SUPPLY UNDER GST

DEFINITION OF SUPPLY
Definition of ‘supply’ Under section 2(92) read with section
3 ‘supply’ includes all forms of supply of goods and/or
services such as
 sale,
 transfer,
 barter,
 exchange,
 license,
 rental,
 lease
 disposal made or agreed to be made for a consideration
by a person in the course or furtherance of business.
Schedule I specified the supply.
 SUPPLY WITHOUT CONSIDERATION
IS TAXABLE (SCHEDULE-I)
 Permanent transfer or disposal of business assets – Input
tax Credit already availed for such assets.
 Supply of goods or services between the related persons or
distinct persons ( person who has register in more than one
state or UT, person has establishment at one state and
registration obtained in some other State) with regard to
section 25 of CGST Act,2017
 Any gift given by employer to employee (not exceeding
50,000)
Supply of goods:-
 Agent supply or receive the goods on behalf of principal.
 Import the taxable services from a related person (any of his
other establishments outside India)
 DIFFERENCE BETWEEN THE
MIXED AND COMPOSITE SUPPLY
 DIFFERENCE BETWEEN THE
MIXED AND COMPOSITE SUPPLY
 Two or more individual  Two or more taxable
goods/services sale supply naturally bundled
together by taxable goods/services (each
person in single price. goods cannot be sale
(each goods may separately) : ordinary
separately constitute course of business.
supply.)  Tax treatment :
 Tax treatment : highest principal goods tax rate
rate of tax applicable for applicable for all goods.
all goods.  above supplies cannot
 Above the supplies can be be supplied individually.
individual.
MIXED SUPPLY (sec(2(74)) COMPOSITE SUPPLY(2(30))
 NIKHIL COMFORTS, (AAR-MAHAHRASHTRA)
(2019) 107TAXMANN.COM 223
 Assessee is a person who supply/Installation/Erection
and assembly of complete Air conditioning plant.
Assessee supply end by selling AC and above the
works also. But, it is also nature of works contract.
AAR held that, activities which are forming part of
business and basic charge of business is AC (principal
goods). Works contract can be isolated but, this
business transaction cannot be individual. So, assessee
supply is termed as composite supply at the rate of
28%.
 SUPPLY NOT INCLUDES
Activities and transactions specified in Schedule III –
 Services by an employee to the employer in the course of or in
relation to his employment;
 Services of funeral, burial, crematorium or mortuary
including transportation of the deceased.
 Actionable claims, other than lottery, betting and gambling
 Such activities or transactions undertaken by the Central
Government, a State Government or any local authority in
which they are engaged as public authorities, as may be
notified by the Government on the recommendations of the
Council.
 Act of court or tribunal in acting judicially.( Time being in
force)
 DEEMED SUPPLY OF GOODS &
SERVICES (SCHEDULE-II)
 1.In case of Transfer  of title in goods,  OR,
Right in goods, OR of undivided share in goods
without the transfer of title, OR, transfer under an
agreement which stipulates that property will
pass at a future date upon payment of full
consideration
 2.In case of Land & Building,  – Any lease,
tenancy, easement, license to occupy land or
building ( both for commercial or residential
complex for commercial purpose, fully or partly)
 DEEMED SUPPLY OF GOODS &
SERVICES
 3.Treatment or Process , which is being applied to
another person’s goods is a supply
 4.Transfer of Business Assets –  Where goods forming
part of the assets of a business are transferred or
disposed of, and are no longer forming part of
business  OR Where goods held for business are put to use
for any private use, in such a way, as not for
business OR Where any person ceases to be a taxable
person, any goods earlier forming part of business, unless
 (a) the business is transferred as a going concern to
another person, or
 (b) the business is carried on by a personal
representative who is deemed to be a taxable
person With or Without for a Consideration
 DEEMED SUPPLY OF GOODS &
SERVICES
5.Supply of Services  –
 renting of immovable property;
 construction of a complex, building, civil structure
or a part thereof, including a complex or building
intended for a sale to a buyer, wholly or partly,
except where the entire consideration has been
received after issuance of completion certificate;
 Temporary transfer or permitting the use or
enjoyment of any IPR;
 DEEMED SUPPLY OF GOODS &
SERVICES
6.Composite Supply  – 
 works contract as defined in section 2 (119)
of CGST Act
 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.
 DEEMED SUPPLY OF GOODS &
SERVICES
7.Supply of goods – supply of goods by any unincorporated
association or body of persons to a member thereof for cash,
deferred payment or other valuable consideration.
 Inward Supply  or Purchases– purchase, acquisition or any
other means and whether or not for any consideration       
 Outward Supply or Sales – transfer, barter, exchange,
license, rental, lease or disposal made or agreed to be made
by such person in the course or furtherance of business
 Continuous Supply – Means a supply of services which is
provided, or agreed to be provided, continuously or on
recurrent basis, under a contract, for a period exceeding
three months with periodic payment obligations and
includes supply of such services as the Government may,
subject to such conditions, by notification, specify.
TIME OF SUPPLY
 TIME OF SUPPLY GOODS AND
SERVICES
 Time of supply for goods:-
Date of issue of invoice
Last date on which invoice should have
been issued.
Date of receipt of advance/ payment.
 Time of supply for services:-
Date of issue of invoice.
Date of receipt of advance/payment.
Date of provision
 GST REVERSE CHARGE
 Taxability : Exempted up  Goods : Cashew, Tendu,
to Rs : 5,000 per day. Lottery, Silk yarn,
(more than Rs: 5000 Tobacco.
means, full value is taxable  Services : Advocate,
under Reverse charge) Arbitral, Sponsors of
Govt., director, Insur-
recovery agent, Copyright)
 Self invoice & payment
voucher. It should be
prepared by monthly basis.
 Payment voucher for each
entry. Self invoice (dealing
with unregister person)

SUPPLY BY UNREGISTERED PERSON

SPECIFIED SERVICES OR GOODS
TO REGISTERED PERSON (SEC-9(4))
TIME OF SUPPLY FOR REVERSE
CHARGE (SERVICES)
 Date of payment
 Goods :30 days from the
date of issue of invoice.
 Services :60 days from the
date of issue of invoice
PLACE OF SUPPLY OF GOODS
AND SERVICES
 PLACE OF SUPPLY OF GOODS AND SERVICES
(SEC-10 OF IGST)
 Place of delivery of goods.
 Ownership of goods changes.
 No movement of goods, location of goods may identified
through the time of delivery to the recipient.
 PLACE OF SUPPLY OF SERVICES :-
 location of service recipient.
 A situation, service provided to the unregistered dealer,
the service provider place is take into account.
 SPECIFIED SERVICES :-
 Services related to immovable property.
 Restaurant services, Admission to events,
transportation of goods and passengers, telecom
services, banking, financial and insurance services.
PLACE OF SUPPLY OF GOODS :IMPORT
OR EXPORT (SEC-11 OF IGST)
 Import : location of
importer.
 Export : location of exporter.
 Sec-12 : place of supply of
services (location of supplier
or recipient in India)
LOCATION OF SUPPLIER OR RECIPIENT
IS OUTSIDE IN INDIA(SEC-13)
 If the person unable to find out the recipient of
service, supplier location is considered as place of
supply.
 Physical location : the place where the service is
available to the service recipient.
 Electronic supply : place of goods located at the
time of supply.
 Any goods imported for temporary period and
again exported (repairs)
 Physical presence of recipient or person who
acting on behalf of him.
LOCATION OF SUPPLIER OR RECIPIENT
IS OUTSIDE IN INDIA(SEC-13)
 Immovable property : expert, estate agent, hotel
accommodation, guest house or club or campsite,
any other right to use immovable property. Any
work with regard to construction, architects or
interior decorators.
 Place of supply : admission or organisation of a
cultural, artistic, sporting, educational,
entertainment event or celebration , conference ,
fair, exhibition or similar events, or any other
ancillary services or admission or organisation .
 Above the supply should be at taxable territory.
LOCATION OF SUPPLIER OR RECIPIENT
IS OUTSIDE IN INDIA(SEC-13)
 Location of supplier as place of service:-
 Banking and non-banking company or financial
institution.
 Intermediary services.
 Hiring of transport or yachts. But, excluding
aircrafts and vessels (up to 1 month).
 Supply of goods through mail or courier (place of
destination of such goods)
VALUATION OF SUPPLY UNDER
CGST
 VALUE OF SUPPLY OF GOODS/
SERVICES
 The amount which is wants to
collect from the buyer.
 The amount collected from buyer.
 Transaction take place between the
related parties (transaction value
ascertain through the market price)
DISCOUNT VALUATION OF
SUPPLY
 INPUT TAX CREDIT
 ITC of GST paid shall be allowed to
both parties.
 ITC will not applicable, when the
goods supplied by the composition
dealer to the recipient. The reason is
the composite supplier cannot avail
the input tax credit.
 BARTER AND EXCHANGE
TRANSACTION VALUE
 Barter or Exchange shall treated as two
different supplies.
 Invoice should be issued by both the
parties as consumer and seller.
 Value of goods may not ascertain
through money. But, value of
consideration may identify through the
open market value of goods.
CLASSFICATION OF GOODS
BENEFITS OF CLASSFICATIONS
 Classification : a systematic arrangement in groups or
categories according to established criteria.
 Liveability of tax : identify the taxable and non-taxable.
 Goods-vs- Services : difference the goods and services
with time, place and value of supply.
 Exemptions: policy decision of Government based on
the socio economic factors.
 Rate of tax : Govt., ensure burden of tax and it would
not affect revenue of Govt.,
 Standardization an avoiding differentiation : Govt,
collect the data various traders and industries. Get some
uniformity.
 VARIOUS STEPS IN CLASSIFICATION
OF GOODS AND SERVICES
 Legislation
 Definition of Goods and services
 Activities listed in schedule-II (deemed supply)
 Activities listed in schedule-III (negative supply)
 Identification of mixed or composite supply.
 Identification of HSN code from the rate of
notification.
 Applicability of principles under notification under
Customs Tariff Act, 1975 (No 01/2017 dated
28.6.17)
 Understanding service code with Notification no
11/2017 dated 28.6.17
 VARIOUS STEPS IN CLASSIFICATION OF
GOODS AND SERVICES (LEGISLATION)
 CGST, 2017 (Charging section :9(1))
 SGST, 2017 (Charging section :9(1))
 IGST, 2017(Charging section :5(1))
 UTGST,2017 (Charging section :9(1))
 THE GOODS AND SERVICE
TAX(COMPENSATION TO STATES)
ACT,2017
 CLASSFICATION OF GOODS AS PER
NOTIFICATION NO 01/2017-CT DATED
28.06.2017
 Notification divided into 6 schedule :-
 Schedule :I :2.5%
 Schedule :II : 5%
 Schedule :III : 9%
 Schedule :IV : 14%
 Schedule :V : 1.5%
 Schedule :VI : 0.125%
 Those schedule contain the nature of goods
and rate of tax.
HSN CODE FOR CLASSIFICATION
OF GOODS
HOW TO FIND THE TAX
LIABILITY OF GOODS
HOW TO FIND THE TAX
LIABILITY OF SERVICES
PRINCIPLES OF CLASSIFICATION
OF SERVICES
 Goods classification cannot applicable for services.
 Central product classification by United Nations
Statistical commission as same as our Notification no
11/17-ct dated 28.6.17.
 document issued by Department of Economic and Social
Affairs (Statistical Division) of United Nations in 2015
titled “Central Product Classification-Version 2.1.
 CPC consist of classification of international agreed
concepts, definitions, principles and classification rules.
If contains domestic, foreign commodity trade,
International trade in services.
 Classification promotes harmonization of various types of
statistics related to goods and services.
 PRINCIPLES OF
CLASSIFICATIONS CPC RULES
 Any goods must fit under the cpc
structure. The categories are
homogeneity in nature.
 Cpc classifies service based on the
service or principle of industrial origin.
 Services which are dealt under industrial
origin, input structure, technology and
organization of characteristics of
services.
INPUT TAX CREDIT
 ELIGIBIITY AND CONDITION FOR TAKING
INPUT TAX CREDIT (SEC-16 OF CGST)
 Input tax credit means, the credit of input tax. (sec-
2(63 of CGST)
 Every register person incudes input service
distributor.
 Debit note holder (commercial document issued by
a seller as a means of formally requesting a credit
note)
Note :
 No claim for any fraud, wilful misstatement or
suppression of facts.
 ELIGIBIITY AND CONDITION FOR TAKING
INPUT TAX CREDIT (SEC-16 OF CGST)
 Non-registration person also claim at following
circumstances :-
The person who is acting on behalf of
registered person of working under the
direction of registered person.
 any self assessed return may filed on behalf
of registered person (sec-41)
 When the receipt is following the reverse charge
without consideration, buyer of inward supply
have to pay the tax within the date of 180 days.
Otherwise, the tax + interest.(rule-37 of CGST)
REGISTERED PERSON UNCLAIMED
FOR ITC (SEC-16 OF CGST)
 Registered person claimed depreciation of his
capital goods, plant and machinery under
ITA,1961. – NO ITC
 ITC shall avail up to due date of
September(2018 ) or March (2019 onwards) in
relevant financial year mentioned under invoice
or relevant annual return or whichever is earlier.
 INPUT TAX CREDIT FOR CAPITAL GOODS
SENT FOR JOB WORK(SEC-19 OF CGST)
 Principal manufacture may issue the challan to job
worker.
 Challan should be issued by principal within the
25 days of goods dispatched to job worker.(rule-
45CGST)
 Such challan may sub delegated to other sub
worker also.
 The principal is a one person can claim input tax
credit for capital goods.
 INPUT SERVICE DISTRIBUTOR
 Usually, head officer distribute the tax paid to his own
branches on the basis of proportional. (ISD Invoice)
 It can claim the at the time of paid on inputs for raw
materials or capital goods or machine purchased.
 There should be separate registration for ISD. The
large scale expenditure can share between the own
branches.
 CONDITIONS : individual registration and distribute
the input credit to the recipients.
 RETURN : the amount which is distributed should not
exceed at the whole amount mentioned under ISD
invoice.
DOCUMENTARY REQUIREMENTS AND CONDITIONS
FOR CLAIMING INPUT TAX CREDIT (RULE-36 OF
CGSTR-2017)
 Invoice issued by supplier of goods with respect to
delivery and removal of goods(sec-31).
 The person who is issue invoice for goods and
services but, register at subsequently.
 Debit note holder (commercial document issued by
a seller as a means of formally requesting a credit
note)
 Bill of entry or any other document mentioned
under Customs Act,1962.
 OTHER SITUATION OF LACK OF
CLAIM UNDER ITC
 Capital goods : capital goods includes, plant
and machinery. Entire ITC should be paid
under GST. Claim shall be within one year.
 Taxable person switched to composition
scheme.
 Goods or services wholly exempted.
 Wrongly availed (Department demand back by
show cause notice u/s 73 and 74 of CGST.
 Last day of availing input tax credit : July,
2017 to March 2018.
 REVERSAL OF INPUT TAX
CREDIT UNDER CGST
 SITUATIONS :-
 Recipient fails to pay to the supplier
 Or
 Recipient opts for reverse charge.
 In above the situation, the recipient shall value the supply
along with output tax liability with respect to 180 days.
Default of 180 days, recipient liable for tax as well as
interest on delayed payment(u/s 16(2) of CGST).
 Part of consideration paid means, remaining is considered
by above the way.
 Receipt payment will not affect the ITC claim.
 Reverse ITC not applicable for normal 1 year period.
TRANSFER OF IGST,2017 (SEC-18)
 LIMITATION AND ITC
 Registered person should claim the input tax
credit within the period of one year of date
of issue of tax invoice (sec-18(2) CGST)
 Usually, the taxable person have to fill his
return u/s : 39 of CGST. There is no
provisions for claim input tax credit after
filling of return.
 Advance payment under GST : the person
who named as supplier of Goods and Service
tax cannot issue tax Invoice with respect to
advance payment. ( only receipt voucher)
EXAMPLE FOR ITC
EXAMPLE FOR ITC
 ELECTRONIC CREDIT LEDGER
(SEC-49(4) OF CGST
 ECL is the input tax credit ledger
in electronic from maintained at
the common portal for each
registered taxable person. This
credit can be utilized for GST
liability.
 EXIDE INDUSTRIES LTD. V. COMMISSIONER
OF CENTRAL GOODS AND SERVICES TAX,
RAIGAD ([2019] 105 TAXMANN.COM 192 (SC)
 Assessee is person who has Involving manufacturing
Iron and steel. Assessee showed his return, he
purchased some lead ingots from Jammu and
Kashmir supplier. On the basis of above transactions,
assessee claimed input tax credit for the transaction.
Assessing officer found that, assessee did not receive
any goods. But, assessee claim the ITC. Question of
law : whether ass can claim ITC on un received goods?
 Tribunal and H. C : confirmed the adjudicating
authorities order.
 S. C. (SLP) : assessee claim is not genuine one and that
raw materials not reached the assessee factory.
Dismissed.
 UNION OF INDIA V. SAPNA JAIN
[2019] 106 TAXMANN.COM 212 (SC)
 Under section 69, the assessee who has done the
illegal evasion of tax. As per circumstances of
case, assessee may arrested by authorities. H. C
court granted bail to the assessee. It is contended
before supreme court that, High court should not
grant the pre-arrest bail to the accused
person under GST. the Supreme Court noted the
decision of the Constitution Bench in Kartar Singh
v. State of Punjab1994 (3) SCC 569, wherein it
was held that a claim for pre-arrest protection is
neither a statutory right nor a right guaranteed
under Articles 14, 19 and 21 of the Constitution of
India.
 . STATE OF WEST BENGAL V.
CALCUTTA CLUB LTD [2019] 110
TAXMANN.COM 47 (SC)
 Respondent is running rehabilitation club for his paid
members. In the course of service to members, assessing
officer send a show cause notice or claim the transaction
take place between club and permanent members. But,
respondent club had provided some food and drinks to his
own permanent members. Assessing officer claim that,
providing drinks and food taxable under definition of supply.
Whether such transactions taxable?
 Tribunal and H. C held that, this transaction not considered
as sale. There was only reimbursement of the amount by the
members and therefore, no sales tax could be levied.
 S. C held that, Clubs cannot be treated as distinct from
their members and there is no sale transaction between a
club and its members. So, there is no tax liability for such
transactions.
[2019] 104 TAXMANN.COM 187 (SC)UNION
OF INDIA-V. FILCO TRADE CENTRE (P.) LTD
 Section :140 CGST ACT, deals about transitional
provision for input tax credit. Assessee is a first stage
Dealer of sale of good. Whether assessee can claim ITC
for goods which Were purchased before 1year of Supply
if goods? As per the this transaction, assessee
purchased goods before implementation of GST in India.
But, he already make payment under central sales tax
and free to claim credit under Cenvat credit rules.
 Tribunal and H.C held that, Unconstitutional to claim
under GST S. C. Held that, section 140(3) of CGST act
take away of right of person who has not liable to register
under GST or the lack of Copy of invoice. Otherwise,
assessee can claim ITC under GST. H. C order stayed.
 ALD AUTOMOTIVE (P.) LTD. -V-
COMMERCIAL TAX OFFICER. [2018] 99
TAXMANN.COM 202 (SC)
 Assessee is engaged in the business of buying, selling.
Leasing of motor vehicle. He filed his return under TNVAT-
2006 (A. Y :2007-08). Due to lack invoice, assessee unable
to claim ITC. Subsequently, assessee received invoice from
dealer and filed revised return in next assessment year (u\s
19(11) of TNVAT, assessee may claim input tax credit by
relevant assessment year or before 90 days from the date
of purchase or whichever is later)
 Tribunal and H. C Held that, assessing officer denied the
right of assessee under section 19(11) of TNVAT.
 S. C held that, section 19(11) is mandatory and period for
claiming input tax credit could not have been extended by
Assessing Authority.
RSPL LTD.,-VS-UNION OF INDIA
(2019) 109 TAXMANN.COM 108 (SC)
 Assessee has used certain capital goods for
manufacture. At the same time, treatment of capital
goods was taxable in different way to compare with
current GST regime. If the duty paid before
implementation of GST cannot claimed as a credit
in GST. Whether this distinction ITC treatment
affects the Article-14 and 19(1) (g) of Constitution
of India.
 S.C held that, duty paid on capital goods in transit
and received on or after 1.7.2017 shall be subject
ITC under GST. In other cases, ITC can claim with
respect to the CENVAT credit.
ASSESSMENT AND AUDIT
 KINDS OF ASSESSMENT (SEC-59-
PARTICULARS SECTION HEADING
64 OF CGST)
59 SELF- ASSESSMENT

60 PROVISIONAL ASSESSMENT

61 SCRUTINY ASSESSMENT
ASSESSMENT
62 ASSESSMENT of non-fillers returns

63 ASSESSMENT of unregistered person

64 Summary ASSESSMENT in certain cases

65 Audit by tax authorities

AUDIT
66 Special audit
 SELF ASSESSMENT (SEC-59)
 Register person shall assess his own taxable value and
furnish the return with regard to section 39 of CGST.
 PROVISIONAL ASSESSMENT :-
 The taxable person unable to determine the value of
his supply or
 Unable to ascertain the rate of tax for supply.
 Taxable person has to make application to
commissioner or any other person directed by
commissioner.
 The application shall start the specify the rate of tax
and value of supply(90 days).
 PROVISIONAL ASSESSMENT :-
 Assessee have to execute the surety for 25% of
amount covered under the bond.
 Such assessment basic period is 6 months. This 6
months may extended with consultation of joint
commissioner or additional commissioner for
additional 6 months. But, commissioner can
extend for 4 years.
 Taxable person have to pay on the basis of
provisional order. Otherwise, he has to pay tax
along with interest.
 SCRUTINY OF RETURN
 If any tax officer found the discrepancies in the
filled return, proper officer may seek for
explanation or clarification.
 Above the clarification shall be reply within the
period of 30 days.
 Proper officer may conduct the search or
seizure.
 The document which are collected in the course
of search and seizure. Those documents may
utilize for assessment.
 Rule : 99 of CGST,2017 : taxable person would
pay tax and interest ( Form- ASMT-11)
 ASSESSMENT OF NON-FILER OF
RETURNS/UNREGISTERED PERSON
 If the registered person fails to file return U/S 39 and
45, show cause notice also sent by proper officer(sec-
46).
 The proper officer may conduct the best of his
judgement on the basis of information in his possession.
 Limitation : 5 years.
 Non-filling of return may leads to cancel registration.
 Registered person at least file his nil return.
 Fail to register or registration cancel due to non-filing
the return, proper officer assess the tax liability of
taxable person. (limitation is 5 years : sec-44)
 SUMMARY ASSESSMENT
 The proper officer shall pass summary assessment
order on the basis of evidence showing tax liability
of any taxpayer.
 Show cause notice have to be issued to taxable
person on the verification of Assistant/ Joint
commissioner.
 If the taxable person founds any error in order, he
has make application to JC/AC within the 30 days
of assessment order passed and same time order
shall withdraw and follow the fresh order (Sec-73
and 74)
AUDIT BY TAX AUTHORITIES (SEC-65)
 Commissioner has power to audit any registered
person by his himself or direct any other proper
officer to audit.
 Such audit take place at the premises of registered
person. It should be intimated before 15 days of audit.
 Above the audit should be completed within 3
months.
 Commissioner may extend the period to additional 6
months.
 Auditing authorities shall disclose the finding in audit.
 FOLLOWING SITUATIONS SPECIAL
AUDIT DONE BY AUTHORITY (SEC-66)
 Taxpayer not paid tax.
 Less tax paid by taxpayer.
 Refund provision wrongly invoked.
 Input tax credit wrongly availed or
utilized.
 Special audit for interest on revenue
also.
 ITC claim more than tax paid.
 DIFFERENT KINDS OF AUDIT
DIFFERENC STATUTORY DEPARTMENTA SPECIAL ADUIT MANAGEMENT
E AUDIT L AUDIT OF
AUDIT/REVIEW
SCOPE EXAMINATION OF EXAMINATION EXAMINATION VERFICATION
BOOKS OF OF BOOKS OF OF BOOKS OF REQUESTED BY
ACCOUNTS ACCOUNTS ACCOUNTS (BY ASSESSEE.
NOTICE)

APPOINTME ASSESSEE DEPARTMENT PROPER ASSESSEE

NT OF OFFICER
AUDITORS

FEE ASSESSEE NIL NIL ASSESSEE

TIME LIMIT ON OR BEFORE 3 MONTHS-6 90 DAYS OWN TIME.

31ST DECEMBER MONTHS (EXTEND TO 2 ND

90 DAYS)
 PENALTY FOR CERTAIN
OFFENCES(SEC-122)
 THE TAXABLE PERSON WHO DONE
FOLLOWING OFFENCES SHALL LIABLE FOR
PENALTY :-
 Supply : without invoice, incorrect or false invoice
 Issues invoice without supply.
 collected tax not paid to the Govt., (more than 3 months)
 Collect the tax with contravention of any proceeding of
this act.
 Fails to collect the tax.
 Utilize the ITC in wrongly.
 Fraudulently obtain the refund.
 Distribute the ITC in contradiction with provision.
 PENALTY FOR CERTAIN
OFFENCES(SEC-122)
 Obstructs or prevents any officer in discharge his
duty.
 Suppress the turnover.
 Fails to keep or maintain the document or
information or furnish the false information.
 Any goods confiscated under this act.
 Issues the invoice by using other resister person
GSTIN .
 Tampers, destroy any material evidence or
dispose that evidence.
 Above mentioned dispose evidence confiscated
under this act.
 PENALTY FOR CERTAIN
OFFENCES(SEC-122)
 Any reason or fraud or misstatement or suppression
of facts to eave tax. (penalty of 10% of tax due or
10,000: whichever is higher)
 BELOW THE PERSONS ALSO LIABLE FOR
PENALTY:-
 Any person abets or aids.
 Acquires possession in transporting, removing,
depositing, keeping, concealing, supplying or
purchasing materials.
 Any act contravention of provisions of act.
 Fails to appear before the respective authority.
 Fails to issue invoice.
 GENERAL PENALTY (SEC-125)& GENERAL
DISCIPLINES RELATED TO PENALTY(SEC-126)
 Any person who contradiction of provisions of this act,
that person is liable to pay up to 25,000. but, This section
not applicable for specific penalty provisions.
 No penalty for minor breach : amount tax involved in
less than 5,000.
 Such minor breach should not have fraudulent intention or
gross negligence.
 Any error in filled return may rectify by subsequent act.
 No penalty impose the taxable person without giving
opportunity to hear.
 Taxpayer/ assessee found his own mistake by himself- no
penalty
 No penalty for fixed minor breaches or fixed rate of
percentage.
 POWER TO IMPOSE THE PENALTY
IN CERTAIN CASES (SEC-127)
 Assessee is liable to pay penalty for his default. but, It Is
Not Include The Below The Proceeding Mentioned
Below:-
 Sec-62 assessment of non-filers of return( limitation is 5
years)
 Sec-63 : assessment of unregistered person ( limitation is 5
years).
 Sec-64 :summary assessment certain cases (levy any tax or
assessed or any penalty issued)
 Sec-72 : erroneously refunded or wrongly claim ITC or fraud
or wilful misstatement.
 Sec-74 :determined tax not paid or ITC or Refund.
 Sec-129 : detention of seizure and release of goods or
conveyances in transit.
 Sec-130 : confiscation of goods or conveyances and levy of
PENALTY UNDER IGST (SEC-20)
 Below mentioned acts penalty
are applicable for IGST also;-
 SGST
 CGST
 UTGST
POWER TO WAIVE THE PENALTY
OR FEE OR BOTH (SEC-128)
 Government by official
notification may waive full or
part of penalty with respect to
penalty imposed under
section : 122, 123 and 125.
 GST council also recommend
the same.
PROSECUTION
 APPEAL
 There are two prospective : tax related or
procedural.
 Appeal is statutory right.
 Proper officer may make order under CGST, SGST
and UTGST (order, Appeal, Review, Revision).
 APPELLATE MECHANISM:-
 First appellate authority.
 Appellate Tribunal.
 High court
 Supreme court.
 NO APPEAL AGAINST
FOLLOWING ORDER
 Order : transfer of proceedings from one
officer to another officer.
 Order : seize or retain books of account
and other documents.
 Order : sanctioning prosecution under
this Act.
 Order : allowing payment order and
amount in instalments.
 FIRST APPELLATE AUTHORITY
(SEC-107 OF CGST)
 Limitation : 3 months from the date of assessment
order.
 On the request of the commissioner, review of the
order : limitation of 6 months.
 Any stage hearing of an appeal : adjourn the
recording in writing.
 Fee :-
 Amount of tax, interest, fee and penalty as agreed
upon by appellant from the impugned order.
 10% of tax disputed amount.
 Appeal shall dispose within the period of 1 year.
 Appellate authority shall give opportunity.
 FIRST APPELLATE AUTHORITY
(SEC-107 OF CGST)
 AA may increase the fee, penalty or fine in lieu of
confiscation or reducing the amount of refund or
tax credit. But, it should be done after hearing
assessee or respective person involved.
 AA may opinion that, any tax not paid or short-
paid or erroneously refunded or ITC wrongly
claimed with respect to limitation of assessment.
 AA shall communicate the order to their appellant,
respondent and to the adjudicating authority.
 Copy of order also need to be sent to the
jurisdictional commissioner or on behalf.
 POWER OF REVISIONARY
AUTHORITY (SEC-108 OF CGST)
 Revisionary authority may revise the order by his own
motion or on the request of state or UT Commissioner.
 Revision may consider the additions, deletion and annulling
order.
 Revisionary authority cannot exercise his power following
cases :-
 Order passed by First appellate authority, Appellate tribunal,
H.C and S.C.
 Any assessment order passed under this act shall liable to be
revised within the period of 6 months to 3 years. Otherwise,
there is no provisions of revisions.
 Order already revised.
 The revision order has already been passed.
 APPEAL TO APPELLATE
TRIBUNAL(SEC-112 OF CGST)
 Aggrieved party may file application before
Appellate tribunal.
 ORDER :Appellate authority or Revisionary
authority of CGST, SGST or UTGST.
 Limitation : 3 months from the date of
communication of order.
 Monetary value appeal more than Rs :50,000
(value of tax, Penalty, Fee or Input Tax credit).
 Memorandum of cross objection shall be filed
within the period of 45 days of notice
received.
 APPEAL TO APPELLATE
TRIBUNAL(SEC-112 OF CGST)
 APPEAL FEE :-
 Paid tax, interest, fee and penalty in full as
admitted by him.
 20% of amount disputed in Impugned order.
 APPEARANCE BY AUTHORIZED REPRESENTATIVE :-
 His relatives or regular employees.
 Advocate entitled to practice.
 C.A, C.S or cost accountant who the certificate of
practice.
 Retired officer or commercial tax department any
state or UT(not below the rank of Grade –B(not less
than 2 years).
 APPEAL TO APPELLATE
TRIBUNAL(SEC-112 OF CGST)
 An appeal for rectification
of error or any other
purpose
 Restoration of appeal or
application.
 APPEAL TO HIGH COURT (SEC-
117)
 Appeal from the order of Tribunal to Next forum as
High court.
 Limitation : 180 days of order passed by Tribunal. H.C
may excusive jurisdiction to condone the delay in filling
the application(sufficient cause).
 Substantial question of law is essential. It shall decide
by H.C.
 Above the appeal cases may handled by H.C. but, it
should be bench. The bench contain not less than 2
judges.
 Judgement copy shall be circulated among the members.
 CPC applicable.
 APPEAL TO SUPRME COURT
(SEC-118)
 Appeal to the supreme court shall
lie:-
 Against the order of appellate
tribunal (National or Regional
Bench)
 Against the order of High Court.
 CPC applicable.
 KESORAM INDUSTRIES LTD.,-VS-ASSISTANT
COMMISSIONER OF CENTRAL GST & CENTRAL
EXCISE MANCHERIAL DIVISION (2019) 107
TAXMANN.COM408(SC)
 Assessee delayed in payment of tax. Due to that,
assessing authority claim tax along with interest on
delayed payment. But, competent authority filled
imposed the interest. Assessee filled writ petition
before H.C without invoking provision of section 107
of CGST order of appeal from the assessment order.
Assessee challenged impugned order on the ground of
violation of principle of Natural justice.
 H.C and S.C dismissed as efficacious alternative
remedy of appeal u/s 107 was available to assessee. So,
assessee shall follow the proper hierarchy for filling
appeal through that, assessee can reach H.C and S.C.
 VIRAJ PROFILES LTD-VS-ADDITIONAL
COMMISSIONER OF SALES TAX, MUMBAI
(2018) 96 TAXMANN.COM556(SC)
 This case very similar to section 117 of CGST
Act and Section 27 of Mahaashtra Value Added
Tax Act,2002. whether high court can condone
delay of 134 days in default in filling the appeal
before the H.C?
 Revenue filled the his H.C appeal with delay of
134 without sufficient reason and same H.C
also accept the sufficient reason state by
Revenue.
 S.C held that, H.C order was legally infirm and
required to be seaside.