GSTPM-01_

GST Composition Scheme

Introduction tax as SGST and the Centre as CGST. However, in case of
inter-State transactions, Integrated GST (IGST), which
The introduction of Goods and Services Tax (GST) w.e.f. is the sum total of SGST & CGST is levied.
1st July, 2017 in India is very significant step in the field
of indirect tax reforms. Amalgamating a large number of Union Territory Goods & Services Tax or UTGST is
Central and State taxes into a single tax, would mitigate similar to SGST, however, here the tax collected goes
the cascading effect or double taxation substantially and to the administration of the Union Territory. Thus, like
pave way for a common national market. It is convenient SGST, UTGST is charged in addition to CGST. UTGST
and economically efficient way of taxing consumption applies to the five Union Territories without legislatures,
of person, and is levied on the principals of destination- namely Andaman and Nicobar Island and, Dadra and
based tax. Nagar Haveli, Chandigarh, Lakshadweep, and Daman and
Diu. Delhi and Puducherry are not covered by the list of
The Goods and Services Tax (GST) law has been enacted Union Territories for this purpose. They have their own
and implemented in India from 1st July, 2017. It signifies legislature and they have passed their own SGST Acts.
a landmark tax reform in India post-independence. For instance, if a Trader of Andaman supplies goods to
the Trader of Chandigarh, it will be treated as inter-state
In this segment, we have covered the basic concepts supply and subject to IGST.
envisaged under the GST Law. GST would be charged by
the supplier of goods or Services or both and the cost of The power to levy & administer IGST is vested with the
tax is borne by the next person in the supply chain. It is Central Government, while the IGST revenue would get
expected that GST will ensure that there is no cascading distributed between the Centre and the Destination State.
or pyramiding effect of taxes. In fact, the levy of IGST is to transfer the tax to the State of
destination of goods/services where the Recipient of same
The GST law is to facilitate seamless credit across the will be entitled to its ITC, unlike CST (Central Sales Tax)
entire supply chain and across all states under a common which was the cost under Earlier Tax Laws. Considering
tax base. It is a tax on goods and/or services and/or both, the concurrent taxation power of Central Government
levied at each point of supply of goods or provision of & State Government to tax transaction under GST, the
services, made or agreed to be made for a consideration structure is referred to as dual GST.
by a person in the course or furtherance of business. The
supplier of goods/services can claim the input tax credit Taxes which are subsumed and not subsumed
which he/she has paid on procuring the inputs or services
or capital goods. The burden of GST is ultimately borne Under the GST law, certain levies and collection of duty
by the final consumer, who can’t claim ITC under GST. or tax on the goods and/or services levied either by the
The Implementation of GST is a milestone for the Indian Centre or by States are subsumed.
economy with an expectation that it will result in overall
growth of the country in the long run. The GST subsumes the following taxes:

Dual Model of GST 1) Central Taxes

India is a federal country where both the Centre and the a. Central Excise Duty
States have been assigned the powers to levy and collect
taxes through appropriate legislation. The Central & b. Excise Duties under the (Medicinal andToilet
State Governments both have distinct responsibilities to Preparations) Act
perform and accordingly the powers to collect revenue are
provided in the Constitution of India. c. Additional Duties of Excise (Goods of Special
Importance)
Dual GST Model signifies that GST is levied by the Centre
and the States concurrently, on supply of Goods and/or d. AdditionalDutiesofExcise(TextileandTextile
Services and/or both. Under GST regime, the State levies Articles)

e. Additional Duties of Customs (Commonly
known as CVD)

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GSTPAM Referencer 2019-20 “AggregateTurnover”u/s.2(6):“Aggregateturnover”
means the aggregate value of all taxable supplies
f. Special Additional Duty of Customs (SAD) (excluding the value of inward supplies on which
tax is payable by a person on reverse charge basis),
g. Service Tax exempt supplies, exports of goods or services or both
and inter-State supplies of persons having the same
h. Central surcharges and cesses on above duties/ Permanent Account Number, to be computed on all
taxes India basis but excludes Central tax, State tax, Union
Territory tax, integrated tax and cess.
Note: On supply of petroleum crude, high speed
diesel, motor spirit (petrol), natural gas and aviation It may be noted that earlier under the central excise
turbine fuel GST shall be levied with effect from such or VAT the Value of exempted and exported goods
date as may be notified by the Government on the or services were not considered for arriving at the
recommendations of the GST Council. basic exemption.

2) State Taxes TheAggregateTurnoverisdifferentfrom“turnoverina
state.” The Aggregate turnover is used for determining
a. State VAT (except tax on alcoholic liquor for the threshold limit for registration as well as eligibility
human consumption) for composition scheme.

b. CentralSalesTax(thoughleviedunderCentral 2) Business u/s. 2(17): “Business” includes--
Law, it is retained by States from where the
goods commences its movement to other (a) Any trade, commerce, manufacture,
State) profession, vocation, adventure, wager or any
other similar activity, whether or not it is for
c. Luxury Tax a pecuniary benefit;

d. Entry Tax (including octroi & LBT) (b) Any activity or transaction in connection with
or incidental or ancillary to sub-clause (a);
e. Entertainment and Amusement Tax (except
when levied by the Local Authorities/Bodies) (c) Any activity or transaction in the nature of
sub-clause (a), whether or not there is volume,
f. Taxes on Advertisements frequency, continuity or regularity of such
transaction;
g. Purchase Tax
(d) Supply or acquisition of goods including
h. Taxes on lotteries, betting and gambling capital goods and services in connection with
commencement or closure of business;
i. Tax on sale of Forest Produce
(e) Provision by a club, association, society, or
j. State surcharges and cesses on above taxes any such body (for a subscription or any other
consideration) of the facilities or benefits to
The GST Law of the Centre i.e., CGST Law and the States its members;
i.e. SGST law are almost same, though enacted separately
by each State, to levy & collect tax on intra-State i.e. local (f ) Admission, for a consideration, of persons to
supplies. There is certain exceptional variation in a clause any premises;
pertaining to the Transitional provisions.
(g) Services supplied by a person as the holder of
IGST law is enacted by the Centre to levy tax on inter- anofficewhichhasbeenacceptedbyhiminthe
State supplies, UTGST Law (Union Territory GST) to course or furtherance of his trade, profession
levy tax on intra-State supplies in Union Territories and or vocation;
GST (Compensation to States) Law to levy cess on certain
supplies of goods/services to compensate to the States for (h) Services provided by a race club by way of
loss of revenue arising on account of implementation of totalisator or a license to book maker in such
GST for a period of first 5 years period or as provided club; and
in law based on recommendation of the GST Council.

Important Definitions under GST

Section 2 defines many terms used in the CGST Act. The
important ones are discussed below:

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(i) Any activity or transaction undertaken by the GST Composition Scheme
Central Government, a State Government or
any local authority in which they are engaged of account of the person claiming the input tax credit
as public authorities. and which are used or intended to be used in the
course or furtherance of business.
Thus, business may be carried on for non-profit
motive or charitable purpose, yet it is a business for It appears that the credit availment on capital goods
the purpose of GST law. Profession or vocation is a is dependent of the accounting treatment done by
business. Incidental or ancillary transactions are also assesse. If the goods are not capitalized, the credit
part of business. Society or club or AOP doing any will be available as input and provision pertaining
service/supply to its members for a consideration/ to inputs will apply.
subscription is a business. The coverage of the term
appears to be very wide. It is immaterial that such 5) Casual taxable person u/s. 2(20): “Casual taxable
transaction is for pecuniary benefit or not. person” means a person who occasionally undertakes
transactions involving supply of goods or services or
3) Business vertical u/s. 2(18): “Business vertical” both in the course or furtherance of business, whether
means a distinguishable component of an enterprise as principal, agent or in any other capacity, in a State
that is engaged in the supply of individual goods or or a Union territory where he/she has no fixed place
services or a group of related goods or services which of business;
is subject to risks and returns that are different from
those of the other business verticals. E.g. The person of one State going to another State
for exhibition of goods & sale therefrom is covered
Explanation. -- For the purposes of this clause, factors here. He can register temporarily & comply with
that should be considered in determining whether Law.
goods or services are related include--
6) Considerationu/s.2(31):“Consideration”inrelation
(a) The nature of the goods or services; to the supply of goods or services or both includes--

(b) The nature of the production processes; (a) Any payment made or to be made, whether in
money or otherwise, in respect of, in response
(c) The type or class of customers for the goods to, or for the inducement of, the supply of
or services; goods or Services or both, whether by the
recipient or by any other person but shall
(d) The methods used to distribute the goods or not include any subsidy given by the Central
supply of services; and Government or a State Government;

(e) The nature of regulatory environment (b) The monetary value of any act or forbearance,
(wherever applicable), including banking, in respect of, in response to, or for the
insurance, or public utilities. inducement of, the supply of goods or services
or both, whether by the recipient or by any
Saidtermisusedfordecidingwhetherapersoncanopt other person but shall not include any subsidy
to get separate GST Registration even in same State given by the Central Government or a State
for different business lines, although under same PAN. Government:
E.g. A Company manufacturing/trading in cement
and also executing infrastructure jobs, thus having Provided that a deposit given in respect of
two different business verticals. However, one must the supply of goods or services or both shall
opt for separate registration taking into consideration not be considered as payment made for such
main aspect that inter-se supply between different supply unless the supplier applies such deposit
verticals will be treated as a supply, liable to tax. as consideration for the said supply;

Note: - Omitted by the CGST (Amendment) Act, Thus, consideration can be in money or kind.
2018, w.e.f. 01/02/2019. Barter of services/goods will be taxable in both
person’s hand, under GST Law. Consideration
4) Capital goods u/s. 2(19): “Capital goods” means may be received from a person other than the
goods, the value of which is capitalised in the books recipient of goods/services.

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GSTPAM Referencer 2019-20 (b) Where a supply is received at a place other than
the place of business for which registration
The definition of consideration read as, has been obtained (a fixed establishment
“in respect of, in response to, or for the elsewhere), the location of such fixed
inducement of, the supply of goods or services establishment;
or both”.Thus consideration within meaning
of CGST Act is something which is given in (c) Where a supply is received at more than one
respect of, in response to or for inducement establishment, whether the Place of business
of supply. The consideration must be directly or fixed establishment, the location of the
related to supply. establishment must directly concerned with
the receipt of the supply; and
However, there could be cases of payments
without an activity, in such cases, GST is (d) In absence of such places, the location of the
not applicable, e.g. Grant of pocket money, usual place of residence of the recipient.
amount paid as alimony.
9) Location of the supplier of services u/s. 2(71):
If excess payment is received by a supplier “Location of the supplier of services” means, —
as a result of mistake, it is not treated as
consideration provided it is returned or (a) Whereasupplyismadefromaplaceofbusiness
refunded to the recipient of supply. for which the registration has been obtained,
the location of such place of business;
7) Goods u/s. 2(52): “Goods” means every kind of
movable property other than money and securities (b) Wherea supplyismadefromaplace otherthan
but includes actionable claims, growing crops, grass the place of business for which registration
and things attached to or forming part of the land has been obtained (a fixed establishment
which are agreed to be severed before supply or under elsewhere), The Location of such fixed
a contract of supply. establishment;

However, “actionable claims” (other than lottery, (c) Where a supply is made from more than one
betting & gambling) are neither supply of goods nor establishment, whether the Place of business
supply of services as per Schedule III annexed to Act or fixed establishment, the location of the
read with section 7 of the CGST Act. establishment must directly concerned with
the provisions of the supply; and
E.g.,Aclaimforarrearsofrent,righttoclaimprovident
fund and Lottery ticket are actionable claims. (d) In absence of such places, the location of the
usual place of residence of the supplier;
Goods includes all movable property, Software,
animals & birds in captivity, copyright in film or Theabovetwodefinitionsareimportanttodecidethe
songs or music and Technical drawings are movable jurisdiction of the State for revenue & about which
properties is goods.That means immovable property tax attracted in a transaction, either SGST & CGST
are not goods. or IGST.

Growingcrops,grasstreesattachedtoeartharegoods. 10) Market value u/s. 2(73): “Market value” shall mean
Standing tress are not ‘goods. However, standing the full amount which a recipient of a supply is required
timber is identified and is in deliverable state, is goods. to pay in order to obtain the goods or services or both
of like kind and quality at or about the same time
Money and securities have been specifically excluded and at the same commercial level where the recipient
from the definition of goods as well services. Thus, and the supplier are not related;
the transaction in securities shall not be liable to GST.
Said concept will be of use when the transaction is
8) Location of the recipient of services u/s. 2(70) between two related persons or two distinct persons
of the single owner/taxable person and value of supply
“Location of the recipient of services” means, — of goods/services is to be found out to levy tax where
the consideration is not wholly in money.
(a) Where a supply is received at a place of business
for which the registration has been obtained,
the location of such place of business;

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11) Non-resident taxable person u/s. 2(77): “Non- GST Composition Scheme
resident taxable person” means any person who
occasionally undertakes transactions involving supply improvement, modification, repair, maintenance,
of goods or services or both, whether as principal or renovation, alteration or commissioning of any
agent or in any other capacity, but who has no fixed immovable property wherein transfer of property in
place of business or residence in India; goods (whether as goods or in some other form) is
involved in the execution of such contract;
E.g., the person of any other country coming to any
state in India for exhibition of goods & sale there Here, the term works contract has been restricted
from or to render/supply services in India is covered to building construction, fabrication etc. of any
here who can register temporarily & comply with immovable property only.
Law.
Thus, repairs or maintenance of an immovable
12) Services u/s. 2(102): “Services” means anything property is covered here as a works contract. However,
other than goods, money and securities but includes if it is related to movable property then it is not covered
activities relating to the use of money or its conversion here but will be covered under the term “composite
by cash or by any other mode, from one form, supply” or “mixed supply”. The tax provisions will
currency or denomination, to another form, currency apply accordingly.
or denomination for which a separate consideration
is charged; Levy and Scope of Supply

Explanation. - Expression “Services” includes In the earlier indirect tax regime, the term “production” or
facilitating or arranging transactions in securities. manufacture” or “sale” was used with reference to goods
Inserted by the Central Goods and Services Tax whereas the term “provision” was used wrt services. The
(Amendment) Act, 2018, w.e.f. 1-2-2019. new term which replaces all these term for goods as well
as services is ‘Supply’. ‘Supply’ has very wide scope and
Definition of services is a residuary one i.e. what coverage which is provided u/s. 7 of the CGST/SGST
are not goods are services. It can cover a wide range. Acts, 2017.
Thus, can we say immovable property is covered
here? However, money & securities are neither goods The said provision is expanded by making it inclusive.
nor services, thus out of GST net. A transaction in
money, per se, is outside the ambit of GST. However, For GST purpose the taxable event is supply of goods
the related activity, for which a separate consideration or services or both. Accordingly, the following activities
is charged, is subject to GST. would attract GST levy

13) Turnover in State or turnover in Union Territory a) Supply of Goods.
u/s. 2(112): “Turnover in State” or “Turnover in
Union territory” means the aggregate value of all b) Supply of Services.
taxable supplies (excluding the value of inward supplies
on which tax is payable by a person on reverse charge c) Supply of both goods and Services.
basis) and exempt supplies made within a State or
Union territory by a taxable person, exports of goods d) Activities/transactions referred to in Schedule I and
or services or both and inter-State supplies of goods II. [Omitted by GST Amendment Act, 2018, w.e.f.
or services or both made from the State or Union 01/02/2019].
territory by the said taxable person but excludes
central tax, State tax, Union territory tax, IGST & Note: While omitting S. 7(1)(d), the New clause (1A)
Cess. has been inserted by the Central Goods and Services Tax
(Amendment) Act, 2018 w.e.f 1/07/2017, which provide
14) Workscontractu/s.2(119):“Workscontract”means that a few activities or transactions referred to in Schedule
a contract for building, construction, fabrication, II are treated as supply (or Deemed as supply).
completion, erection, installation, fitting out,
As per Section 7(1)(a) “Supply” includes all forms of
goods or services or both such as sale, transfer, barter,
exchange, licence, rental, lease or disposal made or agreed
to be made for a consideration by a person in the course
or furtherance of business.

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GSTPAM Referencer 2019-20 u Any transfer of title of goods under an
agreement which stipulates that property
Under Section 7(1)(b), the specific inclusion has been made in goods will pass at a future date upon
for importation of services for consideration whether or payment of full consideration as agreed like
not in the course or furtherance of business. Recipient of hire purchases.
service or importer of service is liable to pay GST under
reverse charge mechanism. u Permanent transfer or disposal of business
assets with or without consideration.
Section 7(1)(c) read with Schedule I, it specifies the
activities to be treated as supply even if made or agreed u Supply of goods by any unincorporated
to be made without consideration. Thus, the following association or body of persons to a member
transactions will be subject to GST even if there is no thereof for consideration.
consideration.
II. Activities/transactions treated as supply of
1) Permanenttransferordisposalofbusinessassetswhere ‘Services’
input tax credit has been availed.
u Transfer of right or undivided share in goods
2) Supply of goods or services or both between related without transfer of title.
persons or between distinct persons when made in
the course or furtherance of business. u Any lease, tenancy, easement or licence to
occupy land.
Provided that gifts upto ` 50,000 in a financial year
by an employer to an employee shall not be treated u Any lease or letting out the building for
as supply of goods or services or both. business or commerce either wholly or
partially.
3) Supply of goods by a principal to his agent where the
agent undertakes to supply such goods on behalf of u Any treatment or process applied on another
the principal or by an agent to his principal where person’s goods like job works.
the agent undertakes to receive such goods on behalf
of the principal. u Any business assets put for private use whether
or not for consideration.
4) Import of services by a person (Substituted for
“taxable person” by the Central Goods and Services u Renting of immovable property.
Tax (Amendment) Act, 2018, w.e.f. 1-2-2019)
from a related person or from any of his/her other u Construction of a complex, building, civil
establishment outside India, in the course or structure or part thereof, intended for sale,
furtherance of business. wholly or partly.

S.7(1) (1A) “Where certain activities or transactions u Works Contract as defined u/s. 2(119).
constitute a supply in accordance with the provisions of
sub-section (1), they shall be treated either as supply of u Temporary transfer or permitting the use or
goods or supply of services (Deemed Supply) as referred enjoyment of any intellectual property right.
to in Schedule II”.
u Development, design, programming,
Section 7(1) (1A) read with Schedule II, provides the customization, adaptation, upgradation,
activities to be treated as supply of goods or supply of enhancement, implementation of information
services. The list of such specified activities of supply are technology software.
as under:
u Agreeing to the obligation to refrain from an
I. Activities/transactions treated as supply of Act or to tolerate an act or a situation, or to
‘Goods’:- do an act.

u Any transfer of the title in goods is a supply u Supply, by way of or as part of any service,
of goods. of food or any other article for human
consumption or any non-alcoholic drink.
Thus food/drink served in a hotel or by a
caterer is deemed as services under this law.

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GST Composition Scheme

As per schedule III read with Section 7(2)(a), the treated neither as a supply of goods nor a supply of
following activities or transactions shall be treated services. Therefore, no tax is payable by recipient of
as neither supply of goods nor supply of services: such services.

u Services by an employee to the employer in In short, the term “supply” under GST has been made
the course of or in relation to his employment. wide enough to cover various types of transactions.

u Services by any Court or Tribunal. Tax liability on “Composite Supplies” and “Mixed

u The functions performed by any Members Supplies”

of Parliament, State legislator, panchayats, There may be instances where goods & services are supplied

municipalities and other local authorities. together or in combination. In such cases the concept of

u The duties performed by any person as a composite and mixed supply would attain significances.
Chairperson/Members/Director in a body Sometimes such supplies are either deliberate or occur
established by the Central Government, naturally as per trade practice. Such distinction is created
State Government and local authority and by law to ensure that appropriate rate of tax is charged.

who is not deemed as an employee before the Under the GST, as per Section 8 two new concepts

commencement of this clause. of supply are introduced viz “Composite Supply” and

u Services of funeral burial, crematorium “Mixed Supply”.

or mortuary including transportation of As per, the definition u/s. 2(30) “Composite Supply”

deceased. means a supply made by a taxable person to a recipient,

u Sale of land, sale of building, after the issuance consisting of two or more taxable supplies of goods or
of completion certificate or after its first services or any combination thereof, which are naturally
bundled and supplied in conjunction with each other
occupation, whichever is earlier.
in the ordinary course of business, one of which is a
u Actionable claims other than lottery betting principal supply.
and gambling.
The term “Principal Supply” (Sec. 2(90)) means
As per GST Amendment Act, 2018, w.e.f.1-2-2019, the supply of goods or services which constitutes the
following entries have been added in Schedule-III
predominant element of a composite supply and to which

u Supplyofgoodsfromaplaceinthenon-taxable any other supply forming part of that composite supply

territory to another place in the non-taxable is ancillary.

territory without such goods entering into For e.g., in case where goods are packed and transported
India. with insurance, the supply of goods, packing materials,

u Supply of warehoused goods to any person transportation and insurance is a composite supply and

before clearance for home consumption. supply of goods is the principal supply.

u Supply of goods by a consignee to any other All such supplies will be taxed at the rate applicable on

person, by endorsement of documents of ‘principal supply’, as provided u/s. 8(a) of CGST Act.

title to the goods, after the goods have been As per the definition u/s. 2 (74) “Mixed Supply” means
dispatched from the port of origin located two or more individual supplies of goods or services, or
outside India but before the clearance for any combination thereof made in conjunction with each
home consumption. other by a taxable person for a single price where such

Thus, above transactions are out of GST net. supply does not constitute a composite supply.

AsperSection7(2)(b),certaincategoriesofactivitiesor For e.g., in case of supply of a package consisting of watch,
transaction undertaken by the Central Government, tie, belts, as a combo pack for a single price then although
State Government or any local authority in which always these items can be sold individually and are not
they are engaged as public authorities as may be dependent on each other. Then such supply would be
specified by the Central/State Government shall be termed as mixed supply.

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GSTPAM Referencer 2019-20 4) Other conditions for the said composition scheme
are as under:
It shall not be a Mixed Supply if these items are supplied
separately. a) Service provider is not eligible for composition
scheme except a restaurant, eating house, club
All such supplies will be taxed at the rate applicable on etc. Thus, supplier of goods only is eligible.
supply of that particular supply which attracts highest rate However, if such person along with supply
of tax, as provided u/s. 8(b) of CGST Act. of goods, is also providing exempt services
(like having interest income) then eligible
Composition Scheme for composition scheme subject to limits
specified as per the CGST (Amendment) Act,
The GST law has introduced a composition scheme which 2018, a manufacturer or trader can now also
is an alternative method for levy of tax designed for small supply services to an extent of ten percent of
taxpayers dealing in variety of products attracting different turnover, or Rs.5 lakhs, whichever is higher.
rates of taxes. Section.10 of the CGST Act deals with This amendment will be applicable from the
composition levy. It is optional. The eligibility criterion 1st of Feb, 2019.
for composition dealers is as under:
b) Supplier should not be engaged in supply of
1) Registered person whose annual aggregate turnover alcoholic liquor or petroleum goods.
of goods in the preceding financial year did not
exceed1.50 lakh, as per CGST Amendment Act, 2018, c) Supplier shall not have any inter-State outward
w.e.f. 01/02/2019. (Prior to this the composition supplies.
turnover was Rs. 1 crore. vide Notification
No.46/2017, Central Tax dated 13th October,2017.) d) Supplier shall not supply through an electronic
commerce operator who is required to collect
2) The rates of composition are as follows: tax at source under Section 52.

a) 0.50% of the turnover in State or in Union e) Manufacturer of “Ice-cream and other edible
Territory in case of a manufacturer. ice, whether or not containing cocoa”, “pan
masala” and “tobacco & manufactured
b) 2.5% of the turnover in State or in Union tobacco substitutes” are not eligible to opt for
Territory in case of persons engaged in composition scheme as per Notification No.
restaurant, eating house, club etc., where 8/2017 dated 27-6-2017. And Manufacture
food and other articles, drinks other than of “Aerated water” as per Notification
alcoholic drinks are served for human No.43/2019, C.T. Dt.30/09/2019, W.E.F.
consumption, by way of supply and/or service 01/10/2019,
for a consideration.
However, the benefit of composition scheme
c) 0.5% of the turnover in State or Union is admissible to the trader of pan masala and
Territory, in any other case. ice cream.

Provided further that a person who opts to pay tax f ) He/she shall not collect the tax separately i.e.
under clause (a) or clause (b) or clause (c) may supply he shall issue the bill without showing tax
services (other than those referred to in clause (b) of separately instead of tax invoice for a supply.
paragraph 6 of Schedule II), of value not exceeding
ten per cent of turnover in a State or Union territory g) He/she is not entitled to any ITC.
in the preceding financial year or five lakh rupees,
whichever is higher. [Inserted by the Central h) The option of composition shall lapse from
Goods and Services Tax (Amendment) Act, 2018, the day when his aggregate turnover exceeds
w.e.f. 01/02/2019 by Noti.No.2/2019-CT DT the permissible limit.
29/01/2019]
i) Where a person holding same PAN has more
There will be equal SGST/UTGST. Thus, total tax than one registration either in the same State
to be payable shall be double the aforesaid rates. or different States, he/she has to opt for the

3) Only registered person is eligible for Composition
scheme.

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composition scheme in respect of all such GST Composition Scheme
registrations.
days of the end of such quarter and Annual return shall be
j) The option to pay as per composition scheme furnished for every financial year in Form GSTR-4, on or
will commence from the first day of the before April 30 following the end of such financial year.
financial year or the appointed day or the date
of effect of the registration certificate, as the The composition rules have been framed wherein the
case may be. procedure for opting for the scheme is prescribed. A
person who has been allotted a provisional registration can
Certain conditions are prescribed in Rules 3 to 7 electronically file intimation in form GST-CMP-01 duly
which are as under: signed on the common portal prior to the appointed day
but not later than 30 days after the said date or such further
a) He/she is neither a casual taxable person nor period as may be extended by the Commissioner in this
a non-resident taxable person. respect. Thus, the option for composition can be availed
right from the appointed day. In case such intimation is
b) The goods held in stock by him/her on the made after the appointed day, the registered person will
appointed day have not been purchased in have to issue the bills for supply without collecting the
the course of inter-State trade or imported tax right from the appointed day.
from a place outside India or received from
his/her branch situated outside the state or Persons obtaining registration after the appointed day may
from his/her agent or principal outside the choose the option for composition scheme in Part B in
state where the option is exercised at the time Form GST-REG-01 which will be considered as intimation
of provisional registration. to pay the tax under the said scheme.

c) The goods held in stock by him/her have not Other persons who wish to opt for the composition scheme
been purchased from an unregistered person have to electronically file intimation in Form GST-CMP-02
and if so purchased, and then he pays the tax on the common portal before the commencement of the
under sub-section (4) of Section 9. financial year for which he wishes to exercise the option
of composition on or before 31/03/2018. He/she will also
d) He/she shall pay RCB tax under Sections have to furnish the statement in form GST ITC-03 within
9(3) & (4) on inward supplies as applicable 180 days from the commencement of the financial year,
to others. which gives the details of the stock held on the previous
day since he is not entitled to the ITC on such stocks and
e) He/she is not engaged in the manufacture corresponding purchases.
of goods notified u/s. 10(2)(c) during the
preceding financial year. Any person who files an intimation to pay composition
tax shall furnish the details of stock, including the inward
f ) He/she shall mention the words “composition supply of goods received from the unregistered persons,
taxable person, not eligible to collect taxes on held by him on the day preceding the date from which
supplies” at the top of the bill of supply, issued he opts to pay tax, electronically, in Form GST-CMP-3,
by him/her. on the common portal within 90 days of the date from
which the option for composition levy is exercised or within
g) He/she shall mention the words “composition such period as may be extended by the Commissioner in
taxable person” on every notice or signboard this behalf.
displayed at a prominent place at its principal
place of business and his/her every additional An application for withdrawal from the composition
place or places of business. Scheme shall be filed in Form GST-CMP-04, on the
common portal electronically, within 7 days from the day
Person opting for composition scheme need not intimate a registered person ceases to satisfy any of the conditions
every year so long as he/she wishes to continue with the mentioned in section 10 or composition rules or by a
scheme. person who wants to withdraw from the composition
scheme and shall issue tax invoice for every taxable supply
The registered person paying composition tax shall have made thereafter.
to furnish only in GST CMP-08 per quarter within 18

9

GSTPAM Referencer 2019-20 2020 by 07/7/2020 and (ii) furnish the return in FORM
GSTR-4 for the financial year 2019-20 by 15/07/2020,
Where the proper officer has reason to believe that the
registered person was not eligible to pay tax u/s. 10 or has Composition Scheme for Small Service Providers/
contravened the provisions of the Act or Composition rules, Suppliers w.e.f. 01/04/2019: -
the proper officer may issue a Notice to such a person in
Form GST-CMP-5 to show cause as to why option to pay GST Council in its 32nd Meeting has recommended an
tax under Section 10 should not be denied. Alternative Compositions Scheme for mixed supplier
to pay GST at the rate of 6%. To give effect to this
The registered person shall have to file reply in Form recommendation, the Govt. has issued Notification.
GST-CMP-06 within 15 days of the receipt of such show No.2/2019, DT. 7/03/2019.The Finance (No.2) Act,2019
cause notice. has inserted sub-section (2A) in Section 10 of CGST Act
for this purpose.
Upon receipt of reply to the show cause notice from the
registered person in Form GST-CMP-06, the proper The said composition Scheme shall be made available
officer shall issue an order in Form GST-CMP-07 within for suppliers of services (or mixed suppliers) with a tax
30 days of receipt of such reply, either accepting the reply rate of 6% (3% CGST + 3% SGST) having an annual
or denying the option to pay tax u/s.10 from the date of turnover in preceding financial year of up to Rs. 50 lakhs
option or from the date of the event concerning such or less. The said scheme shall be applicable to both service
contravention, as the case may be. Proper officer can pass providers as well as suppliers of goods and services, who
an order withdrawing the scheme upon contravention of are not eligible for the presently available composition
any of the conditions of the scheme after affording an scheme of goods. They would be liable to file one annual
opportunity of being heard to the dealer. return with quarterly payment of taxes.

Where, if Composition Deale in any default of tax Conditions:
payment, then Proper Officer has reason to believe that a
composition dealer has wrongly availed the benefit under Mentioned Scheme will be applicable to registered
the composition scheme. Such a person shall be liable person, -
to pay all the taxes which he would have paid under the
normal scheme and also he will be liable to pay a penalty (i) whose aggregate turnover in the preceding financial
equivalent to an amount of tax payable as per the provisions year was fifty lakh rupees or below;
of sections 73 and 74 respectively. This penalty will not
be levied without giving a show cause notice to the dealer. (ii) who is not eligible to pay tax under sub-section (1) of
section 10 of the said Act; - Therefore, this notification
When existing registered person switches from normal will be applicable mainly to Service Providers with
scheme to composition scheme, the Registered Person certain exceptions u/s 10(2).
shall be liable to pay an amount equal to the credit of
input tax in respect of inputs held in stock on the day (iii) who is not engaged in making any supply which is
immediately preceding the date of such switchover. The not leviable to tax under the said Act; - Supplying
balance of input tax credit after payment of such amount, NON GST Item e.g. petrol, etc
if any, lying in the credit ledger shall lapse.
(iv) whoisnotengagedinmakinganyinter-Stateoutward
Recently, the taxpayers opting the composition scheme supply;
for the Financial Year 2020=2021, have been allowed, as
per the, Notification No.30/2020- Central Tax, dated (v) who is neither a casual taxable person nor a non-
03/04/2020,to (i) file an intimation in Form GST CMP- resident taxable person;
02 by 30/06/2020 and (ii) furnish the statement in Form
GST ITC-03 till 31/07/2020.In addition to the said class (vi) who is not engaged in making any supply through
of taxpayers, as per the Notification No. 34/2020- Central an electronic commerce operator who is required to
Tax, dated 03/04/2020, have been allowed, to, (i) furnish collect tax at source under section 52; and
the statement of details of payment of self-assessed tax in
FORM GST CMP-08 for the quarter January to March, (vii) who is not engaged in making supplies of the goods,
the description of which is specified in the Table
below,

10

GST Composition Scheme

Sr No. Tarif Item, sub-heading, heading or Chapter Description
1 2105 00 00
Ice cream and other edible ice, whether or not
2 2106 90 20 containing cocoa.
2A 2202 10 10
3 24 Pan masala.

Aerated water

All goods, i.e. Tobacco and manufactured tobacco
substitutes.

(vii) TheSchemewillbeapplicabletoallunitsofservice (xi) The registered person shall mention the following
provider having GST numbers based same PAN. words at the top of the bill of supply, namely: -
This means service provider can’t keep any unit out ‘taxable person paying tax in terms of Notification
of ambit of this scheme, if opted it for any one unit. No.2/2019-CentralTax (Rate) dated 07/03/2019,
not eligible to collect tax on supplies.
(ix) The registered person shall not collect any tax from
the recipient on supplies made by him nor shall he (xii) The registered person opting to pay tax under this
be entitled to any credit of input tax. notification shall be liable to pay tax at the rate of
six percent on all outward supplies including Section
(x) The registered person shall issue, instead of tax 9(1) - refers to all intra state supply of goods or service
invoice, a bill of supply as referred to in clause (c) or both, except supply of alcoholic liquor.
of sub-section (3) of section 31 of the said Act with
particulars as prescribed in rule 49 of Central Goods (xiii) The RCM on inward supply related provisions u/s
and Services Tax Rules. 9(3) & 9(4) will be applicable to those who are opting
for this scheme.

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GSTPAM Referencer 2019-20

Time of Supply

Separate provisions under the CGST Act have been well as of services respectively by Sections 12 and 13. It
made for determination of time of supply of goods as is advisable to study them separately.

Time of Supply in case of Goods

Tax becomes payable at the time of supply, as determined This means the actual time of supply is not to be taken

in accordance with the provision of Section 12 into account but, the one determined by Section 12 is

deemed to be treated as time of supply. It contains General

provisions, Specific provisions and Residuary provision.

General Provision: Time (a) Date of issue of (b) Last date on which tax (c) Date of receipt of

of supply shall be earliest of Invoice or invoice shall be issued payment i.e., earlier

these three dates u/s 31(1), i.e.: of the following:

(i) Where the supply (i) The date on which the
involves movement payment is entered in
of goods, tax Invoice the supplier’s books or
shall be issued before
or at the time of
removal of goods for
supply to the recipient
or

(ii) In other case, Tax (ii) The date on which the
Invoice shall be payment is credited
issued before or at to supplier’s bank
the time of delivery account
of goods or making
the goods available to
the recipient or

(iii) As per date Notified
by the Government
within its power to
do so as per proviso
to Section 31(1)
for issuance of a tax
invoice

For the purposes of date of invoice and date of receipt of payment, “supply” shall be deemed to have been made to
the extent it is covered by the invoice or payment.

Movement of goods covers cases where the supply in question requires the movement of goods from one place to
another. Removal means dispatch and receipt of goods respectively by supplier and recipient and the tax invoice shall
be prepared before or at the time of such dispatch by the supplier.

In Pasco Motor LLP (AAR-Haryana) it was ruled that in cases where the goods are delivered by the applicant
later on but the invoice is raised earlier, the date of issue of invoice will be the time of supply for the purposes of
determining the tax period for filing return and payment of tax for such supplies.

12

GST Composition Scheme

Where payment up to ` The Time of supply in respect of such excess shall be at the option of supplier:—

1,000/- is received in excess (i) The date of receipt of such excess amount or
of the amount indicated in
(ii) The date of issue of invoice in respect of such excess amount
Tax Invoice

Specific provision where Time of supply shall be earliest of the following dates:

tax is payable on reverse (a) Date of receipt of goods or
charge basis by the recipient (b)
of goods Date of payment as entered in recipient’s books or date on which the payment is
debited in recipient’s bank account, whichever is earlier or

(c) Date immediately following thirty days from the date of invoice or any other
document, by whatever name called, in lieu thereof by the supplier.

Where it is not possible to determine the time of supply as per the aforesaid provisions,
it shall be date of entry in the recipient’s books.

Specific Provision in case Time of supply shall be:

of supply of vouchers by (a) The date of issue of voucher, if the supply is identifiable at that point; or
a supplier (b) The date of redemption of voucher, in all other cases

Residuar y Provision, Time of supply shall be:

where it is not possible to (a) Date on which a periodical return is to be filed, (if it is required to be filed); or
apply the general or/and (b) In other case, the date on which tax is paid.
special provisions

W h e r e t h e s u p p l i e r Time of supply shall be the date on which such additional value is received.
receives the additional
payments by way of
interest, late fee or penalty
for delayed payment of
value of supply

Time of Supply in case of Services

Tax becomes payable at the time of supply, as determined This means the actual time of supply is not to be taken into

in accordance with the provision of Section 13. account but, the one determined by Section 13 is deemed

to be treated as time of supply of services.

General Provision: Time of (a) Date of invoice if (b) Date of provision (c) Date on which the

supply shall be earliest of the the invoice is issued of service or date of recipient shows the

following dates: within the period receipt of payment, receipt of services in his

prescribed u/s 31(2) whichever is earlier; books. (This provision

or date of receipt of [This will apply only will apply only where

payment, whichever if invoice is not issued provisions of clause (a)

is earlier within the period and (b) do not apply)

prescribed u/s 31(2)]

For the purposes of clauses (a) and (b)--

(i) The supply shall be deemed to have been made to
the extent it is covered by the invoice or, as the case
may be, the payment

13

GSTPAM Referencer 2019-20

(ii) The date of receipt of payment shall be the date
on which the payment is entered in the books
of account of the supplier or the date on which
the payment is credited to his bank account,
whichever is earlier

In Siemens Ltd. [2019] 76 GST 321 (AAR-West Bengal) it was ruled that where mobilisation advance received by
supplier for works contract service remained unadjusted as on 01.07.2017, supplier is deemed to have supplied the
service on 01.07.2017 and GST is leviable thereon. In appeal, the said view was upheld by the AAAR-West Bengal.

Where payment up to ` The Time of supply in respect of such excess shall be at the option of supplier:-

1,000/- is received in excess (i) The date of receipt of such excess amount or
of the amount indicated in
(ii) The date of issue of invoice in respect of such excess amount.
Tax Invoice

Specific provision where Time of supply shall be earliest of the following dates:

tax is payable on reverse (a) Date of payment as entered in recipient’s books or date on which the payment is
charge basis by the recipient debited in recipient’s bank account, whichever is earlier; or

of services (b) Date immediately following sixty days from the date of issue of invoice or any other

document, by whatever name called, in lieu thereof by the supplier.

Where it is not possible to determine the time of supply as per the aforesaid provisions,
it shall be date of entry in the recipient’s books.

Where supply is by an associated enterprise located outside India, time of supply shall
be the date of entry in the recipient’s books or the date of payment, whichever is earlier.

Special Provision in case Time of supply shall be:

of supply of vouchers by (a) Date of issue of voucher, if the supply is identifiable at that point; or
a supplier (b) The date of redemption of voucher, in all other cases

Residuar y Provision, Time of supply shall be:

where it is not possible to (a) Date on which a periodical return is to be filed, (if it is required to be filed); or
apply the general or/and
(b) In other case, the date on which tax is paid.
special provisions

W h e r e t h e s u p p l i e r Time of supply shall be the date on which such additional value is received.
receives the additional
payments by way of
interest, late fee or penalty
for delayed payment of
value of supply

Change in rate of tax in respect of supply of goods or services

Section 14 determines the time of supply of goods and/or services where there is a change in the rate of tax. In such
cases the provisions of Sections 12 and 13 are not to be applied.

This section takes into account six situations as stated hereunder:

Where the supply is made Invoice is issued Payment is received Time of supply

Before the change in rate After the change After the change Earlier of date of issue of
of tax invoice or date of receipt of
payment

14

GST Composition Scheme

After the change Before the change Date of receipt of payment

Before the change After the change Date of issue of invoice

After the change in rate Before the change Before the change Earlier of date of issue of
of tax invoice or date of receipt of
payment

Before the change After the change Date of receipt of payment

After the change Before the change Date of issue of invoice

“Date of receipt of payment” is the date on which the payment is entered in the supplier’s books or the date on which
the payment is credited to supplier’s bank account, whichever is earlier. Moreover, if the date of credit in supplier’s
bank account is after 4 working days from the date of change in rate of tax, the date of receipt of payment has to
be taken as the date of credit in the bank account.

Value of Taxable Supply of goods & services: Section 15 (ii) The payment made by the pure agent
on behalf of the recipient is separately
1. Supply by unrelated parties where price is sole indicated
consideration
in the invoice issued by the pure agent
u Value = Price +Taxes, duties, cesses, etc. under to the recipient of service; and
any other law + amount paid by recipient on
behalf of the supplier not included in the (iii) The supplies procured by the pure agent
price + Non-Govt. subsidies directly linked from the third party as a pure agent
to the price + Interest or penalty charged by of the recipient are in addition to the
supplier for delayed payment of consideration services he supplies on his own account.
+ Incidental expenses & charges charged by
supplier and any amount charged by supplier u In Ultratech Cement Ltd. [2018] 69 GST
for anything done in respect of the goods and/ 188 (AAR-Maharashtra) it was ruled that
or services at the time of, or before the delivery the amount paid to authorised dealers on
of goods or supply of services. account of rate difference after supplying
goods to authorised dealers & stockists (i.e.,
u Following discounts are excluded: post-sale discount) cannot be considered for
determining transaction value as the same does
- Discount given before or at the time not comply with the conditions of discount
of supply and recorded in the invoice. enumerated u/s 15(3)(b) of the CGST Act.

- Discount given after supply if the same u In Arivu Educational Consultants Pvt. Ltd.
is established in terms of an existing [2020] 32 GSTL 353 (AAR-Karnataka) it
agreement and specifically linked to was ruled that where the applicant providing
relevant invoices, and ITC attributable coaching, learning and training services
to such discount is reversed by recipient. collected certain amount as examination
fee from students and remitted the same to
u Expenditure incurred by the supplier of the respective college or university without
services as a pure agent and recovered from any profit element, activity of collecting
the recipient shall be excluded from the value, examination fee is a service as a pure agent.
if the following conditions are cumulatively
satisfied: [Rule 33] u In Santhosh Distributors [2020] 32 GSTL
105 (AAR-Kerala) it was ruled that the
(i) The supplier acts as a pure agent of the reimbursement of discount/rebate by the
recipient, when he makes payment to principal company to its distributor in lieu
the third party on authorisation by such of supply of goods by the distributor at a
recipient;

15

GSTPAM Referencer 2019-20

discounted rate based on the principal’s pre- u Also refer to:
fixed rate scheme was liable to be added to
the consideration payable by customer to the - CBIC Circular No. 92/11/2019-
distributor to arrive at the value of supply u/s GST dated 07-03-2019 regarding
15 at the hands of the distributor. clarification on treatment of sales
promotion schemes under GST.
u In Navodit Agarwal [2019] 73 GST 636
(AAR-Chhattisgarh)it was ruled that the cost - CBIC Circular No. 102/21/2019-GST
of diesel provided by the service recipient for dated 28-06-2019 on clarification regarding
transportation of his cement/clinker was liable applicability of additional/penal interest.
to be added to the freight amount charged by
the supplier of service. - CBIC Circular No. 105/24/2019-GST dated
28-06-2019 regarding clarification related to
u In Lear Automotive India Pvt. Ltd. [2019] treatment of secondary or post-sales discounts.
21 GSTL 204 (AAR-Maharashtra)andNash (This circular has been withdrawn ab-initio
Industries (I) Pvt. Ltd. [2019] 23 GSTL 367 vide Circular No. 112/31/2019-GST dated
(AAAR-Karnataka) it was ruled that cost of 03-10-2019.)
tools/amortised value of tools received free of
charge from customer shall not be includible in - Corrigendum to CBIC Circular No.
the value of goods manufactured and supplied 76/50/2018-GST dated 07-03-2019
by the applicant to customer. regarding exclusion ofTCS under IncomeTax
Act, 1961 for the purposes of determination
of value of supply.

2. Other situations
Value to be determined in order, from left to right:

Sr. Situation Open Monetary Value 110% of cost Reasonable basis

No. Market + Non- of like of production/ (Rule 31) (Service

value monetary kind and acquisition/ provider can

consideration quality provision opt for this rule

(Rule 30) ignoring Rule 30)

(1) (2) (3) (4) (5)

1 Price is not the sole    
consideration (Rule 27)

2* S u p p l y b e t w e e n   
distinct/related persons
(excluding agents) (Rule
28)#

3* Supply through agent  
(Rule 29)

* For Rule 28 & 29: If goods are intended for further supply as such by recipient, supplier may adopt value of 90%
of price charged for supply of goods of like kind and quality by the recipient to his unrelated customer.

# For Rule 28: Where the recipient is eligible for full ITC, the value declared in the invoice shall be deemed to be
the open market value.

In Specsmakers Opticians (P.) Ltd. [2020] 32 GSTL 751 (AAAR-Tamil Nadu) it was ruled that where
goods are supplied to distinct person, i.e., branches outside the State and recipient is eligible for full ITC,
second proviso to rule 28 provides that value declared in invoice to be ‘open market value’ for such transaction.

16

GST Composition Scheme

In GKB Lens Pvt. Ltd. [2018] 13 GSTL 343 (AAR-West Bengal) it was ruled that goods transferred from
the head office to branches in other States can be valued in terms of cost price under second proviso to rule
28, instead of 90 per cent of MRP as required under first proviso of the said rule.

3. Value in case of lottery, betting, gambling and horse racing (Rule 31A)

Situation Value

Supply of lottery1 100/128 of the face value of ticket or of the price as notified in
Official Gazette by the Organising State, whichever is higher.

Supply of actionable claim in the form of 100% of the face value of the bet or amount paid into the totalisator.
chance to win in betting, gambling or horse
racing in a race club

1 Entry relating to valuation of lottery substituted by CGST (Second Amendment) Rules, 2020 w.r.e.f. 01-
03-2020. Vide this amendment, the differentiation between “lottery run by State Government” and “lottery
authorised by State Government” has been done away with.

4. Value at the option of the supplier in certain situations (Rule 32)

a. Foreign currency including money changing: [Rule 32(2)]

i. General rule [Rule 32(2)(a)]

Situation Value

Where one of the currencies is INR and Selling rate or Buying rate (-) RBI Reference Rate x

RBI reference rate is available No. of units of currency

RBI reference rate unavailable 1% of gross INR provided/received by the supplier

Between non-INR currencies 1% of INR value of first currency or 1% of INR value
of second currency, whichever is lower

ii. Below option to be exercised for the whole FY if opted [Rule 32(2)(b)]:

Gross amount of currency Value (`)
exchanged (`)

Up to 1 lakh 1% or ` 250, whichever is higher

More than 1 lakh and up to 10 lakh ` 1,000 + 0.5% of amount exceeding 1 lakh

Above 10 lakh ` 60,000 OR ` 5,500 + 0.1% of amount exceeding
10 lakh, whichever is lower

b. Air travel bookings by travel agent [Rule 32(3)]

Situation Value

Domestic travel 5% of basic fare

International travel 10% of basic fare

“Basic fare” means that part of the air fare on which commission is normally paid to the air travel agent
by the airlines.

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GSTPAM Referencer 2019-20

c. Life insurance business [Rule 32(4)]

Situation Value

Amountofinvestment/savingsintimated Gross premium charged (-) amount allocated for investment or
to policy holder at the time of supply savings on behalf of the policy holder
of service

Situation Value

Single premium annuity policies other 10% of single premium
than above

Others 25% of premium charged in the first year and 12.5% of premium
charged in subsequent years

Entire premium paid by policy holder Refer other valuation rules (This sub-rule does not apply)
is towards risk cover in life insurance

d. Second hand goods dealers: [Rule 32(5)]

Situation Value

General rule — No ITC on purchases Selling price (-) Purchase price
and loss to be ignored

Goods repossessed for recovery of Selling price (-) Purchase price of goods by defaulting borrower

loan/debt from unregistered defaulting reduced by 5% for every full or part quarter between date of

borrower purchase and date of disposal by the person making repossession

“Second hand goods” = Used goods sold as such or after such minor processing which does not change
the nature of the goods and where no ITC is availed on the purchase of such goods.

In Shambhu Traders (P.) Ltd. [2019] 73 GST 245 (AAR-Rajasthan) it was ruled that rule 32(5) of
the CGST Rules, 2017 which provides for margin scheme in case of intra-State supplies shall also be
applicable to inter-State supplies.

e. Redeemable token, voucher, coupon, stamp u “Pure agent” means a person who -
(other than postage stamp): [Rule 32(6)]
(a) entersintoacontractualagreementwith
Value = Money value of the goods or services the recipient of supply to act as his pure
redeemable against such token, etc. agent to incur expenditure or costs in
the course of supply;
5. Value of supply in cases where Kerala Flood Cess
is applicable (Rule 32A) (b) neither intends to hold nor holds any
title to the goods or services or both so
Value for levying Kerala Flood Cess = Value procured or supplied as a pure agent;
determined in terms of 15 excluding such cess.
(c) does not use the procured goods or
6. Value of supply of services in case of pure agent services for his own use;
(Rule 33)
(d) receives only actual amount incurred
u Expenditure/cost incurred by a supplier as to procure such goods or services in
a pure agent of the recipient of supply shall addition to the amount received for
be excluded from value of supply subject to supply he provides on his own account;
certain conditions (already covered above).

18

7. Rate of exchange of currency, other than INR, for GST Composition Scheme
determination of value (Rule 34)
Generally Accepted Accounting Principles for
(i) For determination of value of goods = the date of time of supply of such services in
Applicable rate of exchange as notified by terms of section 13 of the CGST Act.
the Board under Customs Act, 1962 for date 8. Value where amount is inclusive of GST (Rule 35)
of time of supply of such goods in terms of Tax = Value inclusive of taxes x tax rate in %/
section 12 of the CGST Act. (100+ sum of tax rates in %)

(ii) For determination of value of services =
Applicable rate of exchange determined as per

19