CA SANJAY V.GAJRA 1 - The Chamber of Tax … -08 -2017 CA SANJAY V.GAJRA 11 -08 -2017 CA SANJAY...

11-08-2017 CA SANJAY V.GAJRA 1

What is Goods & Services Tax?

Destination based tax on consumption of goods &services

Leviable at all stages i.e. manufacture till finalconsumption

Value Added Tax

Set Off available of taxes paid at previous stage


WHAT IS SCOPE OF SUPPLY ?

Sec 7 of CGST Act,2017-

Supply includes-

all forms of supply of goods and/or services or both such assale, transfer, barter, exchange, license, rental, lease ordisposal made or agreed to be made for a consideration bya person in the course or furtherance of business

importation of services for a consideration whether or notin the course or furtherance of business;


SCOPE OF SUPPLY

Activities specified in schedule I (deemed supplywithout consideration)

Activities to be treated as supply of goods or supplyof services as referred to in Schedule II

Activities or transactions specified in Schedule III shallbe treated neither as a supply of goods nor a supply ofservices.


DEEMED SUPPLY (SCH I) Matters to be treated as supply even if made without

consideration

• Permanent transfer/disposal of business assets whereinput tax credit has been availed

• Goods or services supplied between related persons ordistinct persons, when made in the course of businessor furtherance of business

• Supply of goods by principal to agent where agent isinvolved in supply


DEEMED SUPPLY (SCH I) Supply of goods by agent to principal where agent

undertakes to receive such goods on behalf of the principal

Import of services by a taxable person from a relatedperson or from any of his other establishment outsideIndia, in the course or furtherance of business.


ACTIVITIES TO BE TREATED AS SUPPLY

OF GOODS OR SERVICES (SCH II)

Certain matters specified as goods or services(deemed)

Earlier laws had both Vat & Service Tax on certaintransactions

To settle unwanted litigations Sch II provides fordeeming fiction & thereby putting only one GSTpossible either as Goods or services on certaintransactions


ACTIVITIES TO BE TREATED AS SUPPLY

OF GOODS OR SERVICES (SCH II)

Few activities considered as supply of goods

Any transfer of the title in goods is a supply of goods;

Any transfer of title in goods under an agreement whichstipulates that property in goods shall pass at a future dateupon payment of full consideration as agreed;

Transfer of business assets whether or not for aconsideration;

Supply of goods by any unincorporated association or bodyof person to a member thereof for cash, deferred paymentor other valuable consideration


ACTIVITIES TO BE TREATED AS SUPPLY OF GOODS

OR SERVICES

Examples of Activities treated as supply of services

Any transfer of right in goods or of undivided sharein goods without the transfer of title thereof;

Any lease, tenancy, easement, licence to occupyland;

Any lease or letting out of the building includingcommercial, industrial or residential complex forbusiness or commerce either wholly or partly

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ACTIVITIES TO BE TREATED AS SUPPLY OF GOODS

OR SERVICES

Examples of Activities treated as supply of services

1. Renting of immovable property

2. Construction of a complex, building, civilstructure or a part thereof including a complexor building intended fro sale to a buyer wholly orpartly

3. Works contract as defined in clause 119 of Sec 2;

4. Supply of food or any other article for humanconsumption(other than alcoholic liquor)


NEITHER GOODS NOR SERVICES

(SCH III) Activities or transactions to be treated neither as

supply of goods nor as supply of services

• Services provided by an employee to the employer in thecourse of or in relation to his employment

• Service by any Court or Tribunal

• Functions performed by MP, MLA

• Services of Funeral, burial, crematorium or mortuaryincluding transportation of the deceased

• Sale of Land and subject to clause (b) of Para 5 ofSchedule II, sale of building.

• Actionable claims, other than lottery, betting andgambling.


PLACE OF SUPPLY

GST ---- Destination based tax. It will be on supply ofgoods or services or both, in India .Area upto 200nautical miles inside sea is India for the purpose ofGST

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PLACE OF SUPPLY

The Concept of Place of Supply is very important becauseGST is a destination and consumption based tax.

It is a crucial factor for settlement of funds , crossutilization of ITC on inputs and input services. So in suchscenario we need to understand the two types of the natureof supplies :

Intra State Supply and Inter State supply

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NATURE OF SUPPLY

INTRA-STATE SUPPLY: If the place of supply of goods and/or services is within the

state, then such supply is called Intra-State Supply andCGST and SGST/UTGST as the case may be , will be levied.

INTER-STATE SUPPLY : If the place of supply of goods and/or services is outside the

state from where supply is made, then such supply is calledInter-State Supply and IGST will be levied.

Import and Export of goods will also be an Inter-stateSupply

In case of services where any of the recipient or supplier ofservice is outside India will also be an inter state supply.


PLACE OF SUPPLY

Thus the levy of CGST/SGST/UTGST or IGSTcompletely depends upon the place of supply. So theclassification of supply either as intra-state or Inter-state is very important for levying of tax.

For understanding the concepts of place of supply, wehave to know the following terms which are veryimportant:

Recipient;

Location of the recipient of services

Location of the supplier of services11-08-2017 CA SANJAY V.GAJRA

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Definitions Recipient : As per section 2(93) of the CGST Act,2017 recipient of supply of goods or

services or both, means- (a) where a consideration is payable for the supply of goods or services or

both, the person who is liable to pay that consideration;

(b) where no consideration is payable for the supply of goods, the personto whom the goods are delivered or made available, or to whom possessionor use of the goods is given or made available ; and

(c) where no consideration is payable for the supply of a service, theperson to whom the service is rendered.

and any reference to a person to whom supply is made shall be construedas a reference to the recipient of the supply and shall include an agentacting on behalf of the recipient in relation to the goods or services orboth supplied


PLACE OF SUPPLY

PLACE OF SUPPLY

Location of the recipient of services

As per Sec.2(70) of CGST Act – location of the recipient ofservices means-

(a) where a supply is received at a place of business forwhich the registration has been obtained, the location ofsuch place of business;

(b) where a supply is received at a place other than theplace of business for which registration has beenobtained(a fixed establishment elsewhere), the location ofsuch fixed establishment;


PLACE OF SUPPLY

(c ) where a supply is received at more thanone establishment, whether the place ofbusiness or fixed establishment, the locationof the establishment most directlyconcerned with the receipt of the supply;and

(d) in absence of such places, the location ofthe usual place of residence of therecipient.


PLACE OF SUPPLY

LOCATION OF THE SUPPLIER OF SERVICES:

As per sec 2(71) of CGST Act- Location of the supplier ofservices means-

(a) where a supply is made from a place of business forwhich registration has been obtained, the location of suchplace of business;

(b) where a supply is made from a place other than theplace of business for which registration has beenobtained(a fixed establishment elsewhere), the location ofsuch fixed establishment;


PLACE OF SUPPLY

( c) where a supply is made from more thanone establishment, whether the place ofbusiness or fixed establishment, the locationof establishment most directly concernedwith the provisions of the supply; and

(d) in absence of such places, the location ofthe usual place of residence of thesupplier;


PLACE OF SUPPLY IN TERRITORIAL

WATERS

Sec.9 of the IGST Act

Where the location of supplier is in the territorialwaters, the location of such supplier; or

Where the place of supply is in the territorial waters,the place of supply,

shall be deemed to be in the coastal State or UT wherethe nearest point of the appropriate baseline is located.


Place of supply of goods other than supply of goods

imported into, or exported from India (Section 10)

Q . What is the place of supply where movement of goods are involved?

Ans. Place of supply involving movement of goods, is the location where movement of goods terminates for delivery to the recipient.




Location of supplier

Delivery ofgoods

Place ofsupply

Nature of Supply

Tax

Karnataka Andhra Pradesh

Andhra Pradesh

Inter state IGST

Karnataka Karnataka Karnataka Intra state SGST/CGST




Q . What is the place of supply where goods aredelivered to a person on the direction of a thirdperson?

Ans. If movement is at the instance of the third personto a recipient (by way of instruction or transfer ofdocuments of title to goods or otherwise), the place ofsupply will be principal place of business of thirdperson (i.e. address in Registration Certificate). Herethird person means the person who places the order.

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Bill to

A

PX

Transaction between A and P - place of supply is P Transaction between P and X is also supply.



(a) Transaction between supplier (A in above diagram)and third party (P in the above diagram).

Compare column 1 and 2




Location of supplier(1)

Location of third party(2)

Delivery ofgoods(3)

Place of supply(4)

Nature of supply(5)

Applicability of tax(6)

Karnataka Kerala Tamilnadu Kerala Inter state IGST

Karnataka Karnataka Kerala Karnataka Intra state CG &SG

Karnataka Kerala Karnataka Kerala Inter state IGST

Karnataka Kerala Kerala Kerala Inter state IGST




(b) Transaction between third party (P in the above diagram) and person actually receiving the goods (X in the above diagram). Compare column 2 and 3




Location of supplier(1)

Location of third party(2)

Delivery ofgoods(3)

Place of supply(4)

Nature of supply(5)

Applicability of tax(6)

Karnataka Kerala Tamilnadu Kerala Inter state IGST

Karnataka Karnataka Kerala Kerala Inter state IGST

Karnataka Kerala Karnataka Karnataka Inter state IGST

Karnataka Kerala Kerala Kerala Intra state CG&SG




Q . What is the place of supply where movement ofgoods is not involved?

Ans. Where supply does not involve movement ofgoods, the place of supply will be the location ofgoods at the time of delivery to the recipient.

Considering that location of supplier will belocation of goods, in this type of transaction therewill not be any inter-State supply since thelocation of supplier and place of supply will be inthe same State.




Example - where the job worker develops a mould for theproduction of goods for the principal and retains themould in his place itself for production of goods. Themould developed by the job worker is sold to the principalbut the same are retained by the job worker withoutcausing the movement of mould from job worker premiseto principal premise. In this case the place of supply wouldbe job worker premise.




Q. What is the place of supply in case of assembly orinstallation of goods at site?

Ans. The place of supply of goods in case of assemblyor installation of goods will be the place of installationor assembly .


Place of supply of goods imported into, or exported from

India (Section 11)

Q . What do you mean by import of goods into India?

Ans. Import of goods means bringing goods into Indiafrom a place outside India.

Q . In case of import of goods into India what is thelocation of supply of goods?

Ans. The location of the importer is the place of supplyof goods in case of import of goods into India


Place of supply of goods imported into, or exported from

India (Section 11)

Q. In case of export of goods from India, what is thelocation of supply of goods?

Ans. The location of supply of goods exported fromIndia shall be the location outside India.


Place of supply of services where the location of supplier

of service and the location of the recipient of service is in

India (Section 12)

Q . What is the place of supply of services?

Ans. In respect of services ,other than the specifiedservices, the place of supply of service would be asunder

(a) Where the service is provided to registered person,place of supply shall be location of such person




India (Section 12)

(b) Where the service is provided to a person otherthan registered person, location of the service shall be

(i) location of the recipient where the address onrecord exists

(ii) location of the supplier of services in other cases




India (Section 12)

Q . What is the place of supply of service in relation to animmovable property?

Ans. Any service provided directly in relation to animmovable property including services provided byarchitects, interior decorators, surveyors, engineers andother related experts or estate agents, any serviceprovided by way of grant of rights to use immovableproperty or for carrying out or coordination ofconstruction shall be the location at which theimmovable property is situated.




India (Section 12)

Eg - If Mr A of Ahmedabad, is constructing a house inMumbai and appoints Mr B of Delhi to providearchitectural services with regard proposed construction ofhouse located in Mumbai, then the place of supply of sucharchitectural services shall be Mumbai.

Q . What is the place of supply of accommodation services?

Ans. The location of the hotel, inn, guesthouse, homestay,club or campsite or a houseboat or vessel, shall be the placeof supply of service in relation to such accommodationservice.


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India (Section 12)

In case, the accommodation service is provided formultiple locations situated in different states or the vesselor boat located in more than one state at a time of supply ofservice, then the value of the supply of service shall betreated as made in each of the States in proportion to thevalue for services separately collected or determined in theterms of the contract or arrangement entered into. Inabsence of such contract or agreement, on such otherreasonable basis as would be prescribed.




India (Section 12)

Q . What will be the place of supply for restaurant andcatering services?

Ans. The place of supply for restaurant and cateringservices shall be the location where the services areactually performed .The section also refers to personalgrooming, fitness, beauty treatment, health servicesincluding cosmetic and plastic surgery




India (Section 12)

Q. What will be the place of supply of training services?

Ans. When a training service is provided to a registered person,the location of such registered person shall be the place ofsupply of training services. In case the service is provided to aperson other than a registered person, then the place of supplyshall be the location where the services are actually performed.

Example - If Mr A, of Bangalore, conducts training for employeesof S Ltd, a co. based out at New Delhi, in Shimla , then the placeof supply of training service shall be New Delhi if S Ltd is aregd.person. If S Ltd is not a regd.person, then place of supply oftraining service shall be Shimla




India (Section 12)

Q. What will be the place of supply of services foradmission to sporting events?

Ans. The place of supply of services provided by way ofadmission to cultural, artistic, sporting, scientific,educational, or entertainment events or amusement parkor any other place and services and ancillary thereto, shallbe the place where the event is actually held or where thepark or such other place is located. Hence, the services inrelation to admission to a sporting event shall be thelocation where the event is actually held.




India (Section 12)

Q . What will be the place of supply for services in relationto organising events?

Ans. Services in relation to organisation of events whenprovided to a registered person shall be the location ofsuch person. If the service is provided to a person notregistered, then the place of supply shall be the place whereevent is actually held.

Example, Cars Limited, an automobile company based outof Bangalore, appoints Events Private Limited, a companybased out of Mumbai providing event organisationservices, to provide services for organising an event oflaunching




India (Section 12)

their new vehicle in Indian market. The launch event isorganised at Mumbai, Delhi, Calcutta, Chennai by theEvent Private Limited. The place of supply of organisingsuch events shall be the location of Cars Limited, that isBangalore, if Cars Limited is a registered person.

If Cars Limited is not a registered person, then the place ofsupply of such event organisation services shall be thelocation where the events are actually held.




India (Section 12)

Q . What will be the place of supply of sponsorshipservices?

Ans. Assigning of sponsorship to any of the cultural,artistic, sporting, scientific, educational or entertainmentevent shall be the location of the registered person(recipient).

If the event is organised for an unregistered person, thenthe assignment of sponsorship shall be the location wherethe event is actually held.




India (Section 12)

Q . What is the place of supply of services by way oftransportation of goods?

Ans. The services by way of transportation of goodsprovided to a registered person shall be the location ofregistered person.

Such services if provided to a person other than aregistered person the location at which such goods arehanded over for their transportation.




India (Section 12)

Example, if E limited, a goods transport company based outat Chennai, provides transportation services to C Limited,an automobile company based out at Bangalore, formovement of their cars from the warehouse of C Limitedat Silvassa to Delhi, then the place of supply oftransportation services shall be Bangalore if C Limited is aregistered person.

If C Limited is not a registered person, then the place ofsupply of transportation services shall be Silvassa i.e thelocation where goods are handed over for transportation.




India (Section 12)

Q. What will be the place of supply of banking services andother financial services, stock broking services?

Ans. The place of supply of banking services shall be thelocation of the recipient of service as available on therecords of the supply of services. If the location of recipientof service is not on records of the supplier, the place ofsupply shall be the location of supplier of service.

Example, if Mr A, a resident of Mumbai opens a bankaccount in Mumbai with Bank Ltd, and submits hisresidence address in Mumbai that the place of supply ofbanking services shall be Mumbai.


Place of supply of services where the location of the

supplier or the location of the recipient is outside India

(Section 13)

Q . What is the place of supply of services where thelocation of the supplier or the location of the recipient isoutside India?

Ans. In respect of services other than the specified servicesthe place of supply of service shall be the location ofrecipient of service.

Where the location of recipient of service is not known, theplace of supply shall be the location of supplier of service.




(Section 13)

Q . What is the place of supply in respect of goods that arerequired to made physically available for providing theservice?

Ans. The place of supply of service in respect of goods thatare required to be made physically available by therecipient of service to the supplier of service shall be thelocation where the services are actually performed.




(Section 13)

Q . What is the place of supply of service in relation to a

Immovable property, hotel accommodation?

Ans. Place of supply service in relation to an immovableproperty, including services supplied in this regard byexperts and estate agents, supply of hotel accommodationby a hotel, inn, guest house, club or campsite, by whatever




(Section 13)

name called, grant of rights to use immovable property,services for carrying out or co-ordination of constructionwork, including architects or interior decorators, shall bethe place where the immovable property is located orintended to be located.

Example –If Mr A of New York, is constructing a house in New Yorkand appoints Mr B of Delhi to provide architecturalservices with regard proposed construction of houselocated in New York, then the place of supply of sucharchitectural services shall be New York.




(Section 13)

Q . What will be the place of supply for services in relationto admission to or organising events?

Ans. The place of supply of services supplied by way ofadmission to, or organization of, a cultural, artistic,sporting, scientific, educational, or entertainment event, ora celebration, conference, fair, exhibition, or similar events,and of services ancillary to such admission will be the placewhere the event is actually held.

Example: If Company X in India pays for conference to beattended by its CEO held in London, the place of supply ofservice will London.




(Section 13)

Q . Which are the specified services where the place ofprovision is the location of the service provider?

Ans. The place of provision of service is the location of theservice provider for the following services

(a) services supplied by a banking company, or a financialinstitution, or a non-banking financial company, toaccount holders;

(b) intermediary services;

(c) services consisting of hiring of means of transport otherthan aircrafts and vessels except yachts, upto a period ofone month.




(Section 13)

Example: If XY Bank in USA charges loan processingcharges to AB Co. located in India, the place of supply ofservice will be USA.

Q.What is the place of supply of services by way oftransportation of goods?

Ans. The place of supply of services of transportation ofgoods, other than by way of mail or courier will be the placeof destination of the goods.

Example: If PQ shipping Co. located in India charges oceanfreight charges for transport of goods to Germany for acustomer located in India, the place of supply of servicewill be Germany.


TIME OF SUPPLY

The place of supply determines which tax to be levied i.eeither IGST or CGST& SGST/UTGST The time of supply

fixes the point when the liability to charge GST arises. Italso indicates when a supply is deemed to have been made.

The GST law provides separate time of supply for goodsand services.


TIME OF SUPPLY

TYPES OF TAX EVENT

Central Excise Duty On removal of excisable goods

Service tax On provision of service or Advance Receipt

VAT On sale of Goods

GST On supply of Goods and Services


Taxable Event under Existing law and GST

TIME OF SUPPLY OF GOODS

Date of issue of invoice by the supplier; or

Last date on which he is required to issue the invoiceunder sec.31; or

Date on which the supplier receives the payment inrespect of such supply.


Time of Supply of Goods would be earliest of the following :-


Timing to issue invoice for supply of goods is

Before or at the time of removal of goods where supplyinvolves movement of goods

Before or at the time of delivery of goods or makingavailable to the recipient where supply does not involvemovement of goods.



Example ( Supply of Movable goods )


Sr.No

Date of removal

Date of Invoice

Date of Payment

Date of Entry in books of account

Time ofsupply

1. 30-06-2017 15-07-2017 28-06-2017 7-7-2017 28-06-2017

2 30-06-2017 15-07-2017 28-06-2017 22-06-2017 22-06-2017


Example ( Supply of Non-Movable goods )


Sr.No

Date of removal

Date of Invoice

Date of Payment

Date of Entry in books of account

Time ofsupply

1. 25-08-2017 31-10-2017 02-11-2017 04-11-2017 31-10-2017


Time of Supply in case of continuous supply of goods -

(a) where successive Statement of accounts are involvedshall be the before or at the time of each suchstatement issued

(b) Where Successive payments are involved then eachsuch payment is received.



Continuous supply of goods means a supply of goods which is provided or will be provided

Continuously or on recurrent basis,

Under a contract.

It may or may not be through means of a wire, cable, pipeline or other conduit

The supplier sends invoice to the recipient on a periodic basis.



Sale on approval or Sale on return :-

Where the goods (being sent or taken on approval or saleon return or similar terms) are removed before it isknown whether a supply will take place, the earlier of thefollowing will be time of supply-

time when it becomes known i.e when approval orconfirmation received that the supply has taken placeor

Six months from the date of removal of goods


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Where supplier of goods receives an amount uptoRs.1000 in excess of the amount indicated in the taxinvoice, the time of supply to the extent of such excessamount shall , at the option of the said supplier, be thedate of issue of invoice in respect of such excessamount.


TIME OF SUPPLY OF GOODSSUPPLY OF GOODS UNDER REVERSE CHARGE –In such cases it shall be the earliest of the following dates :

(a) the date of the receipt of goods , or

(b) the date on which the payment is made, it is the date onwhich the payment is entered in the books of the recipientof goods or the date on which payment is debited in bankaccount of recipient of goods or

(c) The date immediately following thirty days from the date ofissue of invoice by supplier

(d) In any other case date of entry in books of account ofrecipient of supply.



RESIDUAL PROVISION:

In in case it is not possible to determine the time of supplyunder sub section (2),(3) or (4) of section 12, then the time ofsupply shall be –

(a) In a case where a periodical return has to be filed, be thedate on which such return is to be filed, or

(b) In any other case, be the date on which theCGST/SGST/UTGST is paid.



Time of supply to the extent it relates to an addition in thevalue of supply by way of interest, late fees or penalty fordelayed payment of any consideration, shall be the date onwhich the supplier receives such addition in value.


TIME OF SUPPLY OF SERVICES

EVENT TIME OF SUPPLY

Invoice issued within prescribed time limit

(i) Date of issue of Invoice; or(ii) Date of receipt of payment

Invoice not issued within prescribed time limit

(i) Date of provision of services; or(ii) Date of receipt of payment

In any other case (i) Date on which recipient shows the receipt of service in his books of account

30 days is the time limit prescribed in all cases and 45 days for banking and financial institution ,from the date of supply of services


TIME OF SUPPLY OF SERVICES Time of supply under Reverse charge a. Other than associated enterprise

the time of supply shall be the earliest of the following dates:

i. The date on which the payment is made, it is the date onwhich the payment is entered in the books of therecipient of goods or the date on which payment isdebited in bank account of recipient

ii. The date immediately following sixty days from the dateof issue of invoice by supplier

iii. In any other case, the date of entry in books of account ofrecipient



Time of supply under Reverse charge

In case of supply of services by associated enterprise, where supplier is located outside India

the time of supply shall be the earliest of the following dates:

i. the date of entry in the books of account of recipient or

ii. the date of payment

Meaning of Associated enterprises shall have the samemeaning as assigned to it in section 92A of the Income TaxAct,1961.



Residual Provision- In case it is not possible to determine thetime of supply of under the provisions of sub sec (2),(3) or(4) of Section 13 , the time of supply shall be

(a) In a case where a periodical return has to be filed, be thedate on which such return is to be filed, or

(b) In any other case, be the date on which theCGST/SGST/UTGST is paid


TIME OF SUPPLY

The time of supply , in case where there is a change in theeffective rate of tax in respect of goods and /or services,shall be determined in the following manner:

(a) In case the taxable service has been provided before thechange in effective rate of tax :


TIME OF SUPPLYSCENARIO Events before

change in effective rate of tax

Events after change in effective rate of tax

Time of supply

1. Invoice issuedPayment received

All activitiesbefore change in rate of tax

Earlier of following: date of receipt of payment or date of issue of invoice

2. Invoice Issued Payment Received Date of issue of invoice

3. Payment received Invoice issued Date of receipt of payment


b) In case the goods and or services has been supplied after the change in effective rate of tax

SCENARIO

Events before change in effective rate of tax

Events after change in effective rate of tax

Time of supply

1. Invoice issued Payment Received Date of receipt of payment

2. Invoice IssuedPayment received

Supply is done change in effective rate

Either of the following:•Date of receipt of payment or•Date if issue of invoice

3. Payment received Invoice issued Date of issue of invoice


COMPOSITION SCHEME

The Registered Person shall be eligible to opt forComposition Scheme if –

The aggregate turnover in the preceding financial year isbelow fifty lakh rupees if he is registered under followingstates –

Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram,Nagaland, Sikkim, Tripura, Himachal Pradesh, and

in other states turnover limit should not exceed seventyfive lakh rupees.

He is not engaged in the supply of services. Only Hoteliersare allowed under service category.


COMPOSITION SCHEME

He is not engaged in making any supply of goods which arenot leviable to tax under this Act.

He is not engaged in making any inter-state outwardsupplies of goods.

He is not engaged in making any supply of goods throughan electronic commerce operator.

He is not a manufacturer of such goods as may be notifiedby the Government on the recommendations of theCouncil.


COMPOSITION SCHEME

As per the Notification No. 8/2017- Central Tax dt. 27th

June, 2017 the registered person shall not be eligible to optfor composition levy if such person is a manufacturer of thefollowing goods :


Sr No Tariff Item Description

1 2105 00 00 Ice cream and other edible ice, whether or not containing cocoa

2 2106 90 20 Pan masala

3 24 All goods, i.e. Tobacco and manufactured tobacco substitutes

COMPOSITION SCHEME

The person exercising the option to pay tax underComposition scheme shall comply with the followingconditions:

He is neither a casual taxable person nor a non-residenttaxable person;

The goods held in stock by him on the appointed day(i.e. on1st July,2017) have not been purchased in the course ofinter-State trade or commerce or imported from a placeoutside India or received from his branch situated outsidethe State or from his agent or principal outside the State,

The goods held in stock by him have not been purchasedfrom an unregistered supplier and where purchased, he paysthe tax.


COMPOSITION SCHEME

He shall pay tax on inward supply of goods or services orboth;

He shall mention the words composition taxable person,not eligible to collect tax on supplies at the top of the billof supply issued by him; and

He shall mention the words composition taxable personon every notice or signboard displayed at a prominent placeat his principal place of business and at every additionalplace or places of business.

The registered person paying tax may not file a freshintimation every year.


COMPOSITION SCHEME

Rate of tax of the composition levy


SI No Category of Registered Person

Rate of Tax

1 Manufacturer 2% (1% CGST & 1% SGST)

2 Hotelier 5% (2.5% CGST & 2.5% SGST)

3 Any Other Supplier 1% (0.5% CGST & 0.5% SGST)

CA SANJAY V.GAJRA

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CA SANJAY V.GAJRA

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