GST Amendments

CA VIVEK GABA Amendment in GST CS EXEC. & PROF.
Amendments
in
GST
(ALL Relevant updation till 30th June, 2018)
Relevant for :
CS EXECUTIVE & CS PROFESSIONAL
DECEMBER, 2018 EXAMS
Author : CA Vivek Gaba (TAX LOVE)
Source: CBEC Website, ICAI Supplement
IVidya Classes (7703880232) Page 1

SUPPLY UNDER GST
1. Clarification on taxability of printing contracts

Issue: Whether supply of books, pamphlets, brochures, envelopes, annual reports,
leaflets, cartons, boxes etc., printed with design, logo, name, address or other contents
supplied by the recipient of such supplies, would constitute supply of goods falling under
Chapter 48 or 49 of the First Schedule to the Customs Tariff Act, 1975 or supply of
services falling under heading 9989 of the scheme of classification of services annexed
to Notification No. 11/2017-CT(R)?
Clarification:
In the above context, it is clarified that supply of books, pamphlets, brochures,
envelopes, annual reports, leaflets, cartons, boxes etc. printed with logo, design, name,
address or other contents supplied by the recipient of such printed goods, are composite
supplies and the question, whether such supplies constitute supply of goods or services
would be determined on the basis of what constitutes the principal supply.
Principal supply has been defined in section 2(90) of the CGST Act as supply of goods
or services which constitutes the predominant element of a composite supply and to
which any other supply forming part of that composite supply is ancillary.
In case of printing of books, pamphlets, brochures, annual reports, and the like, where
only content is supplied by publisher or the person who owns the usage rights to the
intangible inputs while the physical inputs including paper used for printing belong to
printer, supply of printing [of the content supplied by recipient of supply] is the principal
supply and therefore such supplies would constitute supply of service falling under
heading 9989 of the scheme of classification of services.
In case of supply of printed envelopes, letter cards, printed boxes, tissues, napkins, wall
paper etc. falling under Chapter 48 or 49, printed with design, logo etc. supplied by the
recipient of goods but made using physical inputs including paper belonging to printer,
predominant supply is that of goods and the supply of printing of the content [supplied
by the recipient of supply] is ancillary to the principal supply of goods and therefore
such supplies would constitute supply of goods falling under respective headings of
Chapter 48 or 49 of the Customs Tariff.
[Circular No. 11/11/2017 GST dated 20.10.2017]
2. Clarification on Inter-state movement of various modes of conveyance, carrying goods

or passengers or for repairs and maintenance

Issue: Whether inter-state movement of various modes of conveyance carrying goods or

passengers or both, or for repairs and maintenance, between distinct persons as
specified in section 25(4) of the CGST Act [except in cases where such movement is
for further supply of the same conveyance], is leviable to IGST?
Clarification:
In the above context, the legal provisions in GST laws are as under:
a) As per section 24(1)(i) of the CGST Act, persons making any inter-State taxable
supply shall be required to be registered under this Act. [Persons making inter-State
supplies of taxable services and having an aggregate turnover upto ` 20 lakh in a
financial year have been exempted from obtaining compulsory registration under
section 24(i) of the CGST Act– Refer amendment given in point 1 under Chapter 9:
Registration].
b) As per section 25(4) of the said Act, a person who has obtained or is required to
obtain more than one registration, whether in one State or Union territory or more
than one State or Union territory shall, in respect of each such registration, be
treated as distinct persons for the purposes of this Act.
c) Schedule I to the said Act specifies situations where activities are to be treated as
supply even if made without consideration which also includes supply of goods or
services or both between related persons or between distinct persons as specified in
section 25, when made in the course or furtherance of business
d) Section 7(2) of the CGST Act envisages that activities or transactions undertaken by
the Central Government, a State Government or any local authority in which they are
engaged as public authorities, as may be notified by the Government on the
recommendations of the Council, shall be treated neither as a supply of goods nor a
supply of services.
Against the above background, the issue of inter-state movement of goods like
movement of various modes of conveyance, between distinct persons as specified in
section 25(4) of the said Act, not involving further supply of such conveyance, including
a) Trains,
b) Buses,
c) Trucks,
d) Tankers,
e) Trailers,
f) Vessels,

g) Containers,
h) Aircrafts
(a) carrying goods or passengers or both; or
(b) for repairs and maintenance, [except in cases where such movement is for further
supply of the same conveyance] was discussed in GST Council’s meeting held on
11th June, 2017 and the Council recommended that such inter-state movement shall
be treated ‘neither as a supply of goods or supply of service’ and therefore not be
leviable to IGST.
In view of above, it is clarified that the inter-state movement of goods like movement of
various modes of conveyance, between distinct persons as specified in section 25(4) of
the CGST Act including the ones specified at (i) to (viii) of para 3, may not be treated
as supply and consequently IGST will not be payable on such supply. However,
applicable CGST/SGST/IGST, as the case may be, shall be leviable on repairs and
maintenance done for such conveyance.
[Circular No. 1/1/2017 IGST dated 07.07.2017]
3. Clarification on inter-State movement of rigs, tools and spares, and all goods on
wheels (like cranes)
The issue of IGST exemption on inter-State movement of various modes of conveyance,
between distinct persons as specified in section 25(4) of the CGST Act, carrying goods
or passengers or both; or for repairs and maintenance, (except in cases where such
movement is for further supply of the same conveyance) was examined and a circular
1/1/2017 IGST dated 07.07.2017, was issued clarifying that such inter-state movement
shall be treated “neither as a supply of goods nor supply of service” and therefore
would not be leviable to IGST.
The issue pertaining to inter-state movement of rigs, tools and spares, and all goods on
wheels [like cranes] was discussed in GST Council’s meeting held on 10 November,
2017 and the Council recommended that Circular 1/1/2017 IGST shall mutatis mutandis
apply to inter-State movement of such goods, and except in cases where movement of
such goods is for further supply of the same goods, such inter-state movement shall be
treated ‘neither as a supply of goods or supply of service,’ and consequently no IGST
would be applicable on such movements.
It may be noted that applicable CGST/SGST/IGST, as the case maybe, is leviable on
repairs and maintenance done for such goods.

4. Clarification on leviability of GST on fee paid by litigants in the Consumer Disputes

Redressal Commissions and penalty imposed by or amount paid to these
Commissions
Issue: Is GST leviable on the fee/amount charged in the following situations/cases: –
1. A customer pays fees while registering complaints to Consumer Disputes Redressal
Commission office and its subordinate offices. These fees are credited into State
Customer Welfare Fund’s bank account.
2. Consumer Disputes Redressal Commission office and its subordinate offices charge
penalty in cash when it is required.
3. When a person files an appeal to Consumers Disputes Redressal Commission
against order of District Forum, amount equal to 50% of total amount imposed by the
District Forum or ` 25000/- whichever is less, is required to be paid.
Clarification:
Services by any court or Tribunal established under any law for the time being in force
is neither supply of goods nor services. Consumer Disputes Redressal Commissions
(National/ State/ District) may not be tribunals literally as they may not have been set up
directly under Article 323B of the Constitution. However, they are clothed with the
characteristics of a tribunal on account of the following: -
(i) Statement of objects and reasons as mentioned in the Consumer Protection Bill state
that one of its objects is to provide speedy and simple redressal to consumer
disputes, for which a quasijudicial machinery is sought to be set up at District, State
and Central levels.
(ii) The President of the District/State/National Disputes Redressal Commissions is a
person who has been or is qualified to be a District Judge, High Court Judge and
Supreme Court Judge respectively.
(iii) These Commissions have been vested with the powers of a civil court under CPC
for issuing summons, enforcing attendance of defendants/witnesses, reception of
evidence, discovery/production of documents, examination of witnesses, etc.
(iv) Every proceeding in these Commissions is deemed to be judicial proceedings as per
sections 193/228 of IPC.
(v) The Commissions have been deemed to be a civil court under CrPC.
(vi) Appeals against District Commissions lie to State Commission while appeals against
the State Commissions lie to the National Commission. Appeals against National
Commission lie to the Supreme Court.

In view of the aforesaid, it is hereby clarified that fee paid by litigants in the Consumer
Disputes Redressal Commissions are not leviable to GST. Any penalty imposed by or
amount paid to these Commissions will also not attract GST.
5. Clarification regarding GST on certain services

1) Issue: Whether activity of bus body building, is a supply of goods or services?
Clarification: In the case of bus body building there is supply of goods and services.
Thus, classification of this composite supply, as goods or service would depend on
which supply is the principal supply which may be determined on the basis of facts and
circumstances of each case.
2) Issue: Whether retreading of tyres is a supply of goods or services?

Clarification: In retreading of tyres, which is a composite supply, the pre-dominant
element is the process of retreading which is a supply of service. Rubber used for
retreading is an ancillary supply. Which part of a composite supply is the principal
supply, must be determined keeping in view the nature of supply involved. Value may
be one of the guiding factors in this determination, but not the sole factor. The primary
question that should be asked is what is the essential nature of the composite supply
and which element of the supply imparts that essential nature to the composite supply.
Supply of retreaded tyres, where the old tyres belong to the supplier of retreaded tyres,
is a supply of goods.
3) Issue: Whether Priority Sector Lending Certificates (PSLCs) are outside the purview
of GST and therefore not taxable?
Clarification: In Reserve Bank of India FAQ on PSLC, it has been mentioned that PSLC
may be construed to be in the nature of goods, dealing in which has been notified as a
permissible activity under section 6(1) of the Banking Regulation Act, 1949 vide
Government of India Notification dated 4 February, 2016. PSLC are not securities. PSLC
are akin to freely tradeable duty scrips, Renewable Energy Certificates, REP license or
replenishment license, which attracted VAT.
In GST there is no exemption to trading in PSLCs. Thus, PSLCs are taxable as goods.
GST payable on the certificates would be available as ITC to the bank buying the
certificates.


CHARGE OF GST
1. Turnover limit for composition levy enhanced
The turnover limit for composition levy has been enhanced from ` 75 lakh to ` 1 crore.
Thus, an eligible registered person, whose aggregate turnover in the preceding financial
year did not exceed ` 1 crore, may opt to pay tax under composition levy at prescribed
rates.
Further, in respect of nine out of eleven Special Category States, the turnover limit for
composition levy has been increased from 50 lakh to 75 lakh. The nine Special
Category States are:
(i) Arunachal Pradesh (ii) Assam (iii) Manipur (iv) Meghalaya (v) Mizoram (vi) Nagaland
(vii) Sikkim (viii) Tripura (ix) Himachal Pradesh
It may be noted that for the two remaining Special Category States viz., Jammu and
Kashmir and Uttarakhand, the turnover limit for composition levy will be ` 1 crore and
not ` 75 lakh.
[Notification No. 46/2017 CT dated 13.10.2017]
2. Rate of composition tax (CGST portion) payable by manufacturers under CGST Act
reduced to 0.5% from 1%
Notification No. 8/2017 CT dated 27.06.2017 prescribes the rate of composition amount
payable by suppliers who opt for composition scheme. Notification No. 1/2018 CT dated
01.01.2018 has amended Notification No. 8/2017 CT dated 27.06.2017 to reduce the
rate of composition tax (tax on turnover) payable by manufacturers from 1% to 0.5%.
Similar notification has been issued under SGST/UTGST Acts. Therefore, w.e.f.
01.01.2018, effective rate of tax under composition scheme for manufacturers has been
reduced from 2% to 1% (CGST + SGST). Thus, w.e.f. 01.01.2018, uniform rate of 1% is
applicable for both manufacturers and traders paying tax under composition scheme.
Further, Notification No. 8/2017 CT dated 27.06.2017 has also been amended to provide
that for other categories of composition suppliers (other than manufacturers and
restaurants), composition tax would be leviable as a percentage of turnover of taxable
supplies of goods. Prior to the amendment, the tax was payable as a percentage of the
turnover. Thus, in effect, for traders, exempted supplies would not be added in the
turnover for the purpose of levy of 1% composition levy.

Rule 7 of the CGST Rules which provides for rate of tax of the composition levy for
registered persons eligible for composition levy has also been amended retrospectively
vide Notification No. 3/2018 CT dated 23.01.2018 to bring it in line with the amendments
made in Notification No. 8/2017 CT dated 27.06.2017. With effect from 01.01.2018, rule
7 provides as under:
The category of registered persons, eligible for composition levy under section 10 and
the provisions of this Chapter, specified in column (2) of the Table below shall pay tax
under section 10 at the rate specified in column (3) of the said Table:
Category of registered persons Rate of tax
1. Manufacturers, other than manufacturers of 0.5% 1
of the turnover in the State or
such goods as may be notified by the Union territory
Government
2. Suppliers making supplies referred to in 2.5%3 of the turnover in the State or
clause (b) of paragraph 6 of Schedule II2 Union territory
3. Any other supplier eligible for composition 0.5%4 of the turnover of taxable
levy under section 10 and the provisions supplies of goods in the State or
of this Chapter Union territory
3. Clarification on eligibility of restaurant services for composition scheme

Section 172 of CGST Act empowers the Central Government to issue a general or
special order, on the recommendations of the GST Council, for removing any difficulty
that may arise in giving effect to the provisions of that Act.
In exercise of such power, the Central Government, on recommend ations of the
Council, for the removal of difficulties –
(i) has clarified that if a person supplies goods and/or services referred to in clause (b)
of paragraph 6 of Schedule II of the said Act (restaurant service) and also supplies
any exempt services including services by way of extending deposits, loans or
advances in so far as the consideration is represented by way of interest or
discount, the said person shall not be ineligible for the composition scheme under
section 10 of CGST Act subject to the fulfilment of all other conditions specified
therein.
(ii) has further clarified that in computing his aggregate turnover in order to determine
his eligibility for composition scheme, value of supply of any exempt services
1
Effective rate 1% (CGST+ SGST)
2
Restaurant service
3
4
including services by way of extending deposits, loans or advances in so far as

the consideration is represented by way of interest or discount, shall not be taken
into account.
[Order No. 01/2017 CT dated 13.10.2017]
4. GST to be payable under reverse charge on services provided by Overseeing

Committee members to RBI
The reverse charge notifications for services [Notification No. 13/2017 CT (R) dated
28.06.2017 & Notification No. 10/2017 IT (R) dated 28.06.2017] have been amended to
specify that for supply of services by the members of Overseeing Committee
constituted by the Reserve Bank of India to Reserve Bank of India, CGST & IGST
will be payable under reverse charge by the recipient of service i.e., Reserve Bank of
India.
[Notification No. 33/2017 CT (R) dated 13.10.2017 & Notification No. 34/2017 IT (R)
dated 13.10.2017]
5. 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 [Notification No. 13/2017 CT (R) dated
28.06.2017 & Notification No. 10/2017 IT (R) dated 28.06.2017] 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.
Further, “insurance agent” has been defined in the reverse charge notification as having
the same meaning as assigned to it in clause (10) of section 2 of the Insurance Act,
1938.
[Notification No. 3/2018 CT (R) dated 25.01.2018 & Notification No. 3/2018 IT (R)
dated 25.01.2018]
6. Clarification on classification of cut pieces of fabrics under GST (Unstitched Salwar

Suits)
It has been represented that before becoming readymade articles or an apparel, the
fabric is cut from bundles or thans and sold in that unstitched state. The consumers buy
these sets or pieces and get it stitched to their shape and size.

Fabrics are classifiable under chapters 50 to 55 of the First Schedule to the Customs
Tariff Act, 1975 on the basis of their constituent materials.
Mere cutting and packing of fabrics into pieces of different lengths from bundles or
thans, will not change the nature of these goods and such pieces of fabrics would
continue to be classifiable under the respective heading as the fabric.
7. Clarification regarding applicability of section 16 of the IGST Act, 2017, relating to

zero rated supply for the purpose of compensation cess on exports
Section 11(2) of the Goods and Services tax (Compensation to States) Act, 2017
provides that provisions of IGST Act, and the rules made thereunder, shall, mutatis
mutandis, apply in relation to the levy and collection of the cess leviable under section 8
of that Act on the inter-State supply of goods and services, as they apply in relation to
the levy and collection of integrated tax on such inter-State supplies under the said Act
or the rules made thereunder.
In view of the above, it has been clarified that provisions of section 16 of the IGST Act,
2017, relating to zero rated supply will apply mutatis mutandis for the purpose of
compensation cess (wherever applicable), that is to say that:
(a) Exporter will be eligible for refund of compensation cess paid on goods exported
by him [on similar lines as refund of IGST under section 16(3)(b) of the IGST,
2017]; or
(b) No compensation cess will be charged on goods exported by an exporter under
bond and he will be eligible for refund of input tax credit of compensation cess
relating to goods exported [on similar lines as refund of input taxes under section
16(3)(a) of the IGST, 2017].
[Circular No. 01/01/2017 CC dated 26.07.2017]
8. Reverse charge on procurements made from unregistered person s deferred till June
30, 20185
Notification No. 8/2017 CT (R) dated 28.06.2017 provided a general exemption from
CGST for all intra-state procurements made by a registered person from an unregistered
person. However, proviso to para 1 of the said notification laid down that exemption
would not be available if the aggregate procurements in a day from unregistered persons
exceeded ` 5000.
5
The said exemption has further been extended to 30.09.2018 vide Notification No. 12/2018 CT (R)
dated 29.06.2018 & Notification No. 13/2018 IT (R) dated 29.06.2018
Notification No. 38/2017 CT (R) dated 13.10.2017 omitted the said proviso with effect
from 13.10.2017 thereby exempting all intra-State procurements made by a registered
person from unregistered person, without any upper limit for daily procurements. The
exemption contained in Notification No. 8/2017 CT (R) shall, however, be available to all
registered persons only till 31.03.2018.
Further, inter-State procurements made by a registered person from an unregistered
person were also exempted from IGST till 31.03.2018 vide Notification No. 32/2017 IT
(R) dated 13.10.2017.
The above exemptions have been extended till 30.06.2018 vide Notifications No.
10/2018 CT (R) dated 23.03.2018 and Notification No. 11/2018 IT (R) dated
23.03.2018.

PLACE OF SUPPLY
1. Clarification on supply of satellite launch services by ANTRIX Corporation Ltd
Issue: How is the taxability of satellite launch services provided to both international and
domestic customers by ANTRIX Corporation Limited, which is a wholly owned
Government of India Company under the administrative control of Department of Space
(DOS), determined?
Clarification: In the above context, the legal provisions in GST laws are as under:
(a) Export of services is defined in IGST Act in section 2(6) where the following 5
conditions have been prescribed as necessary for a supply to qualify as export of
service:
(i) the supplier of service is located in Ind ia;
(ii) the recipient of service is located outside India;
(iii) the place of supply of service is outside India;
(iv) the payment for such service has been received by the supplier of service in
convertible foreign exchange; and
(v) the supplier of service and the recipient of service are not merely establishments
of a distinct person in accordance with Explanation 1 in section 8 of IGST Act;
One of the five conditions for a supply of service to be considered as “export of
service” is that the place of supply of service is outside India.
(b) Section 13(9) of the IGST Act provides that where location of supplier of services or
location of recipient of services is outside India, the place of supply of services of
transportation of goods, other than by way of mail or courier, shall be the place of
destination of such goods. However, where location of supplier and recipient of
services is in India, then the place of supply is governed by section 12(8) of the
IGST Act, which stipulates that place of supply will be the location of the recipient of
services provided he is registered; if not registered, then the place of supply will be
the place where goods are handed over for their transportation.
In view of the above, place of supply of satellite launch services supplied by ANTRIX
Corporation Limited to international customers would be outside India in terms of section
13(9) of IGST Act, 2017 and such supply which meets the requirements of section 2(6)
of IGST Act, thus constitutes export of service and shal l be zero rated in accordance
with section 16 of the IGST Act. Where satellite launch service is provided by ANTRIX
Corporation Limited to a person located in India, the place of supply of satellite launch
service would be governed by section 12(8) of the IGST Act and would be taxable under
CGST Act, UTGST Act or IGST Act, as the case may be.
[Circular No. 2/1/2017 IGST dated 27.09.2017]


TIME OF SUPPLY
1. No GST on advance received against supply of goods for assessees paying tax
under regular scheme
With effect from 13.10.2017, registered persons whose aggregate turnover in the
preceding financial year did not exceed ` 1.5 crore or the registered person whose
aggregate turnover in the year in which such person has obtained registration is likely to
be less than ` 1.5 crore and who did not opt for the composition levy h ad been
notified as the class of persons who should pay CGST on the outward supply of goods
at the time of supply as specified in section 12(2)(a) of the CGST Act including in the
situa tions attracting the provisions of section 14 of the said Act. These persons shall
accordingly furnish the details and returns as mentioned in Chapter IX of the said Act
and the rules made thereunder and the period prescribed for the payment of tax by suc
h class of registered persons shall be such as specified in the said Act.
In simple words, the time of supply for suppliers of goods having aggregate turnover up
to ` 1.5 crore in the preceding financial year (excluding composition suppliers) was the
time of issue of invoice. Thus, GST was not be leviable on advances received against
supply of goods in case of such suppliers.
Notification No. 40/2017 CT dated 13.10.2017 has been superseded by Notification No.
66/2017 CT dated 15.11.2017 to specify that all registered suppliers of goods
(excluding composition suppliers) shall pay CGST on the outward supply of goods at
the time of supply as specified in section 12(2)(a) of the CGST Act. In other words,
time of supply for all registered suppliers of goods (excluding composition suppliers)
will be the time of issue of invoice, without any turnover limit. This amendment has
become effective from 15.11.2017.

VALUE OF SUPPLY
1. Provisions introduced for computing proportionate value of advertisement services

attributable to different States or Union territories in the absence of any contract
between the supplier of service and recipient of services
[Relevant for CS PROFESSSIONAL]
As per section 12(14) of the IGST Act, 2017, place of supply of advertisement services
provided to the Central Government/ State Government/ Statutory body/ Local authority
meant for the State or Union Territory identified in contract or agreement is taken as
being in each of such States or Union territories. The value of such supplies is in
proportion to the services provided by way of dissemination in the respective States or
Union territories as may be determined in terms of the contract or agreement entered
into in this regard or, in the absence of such contract or agreement, on such other
basis as may be prescribed.
A new rule 3 has been inserted in IGST Rules to provide a mechanism to compute the
proportionate value of advertisement services attributable to different States or Union
territories in the absence of any contract between the supplier of service and recipient of
services.
The new rule provides as under:
a. In the case of newspapers and publications, the amount payable for publishing an
advertisement in all the editions of a newspaper or publication, which are published
in a State or Union territory, as the case may be, is the value of advertisement
service attributable to the dissemination in such State or Union territory.
Illustration: ABC is a government agency which deals with the all the advertisement and
publicity of the Government. It has various wings dealing with various types of publicity.
In furtherance thereof, it issues release orders to various agencies and entities. These
agencies and entities thereafter provide the service and then issue invoices to ABC
indicating the amount to be paid by them. ABC issues a release order to a newspaper
for an advertisement on ‘Beti bachao beti padhao’, to be published in the newspaper
DEF (whose head office is in Delhi) for the editions of Delhi, Pune, Mumbai, Lucknow
and Jaipur. The release order will have details of the newspaper like the periodicity,
language, size of the advertisement and the amount to be paid to such a newspaper.
The place of supply of this service shall be in the Union territory of Delhi, and the
States of Maharashtra, Uttar Pradesh and Rajasthan. The amounts payable to the Pune
and Mumbai editions would constitute the proportion of value for the state of

Maharashtra which is attributable to the dissemination in Maharashtra. Likewise, the

amount payable to the Delhi, Lucknow and Jaipur editions would constitute the proportion
of value attributable to the dissemination in the Union territory of Delhi and States of
Uttar Pradesh and Rajasthan respectively. DEF should issue separate State-wise and
Union territory-wise invoices based on the editions.
b. In the case of printed material like pamphlets, leaflets, diaries, calendars, T -shirts,
etc., the amount payable for the distribution of a specific number of such material in
a particular State or Union territory is the value of advertisement service attributable
to the dissemination in such State or Union territory, as the case may be.
Illustration: As a part of the campaign ‘Swachh Bharat’, ABC has engaged a company
GH for printing of 1,00,000 pamphlets (at a total cost of ` 1,00,000) to be distributed in
the States of Haryana, Uttar Pradesh and Rajasthan. In such a case, ABC should
ascertain the breakup of the pamphlets to be distributed in each of the three States
i.e., Haryana, Uttar Pradesh and Rajasth an, from the Ministry or department concerned
at the time of giving the print order. Let us assume that this breakup is 20,000, 50,000
and 30,000 respectively. This breakup should be indicated in the print order.
The place of supply of this service is in Haryana, Uttar Pradesh and Rajasthan. The
ratio of this breakup i.e., 2:5:3 will form the basis of value attributable to the
dissemination in each of the three States. Separate invoices will have to be issued
State-wise by GH to ABC indicating the value pertaining to that State, i.e., ` 20,000 -
Haryana, ` 50,000 - Uttar Pradesh and ` 30,000 - Rajasthan.
c. In the case of hoardings other than those on trains, the amount payable for the
hoardings located in each State or Union territory, as the case may be, is the value
of advertisement service attributable to the dissemination in each such State or
Union territory, as the case may be.
Illustration: ABC as part of the campaign ‘Saakshar Bharat’ has engaged a firm IJ for
putting up hoardings near the Airports in the four metros, i.e., Delhi, Mumbai, Chennai
and Kolkata. The release order issued by ABC to IJ will have the city -wise, location-
wise breakup of the amount payable for such hoardings.
The place of supply of this service is in the Union territory of Delhi and the States of
Maharashtra, Tamil Nadu and West Bengal. In such a case, the amount actually paid
to IJ for the hoardings in each of the four metros will constitute the value attributable

to the dissemination in the Union territory of Delhi and the States of Maharashtra,
Tamil Nadu and West Bengal respectively. Separate invoices will have to be issued
State-wise and Union territory-wise by IJ to ABC indicating the value pertaining to that
State or Union territory.
d. In the case of advertisements placed on trains, the breakup, calculated on the basis
of the ratio of the length of the railway track in each State for that train, of the
amount payable for such advertisements is the value of advertisement service
attributable to the dissemination in such State or Union territory, as the case may
be.
Illustration: ABC places an order on KL for advertisements to be placed on a train with

regard to the ‘Janani Suraksha Yojana’. The length of a track in a State will vary from
train to train. Thus, for advertisements to be placed on the Hazrat Nizamuddin Vasco
Da Gama Goa Express which runs through Delhi, Haryana, Uttar Pradesh, Madhya
Pradesh, Maharashtra, Karnataka and Goa, KL may ascertain the total length of the
track from Hazrat Nizamuddin to Vasco Da Gama as well as the length of the track in
each of these States and Union territory from the website www.indianrail.gov.in.
The place of supply of this service is in the Union territory of Delhi and States of
Haryana, Uttar Pradesh, Madhya Pradesh, Maharashtra Karnataka and Goa. The value
of the supply in each of these States and Union territory attributable to the
dissemination in these States will be in the ratio of the length of the track in each of
these States and Union territory. If this ratio works out to say 0.5:0.5:2:2:3:3:1, and the
amount to be paid to KL is ` 1,20,000, then KL will have to calculate the State wise
and Union territory-wise breakup of the value of the service, which will be in the ratio
of the length of the track in each State and Union territory.
In the given example, the State-wise and Union territory-wise breakup works out to
Delhi (` 5,000), Haryana (` 5,000), Uttar Pradesh (` 20,000), Madhya Pradesh (`
20,000), Maharashtra (` 30,000), Karnataka (` 30,000) and Goa (` 10,000). Separate
invoices will have to be issued State -wise and Union territorywise by KL to ABC
indicating the value pertaining to that State or Union territory.
e. In the case of advertisements on the back of utility bills of oil and gas companies,
etc., the amount payable for the advertisements on bills pertaining to consumers
having billing addresses in such States or Union territory as the case may be, is

the value of advertisement service attributable to dissemination in such State or

Union territory.
f. In the case of advertisements on railway tickets, the breakup, calculated on the

basis of the ratio of the number of Railway Stations in each State or Union
territory, when applied to the amount payable for such advertisements, shall
constitute the value of advertisement service attributable to the dissemination in
such State or Union territory, as the case may be.
Illustration: ABC has issued a release order to MN for display of advertisements
relating to the ‘Ujjwala’ scheme on the railway tickets that are sold from all the Stations
in the States of Madhya Pradesh and Chattisgarh.
The place of supply of this service is in Madhya Pradesh and Chattisgarh. The value
of advertisement service attribu table to these two States will be in the ratio of the
number of railway stations in each State as ascertained from the Railways or from the
website www.indianrail.gov.in.
Let us assume that this ratio is 713:251 and the total bill is ` 9,640. The breakup of
the amount between Madhya Pradesh and Chattisgarh in this ratio of 713:251 works
out to ` 7,130 and ` 2,510 respectively. Separate invoices will have to be issued State-
wise by MN to ABC indicating the value pertaining to that State.
g. In the case of advertisements over radio stations the amount payable to such radio
station, which by virtue of its name is part of a State or Union territory, as the case
may be, is the value of advertisement service attri butable to dissemination in such
State or Union terrritory, as the case may be.
Illustration: For an advertisement on ‘Pradhan Mantri Ujjwala Yojana’, to be broadcast

on a FM radio station OP, for the radio stations of OP Kolkata, OP Bhubaneswar, OP
Patna, OP Ranchi and OP Delhi, the release order issued by ABC will show the
breakup of the amount which is to be paid to each of these radio stations.
The place of supply of this service is in West Bengal, Odisha, Bihar, Jharkhand and
Delhi. The place of supply of OP Delhi is in Delhi even though the studio may be
physically located in another State. Separate invoices will have to be issued State wise
and Union territory-wise by MN to ABC based on the value pertaining to each State or
Union territory.

h. In the case of advertisement on television channels, the amount attributable to the

value of advertisement service disseminated in a State shall be calculated on the
basis of the viewership of such channel in such State, which in turn, shall be
calculated in the following manner, namely: -
(i) the channel viewership figures for that channel for a State or Union territory shall
be taken from the figures published in this regard by the Broadcast Audience
Research Council;
(ii) the figures published for the last week of a given quarter shall be used for
calculating viewership for the succeeding quarter;
(iii) where such channel viewership figures relate to a region comprising of more than
one State or Union territory, the viewership figures for a State or Union territory
of that region, shall be calculated by applying the ratio of the populations of that
State or Union territory, as determined in the latest Census, to such viewership
figures;
(iv) the ratio of the viewership figures for each State or Union territory as so
calculated, when applied to the amount payable for that service, shall represent
the portion of the value attributable to the dissemination in that State or Union
territory.
Illustration: ABC issues a release order with QR channel for telecasting an

advertisement relating to the ‘Pradhan Mantri Kaushal Vikas Yojana’ in the month of
November, 2017. In the first phase, this will be telecast in the Union territory of
Delhi, States of Uttar Pradesh, Uttarakhand, Bihar and Jharkhand.
The place of supply of this service is in Delhi, Uttar Pradesh, Uttarakhand, Bihar and
Jharkhand. In order to calculate the value of supply attributable to Delhi, Uttar
Pradesh, Uttarakhand, Bihar and Jharkhand, QR has to proceed as under —
(a) QR will ascertain the viewership figures for their channel in the last week of
September 2017 from the Broadcast Audience Research Council. Let us assume
it is 1,00,000 for Delhi and 2,00,000 for the region comprising of Uttar Pradesh
and Uttarakhand and 1,00,000 for the region comprising of Bihar and Jharkhand.
(b) Since the Broadcast Audience Research Council clubs Uttar Pradesh and
Uttarakhand into one region and Bihar and Jharkhand into another region, QR will
ascertain the population figures for Uttar Pradesh, Uttarakhand, Bihar and
Jharkhand from the latest census.
(c) By applying the ratio of the populations of Uttar Pradesh and Uttarakhand, as so
ascertained, to the Broadcast Audience Research Council viewership figures for

their channel for this region, the viewership figu res for Uttar Pradesh and
Uttarakhand can be calculated. Let us assume that the ratio of the populations of
Uttar Pradesh and Uttarakhand works out to 9:1. When this ratio is applied to the
viewership figures of 2,00,000 for this region, the viewership figures for Uttar
Pradesh and Uttarakhand work out to 1,80,000 and 20,000 respectively.
(d) Similarly, the breakup of the viewership figures for Bihar and Jharkhand can be
calculated. Let us assume that the ratio of populations is 4:1 and when this is
applied to the viewership figure of 1,00,000 for this region, the viewership figure
for Bihar and Jharkhand works out to 80,000 and 20,000 respectively.
(e) The viewership figure for each State works out to Delhi (1,00,000), Uttar Pradesh
(1,80,000), Uttarakhand (20,000), Bihar (80,000) and Jharkhand (20,000). The ratio
is thus 10:18:2:8:2 or 5:9:1:4:1 (simplification).
(f) This ratio has to be applied when indicating the breakup of the amount pertaining
to each State. Thus, if the total amount paya ble to QR by ABC is ` 20,00,000,
the State-wise breakup is ` 5,00,000 (Delhi), ` 9,00,000 (Uttar Pradesh) ` 1,00,000
(Uttarakhand), ` 4,00,000 (Bihar) and ` 1,00,000 (Jharkhand). Separate invoices
will have to be issued State -wise and Union territory-wise by QR to ABC
indicating the value pertaining to that State or Union territory.
i. In the case of advertisements at cinema halls the amount payable to a cinema hall
or screens in a multiplex, in a State or Union territory, as the case may be, is the
value of advertisement service attributable to dissemination in such State or Union
territory, as the case may be.
Illustration: ABC commissions ST for an advertisement on ‘Pradhan Mantri Awas Yojana’

to be displayed in the cinema halls in Chennai and Hyderabad. The place of supply of
this service is in the states of Tamil Nadu and Telangana. The amount actually paid to
the cinema hall or screens in a multiplex, in Tamil Nadu and Telangana as the case
may be, is the value of advertisement service in Tamil Nadu and Telangana respectively.
Separate invoices will have to be issued State-wise and Union territory-wise by ST to
ABC indicating the value pertaining to that State.
j. In the case of advertisements over internet, the amount attributable to the value of
advertisement service disseminated in a State or Union territory shall be calculated
on the basis of the internet subscribers in such State or Union territory, which in
turn, shall be calculated in the following manner, namely: -

(i) the internet subscriber figures for a State shall be taken from the figures
published in this regard by the Telecom Regulatory Authority of India;
(ii) the figures published for the last quarter of a given financial year shall be used
for calculating the number of internet subscribers for the succeeding financial year;
(iii) where such internet subscriber figures relate to a region comprising of more than
one State or Union territory, the subscriber figures for a State or Union territory of
that region shall be calculated by applying the ratio of the populations of that
State or Union territory, as determined in the latest census, to such subscriber
figures;
(iv) the ratio of subscriber figures for each State or Union territory as so calculated,
when applied to the amount payable for this service, shall represent the portion of
the value attributable to the dissemination in that State or Union territory.
Illustration: ABC issues a release order to WX for a campaign over internet

regarding linking Aadhaar with one’s bank account and mobile number. WX runs this
campaign over certain websites. In order to ascertain the state -wise breakup of the
value of this service which is to be reflected in the invoice issued by WX to ABC,
WX has to first refer to the Telecom Regulatory Authority of India figures for quarter
ending March, 2017, as indicated on their website www.trai.gov.in. These figures
show the service area wise internet subscribers. There are 22 service areas. Some
relate to individual States some to two or more States and some to part of one
State and another complete State. Some of these areas are metropolitan areas.
In order to calculate the State-wise breakup, first the State-wise breakup of the
number of internet subscribers is arrived at. (In case figures of internet subscribers of
one or more States are clubbed, the subscribers in each State is to be arrived at by
applying the ratio of the respective populations of these States as per the latest
census.). Once the actual number of subscribers for each State has been
determined, the second step for WX involves calculating the State-wise ratio of
internet subscribers. Let us assume that this works out to 8:1:2... and so on for
Andhra Pradesh, Arunachal Pradesh, Assam… and so on. The third step for WX will
be to apply these ratios to the total amount payable to WX so as to arrive at the
value attributable to each State. Separate invoices will have to be issued State -wise
and Union territory-wise by WX to ABC indicating the value pertaining to that State
or Union territory.

k. In the case of advertisements through short messaging service the amount

attributable to the value of advertisement service disseminated in a State or Union
territory shall be calculated on the basi s of the telecommunication (hereinafter
referred to as telecom) subscribers in such State or Union territory, which in turn,
shall be calculated in the following manner, namely: -
(a) the number of telecom subscribers in a telecom circle shall be ascertained from
the figures published by the Telecom Regulatory Authority of India on its website
www.trai.gov.in;
(b) the figures published for a given quarter, shall be used for calculating subscribers
for the succeeding quarter;
(c) where such figures relate to a telecom circle comprising of more than one State,
or Union territory, the subscriber figures for that State or Union territory shall be
calculated by applying the ratio of the populations of that State or Union territory,
as determined in the latest census, to such subscriber figures
(d) the ratio of the subscriber figures for each State or Union territory as so
calculated, when applied to amount payable for that service, shall represent the
portion of the value attributable to the dissemination in that State or Union
territory.
Illustration 1: In the case of the telecom circle of Assam, the amount attributed to
the telecom circle of Assam is the value of advertisement service in Assam.
Illustration 2: The telecom circle of North East covers the States of Arunachal
Pradesh, Meghalaya, Mizoram, Nagaland, Manipur and Tripura. The ratio of
populations of each of these States in the latest census will have to be determined
and this ratio applied to the total number of subscribers for this telecom circle so as
to arrive at the State-wise figures of telecom subscribers. Separate invoices will have
to be issued State-wise by the service provider to ABC indicating the value pertaining
to that State.
Illustration 3: ABC commissions UV to send short messaging service to voters asking

them to exercise their franchise in elections to be held in Maharashtra and Goa. The
place of supply of this service is in Maharashtra and Goa. The telecom circle of
Maharashtra consists of the area of the State of Maharashtra (excluding the areas
covered by Mumbai which forms another circle) and the State of Goa. When
calculating the number of subscribers pertaining to Maharashtra and Goa, UV has to-

(a) obtain the subscriber figures for Maharashtra circle and Mumbai circle and add
them to obtain a combined figure of subscribers;
(b) obtain the figures of the population of Maharashtra and Goa from the latest
census and derive the ratio of these two populations;
(c) this ratio will then have to be applied to the combined figure of subscribers so as
to arrive at the separate figures of subscribers pertaining to Maharashtra and
Goa;
(d) the ratio of these subscribers when applied to the amount payable for the short
messaging service in Maharashtra circle and Mumbai circle, will give breakup of
the amount pertaining to Maharashtra and Goa. Separate invoices will have to be
issued State-wise by UV to ABC indicating the value pertaining to that State.
Illustration 4: The telecom circle of Andhra Pradesh consists of the areas of the
States of Andhra Pradesh, Telangana and Yanam, an area of the Union territory of
Puducherry. The subscribers attributable to Telangana and Yanam will have to be
excluded when calculating the subscribers pertaining to Andhra Pradesh.
[Notification No. 12/2017 IT dated 15.11.2017]
2. New rule 31A introduced in CGST Rules to provide for valuation of supply of lottery
[Relevant for CS-PROFESSIONAL]
A new rule 31A has been inserted in CGST Rules to provide for valuation of supply of
lottery and actionable claim in the form of chance to win in betting, gambling or horse
racing in a race club. The rule provides that valuation of such supplies will be governed
by the specific provisions set out in the said rule and not by any other valuation rule.
Supply Value
Supply of lottery run by State Higher of the two amounts to be deemed as the value
Governments 100/112 of the face value of ticket
OR
100/112 of the price as notified in the Official Gazette
by the organising State
Supply of lottery authorised Higher of the two amounts to be deemed as the value
by State Governments 100/128 of the face value of ticket
OR
100/128 of the price as notified in the Official Gazette
by the organising State
Supply of actionable claim in 100% of the face value of the bet or the amount paid

the form of chance to win in into the totalisator

betting, gambling or horse
racing in a race club
Here,
(a) “lottery run by State Governments” means a lottery not allowed to be sold in any State
other than the organizing State;
(b) “lottery authorised by State Governments” means a lottery which is authorised to be sold
in State(s) other than the organising State also; and
(c) “Organising State” has the same meaning as assigned to it in clause (f) of sub-rule (1)
of rule 2 of the Lotteries (Regulation) Rules, 2010.

INPUT TAX CREDIT

1. Commissioner empowered to extend the time period for submission of quarterly
details of challans relating to job work under rule 45(3) of CGST Rules
Rule 45(3) of the CGST Rules lays down that the details of challans in respect of goods
dispatched to a job worker or received from a job worker or sent from one job worker
to another during a quarter shall be furnished for that period on or before the 25th day
of the month succeeding the said quarter.
Rule 45(3) has been amended to empower the CGST Commissioner or SGST/UTGST
Commissioner to grant extension of time period for furnishing of the said details. Thus,
now the said details may be furnished on or before the 25 th day of the month
succeeding the said quarter or within such further period as may be extended by the
Commissioner by a notification in this behalf.
2. In case of goods sent from one job worker to another job worker, the challan may be
issued either by the principal or the job worker sending the goods to another job
worker
Rule 45(1) of CGST Rules provided that the inputs, semi-finished goods or capital goods
shall be sent to the job worker under the cover of a challan issued by the principal,
including where such goods are sent directly to a job-worker.
The said sub-rule has been amended to provide that where the goods are sent from
one job worker to another job worker, the challan may be issued either by the principal
or the job worker sending the goods to another job worker.
Where the goods are sent by one job worker to another or are returned to the
principal, the challan issued by the principal may be endorsed by the job worker,
indicating therein the quantity and description of goods. Such endorsed challan may
be further endorsed by another job worker, indicating therein the quanti ty and
description of goods.

REGISTRATION
1. Persons making inter-State supplies of taxable services up to ` 20,00,000 exempted
from obtaining registration
The persons making inter-State supplies of taxable services and having an aggregate
turnover, to be computed on all India basis, not exceeding an amount of ` 20 lakh in
a financial year have been exempted from obtaining compulsory registration.
However, the aggregate value of such supplies, to be com puted on all India basis,
should not exceed an amount of ` 10 lakh in case of following “special category States”:
Arunachal Pradesh Assam
Manipur Meghalaya
Mizoram Nagaland
Sikkim Tripura
Himachal Pradesh Uttarakhand
It may be noted that State of Jammu & Kashmir, a special category State’, has opted
for ` 20 lakh threshold limit for registration.
[Notification No. 10/2017 IT dated 13.10.2017]
2. 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 ` 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 who is required to collect
tax at source under section 52 of the said Act, and having an aggregate turnover, to
be computed on all India basis, not exceeding an amount of ` 20 lakh 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 ` 10 lakh in case of “special category States” (as
mentioned in point 1 above).
It may be noted that State of Jammu & Kashmir, a special category State’, has opted
for ` 20 lakh threshold limit for registration.
Therefore, as a result of such amendment and the amendment given at point 1, all
service providers, whether supplying intra-State, inter-State or through e-commerce
operator, will be exempt from obtaining registration, provided their aggregate turnover
does not exceed ` 20 lakh (` 10 lakh in special category States except Jammu &
Kashmir).

3. Foreign Diplomatic Mission / UN Organization to be granted centralized UIN

Rule 17 of the CGST Rules has been amended to provide that the Unique Identity
Number granted to any specialised agency of the U N or any Multilateral Financial
Institution and Organisation notified under the United Nations (Privileges and Immunities)
Act, 1947, Consulate or Embassy of foreign countries shall be applicable to the territory
of India. Such centralized UIN will lessen the compliance burden on Foreign Diplomatic
Missions / UN Organizations.
4. Effective date of amendment in registration details can be earlier than the date of
submission of the application for amendment only when the Commissioner orders the
same for reasons to be recorded in writing
Rule 19 of the CGST Rules, 2017 prescribes the provisions for amendment of particulars
furnished in application for registration. The said rule has been amended to provide that
any particular of the application for registration shall not stand amended with effect from
a date earlier than the date of submission of the application for amendment on the
common portal except with the order of the Commissioner for reasons to be recorded in
writing and subject to such conditions as the Commissioner m ay, in the said order,
specify.
5. 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. The 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.


ACCOUNTS AND RECORDS

1. E-way Bill provisions made effective from 01.04.2018
Section 68 of the CGST Act stipulates that the Government may require the person in
charge of a conveyance carrying any consignment of goods of value exceeding such
amount as may be specified to carry with him such documents and such devices as
may be prescribed. Rule 138 of CGST Rules, 2017 prescribes e -way bill as the
document to be carried for the consignment of goods in certain prescribed cases.
What is e-way bill?
A waybill is a receipt or a document issued by a carrier giving details and instructions
relating to the shipment of a consignment of goods and the details include name of
consignor, consignee, the point of origin of the consignment, its destination, and route.
Electronic Way Bill (E-Way Bill) is a compliance mechanism wherein by way of a digital
interface the person causing the movement of goods uploads the relevant information
prior to the commencement of movement of goods and generates e -way bill on the
GST portal.
In other words, E-way bill is an electronic document generated on the GST portal
evidencing movement of goods.
What are the benefits of e-way bill?
Following benefits are expected from e-way bill mechanism:
(i) Physical interface to pave way for digital interface resulting in elimination of state
boundary check-posts
(ii) It will facilitate faster movement of goods
(iii) It will improve the turnaround time of trucks and help the logistics industry by
increasing the average distances travelled, reducing the travel time as well as costs.
E-way Bill is generated electronically in Form GST EWB 01 on the common portal. It is
important to note here that the Common GST Electronic Portal for furnishing electronic
way bill is www.ewaybillgst.gov.in [managed by the National Informatics Centre, Ministry
of Electronics & Information Technology, Government of India] whereas the Common
GST Electronic Portal for facilitating registration, payment of tax, furnishing of returns
and computation and settlement of integrated tax is www.gst.gov.in [managed by the
Goods and Services Tax Network, a company incorporated under the provisions of
section 8 of the Companies Act, 2013] as notified vide Notification No. 9/2018 CT dated
23.01.2018. The facility of generation, cancellation, updation and assignment of e -way
bill shall be made available through SMS to the supplier, recipient and the transporter,
as the case may be.

E-way Bill can be generated through various modes like Web (Online), Android App,
SMS, using Bulk Upload Tool and API based site to site integration etc.
E-way bill system has been introduced for inter-State movement of goods across the
country from 01.04.2018. For intra-State movement of goods, e-way bill system has been
introduced in a phased manner.
The provisions relating to E-way Bill, as contained in rules 138, 138A, 138B, 138C, and
138D [Chapter XVI] of the CGST Rules, 2017, have been substituted with new rules
vide Notification No. 12/2018 CT dated 07.03.2018 and have been made effective from
01.04.2018 [except rule 138(7)] vide Notification No. 15/2018 CT dated 23.03.2018.
These provisions are elaborated as under:
(1) When is e-way bill required to be generated? [Rule 138(1)]
Whenever there is a movement of goods of consignment value exceeding ` 50,000:
(i) in relation to a supply; or
(ii) for reasons other than supply; or
(iii) due to inward supply from an unregistered person,
the registered person who causes such movement of goods shall furnish the
information relating to the said goods as specified in Part A of Form GST EWB -01
before commencement of such movement.
It is important to note that “information is to be furnished prior to the commencement
of movement of goods” and “is to be issued whether the movement is in relation to
a supply or for reasons other than supply”.
Meaning of consignment value of goods
Consignment value of goods shall be the value:
 determined in accordance with the provisions of section 15,
 declared in an invoice, a bill of supply or a delivery challan, as the case may be,
issued in respect of the said consignment and
 also includes the Central tax, State or Union territory tax, integrated tax and cess
charged, if any, in the document and
 shall exclude the value of exempt supply of goods where the invoice is issued in
respect of both exempt and taxable supply of goods.
Special situations where e-way bill needs to be issued even if the value of the
consignment is less than ` 50,000:
(i) Inter-State transfer of goods by principal to job-worker
Where goods are sent by a principal located in one State or Union territory to a
job worker located in any other State or Union territory, the e -way bill shall be

generated either by the principal or the job worker, if registered, irrespective of

the value of the consignment [Third proviso to rule 138(1)].
(ii) Inter-State transfer of handicraft goods by a person exempted from obtaining
registration
Where handicraft goods* are transported from on e State or Union territory to
another State or Union territory by a person who has been exempted from the
requirement of obtaining registration [under clauses (i) and (ii) of section 24], the
e-way bill shall be generated by the said person irrespective of the value of the
consignment [Fourth proviso to rule 138].
*Handicraft goods are the goods specified in Notification No. 32/2017-C.T. dated
15.09.2017 which exempts the casual taxable persons making inter-State taxable
supplies of such handicraft goods from obtaining registration.
(2) Information to be furnished in e-way bill:
An e-way bill Form GST EWB-01 contains two parts:
(i) Part A to be furnished by the registered person** who is causing movement of
goods of consignment value exceeding ` 50,000/- and
(ii) Part B (transport details) is to be furnished by the person who is transporting the
goods.
**However, information in Part-A may be furnished:
 by the transporter, on an authorization received from such registered person [First
proviso to rule 138(1)] or
 by the e-commerce operator or courier agency, where the goods to be
transported are supplied through an such e-commerce operator or a courier
agency [Second proviso to rule 138(1)].
(3) Who is mandatorily required to generate e-way bill?
 Where the goods are transported by a registered person - whether as
consignor or recipient of supply as the consignee (whether in his own
conveyance or a hired one or a public conveyance, by road), the said person
shall have to generate the e-way bill (by furnishing information in part B on the
common portal) [Rule 138(2)].
 Where the goods are transported by railways or by air or vessel, the e-way bill
shall be generated by the registered person, being the supplier or the recipient,
who shall, either before or after the commencement of movement, furnish,
information in part B on the common portal [Rule 138(2A)].
 Where the e-way bill is not generated by the registered person and the goods
are handed over to the transporter, for transportation of goods by road, the

registered person shall furnish the information relating to the transporter in Part B
on the common portal and the e-way bill shall be generated by the transporter on
the said portal on the basis of the information furnished by the registered person
in Part A [Rule 138(3)].
Above provisions can be summarised as under:

E-way bill is to be generated by the consignor or consignee (if transportation is being
done in own/hired conveyance or by railways by air or by vessel) or the transporter
(if the goods are handed over to a transporter for transportation by road). Where
neither the consignor nor consignee generates the e -way bill and the value of goods
is more than ` 50,000/- it shall be the responsibility of the transporter to generate it.
Other important points:
 Where the goods are transported by railways, the railways shall not deliver the
goods unless the e-way bill required under these rules is produced at the time of
delivery [Proviso to rule 138(2A)].
 The registered person or, the transporter may, at hi s option, generate and carry
the e-way bill even if the value of the consignment is less than ` 50,000 [First
proviso to rule 138(3)].
 Where the movement is caused by an unregistered person either in his own
conveyance or a hired one or through a transporter, he or the transporter may, at
their option, generate the e-way bill [Second proviso to rule 138(3)].
 Where the goods are supplied by an unregistered supplier to a recipient who is
registered, the movement shall be said to be caused by such recipient if the
recipient is known at the time of commencement of the movement of goods
[Explanation 1 to rule 138(3)].
(4) When is it not mandatory to furnish the details of conveyance in Part-B?
Explanation 2 to rule 138(3) stipulates that e-way bill is valid for movement of goods
by road only when the information in Part-B is furnished. However, details of
conveyance may not be furnished in Part-B of the e-way bill where the goods are
transported for a distance of upto 50 km within the State/Union territory:
 from the place of business of the consignor to the place of business of the
transporter for further transportation [Third proviso to rule 138(3)] or

 from the place of business of the transporter finally to the place of business of
the consignee [Proviso to rule 138(5)].
(5) Unique e-way bill number (EBN)
Upon generation of the e-way bill on the common portal, a unique e-way bill number
(EBN) shall be made available to the supplier, the recipient and the transporter on
the common portal [Rule 138(4)].
(6) Transfer of goods from one conveyance to another
Where the goods are transferred from one conveyance to another, the consignor or
the recipient, who has provided information in Part A, or the transporter shall, before
such transfer and further movement of goods, update the details of conveyance in
Part B of the e-way bill on the common portal [Rule 138(5)].
The consignor/recipient, who has furnished the information in Part A, or the
transporter, may assign the e-way bill number to another registered/enrolled
transporter for updating the information in Part B for further movement of the
consignment [Rule 138(5A)]. However, once the details of the conveyance have been
updated by the transporter in Part B, the consignor or recipient, as the case may be,
who has furnished the information in Part A shall not be allowed to assign the e-way
bill number to another transporter [Proviso to rule 138(5A)].
(7) Consolidated E-way bill
Where the consignor/consignee has not generated the e -way bill in Form GST
EWB-01 and the aggregate of the consignment value of goods carried in the
conveyance is more than ` 50,000, the transporter, except in case of transportation
of goods by railways, air and vessel, shall, in respect of inter-State supply, generate
the e-way bill in Form GST EWB-01 on the basis of invoice or bill of supply or
delivery challan, as the case may be, and may also generate a consolidated e-way
bill in Form GST EWB-02 on the common portal prior to the movement of goods
[Rule 138(7)].
However, where the goods to be transported are supplied through an e-commerce
operator or a courier agency, the information in Part A of Form GST EWB-01 may
be furnished by such e-commerce operator or courier agency [Proviso to rule 138(7)].
Thus, a consolidated E-way bill is generated when the transporter is carrying multiple
consignments in a single vehicle. Consolidated E -way bill allows the transporter to
carry a single document, instead of a separate document for each consignment in a
conveyance.
Consolidated EWB is like a trip sheet and it contains details of different e-way bills
in respect of various consignments being transported in one vehicle and these e –

way bills will have different validity periods. Hence, Consolidated EWB does not have
any independent validity period. Further, individual consignment specified in the
Consolidated EWB should reach the destination as per the validity period of the
individual EWB.
(8) Information submitted for e-way bill can be used for filing GST Returns
The information furnished in Part A of the e-way bill shall be made available to the
registered supplier on the common portal who may utilize the same for furnishing the
details in Form GSTR-1 [Rule 138(8)].
However, when the information has been furnished by an unregistered
supplier/unregistered recipient, he shall be informed electronically, if the mobile
number or the e-mail is available [Proviso to rule 138(8)].
(9) Cancellation of e-way bill
Where an e-way bill has been generated, but goods are either not transported or are
not transported as per the details furnished in the e-way bill, the e-way bill may be
cancelled electronically on the common portal within 24 hours of generation of the e
way bill [Rule 138(9)].
However, an e-way bill cannot be cancelled if it has been verified in transit in
accordance with the provisions of rule 138B [First proviso to rule 138(9)].
Further, unique number generated is valid for a period of 15 days for updation of
Part B [Second proviso to rule 138(9)].
(10) Validity period of e-way bill/consolidated e-way bill [Rule 138(10)]

Distance within country Validity period from relevant date*
1. Upto 100 km One day in cases other than Over
Dimensional Cargo**
2. For every 100 km or part One additional day in cases other than Over
thereof thereafter Dimensional Cargo
3. Upto 20 km One day in case of Over Dimensional Cargo
4. For every 20 km or part One additional day in case of Over
thereof thereafter Dimensional Cargo
*Relevant date means the date on which the e-way bill has been generated and the
period of validity shall be counted from the time at which the e -way bill has been
generated and each day shall be counted as the period expiring at midnight of the day
immediately following the date of generation of e -way bill.

**Over dimensional cargo means a cargo carried as a single indivisible unit and which
exceeds the dimensional limits prescribed in rule 93 of the Central Motor Vehicle Rules,
1989, made under the Motor Vehicles Act, 1988
Extension of validity period
Commissioner may, on the recommendations of the Council, by notification, extend the
validity period of an e-way bill for certain categories of goods as may be specified
therein.
Where, under circumstances of an exceptional nature, including trans -shipment, the
goods cannot be transported within the validity period of the e-way bill, the transporter
may extend the validity period after updating the details in Part B, if required.
(11) Acceptance of e-way bill

The details of the e-way bill generated shall be made available to the -
(a) supplier, if registered, where the information in Part A has been furnished by the
recipient/transporter; or
(b) recipient, if registered, where the information in Part A has been furnished by the
supplier/transporter,
on the common portal, and the supplier/recipient, as the case may be, shall
communicate his acceptance or rejection of the consignment covered by the e–way
bill [Rule 138(11)].
In case, the person to whom the information in Part-A is made available, does not
communicate his acceptance or rejection withi n the specified time, it shall be
deemed that he has accepted the said details. The time-limit specified for this
purpose is:
(i) 72 hours of the details being made available to him on the common portal
or
(ii) the time of delivery of goods,
whichever is earlier.
(12) E-way bill generated in one State is valid in another State
The e-way bill generated under this rule or under rule 138 of the Goods and
Services Tax Rules of any State or Union territory shall be valid in every State and
Union territory [Rule 138(13)].
(13) Situations where E-way Bill is not required to be generated
Notwithstanding anything explained above, n o e-way bill is required to be
generated in the following cases:
(a) where the goods being transported are the ones given below:

Description of Goods
1. Liquefied petroleum gas for supply to household and non –domestic exempted
category (NDEC) customers
2. Kerosene oil sold under PDS
3. Postal baggage transported by Department of Posts
4. Natural or cultured pearls and precious or semi-precious stones; precious
metals and metals clad with precious metal (Chapter 71)
5. Jewellery, goldsmiths’ and silversmiths’ wares and other articles (Chapter 71)
6. Currency
7. Used personal and household effects
8. Coral, unworked (0508) and worked coral (9601)]
(b) where the goods are being transported by a non-motorised conveyance
(c) where the goods are being transported from the customs port, airport, air cargo
complex and land customs station to an inland container depot or a container
freight station for clearance by Customs
(d) in respect of movement of goods within such areas as are notified under of rule
138(14)(d) of the State or Union territory G ST Rules in that particular State or
Union territory
(e) where the goods [other than de-oiled cake], being transported, are exempt from
tax vide Notification No. 2/2017 CT(R) dated 28.06.2017
(f) where the goods being transported are alcoholic liquor for human consumption,
petroleum crude, high speed diesel, motor spirit (commonly known as petrol),
natural gas or aviation turbine fuel
(g) where the supply of goods being transported is treated as no supply under
Schedule III of the Act
(h) where the goods are being transported –
(i) under customs bond from an inland container depot or a contain er freight
station to a customs port, airport, air cargo complex and land customs
station, or from one customs station or customs port to another customs
station or customs port, or
(ii) under customs supervision or under customs seal
(i) where the goods being transported are transit cargo from or to Nepal or Bhutan
(j) where the goods being transported are exempt from tax under Notification No.
7/2017 CT (R) 28.06.2017 [Supply of goods by the CSD to the Unit Run
Canteens or to the authorized customers and supply of goods by the Unit Run
Canteens to the authorized customers] and Notification No. 26/2017 CT (R)

21.09.2017 [Supply of heavy water and nuclear fuels by Department of Atomic

Energy to Nuclear Power Corporation of India Ltd. (NPCIL)]
(k) any movement of goods caused by defence formation under Ministry of defe
nce as a consignor or consignee
(l) where the consignor of goods is the Central Government, Government of any
State or a local authority for transport of goods by rail
(m) where empty cargo containers are being transported
(n) where the goods are being transported upto a distance of 20 km from the place
of the business of the consignor to a weighbridge for weighment or from the
weighbridge back to the place of the business of the said consignor subject to
the condition that the movement of goods is accompanied by a delivery challan
issued in accordance with rule 55
(14) Documents and devices to be carried by a person-in-charge of a conveyance
The person-in-charge of a conveyance shall carry
(a) the invoice or bill of supply or delivery challan, as the case may be; and
(b) a copy of the e-way bill in physical form or the e-way bill number in electronic
form or mapped to a RFID** embedded on to the conveyance [except in case of
movement of goods by rail or by air or vessel] in such manner as may be
notified by the Commissioner [Rule 138A(1)]. The Commissioner may, by
notification, require a class of transporters to obtain a unique RFID and get the
said device embedded on to the conveyance and map the e-way bill to the RFID
prior to the movement of goods [Rule 138A(4)].
**RFIDs are Radio Frequency Identification Device used for identification.
Invoice Reference Number in lieu of tax invoice
A registered person may obtain an Invoice Reference Number from the common
portal by uploading, on the said portal, a tax invoice issued by him in the prescribed
form and produce the same for verification by the proper officer in lieu of the tax
invoice and such number shall be valid for a period of 30 days from th e date of
uploading [Rule 138A(2)].
In the said case, the registered person will not have to upload the information in Part
A for generation of e-way bill and the same shall be auto-populated by the common
portal on the basis of the information furnished in the prescribed form [Rule 138A(3)].
Documents in lieu of e-way bill
Where circumstances so warrant, the Commissioner may, by notification, require the
person-in-charge of the conveyance to carry the following documents instead of the
e-way bill:

(a) tax invoice or bill of supply or bill of entry; or

(b) a delivery challan, where the goods are transported for reasons other than by
way of supply [Rule 138A(5)].
(15) Verification of documents and conveyances
The Commissioner or an officer empowered by him in this behalf may authorize the
proper officer to intercept any conveyance to verify the e -way bill in physical or
electronic form for all inter-State and intra-State movement of goods [Rule 138B(1)].
The Commissioner shall get RFID readers installed at p laces where the verification
of movement of goods is required to be carried out and verification of movement of
vehicles shall be done through such device readers where the e -way bill has been
mapped with the said device [Rule 138B(2)].
The physical verification of conveyances shall be carried out by the proper officer as
authorised by the Commissioner or an officer empowered by him in this behalf [Rule
138B(3)].
However, on receipt of specific information on evasion of tax, physical verification of
a specific conveyance can also be carried out by any other officer after obtaining
necessary approval of the Commissioner or an officer authorised by him in this
behalf [Proviso to rule 138B(3)].
(16) Inspection and verification of goods
A summary report of every inspection of goods in transit shall be recorded online
by the proper officer in Part A of specified form within 24 hours of inspection and
the final report in Part B of said form shall be recorded within 3 days of such
inspection [Rule 138C(1)].
Where the physical verification of goods being transported on any conveyance has
been done during transit at one place within the State/Union territory or in any other
State/Union territory, no further physical verification of the said conveyance shall be
carried out again in the State/Union territory, unless a specific information relating to
evasion of tax is made available subsequently [Rule 138C(2)].
(17) Facility for uploading information regarding detention of vehicle [Rule 138D]
Where a vehicle has been intercepted and detained for a period exceeding 30
minutes, the transporter may upload the said information in specified form on the
common portal.
(18) It may be noted that the expressions ‘transported by railways’, ‘transportation of
goods by railways’, ‘transport of goods by rail’ and ‘movement of goods by rail’ used
in the provisions discussed above does not include cases where leasing of parcel
space by Railways takes place.

2. Clarification regarding e-way bills

CBIC vide Press Release No. 144/2018 dated 31.03.2018 has clarified following issues
regarding the new e-way bill system:
1. Situation: Consider a situation where a consignor is required to move goods from
City X to City Z. He appoints Transporter A for movement of his goods. Transporter
A moves the goods from City X to City Y. For completing the movement of goods
i.e., from City Y to City Z, Transporter A now hands over the goods to Transporter
B. Thereafter, the goods are moved to the destination i.e. from City Y to City Z by
Transporter B. How would the e-way bill be generated in such situations?
Clarification: It is clarified that in such a scenario, only one e-way bill would be
required. Part A can be filled by the consignor and then the e-way bill will be
assigned by the consignor to Transporter A. Transporter A will fill the vehicle details,
etc. In Part B and will move the goods from City X to City Y.
On reaching City Y, Transporter A will assign the said e-way bill to the Transporter
B. Thereafter, Transporter B will be able to update the details of Part B. Transporter
B will fill the details of his vehicle and move the goods from City Y to City Z.
2. Situation: Consider a situation where a consignor hands over his goods for
transportation on Friday to transporter. However, the assigned transporter starts the
movement of goods on Monday. How would the validity of e-way bill be calculated
in such situations?
Clarification: It is clarified that the validity period of e-way bill starts only after the
details in Part B are updated by the transporter for the first time.
In the given situation, Consignor can fill the details in Part A on Friday and
handover his goods to the transporter. When the transporter is ready to move the
goods, he can fill the Part B i.e. the assigned transporter can fill the details in Part
B on Monday and the validity period of the e-way bill will start from Monday.
3. Clarification on issues in respect of maintenance of books of accounts relating to

additional place of business by a principal or an auctioneer for the purpose of
auction of tea, coffee, rubber etc.
Issue: As per the first proviso of section 35(1) of the CGST Act both the principal and
the auctioneer are required to maintain the books of accounts relating to their additional
place(s) of business in such places. However, principal and auctioneer face difficulties in
relation to maintaining books of accounts at each and every additional place of business

related to stock of goods like tea, coffee, rubber, etc. meant for supply through an
auction.
Whether both the principal as well as the auctioneer can be allowed to maintain the
books of accounts relating to the additional place(s) of business at their principal place
of business itself?
Clarification:
(a) The principal and the auctioneer of tea, coffee, rubber etc. are required to declare
warehouses where such goods are stored as their additional place of business. The
buyer is also required to disclose such warehouse as his additional place of
business if he wants to store the goods purchased through auction in such
warehouses.
(b) Both the principal and the auctioneer are required to maintain the books of accounts
relating to each and every place of business in that place itself as per the first
proviso to sub-section (1) of section 35 of the CGST Act. However, in case
difficulties are faced in maintaining the books of accounts, it is clarified that they
may maintain the books of accounts relating to the additional place(s) of business at
their principal place of business instead of such additional place(s).
(c) Such principal or auctioneer shall intimate their jurisdictional proper officer in writing
about the maintenance of books of accounts relating to additional place(s) of
business at their principal place of business.
(d) Further, the principal or the auctioneer shall be eligible to avail input tax credit (ITC)
subject to the fulfilment of other provisions of the Act and the rules made
thereunder.
It is further clarified that this Circular is applicable to the supply of tea, coffee, rubber,
etc. where the auctioneer claims ITC in respect of the supply made to him by the
principal before the auction of such goods and the said goods are supplied only through
auction.

RETURNS
Taxpayers with annual aggregate turnover up to ` 1.5 crore to file GSTR-1 on quarterly
basis and taxpayers with annual aggregate turnover greater than ` 1.5 crore to file
GSTR-1 on monthly basis
There have been many issues in the functioning of GSTN since it became operational.
Therefore, a simplified return in Form GSTR 3B was introduced in July, 2017 to help
businesses to file returns easily in the initial months of GST roll out. This was to be
followed with filing of returns -- GSTR - 1, 2 and 3.
Further, to ease the compliance requirements for small tax payers, the GST Council
allowed taxpayers with annual aggregate turnover up to ` 1.5 Crore to file details of
outward supplies in Form GSTR-1 on a quarterly basis and on monthly basis by
taxpayers with annual aggregate turnover greater than ` 1.5 Crore. The GST Council
also recommended to postpone the date of filing of Forms GSTR-2 (details of inward
supplies) and GSTR-3 (monthly return) for all normal tax payers, irrespective of turnover, till
further announcements are made in this regard.
The return process has still not been streamlined and the GST Council has extended
GSTR-3B filing requirement till the end of June, 20186.
[Notification Nos. 57 & 58/2018 CT dated 15.11.2017 as amended, Notification Nos. 17 &
18/ 2018 CT dated 28.03.2018 & Notification No. 16/2018 CT 23.03.2018]
6
GSTR-3B filing requirement has been further extended till March 2019 vide Notification No. 34/2018 CT dated
10.08.2018.
REFUNDS
1. Supplier of deemed export also enabled to file application for refund (other than
refund of IGST paid on goods exported out of India)
Earlier, only the recipient of deemed exports could file the application for refund under
third proviso to rule 89(1) of the CGST Rules. The said proviso has been amended to
also enable the supplier of deemed export supplies to file application for refund if the
recipient does not avail of input tax credit on such supplies and furnishes an undertaking
to the effect that the supplier may claim the refund .
2. Evidences to be produced by the supplier of deemed exports for claiming refund,

notified
Rule 89(2)(g) of the CGST Rules provides that where refund is on account of deemed
exports, the refund application shall be accompanied by a statement containing the
number and date of invoices along with such other evidence as may be notified in this
behalf, to establish that a refund is due to the applicant.
Now, the Central Government has notified the following evidences which are required to
be produced by the supplier of deemed export supplies for claiming refund, namely:
(i) Acknowledgment by the jurisdictional Tax officer of the Advance Authorisation (AA)
holder or Export Promotion Capital Goods (EPCG) Authorisation holder, as the case
may be, that the said deemed export supplies have been received by the said AA or
EPCG Authorisation holder, or a copy of the tax invoice under which such supplies
have been made by the supplier, duly signed by the recipient EOU that said deemed
export supplies have been received by it.
(ii) An undertaking by the recipient of deemed export supplies that no input tax credit on
such supplies has been availed of by him.
(iii) An undertaking by the recipient of deemed export supplies that he shall not claim the
refund in respect of such supplies and the supplier may claim the refund.
3. Provisions relating to Consumer Welfare Fund under rule 97 of CGST Rules

amended
Rule 97 of CGST Rules prescribing provisions relating to Consumer Welfare Fund has
been substituted with a new rule. The amended provisions are as under:

(1) All amounts of duty/CGST/ IGST/ UTGST/ cess and income from investment along
with other monies specified in section 12C(2) of the Central Excise Act, 1944, section
57 of the CGST Act, 2017 read with section 20 of the IGST Act, 2017, section 21 of
the UTGST Act, 2017 and section 12 of the GST (Compensation to States) Act,
2017 shall be credited to the Fund [Sub-rule (1)].
(2) An amount equivalent to 50% of the amount of IGST determined under section 54(5)
of the CGST Act, 2017, read with section 20 of the IGST Act, 2017, shall be
deposited in the Fund [Proviso to sub-rule (1)].
(3) Accounts of the Fund maintained by the Central Government shall be subject to audit
by the Comptroller and Auditor General of India [Sub -rule (3)].
(4) The following applicants can apply for a gran t from Consumer Welfare Fund:
(i) the Central Government or State Government;
(ii) regulatory authorities or autonomous bodies constituted under an Act of
Parliament or the Legislature of a State or Union Territory;
(iii) any agency or organization engaged in consumer welfare activities for a minimum
period of three years, registered under the Companies Act, 2013 or under any
other law for the time being in force;
(iv) village or mandal or samiti or samiti level co-operatives of consumers especially
Women, Scheduled Castes and Scheduled Tribes;
(v) an educational or research institution incorporated by an Act of Parliament or the
Legislature of a State or Union Territory in India or other educational institutions
established by an Act of Parliament or d eclared to be deemed as a University
under section 3 of the University Grants Commission Act, 1956 and which has
consumers studies as part of its curriculum for a minimum period of three years;
and
(vi) a complainant as defined under clause (b) of sub-section (1) of section 2 of the
Consumer Protection Act, 1986, who applies for reimbursement of legal expenses
incurred by him in a case instituted by him in a consumer dispute redressal
agency.
4. New rule 97A inserted in CGST Rules to provide for manual filing and processing for
refund applications
A new rule 97A has been inserted after rule 97 of CGST Rules to provide for manual
filing and processing for refund applications. The rule provides that in respect of any
process or procedure prescribed herein, any reference to electronic filing of an

application, intimation, reply, declaration, statement or electronic issuance of a notice,

order or certificate on the common portal shall, in respect of that process or procedure,
include manual filing of the said application, intimation, reply, declaration, statement or
issuance of the said notice, order or certificate in prescribed forms.

JOB WORK
1. Clarification on issues related to Job Work
Various issues relating to job work have been clarified vide Circular No. 38/12/2018
dated 26.03.2018 as under:
1) Scope/ambit of job work
The job worker is expected to work on the goods sent by the principal and whether
the activity is covered within the scope of job work or not would have to be
determined on the basis of facts and circumstances of each case. Further, it is
clarified that the job worker, in addition to the goods received from the principal, can
use his own goods for providing the services of job work.
2) Requirement of registration for the principal/ job worker

Registration for principal - It is important to note that the provisions of section 143
of the CGST Act are applicable to a registered person. Thus, it is only a registered
person who can send the goods for job work under the said provisions. It may also
be noted that the registered person (principal) is not obligated to follow the said
provisions. It is his choice whether or not to avail or not to avail of the benefit of
these special provisions.
Registration for job worker when they are located in the same State where the
principal is located or when they are located in a State different from that of the
principal - It may be noted that the job worker is required to obtain registration only
if his aggregate turnover, to be computed on all India basis, in a financial year
exceeds the specified threshold limit (i.e., ` 20 lakh or ` 10 lakh in case of special
category States except Jammu & Kashmir) in case both the principal and the job
worker are located in the same State.
Where the principal and the job worker are located in different States, the
requirement for registration flows from clause (i) of section 24 of the CGST Act,
which provides for compulsory registration of suppliers making any inter-State supply
of services. However, exemption from registration has been granted in case the
aggregate turnover of the InterState supply of taxable services does not exceed ` 20
lakh or ` 10 lakh in case of special category States except Jammu & Kashmir in a
financial year vide Notification No. 10/2017 – Integrated Tax dated 13.10.2017.
Therefore, it is clarified that a job worker is required to obtain registration only in
cases where his aggregate turnover, to be computed on all India basis, in a financial
year exceeds the threshold limit regardless of whether the principal and the job
worker are located in the same State or in different States.

3) Supply of goods by the principal from job worker’s place of business / premises
It is clarified that the supply of goods by the principal from the place of business /
premises of the job worker will be regarded as supply by the principal and not by
the job worker as specified in section 143(1)(a) of the CGST Act.
4) Movement of goods from the principal to the job worker and the documents and
intimation required thereof
(i) Where goods are sent by principal to only one job worker: The principal shall
prepare in triplicate, the challan in terms of rules 45 and 55 of the CGST Rules,
for sending the goods to a job worker. Two copies of the challan may be sent to
the job worker along with the goods. The job worker should send one copy of the
said challan along with the goods, while returning them to the principal. The
FORM GST ITC-04 will serve as the intimation as envisaged under section 143 of
the CGST Act, 2017.
(ii) Where goods are sent from one job worker to another job worker: In such cases,
the goods may move under the cover of a challan issued either by the principal
or the job worker. In the alternative, the challan issued by the principal may be
endorsed by the job worker sending the goods to another job worker, indicating
therein the quantity and description of goods being sent. The same process may
be repeated for subsequent movement of the goods to other job workers.
(iii) Where the goods are returned to the principal by the job worker: The job
worker should send one copy of the challan received by him from the principal
while returning the goods to the principal after carrying out the job work.
(iv) Where the goods are sent directly by the supplier to the job worker: In this
case, the goods may move from the place of business of the supplier to the
place of business/premises of the job worker with a copy of the invoice issued by
the supplier in the name of the buyer (i.e., the principal) wherein the job worker’s
name and address should also be mentioned as the consignee, in terms of rule
46(o) of the CGST Rules. The buyer (i.e., the principal) shall issue the challan
under rule 45 of the CGST Rules and send the same to the job worker directly
in terms of para (i) above.
In case of import of goods by th e principal which are then supplied directly from
the customs station of import, the goods may move from the customs station of

import to the place of business/premises of the job worker with a copy of the Bill
of Entry and the principal shall issue the challan under rule 45 of the CGST
Rules and send the same to the job worker directly.
(v) Where goods are returned in piecemeal by the job worker: In case the goods
after carrying out the job work, are sent in piecemeal quantities by a job worker
to another job worker or to the principal, the challan issued originally by the
principal cannot be endorsed and a fresh challan is required to be issued by the
job worker.
(vi) Submission of intimation: It is clarified that it is the responsibility of the principal
to include the details of all the challans relating to goods sent by him to one or
more job worker or from one job worker to another and its return therefrom
during a quarter in FORM GST ITC-04 by the 25th day of the month succeeding
the quarter or within such period as may be extended by the Commissioner. The
FORM GST ITC-04 will serve as the intimation as envisaged under section 143 of
the CGST Act.
Further, as per the provisions contained in rule 138 of the CGST Rules, an e-way
bill is required to be generated by every registered person who causes movement of
goods of consignment value exceeding ` 50,000 even in cases where such
movement is for reasons other than for supply (e.g. in case of movement for job
work). Further, the third proviso to rule 138(1) of the CGST Rules provides that the
e-way bill shall be generated either by the principal or by the registered job worker
irrespective of the value of the consignment, where goods are sent by a principal
located in one State/Union territory to a job worker located in any other State/ Union
territory. It may also be noted that as per Explanation 1 to rule 138(3) of the CGST
Rules, where the goods are supplied by an unregistered supplier to a registered
recipient, the movement shall be said to be caused by such recipient if the recipient
is known at the time of commencement of the movement of goods. In other words,
the e-way bill shall be generated by the principal, wherever required, in case the job
worker is unregistered.
5) Liability to issue invoice, determination of place of supply and payment of GST

(i) Supply of job work services: The job worker, as a supplier of services, is liable to
pay GST if he is liable to be registered. He shall issue an invoice at the time of
supply of the services as determined in terms of section 13 read with section 31 of
the CGST Act. The value of services would be determined in terms of section 15 of
the CGST Act and would include not only the service charges but also the value of

any goods or services used by him for supplying the job work services, if recovered
from the principal.
Whether value of moulds and dies, jigs and fixtures or tools which have been
provided by the principal to the job worker and have been used by the latter for
providing job work services would be included in the value of job work services?
In this regard, attention is invited to section 15 of the CGST Act which lays down
the principles for determining the value of any supply under GST. Importantly, clause
(b) of sub-section (2) of section 15 of the CGST Act provides that any amount that
the supplier is liable to pay in relation to the supply but which has been incurred by
the recipient will form part of the valuation for that particular supply, provided it has
not been included in the price for such supply. Accordingly, it is clarified that the
value of such moulds and dies, jigs and fixtures or tools may not be included in the
value of job work services provided its value has been factored in the price for the
supply of such services by the job worker. It may be noted that if the job worker is
not registered, GST would be payable by the principal on reverse charge basis in
terms of the provisions contained in section 9(4) of the CGST Act. However, the
said provision has been kept in abeyance for the time being.
(ii) Supply of goods by the principal from the place of business/ premises of job
worker: Section 143 of the CGST Act provides that the principal may supply, from
the place of business / premises of a job worker, inputs after completion of job work
or otherwise or capital goods (other than moulds and dies, jigs and fixtures or tools)
within one year or three years respectively of their being sent out, on payment of tax
within India, or with or without payment of tax for exports, as the case may be. This
facility is available to the principal only if he declares the job worker’s place of
business / premises as his additional place of business or if the job worker is
registered.
Since the supply is being made by the principal, it is clarified that the time, value
and place of supply would have to be determined in the hands of the principal
irrespective of the location of the job worker’s place of business/premises. Further,
the invoice would have to be issued by the principal. It is also clarified that in case
of exports directly from the job worker’s place of business/premises, the LUT or
bond, as the case may be, shall be executed by the principal.
Illustration: The principal is located in State A, the job worker in State B and the
recipient in State C. In case the supply is made from the job worker’s place of
business / premises, the invoice will be issued by the supplier (principal) located in

State A to the recipient located in State C. The said transaction will be an inter-State
supply. In case the recipient is also located in State A, it will be an intra-State
supply.
(iii) Supply of waste and scrap generated during the job work: Sub-section (5) of
section 143 of the CGST Act provides that the waste and scrap generated during the
job work may be supplied by the registered job worker directly from his place of
business or by the principal in case the job worker is not registered. The principles
enunciated in para (ii) above would apply mutatis mutandis in this case.
(iv) Violation of conditions laid down in section 143: If the inputs or capital goods (other
than moulds and dies, jigs and fixtures or tools) are neither returned nor supplied
from the job worker’s place of business / premises within the specified time period,
the principal would issue an invoice for the same and declare such supplies in his
return for that particular month in which the time period of one year / three years
has expired. The date of supply shall be the date on which such inputs or capital
goods were initially sent to the job worker and interest for the intervening period
shall also be payable on the tax.
If such goods are returned by the job worker after the stipulated time period, the
same would be treated as a supply by the job worker to th e principal and the job
worker would be liable to pay GST if he is liable for registration in accordance with
the provisions contained in the CGST Act read with the rules made thereunder. It
may be noted that if the job worker is not registered, GST would be payable by the
principal on reverse charge basis in terms of the provisions contained in section 9(4)
of the CGST Act. However, the said provision has been kept in abeyance for the
time being. Further, there is no requirement of either returning back or supplying the
goods from the job worker’s place of business/premises as far as moulds and dies,
jigs and fixtures, or tools are concerned.
6) Availability of input tax credit to the principal and job worker

In view of the provisions contained in clause (b) of sub-section (2) of section 16 of
the CGST Act, the input tax credit (ITC) would be available to the principal,
irrespective of the fact whether the inputs or capital goods are received by the
principal and then sent to the job worker for processing, etc. or whether they are
directly received at the job worker’s place of business/premises, without being
brought to the premises of the principal. It is also clarified that the job worker is also
eligible to avail ITC on inputs, etc. used by him in supplying the job work services if
he is registered.

DEMANDS AND RECOVERY

1) Circular specifying proper officers under sections 73 and 74 of the CGST Act and
under the IGST Act and fixing monetary limits for issuance of show cause notices by
different level of officers
All officers up to the rank of Additional/Joint Commissioner of Central Tax are assigned
as the proper officer for issuance of show cause notices (SCNs) and orders under
subsections (1), (2), (3), (5), (6), (7), (9) and (10) of sections 73 and 74 of the CGST
Act. Further, they are so assigned under the I GST Act as well, as per section 3 read
with section 20 of the said Act.
In pursuance of section 2(91) of the CGST Act read with section 20 of the IGST Act,
the Board has assigned the officers mentioned in Column (2) of the Table below, the
functions as the proper officers in relation to issue of show cause notices and orders
under sections 73 and 74 of the CGST Act and section 20 of the IGST Act (read with
sections 73 and 74 of the CGST Act), up to the monetary limits as mentioned in
columns (3), (4) and (5) respectively of the Table below:
No. CGST Officer Monetary limit of Monetary limit of Monetary limit of
CGST (including IGST (including CGST and IGST
cess) not paid or cess) not paid or (including cess) not
short paid or short paid or paid or short paid or
erroneously erroneously erroneously refunded
refunded or ITC refunded or ITC of or ITC of CGST and
of CGST wrongly IGST wrongly IGST wrongly
availed or utilized availed or utilized availed or utilized for
for issuance of for issuance of issuance of SCNs
SCNs and passing SCNs and passing and passing of
of orders under of orders under orders under
sections 73 and sections 73 and 74 sections 73 and 74
74 of CGST Act of CGST Act made of CGST Act made
applicable to applicable to IGST
matters in relation vide section 20 of
to IGST vide the IGST Act
section 20 of the
IGST Act
(1) (2) (3) (4) (5)
1. Superintendent Not exceeding Not exceeding Not exceeding
of Central Tax Rupees 10 lakh Rupees 20 lakh Rupees 20 lakh
2. Deputy or Above Rupees 10 Above Rupees 20 Above Rupees 20

Assistant lakh and not lakh and not lakh and not
Commissioner exceeding Rupees exceeding Rupees exceeding Rupees 2
of Central Tax 1 crore 2 crores crores
3. Additional or Above Rupees 1 Above Rupees 2 Above Rupees 2
Joint crore without any crores without any crores without any
Commissioner limit limit limit
of Central Tax
The central tax officers of Audit Commissionerates and Directorate General of Goods and
Services Tax Intelligence (hereinafter referred to as “DGGSTI”) shall exercise the powers
only to issue show cause notices. A show cause notice issued by them shall be
adjudicated by the competent central tax officer of the Executive Commissionerate in
whose jurisdiction the noticee is registered.
In case show cause notices have been issued on similar issues to a noticee(s) and
made answerable to different levels of adjudicating authorities within a Commissionerate,
such show cause notices should be adjudicated by the adjudicating authority competent
to decide the case involving the highest amount of central tax and/or integrated tax
(including cess).

APPEALS AND REVISION

Appointment of Appellate Authority
A new rule 109A has been inserted in CGST Rules to appoint Appellate Authority as under:
If the decision or order
against which the appeal is
to be filed, is passed by the Appellate Authority Commissioner (Appeals)
Additional or Joint
Commissioner
If the decision or order

against which the appeal is
to be filed, is passed by the Additional Commissioner
Appellate Authority
Deputy or Assistant (Appeals)
Commissioner or
Superintendent

MISCELLANEOUS PROVISIONS
1) Deemed exports notified
Section 147 of the CGST Act lays down the provisions for deeming certain supplies as
exports. The following supplies have been notified as deemed exports:
1. Supply of goods by a registered person against Advance Authorisation
2. Supply of capital goods by a registered person against Export Promotion Capital
Goods Authorisation
3. Supply of goods by a registered person to Export Oriented Unit
4. Supply of gold by a bank or Public Sector Undertaking specified in the Notification
No. 50/2017 Cus dated 30.06.2017 (as amended) against Advance Authorisation.
2) Amendment in provisions relating to order of Anti-Profiteering Authority

A new sub-rule (4) has been inserted in rule 133 of CGST Rules to provide that i f the
report of the Director General of Safeguards recommends that there is contravention or
even non contravention of the provisions of section 171 or these rules, but the Authority
is of the opinion that further investigation or inquiry is called for in the matter, it may,
for reasons to be recorded in writing, refer the matter to the Director General of
Safeguards to cause further investigation or inquiry in accordance with the provisions of
the Act and these rules.
Issue related to taxability of ‘tenancy rights’ under GST- regarding Doubts have been
raised as to,-
(i) Whether transfer of tenancy rights to an incoming tenant, consideration for which is
in form of tenancy premium, shall attract GST when stamp duty and registration
charges is levied on the said premium, if yes what would be the applicable rate?
(ii) Further, in case of transfer of tenancy rights, a part of the consideration for such
transfer accrues to the outgoing tenant, whether such supplies will also attract GST?
(iii) The issue has been examined. The transfer of tenancy rights against tenancy
premium which is also known as “pagadi system” is prevalent in some States. In this
system the tenant acquires, tenancy rights in the property against payment of
tenancy premium(pagadi). The landlord may be owner of the property but the
possession of the same lies with the tenant. The tenant pays periodic rent to the
landlord as long as he occupies the property. The tenant also usually has the option
to sell the tenancy right of the said property and in such a case has to share a
percentage of the proceed with owner of land, as laid down in their tenancy

agreement. Alternatively, the landlord pays to tenant the prevailing tenancy premium
to get the property vacated. Such properties in Maharashtra are governed by
Maharashtra Rent Control Act, 1999.
(iv) As per section 9(1) of the CGST Act there shall be levied central tax on the intra-
State supplies of services. The scope of supply includes all forms of supply of goods
and services or both such as sale, transfer, barter, exchange, licence, rental, lease or
disposal made or agreed to be made for a consideration by a person in the course
or furtherance of business and also includes the activities specified in Schedule II.
The activity of transfer of tenancy right against consideration in the form of tenancy
premium is a supply of service liable to GST. It is a form of lease or renting of
property and such activity is specifically declared to be a service in para 2 of
Schedule II i.e. any lease, tenancy, easement, licence to occupy land is a supply of
services
Return Extension Date:
In exercise of the powers conferred by section 128 of the Central Goods and Services Tax Act,
2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby
waives the late fee payable under section 47 of the said Act for failure to furnish the return in
FORM GSTR-3B by the due date for each of the months from October, 2017 to April, 2018, for
the class of registered persons whose declaration in FORM GST TRAN-1 was submitted but not
filed on the common portal on or before the 27th day of December, 2017: Provided that such
registered persons have filed the declaration in FORM GST TRAN-1 on or before the 10th day
of May, 2018 and the return in FORM GSTR-3B for each of such months, on or before the 31st
day of May, 2018.

GST Amendments

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CA VIVEK GABA Amendment in GST CS EXEC. & PROF.

Author : CA Vivek Gaba (TAX LOVE)

Source: CBEC Website, ICAI Supplement

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SUPPLY UNDER GST

1. Clarification on taxability of printing contracts

2. Clarification on Inter-state movement of various modes of conveyance, carrying goods

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Issue: Whether inter-state movement of various modes of conveyance carrying goods or

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4. Clarification on leviability of GST on fee paid by litigants in the Consumer Disputes

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5. Clarification regarding GST on certain services

2) Issue: Whether retreading of tyres is a supply of goods or services?

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3. Clarification on eligibility of restaurant services for composition scheme

including services by way of extending deposits, loans or advances in so far as

4. GST to be payable under reverse charge on services provided by Overseeing

5. GST to be payable under reverse charge on renting of immovable property by

6. Clarification on classification of cut pieces of fabrics under GST (Unstitched Salwar

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7. Clarification regarding applicability of section 16 of the IGST Act, 2017, relating to

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1. Provisions introduced for computing proportionate value of advertisement services

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Maharashtra which is attributable to the dissemination in Maharashtra. Likewise, the

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Illustration: ABC places an order on KL for advertisements to be placed on a train with

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the value of advertisement service attributable to dissemination in such State or

f. In the case of advertisements on railway tickets, the breakup, calculated on the

Illustration: For an advertisement on ‘Pradhan Mantri Ujjwala Yojana’, to be broadcast

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h. In the case of advertisement on television channels, the amount attributable to the

Illustration: ABC issues a release order with QR channel for telecasting an

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Illustration: ABC commissions ST for an advertisement on ‘Pradhan Mantri Awas Yojana’

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Illustration: ABC issues a release order to WX for a campaign over internet

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k. In the case of advertisements through short messaging service the amount

Illustration 3: ABC commissions UV to send short messaging service to voters asking

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the form of chance to win in into the totalisator

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INPUT TAX CREDIT

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3. Foreign Diplomatic Mission / UN Organization to be granted centralized UIN

5. Application for cancellation of voluntary registration can be considered before one

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ACCOUNTS AND RECORDS

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generated either by the principal or the job worker, if registered, irrespective of