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FAQ's GST Registration

Registration under Goods and Service Tax (GST) regime will confer following advantages to the business:
  • Legally recognized as supplier of goods or services.
  • Proper accounting of taxes paid on the input goods or services which can be utilized for payment of GST due on supply of goods or services or both by the business.
  • Legally authorized to collect tax from his purchasers and pass on the credit of the taxes paid on the goods or services supplied to purchasers or recipients.
No. A person without GST registration can neither collect GST from his customers nor claim any input tax credit of GST paid by him.
Where the application for registration has been submitted within thirty days from the date on which the person becomes liable to registration, the effective date of registration shall be date of his liability for registration.

Where an application for registration has been submitted by the applicant after thirty days from the date of his becoming liable to registration, the effective date of registration shall be the date of grant of registration.

In case of suomoto registration, i.e. taking registration voluntarily while being within the threshold exemption limit for paying tax, the effective date of registration shall be the date of order of registration.
Any supplier who carries on any business at any place in India and whose aggregate turnover exceeds threshold limit as prescribed in a year is liable to get himself registered. However, certain categories of persons mentioned in Schedule III of MGL are liable to be registered irrespective of this threshold.

An agriculturist shall not be considered as a taxable person and shall not be liable to take registration. (As per section 9 (1))
As per section 2 (6) of the MGL, aggregate turnover includes the aggregate value of:
  • all taxable and non-taxable supplies,
  • exempt supplies, and
  • exports of goods and/or service of a person having the same PAN.

The above shall be computed on all India basis and excludes taxes charged under the CGST Act, SGST Act and the IGST Act.

Aggregate turnover does not include value of supplies on which tax is levied on reverse charge basis, and value of inward supplies.
As per paragraph 5 in Schedule III of MGL, the following categories of persons shall be required to be registered compulsorily irrespective of the threshold limit:

  • persons making any inter-State taxable supply;
  • casual taxable persons;
  • persons who are required to pay tax under reverse charge;
  • non-resident taxable persons
  • persons who are required to deduct tax under section 37;
  • persons who supply goods and/or services on behalf of other registered taxable persons whether as an agent or otherwise;
  • input service distributor
  • persons who supply goods and/or services, other than branded services, through electronic commerce operator;
  • every electronic commerce operator
  • an aggregator who supplies services under his brand name or his trade name; and
  • such other person or class of persons as may be notified by the Central Government or a State Government on the recommendations of the Council.
Any person should take a Registration, within thirty days from the date on which he becomes liable to registration, in such manner and subject to such conditions as may be prescribed.
No. Every person who is liable to take a Registration will have to get registered separately for each of the States where he has a business operation and is liable to pay GST in terms of Sub-section (1) of Section 19 of Model GST Law.
Yes. In terms of Sub-Section (2) of Section 19, a person having multiple business verticals in a State may obtain a separate registration for each business vertical, subject to such conditions as may be prescribed.
Yes. In terms of Sub-section (3) of Section 19, a person, though not liable to be registered under Schedule III, may get himself registered voluntarily, and all provisions of this Act, as are applicable to a registered taxable person, shall apply to such person.
Yes. Every person shall have a Permanent Account Number issued under the Income Tax Act, 1961 (43 of 1961) in order to be eligible for grant of registration under Section 19 of the Model GST Law.

However as per section 19 (4A) of MGL, PAN is not mandatory for a non-resident taxable person who may be granted registration on the basis of any other document as may be prescribed.
Yes. In terms of sub-section (5) of Section 19, where a person who is liable to be registered under this Act fails to obtain registration, the proper officer may, without prejudice to any action that is, or may be taken under the MGL, or under any other law for the time being in force, proceed to register such person in the manner as may be prescribed.
Yes. In terms of sub-section 7 of MGL, the proper officer can reject an application for registration after due verification. However, it is also provided in sub-section 8 of Section 19, the proper officer shall not reject the application for registration or the Unique Identity Number without giving a notice to show cause and without giving the person a reasonable opportunity of being heard.

Yes, the registration Certificate once granted is permanent unless surrendered, cancelled, suspended or revoked.

FAQ's GST Amendment

Once the applicant is registered under GST, the need for amendments in registration may arise due to several factors such as a change in address, change in contact number, change in business details and so on. In order to amend any information post registration, the taxpayer needs to file an Application for Amendment of Registration.

Application for Amendment of Registration, can be categorized in two types:
  • Application for Amendment of Core fields in Registration
  • Application for Amendment of Non-Core fields in Registration
Any taxpayer of following category, registered under GST, can file Application for Amendment of Registration:
(A) New Registrants & Normal Taxpayers
(B) TDS/ TCS Registrants, UN Bodies, Embassies & Other Notified person having UIN
(C) Non Resident Taxable Person
(D) GST Practitioner
(E) Online Information and Database Access or Retrieval Service Provider
Following fields of the registration application are called core fields.
  • Name of the Business, (Legal Name) if there is no change in PAN
  • Addition / Deletion of Stakeholders
  • Principal Place of Business (other than change in State) or Additional Place of Business (other than change in State)
Fields of the registration application except legal name of the business, Addition/ deletion of stakeholder details and principal place of business or Additional place of business are called non-core fields.

Non-core fields are available for editing, and changes in it are auto populated in registration of the taxpayer. No approval is required from the Tax Official if any amendments are made to these fields by the taxpaye₹
Application for Amendment of Registration cannot be filed when there is:
  • Change in PAN.
  • Change in Constitution of Business resulting in change of PAN.
  • Change in Place of Business from one State to other.

Application for Amendment of Registration cannot be filed for change in PAN because GST registration is PAN-based. You need to make fresh application for registration in case there is change in PAN.

Application for Amendment of Registration form cannot be filed for change in Constitution of Business as it results in change of PAN.

Similarly, Application for Amendment of Registration form cannot be filled if there is change in place of business from one state to the other because GST registrations are state-specific. If you wish to relocate your business to another state, you must voluntarily cancel your current registration and apply for a fresh registration in the state you are relocating your business.
You must submit the application for Amendment of Registration within 15 days from the date of the particular change which has warranted change in the registration application.
Yes, you can save your application for Amendment of Registration after modification for 15 days. However, if you fail to submit your application for amendment of Registration within 15 days of starting/filing/initiating it, the application for amendment in registration will be automatically purged.
“Reasons” for amendment is entered in the Reasons Text box. It is mandatory for taxpayer to specify reasons for each amendment.
Yes, just like your original registration application, you need to digitally authenticate the application for Amendment of Registration before submitting it on the GST Portal using DSC, E-Sign or EVC as the case may be.
Primary Authorized Signatory can be deleted subject to the condition that a new Primary Signatory is added/ provided.
Yes, SEZ details entered while registering as an SEZ unit/SEZ Developer can be amended by filing the application for amendment (core fields). Navigate to the below path on the ‘GST Portal Home > Services > Registration > Amendment of Registration Core Fields‘ link.
If you have already applied for amendment of core field(s) and an ARN is generated and the application is still not approved by any tax authority, then you cannot apply for amendment of non-core field till the time application is approved.
In case of amendment relating to additional place of business, no documents are required to be uploaded.
Amendment to Non-Core fields is auto approved after successful filing by the taxpayer and does not require any processing by the Tax Official.
Amendment to Core fields require approval by the Tax Official. If no action is taken by tax official, then application is auto approved after stipulated time.
Once the amendment application is approved or rejected, you will receive a notification through SMS and e-mail message. Also the approval order (REG 15) can be viewed/downloaded by you at the dashboard. Also amended registration certificate containing the amended details will be available for the taxpayer to download at his dashboard.
Once digitally signed application for amendment of registration is filed, the message of successful submission of application is displayed. You will receive the acknowledgement in next 15 minutes on your registered e-mail address and mobile phone number. SMS and email will be sent to the primary authorized signatory intimating ARN and successful filing of the Form.

FAQ's on E-Way Bill under GST:

Yes. All the registered persons under GST need to register on the portal of e-way bill namely: www.ewaybillgst.gov.in using his GSTIN. Once GSTIN is entered, the system sends an OTP to his registered mobile number, registered with GST Portal and after authenticating the same, the system enables him to generate his/her username and password for the e-way bill system. After generation of username and password of his/her choice, he/she may proceed to make entries to generate e-way bill.
There may be some transporters, who are not registered under the Goods and Services Tax Act,but such transporters cause the movement of goods for their clients. They need to enroll on the e-way bill portal to get 15 digit Unique Transporter Id.
TRANSIN or Transporter id is 15 digit unique number generated by EWB system for unregistered transporter, once he enrolls on the systemwhichissimilar to GSTIN format and is based on state code, PAN and Check sumdigit. This TRANSIN or Transporter id can be shared by transporterwithhis clients, who may enter this number while generating e-waybills for assigning goods to him for transportation.
The transporter is required to provide the essential information for enrolment on the EWB portal. The transporter idis created by the EWB system after furnishing the requisite information. The details of information to be furnished is available in the user manual.
e-way bill is a document required to be carried by a person in charge of the conveyance carrying any consignment of goods of value exceeding fifty thousand rupees as mandated by the Government in terms of Section 68 of the Goods and Services Tax Act read with Rule 138 of the rules framed thereunder. It is generated from the GST Common Portal for eWay bill system by the registered persons or transporters who cause movement of goods of consignment before commencement of such movement.
Section 68 of the Act mandates that the Government may require the person in charge of a conveyance carrying any consignment of goods of value exceeding such amount as may be specified to carry with him such documents and such devices as may be prescribed. Rule 138 of CGST Rules, 2017 prescribes e-way bill as the document to be carried for the consignment of goods in certain prescribed cases. Hence e-way bill generated from the common portal is required.
The consignor or consignee, as a registered person or a transporter of the goods can generate the e-way bill. The unregistered transporter can enroll on the common portal and generate the e-way bill for movement of goods for his clients. Any person can also enroll and generate the e-way bill for movement of goods for his/her own use.
The pre-requisite for generation of eway bill is that the person who generates eway bill should be a registered person on GST portal and he should register in the eway bill portal. If the transporter is not registered person under GST it is mandatory for him to get enrolled on e-waybill portal (https://ewaybillgst.gov.in) before generation of the e-way bill. The documents such as tax invoice or bill of sale or delivery challan and Transporter’s Id, who is transporting the goods with transporter document number or the vehicle number in which the goods are transported, must be available with the person who is generating the e-way bill.
If there is a mistake, incorrect or wrong entry in the e-way bill, then it cannot be edited or corrected. Only option is cancellation of eway bill and generate a new one with correct details.
The e-way bill is required to transport all the goods except exempted under the notifications or rules. Movement of handicraft goods or goods for job-work purposes under specified circumstances also requires e-way bill even if the value of consignment is less than fifty thousand rupees. Kindly refer to the e-way bill rules for other exemptions.
Yes. Validity of the e-way bill depends upon the distance the goods have to be transported. In case of regular vehicle or transportation modes, for every 100 KMs or part of its movement, one day validity has been provided. And in case of Over Dimensional Cargo vehicles, for every 20 KMs or part of its movement, one day validity is provided. And this validity expires on the midnight of last day.
This can be explained by following examples –
(A) Suppose an e-way bill is generated at 00:04 h₹ on 14th March. Then first day would end on 12:00 midnight of 15 -16 March. Second day will end on 12:00 midnight of 16 -17 March and so on.

(B) Suppose an e-way bill is generated at 23:58 h₹ on 14th March. Then first day would end on 12:00 midnight of 15 -16 March. Second day will end on 12:00 midnight of 16 -17 March and so on.
For transportation of goods in relation to all types of transactions such as outward supply whether within the State or interstate, inward supply whether from within the State or from interstate including from an unregistered persons or for reasons other than supply also e-way bill is mandatory. Please refer relevant notifications/rules for details. However, from 1st April 2018, e-way is required only for interstate movement. The e-way requirement for intra state movement will be notified later.
Part-A Slip is a temporary number generated after entering all the details in PART-A. This can be shared or used by transporter or yourself later to enter the PART-B and generate the E-way Bill. This will be useful, when you have prepared invoice relating to your business transaction, but don’t have the transportation details. Thus you can enter invoice details in Part A of eway bill and keep it ready for entering details of mode of transportation in Part B of eway bill.
If you don’t enter the vehicle number for transportation by road or transport document number for other cases, the system will show you the PART-A slip. It indicates that you have not completed the e-way bill generation process. Only when you enter the Part-B details, e-way bill will be generated.
Part-A Slip is entry made by user to temporarily store the document details on the e-way bill system. Once the goods are ready for movement from the business premises and transportation details are known, the user can enter the Part-B details and generate the e-way bill for movement of goods. Hence, Part-B details convert the Part-A slip into e-way bill.
The person in charge of a conveyance shall carry the invoice or bill of supply or delivery challan, bill of entry as the case may beand a copy of the e-way bill number generated from the common portal. Please refer relevant rules for details.
The registered person can generate the e-way bill from his account from any registered place of business. However, he/she needs to enter the address accordingly in the e-way bill. He/she can also create sub-users for a particular business place and assigned the role for generating the e-way bill to that sub user for that particular business place.
Sometimes, taxpayer wants to move the goods himself. E-way bill Portal expects the user to enter transporter ID or vehicle number. So if he wants to move the goods himself, he can enter his GSTIN in the transporter Id field and generate Part-A Slip. This indicates to the system that he is a transporter and he can enter details in Part-B later when transportation details are available.
If the consignor or consignee is unregistered taxpayer and not having GSTIN, then user has to enter ‘URP’ [Unregistered Person] in corresponding GSTIN column.
The validity of the e-way bill starts when first entry is made in Part-B i.e. vehicle entry is made first time in case of road transportation or first transport document number entry in case of rail/air/ship transportation, whichever is the first entry. It may be noted that validity is not re-calculated for subsequent entries in Part-B.
The validity period of the EWB is calculated based on the ‘approx. distance’ entered while generating the EWB. For every 100Kmsone day is a validity period for EWB as per rule and for part of 100 KM one more day is added. For ex. If approx. distance is 310Kms then validity period is 3+1 days. For movement of Over Dimensional Cargo (ODC), the validity is one day for every 20 KM(instead of 100 KM)and for every 20KM or part thereof one more day is added. Please refer relevant rules for details.
The approximate distance for movement of consignment from the source to destination has to be considered based on the distance within the country. That is, in case of export, the consignor place to the place from where the consignment is leaving the country, after customs clearance and in case of import, the place where the consignment is reached the country to the destination place and cleared by Customs.
Yes. As per the e-way bill rules, e-way bill is required to be carried along with the goods at the time of transportation, if the value is more than ₹ 50,000/-. Under this circumstance, the consumer can get the e-way bill generated from the taxpayer or supplier, based on the bill or invoice issued by him. The consumer can also enroll as citizen and generate the e-way bill himself.
The e-way bill once generated cannot be edited or modified. Only Part-B can be updated. However, if e-way bill is generated with wrong information, it can be cancelled and generated afresh. The cancellation is required to be done within twenty four hours from the time of generation.
The system allows editing the details of e-way bill entries before submission. However, if the products/commodities details are entered, it will not allow editing some fields as the tax rates will change. To enable this, please delete the products and edit the required fields and enter the products again.
The system expects you to enter the vehicle number details in proper format. Please see the format details in the help with the vehicle entry field.
To enable proper entry of the vehicle number, the following formats have been provided for the vehicle numbers
Format RC Numbers Example Entry
ABC1234 DEF 234 DEF0234
AB123456 UP 1 345 UP010345
AB12A1234 AP 5 P 23 AP05P0023
AB12AB1234 TN 10 DE 45 TN10DE0045
AB12ABC1234 KE 3 PEW 1265 KE03PEW1265
DFXXXXXXXXXXXXX For Defence Vehicle, start with DF DF02K123
TRXXXXXXXXXXXXX For Temp RC Vehicle, start with TR TRKA01000002
BPXXXXXXXXXXXXX For Bhutan Vehicle, start with BP  
NPXXXXXXXXXXXXX For Nepal Vehicle, start with BP  
If the RC book has vehicle number like DL1A123, then you enter as DL01A0123. The vehicle entered in the e-way bill system is only for information and GST officer will accept this variation.
Any person can verify the authenticity or the correctness of e-way bill by entering EWB No, EWB Date, Generator ID and Doc No in the search option of EWB Portal.
If multiple invoices are issued by the supplier to recipient, that is, for movement of goods of more than one invoice of same consignor and consignee, multiple EWBs have to be generated. That is, for each invoice, one EWB has to be generated, irrespective of the fact whether same or different consignors or consignees are involved. Multiple invoices cannot be clubbed to generate one EWB. However after generating all these EWBs, one Consolidated EWB can be prepared for transportation purpose, if goods are going in one vehicle.
There is a chance that consignee or recipient may reject to take the delivery of consignment due to various reasons. Under such circumstances, the transporter can get one more e-way bill generated with the help of supplier or recipient by indicating supply as ‘Sales Return’ with relevant documents, return the goods to the supplier as per his agreement with him.
If validity of the e-way bill expires, the goods are not supposed to be moved. However, under circumstance of ‘exceptional nature and trans-shipment’, the transporter may extend the validity period after updating reason for the extension and the details in PART-B of FORM GST EWB-01.
Yes, one can extend the validity of the e-way bill, if the consignment is not being reached the destination within the validity period due to exceptional circumstance like natural calamity, law and order issues, trans-shipment delay, accident of conveyance, etc. The transporter needs to explain this reason in details while extending the validity period.
There is an option under e-way bill to extend the validity period. This option is available for extension of e-way bill before 8 hours and after 8 hours of expiry of the validity. Here, transporter will enter the e-way bill number and enter the reason for the requesting the extension, from place (current place), approximate distance to travel and Part-B details. It may be noted that he cannot change the details of Part-A. He will get the extended validity based on the remaining distance to travel.
The transporter, who is carrying the consignment as per the e-way bill system at the time of expiry of validity period, can extend the validity period.
Sometimes, the tax payer raises the bill to somebody and sends the consignment to somebody else as per the business requirements. There is a provision in the e-way bill system to handle this situation, called as ‘Bill to’ and ‘Ship to’.

In the e-way bill form, there are two portions under ‘TO’ section. In the left hand side - ‘Billing To’ GSTIN and trade name is entered and in the right hand side - ‘Ship to’ address of the destination of the movement is entered. The other details are entered as per the invoice.

In case ship to state is different from Bill to State, the tax components are entered as per the billing state party. That is, if the Bill to location is inter-state for the supplier, IGST is entered and if the Bill to Party location is intra-state for the supplier, the SGST and CGST are entered irrespective of movement of goods whether movement happened within state or outside the state.
Sometimes, the supplier prepares the bill from his business premises to consignee, but moves the consignment from some others’ premises to the consignee as per the business requirements. This is known as ‘Billing From’ and ‘Dispatching From’. E-way bill system has provision for this. In the e-way bill form, there are two portions under ‘FROM’ section. In the left hand side - ‘Bill From’ supplier’s GSTIN and trade name are entered and in the right hand side - ‘Dispatch From’, address of the dispatching place is entered. The other details are entered as per the invoice. In case Bill From location State is different from the State of Dispatch the Tax components are entered as per the State (Bill From). That is, if the billing party is inter-state for the supplier, IGST is entered and if the billing party is intra-state for the supplier, the SGST and CGST are entered irrespective of movement of goods whether movement happened within state or outside the state.
While generating e-way bill the taxpayer has a provision to enter the transporter id in the transportation details section. If he enters 15 digits transporter id provided by his transporter, the e-way bill will be assigned to that transporter. Subsequently, the transporter can log in and update further transportation details in Part B of eway bill.
Where the goods are being transported in a semi knocked down or completely knocked down condition, the EWB shall be generated for each of such vehicles based on the delivery challans issued for that portion of the consignment as per CGST Rule 55 which provides as under:
(A) Supplier shall issue the complete invoice before dispatch of the first consignment.
(B) Supplier shall issue a delivery challan for each of the subsequent consignments, giving reference of the invoice.
(C) each consignment shall be accompanied by copies of the corresponding delivery challan along with a duly certified copy of the invoice.
(D) Original copy of the invoice shall be sent along with the last consignment Please note that multiple EWBs are required to be generated in this situation. That is, the EWB has to be generated for each consignment based on the delivery challan details along with the corresponding vehicle number.
E-Way bill is complete only when Part-B is entered. Otherwise printout of EWB would be invalid for movement of goods. Filling up of Part-B of the e-way bill is a must for movement of the goods, except for within the same state movement between consignor place to transporter place, if distance is less than 50 Kms.
No. One needs to transport the goods with an e-way bill specifying the vehicle number, which is carrying the goods. However, where the goods are transported for a distance of less than fifty kilometers within the State from the place of business of consignor to the place of transporter for further transportation, then the vehicle number is not mandatory. Similar exception upto 50 KM has been given for movement of goods from place of business of transporter to place of business of consignee.
No e-Way bill is required for movement of goods upto a distance of 20 Km from the place of business of consignor to a weighbridge for weighment or from the weighbridge back to the place of business of consignor, within the same State, subject to the condition that the movement of goods is accompanied by a delivery challan issued in accordance with Rule 55.
The Vehicle number can be updated by the generator of the e-way bill or the transporter assigned by the generator for that particular e-way bill.
The present transporter can fill or update PART-B of the EWB. The e-way bill can be assigned from one transporter to another transporter, for further movement of consignment. Under this circumstance, the latest transporter, assigned for that e-way bill, can update Part-B of EWB.
The e-way bill for transportation of goods should always have the vehicle number that is actually carrying the goods. There may be requirement to change the vehicle number after generating the e-way bill or after commencement of movement of goods, due to trans-shipment or due to breakdown of vehicle. In such cases, the transporter or generator of the e-way bill can update the new vehicle numbering Part B of the EWB.
If the vehicle breaks down, when the goods are being carried with an EWB, then transporter can get the vehicle repaired and continue the journey in the same EWB. If he has to change the vehicle, then he has to enter the new vehicle details in that EWB, on the eway bill portal, using ‘Update vehicle number’ option in Part B and continue the journey in new vehicle, within the original validity period of e-way bill.
The user can update Part-B (Vehicle details) as many times as he wants for movement of goods to the destination. However, the updating should be done within the validity period.
The authorized transporter can assign the e-way bill to any enrolled or registered transporter for further transportation of the goods. Subsequently, the new transporter can only update the Part-B of the EWB.
Where the goods are transported by railways or by air or vessel, the Part B of the e-way bill can be updated either before or after the commencement of movement. But, where the goods are transported by railways, the railways shall not deliver the goods, unless the e-way bill as required under these rules is produced to them, at the time of delivery.
Some of the consignments are transported by the transporter through transshipment using different vehicles before it is delivered to the recipient at the place of destination. Hence for each movement from one place to another, the transporter needs to update the vehicle number in which he is transporting that consignment in part B of the E Way Bill.
Some of the consignments are transported by the transporter through transshipment using different vehicles before it is delivered to the recipient at the place of destination. Hence for each movement from one place to another, the transporter needs to update the vehicle number in which he is transporting that consignment in part B of the E Way Bill.
Yes. One can transport goods through different modes of transportation – Road, Rail, Air, Ship. However, PART-B of e-way bill have to be updated with the latest mode of transportation or conveyance number using ‘Update vehicle number/mode of transport ’ option in the Portal. That is, at any point of time, the details of conveyance specified in the e-way bill on the portal, should match with the details of conveyance through which goods are actually being transported.
One e-way bill can go through multiple modes of transportation before reaching destination. As per the mode of transportation, the EWB can be updated with new mode of transportation by using ‘Update Vehicle Number’.

Let us assume the goods are moving from Cochin to Chandigarh through road, ship, air and road again. First, the taxpayer generates the EWB by entering first stage of movement (by road) from his place to ship yard and enters the vehicle number. Next, he will submit the goods to ship yard and update the mode of transportation as Ship and transport document number on the e-way bill system. Next, after reaching Mumbai, the taxpayer or concerned transporter updates movement as road from ship yard to airport with vehicle number. Next the taxpayer or transporter updates, using ‘update vehicle number’ option, the Airway Bill number. Again after reaching Delhi, he updates movement through road with vehicle number. This way, the e-way bill will be updated with multiple mode of transportation.
The transporter comes to know that EWBs are assigned to him by the taxpayers for transportation, in one of the following ways:
  • After login at EWB portal, the transporter can go to reports section and select ‘EWB assigned to me for trans’ and see the list. He can also see these details in his dashboard, after login to EWB portal.
  • The transporter can go to ‘Update Vehicle No’ and select ‘Generator GSTIN’ option and enter taxpayer GSTIN of taxpayer, who has assigned the EWB to him.
Some of the consignments move from one place to another place till they reach their destinations. Under this circumstance, each time the consignment moves from one place to another, the transporter needs to enter the vehicle details using ‘Update Vehicle Number’ option in part B of the EWB, when he starts moving the goods from that place. The transporter can also generate ‘Consolidated EWB’ with the EWB of that consignment with other EWBs and move the consignment to next place. This has to be done till the consignment reaches destination. But it should be within the validity period of a particular EWB.
Some of the transporters move the consignments from one place to another place before the goods reach the destination, as per the movement of vehicles. Sometimes the consignments is moved to 8-10 branches of the transporter, before they reach their destination. The consignments reach the particular branch of transporter from different places in different vehicles. These consignments are sorted out, to be transported to different places in different Vehicles. Now, the concerned branch user instead of updating the vehicle for each one of the EWBs, can generate ‘Consolidated EWB’ for multiple EWBs which are going in one vehicle towards next branch/destination.
The e-way bill once generated cannot be deleted. However, it can be cancelled by the generator within 24 hours of generation. If a particular EWB has been verified by the proper officer, then it cannot be cancelled. Further, e-way bill can be cancelled if either goods are not transported or are not transported as per the details furnished in the e-way bill.
Yes, e-way bill can be cancelled if either goods are not transported or are not transported as per the details furnished in the e-way bill. The e-way bill can be cancelled within 24 hours from the time of generation.
E-way bill is a document which is required for movement of goods from supplier’s place of business to recipient’s place. Therefore goods in movement (including when they are stored in the transporter's godown even if godown is located in recipient’s city/town prior to delivery) shall always be accompanied by a valid e-way bill.
The person who causes transport of goods shall generate the e-way bill specifying the details of other person as a recipient of goods. There is a provision in the common portal for the other party to see the e-way bill generated against his/her GSTIN. As the other party, one can communicate the acceptance or rejection of such consignment specified in the e-way bill. If the acceptance or rejection is not communicated within 72 hours from the time of generation of e-way Bill or the time of delivery of goods whichever is earlier,, it will be deemed that he has accepted the details.
As per the rule, the taxpayer or recipient can reject the e-way bill generated on his GSTIN by other parties. The following options are available for him to see the list of e-way bills:
  • He can see the details on the dashboard, once he logs into the system.
  • He will get one SMS everyday indicating the total e-way bill activities on his GSTIN.
  • He can go to reject option and select date and see the e-way bills. Here, system shows the list of e-way bills generated on his GSTIN by othe₹
  • He can go to report and see the ‘EWBs by other parties’.
Consolidated e-way bill is a document containing the multiple e-way bills for multiple consignments being carried in one conveyance (goods vehicle). That is, the transporter, carrying multiple consignments of various consignors and consignees in one vehicle can generate and carry one consolidated e-way bill instead of carrying multiple e-way bills for those consignments.
A transporter can generate the consolidated e-way bills for movement of multiple consignments in one vehicle.
Consolidated EWB is like a trip sheet and it contains details of different EWBs in respect of various consignments being transported in one vehicle and these EWBs will have different validity periods. Hence, Consolidated EWB does not have any independent validity period. However, individual consignment specified in the Consolidated EWB should reach the destination as per the validity period of the individual EWB.
There is an option available under the ‘Consolidated EWB’ menu as ‘regenerate CEWB’. This option allows you to change the vehicle number to existing Consolidated EWB, without changing the individual EWBs. This generates a new CEWB, which has to be carried with new vehicle. Old CEWB will become invalid for use.
Yes, the consolidated e-way bill can have the goods or e-way bills which will be delivered to multiple locations as per the individual EWB included in the CEWB. That is, if the CEWB is generated with 10 EWBs to move 3 consignments to destination Y and 7 consignments to destination X, then on the way the transporter can deliver 3 consignments to destination Y out of 10 and move with remaining 7 consignments to the destination X with the same CEWB. Alternatively, two CEWB can be generated one for 3 consignments for destination Y and another CEWB for 7 consignments for destination X.
The e-way bill can be generated by the registered person in any of the following methods;-
  • Using Web based system
  • Using SMS based facility
  • Using Android App
  • Bulk generation facility
  • Using Site-to-Site integration
  • Using GSP ( Goods and Services Tax Suvidha Provider)
Generally, registered GSTIN holder will be recorded as supplier or recipient and he will be allowed to work as supplier or recipient. If registered GSTIN holder is transporter, then he will be generating EWB on behalf of supplier or recipient. He need to enter both supplier and recipient details while generating EWB, which is not allowed as a supplier or recipient.

To change his position from supplier or recipient to transporter, the taxpayer has to select the option ‘Register as Transporter’ under registration and update his profile. Once it is done with logout and re-login, the system changes taxpayer as transporter and allows him to enter details of both supplier and recipient in EWB as per invoice.
EWB System( www.ewaybillgst.gov.in ) is dependent on GST Common portal (www.gst.gov.in) for taxpayers registration details like legal name/trade name, business addresses, mobile number and e-mail id. EWB System will not allow taxpayer to update these details directly in the EWB portal. If taxpayer changes these details at GST Common portal, it will be updated in EWB system within a day automatically. Otherwise, the taxpayer can update the same instantaneously by selecting the option ‘Update My GSTIN’ in the e-Way bill system and the details will be fetched from the GST common portal (www.gst.gov.in) and updated in the e-Way bill system.
Most of the times, the taxpayer or authorized person himself cannot operate and generate EWBs. He may in that case authorize his staff or operator to do that. He would not like to avoid sharing his user credentials with them. In some firms, the business activities will be operational 24/7 and some firms will have multiple branches. Under these circumstances, the main user can create sub-users and assign different roles to them. He can assign generation of EWB or rejection or report generation activities based on requirements to different sub-use₹

This facility helps him to monitor the activities done by sub-use₹ However, the main user should ensure that whenever employee is transferred or resigned, the sub-user account is frozen / blocked to avoid mis-utilisation.
Over Dimensional Cargo mean a cargo carried as a single indivisible unit and which exceeds the dimensional limits prescribed in rule 93 of the Central Motor Vehicle Rules 1989 made under the Motor Vehicles Act, 1988.
It is their mutual agreement and way out to do the same. If a transporter or courier agency or the e-commerce operator fills PART-A, it will be assumed by the department that they have got authorization from consignor for filling PART-A.
In case of movement of goods by public transport, e-way bill shall be generated by the person who is causing the movement of the goods, in case of any verification, he can show e-way bill number to the proper officer.
It is the value of the goods declared in invoice, a bill of challan or a delivery challan, as the case may be, issued in respect of the said consignment and also include Central tax, State or Union territory tax, Integrated tax and Cess charged, if any. But, it will not include value of exempt supply of goods, where the invoice is issued in respect of both exempt and taxable supply. It will also not include value of freight charges for the movement charged by transporter.
In case of movement of goods by Railways, there is no requirement to carry e-way bill along with the goods, but railways has to carry invoice or delivery challan or bill of supply as the case may be along with goods. Further, e-way bill generated for the movement is required to be produced at the time of delivery of the goods. Railways shall not deliver goods unless the e-way bill required under rules is produced at the time of delivery. But for the purposes of e-way bill, the expression ‘transported by railways’ does not include the ‘leasing of parcel space by Railways’.
As rule 138(7) will be notified from a future date, hence till the notification for that effect comes, transporter needs not generate e-way bill for consignments having value less than Rs 50,000/-, even if the value of the goods carried in single conveyance is more than Rs 50,000/-, till the said sub-rule is notified.
No, these are exempted supply and therefore have been exempted from the requirement of carrying e-way bill.
No, such movement has been exempted from e-way bill.
No, such movement has been exempted from e-way bill.
Yes, temporary vehicle number can also be inserted as vehicle number for the purpose of e-way bill generation.
At present e-way bill is required only for inter-State movement of goods. For intra-State movement of goods the requirement for e-way bill will be introduced in a phased manner, for which rules will be notified by respective states separately.
E-way bill is required in such cases. The temporary number or any identifiable number with the tractor have to be used for filling details of the vehicle number for the purpose of e-way bill generation.
There is no special provision for such supply and hence the registered person who causes movement of goods shall be responsible for the generation of e-Way bill as per the rules.
The value of goods needs to be mentioned as per the explanation 2 of the sub–rule (1) of rule 138.
E-way bills are required even in cases where goods are moved for reasons other than supply. Delivery Challan has to be the basis for generation of e-way bill in such cases.
Consignment value of goods would be the value determined in accordance with the provisions of section 15. It will also include the central tax, State or Union territory tax, integrated tax and cess charged, if any. So shipping charges charged by E- by the e-commerce companies need not be included in the ‘consignment value’.

FAQ's on Registration as Casual Taxable Person

A casual taxable person is a person who has undertaken the sale of goods and/or services or both for the furtherance of his/her business, in the taxable territory, as a principal or an agent or in any other capacity where he has not had any fixed place of business.
A casual taxable person must:
  • Compulsorily register himself under GST as there is no threshold limit for the registration condition of such person
  • Apply for registration at least 5 days before the commencing of his business
  • Not exercising the option to pay taxes under the composition scheme as he is not eligible for that
  • Make an advance payment of the amount of tax which is equivalent to his estimated tax liability for the said registration period
The compulsion of registration under GST arises only when the aggregate turnover of the supplier is above the limit of 10 lakh/20 lakhs, as the case may be. Even so, there are certain exceptions to this. One such exception is the casual taxable person.

Registration for a casual taxable person is compulsory irrespective of his turnover. No special form is required for his registration, i.e. Form GST REG – 01 is to be submitted.
  • To apply for registration, the Casual Taxable Person must declare his Permanent account number, mobile number, email address, state or union territory in part A of Form GST REG – 01.
  • The validation of PAN is done online by the common portal from the database maintained by the CBDT and that of the mobile number and email address by sending different OTPs to the said mobile number and email address.
  • On successful verification of the mobile number, email address and PAN, a temporary reference number is generated and communicated to the Casual Taxable Person on the said mobile number and email address.
  • The applicant can electronically apply in part B of Form GST REG – 01 using the above generated temporary number and get it verified through the electronically verified code, along with documents specified in the said form, either directly or through a Facilitation Centre by the Commissioner.
  • The applicant must make the mandatory advance payment of tax for an amount equivalent to the estimated tax liability of such person for the period for which registration is sought.
  • The said deposit appears in the electronic cash ledger of the applicant and only after that the registration certificate shall be issued electronically. Once the amount is deposited, an acknowledgement shall be issued to the applicant electronically in Form GST REG – 02.
The certificate of registration for a Casual Taxable Person is valid for the period specified in the certificate or 90 days, from the effective date of registration, whichever is earlier. An extension may be granted to the applicant if he intends so however the extension must limit to 90 days and will be allowed only on payment of additional amount tax equal to the estimated tax liability. Form GST REG-11 must be filled and submitted for acquiring an extension. The extension will be granted only if the officer verifying the application is satisfied with the reason and the procedure.
A casual taxable person is also required to file returns of the tax paid by him/her. He is required to furnish the returns electronically through a common portal, either directly or through a facilitation centre notified by the commissioner. He needs to furnish the following:
  • Form GSTR-1 giving the details of outward supplies or goods or services to be filed on or before the 10th day of the following month
  • Form GSTR-2 giving the details of the inward supplies to be filed after the tenth but before the fifteenth day of the following month
  • Form GSTR-3 to be filed after the 15th day but before the 20th day of the following month It should be noted that casual taxable person shall not be required to file annual returns like the normal taxable person.
A casual taxable person is eligible for refunds of the advance tax paid by him at the beginning after adjusting his tax liability. This amount can be refunded only when all the required returns are furnished, for the period for the registration is in force, on time. The refund relating to balance in the electronic ledger to be made in serial no. 14 of Form GSTR-3.
A non-resident taxable person occasionally visits India for the provision of goods and/or services, whereas a casual taxable person is residing in India.

The definition on the non-resident taxable person as per section 2(69) of GST law of India, a taxable person residing outside India and coming to India to occasionally make a sale of goods and/or services or both in the country but has no fixed place of business in India.
A regular taxable person is not a casual taxable person which means he has a fixed place of business in the location where he is practising his business. A regular taxable person is eligible for composition scheme levy. A regular taxable person files annual returns unlike the monthly returns of the casual taxable person.

Thus, any person carrying out the supply of goods and/or services in a place not falling in his taxable territory and who does not own any establishment in that place is referred to as a casual taxable person. He must get himself registered in such states where he intends to carry out business activities and must apply for registration at least 5 days before commencing the business activities.
The option to register is in the New Registration Application for a normal taxpayer.
(1)In PART A of the New Registration Application, select Taxpayer (Reference screenshot (highlighted in red)):
(2)In PART B of the New Registration Application in the Business Details section, select Yes under ‘Are you applying for registration as a casual taxable person?’ as shown in the screenshot below:
(3)Enter the estimated values of supplies and estimated net tax liability as CGST + SGST / IGST and cess for the period for which registration is applied and click the GENERATE CHALLAN button. This option is also available after all tabs of Part B of the Registration application is filled up.
(4)Make the advance tax payment using the payment modes available on the GST Portal and then complete Part B of the registration application and submit it.
(5)Your registration will be granted after due processing by the concerned Tax Official.
Casual Taxable Person cannot opt for composition.
Yes, you can extend your Registration as a Casual Taxable Person once for an additional period of 90 days, if you apply for extension of registration before the expiry of the initial period for which registration was granted.
In case of Registration as a Casual Taxable Person, you are required by law to deposit the tax in advance equivalent to the estimated tax liability based on the estimated turnover for the period for which the casual registration has been obtained. A provisional GSTIN will also be generated and prefilled in the challan. The status of this GSTIN will be provisional until your application is approved by the tax authority and the casual registration is officially granted.
No, you are required by law to deposit the tax in advance equivalent to the estimated tax liability based on the estimated turnover for the period for which the casual registration is being obtained by you.
In case a Casual taxable person has multiple business verticals within one state, the Casual taxable person can apply for multiple registrations within the state.
You can apply for refund of advance tax deposited at the time of filing of application for surrender of registration.
Serial No. Products HSN Code
1. Leather articles (including bags, purses, saddlery, harnesses, and garments) 4201, 4202, 4203
2. Carved wood products (including boxes, inlay works, cases, and casks) 4415, 4416
3. Carved wood products (including tables and kitchenware) 4419
4. Carved wood products 4420
5. Wood turning and lacquerware 4421
6. Bamboo products (decorative and utility items) 46
7. Grass, leaf, reed and fiber products; mats, pouches, and wallets 4601, 4602
8. Paper mache articles 4823
9. Textiles (handloom products, handmade shawls)  
10. Hand-printed textiles 51, 52, 54
11. Zari thread 5605
12. Carpet, rugs and durries 57
13. Textiles (hand embroidery) 58
14. Theatre costumes 61, 62, 63
15. Coir products (including mats and mattresses) 5705, 9404
16. Leather footwear 6403, 6405
17. Carved stone products (including statues, statuettes, figures of animals, writing sets, ashtrays, and candle stands) 6802
18. Stones inlay work 68
19. Pottery and clay products (including terracotta) 6901, 6909, 6911, 6912, 6913, 6914
20. Metal tables and kitchen ware (copper and brass ware) 7418
21. Metal statues, image/statue vases, urns and crosses of the type used for decoration of metals 8306
22. Metal bidriwork 8306
23. Musical instruments 92
24. Horn and bone products 96
25. Conch shell crafts 96
26. Bamboo furniture, cane/rattan furniture  
27. Dolls and toys 9503
28. Folk paintings, Madhubani, Patchitra, Rajasthani miniatures 97
29. Chain switch Any chapter
30. Crewel, Namda, Gabba Any chapter
31. Wicker-willow products Any chapter
32. Toran Any chapter
33. Articles made of shoal Any chapter
Casual taxable persons who supply specified handicraft goods must register if their overall annual turnover exceeds ₹ 20 lakhs, or ₹ 10 lakhs for special category states (except Jammu and Kashmir).

FAQ's on E-Commerce Operator

E-Commerce is defined like this in Section 43B(d) of the MGL (Model GST Law) – Electronic Commerce to mean the supply or receipt of goods and/ or services, or transmitting of funds or data, over an electronic network, primarily the internet, by using any of the applications that rely on the internet, like but not limited to e-mail, instant messaging, shopping carts, web services, universal description Discovery and integration (UDDI), File Transfer Protocol (FTP) and Electronic Data Interchange (EDI) whether or not the payment is conducted online and whether or not the ultimate delivery of the goods and/or services is done by the operator.
Section 43B(e) of the MGL defines an Electronic Commerce Operator (Operator) as every person who, directly or indirectly, owns, operates or manages an electronic platform which is engaged in facilitating the supply of any goods and/or services. Also a person providing any information or any other services incidental to or in connection with such supply of goods and services through electronic platform would be considered as an Operator. A person supplying goods/services on his own account, however, would not be considered as an Operator.

Check the below example:
E-Commerce
Operator
Not an Ecommerce
Operator
Not an Ecommerce
Operator
Amazon and Flipkart are e-commerce Operators because they are facilitating actual suppliers to supply goods through their platform (popularly called Market place model or Fulfillment Model) Amazon and Flipkart will not be treated as e-commerce operators in relation to those supplies which they make on their own account (popularly called inventory Model). Titan 78 supplying watches and jewels through its own website would not be considered as an e-commerce operator for the purposes of this provision.
Yes, as per Section 19 r/w Schedule-III of the MGL, provides that the threshold exemption is not available to e-commerce operators and they would be liable to be registered irrespective of the value of supply made by them.
No. Section 19 r/w Schedule-III of the MGL, provides that the threshold exemption is not available to such suppliers and they would be liable to be registered irrespective of the value of supply made by them.
Section 43B(a) of the MGL defines aggregator to mean a person, who owns and manages an electronic platform, and by means of the application and communication device, enables a potential customer to connect with the persons providing service of a particular kind under the brand name or trade name of the said aggregator. For instance, Ola cabs would be an aggregator.
Yes. Section 19 r/w Schedule-III of the MGL, provides that the threshold exemption is not available to aggregators and they would be liable to be registered irrespective of the value of supply made by them.
In terms of Section 43C(1) of the MGL, the e-commerce operator is required to collect (i.e. deduct) an amount out of the consideration paid or payable to the actual supplier of goods or services in respect of supplies of goods and / or services made through such operator. The amount so deducted/collected is called as Tax Collection at Source (TCS).
E-commerce aggregators are responsible under the GST law for collecting and depositing tax at the rate of 1% from each transaction. Any dealers/traders selling goods/services online would get the payment after deduction of 1% tax.

All the traders/dealers selling goods/services online would need to get registered under GST even if their turnover is less than 20 Lakhs for claiming the tax deducted by aggregato₹

Note: Supplier of services, who is not supplying through an e-commerce operator liable to collect tax at source, having a turnover of less than 20 lakhs are exempted from obtaining registration under GST .
TDS is to be deducted at the rate of 1% on the payments made to the suppliers of taxable goods and/or services, where the total value of such supply, under an individual contract, exceeds ₹ 2,50,000.
The following people/entities need to deduct TDS:
  • A department or establishment of the Central or State Government
  • Local authorities
  • Government agencies
  • An authority or board or any other body
  • Set up by an Act of parliament or a state legislature or established by any government with fifty-one percent or more participation by way of equity or control.
  • The society established by the central government or state government or any local authority
  • Public sector undertakings as notified in the latest notification dated 13th Sep 2018.
The timings for such collection/deduction are earlier of the two events:
  • The time of credit of any amount to the account of the actual supplier of goods and / or services.
  • The time of payment of any amount in cash or by any other mode to such supplier.
In terms of Section 43C(3) of the MGL, the amount collected by the operator is to be paid to the credit of appropriate government within 10 days after the end of the month in which amount was so collected. Further, in terms of Section 43C(4) of the MGL, the operator is required to file a Statement, electronically, containing details of all amounts collected by him for the outward supplies made through his Portal, within 10 days of the end of the calendar month to which such statement pertains.

The said statement would contain the names of the actual supplier(s), details of respective supplies made by them and the amount collected on their behalf. The Form and Manner of the said Statement would be prescribed in the GST Rules.
Such TCS which is deposited by the operator into government account will be reflected in the cash ledger of the actual registered supplier (on whose account such collection has been made) on the basis of the statement filed by the operator. The same can be used at the time of discharge of tax liability in respect of the supplies by the actual supplier.
Yes. In terms of section 43C(10), an officer not below the rank of Joint Commissioner may require the operator to furnish details relating to:
  • Supplies of goods / services effected through the operator during any period;
  • Stock of goods held by actual supplier making supplies through such operator in the godowns or warehouses belonging to the operator and registered as additional place of business by the actual supplier. The operator is required to furnish the above information within 5 working days from the date of service of notice asking such information. In case of failure to furnish such information, the penalty could be extended to ₹ 25,000/- .
Yes, in terms of Section 43C (4), every operator is required to furnish a statement, electronically, of all amounts collected as TCS towards outward supplies of goods and/or services effected through it, during a calendar month within ten days after the end of such calendar month. The statement shall contain, inter alia, the details of the amount collected on behalf of each supplier in respect of all supplies of goods and/ or services effected through the operator and the details of such supplies during the said calendar month.
As per section 43C (6), the details of supplies and the amount collected during a calendar month, and furnished by every operator in his statement will be matched with the corresponding details of outward supplies furnished by the concerned supplier in his valid return filed under section 27 for the same calendar month or any preceding calendar month. Where the details of outward supply, on which the tax has been collected, as declared by the operator in his statement do not match with the corresponding details declared by the supplier the discrepancy shall be communicated to both persons.
As per section 43C (8), the value of a supply relating to any payment in respect of which any discrepancy is communicated and which is not rectified by the supplier in his valid return for the month in which discrepancy is communicated shall be added to the output liability of the said supplier, for the calendar month succeeding the calendar month in which the discrepancy is communicated. The concerned supplier shall, in whose output tax liability any amount has been added shall be liable to pay the tax payable in respect of such supply along with interest, at the rate specified under sub-section (1) of section 36 on the amount so added from the date such tax was due till the date of its payment.

FAQ's on Registration as Input Service Distributor

An Input service distributor (ISD) is a business which receives invoices for services used by its branches. It distributes the tax paid, to such branches on a proportional basis by issuing an ISD invoice. The branches can have different GSTINs but must have the same PAN as that of ISD. Let’s understand with an example.

Head office of ABC limited is located at Bangalore having branches at Chennai, Mumbai and Kolkata. The head office incurred annual software maintenance expense(service received) on behalf of all its branches and received the invoice for the same. Since software is used by allits branches, the input tax credit of entire services cannot be claimed at Bangalore. The same has to be distributed to all the three locations. Here, the Head office at Bangalore is the Input Service Distributor.
An ISD needs to mandatorily take a separate registration in GST REG-1, whether or not, they have an existing registration under the GST Law. An important point that must be noted that the threshold limit prescribed for registration is not applicable to an ISD. During the registration process:
  • Permanent Account Number (PAN) shall be validated online by the common portal from the database maintained by the CBEC
  • Mobile number will be verified through a One-time Password (OTP)
  • Email-address will also be verified through a OTP sent to the registered email address
There are few conditions which must be fulfilled if an Input Service Distributor wants to distribute input tax credit to other locations.
  • Input tax credit of common input services can be distributed amongst those registered persons who have used these services in the course or for the furtherance of business.
  • Input service distributor must issue an ISD invoice. The invoice must indicate that it is issued for distribution purposes only.
  • The input service credit available in a month must be distributed in the same month by the ISD and details regarding the same must be furnished in FORM GSTR-6.
  • ISD shall distribute both eligible and non-eligible credit.
ISD cannot distribute the input tax credit:
  • Paid on Inputs e.g Raw materials and capital goods e.g Machine purchased
  • To outsourced manufacturers or service provide₹
The concept of ISD is a facility made available to business having a large share of common expenditure and billing/payment is done from a centralized location. The mechanism is meant to simplify the credit taking process for entities and the facility is meant to strengthen the seamless flow of credit under GST.
Point of Difference Earlier Regime Current Regime
Who can be Input service distributor? An office of the manufacturer or producerof final products or providerof output service An office of the supplier of goods and/or services
Document based on which credit can be distributed Receives invoices issued under rule 4A of Service Tax Rules, 1994 towards purchase of input services Receives tax invoices issued by supplier towards receipt of input services
How to distribute credit? By issuing invoice, bill or challan for the purposes of distributing to such manufacturer or producer or provider. By issuing an ISD invoice for the purposes of distributing to a supplier of taxable goods and/or services having the same PAN as that of the office referred to above
Type of tax credit that can be distributed The credit of service taxpaid on the said services The credit of CGST (SGST in State Acts) and/or IGST paid on the said services
To whom can it be distributed? To its units and outsourced manufacturers To supplier having the same PAN. i.e credit cannot be distributed to outsourced manufacturers or service provide₹

Thus, on looking into the highlighted differences between the two regimes, distribution of credit is restricted to office having the same PAN. The reason could be due to the shift of taxable event from manufacture to supply. The tax liability would arise at the time of supply which would be ultimately paid by ISD on the utilization of available input tax credit.
  • Tax paid on the services used in course of business by the units of the registered person can only be distributed by ISD to them.
  • ITC available in a month must be distributed in the same month. So, Deferment of the credit distribution is not allowed. It must be ensured by ISD not to distribute credit in excess of what is available with him.
  • An ISD cannot accept any invoices on which tax is to be paid on reverse charge basis. It is to be noted that a recipient of service taxable under reverse charge mechanism is responsible to discharge the tax liability and then only take the credit of the same.


So, if it wants to take reverse charge supplies, it should make sure to get registered as a normal taxpayer but cannot distribute the tax credit available thereof.
  • The credit of CGST, SGST/UTGST or IGST needs to be distributed separately. Also ,the eligible and ineligible credit needs to be apportioned separately.
  • The credit that is attributable to a particular recipient unit is distributed to it even when the unit is unregistered or makes exempt supplies.
  • It is mandatory to register separately as ISD even though it has obtained the registration as a normal taxpayer in REG-01 by check-marking under Serial number 14 of the form that it is registering as ISD.
  • It is possible for different offices of a company to have separate registrations as ISD. In other words, a company can have multiple registrations for its offices as ISD
  • ISD is supposed to issue an invoice known as ISD invoice to those units to whom it intends to distribute the credit of tax paid on services. It should clearly indicate in such invoice that it is issued only for distribution of ITC.
  • He needs to issue ISD credit note if the credit that is already distributed gets reduced for any reason.


Salient points to include in the Invoices by ISD – (For ISD Invoice and ISD credit note)
  • Name, address and GSTIN of the ISD and the recipient unit
  • A consecutive serial number which is either alphabets or numbers or special characters or combination thereof
  • Date of issue
  • Amount of the credit distributed
  • Signature of the ISD or his authorised representative.


Exception: If the ISD is a banking company/ financial institution including NBFC then it is not required to serially number the document.
  • ISD have to file GSTR-06 by the 13th of the month succeeding the relevant month indicating the credit distributed for the relevant month to the recipient units and the ISD invoices issued in the relevant month.


For the month of July 2017, the due date has been deferred to 31st December 2017.
  • The details in the returns are made available to the respective recipient units in GSTR-2A. Accordingly, credit can be claimed by the recipient unit by filing GSTR-2 by including the invoices received by ISD matched with the GSTR-2A. ISD need not file annual returns.
Scenarios where an Input Service distributor cannot distribute ITC:
  • Relating to Input (goods) and Capital goods
  • Relating to services where reverse charge mechanism is applicable
  • To a registered person, not having the same PAN
GST Act provides that the following shall be deemed to be inappropriate distribution of tax credit by Input Service Distributor:
  • Credit distributed to all or any recipient in excess of the amount available for distribution
  • Distributed in an inappropriate ratio to all or any recipient
  • Distributed in excess to what a supplier is entitled to and shall be recovered from such recipient(s) along with interest and the provisions of ‘Demand and Recovery’ shall apply for effecting such recovery.
Yes, the ISD registration is for one office of the taxpayer which will be different from the normal registration.
The revenue generating units have GST liability, so rightly the ITC on those services used by them must be allocated to them to use the tax credit to set off against their tax liability.
Yes. Different offices of a taxpayer can apply for ISD registration.
Yes, different offices like marketing division, security division etc. may apply for separate ISD.
The credit distributed in contravention of provisions of Act could be recovered from the recipient to which it is distributed along with interest.
No, the ISDs need to file only a return in Form GSTR- 6 and the return has the details of credit received by them from the service provider and the credit distributed by them to the recipient units. Since their return itself covers these aspects, there is no requirement to file a separate statement of inward and outward supplies.
  • Issue of debit note :

If any debit note is issued to the ISD by the supplier of service, the additional credit of tax that he gets on such debit note should be distributed by him in the month in which he includes the Debit note in GSTR-6.

  • Issue of credit note :

If any credit note is issued to the ISD by the supplier of service, the credit of tax that gets reduced in such credit note should be apportioned by him to the recipients in the same proportion as the original credit that was distributed.

Such apportioned credit gets reduced from the credit of tax distributed in the month in which the credit note is included in GSTR-6.

However, if the amount to be reduced exceeds amount of tax credit to be distributed, then such excess shall be added to the output tax liability of the Recipient.

Same process shall be followed for all those cases where the credit distributed needs to be reduced for any reason e.g: credit distributed to wrong person ISD will be required to reconcile each credit available for distribution and credit distributed w.r.t. original invoices and Debit/Credit note received from supplier. Original Invoices, Amendment in Invoices, Debit/Credit note received from supplier will have to be dealt with due care and furnish in FORM GSTR-6.

FAQ's on Non Resident Taxable Person under GST?

Non-resident taxable person under GST is any person or business or not-for-profit who occasionally undertakes transactions involving supply of goods or services or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India. Hence, any foreign person or foreign business or organisation supplying goods or services to India would be a non-resident taxable person – requiring compliance with all GST regulations in India.
All non-resident taxable persons are required to obtain GST registration in India, irrespective of aggregate annual turnover or any other criteria. Further, the GST Act and Rules specify that all non-resident taxable persons must obtain GST registration 5 days prior to the commencement of business. Hence, its important for foreign businesses supplying goods and services to India to obtain GST Registration at the earliest.
Prior to beginning the process for applying for GST registration, foreign businesses or foreign applicants must identify a person in India to act as its authorised representative for GST compliance and obtain PAN in India for the foreign entity (optional). As per GST rules, the application for GST registration made by a non-resident taxable person should be signed by his authorized signatory who shall be a person resident in India having a valid PAN.

Hence, once the authorised signatory is engaged, Indian GST registration process can be started for non-resident taxable persons.

To apply for GST registration as a non-resident taxable person, application must be submitted in FORM GST REG-09. GST registration is PAN based for regular taxpaye₹ However, in the case of non-resident taxable persons, the GST registration application can be submitted with a tax identification number or unique number on the basis of which the entity is identified by the Government of that country or its PAN, if available.
In case of a non-resident taxable person supplying online information and data base access or retrieval (OIDAR) services to a non-taxable online recipient, then application in FORM GST REG-10 must be submitted electronically.
OIDAR Services has been defined in the IGST Act as services whose delivery is mediated by information technology over the internet or an electronic network and the nature of which renders their supply essentially automated and involving minimal human intervention, and impossible to ensure in the absence of information technology. Some examples of OIDAR services include:
  • Online advertising service providers
  • Cloud service providers
  • Providing e-book, movie, music, software and other intangibles via telecommunication networks or the internet
  • Providing data or information, retrievable or otherwise, to any person, in electronic form through a computer network
  • Digital data storage services
  • Online gaming services
  • Online supplies of digital content like movies, television shows, music, etc.
OIDAR service providers with a place of business in India can obtain GST Registration through the normal method by applying as through the GST common portal.
All OIDAR service providers supplying services to residents in India and not located in India are also required to comply with GST regulations. Any OIDAR service provider supplying online information and data base access or retrieval services from a place outside India to a non-taxable online recipient is required to obtain GST registration by filing GST REG-10.

The application for GST Registration for OIDAR service providers can be submitted electronically with a self-attested copy of valid passport of the promoters and tax identification number or unique identification number issued by the foreign Government or PAN. The application for GST registration must be submitted atleast 5 days prior to the commencement of business in India.

Foreign companies can appoint a representative in India for obtaining GST registration, filing GST returns and paying GST payments on behalf of the foreign entity.
OIDAR service providers located in India would have to file GSTR-1, GSTR-2, GSTR-3 and annual GST return like a regular taxpayer.
OIDAR service providers located outside India are required to file Form GSTR-5A on or before the 20th of each month. Similar to the requirement for registration, all OIDAR service providers located outside India are required to appoint a representative in India for filing of GST returns and ensuring compliance under GST.

Form GSTR-5A is a simplified form and the details to be provided in Form GSTR-5A include:
  • Details of taxable outward supplies made to consumers in India with details like place of supply (State/UT), rate of tax, taxable value, IGST and Cess.
  • Calculation of interest, penalty or any other amount
  • Tax, interest, late fee and any other amount payable and paid
Under GST, the supplier of goods and services is normally made liable for the collection and payment of IGST or CGST and SGST to the Government. However, OIDAR services has been placed under the list of Reverse Charge Services under GST, making the recipient of the service liable for payment of GST. Hence, all business entities receiving OIDAR services in India are required to pay GST on behalf of the supplier.
The following documents must be provided by the non-resident taxable person during the GST registration process:

Proof of Principal Place of Business
  • For own premises – Any document in support of the ownership of the premises like Latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.
  • For Rented or Leased premises – A copy of the valid Rent / Lease Agreement with any document in support of the ownership of the premises of the Lessor like latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.
  • For premises not covered above – A copy of the Consent Letter with any document in support of the ownership of the premises of the Consenter like Municipal Khata copy or Electricity Bill copy. For shared properties also, the same documents may be uploaded.


Identity Proof
  • Scanned copy of the passport of the Non -resident taxable person with VISA details. In case of a business entity incorporated or established outside India, the application for registration shall be submitted along with its tax identification number or unique number on the basis of which the entity is identified by the Government of that country or it’s PAN, if available.
  • In case of Company/Society/LLP/FCNR/ etc. person who is holding power of attorney with authorization letter.
  • Scanned copy of Certificate of Incorporation if the Company is registered outside India or in India.
  • Scanned copy of License is issued by foreign country, if available.
  • Scanned copy of Clearance certificate issued by Government of India, if available.


Bank Account Proof
  • Scanned copy of the first page of Bank passbook / one page of Bank Statement Opening page of the Bank Passbook held in the name of the Business – containing the Account Number, Name of the Account Holder, MICR and IFSC and Branch details.
Non-resident taxable persons are required to appoint an authorized representative in India. An authorization or copy of Resolution of the Managing Committee or Board of Directors authorizing the authorised representative must be provided in the specific format
The certificate of registration for a Non resident Taxable Person is valid for the period specified in the certificate or 90 days, from the effective date of registration, whichever is earlier. An extension may be granted to the applicant if he intends so however the extension must limit to 90 days and will be allowed only on payment of additional amount tax equal to the estimated tax liability. Form GST REG-11 must be filled and submitted for acquiring an extension. The extension will be granted only if the officer verifying the application is satisfied with the reason and the procedure.
  • Name of Applicant must be entered as per the passport.
  • It is mandatory for the applicant to apply for GST registration on common portal by filing form GST REG-09 at least 5 days before commencement of the business.
  • Tax identification number / unique number (number through which the entity is identified by the respective Government) or PAN (if applicable) is necessary to be submitted along with the application, in case of business entity incorporated or established outside India.
  • The applicant must be duly signed or verified through EVC.

FAQ's on Surrender or Cancellation of GST registration:

While a taxpayer can opt to cancel registration himself, a Proper Officer can is also authorised to do so. The provisions related to this are covered in section 29(1) of CGST Act 2017.
  • Cancellation of GST registration by a registered person (or his legal heirs)
  • Cancellation of GST registration by the Proper Officer
You cannot simply cancel your registration for any reason. You can opt can opt for cancellation of registration for the following reasons:
  • If the business of Registered Person has been discontinued.
  • If the Registered business has been sold or transferred to some other entity, such other entity needs to register under GST.
  • If the person or business is no longer liable for GST registration (Migrated GST Persons can cancel registration if their supply is exempted or turnover is less than threshold exemption limit).


In case of voluntary registration (taken despite not being liable for), no cancellation is allowed until the expiry of one year from the effective date of registration.
Your registration can also be cancelled by a Proper Officer if he finds certain specified defaults in your registration. But before cancelling your registration, he will give you an opportunity to be heard on the following grounds:
  • You have contravened prescribed provisions and rules of the Act.
  • You being a Composition taxpayer failed to furnish returns for three consecutive tax periods.
  • You being a Normal taxpayer failed to furnish returns for a continuous period of six months;
  • You had opted for voluntary registration but failed to do business within six months from the date of registration;
  • You had obtained registration by means of fraud, willful misstatement or suppression of facts.
If you opt to cancel your registration, you need to apply for it on the GST Common Portal. You must do this within 30 days of the event which made you cancel your registration. You will need data of stock held on the date and the quantum of dues of payments and credit reversal, and the particulars of payments made.

After you apply for cancellation, the Proper Officer will review your application. Once he is satisfied with it, he will cancel the registration within 30 days from the date of application or the date of reply to notice.
If you have any pending tax liability or any other obligation, the cancellation of your GST registration will not affect it. You will still be liable to discharge such obligation. If your registration is cancelled, you will be liable to pay an amount, by way of debit in the electronic credit ledger or electronic cash ledger, equivalent to higher of:
  • the input credit in semi-finished / finished / raw stock of goods on the day immediately before the date of cancellation
  • output tax payable on such goods.

For capital goods or plant and machinery, you will have to pay the higher of:
  • the input credit taken on such capital goods, reduced by a certain percentage or
  • the tax applicable on the transaction value of such capital goods.
Here is a list of forms required for GST cancellation process:
Name of Form Purpose of Form
Form GST REG 16 Cancellation of registration by registered person
Form GST REG 17 For GST Officer to issue show cause notice for cancelling registration
Form GST REG 18 For registered person to reply to show cause notice by registered person
Form GST REG 19 For GST Officer to pass order for cancellation of GST registration by
Form GST REG 20 For registered person to stop the cancellation proceedings based on explaination from Form GST REG 18
Form GST REG 21 For registered person to apply for revocation of cancellation
Form GST REG 22 For GST Officer to pass order for revoking cancellation of GST registration

FAQ's on Revocation of Cancellation of GST registration:

The GST Act is very comprehensive and covers various situations a taxpayer may face with provision and procedures. In this article, we look at the procedure for revocation of GST registration cancellation order along with the applicable forms. The provision for revocation are contained under rule 23 of the CGST Rules, 2017.

Note: Revocation of GST registration can be initiated if a GST registration certificate has been cancelled by GST authorities.
Any registered taxable person can apply for revocation of cancellation of GST registration within a period of 30 days from the date of service of order of cancellation of GST registration. It must be noted that the application for revocation can be done only during the circumstances when the registration has been cancelled by the proper officer on his own motion. Hence, revocation cannot be used when GST registration was cancelled voluntarily by a taxpayer.
Application in FORM GST REG-21 needs to be filed by the registered person, for revocation of GST registration, either directly or through a facilitation centre notified by the Commissioner.

  • Online Revocation Procedure
Following are the steps which a registered person needs to be followed, who wants to apply for revocation online through the GST Portal:
1. Access the GST Portal at www.gst.gov.in.
2. In order to enter into the account, enter the username and appropriate password.
3. In the GST Dashboard, select services, under services select registration and further under registration select application for revocation of cancelled registration option.
4. Select the option of applying for revocation of cancelled registration. In the select box, enter the reason for revocation of GST registration cancellation. Further, you need to choose appropriate file to be attached for any supporting documents and you need to select verification checkbox and select name of authorized signatory and fill up the place filed box.
5. The final step would be to select SUBMIT WITH DSC OR SUBMIT WITH EVC box.

  • Processing of Application
When the proper officer is satisfied that the reason being provided for revocation of cancellation of registration is appropriate, then, the officer will revoke the cancellation of registration. The time period of revocation, by the proper officer, is 30 days from the date of application. The proper officer is required to pass an order revoking the cancellation of registration in FORM GST REG-22.

  • Rejection of Application
If a GST officer is not satisfied with the revocation application, the officer would issue a notice in FORM GST REG-23. On receipt of the notice, the applicant is required to furnish a suitable reply in FORM GST REG-24 within a period of 7 working days from the date of service of the notice. On receipt of a suitable reply from the applicant, the officer is required to pass a suitable order in FORM GST REG-05 within a period of 30 days from the date of receipt of a reply from the applicant.
UIN Holders (i.e. UN Bodies, Embassies and Other Notified Persons), GST Practitioner or in case the registration is cancelled on the request of the taxpayer or legal heir of the taxpayer, cannot apply for revocation of cancelled registration.
The taxpayers must follow the below following steps for the Revocation of Cancellation of GST Registration online.
  • Visit GST Portal
Step 1: Firstly, the taxpayers have to visit the Goods and Services Tax portal for the Revocation of Cancellation of GST Registration.
Step 2: Revocation of Cancellation of GST Registration

  • Login into Portal
Step 1: Click on the ‘Login’ button to access the username and password page.
Step 2: Revocation of Cancellation of GST Registration
Step 3: Enter the correct ‘Username’ and ‘Password’ credentials along with the captcha in the required field and click ‘login’.

  • Application for Revocation
Step 4: You have to click on the Revocation of Cancellation of GST Registration link under the services tab that is visible on the home page.
Step 5: On clicking on the link, you will be moved to the next page, where you need to enter the reason for revocation of cancellation of registration in the Reason for revocation of cancellation field.
Step 6: Then you have to click the “Choose File” button to attach any supporting documentation.
Step 7: Now Select the Verification checkbox.
Step 8: Select the name of the authorised signatory, in the Name of Authorized Signatory drop-down list.
Step 9: You have to enter the place where the application is filed, in the Place field.
Step 10: You can also click the ‘save’ button to save the application form and retrieve it later.
Step 11: Click the Submit with DSC or the Submit with EVC button.
Step 12: Sign the form by using either your Digital Signature Certificate (DSC) or the EVC option. On selecting any of these below options, you will receive an OTP.

  • Using DSC Option
Step 13: If using a DSC, you will be required to select the registered DSC from the emSigner pop-up screen and then proceed from there accordingly.

  • Using EVC Option
Step 14: Enter the OTP that you have received and then click on the Validate OTP button.

  • Acknowledgement Message
Step 15: On successfully filing the application for cancellation of registration, the system will generate the ARN and display a confirmation message.
Step 16: GST Portal will also send a confirmation message on your registered mobile phone number and e-mail-ID.
Step 17: After this process, the concerned Tax Official will review your application and take a decision accordingly.

  • Approval by the Tax Official
Step 18: When the proper officer is satisfied that the reason being provided for revocation of cancellation of registration is appropriate, then, the officer will revoke the cancellation of registration.
Step 19: On approval by the Tax Official, the system generates an approval order and notification is sent to the applicant, Primary Authorized Signatory of the taxpayer via e-mail and SMS, about the same.
Step 20: Consequent to the approval of the Application for Revocation of Cancelled Registration, the taxpayer’s GSTIN Status will be changed from Inactive to Active status with effect from the effective date of cancellation.

  • Rejection by the Tax Official
Step 21: When the Tax Official rejects an application for revocation of cancelled registration then the rejection order will be generated.
22: The GSTIN status will remain “Inactive” on the GST Portal, and the Primary Authorized Signatory will be intimated via SMS and email of the rejection of the application.
23: The Rejection Order receipt will be made available on the taxpayer’s dashboard.
The registered taxpayer, whose registration has been cancelled, can follow the below steps to submit an application for revocation of cancellation of registration.

Step 1: A registered taxpayer can submit the FORM GST REG-21 application for the Revocation of Cancellation of GST Registration either directly or through a facilitation centre notified by the Commissioner if his registration has been cancelled suo moto by the proper tax official.
Note: You can download this FORM GST REG-21 from the GST portal. It is reproduced below for your ready reference.
Step 2: You must submit the application within 30 days from the date of service of the cancellation order at the Common Portal.
Step 3: If the proper officer is satisfied he can revoke the cancellation of registration by order in FORM GST REG-22 within 30 days from the date of receipt of the application. Reasons for revocation or cancellation of registration must be recorded in writing.
Step 4: The proper officer will take a decision within 30 days from the date of receipt of clarification from the applicant in FORM GST REG-24.
Step 55: If a concerned GST officer is not satisfied with the revocation application, the officer must issue a notice in FORM GST REG-23 before rejection. The applicant must provide a suitable reply in FORM GST REG-24 within 7 working days from the date of service of the notice. On receipt of a proper response from the applicant, the concerned officer is required to pass a suitable order in FORM GST REG-05 within 30 days from the date of receipt of a reply from the applicant.

FAQ's on Registration As Government Or Local Authority Or Governmental Authority

  • A department or establishment of the Central Government or State Government
  • Local Authority
  • Governmental Agencies
A department or establishment of the Central Government or State Government, Local Authority & Governmental Agencies are required to deduct TDS at the rate of one percent (1%) for CGST and one percent (1%) for SGST from the payment made or credited to the supplier of Goods & Services or both, where total value of such supply under a contract, exceeds two lakh and fifty thousand rupees.
The value of supply shall be taken as the amount excluding the central tax, State tax, Union territory tax, integrated tax and cess indicated in the invoice.

Payment of Amount Deducted as Tax & Filling of Return:
1 Due Date for Payment of Tax Deducted & Filling of Return 10th day of Succeeding Month.
2 Form in which Certificate is to be issued Form GSTR-7A
3 Time Limit for issuing the Certificate Certificate is required to be issued within 5 days of crediting the amount so deducted to the Government
The deductor shall furnish to the deductee a certificate mentioning therein the contract value, rate of deduction, amount deducted, amount paid to the Government in Form GSTR-7A within 5 days of crediting the amount so deducted to the Government.
List of Documents:
  • Copy of TAN Allotment Letter or Copy of PAN Card of Govt. Department, Local Authority & PSUs.
  • Copy of DDO’s PAN Card.
  • Copy of DDO’s Aadhar Card/Voter ID/DL/Passport etc.


Information:
  • DDO’s Mobile Number (Will be verified through OTP)
  • DDO’s Email Address (Will be verified through OTP)
  • Landline No. of Govt. Department, Local Authority & PSUs.
Disbursing Officer Means A Head Of Office And Also Any Gazetted Officer So Designated By A Department Of The Central Government, A Head Of Department Or An Administrator To Draw Bills And Make Payment On Behalf Of The Central Government.
No, all services provided by the Government or a local authority are not exempt from tax. As for instance, services, namely, (i) services by the Department of Posts by way of speed post, express parcel post, life insurance, and agency services provided to a person other than Government; (ii) services in relation to an aircraft or a vessel, inside or outside the precincts of an airport or a port; (iii) transport of goods or passengers; or (iv) any service, other than services covered under (i) to (iii) above, provided to business entities are not exempt and that these services are liable to tax.

That said, most of the services provided by the Central Government, State Government, Union Territory or local authority are exempt from tax. These include services provided by government or a local authority or governmental authority by way of any activity in relation to any function entrusted to a municipality under Article 243W of the Constitution and services by a governmental authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution.
Yes. The Government or a local authority or a governmental authority is liable to pay tax on supply of services other than the services notified as exempt or notified as neither a supply of goods nor a supply of services under clause (b) of sub-section (2) of section 7 (Schedule III). In respect of services other than –(i) renting of immovable property; (ii) services by the Department of Posts by way of speed post, express parcel post, life insurance, and agency services provided to a person other than Government; and (iii) services in relation to an aircraft or a vessel, inside or outside the precincts of an airport or a port, the service recipients are required to pay the tax under reverse charge mechanism.
As per section 2(53) of the GST Act, ‘Government’ means the Central Government. As per clause (23) of section 3 of the General Clauses Act, 1897 the ‘Government’ includes both the Central Government and any State Government. As per clause (8) of section 3 of the said Act, the ‘Central Government’, in relation to anything done or to be done after the commencement of the Constitution, means the President. As per Article 53 of the Constitution, the executive power of the Union shall be vested in the President and shall be exercised by him either directly or indirectly through officers subordinate to him in accordance with the Constitution.

Further, in terms of Article 77 of the Constitution, all executive actions of the Government of India shall be expressed to be taken in the name of the President. Therefore, the Central Government means the President and the officers subordinate to him while exercising the executive powers of the Union vested in the President and in the name of the President. Similarly, as per clause (60) of section 3 of the General Clauses Act,1897, the ‘State Government’, as respects anything done after the commencement of the Constitution, shall be in a State the Governor, and in an Union Territory the Central Government. As per Article 154 of the Constitution, the executive power of the State shall be vested in the Governor and shall be exercised by him either directly or indirectly through officers subordinate to him in accordance with the Constitution.

Further, as per article 166 of the Constitution, all executive actions of the Government of State shall be expressed to be taken in the name of Governor. Therefore, State Government means the Governor or the officers subordinate to him who exercise the executive powers of the State vested in the Governor and in the name of the Governor.
Local authority is defined in clause (69) of section 2 of the CGST Act and means the following:-
  • "Panchayat" as defined in clause (d) of article 243 of the Constitution.
  • "Municipality" as defined in clause (e) of article 243P of the Constitution.
  • Municipal Committee, a Zilla Parishad, a District Board, and any other authority legally entitled to, or entrusted by the Central Government or any State Government with the control or management of a municipal or local fund
  • Cantonment Board as defined in section 3 of the Cantonments Act, 2006
  • Regional Council or a District Council constituted under the Sixth Schedule to the Constitution
  • Development Board constituted under article 371 of the Constitution; or a Regional Council constituted under article 371A of the Constitution
No. The definition of ‘local authority’ is very specific and means only those bodies which are mentioned as ‘local authorities’ in clause (69) of section 2 of the GST Act. It would not include other bodies which are merely described as a ‘local body’ by virtue of a local law..

For example, State Governments have setup local developmental authorities to undertake developmental works like infrastructure, housing, residential & commercial development, construction of houses, etc. The Governments setup these authorities under the Town and Planning Act. Examples of such developmental authorities are “Greater Kochi Development Authority”, Trivandrum Development Authority”, Delhi Development Authority, Ahmedabad Development Authority, Bangalore Development Authority, Chennai Metropolitan Development Authority, Bihar Industrial Area Development Authority, etc. Such developmental authorities formed under the Town and Planning Act are not qualified as local authorities for the purposes of the GST Act.
A statutory body, corporation or an authority created by the Parliament or a State Legislature is neither ‘Government’ nor a ‘local authority’. Such statutory bodies, corporations or authorities are normally created by the Parliament or a State Legislature in exercise of the powers conferred under article 53(3)(b) and article 154(2)(b) of the Constitution respectively. It is a settled position of law (Agarwal Vs. Hindustan Steel AIR 1970 Supreme Court 1150) that the manpower of such statutory authorities or bodies do not become officers subordinate to the President under article 53(1) of the Constitution and similarly to the Governor under article 154(1).

Such a statutory body, corporation or an authority as a juridical entity is separate from the State and cannot be regarded as the Central or a State Government and also do not fall in the definition of ‘local authority’. Thus, regulatory bodies and other autonomous entities would not be regarded as the government or local authorities for the purposes of the GST Act. Some example of such bodies in Kerala would be Universities, KSRTC, Kerala Financial Corporation etc.
Services provided by one department of the Central Government/State Government to another department of the Central Government/ State Government are exempt under notification No. 12/2017-Central Tax (Rate), dated 28.06.2017 [S No 8 of the Table].

However, this exemption is not applicable to
  • services provided by the Department of Posts by way of speed post, express parcel post, life insurance, and agency services provided to a person other than the Central Government, the State Government and Union Territory.
  • Services in relation to a vessel or an aircraft inside or outside the precincts of a port or an airport
  • Services of transport of goods and/or passengers
Transport services provided by the Government to passengers by

railways in a class other than— (a) first class; or (b) an air-conditioned coach, metro, monorail or tramway, inland waterways, public transport, other than predominantly for tourism purpose, in a vessel between places located in India; and metered cabs or auto rickshaws (including E-rickshaws) are exempt from tax.
No. The corporations formed under the Central or a State Act or various companies registered under the Companies Act, 1956/2013 or autonomous institutions set up by the State Acts will not be covered under the definition of ‘Government’ and therefore, services provided by them will be taxable unless exempted by a notification.
No. A regulatory body, also called regulatory agency, is a public authority or a governmental body which exercises functions assigned to them in a regulatory or supervisory capacity. These bodies do not fall under the definition of Government.

Examples of regulatory bodies are – Competition Commission of India, Press Council of India, Directorate General of Civil Aviation, Forward Market Commission, Inland Water Supply Authority of India, Central Pollution Control Board, Securities and Exchange Board of India.
Yes. Services provided by Police, Fire and Rescue Services or security agencies of Government to PSU/private business entities are not exempt from GST. Such services are taxable supplies and the recipients are required to pay the tax under reverse charge mechanism on the amount of consideration paid to Government for such supply of services.

Illustration: The Kerala Cricket Association, Kochi requests the Commissioner of Police, Kochi to provide security in and around the Cricket Stadium for the purpose of conducting the cricket match. The Commissioner of Police arranges the required security for a consideration. In this case, services of providing security by the police personnel are not exempt. As the services are provided by Government, Kerala Cricket Association is liable to pay the tax on the amount of consideration paid under reverse charge mechanism.
The services by way of speed post, express parcel post, life insurance and agency services are taxable,. In respect of these services the Department of Posts is liable to pay tax without application of reverse charge.

However, the following services provided by the Department of Posts are not liable to tax. Basic mail services known as postal services such as post card, inland letter, book post, registered post provided exclusively by the Department of Posts to meet the universal postal obligations. Transfer of money through money orders, operation of savings accounts, issue of postal orders, pension payments and other such services.
The Department of Posts also provides services like distribution of mutual funds, bonds, passport applications, collection of telephone and electricity bills on commission basis. These services are in the nature of intermediary and generally called agency services. In these cases, the Department of Posts is liable to pay tax without application of reverse charge.
No tax is payable on the services received by the Government / local authority/ governmental authority from a provider of service located outside India. However, the exemption is applicable to only those services which are received for the purpose other than commerce, industry or any other business or profession. In other words, if the Government receives such services for the purpose of business or commerce, then tax would apply on the same.
No. Online information and database access or retrieval services received by Government or local authorities from non taxable territory for any purpose whether or not in furtherance of business or commerce are liable to tax.
The functions entrusted to a municipality under the Twelfth Schedule to Article 243W of the Constitution are as under:
  • Urban planning including town planning.
  • Regulation of land-use and construction of buildings.
  • Planning for economic and social development.
  • Roads and bridges.
  • Water supply for domestic, industrial and commercial purposes.
  • Public health, sanitation conservancy and solid waste management.
  • Fire services.
  • Urban forestry, protection of the environment and promotion of ecological
  • Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded.
  • Slum improvement and upgradation.
  • Urban poverty alleviation.
  • Provision of urban amenities and facilities such as parks, gardens, playgrounds.
  • Promotion of cultural, educational and aesthetic aspects.
  • Burials and burial grounds; cremations, cremation grounds; and electric crematoriums.
  • Cattle pounds; prevention of cruelty to animals.
  • Vital statistics including registration of births and deaths.
  • Public amenities including street lighting, parking lots, bus stops and public
  • Regulation of slaughter houses and tanneries
The functions entrusted to a Panchayat under the Eleventh Schedule to Article 243G of the Constitution are as under:
  • Agriculture, including agricultural extension.
  • Land improvement, implementation of land reforms, land consolidation and soil conservation.
  • Minor irrigation, water management and watershed development.
  • Animal husbandry, dairying and poultry.
  • Fisheries.
  • Social forestry and farm forestry.
  • Minor forest produce.
  • Small scale industries, including food processing industries.
  • Khadi, village and cottage industries.
  • Rural housing.
  • Drinking water.
  • Fuel and fodder.
  • Roads, culverts, bridges, ferries, waterways and other means of communication.
  • Rural electrification, including distribution of electricity.
  • Non-conventional energy sources.
  • Poverty alleviation programme.
  • Education, including primary and secondary schools.
  • Technical training and vocational education.
  • Adult and non-formal education.
  • Libraries.
  • Cultural activities.
  • Markets and fai₹
  • Health and sanitation, including hospitals, primary health centres and dispensaries.
  • Family welfare.
  • Women and child development.
  • Social welfare, including welfare of the handicapped and mentally retarded.
  • Welfare of the weaker sections, and in particular, of the Scheduled Castes and the Scheduled Tribes.
  • Public distribution system.
  • Maintenance of community assets.
Generally, non-performance of a contract or breach of contract is one of the conditions normally stipulated in the Government contracts for supply of goods or services. The agreement entered into between the parties stipulates that both the service provider and service recipient abide by the terms and conditions of the contract. In case any of the parties breach the contract for any reason including non-performance of the contract, then such person is liable to pay damages in the form of fines or penalty to the other party. Non-performance of a contract is an activity or transaction which is treated as a supply of service and the person is deemed to have received the consideration in the form of fines or penalty and is, accordingly, required to pay tax on such amount.

However, non performance of contract by the supplier of service in case of supplies to Government is covered under the exemption from payment of tax. Thus any consideration received by the Government from any person or supplier for non performance of contract is exempted from tax.

Illustration: Public Works Department of Kerala entered into an agreement with M/s. XYZ, a construction company for construction of office complex for certain amount of consideration. In the agreement dated 10.7.2017, it was agreed by both the parties that M/s. XYZ shall complete the construction work and handover the project on or before 31.12.2017. It was further agreed that any breach of the terms of contract by either party would give right to the other party to claim for damages or penalty. Assuming that M/s. XYZ does not complete the construction and handover the project by the specified date i.e., on or before 31.12.2017. As per the contract, the department asks for damages/penalty from M/s. XYZ and threatened to go to the court if not paid. Assuming that M/s XYZ has paid an amount of ₹ 10,00,000/- to the department for non performance of contract. Such amount paid to department is exempted from payment of tax.
Regulation of land-use, construction of buildings and other services listed in the Twelfth Schedule to the Constitution which have been entrusted to Municipalities under Article 243W of the Constitution, when provided by governmental authority are exempt from payment of tax.
No. This gets covered under the exemption by way of tolerating non-performance of a contract for which consideration in the form of fines or liquidated damages is payable to the Government or the local authority.
If turnover of the entity is less than the limit of ₹ 20 lakhs in a financial year, no tax would be payable. If the turnover of a business entity is above ₹20 lakhs, the business entity is liable to pay tax on the services received from Govt. on reverse charge basis.

However, with regard to the following services.
  • Services by the Department of Posts by way of speed post, express parcel post, life insurance, and agency services provided to a person other than Government
  • Services in relation to an aircraft or a vessel, inside or outside the precincts of an airport or a port
  • Services of transport of goods or passengers and
  • Services by way of renting of immovable property.

The Govt. has to pay the tax on these services irrespective of the turnover of the recipient.
As per 2(98) of the Act, ‘’reverse charge” means the 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 under sub-section (3) or sub-section (4) of section 9, or under sub-section (3) or subsection (4) of section 5 of the Integrated Goods and Services Tax Act.
Yes, reverse charge is applicable in respect of services provided by Government or local authorities to any person whose turnover exceeds ₹20 lakhs (₹10 lakhs for Special Category States) excluding the following services.
  • Renting of immovable property
  • Services by the Department of Posts by way of speed post, express parcel post, life insurance, and agency services provided to a person other than Government.
  • Services in relation to an aircraft or a vessel, inside or outside the precincts of an airport or a port.
  • Transport of goods or passenge₹

Thus, the recipient of supply of goods or services is liable to pay the entire amount of tax involved in such supply of services or goods or both.
In the context of the language used in the notification, supply of services without involving any supply of goods would be treated as supply of ‘pure services’. For example, supply of man power for cleanliness of roads, public places, architect services, consulting engineer services, advisory services, and like services provided by business entities not involving any supply of goods would be treated as supply of pure services. On the other hand, let us take the example of a governmental authority awarding the work of maintenance of street lights in a Municipal area to an agency which involves apart from maintenance, replacement of defunct lights and other spares. In this case, the scope of the service involves maintenance work and supply of goods, which falls under the works contract services. The exemption is provided to services involves only supply of services and not for works contract services.
Supply of a motor vehicle meant to carry more than twelve passengers by way of giving on hire to a state transport undertaking is exempted from tax. The exemption is applicable to services provided to state transport undertaking and not to other departments of Government or local authority. Generally, such State transport undertakings/corporations are established by law with a view to providing public transport facility to the commute₹ In some cases, transport undertakings hire the buses on lease basis from private persons on payment of consideration. The services by way of supply of motor vehicles to such state transport undertaking are exempt from payment of tax. However, supplies of motor vehicles to Government Departments other than the state transport undertakings are taxable.
Yes. The supplier of services may claim the input tax credit on the amount of tax paid under reverse charge mechanism subject to the provisions of Input Tax Credit Rules.
As per section 51 of the CGST Act, the Government may mandate (a) a department or establishment of the Central Government or State Government; or (b) local authority; or (c) Governmental agencies; or (d) such persons or category of persons as may be notified by the Government on the recommendations of the Council, to deduct tax at the rate of one per cent on account of CGST and one percent on account of SGST from the payment made or credited to the supplier where the total value of the supply under a contract exceeds two Lakh and fifty thousand rupees (excluding tax payable under the GST Acts). The deductor shall remit the deducted amount to the Government and is also required to furnish a certificate to the deductee by mentioning the details of the amount deducted and payment of such deducted amount.

Illustration: ABC Ltd supplies the service valued at ₹ 3,00,000/- excluding tax to Government department. The department while making the payment of ₹ 3,00,000/- should deduct ₹ 3000/- on account of CGST and ₹ 3000/- on account of SGST and make a net payment of ₹ 2,94, 000/- to ABC. Thereafter, the department shall pay the amount of ₹ 3,000/- to the Central Government and ₹ 3,000/- to the State Government and furnish a certificate to the deductee, containing the details of such deduction including the details of such deductee.
No. The tax deducted at source is not input tax credit. However, the amount deducted shall be credited to the electronic cash ledger (upon being accepted by the deductee in his Form GSTR-2A) of the deductee and can be utilized for payment of output tax.
The Government provides license to various companies including Public Sector Undertakings for exploration of natural resources like oil, hydrocarbons, iron ore, manganese, etc. For having assigned the rights to use the natural resources, the licensee companies are required to pay consideration in the form of annual license fee, lease charges, royalty, etc to the Government. The activity of assignment of rights to use natural resources is treated as supply of services and the licensee is required to pay tax on the amount of consideration paid in the form of royalty or any other form under reverse charge mechanism.
The Government Department is required to take registration as a normal taxpayer only if it makes a taxable supply of goods and/or services and in such cases, the registration shall be obtained on the basis of PAN. B. However, if it is not making any taxable supply of goods and/or services, it is required to register only as a deductor of tax at source on the basis of TAN/PAN.
No. but if it has liability to deduct TDS it will have to take TDS registration.
Institutional PAN can be obtained from IT department by any office. Hence, any office can get registered under GST Act. But registration brings in responsibilities like timely return filing. It is ideal that, an office of a department which is making regular taxable supplies should take registration and those offices which have only occasional transactions can file their details through higher offices having regular taxable supplies. However, the matter is to be decided internally in the department.
Yes, if the Department makes taxable supplies, it will have to obtain regular registration. if it deduct TDS, it will have to obtain TDS registration too.
No. Payments can be made only through by internet banking or by using credit or debit cards or NEFT or RTGS or Generating challan from the GSTN portal and make payment to the bank. It can be done only based on a regular return or a TDS return.
Payment can be made any time through above means. This will be reflected in the electronic cash ledger of the registered person. The amount in the electronic cash ledger can be utilized for payment of tax while filing the returns.
CGST and SGST for supplies within the state and IGST for Supplies made out side the state. IGST would be the combined rate of CGST and SGST. This should be shown separately in the tax invoice. Eg: If for an intra state sale of timber tax to be collected is 9% CGST and 9% SGST. If the timber is sold interstate, IGST would be 18 %.
The notifications of tax rates under CGST AND SGST are given below
Description Notification
Rates for supply of services under CGST Act 11/2017-Central Tax (Rate) ,dt. 28-06-2017
Exemptions on supply of services under CGST Act 12/2017-Central Tax (Rate), dt. 28-06-2017
CGST Rate Schedule for goods notified under section 9 (1) 01/2017-Central Tax (Rate),dt. 28-06-2017
CGST exempt goods notified under section 11 (1) 02/2017-Central Tax (Rate),dt. 28-06-2017
KGST rates for services S.R.O 370/2017
Exemptions on supply of services under KGST Act S.R.O 371/2017
KGST Rate Schedule for goods notified under section 9 (1) S.R.O 360/2017
KGST exempt goods notified under section 11 (1) S.R.O 361/2017


It is also available on CBEC Website http://www.cbec.gov.in/htdocs-cbec/gst/central-tax-rate-notfns-2017 and
Kerala Taxes Department website http://www.keralataxes.gov.in/home documents/GSTC12.pdf
Yes, as per the provisions of the Act, an invoice need to be issued.
There is no specific format in GST. But the invoice should contain the following details:
Invoice number and date, Customer name, Shipping and billing address, Customer and taxpayer’s GSTIN, Place of supply, HSN code, Taxable value and discounts, Rate and amount of taxes i.e. CGST/ SGST/ IGST, Item details i.e. description, unit price, quantity
Since the above content cannot be incorporated in TR-5, invoice will have to be issued in GST.
There will be automated interest and late fee. Penalty can also be levied. The registered person who have bought goods from Government will not be able to claim input tax credit in his returns.
A department or establishment of the Central or State Government, or a Local authority, or Governmental agencies, or Persons or category of persons as may be notified, by the Central or a State Government on the recommendations of the Council.
All transactions where the total value of a taxable supply received under a contract exceeds two lakh and Fifty thousand rupees (excluding GST). For the purpose of deciding TDS liability, the whole contract amount is to be reckoned, irrespective of individual periodic payments and TDS is to be deducted for such individual periodic payments.
In VAT, TDS was applicable only to works contract, but in GST it is applicable on all taxable supplies received.

In VAT there was varied rates of deduction based on the certificates issued by the department. But in GST, there is only a single rate.
1% under CGST Act and 1% under SGST Act or 2% IGST
For purpose of deduction of TDS, the value of supply is to be taken as the amount excluding the tax indicated in the invoice. This means TDS shall not be deducted on the CGST, SGST or IGST component of invoice.
TDS shall be paid within 10 days from the end of the month in which tax is deducted.
It is a certificate furnished by the deductor to the deductee (in Form GSTR 7A) furnishing details of the decution made. It is to be issued to the deductee within 5 days of crediting the amount to the Govt. failing which fees of ₹ 100 per day subject to maximum of ₹ 5000/- will be payable by such deductor.
He will be liable to pay interest, in addition to the tax.
12%. It should be collected by the Department and paid along with the returns.
It is a service provided by the Department and the tax rate is 18%. But the department need not collect the tax. It will be paid by the contractor on reverse charge basis while filing his returns.
No. The implementation of TDS provision are deffered till further notification. Effective date of TDS implementation will be notified by Central and State GST Department in future with prospective effect.
If the vehicles are supplies in auction sale with registration certificate, the rate of vehicle shall be applied, i.e., 28%. If the vehicles are supplied as scrap, then the rate of iron scrap, i.e.,18% will be applicable.

FAQ's on Composition Taxpayers

A taxpayer whose turnover is below Rs 1.5 crore can opt for Composition Scheme. In case of North-Eastern states and Himachal Pradesh, the limit is now Rs 75* lakh.

Turnover of all businesses registered with the same PAN should be taken into consideration to calculate turnover.
The following people cannot opt for the scheme:
  • Supplier of services other than restaurant related services
  • Manufacturer of ice cream, pan masala, or tobacco
  • Casual taxable person or a non-resident taxable person
  • Businesses which supply goods through an e-commerce operator
A composition dealer cannot issue tax invoice. This is because a composition dealer cannot charge tax from their custome₹ They need to pay tax out of their own pocket.

Hence, the dealer has to issue a Bill of Supply.

The dealer should also mention “composition taxable person, not eligible to collect tax on supplies” at the top of the Bill of Supply.
To opt for composition scheme a taxpayer has to file GST CMP-02 with the government. This can be done online by logging into the GST Portal.

This intimation should be given at the beginning of every Financial Year by a dealer wanting to opt for Composition Scheme.
The following conditions must be satisfied in order to opt for composition scheme:
  • No Input Tax Credit can be claimed by a dealer opting for composition scheme
  • The taxpayer cannot make any inter-state supply of goods.
  • The dealer cannot supply GST exempted goods
  • Taxpayer has to pay tax at normal rates for transactions under Reverse Charge Mechanism
  • If a taxable person has different segments of businesses (such as textile, electronic accessories, groceries, etc.) under the same PAN, they must register all such businesses under the scheme collectively or opt out of the scheme.
  • The taxpayer has to mention the words ‘composition taxable person’ on every notice or signboard displayed prominently at their place of business.
  • The taxpayer has to mention the words ‘composition taxable person’ on every bill of supply issued by him.
  • Those supplying goods can provide services of upto ₹ 5 lakh
Following chart explains the rate of tax on turnover applicable for composition dealers:

Composition Scheme - Applicable GST Rate

Type of Business CGST SGST Total
Manufacture and Traders (Goods)) 0.5% 0.5% 1.0%
Restaurants not serving alcohol 2.5% 2.5% 5%
Service Providers are not eligible for Composition Scheme
As per notification dated 01.01.2018, turnover in case of traders has been defined as ‘Turnover of taxable supplies of goods’.
GST Payment has to be made out of pocket for the supplies made.

The GST payment to be made by a composition dealer comprises of the following:
  • GST on supplies made.
  • Tax on reverse charge
  • Tax on purchase from unregistered dealer.
A dealer is required to file a quarterly return GSTR-4 by 18th of the month after the end of the quarter. Also, an annual return GSTR-9A has to be filed by 31st December of next financial year.

Also, note that a dealer registered under composition scheme is not required to maintain detailed records.
The following are the advantages of registering under composition scheme:

  • Less Compliance
    Under the normal scenario, a taxpayer under GST has to file minimum 3 returns monthly and one annual return. To be precise, he is compelled to file 37 returns in a year or penalty will be levied for non-compliance. For small suppliers and manufacturers, it is quite difficult to maintain so detailed books of accounts on a daily basis and record every transaction with supporting documents.
    Whereas, in composition scheme, only a quarterly return will be uploaded under GSTR-4 by:
    18th July – 1st quarter
    18th October – 2nd quarter
    18th January – 3rd quarter
    18th April – 4th quarter
    This will ease the compliance burden for SMEs, and they can focus more on their business rather than getting occupied in compliance procedures.
  • Reduced tax liability
    Another advantage of being registered with composition scheme is the rate structure.
    For Manufacturer = 0.50%(CGST) + 0.50(SGST) = 1% of turnover of State/ Union Territory
    For supplier supplying food other than alcoholic liquor for human consumption = 2.5% (CGST)+ 2.5% (SGST) = 5% of turnover of State/ Union Territory
    For other supplier = 0.50% (CGST) + 0.50% (SGST) = 1% of taxable turnover of State/ Union Territory
  • High Liquidity
    For normal taxpayers, most of his working capital will be blocked as Input Tax credit because he can avail the input only if his supplier has filed the return. The supplier has to pay tax at standard rate and credit of the input will only be availed when his supplier files the return. In composition levy, dealer need not worry about his supplier filing return as he cannot take credit and will pay tax at a nominal rate.
  • For Example
    In the above case, a Normal taxpayer will have to pay a higher tax of ₹ 6300/- compared to ₹2314/- and Input Tax credit of ₹ 11700/- will also be blocked till his supplier files the return. Whereas, the composition scheme taxpayer, will only pay ₹ 2314.
Disadvantages of registering under GST composition scheme:

  • A limited territory of business. The dealer is barred from carrying out inter-state transactions
  • No Input Tax Credit available to composition dealers
  • The taxpayer will not be eligible to supply exempt goods or goods through an e-commerce portal.

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