CENVAT CREDIT CENVAT CREDIT ×

plastic 100 Plastic 100

excise duty 10 excise duty 10
110 110

CENVAT CREDIT AVAILED 10 CENVAT Credit - No benefit

cost 100 Cost 110

value addition 40 value addition 40
Marker 140 Marker 150
excise duty 14 excise duty 15
selling price 165
selling price 154
Value of marker - 140 14 rs.
excise duty liability 14
less: CENVAT Credit used -10 total excise duty paid - 10+15 = 25
Payment 4
25
10 ka credit kyun mila???????? 10 15

10% of 100 rs. plastic 10% of 150 rs.

100 plastic 10 excise duty 40 value addition

Manufacturer Dealer / traders Service provider 10 1 4 15

excise duty Central vat service tax multiple taxation cascading effect
vat state state Central govt
tax on tax
100 AC excise duty

AC trade - Vat

liability - Vat - state govt

excise duty 5,00,000 paid to Central govt

state govt
vat liability 10,00,000
audit CA service tax
Central govt

Classes

you must have invoice mention- excise duty

excise duty credit
manufacturer

Manufacturer Dealers Service provider

GST GST GST

dealer
1000 AC GST

ac sale - GST

Marker 100 service provider

vat 1000 service tax Central
state

GST
GST

CENVAT Credit GST 18%

Plastic 100 inter state supply

Excise duty 10 Mr. X (MH) sold to Mr. Y (GJ) IGST CGST + SGST
110 IGST 18 9+9

CENVAT Credit availed 10 sold to

intra state supply
cost 100
Value addition 40 Mr. Z (MH)
Marker 140
Excise duty 14 CGST
Selling price 154 MHGST

Excise duty pay 14

Less: CENVAT Credit used -10
balance 4 payment

10 ka credit kyun mila?????

Cost 100
value addition 40
Pen 140

exempt

CENVAT CREDIT CENVAT CREDIT - NO BENEFIT

Plastic 100 Plastic 100

excise duty 10 excise duty 10
110 110

CENVAT Credit availed 10 CENVAT CREDIT No benefit

Cost 100 Cost 110

Value addition 40 Value addition 40
Marker 140 Marker 150
excise duty 14 excise duty 15
Selling price 154 Selling price 165

Total excise duty 10+15=25

excise duty liability 14
less: CENVAT Credit used -10 value of marker= 140
Balance payment 4 excise duty 14

10 ka credit kyun mila?????

25
10 15

10% on 100 (Plastic) 10% on 150 ( Marker)

10 1 4

100 plastic 10 tax 40 value addition

multiple taxationcascading effectperfect

tax on tax
14
goods manufacturers dealer / traders Service provider

GST GST GST

teaching service - GST

10,000
2000 ac purchase
GST
ac , projector, marker ,etc
GST 5000
2000 ac sale -500
GST

GST liability 10,000

less: ITC -5000
Dual economy balance 5000
Dual gst model CGST Act 1 parliament
SGST ACT/ UTGST ACT 29/7
IGST ACT 1

SGST state govt ?

do not have any power to change the act
MHGST ACT,
marble 28%
18%

Central Govt has the power

only after the recommendation of GST COUNCIL

GST COUNCIL committee

chairperson Union finance minister Nirmala Sitaraman

representative of each state

2020 2021 2022

6% 6%+(14% of 6)
6+ 0.84
6.84

Compensation Cess Act, 2017

Cess Tax

Education cess

CGST SGST/UTGST

DESTINATION BASED CONSUMPTION TAX

Transactions (Rate of GST is 18%) 2) Mr. Gujral sold to Mr. Sujit 3) Mr. Sujit supplied goods to Miss Swati (GJ) 4) Miss Swati supplied goods to Mr. Gambler 5) Mr. Gambler supplied goods to Mr. Kaushik ( End consumer)
( MH state) (MH) (GJ) (GJ)
1) Mr. Harsh sold goods to Mr. Gujral

( MH state) Value of supply 1,40,000 Value of supply 1,60,000

Value of supply 1,20,000 IGST@18% 25,200 CGST@9% 14,400 Value of supply 1,80,000
Value of supply 1,00,000 CGST@9% 10,800 1,65,200 SGST@9% 14,400 CGST@9% 16,200
CGST@9% 9,000 SGST@9% 10,800 1,88,800 SGST@9% 16,200
SGST@9% 9,000 1,41,600 2,12,400
1,18,000 Mr. Sujit Miss Swati
Mr. Gujral
CGST LIABILITY 10,800 SGST LIABILITY 10,800 IGST LIABILITY 25,200 CGST LIABILITY 14,400 SGST LIABILITY 14,400 Mr. Gambler
Mr. Gujral Less: CGST CREDIT USED -9000 less: SGST CREDIT USED -9,000 less: CGST CREDIT USED -10,800 less: IGST CREDIT USED 14,400 Less: IGST CREDIT USED10,800 CGST LIABILITY 16,200 SGST LIABILITY 16,200
payment 1,800 payment 1,800 less: SGST CREDIT USED -10,800 balance NIL payment 3,600 less: CGST CREDIT USED
-14,400 less: SGST CREDIT USED-14,400
CGST CREDIT AVAILED 9000 payment 3,600 payment 1,800 payment 1,800
SGST CREDIT AVAILED 9000 Mr. Sujit
Mr. Gambler
)Mr. Kaushik
CGST CREDIT AVAILED 10,800 Miss. Swati CGST CREDIT AVAILED 14,400 no credit - bcz he is end consumer
SGST CREDIT AVAILED 10,800 SGST CREDIT AVAILED 14,400
IGST CREDIT AVAILED 25,200

50% revenue CENTRAL GOVERNMENT

50% revenue Consumption state

CGST SGST IGST

charging tax sec 9 sec 9 sec 5

GST 18%
sec 6 Exemption from IGST
sec 11 exemption from CGST

IGST CGST SGST

101st CONSTITUTIONAL AMENDMENT ACT, 2016

CGST ACT, 2017 1 40 ACT
SGST/UTGST ACT, 2017 29+8=37
IGST ACT, 2017 1
COMPENSATION CESS ACT, 2017 For the next 5 years . 1
RCM
KELKAR TASK FORCE COMMITTEE 2004 recommended GST
( VIJAY KELKAR) Reverse Charge Mechanism
CGST ACT SGST ACT IGST ACT
President's approval 8th September 2016 power
CGST SGST IGST Indirect Tax
GST IMPLEMENT 1 July 2017
liability/responsibility Supplier Forward Charge Mechanism
First country to implement GST FRANCE (IN THE YEAR 1954)
liability to pay tax Recipient Reverse Charge Mechanism
First state to implement GST ASSAM Goods supplied to MH
50,000

CGST ACT, 2017 TAXABILITY

( taxable event) edge
SECTIONS event - tax - applicable 2G
1 short title,extent and applicability SUPPLY 3G
2 Definition 4G
3 to 6 Administration 5G At present
7 SUPPLY Income Tax Act, 1961
8 Composite and Mixed Supply
9 Normal Levy ( Charging section) Capital Gain
Capital Asset - Section 2(14)

CGST ACT, 2017 SGST ACT, 2017 IGST ACT, 2017

Section 9 Charging Section (Normal Levy) Section 9 Section 5 Charging Section

Section 9(1) CGST shall be levied Section 9(1) SGST shall be levied Section 5(1) IGST shall be levied

on intra state supply on Intra state supply of on Inter state supply

except DAARU
of goods/ services/ both except DAARU ( alcoholic liquor for human consumption) goods/ services/ both except DAARU ( alcoholic liquor for human consumption) of goods/services/ both except DAARU (alcoholic liquor for human consumption)

@ rate - Notified by CG - recommendation of GST council - < 20% @ rate - notified by CG - recommendation of GST Council - < 20% @ rate - notified by CG - recommendation of GST Council - < 40%

of Value of goods/services/ both of Value of Goods/ services/ both of Value of goods/services/both

payable by TAXABLE PERSON. payable by TAXABLE PERSON. payable by TAXABLE PERSON.

Section 9 (2) 5G (5 GOODS)

5 goods on which GST shall be levied from the date which is notified by CG on the recommendation of GST Council.
At present, the date is not notified.
( In short, GST is not applicable on these 5 goods)
I) Petroleum Crude oil
ii) High Speed Diesel
iii) Motor Spirit ( Commonly known as Petrol)
iv) Natural Gas
v) ATF ( Aviation Turbine Fuel)

We can conclude from section 9(1) & section 9(2)

At present, total 6 (1+5) goods are there on which GST is not applicable.

Section 9(3) RCM (Reverse Charge Mechanism)

Central Govt - power - recommendation of GST council

 to Notify

goods/ services/ both

then , the Recipient will be liable to pay tax under RCM as if he is the person liable to pay tax.

Mr. DON
Ex. 10,00,000
GST@18% 1,80,000

Murder price 11,80,000

Mr. KAUN liable to pay GST. under RCM

Section 9(4) If an unregistered supplier

supply taxable goods/services/ both

to Registered person

Then , registered person shall be liable to

pay GST under RCM, as if he is the person
liable to pay GST.

applicability of section 9(4) was postponed till 31-3-2018

postponed till 30-9-2019

From 1-10-2019 applicable ------ Only on Builders/Promoters

Section 9(5) Central Govt has ----- power ------- on the recommendation of GST Council

to notify

SERVICES

if such services are supplied through ECO ( Electronic Commerce Operator)

Then, such ECO will be treated as if he is the Supplier of such service.

ECO a digital platform

ECO

Kandivali to Andheri - OLA

OLA App
sign in
pick up point drop point GOODS
goods means every kind of movable property other than money and securities but includes actionable claims,
payment growing crops, grass and things attached to or forming part of the land.

transportation - service - Driver? Ola? goods exlcudes : Money and securities.

At present Three services is notified SERVICES

services means anything other than goods, money and securities but includes activities relating to use of money
a) Transportation of passengers ex. ola, uber or its conversion by cash or by any other mode from one form , currency, denomination,
to another form, currency or denomination for which a separate Consideration is charged.
b) service of accomodation ex. OYO Hotel

c) services of housekeeping ex. urbanclap.com

MONEY AND SECURITIES goods ×
Knowledge ECO - registered in india ECO pay services ×

not registered representative will pay

not registered, dnt have representative

OLA

Section 7: SUPPLY

Intra state supply Inter state supply

within the state supply Between two states

( CGST+SGST) (IGST)
Supply defines
when the location of supplier and when the location of supplier and the means exhaustive
the place of supply of goods/services/both place of supply of goods/services/both
are in same state/union territory. are in goods includes movable property
I) two different states schedule 1 activities - without Consideration - Supply
ii) two different union Territories 1) permanent transfer or disposal of business assets on which ITC
iii) state and union territory has been availed.

Section 7 Meaning and scope of supply Section 7 classes: AC GST

Section 7(1) Supply includes 7(1) supply includes AC 50,000

(a) all forms of supply of goods or services or both such as (a) consideration + Business GST 5,000
sale, exchange, barter, transfer, lease, licence, rental or disposal 55,000 open plot
made or agreed to be made for a consideration
by a person in the course or furtherance of business. January February AC - donated to charitable school Works contacts construction services+ goods
GST liability 15,000 GST liability 10,000
(b) Import of services for a Consideration whether or not in the course or furtherance of business. (b) Consideration + business × less: ITC 5,000 Add: ITC reversed 5,000
ex: Italy ( Interior designer) balance to pay 10,000 balance to pay 15,000 before gst service tax vat

(c) transactions ( activities) specified in schedule I made or agreed to be made without Consideration. (c) schedule I - without Consideration after gst

Activities mentioned in Schedule I

(I) Permanent transfer or disposal of business assets on which Input Tax credit has been availed on such assets .
Ex. Satish & Co. donates old AC to charitable schools.

(II) Supply of goods or services or both between related persons or between distinct person
when made in the course or furtherance of business.

Provided that gifts not exceeding fifty thousand rupees in value in a financial year
by an employer to an employee shall not be treated as supply of goods or services or both. goods
Ex: If gifts of Rs. 55,000 per employee are given then GST will be levied on entire Rs. 55,000. Mr. Sammy supplied goods to Mr. Dharam singh
MH GJ Customers
(iii) Supply of GOODS Principal Agent
(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.

(iv) Import of services by a PERSON from a related person or from any of his other establishments outside India, land
in the course or furtherance of business. constructed building
Ex. Satish Associates rec'd legal consultancy services from its head office located in LA.
The head office has rendered such services free of cost to its branch office.
since Satish Associates and head office are related persons, services rec'd by Satish Associates will qualify as supply, even though the head office has not charged anything from it.

Section 7 (1A) Activities or transactions to be treated as supply of goods or supply of services.

(SCHEDULE II) pen 50% pen
50% pencil

WORKS CONTRACT construction services + Goods

construction services Goods movable property( Immovable property) Goods every kind of movable property
goods construction services excludes money and securities immovable property
VAT service tax Services other than goods ( immovable property) includes actionable claims.

Section 7(2) Notwithstanding anything contained in sub- section (1)

(a) activities or transactions specified in schedule III Actionable claims services Anything other than goods immovable property×
(NEGATIVE LIST) Under construction Constructed building
Schedule III
LAB C D E F G/H NPA's Land Constructed building Heena Mani
1) Land & constructed building
2) Actionable claims other than lottery, betting and gambling. YES BANK SBI BANK
3) Services of funeral, BURIAL, crematorium or mortuary including transportation of the deceased. (50 crores) 10 crore Don Baba
4) Services by any COURT or TRIBUNAL established under any law for the time being in force. Levy
5) Functions performed by MP, MLA, Members of Panchayats, Members of Municipality etc.
Duties - hold any post - Constitutional capacity Exemption
Duties - any person as a - Chairperson, Member or Director - in a body established by Collection not possible
CG/SG/ LOCAL AUTHORITY.
6) Services by an EMPLOYEE to the EMPLOYER in the course of or in relation to his EMPLOYMENT.
(EEE - Employee - Employer - Employment)
7) Foreign goods - Foreign supply (Supply from Non taxable territory - Non Taxable territory)
CHINA JAPAN
Mr. Ching Chong Mr. Xing xong
(GOODS) (Delivered to xing xong)

INDIA
Mr. Harsh

8) Goods - supply of goods before removal for home consumption (Customs control ) BOE - HC

Australia - goods import - 1 crore

The goods is in customs custody ( Warehouse)

Mr. X - 1.20 crore

goods - sale - Mr. X - 1.20 crore .

A B C
goods imported supply to B supply to C
custom port custom port BOE - HC 30,000
classes Teaching services + Tour
9) Goods - Sale - HIGH SEAS 18% 28%

15000
classes teaching services + books
Section 8 COMPOSITE AND MIXED SUPPLIES

Composite Supply Mixed Supply car stepney

> 2 supplies > 2 supplies car import 4 additional tyre import
Naturally bundled ( in the ordinary course of business) Single price charged 28% 18%
only 1 - principal supply does not constitute a composite Supply.
@ principal supply @ Highest tax rate Amazon 1 Mobile phone phone
Distributor packing services
insurance services
transportation
customer
Section 10 : COMPOSITION SCHEME (LEVY)
Section 10(1) Applicability
If "AGGREGATE TURNOVER" of a registered taxable person
does not exceed the following limits in the PREVIOUS YEAR,
he may OPT for composition scheme in the current year
for the following amounts:
Generally : 150 Lakhs (1.5 Crores)
Special Category States : 75 Lakhs

MH - Xy associate's
2019 2020 2021
ATO 145 lakhs 160 lakhs 100 lakhs

eligible to opt
composition scheme?

Yes - Eligible Yes - eligible No - not eligible

145 lakhs - notified rate Sec 9 - Normal levy
First 150 lakhs - sec 10 ( Composition levy)
Remaining 10 lakh - sec 9 ( Normal Levy)

Special States : Sikkim, Uttarakhand, Manipur, Meghalaya, Mizoram, Arunachal Pradesh, Nagaland
Tripura
(SUMAN Takli)

Section 10(2) Eligible Persons (MINES)

Section 10(2) of CGST Act, 2017 specifies the benefit of Composition scheme shall not be
granted if a taxable person is:
a) Engaged is the supply of SERVICES except Restaurant/Catering services.
b) Engaged in making any supply of goods which are NOT leviable to tax under this act. 2019 2020
c) Engaged in making any INTER-STATE outward supplies of goods. 140 lakh 145 lakh
d) Engaged in making any supply of goods through an Electronic Commerce Operator who is required to collect
tax at source under section 52. eligible
e) A Manufacturer of the following goods notified by the Government
Notified Goods ( PITA) 145 lakh - 135 lakh ( Goods supplied)
1 Ice cream and other edible ice 10 lakh ( Services Supplied)
2 Pan Masala
3 Tobacco and manufactured tobacco substitutes a) 10%. of PY to - 14 lakh
4 Aerated Water
b) Rs. 5,00,000
f) He is neither Casual Taxable Person nor a Non - Resident Taxable Person

MARGINAL SUPPLY OF SERVICE

A person who opts to pay Composition tax may supply services ( other than restaurant/catering services)
to the extent of
a) value not exceeding 10% of Turnover in a state/union territory in the previous year
OR
b) Rs. 5,00,000
whichever is higher.

Other Points [Section 10(3)&(4)

a) Composition scheme shall lapse from the date on which his aggregate turnover exceeds the specified limit.
b) Registered Composition supplier is not allowed to collect tax.
c) He is not eligible to take any INPUT TAX CREDIT.
d) All registered person having same PAN must opt to pay tax under Composition scheme.

COMPOSITION RATES
Particulars CGST/SGST EACH Effective Rate (CGST+SGST)
Manufacturers ( Other than manufacturers of notified Goods(PITA) 0.5% of Total Turnover 1%
Restaurants/catering services 2.5% of Total Turnover 5%
Others/ Traders 0.5% of TAXABLE TURNOVER 1%
In case of RCM Normal Rate Normal Rate

Example: Calculate total GST payable in following cases( Normal rate - 18%)

Supplier (MH) Aggregate Turnover (PY)2019Aggregate Turnover (CY) 2020 Calculation

140 Lakh 130 lakh 130 lakh × 1% = Rs. 1,30,000

95 Lakh 160 Lakh 150 lakh ×1% + 10 lakh × 18% = Rs. 3,30,000
a) Manufacturer of Stationery
151 lakh 90 Lakh 90 lakh × 18% = Rs. 16,20,000

b) Trader of Ice cream 90 Lakh 70 Lakh 70 Lakh × 1% = Rs. 70,000

c) Manufacturer of Ice cream 50 lakh 70 Lakh 70 Lakh × 18% = Rs. 12,60,000

AGGREGATE TURNOVER

Aggregate Turnover includes Aggregate Turnover excludes

a) Taxable supplies a) Taxes ( GST) local taxes

CGST
b) Exempt supplies SGST
Supply with Nil rate of tax UTGST
Supply wholly exempt from tax IGST
Non- taxable supply Compensation Cess

c) Exports of goods/services b) Inward supplies under Reverse Charge Mechanism.

d) Inter - state supplies between distinct person c) Value of exempt supply of services provided by way of extending
having same PAN number. deposits, loans or advances in so far as the consideration
is represented by way of interest or discount.

Illustration no 20
Solution
Aggregate Turnover doesn't include value of inward supplies on which
reverse Charge is applicable. So aggregate Turnover is computed as under:

PARTICULARS Rs.
Intra state supplies 60,00,000
Intra state supplies made which are subject to 0% CGST 60,00,000
Intra supplies which are wholly exempt 30,00,000
Value of inward supplies which is payable under RCM NIL
AGGREGATE TURNOVER 1,50,00,000

Since, aggregate Turnover doesn't exceed rs 1,50,00,000 during the FY 2019-20, so XYZ Ltd is Amount 100%
entitled for Composition scheme for FY 2020-21.

Illustration no 21
Solution
total to 176.41 lakh including 18%
Computation of Aggregate Turnover & Tax Liability
176.41 100+18
Particulars Rs. 100

Intra state supplies @ 5% 40,00,000 176.41×100/118 149.5

Inta state supplies @ 12% 10,00,000
Intra state supplies made which are subject to 0% CGST 20,00,000
Intra state supplies which are wholly exempt 10,00,000
Value of inward supplies which is payable under RCM @ 5% NIL

AGGREGATE TURNOVER 80,00,000

Rate of tax @ 1% ( CGST + SGST) 80,000

XYZ Ltd has to pay tax under Reverse Charge u/s 9(3) of CGST Act, 2017 rs. 50,000 ( 10,00,000 × 5%).

Total Tax liability is Rs. 1,30,000 ( 80,000 + 50,000).

Illustration no 5
Aggregate Turnover of Gayatri Ltd 35,95,000

a) Aggregate Turnover of Gayatri Ltd is rs 35,95,000 which is less than the threshold limit of rs. 1.5 crore.
So they are eligible to opt for Composition scheme.

b) Composition Tax liability

CGST @0.5% on Taxable Turnover (22,95,000) Rs.11,475
SGST @0.5% on Taxable Turnover (22,95,000) Rs. 11,475
Total Tax liability@ 1% Rs. 22,950

Illustration no 18:

Exclusive Inclusive

Amount = 100%

Aggregate Turnover is inclusive of tax.

Total turnover 176.41 lakh ( Inclusive of tax)

176.41 118
x 100

Aggregate Turnover exclusive of tax = 176.41×100/118

Rs.149.50 lakh

Since, aggregate Turnover in the previous year does not exceed the threshold limit of rs. 1.5 crore, so
GST Ltd. is eligible for Composition scheme.

Q 5a)
Gayatri Ltd.
Computation of aggregate Turnover & Tax liability

Particulars Amount
13,00,000
9,50,000
3,45,000
Nil
10,00,000
Aggregate Turnover 35,95,000

a) Since, aggregate Turnover of Gayatri Ltd does not exceed the threshold limit of Rs 150 lakh in the previous year,
so Gayatri Ltd is eligible to opt for Composition scheme. Baba

b) Composition Tax liability : 1 % of Taxable Turnover Levy

Taxable Turnover: 22,95,000 exemption
CGST @ 0.5% of Taxable Turnover 11,475
SGST @ 0.5% of Taxable Turnover 11,475 Levy collection
 exemption

Collection

Section 11 : Exemption from Tax

Section 12 to 14 : Time of Supply
TIME OF SUPPLY (Section 12 to 14)

It states that the liability to pay tax on goods / services shall arise at the time of supply, as determined BOA entry 2-3-2021
in accordance with the provisions of section 12 to 13. date of payment
debit from bank 4-3-2021
TOS determines when tax is to be levied, at what rate and when it should be paid.

TIME OF SUPPLY IN CASE OF GOODS (SECTION 12) Date of invoice 31st day from date of invoice
2-3-2021
Forward Charge( Goods Supplied) Reverse Charge( Receipt of goods)

a) Date of invoice a) Date of receipt of goods. 2-3-2021 31 day 31 day from issue of invoice
Date on which payment is entered in Books of Accounts 29 days of March ended
b) Date of payment × b) Date of payment whichever is Earlier 2-4-2021 date of invoice 31st day from date of invoice
Date on which the payment is debited in Bank Account.
c) Last date of invoice
Due date of invoice u/s 31 c) 31st day from the date of issue of invoice 4-5-2020 4-6-2020 4-5-2020 31
Whichever is Earlier TOS 4-4-2020 5-5-2020 27 days of may
TOS - Whichever is Earlier Goods (12) Services (13) 4 days of June

Proviso : If all 3 above do not apply - Date of book entry in recipient book. 12(1) 13(1)
Section 31 12(2) forward 13(2) forward 1947 February?
DATE OF ISSUANCE OF INVOICE 12(3) reverse 13(3) reverse 1947/4
2021/4
GOODS 2020/4

Normal Supply Continuous Supply Goods sent on Approval Basis

where successive statements value of supply 1,00,000
Involves movement Other cases of accounts or successive Earlier of the following:
of goods payments are involved. a) Before or at the time of supply

Before or at the time Before or at the time of Before or at the time Before or at the time b) 6 months from the date of removal.
of removal of goods. delivery of goods or of issuance of statement of receipt of such
making available to of accounts. successive payments. DOS DOI DOP
the recipient.

Q) Mr. Ram sold goods to Mr. Shyam worth Rs. 5,00,000. The invoice was issued on 15th November.
The payment was received on 30th November. The goods were supplied on 20th November.
Find out the TOS.
Ans.
Date of issue of invoice Date of payment Due date u/s 31 Time of supply
15-11 30-11 20-11 15-11

Q) Determine the Time of supply in the following different scenarios, where supply involves movement of goods.

Date of Removal Date of Invoice Date when goods made available Date of Receipt of Due date u/s 31 Time of Supply ( Earlier of Date of invoice or Due date u/s 31)
to recipient Payment

1-10-2020 2-10-2020 3-10-2020 15-11-2020 1-10-2020 1-10-2020

3-10-2020 1-10-2020 4-10-2020 25-11-2020 3-10-2020 1-10-2020

4-11-2020 4-11-2020 6-11-2020 1-10-2020 4-11-2020 4-11-2020

Q) Determine the TOS in following independent cases.

Sr No. Date on which goods Date of invoice Date of Receipt of payment Due date u/s 31 TIME OF SUPPLY ( EARLIER OF DATE OF INVOICE OR DUE DATE U/S 31)
are available

1 12-12-2019 15-12-2019 6-11-2019 12-12-2019 12-12-2019

2 17-12-2019 20-12-2019 2-1-2020 17-12-2019 17-12-2019
3 25-12-2019 04-01-2020 23-1-2020 25-12-2019 25-12-2019
4 26-10-2019 16-10-2020 15-10-2020 26-10-2019 26-10-2019
5 18-12-2019 12-12-2020 10-12-2020 18-12-2019 18-12-2019
6 15-01-2020 16-01-2020 5-1-2020 15-01-2020 15-01-2020
7 17-02-2020 13-02-2020 12-2-2020 17-02-2020 13-02-2020

section 12(3) TOS - GOODS - REVERSE CHARGE

Illustration no 10
Date of invoice Date of receipt of goods Date of payment in Books Date of Debit of payment in Bank A/C 31st day from the date of TIME OF SUPPLY
Date of Payment ( whichever is Earlier) issue of Invoice
1 2 3 4 5 6 1-10 31
30 days of oct
01-10-2020 05-10-2020 10-10-2020 12-10-2020 1-11-2020 5-10-2020 1 day of November

01-10-2020 15-10-2020 10-10-2020 12-10-2020 1-11-2020 10-10-2020

01-10-2020 15-10-2020 12-10-2020 10-10-2020 1-11-2020 10-10-2020

01-10-2020 15-11-2020 18-11-2020 20-11-2020 1-11-2020 1-11-2020

SECTION 13 : TIME OF SUPPLY IN CASE OF SERVICES

Forward Charge ( Service provide) 13(2) Reverse Charge (Service received) 13(3)
From Associated Enterprises ( Supplier of service is located outside India)
If the invoice is issued within time limit If invoice is not issued within time limit Normally ( Service Provider is in India)
a) Date of Entry in the BOA of recipient
a) Date of invoice a) Date of provision of service a) Date of Payment
recorded in the books of accounts b) Date of Payment
b) date of payment whichever is Earlier b) Date of payment b) 61st day from the date of Invoice Whichever is Earlier
credited in Bank account Whichever is Earlier
whichever is Earlier whichever is Earlier.
Proviso : If all 2 above do not apply - Date of book entry in recipient books.
Normally : Time limit is within 30 days from the date of SUPPLY ( provision)of services.

In case of Banks, Financial institutions the time limit is 45 days from the date of SUPPLY (provision) of service.

November 2019

Illustration no 4(a) 8 marks

Sr no Date of provision of services Date of invoice Date of receipt of payment Time limit for issue of invoice Issued within time limit TIME OF SUPPLY
A B C D E If E= Yes , Earlier of B&C
if E= No, Earlier of A& C
1 16-08-2020 05-09-2020 6-9-2020 15-9-2020 YES 5-9-2020
2 06-09-2020 05-10-2020 21-10-2020 06-10-2020 YES 5-10-2020
3 12-09-2020 14-10-2020 15-10-2020 12-10-2020 NO 12-09-2020
4 16-09-2020 26-09-2020 01-09-2020
5 18-09-2020 04-11-2020 07-10-2020
6 20-09-2020 22-10-2020 25-10-2020
7 24-09-2020 27-10-2020 22-09-2020
8 26-09-2020 30-09-2020 05-09-2020

April 2019 Q no 4(b) 5 marks

Sr No. Date of Supply of Service Date of Invoice Date of Payment Time limit for issue of invoice Time of Supply
( Within 30 days from date of Service)

1 16-07-2020 19-07-2020 24-07-2020

2 06-10-2020 17-11-2020 18-11-2020
3 04-12-2020 03-12-2020 06-01-2021
4 10-01-2021 10-02-2021 15-02-2021
5 16-02-2021 28-02-2021 18-02-2021 18-03-2021 18-02-2021

Section 12(4)/ 13(4)

VOUCHERS Nature - Identifiable Time of Supply - Date of issue of such voucher

Nature - Not Identifiable Time of Supply - Date of redemption of such voucher.

Section 12(5)/ 13(5)

RESIDUAL CASE If the situation is not covered under any of the above provisions, the time of
supply is fixed under this sub section in following manner:

a) Due date for filing of the periodical return, or

b) In any othe case, date on which GST is paid.

Section 12(6)/ 13(6)

By way of Interest/ Late fees
ADDITION IN VALUE
OF SUPPLY Time of supply: Date on which the supplier receives such addition in value.

Section 14 : Change in Rate of Tax in respect of Supply of Goods or Services.

Tabular presentation of Section 14:

Goods/ Services Supplied Invoice issued Payment Received Time of Supply

Before change in (Basanti) (Jai) (Veeru)
Rate of Tax Yes No No Date of issue of invoice or receipt of payment, whichever is Earlier.
( Before change in rate) ( After change in rate) ( After change in rate)
Yes Yes No Date of issue of invoice
 (Before change in rate) (Before change in rate) ( After change in rate)
Yes No Yes Date of payment
(Before change in rate) ( After change in rate) ( Before change in rate)

Goods / Services Supplied Invoice issued Payment Received Time of Supply

After change in Yes No No Date of issue of invoice or receipt of payment, whichever is Earlier.
(After change in rate) ( Before change in rate) (Before change in rate)
Rate of Tax
Yes Yes No Date of issue of invoice
(After change in rate) ( After change in rate) ( Before change in rate)

Yes No Yes Date of payment

(After change in rate) ( Before change in rate) ( After change in rate)

Date of payment: For the purposes of Time of Supply, the "Date of payment" means the date on which payment is entered in the books of accounts or the date
on which payment is credited to the bank account, whichever is Earlier.

But, if the credit in the bank account is after 4 working days from the date of change in rate of tax, then , the date of payment shall be the date of credit in the bank account.

change in rate of tax from 10-3-2021 ( 5% to 18%)

x
goods / services Supplied
invoice issued payment Received Time of supply

2-3-2021 5-3-2021 12-3-2021 Date of issue of invoice

(Before) (Before) (After) 5-3-2021

12-3-2021 5-3-2021 9-3-2021 date of invoice or payment WIE

(After) (Before) (Before) 5-3-2021

Q)
Date of invoice Date of entry in books of accounts Date of credit in the bank account Change in rate of goods & Service tax Date of payment

15-3-2020 25-3-2020 8-4-2020 1-4-2020 8-4-2020

What would be your answer if the date of credit in the bank account would had been 3-4-2020?
answer: Date of payment - 25-3-2020

time of Supply

GST Value × Rate

Time of supply Section 15 Value of Supply ( Valuation)

GST = Value × Rate 15(1)+15(2)-15(3)

Transaction Value

Time of supply sec 12 to 14

gst Value × Rate

Section 15 Value of supply ( Valuation)

15(1)+15(2)-15(3)
value = transaction Value sec 15(4) 15(5)

Mr x supply goods to Mr Y for rs 50,000 as per rules as per rules

value of supply 50,000

3 conditions
a) Price actually paid/payable

b) Supplier and recipient are not related person notified persons

c) price is the sole consideration

MH TO DELHI transportation cost

Transaction Value 15(1)+15(2)-15(3)

price + Additions - Discount
value to charge gst
15(2) additions
1) delayed payment - int or late fees
2) Any amount - liable to pay by supplier
but incurred by recipient
3) Any TAXES other than GST
4) incidental EXPENSES all packing expenses will be added to value of supply returnable packing not to be added in value

packing assets
 Section 15 : Valuation

Section 15(1) + 15(2) - 15(3) Section 15(4) Section 15(5)

(Transaction Value) ( As per rules) (As per rules)

Not Satisfied
3 conditions:
a) Price actually paid / payable.
b) Supplier & Recipient are Unrelated.
c) Price is the sole consideration.
value as per rule. Applicable for Notified supplier.

* Transaction Value = 15(1) + 15(2) - 15(3)

price + DATES - Discount

D Delayed payment
A Any amount
T Taxes( Other than GST)
E Incidental EXPENSES
S SUBSIDIES

Value of supply includes [section 15(2)]

Sr.No. Additions Examples

a) Any TAXES, duties, cesses, fees and charges Municipal taxes, excise duty on tobacco
levied under any law other than this act, (GST) Entertainment taxes levied etc.

b) Any Amount that the Supplier is LIABLE TO PAY Transport/ Insurance charges paid by
in relation to such supply but which has been incurred recipient on behalf of supplier etc.
by the Recipient.

c) INCIDENTAL EXPENSES Commission, packing cost, Design and

development charges, pre delivery inspection,
warranty charges, installation and erection charges etc.

d) Interest or late fees or penalty for DELAYED PAYMENT violation of contract, liquidated damages etc.
of any Consideration for any supply.

e) SUBSIDIES Directly linked to the price By Government - Not to be included.

Excluding subsidies provided by Central/State Govt.
By Others - Included

Value of supply shall not include [ Section 15(3)] Invoice no 1 discount

DISCOUNT invoice no 1
value of goods 2,00,000 1,80,000
Before or at the time If discount has been duly recorded in invoice issued 20,000
of Supply in respect of such supply. gst 10,000 8,000

After the supply has been effected ITC 10000

I) such discount is established in terms of an agreement

entered into at or before the time of supply and specifically
linked to relevant invoices.
Amount 100
ii) ITC, as is attributable to the discount on the basis of document issued by
the Supplier has been reversed by the recipient 1,88,800 118 100+18
of the supply. ? 100 actual value

Q no 4(c) M/s Gurunath 1,88,800 ×100÷118

Particulars Amount

as per sec15(1) List price (1,88,800 × 100 ÷ 118) 1,60,000

As per sec 15(2) Add: Taxes other than GST 18,500

Incidental Expenses
insurance charges 8,000 Value of goods 1,60,000 value of goods( inclusive of IGST) 1,88,800
freight charges 5,000
designing charges 6,000 actual value of goods
118
Add: Expenses of Buyer on behalf of seller's
Testing charges 3,000

Subsidy received by Udaan, an NGO 2,000

value of supply 2,02,500

Add: IGST @18% 36,450

Selling price 2,38,950

value of machine 16,64,000 inclusive of GST 28%

Q no 4(b) Calculation of Value of Supply as per Section 15

Particulars Amount Amount

Value of Machine ( 16,64,000 × 100 ÷128) 13,00,000

Add: Taxes other than GST 75,000
Pre-Installation consultancy 15,000
Commission 27,000
Designing charges 12,000
Subsidy received from Bombay Merchant Association 70,000
Customized packing charges 13,000 2,12,000

Value of Taxable Supply 15,12,000

16,64,000 128
? 100
 IGST ACT, 2017

PLACE OF SUPPLY

A) Nature of supply

B) Place of supply

Location of Supplier A) Nature of supply Location of supplier

Inter-State supply Intra- State Supply

Place of supply Place of supply
(DIFFERENT) IGST CGST (SAME)
SGST/UTGST

Exceptions:
I) supply made to SEZ
ii) supply to Tourist (N.R.I.)

B) PLACE OF SUPPLY

GOODS SERVICES

Within India Imported into or Exported from

India
(Sec 10) (Sec 11)

Place of supply - GOODS - Sec 10 - Other than Import / Export.

a) Movement of Goods
POS will be Destination of goods
Termination of Journey of goods

Ex: Mr. A of Mumbai supplied 10 fridges to Mr. B of Amritsar

POS will be Amritsar.
Location of supplier Mumbai
Place of supply Amritsar

IGST charged

b) BILL TO SHIP TO MODEL

POS will be the place of BUYER ( 3rd person) during supply
who orders to deliver the goods
to another person. Before supply

Ex: A (Mumbai ) Supplier

B ( Buyer ) 3rd person Delhi C ( Recipient) Mumbai

who orders to supply goods
to another person.

in above example;
Location of supplier Mumbai
Place of supply Delhi
Tax to be charge IGST

c) No Movement of Goods
POS will be the location of goods at the time of delivery.

Ex: Malls, Goods purchased from shops etc.

Goods purchased from Infinity Mall.

Location of supplier infinity mall

Place of supply infinity mall
Tax to be charge CGST + SGST

d) Goods are assembled or installed at site.

POS will be the place where goods are assembled or installed.

ex: Machinery purchased from Bangalore & installed in Mumbai.

Location of supplier Bangalore

Place of supply Mumbai
Tax to be charge IGST

e) Goods are supplied on Board or conveyance

Aircraft
Vessel POS will be the place from where the goods reached on Board.
Train
Vehicles

sec 10(2): Place of supply of goods can't be determined.

Place of Supply- Goods - Import / Export - Sec 11

In case of IMPORT In case of EXPORT

POS will be Location of Importer POS will be Location outside India

As per Customs Act

Beneficiary

Person hold to be Importer

Owner

Q) Quickdeal enterprises (Ahmednagar, Gujarat) opens a new branch office at Hisaar, Haryana.
It purchases a building for office from Ruhani Builders(Hisaar) along with pre-installed office furniture and fixtures.
Determine place of supply of the pre-installed office furniture and fixtures.

Answer: Section 10(1) of IGST ACT, 2017stipulates that if the supply

does not involve movement of goods, the place of supply is location of goods
at the time of delivery. Since there is no movement of office furniture and fixtures
in the given case, the place of supply of such goods is their location at the time of delivery i.e. HISSAR, HARYANA.

Q)M/s. Bharat Bijlee Ltd, based in Mumbai, imported a machine from South Korea.
Ans: As per sec 11 of IGST ACT, 2017, in case of IMPORT of goods, the place
of supply will be the location of Importer.
therefore, place of supply in given question is Mumbai.

Q) M/s. AK enterprise of Pune , Maharashtra sells 60 Television sets to M/s. KA Enterprises,

Sangli, Maharashtra for delivery at Sangali, Maharashtra.
Ans: As per sec 10 of IGST ACT, 2017, place of Supply in case of movement of goods will be the termination of Journey of goods.
Therefore place of supply in given case is Sangali, Maharashtra.

Q) Deepak having registered office in Meerut, imported goods into India from Singapore, which were received at Mumbai Airport.
Ans: POS = Meerut

Q) M/s Siddhi Vinayak CHS Ltd., Mumbai, placed an order for installation of elevator with M/s. Otis Elevators.
The elevator was installed at the society's building in Mumbai.

Q) M/s Arijit of Nanded, Maharashtra, sells 20 washing machines to M/s. Abhijeet of Kota, Rajasthan for delivery at his registered address in Kota.

SUMMARY - PLACE OF SERVICES WITHIN INDIA ( Section 12)

Determination of place of supply of service where the location of supplier and location
of Recipient is in India ( Sec 12)

Place used in story Sec No. Description of Service Place of Supply

Churchgate 12(3) Service directly related to immovable property including I) Place where immovable property is located or intended to be located.
lodging hotels, inn, accomodation for functions and ancillary services. ii) If immovable property is located outside India - Place of supply will be Location of recipient.

Dadar 12(4) Restaurants catering, personal grooming fitness, beauty treatment, Place where the service is actually performed.
health services including plastic surgery.

Elephanta 12(5) Training and performance appraisal services Place of performance.

Fountain hotel 12(6) Admission to Events or amusement park Place where event actually held or park is located.

Goregaon 12(7) Organisation of events including ancillary services, sponsorship I) Place where event is actually held. ( Ring ceremony - Goregaon)
ii) If event is held outside India - Place of supply will be Location of recipient. ( Marriage- Dubai)

Hamrapur 12(8) Transportation of Goods Place where goods are handed over for their transportation.

Igatpuri 12(9) Transportation of Passengers Place where person embarks on the conveyance for continuous journey.
Jogeshwari 12(10) Service on Board a conveyance includes vessel and aircraft. Location of 1st scheduled departure point of that conveyance.

Kalyan 12(11) Supply of Telecom services including data transfer, broadcast, cable or DTH a) Fixed line or cable line - Location of installation
b) Postpaid mobile, internet, DTH - Billing address exists in records - Location of recipient.
Billing address does not exists in records - Location of Supplier.
c) Prepaid Mobile, Internet or DTH - Supply through agents/ distributor- Address of agent/ distributor.
location where the prepaid voucher is sold.
d) In all other cases - Location of recipient if address available otherwise location of supplier.

Lower Parel 12(12) Banking and Financial sector services including stock broking. If address is available in records - Location of recipient
If address is not available in records - location of supplier.

Malad 12(13) Insurance Services Location of recipient in records of Insurance company.

12(14) Advertisement services to Govt. or Local authority. Each of such State/UT where advertisements broadcasted , run, played.

If recipient is Registered person then Place of Supply will be Location of recipient.

T3IGER 🐅

T1 - Training and performance appraisal services

T2- Transportation of Goods
T3 - Transportation of passengers Reliance
I- Insurance Services Tour TATA
G - General provision - 12(2) Employees insurance Insurance company
E- Event organization Service Tata Co.
R - Silent

Sec 12(2) - GENERAL PROVISION

Supply to Registered person Supply to Unregistered Person

Location of such registered person I) If address is available in records - Location of recipient

ii) If address is not available in records- Location of Supplier.

Q) Pandit Ravi Shankar, Sitar maestro, based in Delhi, travels to Mumbai for a performance at Cross Maidan (Mumbai)
POS = Mumbai Cross Maidan

SBI branch (Malad) Registered Person under GST

GST Training
Borivali Booked a hall

Place of Performance is in Borivali

Place of Supply = Malad

Q) Pandit Ravi Shankar, Sitar maestro, based in Delhi, travels to Mumbai for a performance at Cross Maidan (Mumbai) for Tata Consultancy (Andheri)
TATA is registered person under GST

Q ) Mr. Anand a businessman from Gujarat dines in a restaurant at Mumbai while on business trip.
Ans : Place of Supply = Mumbai
Reason : As per Section 12(4), in case of restaurant services, the place of supply will be the location where such services has been performed.

Q) Mr. Shantanu Sharma, a makeup artist at Kolkata, goes to Jaipur, Rajashthan for doing the makeup of Simran Khanna, a bollywood actress based in Mumbai.
Ans : Place od Supply = Jaipur, Rajasthan
Reason : As per Section 12(4), in case of Beauty Treatment service , place of supply is the place of performnace.

Q) Mr. Akash of Ghaziabad, Uttar Pradesh, buys a ticket for a circus organisedat gurugram, Haryana by a Circus Company based in New Delhi.

Q) Mr. Amar Saxena, CEO of Amar Ltd., Mumbai (A company Registered in Maharashtra) buys insurance cover for the inventory stored in company's
Factory located in Mumbai, from Excellence Insurers, Chennai (Registered in Tamil Nadu).

Q) Delhi Government gives an advertisement contract to an Advertising agency registered in Delhi to promote its "Every Child Can Read Campaign" in Delhi.

Q) Gujarat Government gives an advertisement contract toan advertising agency (registered in Ahmedabad) to promote Gujarat Tourism throughout the Country.
 Section 16 : Input Tax Credit ( Eligibility)

Sec 16(1) : ITC allowed only to Sec 16(2) : 4 conditions for availing Sec 16(3) : Either take ITC or claim depreciation on GST portion Sec 16(4) : Time limit for availing ITC
I) Registered Person ITC by registered person. of Capital Goods or Plant and Machinery. EARLIER of
ii) On Goods/Services or both USED 1) Due date of filing September month's return of Next FY( 20th October,2019 for FY 2018-19)
or Intended to be used for BUSINESS.
2) Actual date of filling Annual Return.

a) He is in Possession of Invoice. b) He has received the Goods/Services. c) Tax has been paid to Government. d) Returns filed by Recipient. Plant and Machinery
20,00,000 eg: Mr. Khatri supplied goods to Mr. Atrangi worth rs 2,00,000, gst on same was rs. 20,000.
I) Tax Invoice GST 2,00,000 Tax Invoice
ii) Debit note I) In case of Bill to Ship to Supply: Deemed receipt by registered person. Payment of Tax to government is important and 22,00,000
iii) Bill of Entry not payment by recipient to Supplier for Initial Credit. value of supply of goods 2,00,000
iv) ISD' s Invoice ii) Goods received in lots/installments: ITC allowed upon receipt of last lot. GST 20,000
v) Self Invoicing (RCM) However, if payment (Value + GST) is not made within 180 days Cost (P/M) 22,00,000 Plant and Machinery
20,00,000 2,00,000 ITC 2,20,000
of Invoicing, ITC shall be added to output liability alongwith Interest depreciation depreciation
except for free supplies and supplies under RCM . Mr. Atrangi
ITC 20,000
If paid later on, Re-credit allowed.( No time limit for taking ITC)

180days

GST LIABILITY 30,000

Add: ITC 20,000
. 50,000
Time limit 16(4)
Annual return
2019-20 6 months September Re-credit allowed 20,000
Due date - 31st December
Earlier of
a) 20th October,2020

b) actual date of annual return 15 September - 2020

 Payment of Tax
(Sec 49, 50, 51, 52)

49 50 51 52
payment not made TDS TCS E - liability register

Interest@18% p.a. IGST 10,000

Interest@24% p.a.

portal - GSTN Electronic Records

Registered Taxpayer

1 Electronic Liability Register

2 Ledgers Electronic Cash Ledger cash deposit

Electronic Credit Ledger ITC TAX

Electronic Cash Ledger

Minor Heads
Major Heads Tax Interest Penalty Fees Other

IGST 200
CGST 4000
SGST 4000
UTGST
CESS

Electronic Liability Register

Minor Heads
Major Heads Tax Interest Penalty Fees Other

IGST 200
CGST
SGST 4,000
UTGST
CESS

E- Credit Ledger

IGST IGST CGST SGST

1 2
CGST IGST CGST xxxxxx
4 3
SGST/UTGST IGST xxxxxx SGST
6 5

First utilise the credit of IGST .

E - Credit Ledger
TAX
IGST 10,000 NIL

Sec 50 - Interest on delayed payment

due date is 10-1-2021 Tax 2000

tax paid on 20-2-2021

interest@18% p.a.
No. of days of delay 41

interest 2000×18% × 41/365

51 TDS

TDS @2% if Taxable Supply exceeds rs. 2,50,000

Municipality local authority

contract value exceeds 2,50,000

road contract Contract value 20,00,000

yes tds applicable

1st payment 1,50,000 TDS @2%

52 TCS

applicable on ECO

Amazon TCS

Patanjali Anjali

Tax amount 10,000

Tax liability for April month

actual date of payment is 12 June

calculate Interest u/s 50

Ans: Tax amount payable 10,000

Due date of payment : 20th May
No of days of delay: From 21st May till 12th June
23 days

Interest: 10,000 × 18% × 23/365

 Payment of Tax

Q 3(a) Mr..Alok
Computation of Net Tax Liability
Particulars IGST CGST SGST
Tax payable on Outward Supplies:
sold goods to Pradeep in Mysore (Karnataka) (1,50,000×12%) 18,000 Nil Nil
sold goods to M/s Anil&Co. in Pune(Maharashtra) (2,00,000×9%) Nil 18,000 18,000

Total Tax payable 18,000 18,000 18,000

Less: Input Tax Credit Available
Opening Balance -75,000 -10,000 -10,000
Input Tax Credit on Inward supplies:
Purchased goods from Vinod &Co. Sangli (Maharashtra)
(60,000×9%) Nil -5,400 -5,400
Services availed from a consultancy firm in Surat(GJ) (1,00,000× 12%) -12,000 Nil Nil

NET TAX LIABILITY -69,000 2,600 2,600

Less: ITC of IGST adjusted against CGST and SGST 5,200 -2,600 -2,600

BALANCE PAYABLE/CARRIED FORWARD -63,800 NIL NIL

Note: ITC on goods purchased for which no tax invoice has been received is not allowed.

Mr. Ravi Shankar

Computation of Net Tax Liability

Date Particulars IGST CGST SGST

Tax Payable on Outward Supplies:

5-8-2020 Sold goods in Mumbai (88,000×18%) Nil 7,920 7,920
11-8-2020 Goods sold in Solapur (75,000×12%) Nil 4,500 4,500
18-8-2020 Goods sold in New Delhi (66,000×5%) 3,300 Nil Nil
20-8 Services in Kolhapur (1,23,000×12%) Nil 7,380 7,380
22-8 Services provided in Thane (1,15,000×5%) Nil 2,875 2,875
25-8 Services in Mahabaleshwar (56,000×12%) Nil 3,360 3,360
28-8 Sold goods in Haryana (2,35,000×18%) 42,300 Nil Nil
31-8 Sold goods in Silvassa (1,28,000×5%) 6,400 Nil Nil

Total Tax Payable (A) 52,000 26,035 26,035

Input Tax Credit available
Opening Balance 5,000 6,000 7,000
ITC on Inward Supplies 9,000 13,000 13,000
ITC Available (B) 14,000 19,000 20,000

NET TAX LIABILITY (A - B) 38,000 7,035 6,035

Sec 50 Interest on delayed payment

Q) M/s XYZ Supplied goods worth rs. 20 lakhs to M/s ABC in the month of August 2020.
GST @12%. M/s XYZ paid GST to Government on:
a) 14th November, 2020 or
b) 31st December, 2020 or
c) 26th January,2021

The amount of ITC available is 0.

calculate interest u/s 50 of CGST Act, 2017.

Ans: Due date of Payment : 20th September, 2020.

Value of Tax : 20,00,000× 12% = 2,40,000
Interest - 18%.

a) Date of payment - 14th November, 2020

No. of days of delays : 21st September to 14th November,2020.

10+31+14 = 55 days .

Interest - 2,40,000 × 18% × 55 days/365 days.

Rs. 6,510

b) Date of Payment- 31st December 2020

No of days of delays : 21st September to 31st December

10+31+30+31 = 102 days

Interest - 2,40,000 × 18% × 102 days/ 365 days

Rs. 12072
 Registration Under GST law

22 - 23 + 24
22 23 24
4 8 12
threshold limit Not required to get registered Compulsory registration

Section 22

1) Supplier whose Aggregate Turnover exceeds

Rs. 20 lakhs (Normally) / Rs. 10 lakhs( for special category states).

2) Licensee under old Law

All the taxpayers who were registered under various earlier Indirect Tax laws ( excise, Service tax, VAT etc) are liable to be registered under GST
with effect from the appointed day i.e. 22-6-2017.when CGST came into force.
from, Supplier To, Head office
3) Any transferee of business ( will include change in ownership due to death)
tax invoice
4) Transferee under a scheme ( Amalgamation/De-merger) 200000 input tax value of Supply 10,00,000
20,00,000 HO Mumbai ISD Total service availed
10 lakh gst @18% - 1,80,000 Add: GST @18% 1,80,000
Section 24 - Compulsory Registration in certain cases: 11,80,000
CE3NORI2TA2 branches Head office - Malad
1) Inter state Supplier of GOODS gj 5 lakh ECO
2) Casual Taxable Person making Taxable Supply up 10 branches i supplier of services
ECO 5(5)
3) NRTP ( Non Resident Taxable Person) mp 2 lakh Kandivali goregaon Thane Mulund ECO tvs u/s 52 Amazon
4) Payer of Reverse Charge ( Recipient) rj 3 lakh 2 3 4 1 supplier of goods through ECO Patanjali
5) Persons who are required to pay tax u/s 9(5) [ 3 ECO]
6) ECO required to collect TCS u/s 52. Amazon
7) Supplier who supply goods through ECO Patanjali Anjali ISD
8) Deductor of Tax (TDS u/s 51) 300 HO Mumbai CA (Tax = 1,00,000)
9) Supplier on behalf of another person e cash ledger TCS @1
10) Input Service Distributor (ISD) GJ UP PB
11) Supplier of OIDAR service ( Online Information and Database Access or Retrieval) 20,000 50,000 40,000
12) Any other Notified persons.

Sec 23 - Persons not liable for Registration.

sec 23(1) a) Any person engaged exclusively in the business of supplying goods or services
or both that are not liable to tax or wholly exempt from tax.

b) An agriculturist, to the extent of supply produce out of cultivation of land.

sec 23(2) Notified Persons

a) Person making only Reverse Charge supplies ( Supplier)

b) Inter state supplies of SERVICES upto 20/10 Lakhs.
c) Person engaged in Inter state Taxable Supplies of Handicraft/ Notified goods made
predominantly by Hand ( upto 20/10 lakh)
d) CTP - Inter state supply - Handicraft/Notified goods (upto 20/10 lakh)
e) Persons making supplies of SERVICES through an ECO [ other than supplies specified u/s 9(5)]
with aggregate Turnover upto rs 20/10 lakhs.
f) Persons exclusively engaged in supply of goods upto an aggregate Turnover of Rs. 40 lakhs.

Know your GSTIN (15 Digit) Alphanumeric

first two digit Next 10 digit Next digit Z last digit

state code PAN No. Total no. of registrations within check sum digit
the state. Default 'z'

Limits for Registration (State -Wise)

States with threshold limit States withh Threshold limit of States with Threshold limit of Rs. 20 lakh for Services and
of Rs. 10 lakh for both goods and services Rs. 20 lakh for both goods and services Rs. 40 lakh for Goods( person engaged exclusively in supply of goods)

Mizoram Sikkim Jammu amd Kashmir

Manipur Uttarakhand Assam
Tripura Meghalaya Himachal Pradesh
Nagaland
Puducherry All other states.
(Mizoram Me Teen Nagmani mila) Arunachal Pradesh
Telangana

(SUM - PAT)

Threshold limit for Registration for Suppliers of Notified Goods( PITA)

Rs. 10 lakh Rs. 20 lakh

Manipur Remaining states and Union Territories.

Mizoram
Nagaland
Tripura
ATO All India PAN Basis

HO Mumbai 6 lakh 20 registration ????

Prithviraj of Assam shoes 22 lakh No GJ 5 lakh
Pan masala 22 lakh Yes Manipur 1 lakh ATO = 13 lakh
services 22 lakh Yes UP 1 lakh
both goods and services 22 lkah Yes
HO Mumbai 6 lakh
GJ 5 lakh
Q no 4(a) Kanchan RJ 1 lakh registration = No
Liability for Registration UP 1 lakh

Months/ Years 2020 Taxable sales Tax-free sales Total T/O Cumulative turnover

April - June 2,50,000 14,00,000 16,50,000 16,50,000

July 2,00,000 2,60,000 4,60,000 21,10,000
August 1,00,000 6,50,000 7,50,000 28,60,000
September 4,00,000 2,80,000 6,80,000 35,40,000
October 2,50,000 7,50,000 10,00,000 45,40,000
November 4,500 3,26,000 3,30,500 48,70,500
December 7,000 84,000 91,000 49,61,500

Conclusion : Since the aggregate Turnover of Kanchal exceeds Rs. 20 lakh in July, 2020,
Kanchal is liable for Registration in July 2020.

State Turnover
MH 15,00,000 (15,00,000+7,00,000). 22,00,000
Karnataka 7,00,000

MH 9,00,000 (9,00,000+ 2,00,000) 11,00,000

Nagaland 2,00,000

FORM GST-REG 01
GST-REG 06

CTP NRTP

validity

advance deposit of tax 2,00,000 e-cash ledger

1,20,000 tax liability e-liability register

80,000 refund

NRTP GST REG-09

Section 25 procedure for Registration

gst.gov.in
GST REG-01 application for Registration
Part A part B
PAN
Mobile no
Email id

authentic within 3 days registration certificate issued

otp deemed Registered GST REG-06

within 30 days

CTP/NRTP at least 5 days prior to commencement of business

same state multiple branches single Registration

different states multiple Registration

PAN mandatory Exception NRTP

6 1-4-2020 registration adhar card authentic

every Registered person

rule 10 A bank account details

within 45 days of Registration

first return
WIE
Registration - effective?

within 30 days the date on which he becomes liable for Registration ex: to exceed 18 feb
12 march registration
after 30 days date of grant of Registration

1 -5-2021 liable for Registration

20-5-2021 taken Registration

Sec 26 Deemed Registration MH state

MHGST CGST
mh state CGST
mh cancelled CGST

Sec 27: special provisions relating to CTP/NRTP

registration validity max 90+ 90 days

advance tax

CTP NRTP
GST REG-01 GST REG-09

Sec 28: Amendment of Registration

Ex. Satish Associates 27avdf5678vh1Z8
application of amendment shall be filed within 15 days of change. ( GST REG-14) Registered Address : Malad East

gst.gov.in
 17 March address change = Marine Lines
Core areas ( NAP) Non core areas
within 15 days GST REG 14
po disagree - SCN within 15 days to reply within 7 days po agree PO = Within 15 days SCN , reply to be made within 7 days

reply not made reply made satisfactory

amendment rejected amendment accepted

29: Cancellation of Registration

Cancellation in case of default

1) acts or rule break
2) person paying tax u/S10 has not furnished returns for 3 consecutive tax period
3) person paying tax u/s 9 has not furnished returns for continuous period of 6 months .
4) voluntary Registration - not commenced business within 6 months from date of registration.
5) Registration - fraud

1) does not conduct any business from the declared place of business
fake invoices issue
violates the provisions of section 171
violates the provisions of rule 10 A
 Section 11/ 6 : Exemption from Tax
Import of sugar is exempt w.e.f 22-5-2021 Notification PGBP
General Exemption Special Exemption From 10-4-2021, import of sugar is exempt till the next date notified. Religious religion exempt
Govt schemes govt services exempt
public interest room rent per day rs 1000 or more W.e.f. 10-4-2021
gst council Hindi name exempt
issue of notification issue of special order 21 - 10 entries
absolute or conditional income tax gift 50,000 taxable 22- 10 revise + 10 entries
applicable for all assessee less than 50000 exempt 23- 20 revise + 10 govt exempt
govt schemes exempt
Agricultural income from land in india exempt Religious ceremony
exempt
Ex. : exemption sachin Tendulkar public interest exempt
Services by RBI Absolute exemption
goods/ services normally taxable
Hotel, below rs. 1000
import of car taxable hotel inn declared tariff is below rs 1000 999
actual tariff below rs 1000 5000
Sachin Tendulkar special order exemption 90 transactions UK actual tariff is equal to or below rs 1000
Hotel Declared tarrif
10 transactions in a day 5000 per day 900 rs per day
Exempt Goods not in syllabus next day - 10 ex revise + next 10 transactions actual tariff
next day - 20 transaction revise + 10 transactions declared tarrif 1200 per day
Exempt Services : actual tariff below rs 1000 actual tariff 900 per day
80 transaction actual tariff equal to or below 1000 per day
Entity registered u/s 12 AA of the Income-tax Act, 1961 ( NGO)

services by way of renting of residential dwelling for use as residence. declared tariff 900 per day
actual tariff 2500 per day
services by a hotel, inn, guest house, club or campsite, hotel inn guest equal to or below rs 1000 per day
having a actual tariff of a unit of accomodation is equal to or below rs. 1000 per day or equivalent
precincts of religious place
Actual tariff Declared tariff
4000 rs. AC - 900 rs. per day room below rs 1000 per day
halls below rs 10000 per day
shops below rs 10000 per month
declared tariff - below rs 1000
actual tariff - below rs 1000
Actual tariff - below or equal to 1000 upto 1,50,000

declared tariff Actual tariff

1200 per day 1000 rs per day Service = service means anything other than goods

Services by a PERSON by way of Shirdi Temple

a) conduct of any religious ceremony Siddhivinayak Temple
b) renting of precincts of a religious place
provided that, nothing contained in entry (b) of this exemption shall apply to:

I) renting of ROOMS where the charges are rs. 1000 or more per day. 999 rs per day exempt
ii) renting of premises, community halls, kalyanmandapam or open area, charges are rs. 10,000 or more per day. 9999 rs per day exempt
iii) renting of SHOPS or other spaces for business, charges rs. 10,000 or more per month. 9999 rs per month Govt scheme exempt
Hindi exempt

BANKS

Services by the RBI

Services by way of-

( Other than interest involved in credit card services)
sale or purchase of foreign currency

banks to banks
authorised dealer - authorised dealers
bank to authorised dealer

Pradhan Mantri Jan Dhan Yojana (Basic Saving Bank Deposit)

SBI basic Saving accountPMJDY

Services by a Veterinary clinic in relation to health care of animals or birds.

Services by way of
a) Health care services by a clinical establishment, an authorised medical practitioner or para-medics.
b) transportation of a patient in an ambulance

a) Plastic surgery / Cosmetic surgery

Rakhi Sawant - plastic surgery tax

new born baby - plastic surgery Exempt

accident plastic surgery exempt

services by way of collecting or providing news by an independent journalist, press trust of India, United news of India

Gangadhar hi shaktiman hai

Services by public libraries

GOODS AND SERVICE TAX NETWORK

services by an organiser to any person in respect of a business exhibition held outside India.

Services by way of sponsorship of sporting event

IPL

AGRICULTURE

services by way of fumigation in a warehouse of agricultural produce

services relating to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw materials.
a) agricultural operations like cultivation, harvesting, threshing, plant protection or testing
b) supply of farm labour
c) processes carried out at an agricultural farm
that operations should not alter the essential characteristics of agricultural produce
but make it only marketable for the primary market
d) renting or leasing of agro machinery or vacant land
e) loading, unloading,packing, storage or warehousing of agricultural produce.

intermediate production process

services by way of artificial insemination of livestock (other than 🐎)
Services by way of slaughtering of animals .
fruits and vegetables - pre- cooling, waxing, retail packing, labelling

Services by a Foreign diplomatic mission located in India

Services by GOVT.

Religious pilgrimage
Haj Committee
Kumaon Mandal Vikas Nigam Limited

Govt services by way of - passport, birth certificate, death certificate, visa, driving licence.

Natural resources

MOT Customs

RTI Act, 2005

Education and Training

Services provided - St Francis students, faculty staff

a) by an educational institution to its students, faculty and staff.
b) to an educational institution, by way of Supplier of Service supplying to St Francis
I) transportation of students, faculty and staff.
ii) catering services including mid day meal
iii) security or cleaning or housekeeping
iv) relating to admission to, or conduct of examination by such institution
v) supply of online educational journals or periodicals.
GTA Taxable RCM
proviso:
registered personunregistered person Cg
sg GST reg
transportation of students provided to Dalmia degree college . taxable exempt local authority
transportation services provided to Sharda gyanpeeth international school under rcm

Services provided to a Recognised sports body by single carriage upto 1500

a) An individual as a player, referee, umpire, coach or team manager single consignee upto 750
b) another recognised sports body.
Services by way of transfer of a going concern, as a whole or an independent part govt service

services provided by railways AC class

First class taxable
advocate or firms of advocates any person other than business entity
arbitral tribunal business entity second class exempt
senior advocate govt
road bus general public
upfront amount lease for more than 30 years exempt

ICWA June 2018 Ola uber taxable

Computation of Value of Taxable Supply

Particulars Amount

1. Service of transportation of passengers by vessels in National Waterways Nil

2. Service of transportation of passengers by Air conditioned stage carriage 25,00,000
3. Service of transportation of passengers by non air conditioned stage carriage Nil
4. service of transportation of passengers by contract carriage for tourism 20,00,000
5. service of transportation of passengers for Mumbai to Chennai port in a vessel
and such services is not for tourism purpose Nil
6. service of transportation of passengers in Metered Cab Nil
7. service of transportation of passengers in Radio Taxis 10,00,000
8. service of transportation of passengers in non AC Contract carriage Nil
9. service of transportation of passengers in ac contract carriage 15,00,000

VALUE OF TAXABLE SUPPLY 70,00,000

Note:
Renting of precincts of a religious place meant for general public, owned / managed by am entity registered
under section 12 AA of Income Tax Act, 1961 are exempt. However, exemption is not available if:

1. Charges for rented rooms are rs 1000 per day or more.

2. charges for rented community halls, kalyanmandapam, open space are rs 10,000 per day or more.
3. Charges for rented shops are rs 10000 or more per month.

indian company

actual expenditure (pe) 10,00,000

capital employed 25,00,000

cost of project 30,00,000

amt of deduction 1,50,000

a) Actual preliminary expe 10,00,000

b) 5% of COP/CE 1,50,000

5% of COP 30,00,000×5% 1,50,000

5% of CE 25,00,000×5% 1,25,000

5 equal installments
Satish &co. Neel & Co. 5 years
3 years
3rd year end S& N co. new co.
4 & 5 year deduction new co.

firm after 3 years company

35DDA 4 th year
5 equal installments
first 3 years deduction
firm

ZCB FV 100 discount 20

issue 80
life 3 years

employer esi due date 30-8-2021

due date of filing of return

31-7-2021

employer deposited the money in esi on 15-8-2021

2019-20 2020-21

TDS 1st June, 2020

before 31-7-2020

30-5-2021 import machine 50,000$

Exchange rate 1$ = 70 rs
machine 50,000$× 70 rs.
35,00,000-40,000+60,000

3-6-2021 1st payment 20,000$

Exchange rate 1$= 72 rs.
2 rs - exchange difference
FEF
loss 2×20,000 40,000

2-7-2021 2nd payment 30,000$

Exchange rate 1$ = 68 rs.
2 rs - gain
FEF 30,000×2
60,000

40(b)

Remuneration to partners

allowed remuneration

first 3 lakh book profit

a) BP×90%

b) rs 1,50,000
WIH

Book profit 475000

actual remuneration 95000

175000
a) 2,70,000
60% allowed
b) rs 150,000 2,70,000
WIH
 Act section (delegated power)
Supplier ITC claim Parliamentary power Delegated power
70,000 1,00,000
Section 11 of CGST Act, 2017 Exemption list
matched ITC 70,000 100% Section 6 of IGST Act, 2017 Exemption list
unmatched itc 30,000 10% of matched ITC 7,000

Supplier ITC claim

95,000 1,00,000
9500
104500 matched ITC 95,000 100%
restricted to 5000unmatched itc 5,000 10%

sec 17 : consumer

outward Taxable Supply ×

17(1) goods /service business ITC

non business useITC not allowed

17(2)

common credit

taxable
input
exempted

42
TOTAL ITC
(-) Full itc
(-) permanently disallowed

common itc
(-) non business 5%
(-) exempt

10 lakh × exempt/ total supply

CG

cg 1 exclusively taxable
ITC allowed 43
cg2 non business/exempt
disallowed 43

cg3 taxable Full itc 5 years

exempt ÷ 60 months
monthly Itc

monthly Itc
(-) exempt proportionately

cg4 initially common use

exempt_________
after 6 months - taxable supply
ITC × 5% per quarter or part thereof full itc
add in liability ÷60
monthly credit

54 months

17(3) exemption proportionate exempt supply increase

value of exempt supply
value of rcm ITC decrease
 securities
land

17(4) 1 proportionately
2 50% itc
inter branch supplier
100% itc

section 18 Registered × taxable registered

0 lakh 10/20/40 lakh ITC
ITC ×
input ITC
wip
semi
finished
registered input sec 9
sec 10 add capital goods
ITC ×

registered unregistered
taxable exempt
sec 9 sec 10
ITC reversed

scope of total income

income R&OR R but NOR NRI

Indian Income taxable taxable taxable

Foreign income
a) Business/profession set up in india
controlled from India
Taxable taxable nt

b) other foreign income

taxable nt nt
 CAPITAL GAIN Mr. Prakash Shetye Grand parents
Statement of Long Term Capital Gain Father ( House purchse - 1950) zero
LTCG XXX 50,00,000 PY: 2019-20 AY: 2020-21
Less: Deductions Particulars Amount Amount Gifted that house to you in 2020 cost - ZERO
Sec . 54 (xx) (30,00,000)
Sec. 54EC (xx) (10,00,000) Full Value of Consideration 1,50,00,000 Mr. Satish
Taxable LTCG XXX 10,00,000 tax pay Less: Transfer expenses ( Brokerage) -50,000
Net Consideration 1,49,50,000 Full value of Consideration 1,00,00,000

Less: Indexed Cost of Acquisition (46,24,000) less: Indexed cost of acquisition zero
SEC. 54
Residential House Property transfer LTCA Cost of acquisition × CII for the year of transfer/CII for the year of acquisition

Since the property was acquired before 2001,

Residential house property purchase Construct therefore, Cost of acquisition will be 16,00,000
a) Actual cost 15,00,000 property - sundar March 2010 inheritance zero
GHAR KE BADLE GHAR or
b) Fair market value as on 1-4-200116,00,000 Father acquired 1990
NA
Time limit: purchase 1 year before or after 2 years from the date of transfer. whichever is higher actual cost
ex. transfer res house property 2019. FMV 5,00,000
2018 2021 16,00,000 × 289(2019-20)/ 100(2001-02)
cost of acquisition5,00,000
construct within 3 years from the date of transfer. Less: Indexed cost of Improvement

Amount Limit : NO LIMIT Cost of improvement × CII for the year of transfer/ CII for the year of improvement

a) For the year 2006-07

5,50,000 × 289(2019-20) / 122(2006-07) 13,02,869

New res house property purchased48,00,000
LTCG 50,00,000 50,00,000 b) For the year 2012-13
Less: sec. 54 (50,00,000) (48,00,000)
LTCG NIL 2,00,000 8,00,000 × 289(2019-20) / 200(2012-13) 11,56,000

c) For the year 2013-14

If LTCG is more than rs. 2 crore = purchase 1 res house property
12,00,000 × 289(2019-20) / 220(2013-14) 15,76,364 (40,35,233)
If LTCG is less than rs. 2 crore = option to purchase 2 res house property.
LONG TERM CAPITAL GAIN 62,90,767
Less: Deduction u/s 54
Mumbai 2.1 crore purchase of new residential house property (25,00,000)

Jamshedpur 50,00,000 TAXABLE LONG TERM CAPITAL GAIN 37,90,767

Delhi 60,00,000

Mr. Sunder
capital gain scheme account Statement of Long Term Capital Gain
PY:2019-20 AY:2020-21
Particulars Amount

SECTION 54 EC
Investment in specific Govt Bonds Full value of Consideration 50,00,000
Less: Transfer expenses -50,000
Amount Limit 50,00,000 rs per financial year. Net Consideration 49,50,000

Less: Indexed cost of Acquisition

Time limit within 6 months from the date of transfer of capital assets.
Cost of acquisition × CII for the year of transfer / CII for the year of acquisition

Specific Govt Bonds 5,00,000 × 289(2019-20) / 148(2009-10) (9,76,351)

NHAI RECL Less: Indexed cost of Improvement

Cost of improvement × CII for the year of transfer / CII for the year of improvement

date of transfer28-10-2019 6,00,000 × 289(2019-20) / 200(2012-13) (8,67,000)

investment in REC
20-3-2020 50 lakh (2019-20) LONG TERM CAPITAL GAIN 31,06,649
Less: Deduction u/s 54
investment in NHAI
16-4-2020 20(2020-21) purchase of new residential house property (15,00,000)

TAXABLE LONG TERM CAPITAL GAIN 16,06,649

Mr. Chandru
Statement of Long Term Capital Gain
PY: 2019-20 AY:2020-21
Particulars Amount

Full value of Consideration 1,00,00,000

Less: Transfer expenses NIL
Net Consideration 1,00,00,000
Less: Indexed cost of acquisition(17,29,328)

cost of acquisition× CII for the year of transfer/ CII for the year of acquisition
9,99,300 × 289(2019-20)/ 167(2010-11)

LONG TERM CAPITAL GAIN 82,70,672

Less: Deduction u/s 54 EC
investment in REC (50,00,000)
TAXABLE LONG TERM CAPITAL
32,70,672
GAIN

Gross sales 1,00,000

less: Sales return -20,000
Net sales 80,000

Gross salary 1,00,000

less: pf contribution -20,000
net salary 80,000

Allowances

Children Education allowance 100 rs per month ( max. 2 child)

Children Hostel allowance 300 rs per month ( max. 2 child)

Mr & Mrs. X

1 2
blessed with a boy
blessed with twins

1 2

blessed with twins boy

Mr. Satyam earns 20,000 rs as interest on saving account.

1st taxable under IFOS 20,000

Deduction u/ch VI A

Section 80 TTA 10,000

 Dalmia college
10% tds deduct

10,000
less: tds 10% 1000
9000

slab rate upto 5,00,000 nil

refund

Name of assessee: Manasi

taken mediclaim
herself and father61 years

mediclaim premium 32,000 Max. 25,000 rs deduction allowed

Father 35,000 senior citizen - max 30,000

32,000 35,000 67,000

25,000 30,000 55,000

land ( Malad) flat ( 1 crore)

Compulsory Acquisition

compensation 50 lakh 40 lakh ( enhanced compensation)

Interest
deduction (50%)
interest on enhanced compensation rec'd 1,50,000
deduction - 50% of 1,50,000
75,000

Q) Salary of M becomes due on 1st of next month and

it is paid on 7th of that month. for the ay 2020-21, PY :2019-20
the salary of M shall be taken from April 2019 to March 20
a) April 2019 to March 2020 b) March 2019 to Feb 2020 March april
c) April 2020 to March 2021 d) None of these. april may
may June
Gross Taxable Salary 250,000 June july
july
deduction u/s 16 August
standard deduction (50,000) 50,000 September
October
Nov
dec
Jan
gratuity rec'd 35,00,000 amount actually recd
35 lakh Feb March end
less: exempt 20 lakh 15/26 25 lakh March april next financial year
taxable gratuity15 lakh notified limit 20 lakh

Chaiwala & Sons

Profit & Loss Account
for the year ended 31 March 2020
Dr, ( Expenses/losses) Cr. (incomes & gains)

To, salary 100,000 allowed By, gross profit 1,00,000

To, printing & stationary 25,000 allowed by, interest income
2,00,000
(FD) disallowed
To, Rent 25,000 allowed
To, Electricity 25,000 allowed
To, Refreshments 10,000 disallowed
To, expenses ( daughters marriage)
25000 disallowed
To, Net Profit c/d 90,000

3,00,000 3,00,000

Tax paid on 90,000 unrecorded business expenses 10,000

additional information unrecorded business incomes 20,000

income direct relationshipnet profit

expenses indirect relationship

net profit

Profit from Business and Profession ( INDIRECT METHOD)

Net Profit as per Profit & Loss Account XXX

Add: Expenses Disallowed
refreshments
expense (daughters marriage)

Less: Incomes disallowed

Interest income

Less: unrecorded expenses

Add: unrecorded incomes

XXX
Net income from business/profession

Direct Method

business incomes

Less: Business Expenses

net profit

Bad debts
personal frnds , family not rcd
business debtors not rcd

provision for bad debts Disallowed

Dividend/ income UTI or MF Only Interest expenses

20% of dividend income

shares loan Interest 50,000 rs.

30,000
Dividend income
2,00,000 rs.
less: Deduction u/s 57
Interest -40,000
1,60,000
Additional Condition 6(6)
1) should be resident for 2 years or more during last 10 PY
19-20 Skip
18-19 189 Resident
17-18 200 resident
16-17 160 resident
15-16 234
14-15 200
13-14 78
12-13 245
11-12
10-11
09-10

2) Days of stay 730 days or more in last 7 PY.

 PGBP

P&L A/C
Dr Cr
To, Expenses xxx By, Incomes xxx
( Sec 30 to 37) (Sec 28/41)

To, Net Profit xxx

xxx xxx

proviso

assets acquired and put to use for less than 180 days
in same year

2019-20 half rate

2019-20 acuired

2020-21 put to use less than 180 days

Full rate

PGBP Direct method receipt and payment a/c

indirect method income and expenditure

P&L ac

p&l ac
dr cr
Expenses income

business expenses business income

salary

non business expenses non business incomes

personal exp 2,00,000 fd interest expenses net profit
To, Net Profit xx
income net profit
 xx xx
additional information
Unrecorded business expenses 15,000
Unrecorded business income 20,000

PGBP ( INDIRECT METHOD)

Net Profit as per Profit and Loss A/C XXX

Add: Disallowed expenses

Less: Disallowed incomes

Less: Unrecorded business expense

Add: Unrecorded business income

PGBP income

80CCD(1B) additional deduction upto rs 50,000

50,000 80CCD (1)

salary 10,00,000

contribution NPS 1,70,000

80CCD(1) 1,00,000
actual contribution1,70,000
10% of salary 1,00,000

lump sum premium paid 1,00,000

medical insurance policy 1/10/2019 4 years

policy expires on 30/09/2023

2019-20
 2020-21
2021-22
2022-23
2023-24

premium paid 100000/5 20,000

80 DDB

actual expenditure 60,000

sr citizen 1,00,000
WIL 60,000
less: Insurance claim -30,000
deduction 30,000

80G

b) Limited
100% 50%
FO HTC MOBILE
25,000 40,000

Total donation FOHTC MOBILE 65,000

10% of ATI 4,50,000 45,000

eligible donation wil 45,000

25000×100% = 25000 balance = 20,000

20,000×50% = 10,000

eligible deduction 35,000

ifos
Post office saving deposits 20,000
exemption : -3,500
16,500
deduction
80 TTA 10,000

Mr. Shyam 10 lakh transfer HUF ( 4 members)

taxable asset income
transferor

HUF partition 10 lakh asset/ 4

2.5 lakh Mr. Shyam
2.5 lakh Mrs. Shyam
Payment of Tax (Sec 49, 50, 51&52) ITC
sec 16 (1) 16(2) Jan Feb
49 - Make the Payment ITC 4 conditions invoice goods received
50 - interest on delayed payment registered person itc
on goods/services I) tax invoice 1st lot received last lot received
used in business
51 - TDS ii) Goods/ services recieved
52- TCS a) installment/lotsreceipt of last installment/lots ashok neeraj value of supply tax on same
b) bill to ship to model supplier recipient 250000 30,000
49 Payment of Tax govt
iii) tax payment made to Govt . tax ITC
GSTN Common portal supplier - tax payment- govt 30,000
registered Taxpayer 1 electronic register 180 days
2 electronic ledgers liability register FORM GST PMT- 01 iv) returns filed full payment ( value + GST)
E credit ledger FORM GST PMT-02 supplier
1 e register 2 e ledgers E cash ledger FORM GST PMT- 05 itc reverse
liability register E- cash ledger
E - credit ledger itc re- avail
CPIN stands for Common Portal Identification Number
normal monthly 20th of succeeding months (before payment) neeraj had paid the full amount
January 20th Feb
After payment CIN stands for Challan Identification Number ashok - No payment of tax to govt.
liability register liability under this Act

e credit ledger ITC details FORM GST PMT- 02

e cash ledger deposits made by taxpayer FORM GST PMT-05

recipient
e liability register
Minor Heads
Major Heads Ashish ashok
TAX INTEREST PENALTY FEES OTHERS Supplier recipient
IGST 10,000
CGST 2000
SGST 3000
UTGST 200
CESS

E cash ledger
TAX INTEREST PENALTY FEES OTHERS
IGST 3,000
CGST
SGST 2,000
UTGST
CESS

Deposit

Internet banking No limit

Credit/debit card
NEFT/RTGS
OTC (exception - max 10,000 per challan)

E credit ledger
TAX
IGST 7000
CGST
SGST 1000
UTGST
CESS

Computation of tax liability

IGST SGST
Tax payable 10,000 3,000
Less: ITC used ( E credit ledger) -7,000 -1,000
Net payable ( E cash ledger) 3,000 2,000

IGST credit - first utilise

order of utilisation of Credit

IGST CGST SGST/UTGST
IGST 1st 2nd ( In any manner)
CGST 4th 3rd X
SGST/UTGST 6th X 5th
inter state supply IGST

Intra state supply CGST+SGST

IGST CGST SGST/UTGST
Parent Children's

Q) Mr A has output tax liability of Rs. 1,00,000 towards CGST& SGST and Rs. 20,000 towards
IGST and also interest payable of rs 1800. Explain the manner of discharge of Tax
liability by Mr A in the following 2 independent cases:
1. Input tax credit available of CGST&SGST is Rs. 25000 each and IGST is Rs. 25,000.
2. Input tax credit is not available.

Solution: Case 1. Solution: Case 2.

IGST CGST SGST INTEREST IGST CGST SGST INTEREST
Electronic Liability Register 20,000 50,000 50,000 1,800 Electronic Liability Register 20,000 50,000 50,000 1,800

Electronic Credit ledger Electronic Cash Ledger Cash to be deposited 20,000 50,000 50,000 1,800

Input Tax Credit 25,000 25,000 25,000

Net output tax -5,000 25000 25000

liability

credit of IGST adjusted 5,000 -5,000

against CGST

Electronic Cash Ledger Cash to be deposited

Nil 20,000 25,000 1,800

Q 3(a) Mr. Alok

Computation of Net Tax liability

Particulars calculation IGST CGST SGST

Tax payable on Outward supply

sold goods to Pradeep in Mysore (Karnataka) (1,50,000× 12%) 18,000 Nil Nil
sold goods to M/s. Anil&co. in Pune(MH) (2,00,000×9%) Nil 18,000 18,000

Total Amount Payable 18,000 18,000 18,000

Less: Input Tax Credit Available

opening balance -75,000 -10,000 -10,000
ITC on Inward Supply
purchased goods from Vinod&co. Sangli (MH) (60,000×9%) Nil -5,400 -5,400
Services availed from Consultancy firm in Surat(GJ) (1,00,000×12%) -12,000 Nil Nil

Net Tax Liability -69,000 2,600 2,600

Less: Credit of IGST adjusted against CGST/SGST 5,200 -2,600 -2,600

Balance payable/carried forward -63,800 Nil Nil

Note:
1) ITC on Goods purchased for which no tax invoice has been received is not allowed.
Section 50 Interest on delayed payment Jan liability due date
20-2
value of Supply tax amount
Supplier govt. payment made on 5-6

int on delayed payment 18% p.a. no of days of delays

21-2 to 5-6

in relation to ITC 24% p.a.

due date of payment 11-5-2021

actual date of payment 5-7-2021 income tax direct

no of days of delay

DT IDT

Sec 51 : TDS (Govt ) salaried person

(Recipient)
to deduct the tax govt.( tax collector)
Employer( intermediary)
employee ( taxpayer)
slabs
supplier supply govt 10 lakh tds balance amount after tds

TDS applicable the value of Supply/contract value

exceeds rs. 2,50,000
proviso provisions
% TDS 1% CGST
1% SGST

BMC contract contractor

(Govt.) contract value 10,00,000 2,40,000

1st payment 1,00,000 TDS @2% 98,000

2000 Contractor
2nd payment 3,00,000 E-cash ledger

3rd payment 6,00,000

1) BMC (MH) road Contractor (MH)

( CGST &SGST) MH (location of supplier)
(place of supply)

same state Intra state supply

2) BMC (MH) road Contractor (GJ)

(IGST) (MH) (location of supplier)
Recipient (place of supply)

two different states

inter state Supply

3) DEPT (GOVT) Road Contractor (MH)

GJ (MH) (location of supplier)
Recipient (place of supply)
(CGST &SGST) Intra state supply

No TDS

Section 52: TCS

Electronic Commerce Operator
Amazon
supplier Customer
(Patanjali) Kesh Kanti
250 rs.
E - cash ledger
TCS @1%
2.5 rs.

Amazon ( own goods)

Amazon
Software
JK SHAH TCS

IGST CREDIT 14 lakh

IGST liability 7 lakh

CGST liability 8 lakh
SGST liability 5 lakh

E- liability register
IGST CGST SGST
E- liability register 7 lakh 8 lakh 5 lakh

E- Credit ledger (14 lakh ) Nil Nil

(7 lakh)
ITC of IGST adjusted against CGST
7 lakh (7 lakh) nil

E - cash ledger Nil 1 lakh 5 lakh

1,00,000 2% = 2000 98,000

e- cash ledger

18%

basic exemption 2,50,000

total income more than basic exemption

300000 interest

TDS
Jan due date
2000 7th Feb

actual payment made on 20 th feb

8 Feb to 20 Feb
 @1.5% for 2 months
2,000

1st quarter tds return

June 31St July

tds amount 4 August

@200 rs per day
600 800
Payment of Tax (Sec 49 to 52)

Sec 49 Make the payment

Sec 50 Interest
Sec 51 TDS deduct
Sec 52 TCS collect

FACEBOOK SIGN IN ACCOUNT

payment under GST Registered under GST

GSTN Portal
Electronic Records Digital form

2 ledgers E-Cash Ledger E-credit Ledger ITC (Credit available)

1 register E-Liability Register How much amount yoiu have to pay??????

E-Cash Ledger Cash available (Cash balance)

Mr. Radheshyam Registered dealer under GST

E-Liability Register SGST 10,000 E-Credit Ledger Credit TAX Used only for the payment of TAX
E-Credit ledger SGST 6,000 Input TAX
E- Cash Ledger 4,000 deposit

SGST Payable 10,000

Less :SGST Credit used -6,000
Balance (E-Cash Ledger) 4,000

Credit utilisation
IGST CGST SGST/UTGST Selfish
1
2 1 XX
2 XX 1

IGST tax liabilty 10,000 SGST Tax Liability 5,000

IGST Credit Available 15,000 Less : IGST Credit used 5,000
NIL
IGST tax liabilty 10,000
Less : IGST Credit used 10,000
NIL

IGST Credit available 5,000