GST BASIC KNOWLEDGE -PART 3

Standard

(1) The following persons shall not be liable to registration, namely:––

    (a) any person engaged exclusively in the business of supplying goods or

          services or both that are not liable to tax or wholly exempt from tax under this.               Act or
under the Integrated Goods and Services Tax Act;

  (b) an agriculturist, to the extent of supply of produce out of cultivation of land.    

2)Notwithstanding anything contained in sub-section (1) of section 22, the following
categories of persons shall be required to be registered under this Act,––
(i) persons making any inter-State taxable supply;
(ii) casual taxable persons making taxable supply;
(iii) persons who are required to pay tax under reverse charge;
(iv) person who are required to pay tax under sub-section (5) of section 9;
(v) non-resident taxable persons making taxable supply;
(vi) persons who are required to deduct tax under section 51, whether or not
separately registered under this Act;
(vii) persons who make taxable supply of goods or services or both on behalf of
other taxable persons whether as an agent or otherwise;
(viii) Input Service Distributor, whether or not separately registered under this
Act;
(ix) persons who supply goods or services or both, other than supplies specified
under sub-section (5) of section 9, through such electronic commerce operator who is
required to collect tax at source under section 52;
(x) every electronic commerce operator;
(xi) every person supplying online information and database access or retrieval
services from a place outside India to a person in India, other than a registered
person; and
(xii) such other person or class of persons as may be notified by the Government

on the recommendations of the Council.

3)Every person shall have a Permanent Account Number issued under the Income-
tax Act, 1961 in order to be eligible for grant of registration:
Provided that a person required to deduct tax under section 51 may have, in lieu of a
Permanent Account Number, a Tax Deduction and Collection Account Number issued under

the said Act in order to be eligible for grant of registration.

4)a registered person may not issue a tax invoice if the value of the goods or
services or both supplied is less than two hundred rupees subject to such conditions

and in such manner as may be prescribed;

5)Where a tax invoice has been issued for supply of any goods or services or
both and the taxable value or tax charged in that tax invoice is found to exceed the taxable
value or tax payable in respect of such supply, or where the goods supplied are returned by
the recipient, or where goods or services or both supplied are found to be deficient, the
registered person, who has supplied such goods or services or both, may issue to the

recipient a credit note containing such particulars as may be prescribed.

(6) Every registered person shall keep and maintain, at his principal place of business,

as mentioned in the certificate of registration, a true and correct account of—
(a) production or manufacture of goods;
(b) inward and outward supply of goods or services or both;
(c) stock of goods;
(d) input tax credit availed;
(e) output tax payable and paid; and
(f) such other particulars as may be prescribed:
Provided that where more than one place of business is specified in the certificate of
registration, the accounts relating to each place of business shall be kept at such places of
business:
Provided further that the registered person may keep and maintain such accounts and

other particulars in electronic form in such manner as may be prescribed.

(7) Every owner or operator of warehouse or godown or any other place used for

storage of goods and every transporter, irrespective of whether he is a registered person or
not, shall maintain records of the consigner, consignee and other relevant details of the

goods in such manner as may be prescribed.

(8) The Commissioner may notify a class of taxable persons to maintain additional

accounts or documents for such purpose as may be specified therein.

9)Every registered person whose turnover during a financial year exceeds the

prescribed limit shall get his accounts audited by a chartered accountant or a cost accountant and shall submit a copy of the audited annual accounts, the reconciliation statement under

sub-section (2) of section 44 and such other documents in such form and manner as may be
 prescribed .

Every deposit made towards tax, interest, penalty, fee or any other amount by a
person by internet banking or by using credit or debit cards or National Electronic Fund
Transfer or Real Time Gross Settlement or by such other mode and subject to such conditions
and restrictions as may be prescribed, shall be credited to the electronic cash ledger of such

person to be maintained in such manner as may be prescribed.

10)“refund” includes refund of tax paid on zero-rated supplies of goods or
services or both or on inputs or input services used in making such zero-rated supplies,
or refund of tax on the supply of goods regarded as deemed exports, or refund of
unutilised input tax credit as provided under sub-section (3).
(2) “relevant date” means—
(a) in the case of goods exported out of India where a refund of tax paid is
available in respect of goods themselves or, as the case may be, the inputs or

input services used in such goods,––

  • (i) if the goods are exported by sea or air, the date on which the ship
    or the aircraft in which such goods are loaded, leaves India; or
    (ii) if the goods are exported by land, the date on which such goods
    pass the frontier; or
    (iii) if the goods are exported by post, the date of despatch of goods
    by the Post Office concerned to a place outside India;
    (b) in the case of supply of goods regarded as deemed exports where a
    refund of tax paid is available in respect of the goods, the date on which the
    return relating to such deemed exports is furnished;
    (c) in the case of services exported out of India where a refund of tax paid
    is available in respect of services themselves or, as the case may be, the inputs
    or input services used in such services, the date of––
    (i) receipt of payment in convertible foreign exchange, where the
    supply of services had been completed prior to the receipt of such payment;
    or
    (ii) issue of invoice, where payment for the services had been received
    in advance prior to the date of issue of the invoice;
    (d) in case where the tax becomes refundable as a consequence of judgment,
    decree, order or direction of the Appellate Authority, Appellate Tribunal or any
    court, the date of communication of such judgment, decree, order or direction;
    (e) in the case of refund of unutilised input tax credit under
    sub-section (3), the end of the financial year in which such claim for refund
    arises;
    (f) in the case where tax is paid provisionally under this Act or the rules
    made thereunder, the date of adjustment of tax after the final assessment thereof;
    (g) in the case of a person, other than the supplier, the date of receipt of
    goods or services or both by such person; and
    (h) in any other case, the date of payment of tax.

11)The Government shall constitute a Fund, to be called the Consumer Welfare Fund
and there shall be credited to the Fund,—
(a) the amount referred to in sub-section (5) of section 54;
(b) any income from investment of the amount credited to the Fund; and
(c) such other monies received by it,

in such manner as may be prescribed.

12)The chartered accountant or cost accountant so nominated shall, within the period
of ninety days, submit a report of such audit duly signed and certified by him to the said

Assistant Commissioner mentioning therein such other particulars as may be specified:

13)The officer authorised under sub-section (2) shall have the power to seal or break
open the door of any premises or to break open any almirah, electronic devices, box, receptacle
in which any goods, accounts, registers or documents of the person are suspected to be
concealed, where access to such premises, almirah, electronic devices, box or receptacle is
denied.
(5) The person from whose custody any documents are seized under sub-section (2)

shall be entitled to make copies thereof or take extracts therefrom in the presence of an authorised officer at such place and time as such officer may indicate in this behalf except
where making such copies or taking such extracts may, in the opinion of the proper officer,
prejudicially affect the investigation.
(6) The goods so seized under sub-section (2) shall be released, on a provisional
basis, upon execution of a bond and furnishing of a security, in such manner and of such
quantum, respectively, as may be prescribed or on payment of applicable tax, interest and
penalty payable, as the case may be.
(7) Where any goods are seized under sub-section (2) and no notice in respect thereof
is given within six months of the seizure of the goods, the goods shall be returned to the
person from whose possession they were seized:
Provided that the period of six months may, on sufficient cause being shown, be

extended by the proper officer for a further period not exceeding six months.

14)Every person in charge of place referred to in sub-section (1) shall, on demand,
make available to the officer authorised under sub-section (1) or the audit party deputed by
the proper officer or a cost accountant or chartered accountant nominated under
section 66—
(i) such records as prepared or maintained by the registered person and declared
to the proper officer in such manner as may be prescribed;
(ii) trial balance or its equivalent;
(iii) statements of annual financial accounts, duly audited, wherever required;
(iv) cost audit report, if any, under section 148 of the Companies Act, 2013;
(v) the income-tax audit report, if any, under section 44AB of the Income-tax
Act, 1961; and
(vi) any other relevant record,
for the scrutiny by the officer or audit party or the chartered accountant or cost accountant
within a period not exceeding fifteen working days from the day when such demand is made,
or such further period as may be allowed by the said officer or the audit party or the chartered

accountant or cost accountant.

15)All officers of Police, Railways, Customs, and those officers engaged in the
collection of land revenue, including village officers, officers of State tax and officers of

Union territory tax shall assist the proper officers in the implementation of this Act.

16)Where the terms of any bond or other instrument executed under this Act or any
rules or regulations made thereunder provide that any amount due under such instrument
may be recovered in the manner laid down in sub-section (1), the amount may, without
prejudice to any other mode of recovery, be recovered in accordance with the provisions of

that sub-section.

17)Where a person, after any amount has become due from him, creates a charge on or
parts with the property belonging to him or in his possession by way of sale, mortgage,
exchange, or any other mode of transfer whatsoever of any of his properties in favour of any
other person with the intention of defrauding the Government revenue, such charge or
transfer shall be void as against any claim in respect of any tax or any other sum payable by
the said person:
Provided that, such charge or transfer shall not be void if it is made for adequate
consideration, in good faith and without notice of the pendency of such proceedings under
this Act or without notice of such tax or other sum payable by the said person, or with the

previous permission of the proper officer.

(18) When two or more companies are amalgamated or merged in pursuance of an
order of court or of Tribunal or otherwise and the order is to take effect from a date earlier to
the date of the order and any two or more of such companies have supplied or received any
goods or services or both to or from each other during the period commencing on the date
from which the order takes effect till the date of the order, then such transactions of supply
and receipt shall be included in the turnover of supply or receipt of the respective companies
and they shall be liable to pay tax accordingly.
(2) Notwithstanding anything contained in the said order, for the purposes of this Act,
the said two or more companies shall be treated as distinct companies for the period up to the
date of the said order and the registration certificates of the said companies shall be cancelled

with effect from the date of the said order.

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