ITC on Hotel Bill | Hotel के Bill पर ITC कब मिलेगा | Place of Supply in Case of Hotel |

 

Input Tax Credit on Mobile Phone Purchased | Blocked Credit | Conditions to Claim Input Tax Credit |

 

GST on Freelancers |GST on Youtubers |GST on Bloggers |GST on Income from Blogging/Freelance/YouTube

 

Who are not eligible to opt for Composition Scheme?

• Supplier of Services except (a registered person whose aggregate turnover in the preceding financial year did not exceed Rs. 50 Lakh may opt to pay tax in composition at the rate of 3% CGST and 3% SGST/UTGST in lieu of the tax payable by him under sec 9(1) of CGST Act or Persons engaged in Restaurant Services)
• Supplier of Goods which are not leviable to tax.
• Supplier of Inter-State Outward Supplies of Goods.
• Persons supplying Goods through an Electronic Commerce Operators (ECO) who is required to collect Tax at Source under section 52.
• Manufacturer of Ice-cream, Pan Masala and tobacco.
• A Person Registered as Tax Deductor or Tax Collector.
  

Note: - There is no restriction on Composition Suppler to receive Inter-State Inward Supplies of Goods as also make Inter-State Inward and Outward Supply of Service. 

     

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Accounting and Billing Software Providers can enrol with GSTN to receive regular updates on e-invoice

The GST Council has approved introduction of ‘e-invoicing’ or ‘electronic invoicing’ in a phased manner for reporting of Business to Business (B2B) invoices to GST System.

An e-invoice standard has been finalized after consultation with trade/industry bodies as well as ICAI. Adoption of this new standard ensures complete inter-operability of e-invoices across the entire GST eco-system. The new system eliminates the need for fresh data entry, reduction of reconciliation errors and population of invoice details directly into Return through Invoice Reporting Portal (IRP). For more details on ‘e-invoice’, CLICK HERE

Being key players in Indian business eco-system, the role and support of Accounting and Billing Software Providers is crucial for successful implementation of GST e-invoice System.

In the coming months when e-invoice implementation takes place, GSTN intends to interact closely with Accounting and Billing Software Providers. This is to get suggestions and feedback as well as to keep them abreast of developments on new e-invoice framework.

Accounting and Billing Software Providers can ENROL HERE , by providing contact and other details.

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Steps to be taken by taxpayers to file Form GSTR 9C

1. Digital Signature Certificate (DSC)

i. Digital Signature Certificate (DSC) must be PAN based and in format PKCS7.
ii. DSC must not be corrupted.
iii. DSC should be valid and must not have expired.

2. Pre-requisites for filing FORM GSTR - 9C.
i. Prior filing of Annual Return GSTR-9 is mandatory.
ii. Form GSTR-9C has to be prepared by the Auditor by filling up data in the Offline Tool available on the GST portal.

Note: Any observations/ comments must be entered in excel tool directly and must not be copy/pasted from anywhere else.

Steps for Filing Form GSTR 9C	Actions to be done on GST Portal/Offline or through email communication with Auditor
I. Taxpayer should compile details & Data and send the same to Auditor.
A. The Form GSTR-9 that has already been filed on GST portal (gst.gov.in) should be downloaded (in PDF format).	ON GST Portal
B. Taxpayer should download GSTR-9C Tables by clicking on “initiate filing” available under the tab of GSTR 9C. The tables (derived from Form GSTR-9) contain following pre-filled fields (as filed in Annual return): i. Turnover ii. Taxable turnover iii. Total amount of tax paid iv. ITC	ON GST Portal
C. The above mentioned PDF files of GSTR 9 and tables of GSTR 9C should be sent to the Auditor for Preparing GSTR-9C Statement.	Through email/offline
II. Auditor Prepares GSTR-9C Statement Using GSTR-9C Offline Utility.	Offline
D. Download GSTR-9C Offline Utility from GST portal in “Downloads”.	ON GST Portal
E. Install emSigner after downloading the latest version from GST Portal.	ON GST Portal
F. Open the GSTR-9C Offline Utility Excel Worksheet.	Offline
G. Add table-wise details in the Worksheet.	Offline
H. Generate Preview PDF file to view Draft Form GSTR-9C	Offline
I. Generate JSON File and	Offline
J. Auditor needs to affix his/her DSC.	Offline
K. Auditor needs to send the Signed JSON File to the Taxpayer.	Can use email or offline storage devices such as USB etc. to exchange files with each other.
III. Taxpayer Uploads GSTR-9C Statement (prepared by Auditor)
L. Click “initiate filing” and upload other relevant documents and by clicking on “prepare offline” Upload the Signed JSON File on GST Portal and Save form.	ON GST Portal
M. Sign the Form and complete filing of Form GSTR-9C.	ON GST Portal

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Process to claim TDS and TCS Credit Received on GST Portal

 Step I: - Login to GST Portal

Step II: - Select TDS and TCS Credit Received

Step III: - Click on Prepare Online

Step IV: - Click on Table – TDS Credit Received or TCS Credit Received.

Step V: - On Clicking Table a Summary of TDS Received is displayed, then select Transaction and Click on Accept (If you think any Transaction is not correct than you can reject).
Step VI: - On Accepting Transaction TDS or TCS Credit will be displayed in Respective table, Accept Declaration and Select Authorized Signatory then Click on File TDS TCS Credit Received and File using DSC or EVC.

On Successfully Filling of TDS and TDS Credit Received Amount of TDS and TCS Credit will be automatically credited to Electronic Cash Ledger.

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Treatment of Sales Promotion Schemes under GST

Free Samples and Gifts: - As Per sec 7 (1) (a) Supply includes all forms of Supply of Goods or Service or both as Sale, Transfer, Barter, Exchange, License, Rental, Lease or Disposal made or agreed to be made for a consideration by a person in the course or furtherance of business. However, as per Schedule I of CGST Act 2017 following Activities to be treated as Supply even made without Consideration: -
• Permanent transfer or disposal of business assets where Input Tax Credit has been availed on such assets.
• Supply of Goods or Service or both between related persons or distinct person as specified in Sec 25, made in the course or furtherance of Business. Provided Gift by Employer to Employer value not exceeding Rs. 50000 in a financial year shall not be treated as Supply of Goods or Service or both.
• Supply of Goods by a Principal to his agent where the agent undertakes to supply such Goods on the behalf the Principal or Supply of Goods by an Agent to his Principal where the agent undertakes to receive such Goods on behalf of the Principal.
• Import of Service by a Taxable Person from a Related Person or from any of his other establishments outside India, in the Course or Furtherance of Business.

Therefore Sample which are supplied free of Cost (Without Consideration) does not qualify as Supply except Activities Covered under Schedule I of CGST Act 2017.
As Per Sec 17(5) (h) of CGST Act 2017 Input Tax Credit (ITC) shall not be available in respect of Goods, Lost, Stolen, Destroyed, Written off or disposed of by way of Free Gifts or Free Samples etc. Thus, no Input Tax Credit (ITC) is not available to Supplier on Inputs, Input Service and Capital Goods to the extend they are used in relation to Free Gifts or Free Sample distributed without any consideration. However, where Activity of Supply of Gifts or Free Sample treated as Supply on account of Provisions contained in Schedule I of CGST Act 2017, supplier would be eligible to avail Input Tax Credit (ITC).

Buy one get one free: - Where Goods supplied under Offer as ‘Buy One, Get One Free’ or under other similar offer than such Supply will be treated as Composite or Mixed Supply under Sec 8 of CSGT Act 2017, therefore it will be treated as Supply of Two Goods for the Price of one. Taxability of such Supply will depend upon type of Supply (i.e. Composite Supply or Mixed Supply). Input Tax Credit (ITC) shall be available to the Supplier for Inputs, Input Service and Capital Goods used in relation to Supply of Goods or Service or both as part of such Offer.

As Per Sec 8 of CGST Act 2017 -
Composite Supply means Supply consisting of two or more supplies of Goods or Service or Both, which are Naturally Bundled and supplied in conjunction with each other in ordinary course of Business, one of which is a Principal Supply. Tax Liability shall be at the rate of Principal Supply. Example: - Charger Supplied with Mobile Phone.

Mixed Supply means Supply consisting of two or more supplies of Goods or Service or Both which are not naturally bundled and can be supplied independently but still supplied together. In other words, Mixed Supply means Supply consisting of two or more supplies of Goods or Service or Both made in conjunction with each other by a Taxable Person for a single Price where such supply does not constitute a Composite Supply.     
Discounts including ‘Buy more, save more’ offer: - Where Supplier offers like Buy two or Get 20% off, 30% Discount on Purchase of RS.10000 or more and Get 1% Additional Discount on Purchase of 20000 Quantity or more in a year, in such case Discount offered by supplies to customers including staggered discount under such schemes shall be excluded from the Value of Supply determined under sec 15(3) of CGST Act 2017, including the reversal of Input Tax Credit (ITC) by the recipient of Supply attributable to Discount on the basis of documents(s)  issued by the Supplier. Supplier shall be entitled to avail the Input Tax Credit (ITC) for such Inputs, Input Services and Capital Goods used in relation to Supply of Goods or Service or both on such Discount.   

Secondary Discount:- As Per Sec 34(1) of CGST Act 2017, 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 exceed the taxable value or tax payable in respect of such supply, or here the goods supplied are returned by the recipient, or 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.
As per clarification vide Circular No. 92/11/2019-GST Financial/Commercial Credit Note can be issued by Supplier even if the conditions of Sec 15(3)(b) of CGST Act 2017 are not satisfied (i.e. credit note(s) can be issued as a commercial transaction between the two contracting parties).  Value of Supply shall not include any discount by way of issuance of Credit Note(s) as Secondary Discount or by any other means except in cases where provisions of Sec 15(3) (b) of CGST Act 2017 are satisfied. However, there will be no Impact on Availability of Input Tax Credit (ITC) in the Hands of Supplier in case of Secondary Discount, i.e. Supplier shall be entitled to avail the Input Tax Credit (ITC) for such Inputs, Input Services and Capital Goods used in relation to Supply of Goods or Service or both on such Discount.

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Validity and Extension of E -Way Bill

E – Way Bill (Electronic Way Bill) is a document needs to be generated before movement of Consignment of Goods commences if Consignment Limit exceeds Rs. 50000 ( However Threshold limit of E-way Bill in some states exceeding Rs. 50000). For Calculation of Threshold limit GST Charged on Supply will be included but Value of Exempted Supply shall be excluded.

Validity of E – Way Bill

For Normal Cargo: -
• For Distance up to 100 Km – Valid for One Day
• For Every 100 Km or Part thereof beyond 100 Km: - Valid for Additional One Day for Every 100 Km or Part thereof.

For Over Dimensional Cargo: -
• For Distance up to 20 Km – Valid for One Day
• For Every 20 Km or Part thereof beyond 20 Km: - Valid for Additional One Day for Every 20 Km or Part thereof.
Extension of E – Way Bill
Validity of E – Way Bill can be extended 8 Hours before Expiry of validity or 8 Hours after Expiry of Validity.

Cancellation of E – Way Bill
E – Way Bill can be cancelled within 24 Hours of generation if any mistake or incorrect entry in E- Way Bill, Provided that E – Way Bill has not been verified by Officer(s) in transit.

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Recommendation of 33rd GST Council Meeting

GST rate:-

• GST shall be levied at effective GST rate of 5% without ITC on residentialp properties outside affordable segment;
• GST shall be levied at effective GST of 1% without ITC on affordable housingp properties

Effective date: -
The new rate shall become applicable from 1 of April, 2019.

Definition of affordable housing shall be:-
A residential house/flat of carpet area of upto 90 sqm in non-metropolitan cities / towns and 60 sqm in metropolitan cities having value upto Rs. 45 lacs (both for metropolitana nd non-metropolitan cities).

Metropolitan Cities are Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater
Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (whole of
MMR).

GST exemption on TDR/ JDA, long term lease (premium), FSI:
Intermediate tax on development right, such as TDR, JDA, lease (premium), FSI shall bee exemptedonly for such residential property on which GST is payable.

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Deemed Exports in GST

• Supplies made to Export Oriented Unit (EOU) / Software Technology Park (STP) /Electronic Hardware Technology Park (EHTP) /Bio –Technology Park (BTP).
• Supplies made against Advance Authorization/ Duty Free Import Authorization (DFIA).
• Supply of goods made to mega power projects against International Competitive Bidding.
• Supplies made to United Nation Agencies.
• Supply of goods made to nuclear projects through competitive bidding.
• Supply of marine freight containers.
• Supplies against Export Promotion Capital Goods (EPCG) authorization.
• Supplies to projects against international competitive bidding.
• Supplies to projects with zero customs duty.

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Applicability of Reverse Charge Mechanism on Inward Supply form Unregistered Person under GST

Any Registered Tax Payer made in Inward Supply of Notified Goods or Services from Unregistered Person on or after 1st February 2019 liable to pay Tax under Reverse Charge Mechanism.

Conditions for Applicability of Reverse Charge Mechanism: -
• There should be Supply of Goods or Services
• Such Supply of Goods or Services should be in respect of Taxable Goods/Services.
• Such Supply must be by an Unregistered Person to Registered Person.
• Such Supply must be an intra-state supply of notified Goods or Services.

Date on from which Reverse Charge Mechanism is applicable: - From 1st February 2019 Reverse Charge Mechanism on Inward Supply of Notified Goods or Service from Unregistered Person by Registered Tax Payer.

Notified Goods or Service under Reverse Charge Mechanism: - Till now No Goods or Services Notified.

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Place of Supply of Goods

Place of supply of goods imported into, or exported from India
In case of Import of Goods: - Location of Importer
In case of Export of Goods: - Location Outside India

Place of supply of goods other than import and export
• Where the supply involves the movement of goods, whether by the supplier or the recipient or by any other person: - Location of the goods at the time at which, the movement of goods terminates for delivery to the recipient.

• Where the goods are delivered to the recipient or any person on the direction of the third person by way of transfer of title or otherwise: - Principal place of business of such third person.

• Where there is no movement of goods either by supplier or recipient: - Location of such goods at the time of delivery to the recipient.

• Where goods are assembled or installed at site: - Place where the goods are assembled or installed.

• Where the goods are supplied on-board a conveyance like a vessel, aircraft, train or motor vehicle: - Place where such goods are taken on-board the conveyance.

• Where the place of supply of goods cannot be determined in terms of the above provisions: - To be determined in the prescribed manner.

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Place of supply of services where location of supplier and recipient is in India

General Rule: -
For Supply of Service from Business to Business (B2B Supply): - Location of Such Registered Person (Location of Receipt).

For Supply of Service from Business to Customer (B2C Supply): -
• Where the address on Record Exist: - Location of Receipt (Customer).
• For Other Cases: - Location of the Supplier of Service.

Exceptions to General Rule: -
1. Immovable property related services including accommodation in hotel/boat/vessel: -
• Location at which the immovable property or boat or vessel is located or intended to be located.
• If located outside India: - Location of the recipient
• If the immovable property or boat or vessel is located in more than one State: - Each State in proportion to the value of Services provided in each state.

2.  Restaurant and catering services, personal grooming, fitness, beauty treatment and health service: - Location where the services are actually performed.

3. Training and performance appraisal: -
• For Supply of Service from Business to Business Supply (B2B Supply): - Location of Such Registered Person (Location of Receipt).
• For Supply of Service from Business to Customer (B2C Supply): - Location where the services are actually performed.

4. Admission to an event or amusement park: - Place where the event is actually held or where the park or the other place is located.

5. Organization of an event including ancillary services and assigning of sponsorship to such events: -
• For Supply of Service from Business to Business Supply (B2B Supply): - Location of Such Registered Person (Location of Receipt).
• For Supply of Service from Business to Customer (B2C Supply): - Location where the services are actually performed.
• If the event is held in more than one State: - Each such State in proportion to the value of services provided in each State.
• If the event is held outside India: - Location of the recipient.

6. Transportation of goods, including mails or courier: -
• For Supply of Service from Business to Business Supply (B2B Supply): - Location of Such Registered Person (Location of Receipt).
• For Supply of Service from Business to Customer (B2C Supply): - Location at which such goods are handed over for their transportation.

7. Transportation of Passenger: -
• For Supply of Service from Business to Business Supply (B2B Supply): - Location of Such Registered Person (Location of Receipt).
• For Supply of Service from Business to Customer (B2C Supply): - Place where the passenger embarks on the conveyance for a continuous journey.

8. Services on board a conveyance: - Location of the first scheduled point of departure of that conveyance for the journey.

9. Banking and other financial services including stock broking: -
• Location of the recipient of services in the records of the supplier.
• Location of the supplier of services if the location of the recipient of services is not available.

10. Insurance Services: -
• For Supply of Service from Business to Business Supply (B2B Supply): - Location of Such Registered Person (Location of Receipt).
• For Supply of Service from Business to Customer (B2C Supply): - Location of the recipient of services in the records of the supplier.

11. Advertisement services to the Government: -
• Each of States/Union Territory where the advertisement is broadcasted/displayed/ run/disseminated.
• Proportionate value in case of multiple States.

12. Telecommunication Services: -
• Services involving fixed line, leased and internet leased circuits, dish antenna etc: - Location of such fixed equipment.
• Post-paid mobile/ internet services: - Location of billing address of the recipient and if the same is not available, location of supplier.
• Pre-paid mobile/ internet/DTH services provided through selling agent/re-seller/distributor: - Address of such selling agent/re-seller/distributor in the records of supplier at the time of supply.
• Pre-paid mobile/ internet/DTH services by any person to final subscriber: Location where pre-payment is received or place of sale of vouchers.
• Pre-paid mobile/ internet/DTH services provided through Electronic Mode (Payment is made through electronic mode): - Location of recipient in records of supplier.
• Any Other Cases: - Address of the recipient in the records of the supplier and if the same is not available, location of supplier.
If the leased circuit is installed in more than one State: - Each such State in proportion to the value of services provided in each State.

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Amendments in GST Applicable from 1st February 2019

1. Exemption limit for GST Registration in States of Assam, Arunachal Pradesh, Himachal Pradesh, Meghalaya, Sikkim, and Uttarakhandh raised to Rs. 20 Lakhs.
2. Turnover Limit raised up to Rs. 1.5 Crs for Tax Prayers who want to Opt for Composition Scheme.
3. Supply of Service up to Rs. 5 Lakh or 10%  of Turnover (whichever is higher) in the preceding Financial Year (other than. Restaurant Services) allowed to  Composition Scheme Dealers.
4. Reverse Charge Mechanism will be applicable to notified Registered Persons on Purchase of Goods from Unregistered Suppliers.
5. Mandatory Registration for those E- Commerce Operators who are liable to Collect TCS.

6. Multiple Registration will be allowed on Same PAN within Same State or Union Territory in respect of Multiple Business Place.
7. Taxpayers will not required to file GST Returs during the Process of Cancellation, as  Registration will remain temporary Suspended while Cancellation of Registration.
8. Following Transactions will not be treated as Supply : -
1. Supply of Goods in High Sea Sales.
2. Supply of Goods from Non - Taxable Territory to Non - Taxable Territory without entering in to India.
3. Supply of Wharehoused Goods before Clearance for Home Consumption.
9. Consolidated Debit/Credit Note can be issued to a party in respect of Multiple Invoices issued to that party.
10.  Supply of Services outside India even in Indian Rupees shall be treated as Export if RBI permits.
11.  ITC will be available in respect of the following:-
1. Motor Vehicles for Transportation of Persons having seating capacity of 13 or More (including driver), vessels and aircrafts.
2. ITC on General Insurance, Repair and Maintenance of Motor Vehicles, Vessels and Aircraft on which credit available.
3. Goods or Service provided by employer to employees which are obligatory in nature under any law.
4. In Respect of Activities or Transactions covered under Schedule III (except few).
12. Commissioner may extend the time limit for Return of Inputs sent on Job work up to period of 1Year and time limit for Return of Capital sent on Job work up to 2 Years.
13. Place of supply shall be outside India, where job work or any treatment or process has been done on goods temporarily imported into India and then exported out of India without putting them to any other use in India except the uses which were necessary for the purpose of such job work or treatment or process.
14. Recovery of taxes, interest, fine, penalty etc. can be made from distinct persons, even if such distinct persons are present in different State/Union territories.

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Documents Required for New Registration Application of a Normal Taxpayer

 • Proof of Principal Place of Business (Any One): -
❖ Electricity Bill
❖ Legal Ownership Document
❖ Municipal Khata Copy
❖ Property Tax Receipt
❖ Rent/Lease Agreement
• Proof of Bank Account Detail (Any One)
❖ First Page of Pass Book
❖ Bank Statement
❖ Cancelled Cheque


Additional Documents in Case of Proprietor 

• Photo of the Proprietor
• Photo of Authorized Signatory  (in Case Person other than Proprietor is authorized to Sign)
• Letter of Authorization (in Case Person other than Proprietor is authorized to Sign)

Additional Documents in Case of Partnership Firm

• Partnership Deed
• Photo of the Partner
• Photo of Authorized Signatory
• Letter of Authorization

 Additional Documents in Case of Limited Liability Partnership Firm

• Certificate of Incorporation
• Photo of the Partner
• Photo of Authorized Signatory
• Letter of Authorization

Additional Documents in Case of Private Limited Company 

• Certificate of Incorporation
• Photo of the Director
• Photo of Authorized Signatory
• Letter of Authorization
• Board Resolution Passed by BOD

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TCS Provisions Under GST

Every E-Commerce Operator has to collect TCS, from E-Commerce Sellers who supply goods or service through Such E-Commerce Operator, on consideration received from customers on behalf of E-Commerce Seller.
No TCS liability on Service through E-Commerce Operator by :-
• Unregistered Supplier of Hotel Accommodation or Club.
• Unregistered Supplier of Housekeeping Service
• Transporter of Passenger – Radio Taxi, Motor Cab or bike etc.
Rate of TCS is 1% of Consideration Received on behalf of E-Commerce Seller by E-Commerce Operator.

GST Registration in Case of Supply of Goods or Service through E-Commerce Operator
As per Section 24(ix) of the CGST Act, 2017, every person supplying goods through an e-commerce operator shall be mandatorily required to register irrespective of the value of supply made by him. However, a person supplying services, other than supplier of services under section 9 (5) of the CGST Act, 2017, through an e-commerce platform are exempted from obtaining compulsory registration provided their aggregate turnover does not exceed INR 20 lakhs (or INR 10 lakhs in case of specified special category States) in a financial year. Government has issued the notification No. 65/2017 – Central Tax dated 15th November, 2017 in this regard.


TCS Provision in Case of Supply of Service by Unregistered Supplier through E- Commerce Operator
As per Section 24(ix) of the CGST Act, 2017, every person supplying goods or services through an ecommerce operator is mandatorily required to register. However, vide Notification 65/2017-Central Tax dated 15th November, 2017 a person supplying services, other than supplier of services under section 9 (5) of the CGST Act, 2017, through an e-commerce platform were exempted from obtaining compulsory registration provided their aggregate turnover does not exceed INR 20 lakhs (or INR 10 lakhs in case of specified special category States) in a financial year. Since such suppliers are not liable for registration, e-commerce operators are not required to collect TCS on supply of services being made by such suppliers through their portal.


Furnishing Details of TCS Collected in October Month When GST Registration is not Obtained in October Month
E-commerce operators, who have been unable to obtain registration in the month of October, 2018 but have already collected TCS for the said month, may furnish the details of TCS collected in the month of October, 2018 in the first return in FORM GTSR-8 to be filed after obtaining registration.

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Input Tax Credit Provisions in GST

Input Tax Credit means Credit of ‘Input Tax’, where in relation to Registered Person Input Tax means CGST, SGST, UGST or IGST charged on supply of Goods or Service or both made to him and includes
IGST Charged on Imported Goods and Tax payable on Reverse Charge but excludes Tax paid under Composition Scheme.

Conditions to be Fulfilled for Entitlement of ITC
Any registered person will be entitled to claim Input Tax Credit only upon fulfillment of the following conditions:-
• He is in possession of tax invoice/ debit note issued by a registered supplier or any other prescribed tax paying documents.
• He has received the goods or services or both.
• The tax charged on such supply has actually been paid to the Government by the supplier (by way of cash or by utilizing input tax credit)
 He has furnished a valid return.

Situations where the input tax credit cannot be taken under GST
1. Motor Vehicles and Conveyance
• Exception: - ITC will be available in following cases
• Transportation of Goods
• Transportation of Passengers
• Further Supply of Such Vehicle or Conveyance
• Imparting training on driving, flying, navigating such vehicle or conveyances.

• Motor Vehicles for Transportation of Persons having seating capacity of 13 or More (including driver), vessels and aircrafts. (w.e.f 1st February 2019)

2. Food, Beverages, Club Membership and others
3. Sale of Membership in a Club, Health, Fitness Center
4. Rent a Cab, Life Insurance, Health Insurance
5. Travel
6. Works Contract
7. Construction of Immovable Property for own account
8. Composition Scheme
9. No ITC for Personal Use
10. No ITC for Non Resident
11. Free Samples and Destroyed Goods
12. No ITC for Fraud Cases
13. No ITC of Restaurant.

Utilization of Credit from Input Tax Credit
• ITC can be utilized for payment of Tax liability.
• ITC cannot be utilized for payment of TDS/TCS/interest/penalty/fee/others.
• ITC cannot be utilized for payment tax liability under RCM.
• IGST Input Tax Credit shall be first be utilized towards payment of IGST liability and the amount remaining, if any, may be utilized towards the payment of CGST, SGST/UTGST liabilities in that order.
• CGST Input Tax Credit shall be first be utilized towards payment of CGST liability and the amount remaining, if any, may be utilized towards the payment of IGST liability.

• SGST Input Tax Credit shall be first be utilized towards payment of SGST  liability and the amount remaining, if any, may be utilized towards payment of IGST liability if no CGST credit is available.
• UTGST Input Tax Credit shall first be utilized towards payment of UTGST liability and the amount remaining, if any, may be utilized towards payment of IGST liability if no CGST credit is available.
• CGST Input Tax Credit shall not be utilized towards payment of SGST/UTGST liabilities.
• SGST/UTGST Input Tax Credit shall not be utilized towards payment of CGST liabilities.

Manner of determination of ITC attributable to exempt supplies when Capital Goods are used for exempted supply as well as Taxable supply

The credits are determined in terms of Rule 43 of the CGST Rules, 2017 are as under:
a) Input tax in respect of capital goods used or intended to be used exclusively for non-business purposes or used or intended to be used exclusively for effecting exempt supplies shall be indicated in FORM GSTR-2 and shall not be credited to his electronic credit ledger
b) Input tax in respect of capital goods used or intended to be used exclusively for effecting taxable supplies including zero-rated supplies shall be indicated in FORM GSTR-2 and shall be credited to the electronic credit ledger
c) Out of the total input tax credit on capital goods, the amount of input tax credit in (a) and (b) shall be deducted from total input tax credit and shall be credited to the electronic credit ledger and the useful life of such good shall be taken as five years.
d) The common input tax credit attributable to exempt supplies shall be calculated as a ratio of the aggregate value of exempt supplies to the total turnover of the person in the tax period.
e) In case if the turnover details are not available then the values for the preceding tax period shall be taken for calculation.

Special Case of Input Tax Credit in GST

Input Tax Credit on Hotel Accommodation Bill
Hotel will always Charge CGST and SGST on Accommodation Bill. If Receiver of Service have GST Registration in State or Union Territory in which Supply of Service Made then Can Claim ITC otherwise cannot claim ITC on Accommodation Bill.

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Manner of determination of ITC attributable to exempt supplies when Capital Goods are used for exempted supply as well as Taxable supply

The credits are determined in terms of Rule 43 of the CGST Rules, 2017 are as under:
(a) Input tax in respect of capital goods used or intended to be used exclusively for non-business purposes or used or intended to be used exclusively for effecting exempt supplies shall be indicated in FORM GSTR-2 and shall not be credited to his electronic credit ledger
(b) Input tax in respect of capital goods used or intended to be used exclusively for effecting taxable supplies including zero-rated supplies shall be indicated in FORM GSTR-2 and shall be credited to the electronic credit ledger
(c) Out of the total input tax credit on capital goods, the amount of input tax credit in (a) and (b) shall be deducted from total input tax credit and shall be credited to the electronic credit ledger and the useful life of such good shall be taken as five years.
(d) The common input tax credit attributable to exempt supplies shall be calculated as a ratio of the aggregate value of exempt supplies to the total turnover of the person in the tax period.
(e) In case if the turnover details are not available then the values for the preceding tax period shall be taken for calculation.

Important Abbreviations used in GST

• GST - Goods and Service Tax 
• IGST - Integrated Goods and Service Tax
• CGST - Central Goods and Service Tax
• SGST - State Goods and Service Tax
• UTGST - Union Territory Goods and Service Tax
• GSTIN - Goods and Service Tax Identification
• CPIN - Common Portal Identification Number
• HSN - Harmonised System of Nomenclature
• SAC - Service Accounting Code
• URP - Unregistered Person
• B2B - Business to Business
• B2C - Business to Customer
• UIN - Unique Identification Number
• UQC - Unit Quantity Code
• POS - Place of Supply of Goods and Service
• CIN - Challan Identification Number
• OTC - Over The Counter
• BRN - Bank Reference Number
• NEFT - National Electronic Fund Transfer
• RTGS - Real Time Gross Settlement
• ITC - Input Tax Credit
• TDS - Tax Deducted at Source
• TCS - Tax Collected at Source
• ISD - Input Service Distributior
• E-FPB - Electronic Focal Point Branch
• DSC - Digital Signature Certificate
• EVC - Electronic Verification Code
• CBIC - Central Board of Indirect Tax and Customs
• CENVAT - Central Value Added Tax
• CBEC - Central of Board of Excise and Customs
• GSTN - Goods and Service Tax
• TRP - Tax Return Preparer
• RFID - Radio Frequency Identification Device
• GSTP - GST Practitioner
• SEZ - Special Economic Zone

Eligibility for GST Practitioner Exam

Qualifications for Becoming a GST Practitioner:-
1. Any retired officer of the Commercial Tax Department of any State Government or of the central Board of Excise and Custom (CBEC), who has worked in a post of Group-B (or higher) gazetted officer for atleast a minimum period of two years.
2. Any Tax Return Preparer or a Sales Tax Practitioner, those who are registered for a period of at least 5 years.
3. Any graduate or postgraduate in Commerce, Law, Banking including Higher Auditing, or Business Administration or Business Management from any Indian University  or a recognized Foreign University
4. Chartered Accountant, Cost Accountant or a Company Secretary.

Beside above Qualifications Person should also fulfill following conditions: -
1. That Person should be Citizen of the India.
2. That Person should be of Sound Mind.
3. That Person should not be adjudged as Insolvent.
4. That Person should not not be convicted for an office for a period of 2 Year or More.

Annual Return in Goods and Service Tax

 Annual Return in Goods and Service Tax shall be filled by every Registered Tax Payer including Composition Scheme Dealer in form GSTR 9 or in Form GSTR 9A or in Form GSTR 9B or GSTR 9C depending upon type of Registration.

Form GSTR 9A is to be filled by Tax Payer who are Registered under Composition Scheme.

Form GSTR 9B is to be filled by E – Commerce Operator (like Amazon, Flipkart, Paytm etc.).

Form GSTR 9C is to be filled by any Tax Payer who’s annual Turnover Exceeds Rs. 200 Lakhs. Such Persons are also required to get their accounts audited and required to file a Reconciliation Statement which Reconcile Tax Payable as Per Form GSTR 9C and Tax already Paid by Such Tax Payer.

Type of Registered Tax Payers who are not required to File Annual Return: -
Any Tax Payer who are Registered as Casual Tax Payers
Tax Payers Registered as Input Service Distributer
Any Non Resident Persons Registered Under GST
Tax Payer who are Liable to Deduct TDS under GST

Due Date for Filing of Annual Return: -
Annual Return in Form GSTR 9 or GSTR 9A or GSTR 9B or GSTR 9C shall be filled on or before 31st December of succeeding year.

E-Way Bill Registeration and Generation Process

Visit: - www.ewaybill.nic.in

Following Screen will be Displayed on Right Side of Page, If You are Registered User Enter Username and Password and Login.

If you are Not Registered then Register your self at portal.
Click e-Way Bill Registeration if You are Registered Person. When You Click on e-Way Bill Registeration following Screen will be Displayed: -

Enter GSTIN and Code and Proceed.

If You you Want to Register as Transporter then Click on 'Enrollment for Transporter'.
Following Screen will be Displayed: -

Enter Details and Proceed.

To Get Transporter ID when Forgotten:-
Click on Forget Transport ID.
Following Screen will be Displayed:-

Enter Required Details and Proceed.

To Get Password in case Password forgotten.
Click on Forget Password. Following Details will be displayed: -

Advisory to Exporters for filing Table 6A of GSTR-1 on GST Portal

a)To ensure that the GST System transmits the export invoice data, in case of export of goods with payment of IGST, to ICEGATE for refund, Exporters need to provide Complete and Correct Data while filing Table 6A of GSTR-1:
• Invoice No. and Date (Tax invoice and not commercial invoice).
• Select from drop down list (WPAY- with payment of tax)/WOPAY-without payment of tax.
• Shipping Bill No. & Date.
• Please note, if you are using offline tool for GSTR 1, the date format is dd-mmm-yyyy e.g. 15th July 2017 will be written as 15-Jul-2017 and not like 15/07/2017.
• Six Digit Port Code should be mentioned correctly.
• Invoice Value: It is the total value of export goods covered by the invoice including of tax and other charges, if any.
• Taxable Value: It is the value of goods, on which tax is paid. (Value net of tax).
• Tax Paid IGST, only in case, where the export is done on payment of IGST.
b)To ensure that the GST System transmits the export invoice data, in case of export of goods with payment of IGST, to ICEGATE for refund, Exporters need to maintain consistencies between data provided at GST Portal and ICEGATE Portal while filing Table 6A of GTSR-1. Invoice details specified under Table 6A of GSTR-1 should match with what is mentioned in the Shipping bills at ICEGATE. Please note that the invoice value data should match with that shown in shipping Bill.
c)To ensure that the GST System transmits the export invoice data, in case of export of goods with payment of IGST, to ICEGATE for refund, Exporters should make payment of Tax and File Return:
• File Form GSTR-3B of corresponding period.
• In case of export of goods, the IGST amount paid should be shown through Table 3.1(b) of GSTR-3B and amount must be equal to or greater than the total IGST amount shown in Table 6A, and Table 6B, of GSTR-1 for the corresponding tax period.

Advisory to the Exporters filing for Refund

a) Advisory to the Exporters for Refund of IGST Paid on Export of Goods:
1. File FORM GSTR 1 for the corresponding tax period.
2. Fill complete and correct data of export of goods in Table 6A of FORM GSTR 1 of the relevant tax period.
3. Pay your tax and File FORM GSTR 3B return for the corresponding tax period.
4. While filing GSTR 3B Return for the said tax period, please make sure that that table 3.1 (b) of Form GSTR 3B is filled correctly and the amount shown in this should be equal to or more than the amount of IGST in table 6A, and table 6B (Supply to SEZ),of GSTR1.

b) Advisory for exporters on correctly filing Table 3.1(b) of GSTR 3B:
While filing GSTR 3B Return for the said tax period, please make sure that that table 3.1 (b) of Form GSTR 3B is filled correctly.
1. GSTR-3B of corresponding return period must be filed.
2. The IGST amount paid should be shown through Table 3.1(b) of FORM GSTR-3B, and the amount must be equal to or greater than the total IGST amount shown in Table 6A, and Table 6B, of GSTR-1 for the corresponding tax period.
3. NONE of the export invoices filed in Table 6A of GSTR-1, of the corresponding return period, shall get transmitted to ICEGATE if correct IGST amount is not filed in Table 3.1(b) of GSTR-3B. Hence the refund of IGST amount paid on exports will be impacted.

GSTN have modified few aspects of GSTR 3B filing

 Following Changes have been done to the GSTR 3B online filing process by GSTN,

1) User will have to Fill either CGST or SGST/UGST amount, other taxes columns will get auto filled.

2) User can now save the Form on confirming details filled in the Table. You can fill balance details later.

3) User can Preview Form or download it for cross verifying saved details in any table(s) anytime.

4) For freezing the details and to know the liability, submit option is not required now.

5) Changes in any table can be made before making payment towards liabilities.

6) Once you proceed to payment, you can also see details of existing balances in cash and credit ledgers (Table 6.1 – Payments Table).

7)  System suggested Tax Credit (ITC) is already filled for discharging liability. Be aware, it is only suggestion. You can edit the same before finalizing the Return.

8) Once you confirm ITC and cash utilization for payment of tax liability in Payments Table, system does automatic calculation for shortfall in cash ledger.

9) Once you are Ok with shortfall, System will generate pre-filled challan for shortfall and navigate to payments option.

10) Once you make online payment, system will navigate back to Payments Table.

11) You can Track Return status as well as download the Return from through Track Return Status functionality available at your dashboard.

Complete Analysis of EWAYBILL

Who shall furnish detail

Every registered person who causes movement of goods shall furnish information relating to the said goods in PartA of FORM GST EWB-01, electronically, on the common portal, before commencement of such movement. In case of supply by an unregistered person to a registered recipient, then the movement shall be said to be caused by registered recipient if such recipient is known at the time of commencement of the movement of of Goods.

When to submit
If the consignment value of such goods exceeds 50,000/-. Option is given to generate and carry e-way bill even if the consignment value is less than 50,000/-. If movement is in relation to a supply or for reasons other than supply or due to inward supply from an unregistered person.

When not required to Generate E-Way Bill
Generation of e-way bill is not required in the following cases:
1. In case where the goods are transported for a distance of less than 10 Kms intra-state from the place of business of the consignor.
2. Where the goods being transported are specified in annexure to the Notification no 27/2017.
3. Where the goods are being transported by a non-motorized conveyance;
4. Where the goods are being transported from the Port, Airport, Air Cargo Complex and Land Customs Station to an Inland Container Depot or a Container Freight Station for clearance by Customs; or
5. In respect of movement of goods within such areas as are notified under rule 138(14) (d) of the Goods and Services Tax Rules of the concerned State.

Who should enter details in Part B and Generate the E-way bill
 If goods are transported by the registered person himself as a consignor or as a consignee through own conveyance or a hired one or by railways or by air or by vessel The consigner/ consignee as the case may beIf goods are handed over to a transporter for transportation by road The registered person shall only furnish the information relating to the transporter in Part B and the e-way bill shall be generated by the transporter. When movement is caused by an unregistered person either in his own conveyance or a hired one or through a transporter. The unregistered person or the transporter may, at their option, generate the e-way bill.

When details of conveyance not required
Details of conveyance in Part B is not required to be provided if goods are transported for a distance of less than ten kms within the State or Union territory from the place of business of the consignor to the place of business of the transporter for further transportation.

EBN Number 
Upon generation of e-way bill on the common portal, a unique e-way bill number (EBN) shall be made available to the supplier, the recipient and the transporter on the common portal.

Acceptance or rejection of e-way bill
The details of e-way bill generated shall be made available to the recipient, if registered who shall communicate his acceptance or rejection of the consignment. Where no communication is made within 72 hours, then it shall be deemed that he has accepted the said details.

Transferring goods in transit
If a transporter is transferring goods from one conveyance to another in the course of transit then he shall update the details of conveyance in the e-way bill before such transfer and further movement of goods.

 Multiple consignments
 If multiple consignments are intended to be transported in one conveyance, then the transporter may indicate the serial number of e-way bills of each consignment and a consolidated e-way bill may be generated by him prior to the movement of goods.

If goods not transported as per e-way bill generated
 Where an e-way bill has been generated, but goods are either not transported or are not transported as per the details furnished in the e-waybill, then the e-way bill may be cancelled within 24 hours of generation of the e-way bill.

Validity of e-way bill
 Any e-way bill which is generated shall be valid in every State and Union territory. However, the periodicity of validity shall be as under:
1. Upto 100 Km - 1 day
2. For every 100 km or part thereof thereafter - One additional day the period of validity shall be counted from the time at which the e-way bill has been generated and each day shall be counted as twenty four hours. In Case of Exceptional Circumstances, If goods cannot be transported within the validity period of the e-way bill due to circumstances of an exceptional nature, then the transporter may generate another e-way bill after updating the details in Part B.

Documents to be carried
The person in charge of a conveyance shall carry the following:
1. The invoice or bill of supply or delivery challan, as the case may be; and
2. A copy of the e-way bill or the e-way bill number, either physically or mapped to a Radio Frequency Identification Device embedded on to the conveyance in such manner as may be notified by the Commissioner.

Mandatory device in the conveyance
Commissioner may, by notification, require a class of transporters to obtain a unique Radio Frequency Identification Device and get the said device embedded on to the conveyance for mapping the e-way bill to the said device.

Interception of any conveyance
The Commissioner or an officer empowered by him in this behalf may authorize the proper officer to intercept any conveyance to verify the e-way bill or the e-way bill number in physical form for all inter-State and intrastate movement of goods. If a vehicle has been intercepted and detained for a period exceeding thirty minutes, then transporter may upload the said information in FORM GST EWB-04 on the common portal.


Report of inspection
A summary report of every inspection of goods in transit shall be recorded online by the proper officer within 24 hours of inspection and the final report shall be recorded within 3 days of such inspection.

Physical verification of goods
No further physical verification of the said conveyance shall be carried out again in the state, if the physical verification of goods being transported has been done during transit at one place within the State or in any other State, unless specific information relating to evasion of tax is made available subsequently.