The GST Act of 2017 is a comprehensive legislation that governs the rules and regulations

related to Goods and Services Tax (GST) in India. Here are some of the key provisions of the
GST Act of 2017:
1. Levy and Collection of GST: Section 9 of the GST Act of 2017 provides for the levy and
collection of GST on intra-state supplies of goods or services or both. Section 5 of the
Act provides for the levy and collection of GST on inter-state supplies of goods or
services or both.
2. Composition Scheme: Section 10 of the GST Act of 2017 provides for the composition
scheme for small taxpayers with an annual turnover of up to Rs. 1.5 crore. Such taxpayers
can pay tax at a lower rate and file quarterly returns.
3. Input Tax Credit: Section 16 of the GST Act of 2017 provides for the eligibility and
conditions for availing input tax credit (ITC) on the taxes paid on inputs, input services,
and capital goods. Section 17 specifies the cases where ITC is not available, such as on
goods and services used for personal consumption, and on goods and services used for
exempt supplies.
4. Registration: Section 22 of the GST Act of 2017 provides for the mandatory registration
of every supplier of goods or services whose annual turnover exceeds Rs. 20 lakh. In
certain cases, such as for inter-state suppliers, casual taxable persons, and non-resident
taxable persons, registration is mandatory irrespective of the turnover.
5. Returns: Section 39 of the GST Act of 2017 provides for the filing of periodic returns by
registered taxpayers. The returns include details of outward supplies, inward supplies,
and tax paid. The due date for filing returns varies based on the category of the taxpayer.
6. Offences and Penalties: Section 122 of the GST Act of 2017 specifies various offences
and the corresponding penalties for non-compliance with the provisions of the Act. The
penalties range from a monetary penalty to imprisonment, depending on the nature and
severity of the offence.
These are some of the key provisions of the GST Act of 2017, along with their section numbers.
It is worth noting that this is not an exhaustive list, and the Act contains many other provisions
that govern various aspects of GST in India.

→ Explain the term GST and state the impact of GST on business of accounts
GST stands for Goods and Services Tax. It is an indirect tax that has replaced a number of other
indirect taxes such as excise duty, service tax, and value-added tax (VAT) in India. The GST Act
of 2017 was passed with the aim of creating a unified taxation system throughout the country.
The GST system is a destination-based tax system, which means that the tax is collected at the
point of consumption or sale, rather than at the point of production. This helps to eliminate the
cascading effect of taxes, which is a situation where taxes are levied on top of each other at
various stages of production and distribution, leading to higher prices for consumers.
The GST Act of 2017 has had a significant impact on the business of accounts in India. Here are
some of the key provisions of the Act and their impact on businesses:
 • Registration: Under the GST Act, every business with a turnover of over Rs. 20 lakhs
(Rs. 10 lakhs for northeastern states) is required to register for GST. This has led to a
greater compliance burden for businesses, as they need to maintain proper records and
file returns on a regular basis.
• Input Tax Credit: The GST Act allows businesses to claim input tax credit for taxes paid
on purchases of goods and services used in the course of business. This has helped to
reduce the cost of doing business, as businesses are no longer required to pay taxes on
taxes.
• Tax Rates: The GST Act has introduced a four-tier tax structure, with rates of 5%, 12%,
18%, and 28%. This has led to a standardization of tax rates across the country, making it
easier for businesses to understand and comply with the tax system.
• Electronic Filing: The GST Act requires businesses to file returns electronically, which
has made the process of filing returns faster and more efficient.
• Anti-profiteering Measures: The GST Act includes anti-profiteering measures to prevent
businesses from taking undue advantage of the new tax system. This has led to greater
transparency and accountability in business transactions.
The provisions of the GST Act that have had the greatest impact on the business of accounts
include Section 16 (Input Tax Credit), Section 39 (Furnishing of Returns), and Section 171
(Anti-profiteering Measures).
In conclusion, the GST Act of 2017 has had a significant impact on the business of accounts in
India. While it has led to greater compliance burden for businesses, it has also brought about
greater transparency and accountability in business transactions.

→ Explain in detail the provisions relating to levy and collection of GST under the
Central GS under the GST act of 2017
1. Levy of GST (Section 9): Section 9 of the Central GST Act, 2017, specifies that GST
shall be levied on all intra-state supplies of goods or services, except for supplies that
have been specifically exempted. GST shall be levied at the rate specified by the GST
Council.
2. Time of Supply (Section 12): Section 12 of the Central GST Act, 2017, specifies the time
when the supply of goods or services shall be considered to have taken place. The time of
supply is important as it determines the point of time when the GST liability arises. The
time of supply for goods is the earlier of:
• The date of issue of invoice
• The date on which the goods are received by the recipient
• The date on which the supplier delivers the goods
The time of supply for services is the earlier of:

• The date of issue of invoice

• The date on which the payment is received
• The date on which the supplier provides the service
 3. Value of Supply (Section 15): Section 15 of the Central GST Act, 2017, specifies the
value of the supply of goods or services. The value of supply is important as it determines
the GST liability. The value of supply for goods or services shall be the transaction value,
which is the price paid or payable for the supply of goods or services, where the supplier
and the recipient are not related, and the price is the sole consideration for the supply.
4. Input Tax Credit (Section 16): Section 16 of the Central GST Act, 2017, specifies that a
registered person shall be entitled to take credit of the input tax charged on any supply of
goods or services that are used or intended to be used in the course or furtherance of
business. The input tax credit shall be available on payment of tax and on the receipt of
the goods or services.
5. Payment of Tax (Section 49): Section 49 of the Central GST Act, 2017, specifies the
payment of tax. The tax liability shall be discharged by debiting the electronic cash
ledger or electronic credit ledger of the registered person. The electronic cash ledger shall
be used for making payment of tax, interest, penalty, fees, or any other amount. The
electronic credit ledger shall be used for payment of input tax credit.
• M/s Larsen & Toubro Limited v. State of Rajasthan [2018] 98 taxmann.com 284
(Rajasthan) In this case, the Rajasthan High Court held that the input tax credit cannot be
denied merely on the ground that the supplier has not paid the tax. The court held that the
availability of input tax credit is linked to the payment of tax by the supplier to the
government, but it is not dependent on the payment made by the supplier to the recipient.
• Mahaveer Kumar Jain v. Commissioner of GST and Central Excise [2019] 102
taxmann.com 175 (Karnataka) In this case, the Karnataka High Court held that the
taxpayer cannot avail of input tax credit on goods or services that are not used in the
course or furtherance of business. The court held that the input tax credit can only be
claimed if the goods or services are used for business purposes and not for personal use
or any other purpose.

→ Write a note on impact of GST on GDP of India

The introduction of the Goods and Services Tax (GST) in India has had a significant impact on
the country's Gross Domestic Product (GDP).
Firstly, GST has helped in the creation of a unified market across the country, as it has replaced a
number of indirect taxes that were levied by different states and the central government. This has
simplified the tax regime for businesses and has reduced compliance costs. As a result, GST has
led to an increase in the ease of doing business in India, which has had a positive impact on
GDP.
Secondly, GST has helped to eliminate the cascading effect of taxes. Earlier, taxes were levied at
multiple points in the supply chain, which led to a cascading effect and an increase in the cost of
goods and services. With GST, taxes are levied only on the value added at each stage of the
supply chain, which has led to a reduction in the cost of goods and services. This has had a
positive impact on GDP, as it has led to an increase in consumer spending.
Thirdly, GST has helped to bring more businesses into the formal sector. Earlier, many
businesses operated in the informal sector to avoid paying taxes. With GST, businesses need to
be registered and pay taxes, which has brought more businesses into the formal sector. This has
led to an increase in tax revenue for the government, which can be used to fund development
projects. This, in turn, has had a positive impact on GDP.
Lastly, GST has helped to improve the competitiveness of Indian businesses in the global
market. With a simplified tax regime and lower compliance costs, Indian businesses are now
more competitive compared to their counterparts in other countries. This has led to an increase in
exports, which has had a positive impact on GDP.
Provisions of the GST Act of 2017 that relate to the above points include Section 16 which deals
with the eligibility and conditions for taking input tax credit, Section 17 which specifies the
circumstances under which input tax credit is not available, and Section 18 which deals with the
procedure for claiming input tax credit.
Overall, the impact of GST on GDP has been positive, and it is expected to continue to have a
positive impact in the future. the Economic Survey of India 2018-19, which highlights the
positive impact of GST on the economy, including an increase in GDP growth. Another report is
the GST Council's Annual Report 2018-19, which provides a detailed analysis of the revenue
collection and economic impact of GST in India.

→ Explain the benefits of GST to trade, industry, e-commerce and service sector
• Simplification of Taxation: The GST has simplified the tax structure in India by merging
multiple taxes such as excise duty, service tax, and value-added tax (VAT) into one tax.
This has reduced the compliance burden for businesses, making it easier for them to
comply with the tax laws. The provision number for this benefit is Section 1(1) of the
CGST Act, 2017.
• Reduced Cascading Effect: Prior to the introduction of GST, businesses had to pay tax on
tax, which resulted in a cascading effect. This led to an increase in the cost of goods and
services, making them more expensive. With the implementation of GST, the cascading
effect has been reduced, as businesses can claim credit for the tax paid on input goods
and services. The provision number for this benefit is Section 16 of the CGST Act, 2017.
• Improved Supply Chain Efficiency: The GST has created a more efficient supply chain as
it has reduced the transit time of goods and services. This is because businesses can now
move their goods and services across state borders without paying multiple taxes. This
has resulted in a reduction in logistics costs, making it easier and cheaper for businesses
to transport goods and services. The provision number for this benefit is Section 10 of the
IGST Act, 2017.
• Boost to E-commerce: The GST has also provided a boost to the e-commerce industry by
simplifying the tax structure for online businesses. E-commerce businesses can now sell
goods and services across state borders without having to register for VAT in each state.
This has reduced the compliance burden for e-commerce businesses, making it easier for
 them to do business. The provision number for this benefit is Section 24(x) of the CGST
Act, 2017.
• Increased Competitiveness: The GST has made Indian businesses more competitive as it
has reduced the tax burden on them. This has made Indian businesses more competitive
in the global market, as they can now offer their goods and services at lower prices. The
provision number for this benefit is Section 9 of the CGST Act, 2017.
Case Laws
• Flipkart Internet Private Limited v. State of Kerala (2018) In this case, the High Court of
Kerala ruled that e-commerce companies like Flipkart are not liable to pay entry tax on
goods that are imported from other states into Kerala. The court held that the introduction
of GST has simplified the tax structure and made it easier for businesses to move goods
across state borders. This ruling has benefited e-commerce companies by reducing the
compliance burden and making it easier for them to do business across India.
• Amazon Seller Services Private Limited v. State of Maharashtra (2019) In this case, the
Maharashtra Appellate Authority for Advance Rulings (AAAR) held that e-commerce
companies are not liable to pay goods and services tax (GST) on the discounts offered to
customers. The AAAR held that discounts offered by e-commerce companies are a
marketing strategy to attract customers and are not a separate supply of goods or services.
This ruling has benefited e-commerce companies by reducing the tax burden on them and
making it easier for them to offer discounts to customers.
These two case laws demonstrate how GST has benefited the e-commerce sector by reducing the
compliance burden and the tax burden on businesses. The simplification of the tax structure and
the reduction of taxes on e-commerce businesses have made it easier for them to do business in
India.

→ Write a note on compensation law of State governments

The compensation law of State Governments under the GST Act of 2017 refers to the
mechanism by which the Central Government provides compensation to the States for any loss
of revenue arising from the implementation of GST. The compensation is provided for a period
of five years from the date of implementation of GST, i.e., July 1, 2017.
The following provisions of the GST Act deal with the compensation law for State Governments:
• Section 16 of the GST (Compensation to States) Act, 2017 provides for the appointment
of a Goods and Services Tax Compensation Cess Council that is responsible for
overseeing the collection and distribution of the compensation cess.
• Section 7 of the GST (Compensation to States) Act, 2017 provides for the imposition of a
compensation cess on certain goods and services. The proceeds from this cess are used to
provide compensation to the States for any loss of revenue arising from the
implementation of GST.
 • Section 8 of the GST (Compensation to States) Act, 2017 specifies the maximum rate at
which the compensation cess can be levied. This rate is set at 15% on top of the GST rate
on the specified goods and services.
• Section 9 of the GST (Compensation to States) Act, 2017 specifies the manner in which
the compensation cess is to be collected and paid to the States. The proceeds of the cess
are collected by the Central Government and then distributed to the States on a bi-
monthly basis.
• Section 10 of the GST (Compensation to States) Act, 2017 provides for the establishment
of a GST Compensation Fund, into which the proceeds of the cess are deposited. This
fund is used to provide compensation to the States for any loss of revenue arising from
the implementation of GST.
The case of State of Kerala v. Union of India dealt with the constitutional validity of certain
provisions of the GST (Compensation to States) Act, 2017 related to the imposition and
collection of the compensation cess. The State of Kerala had challenged the Act, arguing that it
violated the principles of federalism by impinging upon the fiscal autonomy of the States.
However, the Supreme Court of India upheld the constitutional validity of the provisions of the
GST (Compensation to States) Act, 2017. The Court held that the compensation mechanism was
a temporary measure to provide financial assistance to the States during the transition to the GST
regime and did not violate the principles of federalism. The Court also noted that the GST
Council had the power to recommend changes to the compensation mechanism if necessary.
In summary, the case affirmed the constitutional validity of the compensation law for State
Governments under the GST Act of 2017 and clarified the relationship between the GST Act and
the Compensation Act.
In summary, the compensation law for State Governments under the GST Act of 2017 provides
for the imposition of a compensation cess on certain goods and services, which is then used to
provide compensation to the States for any loss of revenue arising from the implementation of
GST. The provisions of the Act specify the manner in which the compensation cess is to be
collected, distributed, and utilized.

→ Who is entitled to take input tax credit? State the conditions for claiming input tax
credit under GST
Under the Goods and Services Tax (GST) Act of 2017, input tax credit (ITC) is a mechanism
that allows taxpayers to claim a credit for the taxes they have paid on their purchases, which can
be set off against the tax they are liable to pay on their sales. This helps avoid the cascading
effect of taxes, which is the imposition of tax on tax, and reduces the overall tax burden on
businesses.
As per the GST Act, the following persons are entitled to take input tax credit:
 • Registered persons: A registered person under the GST Act is entitled to take input tax
credit on the goods or services used or intended to be used in the course or furtherance of
business, subject to certain conditions.
• Composition scheme taxpayers: Composition scheme taxpayers are not entitled to take
input tax credit.
• Persons making exempt supplies: Persons making exempt supplies are not entitled to take
input tax credit.
• Persons making non-taxable supplies: Persons making non-taxable supplies are not
entitled to take input tax credit.
The conditions for claiming input tax credit under the GST Act of 2017:

• The taxpayer must be a registered person under the GST Act.

• The goods or services on which input tax credit is being claimed must have been used or
intended to be used in the course or furtherance of business.
• The taxpayer must possess a tax invoice or debit note or any other document as
prescribed by the GST Act.
• The taxpayer must have received the goods or services.
• The tax charged on such supply must have been actually paid to the government by the
supplier.
• The taxpayer must have furnished the GST returns as prescribed under the GST Act.
• The above-mentioned conditions are stated under Section 16 of the CGST Act, 2017.
In addition to the above, there are also certain restrictions on claiming input tax credit under the
GST Act. For example, input tax credit cannot be claimed on goods or services used for personal
consumption, or on goods or services that are specifically excluded from the purview of GST.

→ Best Judgement Assessment

Best judgment assessment is a mechanism provided under the Goods and Services Tax (GST)
Act, 2017, which allows the GST officer to assess the tax liability of a taxpayer when the
taxpayer has failed to furnish the required returns, failed to maintain the necessary records, or
failed to comply with any of the provisions of the Act.
The provisions for best judgment assessment are covered under Section 62 of the GST Act,
2017, which states that if a taxpayer fails to furnish the required returns, the GST officer can
assess the tax liability to the best of his judgment, taking into account all the available
information.
Here are the key provisions related to the best judgment assessment under the GST Act of 2017:
• Section 62(1): This section empowers the GST officer to assess the tax liability of a
taxpayer to the best of his judgment if the taxpayer fails to furnish the required returns
under Section 39 or Section 44 or Section 45 of the GST Act.
 • Section 62(2): This section provides that the GST officer shall issue a notice to the
taxpayer before making a best judgment assessment, informing him of the grounds on
which the assessment is proposed to be made and providing the taxpayer with an
opportunity to furnish a return and pay the tax due within a specified period.
• Section 62(3): This section states that if the taxpayer fails to furnish a return and pay the
tax due within the specified period, the GST officer can proceed to make a best judgment
assessment based on the available information.
• Section 62(4): This section provides that the GST officer shall issue a written order for
the best judgment assessment within a specified period, which shall include the amount
of tax payable by the taxpayer.
• Section 62(5): This section allows the taxpayer to file an appeal against the best judgment
assessment within a specified period.
In summary, the best judgment assessment is a mechanism provided under the GST Act of 2017
that allows the GST officer to assess the tax liability of a taxpayer to the best of his judgment,
when the taxpayer fails to furnish the required returns or comply with any of the provisions of
the Act. The provisions related to best judgment assessment are covered under Section 62 of the
GST Act, which outlines the procedure to be followed by the GST officer while making such an
assessment.
→ Explain the provisions relating to registration of dealer under the GST act of 2017
Under the Goods and Services Tax (GST) Act of 2017, registration of dealers is a crucial aspect
of the taxation system. Here are the provisions relating to the registration of dealers under GST
with their respective provision numbers:
• Threshold limit for registration: As per Section 22 of the CGST Act, every supplier shall
be liable to register under GST if their aggregate turnover in a financial year exceeds Rs.
20 lakhs (Rs. 10 lakhs in special category states except Jammu and Kashmir).
• Mandatory registration: Section 24 of the CGST Act provides for mandatory registration,
which means that certain categories of persons shall be required to register irrespective of
their turnover. These categories include inter-state suppliers, e-commerce operators, and
those liable to pay tax under the reverse charge mechanism, among others.
• Voluntary registration: Section 25 of the CGST Act provides for voluntary registration,
which means that a person who is not liable to register under Section 22 or 24 may apply
for registration voluntarily.
• Procedure for registration: Section 25 and Section 26 of the CGST Act lay down the
procedure for registration under GST. An application for registration is required to be
made electronically through the GST common portal, and the applicant must provide
certain information such as name, PAN, address, and other details as prescribed.
• Time limit for registration: As per Section 27 of the CGST Act, an application for
registration must be made within thirty days from the date on which the person becomes
liable to register.
• Grant of registration: Section 29 of the CGST Act provides for the grant of registration to
the applicant after due verification of the application and the information provided
 therein. If the application is found to be in order, a certificate of registration will be
issued within three working days from the date of submission of the application.
• Cancellation of registration: Section 29 and Section 30 of the CGST Act provide for the
cancellation of registration if the registered person ceases to carry on the business or if
there is a contravention of any provisions of the Act.
• Amendments to registration: Section 28 of the CGST Act provides for amendments to the
registration certificate, such as changes in address, business details, or other particulars.
Such amendments must be made within 15 days of the change

→ Explain the term supply and state the transactions which are taxable even when no
consideration is paid
In GST (Goods and Services Tax) law, "supply" is a critical term as it determines the
chargeability of tax on transactions. The term "supply" is defined under Section 7 of the Central
Goods and Services Tax Act, 2017. As per this section, the term "supply" includes:

• All forms of supply of goods or services or both, such as sale, transfer, barter, exchange,
license, rental, lease, or disposal made or agreed to be made for a consideration by a
person in the course or furtherance of business.
• Importation of services for a consideration, whether or not in the course or furtherance of
business.
• Activities specified in Schedule I, made or agreed to be made without a consideration.
• The activities between related persons or between distinct persons as specified in
Schedule II, made or agreed to be made for a consideration.
The first category of supply mentioned above is the most straightforward one and covers all the
transactions that involve the exchange of goods or services for consideration. The second
category refers to the import of services from outside India, for which a consideration has been
paid.
The third category relates to activities listed in Schedule I, which are to be considered as supplies
even if made without consideration. These include:
• a) Permanent transfer or disposal of business assets where input tax credit has been
availed on such assets;
• b) Supply of goods or services or both between related persons or between distinct
persons as specified in Schedule I, when made in the course or furtherance of business;
• c) Supply of goods or services or both, by any person to a registered person, whether or
not for a consideration.
• Lastly, the fourth category covers activities between related or distinct persons listed in
Schedule II, which are to be treated as supplies even if made for no consideration. These
include:
• a) Supply of goods made or agreed to be made without a consideration between distinct
persons as specified in Schedule II;
 • b) Transfer of goods or services made or agreed to be made without a consideration
between related persons or distinct persons as specified in Schedule II;
• c) Import of services by a taxable person from a related person or from any of his other
establishments outside India, in the course or furtherance of business.
Therefore, based on the above provisions, it is evident that there are certain transactions that are
taxable even when no consideration is paid. These transactions are covered under Schedule I and
Schedule II of the CGST Act, 2017. It is important to note that the term "related persons" and
"distinct persons" have specific meanings under GST, and you should refer to the relevant
provisions of the law to understand the same

→ GST council
The GST council is a constitutional body that was established under Article 279A of the Indian
Constitution, as per the provisions of the GST Act, 2017. The council is responsible for making
recommendations on issues related to GST, such as tax rates, exemptions, and threshold limits,
among other things.
The GST council is chaired by the Union Finance Minister, and includes the Finance Ministers
or Ministers in charge of finance of all the states and union territories with legislatures. Each
member of the council has one vote, with decisions being made by a three-fourths majority of the
votes cast.
The GST council has been given various powers and functions under the GST Act, 2017. Some
of the key provisions related to the council are:
• Section 8: Powers of the GST council: This section outlines the powers of the council,
including the power to make recommendations on various issues related to GST, such as
tax rates, exemptions, and threshold limits.
• Section 9: Levy and collection of GST: This section outlines the various aspects related
to the levy and collection of GST, and specifies that the rates of tax, exemptions, and
other related matters will be decided by the GST council.
• Section 15: Value of taxable supply: This section specifies that the value of taxable
supply for the purposes of GST will be determined in accordance with the rules made by
the GST council.
• Section 16: Eligibility and conditions for taking input tax credit: This section outlines the
conditions that must be satisfied for a person to be eligible to claim input tax credit, and
specifies that the GST council may prescribe additional conditions.
• Section 22: Persons liable for registration: This section outlines the criteria for
registration under GST, and specifies that the GST council may prescribe additional
criteria.

→ DUAL GST TAXATION

The Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of
goods and services in India. GST is a dual tax, which means that it is administered by both the
central and state governments. The GST Act, 2017 provides for a dual GST regime with the
following components:
• Central Goods and Services Tax (CGST): This is levied by the central government on the
intra-state supply of goods and services.
• State Goods and Services Tax (SGST): This is levied by the state governments on the
intra-state supply of goods and services.
• Integrated Goods and Services Tax (IGST): This is levied by the central government on
the inter-state supply of goods and services.
Now, let's look at the provisions in the GST Act, 2017 that relate to dual GST:
• Section 8: This section deals with the liability to pay tax on the intra-state supply of
goods or services. It provides that every supplier who makes a taxable supply of goods or
services shall be liable to pay CGST and SGST at the specified rates.
• Section 9: This section deals with the liability to pay tax on the inter-state supply of
goods or services. It provides that every supplier who makes a taxable supply of goods or
services from one state to another shall be liable to pay IGST at the specified rates.
• Section 10: This section deals with the composition scheme for small businesses. It
provides that a person whose turnover does not exceed a specified limit can opt for the
composition scheme and pay tax at a lower rate.
• Section 11: This section deals with the principles of determination of place of supply of
goods or services. It provides that the place of supply of goods or services shall be
determined in accordance with the provisions of the GST Act, 2017.
• Section 12: This section deals with the time of supply of goods or services. It provides
that the time of supply of goods or services shall be determined in accordance with the
provisions of the GST Act, 2017.
• Section 13: This section deals with the value of supply of goods or services. It provides
that the value of supply of goods or services shall be determined in accordance with the
provisions of the GST Act, 2017.