons.
• Exemptions: Supplies between PSUs and certain specified authorities.

3. Standard Rate of Deduction5

• Rate: 1% under CGST Act, 2% under IGST Act6.

• Threshold: Total value of supply under a contract exceeding ₹2,50,00078.

4. TDS Certificate and Remittance

• Certificate: Issued in prescribed form to the deductee9.

• Remittance: TDS to be deposited by the 10th of the succeeding month1011.

5. Collection of Tax at Source (TCS)

• Liable Persons: Electronic Commerce Operators (ECO).

• Rate: 0.5% for intra-State supplies, 1% for inter-State supplies12.
• Deposit: TCS to be remitted within 10 days after the end of the month1311.

Questions and Answers

Q1: What is the purpose of TDS?

A1: TDS ensures regular inflow of tax collection to the Government and acts as a
powerful instrument to prevent tax evasion1415.

Q2: Who are the deductors under the CGST Act?

A2: Deductors include Central/State Government departments, local authorities,

governmental agencies, and notified persons.

Q3: What is the standard rate of TDS under the CGST Act?16

A3: The standard rate of TDS is 1% under the CGST Act.

Q4: What is the procedure for remittance of TDS?

A4: The amount deducted as TDS should be deposited to the Government account by
the 10th of the succeeding month1017.

Q5: Who is liable to collect TCS?1819

A5: Every Electronic Commerce Operator (ECO) is liable to collect TCS on the net value
of taxable supplies made through it by suppliers2021.

Summary

• TDS and TCS: Mechanisms to ensure tax collection at the source of income.
• Deductors and Collectors: Specific entities mandated by the Government.
• Rates and Thresholds: Defined rates and thresholds for deduction and
collection.
• Compliance: Strict timelines for remittance and issuance of certificates.
📄 Chapter 15: Returns1
📚 Introduction

Return: A statement of information furnished by the taxpayer to tax administrators at

regular intervals2. It includes details of business operations, deductions, exemptions, and
tax liability3.

📌 Key Terms and Concepts

• Outward Supplies: Goods/services supplied by the taxpayer4.

• Inward Supplies: Goods/services received by the taxpayer.
• GSTR-1: Form for furnishing details of outward supplies56.
• GSTR-3B: Monthly summary return.
• Annual Return (GSTR-9): Yearly summary of all transactions.
• Final Return (GSTR-10): Filed when the registration is canceled.
• Late Fee: Penalty for delayed filing of returns.

📋 Types of Returns

1. GSTR-1: Details of outward supplies7.

2. GSTR-3B: Monthly summary return.
3. GSTR-4: Quarterly return for composition taxpayers.
4. GSTR-5: Return for non-resident taxable persons.
5. GSTR-8: Return for e-commerce operators.
6. GSTR-9: Annual return.
7. GSTR-10: Final return.
8. GSTR-11: Return for persons with Unique Identity Number.

📊 Filing of Returns8

• Due Dates: GSTR-1 is due on the 10th of the following month. GSTR-3B is due on
the 20th of the following month.
• Modes of Filing: Online through the GST portal, offline utilities, or through GST
Suvidha Providers (GSP).

📝 Questions and Answers

Q1: What is the significance of filing returns under GST?

A1: Filing returns is crucial for self-assessment of tax liability, compliance verification,
and providing necessary inputs for policy decisions.

Q2: What are the consequences of not filing returns on time?

A2: Late filing attracts a late fee and may lead to interest on unpaid tax, and the
taxpayer may not be able to file subsequent returns.

Q3: What is the Invoice Furnishing Facility (IFF)?

A3: IFF allows quarterly taxpayers to file details of outward supplies in the first two
months of the quarter to pass on the credit to their recipients9.

📌 Important Sections and Rules

• Section 37: Furnishing details of outward supplies1011.

• Section 38: Furnishing details of inward supplies.
• Section 39: Furnishing of returns1213.
• Section 44: Annual return14.
• Section 45: Final return15.
• Section 46: Notice to return defaulters16.
• Section 47: Levy of late fee17.
• Section 48: GST practitioners18.

📈 Compliance Tips

• Regular Uploading: Regularly upload invoice details to avoid last-minute rush.

• Follow Up: Ensure suppliers upload their invoices timely to claim Input Tax Credit
(ITC) without hassle.