Key Points May 2018 - Indirect Tax laws

Hello everyone, welcome to my blog, continuing my last moment update about Key Points and notes, following are quick key points from practice questions given by ICAI in series. (https://www.icai.org/post.html?post_id=14562)

I am covering 2 series and 3rd one is also important and got practical question. You may review it

Question: https://resource.cdn.icai.org/49548bos39250questionIIIfinal.PDF
Answer: https://resource.cdn.icai.org/49787bos39460.pdf

Just go through them, who knows about the luck.

Last time when I updated for DT, the Old course students were not benefited (honestly I was hurt, since it worked it ISCA for almost 33 marks) but New course student had a couple of question from it (Happy for them).

Therefore, I always says that it is complete game of luck.

Never the less, Finger crossed here we go, just read them with glance a coupe of time.

Series I

1. State government cannot exclusively notify a transaction to be supply. They need to get recommendation from GST Council (Under Finance minster). CG + SG can notify an activity as supply of 
1. Good and not Service
2. Not Good but Service
3. Neither good nor service
2. Reverse charge mechanism (Supply received by registered person from unregistered person) is applicable to both goods and service but Provision of reverse charge liability on supplies received from Unregistered person have been kept in abeyance till 31.03.2018
3. Composition scheme
1. Threshold - Turnover Rs. 1 Crore* in Preceding FY u/s 10(1) of CGST Act, 2017.
2. Benefit - Upto turnover of Rs. 1 Crore* in current FY
3. Criteria to be fulfilled
1. Not engaged in restaurant services
2. Not engaged in making supply of goods not taxable
3. No inter state outward supplies of goods (No benefit if inter state supply)
4. No supply through E-commerce
5. No supply of Ice-Cream, Pan Masala, Tobacco etc. (Do not use Rule of Ejusdem generis here)
4. *75 Lakhs instead of 1 Crore threshold and benefit for 9 states 
1. Arunachal Pradesh
2. Assam
3. Manipur
4. Meghalaya
5. Mizorum
6. Nagaland
7. Sikkim
8. Tripura
9. Himachal Pradesh
5. To remember names of 9 states these are for instance recently election happened + Mainly north east state (do not waste time in remembering them)
4. If person availed composition scheme, and during year let say on 31st Dec, he crosses threshold, then he is not able to claim composition scheme for rest of the year
5. Unregistered supplier cannot avail input tax credit and collect tax. To claim, voluntary registration is allowed.
6. Difference between casual and non resident taxable persons
1. Both occasionally undertakes transactions
1. Casual: Both in State and UT
2. NRT: No fixed place of business in India
2. PAN
1. Casual: Do Have
2. NRT: Do not have 
3. Registration
1. Casual: Same form
2. NRT: Different form
4. Business test
1. Casual: Present
2. NRT: Absent
5. ITC
1. Casual: Can claim for all inwards
2. NRT: Only in respect of Import
7. Necessary element to charge GST
1. The activity involves supply
2. Supply for consideration (unless otherwise provided)
3. Made in course or furtherance of business
4. Taxable supply
5. By taxable person
8. Stock transfer from Delhi to unit located in Haryana
1. Taxable under GST
2. Self supplies is treated as supply u/s 7
3. Establishment of same person on different state or UT is treated as establishment of distinct person (25(5))
4. Taxable under IGST even if no payment of consideration
5. Intra-state self supply is not taxable subjected to not opting for registration as business vertical
9. Interest collected on delayed payment of goods 
1. Section 12(6) of CGST
1. Time of supply of additional value on account of 
1. Interest
2. Late fees
3. Penalty
4. Delayed payment
2. would be date of receipt additional consideration
10. There are not separate valuation provision in CGST, SCST, and IGST
11. Post supply discount
1. Are admissible deduction u/s 15
2. It should be as per the agreement known before supply
3. Such discount is specifically linked to relevant invoice
4. The recipient has Reverse ITC attributable on discount amount
12. The time of liability to pay GST IS NOT independent of the time of supply of goods/services.
13. Payment cycle of tax collected
1. Normal tax payer: 20th of next month
1. Cash is first deposited in cash ledger
2. Debit entry in ledger
3. Reflect debit entry number in GST return
2. Composition tax payer : Quarterly basis

Series II

1. GST law exempt goods and services provided by educational institutions to its students, faculty and staff
2. If no fixed place of business in India, Advance tax to be given at the time of registration i.e. casual taxable person
3. Place of supply of goods and services
1. Is required to determine whether a supply is subjected to SGST + CGST or
2. Attract IGST in inter state supply
4. Separate place of supply rule for
1. B2B - Just pass through and credit is given by Gov.
2. B2C - Taxes finally come to the Gov.
5. Winner of ticket pass to travel anywhere in India
1. Place of service made to any person other than registered
2. where point of embankment is unknown (i.e. depend on future use of ticket)
3. Location of recipient where the address on records exists
6. Goods sent for job work: inputs are available if goods are received back within a period of 1 year.
7. Provision of job work on Goods supplied for job work
1. P: Taxable under GST - Apply
2. Q: Exempted vide notification - Not Apply
3. R: Not taxable - Not Apply
8. Job worker and principal can be in different location of state or in other state
9. Mensrea - Guilty mind or criminal intent
1. Necessary prosecution 
2. But require to commit an offence if it cannot be committed without such a state of mind.
10. Tax payer pay tax on self assessment basis 
1. Tax officer cannot suo moto ask for provisional tax
2. For provisional basis, tax payer may request officer that he is enable to determine value of goods supplied, or enable to determine tax
3. Then execute a bond and give to officer
11. Section 61: If during scrutiny of returns, no satisfactory explanation is received within 30 days of being informed. The proper officer may take recourse to any of the following provision
1. Proceed conduct of audit u/s 65
2. Direct special audit
3. Undertake inspection 
4. Initiate determination of tax u/s 73 or 74
12. If failed to file return in regular cource
1. Tax officer will issue a notice u/s 46
2. Require to furnish return within 15 days
3. Officer shall access tax in case filing of return
13. Summary of assessment order has issued against tax payer
1. Other than appellate remedy
2. Can apply for its withdrawal to JC/Additional JC within 30 days of receipt of order vide sec 64
3. If said officer find order erroneous, he can withdraw and direct Proper officer to determine tax liability on basis of section 73 to 74