DEPARTMENT OF MANAGEMENT

School of Management & Business Studies

JAMIA HAMDARD

Open Book Semester End Examination May 2020

BBA {IV-SEM}

Goods And Service Tax

Code-BBA-E-02
SAIF ALI KHAN
2018-334-119
4 TH SEM
SEC-C
Answer-1

(A)
The need in India to bring GST is to strong the taxation
system and it bring uniformity, and it focus on ‘’One Nation
ONE tax’’ system. And the requirement for GST in Indian
Taxation System will also include an incentive at each stage
and will set off the rates both at state and at focal level.
Presenting GST, will build the effectiveness of tax collection,
improves the financial development and it will carry entire
country to one national market.
CGST is to controlled by the central government and SGST is
to be conttrolled by the State government. CGST has remove
different central Taxes talked about in the abovementioned.
SGST remove all Taxes which are subsumed in State Level
Taxes. Available occasion under GST will be a supply of
products or Governmentor both. GST depends on goal
standard where as past available framework depended on
source guideline with the exception of VAT

The Taxes which have been subsumed in GST are as follows;

 Central Taxes:
Central Excise duty,Additional excise duty,another super
excise duty,(on textile super tax)
Additional custom duty,excise duty on medical &
turisum
Sur charge ans cess.

 State Taxes:
State vat,central sales tax,entertainment & ammusment
tax,luxury tax,taxes on advertisement, taxes on lottery and
purchase tax.

(B)
A product needs to experience various stages before it
arrives at the end customer, and there are a several taxes
appropriate all through this procedure. Be that as it may,
this circumstance will change in the GST system. Here's an
outline to see how:
Stage 1: Manufacturing take cloths fabricating for example
and 18% as the GST relevant. The maker purchases crude
material worth INR 500 that is comprehensive of the GST
of INR 50 (18% of 500). He at that point includes his own
estimation of INR 50 to the materials during the
assembling procedure. This brings the gross estimation of
the item to INR 550. Presently, the all out expense sum on
the yield of the attire comes to INR 55 (18% of 550) In the
present assessment framework, the maker would be
required to pay a duty of INR 55; nonetheless, under GST
he can set a portion of his assessment off as he has just
paid it during buying the crude materials. Hence, the last
GST that the producer will bring about will be of INR 5
(absolute expense sum till now short the duty he has just
paid) for example INR 5 (55-50)
Stage 2: Wholesale
In this, the attire is passed from the producer to the
distributer at a gross estimation of INR 550 that is
comprehensive of the GST of INR 55 (18% of 550). The
distributer at that point includes his worth (his edge) of
INR 50 creation the all out INR 600 (550 + 50). This brings
the absolute assessment sum on the last to INR 60 (18% of
600). Like the maker, the distributer also can set off this
duty sum with the expense that he has just paid for during
buying the products from the producer. In this manner,
the last GST for the distributer would be INR 5 (60 – 55)
Stage 3: Retailer
In this last advance, the retailer purchases the attire from
the distributer at a gross estimation of INR 600 that is
comprehensive of the GST of INR 60 (18% of 600). He at
that point includes his worth or edge of INR 50 creation
the all out expense of the products INR 650. The GST
appropriate here is INR 65 (18% of 650), however since the
retailer has just made good on a duty during buying the
goods, he can set it off. In this way, the last GST occurrence
for the retailer would be INR 5 (65 – 60). Toward the end,
 since the retailer will sell the item at INR 650, the GST paid
by the client would be INR 65(18% of 650) as it were. This
number would have been a lot higher in our present
expense structure. In this manner GST can be a success win
situation that will profit the whole worth chain and make it
simpler for the two organizations and buyers. To find out
about GST, check our different articles in the arrangement.

Answer-2

(A)
Yes the import of Consultancy services will be treated as
supply.
According to Sec 7(1) (b) of CGST Act: Supply
incorporates Import of Services for a thought
whether in the course or promotion of business.
Likewise according to point 4 of Schedule 1 of Sec
7 (1)(c) of CGST Act: Supply regardless of whether
made without thought incorporates Import of
Governmentby an available individual from a
related individual or from any of his different
foundations outside India, in the course or
facilitation of business.
The word 'available'. has been unnoticed vise
CGST (Amendment) Act, 2018 with effect from 1-
2-2019. Along this lines, import by any individual
from a related individual outside India will be
'import', yet it charge to be in the course or
advancement of business. (point 4 of Schedule 1
of Sec 7 (1)(c) of CGST Act).

(B) CGST is to govern by the central government and

SGST is to be administered by State government.
CGST has replaced various central Taxes discussed in
the above. SGST replaced all Taxes which are classify
in State Level Taxes.
Taxable event under GST shall be a supply of goods or
services or both.
GST is based on destination principle where as previous
taxable system was based on origin principle except
VAT.
Example-1.) Any tax liability obtained under SGST can
be set off against SGST or IGST input tax credit only.
An example for CGST and SGST:
Let’s suppose Rajesh is a dealer in Maharashtra who
sold goods to Anand in Maharashtra worth Rs. 10,000.
The GST rate is 18% comprising of CGST rate of 9%
and SGST rate of 9%. In such case, the dealer collects
Rs. 1800 of which Rs. 900 will go to the Central
Government and Rs. 900 will go to the Maharashtra
Governme
Answer-3
(A)
Normally GST bycott is related in three cases – special case
permitted to associations/individuals, prohibition allow to
product and GST rejection on organizations. Associations and
individuals are discharged from GST if their yearly absolute
turnover isn't actually a specific in total amount. At the hour
of GST utilization in July 2017, associations/individuals with
yearly complete turnover of not as much as Rs. 20 lakhs were
allowed to GST special case. A lower limit of Rs. 10 lakhs was
accourdingly for incline states and northeastern states, for
example, Uttarakhand, Himachal Pradesh, Tripura, Sikkim,
Nagaland, Mizoram, Meghalaya Manipur, Assam, Jammu and
Kashmir similarly as Arunachal Pradesh. As indicated by
decision of the 32nd GST Council meeting held tight tenth
January 2019, beyond what many would be consider possible
for associations related with the able of product has been
duplicated to Rs. 40 lakhs, during for incling and northeastern
states, the new GST rejection limit for stock suppliers is Rs.
20 lakhs. The GST exemption for associations busy with
effortlessly of organizations has remained at Rs. 10 lakh for
rough and northeastern states/20 lakhs for each and every
other state.
GST Exemption Based on Aggregate Turnover. The GST Act
describes "absolute turnover" as the all out estimation of
each and every accessible effortlessly (notwithstanding
charges paid on transform charge part), avoided supplies,
between state deftly of product similarly as all items and
adventures conveyed. There are in any case a few amazing
shirking during processing the all out turnover of
associations. The going with payouts are maintained a
strategic distance from figuring of all out turnover: Any IGST,
CGST or SGST paid by the money related expert. Estimation
of inside provisions of items and endeavors Obligations
payable dependent on reverse charge segment. Estimation of
non-accessible supplies of items/organizations.
GST Exemption for Goods:
Different items are not accessible under GST and the
summary of product qualified for GST avoidance is in danger
to change discontinuously. Regardless, the clarifications
behind avoidance of a respectable under GST rules may
change dependent upon whether the extraordinary is zero
assessed, GST rejected, nil evaluated or considered as a non-
GST neatly. In an a lot of cases, regular items, for example,
rough silk, etc are GST prohibited at any rate once dealt with,
stock, for example, readymade clothing delivered utilizing silk
are accessible. Avoidance from GST anyway announced by
the governing body is generally as per recommendations
made by the GST chamber.

GST Exempt Supplies :

Smoothly of a conventional may not pull in GST in the going
with cases: The extraordinary is non-accessible under GST
rules. This applies to items, for example, oil and alcohol for
human usage which are not accessible under the GST Act.
This can change soon. The incredible is a bit of the zero
assessed list for example the cost rate for the extraordinary
has been fixed at 0%. Models join new milk, new vegetables,
etc.
The smoothly of the incredible has been declared GST
exculpated through a notice from the organization. For
example, admissions and nimbly of product made to a SEZ
(Special Economic Zone) or SEZ engineer. In the above cases,
the nimbly of these items pull in zero GST, nevertheless, no
data charge credit advantage is open to GST enrolled
individuals/associations for these product.

Clarifications behind GST Exemption on Goods:

Government may decide to complete GST rejection on items
in the going with cases: The special case is recommended by
the GST board Such special case from GST is respected to be
without trying to hide interest. In brilliant conditions,
government may surrender rejection through outstanding
solicitation. Special case on deftly of express items is done
through an official notification
Sorts of GST Exemption:
The GST Act decides three sorts of rejection from GST for
stock: Incomparable rejection: Supply of the specific
extraordinary is GST prohibited paying little heed to who the
supplier/beneficiary is and whether the incredible is given
intrastate/interstate. Unexpected rejection: Supply of such
items is GST cleared ward upon some specific terms and
conditions decided in the GST Act, modification or cautioning.
It is wonderful that SGST or CGST special case doesn't
expeditiously give IGST rejection to the effortlessly of a
specific average aside from if regardless showed by GST Act,
change or suitable notification.
Occasions of GST Exempt Goods: Coming up next are some
key occasions of GST Exempt Goods*: New and dried
vegetables including potatoes, onions, sweet potatoes and
distinctive leguminous vegetables, etc. Live fish, new fish,
winged animal's eggs in shell, new milk, etc.

New ginger, garlic, grapes, melon, unroasted coffee beans,

characteristic green tea leaves, etc.
Corn, rice, wheat, maize, soyabean, hulled oat grains, etc not
put into checked compartments.
Human blood and various sections of the proportionate.
Rough silk, silk worm, coccon, jute fibers (unspun), khadi
yarn, khadi surface, etc. Records, record pencils, chalk sticks,
parts used to manufacture versatile hearing aides, handloom,
etc.
*The above overview is trademark and there are significantly
more product that meet all necessities for nil GST. The
material summary is as indicated by GST rates directly as of
the first of January 2019. Use Paisabazaar's useful GST rate
pioneer gadget for the all out once-over of zero GST stock.

GST Exempt Services:

Different organizations additionally are avoided from GST. It
is eye catching that the GST special case for associations
drew in with the deftly of organizations is Rs. 10 lakh yearly
turnover for incline/northeastern states and Rs. 20 lakh for
various states. Coming up next is a short summary of
organizations that meet all prerequisites for avoidance under
the GST Act and are requested under the heading "reinforce
organizations to agribusiness, officer administration,
calculating and animal cultivating":

Organizations related to advancement of plants and creature

development (beside horse developing)
Effortlessly of work for farms :
Organizations finished over the range of developing, for
example, tending, cutting, pruning, sun drying, filtering,
masterminding, etc which don't alter the fundamental
characteristics of the thing:
Renting/leasing of agro equipment/void land for use in
agrarian activities Stacking, discharging, squeezing, storing,
warehousing of plant produce and fumigation of stockrooms.
Organizations related to pre-forming/precooling, developing,
waxing, retail squeezing Some various organizations that
meet all necessities for GST special case under existing GST
Rules are*:
Transportation of voyagers open vehicle/metered taxis/auto
rickshaws/metro/tramway, etc. Transportation of product
outside of India, organizations related to move of green
produce, milk, salt, rice, etc. Various Services gave by the
Reserve Bank of India, IRDAI, central government, state
government, NPS, etc. Banking organizations on Basic Saving
Bank Deposit (BSBD) account opened under the Pradhan
Mantri Jan Dhan Yojana (PMJDY). Organizations gave by
veterinary focus respect to therapeutic Governmentof
animals/flying animals. Organizations by an expert through
execution in customary or society.

(B)

Mixed supply implies at least two individual supplies of

merchandise or benefits or any mix there made related
to one another by an available individual at a solitary
cost where such flexibly doesn't amount of a composite
easily.
Essential elements of mixed supply:-

- it is a supply made by a taxable person.

- the composite and mixed supply comes under section
8 of CGST 2017.
The government of India separately made this section to
stress out . The nature of the supplier in two categories
1 - composite supply section 2 (30) of CGST Act 2017.
2- mixed supply comes under section 2 (74) of CGST
Act 2017
Answer-4

(A)
Time of supply in case of supply of vouchers

A voucher has been defined in the CGST Act as an tool where

there is a guarantee to acknowledge it as thought for a
supply of goods or benefits or both, and where the products
or Governmentor both to be provided or the personalities for
their potential providers are either shown on the tool itself or
in related documentation, including the terms and states of
utilization of such tool. Vouchers are normally utilized for
exchange in the Indian economy. A businessperson may give
vouchers for a particular flexibly for example flexibly which is
recognizable at the hour of issuance of voucher. In exchange
speech, these are known as single reason vouchers. For
example, vouchers for pressure cookers or TV or for spa or
hair style. Essentially a voucher can be a universally useful
voucher which can be utilized for various purposes. For
example a Rs. 1000/ - voucher gave by Shopper's Stop store
can be utilized for purchasing any item or administration at
any Shopper's Stop store. The hour of supply is diverse if
there should be an occurrence of single reason voucher and
on account of universally useful voucher.
Time of supply on account of single reason voucher for
example,situation where flexibly is marked at the hour of
issuance of voucher is the date of issue of voucher. Be that as
it may, in every other example of flexibly of vouchers, the
hour of supply is the date of recovery of voucher.

(B)

 "Input Tax" is relation to a taxable person, implies

the Goods and Services Tax charged on him for any
flexibly of Goods or potentially to him, which are
utilized or are proposed to be utilized, for the
advancement of his business. Information Tax
Credit under GST – Conditions To Claim ITC must be
satisfied and shapes one of the most basic action
for each business to settle its duty obligation.

ITC is the foundation of GST and a significant matter of

worry for the enlisted people. The conditions for
qualification to ITC and qualified ITC have been
recommended which is pretty much in accordance with
pre-GST system. These standards are additionally very
specific and tough in its methodology.

 Input Tax Credit under GST –

Conditions To Claim
  An enrolled individual will be qualified to guarantee
Input Tax Credit (ITC) on the fullfilment of the
accompanying conditions:

1.Ownership of a duty receipt or charge note or record

proving instalment.

2. Receipt of products as well as administrations

3. Products conveyed by provider to other individual on

the bearing of an enlisted individual against a record of
move of title of goods
4. Outfitting of an arrival

5. Where products are gotten in parcels or portions ITC will

be permitted to be benefited when the last part or portion is
gotten

6. Disappointment of the provider towards flexibly of goods

as well as administrations inside 180 days from the date of
receipt, ITC as of now guaranteed by beneficiary will be
added to yield charge obligation and enthusiasm to paid on
such duty included. On installment to provider, ITC will be
again permitted to be guaranteed

7. No ITC will be permitted if devaluation has been

guaranteed on the expense segment of a capital decent.

 Utilization of Tax Input Credit:

In GST we have three types of taxes CGST, IGST,

and SGST/UTGST.
For the inter-state supply of goods/ services, IGST is
charged.
and for the intra-state supply of goods/services
CGST and SGST/UTGST are charged.

While making installment for the above charges,

input charge credit will be permitted in the
accompanying way
CREDIT 1st to be BALANCE IF
utilized for ANY
payment of
CGST CGST IGST
IGST IGST CGST thn
SGST/UTGST
SGST/UTGST SGST/UTGST IGST
Answer-5

(A)

Issue of Credit and Debit Notes (Section 34 of the CGST Act,

2017) :-

(1) Issue of credit note (Section 34(1) and (2)] -

The enrolled individual who has provided goods or
administrations or both may give a Credit Note containing
such points of interest as might be endorsed to the
beneficiary, in following circumstance:
(I) where the available worth or assessment charged in that
expense receipt is found to surpass the available worth or
duty payable in regard of such flexibly, or
(ii) where the products provided are returned by the
beneficiary, or (ili) where goods or benefits or both provided
are seen as lacking.
More, according to segment 34(2), be, will announce the
subtleties of such credit note in the arrival for the month
during which such credit note has been given however not
later than
(I) September following the finish of the monetary year in
which such gracefully was made. or then again
(ii) the date of outfitting of the pertinent yearly return,
whichever is prior. what's more, the expense risk will be
balanced in such way as might be recommended:
Given that no decrease in yield charge obligation of the
provider will be allowed, if the rate of assessment and
enthusiasm on such gracefully has been given to some other
individual.

(2) Issue of charge note [Section 34(3) and (4) ]

The enrolled individual, who has provided such goods or
benefits or both, will issue to the beneficiary a charge note
containing such specifics as might be endorsed -
Where an assessment receipt has been given for flexibly of
any goods or benefits or both and the available worth or
expense charged in that duty receipt is seen as not exactly
the available worth or assessment payable in regard of such
gracefully.
More, he will pronounce the subtleties of such charge more
in the arrival for the non during which such debil nole has
been given and the duty risk will be balanced such way as
might be endorsed.

(B)
Customs ocean port and costal ports [Section 2(12)]
For water borne products there are ocean ports called
customs ports and costal ports. Customs Ports are significant
ports where both national and global exchange happens.
Other than the abovementioned, augmentations to the
ocean ports are called ICD(inland holder terminal) and CFS
( compartment cargo station). Leeway of goods can happen
at ICD and CFS moreover. This is to encourage freedom and
straightforwardness out the traffic clog at significant ocean
ports.

The significant distinction among ICDs and CFS are as per the
following:

ICD CFS
These are independent and called deemed port. These are
extension of and attached to an entry port or ICD.
These are also called dry port as these are located away from
the sea ports to facilitate clearance at a place nearer to the
importer and exporter. These are located somewhere around
the port or ICDs to reduce congestion at the ports/ICDs.
CFS is a place where containers are stuffed, unstuffed and
aggregation/ segregation of Cargo takes place. In costal ports
just neighborhood exchange happens. Nearby exchange
includes developments of goods starting with one port in
India then onto the next port in India.
(C)

ICW: Indian Custom Waters

ITW: India Terriotory Waters

EEZ: Exuclusive Economic Zone

1 Nauticle Mile: 1.853 kms

ITW+CZ
CZ= Contiguous Zone meant for security of India
NM= Nautical Mile