Business Taxation-2

Module – 2
Time and Value of Supply and Registration of GST
Structure:
2.1 Introduction
2.2 Time of supply of goods
2.3 Place of Supply of Goods
2.4 Transaction Value
2.5 Registration under GST
2.6 Procedure for registration under GST
2.7 Other aspects of registration
2.8 Person liable to obtain registration
2.9 Person not liable for registration
2.10 Compulsory registration
2.11 Compulsory registration in certain cases
2.12 Deemed registration
2.13 Special provision to casual taxable person and non-resident taxable person
2.14 Transfer of Business and Registration
2.15 Terminal Questions
2.1 Introduction:
Supply has been understood to hold the key to the incidence of GST, but it is the ‘time of supply’ that
dictates the occasion when this incidence will come to rest. Taxable supply has been defined to mean
a supply of goods and/or services which is chargeable to tax under this Act. It is interesting to note
the use of the expression ‘chargeable to tax’ as opposed to ‘leviable to tax’. It has been held that
‘chargeable to tax’ encompasses not only the incidence of tax but also its assessment.
The opening words in section 12(1) are very interesting and forceful as it is here that the liability to
pay GST arises. The subject matter of levy – goods or services – becomes encumbered with the tax
upon occurrence of the taxable event – supply. But the tax levied in terms of section 9, comes to reside
only at the time determined by section 12 and 13. Accordingly, these sections play a stellar role in the
imposition of GST.
The provisions state that the time of supply “shall be” and as such is a “must” to be examined closely.
It signifies that “time of supply” is not a fact to be inquired by the taxable person but one that is to be
admitted as the time of supply appointed by the will of legislature as declared in the section. In order
to not allow any opportunity for a suggestion by the taxable person or even the tax administration as
to any alternative to what could be the time of supply, the legislature retains for itself the exclusive
authority to appoint the time of supply by employing the words “shall be”. Therefore, the time of
supply is what is stated in the law to be the time of supply and nothing else.
Invoice is commonly understood as ‘proof of sale’ but this common understanding is far from the
truth. Invoice is a document recording the terms of an arrangement already entered - the underlying
arrangement. Lease agreement, as an analogy, is a document in present evidencing the agreement
reached between two parties is for the lease of property for certain duration in exchange for a certain
Private circulation only 28
consideration. A lease arrangement verbally entered into previously when documented by an
indenture or deed does not bring into existence the lease when the document is prepared. Verbal
arrangements are no less agreements in the eyes of law. Similarly, an invoice does not bring into
existence a sale agreement but merely records the terms of whatever arrangement that may have
been entered into by the parties, involving the subject matter. Tax laws require the preparation of an
invoice not as if the absence of an invoice defeats the levy but prescribes an unambiguous occasion
when the tax may become recoverable with a proper record of the terms of the underlying
arrangement. Therefore, an invoice can evidence not only a sale but every other form of supply such
as transfer, barter, exchange, license, rental, lease or disposal.
2.2 Time of supply of goods:
Time of supply means the point in time when goods/services are considered supplied’. When
the seller knows the ‘time’, it helps him identify due date for payment of taxes.
CGST/SGST or IGST must be paid at the time of supply. Goods and services have a separate basis to
identify their time of supply.
Time of Supply of Goods
Time of supply of goods is earliest of:
1. Date of issue of invoice
2. Last date on which invoice should have been issued
3. Date of receipt of advance/ payment
CGST/SGST or IGST must be paid at the time of supply. Goods and services have a separate basis to
identify their time of supply.
Example:
Mr. X sold goods to Mr. Y worth Rs 1,00,000. The invoice was issued on 15th January. The payment
was received on 31st January. The goods were supplied on 20th January.
*Note: GST is not applicable to advances under GST. GST in Advance is payable at the time of issue of
the invoice. Notification No. 66/2017 – Central Tax issued on 15.11.2017
Let us analyze and arrive at the time of supply in this case.
Time of supply is earliest of –
1. Date of issue of invoice = 15th January
2. Last date on which invoice should have been issued = 20th January
Thus the time of supply is 15th January.
Time of Supply for Services
Time of supply of services is earliest of:
1. Date of issue of invoice
2. Date of receipt of advance/ payment.
3. Date of provision of services (if invoice is not issued within prescribed period)
Example:
Mr. A provides services worth Rs 20000 to Mr. B on 1st January. The invoice was issued on 20th
January and the payment for the same was received on 1st February.
In the present case, we need to 1st check if the invoice was issued within the prescribed time. The
prescribed time is 30 days from the date of supply i.e. 31st January. The invoice was issued on 20th
January. This means that the invoice was issued within a prescribed time limit.
The time of supply will be earliest of –
1. Date of issue of invoice = 20th January
2. Date of payment = 1st February
This means that the time of supply of services will be 20th January.
Place of supply
It is very important to understand the term ‘place of supply’ for determining the right tax to be
charged on the invoice.
Here is an example:
Location of Service Receiver Place of supply Nature of Supply GST Applicable
Maharashtra Maharashtra Intra-state CGST + SGST
Maharashtra Kerala Inter-state IGST
2.3 Place of Supply of Goods:
Usually, in case of goods, the place of supply is where the goods are delivered.
So, the place of supply of goods is the place where the ownership of goods changes.
What if there is no movement of goods. In this case, the place of supply is the location of goods at the
time of delivery to the recipient.
For example: In case of sales in a supermarket, the place of supply is the supermarket itself.
Place of supply in cases where goods that are assembled and installed will be the location where the
installation is done.
For example, A supplier located in Kolkata supplies machinery to the recipient in Delhi. The
machinery is installed in the factory of the recipient in Kanpur. In this case, the place of supply of
machinery will be Kanpur.
B. Place of Supply for Services
Generally, the place of supply of services is the location of the service recipient.
In cases where the services are provided to an unregistered dealer and their location is not available
the location of service provider will be the place of provision of service.
Special provisions have been made to determine the place of supply for the following services:
• Services related to immovable property
• Restaurant services
• Admission to events
• Transportation of goods and passengers
• Telecom services
• Banking, Financial and Insurance services.
In case of services related to immovable property, the location of the property is the place of provision
of services.
Example 1:
Mr. Anil from Delhi provides interior designing services to Mr. Ajay(Mumbai). The property is located
in Ooty(Tamil Nadu).
In this case, place of supply will be the location of the immovable property i.e. Ooty, Tamil Nadu.
Example 2:
A registered taxpayer offers passenger transport services from Bangalore to Hampi. The passengers
do not have GST registration. What will be the place of supply in this case?
The place of supply is the place from where the departure takes place i.e. Bangalore in this case.
2.4 Transaction Value:
• Value of supply of goods and / or services on which CGST/SGST is to be discharged shall be the
‘Transaction Value’, where
• Supplier and recipient of supply are unrelated
• Price is actually paid / payable – AND price is the sole consideration for the supply
Transaction Value INCLUDES:

• Amounts charged by supplier to recipient in respect of any taxes, duties, cesses, fees and
charges levied under any statute, other than taxes paid under GST regime;
• Amount incurred by Recipient which is liable to be paid by the Supplier;
• Charges by Supplier to Recipient being:
➢ Incidental expenses (e.g: packing, commission)
➢ Charges for anything done by the Supplier at the time or before the supply, in respect
thereof
➢ Interest/ late fee/ penalty for delayed payment of consideration
➢ Subsidies directly linked to price – for supplier receiving the subsidy (excluding
Central and State Govt subsidies; i.e., Government subsidies will not be included in
transaction value)
Transaction Value EXCLUDES discount:

• Before / at the time of supply
➢ Single condition: Such discount is duly recorded in the invoice
• After the supply: Cumulative conditions:
➢ Agreement establishing discount entered into before / at the time of supply
➢ Discount specifically linked to relevant invoices
➢ ITC reversed by the recipient to the extent of discount
1. Determine the time of supply of goods in each of following independent cases in accordance with
provisions of section 12of the CGST Act, 2017 in case supply involves movement of goods.
Sl.no Date of Date of invoice Date when goods made Date of receipt
removal available to recipient of payment
1 01-07-2017 02-07-2017 03-07-2017 15-05-2017
2 03-07-2017 01-07-2017 04-04-2017 25-08-2017
3 04-08-2017 04-08-2017 06-08-2017 01-07-2017
Solution:
Time of supply of goods in each of the above cases has been given in following table:
Sl.no Time of supply Reason

1 01-07-2017 Since, invoice is not issued on or before the date of removal of
goods and payment is received after the date of removal, hence
time of supply is date of removal of goods.
2 01-07-2017 TOS is date of issuance of invoice since invoice is issued prior
to date of removal of goods and payment is received after the
date of invoice
3 01-07-2017 TOS is date of receipt of payment since invoice is issued after
the date of receipt of payment.
2. Determine the time of supply of services in each of following independent cases in accordance
with provisions of CGST Act, 2017:
Sl.no Date of actual provision of Time (Date) of Date of receipt of
service invoice, bill challan payment
as the case may be
1 10-11-2017 30-11-2017 15-12-2017
2 10-11-2017 30-11-2017 15-11-2017
3 10-11-2017 30-11-2017 15-11-2017(part) and
10-10-2017 (remaining)
4 10-11-2017 30-11-2017 06-11-2017(part)And
09-11-2017(remaining)
Solution:
Time of supply in each of the above cases has been given in following table-
Sl.no Time of supply Reason
1 30-11-2017 Invoice is issued within 30 days and before receipt of
payment.
2 15-11-2017 Invoice is issued within 30 days but payment received before

invoice
3 15-11-2017 and Invoice is issued within 30 days. Part payment received

30-11-2017 for before invoice and remaining payment after invoice.
respective Amount
4 06-11-2017 and Invoice is issued within 30 days. However, the for advance has
09-11-2017 the been received in two instalments before the date of
respective Amount completion of service. Thus, date of receipt of each such
advance shall be treated as TOS/
2.5 Registration under GST:
Section 22 provides for registration of every supplier effecting the taxable supplies. Registration of a
business with the tax authorities implies obtaining a unique identification code from the concerned
tax authorities so that all the operations of, and data relating to the business can be agglomerated and
correlated. In any tax system, this is the most fundamental requirement for identification of the

business for tax purposes and for having any compliance verification mechanism. A registration from
the concerned tax authorities will confer among others the following advantages to the registrant.
a) legally recognized as a supplier of goods and/or services;
b) proper accounting of taxes paid on the input goods and / or services;
c) utilization of input taxes for payment of GST due on supply of goods and / or services or both;
d) Pass on the credit of the taxes paid on the goods and / or services supplied to purchasers or
recipients.
2.6 Procedure for registration under GST:
The procedure for registration under GST is dealt in provisions of section 25 of the CGST Act, 2017.
As per the said section every person liable to be registered shall apply for registration in every state
in which he is liable within 30 days from the date he becomes liable to register. In case of casual and
non-resident taxable person, the registration is required to be applied at least 5 days prior to
commencement of business. Before applying for the registration, the assessee should have valid PAN,
mobile number and e-mail id.
(a) The Application shall be submitted in the following manner:
(i) The said details are required to be declared in the part A of FORM GST REG-01 on common
portal. The said details would get validated as follows:
(a) The PAN will get validated by the database maintained by the CBDT;
(b) Mobile number and e-mail id would get validated by way of OTPs.
(ii) On successful verification a temporary reference number shall be generated and
communicated to assessee by way of message to mobile number and also to e-mail
provided in PART A of REG-01.
(iii) The assessee is required to fill the part B of the REG-01 by using the reference number
provided by the common portal and submit the same electronically.
(iv) On receipt of the application acknowledgement shall be issued electronically in REG-02.
(v) Person applying for registration as a casual dealer or non-resident taxable person, the
temporary reference number would be provided for making payment of advance deposit
of estimated tax.
(b) The application submitted in REG-01 would be verified by the proper officer and if the application
found to be in order, then the registration would be approved and granted within 3 working days
from the date of submission of application in form REG-06.
(c) If the application is not in order, then the proper officer within 3 working days is required to be
issue REG-03 requesting for such further information or documents required.
(d) On receipt of such notice, the assessee is required to provide the clarification, information or
document within 7 working days in REG-04.
(e) On receipt of such additional information, if the proper officer is satisfied is required to grant the
registration certification within 7 working days.
(f) If assessee fails to provide the documents within 7 working days or proper officer is not satisfied
with the data given by the assessed. The proper officer can reject the application by recording the
reason in writing in form REG-05.
(g) In case proper officer does not seek additional information and not even granted the certification
of registration within 3/7 working days, then the registration is deemed to be approved.
(h) The effective date of the registration would be as follows:
i. Date when the person becomes liable to registration - Where application is made within 30
days from the date he becomes liable to register.
ii. Date of grant of registration – Where application is not submitted within 30 days from
becoming liable to register.
2.7 Other aspects of registration:
1. In case assessed having multiple business verticals within a state, as option to obtain separate
registration for each such business verticals. However if the assessed opts to pay the tax under
composition scheme, then each vertical should be under the same scheme or visa – versa.
2. If the proper officer during the investigation, audit etc., finds that assessed is failed to register
under GST, the issue such order for obtaining registration under GST. In this case, the assessed has
the option to obtain registration as per the above procedure or challenge the order passed by the
proper officer.
3. The assessed after obtaining registration should display the registration certificate at his principal
place of business and at additional place of business.
4. Even the GSTIN number need to display on the name board exhibited at the entry of principal and
additional place of business.
5. In case of any amendment the taxable person is required to furnish the same in REG-14.
6. The taxable person can apply for cancellation on closure of business or any other situation as
prescribed or proper officer on his own issue cancellation order in certain situation.
7. If the proper officer issue cancellation order, the taxable person has the option to for revocation
of such order within 30 days of time.
The registration procedure would be same for all the assessees as explained above, however use of
forms would be different. The same is provided in the below taxable:
S. Form
No. Particulars prescribed Remarks
1. Application for GST Reg-01 Applicable for persons other

registration than non-resident taxable
person, special entities to whom
UIN is issued and persons liable
to deduct / collect tax u/s 51&
52.
2. Acknowledgment of GST Reg-02
submission of
application for
registration
3. Any clarification GST Reg-03 Within 3 working days of
/information required submission of application either:
by proper officer
4. Furnishing by assessed GST Reg-04 Provide within 7 common
of the information, working days from date of
clarification or receipt of GST Reg-03.
document sought for
above.
5. Reject if proper officer GST Reg-05 Within 7 common working days
not satisfied with of receipt of information,
information,
clarification or clarification or document in GST
document Reg-04
6. Approve grant of GST Reg-06 Within
registration a. 3 common working days of
submission of application
where no further
information, clarification or
document is required, or
b. 7 common working days of
receipt of information,
clarification or document
7. Application for GST Reg-07 Grant of registration in Form
registration by person Reg-06 mentioned above in S.
who is required to No. 6 within 3 common working
deduct / collect tax at days.
source u/s 51 & 52
respectively
8. Grant of registration to GST Reg-09 At least 5 days prior to the
non-resident taxable commencement
person
9. Application for GST Reg-10
registration of person
supplying online
information and data
base access or retrieval
services from a place
outside India to a
person in India, other
than a registered
person
10. Application for GST Reg-11 Shall be acknowledged only on
extension of payment of amount specified
registration period by
casual / non-resident
taxable person
11. Issue of order of Grant GST Reg-12 within 90days from the date of
of Temporary the grant of such registration file
Registration/ Suo Moto an application for registration
Registration
12. Application/Form for GST Reg-13 Assign UIN in Form Reg-06
grant of Unique Identity mentioned above in S. No. 6
Number (UIN) to UN within 3 common working days.
Bodies/
Embassies /others
AMENDMENT TO REGISTRATION
13. Application for GST Reg-14 Within 15 days of such change
Amendment in apply for amendment of legal

Registration Particulars name of business, PAN, address
(For all types of of principal / additional place of
registered persons) business, addition, deletion,
retirement of partners etc., To
also give details of closing stock
and liability thereon.
Person who has applied for
registration voluntarily cannot
apply before completion of 1
year
14. Order of Amendment GST Reg-15
CANCELLATION OF REGISTRATION
15. Application for GST Reg-16 To be passed within 30 days
Cancellation of from application date/date of
Registration reply of notice to show cause.
16. Proper officer on his GST Reg-17 To be filed within 7 working
own for cancellation days from the date of such
issue a Show Cause notice
Notice for Cancellation
of Registration
17. Show Cause Notice for GST Reg-17 To be filed within 7 working
Cancellation of days from the date of such
Registration notice
18. Reply to the Show GST Reg-18 To be submitted within the
Cause Notice issued for prescribed time.
Cancellation
19. Order for Cancellation GST Reg-19 Within 30 days of receipt of
of Registration application
20. Order for dropping the GST REG-
proceedings for 20
cancellation of
registration
REVOCATION OF CANCELLATION
21. Application for GST Reg-21 To be applied within 30 days
Revocation of from the date of service of the
Cancellation of order of cancellation of
Registration registration.
22. Order for revocation of GST Reg-22 To be passed within 30 days of
cancellation of receipt of application for
registration. revocation.
Applicant to follow procedure
stated for GST Reg-03 & GST
Reg-04
23. Show Cause Notice for GST Reg-23
rejection of application
for revocation of
cancellation
of registration
24. Reply to the notice for GST Reg-24 Reply within 7 working days
rejection of application
for revocation of
cancellation of
registration
2.8 Person liable to obtain registration:
The Sections 22 to 25 specifies the various persons who are liable to registration the procedures
obtaining registration is specified in the rule. The registration rules describe the procedures which
will be followed for granting of registration, format of application and nature of document required
to be attached with application. This provision made in registration rule are very helpful for obtaining
registration or for conversion of provisional registration into final registration the provisions given
in sections 22 to 25 are discussed in the following
1. Aggregate turnover
2. Transfer due to succession, arrangement for amalgamation etc.
3. Distinct person
4. Specified person to obtain registration.
(i) Aggregate turnover of ` 20 Lakhs or 10 Lakhs (U/S 22)

When aggregate turnover in the financial year of taxable supply of goods or services exceeds 20 Lakhs
it is required to obtain registration. However the limit is reduced to 10 Lakhs if the person is located
in a special category states. i.e North eastern states (Assam, Arunachal Pradesh, Jammu And Kashmir,
Sikkim, Manipur, Tripura, Nagaland, Meghalaya, Mizoram, Himachal Pradesh, and Uttarakhand)
“Aggregate “turnover means the aggregate value of all taxable supplies (excluding the value of
inwards supplies on which tax is payable by a person on reverse charge basis), exempt supplies,
export supplies, export of goods or services or both and inter –state supplies of persons having the
same permanent account number, to be computed on all India basis but excludes central tax, state
tax, union territory, integrated tax and Cess.
(ii) Transfer due to succession, arrangement for amalgamation etc. (U/s 23)
(a) On account of succession
Where a business is transferred on account of succession or otherwise to another person as
a going concern the successor or the transferee will be liable to obtain registration from the
date of such transfer or succession.
(b) Transfer of business
The transferee shall be liable to obtain registration for date on which the Registrar of the
companies issues a certificate of in-corporation giving effect to such order of high court when
the transferred pursuant to
• Sanction of scheme
• Arrangement for amalgamation
• Demerger of one or more companies
(iii) Distinct person (U/s 25)

The following persons are considered as distinct person

(a) A person who as obtained or his require to obtain more than one registration whether in one
state OR more than one state in respect of each such registration be treated as distinct
persons
(b) Where a person who as obtained or is to obtain registration in a state in respect of an
establishment has an establishment in another State ,then such establishment shall be
treated as establishment of distinct for the persons
(iv) Specified person to obtain registration (U/s 24)
The following persons shall obtain registration specifically.
• Persons making any interstate taxable supply
• Causal taxable persons making taxable supply
• Person who are required to pay tax under reverse charge
• Person who are required to pay tax under on intra state supplies of which shall be paid by the
electronic commerce operator
• Nonresident taxable persons making taxable supply
• Person who supply goods or services or both , other than electronic commerce supply
• Every electronic commerce operator
• Every person supplying online information and data base access.
• Such other person or class of persons as may be notified by the government on the
recommendation of the council.
NOTE: These persons must obtain the registration even if their turnover is less than `20 Lakhs or 10
Lakhs as the case may be .The natures of activities of each of the persons are briefly specified below.
2.9 Person not liable for registration:
The following persons shall not be consider for liable of registration under GST
(a) Agriculturist
An Agriculturist to the extent of supply of produce out of cultivation of land.
“Agriculturist “means an individual or HUF who under take cultivation of land
• By own labour
• By labour of family
• By servant on wages payable in cash or kind or by hired labour under personal supervision
or the supervision of any member of family.
(b) Turnover less than specified limit
Any person having aggregate turnover in financial year is less than 20 lakhs, but in case of specified
states in article 279A (4) the turn over limit is 10 Lakhs.
“Specified states “in clause (g) of article 279A are
• Assam
• Arunachal Pradesh
• Jammu And Kashmir
• Sikkim
• Manipur
• Tripura
• Nagaland
• Meghalaya
• Mizoram
• Himachal Pradesh
• Uttarakhand
(c) Person engaged in business of exempted supply
Any person who is engaged exclusively in the business if supply the goods or services that are not
liable to tax under GST are wholly exempt from tax under GST.
2.10 Compulsory registration:
The sub section 25(8) of the GST act provides that where a person who is liable to be registered and
has not obtained registration, the proper officer shall proceed to register such person in a manner as
may be prescribed. As per rule 8 of the registration rule were during course of any survey , any
inspection , search enquiry or any other proceedings under the act, the proper officer finds that a
person liable for registration under the act as failed to apply , such officer may grant registration on
temporary basis and issue an order in form GST REG-11. The registration will be affected from the
date of order.
2.11 Compulsory registration in certain cases:
Notwithstanding anything contained in sub-section (1) of section 22, the following categories of
persons shall be required to be registered under this Act, ––
1. Persons making any inter-State taxable supply;
2. Casual taxable persons making taxable supply;
3. Persons who are required to pay tax under reverse charge;
4. Person who are required to pay tax under sub-section (5) of section 9;
5. Non-resident taxable persons making taxable supply;
6. Persons who are required to deduct tax under section 51, whether or not separately registered
under this Act;
7. Persons who make taxable supply of goods or services or both on behalf of other taxable persons
whether as an agent or otherwise;
8. Input Service Distributor, whether or not separately registered under this Act;
9. Persons who supply goods or services or both, other than supplies specified under sub-section (5)
of section 9, through such electronic commerce operator who is required to collect tax at source
under section 52;
10. Every electronic commerce operator;
11. Every person supplying online information and database access or retrieval services from a place
outside India to a person in India, other than a registered person; and
12. Such other person or class of persons as may be notified by the Government on the
recommendations of the Council.
2.12 Deemed registration:
The provisions between the Central Goods and Services Tax and State/Union Territory Goods and
Services Tax Act are interconnected, by enabling these provisions, the burden of taking registrations
under various Acts has been removed. Thus, if a supplier takes a registration under one act it shall be
deemed that the registration has also been obtained under the other Act and vice-versa. Even
otherwise the registration must be taken on the common portal and is based on the PAN hence the
registration will remain common across various Acts.
However, if the registration is rejected under the Central Goods and Services Tax, then such rejection
will be treated as if the registration has not been obtained under the Central Goods and Services Tax
even though it has been obtained in State/Union Territory Goods and Services Tax Act. If an
application for registration has been rejected under State/Union Territory Goods and Services Tax
Act then it shall be deemed that the same has been rejected under the Central Goods and Services Tax.
2.13 Special provision to casual taxable person and non-resident taxable person:
In section 27 of CGST Act 2017 explains about special provision relating to casual taxable person and
non-resident taxable person as below.
27. (1) the certificate of registration issued to a casual taxable person or non-resident taxable person
shall be valid for the period specified in the application registration or 90 days from the effective date
of registration , whichever is earlier & person shall make taxable supplies only after the insurance of
registration: provided that the proper may , on sufficient cause being shown by the said taxable
person, extended the said period of 90 days by a further period not exceeding 90 days.
(2) A casual taxable person or non-residential taxable person shall, at the time of submission of
application for registration under sub section (1) of section 25 , make an advance deposits of tax in
an amount equivalent to the estimated tax liability of such person for the period for which the
registration sought: provide that where any extension of time is sought under sub section 1 such
taxable person shall deposit an additional amount of tax equivalent to the estimate tax liability of such
person for the period for which the extension is sought
(3) Under sub section 2 shall be credited to the electronic cash ledger of such person and shall be
utilizes in the manner provided under sec 49. The above information clarifies about special provision
relating to casual taxable person and non-resident taxable person under section 27 CGST act of 2017.
2.14 Transfer of Business and Registration:
If registered taxable person transfers business on account of succession or otherwise, to another

person as a going concern, the transferee, or the successor, as the case may be, shall be liable to be
registered with effect from the date of such transfer or succession. This means that the Registration
Certificate issued under Section 22 of the Act is not transferable to any other person. In a case of
transfer pursuant to sanction of a scheme or an arrangement for amalgamation or, as the case may
be, de-merger of two or more companies by an order of High Court, the transferee shall be liable to
be registered with effect from the date on which the Registrar of Companies issues a certificate of
incorporation giving effect to such order of the High Court.
2.15 Assessment:
Assessment means determination of tax liability under GST law. Assessment of tax payable is one of
the main processes in levy and collection of taxes. The process of levy and collection of taxes ends
with the assessment of tax made by the proper officer. It is a process which confirms the correctness
of payment of taxes. The GST Act provides for filing of return by the registered persons in the specified
format to the proper officer. The GST Act provides that such returns shall be self-assessed by the
taxable person. The verification of returns is carried out by the Department by various means like
auditing of records, scrutiny of returns, summary assessment etc. Below are the various types of
assessment under GST.
2.16 Types of Assessment under GST:
(a) Self-assessment
(b) Provisional assessment
(c) Scrutiny assessment
(d) Best judgment assessment
(a) Assessment of non-filers of returns
(b) Assessment of unregistered persons
(e) Summary assessment
Assessment
By tax payer By tax

authorities
Self Provisional Summary Scrutiny of Best judgement

assessment Assessment Assessment returns assessment
Unregistered
Non-filers persons
Self – Assessment (Own Assessment):

Self GST assessment is available to every registered taxable person to assess the tax payable by him
for any tax period. Thus, determination of tax liability is to be undertaken by the taxpayer himself and
stated in the return to be filed by him. The return is required to primarily contain inward supplies in
Form GSTR 2 and outward supplies in Form GSTR 1 of goods/services, Input Tax Credit, tax payable
and tax paid. Hence, the furnishing of the return shall mean self-assessment of the taxpayer.
Provisional Assessment
1. In case the taxable person is unable to determine the tax liability due to value or rate of tax, he
may file application in Form GST ASMT-01 along with documents in support of paying the tax
on provisional basis.
2. Proper Office may issue the notice in Form GST ASMT-02, requiring the person to appear in
person or furnish additional information or documents.
3. Applicant shall file the reply in GST ASMT-03.
4. Proper officer shall pass the order in Form GST ASMT-04 within 90 days allowing to pay tax at
such rate that is given in order. Proper Officer may reject the application also giving the ground
of rejection.
5. Proper officer may ask for bond or surety/sureties binding the person to pay differential tax
liability between provisional and final tax liability.
6. Registered person shall execute the bond in GST ASMT-05. Security may be asked not to exceed
twenty five percent often amount covered under the bond.
(a) Proper Officer shall issue a notice in Form GST ASMT-06 calling for information and
records for final assessment.
(b) The proper officer shall pass the final assessment order within six months from the date
passing the order in Form No. GST ASMT-07 specifying the amount payable or
refundable.
Extension of Period
• By Joint Commissioner or Additional Commissioner-
• Further 6 months. By Commissioner- further 4 years.
There should be sufficient cause and reason should be recorded in writing before extensions of such
period by any authority.
a) In case of any difference, person shall be liable to pay interest.
b) In case of refund, person is entitled to get the refund with interest.
c) Applicant may file an application in Form No. GST ASMT-08 for release of security.
d) Proper Officer shall release the security and issue order in Form GST ASMT-09 within seven
working days from the receipt of application.
Summary Assessment
The assessing officer determines the liability of the assessee on the basis of returns filed by the
taxpayer and other evidence in the possession of the assessing officer without calling for either the
taxpayer or his records. The liability determined is communicated to the taxpayer.
Scrutiny Assessment
The Proper Officer can scrutinize the return and related furnished particulars to verify the
correctness of the return and inform about any discrepancies noticed and seek explanations. If the
explanation is acceptable, the registered person will be informed and no further action will be taken.
If explanation given is rejected within 30 days of being informed by the proper officer or where the
registered person, fails to take the corrective action, the proper officer can start appropriate action
including Audit, Special Audit, etc
Best Judgement Assessment

Such GST assessments are made either ex-parte or by rejecting the accounts or plea of the assessee.
In such cases:
(a) No Records or Documents are furnished or claims are not substantiated.
(b) Records and evidence produced before Proper Officer are rejected, whether wholly or partly,
due to Unreliability, Incorrectness or Incompleteness.
There are 2 parts to best judgement assessment: assessment of non-filers & unregistered persons.
2.17 Records under GST:
The records though to be maintained as per the needs of the business, since GST is going to be
technology based, all the transactions relating to GST is required to be uploaded into GST portal on
periodical basis. Section 35 of the GST Act, the taxable person should keep the books for the following
transactions:
1. Production or manufacture of goods
2. Inward and outward supply of goods and/ or services,
3. Stock of goods,
4. Input tax credit availed,
5. Output tax payable and paid,
6. Such other particulars as may be prescribed.
Apart from the above, the following list may also require to be maintained for other purposes:
a) Records for receipt of goods and services from registered person
b) Records for receipt of goods and services from non-registered person + applicability of reverse
charge (if any).
c) Import of goods bill of entry and other related documents.
d) Returns, payment challans, debit note and credit notes.
e) Financial statements.
f) Electronic records.
g) Bank statements and pay-in slips
h) Records for manner of computation of GST liability.
i) Records for availment and utilization of credit.
j) Daily sales record along with sales invoices.
k) GST reconciliation statement (Workings vs financials).
l) Electronic records of:-
(a) Tax liability register
(b) Credit ledger
(c) Cash ledger
(m) Agreements.
(n) Job work register.
(o) Security Register.
Further also there is requirement of matching of credits to the supplier’s output tax to get the benefit
of credit, otherwise of which the credit will be denied. Further also it is proposed that the credit will
not be permissible unless the vendor deposits appropriate taxes into Government Exchequer. This
will add difficulties in business since they have to ensure compliance of their vendor to get the benefit
of credit.
2.18 Electronic Cash Ledger:
As per rule 3 of the said Rules, the electronic cash ledger shall be maintained in FORM GST PMT-3 for
each registered taxable person on the Common Portal (GSTN server). The cash deposit made by the
tax payer towards payment of tax, interest, penalty, fee or any other amount would be credited in the
cash ledger and such cash ledger would be debited as and when the amount is utilized to discharge
respective liabilities.
The amount deducted at source or collected at source (TDS and TCS) on account of a taxable person
shall get credited to this electronic cash ledger. The refund claimed by the tax payer would be debited
in cash ledger and any rejection of claim would be automatically credited to cash ledger. The cash
deposit can be made through any of the following modes:
(i) Internet Banking through authorized banks;
(ii) Credit card or Debit card after registering the same with the Common Portal;
(iii) National Electronic Fund Transfer (NEFT) or Real Time Gross Settlement (RTGS) from any
bank;
(iv) Over the Counter payment (OTC) through authorized banks for deposits up to ten thousand
rupees per challan per tax period, by cash, cheque or demand draft. Restriction of ` 10,000/-
is not applicable to Government department/ recovery agents/officer authorised in this
regard.
The cash deposited through above modes would be used for making any payment towards tax,
interest, penalty, fees or any other amount payable under the provisions of this Act or the rules made
there under. If any unregistered person making payment shall obtain a temporary identification
number from the authorised officer and could deposit using Form GST PMT-5.
A Challan Identification Number (CIN) will be generated on successful credit of the amount to the
concerned government account and such CIN shall be indicated in the challan. When due to any
technical fault, CIN is not generated, then the assessee may represent electronically in FORM GST
PMT-6.
2.19 Electronic Credit Ledger:
Any claim of input tax credit (CSGT, SGST & IGST) on supply of goods and or services shall be credited
to the electronic credit ledger maintained in Form GST PMT-2. Further, such electronic credit ledger
shall be debited on utilization for making tax payment under the provisions of the GST Act. The input
tax credit available in credit ledger can be used for payment of output tax under CGST or IGST Act.
2.20 Returns:
A return is a document that a taxpayer is required to file as per the law with the tax administrative
authorities. Under the GST law, a normal taxpayer will be required to furnish three returns monthly
and one annual return. Similarly, there are separate returns for a taxpayer registered under the
composition scheme, taxpayer registered as an Input Service Distributor, a person liable to deduct or
collect the tax (TDS/TCS)
Purpose of Filing Returns

(a) Transfer of information to tax administration
(b) Compliance verification program of tax administration
(c) Finalization of the tax liabilities of the taxpayer within stipulated period of limitation; to declare
tax liability for a given period
(d) Providing necessary inputs for taking policy decision;
(e) Management of audit and anti-evasion programs of tax administration
Every registered dealer is required to file return for the prescribed tax period. A Return needs to be
filed even if there is no business activity (i.e. Nil Return) during the said tax period of return;
Government entities / PSUs, etc. not dealing in GST supplies or persons exclusively dealing in
exempted / Nil rated / non –GST goods or services would neither be required to obtain registration
nor required to file returns under the GST law.
(a) Filing of returns would only be through online mode. Facility of offline generation and
preparation of returns will also be available. The returns prepared in the offline mode will
have to be uploaded.
(b) 2 returns currently vis-à-vis 37 returns in a year in GST
(c) There will be a common e-return for CGST, SGST, and IGST.
(d) A registered Tax Payer shall file GST Return at GST Common Portal either by himself or
through his authorised representative. There would be no revision of Returns.
(e) List of GST Returns to be furnished are as under:
Sl.No Return What to file? By Whom By When
Form
1 GSTR-1 Details of outward Registered 10th of the next
supplies of taxable Taxable month
goods and/or services Supplier
effected
2 GSTR-2 Details of inward Registered 15th of the next
supplies of taxable Taxable month
goods and/or services Recipient
effected claiming input
tax credit.
3 GSTR-3 Monthly return on the Registered 20th of the next
basis of finalization of Taxable month
details of outward Person
supplies and inward
supplies along with the
payment of amount of
tax.
4 GSTR-4 Quarterly return for Composition 18th of the
compounding taxable Supplier month
person. succeeding
quarter
5 GSTR-5 Return for Non- Non-Resident 20th of the next
Resident foreign Taxable month
taxable person Person
6 GSTR-6 Return for Input Input Service 13th of the next
Service Distributor Distributor month
7 GSTR-7 Return for authorities Tax Deductor 10th of the next
deducting tax at month
source.
8 GSTR-8 Details of supplies E-commerce 10th of the next
effected through e- Operator/Tax month
commerce operator Collector
and the amount of tax
collected
9 GSTR-9 Annual Return Registered 31st December
Taxable of next
Person financial year
10 GSTR-10 Final Return Taxable Within three
person whose months of the
registration date of
has been cancellation or
surrendered date of
or cancelled. cancellation
order,
whichever is
later.
2.21 Filing of Return (Last Return / First Return):
Return is a statement of specified particulars relating to transactions undertaken by taxable person

during a particular period. It is mode of communication between taxpayers and department. There is
statutory obligation on each taxable person to furnish the return. Return has been defined in section
2(86) of the GST Law, “return means any return prescribed or otherwise required to be furnished by
or under this Act or rules made there under”.
A taxable person has a legal obligation:

(i) To declare his tax liability and credits availed during the period covered under return;
(ii) To furnish details about the taxes paid; and
(iii) To disclose such other aspects as may be applicable as per return format
(iv) File correct and complete return within stipulated time frame.
Importance of Return in GST Laws

GST is a self-assessed destination based taxation system. The submission and processing of return is
an important link between the taxpayer & tax administration as it’s an important tool for:
(i) Compliance verification program of tax administration;
(ii) To declare tax liability for a given period;
(iii) Mode for transfer of information to tax administration;
(iv) Providing necessary inputs for taking policy decision;
(v) Management of audit and anti-evasion programs of tax administration;
(vi) Finalization of the tax liabilities of the taxpayer within stipulated period of limitation.
Obligation to file Return in GST Regime

Every taxable person registered under the law is required to file his return. There are different
formats of return for different categories of person i.e. supplier of goods/service, casual taxable
persons, person deducting TDS, e-commerce operators, Input Service Distributor, Non-resident
taxable person etc., each categories of person has to file return in the format as applicable to them.
2.22 Type of various Returns/Statements and its periodicity:
Each registered taxable persons may need to furnish various type of information with the
department. These may be furnished by way of statement/returns. Following is summary of various
returns/statements to be furnished under the GST law:
For Regular Dealer

Form
Frequency Due Date Details to be Furnished
No.
Furnish details of outward
Form 10th of succeeding
Monthly supplies of taxable goods and/or
GSTR-1 month
services affected
Auto-populated in common
Form portal – wherein details of
11th of succeeding
GSTR - Monthly outward supply as furnished by
month
2A supplier in GSTR-1 is
communicated to recipient
Details of inward supplies of
Monthly taxable goods and/or services
GSTR-2 month
for claiming input tax credit.
The details of modification,
From
Accept or reject by added, corrected or deleted done
GSTR - Monthly
17th of next month in GSTR-2 by recipient is
1A
communicated to supplier.
Monthly return on the basis of
finalization of details of outward
Monthly supplies and inward supplies
GSTR-3 month
along with the payment of
amount of tax
Annual Return – furnish the
Form By 31st Dec of details of ITC availed and GST
Annually
GSTR-9 next financial year paid which includes local,
interstate and import/exports.
For Composite Tax Payers

Form
Type
Furnish all outward supply of
goods and services. This
Quarterly includes auto-populated details
GSTR-4 month
from Form GSTR-4A, tax
payable and payment of tax.
Furnish the consolidated details
Form 31st Dec of next
Annual of quarterly returns filed along
GSTR-9A fiscal
with tax payment details.
Note: Form GSTR 4A shall be generated based on the details furnished by vendor of Composite
dealers. This represents inward supply of composite dealer, which may be accepted by him with or
without modification.
Foreign Non- Resident Taxpayers

Form
Type
20th of succeeding
month or within 7 Furnish details of imports,
Form
Monthly days after the outward supplies, ITC availed,
GSTR-5
expiry of tax paid, and closing stock
registration
For Input Service Distributor

Form
Type
Form 13th of succeeding Furnish the details of input
Monthly
GSTR-6 month credit distributed
Note: Form GSTR-6A shall be generated based on details furnished by vendors towards supplies
made to ISD.
For Tax Deductor

Form Frequenc
Due Date Details to be Furnished
Type y
Form 10th of Furnish the details of TDS
Monthly
GSTR-7 succeeding month deducted
TDS Certificate – capture details of
TDS certificate to
Form value on which TDS is deducted
Monthly be made available
GSTR-7A and deposit on TDS deducted into
for download
appropriate Govt.
For E-Commerce
Form Freque
Due Date Details to be furnished
Type ncy
Details of supplies effected
Form 10th of succeeding through e-commerce operator
Monthly
GSTR-8 month and the amount of tax collected on
supplies
Note: This is in addition to GSTR-1, GSTR-2 and GSTR-3 which needs to be filed by each e-commerce
operator. GSTR-8 is intended to provide details of Tax collected by E-commerce on the supply made
through its platform.
2.23 Annual Return:
Every registered taxable person including person paying under composition scheme is required to
file annual return as below:
Form Freque
Type ncy
Normal Taxable person: Annual
Return – furnish the details of ITC
Form Annu By 31st Dec of
availed and GST paid which
GSTR-9 al next financial year
includes local, interstate and
import/exports.
Composition Taxable person:
Form 31st Dec of next Furnish the consolidated details of
Annual
GSTR-9A fiscal quarterly returns filed along with
tax payment details.
Taxable person with aggregate
turnover exceeding ` 1 crore:
Form Annual, 31st Dec of Reconciliation Statement –
Annual
GSTR-9B next fiscal audited annual accounts and a
reconciliation statement, duly
certified.
Final Return
For taxable person whose registration has been surrendered or cancelled
Return Freque
Type ncy
Furnish details of reversal of
one Within 3 months of
Form cenvat credit held in inputs, semi-
time cancellation of
GSTR-10 finished, final goods and capital
return registration
goods, tax payable and paid.
Government Departments and United Nation Bodies

Return
Frequency Due Date Details to be furnished
Type
Form 28th of succeeding Details of inward supplies to be
Monthly
GSTR-11 month furnished by a person having UIN
2.24 Requirement to file valid return:
1. Return not to be accepted if not filed for earlier period: A registered taxable shall not be allowed
to furnish return for a tax period if valid return for any previous tax period has not been furnished
by him.
2. Return to be filed on payment of tax: Every registered taxable person, liable to furnish return, is
required to pay the tax as declared in the return to the appropriate government not later than the
last date on which he is required to furnish such return. However, if aforesaid payment is not
made to the government, then such return will not be considered as a valid return for allowing
input tax credit in respect of supplies made by such person.
3. Return to be filed in case of Nil Supply also: Section 39 (8) provides that every registered taxable
person shall furnish a return for every tax period whether or not any supplies of goods and/or
services have been effected during such tax period.
4. Return not to be revised: Return once filed cannot be revised by taxable person. However, if any
omission or incorrect particulars are noticed after filing of return, he may rectify such error in the
month/quarter in which error is noticed. It is to be noted that the last date for such rectification
is September or second quarter of next financial year or date of filing of annual return, whichever
is earlier. No rectification can be made when such discovery is noticed as a result of scrutiny, audit,
inspection or enforcement activity by the tax authorities.
2.25 Filing the GST return:
There would be a GST common portal to file return. Returns in GST System could be filed by tax payer:
1. by himself logging on to the GST System using his own user ID & password; or
2. through his authorized representative using the user Id & password (allotted to the authorized
representative by the tax authorities), as chosen at the time of registration, logging on to the GST
System
Return may be filed through Tax Return Preparers (TRPs) also. It is relevant to note that the
government has approved some GSPs. Access could be made to GSTN by using the products developed
by GSPs.
First Return
Every registered person who had made outward supplies in the period between the dates on which
he become liable to registration till the date on which registration has been granted shall declare the
same in the first return furnished by him after grand of registration. After obtaining registration the
taxable person is required to file his very first return.
Final return
Every registered person who is required to furnish a return under sub-section (1) of section 39 and
whose registration has been cancelled shall furnish a final return within three months of the date of
cancellation or date of order of cancellation, whichever is later, in such form and manner as may be
prescribed. Every registered person whose registration is cancelled shall file final return in FORM
GSTR- 10 through common portal within 3 months from the date of cancellation (voluntary
cancellation) or date of order of cancellation (forceful cancellation by authority), whichever is later.
However, this provision shall not apply to a register person, who is,
(a) Input Service Distributor
(b) A person paying tax under Section 51 (TDS)
(c) A person paying tax under Section 52 (TCS)
(d) Non-resident taxable person
Annual return
Every registered person, other than an Input Service Distributor, a person paying tax under section
51 or section 52, a casual taxable person and a non-resident taxable person, shall furnish an annual
return for every financial year electronically in such form and manner as may be prescribed on or
before the thirty-first day of December following the end of such financial year.
Every registered person who is required to get his accounts audited in accordance with the provisions
of sub-section (5) of section 35 shall furnish, electronically, the annual return under sub section (1)
along with a copy of the audited annual accounts and a reconciliation statement, reconciling the value
of supplies declared in the return furnished for the financial year with the audited annual financial
statement, and such other particulars as may be prescribed.
Every taxable person shall file annual return in FORM GSTR-9 (FORM GSTR-9A in case of person opted
to pay tax under composition scheme under section 10) for every financial year electronically on or
before 31st December following the end of such financial year. However, this provision shall not apply
to,
(a) Input Service Distributor.
(b) A person paying tax under Section 51 (TDS).
(c) A person paying tax under Section 52 (TCS).
(d) A casual tax Taxable person.
(e) Non-resident taxable person.
In case the registered person is required to get his accounts audited in accordance with the provisions
of Section 35 (5) (whose aggregate turnover during the financial year exceeds ` One crores) shall file
annual return FORM GSTR-9B electronically along with,
(a) A copy of audited annual accounts.
(b) Reconciliation statement reconciling the value of supplies as per annual return and as per audited
financial statement.
2.26 Steps for filling the return under GST:
Step-1:- The taxpayer will upload the final GSTR-1 return form either directly through data entry at
the GST Common Portal or by uploading the file containing the said GSTR-1 return form through Apps
by 10th day of month succeeding the month during which supplies has been made. The increase /
decrease (in supply invoices) would be allowed, only on the basis of the details uploaded by the
counter-party purchaser in GSTR-2, which shall be communicated to supplier in GSTR-1A. In other
words, the supplier would not be allowed to include any missing invoices on his own after 10th day
of the month. It is expected that GSTN may facilitate periodic (may be daily, weekly etc.) upload of
such information to minimize last minute load on the system. GSTN will facilitate offline preparation
of GSTR-1.
Furnishing details of outward supplies:

Who Every registered person (Supplier)
When 10th of following month
Where Form GSTR 1
What Invoice wise details of all - Consolidated details of all -
1. Inter-state supplies made to
registered persons
2. Inter- state supplies made to 2. State wise inter-state
unregistered persons (Invoice supplies made to unregistered
value more than 2.5 Lakhs) persons (Invoice value less than
2.5 Lakhs)
3. Intra-state supplies made to 1. Intra-state supplies made to
registered persons unregistered persons for each
rate of tax

Other 1. The details furnished in Form GSTR 1 by the supplier shall be
Points made available to the recipient in,
➢ Form GSTR 4A – Compounding taxpayer
➢ Form GSTR 6A – ISD recipients
➢ Form GSTR 2A – Others
2. The said details shall be made available to the recipients only
after the due date of filing of GSTR 1
Step-2: GST Common Portal (GSTN) will provide information furnished by taxpayer in the Form
GSTR-2A to the recipient. Such person (recipient) is required to upload GSTR-2 of based on the supply
invoice details reported by the counter-party taxpayer (supplier) received by it in GSTR-2A.
Step-3: Purchasing taxpayer will accept / reject/ modify such auto-drafted provisional GSTR-2A. (A
taxpayer will have the option to download his provisional purchase statement from the Portal or
through Apps using Application Programming Interface (APIs) and update / modify it off-line).
Step-4: Purchasing taxpayer will also be able to add additional purchase invoice details in his GSTR-
2 which have not been uploaded by counter-party taxpayer (supplier) as described in above, provided
he is in possession of valid invoice issued by counter-party taxpayer and he has actually received such
supplies. All the invoices would be auto-populated in the ITC ledger of taxpayer. The taxpayer would,
however, indicate the eligibility / partial eligibility for ITC in those cases where either he is not
entitled or he is entitled for partial ITC.
Step-5: Details furnished by recipient in GSTR-2 but not furnished by his counterparty in GSTR-1
shall be communicated to the supplier in Form GSTR-1A. The supplier may accept the changes
suggested in GSTR-1A, fully or partially, or reject it. To the extent, changes suggested
Furnishing details of inward supplies:

Who Every registered person (Recipient)
Where Form GSTR 2
What Invoice wise details of all
▪ Inter-state supplies received from registered or unregistered
person
▪ Intra-state supplies received from registered or unregistered
person
▪ Import of goods and services made
▪ Debit and credit notes, if any received from supplier
Where the recipient is able to determine the eligibility of input tax
credit at the invoice level, shall be specified by the recipient Ex: T1,
T2, T3 & T4.
Declare the quantum of ineligible input tax credit on inward
supplies that are relatable to non-taxable supplies or used for
other than business purposes and are not determined at the
invoice level.
Other 1. The details in Form GSTR 2 shall be filled based on details
Points contained in Part A, B C & D of Form GSTR 2A
2. The recipient is also allowed to include details of other inward
supplies in addition to the details furnished in GSTR 2A
Step-6:-Taxpayers will finalize their GSTR-1and GSTR-2 by using online facility at Common Portal or
using GSTN compliant off-line facility in their accounting applications, determine the liability on their
supplies, determine the amount of eligible ITC on their purchases and then generate the net tax
liability from the system for each type of tax. Cash details as per personal ledger/ carried forward
from previous tax period, ITC carried forward from previous tax period, ITC reversal and associated
Interest/Penalty, taxes paid during the current tax period etc. would get auto-populated in the GSTR-
3.
Who Every registered person
Excluding:
▪ Input service distributor
▪ Non-resident taxable person
▪ Compounding tax payer
▪ Person deducting tax at source
Where Form GSTR 3
What Part A On the basis of information furnished through returns in
Form GSTR 1, 2 and based on other liabilities of
preceding tax periods
Part B Liability towards tax, interest, penalty, fees or any other
amount payable under the act or rules
Other When there is extension of time limit for furnishing details in
Points Form GSTR 1 and 2 then monthly return shall be filed in Form
GSTR 3B
Step-7:-Taxpayers will pay the amount as shown in the draft GSTR-3 return generated
automatically at the Portal post finalization of activities mentioned in Step 6 above.
Step-8:-Taxpayer will debit the ITC ledger and/or cash ledger and mention the debit entry No. in
the GSTR-3 return and would submit the same.
2.27 Consequences for delay in filing of return: Late fee:
Section 47 (1) provides that any registered taxable person who fails to furnish the details of outward
or inward supplies required under Section 37 or 38 or returns required under Section 39 or Section
45 by the due date shall be liable to a late fee of `100 /- for every day during which such failure
continues subject to a maximum of `5000/-. Section 47(2) provides that any registered taxable person
who fails to furnish the return required under Section 44 (Annual Return) by the due date shall be
liable to a late fee of ` 100/- for every day during which such failure continues subject to maximum of
an amount calculated at a quarter percent of his aggregate turnover in the state.
Return Defaulter
Where a registered taxable person fails to furnish a return under Section 39 or Section 44 or Section
45, a notice shall be issued requiring him to furnish such return within 15 days. The notice shall be in
the Form No.GSTR-3A that shall be issued electronically. It is expectation that due to online filing of
returns and statements, and consequent reduced interaction with dept. the corruption faced by
assesses would substantially reduce over a period of time.
2.28 Payment of GST:

Payment always plays an important role in all Acts and especially under GST payment plays much
bigger role than in any other Acts. As the payment has implication on filing of returns as well as
availment of input tax credit. Payment is referred to be an event which implies obligation on tax payer
to discharge the tax liability. Compared to service tax law the time limit for payment of tax under GST
is more and similar to VAT provisions.
The tax payer registered under GST need to ascertain his liability on month on month basis (IGST,
CGST, SGST and UTGST) and deposit the same before filing the return prescribed under section 39 of
CGST, Act. The GST liability can be paid through cash or input tax credit. The input tax credit as self-
assessed in the GSTR-2 filed by the assessee would be credited to Electronic credit ledger on
provisional basis under section 41 of the Act. In case of any mismatch as per section 42 and 43 of the
Act, would be treated as output tax liability and recovered along with interest from the recipient /
supplier respectively. Under GST the payment process is through online and following three ledgers
plays important role,
− Electronic cash ledger
− Electronic credit ledger
− Electronic tax liability ledger
The above three ledgers of each tax payers would be maintained at common portal and also required
to be reconciled with books of accounts.
Section 49 of the CGST Act, provides provision for payment of tax, interest, penalty and other
amounts. The payments need to be made by creating a challan in the GST portal by providing the
details of amount payable towards CGST/SGST/ IGST/UTGST/ interest/fee/ penalty/other amounts.
Such challan would be valid only for 15 days. The amount paid under section 49 shall be credited to
the electronic cash ledger of such tax payer.
In case there is any balance in the electronic cash ledger or credit ledger after payment of amount
payable under the Act or rules may apply for refund of such balance in accordance with provisions of
section 54 of the Act. The manner of maintaining electronic cash and credit ledgers are prescribed in
the draft GST Payment Rules.
2.29 Refunds under GST:
GST is said to me most awaited indirect tax reform in Independent India. The process of refund under
GST is simplified to a large extent, to ensure the assessee does not have to run pillar to post to get his
refund. Under GST the word “Refund” includes refund of tax on goods or services exported out of
India or on inputs or input services used in the goods or services which are exported out of India, or
refund of tax on the supply of goods regarded as deemed exports, or refund of unutilized input tax
credit as provided under section 54(3)
Under GST Regime the refund can be claimed for –

(a) Export of goods/ services including deemed exports.
(b) Credit accumulation due to inadvertent duty structure
(c) Excess paid of tax due to mistake
(d) Finalization of provisional assessment
(e) Refund of pre-deposit, in case assessee wins the case.
(f) Payment of excess tax during investigation.

(g) Refund on purchase made by Embassies and UN nation.
(h) Year-end volume based incentives provided by supplier through credit notes.
(i) Tax refund for International tourist
Time limit for filing Refund Application

The refund application should be filed to the proper officer within two years from the relevant date
as prescribed in the Goods and Service Tax Refund Rules. The relevant dates for filing refund
application are as follows:-
(a) If tax paid on goods exported itself or tax paid on input or input services then,
(i) Exported by sea or air- date when the ship or the aircraft leaves India;
(ii) Exported by land - date when such goods pass the frontier;
(iii) Exported by post - date of dispatch of goods by concerned Post Office to a place outside
India.
(b) If refund of tax paid on services exported itself or tax paid on inputs/input service then,
(i) If supply of service is completed prior to the receipt of payment – date of receipt of
payment in convertible foreign exchange.
(ii) If payment for the service received in advance prior to the date of issue of invoice – date
of issue invoice.
(c) If supply of goods is considered as deemed export - the date on which the return relating to
such deemed exports is filed.
(d) If goods returned for being remade, refined, reconditioned, or subjected to any other similar
process in any place of business- the date of entry for the purposes aforesaid at a place of
business.
(e) If the refund is as a consequence of judgment, decree, order or direction of Appellate
authority, Appellate Tribunal or any Court - date of communication of such
judgement/decree/order/direction
(f) If refund of unutilized input tax credit due to exports - end of the financial year in which such
claim for refund arises; and
(g) If the tax paid is provisionally - the date of adjustment of tax after the final assessment.
Refund of unutilized credit shall not be allowed in cases other than-

(a) Exports including zero-rated supplies
(b) Cases where the credit has accumulated on account rate of tax on inputs being higher than
the rate of tax on output supplies
(c) Nil rated or fully exempt supplies
Some cases where goods exported out of India are subjected to export duty and cases where if the
supplier of goods and or services claims for refund of output tax under IGST Act 2016 are shall not
be liable for refund under GST.
2.30 Utilization of input tax credit:
The manner of utilization of IGST/CGST/SGST credits lying as input tax credit in electronic credit
ledger would be as under:
(a) IGST balance shall first be utilized to pay IGST liability and the balance if any thereafter may
be utilized towards payment in the order of CGST, SGST and UTGST.
(b) CGST credit balance shall be utilized first towards payment of CGST liability and balance if

any could be used to pay the IGST liability.
(c) SGST credit shall be utilized towards payment of SGST liability, the balance if any thereafter
could be utilised for payment of IGST.
(d) UTGST credit shall be utilized towards payment of UTGST liability, the balance if any
thereafter could be utilised for payment of IGST.
(e) The input tax credit on account of CGST shall not be utilized towards payment of SGST.
Similarly, the credit on account of SGST shall not be used for payment of CGST.
Unutilized balance in Cenvat credit ledger can be claimed as refund by a registered taxable person at
the end of any tax period at the option of tax payer in case of exports or where the credit has
accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies.
The amount to the extent of the refund claim shall be debited in the said ledger and on account of
rejection; the credit shall be re-credited to the electronic credit ledger by the proper officer by an
order made in Form GST PMT-2A.
2.31 Electronic Tax Liability Register:
All liabilities of a taxable person under GST Act shall be recorded and maintained in an electronic
register called Electronic Tax Liability Register (ETLR). Rule 1 of the draft GST payment rules
provides that the ETLR shall be maintained in Form GST PMT-1 on the Common Portal. The electronic
tax liability register of a registered taxable person shall be debited by:
(a) The amount payable towards tax, interest, late fee or any other amount payable as per the
returns filed.
(b) The amount of tax, interest, penalty or any other amount payable as determined by a proper
officer in pursuance of any proceeding under the Act.
(c) The amount of tax and interest payable as a result of mismatch of input tax credit.
(d) Any amount of interest that may accrue from time to time.
Electronic tax liability register shall be credited as and when the taxable person discharges his
liability either through Electronic Credit Ledger or Electronic Cash Ledger. The following amounts
shall be payable by debiting electronic cash ledger:-
(a) The amount deducted under section 51; or
(b) The amount collected under section 52; or
(c) The amount payable under section 9(3) or 9(4); or
(d) The amount payable under section 10; or
(e) The amount payable under 5(3) or 5(4) of IGST Act; or
(f) The amount payable under section 7(3) or 7(4) of UTGST Act; or
(g) Any other amount payable towards interest, penalty, fee or any other amount under this Act,
IGST Act.
A Unique Identification Number (UIN) shall be generated at the common portal for each debit or
credit to the electronic cash or credit ledger, as the case may be. Further, UIN relating to discharge of
any liability shall be indicated in the corresponding entry in the electronic tax liability register.
2.32 Interest on delay payment:
In case the assessee fails to pay the tax or any part thereof to the Govt. within the prescribed period
under GST Act, he is liable to pay the same along with interest. Interest would be computed from the
day succeeding the day on which such tax was due to be paid. The interest rate is yet to be prescribed
by the Govt., however such interest rate shall not exceed 18% under CGST, Act.
2.33 Interest in case of mismatch of input tax credits:
In case the assessee claims an undue or excess input tax credit under sub-section 42(10) or claims an
undue or excess reduction in output tax liability under section 43(10), then such excess or undue
claim or such excess or undue reduction shall require to be paid along with interest under section
50(3) of the Act. The interest rate is yet to be prescribed by the Govt., however such interest rate shall
not exceed 24% under CGST, Act. In short, on one part there is an Electronic tax liability register
(ETLR) and on the other side there are two ledgers namely Electronic Cash Ledger (ECaL) &
Electronic Credit Ledger (ECrL). The Credits in ETLR would be the debits of EaCL/ECrL.
2.34 Matching, reversal and reclaim of input tax credit:
Section 42 of the CGST Act, 2017 deals with the matching of details of inward supply furnished by the
registered person and same shall be matched with
1. The outward details as furnished by the corresponding supplier in his valid return for the same
period or any previous tax period
2. The integrated goods and service tax paid under section 3 of Customs Tariff Act, 1975 in respect
of imported goods
3. Duplication of claims of input tax credit
The same could be categorised as matched supply or unmatched supply or duplicates. The
input tax credit would be allowed to registered person under section 41 provisionally and such ITC
availed on inward supply shall be matched with the following contents after due date of furnishing
GSTR-3:
a) GSTIN of the supplier;
b) GSTIN of the recipient;
c) Invoice or debit note number;
d) Invoice or debit note date;
e) Taxable value; and
f) Tax amount
Treatment of matched supply:
1. The inward supply on which ITC is claimed would be matched with the corresponding details
of the outward supply as furnished by the supplier.
2. The claim of input tax credit shall be considered as matched, where the amount of input tax
credit claimed is equal to or less than the output tax paid on such tax invoice or Debit Note, as
the case may be, by the corresponding supplier.
3. If any inward supply is not matched with the outward supply furnished by the corresponding
supplier, would be considered as mismatched.
Treatment of unmatched supply:
1. In case of unmatched supply, the same shall be communicated to both the supplier as well as
recipient in Form GST MIS-1 through common portal.
2. After communication, the recipient or supplier is required to rectify such discrepancy in the
return to be filed for the month in which such discrepancy is communicated.
3. If the rectification is not done, then the input tax credit availed by the recipient would be added
to his output tax liability along with interest for month succeeding the month in which the
discrepancy is communicated.
4. In case the supplier rectifies the mistake at a later date, then the recipient is eligible to reduce
such amount from his output tax liability. Further the interest paid shall be refunded to the
recipient in cash ledger. Provided such interest shall not exceed the amount of interest paid by
the supplier.
Treatment of duplicates:
1. Duplicates are those items which are entered more than once in the GSTR 2 furnished by the
recipient.
2. Since it is the mistake of the recipient, the duplicates shall be communicated only to the recipient.
3. The same is required to rectified by the recipient, if not such amount shall be added to the output
liability of the recipient of the supply in the month in which such discrepancy is communicated.
4. Also, the recipient is liable to pay interest at a rate as mentioned in sub section (1) of section 50
on the amount so added from date of availing the credit till the date the corresponding additions
are made (and not till the date when the same amount is paid to the government)
Example: A Ltd supplies manufactured goods to B Ltd for ` 1000 in May 2017; CGST thereon is, say, `
120. Unfortunately, A Ltd did not furnish these details in its outward supply to B Ltd. While matching
the credit, B Ltd failed to set this right and went ahead with credit claim and utilized the credit against
CGST liability. Later, GST officer intimates this mismatch, say by August 2017. In the absence of A
Ltd’s due response,
B Ltd may pay back the credit with interest (for wrong credit). A Ltd rectifies the outward return with
details omitted earlier, in October 2017. Accordingly, B Ltd can certainly take back the credit earlier
reversed.
2.35 Matching, reversal and reclaim of reduction in output tax liability:
Section 43 deals with the matching of claim of reduction in output liability by way of credit notes.
Details of credit not pertaining to outward supply furnished by a supplier shall be matched with,
1. Corresponding reduction in ITC claimed by the recipient
2. Duplication of claims for reduction in output tax liability
The same could be categorized as matched supply or unmatched supply or duplicates. The matching
of reduction of output tax liability would be matched with following elements:
(a) GSTIN of the supplier;
(b) GSTIN of the recipient;
(c) Credit note number;
(d) Credit note date;
(e) Taxable value; and
(f) Tax amount
The reduction in output liability is accepted only if;
1. The claim of reduction of output tax liability due to issuance of credit notes in FORM GSTR-1
that were accepted by the recipient in FORM GSTR-2 without amendment shall be treated as
matched if the corresponding recipient has furnished a valid return.

2. The claim of reduction in the output tax liability shall be considered as matched, where the
amount of reduction claimed is equal to or less than the claim of reduction of input tax credit
admitted and discharged on such credit note by the corresponding recipient in his valid return.
Treatment of unmatched supply –

• In the following situations the supply shall be treated to unmatched,
• When the reduction in output tax liability is more than the reduction claimed in corresponding
input tax credit
• Corresponding credit note is not declared by the recipient in his valid returns
• Such discrepancy (unmatched supplies) shall be communicated to both the parties
• The supplier shall make suitable rectifications in the statement of outward supplies and the
recipient shall make suitable rectifications in the statement of inward supplies in the month in
which such discrepancies are communicated.
Treatment of duplication of credit note–

1. Duplicates are those credit notes which are entered more than once in the GSTR 1 of the
supplier.
2. Since it is the mistake of the supplier the duplicates shall be communicated only to the
supplier.
3. The same is required to rectified by the supplier, if not such amount shall be added to the
output liability of the supplier in the month in which such discrepancy is communicated.
4. Also, the supplier is liable to pay interest at a rate as mentioned in sub section (1) of section
50 on the amount so added from date of availing the credit till the date the corresponding
additions are made (and not till the date when the same amount is paid to the government).
Duplicate Transactions relating to input tax credit

The duplication of claims of input tax credit shall be communicated to the recipient. Further, the
amount claimed as input tax credit that is found to be in excess on account of such duplication of
claims shall be added to the output tax liability of the recipient in his return for the month in which
the duplication is communicated.
2.36 Terminal Questions:
Section – A
1. What is registration under GST?
2. Write any two benefits of Registration of GST.
3. Expand GSTIN and PAN.
4. What is the scope of supply?
5. Write any two transactions not treated as supply.
6. Write any two forms used for registration.
7. Write any two persons not liable for registration.
8. Write any two persons liable to obtain registration.
9. What is Compulsory registration?
10. What is Deemed registration?
11. What do you mean by Assessment?

12. What is Self-Assessment?
13. What do you mean Provisional Assessment?
14. What is Summary Assessment?
15. Name any four Records to be maintained under GST.
16. Expand TDS and TCS.
17. Expand NEFT and RTGS.
18. What is annual return?
19. Who is return defaulter?
Section – B
1. What is registration under GST? What are its benefits?
2. What is IGST? Write the taxable event under IGST.
3. Explain in brief the types of Assessment under GST.
4. Write the various records to be maintained under GST.
5. Write the importance of Filling under GST.
6. Explain the provisions relating to Input Tax Credit.
Section – C
1. What is an Assessment? Explain the Different types under GST.
2. Explain in different records to be maintained under GST.
3. What do you mean by return? Explain the steps for filing the return under GST.

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Module – 2

Time and Value of Supply and Registration of GST

2.2 Time of supply of goods:

Location of Service Receiver Place of supply Nature of Supply GST Applicable

Maharashtra Maharashtra Intra-state CGST + SGST

Maharashtra Kerala Inter-state IGST

2.3 Place of Supply of Goods:

2.4 Transaction Value:

Transaction Value INCLUDES:

Transaction Value EXCLUDES discount:

3 04-08-2017 04-08-2017 06-08-2017 01-07-2017

Private circulation only 31

2 15-11-2017 Invoice is issued within 30 days but payment received before

3 15-11-2017 and Invoice is issued within 30 days. Part payment received

2.5 Registration under GST:

Private circulation only 32

2.6 Procedure for registration under GST:

2.7 Other aspects of registration:

1. Application for GST Reg-01 Applicable for persons other

Private circulation only 35

2.8 Person liable to obtain registration:

(i) Aggregate turnover of ` 20 Lakhs or 10 Lakhs (U/S 22)

(iii) Distinct person (U/s 25)

Private circulation only 37

2.9 Person not liable for registration:

2.10 Compulsory registration:

2.11 Compulsory registration in certain cases:

2.12 Deemed registration:

2.14 Transfer of Business and Registration:

If registered taxable person transfers business on account of succession or otherwise, to another

2.16 Types of Assessment under GST:

By tax payer By tax

Self Provisional Summary Scrutiny of Best judgement

Self – Assessment (Own Assessment):

Best Judgement Assessment

2.17 Records under GST:

2.18 Electronic Cash Ledger:

2.19 Electronic Credit Ledger:

Purpose of Filing Returns

Return is a statement of specified particulars relating to transactions undertaken by taxable person

A taxable person has a legal obligation:

Importance of Return in GST Laws

Obligation to file Return in GST Regime

2.22 Type of various Returns/Statements and its periodicity:

For Regular Dealer

Private circulation only 46

For Composite Tax Payers

Foreign Non- Resident Taxpayers

For Input Service Distributor

For Tax Deductor

2.23 Annual Return:

Government Departments and United Nation Bodies

2.24 Requirement to file valid return:

2.25 Filing the GST return:

2.26 Steps for filling the return under GST:

Furnishing details of outward supplies:

Private circulation only 51

Furnishing details of inward supplies: