1. Standardised PPT on GST
Indirect Taxes Committee
The Institute of Chartered Accountants of India

2. Disclaimer and Copy right
This presentation has been prepared to provide a standard ‘user presentation’. The views expressed in this presentation are those of Speaker(s). The Institute of Chartered Accountants of India may not necessarily subscribe to the views expressed by the speaker(s). The information cited in this presentation has been drawn from various sources. While every efforts have been made to keep the information cited in this presentation error free, the Institute or any office do not take the responsibility for any typographical or clerical error which may have crept in while compiling the information provided in this presentation. Further, the information provided in this presentation are subject to the provisions contained under different acts and members are advised to refer to those relevant provision also. For clarifications write to us at
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This standardised PPT may be used by any person with due acknowledgement to the Indirect Taxes Committee of ICAI.
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3. (except Place of Supply)
IGST Provisions
(except Place of Supply)
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4. Levy and Collection of IGST – Section 5
To be called ‘Integrated Goods and Services Tax’
To be levied on all inter-State supplies of goods and / or services;
Supplies to be in the course of inter- State trade or commerce;
Value determined u/s 15 of CGST Act (Value of taxable supply);
At the rates notified by CG – 3%, 5%, 12%, 18%, 28% + Cess (if any);
Rate not to exceed 40%;
To be paid by every taxable person;
Not leviable on supply of alcoholic liquor for human consumption;
Leviable from a deferred date on petroleum crude, high speed diesel, petrol, natural gas and aviation turbine fuel;
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5. Levy and Collection of IGST – Sec 5
IGST on goods imported will be levied and collected as per Section 3 of Customs Tariff Act, 1975 including valuation;
IGST on import of goods to be collected at points when custom duties are levied under Section 12 of the Customs Act;
Government, on recommendation of the Council, has the power to specify the categories of supply of goods and/ or services on which RCM shall apply (few amongst notified are advocate services, sponsorship services, insurance agent, GTA services, import of service)
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6. Levy and Collection of IGST – Sec 5
IGST to be paid on RCM basis w.r.t supplies received from un- registered person (presently exempted till September 2018);
CG has power to specify categories of services on which tax will be paid by e-commerce operators as if such services are supplied by such operators (presently notified are hotel accommodation services, rent-a- cab service for transportation of passengers, house keeping services);
Integrated tax to be paid by e-commerce operator even if e-commerce operator has no physical presence in India.
This exception is carved out only in respect of supply of services through an e-commerce operator and will not be applicable to supply of any goods through an e –commerce operator.
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7. Power to grant exemption from tax- Section 6
The Government, on recommendations of the council has the power to exempt GENERALLY from whole or any part of tax leviable:
Absolutely or subject to conditions
The government, on recommendations of the council, has the power to exempt BY SPECIAL ORDER, under circumstances of exceptional nature (to be stated in the order). from payment of tax any goods or services or both on which tax is leviable.
In any exemption notification/ order – the Government may insert a clarification in form of an ‘explanation’ at any time within 1 year of such exemption notification/ order and such explanation inserted shall have retrospective effect, as if it has always been a part of that exemption notification/ order at the first place.
Where an absolute exemption, for whole or part of duty has been granted for some supply, the registered person shall not collect tax in excess of the effective rate on such supply.
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8. (Location of supplier of Goods/Services)
Principles for Determining Supply of Goods and/or Services - Sections 7 and 8
State/UT X
(Location of supplier of Goods/Services)
(Place of Supply)
Intra-State supply
State/UT Y
Inter-State supply
* Subject to provisions of Section 10, 11, 12, 13 of IGST Act relating to place of supply of goods and/ or services
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9. Section 7– Principles to determine a supply as an Inter-State Supply
Determination of supply of goods and/ or services as Inter-State supply
CRITICAL factors: Where the below two are in DIFFERENT STATES / UTs
Location of the supplier and
Place of supply determined u/s 10, 11, 12 or 13 of IGST Act
Specific INCLUSIONS:
Supply of goods in the course of import, till they cross the customs frontiers of India (High-sea sale);
Supply of services imported in India (Import of service);
Supply when place of supply is outside India but supplier in India (Export);
Supply to or by a SEZ developer or a SEZ unit;
Supplies made to a Tourist (Section- 15: Refund of IGST to Tourists)
Residuary supply: Any supply in the taxable territory and which is not an Intra-State supply;

10. Section 8– Principles to determine a supply as an Intra-State Supply
Determination of supply of goods and/ or services as Intra-State supply
CRITICAL factors: Where the below two are in the SAME STATES/UTs
Location of the supplier and
Place of supply determined u/s 10, 11, 12 or 13 of IGST Act
Specific EXCLUSIONS:
Supplies to or by a SEZ developer/ SEZ unit;
Importation of goods till they cross the customs frontiers of India.
Supplies made to a Tourist (Section15: Refund of IGST to Tourists)

11. GST on Goods Intra-State Supply Inter-State Supply CGST + SGST
‘From’ Delhi
‘To’ Delhi
‘To’ Haryana
IGST
One tax – IGST (Rate = CGST+SGST)
Movement for ‘delivery’ relevant;
Inter-Sate supply, if ‘from’ and ‘to’ in different State/UT
Imports – Importer has to pay - Basic Customs Duty (BCD) + IGST
Dual tax – CGST + SGST
Registered office not relevant; location of goods is relevant
Intra-State supply, if ‘from’ and ‘to’ in one State/UT

12. GST on Services Intra-State Supply Inter-State Supply CGST + SGST
Supplier’s billing address
Buyers billing address/ Place of usage
Buyers billing address/ Place of usage
IGST
Dual tax – CGST + SGST
Generally ‘from’ billing address of supplier and ‘to’ billing address of buyer is relevant.
For few services, other factors like place of performance, location of Immovable property is relevant.
One tax – IGST (Rate = CGST+SGST)
Imports – receiver to pay IGST on reverse charge basis

13. Illustrations for determining Nature of Supply
Location of Supplier
Place of Supply
Nature of Supply
Goods
Punjab
Tamil Nadu
Inter-State (IGST)
Chandigarh(UT)
Intra-State (CGST+SGST)
Punjab(SEZ)
Foreign Tourist (in Punjab)
Outside India
India
Delhi(SEZ)
Delhi
Inter-State (IGST)

14. Supply in Territorial Waters- Section 9
Be deemed to in the coastal State/ UT where nearest point of the appropriate baseline is located.
Example:
Repair services are provided by a company in Delhi on a ship moored off the coast of Kochi for a shipping company from United Kingdom, the place of supply of the repair services will not be the waters but Kochi, Kerala.
Lease of ocean exploration equipment by a company in Chennai to a company incorporated in Mumbai to carry out oil exploration off the coast of Andhra Pradesh. the location of supplier will be Andhra Pradesh, albeit of a Chennai company.
Where the location of the supplier is in the territorial waters, the location of such supplier
Where the place of supply is in the territorial waters, the place of supply OR
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15. Refund of IGST paid on supply of goods to tourist leaving India- Section 15
IGST paid on supply of goods to outbound tourists will be refunded if such goods are taken out of India
Conditions and safeguards to be prescribed
Refund allowed only if the goods which are supplied are obtained from a registered taxable person who has complied with all requirements, including those relating issue of invoices
The section does not apply to services.
‘Tourist’ means a person not normally resident in India, who enters India for a stay of not more than 6 months for legitimate non-immigration purpose.
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16. Zero Rated Supply - Sec 16 Zero Rated Supply
Zero rated supplies are allowed free of any taxes. Such supplies are made free of taxes both at the input and output side. This is achieved by the following options:
Allowing credit on input supplies used for Zero rated supplies. Supply of goods of services or both under Bond/ LTU without payment of tax.; or
Allowing credit on input supplies used for Zero rated supplies. Supply of good or services or both on payment of IGST and refund of full IGST paid.
Zero Rated Supply
Export of Goods or Services or both
Supply of Goods or Services or both to a SEZ Developer or SEZ Unit
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17. Apportionment of tax and settlement of funds - Sec 17
Inter-State Supply (to)
IGST Paid (on)
Quantum of IGST
Transfer (to)
Unregistered recipient
IGST paid on inter- State supplies and import of goods or services
Equivalent Central tax applicable on said supplies in intra- State supply
Union
Composition taxable person
Registered taxable person not eligible to input tax credit
Balance amount of IGST
State in which is the place of supply.
Registered taxable person eligible to input tax credit but does not avail it within period specified
Centre in case place of supply fall in any UT.
Note: If this amount cannot be reliably allocated, then rule-of-proportion – total supplies of that State/UT compared to total inter-State supplies during the FY.
Above rule shall be applicable to Interest, Penalty and compounding amount also.
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18. Transfer of input tax credit - Sec 18
IGST
Appropriation
Allocation (to)
Credit of IGST availed
Utilized to pay CGST
Union – Central tax account
Utilized to pay SGST
State – State tax
Utilized to pay UTGST
Union – UT tax
@ of respective State or UT
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19. Refund of IGST wrongfully collected and deposited - Sec 19
A taxable person has considered a supply to be Inter-State supply and paid IGST on the same. The transaction is subsequently found to be Intra-State supply
He will be granted refund of the amount of IGST paid
A taxable person has considered a transaction to be Intra-State supply and paid CGST + SGST on the same. The transaction is subsequently held to be Inter-State supply
He is not required to pay interest on IGST payable
The above rule applies vice-versa
Since the law provides for refund in above situation, no set-off can be done in such cases.
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20. Provisions of CGST applicable to IGST - Sec 20
Specific provisions of CGST Act shall mutatis mutandis apply to IGST Act.
Exceptions to the above are:
TDS shall be 2%. ;
TCS in case of e-commerce operator to be collected upto 2%;
Penalty under IGST Act will be the sum total of penalty leviable under CGST and SGST Act.
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21. Import of Services made on or after appointed day - Sec 21
Import of services made on/after the appointed day, tax payable under GST law, regardless of whether transaction initiated before appointed day:
If tax had been paid in full under earlier law, no tax under IGST
If tax had been paid in part under earlier law, “balance amount of tax” under IGST
Note: Transaction deemed to be initiated before appointed day, if invoice or payment (full or part) received before the appointed day.
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22. Power to make Rules - Sec 22
Power to make Rules lies with Central Government based on recommendation of GST Council;
Rules may be made for prescribing all or any matters under provisions of IGST Act;
The power to give retrospective effect to the rules or any of them from a date not earlier than the appointed day;
Any rules made may provide for penalty upto Rs.10,000 for contravention thereof;
GST Council has powers given under Article 279A of the Constitution.
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23. Power to make regulations and Laying of rules, regulations and notifications - Sec 23 and 24
Board empowered to make regulations which should not be inconsistent with the provisions of the IGST Act and the Rules;
The Act permits making of rules by Government, issuance of regulation by Board and issuance of notification by the Government;
Such rule, regulation and notification, which is a part of delegated legislation is placed before the Parliament;
It is laid before the Parliament, as soon as may be after it is made or issued, when the Parliament is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions;
Before the expiry of the session or successive sessions both Houses may make suitable modifications and would have effect in such modified form.;
However, any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation or notification, as the case may be.
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24. Removal of Difficulties - Sec 25
If the Government identifies that there is a difficulty in implementation of any provision of the GST Legislations, it has powers to issue a general or special order, to carry out anything to remove such difficulty;
Such activity of the Government must be consistent with the provisions of the Act and should be necessary or expedient;
Maximum Time limit for passing such order shall be 3 years from the date of effect of the IGST Act.
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