Dr. C.B.Kuligod Degree College Mugalkhod.

Rani Channamma University Belagavi

Dr. C.B.Kuligod Degree College
Tq: Raibag Mugalkhod Dst: Belagavi

GOODS & SERVICE TAX I (GST-I)

B.Com Vth Sem 2022

2,5,15 Marks Quations With Answars

Prepared By
Asst. Prof: Pradeep A. N
(Dr.C.B.kuligod Degree College Mugalkgod)

Gmail: [email protected]

Mo: 8904148594

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 Dr. C.B.Kuligod Degree College Mugalkhod.

Index
Unit
1 Introduction to
GST.
2 Extant & Definition
Of GST
3 Examption from
GST
4 Registration
Process in GST
5 Supply of Goods &
services Under GST

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 Dr. C.B.Kuligod Degree College Mugalkhod.

UNIT – 1
INTRODUCTION TO GST
Important two marks questions with answers
1 Difine GST?
As per article 366 (12A) goods and services tax
means any tax on supply of goods and services or both
except taxes on supply of the alcoholic liquor for
human consumption.
2 Give the meaning of goods under GST ?
According to Section 2(52) of GST Act “ goods
means every kind of movable property other than
money and securities but includes actionable claim
growing crops grass and things attached to or forming
a part of the land which are agreed to be served before
supply or under a contract of supply “.
3 Define services under GST?
According to Section 2 (102) of GST Act “ services
means anything other than goods money and securities
but includes activity related to the use of money or its
conversion by cash or by any other more from one
from current se or denomination to another form

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 Dr. C.B.Kuligod Degree College Mugalkhod.

currency are denomination for which a separate

consideration is charged.
4 Mention two items excluded in GST / state the
communities kept outside the preview of GST?
 Alcohol for human consumption.
 Petroleum products.
 Electricity.
 High speed Diesel.
 Motor spirit.
 Natural Gas.
5 what do you mean by cascading effect?
Cascading effect means a tax on tax it is a situation fair
in a consumer has to be a The Lord of tax on tax that
result in increase in the price of the products.
6 state any two objectives of GST?
1. Ensuring that the cascading effect of tax on tax will
be eliminated.
2. Improving the competitiveness of the original goods
and services thereby improving the GDP rate too.
3. Reducing The Tax slab rates to avoid further
classification issues.
4. Decreasing the unhealthy competitiveness among
the states due to taxes and revenues.

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 Dr. C.B.Kuligod Degree College Mugalkhod.

5. Reduced the compliance in tax administration.

IMPORTANT FIVE MARKS QUESTIONS WITH ANSWERS
1 what is GST ? state its features.
As per articles 366 (12A) goods and service tax
means any tax on supply of goods and services are
both except taxes on supply of the alcoholic liquor for
human consumption.
OR
GST is an indirect tax are consumption tax used in
India on the supply of goods ACD services it is
comprehensive multi-stage destination based tax.
Futures :
1. Taxable event - supply of goods and services.
2. One tax rate across the country.
3. Destination based tax.
4. Unified tax.
5. Value added tax
6. Devil model tax (SGST / CGST)
7. Free flow of credit.
2 what is IGST? explain the characteristics of IGST.
IGST(integrated goods and services tax) is a tax or
imposed on all suppliesin the course of intre- statesales
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 Dr. C.B.Kuligod Degree College Mugalkhod.

as well as import of goods and services from outside

India. it is covered under IGST act 2016..the credit of
IGST available against CGSTSGST and IGST.

Characteristic :
1. As per sec 5 (1) IGST Act 2017. The maximum rate of
IGST can be levied is at 40%.
2. It is levied on the inter-state and the cross-border
transaction of goods and services.
3. It is a destination based tax and tax will be collected
by importing state.
4. Tax amount collected in the form of IGST will be
shared by the centre and state government.
5. Central Government levies and collect my IGST in
levy of CGST.
6. There will be uniform IGST rate across the
COUNTRY.
7. Interstate trade will pay IGST after adjusting the
available input tax credit under IGST SGST CGST on
the transaction.
3 explain the principles of GST for imposing tax.
1. Indirect tax.
2. Tax is imposed on value addition.
3. Electronically administrated.
4. GST is destination based tax.

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 Dr. C.B.Kuligod Degree College Mugalkhod.

5. GST is regressive tax.

6. Federal in nature.
7. GST replaced various laws at both Central and
state government.
8. Elimination of cascading effect.
9. GST enable free moment of goods throughout
India.
10. Incorporate equity.

IMPORTANT 15 MARKS QUESTIONS WITH ANSWERS.

1 explain the benefits advantages of GST to the traders
consumers and government?
Advantages to Government:
1. Unified common market : goods and service tax
will be help to create a unified common national
market from India giving a boost to foreign
investment and make in India campaigning.
2. The number of compliances is lesser : earlier there
was VAT and Service Tax each of which had their
own return and compliances under GST however
there is just one unified return to be filled
therefore the number of returns to be filled has
come down there are about 11 returns under GST

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 Dr. C.B.Kuligod Degree College Mugalkhod.

out of which 4 are basic returns which apply to all

taxable person under GST.
3. Uniform rates : similar uniform SGSTCGST and
SGST rates will reduce the initiative for aviation by
eliminating rate arbitrage between neighboring
states and that between inter and intra State sales.
4. Common procedures : common procedures for
registration of taxpayers refund of taxes uniform
format of tax return common tax basis common
system of classification of goods and services will
end greater certainty to taxation system.
5. Reducing corruption : the goods and service tax
network is a non-profit, non government
organisation it will manage the entire it system of
the GST portal fair is the mother database for
everything GST this portal will be used by the
government to track every financial transaction
and will provide taxpayers with all services for
registration to filing taxes and maintaining all Tax
details.
6. Economic growth : GST will boost export and
manufacturing activity generate more
employment and the increase GDP with gain full
employment lending to economic growth.
7. Loss procedures and rates of tax between centre
and state and across States.

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 Dr. C.B.Kuligod Degree College Mugalkhod.

8. It will help in priority eradication by generating

more employment and more financial resources.
Advantages to trade and industry :
1. Mitigates cascading effect : cascading tax effect
can be best described as tax on tax GST is
comprehensive indirect tax that was designed to
bring the indirect taxation under one umbrella
more importantly it is going to eliminate the
cascading effect of taxes as input tax credit will be
available across goods and services at every stage
of supply.
2. Higher threshold for registration : early yaar in
the VAT structure any businesses with a turnover
of more than rupees 5 Lakh was liable to pay VAT.
Please note that this limit different State wise
also service tax was exempted from service
provider with a turnover of less than rupees 10
lakh.
3. Composition scheme for small businesses : under
GST small businesses with turnover upto 1 crore
can benefit as it gives an option to lower tax by
utilised the composition scheme however the
threshold limit for composition scheme is
increased to rupees 1.5 crore with effect from 1
April 2019.

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 Dr. C.B.Kuligod Degree College Mugalkhod.

4. Simple and easy online procedure : the entire

process of GST is made online and it is super
simple this has been beneficial for start of
especially as they do not have to run from pillar
to post to get different registration such as what
excise and service tax.
5. The number of compliances is lesser : earlier
there was what and service tax each of which had
their own returns and compliances under GST
however there is just one unified return to be
filled need for the number of returns to be filled
has come down.
6. Unorganised sector is regulated under GST :
tinder free GST error it was often seen that
certain industries in India like construction and
textile were largely on regulated and an organism
under GST however there are provisions for
online compliances and payments.
Advantages to consumers :
1. Final price of goods is expected to be transparent
due to seamless flow of input tax credit between
the manufacturer retailer and service supplier.
2. Reduction in prices of commodities and goods in
long run due to reduction In cascading impact of
taxation.

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 Dr. C.B.Kuligod Degree College Mugalkhod.

3. Relative Lee large segment of small retailers will be

either exempted from tax or will suffer every low
tax rates under a compounding scheme purchase
from such a entries will cost less for the
customers.
4. Poverty eradication by generating more
employment and more Financial Services.

2 when GST has been introduced in India? explain the

needs for introduction of GST.
GST has been introduced in India 1 st July 2017.
Need for introduction of GST
1. GST eliminates the cascading effect of tax : GST is a
comprehensive indirect tax that was designed to
bring the indirect taxation under one umbrella more
importantly it eliminates the cascading effect of tax
that was evident earlier.
2. Easy Compliance : all the compliance like
registration returns payments etc under the GST
system are done online which makes compliance
under the GST system has transparent.
3. One country one tax : instead of of several different
taxes levied by state and Central Government GST
imposes only one tax GST replace several hidden

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 Dr. C.B.Kuligod Degree College Mugalkhod.

taxes that were imposed by State Government and

it improves easy of doing business.
4. Single economicZone : GST brings a single economic
zone for the country for overlapping Federal and
state taxes GST is in line with Cooperative
federalism there in the centre and the states works
together for the benefit of the nation.
5. Boost in foreign investment : in the longer run the
GST is expected to attract foreign investment
reducing the cost of capital goods rise
manufacturing and export increase tax collections
and create jobs.
6. Manufacturing sector or make in India will get boost
: manufacturing will get more competitive as GST
addresses the issue of cascading tax interstate tax
and fragmented market.
7. For easy of starting and doing business : earlier of
businesses having operation across different state
needed VAT registration different Tax rules in a
different states only added to the the complications
and Inka Hai procedure fields GST brought in
unification and will make starting a businesses
easier and running the business is also a easy.
8. Relief for businesses in both sales and services :
businessesmica restaurant which fall under both
sales and services taxation had a calculated both

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 Dr. C.B.Kuligod Degree College Mugalkhod.

VAT and Service Tax separately GST will not

distinguish between sales and services at GST will
be applicable on total.
9. Reduction in logistics cost and time across state :
Mini transport vehicles got delayed during moment
across States due to small tax border of each state
and check post issues interstate movement will
become cheaper and less time consuming as these
taxes will be eliminated.
10. Protection from increased imports : GST will
address the issue of increase in import by living and
appropriate countervailing duty on imports.
11. Boost to e commerce industry : state and Central
taxes have laboured multiple taxes on E-Commerce
thereby making the sector more complicated some
sellers for discouraged from selling because of such
a complications GST free Up The E-Commerce
sector.
12. For GDP growth : it is expected that
implementation of GST would Levi to 2% increase
mental GDP growth.

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 Dr. C.B.Kuligod Degree College Mugalkhod.

3 explain the principles of GST ?

1) Indirect tax.
2) Tax is imposed on valive addition.
3) Electronically administerad.
4) GST is regressive tax.
5) GST is Destination based tax
6) Federal in nature
7) GST replaced various laws and both center & state
8) Elimination of cascading effect
9) GST enables free moment of goods throught India
10) It incorporate equity

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 Dr. C.B.Kuligod Degree College Mugalkhod.

UNIT –2
EXTENT AND DEFINITIONS OF GST
Two marks questions with answers
1 What is intra state supply?
Supply of goods and services or both within the
state or union territory is called as intra state supply.
As per section 8of IGST Act 2017, supply of goods
where the location of the supplier and the place of
supply of goods are in the same state or same union
territory shall be treated as Intra state supply.
2 What is Inter state supply?
Supply of goods and services from one state to
another state is called as inter state supply. The GST
Act defines inter state supply as, when the location of
the supplier and the place of supply of the customer
are in :
Two different states or
Two different union territories or
State and a union territory, then it is treated as inter
state supply.

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3. DefineActionableclaim?
Actionable claim is a climb to an unsecured debt
and claim to any beneficial interest in movable
property. In simple terms actionable claim means a
claim in which amount is recoverable with the help of
law on civil grounds.
4. State any two examples for actionable claim?
Lottery tickets
Fixed deposit receipt
Negotiable instruments like bills of exchange and
promissory notes
Claim for arrears of rent
5. Difine address of delivery?
Address of delivery means the address of the
recipient of goods or services or both indicated on the
tax invoice issued by a registered person for delivery of
such goods or services or both.
6. Difine address of record.
Addresses on records means the address of the
recipient as available in the records of the supplier

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 Dr. C.B.Kuligod Degree College Mugalkhod.

7. Difine aggregate turnover.

Aggregate turnover means the aggregate value of
all taxable supplies exempt supplies export of goods or
services and interstate supplies of a person having the
same PAN, to be computed on all Indian basis excludes
taxes if any charged under the CGSTAct,SGST Act and
the IGST Act, as the case may be.
8. Difine assignment.
Assessment means determination of tax liability
under this act and includes self assessment
reassessment provisional assessment summary
assessment and best judgement assessment
9. Difine Agriculturist.
Agriculturist is a person who supplies the product
out of his cultivation land.
10. What is reverse charge?
Reverse charge means the liability to pay tax by
the recipient of supply of goods or services are both
instead of supplies of a such goods or services are both
under section9(3) or 9(4) of CGST Act or under Section
5(3) or 5(4) of the IGST Act.

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 Dr. C.B.Kuligod Degree College Mugalkhod.

FIVE MARKS QUESTIONS WITH ANSWERS

1 Explain Actionable claim.
Actionable claim is a climb to an unsecured debt and
claim to any beneficial interest in movable property.
In simple terms actionable claim means a claim in
which amount is recoverable with the help of law on
civil grounds.
According to Section 3 of Transfer of Property Act 1882
actionable claim means a claim to any debt, other than
adebt secured by mortgage of immovable property are
by hypothecation or pledge of movable property or to
any beneficial interest in movable property not in the
possession, either actual or constructive of the
claimant, which the Civil Court recognise as according
grounds for relief,whether such a debt are beneficial
interest be existent, occurring conditioner or
contingent.
Examples of Actionable claim
1. Lottery tickets
2. Fixed deposit receipts
3. Negotiable Instruments like bills of exchange and
promissory notes
4. Claim for arrears of rent
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 Dr. C.B.Kuligod Degree College Mugalkhod.

5. Claim of insurance
6. Right under a licence
7. Dividend on sales
Examples for Non Actionable claim
1. Depth secured by mortgage of immovable
property or pledge of immovable property.
2. Copyright patent and trademark
3. Claims for eventual profits
4. The right to recover damages for breach of
contract is not negotiable claim
5. A decree for debt is not attainable Claim

A) Aggregate turnover sec 2 (6)

Aggregate turnover means the aggregate
value of all taxable supplies export of goods and
services and inter-state supplies of a person having
the same pan to be computed on all India basis
excludes taxes if any charged under the
CGSTAct,SGST Act and IGST act as the case may be
Aggregate turnover does not include the value of
inward supplies on which Tax is payable by a
person on reverse charge basis and the value of
inward supplies

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 Dr. C.B.Kuligod Degree College Mugalkhod.

The aggregate turnover under the GST law covered

all the supplies affected by a person having the
same PAN it specifically excluded
1. Inward supplies affected by a person which are
liable to Tax under reverse charge mechanism.
2. Various taxes under the GST law compensation
cess.
B. Agriculturist Sec2(7)
Agriculturist means an individual or a HUF who
undertakes cultivation of land.
-by own labour
-by the labour of family or
-by servants on wages payable in cash or kind or by
hired labour under personal supervision or the
personal work supervision of any member of the
family.
An individual for HUL undertaking cultivation of land
whether own or not would be regards and as an
Agriculturist.The cultivation should be undertaken by
own labour or family labour or Servent on wages are
hired labour.

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 Dr. C.B.Kuligod Degree College Mugalkhod.

The scope of of definition is restricted to an individual

or IHUF any other person as defined in section 2(84)
carrying on the activity of Agriculture will not be
considered and as an agriculturist and hence will not
be exempt from the registration provision as provided
in Section 23( 1)(b) of the act.
C. Appointed Day Sec 2(10)
Appointed day means the date on which the
provisions of this act shall come into force.
The provisions of the CGST Act are implemented with
the effect of 1st July 2017 with the power vested to
notify different date for effective date commencement
of different provisions of the act therefore first July
2017 is the appointed day on which the provisions of
GST came into force.
D. Reverse charge section 2 (98)
Generally the supply of goods or services is liable to
pay GST.However in specified cases, like import and
the other notifiedsupplies,. the liability maybe cast on
the recipient under the reverse charge mechanism
reverse charge means the liability to pay tax is on the
recipient of supply of the goods or service instead of

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 Dr. C.B.Kuligod Degree College Mugalkhod.

the supplier of such a goods or services in respect of

notified categories of supply
Reverse charge means the liability to pay tax by the
recipient of supply of goods or services or both instead
of supplier of such goods or services or both under
section 9 (3) or 9 (4 ) of CGSTAct or under section 5(3)
5 (4) of the I GST act.
E. Address of delivery sec 2 (2) of CGST Act 2017
“ Address of the recipient of goods or services are
both indicated on the tax invoice issued by a registered
person for the delivery of such goods or services or
both”
Address of delivery is a relevant to determine place
of supply of goods other than imports or Exports.
It is understood that address of delivery would be a
crucial pointer to what's the location of goods at the
time of delivery to to the recipient the place of supply
of goods or services are both other than imports and
Exports could primary be the location of goods or
services or both at the time of delivery to the recipient.

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 Dr. C.B.Kuligod Degree College Mugalkhod.

F. Agent sec2 (5)

Agent means a person including a factor, broker,
commission agent, Del credere agent, and a auctioneer
or any other mercantile agent by whatever name called
who carries on the businesses of supply or recipient of
goods or services are both on behalf of another.
Agent can work purely on commission basis even E
Commerce companies like Flip kart, Amazon and Uber
may be covered in some facts situation but the
relevance of being an agent is more pronounced while
examining whether a transaction between a principal
and agent is itself a supply under para 3 schedule 1
G. Address of record Section 2 (3)
“Addresses on records means the addresses of
the recipient as available in the records of the supplier.
“
Addresses on records is a relevant to determine place
of supply in case of supplies made by a registered
person to an unregistered person in relation to services
in such cases where the place of supply has not been
specifically provided for under the law. the address on
records available in the records of the supplier would
be regarded to the place of supply.
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 Dr. C.B.Kuligod Degree College Mugalkhod.

H. Concept of business :
Any trade, commerce, manufacture, profession,
vocation or any other similar activity can be called as
Business under GST. It can either be a core or an
ancillary activity whether or not involving monetary
benefits. This article explains the definition with
examples.

Definition of Business under GST- Overview

Meaning of Furtherance of Business Under GST
Purpose of the phrase ‘in the course or furtherance of
Business’ under GST
Meaning of Business under GST explained with
illustrations
Definition of Business under GST- Overview

From the above definition it can be noted that:

Business includes any activity carried out by a person
whether or not, there is volume, frequency, continuity
or regularity of such transaction. Meaning a single
transaction of supply also is considered business Also

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 Dr. C.B.Kuligod Degree College Mugalkhod.

occasional trade or even one time trade constitutes

business.

For example: Selling of mangoes by a farmer during

summer Mr.Z find a piece of jewellery on the road and
sells it to Mr.Y for a profit (one time trade)

Meaning of Furtherance of Business Under GST

The term “business” has been defined but the phrase
“in the course or furtherance of” has not been dealt
with in any manner under the GST law. The literal
meaning of the said phrase ‘in the course of or
furtherance of ‘ is ‘during the act of or in continuation
of carrying out such act in future’ Thus, in course or
furtherance of Business means either of following:

Anything done in relation to business, while carrying

out business or simply a revenue-generating ordinary
activity of that organisation/concern.

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 Dr. C.B.Kuligod Degree College Mugalkhod.

For example: Selling scrap generated in process of

manufacturing turbines. Purchases & Sales of spare
parts by an automobile vendor. Anything done to
achieve the objectives of continuing to conduct the
same business in future.

For example: Activities done as part of CSR by a

Company. Hence the phrase also covers any supplies
made in connection with the business.

Purpose of the phrase ‘in the course or furtherance of

Business’ under GST
Any activity carried out by the entity in the course or
furtherance of business is included in the ambit of
business definition and hence will be considered as
‘supply’ under GST. Further one must check for the
taxability of supply and exemptions.

‘In the course or furtherance’ is not defined, but is

broad enough to cover any supplies made in
connection with the business. The phrase widens the
scope of Business definition to bring more activities in

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 Dr. C.B.Kuligod Degree College Mugalkhod.

its ambit. Important to note that any supplies received

by a taxable person used/ consumed in the course or
further of business is eligible for claiming input tax
credit.

The phrase further enables the entity to supply and to

receive supplies where the act is towards achieving the
goals of the business. This impacts the eligibility to
claim input tax credit. Hence, it becomes important for
an entity to understand and justify that a particular act
is done in the course and furtherance of its business
goals and intentions.

As per Sec 2(17) of CGST Act, 2017 “Business” includes:

Any trade, commerce, manufacture, profession,
vocation, adventure, wager or any other similar
activity, whether or not it is for a pecuniary benefit;
Banks providing financial services to its customers.
Company manufacturing turbines for export and local
sale.
Provision of CA services to client such as audit and
consultancy.
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An artist earning income for dance performances.

Gambling in a Derby.
Charitable hospital providing free medicines to
farmers.
Note: Pecuniary benefit means monetary benefits. It’s
a benefit or compensation that is quantifiable in
monetary terms. The primary significance of this term
is economic gain by the entity.
Any activity or transaction in connection with or
incidental or ancillary to (a) above;
Provisions of lockers for rent to customers in the Bank
premises as Banks have high security.
Turbine Manufacturing company letting out R&D
facilities to research units towards improvement of
product and expansion.
Any activity or transaction in the nature of(a) above,
whether or not there is volume, frequency, continuity
or regularity of such transaction

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 Dr. C.B.Kuligod Degree College Mugalkhod.

UNIT – 3
EXEMPTIONS FROM GST
Important two marks questions with answers.
1 what do you mean by exemption GST?
Tax is not imposed on certain good or services it is
known as exemption.Exemption is the concession
offered for not paying GST on certain good and
services.
2 what do you mean by exempt supply?
Section 2 (47) of the CGST Act, 2017 difines Exempt
Supply as “ supply of any goods or services are both
which attract Nil rate of tax are which may be wholly
exempt from Tax under section 11 or under section 6
of IGST Act and includes non taxable supply”
3 what is Technical examination?
Technical examinations means owing to the
pragmatic difficulties in collection of taxes on supplies
and Technical reason some exemptions will be given on
some classes of goods and services under GST.
4 what is merit based examination ?

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Merit based or concessional exemption is a

exemption provided to essential products like certain
food items and other basic amenities to maintain the
stability of the GST rate.
5 What is the threshold limit of exemption?
A business's entity with an annual turnover less
than rupees 20 lakh is given exemption from GST
registration but they are some special category states
where this threshold limit is rupees 10 lakh.

Important Five marks questions with answers.

1 what are the important exemption determined by
GST council on 19. 5. 2017?
Foodstuffs, medicines, medical stores of
perishable nature, clothing and blankets, imported by a
charitable organization as free gift to it from abroad
and meant for free distribution to the poor and the
needy;
Goods imported by the Red Cross Society for purposes
of relief to distressed persons;

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Drugs, medicines and medical equipments required for

the treatment of the victims of the Bhopal Gas Leak
Disaster.
Goods imported by the Cooperative for Assistance and
Relief Everywhere Incorporated (CARE) under the
Agreement between the President of India and CARE.
The imported supplies and equipment shall be re-
exported when no longer required for the purposes
and cannot be sold to a third party;
Goods imported into India for relief and rehabilitation
purposes, in accordance with the terms of any
agreement in force between the GoI and any foreign
Government. These goods cannot be sold or otherwise
disposed of in India except with the prior approval or
subject to conditions prescribed by the GoI.
Articles of food and edible material supplied as free
gifts to the GoI by the agencies approved by the UNO
or the EEC.
Articles donated to the GoI for use of defence
personnel or donated to the National Defence Fund
and dispatched by the Indian Mission in the country
where they were donated;

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 Dr. C.B.Kuligod Degree College Mugalkhod.

Goods gifted or supplied free of cost under a bilateral

agreement between the GoI and a Foreign
Government
2 who are the exempted suppliers under GST? briefly
explain.
1 Agriculturist.
An agriculturist is a person who supplies the
product out of his cultivation land. They will be a given
exemption from GSTregistration. Agro inputs like
fertilizer seeds irrigation machinery and all other
agricultural services are also exempted under GST
reason.
2 persons falling in threshold exemption limit
Are business entity within annual turnover less
than rupees 20 lakh is given exemption from GST
registration but there are some special category states
where this threshold limit is rupees 10 lakh. however
this threshold limit is increased from rupees 20 lakh to
40 lakh for exclusively supply of goods but there is no
change in supply of services with effect from 1st April
2019 notification number 10 / 2019 GST Council. the
special category states have a threshold limit of rupees

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 Dr. C.B.Kuligod Degree College Mugalkhod.

20 lakh of supply of goods and rupees 10 lakh for

supply of service.
3 persons making Nil rated or exempted supply.
These are the person who are engaged in the
business of supplying common items which are in the
exemption list of GST.
Exm : Education, Healthcare ( but not medicine), kids
coloring, drawing books, bindi, etc
4 persons making non taxable or non GST supplies.
Non taxable supplies do not come under the
preview of GST.
Exm: petroleum crude and petrol, high speed design,
natural gas, electricity, alcohol for human
consumption, aviation turbine fuel.
5 activities that are neither supply of goods nor
services.
Services by an employee, services by an Court or
Tribunal, functions and duties of MP and MLA member
of Panchayat municipality and other local authorities.
Funeral services, sale of land and building, actionable
claims.

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 Dr. C.B.Kuligod Degree College Mugalkhod.

6 persons making only supplies covered under reverse

charge.

4 state the exemptions under Financial Service.

- Banks of financial institution and various services
offered by them including interest.
- Credit society are cooperative bank and service
offered by them.
- Foreign exchange services including transaction.
- Inter Cooperative deposit term loan group
companies transactions are personal borrowing
appear in personal balance sheet.
- Agricultural loan.
- NBFCs or leasing transaction or mutual fund or
shares investment based link schemes or stock
market.
- Banker and sub broker for portfolio management.
- Risk Management Services.
- Chit Fund.
- Money lenders landers.
- Schemes like gold loan and market linked schemes.
5 list of exemted goods under GST?

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 Dr. C.B.Kuligod Degree College Mugalkhod.

 Fresh and derived vegetables including

potatoes onion sweet potatoes and various
leguminous vegetables etc.
 Live fish fresh fish birds eggs in shell fresh milk.
 Fish ginger garlic grapes melon unroasted
Coffee Beans unprocessed green tea leaves.
 Cron rice wheat hulled cereal grains.
 Human blood and various components of the
same.
 Raw silk, silkworm, jute fibres, Khadi yarn, Khadi
fabric etc.
 Slate, Slate pencil, Chalk sticks.

15 Marks questions with answers.

1 define exempt supply? explain briefly about scope
of supplier.

OUT OF SCOPE OF SUPPLIERS. (Points only)

1. persons making non taxable or non GST supplies.
2. Activities that are neither supply of goods nor
services.
3. Persons making only supplies covered under
reverse charge.
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 Dr. C.B.Kuligod Degree College Mugalkhod.

4. Unregistered businesses.
5. Deemed business Enterprises.
6. Government department and other public sector
bodies.

2 discuss the merit based examination and Technical

examinations.
Merit based examinations for concessional
examination.
Merit based or concessional exemption is the
exemption provided to essential products like certain
food items and other basical amenities to maintain the
stability of the GST rate.
Merit goods such as food items goods and services of
daily use and other basic amenities should attract
either zero or lower rate than the standard rate retail
price will be drop with the GST rate manufacturer will
get credit across the value and production chain for all
the taxes paid on inputs making production more
efficient.
Example : cereals, fish, fresh fruits, and vegetables, raw
silk, cotton used in Gandhi topi, bangles etc.
Technical exemption.
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 Dr. C.B.Kuligod Degree College Mugalkhod.

Certain supplies are exempted owing to the pragmatic

difficulties in collection of taxes.
The 3 type of technical exemptions are.

1 supplies related to immovable property.

An immovable property is an immovable object
property that can't be moved without destroying or
altering it it is fixed to the earth such as a pieces of
land or a house.
Immovable property includes premises property rights
houses land and associated goods.
As for para 5 of Scheduled ¡¡¡activities of a transaction
relation to sale of land and subject to clause B of
paragraph 5 of schedule¡¡ sale of building shall not be
treated as a supply.
So it is clear that sale of land will not attract GST and
sale of building after obtaining compensation
certificate or after its first occupation will not attract
GST.
2 Financial services.

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 Dr. C.B.Kuligod Degree College Mugalkhod.

 Banks are Financial Institutions and various

services offered by them including interest.
 Credit society are cooperative bank and services
offered by them.
 Foreign exchange services including
transactions.
 Inter corporate deposits term loan group
companies transactions or personal borrowing
appears in personal balance sheet.
 Agricultural loan
 Risk management services
 Chit fund services
 Money lenders
 Schemes like gold loan and market linked
schemes.
3 intermediate pooling services.
Like insurance and gambling.

3 list of 15 services exempted from GST.

1. Charitable and religious activities related to
service. (spiritual or yoga).
2. Agricultural related services (plantation).
3. Education services. (Mid day meals).
4. Healthcare services ( ambulance)
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 Dr. C.B.Kuligod Degree College Mugalkhod.

5. Services provided by government (speed post)

6. Services of transport of passenger (Metro)
7. Construction services( PM Ayush Yojana)
8. Goods transport services( agri produce)
9. Banking and financial services (deposits)
10. General Insurance business services (NPS)
11. Pension schemes (Atal Pension Yojana)
12. Services provided to government (sale of
sugar under PDS )
13. Performance by an artist (follk or classic)
14. Legal services (by advocate)
15. Services to UN Agencies services by UN
agencies.
OR
1. Services related to cultivation of plants and animal
husbandry except horse forming
2. Supply of labour far farms.
3. Services carried out in course of farming such as
tending, cutting,purning, drying,sorting, etc which
do not alter the essential characteristics of the
product.
4. Renting leasing of Agro machinery vacant land for
use in agricultural activities

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 Dr. C.B.Kuligod Degree College Mugalkhod.

5. Loading unloading packaging storage warehousing

of agriculture produce and fumigation of
warehouses.
6. Services related to free conditioning, PRE cooling,
reopening, waxing retail packaging.
7. Transportation of passengers public transport
metered cabs auto rickshaw se Metro tramway etc
8. Transportation of goods outside of India services
related to transport of Agricultural produce milk salt
rice etc
9. Various services provided by the Reserve Bank of
India IRDAI central government State Government
NPS etc
10. Banking services on basic Savings Bank deposit
(BSBD) account opened under the Pradhan Mantri
Jan Dhan Yojana(PMJDY)
11. Services provided by veterinary clinic with respect
to health care of animal Birds
12. Services by an artist through performance in
classical or folk art forms of music dance. Etc

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 Dr. C.B.Kuligod Degree College Mugalkhod.

UNIT- 4
REGISTRATION PROCESS IN GST
Important two marks questions with answers
1 what is GST registration/ give the meaning of
registration?
Registration means in rolling the name of the
supplier of goods or services or both with the official of
GST authorities.
2 what are the types of registration?
 compulsory registration
 Voluntary registration
 Sab motor registration by the proper officer
 Deemed registration
 Registration for casual taxable person or non
resident taxable person
 Composition dealer registration
3 define casual dealer or taxable person?
A casual taxable person or a dealer is one who has
registered businesses in some state in India but wants
to affect the supplies from some other state in which
he is not having any fixed place of business.

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 Dr. C.B.Kuligod Degree College Mugalkhod.

4 state any two merits of registration?

1. Legally recognised as a supplier of goods and
services.
2. Proper accounting of taxes paid on the input goods
and services.
5 who is blacklisted dealer?
Under GST Regime a system of GST compliance
rating is introduced where a dealer shall be given a
rating and any fall in the rating below a prescribed
level will have impact of blacklisting of a dealer.
6 what is surrender of registration?
If the registered person himself ask or applies for
the cancellation of the GST registration then it is called
surrender of registration.

Important five marks questions with answers

1 explain the advantages of registration.?
A. Input tax credit - registered person can take
input tax credit on his purchase and input
services this will eventual reduce the tax
liability and increase the profit margin.

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 Dr. C.B.Kuligod Degree College Mugalkhod.

B. Provide input tax credit to customers- in order

to extend the customer base and make a
business more competitive dealers has to
provide input tax credit to customer in a such
a scenario person has to get registration.
C. Enhance B2B transaction –In case registration
all the provisions of GST act applicable to a
registered person shall apply the registration.
register hence registered can take a input tax
credit and also provide input tax credit to
customer this will increase your business to
business.
D. It windes the scope of business - registered
person can make inter-state supply without
any restriction and shall business can also go
for selling their goods online through E-
Commerce this will within the potential
market and scope of the business.
E. Compliancerating - section 149 after CGSTAct
2017 deals with the compliance rating every
registered person will be assigned a GST
complaint score based on the records of
compliance with provides of GST Act all
registered taxpayer will be a rated according
to how well or how poorly they comply with
the GST regulations.

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 Dr. C.B.Kuligod Degree College Mugalkhod.

2 what are the documents required for the GST

registration?
 PAN card.
 Adharcard
 Busines address proof
 Bank account statement and cancelled cheque
 Incorporation certificate for the business
registration proof
 Digital signature
 Directors are promoters ID proof address proof
and photograph.
 Letter of authorisation for board resolution
from authorised signature
 Registration certificate of the company
 Memorandum of association (MOA) and articles
of ASSOCIATION (AOA).
 Copy of bank statement
 Copy of brod Resolution.
3 write the difference between casual dealer/ person
and non resident taxable supplies/person .
 casual dealer/ person
1. Occasionally undertakes transaction involving
supply of goods or services in a state or UT he has
no fixed place of business.

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 Dr. C.B.Kuligod Degree College Mugalkhod.

2. He has a PAN number.

3. He can climb ITC of all inward supplies.
4. Application form for registration is same as a
normal taxable person GSTEG-01.
5. He has to undertake transaction in the course or
furtherance of businesses.
6. He has to fill normal GSTR-1, GSTR-2, GSTR-3.
 Non resident taxable supplies/person .
1. Occasionally undertakes transaction involving
supply of goods or services but has no fixed place
of businesses residents in India.
2. He does not have a PAN number.
3. He can get ITC only in respect of import of goods
or services.
4. Different application form for registration by non
resident taxable person GSTREG-10,9.
5. There is no such requirement.
6. He has to take a separate simplified return in the
GSTR- 5.

4 explain the reason for cancellation of registration?

 Transfer of business or discontinuation of
business.
 Change in the constitution of business.

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 Dr. C.B.Kuligod Degree College Mugalkhod.

 Person no longer liable to be registered under

section 22 and 24.
 FIR registered taxable person has converted
provision of the act as maybe prescribed.
 Composition supplier has not furnished return
for three construct consecutive tax periods any
other person has not furnished return for
continuous period of 6 month.
 Non commencement of business within 6
months for a date of registration by a person
who has a registered voluntarily.
5 Sect 24 of CGST Act 2017 mandates the following
cases to obtain registration you respective of turnover
limit.
A. Person making any interstate taxable
supply.
B. Casual taxable person making taxable
supply.
C. Non resident taxable person making
taxable supply.
D. Persons who are required to pay tax
under reverse charge
E. Persons who are required to pay tax
under subsection 5 of section 9.

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 Dr. C.B.Kuligod Degree College Mugalkhod.

F. Persons who are required to deduct Tax

under section 51 feather or not
separately registered under this Act.
G.Persons who make taxable supply of
goods or services or both on behalf of
other taxable person whether as an
agent or otherwise..
6 short note on Black listing dealer :
Under GST Regime a system of GST compliance rating
is introduced where a dealer shall be given a rating and
any fall in the rating below a prescribed level will have
impact of blacklisting of a dealer

Resonance for black listing :

1. Continuous default for three months in ITC
which has been reversed.
2. Continuous default in filing returns for 3
months.
3. Continuous short reporting of sales beyond
prescribed limit for a period of 6 months.
Advantages :
 It will act as universal remedy for regulating
input tax credit for buyer.

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 Dr. C.B.Kuligod Degree College Mugalkhod.

 Afroactive by air can take decision based on the

compliance rating of his seller.
 Auto sms will be sent to all dealers who have
pre-registered this dealer as their supplier.
 Blacklisted GSTIN cannot be uploaded in
purchase details and result in denial of input tax
credit.
 Once blacklisting is lifted by 10 can avail the
climate ITC subject to this dealer uploading
sales details along with payment of tax and
interest.

Important 15 Marks questions with answers.

1 explain the registration procedure for
newapplicants?
1. Application for registration : the applicant need to
submit his PAN mobile number and email address
in part a of form GST RREG - 1 on GSTN and Portal.
2. Verification PAN mobile number and email : the
pan is then verified on GSTN portal while the
mobile number and the email address are verified
through an OTP.
3. Granting of reference number : on successful e
verification of the PAN mobile number and email
address or temporary reference number will be
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 Dr. C.B.Kuligod Degree College Mugalkhod.

granted and communicated to the applicant on the

side mobile number and email.
4. Submission of application : using the reference
number the applicant then need to file the part B
of form GSTREG –1 duly signed are verified
through electric verification code. The form can be
submitted after attaching the required documents
the authentication would be done by signature II
signature.
5. E- acknowledgement : on receipt of an application
under rule 8(4) an acknowledgement will be issued
electronically to the applicant in the form of
GSTREG – 2.
6. Approval of application : the application shall be
provided to the proper officer to examine the
application and if same are found to be in order he
will approve the grant for registration to the
applicant within 3 working days from the date of
submission of application.
7. Deficiency found in application : if the application
submitted is the found any deficient or any
additional information is required on notice will be
issued to the applicant electronically in the form of
GSTREG– 03 within 3 working days from the date
of submission of application.

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 Dr. C.B.Kuligod Degree College Mugalkhod.

8. Response of application : the application has to

respond in Palm GSTREG – 04 with the required
information within 7 working days from the date
of the recipient of from GSTREG03.
9. Rejection of application : if however the detail
submitted are not satisfactorily the registration
application will be rejected and the same will be
informed to the applicant electronically in the
form GSTREG – 05.
10. Issuance of registration certificate: if
application has approved all the required
information via form GSTREG – 01 form GSTREG–
04,and certificate in form GSTREG– 06 for the
principal place of the business as well as for every
additional place of Business will be issued.
11. The applicant who is required to deduct TDS
or collect TCS shall have a word submit an
application in Form GSTREG - 07for the purpose of
registration.

2 Explain different types of registration?

1 compulsory registration sec 24 :
Under GST it is mandatory to get registered for every
supplier who makes a taxable supply of goods or
services or both and if his aggregate turnover in a
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 Dr. C.B.Kuligod Degree College Mugalkhod.

financial year exceeds the threshold limit it is called as

compulsory registration.
Basically the supplier whose aggregate turnover in a
financial year exceeds the threshold limit he has to
compulsorily register with GST.
2 voluntary registration sec 25 (3) :
If person is not liable to be registered under section 22
or 24 of CGSTAct may get himself registered voluntarily
if aggregate turnover of any supplier of goods or
services are both in a financial year below threshold
limit the supplier can option for voluntary registration.
If supplier option for Valentine registration all
provisions of CGST act are applicable to such a
registered person and he will be treated as a normal
taxable person.
3 Suo –moto registration :
Where a person liable to be registered under GST paid
to obtain registration tax official working in a
enforcement Wings of respective state or central Tax
Department can initiate a process of generation and
almost of temporary registration is called as Suo moto
registration.

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 Dr. C.B.Kuligod Degree College Mugalkhod.

Such person shall iither.

1. Submit an application for registration in prescribed
form within 90 days from the date of grant of
temporary ID.
2. File an appeal against such a temporary
registration.
4 Deemed registration sec 26 :
The Grand of registration under the SGST act or UT GST
act is Deemed to be grant of registration under CGST
act and vice versa.
It means if the supply takes a registration under 1 act it
is deemed that the registration has also been granted
Under The Other act further rejection of application for
registration under CGST act or UT GST act is Deemed to
be rejection of application for registration under CGST
act.
5 casual dealer and non resident supplier section 27 :
Casual taxable person or a dealer is one who has a
registered business in some state in India but wants to
affect supplies from some other state in which he is
not having any fixed place of businesses such a person
need to register in the state from where he seeks to
supply as a casual taxable person.
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 Dr. C.B.Kuligod Degree College Mugalkhod.

A casual taxable person or a non resident taxable

person shall apply for registration at least 5 days prior
to the commencement of business.

Non resident taxable person is one who is a foreigner

and occasionally wants to affect taxable supplies from
any state in India and for that he needs GST
registration.
6 compounding dealer or composition scheme:
The composition scheme is an alternative method of
tax levy under GST the primary objective of
composition scheme is to simplify compliance and
reduce compliance cost for small taxpayers the person
who has option to pay tax under this scheme can pay
tax at a flat percentage of turnover every quarter
instead of paying Tax at normal rate every month
A dealer whose total turnover of goods and services in
a financial year below Rupees 1 crore ( rupees 75 lakh
for special category states) can option for
compounding scheme.

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 Dr. C.B.Kuligod Degree College Mugalkhod.

UNIT– 5
SUPPLY OF GOODS AND SERVICES UNDER GST
Important two marks questions with answers
1 define supply.
Definition of supply under section 2(92) read with
section 3 supply includes all form of supply of goods or
services such as sale transfer barter exchange licence
rental lease or disposal made or agreed to be made for
a consideration by a person in the course or
furtherness of business schedule 1 specified the
supply.
2 mention the types of supply ?
 Inter state supply
 Intra state supply
 Composite supply
 Mixed supply
3 what is the place of supply in case of import of
goods?
Location of importer in the place of supply in case
of imported goods.
4 state the transactions specified in schedule ¡¡¡?

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 Dr. C.B.Kuligod Degree College Mugalkhod.

 Services by an employee to the employer in the

course of or in relation to his employment.
 Services Bayana Court or Tribunal established
under any law for the time being in force.

IMPORTANT 15 MARKS QUESTIONS WITH ANSWERS

1 explain briefly the types of supply under GST?
1 Inter – state supply :
Supply of goods or services from one state to
another state is called as inter state supply the
GST act defines interstate supply as find the
location of the supplier and the place of the
supply of the customer are in ;
- Two different states or
- Two different union territories or
- State and union territory then it is treated as inter-
state supply
2 Intra – state supply :
Supply of goods or services or both within the same
state or union territory is called as intrastate supply as
per section 8 of I GST act 2017 supply of goods where
the location of the supplier and the place of the supply

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 Dr. C.B.Kuligod Degree College Mugalkhod.

of goods are in the same state are same union territory

shall be treated as Intra-state supply.
3 Composite supply Section 2 (30) :
Composite supply means a supply made by a taxable
person to a recipient consisting of two or more taxable
supplies of goods or services or both are any
combination therefore which are naturally bonded and
supplied in conjunction with each other in the ordinary
course of business one of which is a principal supply.
The following are the conditions to treat supply as
composite supply.
b. The supply should consist of two or more
taxable supply.
c. The supplies maybe of goods or services are
both.
d. The supplies should be naturally bounded.
e. They should be supplied in conjunction with
each other.
f. One of the supplies should be a principal
supply.
Eaample: goods are packed and transported with
insurance the supply of goods packaging materials
transport and insurance is a composite supply

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 Dr. C.B.Kuligod Degree College Mugalkhod.

insurance and transport can't be done separately the

supply of goods is Principal supply.
4 Mixed supply :
Mixed supply under GST means a combination of two
or more goods or services made together for a single
price each of the item can be supplied separately and is
not dependent on any other.
Exmpale : a birthday gift box consisting of sweets
chocolate Dairy fruits supplied in a box for a single
price this all can be supplied separately.
5 Inward supply :
As per section 267 inward supply in relation to a
person shall me in respect of goods or services are
both whether by a purchase acquisition or any other
means with or without consideration.
6 Outward supply :
What was supply in a relation to a person shall mean
supply of foods are services feather by a sale transfer
water exchange licence rental lease our disposal or any
other mean made are agreed to be made by a such a
person in the course or furtherness of business.

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 Dr. C.B.Kuligod Degree College Mugalkhod.

7 taxable supply and exempted supply :

Taxable supply means a supply of goods or services are
both which is liable to Tax under GST Act.
As per section 2 (47) of GST Act exempted supply
means supply of any goods or services are both which
attracts Nil rate of tax are which may be fully
exempted from Tax under section 11 or under section
6 of the integrated goods or services tax act and
includes non taxable supply.

2 conditions for taxability of supply of goods and

services under GST?
1 supply of goods are services : there should be supply
of goods or services supply anything other than goods
or services is not taxable under GST the securities are
not goods as well as actionable climb are included in
the definition of goods but as per scheduled lll
actionable claim other than lottery gambling betting or
neither goods nor services.
2 supply should be made for consideration :
Supply of goods or services should be made for
consideration the consideration can be in money or in

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 Dr. C.B.Kuligod Degree College Mugalkhod.

kind any subsidiary received by the central government

or state government is not considered as a
consideration as per schedule 1 of GST some activities
are treated as supply even made without
consideration.
3 supply should be made in the course or furtherance
of businesses :
Tax is leviable under GST only on commercial activities
or transactions therefore only those supplies that are
in the course or furnace of businesses qualify as a
supply under GST hence any supplies made by an
individual in his personal capacity are not taxable
under GST.
4 supply should be a taxable supply :
For leviable ability of tax the supply must be taxable.
taxable supply means any supply of goods or services
are both which is playable to Tax under the tax there
are some exemptions provided to the specified goods
or services are to a specified category of person
making supply.
5 supply should be made in India :

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 Dr. C.B.Kuligod Degree College Mugalkhod.

The place of supply should in India except for the state

of Jammu and Kashmir because the place of supply
determine whether it is an intra- state supply or inter -
state supply.

*********** ********** ********

1 what is Capital Asset? explain in detail about stock –
in- trade, personal effect, jewellery.
Capital Asset means property that is fixed asset held by
an assessee whether or not in connection with the
business or business, are movable or immovable
tangible and intangible etc are treated as Capital Asset.
Stock – in - trade :
It includes raw materials WIP consumable Store or
finished goods held for the purpose of business or
profession.
An assets deals in in vertical for carrying out of its
trading activities then such a vehicle shall be treated as
used for business purpose hence it is a Capital Asset.

Asst.Prof: Pradeep. A. Naik. From: Harugeri Mo: 8904148594

 Dr. C.B.Kuligod Degree College Mugalkhod.

Personal effect :
Personal effect means any movable assets held for
personal use by the assessee or any independent
member of his family have a were the following assets
shall not be treated as personal effect through these
assets are movable and may be held for personal use
for example artist works jewellery etc.
Jewellery :
Jewellery includes anything made of gold silver
Platinum are any precious metal or an alone containing
one or more of such a precious metal of stone.
 It need not be wearing apparel.
 Facetious or semi precious stone even set in any
furniture for otensil or other article etc shall be
treated as jewelry.
 It may be even in the form of Bullion for example
lose Diamond treated as jewellery.

Asst.Prof: Pradeep. A. Naik. From: Harugeri Mo: 8904148594

 Dr. C.B.Kuligod Degree College Mugalkhod.

Reference
1) https:/ /www.gst.gov.in/
2) https:/ /www.gstcouncil.gov.in/
3) www.gstd.ckcsons.com
4) The central goods & service tax 2017

Asst.Prof: Pradeep. A. Naik. From: Harugeri Mo: 8904148594

 Dr. C.B.Kuligod Degree College Mugalkhod.

Asst.Prof: Pradeep. A. Naik. From: Harugeri Mo: 8904148594

 Dr. C.B.Kuligod Degree College Mugalkhod.

Asst.Prof: Pradeep. A. Naik. From: Harugeri Mo: 8904148594