PROFILE – CA SURAJ AGRAWAL

PROFILE – CA SURAJ AGRAWAL

CA Suraj Agrawal is a Commerce Graduate [B.Com (H)] from Kolkata University and has

qualified CA in November 2005 in First Attempt from Kolkata. He has also secured All India 27th

Rank in CA-Foundation – 1st level (First Attempt – 70% marks).

Besides CA, he has completed Certification Course of International Taxation of the ICAI in

2009. He has also qualified CPA (Certified Public Accountant) examination from AICPA

(USA) in 2009 with more than 90 Marks in each of four papers in First Attempt [Presently, he is

inspired to complete CIMA, London as well as LLM in International Taxation (UK) by Year

2024]

He has started his career by joining Direct Tax Department of Reliance Industries Limited,

Mumbai and worked for near 2 years in core tax team. He has also worked in Taxation Division

of Chaturvedi & Shah (Chartered Accountants), Delhi followed by Tax Division of Ernst &

Young, Gurgaon, India (A Leading Big 4 Firm having International Presence). During the

working tenure of more than 4 years, he is exposed to in-depth theoretical and practical

knowledge of Direct Taxation & has a consultancy exposure in various industries including

Energy - Oil & Gas, Airlines, Retail, Infrastructure and Shipping Industries.

With the above academic and practical knowledge, he is in teaching profession from more than

10 years to serve professional students (taught 15,000 CA/CMAs Students till date). His in-

depth coverage of legal provisions in Tax with practical approach is very well recognized

among the students. He is also an associate member of ICAI and is also providing services as

Tax Consultant to various organisations.

He was also a member in WTO, FEMA & International Tax Study Group of the NIRC of the

ICAI for the year 2011-12 and was member of International Taxation & FEMA Research

Study Group of NIRC of the ICAI for the year 2010-11. He is regularly contributing tax articles

and various opinions on subjects of Direct Taxation including International Taxation in various

leading magazines [Taxmann] and professional forums.

CA Suraj Agrawal “CA Rank Holder, Qualified CPA (USA), B.Com(H)”

Email: [email protected] Contact: +91 85272 30445 / 011 4754 2530 FB: http://www.facebook.com/suraj.agrawal.564

https://www.youtube.com/channel/UCv-ybxFp_X9EWiei7YhZQmw

https://www.facebook.com/Surajagrawaltaxationclasses.satc

REVISED FEE STRUCTURE – CMA EXAM

OFFER - VALID TILL 15.05.2020

(PRICES ARE DISCOUNTED DUE TO LOCKDOWN)

SURAJ AGRAWAL TAX CLASS 8527230445 (WHATSAPP – 11am to 6pm)

TEAM – VANSH & JATIN

ONLINE PAYMENT – ONLINE CLASS DELIVERY

(Pay in 2 monthly installments)

SUBJECTS CLASS VALIDITY TILL

31.07.2020

CLASS VALIDITY TILL

31.12.2020

CLASS VALIDITY TILL

30.06.2021

INTER - DT 4,000 6,000 7,500

INTER - IDT 4,000 5,000 6,500

INTER - OMSM 3,000 5,000 6,000

INTER - DT+IDT 7,000 10,000 12,000

(BEST OFFER)

INTER - IDT+OMSM 6,500 9,500 12,000

INTER -DT+IDT+OMSM 10,000 15,000 17,000

(BEST OFFER)

FINAL - DT 4,500 7,000 8,000

FINAL - IDT 4,000 5,000 6,500

FINAL - DT + IDT 7,500 11,000 12,000

(BEST OFFER)

NOTE:

1. E-BOOKS WILL BE PROVIDED (100%). No Restrictions. Open Files.

2. PRINTED BOOKS COST ARE NOT INCLUDED IN ABOVE FEE

3. COURIER CHARGES & PRINTED BOOK COST WILL BE DICUSSED AT THE TIME OF ADMISSION.

“Thanks to all of you for making us proud”

Congratulations to all of you

CMA FINAL DT & IDT RESULT – DEC 2019 EXAM

SATC – 01147542530 / 8527230445

(NO FACE TO FACE CLASS IN CMA FINAL)

S. No. Name IDT Marks DT Marks Status Remarks

1 Varun Khattar (BOTH) 66 40 now CMA A.I.R. - 30

2 Deepesh Hoiyani 80 - now CMA IDT Highest in 4 Paper

3 Satish Jangra 72 - now CMA IDT 2nd Highest in 4

Paper

4 Pranshu Singhal 72 - now CMA IDT Highest in 4 Paper

5 Poonam Khemka 68 - now CMA IDT Highest in 4 Paper

6 Garima 68 - now CMA IDT Highest in 4 Paper

7 Tushar Khattar (BOTH) 63 43 now CMA IDT Highest in all 8 Paper

8 Rahul Kumar Ojha 62 - Now in Group 3 -

9 Amita Negi 60 - Now in Group 3 IDT Highest in 4 Paper

10 Rohit Saini (BOTH) 60 58 now CMA IDT Highest in all 8 Paper

11 Pooja Negi - 59 now CMA DT Highest in 4 Paper

12 Brijesh Kumar 54 - Now in Group 3 -

13 Rinku Kumar Bind - 54 Now in Group 4 DT Highest in 4 Paper

14 Apoorv Jaiswal - 54 now CMA -

15 Vikas Kumar Jha 53 - now CMA -

16 Shivcharan Singh S. 53 - Now in Group 3 -

17 Prateek Kumar Masih 49 - Now in Group 3 -

18 Shivam Garg (BOTH) 49 52 now CMA -

19 Sachin Sharma (BOTH) 48 - now CMA -

20 Ashmeet 47 - Now in Group 3 -

NOTICE: ALL ABOVE STUDENTS ARE REGISTERED STUDENTS OF SATC IN REGULAR

CMA FINAL DT/IDT/BOTH PENDRIVE/VIDEO CLASS & NOT ONLY A YOUTUBE OR

TELEGRAM CHANNEL SUBSCRIBER OR MERELY REFERRED OUR BOOKS.

S. NO. NAME OF STUDENTS REGISTRATION NUMBER MARKS IN IDT EXAM

1 PARAS JAIN (AIR 42) 4141009584 84 Jun-19

2 AMARDEEP 4151002203 79 Dec-18

3 SHREY GUPTA 4151004191 77 Dec-18

4 VASUDEVAN KALASHASTHY 4161004499 75 Jun-19

5 ASHISH SINGH 4142005774 74 Dec-18

6 PANKAJ TRIVEDI 14092006037 68 Jun-19

7 RAVI GUPTA 4132003787 65 Dec-18

8 SHUBHAM GUPTA 4151001994 64 Dec-18

9 KETAN JAIN 4112022182 64 Dec-17

10 JAVED AKHTAR 4122012930 63 Dec-18

11 KAPIL SHARMA 4152003027 63 Jun-19

12 MD. SAIF 4142003895 63 Dec-17

13 MOHD. ADIL 4142010375 61 Jun-18

14 MANISHA BHATIA 4162001141 61 Jun-19

CONGRATULATIONS CMA FINAL INDIRECT TAX/GST RESULT FROM SATC

14 MANISHA BHATIA 4162001141 61 Jun-19

15 RAHUL YADAV 4151003566 60 Jun-19

16 SYED SHABAD ALAM 3151001485 60 Jun-19

17 SHIVEK MADAAN 4152000047 59 Jun-19

18 ANKITA NAGPURKAR 4151008311 58 Jun-18

19 NIKHIL 4152006069 58 Jun-19

20 VISHAL CHAUHAN 4122005659 57 Dec-18

21 NAVEEN GOSWAMI 414100550 56 Jun-19

22 ANURAG PANT 4132012214 56 Dec-17

23 NISHTHA AGRAWAL 4121009440 55 Jun-18

24 HIMANSHU TYAGI 4132000652 55 Jun-18

25 APOORV JAISWAL 4142003143 55 Jun-19

26 SHILPA AGGARWAL 4151003054 54 Jun-18

27 HIMANSHU JAIN 4142010175 54 Jun-18

28 ANUP 4121013398 53 Dec-18

29 MD. SHAHNAWAZ HUSSAIN 4132009413 53 Dec-17

30 AMIT KR KASHYAP 4142005646 52 Dec-18

31 SUMIT 4131008313 49 Jun-19

32 AMIT YADAV 4121000259 44 Jun-19

SURAJ AGRAWAL TAX CLASSESLAXMINAGAR I 8527230445 , 01147542530

CONGRATULATIONSCONGRATULATIONSCONGRATULATIONSCONGRATULATIONS

CMA INTER IDT RESULT FROM SATC

DEC 2017 EXAM RESULT

1. ARUN KUMAR 76 Marks in IDT DEC 2017

2. HEENA KAPOOR 73 Marks in IDT DEC 2017

3. VISHAL SINGH 73 Marks in IDT DEC 2017

4. RINKU 72 Marks in IDT DEC 2017

5. PARDEEP KUMAR 70 Marks in IDT DEC 2017

6. VAISHALI CHAUHAN 70 Marks in IDT DEC 2017

7. POONAM KHEKMA 68 Marks in IDT DEC 2017

8. OM PRAKASH 67 Marks in IDT DEC 2017

9. GANU RAJ DHODY 66 Marks in IDT DEC 2017

10. KANCHAN 66 Marks in IDT DEC 2017

11. GURPREET 65 Marks in IDT DEC 2017

12. HIMANSHU SAJWAN 63 Marks in IDT DEC 2017

13. OM PRAKASH JHA (AIR 17) 62 Marks in IDT DEC 2017

14. SUMIT SAINI (AIR 35) 60 Marks in IDT DEC 2017

15. PRAPTI BANSAL 59 Marks in IDT DEC 2017

16. MD. SHADAB ARYUM 56 Marks in IDT DEC 2017

17. JYOTI ADHIKARI 56 Marks in IDT DEC 2017

18. DURGA PRASAD 55 Marks in IDT DEC 2017

19. ANURAG CHAUDHARY 55 Marks in IDT DEC 2017

20. SIMRAN KAUR 53 Marks in IDT DEC 2017

21. PARVESH KUMAR 52 Marks in IDT DEC 2017

22. ASHIT SINGH NEGI 52 Marks in IDT DEC 2017

23. MANOJ KUMAR 51 Marks in IDT DEC 2017

…….& Many More

SURAJ AGRAWAL TAX CLASSES

CONGRATULATIONSCONGRATULATIONSCONGRATULATIONSCONGRATULATIONS

CMA INTER IDT/GST RESULT FROM SATC

June 2018 EXAM - 1st

GST BATCH

1. PREETI RAWAT (VIDEO) 79 Marks in IDT/GST June 2018

2. ASHISH SHIYANI (F2F) 76 Marks in IDT/GST June 2018

3. CHANDA (F2F) 75 Marks in IDT/GST June 2018

4. RAJNESH GUPTA (Video) 74 Marks in IDT/GST June 2018

5. GAURANG RAJPAL (F2F) 73 Marks in IDT/GST June 2018

6. ATUL JAYANT (Video) 71 Marks in IDT/GST June 2018

7. AMIT SHARMA (F2F) 70 Marks in IDT/GST June 2018

8. ROHAN HEERA (Video) 70 Marks in IDT/GST June 2018

9. ABHINAV PANNU (Video) 69 Marks in IDT/GST June 2018

10. SOUVAGYA GERU (Video) 69 Marks in IDT/GST June 2018

11. PRADEEP SINGH KANDARI (Video) 69 Marks in IDT/GST June 2018

12. MAHIMA THREJA (Video) 68 Marks in IDT/GST June 2018

13. VAIBHAV SRIVASTAVA (Books) 68 Marks in IDT/GST June 2018

14. HITESHEE SHARMA (Video) 68 Marks in IDT/GST June 2018

15. ANKUSH GUPTA (F2F) 67 Marks in IDT/GST June 2018

16. SNEHA (Video) 66 Marks in IDT/GST June 2018

17. MOHIT UPADHYAY 65 Marks in IDT/GST June 2018

18. SANJOLI JAIN (F2F) 65 Marks in IDT/GST June 2018

19. SHIVAM SINGH (F2F) 64 Marks in IDT/GST June 2018

20. KARTIK BHATT (Video) 64 Marks in IDT/GST June 2018

21. HIMANI AGGARWAL (F2F) 64 Marks in IDT/GST June 2018

22. ANURAG 63 Marks in IDT/GST June 2018

23. ANKIT SINGH 63 Marks in IDT/GST June 2018

24. SALONI MITTAL (F2F) 63 Marks in IDT/GST June 2018

25. SHOBHIT KUMAR YADAV (Video) 62 Marks in IDT/GST June 2018

26. DINESH SINGH 62 Marks in IDT/GST June 2018

27. ROHIT SATI (Video) 62 Marks in IDT/GST June 2018

28. KRATIKA KIRAR (F2F) 61 Marks in IDT/GST June 2018

29. NANDINI ANAND (Video) 61 Marks in IDT/GST June 2018

30. FARHEEN NAAZ (Video) 61 Marks in IDT/GST June 2018

31. VINAY SHARMA 60 Marks in IDT/GST June 2018

32. PARVEJ ALAM 60 Marks in IDT/GST June 2018

…….& Many More

SURAJ AGRAWAL TAX CLASSES

S.NO NAME REG. NO IDT MATKS

1 PREETI RAWAT `04171007477 79

2 ASHISH SHIYANI `04151005102 76

3 CHANDA `04161002144 75

4 RAJNESH GUPTA `04151004925 74

5 NEHA VASHISHT (AIR 43) `04191056393 74

6 GAURANG RAJPAL `04152005198 73

7 MAYANK BATRA `04171010401 73

8 ATUL JAYANT `04132002741 71

9 MD.SHAHBAZ IDDRISI `04161000406 71

10 AMIT SHARMA `04161001090 70

11 ROHAN HEERA `04152006198 70

12 PRADEEP SINGH KANDARI `04171006214 69

13 ABHINAV PANNU `04152006249 69

14 SOUVAGYA GERU `04162003079 69

CONGRATULATIONSCMA INTER IDT RESULT AT SATC

JUNE 2018 to DEC 2019 EXAM (LAST 4 EXAMs)

85+ Students have scored exemptions in GST/IDT Subjects (60+ marks)

14 SOUVAGYA GERU `04162003079 69

15 DEEPANJALI `04181035932 69

16 GAURAV SINGH `04161002697 69

17 VARUN GIRI `04151000294 69

18 RAHUL `04142005518 69

19 YASHODA RAWAT `04181025326 69

20 MAHIMA THREJA `04171007005 68

21 HITESHEE SHARMA `04162000658 68

22 VIABHAV SRIVASTAVA `04152003904 68

23 RAHUL KR. SONI `04171006939 68

24 KARAN KHANDELWAL `04171008770 68

25 PRIYA AGRAWAL `04152002867 67

26 ANKUSH GUPTA `04162003134 67

27 SHUBHAM `04131000312 67

28 MINAKSHI SINGH `04181031103 67

29 SNEHA `04152003288 66

30 NEELABH SRIVASTAVA `04151002871 66

31 RAJESH SHAH `04171015785 66

32 SUMMI `04121013160 66

33 YATIN BISHT `04181023861 66

34 MOHIT UPADHYAY `04171011775 65

35 NANCY JAIN `04171012943 65

36 SANJOLI JAIN `04151004777 65

37 MOHIT UPADHYAY - 65

38 DHARMESH SHARMA `04152004215 65

39 MD. ZEYAUL HAQUE `03151008179 65

40 NANCY JAIN `04171012943 6540 NANCY JAIN `04171012943 65

41 NIKHIL SOLANKI `04152004440 65

42 VAISHALI CHAUHAN `04171009980 65

43 RAHUL RANJAN SINGH `04162004494 65

44 RAHUL NEGI `04142001226 64

45 AVINASH KUMAR `04132003466 64

46 KARTIK BHATT `04162003301 64

47 HIMANI AGGARWAL `04171009548 64

48 SHIVAM SINGH `04171006774 64

49 SWADHA CHITRANSH `04162000395 64

50 KARAN PANESHAR `04171013462 64

51 ANAMIKA DIXIT `04171006352 64

52 AMRITA VIDWAN `04161001976 63

53 ANKIT SINGH `04131000362 63

54 PANKAJ RAWAT `04162002704 63

55 AMAN GUPTA `04171011461 63

56 ANURAG `04171013969 63

57 SALONI MITTAL `04171007814 63

58 ANKIT SINGH `04131000362 63

59 PANKAJ `04162002704 63

60 ABHISHEK PARASHAR `04171008310 63

61 DEEPIKA KIROULA - 63

62 NEHA SHARMA `04162003239 62

63 KULDEEP RAWAT `04152004253 62

64 ROHIT SATI `04141004707 62

65 SHOBHIT KR. YADAV `04162002512 6265 SHOBHIT KR. YADAV `04162002512 62

66 DINESH SINGH `04152004116 62

67 SAURABH JAIN `04151006110 62

68 IRSHAD `04161002726 62

69 RAVINDRA KUMAR SHAKYA `04191048134 62

70 MOHD. IRASHAD `04161002726 62

71 VAISHALI `04181036455 62

72 FAHREEN NAAZ `04171015009 61

73 OMKAR SINGH `04112018993 61

74 NANDINI ANAND `04171015462 61

75 FARHEEN NAAZ `04171015009 61

76 KRATIKA KIRAR `01142009362 61

77 RAM SHARMA `04151007483 61

78 DIVYANSH VERMA `04172017078 61

79 NEHA SINGH `04151007353 61

80 KOMAL PAL `04151007518 61

81 VINAY SHARMA `04162000208 60

82 PARVEJ ALAM `04162000312 60

83 VIVEK UPADHYAY `04171006249 60

84 BHARTI `04171014248 60

85 ANAND VALLABH OLI `04161004350 60

86 DEEPAK KUMAR PANDEY `04131001662 60

87 LOKESH KUMAR `04161001512 60

88 NEHA SURATIYA `04142001231 59

89 VIKALP KUMAR `04161000373 59

90 PRINCE GOYAL `04152006085 59

91 TAUSIF ANSARI `04152003211 5991 TAUSIF ANSARI `04152003211 59

92 SHWETA RANI `04181035559 59

93 ANURADHA MISHRA `03162004159 58

94 NISHA KUMARI `04142001150 58

95 KISHAN KASHYAP `04181023519 58

96 KAMINI `04161000149 57

97 ROHIT `04181024640 57

98 APOORV GHILDIYAL `04151004798 56

99 KRISHNA HARI `04152006557 56

100 MOHAMMAD MOMIN `04142002305 56

101 DEEPAK KR KAMAT `04142006457 55

102 SIMRAN SINHA `04171006940 54

103 VIVEK PRASAD `04171009533 54

104 MOHINI AGRAWAL `04152005687 53

105 SONALI `04151008330 53

106 SAMPANN SALUJA `04181025328 53

107 REETU `04181028730 53

108 MOHIT ARYA `04172018239 52

109 BUNTI/VINAY `04171007024 52

110 VIKRANT JHA `04162002126 52

111 KAVITA RAWAT `04171006492 52

112 VIPUL KR. TIWARI `04162003793 52

113 PUNEET TIWARI `04162005106 51

114 SAURAV KUMAR `04161001645 51

115 KAVITA `04151000769 51115 KAVITA `04151000769 51

116 VISHAL KESARWANI `04171014398 51

117 GARGI LATWAL `04171012717 51

118 VARUN MOR `01172016485 50

119 SHALENDER SEMWAL `04142005213 49

120 ROHIT `04181024640 49

121 PRIYA RAHI `04162003080 48

122 NEHA KASHYAP `04161002757 48

123 YOGESH `04172018166 48

124 UJWAL CHAND RAMOLA `04171007621 48

125 JAYED SAIFI `04171011777 47

126 GUNDEEP SINGH GILL `04161006711 46

127 RAHUL `04151000891 45

128 RAMAN KUMAR `04182040490 44

129 ANKIT KUMAR RAJPUT `04182039949 43

130 NISHTHA JAIN `04181030186 42

131 SHIVANGI BISHT `04171008407 41

132 ARVIND KR. MAURYA `04181023520 40

SURAJ AGRAWAL TAX CLASSWHATSAPP/CALL - 8527230445

THANKS ALL FOR SUCH WONDERFUL PERFORMANCE

WHATSAPP/CALL - 8527230445

REVISED FEE STRUCTURE – CMA EXAM

OFFER - VALID TILL 15.05.2020

(PRICES ARE DISCOUNTED DUE TO LOCKDOWN)

SURAJ AGRAWAL TAX CLASS 8527230445 (WHATSAPP – 11am to 6pm)

TEAM – VANSH & JATIN

ONLINE PAYMENT – ONLINE CLASS DELIVERY

(Pay in 2 monthly installments)

SUBJECTS CLASS VALIDITY TILL

31.07.2020

CLASS VALIDITY TILL

31.12.2020

CLASS VALIDITY TILL

30.06.2021

INTER - DT 4,000 6,000 7,500

INTER - IDT 4,000 5,000 6,500

INTER - OMSM 3,000 5,000 6,000

INTER - DT+IDT 7,000 10,000 12,000

(BEST OFFER)

INTER - IDT+OMSM 6,500 9,500 12,000

INTER -DT+IDT+OMSM 10,000 15,000 17,000

(BEST OFFER)

FINAL - DT 4,500 7,000 8,000

FINAL - IDT 4,000 5,000 6,500

FINAL - DT + IDT 7,500 11,000 12,000

(BEST OFFER)

NOTE:

1. E-BOOKS WILL BE PROVIDED (100%). No Restrictions. Open Files.

2. PRINTED BOOKS COST ARE NOT INCLUDED IN ABOVE FEE

3. COURIER CHARGES & PRINTED BOOK COST WILL BE DICUSSED AT THE TIME OF ADMISSION.

CMA INTER – JUNE 2020 EXAM GST.1

SURAJ AGRAWAL TAX CLASS, LAXMINAGAR I 01147542530 I 8527230445 I

AMENDMENTS – GST CMA INTER - JUNE 2020 EXAM

Updated by: CA SURAJ AGRAWAL Prepared as on 15/04/2020

Source of GST Amendments:

1. Finance Act 2019 dated 21/02/2019 – No AMENDMENT is discussed for GST Laws in this Act.

2. Finance (No. 2) Act 2019 dated 01/08/2019 – GST Amendment discussed in this Act was not made

effective till 30/11/2019. Hence, it should NOT be applicable/included for JUNE 2020 EXAM syllabus.

But, ICMAI has considered them in Latest Study Material as well as in Supplementary Booklet. Hence,

we have updated those amendment at the end of this Booklet.

3. GST amendment brought by Finance Act 2020 is not updated here as it is not applicable for JUNE 2020

exams

4. Notifications/Circulars issued between 01.06.2019 to 30.11.2019 is considered in this amendment

booklet which is relevant for JUNE 2020 exam.

5. GST Amendments brought by CGST (Amendment) Act 2018 were applicable from Dec 2019 Exam only.

Those amendments were already covered in last exam book (i.e. 4th Edition Book).

6. GST BOOK 5th

Edition [3 GST Volumes for CMA INTER] is applicable for June 2020 Exam. For FREE PDF

Book, whatsapp chat with team at 8527230445 (11am to 5pm) with your name, city, state, course,

level, exam due.

7. Upto 30.11.2019, UTGST Act 2017 was not amendment to include UT of Ladakh. In other words, it is not

yet extended to UT of ladakh. For JUNE 2020 Exam – UTGST Act is applicable to 5 UTs only & J&K is a

State only.

8. GST Book (6th Edition) from SATC is applicable for DEC 2020 Exam & the same will be available in the

month of July/Aug 2020 (This booklet will cover all amendments/updates upto 31.05.2020).

THANK YOU & ALL THE BEST FOR YOUR PREPARATION

CA SURAJ AGRAWAL – YOUR TAX COACH



AMENDMENT IN GST – VOLUME 1

AMENDMENT IN “REGISTRATION CHAPTER”

A. Bank Account details may be furnished after obtaining registration certificate

[New Rule 10A inserted and rule 21 of the CGST Rules amended]

Page B.17 of Volume 1 (5th Edition) issued by SATC

While applying for registration on GST portal, a person is required to furnish the details of his bank account.

This requirement has now been relaxed to a limited extent, by inserting a new rule 10A to the CGST Rules.

In pursuance to the same, the registered person is allowed to furnish information with respect to details of

bank account, or any other information, as may be required on the common portal in order to comply with

any other provision, soon after obtaining certificate of registration and a GSTIN, but not later than 45 days

from the date of grant of registration or the date on which the return required under section 39 is due to be

furnished, whichever is earlier.

This relaxation is not available for those who have been granted registration as TDS deductor/ TCS collector

or who have obtained suo-motu registration.

In other words, a registered person has an option to give his bank account details after obtaining registration,

within 45 days from the date of grant of registration or the due date of furnishing return, whichever is earlier.

However, if a person violates the provisions of Rule 10A, his GST registration is liable to be cancelled [Rule

21 is amended].

[Notification No. 31/2019 CT dated 28.06.2019]

Example (3 Marks):

M/s Siya Ram is a trader of decorative items in Hauz Khas, Delhi. His aggregate turnover exceeded ` ` ` ` 20 lakh

in the month of October, 20XX. He applied for registration on GST portal, but missed to submit the details of

his bank account. His tax consultant advised him that prior submission of bank details is mandatory to

obtain registration. Examine whether the advice of Mr. Siya Ram’s tax consultant is correct.

Solution:

The advice of Mr. Siya Ram’s consultant that prior submission of bank details is mandatory to obtain

registration is no more valid in law.

A new rule 10A has been inserted in the CGST Rules, 2017 vide Notification No. 31/2019 CT dated 28.06.2019

which allows the registered person to furnish information with respect to details of bank account, or any other

information, as may be required on the common portal in order to comply with any other provision, soon after

obtaining certificate of registration and a GSTIN, but not later than 45 days from the date of grant of

registration or the date on which the return required under section 39 is due to be furnished, whichever is

earlier.

This relaxation is however not available for those who have been granted registration as TDS deductor/ TCS

collector under rule 12 or who have obtained suo-motu registration under rule 16.



B. Meaning of not making taxable supply during suspension of registration clarified. Registered person

required to issue revised tax invoice and file first return for supplies during suspension period

[Rule 21A of the CGST Rules]

Page B.25 of Volume 1 (5th

Edition) issued by SATC

Rule 21A provides that once a registered person has applied for cancellation of registration or the proper

officer seeks to cancel his registration, his registration shall remain suspended during pendency of the

proceedings relating to cancellation of registration filed. Such person shall not make any taxable supply

during the period of suspension and shall not be required to file any return [Rule 21A(3)].

An explanation has been inserted to this sub-rule (3) to rule 21A clarifying that the expression “shall not make

any taxable supply” shall mean that the registered person shall not issue a tax invoice and, accordingly, not

charge tax on supplies made by him during the period of suspension.

Further, a new sub-rule (5) has been inserted in said rule to provide that where any order having the effect of

revocation of suspension of registration has been passed, the provisions of section 31(3)(a) [revised tax

invoices] and section 40 [first return] in respect of the supplies made during the period of suspension and

the procedure specified therein shall apply.


C. Manner of furnishing the details of State/UT in application for registration by a TDS deductor in a State/UT

where he doesn’t have a physical presence [Rule 12(1A) of the CGST Rules]

Hitherto, there was specific provision for furnishing details of State/ UT in the application for registration by a

TCS collector in a State where he doesn’t have a physical presence, prescribed under rule 12(1A).

Rule 12(1A) has been amended to extend to said provisions to a TDS deductor also.

Resultantly, when a person is applying for registration to deduct TDS in a State/UT where he does not have a

physical presence, he shall mention name of said State/UT in Part A of prescribed application form for

registration.

Further, the name of the State/UT in which his principal place of business is located is to be mentioned in Part

B of the application form. States/UTs mentioned in Part A and Part B of the application form may be

different.




AMENDMENT IN “SUPPLY UNDER GST” A. Service by way of grant of alcoholic liquor licence is neither a supply of goods nor a supply of service

Page C.2 & C.29 of Volume 1 (5th


In terms of Section 7(2) of the CGST Act, the Government has notified the following activity or transaction

undertaken by the State Governments in which they are engaged as public authorities, to be treated neither

as a supply of goods nor a supply of service, namely:-

“Service by way of grant of alcoholic liquor licence, against consideration in the form of licence fee or

application fee or by whatever name it is called.”

[Notification No. 25/2019 CT (R) dated 30.09.2019/ Notification No. 24/2019 IT (R) dated 30.09.2019]

Circular No. 121/40/2019 GST dated 11.10.2019 has clarified that the above special dispensation applies

only to supply of service by way of grant of liquor licenses by the State Governments as an agreement

between the Centre and States and has no applicability or precedence value in relation to grant of other

licenses and privileges for a fee in other situations, where GST is payable.

It may be noted that services provided by the Government to business entities including by way of grant of

privileges, licences, mining rights, natural resources such as spectrum etc. against payment of consideration

in the form of fee, royalty etc. are taxable under GST. Tax is required to be paid by the business entities on

such services under reverse charge.

B. Levy of GST on the service of display of name or placing of name plates of the donor in the premises of

charitable organisations receiving donation or gifts from individual donors

Page C.30 of Volume 1 (5th Edition) issued by SATC

Individual donors provide financial help or any other support in the form of donation or gift to institutions

such as religious institutions, charitable organisations, schools, hospitals, orphanages, old age homes etc. The

recipient institutions place a name plate or similar such acknowledgement in their premises to express the

gratitude.

When the name of the donor is displayed in recipient institution premises, in such a manner, which can be

said to be an expression of gratitude and public recognition of donor’s act of philanthropy and is not aimed

at giving publicity to the donor in such manner that it would be an advertising or promotion of his

business, then it can be said that there is no supply of service for a consideration (in the form of donation).

There is no obligation (quid pro quo) on part of recipient of the donation or gift to do anything (supply a

service). Therefore, there is no GST liability on such consideration.

Some examples of cases where there would be no taxable supply are as follows:-

i. “Good wishes from Mr. Rajesh” printed underneath a digital blackboard donated by Mr. Rajesh to a

charitable Yoga institution.

ii. “Donated by Smt. Malati Devi in the memory of her father” written on the door or floor of a room or any

part of a temple complex which was constructed from such donation.

In each of these examples, it may be noticed that there is no reference or mention of any business activity of

the donor which otherwise would have got advertised.

Thus, where all the three conditions are satisfied namely (1) the gift or donation is made to a charitable

organization, (2) the payment has the character of gift or donation and (3) the purpose is philanthropic (i.e., it

leads to no commercial gain) and not advertisement, GST is not leviable.

[Circular No. 116/35/2019 GST dated 11.10.2019]



Example (4 Marks):

NEW QUESTION BASED ON AMENDMENT - The temple of ancestral deity of Mr. Aman goel and his family

is located at Beri, Haryana. The temple is run by a charitable organisation registered under section 12AA

of the Income Tax Act, 1961. The family has got unshakeable faith in their ancestral deity. Mr. Aman is a

big entrepreneur having flourishing business of tiles in Gurugram. Upon the birth of their first child, he

donated `̀̀̀ 10 lakh to the said temple for construction of a sitting hall in the temple. On the main door of

the sitting hall, a name plate was placed stating “Donated by Mr. Aman Goel upon birth of his first

child”.

You are required to examine the leviability of GST on the donation received from Mr. Aman Goel?

Solution:

It has been clarified vide Circular No. 116/35/2019 GST dated 11.10.2019 that when the name of the donor

is displayed in the religious institution premises, by placing a name plate or similar such acknowledgement,

which can be said to be an expression of gratitude and public recognition of donor’s act of philanthropy and

is not aimed at giving publicity to the donor in such manner that it would be an advertising or promotion of

his business, then it can be said that there is no supply of service for a consideration (in the form of

donation).

There is no obligation (quid pro quo) on part of recipient of the donation or gift to do anything (supply a

service). Therefore, there is no GST liability on such consideration.

In the given case, there is no reference or mention of any business activity of the donor which otherwise

would have got advertised. Thus, since the gift or donation is made to a charitable organization, the

payment has the character of gift or donation and the purpose is philanthropic (i.e., it leads to no

commercial gain) and not advertisement, hence GST is not leviable.

C. Clarification on issue of GST on airport levies (Charge of GST)


Passenger service fee (PSF) is charged under rule 88 of Aircraft Rules, 1937 according to which the airport

licensee may collect PSF from embarking passengers at such rates as specified by the Central Government.

According to the rule the airport licensee shall utilize the said fee for infrastructure and facilitation of the

passengers.

User development fee (UDF) is levied under rule 89 of the Aircraft rules 1937 which provides that the

licensee may levy and collect, at a major airport, the User Development Fee at such rate as may be

determined under clause (b) of sub-section (1) of section 13 of the Airports Economic Regulatory Authority of

India Act, 2008. Though the rule does not prescribe the specific purpose of levy and whether it is to be

charged from the airlines or the passengers, however, it is seen from section 2(n) of Airports Economic

Regulatory Authority of India Act, 2008, that the authority which manages the airport is eligible to levy and

charge UDF from the embarking passengers at any airport.

Further, Director General of Civil Aviation has clarified that in order to avoid inconvenience to passengers and

for smooth and orderly air transport/airport operations, the UDF shall be collected from the passengers by

the airlines at the time of issue of air ticket and the same shall be remitted to Airports Authority of India in the

line system/procedure in vogue. For this, collection charges of ` 5/- shall be receivable by the airlines from

AAI, which shall not to be passed on to the passengers in any manner.

The above facts clearly indicate that PSF and UDF are charged by airport operators for providing the

services to passengers.



Section 2(31) of the CGST Act states that “consideration” in relation to the supply of goods or services or both

includes any payment made or to be made, whether in money or otherwise, in respect of, in response to, or

for the inducement of, the supply of goods or services or both, whether by the recipient or by any other

person. Thus, PSF and UDF charged by airport operators are consideration for providing services to

passengers.

Thus, services provided by an airport operator to passengers against consideration in the form of UDF and

PSF are liable to GST. UDF was also liable to service tax.

The airport operators shall pay GST on the PSF and UDF collected by them from the passengers through the

airlines. Since, the airport operators are collecting PSF and UDF inclusive of GST, there is no question of

their not paying GST collected by them to the Government.

The collection charges paid by airport operator to airlines are a consideration for the services provided by the

airlines to the airport operator and airlines shall be liable to pay GST on the same under forward charge. ITC

of the same will be available with the airport operator.


D. Clarification on issue of GST on airport levies (Value of Supply)


It has been clarified that services provided by an airport operator to passengers against consideration in the

form of user development fee (USF) and passenger development fee (PSF) are liable to GST. PSF and UDF

being charges levied by airport operator for services provided to passengers, are collected by the airlines as

an agent and is not a consideration for any service provided by the airlines.

Thus, airline is not responsible for payment of GST on UDF or PSF provided the airline satisfies the conditions

prescribed for a pure agent under rule 33 of the CGST Rules. It is the licensee, that is the airport operator

which is liable to pay GST on UDF and PSF.

Airlines may act as a pure agent for the supply of airport services in accordance with Rule 33 of the CGST

rules.

Accordingly, the airline acting as pure agent of the passenger should separately indicate actual amount of

PSF and UDF and GST payable on such PSF and UDF by the airport licensee, in the invoice issued by airlines to

its passengers. The airline shall not take ITC of GST payable or paid on PSF and UDF.

The airline would only recover the actual PSF and UDF and GST payable on such PSF and UDF by the airline

operator. The amount so recovered will be excluded from the value of supplies made by the airline to its

passengers.

In other words, the airline shall not be liable to pay GST on the PSF and UDF (for airport services provided by

airport licensee), provided the airline satisfies the conditions prescribed for a pure agent under rule 33 of the

CGST Rules.

The registered passengers, who are the ultimate recipient of the airport services, may take ITC of GST paid on

PSF and UDF on the basis of pure agent’s invoice issued by the airline to them.




E. TAXABILITY OF “COST PETROLEUM”


When an oil exploration & production contractor gets a license/lease to explore/mine the petroleum crude

and/or natural gas from the Government, it enters into a Production Sharing Contract (PSC) with the

Government. The relationship of the contractors with the Government is not that of partners but that of

licensor/lessor and licensee/lessee.

As per these PSCs, when a contractor discovers oil/gas, he is at first entitled to recover the contract cost

[expenses incurred in exploration, development, production and payment of royalty] involved in the

extraction of oil/gas from the total sale proceeds and thereafter, he is expected to share with the

Government the profit from his venture [known as profit petroleum], as per the PSC.

The value of petroleum which the contractor is entitled to take in a year for recovery of the contract costs is

called the cost petroleum. Further, the total value of petroleum produced and saved from the contract area

in a particular period, as reduced by cost petroleum, is called the profit petroleum.

The Government’s share of profit petroleum which is the consideration paid by the contractor to the Central

Government for the services of grant of license/lease to explore/mine petroleum crude and/natural gas is

exempt from GST.

The cost petroleum is not a consideration received by the contractor for the services provided to Government

and thus not taxable per se. The reason for the same is that the contractors carry exploration and production

of petroleum for themselves and not as a service to Government. They had acquired the right to explore,

exploit and sell petroleum in lieu of royalty and a share in profit petroleum.




AMENDMENT IN “CHARGE OF GST”

A. Amendment in Reverse Charge Mechanism [Section 9(3)]:

Page D.9 / D.10 / D.11 of Volume 1 (5th


Notification No. 13/2017 CT (R) dated 28.06.2017 (amended time to time) has notified the various

categories of supply of services wherein whole of the CGST shall be paid on reverse charge basis by the

recipient of services.

Amendment in Existing Entry:

1 Supply of services by a an author music composer,

photographer, artist or the like by way of transfer or

permitting the use or enjoyment of a copyright covered under

section 13(1)(a) of the Copyright Act, 1957 relating to original

literary, dramatic, musical or artistic works to a music

company, producer or the like

Publisher, Music Company,

Producer or the like, located in

the taxable territory.

Payment of tax under reverse charge made optional in case of supply of services by an author by way of

transfer/permitting the use or enjoyment of a copyright relating to original literary work to a publisher.

Earlier, tax on supply of services by an author, music composer, photographer, artist by way of

transfer or permitting the use or enjoyment of a copyright relating to original literary, dramatic, musical or

artistic works, was payable under reverse charge by publisher, music company, producer.

NEW ENTRY in REVERSE CHARGE SCHEME:

2 W.e.f. 01/10/2019

Supply of services by an author by way of transfer or

permitting the use or enjoyment of a copyright covered

under clause (a) of sub -section (1) of section 13 of the

Copyright Act, 1957 relating to original literary works to a

publisher

Publisher located in the taxable

territory

However, an author can choose to pay tax under forward charge if-

i. he has taken registration under the CGST Act and filed a declaration, in the prescribed

form, that he exercises the option to pay CGST on the said service under forward charge

in accordance with section 9(1) of the CGST Act and to comply with all the provisions as

they apply to a person liable for paying the tax in relation to the supply of any goods

and/or services and that he shall not withdraw the said option within a period of 1 year

from the date of exercising such option;

ii. he makes a declaration on the invoice issued by him in prescribed form to the publisher.



3 W.e.f. 01/10/2019

Services provided by way of renting of a motor vehicle

provided to a body corporate

Supplier:

Any person other than a body corporate, who is paying CGST

@ 2.5% on renting of motor vehicles with input tax credit

only of input service in the same line of business

Any body corporate located in

the taxable territory

4 W.e.f. 01/10/2019

Services of lending of securities under Securities Lending

Scheme, 1997 (“Scheme”) of Securities and Exchange Board

of India, as amended

Lender i.e., a person who deposits the securities registered in

his name or in the name of any other person duly authorised

on his behalf with an approved intermediary for the purpose

of lending under the Scheme of SEBI.

Borrower i.e., a person who

borrows the securities under the

Scheme through an approved

intermediary of SEBI

Example (6 Marks):

NEW QUESTION BASED ON AMENDMENT - Mr. Vicky Frankyn, an unregistered famous author, received

` ` ` ` 3 crore of consideration from Shiv Bhawan Publications (SBP) located in Indore for supply of services by

way of temporary transfer of a copyright covered under section 13(1)(a) of the Copyright Act, 1957

relating to original literary works of his new book. He finished his work & made available the book to the

publisher, but has yet not raised the invoice.

Mr. Vicky Frankyn is of the view that SBP is liable to pay tax under reverse charge on services provided

by him. SBP does not concur with his view and is not ready to deposit the tax under any circumstances.

Examine whether the view of Mr. Vicky Frankyn is correct. Further, if the view of Mr. Vicky Frankyn is

correct, what is the recourse available with Mr. Vicky Frankyn to comply with the requirements of GST

law as SBP has completely refused to deposit the tax.

Solution:

Yes, the view of Mr. Vicky Frankyn is correct. GST is payable under reverse charge in case of supply of

services by an author by way of transfer/permitting the use or enjoyment of a copyright covered under

section 13(1)(a) of the Copyright Act, 1957 relating to original literary work to a publisher located in the

taxable territory in terms of reverse charge Notification No. 13/2017 CT(R) dated 28.06.2017. Therefore, in

the given case, person liable to pay tax is the publisher – SBP.

However, since SBP has completely refused to deposit the tax on the given transaction, Mr. Vicky Frankyn has

an option to pay tax under forward charge on the same. For the purpose, he needs to fulfill the following

conditions:

(i) since he is unregistered, he has to first take registration under the CGST Act, 2017

(ii) he needs to file a declaration, in the prescribed form, that he exercises the option to pay CGST on the

said service under forward charge in accordance with section 9(1) of the CGST Act and to comply with all

the provisions as they apply to a person liable for paying the tax in relation to the supply of any goods

and/or services and that he shall not withdraw the said option within a period of 1 year from the date of

exercising such option;

(iii) he has to make a declaration on the invoice, which he would issue to SBP, in prescribed form.



B. NEW: Clarification regarding taxability of supply of securities under Securities Lending Scheme, 1997

READING ONLY Page D.12 / D.13 of Volume 1 (5th Edition) issued by SATC

Securities and Exchange Board of India (SEBI) has prescribed the Securities Lending Scheme, 1997 for the

purpose of facilitating lending and borrowing of securities. Under the Scheme, lender of securities lends to a

borrower through an approved intermediary to a borrower under an agreement for a specified period with

the condition that the borrower will return equivalent securities of the same type or class at the end of the

specified period along with the corporate benefits accruing on the securities borrowed.

The transaction takes place through an electronic screen-based order matching mechanism provided by the

recognised stock exchange in India. There is anonymity between the lender and borrower since there is no

direct agreement between them.

The lenders earn lending fee for lending their securities to the borrowers. The security lending mechanism

is depicted in the diagram below: -

LENDER Approved Intermediary Borrower

In the above chart:

i. Lender is a person who deposits the securities registered in his name or in the name of any other person

duly authorised on his behalf with an approved intermediary for the purpose of lending under the

scheme.

ii. Borrower is a person who borrows the securities under the scheme through an approved intermediary.

iii. Approved intermediary is a person duly registered by the SEBI under the guidelines/scheme through

whom the lender will deposit the securities for lending and the borrower will borrow the securities;

It may be noted for the purpose of GST Act, “securities” shall have the same meaning as assigned to it in

clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956.

The definition of services as per Section 2(102) of the CGST Act, is extracted as below:

“Services” means anything other than goods, money and securities but includes activities relating to the

use of money or its conversion by cash or by any other mode, from one form, currency or denomination,

to another form, currency or denomination for which a separate consideration is charged;

Explanation:

For the removal of doubts, it is hereby clarified that the expression “services” includes facilitating or

arranging transactions in securities;

Securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 are not

covered in the definition of goods under section 2(52) and services under section 2(102) of the CGST Act.

Therefore, a transaction in securities which involves disposal of securities is not a supply in GST and hence

not taxable.

The explanation added to the definition of services w.e.f. 01.02.2019 i.e., “includes facilitating or arranging

transactions in securities” is only clarificatory in nature and does not have any bearing on the taxability of the

services under discussion (lending of securities) in past since 01.07.2017 but relates to facilitating or

arranging transactions in securities.

The activity of lending of securities is not a transaction in securities as it does not involve disposal of

securities. The Scheme under the Securities Lending Scheme, 1997 doesn’t treat lending of securities as

disposal of securities and therefore is not excluded from the definition of services.



The lender temporarily lends the securities held by him to a borrower and charges lending fee for the same

from the borrower. The borrower of securities can further sell or buy these securities and is required to return

the lended securities after stipulated period of time. The lending fee charged from the borrowers of

securities has the character of consideration and this activity is taxable in GST since 01.07.2017.

Apart from above, the activities of the intermediaries facilitating lending and borrowing of securities for

commission or fee are also taxable separately.

For the past period i.e. from 01.07.2017 to 30.09.2019, GST is payable under forward charge by the lender

and request may be made by the lender (supplier) to SEBI to disclose the information about borrower for

discharging GST under forward charge. The nature of tax payable shall be IGST.

With effect from 1st October 2019, the borrower of securities shall be liable to discharge GST under reverse

charge mechanism. The nature of GST to be paid shall be IGST under reverse charge mechanism.


C. Manufacturer of aerated water & supplier of aerated water cannot opt to pay tax under composition levy

and Notification No. 2/2019 CT (R) dated 07.03.2019 respectively

Page D.15 / D.21 / D.26 of Volume 1 (5th


As per Section 10(2)(e) of CGST Act read with Notification No. 14/2019 CT dated 07.03.2019, a

manufacturer of following goods cannot opt for composition scheme:

1. Ice cream and other edible ice, whether or not containing cocoa

2. Pan Masala

3. All goods i.e. Tobacco and manufactured tobacco substitutes

Further, as per Notification No. 2/2019 CT (R) dated 07.03.2019, a registered person making supplies of the

above goods is also not eligible to pay concessional tax under the said notification.

With effect from 01.10.2019, Notification No. 14/2019 CT dated 07.03.2019 and Notification No. 2/2019 CT

(R) dated 07.03.2019 have been amended to include aerated water in the above list of negative goods.

Thus, now a manufacturer of aerated water will also not be eligible to opt for composition scheme.

Likewise, a supplier of aerated water will also not be eligible to pay concessional tax under Notification No.

2/2019 CT (R) dated 07.03.2019.

[Notification No. 43/2019 CT dated 30.09.2019 & Notification No. 18/2019 CT (R) dated 30.09.2019]



D. Amendment in Section 9(4): (VERY IMPORTANT IN CMA)

The Central Government vide Notification No. 07/2019-Central Tax(R), dated 29th March 2019 has notified

that the registered person specified below shall in respect of supply of specified goods or services or both

received from an unregistered supplier shall pay tax on reverse charge basis as recipient of such goods or

services:

Sl. No. Category of supply of goods and services

Recipient of

goods and

services

1

Supply of such goods and services or both other than services by way of

grant of development rights, long term lease of land or FSI which

constitute the shortfall from the minimum value of goods or services

or both required to be purchased by a promoter for construction of

project, in a financial year.

Promoter

2

Cement falling in chapter heading 2523 in the first schedule to the

Customs Tariff Act, 1975 (51 of 1975) which constitute the shortfall

from the minimum value of goods or services or both required to be

purchased by a promoter for construction of project, in a financial year

(or part of the financial year till the date of issuance of completion

certificate or first occupation, whichever is earlier) w.e.f 01/10/2019

Promoter

3

Capital goods falling under any chapter in the first schedule to the

Customs Tariff Act, 1975 (51 of 1975) supplied to a promoter for

construction of a project

Promoter




AMENDMENT IN “TIME OF SUPPLY”

NO NEW AMENDMENT BETWEEN 01.06.2019 to 30.11.2019

A. Special procedure for determining the time of supply by way of TDR/FSI and granting of Long-term lease

for projects commencing after 1-4-2019 - Applicable from Dec 2019 Exam only.

Page E.10 & E.11 of Volume 2 (5th


(THIS CONCEPT WAS ALREADY COVERED in 4th Edition book also as a part of amendment for Dec 2019

exam onwards) – So, it is not a recent amendment but covered here due to its importance.

With effect from 01.04.2019, supply of services by a landowner to a developer by way of-

i. transfer of transferable development rights (TDR) or floor space index (FSI);

ii. granting of long term lease,

for construction of residential apartments have been exempted subject to the condition that the

constructed flats are sold before issuance of completion certificate or first occupation of the project,

whichever is earlier, and tax is paid on them.

Such exemption for TDR, FSI, long term lease (premium) shall not be available in case of flats which remain

un-booked on the date of issuance of completion certificate or first occupation of the project, whichever is

earlier.

The promoter (developer) shall be liable to pay tax at the applicable rate, on reverse charge basis, on such

proportion of (i) value of development rights and/or FSI, or (ii) upfront amount paid for long term lease, as is

attributable to such un-booked residential apartments.

In view of the above change, with effect from 01.04.2019, a special procedure for payment of tax has been

laid down for following classes of registered persons, namely-

i. a promoter who receives development rights or FSI (including additional FSI) on or after 1st April, 2019

for construction of a project against consideration payable or paid by him, wholly or partly, in the form of

construction service of commercial or residential apartments in the project or in any other form

including in cash;

ii. a promoter, who receives long term lease of land on or after 1st April, 2019 for construction of

residential apartments in a project against consideration payable or paid by him, in the form of upfront

amount,

For such persons, the liability to pay tax on, -

a) the consideration paid by him in the form of construction service of commercial or residential

apartments in the project, for supply of development rights or FSI (including additional FSI);

b) the monetary consideration paid by him, for supply of development rights or FSI (including additional FSI)

relatable to construction of residential apartments in project;

c) the upfront amount paid by him for long term lease of land relatable to construction of residential

apartments in the project; and

d) the supply of construction service by him against consideration in the form of development rights or FSI

(including additional FSI),

shall arise on the date of issuance of completion certificate or first occupation of the project, whichever is

earlier.

[Notification No. 6/2019 CT (R) dated 29.03.2019]



Important Points (NEWLY ADDED IN CLASS NOTES):

1. Builder/developer shall be liable to pay tax on reverse charge basis, on supply of TDR on or after

01/04/2019, which is attributable to the Residential apartments that remain un-booked on the date of

issuance of completion certificate, or first occupation of the project.

Liability to pay GST on development rights shall arise on the date of completion or first occupation of the

project, whichever is earlier.

2. Supply of TDR/FSI or Long term Lease of Land, on such value which is proportionate to construction of

residential apartments that remain un-booked on the date of issue of completion certificate or first

occupation, would attract GST at rate of 18% but amount of tax shall be limited to 1% / 5% of value of

apartments depending upon category of residential apartment.

3. TDR/FSI/Long term lease of land used for construction of commercial apartments shall attract GST. It is

not exempt.

4. In case of Supply of TDR/FSI wherein monetary consideration is paid by promoter, liability to pay tax shall

arise immediately if it is related to construction of commercial projects.

5. Tax paid under RCM is not available as ITC to builder/promoter in case of Residential Projects as reduced

output rate is provided.

6. At what point of time, the promoter should discharge its tax liability on supply of long-term lease

received on/after 01/04/2019:

In case of supply of long term lease of land for construction of commercial apartment’s tax shall be paid

by the promoter immediately.

However, for construction of residential apartment, liability to pay tax on the upfront amount is payable

for long term lease shall arise on the date of issuance of completion certificate (if not exempt).



AMENDMENT IN “VALUE OF SUPPLY”

NO NEW AMENDMENT BETWEEN 01.06.2019 to 30.11.2019

AMENDMENT IN TAX INVOICE, CREDIT & DEBIT NOTEs

A. Special provisions pertaining to tax invoice for services by way of admission to exhibition of cinematograph

films in multiplex screens [Rule 46 and 54 of the CGST Rules]

Page G.20 of Volume 2 (5th


A registered person has an option to issue consolidated tax invoice for supplies at the close of each day where

the value of goods or services supplies is less than ` 200; recipient is unregistered and does not require tax

invoice [in terms of section 31(3)(b) of the CGST Act read with fourth proviso to rule 46 of the CGST Rules].

With effect from 01.09.2019, fourth proviso to rule 46 has been amended to disallow this option to a

supplier engaged in making supply of services by way of admission to exhibition of cinematograph films in

multiplex screens.

Further, with effect from 01.09.2019, a new sub-rule (4A) has been inserted in rule 54. Accordingly, a

registered person who is supplying services by way of admission to exhibition of cinematograph films in

multiplex screens shall be required to issue an electronic ticket.

The said electronic ticket is deemed to be a tax invoice, even if such ticket does not contain the details of the

recipient of service but contains the other information as mentioned under rule 46.

Moreover, supplier of such services in a screen other than multiplex screens also has been given an option to

follow above procedure.




B. Clarification in respect of goods sent/ taken out of India for exhibition or on consignment basis for export

promotion

Page C.30 of Volume 1 & Page G.21 of Volume 2 (5th Edition) issued by SATC

As per Section 7 of the CGST Act, for any activity or transaction to be considered a supply, it must satisfy

twin tests namely-

1. it should be for a consideration by a person; and

2. it should be in the course or furtherance of business.

The exceptions to the above are the activities enumerated in Schedule I of the CGST Act which are treated as

supply even if made without consideration.

Further, section 2(21) of the IGST Act defines “supply”, wherein it is clearly stated that it shall have the same

meaning as assigned to it in Section 7 of the CGST Act.

Section 16 of the IGST Act deals with “Zero rated supply”. The provisions contained in the said section read

as under:

“Zero Rated supply” means any of the following supplies of goods or services or both, namely:–

a. export of goods or services or both; or

b. supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone

unit.

Therefore, it can be concluded that only such “supplies” which are either “export” or are “supply to SEZ unit

/ developer” would qualify as zero-rated supply.

It is, accordingly, clarified that the activity of sending/ taking the goods out of India for exhibition or on

consignment basis for export promotion, except when such activity satisfy the tests laid down in Schedule I

of the CGST Act, do not constitute supply as the said activity does not fall within the scope of section 7 of the

CGST Act as there is no consideration at that point in time.

Since such activity is not a supply, the same cannot be considered as “Zero rated supply” as per the

provisions contained in section 16 of the IGST Act.

Since the activity of sending / taking specified goods out of India is not a supply, doubts have been raised by

the trade and industry on issues relating to maintenance of records, issuance of delivery challan / tax

invoice etc. These issues have been examined and the clarification on each of these points is as under: -

The above position is explained by way of illustration below:

S.NO. Issue Clarification

1 Whether any records

are required to be

maintained by

registered person for

sending / taking

specified goods out of

India?

The registered person dealing in specified goods shall maintain a

record of such goods as per the format at Annexure to this Circular.



2 What is the

documentation

required for sending /

taking the specified

goods out of India?

a) As clarified above, the activity of sending / taking specified goods

out of India is not a supply.

b) The said activity is in the nature of “sale on approval basis”

wherein the goods are sent / taken outside India for the approval

of the person located abroad and it is only when the said goods are

approved that the actual supply from the exporter located in India

to the importer located abroad takes place.

The activity of sending / taking specified goods is covered under

the provisions of sub-section (7) of section 31 of the CGST Act read

with rule 55 of Central Goods & Services Tax Rules, 2017

(hereinafter referred to as the “CGST Rules”).

c) The specified goods shall be accompanied with a delivery challan

issued in accordance with the provisions contained in rule 55 of the

CGST Rules.

d) As clarified above, the activity of sending / taking specified goods

out of India is not a zero-rated supply. That being the case,

execution of a bond or LUT, as required under section 16 of the

IGST Act, is not required

3 When is the supply of

specified goods sent /

taken out of India

said to take place?

a) The specified goods sent / taken out of India are required to be

either sold or brought back within the stipulated period of six

months from the date of removal as per the provisions contained in

sub-section (7) of section 31 of the CGST Act.

b) The supply would be deemed to have taken place, on the expiry of

six months from the date of removal, if the specified goods are

neither sold abroad nor brought back within the said period.

c) If the specified goods are sold abroad, fully or partially, within the

specified period of six months, the supply is effected, in respect of

quantity so sold, on the date of such sale.

4 Whether invoice is

required to be issued

when the specified

goods sent / taken

out of India are not

brought back, either

fully or partially,

within the stipulated

period?

a) When the specified goods sent / taken out of India have been

sold fully or partially, within the stipulated period of six months,

as laid down in sub-section (7) of section 31 of the CGST Act, the

sender shall issue a tax invoice in respect of such quantity of

specified goods which has been sold abroad, in accordance with

the provisions contained in section 12 and section 31 of the CGST

Act read with rule 46 of the CGST Rules.

b) When the specified goods sent / taken out of India have neither

been sold nor brought back, either fully or partially, within the

stipulated period of six months, as laid down in sub-section (7) of

section 31 of the CGST Act, the sender shall issue a tax invoice on

the date of expiry of six months from the date of removal, in

respect of such quantity of specified goods which have neither

been sold nor brought back, in accordance with the provisions

contained in section 12 and section 31 of the CGST Act read with

rule 46 of the CGST Rules.



5 Whether the refund

claims can be

preferred in respect

of specified goods

sent / taken out of

India but not brought

back?

a) As clarified in para 5 above, the activity of sending / taking

specified goods out of India is not a zero-rated supply. That being

the case, the sender of goods cannot prefer any refund claim

when the specified goods are sent / taken out of India.

b) It has further been clarified in answer to question no. 3 above that

the supply would be deemed to have taken place:

i. on the date of expiry of six months from the date of removal,

if the specified goods are neither sold nor brought back within

the said period; or

ii. on the date of sale, in respect of such quantity of specified

goods which have been sold abroad within the specified

period of six months.

c) It is clarified accordingly that the sender can prefer refund claim

even when the specified goods were sent / taken out of India

without execution of a bond or LUT, if he is otherwise eligible for

refund as per the provisions contained in sub-section (3) of section

54 the CGST Act read with sub-rule (4) of rule 89 of the CGST Rules,

in respect of zero rated supply of goods after he has issued the tax

invoice on the dates as has been clarified in answer to the question

no. 4 above.

It is further clarified that refund claim cannot be preferred under

rule 96 of CGST Rules as supply is taking place at a time after the

goods have already been sent / taken out of India earlier.

Example 1

M/s. ABC sends 100 units of specified goods out of India. The activity of merely sending/ taking such specified

goods out of India is not a supply. No tax invoice is required to be issued in this case but the specified goods

shall be accompanied with a delivery challan issued in accordance with the provisions contained in rule 55 of

the CGST Rules.

In case the entire quantity of specified goods is brought back within the stipulated period of 6 months from

the date of removal, no tax invoice is required to be issued as no supply has taken place in such a case.

In case, however, the entire quantity of specified goods is neither sold nor brought back within 6 months from

the date of removal, a tax invoice would be required to be issued for entire 100 units of specified goods in

accordance with the provisions contained in section 12 and section 31 of the CGST Act read with rule 46 of

the CGST Rules within the time period stipulated under section 31(7) of the CGST Act.

Example 2

M/s ABC sends 100 units of specified goods out of India. The activity of sending / taking such specified goods

out of India is not a supply. No tax invoice is required to be issued in this case but the specified goods shall be

accompanied with a delivery challan issued in accordance with the provisions contained in rule 55 of the CGST

Rules.

If 10 units of specified goods are sold abroad say after one month of sending / taking out and another 50

units are sold say after two months of sending / taking out, a tax invoice would be required to be issued for

10 units and 50 units, as the case may be, at the time of each of such sale in accordance with the provisions

contained in section 12 and section 31 of the CGST Act read with rule 46 of the CGST Rules.

If the remaining 40 units are not brought back within the stipulated period of six months from the date of

removal, a tax invoice would be required to be issued for 40 units in accordance with the provisions contained

in section 12 and section 31 of the CGST Act read with rule 46 of the CGST Rules.



Further, M/s ABC may claim refund of accumulated input tax credit in accordance with the provisions

contained in subsection (3) of section 54 of the CGST Act read with sub-rule (4) of rule 89 of the CGST Rules in

respect of zero-rated supply of 60 units (Export of goods)


Example (7 Marks)

An international trade exhibition is going to be held in United States of America in January. Aayaat Niryat

Export House (ANEH) has participated in it. It intends to send 100 units of taxable goods manufactured by

it to USA for display in the said exhibition.

ANEH is of the view that the activity of sending the goods out of India for exhibition is a zero-rated supply.

However, its tax advisor does not concur with its view. Examine whether the view of ANEH is correct.

Assuming that ANEH could not sell any goods at the exhibition and brings back entire 100 units to India (i)

in February, (ii) in August,

Discuss the requirement to issue invoice, if any, in each of the above independent cases.

Would your answer be different if ANEH sells an aggregate of 65 units of the taxable goods in USA

exhibition on different dates in January and remaining 35 units are brought back on 31st January.

The tax advisor of ANEH advises ANEH that the export of 65 units qualify as zero-rated supply and it

should apply for refund of the unutilized ITC in respect of the same.

Examine the technical veracity of the tax advisor’s advice.

Solution:

No, the view of ANEH that the activity of sending the goods out of India for exhibition is a zero-rated supply, is

not correct.

As per section 7 of the CGST Act, for any activity or transaction to be considered a supply, it must satisfy twin

tests namely-

(i) it should be for a consideration by a person; and

(ii) it should be in the course or furtherance of business.

The exceptions to the above are the activities enumerated in Schedule I of the CGST Act which are treated as

supply even if made without consideration.

Further, Section 2(21) of the IGST Act defines “supply”, wherein it is clearly stated that it shall have the same

meaning as assigned to it in section 7 of the CGST Act.

Section 16 of the IGST Act defines “zero rated supply” as any of the following supplies of goods or services

or both, namely:–

(a) export of goods or services or both; or

(b) supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit.

Thus, only such “supplies” which are either “export” or are “supply to SEZ unit/ developer” would qualify as

zero-rated supply.

In view of the above provisions, Circular No. 108/27/2019 GST dated 18.07.2019 clarified that the activity of

sending/ taking the goods out of India for exhibition or on consignment basis for export promotion, except

when such activity satisfy the tests laid down in Schedule I of the CGST Act, do not constitute supply as the



said activity does not fall within the scope of section 7 of the CGST Act as there is no consideration at that

point in time. Since such activity is not a supply, the same cannot be considered as “zero rated supply” as per

the provisions contained in section 16 of the IGST Act.

The said circular further clarified that the activity of sending/taking goods out of India for exhibition is in the

nature of “sale on approval basis” wherein the goods are sent/ taken outside India for the approval of the

person located abroad and it is only when the said goods are approved that the actual supply from the

exporter located in India to the importer located abroad takes place.

The activity of sending/ taking specified goods is covered under the provisions of section 31(7) of the CGST

Act, 2017 read with rule 55 of CGST Rules, 2017. As per said provisions, in case of the goods being sent or

taken on approval for sale, the invoice shall be issued before/at the time of supply or 6 months from the date

of removal, whichever is earlier. The goods which are taken for supply on approval basis can be moved from

the place of business of the registered supplier to another place within the same State or to a place outside

the State on a delivery challan.

In view of the said provisions, ANEH is not required to issue invoice at the time of taking the goods out of

India since the activity of merely sending/ taking the taxable goods out of India is not a supply. However,

the goods shall be accompanied with a delivery challan.

Further,

(i) In case the entire quantity of goods (100 units) sent to USA is not sold but brought back by ANEH in

February, i.e. within the stipulated period of 6 months from the date of removal, no tax invoice is required

to be issued as no supply has taken place in such a case.

(ii) In case, the entire quantity of goods (100 units) sent to USA is not sold and brought back by ANEH in

August, i.e. after 6 months from the date of removal, a tax invoice is required to be issued for entire 100

units of taxable goods in accordance with the provisions contained in section 12 [determining time of

supply of goods] and section 31 [tax invoice] of the CGST Act, 2017 read with rule 46 [tax invoice] of the

CGST Rules, 2017 within the time period stipulated under section 31(7) of the CGST Act, 2017.

However, if an aggregate of 65 units of the goods are sold in USA exhibition by ANEH on different dates in

January (i.e. within the stipulated period of 6 months), a tax invoice would be required to be issued for these

units, at the time of each of these sales, in accordance with the provisions contained in section 12 and

section 31 of the CGST Act read with rule 46 of the CGST Rules.

When the goods are sold in exhibition, actual supply from the exporter in India to the importer located abroad

takes place and this supply qualifies as export. Export of goods is a zero-rated supply in terms of section

16(1)(a) of the IGST Act, 2017.

If the remaining 35 units are brought back on 31st January, i.e. within the stipulated period of 6 months from

the date of removal, no tax invoice is required to be issued as no supply has taken place in such a case.

Further, tax advisor’s advice is technically correct. Since the activity of sending / taking specified goods out

of India is not a zero-rated supply, execution of a bond/Letter of Undertaking (LUT), as required under

section 16 of the IGST Act, is not required.

[However, the sender can prefer refund claim even when the specified goods were sent / taken out of India

without execution of a bond/LUT, if he is otherwise eligible for refund as per the provisions contained in

section 54(3) of the CGST Act, 2017 read with rule 89(4) of the CGST Rules, 2017 in respect of zero-rated

supply of 65 units.]



CREDIT AND DEBIT NOTES [SECTION 34] THIS TOPIC IS REDRATED IN CLASS NOTES. NO NEW AMENDMENT AS SUCH

Page G.16 to G.18 of Volume 2 (5th Edition) issued by SATC

(1) Where one or more tax invoices have been issued for supply of any goods or services or both and

(a) the taxable value or tax charged in that tax invoice is found to exceed the taxable value or tax

payable in respect of such supply, or

(b) where the goods supplied are returned by the recipient, or

(c) where goods or services or both supplied are found to be deficient,

the registered person, who has supplied such goods or services or both, may issue to the recipient one or

more credit notes for supplies made in a financial year containing such particulars as may be prescribed.

(2) Any registered person who issues a credit note in relation to a supply of goods or services or both shall declare

the details of such credit note in the return for the month during which such credit note has been issued but

not later than September following the end of the financial year in which such supply was made, or the date

of furnishing of the relevant annual return, whichever is earlier, and the tax liability shall be adjusted in such

manner as may be prescribed.

However, no reduction in output tax liability of the supplier shall be permitted, if the incidence of tax and

interest on such supply has been passed on to any other person.

(3) Where one or more tax invoices have been issued for supply of any goods or services or both and the taxable

value or tax charged in that tax invoice is found to be less than the taxable value or tax payable in respect of

such supply, the registered person, who has supplied such goods or services or both, shall issue to the

recipient one or more debit notes for supplies made in a financial year containing such particulars as may be

prescribed.

(4) Any registered person who issues a debit note in relation to a supply of goods or services or both shall declare

the details of such debit note in the return for the month during which such debit note has been issued and

the tax liability shall be adjusted in such manner as may be prescribed.

A. One or more credit/ debit notes can be issued for multiple invoices [Subsections (1) and (3) of section 34 of

the CGST Act]

Earlier, a credit/debit note, which is issued by the registered person under section 34, was required to be

issued invoice-wise. This used to cause avoidable compliance burden for tax payers.

The CGST (Amendment) Act, 2018 has amended sub-section (1) of section 34 to allow the registered person to

issue one (consolidated) or more credit notes in respect of multiple invoices issued in a financial year without

linking the same to individual invoices.

Similarly, sub-section (3) of section 34 has been amended to allow the registered person to issue one

(consolidated) or more debit notes in respect of multiple invoices issued in a financial year without linking the

same to individual invoices.



B. Issuance of Credit Note:

During the course of trade or commerce, after the invoice has been issued, there can be situations like:

a. The supplier has erroneously declared a value which is more than the actual value of the goods or

services provided.

b. The supplier has erroneously declared a higher tax rate than what is applicable for the kind of the goods

or services or both supplied.

c. The quantity received by the recipient is less than what has been declared in the tax invoice.

d. The quality of the goods or services or both supplied is not to the satisfaction of the recipient thereby

necessitating a partial or total reimbursement on the invoice value

e. Any other similar reasons.

In order to regularize these kinds of situations, the supplier is allowed to issue a document called as credit

note to the recipient. Once the credit note has been issued, the tax liability of the supplier will reduce.

The credit note is a convenient and legal method by which the value of the goods or services in the original

tax invoice can be amended or revised.

The issuance of the credit note easily allows the supplier to decrease his tax liability in his returns without

requiring him to undertake any tedious process of refunds.

It is important to note that credit note(s) are not permitted to be issued in case secondary discounts are

allowed by the supplier since the tax liability of the supplier does not get reduced in such case.

However, supplier can issue financial/ commercial credit note(s) to reduce the value of supply payable by

the recipient to the supplier

[Circular 92/11/2019 GST dated 07.03.2019]

C. Issuance of Debit Note:

There can be situations when after the invoice has been issued:

a) The supplier has erroneously declared a value which is less than the actual value of the goods or services

or both provided.

b) The supplier has erroneously declared a lower tax rate than what is applicable for the kind of the goods

or services or both supplied.

c) The quantity received by the recipient is more than what has been declared in the tax invoice.

d) Any other similar reasons.

In order to regularize these kinds of situations, the supplier is allowed to issue a document called as debit

note to the recipient.

Debit note shall include a supplementary invoice.

The issuance of a debit note/supplementary invoice creates additional tax liability. The treatment of a debit

note/supplementary invoice is identical to the treatment of a tax invoice as far as returns and payment are

concerned.



The debit note/supplementary invoice is a convenient and legal method by which the value of the goods

and/or services in the original tax invoice can be enhanced. The issuance of the debit note allows the supplier

to pay his enhanced tax liability in his returns without requiring him to undertake any other tedious process.

D. Details of Debit Note/Credit Note to be declared in Return

I. Credit Note:

Any registered person who issues a credit note in relation to a supply of goods or services or both shall declare

the details of such credit note in the return for the month during which such credit note has been issued but

not later than:

a. September following the end of the financial year in which such supply was made,

or

b. the date of furnishing of the relevant annual return,

whichever is earlier.

The tax liability shall be adjusted in such manner as may be prescribed. However, no reduction in output tax

liability of the supplier shall be permitted, if the incidence of tax and interest on such supply has been

passed on to any other person.

II. Debit Note:

Any registered person who issues a debit note in relation to a supply of goods or services or both shall declare

the details of such debit note in the return for the month during which such debit note has been issued. The

tax liability shall be adjusted in such manner as may be prescribed.

E. New contents prescribed for credit and debit notes – Rule 53(1A) [from 01/02/2019]

The new sub-rule (1A) sets out the contents of credit and debit note as under-

a. name, address and GSTIN of the supplier;

b. nature of the document;

c. a consecutive serial number not exceeding 16 characters, in one or multiple series, containing alphabets

or numerals or special characters-hyphen or dash and slash symbolised as “-” and “/” respectively, and

any combination thereof, unique for a financial year;

d. date of issue of the document;

e. name, address and GSTIN or UIN, if registered, of the recipient;

f. name and address of the recipient and the address of delivery, along with the name of State and its code,

if such recipient is un-registered;

g. serial number(s) and date(s) of the corresponding tax invoice(s) or, as the case may be, bill(s) of supply;

h. value of taxable supply of goods or services, rate of tax and the amount of the tax credited or, as the

case may be, debited to the recipient; and

i. signature or digital signature of the supplier or his authorised representative.



AMENDMENT IN “E-WAY BILL”

A. Validity of e-way bill in case of multimodal shipment in which at least one leg involves transport by ship

[Rule 138(10) of the CGST Rules]

Page H.6 of Volume 2 (5th


Rule 138(10) of CGST Rules provides validity period of e-way bill for over dimensional cargo and for cases

other than over dimensional cargo. The sub-rule (10) of rule 138 has been amended to also provide the

validity period of e-way bill for multimodal shipment in which at least one leg involves transport by ship.

Thus, amended sub- rule (10) lays down as under-

S. No. Distance within country Validity period from relevant date

1 Upto 100 km One day in cases other than Over Dimensional Cargo

or multimodal shipment in which at least one leg

involves transport by ship

2 For every 100 km or part thereof

thereafter

One additional day in cases other than Over

Dimensional Cargo or multimodal shipment in which

at least one leg involves transport by ship

3 Upto 20 km One day in case of Over Dimensional Cargo or

multimodal shipment in which at least one leg


4 For every 20 km or part thereof

thereafter

One additional day in case of Over Dimensional Cargo

or multimodal shipment in which at least one leg


Provided further that where, under circumstances of an exceptional nature, including trans-shipment, the

goods cannot be transported within the validity period of the e-way bill, the transporter may extend the

validity period after updating the details in Part B of FORM GST EWB-01, if required.

Provided also that the validity of the e-way bill may be extended within 8 hours from the time of its expiry

B. Restriction on furnishing of information in PART A of FORM GST EWB-01 [RULE 138E]

Page H.10 of Volume 2 (5th Edition) issued by SATC

Notwithstanding anything contained in sub-rule (1) of rule 138, no person (including a consignor, consignee,

transporter, an e-commerce operator or a courier agency) shall be allowed to furnish the information in

PART A of FORM GST EWB-01 in respect of a registered person, whether as a supplier or a recipient, who,

a. being a person paying tax under section 10 or availing the benefit of notification No. 02/2019– Central

Tax (Rate), dated the 7th March, 2019, has not furnished the statement in FORM GST CMP-08 for two

consecutive quarters; or

b. being a person other than a person specified in clause (a), has not furnished the returns for a

consecutive period of two months:

Provided that the Commissioner may, on receipt of an application from a registered person, on sufficient

cause being shown and for reasons to be recorded in writing, by order, allow furnishing of the said

information in PART A of FORM GST EWB 01, subject to such conditions and restrictions as may be specified

by him:

Provided further that no order rejecting the request of such person to furnish the information in PART A of

FORM GST EWB 01 under the first proviso shall be passed without affording the said person a reasonable

opportunity of being heard:

Provided also that the permission granted or rejected by the Commissioner of State tax or Commissioner of

Union territory tax shall be deemed to be granted or, as the case may be, rejected by the Commissioner.



AMENDMENT IN “ITC CHAPTER”

A. Restriction on availment of input tax credit (ITC) in respect of invoices/debit notes not uploaded by the

suppliers in their GSTR-1s [New sub-rule (4) inserted in rule 36 of the CGST Rules]

Page I.7 of Volume 2 (5th


Section 16(2) of the CGST Act provides certain conditions for availing ITC wherein one of the conditions is that

the taxpayer must be in possession of the tax invoice or other tax paying document in respect of which he is

claiming the ITC. Rule 36 of CGST Rules lays down the documents and other conditions basis which the

registered person can claim ITC.

With effect from 09.10.2019, a new sub-rule (4) has been introduced in rule 36 to specify the quantum of ITC

that can be claimed against the invoices/debit notes uploaded and invoices/debit notes not uploaded, by the

supplier. As per sub-rule (4) of rule 36, ITC to be availed by a registered person in respect of invoices or debit

notes, the details of which have not been uploaded by the suppliers in GSTR-1, cannot exceed 20% of the

eligible credit available in respect of invoices or debit notes the details of which have been uploaded by the

suppliers in GSTR-1.

This can be further understood as under-

Case Amount of ITC to be claimed by recipient

Where invoice/debit note has been

uploaded by the supplier in his GTSR-1

Full ITC, if all other conditions of availing ITC are fulfilled

Where invoice/debit note has not been

uploaded by supplier in his GTSR-1

20% of the eligible ITC available in respect of the uploaded

invoices/debit notes.

However, the ITC so claimed should not exceed the actual

eligible ITC available in respect of the invoices not

uploaded.


Example:

Mr. Vijay, a registered supplier, receives 100 invoices (for inward supply of goods/ services) involving GST

of ` ` ` ` 10 lakh, from various suppliers during the month of October 20XX.

Compute the ITC that can be claimed by Mr. Vijay in his GSTR-3B for the month of October 20XX to be filed

by 20th November 20XX in the following independent cases assuming that GST of ` ` ` ` 10 lakh is otherwise

eligible for ITC:

Case I

Out of 100 invoices, 80 invoices involving GST of ` ` ` ` 6 lakh have been uploaded by the suppliers in their

respective GSTR-1s filed on the prescribed due date therefor.

Case II

Out of 100 invoices, 75 invoices involving GST of ` ` ` ` 8.5 lakh have been uploaded by the suppliers in their

respective GSTR-1s filed on the prescribed due date therefor.



Answer:

As per sub-rule (4) of rule 36, ITC to be availed by a registered person in respect of invoices or debit notes, the

details of which have not been uploaded by the suppliers in GSTR-1, cannot exceed 20% of the eligible credit

available in respect of invoices or debit notes the details of which have been uploaded by the suppliers in

GSTR-1.

Case I

ITC to be claimed by Mr. Vijay in his GSTR-3B for the month of October 20XX to be filed by 20th November

20XX will be computed as under-

Invoices

Amount of ITC involved in

the invoices (`̀̀̀)

Amount of ITC that can be availed

(`̀̀̀)

In respect of 80 invoices uploaded in

GSTR-1

6 lakh

6 lakh [Refer Note 1 below]

In respect of 20 invoices not

uploaded in GSTR-1

4 lakh

1.2 lakh [Refer Note 2 below]

Total 10 lakh 7.2 lakh

Notes:

a. In respect of invoices uploaded by the suppliers in their GSTR-1, full ITC can be availed.

b. The ITC in respect of invoices not uploaded has to be restricted to 20% of eligible ITC in respect of

invoices uploaded in GSTR-1. Thus, in respect of 20 invoices not uploaded in GSTR-1s, the ITC has been

restricted to `̀̀̀ 1.2 lakh [20% of ` 6 lakh].

Case II

ITC to be claimed by Mr. Vijay in his GSTR-3B for the month of October 20XX to be filed by 20th November

20XX will be computed as under-

Invoices

Amount of ITC involved in

the invoices (`̀̀̀)

Amount of ITC that can be availed

(`̀̀̀)

In respect of 75 invoices uploaded in

GSTR-1

8.5 lakh


In respect of 25 invoices not

uploaded in GSTR-1

1.5 lakh


Total

10 lakh

10 lakh

Notes:

a. In respect of invoices uploaded by the suppliers in their GSTR-1, full ITC can be availed.

b. The ITC in respect of invoices not uploaded has to be restricted to 20% of eligible ITC in respect of

invoices uploaded in GSTR-1.

However, since in this case, the actual ITC [`̀̀̀ 1.5 lakh] in respect of 25 invoices not uploaded in GSTR-1

does not exceed 20% of the eligible ITC in respect of invoices uploaded in GSTR-1s [`̀̀̀ 1.7 lakh (20% of

`̀̀̀ 8.5 lakh)], actual amount of ITC can be availed.



B. 20% ITC restrictions clarified by CBIC Circular No. 123/42/2019– GST dated 11.11.2019:

Various issues relating to implementation of the said sub-rule have been examined and the clarification on

each of these points is as under: –

S.No Issue Clarification

1 What are the

invoices /debit

notes on which

the restriction

under rule 36(4)

of the CGST Rules

shall apply?

The restriction of availment of ITC is imposed only in respect of those invoices /

debit notes, details of which are required to be uploaded by the suppliers

under sub-section (1) of section 37 and which have not been uploaded.

Therefore, taxpayers may avail full ITC in respect of IGST paid on import,

documents issued under RCM, credit received from ISD etc. which are outside

the ambit of sub-section (1) of section 37, provided that eligibility conditions

for availment of ITC are met in respect of the same.

The restriction of 36(4) will be applicable only on the invoices / debit notes

on which credit is availed after 09.10.2019.

Whether the said

restriction is to

be calculated

supplier wise or

on consolidated

basis?

The restriction imposed is not supplier wise. The credit available under sub-

rule (4) of rule 36 is linked to total eligible credit from all suppliers against all

supplies whose details have been uploaded by the suppliers. Further, the

calculation would be based on only those invoices which are otherwise eligible

for ITC.

Accordingly, those invoices on which ITC is not available under any of the

provision (say under sub-section (5) of section 17) would not be considered for

calculating 20 percent of the eligible credit available.

FORM GSTR-

2A being a

dynamic

document, what

would be the

amount of input

tax credit that is

admissible to the

taxpayers for a

particular tax

period in respect

of invoices /

debit notes

whose details

have not been

uploaded by the

suppliers?

The amount of input tax credit in respect of the invoices / debit notes whose

details have not been uploaded by the suppliers shall not exceed 20% of the

eligible input tax credit available to the recipient in respect of invoices or debit

notes the details of which have been uploaded by the suppliers under sub-

section (1) of section 37 as on the due date of filing of the returns in FORM

GSTR-1 of the suppliers for the said tax period.

The taxpayer may have to ascertain the same from his auto populated FORM

GSTR 2A as available on the due date of filing of FORM GSTR-1 under sub-

section (1) of section 37.

How much ITC a

registered tax

payer can avail in

his FORM GSTR-

3B in a month in

case the details

of some of the

invoices have not

been uploaded by

Sub-rule (4) of rule 36 prescribes that the ITC to be availed by a registered

person in respect of invoices or debit notes, the details of which have not been

uploaded by the suppliers under sub-section (1) of section 37, shall not exceed

20 per cent. of the eligible credit available in respect of invoices or debit notes

the details of which have been uploaded by the suppliers under sub-section (1)

of section 37. The eligible ITC that can be availed is explained by way of

illustrations, in a tabulated form, below.



the suppliers

under sub-

section (1) of

section 37.

In the illustrations, say a taxpayer “R” receives 100 invoices (for inward supply

of goods or services) involving ITC of ` ` ` ` 10 lakhs, from various suppliers during

the month of Oct, 2019 and has to claim ITC in his FORM GSTR-3B of October,

to be filed by 20th Nov, 2019.

Details of

suppliers’

invoices for

which recipient

is eligible to

take ITC

20% of eligible

credit where

invoices are

uploaded

Eligible ITC to be

taken in GSTR-

3B to be filed by

20th Nov.

Case 1 Suppliers have

furnished in

FORM GSTR-1

80 invoices

involving ITC of `

6 lakhs as on the

due date of

furnishing of the

details of

outward supplies

by the suppliers.

` 1,20,000/- Rs. 6,00,000 (i.e.

amount of

eligible ITC

available, as per

details uploaded

by the suppliers)

+ Rs.1,20,000

(i.e. 20% of

amount of

eligible ITC

available, as per

details uploaded

by the suppliers)

= Rs. 7,20,000/-


furnished in

FORM GSTR-1

80 invoices

involving ITC of `

7 lakhs as on the

due date of

furnishing of the

details

of outward

supplies by the

suppliers.

` 1,40,000/-

` 7,00,000 +

` 1,40,000 =

` 8,40,000/-


furnished in

FORM GSTR-1

75 invoices

having ITC of

` 8.5 lakhs as on

the due date of

furnishing of the

details of

outward supplies

by the suppliers.

` 1,70,000/- ` 8,50,000/- + `

1,50,000/-* =

` 10,00,000

* The additional

amount of ITC

availed shall be

limited to ensure

that the total ITC

availed does not

exceed the total

eligible ITC.

When can

balance ITC be

claimed in case

availment of ITC

The balance ITC may be claimed by the taxpayer in any of the succeeding

months provided details of requisite invoices are uploaded by the suppliers. He

can claim proportionate ITC as and when details of some invoices are

uploaded by the suppliers provided that credit on invoices, the details of which



is restricted as

per the

provisions of rule

36(4)?

are not uploaded (under sub-section (1) of section 37) remains under 20 per

cent of the eligible input tax credit, the details of which are uploaded by the

suppliers.

Full ITC of balance amount may be availed, in present illustration by “R”, in

case total ITC pertaining to invoices the details of which have been uploaded

reaches approx ` 8.3 lakhs (` 10 lakhs /1.20).

In other words, taxpayer may avail full ITC in respect of a tax period, as and

when the invoices are uploaded by the suppliers to the extent Eligible ITC/

1.2.

The same is explained for Case No. 1 and 2 of the illustrations provided at Sl.

No. 3 above as under:

Case 1 “R” may avail balance ITC of ` 2.8 lakhs in case suppliers

upload details of some of the invoices for the tax period

involving ITC of ` 2.3 lakhs out of invoices involving ITC of `

4 lakhs details of which had not been uploaded by the

suppliers. [` 6 lakhs + ` 2.3 lakhs = ` 8.3 lakhs]

Case 2 “R” may avail balance ITC of ` 1.6 lakhs in case suppliers

upload details of some of the invoices involving ITC of `

1.3 lakhs out of outstanding invoices involving ` 3 lakhs. [`

7 lakhs + ` 1.3 lakhs = ` 8.3 lakhs]



AMENDMENT IN “RETURN CHAPTER”

A. Communication of details of GSTR-1 to the recipient of supply

Page J.8 of Volume 2 (5th Edition) issued by SATC

The details of outward supplies for a month furnished by the supplier are communicated and made available

electronically (auto populated) to the respective recipient(s) in Part A of Form GSTR- 2A/ Form GSTR-4A (in

case of registered person opting for composition levy/Notification No. 2/2019 CT (R) dated 07.03.2019)

through the common portal after the 10th day of the succeeding month (due date of filing of GSTR-1).

B. Form GSTR-3B to be treated as a return furnished under section 39 of the CGST Act

[Rule 61(5) of the CGST Rules]


Section 39(1) of the CGST Act prescribes a monthly return in Form GSTR-3 for every registered person, other

than input service distributor, a non-resident taxable person, a composition taxpayer, person deducting tax at

source, person collecting tax at source i.e., an electronic commerce operator and supplier of OIDAR services.

However, filing of GSTR-3 has been deferred by the GST Council.

Rule 61(5) of CGST Rules provided that where the time limit for furnishing of details in Form GSTR-1 under

section 37 has been extended and the circumstances so warrant, the Commissioner may, by notification,

specify the manner and conditions subject to which the return shall be furnished in Form GSTR-3B.

The said rule has been amended retrospectively with effect from 01.07.2017, to specify that the return in

Form GSTR-3B is the return under section 39(1) and that where a return in GSTR-3B is furnished by a person

then such person shall not be required to furnish the return in Form GSTR-3.


C. Person supplying online information technology and database access retrieval [OIDAR] services not

required to furnish annual return and reconciliation statement


Section 44(1) of the CGST Act read with rule 80(1) of the CGST Rules requires every registered person, other

than an Input Service Distributor, a person paying tax under section 51 or section 52 of the CGST Act, a casual

taxable person and a non-resident taxable person, to furnish an annual return.

Further, Sections 35(3) & 44(2) of the CGST Act read with rule 80(3) of the CGST Rules require every registered

person, whose aggregate turnover during a financial year exceeds ` 2 crore, to get his accounts audited, and

furnish the annual return along with a copy of audited annual accounts and a reconciliation statement.

The Government has notified the persons compulsorily registered under section 24(xi) of the CGST Act read

with rule 14 of CGST Rules supplying OIDAR services from a place outside India to a person in India, other

than a registered person, as the class of registered persons who shall not be required to furnish -

a. the annual return under section 44(1) of the CGST Act read with rule 80(1) of the CGST Rules, and

b. the reconciliation statement under section 44(2) of the CGST Act read with rule 80(3) of the CGST Rules




D. Filing of annual return under Section 44(1) of the CGST Act for F.Y. 2017-18 and 2018-19 made optional for

small taxpayers whose aggregate turnover is less than ` ` ` ` 2 crores and who have not filed the said return

before the due date

Page J.19 of Volume 2 (5th


Filing of annual return (GSTR- 9) under section 44(1) of CGST Act read with rule 80(1) of CGST Rules, in respect

of financial years 2017-18 and 2018-19, has been made voluntary for the registered persons whose turnover

is less than ` 2 crore and who have not furnished the said annual return before the due date.

The annual return shall be deemed to be furnished on the due date if it has not been furnished before the due

date.


E. Details of tax deducted and tax collected to be made available to the deductee and collectee respectively

on the common portal after filing of GSTR-7 and GSTR-8 respectively [Rule 66(2) of the CGST Rules]

Whenever taxable goods and/or services are supplied to a department of the Central/ State Government or

other specified persons, the recipient is required to deduct tax under section 51 of the CGST Act.

Earlier, the details of tax deducted furnished by the deductor in GSTR-7 was made available to each supplier

in Part C of Form GSTR-2A / Form GSTR-4A (in case of registered person opting for composition levy) on the

common portal after the due date of filing of Form GSTR-7 [Rule 66(2) of the CGST Rules].

The deductee could include the details of TDS reflecting in Part C of GSTR-2A in his Form GSTR-2 by accepting

the same. However since, GSTR-2 has been kept in abeyance, this provision has been amended.

Sub-rule (2) of rule 66 has been amended to lay down that the details of TDS furnished by the deductor in

GSTR-7 shall be made available electronically to each of the deductees on the common portal after filing of

Form GSTR-7 for claiming the amount of tax deducted in his electronic cash ledger after validation.

Similarly, the details of TCS furnished by operator in GSTR-8 were made available to each supplier in Part C of

Form GSTR-2A on the common portal after the due date of filing of Form GSTR-8 under rule 67(2) of the CGST

Rules.

Sub-rule (2) of rule 67 has been amended to provide that the details of TCS furnished by the collector in GSTR-

8 is made available electronically to each of the collectees on the common portal after filing of Form GSTR-8

for claiming the amount of tax collected in his electronic cash ledger after validation.




F. Composition taxpayers and tax payers paying tax under Notification No. 2/2019-CT, dated 01.03.2019 to

file return annually and make payment quarterly (amendment applicable from Dec 2019 exam only)

Page D.22 of Volume 1 (5th Edition) issued by SATC

A special procedure for furnishing of return and payment of tax has been prescribed for the following

persons:

a. registered persons paying composition tax

b. registered person paying tax by availing the benefit of Notification No. 02/2019 CT (R) dated 07.03.2019.

Such persons will:

a. furnish a statement in the prescribed form (Form GST CMP-08) containing details of payment of self -

assessed tax, for every quarter (or part of the quarter), by 18th day of the month succeeding such quarter.

b. furnish a return (GSTR 4) for every financial year (or part of the financial year), on or before 30th day of

April following the end of such financial year.

The registered persons paying tax by availing the benefit of Notification No. 02/2019-CT(R), dated

07.03.2019 will be deemed to have complied with the provisions of section 37 and section 39 of the CGST

Act if they have furnished the prescribed statement and GSTR 4 as mentioned above.



AMENDMENT IN “EXEMPTION CHAPTER”

A. Amendment in Existing Entries

1. Services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or

lodging purposes, having Value of Supply of a unit of accommodation below below or equal to ` ` ` ` 1,000

per day or equivalent. [Amendment]

Page K.6 of Volume 2 (5th Edition) issued by SATC

Earlier, accommodation services were exempt only where value of supply per unit per day was less than

`̀̀̀ 1,000/-, i.e., such services were taxable where value of supply per unit per day was ` ` ` ` 1,000/-or more.

However, now, exemption has also been extended in a case where value of supply per unit per day is

`̀̀̀ 1,000/- i.e., such services are taxable only where value of supply per unit per day exceeds ` ` ` ` 1,000/-.

Example (3 Marks):

NEW QUESTION BASED ON AMENDMENT - Holiday Guest House, situated at Shimla, provides

boarding & lodging services to tourists at economical cost. The charges of a single deluxe room per

day are ` ` ` ` 999. Mr. X has booked one deluxe room for two days during Christmas holidays. You are

required to determine whether GST is payable by Holiday Guest House on the above booking. If yes,

determine the amount of GST so payable.

Will your answer change, if the charges of a single deluxe room per day charged by Holiday Guest

House are `̀̀̀ 1,000?

Solution:

Services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or

lodging purposes, having value of supply of a unit of accommodation below or equal to ` 1,000 per day

or equivalent have been exempted from GST vide an exemption notification.

Thus, in view of the above-mentioned provisions, GST is not payable by Holiday Guest House on the

booking done by Mr. X as the charges for a unit of accommodation per day is less than ` 1,000.

The answer will remain the same even if the charges of a single deluxe room per day is ` 1,000 as the

exemption is also available in the case where value of supply of a unit of accommodation per day is

` 1,000/ i.e., such services are taxable only where value of supply of a unit of accommodation per day

exceeds ` 1,000/-. Thus, no GST is payable by Holiday Guest House on the booking done by Mr. X even

if the charges of a single deluxe room per day is ` 1,000.

2. Services provided by the Central Government, State Government, Union territory or local authority to a

business entity with an aggregate turnover of up to ` 20 lakh (` 10 lakh in case of a Special Category

States) in the preceding FY such amount in the preceding FY as makes it eligible for exemption from

registration under the CGST Act, 2017.

Explanation - For the purposes of this entry, it is hereby clarified that the provisions of this entry shall

not be applicable to following services:-

(i) services by the Department of Posts by way of speed post, express parcel post, life insurance, and

agency services provided to a person other than the Central Government, State Government, Union

territory;

(ii) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;

(iii) transport of goods or passengers

(iv) services by way of renting of immovable property.

Page K.9 of Volume 2 (5th




3. Services by way of transportation of goods by an aircraft from customs station of clearance in India to a

place outside India upto 30.09.2020 [Exemption upto 30.09.2019]


4. Services by way of transportation of goods by a vessel from customs station of clearance in India to a

place outside India upto 30.09.2020 [Exemption upto 30.09.2019]


5. Services by way of giving on hire –

(a) to a state transport undertaking, a motor vehicle meant to carry more than 12 passengers; or

(b) NEW: to a local authority, an Electrically operated vehicle (EOV) meant to carry more than 12

passengers;

[EOV means vehicle falling under Chapter 87 in the First Schedule to the Customs Tariff Act, 1975

which is run solely on electrical energy derived from an external source or from one/more electrical

batteries fitted to such road vehicle.]

With a view to encourage the extensive usage of environment friendly electric vehicles, GST

exemption has been extended to hiring of electric buses by the local authorities.

(c) to a goods transport agency, a means of transportation of goods.

(d) motor vehicle for transport of students, faculty and staff, to a person providing services of

transportation of students, faculty and staff to an educational institution providing services by way

of pre-school education and education upto higher secondary school or equivalent


6. W.e.f 1-10-2019: exemption notification has been amended to exempt services of general insurance

business provided under “Bangla Shasya Bima” scheme.


7. Services provided by- Page K.24 of Volume 2 (5th Edition) issued by SATC

(a) an arbitral tribunal to –

(i) any person other than a business entity; or

(ii) a business entity with an aggregate turnover up to ` 20 lakh (` 10 lakh in the case of Special

Category States) in the preceding financial year such amount in the preceding FY as makes it

eligible for exemption from registration under the CGST Act, 2017;

(iii) the Central Government, State Government, Union territory, local authority, Governmental

Authority or Government Entity

(b) a partnership firm of advocates or an individual as an advocate other than a senior advocate, by

way of legal services to-

(i) an advocate or partnership firm of advocates providing legal services;

(ii) any person other than a business entity; or

(iii) a business entity with an aggregate turnover up to ` 20 lakh (` 10 lakh in the case of Special


eligible for exemption from registration under the CGST Act, 2017;

(iv) the Central Government, State Government, Union territory, local authority, Governmental


(c) a senior advocate by way of legal services to-

(i) any person other than a business entity; or

(ii) a business entity with an aggregate turnover up to ` 20 lakh (` 10 lakh in the case of Special


eligible for exemption from registration under the CGST Act, 2017;.

(iii) the Central Government, State Government, Union territory, local authority, Governmental




B. INSERTION OF NEW ENTRY – NEW EXEMPTIONS


1. Services by way of right to admission to the events organised under FIFA U-17 Women's World Cup

2020.

2. Services provided by and to Fédération Internationale de Football Association (FIFA) and its subsidiaries

directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2020 to be hosted

in India.

Condition to be fulfilled:

Director (Sports), Ministry of Youth Affairs and Sports have to certify that the services are directly or

indirectly related to any of the events under FIFA U-17 Women’s World Cup 2020.

3. Services of life insurance provided/agreed to be provided by the Central Armed Police Forces (under

Ministry of Home Affairs) Group Insurance Funds to their members under the Group Insurance Schemes

of the concerned Central Armed Police Force.

4. Services by way of storage / warehousing of cereals, pulses, fruits, nuts and vegetables, spices, copra,

sugarcane, jaggery, raw vegetable fibres such as cotton, flax, jute etc., indigo, unmanufactured tobacco,

betel leaves, tendu leaves, coffee and tea.

Example (3 Marks):

NEW QUESTION BASED ON AMENDMENT - M/s Damodar Ltd. provides services by way of storage of

seasonal fruits and vegetables in Bhatinda, Punjab. The monthly rental for a godown is ` ` ` ` 15,000.

Examine whether GST is payable by M/s Damodar Ltd.

Solution:

Services by way of storage/ warehousing of cereals, pulses, fruits, nuts and vegetables, spices, copra,

sugarcane, jaggery, raw vegetable fibres such as cotton, flax, jute etc., indigo, unmanufactured

tobacco, betel leaves, tendu leaves, coffee and tea have been exempted from GST under an

exemption notification under GST.

Thus, no GST is payable on the services provided by M/s Damodar Ltd. by way of storage of seasonal

fruits and vegetables in Bhatinda, Punjab.



C. Clarification regarding applicability of GST on delayed payment charges in case of late payment of Equated

Monthly Instalments (EMI)


Issue: Whether GST is applicable on additional / penal interest on the overdue loan? Whether such penal

interest would be exempt under Entry 27 of exemption notification or it would be taxable treating it as

consideration for liquidated damages?

Clarification: As per the provisions of Section 15(2)(d) of the CGST Act, the value of supply shall include

interest or late fee or penalty for delayed payment of any consideration for any supply. Entry 27 of exemption

notification, inter alia, exempts the services by way of extending deposits, loans or advances in so far as the

consideration is represented by way of interest or discount (other than interest involved in credit card

services).

Here, interest means interest payable in any manner in respect of any moneys borrowed/debt incurred

(including a deposit, claim or other similar right or obligation), but does not include any service fee or other

charge in respect of the moneys borrowed or debt incurred or in respect of any credit facility which has not

been utilised.

There are two transaction options involving EMI that are prevalent in the trade. In view of the provisions of

law discussed in preceding para, these two options, alongwith the GST applicability on them, have been

explained with the help of illustrations as under -

Illustration – 1: X sells a mobile phone to Y. The cost of mobile phone is ` 40,000/-. However, X gives Y an

option to pay in installments, ` 11,000/- every month before 10th day of the following month, over next four

months (` 11,000/- × 4 = ` 44,000/-). As per the contract, if there is any delay in payment by Y beyond the

scheduled date, Y would be liable to pay additional/ penal interest amounting to ` 500/- per month for the

delay.

In some instances, X is charging Y ` 40,000/- for the mobile and is separately issuing another invoice for

providing the services of extending loans to Y, the consideration for which is the interest of 2.5% per month

and an additional/ penal interest amounting to ` 500/- per month for each delay in payment.

In this case, the amount of penal interest is to be included in the value of supply [in terms of section

15(2)(d)]. The transaction between X and Y is for supply of taxable goods i.e. mobile phone.

Accordingly, the penal interest would be taxable as it would be included in the value of the mobile,

irrespective of the manner of invoicing.

Illustration – 2: X sells a mobile phone to Y. The cost of mobile phone is ` 40,000/-. Y has the option to avail a

loan at interest of 2.5% per month for purchasing the mobile from M/s. ABC Ltd. The terms of the loan from

M/s. ABC Ltd. allows Y a period of four months to repay the loan and an additional/ penal interest @ 1.25%

per month for any delay in payment.

Here, the additional/ penal interest is charged for a transaction between Y and M/s. ABC Ltd., and the

same is getting covered under exemption Entry.

Consequently, in this case the 'penal interest' charged thereon on a transaction between Y and M/s. ABC Ltd.

would not be subject to GST as the same would be covered under said exemption entry.

However, any service fee/ charge or any other charges, if any, are levied by M/s. ABC Ltd. in respect of the

transaction related to extending deposits, loans or advances does not qualify to be interest as defined in

exemption notification, and accordingly will not be exempt.

Moreover, the value of supply of mobile by X to Y would be ` 40,000/- for the purpose of levy of GST.



D. Clarification on issues related to GST on monthly subscription/ contribution charged by a Residential

Welfare Association from its members

Page K.38 & K.39 of Volume 2 (5th Edition) issued by SATC

Issue Clarification

Are the maintenance charges paid by

residents to the Resident Welfare

Association (RWA) in a housing society

exempt from GST and if yes, is there an

upper limit on the amount of such charges

for the exemption to be available?

Supply of service by RWA (unincorporated body or a non-

profit entity registered under any law) to its own members

by way of reimbursement of charges or share of contribution

up to an amount of ` 7,500/- per month per member for

providing services and goods for the common use of its

members in a housing society or a residential complex are

exempt from GST.

A RWA has aggregate turnover of `̀̀̀ 20

lakh or less in a FY. Is it required to take

registration and pay GST on maintenance

charges if the amount of such charges is

more than `̀̀̀ 7500/- per month per

member?

No. If aggregate turnover of an RWA does not exceed

` ` ` ` 20 Lakh in a FY, it shall not be required to take

registration and pay GST even if the amount of

maintenance charges exceeds ` 7,500/- per month per

member.

RWA shall be required to pay GST on monthly subscription/

contribution charged from its members, only if such

subscription is more than ` 7,500/- per month per member

and the annual aggregate turnover of RWA by way of

supplying of services and goods is also ` 20 lakh or more.

Is the RWA entitled to take ITC of GST paid

on input and services used by it for

making supplies to its members and use

such ITC for discharge of GST liability on

such supplies where the amount charged

for such supplies is more than ` 7,500/-

per month per member?

RWAs are entitled to take ITC of GST paid by them on capital

goods (generators, water pumps, lawn furniture etc.), goods

(taps, pipes, other sanitary/hardware fillings etc.) and input

services such as repair and maintenance services.

Where a person owns 2 or more flats in

the housing society/residential complex,

whether the ceiling of ` 7,500/- per month

per member on the maintenance for the

exemption to be available shall be applied

per residential apartment or per person?

As per general business sense, a person who owns 2 or more

residential apartments in a housing society/residential

complex shall normally be a member of the RWA for each

residential apartment owned by him separately. The ceiling

of ` 7,500/- per month per member shall be applied

separately for each residential apartment owned by him.

For example, if a person owns 2 residential apartments in a

residential complex and pays ` 15,000/- per month as

maintenance charges towards maintenance of each

apartment to the RWA (` 7,500/- per month in respect of

each residential apartment), the exemption from GST shall

be available to each apartment.



VERY IMP: How should the RWA calculate

GST payable where the maintenance

charges exceed ` 7500/- per month per

member? Is the GST payable only on the

amount exceeding ` 7500/- or on the

entire amount of maintenance charges?

The exemption from GST on maintenance charges charged

by a RWA from residents is available only if such charges do

not exceed ` 7500/- per month per member. In case the

charges exceed ` 7500/- per month per member, the entire

amount is taxable.

For example, if the maintenance charges are ` 9000/- per

month per member, GST @18% shall be payable on the

entire amount of ` 9000/- and not on [` 9000 - ` 7500] = `

1500/- .

E. Clarification on the effective date of insertion of explanation in notification

Page K.2 & K.39 of Volume 2 (5th Edition) issued by SATC

Section 11(3) of CGST Act provides that the Government may insert an explanation in any notification issued

under section 11, for the purpose of clarifying its scope or applicability, at any time within 1 year of issue of

the notification and every such explanation shall have effect as if it had always been the part of the first

such notification.

It is hereby clarified that the explanation having been inserted under section 11(3) of the CGST Act, is

effective from the inception of the entry in notification and not from the date from which the notification

(that inserted said explanation) becomes effective.

For example, the principal Notification No. 11/2017 CT (R) dated 28.06.2017 came into force with effect from

1.07.2017. Thereafter, a new entry - Entry no. 3(vi) is inserted w.e.f. 21.09.2018. Subsequently, an

explanation is also inserted with respect to entry no. 3(vi) on 26.07.2019. Although the effective date

mentioned in the notification which inserted said explanation is 27.07.2019, said explanation will be

effective from the inception of entry in notification i.e. 21.09.2018 and not 27.07.2019.


F. Clarification on applicability of GST exemption to the DG Shipping approved maritime courses conducted

by Maritime Training Institutes of India


Under Entry 66 of the exemption notification, services provided by educational institutions to its students,

faculty and staff are exempt only when such institution falls under the definition of educational institution

provided under the exemption notification.

Educational institution has been defined to mean, inter alia, an institution providing services by way of

education as a part of a curriculum for obtaining a qualification/degree recognized by law.

In this regard, it has been clarified that Maritime Training Institutes and their training courses are approved

by the Director General of Shipping which are duly recognised under the provisions of the Merchant Shipping

Act, 1958 read with the Merchant Shipping (standards of training, certification and watch-keeping for

Seafarers) Rules, 2014.

Therefore, Maritime Training Institutes are educational institutions under GST Law and the courses

conducted by them are exempt from levy of GST subject to fulfilment of other conditions specified under

entry 66 of the exemption notification.




G. List of services exempt from IGST

Apart from above, list of services exempts from IGST by Notification No. 9/2017-Integrated Tax (Rate),

dated 28th June, 2017 also include following services.

A. w.e.f. 1-10-2019, Notification No. 20/2019- (IT Rate) dated September 30, 2019: Services provided by

an intermediary when location of both supplier and recipient of goods is outside the taxable territory

B. Inter State supply of services- Nepal and Bhutan – ‘Exemption is now withdrawn’

Further, Notification No. 9/2017-IT(R), dated 28.06.2017 has also been amended vide Notification No.

42/2017-IT(R), dated 27.10.2017 to exempt inter-State supply of services having place of supply in Nepal

or Bhutan, against payment in Indian Rupees.

This exemption has been withdrawn from Integrated Tax for supply of services having place of supply in

Nepal and Bhutan, against payment in Indian Rupees vide Notification No. 2/2019-IT, dated 4-2-2019.

Note: Exemption is withdrawn as it is now covered under definition of Export of services.



Class Notes




AMENDMENT IN “PLACE OF SUPPLY”

A. Section 12 of IGST Act, 2017 Page L.13 of Volume 3 (5th Edition) issued by SATC

Services by way of Transportation of goods including by mail or courier (Section 12(8) of IGST Act, 2017)

Place of supply of services:

Provided to a registered person : Location of recipient of Service.

Provided to an un-registered person : Location at which such goods are

handed over for their transportation.

w.e.f. 1-2-2019: Provided that where the transportation of goods is to a place outside India, the place of

supply shall be the place of destination of such goods.

B. Section 13(13) of IGST Act, 2017: Page L.27 of Volume 3 (5th


In order to prevent double taxation or non-taxation of the supply of a service, or for the uniform application

of rules, the Govt. of India shall have the power to notify any description of service or circumstances in which

the place of supply shall be the place of effective use and enjoyment of a service.

W.e.f. 1-10-2019:

In this regard, with effect from 01.10.2019, the following research and development services related to

pharmaceutical sector [as specified in columns (2) and (3) from Sl. No. 1 to 10 of the table given below] when

supplied by a person located in taxable territory to a person located in the non-taxable territory, have been

notified as the services for which the place of supply shall be the place of effective use and enjoyment of a

service (conditions are given after table):

Sl. No. Nature of supply General description of supply (reading purpose)

1 Integrated discovery and

development

This process involves discovery and development of molecules

by pharmaceutical sector for medicinal use. The steps include

designing of compound, evaluation of the drug metabolism,

biological activity, manufacture of target compounds, stability

study and long-term toxicology impact.

2 Integrated development

3 Evaluation of the efficacy

of new chemical/

biological entities in

animal models of disease

This is in vivo research (i.e. within the animal) and involves

development of customized animal model diseases and

administration of novel chemical in doses to animals to evaluate

the gene and protein expression in response to disease. In

nutshell, this process tries to discover if a novel chemical entity

that can reduce or modify the severity of diseases. The novel

chemical is supplied by the service recipient located in non-

taxable territory.

4 Evaluation of biological

activity of novel chemical/

biological entities in in-

vitro assays

This is in vitro research (i.e. outside the animal). An assay is first

developed and then the novel chemical is supplied by the service

recipient located in non-taxable territory and is evaluated in the

assay under optimized conditions.



5 Drug metabolism and

pharmacokinetics of new

chemical entities

This process involves investigation whether a new compound

synthesized by supplier can be developed as new drug to treat

human diseases in respect of solubility, stability in body fluids,

stability in liver tissue and its toxic effect on body tissues.

Promising compounds are further evaluated in animal

experiments using rat and mice.

6

Safety Assessment/

Toxicology

Safety assessment involves evaluation of new chemical entities

in laboratory research animal models to support filing of

investigational new drug and new drug application. Toxicology

team analyses the potential toxicity of a drug to enable fast and

effective drug development.

7 Stability Studies

Stability studies are conducted to support formulation,

development, safety and efficacy of a new drug. It is also done

to ascertain the quality and shelf life of the drug in their

intended packaging configuration.

8 Bio-equivalence and

Bioavailability Studies

Bio-equivalence is a term in pharmacokinetics used to assess the

expected in vivo biological equivalence of two proprietary

preparations of a drug. If two products are said to be

bioequivalent it means that they would be expected to be, for all

intents and purposes, the same. Bioavailability is a

measurement of the rate and extent to which a therapeutically

active chemical is absorbed from a drug product into the

systemic circulation and becomes available at the site of action.

9 Clinical trials

The drugs that are developed for human consumption would

undergo human testing to confirm its utility and safety before

being registered for marketing. The clinical trials help in

collection of information related to drugs profile in human body

such as absorption, distribution, metabolism, excretion and

interaction. It allows choice of safe dosage

10 Bio analytical studies

Bio analysis is a sub-discipline of analytical chemistry covering

the quantitative measurement of drugs and their metabolites,

and biological molecules in unnatural locations or

concentrations and macromolecules, proteins, DNA, large

molecule drugs and metabolites in biological systems.

Place of supply

When research and development services related to pharmaceutical sector as specified in columns (2) and (3)

from Sl. No. 1 to 10 of this table are supplied by a person located in taxable territory to a person located in

the non-taxable territory, the place of supply shall be the location of the recipient of services subject to

fulfillment of the following conditions:-

a. Supply of services from the taxable territory is provided as per a contract between the service provider

located in taxable territory and service recipient located in non-taxable territory.

b. Such supply of services fulfills all other conditions in the definition of export of services, except the

condition that place of supply is outside India.



C. Clarification in respect of determination of place of supply in following cases: -

CBIC Circular No. 103/22/2019 GST dated 28.06.2019 Page L.29 of Volume 3 (5th Edition) issued by SATC

a. Services provided by Ports - place of supply in respect of various cargo handling services provided by

ports to clients;

b. Services rendered on goods temporarily imported in India - place of supply in case of services

rendered on unpolished diamonds received from abroad, which are exported after cutting, polishing

etc.

The issue and the clarification in each of the case is given below-

a. Issue:

Various services are being provided by the port authorities to its clients in relation to cargo handling.

Some of such services are in respect of arrival of wagons at port, haulage of wagons inside port area

up-to place of unloading, siding of wagons inside the port, unloading of wagons, movement of

unloaded cargo to plot and staking hereof, movement of unloaded cargo to berth, shipment/loading

on vessel etc.

Whether the place of supply for such services would be determined in terms of the provisions

contained in section 12(2) or section 13(2) of the IGST Act, as the case may be, or the same shall be

determined in terms of the provisions contained in section 12(3) of the IGST Act?

Clarification:

It is hereby clarified that such services are ancillary to or related to cargo handling services and are

not related to immovable property. Accordingly, the place of supply of such services will be determined

as per the provisions contained in section 12(2) or section 13(2) of the IGST Act, as the case may be,

depending upon the terms of the contract between the supplier and recipient of such services.

b. Issue:

What would be the place of supply in case of supply of various services on unpolished diamonds such

as cutting and polishing activity which have been temporarily imported into India and are not put to

any use in India?

Clarification: Place of supply in case of performance-based services is to be determined as per the

provisions contained in section 13(3)(a) of the IGST Act and generally the place of services is where the

services are actually performed.

But an exception has been carved out in case of services supplied in respect of goods which are

temporarily imported into India for repairs or for any other treatment or process and are exported after

such repairs or treatment or process without being put to any use in India, other than that which is

required for such repairs or treatment or process.

In case of cutting and polishing activity on unpolished diamonds which are temporarily imported into

India are not put to any use in India, the place of supply would be determined as per the provisions

contained in section 13(2) of the IGST Act.




D. Clarification regarding determination of place of supply in case of software/design services related to

Electronics Semi-conductor and Design Manufacturing (ESDM) industry

(CBIC Circular No. 118/37/2019-GST, dated 11th October, 2019.)

Page L.30 of Volume 3 (5th


Issue: How should the place of supply be determined in case of supply of software/design services by a

supplier located in taxable territory to a service recipient located in non-taxable territory by using the

sample hardware kits provided by the service recipient?

Clarification: A number of companies that are part of the growing Electronics Semiconductor and Design

Manufacturing (ESDM) industry in India are engaged in the process of developing software and designing

integrated circuits electronically for customers located overseas. The client/ customer electronically provides

Indian development and design companies with design requirements and Intellectual Property blocks (“IP

blocks”, reusable units of software logic and design layouts that can be combined to form newer designs).

Based on these, the Indian company digitally integrates the various IP blocks to develop the software and the

silicon or hardware design. These designs are communicated abroad (in industry standard electronic formats)

either to the customer or (on behest of the customer) a manufacturing facility for the manufacture of

hardware based on such designs.

In addition, the software developed is also integrated upon or customized to this hardware. On some

occasions, samples of such prototype hardware are then provided back to the Indian development and design

companies to test and validate the software and design that has been developed to ensure that it is error

free.

The question arose whether provision of hardware prototypes and samples and testing thereon lends these

services the character of performance-based services in respect of “goods required to be made physically

available by the recipient to the provider”.

It is observed that in contracts where service provider is involved in a composite supply of software

development and design for integrated circuits electronically, testing of software on sample prototype

hardware is often an ancillary supply, whereas, chip design/software development is the principal supply of

the service provider. The service provider is not involved in software testing alone as a separate service. The

testing of software/design is aimed at improving the quality of software/design and is an ancillary activity.

The entire activity needs to be viewed as one supply and accordingly treated for the purposes of taxation.

Artificial vivisection of the contract of a composite supply is not provided in law. These cases are fact based

and each case should be examined for the nature of supply contracted.

Therefore, it is clarified that the place of supply of software/design by supplier located in taxable territory to

service recipient located in non-taxable territory by using sample prototype hardware/test kits in a

composite supply, where such testing is an ancillary supply, is the location of the service recipient as per

Section 13(2) of the IGST Act. Provisions of Section 13(3)(a) of IGST Act do not apply separately for

determining the place of supply for ancillary supply in such cases.




E. Integrated Goods and Services Tax (Amendment) Rules, 2018 Page L.31 to L.35 of Volume 3 (5th Edition) issued by SATC

Central Government vide N. No. 04/2018-Integrated Tax, dated 31st December, 2018 notified the following

rules as Integrated Goods and Services Tax (Amendment) Rules, 2018:—

Rule 3 in clause (h):

The words “the service shall be deemed to have been provided all over India and” inserted after the words

“in the case of advertisements over internet” to clarify that the services provided over internet is not specific

to 1 or more State or Union territory and shall be deemed to be provided all over India.

Insertion of Rule 4:

The place of supply in case of the supply of services attributable to different States or Union territories,

under sub section (3) of section 12 of the IGST Act, 2017 shall be:

Where such immovable property or boat or vessel is located in more than one State or Union territory-

each of the respective States or Union territories and in the absence of any contract or agreement between

the supplier of service and recipient of services for separately collecting or determining the value of the

services in each such State or Union territory- to be determined in the following manner namely:-

A. Services provided by way of lodging accommodation by a hotel, inn, guest house, club or campsite, by

whatever name called and services ancillary to such services:

i. Where such property is a single property located in two or more contiguous States or Union

territories or both:

the supply of services shall be treated as made in each of the respective States or Union territories, in

proportion to the area of the immovable property lying in each State or Union territory.

Illustration:

Illustration: There is a piece of land of area 20,000 square feet which is partly in State S1 say 12,000

square feet and partly in State S2, say 8000 square feet. Site preparation work has been entrusted to T.

The ratio of land in the two states works out to 12:8 or 3:2 (simplified). The place of supply is in both S1

and S2. The service shall be deemed to have been provided in the ratio of 12:8 or 3:2 (simplified) in the

States S1 and S2 respectively. The value of the service shall be accordingly apportioned between the

States.

ii. Cases except where such property is a single property located in two or more contiguous States or

Union territories or both:


proportion to the number of nights stayed in such property.

Illustration:

A hotel chain X charges a consolidt. sum of ₹30, 000/- for stay in its two establishments in Delhi and

Agra, where the stay in Delhi is for 2 nights and the stay in Agra is for 1 night. The place of supply in

this case is both in the Union territory of Delhi and in the State of Uttar Pradesh and the service shall be

deemed to have been provided in the Union territory of Delhi and in the State of Uttar Pradesh in the

ratio 2:1 respectively. The value of services provided will thus be apportioned as ₹20, 000/- in the Union

territory of Delhi and ₹10,000/- in the State of Uttar Pradesh.

B. All other services in relation to immovable property including services by way of accommodation in any

immovable property for organising any marriage or reception etc :


proportion to the area of the immovable property lying in each State or Union territory



C. Services provided by way of lodging accommodation by a house boat or any other vessel and services

ancillary to such services:

the supply shall be treated as made in each of the respective States or Union territories, in proportion

to the time spent by the boat or vessel in each such State or Union territory, determined on the basis

of a declaration made to the effect by the service provider.

Illustration 3:

A company C provides the service of 24 hours accommodation in a houseboat, which is situated both in

Kerala and Karnataka inasmuch as the guests board the house boat in Kerala and stay there for 22 hours

but it also moves into Karnataka for 2 hours (as declared by the service provider). The place of supply of

this service is in the States of Kerala and Karnataka. The service shall be deemed to have been provided in

the ratio of 22:2 or 11:1 (simplified) in the states of Kerala and Karnataka, respectively. The value of the

service shall be accordingly apportioned between the States.

Insertion of Rule 5:

The place of supply in case of supply of services attributable to different States or Union territories, under

subsection (7) of section 12 of the said Act, in the case of-

1. services provided by way of organisation of a cultural, artistic, sporting, scientific, educational or

entertainment event, including supply of services in relation to a conference, fair exhibition, celebration

or similar events; or

2. services ancillary to the organisation of any such events or assigning of sponsorship to such events,

where the services are supplied to a person other than a registered person, the event is held in India in more

than one State or Union territory and a consolidated amount is charged for supply of such services, shall be

taken as being in each of the respective States or Union territories, and in the absence of any contract or

agreement between the supplier of service and recipient of services for separately collecting or determining

the value of the services in each such State or Union territory, as the case maybe, shall be determined by

application of the generally accepted accounting principles.

Illustration:

An event management company E has to organise some promotional events in States S1 and S2 for a

recipient R. 3 events are to be organised in S1 and 2 in S2. They charge a consolidt. amount of ₹ 10,00,000

from R. The place of supply of this service is in both the States S1 and S2. Say the proportion arrived at by the

application of generally accepted accounting principles is 3:2.

The service shall be deemed to have been provided in the ratio 3:2 in S1 and S2 respectively. The value of

services provided will thus be apportioned as ₹6,00,000/- in S1 and ₹4,00,000/- in S2.



Insertion of Rule 6: Supply under Section 12(11) of the IGST Act

In the case of supply of services relating to a leased circuit, where the leased circuit is installed in more than

one State or Union territory and a consolidated amount is charged for supply of such services, shall be taken

as being in each of the respective States or Union territories, and in the absence of any contract or

agreement between the supplier of service and recipient of services for separately collecting or determining

the value of the services in each such State or Union territory, as the case maybe, shall be determined in the

following manner, namely:—

1. The number of points in a circuit shall be determined in the following manner:

a. in the case of a circuit between two points or places, the starting point or place of the circuit and the

end point or place of the circuit will invariably constitute two points;

b. any intermediate point or place in the circuit will also constitute a point provided that the benefit of

the leased circuit is also available at that intermediate point;

2. The supply of services shall be treated as made in each of the respective States or Union territories, in

proportion to the number of points lying in the State or Union territory.

Illustration-1:

A company T installs a leased circuit between the Delhi and Mumbai offices of a company C. The starting

point of this circuit is in Delhi and the end point of the circuit is in Mumbai. Hence one point of this circuit is in

Delhi and another in Maharashtra.

The place of supply of this service is in the Union territory of Delhi and the State of Maharashtra. The service

shall be deemed to have been provided in the ratio of 1:1 in the Union territory of Delhi and the State of

Maharashtra, respectively.

Illustration-2:

A company T installs a leased circuit between the Chennai, Bengaluru and Mysuru offices of a company C. The

starting point of this circuit is in Chennai and the end point of the circuit is in Mysuru. The circuit also connects

Bengaluru. Hence one point of this circuit is in Tamil Nadu and two points in Karnataka.

The place of supply of this service is in the States of Tamil Nadu and Karnataka. The service shall be deemed

to have been provided in the ratio of 1:2 in the States of Tamil Nadu and Karnataka, respectively.

Illustration-3:

A company T installs a leased circuit between the Kolkata, Patna and Guwahati offices of a company C. There

are 3 points in this circuit in Kolkata, Patna and Guwahati. One point each of this circuit is, therefore, in West

Bengal, Bihar and Assam.

The place of supply of this service is in the States of West Bengal, Bihar and Assam. The service shall be

deemed to have been provided in the ratio of 1:1:1 in the States of West Bengal, Bihar and Assam,

respectively.



Insertion of Rule 7 [read with Section 13(3) & 13(7)]

In the case of services supplied in respect of goods which are required to be made physically available by the

recipient to the supplier, or to a person acting on behalf of the supplier, or in the case of services supplied to

an individual, represented either as the recipient or a person acting on behalf of the recipient, which require

the physical presence of the recipient or the person acting on his behalf, where the location of the supplier of

services or the location of the recipient of services is outside India, and where such services are supplied in

more than one State or Union territory, shall be taken as being in each of the respective States or Union

territories, and the proportion of value attributable to each such State and Union territory in the absence of

any contract or agreement between the supplier of service and recipient of services for separately collecting

or determining the value of the services in each such State or Union territory, as the case may be, shall be

determined in the following manner, namely:-

1. in the case of services supplied on the same goods, by equally dividing the value of the service in each of

the States and Union territories where the service is performed;

2. in the case of services supplied on different goods, by taking the ratio of the invoice value of goods in

each of the States and Union territories, on which service is performed, as the ratio of the value of the

service performed in each State or Union territory;

3. in the case of services supplied to individuals, by applying the generally accepted accounting principles.

Illustration-1:

A company C which is located in Kolkata is providing the services of testing of a dredging machine and the

testing service on the machine is carried out in Orissa and Andhra Pradesh. The place of supply is in Orissa

and Andhra Pradesh and the value of the service in Orissa and Andhra Pradesh will be ascertained by

dividing the value of the service equally between these two States.

Illustration-2:

A company C which is located in Delhi is providing the service of servicing of two cars belonging to Mr. X. One

car is of manufacturer J and is located in Delhi and is serviced by its Delhi workshop. The other car is of

manufacturer A and is located in Gurugram and is serviced by its Gurugram workshop.

The value of service attributable to the Union Territory of Delhi and the State of Haryana respectively shall

be calculated by applying the ratio of the invoice value of car J and the invoice value of car A, to the total

value of the service.

Illustration-3:

A makeup artist M has to provide make up services to an actor A. A is shooting some scenes in Mumbai and

some scenes in Goa. M provides the makeup services in Mumbai and Goa.

The services are provided in Maharashtra and Goa and the value of the service in Maharashtra and Goa

will be ascertained by applying the generally accepted accounting principles.




In case of supply of services directly in relation to an immovable property, including services supplied by

experts and estate agents, supply of accommodation by a hotel, inn, guest house, club or campsite, by

whatever name called, grant of rights to use immovable property, services for carrying out or co-ordination of

construction work, including that of architects or interior decorators, where the location of the supplier of

services or the location of the recipient of services is outside India, and where such services are supplied in

more than one State or Union territory, in the absence of any contract or agreement between the supplier of

service and recipient of services for separately collecting or determining the value of the services in each such

State or Union territory, as the case maybe, shall be determined by applying the provisions of rule 4, mutatis

mutandis.


In case of supply of services by way of admission to, or organisation of a cultural, artistic, sporting, scientific,

educational or entertainment event, or a celebration, conference, fair, exhibition or similar events, and of

services ancillary to such admission or organisation, where the location of the supplier or the location of the

recipient is outside India, and where such services are provided in more than one State or Union territory, in

the absence of any contract or agreement between the supplier of service and recipient of services for

separately collecting or determining the value of the services in each such State or Union territory, as the case

maybe, shall be determined by applying the provisions of rule 5, mutatis mutandis.



AMENDMENT IN “TCS UNDER GST”

Annual Statement

Page S.10 of Volume 3 (5th Edition) issued by SATC

The operator who collects tax at source shall furnish an annual Statement, electronically, containing all the

details, under sub-section (3) of Section 52 of the Act, regarding:

i. Outward supplies of Goods and Services

ii. Return of goods and services during the Financial Year,

before 31st December following the end of such Financial Year.

Inserted by Finance (No. 2) Act 2019:

Provided that the Commissioner may, on the recommendations of the Council and for reasons to be recorded

in writing, by notification, extend the time limit for furnishing the annual statement for such class of registered

persons as may be specified therein.

Provided further that any extension of time limit notified by the Commissioner of State tax or the Commissioner

of Union territory tax shall be deemed to be notified by the Commissioner.



REAL ESTATE SECTORS – NEW TOPIC Page N1.1 to N1.7 of Volume 3 (5

th Edition) issued by SATC

NEW TAX RATES FOR HOUSING PRJECTS W.E.F. 01/04/2019

The effective rate of GST on real estate sector for the new projects (residential real estate projects) by

promoters are as follows:

A. 1% without ITC on construction of affordable houses.

B. 5% without ITC is applicable on construction of:

i. all houses other than affordable houses, and .

ii. commercial apartments such as shops, offices etc. in a residential real estate project (RREP) in which

the carpet area of commercial apartments is not more than 15% of total carpet area of all

apartments.

A residential house/flat of carpet area of up to 90 sqm in non-metropolitan cities/towns and 60 sqm in

metropolitan cities having value up to ` 45 lakh (both for metropolitan and non-metropolitan cities) has

been categorized as affordable housing.

Metropolitan cities are Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad,

Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (whole of MMR).

Conditions:

Above tax rates shall be available subject to following conditions:

i. ITC shall not be available.

ii. 80% of inputs and input services [other than services by way of grant of development rights, long term lease

of land (against upfront payment in the form of premium, salami, development charges etc.) or FSI

(including additional FSI), electricity, high speed diesel, motor spirit, natural gas], used in supplying the

service shall be purchased from registered persons.

However, if value of inputs and input services purchased from registered supplier is less than 80%, promoter has

to pay GST on reverse charge basis, under section 9(4) of the CGST Act, at the rate of 18% on all such inward

supplies (to the extent short of 80% of the inward supplies from registered supplier).

Further, where cement is received from an unregistered person, the promoter shall pay tax on supply of such

cement on reverse charge basis, under section 9(4) of the CGST Act, at the applicable rate which is 28% (CGST

14% + SGST 14%) at present.

Moreover, GST on capital goods shall be paid by the promoter on reverse charge basis, under section 9(4) of the

CGST Act at the applicable rates

[Notification No. 07/2019 CT (R) dated 29.03.2019/Notification No. 07/2019 IT (R) dated 29.03.2019].

Commercial Apartments such as shops, offices etc

These projects can be classified in to following

a. Commercial apartments constructed along with other Residential Apartments where carpet area of the

commercial apartments is not more than 15% of total carpet area of all apartments.

- For these apartments, GST rate is 5% with condition of non-availability of Input tax credit.

b. Commercial apartments constructed along with other Residential Apartments where carpet area of the

commercial apartments is is more than 15% of total carpet area of all apartments.

- For these commercial apartments GST rate is 12%. Input tax credit can be claimed while paying GST.

c. Purely Commercial projects – GST rate is 12% and Input tax credit can be claimed.



Amendment in Section 9(4): w.e.f 01/04/2019

The Central Government vide Notification No. 07/2019-Central Tax(R), dated 29th March 2019 has notified

that the registered person specified below shall in respect of supply of specified goods or services or both

received from an unregistered supplier shall pay tax on reverse charge basis as recipient of such goods or

services:

Sl. No. Category of supply of goods and services

Recipient of

goods and

services

1

Supply of such goods and services or both other than services by way of

grant of development rights, long term lease of land or FSI which

constitute the shortfall from the minimum value of goods or services

or both required to be purchased by a promoter for construction of

project, in a financial year.

Promoter

2

Cement falling in chapter heading 2523 in the first schedule to the

Customs Tariff Act, 1975 (51 of 1975) which constitute the shortfall

from the minimum value of goods or services or both required to be

purchased by a promoter for construction of project, in a financial year

(or part of the financial year till the date of issuance of completion

certificate or first occupation, whichever is earlier) w.e.f 01/10/2019

Promoter

3

Capital goods falling under any chapter in the first schedule to the

Customs Tariff Act, 1975 (51 of 1975) supplied to a promoter for

construction of a project

Promoter



PRACTICALs Questions (Housing Projects)

Example 1: Does a promoter or a builder has option to pay tax at old rates of 8% & 12% with ITC?

Answer:

Yes, but such an option is available in the case of an ongoing project. In case of such a project, the promoter or

builder has option to pay GST at old effective rate of 8% with ITC and 12% with ITC.

To continue with the old rates, the promoter/builder has to exercise one time option in the prescribed form and

submit the same manually to the jurisdictional Commissioner by the 10th of May, 2019.

However, in case where a promoter or builder does not exercise option in the prescribed form, it shall be deemed

that he has opted for new rates in respect of ongoing projects and accordingly new rate of GST i.e. 5%/1% shall be

applicable and all the provisions of new scheme including transitional provisions shall be applied.

There is no such option available in case of projects which commence on or after 01.04.2019. Construction of

residential apartments in projects commencing on or after 01.04.2019 shall compulsorily attract new rate of GST

@ 1% or 5% without ITC.

Example 2: What is the rate of GST applicable on construction of commercial apartments [shops, godowns,

offices etc.] in a real estate project?

Answer:

With effect from 01-04-2019, effective rate of GST, after deduction of value of land or undivided share of land,

on construction of commercial apartments [shops, godowns, offices etc.] by promoter in real estate project are

as under:

Description Effective rate of GST

Construction of commercial apartments in a Residential

Real Estate Project (RREP), which commences on or after

01-04-2019 or in an ongoing project in respect of which the

promoter has opted for new rates effective from 01-04-2019

5% without ITC on total consideration

Construction of commercial apartments in a Real Estate

Project (REP) other than Residential Real Estate Project

(RREP) or in an ongoing project in respect of which the

promoter has opted for old rates

12% with ITC on total consideration

Example 3:

What is a Residential Real Estate Project?

Answer:

A “Residential Real Estate Project” means a “Real Estate Project” in which the carpet area of the commercial

apartments is not more than 15 per cent. of the total carpet area of all the apartments in the project.

Example 4:

GK Developers Limited (i.e. Developer) enters into an agreement with land owner Mr. Nagarajan where

Transfer Development Rights (TDRs) of the land transferred but ownership in land continues with the

landowner (i.e. license to occupy land) on 31st May, 20XX. After entering to TDRs/Joint Development

Agreements, the flats meant for landowner and builder are identified and a Supplementary Agreement (i.e.

conveyance deed) is entered into for this purpose on 15th June, 20XX. In pursuit of this agreement a total of 10

residential units will be constructed by GK Developers Limited on the land provided by Mr. Nagarajan, whereas

40% of the units shall be given to Mr. Nagarajan.

Answer the following:

a. Transfer of TDRs is taxable supply? If so, who is liable to pay GST? Find the Time of supply for transfer of

TDRs?

b. Whether GST is payable on the owner’s share of the flats/houses/portion of the building constructed by

the builder or developer given to the landowner as per development agreement? If so, find the Time of

Supply?



c. Find the time of supply for the consideration received by the builder from other buyers?

d. Re-work, where TDRs of the land transferred permanently and irrevocably transferred by the landowner

to the developer (i.e. sale/transfer of land). If so, transfer of TDRs is taxable supply in the hands of

landowner?

Note: All 10 residential units constructed under the category of other than affordable housing project and sold

only after obtaining completion certificate.

Answer:

a. TDRs transferred by land owner is taxable supply in the hands of promoter under RCM (Section 9(3) of

CGST Act, 2017).

Time of supply = Date of completion certificate

b. Flats allotted under JDA is before obtaining completion certificate and hence, it is taxable supply.

Time of supply = Date of completion certificate.

c. All Allotment of Flats after completion certificate is not supply of goods or services.

Hence, GST does not arise.

d. Since, ownership on land is transferred, which is not a supply of goods nor supply of service. Therefore, GST

is not applicable.

Example 5:

ABC Constructions Ltd. has provided the following details with respect to individual residential units

constructed by it at various cities as part of residential apartments:

Flat type Capet area

(sq.ft.)

Amount charged (`)

A 1980 1,10,00,000

Part of consideration received before issuance

of completion certificate by the competent

authority. Commercial apartments having

carpet area of not more than 15% of total

carpet area of all apartments.

B 2000 1,00,00,000

-do-

C 2500 1,05,00,000

-do-

D 2400 99,50,000

Entire consideration received before issuance


authority.

Commercial apartments having carpet area of

more than 15% of total carpet area of all

apartments.

E 2100 1,00,00,000

-do-

F 1600 80,00,000

-do-

G 1940 90,00,000

Entire consideration received after issuance of

completion certificate by the competent

authority.



LIG 60 sq. Mtrs.

Under affordable houses 34 Flats constructed

and ITC not availed. Project commenced from

1st April 2019 under Housing for All (Urban)

Mission/Pradhan Mantri Awas Yojana (Urban).

Construction value includes land value.

EWS 400 sqfts.

Pure labour service contracts of construction

to the beneficiary-led individual house

construction under Housing for All (Urban)

Mission/Pradhan Mantri Awas Yojana (Urban).

Following details are also available:

Type of building Amount charged `

Multi-level packing for local

authority 3,10,00,000

Part of consideration received before issuance


authority

Office Completed 12,20,00,000

Entire consideration received before issuance


authority

Shopping Mall 30,00,00,000

Entire consideration received after issuance of

completion certificate by the competent

authority

Find the GST liability if any?

Answer:

Flat type Amount charged

(`)

Taxability GST Rate GST in (`)

A 1,10,00,000 Taxable supply 5%

Assumed that ITC

not availed

5,50,000

B 1,00,00,000 -do- -do- 5,00,000

C 1,05,00,000 -do- -do- 5,25,000

D 99,50,000 Taxable supply 12% ITC allowed 11,94,000

E 1,00,00,000 -do- -do- 12,00,000

F 80,00,000 -do- -do- 9,60,000

G 90,00,000 Not a supply -NA- Nil

LIG 45,00,000 Taxable supply 1% 45,000

EWS 1,25,00,000 Exempted supply Nil Nil

Multi-level

parking for local

authority

3,10,00,000 Taxable supply 12% 37,20,000

Office Complex 12,20,00,000 Taxable supply 12% 1,46,40,000

Shopping Mall 30,00,00,000 Not a supply -NA- Nil



AMENDMENTS MADE VIDE THE FINANCE (No. 2) ACT, 2019

The Finance (No. 2) Act, 2019 has become effective from 01.08.2019. However, the amendments made in

the CGST Act and IGST Act vide the Finance (No. 2) Act, 2019 would become effective only from a date to

be notified by the Central Government in the Official Gazette. Such a notification has not been issued till

30.11.2019 (last date of notifications for June 2020 Exam).

However, ICMAI Institute has considered those amendments in latest edition of IDT Book (Published in

January 2020 Edition) as well as GST amendment booklet updated at website (Supplementary for June

2020 Exam). It means it may ask in upcoming June 2020 Exam.

It is important to note that the ICAI (CA Institute) has deferred the applicability such amendments for

May 2020 Exams. Most GST Amendments Booklet/Notes/Classes in the market & Youtube lectures are

based on CA Institute pattern and not covering below amendments. So, please be careful while

comparing my amendment notes with other resources.

DISCUSSION OF UNIQUE AMENDMENTS WHICH ARE MADE APPLICABLE BY

ICMAI FOR JUNE EXAM DUE TO “FINANCE (NO. 2) ACT, 2019 - EFFECTIVE

DATE (i.e. 01/08/2019)” WHICH IS TECHNICALLY NOT CORRECT AS THESE

GST AMENDMENTS ARE NOT EFFECTIVE FROM 01/08/2019.

IN FACT, NO CG NOTIFICATION IN THIS REGARD IS ISSUED TILL 30.11.2019.

AMENDMENT IN “REGISTRATION CHAPTER”

Section 22(1) – Existing Provisions

Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special

category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a

financial year exceeds twenty lakh rupees.

Provided that where such person makes taxable supplies of goods or services or both from any of the special

category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh

rupees.

Provided further that the Government may, at the request of a special category State and on the

recommendations of the Council, enhance the aggregate turnover referred to in the first proviso from ten lakh

rupees to such amount, not exceeding twenty lakh rupees and subject to such conditions and limitations, as

may be so notified.

Section 22(1) – Amended provisions

Third proviso and explanation Inserted (as inserted by Finance (No. 2) Act, 2019)

Provided also that the Government may, at the request of a State and on the recommendations of the Council,

enhance the aggregate turnover from twenty lakh rupees to such amount not exceeding forty lakh rupees in

case of supplier who is engaged exclusively in the supply of goods, subject to such conditions and limitations, as

may be notified.

Explanation- For the purposes of this sub-section, a person shall be considered to be engaged exclusively in the

supply of goods even if he is engaged in exempt supply of services provided by way of extending deposits, loans

or advances in so far as the consideration is represented by way of interest or discount.



SATC Note:

Third proviso is being inserted to Section 22(1) empowering Government to enhance the threshold limit for

registration from ` 20 lakh to ` 40 lakh at the request of a State & on the recommendations of the GST Council, in

case of a supplier who is engaged exclusively in the supply of goods, subject to specified conditions.

Presently, the enhanced threshold limit has been made effective for some States by way of exemption Notification

No. 10/2019 CT dated 07.03.2019. One major relaxation proposed to be extended is that a person shall be

considered to be engaged exclusively in the supply of goods even if he engaged in exempt supply of services

provided by way of extending deposits, loans or advances in so far as the consideration is represented by way

of interest or discount.

Presently, this relaxation is not available under Notification No. 10/2019 CT.

New sub-sections (6A) to (6D) inserted in Section 25 As inserted by Finance (No. 2) Act, 2019

Sub-section (6A) of Section 25 [Section 25(6A)]:

Every registered person shall undergo authentication, or furnish proof of possession of Aadhaar number, in such

form and manner and within such time as may be prescribed.

Provided that if an Aadhaar number is not assigned to the registered person, such person shall be offered

alternate and viable means of identification in such manner as Government may, on the recommendations of the

Council, prescribe.

Provided further that in case of failure to undergo authentication or furnish proof of possession of Aadhaar

number or furnish alternate and viable means of identification, registration allotted to such person shall be

deemed to be invalid and the other provisions of this Act shall apply as if such person does not have a registration.

Sub-section (6B) of Section 25 [Section 25(6B)]:

On and from the date of notification, every individual shall, in order to be eligible for grant of registration,

undergo authentication, or furnish proof of possession of Aadhaar number, in such manner as the Government

may, on the recommendations of the Council, specify in the said notification.

Provided that if an Aadhaar number is not assigned to an individual, such individual shall be offered alternate and

viable means of identification in such manner as the Government may, on the recommendations of the Council,

specify in the said notification.

Sub-section (6C) of Section 25 [Section 25(6C)]:

On and from the date of notification, every person, other than an individual, shall, in order to be eligible for grant

of registration, undergo authentication, or furnish proof of possession of Aadhaar number of the Karta, Managing

Director, whole time Director, such number of partners, Members of Managing Committee of Association,

Board of Trustees, authorised representative, authorised signatory and such other class of persons, in such

manner, as the Government may, on the recommendation of the Council, specify in the said notification

Provided that where such person or class of persons have not been assigned the Aadhaar Number, such person or

class of persons shall be offered alternate and viable means of identification in such manner as the Government

may, on the recommendations of the Council, specify in the said notification.

Sub-section (6D) of Section 25 [Section 25(6D)]:

The provisions of sub-section (6A) or sub-section (6B) or sub-section (6C) shall not apply to such person or class of

persons or any State or Union territory or part thereof, as the Government may, on the recommendations of the

Council, specify by notification.

SATC Note:

New sub-sections are being inserted in Section 25 of the CGST Act to make Aadhaar authentication mandatory

for specified class of new taxpayers and to prescribe the manner in which certain class of registered taxpayers

are required to undergo Aadhaar authentication.



AMENDMENT IN “PAYMENT OF TAX CHAPTER”

A. Amendment in Section 49 – Sub-section 10 & 11 are inserted:

As inserted by Finance (No. 2) Act, 2019

10. A registered person may, on the common portal, transfer any amount of tax, interest, penalty, fee or

any other amount available in the electronic cash ledger under this Act, to the electronic cash ledger for

integrated tax, central tax, State tax, Union territory tax or cess, in such form and manner and subject

to such conditions and restrictions as may be prescribed and such transfer shall be deemed to be a

refund from the electronic cash ledger under this Act.

11. Where any amount has been transferred to the electronic cash ledger under this Act, the same shall be

deemed to be deposited in the said ledger as provided in sub-section (1).

SATC Remarks: New sub-sections are being inserted in Section 49 of the CGST Act to provide a facility to the

registered person to transfer an amount from one (major/minor) head to another (major/minor) head in

the electronic cash ledger. {For this, Form PMT-09 is introduced recently}

B. New Section 53A: “Transfer of certain Amounts”


Where any amount has been transferred from the electronic cash ledger under this Act to the electronic cash

ledger under the State Goods and Services Tax Act or the Union territory Goods and Services Tax Act, the

Government shall, transfer to the State tax account or the Union territory tax account, an amount equal to

the amount transferred from the electronic cash ledger, in such manner and within such time as may be

prescribed.”

SATC Remarks: A new Section 53A is being inserted in the CGST Act so as to provide for transfer of amount

between Centre and States consequential to amendment in Section 49 of the CGST Act allowing transfer of

an amount from one head to another head in the electronic cash ledger of the registered person.

C. Amendment in Section 50(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.

NEW Proviso: As inserted by Finance (No. 2) Act, 2019

“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.”.

SATC Remarks: New proviso is being inserted in section 50(1) of the CGST Act so as to provide for charging

interest only on the net cash tax liability, except in those cases where returns are filed subsequent to

initiation of any proceedings under section 73 or 74 of the CGST Act.



AMENDMENT IN “COMPOSITION SCHEME”

Explanation inserted in Section 10(1)

Second proviso to Section 10(1)

Provided further that a person who opts to pay tax under Section 10(1) may supply services (other than

restaurant services), of value not exceeding ten percent. of turnover in a State or Union territory in the

preceding financial year or five lakh rupees, whichever is higher.

New Explanation inserted:

For the purposes of second proviso, the value of exempt supply of services provided by way of extending

deposits, loans or advances in so far as the consideration is represented by way of interest or discount shall

not be taken into account for determining the value of turnover in a State or Union territory.”;

SATC NOTE:

Under the existing provisions, this point is clarified vide Order No. 01/2019 CT dated 01.02.2019. It is now

being incorporated in the CGST Act vide the explanation proposed by the Finance (No. 2) Act, 2019 to Section

10(1).

AMENDMENT IN “TAX INVOICE CHAPTER”

SECTION 31A - Facility of Electronic payment to recipient


As per Section 31A of the CGST Act, 2017, The Government may, on the recommendations of the Council,

prescribe a class of registered persons who shall provide prescribed modes of electronic payment to the

recipient of supply of goods or services or both made by him and give option to such recipient to make

payment accordingly, in such manner and subject to such conditions and restrictions, as may be prescribed.

AMENDMENT IN “RETURN CHAPTER”

A. Annual Return of the succeeding financial year

SECTION EXISTING PROVISIONS NEW PROVISIONS (AMENDED)

SECTION 39(1) Every registered person, other than

an Input Service Distributor or a non-

resident taxable person or a person

paying tax under the provisions of

section 10 or section 51 or section 52

shall, for every calendar month or

part thereof, furnish, in such form

and manner as may be prescribed, a

return, electronically, of inward and

outward supplies of goods or services

or both, input tax credit availed, tax

payable, tax paid and such other

particulars as may be prescribed, on

or before the twentieth day of the

month succeeding such calendar

month or part thereof.

Every registered person, other than an Input Service

Distributor or a non-resident taxable person or a

person paying tax under the provisions of section 10

or section 51 or section 52 shall, for every calendar

month or part thereof, furnish, a return,

electronically, of inward and outward supplies of

goods or services or both, input tax credit availed,

tax payable, tax paid and such other particulars, in

such form and manner, and within such time, as

may be prescribed:

Provided that the Government may, on the

recommendations of the Council, notify certain

class of registered persons who shall furnish a

return for every quarter or part thereof, subject to

such conditions and restrictions as may be specified

therein.



SECTION 39(2) A registered person paying tax under

the provisions of section 10 shall, for

each quarter or part thereof,

furnish, in such form and manner as

may be prescribed, a return,

electronically, of turnover in the

State or Union territory, inward

supplies of goods or services or

both, tax payable and tax paid

within eighteen days after the end

of such quarter.

A registered person paying tax under the provisions

of section 10, shall, for each financial year or part

thereof, furnish a return, electronically, of turnover

in the State or Union territory, inward supplies of

goods or services or both, tax payable, tax paid and

such other particulars in such form and manner,

and within such time, as may be prescribed.’’

SECTION 39(7) Every registered person, who is

required to furnish a return under

sub-section (1) or sub-section (2) or

sub-section (3) or subsection (5),

shall pay to the Government the tax

due as per such return not later

than the last date on which he is

required to furnish such return:

Every registered person who is required to furnish a

return under sub-section (1), other than the person

referred to in the proviso thereto, or sub-section (3)

or sub-section (5), shall pay to the Government the

tax due as per such return not later than the last

date on which he is required to furnish such return:

Provided that every registered person furnishing

return under the proviso to sub section (1) shall pay

to the Government, the tax due taking into account

inward and outward supplies of goods or services

or both, input tax credit availed, tax payable and

such other particulars during a month, in such form

and manner, and within such time, as may be

prescribed:

Provided further that every registered person

furnishing return under sub-section (2) shall pay to

the Government, the tax due taking into account

turnover in the State or Union territory, inward

supplies of goods or services or both, tax payable,

and such other particulars during a quarter, in such

form and manner, and within such time, as may be

prescribed.”.

SATC NOTE:

Under the existing provisions, composition taxpayers as well as registered persons paying tax under

Notification No. 2/2019 CT (R) dated 07.03.2019 are required to file annual return and make quarterly

payment of taxes in terms of Notification No. 21/2019 CT dated 23.04.2019 issued under section 148 read

with rule 62 of CGST Rules.

Such provisions are now being incorporated in the CGST Act vide the amendment being proposed by the

Finance (No. 2) Act, 2019 in section 39.

Section 39 of the CGST Act is being amended so as to allow the composition taxpayers (which includes tax

payers paying tax under Notification No. 2/2019 CT (R) dated 07.03.2019 by virtue of amendment being

made in section 10 of the CGST Act vide the Finance (No. 2) Act, 2019) to furnish annual return along with

quarterly payment of taxes.

Further, other specified taxpayers may be given the option for quarterly or monthly furnishing of returns and

payment of taxes under the proposed new return system.



B. Annual Return of the succeeding financial year

As per Section 44 of the CGST Act, 2017, every registered taxable person is required to file annual return by

31st December following end of financial year. Thus, for the financial year 2019-20, the annual return is

required to be filed by 31st December 2020.


Provided that the Commissioner may, on the recommendations of the Council and for reasons to be recorded

in writing, by notification, extend the time limit for furnishing the annual return for such class of registered

persons as may be specified therein:

Provided further that any extension of time limit notified by the Commissioner of State tax or the

Commissioner of Union territory tax shall be deemed to be notified by the Commissioner.

SATC Note: This amendment seeks to empower the Commissioner to extend the due date for furnishing

annual return.



THANK YOU

ALL THE BEST FOR YOUR EXAM

CA SURAJ AGRAWAL

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PROFILE – CA SURAJ AGRAWAL