Assignment-1: BY: NIKHIL KUMAR (05814901718)

ASSIGNMENT- 1
Q-1.Explain the concept of GST. Discuss the constitutional provisions in relation to

GST.
Q-2.What do you mean by the term "Registration"? Explain the advantages of
taking registration in GST.
Q-3.Under GST supply includes all forms of supply of goods and services. Define
and explain the concept of goods and services.
Q-4.Give any 5 cases, where the benefit of threshold limit is not available and
such persons are required to obtain registration compulsory.
ANSWERS
A1. The goods and services tax (GST) is a value-added tax levied on most goods
and services sold for domestic consumption. The GST is paid by consumers, but it
is remitted to the government by the businesses selling the goods and services. The
goods and services tax (GST) is an indirect federal sales tax that is applied to the
cost of certain goods and services. The business adds the GST to the price of the
product, and a customer who buys the product pays the sales price inclusive of the
GST. The GST portion is collected by the business or seller and forwarded to the
government. It is also referred to as Value-Added Tax (VAT) in some countries.
A newly inserted article 246A in the Constitution shall provide for special provision
with respect to GST. According to the Bill, the following important clauses of the Bill
are worth noting:
1. Clause 246A
The Legislature of every State shall have power to make laws with respect to goods
and services tax imposed by the Union or by such State. Parliament will have
exclusive power to make laws with respect to goods and services tax where the
supply of goods, or of services, or both takes place in the course of inter-State trade
or commerce.
2. Clause 269A
 Goods and services tax on supplies in the course of inter-State trade or
commerce shall be levied and collected by the government of India and such tax
shall be apportioned between the Union and the States in the manner as may be
provided by Parliament by law on the recommendations of the Goods and
Services Tax Council.
BY: NIKHIL KUMAR ( 05814901718)

 Supply of goods or services, or both in the course of import into the territory of
India shall be deemed to be supply of goods or services, or both in the course of
inter-state trade or commerce.
 Parliament may, by law, formulate the principles for determining the place of
supply, and when a supply of goods or of services, or both takes place in the
course of inter-state trade or commerce.
3. Clause 279A
The President shall, within sixty days from the date of commencement of the
Constitution (One Hundred and Twenty-second Amendment) Act, 2014, by order,
constitute a Council to be called the Goods and Services Tax Council.
4. Clause 279A
The Goods and Services Tax Council shall make recommendations to the Union
and the States on-
1. the taxes, cess and surcharges levied by the Union, the States and the local
bodies which may be subsumed in the goods and services tax;
2. the goods and services that may be subjected to, or exempted from the goods
and services tax;
3. model Goods and Services Tax Laws, principles of levy, apportionment of
integrated Goods and Services Tax and the principles that govern the place of
supply;
4. the threshold limit of turnover below which goods and services may be
exempted from goods and services tax;
5. the rates including floor rates with bands of goods and services tax;
6. any special rate or rates for a specified period, to raise additional resources
during any natural calamity or disaster;
7. special provision with respect to the States of Arunachal Pradesh, Assam,
Jammu and Kashmir, Manipur; Meghalaya, Mizoram, Nagaland, Sikkim, Tripura,
Himachal Pradesh and Uttarakhand; and
A2. Administration under GST is depended upon the unique ID provided to each
service provider or, in certain cases, service receivers. Since GST is proposed to be
governed with minimal human intervention it is critical that each entity operating
within the GST ecosystem have a unique ID to allow for easy linking of transactions
with other entities or , as we shall soon note, transaction with or units within the
same entity. The presence of a unique ID allows for identification and accounting of
all transactions and facilitates easy credit and , where eligible, refunds of taxes paid
under the act.
In the GST Regime, businesses whose turnover exceeds Rs. 40 lakhs* (Rs 10 lakhs
for NE and hill states) is required to register as a normal taxable person. This
process of registration is called GST registration.

For certain businesses, registration under GST is mandatory. If the organization
carries on business without registering under GST, it will be an offence under GST
and heavy penalties will apply.
GST registration usually takes between 2-6 working days. We’ll help you to register
for GST in 3 easy steps.
*CBIC has notified the increase in threshold turnover from Rs 20 lakhs to Rs 40
lakhs. The notification will come into effect from 1st April 2019.
 ADVANTAGES OF GST REGISTERATION
1. Legally recognized as supplier of goods or services.
2. Proper accounting of taxes paid on the input goods or services which can be
utilized for payment of GST due on supply of goods or services or both by the
business.
3. Legally authorized to collect tax from his purchasers and pass on the credit of
the taxes paid on the goods or services supplied to purchasers or recipients.
4. Getting eligible to avail various other benefits and privileges under the GST
laws.
A3.
 Definition of Goods – Section 2(52) of GST Act
“Goods’’ means every kind of movable property other than money and securities
but includes actionable claims ,growing crops, grass and things attached to or
forming part of the land which are agreed to be severed before supply or under a
contract of supply.
The above is summarized as under:
Goods include:
 Every kind of movable property
 Actionable claims
 Growing crops, grass and things attached to or forming part of the land which
are agreed to be severed before supply or under a contract of supply.
A goods does not include:
 Money and
 Securities
Whether actionable claims liable to GST?
As per section 2(52) of the CGST/SGST Act actionable claims are to be considered
as goods. Schedule III read with Section 7 of the CGST/SGST Act lists the activities
or transactions which shall be treated neither as supply of goods nor supply of
services. The Schedule lists actionable claims other than lottery, betting and
gambling as one of such transactions. Thus only lottery, betting and gambling shall
be treated as supplies under the GST regime. All the other actionable claims
shall not be supplies and therefore GST is not applicable on it.
 Definition of Service – Section 2(102) of GST Act

“Services’’ : means anything other than goods, money and securities but includes
activities relating to the use of money or its conversion by cash or by any other
mode, from one form, currency or denomination, to another form, currency or
denomination for which a separate consideration is charged;
Explanation 1 Services include transactions in money but does not include money
and securities. Meaning thereby that if transaction is done without any separate
charge /consideration no service ;
Explanation 2 But transaction in money relating to the use of money or its
conversion by cash or by any other mode, from one form, currency or denomination,
to another form, currency or denomination for which a separate consideration is
charged then it is service .
A5. Threshold limit refers to the limit which allows a person to do
business without obtaining registration under GST.
The term of section 24, read with section 22, every supplier shall be liable
to be registered under GST Act in the state from where he makes a
taxable supply of goods and services, if his aggregate turnover is a
financial year exceeds Rs 20 Lakhs. However, in respect of special
category, the aforementioned threshold registration limit has been
reduced to Rs 10 Lakhs.
 Compulsory GST registration in absence of threshold limit benefits :-
1. Person making any inter-state taxable supply of goods & not liable to
registered for GST except, people with turnover less than Rs 20/10
Lakhs:
i. If the person is engaged in inter-state supply of homecraft goods .
ii. If a person is making inter-state supply of services.
iii. If a job worker is making inter-state supply of goods to registered
person.
2. Casual Taxable Person making taxable supply

i. As per, Section 24 CGST Act 2017 , a CTP is required to obtain
compulsory registration irrespective of the aggregate turnover in

the previous year, unless handicraft goods are being supplied and
don’t exceed Rs 20 lakhs in their value.
3. Person who are required to pay tax under Revers Charge have to take
compulsory registration as they have to take the registration to submit
term under reverse charge.
i. Section 24 doesn’t supress Section 23, so suppliers of goods &
services nor taxable in nature or wholly exempted from tax are not
liable to get registered.
4. Electronic commerce operator would require registration only when he

is required to collect tax at revenue under Section 52 of CGST Act.
i. E-commerce operators who supplies are not required to obtain
registration, provided, their aggregate turnover is less than Rs 20
lakhs per annum. This relation is not available in case of goods.
5. Person who makes taxable supply of goods or services, on behalf of

another taxable person, whether as an agent or otherwise, as per
Section 24 of CGST Act, 2017, have to set compulsory registered, any
kind of agent who is making taxable supply needs to set registered
under GST immediately.

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ASSIGNMENT- 1

Q-1.Explain the concept of GST. Discuss the constitutional provisions in relation to

BY: NIKHIL KUMAR ( 05814901718)

BY: NIKHIL KUMAR ( 05814901718)

 Definition of Service – Section 2(102) of GST Act

2. Casual Taxable Person making taxable supply

BY: NIKHIL KUMAR ( 05814901718)

4. Electronic commerce operator would require registration only when he

5. Person who makes taxable supply of goods or services, on behalf of

BY: NIKHIL KUMAR ( 05814901718)

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