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Frequently Asked Questions

No. There is no fee/charge levied for the enrolment of a taxpayer with GST System Portal.
: E.g. of GST No. 27AAACA1234A1Z9
27 – State Code,
AAACA1234A – PAN No. of the Registered Person
1 – Entity No. of the same PAN holder in a State
Z – Alphabet by default
9 – Sum Check Digit
Before registering with GST System Portal, you must ensure to have the following information/ documents available with you:
  • Valid Email Address
  • Valid Mobile Number
  • Bank Account Number
  • Bank IFSC
  • Photo
  • PAN No.
  • Authorisation Letter
  • Resolution
  • Address Proof
As per Sub-section (1) of Section 7, Supply includes:
  • all forms of supply of goods or services or both such as 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;
  • 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; and
  • the activities to be treated as supply of goods or supply of services as referred to in Schedule II.
Yes. The CGST Act, 2017 specifies certain provisions separately for supply of goods and supply of services viz., Section 12 and Section 13 provides for ascertaining time of supply of goods and time of supply of services respectively; similarly separate provisions have been specified for ascertaining place of supply of goods and place of supply of services. Further, the rate of tax applicable to supply of goods and supply of services may be different. Accordingly, it is important to distinguish whether a particular transaction involves supply of goods or supply of services.
The Schedule II appended to CGST Act, 2017 enlists the activities which are to be treated as supply of goods or supply of services. One may refer Schedule II with reference to Section 7 to classify whether the transaction involves supply of goods or supply of services.
The activities enumerated in Schedule I will qualify as supply even if made without consideration. Accordingly, such supplies in the absence of consideration are liable to tax. To illustrate, following are the activities which will qualify as supply in the absence of consideration and eventually would be liable to tax:
  • Permanent transfer or disposal of business assets where input tax credit has been availed on such assets.
  • Supply of goods or services or both between related persons or between distinct persons as specified in section 25, when made in the course or furtherance of business. Provided that gifts not exceeding fifty thousand rupees in value in a financial year by an employer to an employee shall not be treated as supply of goods or services or both.
  • Supply of goods;
    • by a principal to his 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 establishments outside India, in the course or furtherance of business.
In terms of Section 25(4) of the CGST Act, 2017, every person is required to obtain separate registration for every branch located in different state or union territory and shall be treated as distinct persons. Accordingly, the supply of goods (stock transfers) to a branch located outside the State would qualify as supply liable to tax in terms of clause 2 to Schedule I of the CGST Act, 2017. Further, it is important to note that, supply of goods to a branch / unit located within the same State having separate registration would also be liable to tax since both such units (supplying unit and recipient unit) would qualify as distinct person in terms of Section 25(4).
In terms of Explanation appended to Section 15 it is clarified that employer and employee will be deemed to be related persons. Accordingly, in terms of proviso to clause 2 of Schedule I, gift by an employer to employee will be a supply and will be liable to tax. However, any gifts for a value not exceeding fifty thousand rupees in a financial year will not qualify as supply and as such will not be liable to tax.
In terms of Section 7 read with Schedule I, following would qualify as supply:
  • Supply of goods by a principal to his agent where the agent undertakes to supply such goods on behalf of the principal; or
  • Supply of goods by an agent to his principal where the agent undertakes to receive such goods on behalf of the principal.
The following import of service will qualify as supply under CGST Act, 2017:
  • Import of service for a consideration whether or not in the course or furtherance of business is a supply;
  • Import of service by a taxable person from a related person or from any of his other establishments outside India, in the course or furtherance of business.
In terms of Section 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.
The illustration of mixed supply appended to Section 2(74) is as follows:
A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drink and fruit juices when supplied for a single price is a mixed supply. Each of these items can be supplied separately and is not dependent on any other. It shall not be a mixed supply if these items are supplied separately.
: In terms of Section 8, the tax liability in case of a mixed supply shall be ascertained with reference to that particular supply which attracts highest rate of tax.
: In terms of Section 9 of the CGST Act, 2017, intra-State supplies are liable to CGST & SGST. In terms of Section 7 of UTGST Act, 2017, intra-State supplies effected by a taxable person located in Union Territory (within the Union Territory) will be liable to CGST & UTGST.
Section 15 of the CGST Act, 2017 specifies that the value of supply of goods or services or both shall be the transaction value, which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply. Further Section 15 provides for certain inclusions which will form part of the value viz., incidental expenses, commission, interest, penalty etc. In cases where the supplier and recipient are related persons or where the price is not the sole consideration, the provisions and method for ascertaining the value of taxable supply as prescribed in valuation rules shall apply.
Generally, the person effecting taxable supplies is liable to pay taxes. However, following are certain exceptions:
  • Reverse charge: Supply of goods or services or both, as may be notified by the Government on the recommendations of the Council, the tax on which shall be paid by the recipient under reverse charge; and
  • E-Commerce: Categories of services as may be notified by the Government on the recommendation of Council the tax on which shall be paid by the electronic commerce operator if such services are supplied through it.
In terms of Section 2(98), the terms reverse charge is defined to mean liability to pay tax by the recipient of supply of goods or services or both instead of the supplier of such goods or services or both.
As per Section 9 of the CGST Act, 2017 there are two types of supplies which are liable to tax under reverse charge mechanism which are:-
  • Specified categories of supply of goods or services or both as notified by government on recommendation of the council.
  • Supply of taxable goods or services or both by an unregistered supplier to a registered person.
No. Section 9(1) which is the charging provision for levy and collection of tax on intra State supplies excludes supply of alcoholic liquor for human consumption. Further, in terms of Section 9(2), tax on supply of petroleum crude, high speed diesel, motor spirit, natural gas and aviation turbine fuel shall be levied with effect from such date as may be notified by the Government on the recommendations of the Council. Accordingly, supply of alcoholic liquor for human consumption is not liable to tax under CGST Act, 2017.
In terms of Section 7 of the IGST Act, 2017, import of goods or services or both shall be treated to be a supply in the course of inter-State trade or commerce. Accordingly, tax under the provisions of IGST Act, 2017 (IGST) shall apply on import of goods or services or both.
No. The power to grant exemption is vested with the Government. In other words, the Government by notification on the recommendations of the council may grant exemption from tax subject to such conditions as may be notified.
The provisions relating to time of supply of goods / services are relevant in ascertaining the time to remit the taxes on a particular transaction involving supply of goods / services under the GST Law. The CGST Act, 2017 provides separate provisions for time of supply of goods and services viz., Section 12 for time of supply of goods and Section 13 for time of supply of services.
Generally, in terms of Section 12 of CGST Act, 2017, the time of supply of goods shall be the earliest of the following:
  • Date of issue of invoice; or
  • Due date of issue of invoice; or
  • Date on which supplier receives the payment; or
  • Date on which payment is entered in books of accounts of the supplier; or
  • Date on which payment is credited to the bank account.
In terms of the Explanation 2 appended to Section 12, the date of payment shall be the earliest of the following dates:
  • The date on which supplier receives the payment; or
  • Date on which payment is entered in books of accounts of the supplier; or
  • Date on which payment is credited to the bank account.
  • Date on which payment is entered in books of accounts of the supplier; or
  • Date on which payment is credited to the bank account.
The time of supply of goods shall be the date of issuance of invoice; or due date for issuance of invoice or receipt of payment by the supplier, whichever is earlier. In the event, the supplier has not received the payment in case of multiple invoices issued for a single consignment of supply, the time of supply shall be earlier of date of issuance of invoice; or due date for issuance of invoice.