For CA Intermediate

CA. Raj Kumar

INDIRECT TAXES

G S T

F o r M a y 2 0 2 1 E x a m

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AUTHOR

ALL RIGHTS ARE RESERVED. NO PART OF THIS BOOK SHALL BE REPRODUCED, STORED IN A

RETRIEVAL SYSTEM, OR TRANSMITTED BY ANY MEANS WITHOUT WRITTEN PERMISSION OF

AUTHOR.

“Every effort has been made to avoid errors or omissions in this publication. In-spite of this, error may creep in. Any

mistake, error or discrepancy noted might be brought to our notice, which shall be taken care of in the next edition.”

CONTENTS

Chapter 2 DEFINITIONS ................................................... 2.1

Chapter 6 EXEMPTIONS .................................................... 6.1

Chapter 7 COMPUTATION OF GST ........................................ 7.1

Chapter 8 REVERSE CHARGE MECHANISM ............................... 8.1

Chapter 9 INVOICE ......................................................... 9.1

Chapter 11 REGISTRATION ............................................... 11.1

Chapter 13 MANNER OF PAYMENT ....................................... 13.1

Chapter 14 RETURN ........................................................ 14.1

Chapter 15 E-WAY BILL ................................................... 15.1

About CA RAJ KUMAR

CA Raj Kumar is a dynamic & qualified Chartered Accountant. As a brilliant student and a

position holder at Graduation & Post Graduation level, during his 12 years of glorious teaching

experience in the field of Indirect Taxation he has taught over 1,25,000 students.

He is a favorite amongst CA Students for the astute & insightful academic inputs provided by

him and for his pleasing & endearing personality and lucid art of teaching.

He firmly believes in blending studies with fun and this is quite evident in his classes wherein he

goes beyond theoretical reading of the subject, makes students solve practical problems, gives

them practical real life examples and pushes them to achieve their goals with full precision.

In the subject Indirect Tax Laws, his students have continued to score All India Highest Marks

for 10 times till now. He has also been entrusted by Government agencies to show the ropes to

IRS Officers in training, which is a testament to his caliber as a subject matter expert.

He is famous for concepts linkage from the very beginning till the end which helps in

understanding the topic, acing the exams and in post CA life as well. His unique use of GST

portal during the class to link theory with Practical makes him stand apart from the crowd.

His classes are practical, conceptual and concise. He is also the author of bestselling titles 'GST

Compact Book'.

- 1 -

Amendments Summary

CA Intermediate: For May 2021 Exam

FINANCE ACT, 2020 APPLICABLE.

Notifications, Circulars etc. Upto 31st October 2020

GST: Chapter wise Amendments

Introduction and

Constitution

Definitions Demerger of State of J&K: into 2 UTs

J&K [UT with legislature, which is deemed as state]

Ladakh [UT without Legislature]

Merger of 2 UTs:

Dadra and Nagar Haveli and Daman and Diu;

Goods and services

Supply

Taxable person

Exemptions *Services by way of transportation of goods by an aircraft/ Vessel in respect of export of

goods will be exempted by 30th September 2021. (Instead of 2020)

*Satellite launch services supplied by

Indian Space Research Organisation,

Antrix Corporation Limited or

New Space India Limited.

Will be exempted.

Computation

Corresponding change in Rule 7 of CGST Rules.[In reality not an Amendment]

Registered persons not eligible for goods

focused composition scheme but eligible

for service focused composition scheme

3% of the turnover of supplies of goods and

services in the State or Union territory.

www.carajkumar.com CA RAJKUMAR

- 2 -

RCM

Where a whole time director who is deemed as an employee works in dual capacity

(i) As an employee and NOT a supply no question of GST

(ii) Separate contract for provision of

service for which he is separately

compensated

Liable to GST under RCM.

Invoice E – INVOICE

*Limit for applicability of provisions of E – INVOICE increased to Rs. 500 Crore from

Rs.100 crore

*Following shall be part of E- Invoice - Quick Response code, having embedded Invoice

Reference Number (IRN) in it.

Normal Invoicing [ie other than E-INVOICE]

An invoice issued by a registered person, whose aggregate turnover in any preceding

financial year from 2017-18 onwards exceeds Rs.500 crore,

to an unregistered person (ie B2C invoice),

shall have Dynamic Quick Response (QR) code. [PAYMENT QR CODE]

QR Code through DIGITAL DISPLAY: Provided that where such registered person

makes a Dynamic Quick Response (QR) code available to the recipient through a digital

display,

Such B2C invoice issued by such registered person containing cross-reference of the

payment using a Dynamic Quick Response (QR) code,

shall be deemed to be having Quick Response (QR) code.

Time of supply

Input tax credit

Registration Aadhaar Authentication

Effective date of

submission of

Registration

Application

Where an applicant, opts for authentication of Aadhaar number,

He shall, while submitting the Registration application,

undergo authentication of Aadhaar number and

the date of submission of the application in such cases

shall be the date of authentication of the Aadhaar number,

or 15 days from the submission of the application

whichever is earlier.

If no Aadhaar

authentication then

registration shall be

granted only after

physical verification or

verification of

documents

Where a person,

fails to undergo authentication of Aadhaar number OR

does not opt for authentication of Aadhaar number,

the registration shall be granted only after physical

verification of the place of business in the presence of

the said person.

CA RAJKUMAR www.carajkumar.com

- 3 -

Provided that The proper officer may,

For reasons to be recorded in writing and

with the approval of an officer not below the rank of

Joint Commissioner,

in lieu of the physical verification of the place of

business,

carry out the verification of such documents as he may

deem fit.

If no Aadhaar

authentication then

notice with 21 days by

officer

Where a person,

fails to undergo authentication of Aadhaar number OR

does not opt for authentication of Aadhaar number,

the notice in FORM GST REG-03 may be issued not

later than 21 days from the date of submission of the

application.

If no reply of notice or

officer not satisfied

with the reply then

officer MAY reject the

application

Where

No reply is furnished by the applicant in response to the

notice issued or

where the proper officer is not satisfied with the

clarification, information or documents furnished,

he [MAY], for reasons to be recorded in writing, reject

such application and inform the applicant

electronically.

If the proper officer fails to take any action, -

(a) Within a period of

3 working days from

the date of submission

of the application

In cases where a person successfully undergoes

authentication of Aadhaar number ; or

(b) Within the time

period prescribed

under the proviso to

sub-rule (2),

in cases where a person, fails to undergo authentication

of Aadhaar number

(c) Within a period of

21 days from the date

of submission of the

application

in cases where a person does not opt for authentication

of Aadhaar number; or

(d) within a period of 7 working days from the date of the receipt of the clarification,

information or documents furnished by the applicant.

the application for grant of registration shall be deemed to have been approved.

www.carajkumar.com CA RAJKUMAR

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Rule 25: One more reason added for physical verification of premises as not opting for

Aadhaar authentication

Filing of Return * Now NIL - GSTR 1/ GSTR 3B/ GST CMP 08 may be filed through MOBILE SMS.

* For GSTR 9C [audited annual accounts and a reconciliation statement] limit of 2 crore

increased to Rs 5 crore financial year 2018-2019 and 2019-2020.

Manner of payment Amendment of section 50.

Provided that the interest on tax payable

in respect of supplies made during a tax period and

declared in the return for the said period

furnished after the due date in accordance with the provisions of section 39,

except where such return is furnished after commencement of any proceedings

under section 73 or section 74 in respect of the said period,

shall be levied on that portion of the tax that is paid by debiting the electronic

cash ledger.

E-way bill In case, E- Invoice,

The Quick Response] (QR) code having an embedded Invoice Reference Number

(IRN) in it,

may be produced electronically, for verification by the proper officer

in lieu of the physical copy of such tax invoice.

2.1

Chapter

Definitions

STATES AND UT

(103) “State” includes union Territory with legislature.

(114) “Union territory” means the territory of-

(a) the Andaman and Nicobar Islands;

(b) Lakshadweep;

(c) Dadra and Nagar Haveli; AND DAMAN and DIU

(d) LADAKH Daman and Diu

(e) Chandigarh; and

(f) Other territory

81. OTHER TERRITORY- Includes territories other than

Delhi and Puducherry

the Andaman and Nicobar Islands;

Lakshadweep;

Dadra and Nagar Haveli; AND DAMAN and DIU

LADAKH Daman and Diu

Chandigarh

IN simple wordings: other territory Means Residuary PART. [eg Oil Rigs Area in EEZ]

2

6.1

Chapter

Exemptions

Transportation of Goods

(9B)

Nepal/ Bhutan

Supply of services associated with transit cargo to Nepal and Bhutan.

Analysis:

“TRANSIT-Cargo”

Associated Services given by

Indian Service Provider/Supplier

eg. insurance service

eg. transportation service

eg. loading /unloading service (Exempted)

(18) & (19)

(19A) & (19B)

Transportation

of goods

(18) Services by way of transportation of goods-

(a) By ROAD [But service of goods transportation agency, courier agency will be taxable]

(b) By Inland waterways.

(19) Services by way of transportation of goods by an aircraft from a place outside India upto the

customs station of clearance in India.

(19A) Services by way of transportation of goods by an aircraft from customs station of clearance in

India to a place outside India. But this exemption is upto 30th day of September, 2021

(19B) Services by way of transportation of goods by a vessel from customs station of clearance in

India to a place outside India. But this exemption is upto 30th day of September, 2021.

(19C) Satellite launch services supplied by Indian Space Research Organisation, Antrix

Corporation Limited or New Space India Limited.

INDIA NEPAL

BHUTAN

6

Chapter 6: Exemptions CA. Raj Kumar

6.2

Analysis:

@ Boat (Exempted)

(Taxable)

@ Bullock Cart

@ Tonga

(Taxable) @ Hand Rickshaw

@ etc.

Service of Transportation of goods by aircraft or vessel in relation to export of Goods

exempted from GST. Moreover service of transportation of goods by air from outside

India to India is also exempted.

JAL

INLAND WATER- WAYS

OTHERS

VAYU

THAL

BY RAIL

BY ROAD

G.T.A. & Courier

(Taxable)

OTHERS

(Exempted)

7.1

Chapter

Computation of GST

Rule 7 of CGST Rules 2017: RATE AND VALUE UNDER COMPOSITION SCHEME:

SN Category of registered persons Rate of tax

1. Manufacturers, other than manufacturers of such

goods as may be notified by the Government.

0.5% of the turnover in the State or Union territory

2. Restaurant / catering services 2.5% of the turnover in the State or Union territory

3. Any other supplier 0.5% of the turnover of TAXABLE supplies of goods

and services in the State or Union territory

4. Registered persons not eligible under the

composition levy under sub-sections (1) and (2), but

eligible to opt to pay tax under Section 10(2A).

3% of the turnover of supplies of goods and services

in the State or Union territory.

7

8.1

Chapter

Reverse Charge Mechanism

Question: How the GST will be levied on remuneration paid by companies to the independent directors or those directors who are not the employee of the said company?

Ans:

Leviability of GST on remuneration paid by companies to the PART

TIME directors, who are NOT an employee of the said company

Fees liable to GST under RCM: In respect of such directors who are not the employees of the said company, the

services provided by them to the Company, in lieu of remuneration as the consideration for the said services, are

clearly outside the scope of Schedule III of the CGST Act and are therefore taxable. Moreover the recipient of the

said services i.e. the Company is liable to discharge the applicable GST on it on reverse charge basis.

Leviability of GST on remuneration paid by companies to the directors,

who are also an employee [Whole Time Director] of the said company

Work in dual capacity: Once, it has been ascertained whether a director, irrespective of name and designation, is an

employee, it would be pertinent to examine whether all the activities performed by the director are..

In the course of employer-employee relation (i.e. a “contract OF service”) or

is there any element of “contract FOR service”.

“Contract OF service”

(Employer-employee relation )

“Contract FOR service”.

TDS scenario: Treatment of the Director’s

remuneration is also present in the Income Tax Act,

1961 wherein the salaries paid to directors are subject

to 'TDS' under Section 192 of the Income Tax Act, 1961 .

TDS scenario: However, in cases where the

remuneration is in the nature of professional fees and not

salary, the TDS is liable for deduction under Section 194J of the IT Act.

8

Chapter 8: Reverse Charge Mechanism CA. Raj Kumar

8.2

Salary not liable to GST: Accordingly, it is clarified

that the part of Director’s remuneration which are

declared as “Salaries’ in the books of a company and

subjected to TDS under Section 192 of the IT Act, are

not taxable being consideration for services by an

employee to the employer in the course of or in

relation to his employment in terms of Schedule III of the CGST Act, 2017.

Fess liable to GST under : It is further clarified that the

part of employee Director’s remuneration which is

declared separately other than “salaries’ in the

Company’s accounts and subjected to TDS under Section

194J of the IT Act as Fees for professional or Technical

Services shall be treated as consideration for providing

services which are outside the scope of Schedule III of the CGST Act, and is therefore, taxable.

Moreover the recipient of the said services i.e. the

Company, is liable to discharge the applicable GST on it on reverse charge basis.

9.1

Chapter

Invoice

CGST RULES, 2017

Rule 48: Manner

of issuing invoice

(1) The invoice shall be prepared in triplicate, in the case of supply of goods, in the following

manner, namely,-

(a) The original copy being marked as ORIGINAL FOR RECIPIENT;

(b) The duplicate copy being marked as DUPLICATE FOR TRANSPORTER; and

(c) The triplicate copy being marked as TRIPLICATE FOR SUPPLIER.

(2) The invoice shall be prepared in duplicate, in the case of the supply of services, in the

following manner, namely,-

(a) The original copy being marked as ORIGINAL FOR RECIPIENT; and

(b) The duplicate copy being marked as DUPLICATE FOR SUPPLIER.

(3) The serial number of invoices issued during a tax period shall be furnished electronically

through the common portal in FORM GSTR-1.

E-Invoice: (4) The invoice shall be prepared by such class of registered persons

whose aggregate turnover in a financial year exceeds Rs.500 crore

by including such particulars contained in FORM GST INV-01

after obtaining an Invoice Reference Number

by uploading information contained therein on the Common Goods and Services Tax

Electronic Portal in such manner and subject to such conditions and restrictions as may

be specified in the notification.

Provided that the Commissioner may, by notification, exempt a person or a class of registered

persons from issuance of invoice under this sub-rule for a specified period, subject to such

conditions and restrictions as may be specified in the said notification.

Notification @ E Invoicing :- Hereby notifies registered person,

Whose aggregate turnover in any preceding financial year from 2017-18

onwards exceeds Rs.500 crore , as a class of registered person

9

Chapter 9: Invoice CA. Raj Kumar

9.2

who shall prepare invoice and other prescribed documents, in terms of Rule 48(4)

in respect of supply of goods or services or both

to a registered person or

for exports.

other than a Special Economic Zone unit and those referred to in Rule

54(2),(3),(4),(4A),

Rule 54 (2) of said Rules, Insurance company, Banking

company/NBFC/Financial Institution

Rule 54 (3) of said Rules, Goods transport agency

Rule 54 (4) of said Rules, Passenger Transporter

Rule 54 (4A) of said Rules, Cinema halls

Registered person referred to in section

14 of the IGST Act, 2017.

OIDAR supplier

Rule 46: Tax

invoice: content

Subject to Rule 54, a tax invoice referred to in section 31 shall be issued by the registered person

containing the following particulars, namely,-….

………………..

(r) Quick Response code, having embedded Invoice Reference Number (IRN) in it, in case

invoice has been issued in the manner prescribed under Rule 48(4) [E- Invoice]

Provided that the Board may, on the recommendations of the Council, by notification,

specify-

The number of digits of HSN code for goods or services that a class of registered persons

shall be required to mention; or

A class of supply of goods or services for which specified number of digits of HSN code

shall be required to be mentioned by all registered

taxpayers; and

The class of registered persons that would not be required to mention the HSN code

for goods or services.

Annual Turnover in the preceding Financial Year Number of Digits of HSN code

Upto ` 5 Crore 4 Digit

More than `5 crore 6 Digit

CA. Raj Kumar Chapter 9: Invoice

9.3

IN CASE OF NORMAL INVOICING: Provided also that the Government may, by notification,

on the recommendations of the Council, and subject to such conditions and restrictions as

mentioned therein, specify that the tax invoice shall have Quick Response (QR) code.[FOR

PAYMENT PURPOSE]

NOTIFICATION No. 71/2020: IN CASE OF NORMAL INVOICING

An invoice issued by a registered person, whose aggregate turnover in any preceding financial

year from 2017-18 onwards exceeds Rs.500 crore,

to an unregistered person (hereinafter referred to as B2C invoice),

shall have Dynamic Quick Response (QR) code:

[other than those referred to in

Rule 54 (2) of said Rules, Insurance company, Banking

company/NBFC/Financial Institution

Rule 54 (3) of said Rules, Goods transport agency

Rule 54 (4) of said Rules, Passenger Transporter

Rule 54 (4A) of said Rules, Cinema halls

Registered person referred to in section

14 of the IGST Act, 2017.

OIDAR supplier

QR Code through DIGITAL DISPLAY: Provided that where such registered person makes a

Dynamic Quick Response (QR) code available to the recipient through a digital display,

Such B2C invoice issued by such registered person containing cross-reference of the

payment using a Dynamic Quick Response (QR) code,

shall be deemed to be having Quick Response (QR) code.

11.1

Chapter

Registration Who is required to take Registration?

Mandatory Registration

Sec. 24

NO Registration

Section: 23 Registration After crossing the

Limit of ` 20/10 LAKH: Sec. 22

Person making

supply which is NON TAXABLE

/EXEMPTED

(Exclusively)

Agriculturist means an

individual or a

Hindu Undivided

Family who

undertakes

cultivation of land–

NOTIFIED

PERSONS: eg

supplier where

his supplies

exclusively fall

under RCM

# Supplier making taxable supply if his

AGGREGATE TURNOVER in a financial

year exceeds the limit of ` 20 lakh.

However if the person makes TAXABLE

SUPPLIES from ANY of the special

category states then the limit will be

reduced to ` 10 lakh.

HOW TO PROCEEDS….

Step 1: Find out aggregate turnover.

Step 2: Check the applicable limit for the

person. (if made taxable supplies from

any of the 4 special category state, then

limit of ` 10 lakh shall be applicable)

otherwise limit of ` 20 lakh shall apply

Step 3: If the aggregate turnover exceed

the applicable limit (` 20/10 /40 lakh) then

the person will be required registration in

all those states/UT FROM where he made

TAXABLE SUPPLIES.

…………………………………………

# Existing registered person: need

compulsory migration and required

registration if aggregate turnover exceeds ` 20 /10 lakh.

# Transferee/Successor: Transferee/

Successor need registration afresh.

# Transferee (transfer under scheme,

order of high court etc.): new owner

required registration afresh.

# Voluntarily Registration

Person making INTER STATE TAXABLE

supply (However for taxable supply of services

and for Handicraft goods exemption limit of `20

/10 lakh will be available)

Casual Taxable Person(However for handicraft

goods exemption limit of `20 /10 lakh will be

available)

Non Resident taxable person.

Person required to pay tax under RCM

Taxable person u/s 9(5) [3 Specified services:

transportation, accommodation, misc. utilities]

Person making supply on behalf of other taxable

person (However for taxable supply of services

exemption limit of `20 /10 lakh will be

available)

E-Commerce Operator (other than sec. 9(5).

OIDAR supplier from abroad to a person other

than Registered Taxable person.

Input service Distributor (whether or not

separately registered under the act)

TDS Deductor (whether or not separately reg.

under the act)

TCS collector (whether or not separately reg.

under the act)

Other specified person

11

Chapter 11: Registration CA. Raj Kumar

11.2

Registration limit of ` 40 lakh

The Central Government, hereby specifies as the category of persons exempt from obtaining

registration upto aggregate turnover of ` 40 lakh ie the person required to get registration only

after the limit of ` 40 lakh.

Any person;

Who is engaged in EXCLUSIVE SUPPLY OF GOODS and

Whose aggregate turnover in the financial year does not exceed ` 40 lakh.

But limit of ` 40 lakh will not be applicable in following cases ie in the following cases either the

person required to get mandatory registration or limit of ` 10/20 Lakh

(i If Persons required to take compulsory registration under section 24of the said Act;

(ii) If persons engaged in making supplies of 3 types of specified goods (Tobacco, Pan Masala,

Icecream)

(iii) If the persons engaged in making intra-State supplies in the States of Arunachal Pradesh,

Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura,

Uttarakhand;

(iv) If the persons takes voluntary registration.

When to

take

registration

Generally registration is required to be obtained within 30 days from the date on which he

becomes liable to registration.

In special cases:

Casual Taxable Person and Non Resident:

Application for RC : (5 Days in advance) The person shall apply for registration at least 5

DAYS PRIOR to commencement of business in and such person shall make taxable supplies only

after issuance of RC.

Period of RC: (90 +90 days) RC issued to such persons shall be valid for a period of 90 days +90

days OR as specified in application for reg. from the effective date of registration (whichever is

earlier).

Advance deposit of Tax: such person MAY deposit advance estimated tax liability for the period

specified in application at the time of application for registration on the basis of TRN. However if

applied for extension then SHALL deposit advance tax on estimation basis for such extended

period. Such amount shall be credited in his E- cash Ledger account.

Circular No. 71/45/2018: Clarifications of issues under GST related to casual taxable person

Issue Clarification

Whether the amount required to

be deposited as advance tax

should be 100% of the estimated

gross tax liability or the

estimated tax liability payable in

It is accordingly clarified that the amount of advance tax

which a casual taxable person is required to deposit while

obtaining registration should be calculated after

considering the due eligible ITC which might be

available to such taxable person.

CA. Raj Kumar Chapter 11: Registration

11.3

cash should be calculated after

deducting the due eligible ITC

which might be available to

CTP?

As per section 27 of the Central

Goods and Services Tax Act,

2017, period of operation by

causal taxable person is ninety

days with provision for extension

of same by the proper officer for

a further period not exceeding

ninety days. Various

representations have been

received for further extension of

the said period beyond the period

of 180 days, as mandated in law.

It is clarified that in case of long running exhibitions (for

a period more than 180 days), the taxable person

cannot be treated as a CTP and thus such person would

be required to obtain registration as a normal taxable

person.

While applying for normal registration the said person

should upload a copy of the allotment letter granting him

permission to use the premises for the exhibition and the

allotment letter/consent letter shall be treated as the

proper document as a proof for his place of business.

In such cases he would not be required to pay advance

tax for the purpose of registration.

He can surrender such registration once the exhibition is

over.

Registration after Survey/ Investigation etc.: It is found during any survey, inspection, search,

enquiry or any other proceeding that- Person required registration but fails to get register himself:

- then such officer may register the said person on a temporary basis and issue an order

- and it will be effective from the date of order of Registration.[penalty etc. will also be

there]

- And such person shall within 90 Days

[within 30 days of order of Appellate Authority if file appeal against grant of such

temporary registration]

from the date of grant of such registration shall file an application for registration in

prescribed form and such RC will be effective from the date of ORDER by officer.

Where

and

how many

Registratio

ns are

required

Place of Registration: Every person who is liable to be registered shall apply for registration in

EVERY SUCH STATE/UT from where he makes a taxable supply.

What about TWI: Every person who makes a supply FROM the Territorial Waters of India shall

obtain registration in the Coastal State or Union territory where the NEAREST point of the

appropriate baseline is located.

Number of Registration:

One state/UT@ one Registration

- In general if the person making taxable supplies from one state/ UT then he is required to take

registration one registration.

Chapter 11: Registration CA. Raj Kumar

11.4

One state/UT @Multiple Registration:

- The person MAY obtain a SEPARATE REGISTRATION for each Place of Business

located within the state/UT.

- A person having a unit(s) in a Special Economic Zone or being a Special Economic Zone

developer shall make a separate application for registration distinct from his other units

located outside the Special Economic Zone with in the same state.

- Every person being an Input Service Distributor shall make a separate application for

registration as such Input Service Distributor even with in the same state.

Note: No Place of Business shall be granted registration to pay tax under composition scheme if

any of the Place of Business of the same person paying tax under normal scheme.

Multiple state @ single Registration

In case of unique identity number embassy/ UN etc is required to take only one registration

which is valid for all over India.

How Main document for registration:

PAN (Generally)

TAN (In case of TAX DEDUCTOR/COLLECTOR)

Any other document (In case of NR eg. Self- Attested Copy of Passport)

Now Aadhaar mandatory for registration purpose at the time of registration [But not for

non-citizen] otherwise registration will be granted only after physical verification of place

of business in maximum 60 days. Aadhaar card required for ……

- Individual;

- authorised signatory of all types;

- Managing and Authorised partner; and;

- Karta of a Hindu undivided family.

- Member of Association of Person.

- Etc.

Registration process:

Part A of Application:

(i) Disclose PAN (to whom it is needed), Mob. No., Email id.

(ii) Verification of above : by GST PORTAL, by OTP (for mob no and Email)

(iii) Generation of Transaction reference number [TRN] by portal which is valid for 15 days.

Part B of Application:

(iv) File registration APPLICATION by using reference no.

(v) Acknowledgement [Application reference number i.e. ARN] by portal on mob no. and

Email id.

CA. Raj Kumar Chapter 11: Registration

11.5

(vi) Note: Casual taxable person shall be given temporary id number[TRN] for making

advance deposit of tax on estimation basis. After payment of advance tax ARN shall be

generated and thereafter registration certificate shall be granted.

(vii) The application forwarded to officer and the officer verifies the application along with

documents. Whether Officer is Satisfied

Note: 1 Where a person, fails to undergo authentication of Aadhaar number or does not opt for

authentication of Aadhaar number, the notice may be issued not later than 21 days from the date of

submission of the application.

Note: 2 Where a person, fails to undergo authentication of Aadhaar number or does not opt for

authentication of Aadhaar number, the registration shall be granted only after physical verification of

the place of business in the presence of the said person.

Note: 3 If no response by the officer within 3 days from application date or 7 days from receiving

the clarification then the registration shall be deemed to be granted.

(viii) A Registration certificate shall be issued in firm GST REG -6 mentioning principal

place of business and additional places therein as declared in application form.

And the RC will be effective:

From the date on which applicant liable for registration [if application made within

time]

Otherwise it will be effective from the date of GRANT of Registration.

Structure of RC: State wise PAN based GSTIN-----

First two digits: State code

Next 10 digit : PAN

Next digit: SN of Registration in same state on same PAN

Next digit: blank for further use

Next digit: Checksum digit (department use)

YES

Then the officer GRANT

registration within 3

working days from the

date of submission of

application

NO

Then the officer intimate the deficiency within 3

working days from the date of submission of application.

And applicant shall provide clarification or satisfy

officer within 7 working days of receipts of information.

After this the officer is-

Satisfied: ok grant registration within 7

working days.

Not satisfied: Reject the application.

Chapter 11: Registration CA. Raj Kumar

11.6

Migrated Person

Old registered taxable person required to get registration WEF appointed date (1-07-

2017) subject to above.

Old registered person having PAN shall be granted registration on provisional basis

and RC shall be made available on the PORTAL.

After that such person shall submit an application along with information and

documents.

After that RC in form GST REG -6 shall be made available electronically on

common portal.

Cancellation: Every person registered under any of the existing laws, who is not

liable to be registered under the Act may,on or before 31/03/2018,at his option,

submit an application electronically at the common portal for the cancellation of

registration granted to him and the proper officer shall, after conducting such enquiry

as deemed fit, cancel the said registration.

Amendment

in RC

Changes in Core fields: [Business Name Change, Address change, change in

Directors/Partners etc.]

Every RC/UIN holder shall inform the Proper Officer ANY changes in the information furnished

at the time of application of thereafter.

However officer may approve within 15 working days or reject (after giving SCN and

OPPORTUNITY OF BEING HEARD) such changes.

Changes in None core fields: [Change in Phone Number, E-mail id of authorised signatory]

Every RC/UIN holder shall inform the Proper Officer ANY changes in the information furnished

at the time of application of thereafter.

Cancellation

of

Registration

On Application: cancellation on application [Along with the detail of inputs, work in

progress, finished goods, capital goods] By registered taxable person OR by legal heirs (in case

of death), manner and period as may be prescribed, having regard to:

If not to provide bank details with-in 45 days of registration,

discontinuation of business,

transfer of business,

amalgamation,

demerger or otherwise dispose of,

change in constitution of business or

registered person no longer liable to registered.

A TDS deductor or TCS Collector – now no longer remain to deduct or collect.

CA. Raj Kumar Chapter 11: Registration

11.7

BY Proper officer himself:

On contravention of act or rules, [eg. issue bogus invoices etc.]

Person paying tax under composition scheme has not furnished return for 3 consecutive

tax periods,

Any Registered person (other than immediate preceding) has not filed return for a

continuous period of 6 months,

person having reg. on voluntarily basis has not commenced business within 6 months from

the date of registration,

Registration obtained by means of fraud etc.

Then the proper officer may cancel the registration FROM SUCH DATE as he may deem

[prospectively or retrospectively] after giving SCN and opportunity of being heard However if

found satisfactory reply then drop the proceedings and pass an order.

Note: During pendency of the proceedings relating to cancellation of registration, the proper

officer may suspend the registration for such period and in such manner as may be

prescribed.

Liability on cancellation:

Every registered person whose registration is cancelled shall pay an amount, by way of debit in

the

E-Credit ledger or

E-Cash ledger,

equivalent to the credit of input tax in respect of inputs held in stock and inputs contained in

semi-finished or finished goods held in stock or capital goods or plant and machinery on

the day immediately preceding the date of such cancellation OR the output tax payable on

such goods, whichever is higher, calculated in such manner as may be prescribed:

Provided that in case of capital goods or plant and machinery, the taxable person shall pay an

amount equal to the input tax credit taken on the said capital goods or plant and

machinery, reduced by such percentage points as may be prescribed OR the tax on the

transaction value of such capital goods or plant and machinery under section 15,

whichever is higher.

On cancellation no effect on Prior period liabilities: Such cancellation does not affect the

liability of taxable person for any period prior or after the date of cancellation.

Revocation

Where registration is cancelled by Proper Officer, any registered taxable person may apply for

revocation of such cancellation within 30 days of cancellation and Proper Officer may accept or

reject the application with in 30 days. (after giving SCN and opportunity of being heard).

Where registration is cancelled because non filing of return then revocation application shall be

files only after filing return and payment of tax, interest, penalties and late fee.

Chapter 11: Registration CA. Raj Kumar

11.8

Moreover where registration is cancelled with retrospective effect then first of all file application

for revocation and after that need to file all due returns till revocation order with in 30 days.

Filing of application for revocation of cancellation of registration: Circular No. 99/18/2019

Prospective

cancellation

Where the registration has been cancelled with effect from the date

of order of cancellation of registration, all returns due till the date of

such cancellation are required to be furnished before the

application for revocation can be filed.

Further, in such cases, all returns required to be furnished in respect of

the period:

o from the date of order of cancellation

o till the date of order of revocation of cancellation of registration

have to be furnished within a period of 30 days from the date of the order

of revocation

Retrospective

Cancellation

Where the registration has been cancelled with retrospective effect,

the common portal does not allow furnishing of returns after the

effective date of cancellation.

In such cases it was not possible to file the application for revocation of

cancellation of registration. For enabling filing of application for

revocation of cancellation of registration, subject to the condition that

all returns relating to the period

o From the effective date of cancellation of registration

o till the date of order of revocation of cancellation of registration

shall be filed within a period of 30 days from the date of order of such

revocation of cancellation of registration

MISC:

RC Display: Display RC in a prominent location at his principal and additional place (s) of

business and shall display the registration number on the name board exhibited at entry of his

principal place of business and any other place of business.

All Documents/notices @ electronically and Digital signed: Each document filed online shall be

signed by person specified. All orders and notices under this chapter shall be issued electronically

by proper officer.

All applications/replies @ electronically and digitally signed: All applications, including reply,

if any, to the notices, returns including the details of outward and inward supplies, appeals or any

other document required to be submitted under the provisions of these rules shall be so submitted

electronically with digital signature certificate or through e-signature as or through e signature.

CA. Raj Kumar Chapter 11: Registration

11.9

Physical verification of business premises:

*Due to failure of Aadhaar authentication or

*Due to not opting for Aadhaar authentication before the grant of registration, or

*Due to any other reason after the grant of registration,

Officer may get such verification of the place of business, in the presence of the said person, done and

the verification report along with the other documents, including photographs, shall be uploaded in on

the common portal within a period of 15 working days following the date of such verification.

Clarification in respect of transfer of ITC in case of death of sole proprietor: Cir No. 96/15/2019

In case of death of sole proprietor if the business is continued by any person being transferee or successor, the

input tax credit which remains un-utilized in the electronic credit ledger is allowed to be transferred to the

transferee as per provisions and in the manner stated below –

(a)Registration liability of the transferee/successor: As per provisions of section 22 (3) of the CGST Act, 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, where a business is transferred to another person for any reasons including death of the

proprietor.

(b)Cancellation of registration on account of death of the proprietor: Section 29 of the CGST Act, allows the

legal heirs in case of death of sole proprietor of a business, to file application for cancellation of registration.

The GSTIN of transferee to whom the business has been transferred is also required to be mentioned to link the

GSTIN of the transferor with the GSTIN of transferee.

(c)Transfer of input tax credit and liability: In case of death of sole proprietor, if the business is continued by

any person being transferee or successor of business, it shall be construed as transfer of business. section 18 of

the CGST Act, allows the registered person to transfer the unutilized input tax credit lying in his electronic credit

ledger to the transferee in the manner prescribed in rule 41 of the CGST Rules, where there is specific provision

for transfer of liabilities.

The transferor and the transferee/successor shall jointly and severally be liable to pay any tax, interest or any

penalty due from the transferor.

Furthermore, Where a person, liable to pay tax, interest or penalty under the CGST Act, dies, then the person

who continues business after his death, shall be liable to pay tax, interest or penalty due from such person under

this Act. It is therefore clarified that the transferee/successor shall be liable to pay any tax, interest or any penalty

due from the transferor in cases of transfer of business due to death of sole proprietor.

(d)Manner of transfer of credit: In case of transfer of business on account of death of sole proprietor, the

transferee/successor shall file Application in respect of the registration which is required to be cancelled on

account of death of the sole proprietor.

Upon acceptance by the transferee/successor, the un-utilized input tax credit specified in such application shall

be credited to his electronic credit ledger of transferee/successor.

Chapter 11: Registration CA. Raj Kumar

11.10

CGST Rules, 2017 – Registration

Rule 8:

Application for

registration

(4) Using the reference number generated under sub-rule (3), the applicant shall electronically

submit an application in Part B of FORM GST REG-01, duly signed or verified through

electronic verification code, along with the documents specified in the said Form at the

common portal, either directly or through a Facilitation Centre notified by the Commissioner.

(4A) The applicant shall, while submitting an application under sub-rule (4), with effect from

01.04.2020, undergo authentication of Aadhaar number for grant of registration.

(4A) Where an applicant,

Other than a person notified under section 25(6D) [ie. NON CITIZEN]

opts for authentication of Aadhaar number,

he shall, while submitting the application under sub-rule (4),

with effect from 21st August, 2020, undergo authentication of Aadhaar number and

the date of submission of the application in such cases shall be

the date of authentication of the Aadhaar number, or

15 days from the submission of the application in Part B of FORM GST REG-

01 under sub-rule (4),

whichever is earlier.

(5) On receipt of an application under sub-rule (4), an acknowledgement shall be issued

electronically to the applicant in FORM GST REG-02.

(6) A person applying for registration as a casual taxable person shall be given a temporary

reference number by the common portal for making advance deposit of tax in accordance with

the provisions of section 27 and the acknowledgement under sub-rule (5) shall be issued

electronically only after the said deposit.

Rule 9

Verification of

the application

and approval

(1) The application shall be forwarded to the proper officer who shall examine the application

and the accompanying documents and if the same are found to be in order, approve the grant

of registration to the applicant within a period of 3 working days from the date of submission of the application.

Registration After Physical Verification: Provided that

Where a person, other than a person notified under section 25(6D),[NON CITIZEN]

fails to undergo authentication of Aadhaar number as specified in Rule 8(4A) or

does not opt for authentication of Aadhaar number,

the registration shall be granted only after physical verification of the place of business in the presence of the said person, in the manner provided under Rule 25.

Alternate of Physical Verification @ Document Verification : Provided further that

the proper officer may, for reasons to be recorded in writing and

CA. Raj Kumar Chapter 11: Registration

11.11

with the approval of an officer not below the rank of Joint Commissioner,

in lieu of the physical verification of the place of business,

carry out the verification of such documents as he may deem fit.

(2) Where the application submitted under Rule 8 is found to be deficient, either in terms of

any information or any document required to be furnished under the said rule, or where the

proper officer requires any clarification with regard to any information provided in the application or documents furnished therewith,

He may issue a notice to the applicant electronically in FORM GST REG-03 within a

period of 3 working days

from the date of submission of the application and the applicant shall furnish such

clarification, information or documents electronically, in FORM GST REG-04, within a period of 7 working days from the date of the receipt of such notice.

Notice in 21 days: Provided that

Where a person,

other than a person notified under section 25(6D),

fails to undergo authentication of Aadhaar number as specified in Rule 8 (4A) or

does not opt for authentication of Aadhaar number,

the notice in FORM GST REG-03 may be issued

not later than 21 days from the date of submission of the application.

Explanation.- For the purposes of this sub-rule, the expression “clarification” includes

modification or correction of particulars declared in the application for registration, other than

Permanent Account Number, State, mobile number and e-mail address declared in Part

A of FORM GST REG-01.

(3) Where the proper officer is satisfied with the clarification, information or documents

furnished by the applicant, he may approve the grant of registration to the applicant within a

period of seven working days from the date of the receipt of such clarification or information or documents.

(4) Where no reply is furnished by the applicant in response to the notice issued under sub-

rule (2) or where the proper officer is not satisfied with the clarification, information or

documents furnished, he 4[may], for reasons to be recorded in writing, reject such application

and inform the applicant electronically in FORM GST REG-05.

(5) If the proper officer fails to take any action, -

(a) Within a period of 3 working days from

the date of submission of the application

in cases where a person successfully

undergoes authentication of Aadhaar

number or is notified under section 25(6D);

or

(b) Within the time period prescribed under

the proviso to sub-rule (2),

in cases where a person, other than a person

notified under section 25(6D), fails to

undergo authentication of Aadhaar

number as specified in Rule 8(4A); or

Chapter 11: Registration CA. Raj Kumar

11.12

(c) Within a period of 21 days from the date

of submission of the application

in cases where a person does not opt for

authentication of Aadhaar number; or

(d) within a period of 7 working days from the date of the receipt of the clarification,

information or documents furnished by the applicant under sub-rule (2),

the application for grant of registration shall be deemed to have been approved.

Rule 25:

Physical

verification of

business

premises in

certain cases

Where the proper officer is satisfied that the physical verification of the place of business of a

person is required

due to failure of Aadhaar authentication before the grant of registration, or

due to not opting for Aadhaar authentication before the grant of registration, or

due to any other reason after the grant of registration,

he may get such verification of the place of business, in the presence of the said person, done

and the verification report along with the other documents, including photographs, shall be

uploaded in FORM GST REG-30 on the common portal within a period of 15 working days

following the date of such verification.

13.1

Chapter

Manner of Payment

Section 50: Interest on delayed payment of tax

Interest for

belated period @

18% [max] for

belated period

(1) Every person who is liable to pay tax in accordance with the provisions of this Act or

the rules made thereunder, but fails to pay the tax or any part thereof to the Government

within the period prescribed, shall for the period for which the tax or any part thereof

remains unpaid, pay, on his own, interest at such rate, not exceeding 18%, as may be

notified by the Government on the recommendations of the Council.

Provided that the interest on tax payable

in respect of supplies made during a tax period and

declared in the return for the said period

furnished after the due date in accordance with the provisions of section 39,

except where such return is furnished after commencement of any proceedings under

section 73 or section 74 in respect of the said period,

shall be levied on that portion of the tax that is paid by debiting the electronic cash

ledger.

CBIC- 20/01/08/2019-GST:Administrative instructions for

recovery of interest on net cash tax liability w.e.f. 01.07.2017

1.Amended provisions of section 50 to provide for charging interest on the net cash

tax liability. The said amendment was to be made effective from a date to be notified by the

Government. Accordingly, the said provision was made effective w.e.f. 01.09.2020.

2. The GST Council, in its 39th meeting, held on 14th March, 2020 recommended interest to

be charged on the net cash tax liability w.e.f. 01.07.2017 and accordingly, recommended the

amendment of section 50 of the CGST Act retrospectively w.e.f. 01.07.2017. The

retrospective amendment in the GST laws would be carried out in due course through

suitable legislation.

3. Post amendment, there were apprehensions raised by taxpayers that the said notification

is issued contrary to the Council's recommendation to charge interest on net cash liability

w.e.f. 01.07.2017. Consequently, a press release, dated 26.08.2020 was issued to clarify the

position. Further, in order to implement the decision of the Council in its true spirit, and at

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Chapter 13: Manner of Payment CA. Raj Kumar

13.2

the same time working within the present legal framework, it has been decided to address

the issue through administrative arrangements, as under:

(a) For the period 01.07.2017 to 31.08.2020, field formations in your jurisdiction may

be instructed to recover interest only on the net cash tax liability (i.e. that portion of

the tax that has been paid by debiting the electronic cash ledger or is payable through cash ledger); and

(b) Wherever SCNs have been issued on gross tax payable, the same may be kept in

Call Book till the retrospective amendment in section 50 of the CGST Act is carried

out.

How to calculate

interest

(2) The interest under sub-section (1) shall be calculated, in such manner as may be

prescribed, from the day succeeding the day on which such tax was due to be paid.

Interest @ higher

% [24%

maximum]

(3) A taxable person

who makes an undue or excess claim of input tax credit under section 42(10) or

undue or excess reduction in output tax liability under section 43(10),

shall pay interest on such undue or excess claim or on such undue or excess reduction,

as the case may be, at such rate not exceeding 24%, as may be notified by the Government

on the recommendations of the Council.

14.1

Chapter

Return

CGST Rules, 2017

Rule. 67A. Manner

of furnishing of

return or details of

outward supplies by

short messaging

service facility

Notwithstanding anything contained in this Chapter,

for a registered person who is required to furnish a Nil return under section 39

in FORM GSTR-3B or

a Nil details of outward supplies under section 37 in FORM GSTR-1 or

a Nil statement in FORM GST CMP-08 for a tax period,

any reference to electronic furnishing shall include

o furnishing of the said return or the details of outward supplies or

statement

o through a short messaging service using the registered mobile number

and

the said return or the details of outward supplies or statement shall be

verified by a registered mobile number based One Time Password facility.

Explanation: For the purpose of this rule, a Nil return or Nil details of outward supplies

or Nil statement shall mean

a return under section 39 or

details of outward supplies under section 37 or

statement under rule 62,

for a tax period that has nil or no entry in all the Tables in FORM GSTR-

3B or FORM GSTR-1 or FORM GST CMP-08, as the case may be.

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Chapter 14: Return CA. Raj Kumar

14.2

Rule 80: Annual

return

[FORM: GSTR

9A,9B,9C]

(1) 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 nonresident taxable person,

shall furnish an annual return as specified under sub-section (1) of section 44

electronically in FORM GSTR-9 through the common portal either directly or through a

Facilitation Centre notified by the Commissioner:

Provided that a person paying tax under section 10 shall furnish the annual return in

FORM GSTR-9A.

(2) Every electronic commerce operator required to collect tax at source under section 52

shall furnish annual statement referred to in sub-section (5) of the said section in FORM

GSTR -9B.

(3) Every registered person other than those referred to in the proviso to section 35 (5)

,whose aggregate turnover during a financial year exceeds 2 crore rupees shall get his

accounts audited and he shall furnish a copy of audited annual accounts, in FORM

GSTR-9C, electronically.

Provided that for the financial year 2018-2019 and 2019-2020,

every registered person whose aggregate turnover exceeds 5 crore rupees

shall get his accounts audited as specified under section 35(5) and

he shall furnish a copy of audited annual accounts and a reconciliation statement, duly certified,

in FORM GSTR-9C for the said financial year, electronically

through the common portal either directly or through a Facilitation Centre notified by the Commissioner.

15.1

Chapter

E-Way Bill

Rule 138A

Documents and

devices to be

carried by a person-

in-charge of a

conveyance

(1) The person in charge of a conveyance shall carry—

(a) the invoice or bill of supply or delivery challan, as the case may be; and

(b) a copy of the e-way bill in physical form or the e-way bill number in electronic form or

mapped to a Radio Frequency Identification Device embedded on to the conveyance in

such manner as may be notified by the Commissioner:

Provided that nothing contained in clause (b) of this sub-rule shall apply in case of movement

of goods by rail or by air or vessel.

Provided further that in case of imported goods, the person in charge of a

conveyance shall also carry a copy of the bill of entry filed by the importer of such

goods and shall indicate the number and date of the bill of entry in Part A of FORM

GST EWB-01.

(2) In case,

Invoice is issued in the manner prescribed under Rule 48(4)[E-INVOICE]

the Quick Response] (QR) code having an embedded Invoice Reference

Number (IRN) in it, may be produced electronically,

for verification by the proper officer

in lieu of the physical copy of such tax invoice.

(2) A registered person may obtain an Invoice Reference Number from the common portal

by uploading, on the said portal, a tax invoice issued by him in FORM GST INV-1and

produce the same for verification by the proper officer in lieu of the tax invoice and such

number shall be valid for a period of thirty days from the date of uploading.

(3) Where the registered person uploads the invoice under sub-rule (2), the information in

Part A of FORM GST EWB-01 shall be auto-populated by the common portal on the basis

of the information furnished in FORM GST INV-1.

15