GST_Manual for beginners updated version

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Indian Railways
GST Manual
Updated as on 1st
October, 2019

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INDEX
Sl.No. Particulars /Conceptual Notes Page No.
1 Concept of GST 04 – 06
2 Supply & Nature of supply 07 – 24
3 GST Exemptions 25 – 30
4 GST Rates on supplies by IR 31 – 32
5 Input tax credit 33 – 43
6 Returns 44 – 46
7 Documentation 47 – 52
8 Tax deducted at Source 53 – 55
9 Annexure A- Cases where generation of E way bill is not required. 56 – 57

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Abbreviations:
GST Goods and Services Tax VAT Value Added Tax
CGST Central Goods and Services Tax SBC Swachh Bharat Cess
SGST State Goods and Services Tax KKC Krishi Kalyan Cess
IGST Integrated Goods and Services Tax PAN Permanent Account Number
B2B Business to Business FY Financial Year
B2C Business to Consumer GTA Goods Transport Agency
LUT Letter of Undertaking TCS Tax Collected at Source
SEZ Special Economic Zone TDS Tax Deducted at Source
ITC Input Tax Credit ISD Input Service Distributor
PO Purchase Order DC Delivery Challan
RCM Reverse Charge Mechanism NA Not Applicable
ED Excise Duty CN Credit Note
ASP Application Service Provider DN Debit Note
GSP GST Suvidha Provider HSN Harmonized System of
Nomenclature
DSC Digital Signature Certificate UQC Unique Quantity Code

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1.1 Taxability structure
Following are some major duties which were being levied under erstwhile indirect tax regime,
 Excise Duty: On Manufacturing levy by Centre
 VAT: On Sale levy by State
 Service Tax: On Services levy by Centre
 Entry Tax: On Entry of Goods levy by State
CGST
SGST
IGST
 VAT/Sales tax
 Central Sales Tax (CST)
 Entertainment tax (other than
levied by local bodies)
 Octroi and Entry tax
 Purchase tax
 Luxury tax
 Taxes on lottery, betting,
gambling
 State surcharges, cesses relating
to supply of goods and services
 Central excise duty
 Additional excise duties
 ED under the Medicinal &
Toiletries Preparation Act
 Service tax
 Additional Customs Duty
(CVD)
 Special additional duty (SAD)
 All other cesses including
Clean Energy Cess
Earlier Tax Structure
Duties of Customs (i.e. BCD, Anti-Dumping Duty, Safeguard
Duty, etc) continues to be levied on Import of Goods in India

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GST is a dual levy with
 CGST by the Centre,
 SGST by the states and
 IGST by the Centre (tax revenue of IGST will be shared by the Centre and the States).
Section 9(1) of the CGST Act provides that CGST shall be levied on all intra-state supplies of goods or services or both,
except on below:
 supply of alcoholic liquor for human consumption, on the value determined under section 15 (will be elaborated below)
of the CGST Act – State taxes continues to be levied
 supply of petroleum crude, high speed diesel, petrol, natural gas and aviation turbine fuel – GST will be applicable on
these goods as and when notified by government
Similar provisions have been inserted under IGST Act vide Section 5(1), which provides for the levy of IGST on all inter-
state supplies under similar conditions as exist in the CGST Act as above.
On perusal of above provisions, it may be noted that all supply transactions would be subject to levy of both SGST and CGST
or levy of IGST, as applicable.
Indian Railways
Customer 1
Tax = CGST + SGST
Tax = IGST
STATE A
STATE B
Customer 2

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CONCEPT OF “SUPPLY”
&
NATURE OF SUPPLY

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2.1 ‘Supply’ under GST
In this respect, supply has been defined under Section 7 of CGST Act, to include-
a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or
disposal made or agreed to be made for a consideration by a person in the course or furtherance of business;
b) import of services for a consideration whether or not in the course or furtherance of business; and
c) the activities specified in Schedule I, made or agreed to be made without a consideration;
Further, a new section was inserted via the amendment act to specify that if any transaction constitutes a supply under of the
above categories, the same can further be specified as Supply of goods or supply of services in accordance with provisions of
Schedule II of the CGST Act.
‘Supply’ at a Glance:
Supply means :Any sale, transfer, barter, exchange, etc. + in the course or furtherance of business +for consideration
Includes
• Import of services for a consideration
• Supplies without consideration (Schedule I)
Excludes (neither supply of goods nor supply of services)
• Activities not to be treated as Supply as per Schedule III
• Activities undertaken by Central/ State Govt/ Local authority as notified
Schedule I : Activities to be treated as supply even if made without consideration
1. Permanent transfer or disposal of business assets where input tax credit has been availed on such assets.
2. Supply of goods or services or both between related persons or between distinct persons as specified in section 25,
when made in the course or furtherance of business:
Provided that gifts to employees up to value of rupees fifty thousand in a financial year shall be not be treated as supply.
3. Supply of goods—
(a) by a principal to his agent where the agent undertakes to supply such goods on behalf of the principal; or
(b) by an agent to his principal where the agent undertakes to receive such goods on behalf of the
principal.
4. Import of services by a taxable person from a related person or from any of his other establishments outside India,
in the course or furtherance of business.

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Schedule II : Clarifications in respect of certain activities as to whether it is to be treated as supply of goods or of services
as mentioned below:
1. Transfer
a) any transfer of the title in goods is a supply of goods;
b) any transfer of right in goods or of undivided share in goods without the transfer of title thereof, is a supply of
services;
c) any transfer of title in goods under an agreement which stipulates that property in goods shall pass at a future
date upon payment of full consideration as agreed, is a supply of goods.
2. Land and Building
a) any lease, tenancy, easement, licence to occupy land is a supply of services;
b) any lease or letting out of the building including a commercial, industrial or residential complex for business or
commerce, either wholly or partly, is a supply of services.
3. Treatment or process
Any treatment or process which is applied to another person's goods is a supply of services.
4. Transfer of business assets
a) where goods forming part of the assets of a business are transferred or disposed of by or under the directions of
the person carrying on the business so as no longer to form part of those assets, whether or not for a
consideration, such transfer or disposal is a supply of goods by the person;
b) where, by or under the direction of a person carrying on a business, goods held or used for the purposes of the
business are put to any private use or are used, or made available to any person for use, for any purpose other
than a purpose of the business, whether or not for a consideration, the usage or making available of such goods
is a supply of services;
c) where any person ceases to be a taxable person, any goods forming part of the assets of any business carried
on by him shall be deemed to be supplied by him in the course or furtherance of his business immediately before
he ceases to be a taxable person, unless
(i) the business is transferred as a going concern to another person; or
(ii) the business is carried on by a personal representative who is deemed to be a taxable person.
5. Supply of services
The following shall be treated as supply of services, namely:—
a) renting of immovable property;
b) construction of a complex, building, civil structure or a part thereof, including a complex or building intended for
sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of

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completion certificate, where required, by the competent authority or after its first occupation, whichever is
earlier.
Explanation.—For the purposes of this clause—
1) the expression "competent authority" means the Government or any authority authorised to issue completion
certificate under any law for the time being in force and in case of non-requirement of such certificate from
such authority, from any of the following, namely:—
i. an architect registered with the Council of Architecture constituted under the Architects Act, 1972; or
ii. a chartered engineer registered with the Institution of Engineers(India); or
iii. a licensed surveyor of the respective local body of the city or town or village or development or planning
authority;
2) the expression "construction" includes additions, alterations, replacements or remodelling of any existing civil
structure;
c) temporary transfer or permitting the use or enjoyment of any intellectual property right;
d) development, design, programming, customisation, adaptation, upgradation, enhancement, implementation of
information technology software;
e) agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act; and
f) transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred
payment or other valuable consideration.
6. Composite supply
The following composite supplies shall be treated as a supply of services, namely:—
a) works contract as defined in clause (119) of section 2 – “works contract means a contract for building, construction,
fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance,
renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether
as goods or in some other form) is involved in the execution of such contract”; and
b) supply, by way of or as part of any service or in any other manner whatsoever,of goods, being food or any other
article for human consumption or any drink (other than alcoholic liquor for human consumption), where such
supply or service is for cash, deferred payment or other valuable consideration.
7. Supply of Goods
The following shall be treated as supply of goods, namely:—
Supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred
payment or other valuable consideration.

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Schedule III enumerates the activities which shall be treated neither as supply of goods nor a supply of services
which implies that such activities as mentioned under this schedule shall not attract levy of GST. These activities shall be treated
as non-GST supplies. The activities listed under the said schedule are put in the below given table for reference at glance.
Elected Representatives/ Government officials
• Functions performed by an MP, MLA, members of panchayats, municipalities and local authorities
• Person who hold post under constitution
• Duty by any person as chairman/member/director in a body established by CG/ SG or local authorities
Actionable Claims: Other than Lottery.
Sale of Land and Building: Sale of land and, subject to 5(b) of Schedule II, sale of building.
Supply of Goods from a place in the non-taxable territory to another place in the non-taxable territory without
such goods entering into India.
Supply of goods by the consignee to any other person, by endorsement of documents of title to the goods, after the goods
have been dispatched from the port of origin located outside India but before clearance for home consumption.
Employment
Services by an employee to an
employer in the course of or in
relation to his employment
Funeral
Services of funeral, burial,
crematorium or mortuary
including transportation of the
deceased
Courts Services by any court (including district
court, high court and supreme court) or tribunal
established under law for the time being in
force.

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2.2 Determination of Supply Type
However, in order to levy GST, it is pertinent to understand which supply constitutes an intra-state supply or inter-state supply
(i.e., determination of nature of supply).
The IGST Act, 2017 provides for the determination of the place of supply of goods/services so as to determine the nature of
supply and whether CGST and SGST or IGST is to be paid on a transaction. The GST levy logic is shown in the figure below.
GST Supply
Intra State Supply
Goods and/or
Services
SGST
CGST
Inter State Supply
Goods and/or
Services
IGST
Import
Goods
Basic Custom Duty
and other import
duties as applicable
IGST
Services
IGST
Export
Goods and/or
Services
Physical Export
1. Pay IGST and Refund to be
claimed by Exporter
2. Sale without GST ie under a
LUT
Supply to SEZ
Goods and/or
Services
Zero Rated
(supply under LuT)
Pay IGST and claim,
Refund
Non GST Supply
E.g. Petrol, Diesel,
ALcohol for human
consumption, etc
Supply
GST Structure

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 All intra state supplies of goods and/or services would attract SGST and CGST
 Interstate supplies of goods and/or services would attract IGST.
 All import of goods would attract basic customs duty and IGST which has replaced the Special Additional Duty (SAD) and
Countervailing Duty (CVD). IGST would be levied on all import of services.
 Export transactions would be zero rated wherein the supplier has the following two options-
a) export without payment of IGST under bond or LUT
b) export on payment of IGST and claim refund later
 Similar to the export transactions, supplies to SEZ are covered under zero-rated supply.
Situation Nature of supply
Interstate Supplies (Leviable to IGST) If location of supplier and place of supply are in different States.
Intra State Supplies (Leviable to CGST /
SGST)
If location of supplier and place of supply are in same State.
Import of services/goods(Leviable to
BCD+IGST)
Deemed to be interstate supply of goods and services
Export of services/goods Deemed to be interstate supply of goods and services
Supply to SEZ Unit/ SEZ Developer Deemed to be interstate supply of goods and services
2.3 Time of supply
Time of supply determines the time, when liability to pay tax arises under GST law in respect of supply of goods or
services made by a taxable person. In general, the time of supply is as follows:
Supply of goods: In case of Supply of goods, TOS shall be determined as follows:
Earlier of following dates:
 Date of issue of Invoice; or
 Removal of goods; or
 Date of receipt of payment/ consideration1
Supply of Services: In case of Supply of services, TOS shall be determined as follows:
a) If invoice is issued within the 30 days from provision of supply of service, then earlier of the following dates:
 Date of issue of Invoice; or
 Date of receipt of payment/ consideration
1
The Government has issued Notification No. 66/2017-Central Tax dated 15th
November 2017, vide which a registered person (who did not opt for the
composition levy) is not required to pay tax on advances received towards supply of Goods

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b) If invoice is not issued within the prescribed time limit, then earlier of the following:
 Date of provision of service; or
 Date of receipt of payment/ consideration
Continuous supply of service: In case of continuous supply of services, tax invoice is required to be raised as per the
following time limits:
a) where the due date of payment is ascertainable from the contract, the invoice shall be issued on or before the due date
of payment;
b) where the due date of payment is not ascertainable from the contract, the invoice shall be issued before or at the time
when the supplier of service receives the payment;
c) where the payment is linked to the completion of an event, the invoice shall be issued on or before the date of completion
of that event
Further, in case of continuous supply of goods, where successive statements of accounts or successive payments are
involved, the invoice shall be issued before or at the time each such statement is issued or, as the case may be, each such
payment is received.
Reverse charge Mechanism: Where the supplies are subject to Reverse Charge Mechanism i.e. liability to pay tax is on the
recipient of the supply, TOS shall be determined as follows:
Earlier of following dates:
 Date of receipt of goods (not applicable for services);
 Date of payment as entered in the books of recipient or actual date on which payment is debited from recipient's
bank account; or
 Date immediately following thirty days (in case of goods)/ sixty days (in case of services) from the date of issue of
invoice by the supplier;
However, in case of supply of services by associated enterprises located outside India, the time of supply shall be the
date of entry in the books of account of the recipient of supply or the date of payment, whichever is earlier.
Interest, late fee or Penalty for delayed payment of consideration:
Time of Supply shall be the date of receipt of such Interest, late fee or Penalty by the supplier.
Excess Amount Received upto INR 1,000/-
In case of receipt of excess amount upto Rs. 1,000/-, the supplier has an option to pay tax on such excess amount on
the date of issue of invoice in respect of such excess amount.

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“TIME OF SUPPLY” PROVISIONS APPLICABLE ON INDIAN RAILWAYS AT A GLANCE
a. Time of supply of goods
b. Time of supply of services
Taxable under Forward charge
Taxable under Reverse charge
Earlier of:
Date of issuance of invoice
Last date on which invoice has to be
issued
Earlier of:
Date of issuance of invoice
Date when payment is made
Date immediately following 30 days
from the date of invoice.
Taxable under Forward charge
Taxable under Reverse charge
Invoice issued in 30 days
Earlier of:
-Date of issuance of invoice, or
-Date of receipt of payment
Invoice not issued in 30 days
Earlier of:
-Date of provision of service, or
-Date of receipt of payment
Earlier of:
Date of payment is made
Date immediately following 60 days
from the date of invoice
In case ToS is not determined basis above,
date of entry in the books of accounts of
recipient of supply shall be the time of
supply.

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2.4 Place of supply
The IGST Act provides for the determination of the place of supply of goods/services. It is important to determine the place
of supply so as to find out whether IGST would be levied or CGST and SGST would be levied.
a. Place of supply of goods
The rules for determining place of supply of goods is given in the table below:
Sr. No. Situation Place of Supply
1 Supply involves 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. i.e. place of delivery of goods
2 Goods are delivered by the supplier to a recipient or any other
person, on the direction of a third person, whether acting as
an agent or otherwise, before or during movement of goods,
either by way of transfer of documents of title to the goods or
otherwise
Principal place of business of third person on whose
direction the goods are being transported.
3 Supply does not involve movement of goods Location of goods at the time of the delivery to the
recipient
4 Goods are assembled or installed at site Place of installation or assembly
5 Goods are supplied on board a conveyance, such as a vessel,
an aircraft, a train or a motor vehicle
Location at which goods are taken on board
6 Goods are Imported into India Location of Importer
7 Goods are Exported outside India Location Outside India
8 All other cases Shall be determined by law made by the Parliament in
accordance with the recommendation of the Council

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b. Place of supply of services (both supplier and recipient is in India)
The rules for determining place of supply of services is given in the table below:
Sr. No. Services Place of supply (B2B) Place of supply (B2C)
1. General rule Location of Recipient If address available on record
then location of recipient
otherwise location of supplier.
2. In relation to Immovable Property including
accommodation services, etc
Location of immovable Property
Note that if the immovable
property is outside India, the n
the place of supply will be
location of the recipient.
Location of immovable property
3. Restaurant and Catering, Personal Grooming,
Fitness, Beauty Treatment, Health including
Cosmetic and Plastic Surgery Services
Location where services actually
performed
Location where services actually
performed
4. Training and Performance Appraisal Location where service recipient
is registered
Location where services are
actually performed
5. Admission to cultural, artistic, sporting,
scientific, educational or entertainment or
amusement or any other place and ancillary
services
Location where event is held or
such park situated
Location where event is held or
such park situated
6. Organizing cultural, artistic, sporting, scientific,
educational or entertainment and other ancillary
service
Location of registered service
recipient
Location where event is held
7. Transportation of Passengers Location of the recipient Location where passenger
embarks the train for continuous
journey.

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8. Transportation of Goods
Note – If goods are to be transported to a place
outside India, then place of supply shall be the
destination of such goods
Location of the recipient Location where goods are handed
over for transportation
9 Banking and other financial services Location of the recipient as per
records
If address available on record
then location of recipient
otherwise location of supplier.
10 Insurance services Location of the recipient Location of the recipient as per
records
11 Advertisement services to the Central
Government, a State Government, a statutory
body or a local authority
Location for whose benefit the advertisement is being undertaken as
per the agreement.

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“PLACE OF SUPPLY” PROVISIONS FOR INDIAN RAILWAYS AT A GLANCE:
SUPPLY OF SERVICES
S. No. Nature of Supply Customer POS
1 Transportation of Goods
Registered State of Registration of customer
Unregistered
State of registration of Railways (supplier) where
goods are handed over for transportation.
2 Transportation of Passenger
Registered State of Registration of customer
Unregistered Place of Embarkation of customer
3
Services in relation to Immovable
Property e.g., Retiring Rooms
Registered/
Unregistered
Location of Immovable Property
4
Restaurant &Catering Services
(Catering)
Registered/
Unregistered
Location where services are actually performed
5
Supply of services on board a
train
Registered/
Unregistered
Location which was the first scheduled departure
of that conveyance for that journey.
SUPPLY OF GOODS
S. No. Nature of Supply Customer POS
1
Sale of Goods (No movement
involved)
Registered/
Unregistered
State of registration of Railways (supplier)
2
Sale of Goods and movement by
Railways
Registered/
Unregistered
State of Termination of Movement
3
Sale of Goods and Movement by
Customer(LUT taken)
Registered/
Unregistered
State of Termination of Movement (as per LUT)
4
Sale of Goods and Movement by
Customer(LUT not taken)
Registered/
Unregistered
State of registration of Railways (Supplier)

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Illustration on GST implication:
Given below are some sample transactions assuming an SGST rate of 9%, CGST rate of 9% and IGST rate of 18%.
Sr. No. Transactions
I. Taxable event: Intra-state supply of goods and/or services
Suppose a supplier, “Supplier Enterprises” is registered in Delhi and a buyer, “Buyer Enterprises” is also registered
in Delhi. Supplier Enterprises and Buyer Enterprises make a supply transaction for taxable goods and /or services
and the place of supply is in Delhi. This is an intra-state supply transaction and SGST and CGST would be levied
on the transaction. The amount of tax to be paid would be calculated as shown below:
 Transaction value/ taxable value = Rs.10,000
 SGST tax (@ 9%) = Rs.900 and CGST tax (@ 9%) = Rs.900
 Total tax payable = Rs.1800
II. Taxable event: Inter-state supply of goods and/or services
Suppose a supplier, “Supplier Enterprises” is registered in Delhi and a buyer, “Buyer Enterprises” is registered in
Rajasthan. Supplier Enterprises and Buyer Enterprises make a supply transaction for taxable goods and /or
services and the place of supply is in Rajasthan. This is an inter-state supply transaction and IGST would be levied
on the transaction. The amount of tax to be paid would be calculated as shown below:
 Transaction value/ taxable value = Rs.10,000
 IGST tax (@ 18%) = Rs.1,800
 Total tax payable = Rs.1,800
III. Taxable event: Export of goods and/or services*
Suppose a supplier, “Supplier Enterprises” is registered in Delhi and a buyer, “Buyer Enterprises” is registered in
the US. Supplier Enterprises and Buyer Enterprises make a supply transaction for taxable goods and /or services
and the place of supply is in the US. This is an export transaction and there could be two scenarios
a) Without payment of IGST under bond or LUT
b) Payment of tax and claiming of refund.

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The calculation for tax to be paid in both the scenarios is shown below
Scenario A:Without payment of IGST
Transaction value/ taxable value = Rs. 10,000
IGST tax (@ 0%) = 0
No tax to be paid
Scenario B: Payment of tax and claim refund
IGST tax (@ 18%) = Rs. 1,800
Total IGST paid = Rs. 1,800 which can be claimed as refund
IV. Taxable event: Import of goods and/or services*
Suppose a buyer, “Buyer Enterprises” of taxable goods and /or services is registered in Delhi, the seller is
registered in US and the place of supply is also Delhi. This is an import transaction and tax would have to be paid
by the buyer on reverse charge basis. The calculation for tax to be paid is shown below
IGST tax (@ 18%) = Rs. 1,800
* Please note that a Basic Customs Duty (BCD) would also be levied on the import of goods.
In nutshell, Location of Supplier and Place of Supply decide whether CGST+SGST/IGST/BCD+IGST will apply.

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2.5 EX FACTORY SALE SCENARIOS
The scenarios where the delivery and termination of the movements of the goods are at different locations are captured below:
Location
of
Supplier
Location of
person on
which
Invoice is
raised
Document to
support the supply
Terms of
Delivery of
Goods
Responsi
bility for
Transport
ation
Movement of
goods
terminates at
Place of
supply
GST Remarks
PO Invoic
e
Delhi Delhi PO Invoice Ex-factory
Delhi
Supplier Receiver
Location i.e.
Delhi
Delhi CGST/
SGST
Delhi Delhi PO Invoice Ex-factory
Delhi
Receiver Receiver
Location i.e.
Delhi
Delhi CGST/
SGST
Delhi Delhi Spot
purchase
Invoice Ex-factory
Delhi
Receiver Not Known Delhi CGST/
SGST
Movement by
Receiver is not in
pursuance of
Supplier
transaction
Delhi Haryana PO Invoice Ex-factory
Delhi
Supplier Receiver
Location i.e.
Haryana
Haryana IGST
Delhi Haryana PO Invoice Ex-factory
Delhi
Receiver Receiver
Location
i.e. Haryana
Haryana IGST
Delhi Not Known Spot
purchase
Without
GSTIN
Invoice Ex-factory
Delhi
Receiver Not known Delhi CGST/
SGST

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2.6 Bill to Ship to Model
GST provides for tripartite transaction whereby goods/services can be supplied by the supplier to the receiver on the direction
of third person. These transactions are commonly known as bill to ship to transactions.
E.g. A enters into contract with B to sell goods to B and B enters into contract with C to sell goods to C.
B requires A to deliver the goods directly to C.
Here there are two sale transactions taking place- one between A and B and the other between B and C. GST will be applicable
on each sale (A to B & B to C) and the place of supply for the sale transaction between A and B would be the place of business
of B.
GST implications on bill to ship to supplies
Scenarios Location
of Seller
(Party A)
Location of GSTIN
where bill is raised
(Party B)
Location of GSTIN
where goods are
shipped
(Party C)
Transaction GST applicable
Case 1 Orissa Orissa Orissa B/w A & B CGST/SGST
B/w B&C CGST/SGST
Case 2 Orissa Orissa Maharashtra B/w A & B CGST/SGST
B/w B & C IGST
Case 3 Orissa Maharashtra Orissa B/w A & B IGST
B/w B & C IGST
Case 4 Orissa Maharashtra Maharashtra B/w A & B IGST
B/w B&C CGST/SGST
Case 5 Orissa Maharashtra Jharkhand B/w A & B IGST
B/w B&C IGST
Below Table depicting the various scenarios where Location of Supplier & Recipient and Place of Destination& Supply are
shown.
In Every transaction mentioned below there are three parties and two supply transactions. (Between Supplier to Recipient
and Recipient to third Person i.e., Destination of Goods).

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But for the sake of clarity only first transaction is covered (Supplier to Recipient).
Location of
Supplier
Location of
Recipient on
which invoice is
raised
Place of
Destination
of goods
Place of
Supply
Nature of Supply Tax
CGST/
SGST
IGST
Maharashtra Maharashtra Maharashtra Maharashtra Intra-state Yes NA
Maharashtra Maharashtra Delhi Maharashtra Intra-state Yes NA
Maharashtra Maharashtra Australia Maharashtra Intra-state Yes NA
Maharashtra Delhi Maharashtra Delhi Inter State Yes NA
Maharashtra Delhi Delhi Delhi Inter-state NA Yes
Maharashtra Delhi Kerala Delhi Inter-state NA Yes
Maharashtra Delhi Australia Delhi Inter-state NA Yes
Maharashtra Australia Australia Australia Inter-state-Export-
zero rated
NA NA
Maharashtra Australia Australia Australia Inter-state-export on
payment of GST and
claim refund
NA Yes
Maharashtra Maharashtra MH SEZ Maharashtra Intra-state Yes NA

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EXEMPTIONS UNDER GST

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3.1 GST Exemptions
Below table depicts the various GST exemptions available in respect of services between Government/ Government Entities/
Governmental Authorities. [Notification No. 12/2017-Central Tax (Rate)]
Table 1- GST Exemptions specific to supplies between Government/Government Entities/ Governmental Authorities
Sl.
No.
Provider of
Services
Recipient/Taxability of Services
Serial No.
as per
Notification
Remarks
Government
Government
Entity
Governmental
Authority
(T / E) (T / E) (T / E)
1 Government
Exempt Taxable Taxable
8
(a) All services provided by
Government to Government are
exempt except-
(i) Services by deptt. of post
(ii) service in relation to an
aircraft or a vessel
(iii)service of transport of goods
or passengers
(b) There is no specific exemption
for supply of services by
Government to-
(i) Government Entity
(ii) Governmental Authority
2
Government
Entity
Exempt
[Refer (a)]
Taxable
[Refer (b)]
Taxable
[Refer (b)]
9C,43
(a) Consideration received by
Government Entity from
Government in the form of Grants
(b) There is no specific Exemption
for supply of services by
Government Entity to-
(i) Government Entity
(ii) Governmental Authority

Page | 27
Table 2- GST Exemptions pertaining to specific supplies made by Government
Below table depicts the various GST exemptions available in respect of supply of services. [Notification No. 12/2017-Central Tax
(Rate) dated 28.06.2017 as amended from time to time, issued by CBIC]
3
Governmental
Authority
Taxable Taxable Taxable -
There is no specific exemption for
supply of services by Government
Entity to Government, Government
Entity and Governmental Authority
Sl. No. Nature of Supply of Services
S. No. as
per
Notification
Remarks
1 Any Service provided to any person :
- other than business entity, or
- to a business entity with an aggregate turnover
up to the limit which makes him eligible for
exemption from registration under GST, or
- where consideration for such services does not
exceed Rs 5,000
6,7,9
Such exemption shall not apply to the
following:
(a) services by the Department of Posts by
way of speed post, express parcel post,
life insurance, and agency services
(b) services in relation to an aircraft or a
vessel
(c) transport of goods or passengers
(d) services by way of renting of immovable
property (exception only for business
entity & where consideration exceeds Rs
5,000)
2 Transportation of Passengers by-
(a)railways in a class other than—
(i) first class
(ii) an air-conditioned coach
(b) metro, monorail or tramway
(c) inland waterways
(d)public transport, other than predominantly
for tourism purpose, in a vessel between
places located in India
17 -

Page | 28
(e)metered cabs or auto rickshaws (including e-
rickshaws)
3 Services by way of transportation by rail or a
vessel of the following–
(a) relief materials meant for victims of
natural or man-made disasters, calamities,
accidents or mishap
(b) defence or military equipments
(c)newspaper or magazines registered with
the Registrar of Newspapers
(d) railway equipments or materials
(e) agricultural produce
(f) milk, salt and food grain including flours,
pulses and rice; and
(g) organic manure
20
-
4 Upfront amount payable for providing long term
lease of 30 years or more of industrial plots or
plots for development of infrastructure for
financial business provided by specified entities
(State Government Industrial Development
Corporations or Undertakings or by any other
entity having 50% or more ownership of Central
Government, State Government, Union territory)
41
Such exemption shall apply only on one time
charge payable (in full upfront or in
instalments)
5 Service of allowing a business entity to operate
as a telecom service provider or use radio
frequency spectrum during the period prior to the
1st April, 2016, on payment of licence fee or
spectrum user charges
42 -

Page | 29
6 Services of registration required under any law
and services of testing, calibration, safety check
or certification relating to protection or safety of
workers, consumers or public at large, including
fire license, required under any law
47 -
7 Services of issuance of passport, visa, driving
licence, birth certificate or death certificate
61 -
8 Services of tolerating non-performance of a
contract for which consideration is received in the
form of fines or liquidated damages
62 -
9 Services of right to use natural resources to an
individual farmer for cultivation of plants and
rearing of all life forms of animals (except the
rearing of horses)
63 -
10 Services of right to use any natural resource
where such right to use was assigned before the
1st April, 2016
64 -
11 Services of deputing officers after office hours or
on holidays in relation to import export cargo on
payment of Merchant Overtime charges
65 -

Page | 30
Table 3- GST Exemptions pertaining to specific supplies made by Governmental Authority
Below table depicts the various GST exemptions available in respect of supply of services made by Governmental Authority.
[Notification No. 12/2017-Central Tax (Rate)]
Relevant definitions:
• Government Entity is defined under GST law to mean an authority or a board or any other body including a society,
trust, corporation-
i set up by an Act of Parliament or State Legislature; or
ii established by any Government, with 90% or more participation by way of equity or control, to carry out a function
entrusted by the Central Government, State Government, Union Territory or a local authority.
• Governmental Authority is defined under GST law to mean an authority or a board or any other body, -
i set up by an Act of Parliament or a State Legislature; or
ii established by any Government, with 90% or more participation by way of equity or control, to carry out any function
entrusted to a Municipality under Article 243 W of the Constitution or to a Panchayat under Article 243 G of the
Constitution.
Sl.
No.
Nature of Supply of Services
Serial No.
as per
Notification
Remarks
1 Services related to any function entrusted under Article
243W (Municipality) of the Constitution.
4
2 Services related to any function entrusted under Article
243G (Panchayat) of the Constitution 5

Page | 31
GST RATES ON SUPPLIES BY IR

Page | 32
I. Supplies liable to tax under Forward Charge Mechanism, i.e. wherein IR is liable to collect GST from recipient
S. No. Supply
GST
Rate
Notification No [Central Tax
(Rate)] & S. No.
Remarks/Conditions
1 Transportation of goods 5 11/2017 - S.No. 9
Transportation by rail of the following goods is exempt from GST-
(a) relief materials meant for victims of natural or man-made
disasters, calamities, accidents or mishap;
(b) defence or military equipments;
(c) newspaper or magazines registered with the Registrar of
Newspapers;
(d) railway equipments or materials;
(e) agricultural produce;
(f) milk, salt and food grain including flours, pulses and rice; and
(g) organic manure.
2 Transportation of passengers 5 11/2017 - S.No. 8 Transportation is in first class or air conditioned coach
3
Renting of immovable property to unregistered business
entity
18 12/2017 - S.No. 6 -
4 Retiring rooms to unregistered business entity
NIL 12/2017 - S.No. 14 Value of Supply per day up to INR 1000
12 11/2017 - S.No. 7(i) Value of Supply per day above INR 1,000 up to INR 7,500
18 11/2017 - S.No. 7(vi) Value of Supply per day above INR 7,500
5 Sale of Chapter 86 goods (except 8609) 12 1/2017 - S.No. 205A-205H -
6
Sale of scrap of Ferrous/ Copper/Aluminium to unregistered
person
18 1/2017 - S.No. 199/263 -
7 Sale of scrap of Wood/Plastics to unregistered person 5 1/2017 - S.No. 187A/198 -
II. Supplies liable to tax under Reverse Charge Mechanism, i.e. wherein recipient shall pay GST directly
S. No. Supply
GST
Rate
Notification No [Central Tax
(Rate)] & S. No.
Remarks/Conditions
1 Renting of immovable property to registered business entity 18
12/2017 - S.No. 6 read with
13/2017 - S.No.5A
-
2 Retiring rooms to registered business entity
NIL 12/2017 - S.No. 14 Value of Supply per day up to INR 1000
12
11/2017 - S.No. 7(i) read with
13/2017- S.No. 5A
Value of Supply per day above INR 1,000 up
to INR 7,500
18
11/2017 - S.No. 7(vi) read with
13/2017- S.No. 5A
Value of Supply per day above INR 7,500
3 Sale of scrap of Wood/Plastics to registered person 5
1/2017 - S.No. 187A/198 read with
4/2017- S.No.6
-
4 Sale of scrap of Ferrous/ Copper/Aluminium to a registered person 18
1/2017 - S.No. 199/263 & read with
4/2017- S.No.6
Note: Any other service to business entity is liable to tax under RCM. Rate of tax will depend upon the nature of services supplied.

Page | 34
4.1 DEFINITIONS UNDER CGST ACT/SGST ACT RELEVANT TO INPUT TAX CREDIT
SECTION 2 OF CGST/SGST ACT, 2017:
2(19) Capital Goods:
 Capital Goods means goods, the value of which is capitalised in the books of accounts of the person claiming the
input tax credit and which are used or intended to be used in the course or furtherance of business.
2(59) Input:
 Input means any goods other than capital goods used or intended to be used by a supplier in the course or
furtherance of business.
2(60) Input Service:
 Input Service means any service used or intended to be used by a supplier in the course or furtherance of business.
2(62) Input Tax:
 Input tax in relation to a registered person, means the IGST, including that on import of goods, CGST and SGST
charged on any supply of goods or services to him and includes the tax payable under sub-section (3) and (4) of
section 9 of CGST Act but does not include the tax paid under section 10.
 However, tax leviable under section 9(4) of CGST Act has been exempted vide Notification no. 38/2017-Central Tax
(Rate), dated 13th
October, 2017 till 31st
day of March, 2018.
2(63) Input Tax Credit:
 Input Tax Credit means credit of ‘input tax’ as defined in sub-section (62).

Page | 35
4.2 INPUT TAX CREDIT
 Input Tax Credit Mechanism under GST is business based concept i.e. input tax in respect of every inward supply
received in the course or furtherance of business is available as credit to supplier except some supplies mentioned in
negative list which is provided under Section 17(5) of CGST Act. Therefore, GST paid on all supplies used in the course
or furtherance of business are eligible for credit which are used during the course or furtherance of business.
 In all the cases involved, the courts discussed the basic principle of ‘commercial expediency’. The courts laid down
the law that if an expenditure is commercially required to be incurred with a view to benefit the trade and to facilitate
the carrying on the business, such expenditure will be allowed as deduction under section 37 of the Income Tax Act,
1961.
CONDITIONS FOR AVAILMENT OF ITC AS PER SECTION 16 OF THE CGST ACT, 2017
Particulars GST Regime
Payment of tax
by vendor
Under GST, ITC is available only when payment of GST has been made by vendor to Government. To
ensure this it is mandatory that the vendor reports the said invoice in his GSTR -1. The invoice will
accordingly be reflected in GSTR 2A of the recipient, basis which the recipient would be in a position
to take ITC of the same.
Documents Tax invoice, debit note, or such other taxpaying document provided under CGST Rules, issued by a
supplier/recipient in case of self-invoice, registered under CGST Act or the IGST Act;
Payment to
service vendors
For ITC on inward supplies, whether for goods or services, payment to vendor should be made within
180 days of invoice.
If Company fails to pay to the supplier, the value of supply of invoice along with GST within 180 days
from the date of issue of invoice, Input Tax Credit availed by Company shall be paid along with
interest.
Receipt of
Goods/
Services
The taxpayer should be in possession of the goods for which the respective ITC is being claimed or
have received the services as the case may be.

Page | 36
Maximum time
limit of availing
credit
In GST Regime, Taxpayer shall not be entitled to take ITC of any invoice or debit note after furnishing
monthly return for September of next financial year or filing annual return, whichever is earlier.
The above restriction is applicable on inputs / input services / capital goods.
Advance
Payment on
Goods/Services
In case of advance payment of services, position of credit is same.
However, there is no tax on advances received against supply of goods, exemption provided vide
Notification NO 66/2017-Central Tax, dated 15-11-2017, Therefore, recipient is not required to pay
tax amount to supplier.
UTILIZATION OF ITC
 ITC of IGST is allowed to be utilized for payment of IGST initially.
 ITC of IGST, if left unutilized after adjusting against the liability of IGST, can be used to discharge output tax liability of
CGST and SGST in any proportion and in any order.
 ITC of CGST is allowed to be utilized for payment of CGST and IGST in the respective order, after the ITC of IGST has
exhausted/utilized fully.
 ITC of SGST is allowed to be utilized for payment of SGST and IGST in the respective order, after ITC of IGST and CGST
has exhausted/utilized fully.
 ITC of CGST can never be utilized for payment of SGST and vice versa.
LIST OF CREDITS NOT ELIGIBLE IN GST REGIME
Input tax credit shall not be available in respect of the following:
1. Petroleum Products
Light diesel oil, high speed diesel oil/Petrol/Natural Gas has been kept out of ambit of GST and hence excise
duty/VAT/CST paid to the vendor will not be creditable under GST Law
2. Motor Vehicles
Motor vehicle for transportation of persons having approved seating capacity of not more than thirteen persons (including
the driver), except when they are used for making the following taxable supplies, namely:—
a) Providing taxable supply for transportation of passengers, or
b) Providing taxable supply of imparting training on driving, flying, navigating such vehicles or conveyances or
c) Providing taxable supply of such vehicles or conveyances

Page | 37
3. Miscellaneous Services
Services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicles as mentioned
in S. No. 2 above, except when they are used for purposes other than specified under S. No. 2 above.
4. Specific goods and services
 Food and beverages, outdoor catering, beauty treatment, health services, leasing, renting or hiring of motor vehicles
referred to in S. No. 2 above when used for the purposes specified therein, life insurance and health insurance except
where such inward supply of goods or services or both is used by a registered person for making an outward taxable
supply of the same category of goods or services or both
 Membership of a club, health and fitness centre; and
 Travel benefits extended to employees on vacation such as leave or home travel concession except where it is
obligatory for an employer to provide to its employees under any law for the time being in force.
5. Inputs and Inputs Services for Construction of Immovable Property
 Works contract services received by a person for construction of immovable property (other than plant and
machinery). However, input tax credit shall be available where such services are input services for further supply of
works contract services.
 Goods or services or both received by a taxable person for construction of immovable property (other than plant and
machinery) on his own account including when such goods or services or both are used in the course or furtherance
of business.
In short, no input tax credit will be available to registered person in respect of construction of building / civil structure.
However, input tax credit would be available in respect of goods/services used in setting up of plant & machinery. Goods
and services used for laying of foundation or making of structures for support of capital goods shall be available.
6. Disposal of goods in specific situations
ITC is barred in the following cases:
 Loss of goods
 Steal of goods
 Destroy of goods
 Write off of goods
 Disposal of goods by way of Gift or free samples

Page | 38
7. Supply from Composition Vendors
Goods and/or services on which tax has been paid under Composition Scheme by the vendor is not creditable.
8. Inputs Used for Personal Consumption
Goods and/or services used for personal consumption
9. Taxability of Final Product
Availment of ITC, besides the conditions already mentioned above, is also based on taxability of the outward supplies
for which input is going to be put to use and also on the restriction of availment of ITC enforced by any notification
issued under the provisions of CGST Act, SGST Act, UTGST Act or IGST Act.
The eligibility of GST credit is case specific and need to be analyzed on independent basis. To cater to such complexity
of GST credit availment the credit which is available to Indian Railways, has been classified under 5 categories namely:
Full Credit, Partial credit, No Credit (Non-business), No credit (Exempt Supply), No credit (Credit restriction). For every
category of ITC classification, a flag has also been specified in the systems to identify and calculate the final ITC eligible
amount at the end of the month. The flagging as made part of the system utilities provided by CRIS, is tabulated below:
S. No. ITC Flag
1) T1- No Credit (Non Business)
2) T2- No Credit (Exempt)
3) T3- No Credit (Credit Restriction)
4) T4- Full Credit
5) C2- Partial Credit
For sake of clarification, the ITC eligibility of some major operations of Indian Railways is mentioned as follows.
Sl. No. Nature of goods / services ITC Flagging
Utilization
ITC (Y/N)
Remarks
1.
Goods procured for capital
works such as manufacturing
of coaches, wagons,
locomotives for sale to IRFC
T4 – full Credit Y
To be utilized only for discharging GST
liability on outward supply of finished
goods to IRFC on payment of 5% GST and
not to be utilised for discharging GST
liability on Goods and Passenger

Page | 39
transportation services by respective
GSTIN.
2.
Services provided by various
contractors for capital works
such as manufacturing of
coaches, wagons, locomotives
for sale to IRFC
T4 – full Credit Y No restriction.
3.
Goods procured for use in
repairing wagons, coaches,
locomotives etc., after IRFC
leases them to IR.
T3-No Credit N
ITC pertaining to these purchases not to
be utilised for discharging GST liability on
Goods and Passenger transportation
services by respective GSTIN.
4.
Services received at workshop
in relation to procurement of
goods for repair of coaches,
wagons, locomotives, etc.
C2 – Partial Credit Y No restriction
5.
Services provided by various
contractors in relation to
repair of wagons, coaches,
locomotives, etc.
C2 – Partial Credit Y No restriction
6.
Procurement of goods and
services for creation of new
assets which are in the nature
of Immovable Property (other
than plant and machinery) like
Bridges, Tunnels, Roads,
Buildings etc.
T3- No Credit N
Not to be availed. Respective accounting
codes can be mapped as T3 – No credit in
order to avoid wrong availment of credit
on these line items

Page | 40
7.
Procurement of goods relating
to Plant and Machinery like
Railway track, Signalling and
Telecommunication
equipments, lathe machines,
cranes.
T3- No Credit N
Not be utilized for discharging GST
GSTIN
8.
Procurement of works contract
services, repair and
maintenance services, etc.
relating to laying of railway
track (Plant and Machinery)
C2- Partial Credit Y
Can be utilized for discharging GST
GSTIN
9.
Goods Transport Agency
services received for both
inward and outward
transportation of goods used
in workshop.
C2- Partial Credit Y
In this case, both the consignor and
consignee, being Indian railways, GST on
GTA services to be discharged by IR. If
the GTA service provider discharges GST
under forward charge (12%) then IR is
not liable to pay GST to the department
under RCM but in any of the case, tax paid
can be availed as credit.

Page | 41
10.
Taxi hire by IR at different
locations by the staff / officers
for any use.
T3 – No Credit N
ITC on Rent-a-cab service is covered
under the negative list as per Section
17(5) of CGST Act, 2017 and hence no
credit is available on this service.
Respective accounting codes can be
mapped as T3 – No credit in order to avoid
wrong availment of credit on these line
items.
4.3 HOW TO ENSURE SEAMLESS FLOW OF CREDIT IN GST REGIME
STEP 1: Proper vendor management system
• Proper Vendor Management for ensuring seamless flow of Credit is required.
• Under GST, ITC is available only if Supplier pays the GST to government. Further, details of sale invoice uploaded
by Supplier in his outward return and details of purchase invoice uploaded by registered person in its inward return
should match for availing credit.
• Coordination is required in recording of transactions by Vendors and Company.
• Vendor should be educated through awareness program conducted by Company for proper compliance of GST by
vendor. Company has to ensure that data uploaded by vendor and recorded by Company shall be in same format
with same fields of data like HSN etc. so that credit can be availed with less hurdles in reconciliation.
• Necessary Safeguard clauses to be inserted in contract for recovery of tax amount
 One Time Vendors-Company will hold the amount equivalent to outward tax payable by the supplier and
payment shall be released only after the Supplier has made payment of tax.
 Regular vendors-Company will recover the amount of tax, if any, is added to the output tax liability of Company
due to non-payment by the supplier.
 Bank Guarantees/Security deposits to be taken to safeguard GST Credit amount.
• Compliance rating of vendor to be considered carefully while selection of vendor
STEP 2: Company shall decide on GSTIN at the time of issuance of PO only.
• The PO raised on vendors shall specifically mention the GSTIN of Company on which invoice is to be raised by
Vendor. Company to decide which GSTIN is to be given to vendor while placing purchase order to ensure seamless

Page | 42
flow of credit. If Company in State A is purchasing goods and services from vendors located in another state
charging CGST/SGST of that state, the credit of same will not be available to Company in State A. Certain situations
where credit can get blocked due to this is as under:
• To illustrate, Plant A is receiving accommodation services for employees in respect of any event/ meeting in hotel
at Maharashtra. The hotel will raise invoice charging Maharashtra CGST & SGST. If GSTIN of other state is given,
Company would not be in a position to avail the SGST credit. Alternatively, if GSTIN of Maharashtra is given, the
credit of the same will be eligible and the same can be routed through ISD route.
• To illustrate, repair of immovable property related services received by depot in Jharkhand from local vendors. If
invoice is raised on Head Office, local vendor will charge CGST/SGST and head office will not be able to take credit
of SGST of Jharkhand. Vendors shall raise invoice on depot so that SGST credit of Jharkhand can be taken by depot.
In a nutshell, GST allows seamless flow of all types of credit (except covered under negative list) subject to proper
documentation and planning.
4.4 Apportionment of ITC on inputs and input services under Flag C2:
• Where credit is attributable to goods and/or services which are used partly for taxable supplies and partly for non-
taxable supplies, credit is restricted to so much of the input tax as is attributable to taxable supplies.
• Flag C2- Partial Credit- It comprises of credits of such goods and/or services which are used partly for taxable supplies
and partly for non-taxable supplies. Ineligible portion of ITC needs to be reversed using the following formula-
Exempt Supplies includes-
 Supplies which are exempted from tax e.g. Intra IR transfer of goods, Transport of passengers in non-air-
conditioned coach
 Supplies not covered under GST Act E.g. Diesel, etc.
 Supplies which are liable to RCM. e.g. Renting of Immovable Property, etc.
 Supplies which attracts nil rate of tax.
• Capturing of exempt supplies is necessary for computation of correct amount of eligible credit.
• Non-compliance will attract interest.
ITC to be reversed = Amount of credit flagged under C2 x Exempt Supplies
Taxable Supplies + Exempt Supplies

Page | 43
4.5 Apportionment of ITC on Capital Goods under Flag C2
• Where credit is attributable to capital goods which are used partly for taxable supplies and partly for non-taxable
supplies, credit is restricted to so much of the input tax as is attributable to taxable supplies.
• Amount to be reversed along with applicable interest to be added to output tax liability during every tax period
ITC to be reversed = Amount of credit flagged under C2 x Exempt turnover of relevant month
60(5 years deemed as useful life)Total turnover of relevant month

Page | 45
5.1 Different types of GST returns have been discussed below. Please note that GST returns are required to be filed
for each GSTIN (GST registration number) separately.
• GSTR-1 : Details of Outward supplies
Every registered person is required to furnish the details of Outward supplies of goods and services made during the
tax period in Form GSTR-1.
Due date for filing GSTR-1: Initially, GSTR-1 was required to be furnished on or before the 11th
of the succeeding tax
period on the monthly basis, unless it is amended by issuance of a notification in official gazette, for the period of
time as specified therein, made in this regard.
• GSTR -2 : Details of Inward supplies
The return under Form GSTR 2 was discarded by the Central Government. Currently this return is not functional.
• GSTR-3B : Summary Return
Every registered person is required to file a summary return in Form GSTR-3B.
Due date for filing GSTR-3B: Initially, GSTR-3B was required to be furnished on or before the 20th
of the succeeding
tax period on the monthly basis, unless it is amended by issuance of a notification in official gazette, for the period
of time as specified therein, made in this regard.
Information which is need to be disclosed in form GSTR-3B is as follows:-
 Outward supplies – Summary details of the taxable outward supplies including zero rated & exempt supplies
and output tax payable thereon.
 Supplies subject to Reverse Charge – Summary details of inward supplies on which tax is payable on reverse
charge basis and tax payable thereon.
 Inter-state sale to Un-registered customers: State-wise summary details of taxable value and IGST thereon
pertaining to interstate sales made to un-registered customers.
 Inward Supplies: Summary details of eligible ITC availed on import of goods & services, inward supplies liable
to reverse charge, Inward supplies from ISD and all other ITC including ineligible ITC and ITC reversal details, if
any.
 Values of exempt, nil-rated and non-GST inward supplies

Page | 46
• GSTR-9 : Annual Return
Every registered person, (other than a Input Service Distributor (ISD), or as a person required to deduct TDS or
collect TCS, a casual taxable person and a non-resident taxable person) is required to file an Annual return in Form
GSTR-9, for every financial year on or before 31st
December of the following financial year.
Due date for furnishing GSTR-9 for the period July, 2017 to March, 2018 has been extended till 30 November 2019.
• Form GST ITC-04:
Details of goods/capital goods sent to job worker and received back on quarterly basis, are required to be filed in
Form GST ITC-04, on or before 25th
of the month succeeding the said quarter.
However, waiver for filing ITC-04 has been given for the period July, 2017 to March, 2019. Further, due date for
Apr’19 to June,19 has been extended till 31 August 2019.
• GSTR- 7 Person liable to deduct TDS:
Every person who has taken registration as a person liable to deduct TDS under GST law, shall file return in GSTR 7
on or before the 10th
of the month succeeding tax period on monthly basis, unless it is amended by issuance of a
notification in official gazette, for the period of time as specified therein, made in this regard.
5.2 Late Fee for delay in filing of returns
Filing of returns enumerated above after the prescribed due date, or the date that has been notified in this regard will
attract late filing fee as prescribed in the GST act.
5.3 Revision of details furnished in GST returns
GST law does not provide for filing of revised returns. However, any revision/amendment of information already
furnished in the returns pertaining to earlier tax period(s) can be done by furnishing the correct details in the returns to
be filed for the subsequent tax periods
Imperative it is to note that, no revision/amendment would be allowed after the due date for furnishing of return for the
month of September or the actual date of furnishing of relevant annual return, whichever is earlier.
5.4 Filing of Nil GST returns
Every Registered person is mandatorily required to mandatorily furnish return for every tax period, whether or not any
supplies of goods or services or both have been made during such tax period.

Page | 48
6.1 Tax invoice
A supplier of goods or services is required to raise a tax invoice for such supply in below mentioned manner.
 Supply of goods –
a) at the time of removal of goods for supply to the recipient, where the supply involves movement of goods, or
b) at the time of delivery of goods or making available thereof to the recipient, in any other case.
 Supply of services – before or after the provision of service but within a prescribed period a prescribed under Section.
Particulars to be captured in a tax invoice are as follows:
a) Name, Address and GSTIN of the supplier
b) Consecutive serial number not exceeding sixteen characters, in one or multiple series, containing only alphabets
and/or numerals or special characters hyphen or dash and slash symbolized as ‘-’ or ‘/’ respectively, and any
combination thereof, unique for a financial year.
c) Date of issuance of invoice
d) Recipient Details
 B2B Supplies: Name, Address and GSTIN/ Unique ID Number.
 B2C Supplies where value of taxable supply is Rs 50,000 or more: Name and address of the recipient and
the address of delivery, along with the name of State and its code
 B2C Supplies where value is less than Rs 50,000: Name and Address of the recipient
e) HSN code for goods and Services
f) Description of goods or services
g) Quantity in case of goods and unit or Unique Quantity Code thereof
h) Taxable value of supply of goods or services or both taking into account discount or abatement, if any
i) Rate of tax (CGST, SGST or IGST)
j) Amount of tax charged in respect of taxable goods or services (CGST, SGST or IGST);
k) Total value of supply of goods or services or both
l) Place of supply i.e. Name of State and State Code.
m) Address of delivery, if the same is different from the Place of Supply
n) Specific Indication if the tax is payable on reverse charge; and
o) Signature or digital signature of the supplier or his authorized representative.
6.2 Self-invoice
A registered person is required to issue a self-invoice in respect of supplies received from unregistered persons in terms
of Section 31(3)(f) of CGST Act. Such registered person in respect of such supplies also has to issue a payment voucher
at the time of making payment to the supplier in terms of Section 31(3)(g) of the CGST Act.

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However vide Notification Number 8/2017-Central Tax (Rate) (as amended by Notification Number 38/2017-Central Tax
(Rate)), the supplies of goods or services or both received by a registered person from an unregistered person have
been exempted from whole of the tax leviable under Section 9(4) of CGST Act till 31.03.2018.
Therefore, till 31.03.2018, no tax is payable under Section 9(4) of CGST Act on supplies received from unregistered
persons. Accordingly, requirement to raise a self-invoice in respect of the same will not arise.
But requirement to issue self-invoice continues in case where tax is paid under Section 9(3) of CGST Act.
6.3 Payment voucher
A person who is required to pay tax under reverse charge shall issue a payment voucher at the time of making payment
to supplier who is supplying goods or services under reverse charge.
Particulars to be captured in payment voucher are given below:
a) name, address and GSTIN of the supplier if registered;
b) a consecutive serial number not exceeding sixteen characters, in one or multiple series, containing alphabets
ornumerals or special characters -hyphen or dash and slash symbolised as “-” and “/” respectively, and any
combination thereof, unique for a financial year
c) date of its issue;
d) name, address and GSTIN of the recipient;
e) description of goods or services;
f) amount paid;
g) rate of tax (central tax, State tax, integrated tax, Union territory tax or cess);
h) amount of tax payable in respect of taxable goods or services (central tax, State tax, integrated tax,Union territory
tax or cess);
i) Place of supply along with the name of State and its code, in case of a supply in the course of inter- State trade
or commerce; and
j) Signature or digital signature of the recipient or his authorized representative.
6.4 Receipt voucher
A registered person at the time of receipt of advances for the purpose of supply of services , is required to issue a receipt
voucher.In view of the specific exemption on payment of tax on advance against supply of goods, no receipt voucher is
required to be issued.

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Particulars to be mentioned in a receipt voucher
a) name, address and GSTIN of the supplier;
b) a consecutive serial number not exceeding sixteen characters, in one or multiple series, containing alphabets or
numerals or special characters -hyphen or dash and slash symbolised as “-” and “/” respectively, and any
d) name, address and GSTIN or UIN, if registered, of the recipient;
e) description of goods or services;
f) amount of advance taken;
g) rate of tax (central tax, State tax, integrated tax, Union territory tax or cess);
h) amount of tax charged in respect of taxable goods or services (central tax, State tax, integrated tax, Union territory
tax or cess);
i) place of supply along with the name of State and its code, in case of a supply in the course of inter- State trade
or commerce;
j) whether the tax is payable on reverse charge basis; and
k) signature or digital signature of the supplier or his authorized representative
6.5 Refund Voucher
A registered person who had received advance for the supply of goods or services (now services only) but subsequently
no supply is made and no tax invoice is issued then such registered person shall issue a refund voucher.
Particulars to be mentioned in refund voucher
b) a consecutive serial number not exceeding sixteen characters, in one or multiple series, containing alphabets or
numerals or special characters -hyphen or dash and slash symbolised as “-” and “/” respectively, and any
d) name, address and GSTIN or UIN, if registered, of the recipient;
e) number and date of receipt voucher issued in accordance with provisions of sub- rule 5;
f) description of goods or services in respect of which refund is made;
g) amount of refund made;
h) rate of tax (central tax, State tax, integrated tax, Union territory tax or cess);

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i) amount of tax paid in respect of such goods or services (central tax, State tax, integrated tax, Union territory tax or
cess);
j) whether the tax is payable on reverse charge basis; and
k) signature or digital signature of the supplier or his authorized representative.
6.6 Delivery challan (Cancelled tickets/ Cancelled Railway Receipt)
For the below mentioned purposes, consignor is required to issue a delivery challan in triplicate (original for consignee,
duplicate for transporter and triplicate for consignor).
a) supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is not known,
b) transportation of goods for job work
c) transportation of goods for reasons other than by way of supply
d) such other supplies as may be notified by the Board
Particulars to be captured in a delivery challan
(i) Date and number of the delivery challan,
(ii) name, address and GSTIN of the consigner, if registered,
(iii) name, address and GSTIN or UIN of the consignee, if registered,
(iv) HSN code and description of goods,
(v) quantity (provisional, where the exact quantity being supplied is not known),
(vi) taxable value,
(vii) tax rate and tax amount – central tax, State tax, integrated tax, Union territory tax or cess, where the
transportation is for supply to the consignee,
(viii) place of supply, in case of inter-State movement, and
(ix) signature.
6.7 Debit note/Credit note
a) Where a tax invoice has 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 where
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 a
credit note.
b) Where a tax invoice has 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

Page | 52
registered person, who has supplied such goods or services or both, shall issue to the recipient a debit note
containing such particulars as may be prescribed.
Particulars to be captured in a debit note or credit note
b) nature of the document;
c) a consecutive serial number not exceeding sixteen 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 and date of the corresponding tax invoice or, as the case may be, bill 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 authorized representative
6.8 E way bill
b) Electronic way bill (E way bill) should be generated by every person, whether registered or not under CGST Act, who
causes the movement of goods, if value of consignment of goods is above Rs.50,000/-. E way bill should be generated
before the movement of goods commences.
c) There are certain cases as enumerated in Annexure-A where generation of e-way is not required under GST law.
d) However, railways shall ensure that E way bill is generated before the movement of goods commences. Railways
shall not deliver the goods unless e-way bill is produced at the time of delivery.

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TAX DEDUCTED AT SOURCE

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As per GST law, certain notified persons are liable to deduct TDS @ 2% (1% CGST & 1% SGST or 2% IGST) on payments made
to supplier of taxable goods or services and/or both, where the total value of such supply, under a contract, exceeds INR
2,50,000/- (excluding taxes). (Refer RBA Circular No. 97/2018 dated 14.09.2018)
Persons liable to deduct TDS (Refer RBA Circular No. 98/2018 dated 17.09.2018)
 A department or establishment of the Central Government or State Government;
 Local authority;
 Governmental agencies;
 An authority or a board or any other body which has either been set up by an act of Parliament/State Legislature or has
been established by a government, with 51% or more equity/control owned by the government;
 Society established by the Central Government or the State Government or a Local Authority under the Societies
Registration Act, 1860;
 Public sector undertakings;
Accordingly, IR, being Central Government, has become liable to deduct TDS on payments made or credited to the supplier
of taxable goods or services or both.
Cases where TDS is not required
 Where supplies are made inter se persons liable to deduct TDS, as listed above.
 Where contract value does not exceed INR 2,50,000/-.
 Where any advance was prior to 01.10.2018 and the tax invoice in respect of such advance has been issued on or after
01.10.18, to the extent of advance paid before 01.10.2018.
 TDS is not required in case of inward supply of goods and/or services from unregistered vendors.
 Where tax is payable under reverse charge mechanism by the recipient, i.e. IR.
 Where the location of supplier & place of supply is in a state which is different from the location of the recipient. Please
refer the below table for different possible scenarios:
S. No Location of
Supplier
Place of
Supply
Location
of
Recipient
Nature of
supply
Liability to
deduct TDS
1 A A A Intra-state Yes
2 A A B Intra-state No
3 A B A Inter-state Yes
4 A B B Inter-state Yes
5 A B C Inter-state Yes

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Compliances (Refer RBA Circular No. 111/2018 and RBA 112/2018both dated 12.10.2018 )
 IR is liable to deposit the amount deducted (as TDS) within 10 days after the end of the month in which such deduction
is made. In case of delay in depositing TDS amount, interest @ 18% p.a. would be applicable.
 A monthly return in for GSTR-7 is required to be filed by 10th of the subsequent month. In case of delay in filing of return,
late fee of INR 200/- per day (INR 100/- each under CGST & SGST/UTGST) up to maximum of INR 5,000/-
 IR is liable to furnish TDS certificate in form GSTR-7A to the Deductee mentioning the contract value, rate of deduction,
amount deducted, and amount paid to the government. The said TDS certificate would be made available to the Deductee
on the GST Portal based on the return filed by IR.
 Such certificate is to be furnished within 5 days from the date of deposit of TDS. Failure to furnish the certificate after
deduction of TDS attracts late fee of Rs.100 per day from the day after the expiry of five days until the failure is rectified.
 The deductee would be able to claim credit, in his electronic cash ledger, the tax deducted and reflected in the Form
GSTR-7 filed by IR, subject to the acceptance by the deductee on the GST portal.

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Annexure- A : Cases where generation of E-way bill is not required
No E-way bill is required in following cases:
a) where the movement of goods is taking place between two different units of Indian railways.
b) where the goods being transported are as follows;
a. Liquified petroleum gas for supply to household and non-domestic exempted category (NDEC) customers.
b. Kerosene oil sold under PDS
c. Postal baggage transported by Department of Posts
d. Natural or cultural pearls and precious or semi-precious stones; precious metals and metals clad with precious
metal (Chapter 71)
e. Jewellery, goldsmiths’ and silversmiths’ wares and other articles (Chapter 71)
f. Currency
g. Used personal and household effects
h. Coral, unworked(0508) and worked coral (9601)
c) where the goods are being transported by a non-motorised conveyance;
d) where the goods are being transported from the customs port, airport, air cargo complex and land customs station to
an inland container depot or a container freight station for clearance by Customs;
e) in respect of movement of goods within such areas as are notified under clause (d) of sub-rule (14) of rule 138 of the
State or Union territory Goods and Services Tax Rules in that particular State or Union territory;
f) where the goods, other than de-oiled cake, being transported, are specified in the Schedule appended to notification
No. 2/2017- Central tax (Rate) dated the 28th June, 2017 published in the Gazette of India, Extraordinary, Part II,
Section 3, Sub-section (i), vide number G.S.R 674 (E) dated the 28th June, 2017 as amended from time to time;
g) where the goods being transported are alcoholic liquor for human consumption, petroleum crude, high speed diesel,
motor spirit (commonly known as petrol), natural gas or aviation turbine fuel;
h) where the supply of goods being transported is treated as no supply under Schedule III of the Act;
i) where the goods are being transported—
(i) under customs bond from an inland container depot or a container freight station to a customs port, airport,
air cargo complex and land customs station, or from one customs station or customs port to another customs
station or customs port, or
(ii) under customs supervision or under customs seal;
j) where the goods being transported are transit cargo from or to Nepal or Bhutan;
k) where the goods being transported are exempt from tax under notification No. 7/2017-Central Tax (Rate), dated 28th
June 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R

Page | 57
679(E)dated the 28th June, 2017 as amended from time to time and notification No. 26/2017-Central Tax (Rate),
dated the 21st September, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i),
vide number G.S.R 1181(E) dated the 21st September, 2017 as amended from time to time;
l) any movement of goods caused by defence formation under Ministry of defence as a consignor or consignee;
m) where the consignor of goods is the Central Government, Government of any State or a local authority for transport
of goods by rail;
n) where empty cargo containers are being transported; and (n) where the goods are being transported upto a distance
of twenty kilometres from the place of the business of the consignor to a weighbridge for weighment or from the
weighbridge back to the place of the business of the said consignor subject to the condition that the movement of
goods is accompanied by a
o) delivery challan issued in accordance with rule 55.
p) where empty cylinders for packing of liquefied petroleum gas are being moved for reasons other than supply.

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