SUBJECT: GST - LAW & PRACTICE

IMPORTANT QUESTION & ANSWERS

MODULE NO- 01 INTRODUCTION

2 Marks:

1. Give the Meaning of GST ?

GST – Goods and Services Tax is a comprehensive tax levy on manufacture, sales and
consumption of goods and services at national level i.e. all over India.

According to Goods and Services Tax CGST (CGST) Act 2017, “GST is a tax on goods and
services with the value addition at each stage having comprehensive and continuous chain of set
of benefits from the producer’s or service provider’s point up to the retailer’s level where only the
final consumer should bear the tax”.

2. Expand - SGST,CGST,IGST,UTGST,
SGST (State Goods and Services Tax)
CGST (Central Goods and Services Tax)
IGST (Integrated Goods and Services Tax)
UTGST (Union Territory Goods and Services Tax)

3. Give the Meaning of Aggregate Turnover

Aggregate Turnover refers to the total value of all taxable supplies (goods and services) made by
a taxpayer, including the value of exempt supplies, exports, and inter-state supplies of persons
having the same Permanent Account Number (PAN), but excluding taxes and other items. In the
context of the Goods and Services Tax (GST) system in India, aggregate turnover is a crucial factor
in determining various aspects of compliance and eligibility.

4. What is Adjudicating Authority

Adjudicating Authority means any authority competent to pass any order or decision under this
Act, but does not include the Board, the First Appellate Authority and the Appellate Tribunal
 5. Give the Meaning of place of Supply
The "place of supply" under the Goods and Services Tax (GST) refers to the location where a
supply of goods or services is deemed to have taken place. The determination of the place of
supply is crucial for the proper application of GST, as it helps in identifying the appropriate tax
jurisdiction (central, state, or integrated) and ensures that the correct taxes are levied.

6. What is Composite Supply

Composition supply refers to supply made by a taxable person to a recipient consisting of two or
more taxable supplies of goods or services or both or any combination thereof, which are naturally
bundled and supplied in conjunction with each other in the ordinary course of business, one of
which is a principal supply.

7. What is Mixed Supply?

Mixed supply under the Goods and Services Tax (GST) refers to a supply of two or more individual
goods or services or any combination thereof, made together in a single transaction, where they
cannot be naturally bundled and are supplied with each other in the ordinary course of business.

5/12 Marks:

1. State the Objective of GST ?

❖ To remove the cascading effect of tax i.e. repetition of tax.
❖ Reduces the liability of the traders and ensures consumption-based tax.
❖ Standard rate of tax will be applied.
❖ Reduction in the number of taxes at the Central and State level.
❖ Decrease in effective tax rate for many goods
❖ Reduction of transaction costs of the taxpayers through simplified tax compliance
❖ Increased tax collections due to wider tax base and better compliance
❖ Single registration and form for payments of various indirect tax
❖ Uniform collection procedure of tax and increase Tax GDP ratio and revenue surplus.
❖ To reduce the tax slab rates to avoid further clarification issues.
 2. Explain the features of GST

 Dual GST model:

India is a federal country where both center and states have assigned power to levy and collect
taxes through appropriate legislation. The model implemented in India is “Dual GST” model; taxes
will be levied by both center (Central GST) and State (State GST) on goods and services.

 Destination Based Tax:

GST will be a destination –based tax. This implies that all SGST collected will ordinarily accrue
to the state where the consumer of the goods and services sold resides.

 Taxes to be subsumed:
The various central, state and local levies were examined to identify their possibility of being
subsumed under GST. Central and State indirect taxes and levies listed below would be subsumed
under the GST:

 GST on Export and Import:

Exports will not be subject to GST. Integrated goods and services tax will be levied on import of
goods and services into the country.

 Computation of GST on the basis of invoice credit method:

The liability under the GST will be invoice credit method i.e CENVAT credit will be allowed on
the basis of invoice issued by the supplier.

 Payment of GST:
The CGST and SGST are to be paid to the accounts of the central and state respectively.

 Goods and Services Network:

A not-for-profit, Non –Government company called Goods and Services Tax Network(GSTN),
jointly set up by the central and state government will provide shared IT infrastructure and services
to the central and state governments, tax payers and other stakeholders.

 Input Tax credit (ITC) set off:

Input tax credit (ITC) for CGST and SGST will be taken for taxes allowed against central and state
respectively.

 Maintenance of Records:
A taxpayers or exporter would have to maintain separate details in books of account for a ailment,
utilization or refund of input tax credit of CGST, SGST and IGST
  GST council:
The GST council will be a joint forum of the central and states. The council will make
recommendations to the union and the states on important issues like tax rates, exemption list,
threshold limits, etc.

3. What is SGST, CGST, IGST, and UTGST? Explain the features of all?

SGST:
SGST stands for State Goods and Services Tax. It is a component of the Goods and Services Tax
(GST) system in India. SGST is a tax levied by the state government on the supply of goods and
services within a particular state.
Intra-State Taxation:
● SGST is applicable to the supply of goods and services that occur within a specific
state. It is levied by the state government on intra-state transactions.
Revenue Collection for States:
● The revenue collected through SGST goes to the respective state government. This
revenue is crucial for the funding of state-specific development programs,
infrastructure, and public services.
Part of Dual GST Structure:
● SGST is part of the dual GST structure, along with CGST (Central Goods and
Services Tax). In intra-state transactions, both SGST and CGST are levied
simultaneously, with the combined rate being equal to the GST rate applicable to
that transaction.
State-Specific Rate Determination:
● Each state has the authority to determine its own SGST rate. The SGST rate is
usually set at the same rate as the CGST rate, leading to a combined GST rate for
intra-state transactions.
Input Tax Credit (ITC):
● Businesses registered under GST can claim Input Tax Credit for the SGST paid on
their purchases of goods and services. This mechanism helps in avoiding the
cascading effect of taxes and ensures that taxes are only paid on the value added at
each stage of the supply chain.
Filing of Returns:
● Businesses need to file periodic GST returns, including details of SGST collected
on sales and SGST paid on purchases. This facilitates the reconciliation of input tax
credit and ensures compliance with GST regulations.
Comprehensive Tax Structure:
● SGST replaces various state-level taxes like VAT (Value Added Tax) and other
indirect taxes, contributing to a more unified and standardized tax system across the
country.
CGST :
CGST stands for Central Goods and Services Tax. It is one of the components of the Goods and
Services Tax (GST) system in India. CGST is a tax levied by the central government on the supply
of goods and services within a particular state.

Features of CGST Act, 2017:

1. Levied and collected by Central Government

2. It is applicable only within state
3. Central government to replace other taxes
4. The exemption limit is Rs.20 Lakhs
5. State wise single registration
6. Low physical interface – Fulfilled online
7. Single return for all supplies
8. No surcharges
9. Different types of taxes under this act – CGST, SGST, IGST, UTGST
10. No Registration required for some cases – Annual threshold limit, category states like
Arunachal Pradesh, Sikkim, HP, Assam, States of North-Eastern.
11. Composition Scheme

IGST:
It is a part of GST. IGST is charged when the movement of goods and services from one state to
another.
According to sec 2(c) IGST means – tax levied under this Act on the supply of any goods and
services in the course of inter-state trade or commerce.

Features of IGST:

• Levy Of IGST - Inter-State supply of G&S, supply to SEZ,

• Tax rates – it will be recommended by GST Council and covered around 40% • The Centre may
exempt certain G&S through notification
• The apportionment of GST revenue is between state (where the supply of G&S was received)
and Central (as per CGST rate)
• Bill provided separate rules for Place of supply of goods i.e. where goods are physically moved
and final destination.
• ITC – not applicable for supply of motor vehicle used for personal consumption, supply of food,
health care
• The application, registration, appeals, returns, refunds are as per IGST Act 2017.
UTGST :

UTGST stands for Union Territory Goods and Services Tax. It is a component of the Goods and
Services Tax (GST) system in India. UTGST is similar to SGST (State Goods and Services Tax)
but is applicable in Union Territories that do not have a legislative assembly.

Features of UTGST:

1. This was introduced in Lok Sabha in March 2017. The bill provides for the levy of GST for
Union Territories in India.
2. the Centre will levy tax
3. The tax rate is recommended by the GST Council and will not exceed 20% 4. The Centre may
exempt certain G&S through notification.
5. All officers of Railways, Police, Customs, collection of land revenue, village officers will assist
the tax administrative officers in implementing this Act.
6. The provisions include time and value of supply, composition of levy, assessment, levy,
returns, appeals, advances and registration etc.
7. ITC may be utilized under GST.

4. What is GST? Explain the Advantages and Disadvantages of GST?

Advantages and Disadvantages of GST :

Advantages of GST :
To Traders :

- Reduction in multiplicity of taxes

- Mitigation of cascading / double taxation.
- Development of a common national market.
- Simpler tax regime ( Fewer rates and exemptions)

To Government:
- Simpler tax system.
- Broadening of Tax Base.
- Improved Compliance and Revenue collections.
- Efficient Use of Resources.
- Automation of compliance procedures to reduce errors and increase efficiency.
- Uniform SGST and IGST rates to reduce incentive of tax evasion.
- Reduction in compliance Costs as no requirement of multiple record keeping.
To the Citizens:
- Simpler tax System.
- Reduction in prices of goods and services due to elimination of cascading effects.
- Uniform prices throughout the country.
- Transparency in Taxation system
- Increase in Employment opportunities.

Other benefits of implementation of GST in India:

● GST will end cascading of Taxes
● Growth of Revenue
● Reduce unnecessary wastages
● Eliminates the multiplicity of taxation
● Reduces average Tax burden
● Reduces the corruption
● Uniformity of tax rates in all states

Disadvantages of GST
Higher Tax burden for manufacturing small scale enterprises:
Increase in operating cost
Change in business software
Registration of all states.
Composition Scheme will not be availed for many customers.

5. What is the GST Council ? Explain the Composition and Powers and Functions of the
GST Council ?
It is the apex body for governing all the GST related issues. In order to implement the GST, a
Constitutional Bill was introduced in the parliament and passed by Rajya Sabha on 3rd August 2016
and Lok Sabha on 8th August 2016.

This Constitutional Amendment Bill (CAB) was passed by more than 15 states and Honorable
President gave assent to the “The Constitution Act, 2016”

The GST council consists of:

* The Union Finance Minister as Chairman [Nirmala Seetharaman]

* The Union Minister of State in charge of Revenue or Finance

* The Minister in charge of Finance or Taxation or any other Minister nominated by the State
government
Action plan of GST council:

1. List of indirect taxes, cess and surcharges to be subsumed under GST.

2. Preparation of list of goods and services that are subject to tax and exempted from GST.
3. Determination of threshold limit of turnover for application of GST.
4. Fixation of rates of GST.
5. Preparation of GST Laws, principles of levy of tax and apportionment of tax benefits.
6. Notification of GST rules.
7. Establishment and up-gradation of IT framework.
8. Training of the Officials.
9. Effective coordination between the Centre and State tax

Powers and Functions of GST Council:

1. Subsuming the various indirect taxes in GST (like CST, VAT, Excise duty, Services Tax)
2. When should petroleum products be brought under GST?
3. Distribution of revenue of IGST and CGST among Union and states.
4. Taxes on supply of inter-state.
5. On subsuming the various taxes, cess and surcharges in GST.
6. Certain goods and services may be exempted from GST.
7. Principles that govern place of supply.
8. Determining the Threshold limits of turnover, place of supply.
9. The GST council would also decide when GST would levy on petroleum products initially kept
out of GST.
10. GST rates including floor rate (rate starting from 0%) with bands of GST.
11. This council is vested with powers to regulate all aspects relating to GST. Though the role is
only recommendatory.
12. The rates include the floor rates with bands of goods and service tax.
13. Any special rate for specified periods, to raise additional resources during any natural calamity
of disaster.
14. Special provisions with respect to states like Arunachal Pradesh, Assam, J&K, Manipur,
Meghalaya, Nagaland, Sikkim, Tripura, Mizoram, HP, and Uttarakhand.
15. Compensation to states for loss of revenue for a period of five years.
16. Appointment of IGST and CGST between the center and the state.
17. Any other matter relating to the goods and service tax, as the council may decide.
Other Powers of GST council :
1.Appointment of GST officers
2.Powers of CGST officers
3. Power of inspection, search and seizure
4. Power to Arrest
5. .Access to business premises
6. Power to collect statistics
 Module No.2: GST Registration and Taxable Event

2 Marks:

1. What is GST Registration ?

GST registration refers to the process through which a business or an individual becomes a
registered taxpayer under the Goods and Services Tax (GST) regime in a particular country. The
primary objective of GST registration is to bring transparency and accountability to the indirect
tax system and ensure compliance with tax regulations.

2. Expand PAN,GSP,GSTIN,ARN,SAC,MCA,HSN
PAN stands for Permanent Account Number.
Goods and Services Tax Suvidha Provider.
Goods and Services Tax Identification Number
Application Reference Number.
Services Accounting Code.
Ministry of Corporate Affairs.
Harmonized System of Nomenclature.

3. What is a Taxable Event?

A taxable event, in the context of taxation, refers to the occurrence or transaction that triggers the
imposition of a tax liability. It is the specific event or circumstance that makes a person or entity
subject to a particular tax. Different taxes have different taxable events, and the identification of
these events is essential for the determination of tax liability.

4. What is Supply under GST ?

A taxable event, in the context of taxation, refers to the occurrence or transaction that triggers the
imposition of a tax liability. It is the specific event or circumstance that makes a person or entity
subject to a particular tax. Different taxes have different taxable events, and the identification of
these events is essential for the determination of tax liability.

5. What is place of Supply

The "place of supply" refers to the location where a supply of goods or services is deemed to have
occurred for tax purposes. In the context of indirect taxes like the Goods and Services Tax (GST),
determining the place of supply is essential as it helps identify the applicable tax jurisdiction
(central, state, or integrated) and the corresponding tax rates.
 6. What is time of Supply
It refers to the point in time when a transaction is considered to have occurred for tax purposes,
determining when the liability to pay tax arises. The time of supply rules helps in identifying the
period in which a taxpayer is required to account for and pay the applicable taxes.

7. What is Value Supply

The "Value of Supply" refers to the monetary worth of goods or services supplied by a business,
and it is a crucial factor in determining the tax liability under the GST system. The value of supply
is used to calculate the amount of Goods and Services Tax (GST)

5/12 Marks:

1. Explain the GST Registration Process in India ?

1.Check Eligibility: Ensure that your business meets the eligibility criteria for GST registration.
As of my last knowledge update in January 2022, businesses with an aggregate turnover exceeding
Rs. 20 lakhs (Rs. 10 lakhs for special category states) in a financial year are required to register for
GST. However, these thresholds may be subject to change, so it's advisable to check the latest
regulations.
2.Online Application’s registration is done online through the Goods and Services Tax Network
(GSTN) portal. You can visit the official GST portal (https://www.gst.gov.in/) to initiate the
registration process.
3.Provide Basic Information: Fill in the required details in the GST registration application form.
This includes information such as your business name, address, PAN (Permanent Account
Number), contact details, and details of promoters or partners.
4.Upload Documents: You’ll need to upload certain documents, including proof of business
registration, PAN card, Aadhar card, photographs, bank statements, and address proof.
5.Verification Process: After submitting the application and documents, a verification process is
initiated. The GST officer may get in touch with you for any clarification or additional information.
6.GSTIN Allocation: Once the application is approved, a unique Goods and Services Tax
Identification Number (GSTIN) is assigned to your business. This number is used for all GST-
related transactions.
7.Display of GSTIN:You are required to display the GSTIN prominently on your business
premises and also on your invoices.
8.Filing Returns: After registration, you will need to file regular GST returns based on the nature
of your business.
2. Explain the types of Supply under GST ?

Taxable Supply:
● Any supply of goods or services or both that attracts the levy of GST is considered
a taxable supply.
Exempt Supply:
● Certain goods or services or both may be exempt from GST. This means that no
GST is applicable on such supplies. However, suppliers of exempt supplies are
generally not entitled to claim input tax credit.
Zero-Rated Supply:
● Zero-rated supplies are goods or services or both on which the rate of GST is 0%.
This doesn't mean that the supply is exempt; instead, it means that the tax rate is
0%.
Non-GST Supply:
● Some supplies are outside the purview of GST, and hence, no GST is applicable.
Examples include alcohol for human consumption and petroleum products.
Composite Supply:
● A composite supply comprises two or more goods or services, where one is a
principal supply. The rate of tax applicable to the composite supply is that of the
principal supply.
Mixed Supply:
● A mixed supply involves two or more individual supplies of goods or services or
both, made together in the ordinary course of business, where the supplies are not
naturally bundled. The tax rate applicable is that of the supply attracting the highest
rate of tax.
Inter-State Supply:
● When the location of the supplier and the place of supply are in different states or
union territories, it is termed as an inter-state supply. IGST (Integrated Goods and
Services Tax) is applicable to such supplies.
Intra-State Supply:
● Intra-state supply refers to the supply of goods or services or both where the location
of the supplier and the place of supply are in the same state or union territory. CGST
(Central Goods and Services Tax) and SGST (State Goods and Services Tax) or
UTGST (Union Territory Goods and Services Tax) are applicable on intra-state
supplies.

Taxable Person:
● Any person who carries on any business at any place in India and whose aggregate
turnover exceeds the prescribed threshold limit is considered a taxable person.
 3. List out the Exempted Goods and Services under CGST Act - 2017

list of some of the most common goods which are GST exempt –
Types of goods Examples

Live animals Asses, cows, sheep, goat, poultry, etc.

Meat Fresh and frozen meat of sheep, cows, goats, pigs, horses,
etc.

Fish Fresh or frozen fish

Natural products Honey, fresh and pasteurized milk, cheese, eggs, etc.

Live trees and plants Bulbs, roots, flowers, foliage, etc.

Vegetables Tomatoes, potatoes, onions, etc.

Fruits Bananas, grapes, apples, etc.

Dry fruits Cashew nuts, walnuts, etc.

Tea, coffee and spices Coffee beans, tea leaves, turmeric, ginger, etc.
Here is a list of some of the services which enjoy GST exemption –
Types of Examples
services

Agricultural Cultivation, supplying farm labor, harvesting, warehouse related

services activities, renting or leading agricultural machinery, services
provided by a commission agent or the Agricultural Produce
Marketing Committee or Board for buying or selling agricultural
produce, etc.

Government Postal service, transportation of people or goods, services by a

services foreign diplomat in India, services offered by the Reserve Bank of
India, services offered to diplomats, etc.

Transportation Transportation of goods by road, rail, water, etc., payment of toll,

services transportation of passengers by air, transportation of goods where
the cost of transport is less than INR 1500, etc.

Judicial services Services offered by arbitral tribunal, partnership firm of advocates,

senior advocates to an individual or business entity whose
aggregate turnover is up to INR 40 lakhs

Educational Transportation of faculty or students, mid-day meal scheme,

services examination services, services offered by IIMs, etc.

Medical Services offered by ambulance, charities, veterinary doctors,

services medical professionals, etc.

Organizational Services offered by exhibition organizers for international

services business exhibitions, tour operators for foreign tourists, etc.

4. Problems of Time Supply ( 5 marks )

 MODULE NO.3: INPUT TAX CREDIT

2 Marks:

1. Give the meaning of Input Tax Credit ?

Input Tax Credit (ITC) is a key concept under the Goods and Services Tax (GST) system. It refers
to the mechanism where a business can claim a credit for the taxes paid on the purchase of goods
or services used in its own taxable supply. In simple terms, it allows a business to offset the taxes
paid on inputs against the taxes collected on its output.

2. What is Reverse Charge Mechanism

The Reverse Charge Mechanism (RCM) is a concept in the Goods and Services Tax (GST) system
where the responsibility to pay taxes on a supply of goods or services shifts from the supplier to
the recipient. In a standard transaction, the supplier of goods or services is responsible for
collecting and remitting the applicable GST to the government.

3. What is Tax Invoice ?

A tax invoice is a document issued by a registered supplier of goods or services to the recipient,
providing details of the transaction and serving as evidence for the supply of taxable goods or
services. In the context of the Goods and Services Tax (GST) system, a tax invoice is a crucial
document for compliance and record-keeping purposes.

5/12 Marks:

1. Problems on Input Tax Credit

 MODULE NO.4: GST ASSESSMENT

2 Marks:

1. Give the Meaning of Tax Invoice

A tax invoice is a document that includes details of a transaction, such as the products or services
provided, their cost, applicable taxes, and other relevant information. It is typically used in
business-to-business transactions and is important for accounting and tax purposes.

2. Give the Meaning of Credit notes Under GST ?

In the Goods and Services Tax (GST) system, a credit note is a document that a seller issues to a
buyer, indicating a reduction in the amount originally billed. It is typically issued in cases of goods
return, price adjustments, or other similar scenarios where the original invoice needs to be adjusted.

3. Give the Meaning of Debit notes Under GST ?

In the context of Goods and Services Tax (GST), a debit note is a document used to record
additional tax liability in cases where the taxable value or tax charged in the original invoice is
found to be less than the actual amount.

4. What is the GST Return ?

GST returns refer to the periodic filing of tax returns by businesses that are registered under the
Goods and Services Tax (GST) system. In many countries, including India, GST is a consumption-
based tax that replaces multiple indirect taxes.

5. Give the Meaning of Assessment ?

Assessment means determination of tax liability under GST law. Section 2(11) of the CGST Act,
2017 defines the term assessment means determination of tax liability under this Act and includes
self-assessment, re-assessment, provisional assessment, summary assessment and best judgment
assessment.

6. What is Anti-Profiteering ?
Anti-profiteering refers to measures taken by governments to prevent businesses from unjustly
profiting from changes in the tax structure or other economic conditions. The primary goal of anti-
profiteering measures is to ensure that businesses pass on the benefits of reduced taxes
5/12 Marks:

1. List out the GST Return Forms ?

Sl Return What to file By whom By When

No Form No
1 GSTR-1 Details of outward supplies of taxable Registered 10th of the next month
goods and/or services effected taxable supplier
2 GSTR-2 Details of inward supplies of taxable Registered 15th of the next month
goods and/or services effected claiming taxable
input tax credit Recipient
3 GSTR-3 Monthly return on the basis of Registered 20th of the next month
finalization of details of outward taxable Person
supplies and inward supplies along with
the payment of amount of tax
4 GSTR-4 Quarterly return for compounding Composition 18th of the month
taxable person Supplier succeeding quarter
5 GSTR-5 Return for Non-resident foreign taxable
Non-resident 20th of the next month
person taxable person
6 GSTR-6 Return for Input Service Distributor
Input Service 20th of the next month
Distributor
7 GSTR-7 Return for authorities deducting tax at Tax Deductor 10th of the next month
source
8 GSTR-8 Details of supplies effected through e- e-commerce 10th of the next month
commerce operator and the amount of Operator/tax
tax collected collector
9 GSTR-9 Annual Return Registered 31st December of next
taxable person financial year
10 GSTR-10 Final Return Taxable person Within 3 months of the
whose date of cancellation or
registration has date of cancellation
been order, whichever is
surrendered or later.
canceled

2. What are the issues of filing a GST Return ?

Incorrect Information: Providing incorrect personal or financial information can lead to

discrepancies and may result in penalties.

Late Filing: Filing to file returns on time can lead to penalties and interest. It's important to be
aware of the due dates and submit returns accordingly.
Not Verifying Income: Some taxpayers may forget to include all sources of income, such as rental
income, interest income, or income from other investments.

Mismatch in TDS Details: Discrepancies in Tax Deducted at Source (TDS) details provided by
employers or diductors can cause issues. It's important to reconcile TDS details with Form 26AS.

Non-filing of Revised Returns: If there are errors in the original return, individuals should file
revised returns to rectify mistakes. Neglecting this step can lead to complications.

Not Keeping Records: Failing to maintain proper records of financial transactions, investments,
and expenses can make the filing process more challenging.

Failure to Declare Foreign Assets: Individuals with foreign income or assets are required to
disclose them. Failure to do so can result in penalties.

Ignorance of Tax Benefits :Some individuals may not be aware of all the available tax deductions
and exemptions, leading to missed opportunities to reduce their tax liability.

Not Linking Aadhaar:Linking Aadhaar with PAN is mandatory for filing returns. Failing to do
so can result in the rejection of the return.

Incorrect Form Usage: Using the wrong form for filing returns can lead to rejection. It's important
to select the appropriate form based on the nature and amount of income.

Not Updating Contact Information: Providing outdated contact information can result in
individuals missing important communication from the tax department.

3. Explain the Avoidance of Dual Control under GST ?

● Understand GST Structure:

Gain a thorough understanding of the GST structure, including the roles of the central and
state authorities. Be aware of the tax rates, exemptions, and thresholds applicable to your
business.
● Registration Requirements:
Ensure that your business is registered appropriately under GST. Depending on your
turnover and the nature of your business, you may need to register for GST at the central
and state levels.
 ● Proper Documentation:
Maintain accurate and complete documentation of all transactions. This includes invoices,
receipts, and other relevant records. Proper documentation is crucial for audit purposes and
to demonstrate compliance.
● Timely Filing of Returns:
Adhere to the deadlines for filing GST returns. Both central and state authorities have their
respective filing requirements. Timely filing helps avoid penalties and reduces the
likelihood of dual control issues.
● Engage Professional Assistance:
Consider seeking professional advice to ensure that your business operations align with
GST regulations. Tax professionals or consultants can provide guidance on compliance and
help you navigate any complexities.
● Regular Training for Staff:
Keep your staff informed and trained on GST compliance. This is especially important if
your business operates in multiple states, as the rules and procedures may vary.
● Stay Informed about Changes:
Keep yourself updated on any changes or amendments to the GST laws. The GST Council
periodically reviews and updates the framework, so staying informed is essential to
maintaining compliance.

4. What is Assessment ? Explain the types of Assessment.

Refers to the process of evaluating and determining the tax liability of a taxpayer by a tax authority.
It involves the examination of financial records, returns, and other relevant information to ensure
compliance with tax laws and regulations. The purpose of the assessment is to calculate the correct
amount of tax owed by the taxpayer and to verify the accuracy of the information provided in tax
returns.

Types of Assessment

1. Self-Assessment:
- Taxpayers are required to assess their tax liability and file their returns accordingly.

2. Scrutiny Assessment:
- The tax authorities may scrutinize the returns filed by taxpayers to ensure correctness. This is
done through a detailed examination of the documents and information provided by the taxpayer.

3. Summary Assessment:
- This is a provisional assessment carried out by tax authorities in case they believe that the
taxpayer's declaration is not correct. It is typically done to safeguard government revenue.
4. Best Judgment Assessment:
- If a taxpayer fails to file their return, the tax authorities may assess the tax liability to the best
of their judgment based on available information.

5. Special Audit:
- The tax authorities can order a special audit to be conducted by a Chartered Accountant or Cost
Accountant if they think it necessary to verify the accuracy of the taxpayer's accounts.

6. Reassessment:
- In certain situations, tax authorities may reopen an assessment if they believe there was
suppression of facts or incorrect information in the original assessment.

7. Differential Taxation:
- This occurs when the tax authorities find a discrepancy between the amount of tax paid and the
actual liability. They may demand payment of the differential amount.

8. Audit under GST:

- GST law provides for audit of taxpayers by a Chartered Accountant or Cost Accountant to
ensure compliance with the provisions of the law.
 Module No.5: Valuations of Goods and Services Under GST

2 Marks:

1. Give the Meaning of Consideration Under GST ?

"consideration" refers to the total monetary value paid or payable for the supply of goods or
services. It is a crucial element in determining the tax liability under the GST system. The GST is
calculated on the consideration received or to be received by the supplier in return for the supply
of goods or services.

2. What is Transaction Value ?

refers to the value of a taxable supply of goods or services for the purpose of calculating the GST
liability. It is a key element in determining the amount of tax payable on a transaction.

5/12 Marks:

1. Calculations of Transaction Value and Total GST Payable (Problems)