CHAPTER 1 INTRODUCTION TO GST CHAPTER 2 CHARGE OF GST

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1 1 CHAPTER 1 INTRODUCTION TO GST CHAPTER 2 CHARGE OF GST REVERSE CHARGE IN CASE OF SERVICES {Section 9(3)} {GST To Be Payable Under Reverse Charge On Renting Of Immovable Property By Central/State Government, Union Territory Or Local Authority To A Registered Person} The reverse charge notifications for services have been amended to provide that in case of services supplied by the Central Government, State Government, Union Territory or local authority by way of renting of immovable property to a person registered under the CGST Act, GST will be payable under reverse charge by the recipient of service. {Full Flowchart On Taxability Of Government Services Given At The End Of Document} APPLICABILITY OF REVERSE CHARGE MECHANISM PROVISIONS GIVEN U/S 9(4) OF CGST ACT AND 5(4) OF IGST ACT DEFERRED TILL 30 TH SEPTEMBER CHAPTER 3 SUPPLY UNDER GST CHAPTER 4 COMPOSITION SCHEME RATES UNDER COMPOSITION SCHEME: Category Of Registered Persons Manufacturers Eligible For Composition Levy Supplier of Restaurant/Catering Services Any Other Supplier Eligible For Composition Levy (ie Traders) Total GST 1% Of Aggregate Turnover 5% Of Aggregate Turnover 1% Of Taxable Turnover Of Supplies Of Goods REGULAR TAX PAYING PERSON OPTING FOR COMPOSITION LEVY: A registered person who opts to pay tax under composition levy scheme shall electronically file an intimation in prescribed form on the common portal prior to the commencement of the financial year for which said option is exercised. Section 18(4) of CGST Act requires reversal of input tax credit when a registered person who has availed ITC switches to composition levy. The details of input tax credit reversed by such a person are required to be furnished in a prescribed form. Such details were earlier required to be furnished within 60 days from the commencement of the relevant financial year. The time period of 60 days has now been increased to 90 days.

2 2 CHAPTER 5 TIME OF SUPPLY NO GST ON ADVANCE RECEIVED AGAINST SUPPLY OF GOODS FOR ASSESSEES PAYING TAX UNDER REGULAR SCHEME: Provisions relating to payment of GST in advance on supply of goods have been withdrawn vide Notification No 66/2017-CT dated 15 th November 2017 in case of all registered persons other than those who have opted for composition levy. Consequently, a registered person who has not opted for composition levy is no longer required to pay GST on advances received towards goods yet to be supplied. In simple words, the time of supply for suppliers of goods (excluding composition suppliers) u/s 12(2) of CGST Act will be the date of issue of invoice/the last date by which invoice should have been issued. Where invoice for supply of goods is issued within the time frame prescribed u/s 31 of CGST Act, the time of supply shall be the date of issue of invoice. Where invoice for supply of goods is not issued within the time frame prescribed u/s 31 of CGST Act, the time of supply shall be the last date by which invoice should have been issued. CHAPTER 6 VALUE OF SUPPLY CHAPTER 7 INPUT TAX CREDIT CHAPTER 8 EXEMPTIONS UNDER GST 1) AMUSEMENT/ENTERTAINMENT SECTOR: OLD LAW: Services by way of right to admission to the following events provided consideration for admission does not exceed Rs 250 per person: circus, dance, or theatrical performance including drama or ballet; award function, concert, pageant, musical performance or any sporting event other than a recognised sporting event; and recognised sporting event. NEW LAW: Services by way of admission to a monument which has been declared as a protected monument under the Ancient Monuments and Archaeological Sites and Remains Act, 1958 or any of the State Acts for the time being in force. Services by way of right to admission to the following events provided consideration for admission does not exceed Rs 500 per person: circus, dance, or theatrical performance including drama or ballet; award function, concert, pageant, musical performance or any sporting event other than a recognised sporting event; recognised sporting event; and

3 planetarium. 3 2) EDUCATION SECTOR: MEANING OF EDUCATIONAL INSTITUTION : Educational institution means an institution providing services by way of: pre-school education and education up to higher secondary school or equivalent; education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force; and education as a part of an approved vocational education course. OLD LAW: Services provided: (a) BY an educational institution to its students, faculty and staff; (b) TO an educational institution, by way of: transportation of students, faculty and staff; catering, including any mid-day meals scheme sponsored by the Government; security, cleaning or house-keeping services performed in such educational institution; services relating to admission to, or conduct of examination by, such institution. However, nothing contained in clause (b) of this entry shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent. NEW LAW: {Full Flowchart On Taxability Of Education Related Services Given At The End Of Document} Services provided: (a) BY an educational institution to its students, faculty and staff; (b) TO an educational institution, by way of: transportation of students, faculty and staff; catering, including any mid-day meals scheme sponsored by the Government; and security, cleaning or house-keeping services performed in such educational institution; However, nothing contained in clause (b) of this entry shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent. Services provided by an educational institution by way of conduct of entrance examination against consideration in the form of entrance fee. {Meaning of educational institution as explained above applicable for the present entry as well} Services received by an educational institution in relation to admission in such institution or conduct of examination by such institution. {Meaning of educational institution as explained above applicable for the present entry as well} Services received by an institution providing a degree recognized under any Indian law in relation to subscription of online educational journals or periodicals. 3) AGRICULTURAL SECTOR: A new exemption has been introduced exempting services provided by a person by way of fumigation of agricultural produce in a warehouse.

4 4 4) PASSENGER TRANSPORTATION SECTOR: Exemption is available where services are provided to Central Government by way of transport of passengers, with or without accompanied belongings, by air, embarking from or terminating at a RCS (Regional Connectivity Scheme) airport, against consideration in the form of viability gap funding. Exemption was available for a period of 1 year from the date of commencement of operations of RCS airport as notified by the Ministry of Civil Aviation. The time period of 1 year has been increased to 3 years. 5) GOODS TRANSPORTATION SECTOR: The following exemptions have been introduced in connection with transportation of goods outside India on a temporary basis. As of now, this benefit is available only till 30 th September 2018: Transportation of goods by an aircraft from customs station of clearance in India to a place outside India. Transportation of goods by a vessel from customs station of clearance in India to a place outside India. 6) LEGAL SERVICES: Exemption is available where legal services are provided by an arbitral tribunal/an individual advocate/a senior advocate/a partnership firm of advocates to Central Government, State Government, Union Territory, local authority, governmental authority or government entity. 7) INSURANCE SECTOR: A new exemption has been introduced exempting services of life insurance provided or agreed to be provided by the Naval Group Insurance Fund to the personnel of Coast Guard under the Group Insurance Schemes of the Central Government. 8) RENTING OF MOTOR VEHICLES: A new exemption has been introduced exempting services of giving a motor vehicle on hire for transport of students, faculty and staff, to a person providing services of transportation of students, faculty and staff to an educational institution providing services by way of pre-school education and education upto higher secondary school or equivalent. 9) GOVERNMENT SECTOR: The following new exemptions have been introduced: Supply of service by a Government Entity to Central Government, State Government, Union territory, local authority or any person specified by Central Government, State Government, Union territory or local authority against consideration received from Central Government, State Government, Union territory or local authority, in the form of grants. Service provided by Fair Price Shops to Central Government, State Government or Union territory by way of sale of food grains, kerosene, sugar, edible oil, etc under Public Distribution System against consideration in the form of commission or margin.

5 5 10) SERVICES BY UNINCORPORATED BODY / NON-PROFIT ENTITY: OLD LAW: Service by an unincorporated body or a non-profit entity registered under any law for the time being in force, to its own members by way of reimbursement of charges or share of contribution: as a trade union; for the provision of carrying out any activity which is exempt from the levy of GST; or up to an amount of Rs 5,000 per month per member for sourcing of goods or services from a third person for the common use of its members in a housing society or a residential complex. NEW LAW: Service by an unincorporated body or a non-profit entity registered under any law for the time being in force, to its own members by way of reimbursement of charges or share of contribution: as a trade union; for the provision of carrying out any activity which is exempt from the levy of GST; or up to an amount of Rs 7,500 per month per member for sourcing of goods or services from a third person for the common use of its members in a housing society or a residential complex. 11) MISCELLANEOUS EXEMPTIONS: A new exemption has been introduced exempting services by way of providing information under the Right to Information Act, CHAPTER 9 REGISTRATION SPECIAL BENEFITS FOR SUPPLIERS OF HANDICRAFT PRODUCTS: Section 24 of CGST Act provides that a person making inter-state taxable supplies of goods is liable to be registered compulsorily under GST law irrespective of the threshold limit. However, persons making interstate supplies of handicraft goods have been exempted from obtaining registration vide Notification No 8/2017-IT dated provided the following conditions are satisfied: the aggregate value of such supplies computed on all India basis does not exceed Rs 20 lakhs in a financial year (Rs 10 lakhs in case of special category states other than J&K); and the person making inter-state taxable supplies of handicraft goods obtain a PAN and generate an e-way bill. Section 24 of CGST Act also requires a casual taxable person making taxable supplies to register compulsorily under GST law irrespective of the threshold limit. However, a casual taxable person making taxable supplies of handicraft goods has been exempted from obtaining registration vide Notification No 32/2017-CT dated provided the following conditions are satisfied: the aggregate value of such supplies computed on all India basis does not exceed Rs 20 lakhs in a financial year (Rs 10 lakhs in case of special category states other than J&K); and the casual taxable persons making taxable supplies of handicraft goods obtain a PAN and generate an e-way bill. Meaning of Handicraft Goods Handicraft goods means the products specified in the respective notifications, when made by the craftsmen predominantly by hand even though some machinery may also be used in the process.

6 6 APPLICATION FOR CANCELLATION OF VOLUNTARY REGISTRATION CAN BE CONSIDERED BEFORE ONE YEAR FROM THE EFFECTIVE DATE OF REGISTRATION: Rule 20 of CGST Rules prescribes the provisions for making an application for cancellation of registration. Proviso to Rule 20 laid down that an application for cancellation of registration by a person who has obtained voluntary registration cannot be considered before one year from the effective date of registration. The said proviso has been omitted to do away with such a condition. PERSONS MAKING SUPPLIES OF SERVICES THROUGH AN ECO (OTHER THAN SUPPLIES SPECIFIED UNDER SECTION 9(5) OF THE CGST ACT) AND HAVING AGGREGATE TURNOVER UP TO RS 20,00,000 EXEMPTED FROM OBTAINING REGISTRATION: Persons making supplies of services, other than supplies specified under section 9(5) of the CGST Act, through an electronic commerce operator, and having an aggregate turnover, to be computed on all India basis, not exceeding an amount of Rs 20 lakhs in a financial year, have been exempted from obtaining compulsory registration under the said Act. However, the aggregate value of such supplies, to be computed on all India basis, should not exceed an amount of Rs 10 lakhs in case of special category states other than Jammu & Kashmir. CHAPTER 10 DOCUMENTATION UNDER GST SINGLE INVOICE-CUM-BILL OF SUPPLY FOR TAXABLE AS WELL AS EXEMPTED SUPPLIES MADE TO AN UNREGISTERED PERSON: Where a registered person is supplying taxable as well as exempted goods or services or both to an unregistered person, a single invoice-cum-bill of supply may be issued for all such supplies. INSURER/BANKING COMPANY/FINANCIAL INSTITUTION, INCLUDING NBFC CAN ISSUE A CONSOLIDATED TAX INVOICE AT MONTH END FOR THE SUPPLY MADE DURING THAT MONTH: Where the supplier of taxable service is an insurer or a banking company or a financial institution, including a non-banking financial company, the said supplier shall issue a tax invoice/any other document in lieu thereof, by whatever name called, whether issued or made available, physically or electronically whether or not serially numbered, and whether or not containing the address of the recipient of taxable service, but containing other information as mentioned under rule 46 of the said rules. The aforesaid rule has been amended to provide that in place of a tax invoice, a consolidated tax invoice may be issued for the supply of services made during a month at the end of the month. CHAPTER 11 PAYMENT OF TAX

7 7 CHAPTER 12 RETURNS TAXPAYERS WITH ANNUAL AGGREGATE TURNOVER UP TO RS 1.5 CRORE TO FILE GSTR-1 ON QUARTERLY BASIS: In order to ease the compliance burden on small & medium taxpayers, the return filing mechanism has been shifted from monthly basis to quarterly basis for registered persons whose annual aggregate turnover is within the limit of Rs 1.5 crores. However, taxpayers whose annual agggreagte turnover exceeds Rs 1.5 crore shall continue to be governed by the monthly mechanism of return filing. LATE FEES PAYABLE {Section 47 of CGST Act}: FAILURE Failure To File The Following Returns Within The Applicable Due Date: Statement of Outward Supplies (Section 37) Return by a Composition Supplier (Section 39) Return by a NRTP (Section 39) Failure To File The Following Returns Within The Applicable Due Date: Statement of Inward Supplies (Section 38) Normal Return (Section 39) Final Return (Section 45) Failure To File The Annual Return Within The Due Date QUANTUM OF LATE FEE Lower Of The Following Two: Rs 25 For Every Day During Which Such Failure Continues; or Rs 5,000. Note: In case of Nil Return, amount of Rs 10 shall be taken instead of Rs 25 to calculate the late fee payable. Lower Of The Following Two: Rs 100 For Every Day During Which Such Failure Continues; or Rs 5,000. Lower Of The Following Two: Rs 100 For Every Day During Which Such Failure Continues; or 0.25% Of Turnover Of Registered Person In The State/Union Territory.

8 1 TAXABILITY OF SERVICES PROVIDED BY GOVERNMENT/LOCAL AUTHORITY Postal Department Services 2 3 Four specified services (speed post, express parcel post, life insurance and agency services): If such services are provided to govt bodies, such services are not taxable. If such services are provided to non-govt bodies, such services are fully taxable irrespective of the amount charged by SP; SP to pay GST under forward charge. Services other than the 4 listed above: Such services are not taxable irrespective of the status of SR. Vessel/Aircraft Related Services Transportation of Goods/Passengers Such services are fully taxable irrespective of the status of SR and the amount charged by SP. SP to pay GST under forward charge. 4 Any Other Service No GST is payable where such services are provided to another govt/local authority or non-business entities. Renting of immovable property: Such services are taxable if the SR is a business entity and the amount charged by the SP for provision of service exceeds Rs 5,000. If the amount charged doesn t exceed Rs 5,000, exemption is available under Exemption List. The turnover of the business entity for the preceding financial year is irrelevant. SR to pay GST under reverse charge. Any service other than renting of immovable property (eg security services, etc): Such services are taxable if the SR is a business entity whose turnover for the preceding financial year exceeds Rs 20 lakhs/ Rs 10 lakhs and the amount charged by the SP for provision of service exceeds Rs 5,000. If the turnover of the business entity during the preceding financial year doesn t exceed Rs 20 lakhs/rs 10 lakhs, exemption is available under Exemption List. If the amount charged doesn t exceed Rs 5,000, exemption is available under Exemption List. SR (ie business entities) to pay GST under reverse charge. Other Exemptions For Services Provided By Government/Local Authority: Following exemptions are available for services provided by govt/local authority irrespective of the status of SR and the amount charged by the SP: Issue of passport, visa, driving licence, birth certificate or death certificate. Services by way of: registration required under any Indian law; or testing, calibration, safety check/certification relating to protection/safety of workers, consumers or public required under any Indian law. Services by deputing officers after office hours or on holidays for inspection or container stuffing or such other duties in relation to importexport cargo on payment of merchant overtime charges. Services provided to Central Government, State Government, Union Territory administration under any training programme for which total expenditure is borne by Central Government, State Government, Union Territory administration.

9 All All rights rights reserved Preliminary & Tentative All All rights rights reserved Preliminary & Tentative EDUCATION SECTOR Outward Leg Students Faculty Education Related Services, Accommodation, Transportation, Picnic, etc No GST No GST Staff No GST Services To Any Person By Way Of Conduct Of Entrance Examination No GST Any Other Service To Any Other Person GST To Apply If No Other Exemption is Available Any Person GST To Apply If No Other Exemption is Available Inward Leg Any Person Any Person Any Person SPECIFIED SERVICES EXEMPT CATERING Services Services Relating To ADMISSION TRANSPORTATION Of Students, Faculty & Staff CLEANING Services HOUSEKEEPING Services Services Relating To Conduct Of EXAMINATION SECURITY Services SPECIFIED SERVICES EXEMPT Services Relating To ADMISSION Services Relating To Conduct Of EXAMINATION Services Relating To SUBSCRIPTION OF ONLINE EDUCATIONAL JOURNALS Or Periodicals SPECIFIED SERVICES EXEMPT Services Relating To ADMISSION Services Relating To Conduct Of EXAMINATION 1