GST FAQ

Introduction to GST

With the launch of goods and services tax (GST) around the corner, India Inc. is preparing for a brand new indirect tax regime. GST will require strict, timely and online compliance by every section of the business value chain. Once GST is implemented, buyers of raw materials; services or products, up the value chain, will not be able to take input tax credit till their vendors have deposited GST as well as done the requisite online filings. This will include the vendors having to upload each invoice detail at a fairly granular level as well as do three filings every month in every state where they are selling goods or services.

Our FAQ About GST

A way Bill is a receipt or document issued by a carrier giving details in relation to shipment of a consignment of goods. Electronic Way Bill (E-Way Bill) is basically 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.
The facility for generation, modification and cancellation of e-way bills is being provided on trial basis on the portal ewaybill.nic.in. Once fully operational, the e-way bill system will start functioning on the portal ewaybillgst.gov.in .
Central Goods and Services Tax Rules, 2017 prescribes e-way bill as the document to be carried for the consignment of goods of value more than rupees fifty thousand. Government has issued a notification under rule 138 of Central Goods and Services Tax Rules, 2017 in this regard mandating to carry e-way bill for transportation of goods of consignment of value more than rupees fifty thousand. Also in case goods are sent by a principal located in one state to a job worker located in any other State, E Way Bill is required to be generated by the Principal irrespective of the value of consignment.
Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees in relation to supply; or reasons other than supply; or inward supply from unregistered person shall generate e-way bill. It means, the consignor or consignee, as a registered person or a transporter of the goods can generate the e-way bill. The unregistered transporter can enroll on the common portal and generate the e-way bill for movement of goods for his clients. Any person can also enroll and generate the e-way bill for movement of goods for his/her own use.
The e-way bill is not valid without the vehicle number updated on the common portal, if on the mode of transport is the road. The Vehicle number can be updated by the generator of the e-way bill or the transporter assigned for that e-way bill by the generator.
To generate the e-way bill, it is essential that the person shall be registered person and if the transporter is not registered person it is mandatory to get enrolled on the common portal of e-waybill before generation of the e-way bill. The documents such as tax invoice or bill of sale or delivery Challan and Transporter’s Id, who is transporting the goods with transporter document number or the vehicle number in which the goods are transported.
If there is mistake, incorrect or wrong entry in the e-way bill, then it cannot be edited or corrected.
Yes. E-way bill can be cancelled if either goods are not transported or are not transported as per the details furnished in the e-way bill. E-way bill can be cancelled within 24 hours from the time of generation.
In case the Vehicle in which goods are being transported having E Way Bill is changed, then the transporter or generator of the e-way bill can update the changed vehicle number. Such a situation may arise if after generating the e-way bill or after commencement of movement of goods due to transshipment or due to breakdown of vehicle, goods are required to be shifted in another vehicle.
There may be some transporters, who are not registered under the Goods and Services Tax Act and if such transporters cause the movement of goods for their clients, they are required to generate the e-way bill on behalf of their clients or update the vehicle number for e-way bill. Hence, they need to enroll on the e-way bill portal and generate the 15 digits Unique Transporter Id.
No. One needs to transport the goods with an e-way bill specifying the vehicle number, which is a carrying the goods. However, where the goods are transported for a distance of less than ten kilometers within the State from the place of business of consignor to the place of transporter for further transportation, then the vehicle number is a not mandatory.
The e-way bill is required to transport all the taxable goods with the value exceeding fifty thousand rupees except 154 goods specified in Annexure to the notification.
Yes. One can transport the goods through different modes of transportation – Road, Rail, Air, Ship. However, always e-way bill needs to be updated with the latest mode of transportation or conveyance number accordingly. That is, at any point of time, the details of conveyance specified in the e-way bill on the portal should match with the details of conveyance through which goods are actually being transported.
The person in charge of a conveyance shall carry the tax invoice or bill of supply or delivery challan, as the case may be; and a copy of the e-way bill or the e-way bill number generated from the common portal.
The registered person can generate the e-way bill from his account from any registered business place. However, he/she needs to enter the address accordingly in the e-way bill. He/she can also create multiple sub-users and assigned to these places and generate the e-way bills accordingly.
All the registered persons under GST shall also register on the portal of e-way bill namely: http://ewaybill.nic.in using his GSTIN. Once GSTIN is entered, the system sends the OTP to his registered mobile number and after authenticating the same, the system enables him to generate his/her username and password for the e-way bill system. After generation of username and password of his choice, he/she may proceed to make entries to generate e-way bill.
Generally, transporters move the consignments from one place to another place as per the movement of vehicles. Sometimes the consignments move to 5 – 8 branches of the transporter before they reach its destination. The consignments reach the particular branch of transporter from different places in different vehicles and again these consignments will be sorted out to transport to different places in different vehicles. Now, the concerned branch user instead of updating the vehicle for each one of the EWBs, it can generate ‘Consolidated EWB’ for multiple EWBs which are going in one vehicle towards next branch/destination. This will simplify the managing of the EWBs and data entry.
A registered GSTIN holder is recorded as supplier or recipient and he is allowed to work as supplier or recipient. If registered GSTIN holder is transporter, then he will be generating EWB on behalf of supplier or recipient. He needs to enter both supplier and recipient details, which is not allowed as a supplier or recipient. To change his position from supplier or recipient to transporter, the tax payer has to select the option ‘Register as Transporter’ under registration and update his profile. Once it is done with logout and login, the system changes tax payer as transporter and allows him to enter both supplier and recipient as per invoice.
TRANSIN or Transporter id is 15 digits unique number generated by EWB system for unregistered transporter once he enrolls on the system. TRANSIN is 15 digits number on similar lines with GSTIN and it is based on state code, PAN and Check digit. This can be shared by transporter to his clients to enter this number while generating e-waybills.
The transporter is required to provide the essential information on the EWB portal. The transporter id is created by the EWB system after furnishing the information and submitting. It is a 15 digits number on similar lines with GSTIN and it is based on state code, PAN and Check digit. This can be shared by transporter to his clients to enter this number while generating e-waybills.
While generating e-way bill the tax payer has a provision to enter the transporter id in the transportation details section. If he enters 15 digits transporter id provided by his transporter, the e-way bill will be assigned to that transporter. Subsequently, the transporter can log in and update the further transportation details to it.
Consolidated e-way bill is a document containing the multiple e-way bills for multiple consignments being carried in one conveyance (goods vehicle). That is, the transporter, carrying the multiple consignments of various consignors and consignees in one vehicle is required to carry one consolidated e-way bill instead of carrying multiple e-way bills for those consignments.
A transporter can generate the consolidated e-way bills for movement of multiple consignments in one vehicle.
The e-way bill once generated cannot be deleted. However, it can be cancelled by the generator within 24 hours of generation. If it has been verified by any empowered officer, then it cannot be cancelled. E-way bill can be cancelled if either goods are not transported or are not transported as per the details furnished in the e-way bill.
The person who causes transport of goods shall generate the e-way bill specifying the details of other person as a recipient of goods. There is a provision in the common portal for the other party to see the e-way bill generated against his/her GSTIN. As the other party, one can communicate the acceptance or rejection of such consignment specified in the e-way bill. If the acceptance or rejection is not communicated within 72 hours from the time of generation of e-way Bill, it is deemed that he has accepted the details.
Some of the consignments are transported by the transporter through transshipment before it is delivered to the recipient at the place of destination. Hence for each movement from one place to another, the transporter needs to update the vehicle number in which he is transporting that consignment.
Yes. Validity of the e-way bill or consolidated e-way bill depends upon the distance the goods have to be transported. The validity is one day upto100 km and for every 100 km or part thereafter it is one additional day
Every registered person, who causes movement of goods, needs to generate the e-way bill. If the registered person is unable to generate the e-way bill, the transporter who transports the goods can generate the e-way bill on behalf of his/her client. If the movement is caused by an unregistered person, he may at his option generate the e-way bill.
Consolidated EWB is like a trip sheet and it contains details of different EWBs which are moving towards one direction, and these EWBs are having different validity periods. Hence, Consolidated EWB is not having any independent validity period. However, individual EWBs in the Consolidated EWB should reach the destination as per its validity period.

The e-way bill can be generated by the registered person in any of the following methods;-

  • Using Web based system
  • Using bulk upload facility
  • Using SMS based facility
  • Using Android App
  • Using Site-to-Site integration
  • Using GSP ( Goods and Services Tax Suvidha Provider)
The taxpayer has to register the mobile numbers through which he wants to generate the e-way bill on the e-way bill system.
The tax payer has to register the IMEI numbers of the mobiles through which he wants to generate the e-way bill on the e-way bill system
The taxpayer should register the server details of his/her systems through which he wants to generate the e-way bill using the APIs of the e-way bill system
The taxpayer can generate EWB with or without Part-B. Sometimes, the tax payer wants to move the goods himself but wants to update the Part-B later as vehicle number is not available at that point of time. E-way bill expects the user to enter transporter ID or vehicle number. So as he wants to move the goods himself, he can enter his GSTIN as transporter Id and generate EWB. This indicates to the system that he is a transporter for that EWB
If the consigner or consignee is unregistered tax payer and not having GSTIN, then user has to enter ‘URP’ [Unregistered Person] in corresponding GSTIN column.
If the vehicle breaks down when the goods are being carried with EWB, then the transporter can cause to repair the vehicle and continue the journey. If he is going to change the vehicle, then he has to enter the new vehicle details for that EWB on the web- site using ‘Update vehicle number’ option and continue the journey with new vehicle
E-Way bill is complete only when Part-B is entered. Part-B is a must for the e-way bill for movement purpose. Otherwise printout of EWB says it is invalid for movement of goods
Part-B can be entered only by the generator of the EWB and transporter assigned in it. That is, the generator of EWB indicates who is authorized to move the goods by entering his transporter id. Only such transporter can login and update the Part-B.
The user can update Part-B (Vehicle details) as many times as he wants for movement of goods to the destination. However, the updating should be done within the validity period.
Part-B can be entered by the transporter assigned in the EWB or generator himself. But the assigned transporter cannot re-assign to some other transporter to update Part-B on the EWB system.

The validity of the e-way bill starts when first entry is made in Part-B. That is, vehicle entry is made first time in case of road transportation or first transport document number entry in case of rail/air/ship transportation, whichever is the first entry.

It may be noted that validity is not re-calculated for subsequent entries in Part-B.

The validity period of the EWB is calculated based on the ‘approx. distance’ entered while generating the EWB. For every 100kms one day is a validity period for EWB as per rule and for part of 100 KM one more day is added. For ex. If approx. distance is 510KMs then validity period is 5+1 days.
Yes. As per the rules, e-way bill is required along with the goods, if it is more than Rs 50,000. Under this circumstance, the consumer can get the e-way bill generated from the tax payer or supplier, based on the bill or invoice issued by him. Or the consumer can enroll and log in as the citizen and generate the e-way bill.
The e-way bill once generated cannot be edited or modified. Only Part-B can be updated to it. However, if e-way bill is generated with wrong information, it can be cancelled and generated freshly again. The cancellation is required to be done within twenty four hours from the time of generation.
Any person can verify the authenticity or the correctness of e-way bill by entering EWB No, EWB Date, Generator ID and Doc No in the search option of EWB Portal.
If multiple invoices are issued by the supplier to recipient, that is, for movement of goods of more than one invoice of same consignor and consignee, multiple EWBs have to be generated. That is, for each invoice, one EWB has to be generated, irrespective of same or different consignors or consignees are involved. Multiple invoices cannot be clubbed to generate one EWB. However after generating all these EWBs, one Consolidated EWB can be prepared for transportation purpose, if they are going in one vehicle.
Where the goods are transported by railways or by air or vessel, the Part B of the e-way bill can be updated either before or after the commencement of movement. But, where the goods are transported by railways, the railways shall not deliver the goods, unless the e-way bill as required under these rules is produced to them, at the time of delivery.
API interface is a site-to-site integration of website of tax payer with the EWB system. API interface can be used by large tax payers, who needs to generate more than 1000 invoices/e-way bills per day.
However, the tax payer should meet the following criteria to use the API interface.
  1. His invoicing system should be automated with IT solutions.
  2. He should be ready to change his IT system to integrate with EWB system as per API guidelines
  3. He should be generating at least 200 invoices/e-way bills per day.
  4. His system should have SSL based domain name.
  5. His system should have Static IP Address.
  6. He should have pre-production system to test the API interface
EWB system has an option to enter the masters of user – client master, supplier master, transporter master and product master. If user creates these masters, it will simplify the generation of e-way bill for him. That is, the system auto populates the details like trade/legal name, GSTIN, address on typing few character of client or supplier; HSN Code, tax rates etc., in case of product. It also avoids data entry mistakes by operator while keying in the details.
Most of the times, the tax payer or authorized person himself cannot operate and generate EWBs. He will be dependent upon his staff or operator to do that. He would like to avoid sharing his user credentials to them. In some firms, the business activities will be operational 24/7 and some firms will have multiple branches. Under these circumstances, the main user can create sub-users and assign the roles to them. He can assign generation of EWB or rejection or report generation activities based on requirements. This facility helps him to monitor the activities done by sub-users. However, the main user should ensure that whenever employee is transferred or resigned, the sub-user account is frozen / blocked to avoid mis-utilisation.
The user is allowed to generate report on daily basis. Because of criticality of the system for performance and requirement of 24/7, the reports are limited to be generated for a day. The user can change date and generate the report for that date. Hence, the user is advised to generate report daily and store in his system.
One e-way bill can go through multiple modes of transportation before reaching the destination. As per the mode of transportation, the EWB can be updated with new mode of transportation by using ‘Update Vehicle Number’. Let us assume the goods are moving from Cochin to Chandigarh through road, ship, air and road again. First, the tax payer generates the EWB by entering first stage of movement (by road) from his place to ship yard and enters the vehicle number. Next, he will submit the goods to ship yard and update the mode of transportation as Ship and transport document number on the e-way bill system. Next, after reaching Mumbai, the taxpayer or concerned transporter updates movement as road from ship to airport with vehicle number. Next the tax payer or transporter updates, using ‘update vehicle number’ option, the Airway Bill number. Again after reaching Delhi, he updates movement through road with vehicle number. This way, the e-way bill will be updated with multiple mode of transportation.

The transporter comes to know the EWBs assigned to him by the taxpayers for transportation, in one of the following ways:

  • The transporter can go to reports section and select ‘EWB assigned to me for trans and see the list.
  • The transporter can go to ‘Update Vehicle No’ and select ‘Generator GSTIN’ option and enter taxpayer GSTIN, who has assigned or likely to assign the EWBs to him.
  • The tax payer can contact and inform the transporter that the particular EWB is assigned to him.
Some of the consignments move from one place to another place till they reach their destinations. Under this circumstance, each time the consignment moves from one place to another, the transporter needs to enter the vehicle details using ‘Update Vehicle Number’ option, when he starts moving the goods from that place or the transporter can also generate ‘Consolidated EWB’ with the EWB of that consignment with other EWBs and move to the next place. This has to be done till the consignment reaches destination. But it should be within the validity period of EWB.
There is a chance that consignee or recipient may reject to take the delivery of consignment due to various reasons. Under such circumstance, the transporter can get one more e-way bill generated with the help of supplier or recipient by indicating supply as ‘Sales Return’ and with relevant document details and return the goods to supplier as per his agreement with him.
In case validity of the e-way bill expires, the goods are not supposed to be moved. However, under circumstance of ‘exceptional nature’, it can be extended by the Commissioner of the state. The procedure for the same will be notified later.
In situations where addresses involved in ‘Bill to’ and ‘Ship to’ in a invoice/bill belongs to one legal name/tax payer as per GSTIN within the state, then one e-way bill has to be generated. That is, if the ‘Bill to’ is principal place of business and ‘Ship to’ is additional place of business of the GSTIN or vice versa in a invoice/bill, then one e-way bill is sufficient for the movement of goods.
If the addresses involved in ‘Bill to’ and ‘Ship to’ in a invoice/bill belongs to different legal names/tax payers, then two e-way bills have to be generated. One e-way bill for first invoice, second e-way bill is from ‘Bill to’ party to ‘Ship to’ party based on the invoice/bill of the ‘Bill to’ party. This is required to complete the cycle of transactions and taxes will change for inter-state transactions.
For example, A has issued invoice to B as ‘Bill to’ with C as ‘Ship to’. Legally, both B and C are different tax payers. Now, A will generate one e-way bill and B will issue invoice and generate one more e-way bill. As goods are moving from A to C directly, the transporter will produce both the invoices and e-way bills to show the shortcut movement of goods.

In such a scenario multiple EWBs have to be generated. That is, the EWB has to be generated for each consignment based on the delivery Challan details along with the corresponding vehicle number. In case the goods are being transported in a semi knocked down or completely knocked down condition the EWB shall be generated for each of such vehicles based on the delivery Challan issued for that portion of the consignment and;

  1. Supplier shall issue the complete invoice before dispatch of the first consignment
  2. Issue Delivery Challan for each of the subsequent consignments, giving reference of the invoice;
  3. Each consignment shall be accompanied by copies of the corresponding delivery Challan along with a duly certified copy of the invoice
  4. Original copy of the invoice shall be sent along with the last consignment

As per rules, the tax payer or recipient can reject the e-way bill generated on his GSTIN by other parties. The following options are available for him to see the list of e-way bills.

  1. He can see on the dashboard, once he logs into the system.
  2. He will get one SMS everyday indicating the total e-way bill activities on his GSTIN.
  3. He can go to reject option and select date and see the e-way bills. Here, system shows the list of e-way bills generated on his GSTIN by others.
  4. He can go to report and see the ‘EWBs by other parties’.
EWB System (http://ewabill.nic.in) in dependent on GST Common portal for tax payers registration details like legal name/trade name, business addresses, mobile number and e-mail id. EWB System will not allow tax payer to update these details directly. If tax payer changes these details at GST Common portal, it will be updated in EWB system within a day. Otherwise, the tax payer can update the same by selecting the option ‘Update My GSTIN’.
It is a destination based tax on consumption of goods and services. It is proposed to be levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as setoff. In a nutshell, only value addition will be taxed and burden of tax is to be borne by the final consumer.
The Central GST and the State GST would be levied simultaneously on every transaction of supply of goods and services made by registered persons except the exempted goods and services, goods and services which are outside the purview of GST. Further, both would be levied on the same price or value unlike State VAT which is levied on the value of the goods inclusive of CENVAT. While the location of the supplier and the recipient within the country is immaterial for the purpose of CGST, SGST would be chargeable only when the supplier and the recipient
As per section 2(52) of the CGST/SGST Act actionable claims are to be considered as goods. Schedule III read with Section 7 of the CGST/SGST Act lists the activities or transactions which shall be treated neither as supply of goods nor supply of services. The Schedule lists actionable claims other than lottery, betting and gambling as one of such transactions. Thus, only lottery, betting and gambling shall be treated as supplies under the GST regime. All the other actionable claims shall not be supplies.
Information return is based on the idea of verifying the compliance levels of registered persons through information procured from independent third party sources. As per section 150 of the CGST/SGST Act, many authorities who are responsible for maintaining records of registration or statement of accounts or any periodic return or document containing details of payment of tax and other details of transaction of goods or services or both or transactions related to a bank account or consumption of electricity or transaction of purchase, sale or exchange of goods or property or right or interest in a property under any law for the time being in force, are mandated to furnish an information return of the same in respect of such periods, within such time, in such form and manner and to such authority or agency as may be prescribed. Failure to do so may result in penalty being imposed as per Section 123.
Article 366(12A) of the Constitution as amended by 101st Constitutional Amendment Act, 2016 defines the Goods and Services tax (GST) as a tax on supply of goods or services or both, except supply of alcoholic liquor for human consumption. So alcohol for human consumption is kept out of GST by way of definition of GST in constitution. Five petroleum products viz. petroleum crude, motor spirit (petrol), high speed diesel, natural gas and aviation turbine fuel have temporarily been kept out and GST Council shall decide the date from which they shall be included in GST. Furthermore, distribution and transmission of electricity and sale and purchase of real estate will also be kept out by way of exemptions.
Taxable event under GST is supply of goods or services or both. CGST and SGST/ UTGST will be levied on intra- State supplies. IGST will be levied on inter-State supplies.
Composite supply shall be treated as supply of the principal supply. Mixed supply would be treated as supply of that particular goods or services which attracts the highest rate of tax.
Supplies of all goods and services are taxable except alcoholic liquor for human consumption. Supply of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel shall be taxable with effect from a future date. This date would be notified by the Government on the recommendations of the GST Council.
Yes, the Government can specify categories of services the tax on which shall be paid by the electronic commerce operator, if such services are supplied through it and all the provisions of the Act shall apply to such electronic commerce operator as if he is the person liable to pay tax in relation to supply of such services. Notification No. 17/2017-Central Tax (rate) dated 28.06.2017 and Notification No. 14/2017-Integrated Tax (Rate) dated 28.06.2017 have been issued under the CGST Act and the IGST Act respectively in this regard. The following categories of services have been notified for the purpose:
a. services by way of transportation of passengers by a radio-taxi, motorcab, maxicab and motor cycle;
b. services by way of providing accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes, except where the person supplying such service through electronic commerce operator is liable for registration under sub-section (1) of section 22 of the CGST Act;
c. services by way of house-keeping, such as plumbing, carpentering etc., except where the person supplying such service through electronic commerce operator is liable for registration under sub-section (1) of section 22 of the CGST Act.
The threshold for composition scheme is Rs. 1 Crore of aggregate turnover in the preceding financial year. The benefit of composition scheme can be availed up to the turnover of Rs. 1 Crore in current financial year. (75 lakhs for 9 special category states viz 1. Arunachal Pradesh, 2. Assam, 3. Manipur, 4. Meghalaya, 5. Mizoram, 6. Nagaland, 7. Sikkim, 8. Tripura, and 9. Himachal Pradesh)
Yes, a manufacturer can opt for composition scheme generally. However, a manufacturer of goods, which would be notified on the recommendations of the GST Council, cannot opt for this scheme. The goods so notified are ice cream and other edible ice, whether or not containing cocoa (Tariff Heading-21050000), pan masala (Tariff Heading – 21069020) & tobacco and manufactured tobacco substitutes (Tariff Heading – 24). This scheme is not available for services sector, except restaurants
No, a person without GST registration can neither collect GST from his customers nor can claim any input tax credit of GST paid by him.
As per Section 22 of the CGST/SGST Act 2017, every supplier (including his agent) who makes a taxable supplyi.e. supply of goods and / or services which are leviable to tax under GST law, and his aggregate turn over in a financial year exceeds the threshold limit of twenty lakh rupees shall be liable to register himself in the State or the Union territory of Delhi or Puducherry from where he makes the taxable supply.
In case of eleven special category states (as mentioned in Art.279A(4)(g) of the Constitution of India), this threshold limit for registration liability is ten lakh rupees. Besides, Section 24 of the Act mentions certain categories of suppliers, who shall be liable to take registration even if their aggregate turnover is below the said threshold limit of 20 lakh rupees. On the other hand, as per Section 23 of the Act, an agriculturist in respect of supply of his agricultural produce; as also any person exclusively making supply of non-taxable or wholly exempted goods and/or services under GST law will not be liable for registration.

As per section 2(6) of the CGST/SGST Act “aggregate turnover” includes the aggregate value of:

  1. all taxable supplies,
  2. all exempt supplies,
  3. exports of goods and/or service, and,
  4. all inter-state supplies

of a person having the same PAN.
The above shall be computed on all India basis and excludes taxes charged under the CGST Act, SGST Act, UTGST Act, and the IGST Act. Aggregate turnover shall include all supplies made by the Taxable person, whether on his own account or made on behalf of all his principals.
Aggregate turnover does not include value of supplies on which tax is levied on reverse charge basis, and value of inward supplies.
The value of goods after completion of job work is not includible in the turnover of the job-worker. It will be treated as supply of goods by the principal and will accordingly be includible in the turnover of the Principal.

(a) The following categories of persons are required to be registered compulsorily irrespective of the threshold limit:

i) persons making any inter-State taxable supply, except persons making inter-state supply of certain handicraft goods, and services
ii) casual taxable persons except persons making supply of certain handicraft goods
iii) persons who are required to pay tax under reverse charge
iv) persons who are required to pay tax under sub- section (5) of section 9
v) non-resident taxable persons making taxable supply
vi) persons who are required to deduct tax under section 51
vii) persons who make taxable supply of goods or services on behalf of other registered taxable persons whether as an agent or otherwise
viii) Input service distributor (whether or not separately registered under the Act)
ix) persons who supply goods, other than supplies specified under Section 9(5), through such e-commerce operator who is required to collect tax at source under section 52
x) every electronic commerce operator
xi) every person supplying online information and data base retrieval services from a place outside India to a person in India, other than a registered person and,
In addition, the Government may notify other person or class of persons who shall be required to be registered mandatorily.

The Government, however, has granted exemption from compulsory registration vide Notification no. 32/2017- Central Tax dated 15/09/2017 (casual taxable person making taxable supplies of handicraft goods) and Notification no. 65/2017-Central Tax (Rate) dated 15/11/2017 (supplier of services through an e-commerce platform).
(b) The following categories of persons are required to be registered compulsorily irrespective of the threshold limit:

i) persons making any inter-State taxable supply, except persons making inter-state supply of certain handicraft goods, and services;
ii) casual taxable persons except persons making supply of certain handicraft goods;
iii) persons who are required to pay tax under reverse charge;
iv) persons who are required to pay tax under sub- section (5) of section 9;
v) non-resident taxable persons making taxable supply;
vi) persons who are required to deduct tax under section 51;
vii) persons who make taxable supply of goods or services on behalf of other registered taxable persons whether as an agent or otherwise;
viii) Input service distributor (whether or not separately registered under the Act);
ix) persons who supply goods, other than supplies specified under Section 9(5), through such e-commerce operator who is required to collect tax at source under section 52;
x) every electronic commerce operator;
xi) every person supplying online information and data base retrieval services from a place outside India to a person in India, other than a registered person; and,
In addition, the Government may notify other person or class of persons who shall be required to be registered mandatorily.

The Government, however, has granted exemption from compulsory registration vide Notification no. 32/2017- Central Tax dated 15/09/2017 (casual taxable person making taxable supplies of handicraft goods) and Notification no. 65/2017-Central Tax (Rate) dated 15/11/2017 (supplier of services through an e-commerce platform).

(c) The following categories of persons are required to be registered compulsorily irrespective of the threshold limit:
i) persons making any inter-State taxable supply, except persons making inter-state supply of certain handicraft goods, and services;
ii) casual taxable persons except persons making supply of certain handicraft goods;
iii) persons who are required to pay tax under reverse charge;
iv) persons who are required to pay tax under sub- section (5) of section 9;
v) non-resident taxable persons making taxable supply;
vi) persons who are required to deduct tax under section 51;
vii) persons who make taxable supply of goods or services on behalf of other registered taxable persons whether as an agent or otherwise;
viii) Input service distributor (whether or not separately registered under the Act);
ix) persons who supply goods, other than supplies specified under Section 9(5), through such e-commerce operator who is required to collect tax at source under section 52;
x) every electronic commerce operator;
xi) every person supplying online information and data base retrieval services from a place outside India to a person in India, other than a registered person; and,
In addition, the Government may notify other person or class of persons who shall be required to be registered mandatorily.

The Government, however, has granted exemption from compulsory registration vide Notification no. 32/2017- Central Tax dated 15/09/2017 (casual taxable person making taxable supplies of handicraft goods) and Notification no. 65/2017-Central Tax (Rate) dated 15/11/2017 (supplier of services through an e-commerce platform).

(d) The following categories of persons are required to be registered compulsorily irrespective of the threshold limit:
i) persons making any inter-State taxable supply, except persons making inter-state supply of certain handicraft goods, and services;
ii) casual taxable persons except persons making supply of certain handicraft goods;
iii) persons who are required to pay tax under reverse charge;
iv) persons who are required to pay tax under sub- section (5) of section 9;
v) non-resident taxable persons making taxable supply;
vi) persons who are required to deduct tax under section 51;
vii) persons who make taxable supply of goods or services on behalf of other registered taxable persons whether as an agent or otherwise;
viii) Input service distributor (whether or not separately registered under the Act);
ix) persons who supply goods, other than supplies specified under Section 9(5), through such e-commerce operator who is required to collect tax at source under section 52;
x) every electronic commerce operator;
xi) every person supplying online information and data base retrieval services from a place outside India to a person in India, other than a registered person; and,
In addition, the Government may notify other person or class of persons who shall be required to be registered mandatorily.

The Government, however, has granted exemption from compulsory registration vide Notification no. 32/2017- Central Tax dated 15/09/2017 (casual taxable person making taxable supplies of handicraft goods) and Notification no. 65/2017-Central Tax (Rate) dated 15/11/2017 (supplier of services through an e-commerce platform).

(e) The following categories of persons are required to be registered compulsorily irrespective of the threshold limit:
i) persons making any inter-State taxable supply, except persons making inter-state supply of certain handicraft goods, and services;
ii) casual taxable persons except persons making supply of certain handicraft goods;
iii) persons who are required to pay tax under reverse charge;
iv) persons who are required to pay tax under sub- section (5) of section 9;
v) non-resident taxable persons making taxable supply;
vi) persons who are required to deduct tax under section 51;
vii) persons who make taxable supply of goods or services on behalf of other registered taxable persons whether as an agent or otherwise;
viii) Input service distributor (whether or not separately registered under the Act);
ix) persons who supply goods, other than supplies specified under Section 9(5), through such e-commerce operator who is required to collect tax at source under section 52;
x) every electronic commerce operator;
xi) every person supplying online information and data base retrieval services from a place outside India to a person in India, other than a registered person; and,
In addition, the Government may notify other person or class of persons who shall be required to be registered mandatorily.

The Government, however, has granted exemption from compulsory registration vide Notification no. 32/2017- Central Tax dated 15/09/2017 (casual taxable person making taxable supplies of handicraft goods) and Notification no. 65/2017-Central Tax (Rate) dated 15/11/2017 (supplier of services through an e-commerce platform).

Yes. In terms of the proviso to Sub-Section (2) of Section 25, a person having multiple business verticals in a State may obtain a separate registration for each business vertical, subject to such conditions as prescribed in the registration rules.
Yes. As per Section 25(6) of the CGST/SGST Act every person shall have a Permanent Account Number issued under the Income Tax Act,1961(43 of 1961) in order to be eligible for grant of registration.
However as per the proviso to the aforesaid section 25(6), a person required to deduct tax under Section 51, may have, in lieu of a PAN, a Tax Deduction and Collection Account Number issued under the said Income Tax Act, in order to be eligible for grant of registration.
Also, as per Section 25(7) PAN is not mandatory for a non- resident taxable person who may be granted registration on the basis of self-attested copy of valid passport.
Yes. As per Section 25(6) of the CGST/SGST Act every person shall have a Permanent Account Number issued under the Income Tax Act,1961(43 of 1961) in order to be eligible for grant of registration.
However as per the proviso to the aforesaid section 25(6), a person required to deduct tax under Section 51, may have, in lieu of a PAN, a Tax Deduction and Collection Account Number issued under the said Income Tax Act, in order to be eligible for grant of registration.
Also, as per Section 25(7) PAN is not mandatory for a non- resident taxable person who may be granted registration on the basis of self-attested copy of valid passport.
The term ‘supply’ is wide in its import covers all forms of supply of goods or services or both that includes sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business. It also includes import of service. The GST law also provides for including certain transactions made without consideration within the scope of supply.

In order to constitute a ‘supply’, the following elements are required to be satisfied, i.e.-

  1. the activity involves supply of goods or services or both;
  2. the supply is for a consideration unless otherwise specifically provided for;
  3. the supply is made in the course or furtherance of business;
  4. the supply is made in the taxable territory;
  5. the supply is a taxable supply; and
  6. the supply is made by a taxable person.
As a general principle, import of services without consideration will not be considered as supply under GST in terms of Section 7. However, import of services by a taxable person from a related person or from any of his other establishments outside India, in the course or furtherance of business, even without consideration will be treated as supply in terms of Sl. No.4 of Schedule I.
Yes. Schedule-III of the GST law lists certain activities such as (i) services by an employee to the employer in the course of or in relation to his employment, (ii) services by any Court or Tribunal established under any law, (iii) functions performed by members of Parliament, State Legislatures, members of the local authorities, Constitutional functionaries (iv) services of funeral, burial, crematorium or mortuary and (v) sale of land and (vi), actionable claims other than lottery, betting and gambling shall be treated neither a supply of goods or supply of services.
Zero rated supply means export of goods and/or services or supply of goods and/or services to a SEZ developer or a SEZ Unit
Yes. Under certain circumstances such as import of services for a consideration whether or not in the course or furtherance of business (Section 7(1) (b)) or supplies made without consideration, specified under Schedule-I of CGST/SGST Act, where one or more ingredients specified in answer to question no.4 are not satisfied, it shall still be treated as supply for levy of GST.
Inter-state self-supplies such as stock transfers, branch transfers or consignment sales shall be taxable under IGST even though such transactions may not involve payment of consideration. Every supplier is liable to register under the GST law in the State or Union territory from where he makes a taxable supply of goods or services or both in terms of Section 22 of the CGST Act. However, intra-state self-supplies are not taxable subject to not opting for registration as business vertical.
Title as well as possession both have to be transferred for a transaction to be considered as a supply of goods. In case title is not transferred, the transaction would be treated as supply of service in terms of Schedule II (1) (b). In some cases, possession may be transferred immediately but title may be transferred at a future date like in case of sale on approval basis or hire purchase arrangement. Such transactions will also be termed as supply of goods.
No, because the sale of old and used car by an individual is not in the course or furtherance of business and hence does not constitute supply.
Yes. As per Sl. No.1 of Schedule-I, permanent transfer or disposal of business assets where input tax credit has been availed on such assets shall constitute a supply under GST even where no consideration is involved
Yes. Provision of facilities by a club, association, society or any such body to its members shall be treated as supply. This is included in the definition of ‘business’ in section 2(17) of CGST/SGST Act.

Different types of supplies under GST are

  1. Taxable and exempt supplies.
  2. Inter-State and Intra-State supplies,
  3. Composite and mixed supplies and
  4. Zero rated supplies.
The time of supply fixes the point when the liability to charge GST arises. It also indicates when a supply is deemed to have been made. The CGST/SGST Act provides separate time of supply for goods and services.

Section12 of the CGST/SGST Act provides for time of supply of goods. The time of supply of goods shall be the earlier of the following namely,

  1. the date of issue of invoice by the supplier or the last date on which he is required under Section 31, to issue the invoice with respect to the supply; or
  2. the date on which the supplier receives the payment with respect to the supply.

However, vide Notification No. 66/2017-Central Tax dated 15.11.2017, liability to pay tax at the time of receipt of advance has been relaxed in case of goods.

Section 13 of the CGST/SGST Act provides for time of supply of services. The time of supply of services shall be the earlier of the following namely,

  1. the date of issue of invoice by the supplier if the invoice is issued within the period prescribed under section 31(2) or the date of receipt of payment whichever is earlier; or
  2. the date of provision of service, if the invoice is not issued within the period prescribed under section 31(2) or the date of receipt of payment whichever is earlier.
  3. the date on which the recipient shows the receipt of services in his books of account, in case where the provisions of clause (a) and (b) do not apply.

The time of supply will be the earliest of the following dates:

  1. date of receipt of goods; or
  2. date on which payment is made; or
  3. the date immediately following 30 days from the date of issue of invoice by the supplier.

In such cases time of supply will be

  1. where the payment is received after the change in rate of tax but the invoice has been issued prior to the change in rate of tax, the time of supply shall be the date of receipt of payment; (However for supply of goods payment of tax need to be made only at the time of issue of invoice in terms of notification 66/2017-Central Tax dated 15.11.2017) or
  2. where the invoice has been issued and the payment is received before the change in rate of tax, the time of supply shall be the date of receipt of payment or date of issue of invoice, whichever is earlier; or; (However for supply of goods payment of tax need to be made only at the time of issue of invoice in terms of notification 66/2017-Central Tax dated 15.11.2017)
  3. where the invoice has been issued after the change in rate of tax but the payment is received before the change in rate of tax, the time of supply shall be the date of issue of invoice
As per Section 31 of CGST/SGST Act a registered person shall, before or after the provision of service, but within a period of 30 days from the date of supply of service, issue a tax invoice showing description, value of goods, tax payable thereon and other prescribed particulars. For Banking and Insurance companies, this period is 45 days. For inter-state self-supplies made by bang, insurance and telecom companies, invoices can be issued before or at the time such supplier records the same in his books of account or before the expiry of the quarter during which the supply was made. Further a registered person liable to pay tax on reverse charge basis is also required to issue invoice on the date of receipt of goods or services or both.Input Tax Credit and Input Service Distributor
The value of taxable supply of goods and services shall ordinarily be ‘the transaction value’ which is the price paid or payable, when the parties are not related and price is the sole consideration. Section 15 of the CGST/SGST Act further elaborates various inclusions and exclusions from the ambit of transaction value. For example, the transaction value shall not include refundable deposit, discount allowed subject to certain conditions before or at the time of supply.
No, section 15 is common for all three taxes and also common for goods and services.
In case of supply of construction service (works contract), involving transfer of property in land or undivided share of land, as the case may be, the value of supply of service and goods portion in such supply shall be equivalent to the total amount charged for such supply less the value of land or undivided share of land, as the case may be, and the value of land or undivided share of land, as the case may be, in such supply shall be deemed to be one third of the total amount charged for such supply.
“Total amount” means the sum total of, –

  1. consideration charged for aforesaid service; and
  2. amount charged for transfer of land or undivided share of land, as the case may be
Payment of taxes by the normal tax payer is to be done on monthly basis by the 20th of the succeeding month. Cash payments will be first deposited in the Cash Ledger and the tax payer shall debit the ledger while making payment in the monthly returns and shall reflect the relevant debit entry number in his return. As mentioned earlier, payment can also be debited from the Credit Ledger. Payment of taxes for the month of March shall be paid by the 20th of April. Composition tax payers will need to pay tax on quarterly basis.
In such cases, the return is not considered as a valid return. Section 2(117) defines a valid return to mean a return furnished under sub-section (1) of section 39 on which self-assessed tax has been paid in full. It is only the valid return that would be used for allowing input tax credit (ITC) to the recipient. In other words, unless the supplier has paid the entire self-assessed tax and filed his return and the recipient has filed his return, the ITC of the recipient would not be confirmed.
Goods and Services Tax Network (GSTN) is a not-for- profit, non-government company promoted jointly by the Central and State Governments, which will provide shared IT infrastructure and services to both central and state governments including tax payers and other stakeholders. The Frontend services of Registration, Returns, Payments, etc. to all taxpayers will be provided by GSTN. It will be the interface between the government and the taxpayers.

GST System will provide a GST portal for taxpayers to access the GST System and do all the GST compliance activities. But there will be wide variety of tax payers (SME, Large Enterprise, Micro Enterprise etc.) which may require different kind of facilities like converting their purchase/sales register data in GST compliant format, Integration of their Accounting Packages/ERP with GST System etc., various kind of dashboards to view Matched/Mismatched ITC claims, Tax liability, Filing status etc. As invoice level filing is required, so large organizations may require an automated way to interact with GST system as it may be practically impossible for them to upload large number of invoices through a web portal. So an eco- system is required, which can help such taxpayers in GST compliance.

As Tax payer convenience will be the key to success of GST regime, this eco-system will also provide Tax payer options of using third party applications, which can provide different kind of interfaces on desktop/mobile for them to be GST compliant.

All above reasons require an eco-system of third party service providers, who have access to GST System and capability to develop such applications. These service providers have been given a generic name, GST Suvidha Providers or GSP.

GST System will provide a GST portal for taxpayers to access the GST System and do all the GST compliance activities. But there will be wide variety of tax payers (SME, Large Enterprise, Micro Enterprise etc.) which may require different kind of facilities like converting their purchase/sales register data in GST compliant format, Integration of their Accounting Packages/ERP with GST System etc., various kind of dashboards to view Matched/Mismatched ITC claims, Tax liability, Filing status etc. As invoice level filing is required, so large organizations may require an automated way to interact with GST system as it may be practically impossible for them to upload large number of invoices through a web portal. So an eco- system is required, which can help such taxpayers in GST compliance.

As Tax payer convenience will be the key to success of GST regime, this eco-system will also provide Tax payer options of using third party applications, which can provide different kind of interfaces on desktop/mobile for them to be GST compliant.

All above reasons require an eco-system of third party service providers, who have access to GST System and capability to develop such applications. These service providers have been given a generic name, GST Suvidha Providers or GSP

The basic principle of GST is that it should effectively tax the consumption of such supplies at the destination thereof or as the case may at the point of consumption. So place of supply provision determines the place i.e. taxable jurisdiction where the tax should reach. The place of supply determines whether a transaction is intra-state or inter- state. In other words, the place of Supply of Goods or services is required to determine whether a supply is subject to SGST plus CGST in a given State or union territory or else would attract IGST if it is an inter-state supply.

The various element involved in a transaction in services can be used as proxies to determine the place of supply. An assumption or proxy which gives more appropriate result than others for determining the place of supply, could be used for determining the place of supply. The same are discussed below:

  1. location of service provider;
  2. the location of service receiver;
  3. the place where the activity takes place/ place of performance;
  4. the place where it is consumed; and
  5. the place/person to which actual benefit flows
It would be deemed that the third person has received the goods and the place of supply of such goods shall be the principal place of business of such person. (Section 10 of IGST Act)