1. Mega Conference on Goods and Services Tax
April 9, 2017
P V SRINIVASAN Corporate Advisor
Mobile:
Presentation to Pune Branch of WIRC of ICAI 1

2. Central Goods and Services Bill, 2017 [CGST Act]
Extent
Charge
Central Goods and Services Bill, 2017 [CGST Act]
Whole of India except the State of Jammu & Kashmir
CGST on all intra-State supplies of goods and / or services.
Integrated Goods and Services Bill, 2017
[IGST Act]
IGST on all supplies of goods and / or services of inter-State trade or commerce.
State Goods and Services Bill, 2017
[SGST Act]
Respective State
SGST on all intra-State supplies of goods and / or services.
Union Territory Goods and Services Tax Bill, 2017
Andaman and Nicobar Islands, Lakshadweep, Dadra and Nagar Haveli, Daman and Diu, Chandigarh and other territory
Union Territory Tax on all intra-State supplies of goods or services or both 2

3. Understanding Goods and Services3

4. every kind of movable property [other than money and securities]
S 2(52) “goods” means
every kind of movable property
[other than money and securities]
but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be served before supply or under a contract of supply
Sec 2 (102): “Services” means
anything
[other than goods, money and securities]
but includes activities relating to the use of money or its conversion by cash or any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged 4

5. S 2(30) “composite supply” means
Supply made by a taxable person to a recipient
Consisting of two or more taxable supplies of goods or services or both or any combination thereof
Which are naturally bundled and supplied in conjunction with each other in the ordinary course of business
One of which is a principal supply
Sec 2 (74): “mixed supply” means
Two or more individual supplies of goods or services, or any combination thereof
Made in conjunction with each other by a taxable person
For a single price
Where such supply does not constitute a composite supply
Sec 2(119): “works contract” means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property where in transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract. 5

6. Composite Supply / Mixed Supply [ Sec 8]
Tax liability on a composite or a mixed supply shall be determined in the following manner, namely -
A composite supply comprising tow or more supplies, one of which is a principal supply, shall be treated as a supply of principal; and
A mixed supply comprising tow or more supplies shall be treated as a supply of that particular supply which attracts the highest rate of tax.
S 2(90: ‘principal supply”: means the 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. 6

7. Schedule II [Section 7] Activities to be treated as supply of goods or supply of services

8. Any transfer of the title in goods Is a supply of goods
(b)
Lease: Any transfer of right in goods or of undivided share in goods without the transfer of title thereof
Is a supply of services
(c )
Hire purchase: Any transfer of title in goods under an agreement which stipulates that property in goods shall pass at a future date upon payment of full consideration as agreed
Land & Building
Any lease, tenancy, easement, licence to occupy land
Renting: Any lease or letting out of the building including a commercial, industrial or residential complex for business or commerce, either wholly or partly
Treatment of process
Any treatment or process which is applied to another person’s goods 8

9. Transfer of business assets (a)
Where goods forming part of the assets of a business are transferred or disposed by or under the directions of the person carrying on the business so as no longer to form part of those assets, whether or not for a consideration
Such transfer or disposal is a supply of goods by the person.
(b)
Where, by or under the direction of a person carrying on a business, goods held or used for the purpose of business are put to any private use or are used, or made available to any person for use, for any purpose other than a purpose of the business, whether or not for a consideration
The usage or making available of such goods is a supply of services
(c )
Where any person ceases to be a taxable person, any goods forming part of the assets of any business carried on by him
Shall be deemed to be supplied by him in the course of furtherance of his business immediately before he ceases to be a taxable person
Unless:
The business is transferred as a going concern to another person; or
The business is carried on by a personal representative who is deemed to be a taxable person. 9

10. Renting of immovable property;
Supply of services:
Renting of immovable property;
Construction of a complex, building, civil structure or part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier.
Temporary transfer or permitting the use or enjoyment of any IPR;
Development, design, programming, customisation, adaptation, upgradation, enhancement, implementation of information technology software;
Agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act; and
Transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration. 10

11. Works contract as defined in Section 2(119)
Composite supply
(a)
Works contract as defined in Section 2(119)
Shall be treated as a supply of services.
(b)
Supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash deferred payment or other valuable consideration.
Supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration.
Supply of goods 11

12. Schedule III [Section 7(2)] Activities or Transactions which shall be treated neither as a supply of Goods nor a supply of Services 12 12

13. Sale of land and Sale of building (subject to not being a service)
Services by an employee to the employer in the course of or in relation to his employment;
Services by any court or Tribunal established under any law for the time being in force.
Functions of MP, MLC etc.
Services of funeral, burial, crematorium or mortuary including transportation of the deceased.
Sale of land and Sale of building (subject to not being a service)
Actionable claims, other than lottery, betting or gambling.
Sec 7(2)(b): Activities or transactions undertaken by the Central Government, a State Government or local authority in which they are engaged as public authorities as may be notified by the Government on the recommendations of the Council. 13

14. Supplier / Recipient / Supply14

15. Supply – Section 7
All forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business;
Import of services for a consideration whether or not in the course or furtherance of business;
The activities specified in Schedule I, made or agreed to be made without a consideration;
The activities to be treated as supply of goods or supply of services as referred to in Schedule II. 15

16. Schedule I – Section 7 – Activities to be treated as Supply even if made without consideration
Permanent transfer or disposal of business assets where ITC has been availed on such assets.
Supply of goods or services or both between “related persons” or between “distinct persons”, when made in the course or furtherance of business.
Gifts not exceeding Rs 50,000 in value in a financial year by an employer to an employee shall not be treated as supply of goods or services or both.
Sec 25(4): A person who has obtained or is required to obtain more than one registration, whether in one State or UT or more than one State or UT shall, in respect of each such registration, be treated as distinct persons.
Supply of goods – Principal-Agent:
By a principal to an agent where the agent undertakes to supply such goods on behalf of the principal; or
By an agent to his principal where the agent undertakes to receive such goods on behalf of the principal.
Import of services by a taxable person from a related person or from any of his other establishment outside India, in the course or furtherance of business. 16

17. Includes an agent acting as such on behalf of such supplier
Recipient
S. 2(93)
of supply of goods or services or both
In relation to any goods or services or both a)
Where a consideration is payable for the supply of goods or services or both
The person who is liable to pay that consideration. b)
Where no consideration is payable for the supply of goods
The person
To whom the goods are delivered or made available; or
To whom possession or use of the goods is given or made available c)
Where no consideration is payable for the supply of service
The person to whom the service is rendered.
Person
Supplying the said goods or services or both
Includes an agent acting as such on behalf of such supplier
In relation to the goods or services or both
and any reference to a person to whom a supply is made shall be construed as a reference to the recipient of the supply and shall include an agent acting as such on behalf of the recipient in relation to the goods or services or both supplied. 17

18. S 2(107: Taxable person: means a person who is registered or liable to be registered u/s 22 or 24.
S 2(20) : Casual taxable person: means a person who occasionally undertakes transactions involving supply of goods or services or both in the course or furtherance of business, whether as principal, agent or in any other capacity, in a State or a Union territory where he has no fixed place of business.
S 2(94) : Registered person: means a person who is registered u/s 25 but does not include a person having a Unique Identity Number.
S 2(50) / S. 2(7): “fixed establishment” means a place (other than the registered place of business) which is characterised by a sufficient degree of permanence and suitable structure in terms of human and technical resources to supply services, or to receive and use services for its own needs. 18

19. S 2(70) / S. 2(14): “location of the recipient of services”
Where a supply is received at a place of business for which the registration has been obtained.
The location of such place of business.
(b)
Where a supply is received at a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere).
The location of such fixed establishment.
(c )
Where a supply is received at more than one establishment, whether the place of business or fixed establishment.
The location of the establishment most directly concerned with the receipt of the supply;
and
(d)
In absence of such places
The location of the usual place of residence of the recipient. 19

20. S 2(71) / S 2(15): “location of the supplier of services”
Where a supply is made from a place of business for which the registration has been obtained.
The location of such place of business.
(b)
Where a supply is made from a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere).
The location of such fixed establishment.
(c )
Where a supply is made from more than one establishment, whether the place of business or fixed establishment.
The location of the establishment most directly concerned with the provision of the supply;
and
(d)
In absence of such places
The location of the usual place of residence of the supplier. 20

21. Place of Supply of Goods21

22. Some key definitions
Sec 2(86) : “place of supply” means the place of supply referred to in Chapter V of the IGST Act
Sec 2(85) : “place of business” includes:
A place from where the business is ordinarily carried on, and includes a warehouse, a godown or any other place where a taxable person stores his goods, supplies or receives goods or services or both; or
A place where a taxable person maintains his books of account; or
A place where a taxable person is engaged in business through an agent, by whatever name called.

23. Place of supply of goods – Imports & Exports
India : S 2(56) of CGST Act: Means
Territory of the Union as referred to in clauses (2) and (3) of Article 1 of the Constitution;
The territorial waters, continental shelf, exclusive economic zone or other maritime zone as defined in the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976
The seabed and the subsoil underlying the territorial waters; and
The air space above its territory and territorial waters; 23

24. Inter-State & Intra-State24

25. Location of the supplier and the place of supply are in
Criteria
Destination
Nature of supply
Supply of Goods
Location of the supplier and the place of supply are in
Two different States;
Two different UTs;
A State and a UT
Inter-State trade or commerce.
Imported into the territory of India
Till they cross the customs frontier of India
Where the location of the supplier and the place of supply of goods are
In the same State;
Same UT
Intra-State trade or commerce.
Exceptions
Supply of goods to or by a SEZ developer of SEZ Unit
SEZ
Goods imported into the territory of India
Supplies made to a tourist 25

26. Location of the supplier and the place of supply are in
Criteria
Destination
Nature of supply
Supply of Services
Location of the supplier and the place of supply are in
Two different States;
Two different UTs;
A State and a UT
Inter-State trade or commerce.
Imported into the territory of India
India
Where the location of the supplier and the place of supply of services are
In the same State;
Same UT
Intra-State trade or commerce.
Exceptions
Supply of goods to or by a SEZ developer of SEZ Unit 26

27. Supply of Goods or Services or both
Criteria
Destination
Nature of supply
Supply of Goods or Services or both
When the supplier is located in India and
the place of supply is outside India
Inter-State trade or commerce.
To or by a SEZ Developer or a SEZ Unit
SEZ
In the taxable territory, not being an intra-State supply and not covered elsewhere in this Section 7 27

28. Intra-State Supplies of Goods or Services or both
Concurrent levy
Sec 2(21): “Central tax” means Central Goods and Services Tax levied under the CGST Bill, 2017
SGST
IGST
CGST
Sec 2(93): “States tax” means State Goods and Services Tax levied under the SGST Bill, 2017
Sec 2(12): “Integrated tax” means the Integrated Goods and Services Tax levied under the IGST Bill, 2017
Sec 2(9): “Union territory tax” means the tax levied under the Union Territory Goods and Services Tax Bill, 2017
SEZ
Imports
Inter-State Supplies of Goods or Services or both 28

29. Place of Supply of Goods29

30. Place of supply of goods
Sec
Rule
Place of Supply
Remarks
10(1)(a)
Supply involves movement of goods.
Location of the goods at the time at which movement of goods terminates for delivery to the recipient.
Movement may be caused by the supplier or the recipient or any other person.
10(1)(b)
Triangular situation
Goods are delivered by a supplier to a recipient or any other person.
On the direction of a third person [whether acting as an agent or otherwise].
Before or during movement of goods.
Either by way of transfer of title to the goods or otherwise.
The principal place of business of such third person.
Third person shall be deemed to have received the goods. 30

31. Place of supply of goods
Rule
Place of Supply
Remarks
10(1)(c)
Supply does not involve movement of goods.
Location of such goods at the time at time of delivery to the recipient.
10(1)(d)
Goods are assembled or installed at site.
The place of such installation or assembly.
10(1))(e)
Where the goods are supplied on board a conveyance [such as vessel, an aircraft, a train or motor vehicle].
Location at which such goods are taken on board.
Section 10(2): Residuary: Where the place of supply cannot be determined as per above sub-sections, the same shall be determined in a manner as may be prescribed. 31

32. Place of supply of goods – Imports & Exports
Import of goods S 2(10): Means bringing goods into India from a place outside India
S 8(1): Place of supply shall be the location of the importer.
Export of goods S 2(5): Means taking goods out of India to a place outside India.
Sec 11(a) : Place of supply of goods:
Imported into India – location of the importer
Exported from India – location outside India. 32

33. Place of Supply of Services33

34. General Services – Sec 12(2)
Condition
Location
Remarks
Where a supply is made to a registered person
The location of such person.
Where a supply is made to a person other than registered person.
The location of the recipient where the address on record exists.
The location of the supplier of services in other cases. 34 34

35. Description of Service
Immovable property related services
Sec 12 / Sub-section
Description of Service
Place of supply
3(a)
Services directly in relation to immovable property [architects, interior decorators, surveyors, engineers and other related experts or estate agents].
Location at which immovable property or boat or vessel is located or intended to be located.
If immovable property or boat or vessel is located outside India, the place of supply shall be the location of the recipient.
Rent / Lease: Any service provided by way of grant of rights to use immovable property.
Carrying out co-ordination of construction work
3(b)
Service by way of lodging accommodation by a hotel, inn, guest house, homestay, club or campsite including house boat or any other vessel 35

36. Description of Service
Immovable property related services
Sec 12 / Sub-section
Description of Service
Place of supply
3 ( c)
Service by way of accommodation in any immovable property for
Organizing any marriage or reception or matters related therewith;
Official, social, cultural, religious or business function including services provided in relation to such function at such property.
Location at which immovable property or boat or vessel is located or intended to be located.
If immovable property or boat or vessel is located outside India, the place of supply shall be the location of the recipient.
3 (d)
Any services ancillary to above services 36

37. Immovable property related services
Explanation u/s 3: Where the immovable property or boat or vessel is located in more than one State:-
Supply of service shall be treated as made in each State.
In proportion to the value of services separately collected or determined, in terms of contract or agreement entered into in this regard.
In the absence of such contract or agreement, on such reasonable basis as may be prescribed in this behalf. 37

38. Description of Service
Performance based / Event related services
Sec 12 / Sub-section
Description of Service
Place of supply 4
Performance based:
Restaurant & Catering services,
Personal grooming, fitness, beauty treatment,
Health service including cosmetic and plastic surgery.
Location where the services are actually performed. 6
Admission to Events: Services provided by way of admission to an event [cultural, artistic, sporting, scientific, educational or entertainment event or amusement park or any other place] and services ancillary thereto.
Place where the event is actually held. Park or such other place is located. 38

39. Description of Service
Sec 12/ Sub-section
Description of Service
Place of supply 7
Event managers: Services provided by way of organisation of a cultural, artistic, sporting, scientific, educational or entertainment event including supply of services in relation to a conference, fair, exhibition, celebration or similar events.
To a registered person, location of such person.
A person other than a registered person, place be the location where the event is actually held.
If the event is held outside India, the place of supply shall be the location of the recipient.
Where the event is held in more than one State and a consolidated amount is charged:-
Supply of service shall be treated as made in each State.
In proportion to the value of services separately collected or determined, in terms of contract or agreement entered into in this regard.
In the absence of such contract or agreement, on such reasonable basis as may be prescribed in this behalf.
Services ancillary to organization of any of the above events or services, or assigning of sponsorship of any of the above events. 39

40. Description of Service
Performance / Event related services
Sec 12 / Sub-section
Description of Service
Place of supply 5.
Training & Performance Appraisal services
To Registered Person, location of such person.
Other than a registered person, the location where the services are actually performed. 10
Services on board a conveyance such as vessel, aircraft, train or motor vehicle.
Location of first scheduled point of departure of that conveyance for the journey. 40

41. Description of Service
Transportation services
Sec 12 / Sub-section
Description of Service
Place of supply 8
Transportation of goods, including by mail or courier.
To a registered person, the location of such person.
A person other than a registered person, location at which the goods are handed over for transportation. 9.
Transportation of passengers
Where the right to passage is given for future use and the point of embarkation is not known at the time of issue of right to passage.
A person other than a registered person, place where the passenger embarks on the conveyance for a continuous journey.
Explanation: Return journey shall be a separate journey even if the right to passage for onward and return journey is issued at the same time.
As per rules applied to General Services – Sub-section (2). 41

42. Description of Service
Financial Services
Sec 12 / Sub-section
Description of Service
Place of supply 12
Banking and other financial services including stock broking services
Location of the recipient of services on the records of the supplier of services.
If the location of the recipient of services is not on the records of the supplier of services, the location of the supplier of services. 13
Insurance services
To a registered person, the location of such person.
To a person other than a registered person, the location of recipient of services on the record of the supplier of services. 42

43. Description of Service
Advertisement Services
Sec 12 / Sub-section
Description of Service
Place of supply 14
Advertisement services to:
Central Government;
A State Government;
A Statutory body or local authority meant for identifiable States or UT
Location in each such States.
Value of supplies specific to each State shall be in proportion attributable to services provided by way of dissemination in the respective State as may be determined in terms of the contract or agreement entered into in this regard.
In the absence of such contract or agreement, on such reasonable basis as may be prescribed in this behalf. 43

44. Telecommunication Services
Sec 12 / Sub-section
Conditions
Place of supply 11
Telecommunication services including data transfer, broadcasting, cable and direct to home television services
Services by way of
fixed telecommunication line,
leased circuits,
internet leased circuit,
cable or dish antenna.
Location where telecommunication line, leased circuit or cable connection or dish antenna is installed for receipt of services. 44

45. Telecommunication Services
Sec 12 / Sub-section
Conditions
Place of supply 11
Telecommunication services including data transfer, broadcasting, cable and direct to home television services
Post Paid Mobile connection for telecommunication and internet services provided.
Location of billing address of recipient of services on record of the supplier of services.
Pre-paid Mobile connection for telecommunication, internet service and DTH television service are provided [on pre-payment through a voucher or any other means].
Through a selling agent or a re-seller or a distributor of SIM card or re-charge voucher – address of the selling agent etc. as per the record of the supplier of service.
Final subscriber – location where the pre-payment is received or such vouchers are sold. 45

46. In other cases of mobile connection.
Sec 12 / Sub-section
Conditions
Place of supply 11
Telecommunication services including data transfer, broadcasting, cable and direct to home television services
In other cases of mobile connection.
Address of the recipient as per records of the supplier of service.
Where address of recipient as per records of the supplier is not available, the location of supplier of service.
Where pre-paid service is availed or the recharge is made through internet banking or other electronic means of payment
The location of the service recipient on record of the suppler of services. 46

47. Sec 12 / Sub-section
Conditions
Place of supply 11
Telecommunication services including data transfer, broadcasting, cable and direct to home television services
Explanation: Where the leased circuit is installed in more than one State and a consolidated amount is charged for supply of services relating to such circuit, the place of supply of such services shall be taken as being in each of the States in proportion to the value of services provided in each State ascertained from the terms of the contract or agreement entered into in this regard or in the absence of such contract or agreement, on such reasonable basis as may be prescribed in this behalf. 47

48. Place of Supply of Services – Export and Import48

49. Import / Export of Services
Sec 13 / Sub-section
Conditions
Place of supply
Import / Export of Services
Section shall apply to determine the place of supply of services where the location of the supplier of service or the location of the recipient of service is outside India.
Services on goods: Services supplied in respect of goods that are required to be made physically available by the recipient of service to the supplier of service or to a person acting on behalf of supplier of service in order to provide the service.
Location where the services are actually performed.
Where the services are provided from a remote location by way of electronic means, the location where goods are situated at the time of supply of service.
Clause shall not apply where service supplied is in respect of goods temporarily imported into India for repairs and are exported after repairs without being put to any (other) use. 49

50. Description of Service
Export / Import of Services
Sec 13 / Sub-section
Description of Service
Place of supply 4
Services directly in relation to immovable property.
Place where the immovable property is located / intended to be located 5
Admission to Events
Place where the event is actually held. 6
Above any service in sub-sections (3), (4) or (5) are supplied in more than one location, including a location in taxable territory.
Location in the taxable territory. 50

51. Description of Service
Export / Import of Services
Sec 13 / Sub-section
Description of Service
Place of supply 8
Services supplied by a banking company, or a financial institution, or a NBFC, to account holders.
Location of the supplier of service.
Intermediary services
Location of the supplier of service
Services consisting of hiring of means of transport, including yachts but excluding aircrafts and vessels upto a period of one month. 51

52. Description of Service
Export / Import of Services
Sec 13 / Sub-section
Description of Service
Place of supply 9
Transportation of goods, other than by way of mail or courier.
Destination of the goods.
10.
Passenger transportation service
Location where the passenger embarks on the conveyance for a continuous journey.
11.
Services provided on board a conveyance during the course of passenger transport operation, including services intended to be wholly or substantially consumed while on board.
First scheduled point of departure of the conveyance for the journey. 52

53. Import / Export of Services
Sec 13 / Sub-section
Conditions
Place of supply
Import / Export of Services
Online Information and database access or retrieval services.
(OIDAR)
Person receiving such services shall be deemed to be located in the taxable territory if any two of the following non-contradictory conditions are satisfied, viz:
The location of address presented by the recipient of service via internet is in taxable territory;
The credit card or debit card or store value card or charge card or smart card or any other card by which the recipient of service settles payment has been issued in the taxable territory.
The billing address of the recipient of service is in the taxable territory;
The internet protocol address of the device used by the recipient of service is in the taxable territory;
The country code of the (SIM) card subscriber identity module used by the recipient of service is of taxable territory;
The location of fixed land line through which the service is received by the recipient is in taxable territory.
Location of service recipient. 53

54. Prevention of double taxation or non-taxation [S 10(13)]
To prevent double taxation or non-taxation of the supply of a service
For uniform application of rules.
The Central Government shall have the power to notify a description of service or circumstances in which the place of supply shall be the place of effective use and enjoyment of a service. 54

55. TIME OF SUPPLY 55

56. Time of Supply of Goods Sec 12(2): Earliest of the following dates:
Date of issue of invoice by the supplier;
The date on which he is required, under section 28, to issue the invoice with respect to supply.
The “date on which the supplier receives the payment”* with respect to the supply.
Notes:
Where the supplier of goods receives an amount up to Rs 1000/- in excess of the amount indicated in the tax invoice.
Time of supply to the extent of such excess shall, at the option of the said supplier, be the date of issue of invoice.
Explanation 1: The supply shall be deemed to have been made to the extent it is covered by the invoice or the payment, as the case may be.
Explanation 2: *Payment is entered in the books of account or the date on which the payment is credited to his bank account, which is earlier. 56

57. Time of Supply of Goods – Sec 12 (5)
Residue provision: Applicable only in case it is not possible to determine the time of supply under the “specified” provisions.
Time of supply shall be:
In case where a periodical return has to be filed, the date on which such return is to be filed; or
In any other case, be the date on which the CGST / SGST is paid.

58. Time of Supply of Goods – Reverse Charge – Sec 13(3)
Supplies in respect of which tax is paid or liable to be paid on reverse charge basis: Earliest of:
The “date on which the payment is made”*; or
The date immediately following 60 days from the date of issue of invoice by the supplier.
Proviso: Where it is not possible to determine as above, the time of supply shall be the date of entry in the books of accounts of the recipient of supply.
Associated Enterprises: Where the supplier of service is located outside India, the time of supply shall be the date of entry in the books of account of the recipient of supply or date of payment, whichever is earlier.
*Payment is entered in the books of account or the date on which the payment is credited to his bank account, which is earlier.
Sec 13(4) In case of supply of vouchers, by whatever name called, by the supplier:
the date of issue of voucher, if the supply is identifiable at that point;
the date of redemption of voucher, in all other cases. 58

59. Time of Supply of Services – Sec 13(2)
Sec 12(2): Earliest of the following dates:
Date of issue of invoice by the supplier;
The date on which he is required, under section 28, to issue the invoice with respect to supply.
The “date on which the supplier receives the payment”* with respect to the supply.
Notes:
Where the supplier of goods receives an amount up to Rs 1000/- in excess of the amount indicated in the tax invoice.
Time of supply to the extent of such excess shall, at the option of the said supplier, be the date of issue of invoice.
Explanation 1: The supply shall be deemed to have been made to the extent it is covered by the invoice or the payment, as the case may be.
Explanation 2: *Payment is entered in the books of account or the date on which the payment is credited to his bank account, which is earlier. 59

60. Transactional Value – Exclusions – Sec 15(3)
The value of the supply shall not include any discount that is given:
Before or at the time of supply (provided such discount has been duly recorded in the invoice issued in respect of such supply).
After the supply has been effected, provided that:
Such discount is established in terms of an agreement entered into at or before the time of supply and specifically linked to relevant invoices; and
ITC has been reversed by the recipient of the supply as is attributable to the discount on the basis of document issued by the supplier. 60

61. Transactional Value – Rules – Sec 15(4) / 15(5)
Where the value of supply of goods or services cannot be determined under 15(1), the same shall be determined in such manner as may be prescribed.
The value of such supplies as many be notified by the Central Government or State Government in this behalf on the recommendation of the GST Council shall be determined in such manner as may be prescribed. 61

62. INPUT TAX CREDIT 62

63. Input tax Credit – Sec 16
Every registered taxable person entitled to take credit of ITC charged on supply of goods or services to him, which are used or intended to be used in the course of furtherance of his business.
ITC to be credited to the electronic credit ledger.
NO ITC unless Registered taxable person:
is in possession of tax invoice or debit note issued by the supplier registered under the Act.
is in possession of Other prescribed documents.
Has received the goods and / or services;
The tax charged in respect of such supply has been actually paid to the account of the appropriate Government, either in cash or through utilization of ITC
Has furnished the return u/s 39. 63

64. Input Tax Credit – Sec 16
ITC on last delivery of goods in lots: Where goods against an invoice are received in lots or instalments, ITC shall be taken only upon receipt of the last lot or instalment.
Invoices for services to be paid within 3 months: Value of Supply + Tax to be paid to the supplier within 180 days. Otherwise, ITC taken shall be added to output liability along with interest thereon.
No ITC where depreciation is claimed under IT Act on the tax component of the cost of capital goods.
Outer time limit for ITC: No ITC to be taken later than return u/s 39 for the month of September following the end of the financial year or filing of the relevant annual return, whichever is earlier. 64

65. Input Tax Credit – Apportionment - Sec 17
Goods and / or services are used Partly for business purpose and partly for other purposes – ITC attributable to the purposes of business.
Goods and / or services are used Partly for taxable supplies including zero rated supplies and Partly for effecting exempt supplies – ITC attributable to the said taxable supplies including zero-rated supplies.
Exempt supplies shall include supplies on which recipient is liable to pay tax on reverse charge basis under Section 8(3).
Option for Banking Company, financial institution and NBFC:
Avail ITC attributable to the said taxable supplies including zero-rated supplies; or
Avail, every month, an amount equal to 50% of eligible ITC on inputs, capital goods and input services in that month.
Option once exercised not to be withdrawn during the remaining part of the FY. 65

66. Input Tax Credit – ITC Denial – Sec 17(5)
On motor vehicles and other conveyances except when they are used for specified purposes.
On supply of goods and services, namely food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery – except where used for making an outward supply of the same category of goods or services.
Membership of a club, health and fitness centre;
Rent-a-cab, life insurance, health insurance – except where obligatory to employees as per law in force. Government to notify.
Travel benefits extended to employees on vacation such as leave or home travel. 66

67. Input Tax Credit – ITC Denial – Sec 17(5)
Works contract services when supplied for construction of immovable property, other than plant and machinery, except where it is an input service for further supply of works contract service.
Plant and machinery excludes:
Land, building or other civil structures;
Telecommunication towers;
Pipelines laid outside the factory premises.
Goods and / or services on which tax has been paid u/s 9.
Goods and / or services used for personal consumption;
Goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples; and
Tax paid in terms of section 74 (fraud etc), Section 129 (detention), Section 130 (Confiscation) 67

68. Input Tax Credit in GST CGST Input CGST against IGST IGST CGST
Input IGST against
IGST
CGST
SGST
Input SGST against
SGST
IGST 68

69. VALUE OF TAXABLE SUPPLY69

70. Transactional Value
Value of supply of good and / or services shall be the transaction value.
Price actually paid or payable for the said supply of goods and / or services.
Where the supplier and the recipient of the supply are not “related” [defined in section 2(84)].
The price is the sole consideration for the supply. 70

71. Transactional Value – Inclusions – Sec 15(2)
Any taxes, duties, cesses, fees and other charges levied under any statute (if the statutory levies are charged separately by the supplier to the recipient), other than:
SGST under SGST Act
CGST under CGST Act
The Goods and Services Tax (Compensation to the States for Loss of Revenue) Act, 2016
Amount incurred by recipient which the supplier is liable to pay in relation to the supply.
To the extent not included in the price actually paid or payable for the goods and / or services.
Incidental expenses, such as, commission and packaging, charged by the supplier to the recipient of supply
Including any amount charged for anything done by the supplier in respect of supply of goods and / or services at the time of, or before delivery of goods, or supply of services. 71

72. Transactional Value – Inclusions – Sec 15(2)
Interest or late fee or penalty for delayed payment of any consideration for any supply;
Subsidies directly linked to the price
excluding subsidies provided by the Central and State Government.
Explanation: The amount of subsidy shall be included in the value of supply of the supplier who receives the subsidy. 72

73. Questions and Answers
Thank you ! 73