Detailed Agenda Notes - 17th GSTC Meeting

Additional Agenda Item for the 17th GST Council Meeting
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Authorization of Banks for GST collection.

As per Section 2(14) of the CGST Act, “authorized bank” shall mean a bank or a branch
of a bank authorized by the Government to collect the tax or any other amount payable
under the Act.

At present 24 Banks (after merger of five Associate Banks with SBI) are authorized for
collection of Indirect taxes. As per the GST Payment process Report, only those banks
should be authorized to accept GST receipts who meet the minimum requirements given in
PARA 85 of the Report. On the basis of these minimum requirements, a Bank Authorization
Reference Model (BARM) was prepared by the Office of Pr.CCA CBEC Department of
Revenue containing the requirements in details. As per these requirements, the existing
authorized Banks are required to establish their IT integrations with GSTN and RBI and to
follow the pre-defined protocols to ensure better service delivery to Tax payer and
efficiency in remittance of funds to Central/State Government Account with RBI. Out of
the 13 parameters, seven critical parameters were identified namely (i)Protocol to ensure
CIN is generated only when money is actually credited in Government Account maintained
in Banks e-FPB. (ii)The bank has a system of consolidated debit of the tax payer account
and corresponding multiple credits in the 39 Government wise accounts. (iii) Approach
adopted by the Bank for handling single debit and multiple credit. (iv) The Centralized
application for the OTC payments has been put in place as required in BARM. (v) System
for validations of challans data in OTC Payments. (vi) Integration with GSTN for receipts
and acknowledgement and (vii) Bank-RBI Integration Completion Certificate obtained from
RBI and enclosed.

On the basis of these seven critical parameters the proposals of all 24 Banks have been
assessed and found to be completed and accordingly it is proposed to authorize these 24
Banks for the collection of all collections of GST in the entire country. The names of
these 24 banks are as follows:
Additional Agenda - Authorisation of Banks for GST Payment Agenda for 17th GSTCM
Additional Agenda Item for the 17th GST Council Meeting
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1 Allahabad Bank
2 Andhra Bank
3 Axis Bank
4 Bank of Baroda
5 Bank of India
6 Bank of Maharashtra
7 Canara Bank
8 Central Bank of India
9 Corporation Bank
10 Dena Bank
11 HDFC Bank
12 ICICI Bank
13 IDBI Bank
14 Indian Bank
15 Indian Overseas Bank
16 Oriental Bank of Commerce
17 Punjab and Sind Bank
18 Punjab National Bank
19 State Bank of India
20 Syndicate Bank
21 UCO Bank
22 Union Bank of India
23 United Bank of India
24 Vijaya Bank

The proposal from J&K Bank has not been received as it has been recently authorized for
Govt. business by RBI. However, the integration of J&K bank with RBI and GSTN is under
process along with the development of GST specific IT application. Therefore, it is also
proposed to authorize J&K Bank on provisional basis subject to final assessment and
approval by the Pr.CCA CBEC as has been done for other Banks. A committee has been
constituted by Revenue Secretary to look into the Bank wise preparedness in detail to ensure
that no inconvenience is caused to Tax payer and there is a synergy between GSTN,
Accounting authorities, RBI and Banks.
Additional Agenda - Authorisation of Banks for GST Payment Agenda for 17th GSTCM

Additional Agenda Item for the 17th GST Council Meeting
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Agenda Note: Power to be exercised under Sections 37, 38 and 39 of the Central Goods
and Services Tax Act, 2017
GST is to be rolled out from the appointed day i.e. 1st July, 2017. The architecture of GST is
built upon the foundation of Information Technology, of which furnishing of electronic returns by the
taxpayers is a key component. In the 15th Meeting, the Council was apprised by the GSTN that beta
version of the GST system was launched and run for 15 days to provide an opportunity to taxpayers to
get familiarized with GST applications, to receive feedback based on usability/issues faced, and to
utilize the feedback to provide superior user experience in filing returns. It was further informed that
the defects reported, while using the System, had either been resolved or were being resolved.
2. As the first round of beta testing of the GST system has been carried out by GSTN, the trade
and industry are seeking that the system should be open for some time for them to try out and test it to
get themselves familiarised and to get the assurance about its stability and robustness, a concern
which had also been expressed by Members of the Council. So looking at the paucity of time, it
appears that filing of the returns for a particular period from 1stJuly, 2017 may have to be extended so
that the taxpayers get more time for getting familiarized with the system. It is to be noted that only the
time period for filing of the return for a particular period beyond the due date for filing of return for
the month of July, 2017 and August, 2017 may be extended and not the requirement for filing the
return for that period.
3. The second proviso to sub-section (1) of Section 37 of the CGST Act, 2017, as recommended
by the Council, dealing with furnishing the details of outward supplies (GSTR-1) empowers the
Commissioner to issue a notification for extending the time limit for furnishing of details for such
class of taxable persons as may be specified therein. Similar provisions are incorporated in the first
proviso to sub-section (2) of Section 38 of the CGST Act, 2017 and sub-section (6) of Section 39 of
the CGST Act, 2017 dealing with furnishing the details of inward supplies (GSTR-2) and furnishing
the returns (GSTR-3) respectively. Similar provisions are contained in the respective SGST Act, 2017
also.
4. Further sub-rule (5) of Rule 3 of the Return Rules, as recommended by the Council, provides for
filing of an alternative return in GSTR-3B which can be mandated to enable filing of return and
payment of taxes in case the time limit for furnishing the details of outward supplies in GSTR-1 and
details of inward supplies in GSTR-2 has been extended.
5. Moreover, the first proviso to Rule 10 of the Return Rules also provides that the date of matching
would be extended in case last date for furnishing of GSTR-1 and GSTR-2 has been extended.

Additional Agenda - Return Filing Issues Agenda for 17th GSTCM
Additional Agenda Item for the 17th GST Council Meeting
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6. It is proposed that the Council may kindly be informed that, in view of exigencies stated above and
to give comfort and confidence to the taxpayers, the last date of furnishing the details of outward
supplies (GSTR-1) and inward supplies (GSTR-2) may be extended as per the proposal contained in
para 7 below. It may be mentioned that GSTR-1as well as GSTR-2 for July, 2017 and August, 2017
have to be furnished and what is being permitted is only some more time. The proposal also does not
dispense with the requirement of matching either. The tax authorities would keep pursuing people to
start filing their GSTR-1 from July, 2017 itself so that those who can, may do it early and not
overload the system in October, 2017. We would take up a drive for encouraging people to furnish
GSTR-1 and finalise GSTR-2 for July and August, 2017 well before the extended deadline.

7. The proposal for information of the Council is as follows: -
(i) The facility for furnishing of GSTR-1 for the outward supplies effected during the month of July,
2017 may be made available from 15th July, 2017. The last date for filing of GSTR-1 for the months
of July, 2017 and August, 2017, as required in sub-section (1) of Section 37 of CGST Act, 2017 shall
be 30th September, 2017, albeit without late fees and penalty. Further the proposed facility of
extension of the time period for filing of GSTR-1 may not be made available for certain class of
taxpayers, as notified by the Commissioner.
(ii) the last date for furnishing the details of inward supplies (GSTR-2), as required in sub-section (1)
of Section 38 of the CGST Act, 2017, effected during the months of July, 2017 and August, 2017
shall be 15th October, 2017;
(iii) the taxpayer would furnish the return in GSTR-3B in lieu of GSTR-3 as provided in sub-rule (5)
of rule 3 of the Return Rules for the months of July, 2017 and August, 2017 on or before the 20th
August, 2017 and 20th September, 2017 respectively.
(iv) Similar extension may be permitted in terms of the respective SGST Acts also.
8. The proposal for approval of the Council is that GST Implementation Committee may take
alternative decisions in respect of proposal mentioned in Para 7 (i) to (iv) above from time to time, as
and when required, looking at the objective of smooth implementation of GST.



Additional Agenda - Return Filing Issues Agenda for 17th GSTCM


Confidential






Agenda for
17th GST Council Meeting





18 June 2017




Detailed Agenda Notes - Agenda for 17th GSTCM
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F.No. 107/17th Meeting/GST Council/2017
GST Council Secretariat

Room No.275, North Block, New Delhi
Dated: 14 June 2017

Notice for the 17th Meeting of the GST Council on 18 June 2017
The undersigned is directed to refer to the subject cited above and to say that the 17th Meeting of the GST
Council will be held on 18 June 2017 at Hall No. 2-3, Vigyan Bhavan, New Delhi. The schedule of the
meeting is as follows:
• Sunday, 18 June 2017 : 1130 hours onwards
2. The agenda items of the Council meeting are enclosed.
3. In addition, an officers’ meeting will be held on Sunday, 18 June 2017 from 1000 - 1100 hours at the
same venue, Hall No. 2-3, Vigyan Bhavan, New Delhi.
4. Further, a joint meeting of the GST Implementation Committee and Standing Committee on IT will
be held on Sunday, 18 June 2017 after the GST Council meeting.
5. Please convey the invitation to the Hon’ble Members of the GST Council to attend the meeting.
- Sd -
(Dr. Hasmukh Adhia)
Secretary to the Govt. of India and ex-officio Secretary to the GST Council
Tel: 011 23092653

Copy to:
1. PS to the Hon’ble Minister of Finance, Government of India, North Block, New Delhi with the request to
brief Hon’ble Minister about the above said meeting.
2. PS to Hon’ble Minister of State (Finance), Government of India, North Block, New Delhi with the request
to brief Hon’ble Minister about the above said meeting.
3. The Chief Secretaries of all the State Governments, Delhi and Puducherry with the request to intimate the
Minister in charge of Finance/Taxation or any other Minister nominated by the State Government as a
Member of the GST Council about the above said meeting.
4. Chairperson, CBEC, North Block, New Delhi, as a permanent invitee to the proceedings of the Council.
5. Members of the GST Implementation Committee
6. Co-Convenors of the Standing Committee on IT (with the request to convey the invitation to other
members of the Committee)
7. Chairman, GST Network
Detailed Agenda Notes - Agenda for 17th GSTCM
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Agenda items for the 17th Meeting of the GST Council on 18 June 2017
1. Confirmation of the Minutes of the 16th GST Council Meeting held on 11 June 2017
2. Approval of draft GST Rules and related Forms for:
i. Advance Ruling
ii. Appeals and Revision
iii. Assessment and Audit
iv. E-Way Bill
v. Anti-profiteering
3. Fitment/adjustment of GST Rates on certain items
4. Any other agenda item with the permission of the Chairperson
5. Date of the next meeting of the GST Council


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TABLE OF CONTENTS

Agenda
No.
Agenda Item Page No.
1
Confirmation of the Minutes of the 16th GST Council Meeting held on 11
Jun 2017

5
2
Approval of draft GST Rules and related Forms for:
i. Advance Ruling
ii. Appeals and Revision
iii. Assessment and Audit
iv. E-Way Bill
v. Anti-profiteering

36
42
65
91
103
3
Fitment/adjustment of GST Rates on certain items
i. Applicability of increased turnover limit for Composition Levy to
Special Category States
ii. IGST on Shipping Vessels
iii. Lottery

107

108
111
4
Any other agenda item with the permission of the Chairperson
i. High Sea Sales
ii. Notifying Sections
iii. Exemption under Section 9(4) of the CGST Act, 2017
iv. Fund Settlement Rules

116
117
118
119

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Discussion on Agenda Items
Agenda Item 1: Confirmation of the Minutes of the 16th GST Council Meeting held on 11
June 2017
Draft Minutes of the 16th GST Council Meeting held on 11 June 2017

The sixteenth meeting of the GST Council (hereinafter referred to as ‘the Council’) was held on 11 June,
2017 in Vigyan Bhawan, New Delhi, under the Chairpersonship of the Hon’ble Union Finance Minister,
Shri Arun Jaitley. The list of the Hon’ble Members of the Council who attended the meeting is at
Annexure 1. The list of officers of the Centre, the States, the GST Council and the Goods and Services
Tax Network (GSTN) who attended the meeting is at Annexure 2.
2. The following agenda items were listed for discussion in the 16th Meeting of the Council:–
1. Confirmation of the Minutes of the 15th GST Council Meeting held on 3 June 2017
2. Approval of amendments to draft GST Rules (details to be informed subsequently)
3. Rate adjustments, if any, based on representations received from Trade and Industry
4. Any other agenda item with the permission of the Chairperson
5. Date of the next meeting of the GST Council
3.1. The Hon’ble Chairperson welcomed all the Hon’ble Members to the 16th Council Meeting.
Discussion on Agenda Items
Agenda Item 1: Confirmation of the Minutes of the 15th GST Council Meeting held on 3 June, 2017:

4. The Hon’ble Chairperson invited comments of the Hon’ble Members on the draft Minutes of the 15th
Meeting of the Council (hereinafter referred to as ‘Minutes’) held on 3 June, 2017 before its confirmation.
4.1.1. The Secretary informed that a written request had been received from the Commissioner of
Commercial Tax (CCT), Odisha, to replace the version of the Hon’ble Minister from Odisha recorded in
the following paragraphs of the Minutes:
(i) In paragraph 9.8.8, to replace the version recorded in the Minutes (‘the Hon’ble Minister from Odisha
suggested that handloom should be charged to Nil rate of tax…..that the products of handloom were used
by common people’) with the following version: ‘Handloom fabrics and handicraft goods were exempt
in Odisha. Livelihood of more than 3.5 lakh artisan families depended on it. Handloom products were not
only in demand outside the State, but were also used by the common people. He stated that he was in
favour of exempting handloom fabrics and sarees.’ The Council agreed to record this version in the
Minutes.
(ii) In paragraph 9.8.12, to replace the version recorded in the Minutes (‘the Hon’ble Minister from Odisha
supported this proposal and stated that tax on zari would affect the livelihood of artisans’) with the
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following version: ‘The Hon’ble Minister from Odisha supported this proposal and stated that tax on
handicrafts would affect the livelihood of artisans’. The Council agreed to record this version in the
Minutes.
(iii) In paragraph 9.9.2, to replace the version recorded in the Minutes (‘The Hon’ble Minister from Odisha
stated that his State was tendu leaf bearing State and suggested to keep the rate of tax at zero or 5% on
tendu leaves and 18% on bidi’) with the following version: ‘The Hon’ble Minister from Odisha stated
that the rate of tax on tendu leaf in Odisha was 5% and tax rate of Bidi was 10%. His State being a tendu
leaf bearing State, he suggested to keep the rate of tax at 5% on tendu leaves and 18% on bidi’. The
Council agreed to record this version in the Minutes.
(iv) In paragraph 18.5, to replace the version recorded in the Minutes (‘The Hon’ble Minister from Odisha
stated that the present system should continue till such period when GSTN created e-Way Bill system’)
with the following version: ‘The Hon’ble Minister from Odisha stated that in Odisha, waybills were
generated online and waybills were for inter-State movement of goods only and not for intra-State
movement of goods. However, the present system should continue till such period when GSTN created
e- waybill system.’ The Council agreed to record this version in the Minutes.
4.1.2. The Secretary informed that there was a typographical error in paragraph 10(i) of the Minutes and
a corrigendum was circulated in the Meeting today to replace the decision recorded therein (‘to put cereals,
pulses and flour put up in unit container and bearing a registered brand name in the exempt category
instead of the proposed rate of 5%’) with the following: ‘to put tax cereals, pulses and flour put up in unit
container and bearing a registered brand name in the exempt category at the rate of 5% instead of the
proposed rate of 5% keeping them in the exempt category’. The Council agreed to the proposed
replacement in paragraph 10(i) of the Minutes.
4.1.3. The Secretary stated that during the officers’ meeting held in the morning today, Shri Raghwendra
Kumar Singh, Commissioner, Commercial Taxes (CCT), Madhya Pradesh, had pointed out that in
paragraph 9.10.4. of the Minutes, the statement attributed to the Hon’ble Minister from Madhya Pradesh
regarding expressing a preference for taxing gold at the rate of 5% was actually made by the CCT, Madhya
Pradesh, and suggested to make a suitable modification in the paragraph to this effect. The Council agreed
to this suggestion.
4.1.4. The Hon’ble Minister from Punjab stated that in paragraph 4.4.1. with reference to the discussion
on licence fee for liquor in the GST regime, it was recorded that ‘the ACS, Haryana, stated that the
decision of the Hon’ble Chairperson was that for the transition phase, some decision would be taken so
that the States did not lose financially’. He observed that the Hon’ble Chairperson had also agreed to the
suggestion of the ACS, Haryana, and this should be recorded in the Minutes. The Council agreed to this
suggestion and to record the following: ‘The Hon’ble Chairperson observed that the officers of the Central
Government and the State Governments should sit together and take a view on the issue’.
5. In view of the above discussion, for Agenda item 1, the Council decided to adopt the Minutes of the
15th Meeting of the Council with the changes as recorded below: -
5.1. In paragraph 9.8.8., to replace the version of the Hon’ble Minister from Odisha with the following
version: ‘Handloom fabrics and handicraft goods were exempt in Odisha. Livelihood of more than 3.5
lakh artisan families depended on it. Handloom products were not only in demand outside the State, but
were also used by the common people. He stated that he was in favour of exempting handloom fabrics
and sarees.’
5.2. In paragraph 9.8.12, to replace the version of the Hon’ble Minister from Odisha with the following
version: ‘The Hon’ble Minister from Odisha supported this proposal and stated that tax on handicrafts
would affect the livelihood of artisans’.
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5.3. In paragraph 9.9.2, to replace the version of the Hon’ble Minister from Odisha with the following
version: ‘The Hon’ble Minister from Odisha stated that the rate of tax of tendu leaf in Odisha was 5% and
tax rate on Bidi was 10%. His State being a tendu leaf bearing State, he suggested to keep the rate of tax
at 5% on tendu leaves and 18% on bidi’.
5.4. In paragraph 18.5, to replace the version of the Hon’ble Minister from Odisha with the following
version: ‘The Hon’ble Minister from Odisha stated that in Odisha, waybills were generated online and
waybills were for inter-State movement of goods only and not for intra-State movement of goods.
However, the present system should continue till such period when GSTN created e-waybill system.’
5.5. To replace the text in paragraph 10(i) with the following: ‘to tax cereals, pulses and flour put up in
unit container and bearing a registered brand name at the rate of 5% instead of keeping them in the exempt
category’.
5.6. To suitably modify paragraph 9.10.4. to indicate that the statement attributed to the Hon’ble Minister
from Madhya Pradesh regarding expressing a preference for taxing gold at the rate of 5% was made by
the CCT, Madhya Pradesh.
5.7. To add the following in paragraph 4.4.1. after the version of ACS, Haryana: ‘The Hon’ble
Chairperson observed that the officers of the Central Government and the State Governments should sit
together and take a view on the issue.’
Agenda Item 2: Approval of amendments to draft GST Rules and related Forms (i) Accounts and
Records Rules; (ii) Accounts and Records Forms:
6.1. Introducing this Agenda item, the Secretary stated that the draft GST Rules on Accounts and Records
were put in the public domain for comments of the stakeholders. He stated that based on the comments
received, the Law Committee of Officers had suggested certain changes to the Rules. He added that two
additional changes were proposed during the meeting of officers of the Central Government and the State
Governments held on 11 June, 2017 and these were circulated in writing to the Hon’ble Members of the
Council just before the start of the Meeting. He invited Shri Upender Gupta, Commissioner (GST Policy
Wing), CBEC, to brief the Council about the changes proposed. The Commissioner, (GST Policy Wing),
CBEC, stated that four important changes had been proposed by the Law Committee and two changes
were proposed today during the officers’ meeting which were as follows:
(i) Sub-rule rule (2) of Rule 1 provided that accounts and records shall be maintained separately for each
activity like manufacturing, trading and provision of services. The trade had represented that this would
be very cumbersome and the relevant rule was proposed to be amended which would permit a taxpayer
to maintain a combined record for all his economic activities.
(ii) Sub-rule (5) of Rule 1 provided that a taxpayer shall maintain particulars of all the suppliers from
whom he received goods or to whom he supplied goods. Based on representations received, it was now
proposed to limit this requirement of record keeping only for transactions with registered persons.
(iii) Sub-rule (8) of Rule 1 provided that a log of all changes in registers, accounts and documents shall
be maintained but, taking into account the representations received, it was now proposed that log of
changes need not be maintained for those changes which were for correcting mistakes of clerical nature.
(iv) It was proposed to make an addition in sub-rule (16) of Rule 1 to provide that where accounts and
documents were maintained manually, these would be kept at every related place of business mentioned
in the certificate of registration and if these were maintained electronically, they shall be accessible at
every related place where these were maintained digitally.
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(v) The Law Committee of Officers had proposed to delete sub-rule (3) of Rule 2 which provided that a
registered person, would on demand, produce accounts of the audit trail and interlinkages, including the
source documents, whether paper or electronic, and the financial accounts, record layout, data dictionary
and explanation of codes used. However, during the meeting of officers of the Central Government and
the State Governments on 11 June, 2017, the consensus was that this provision should not be deleted and
should be kept in a modified form to facilitate access to documents of the taxpayers. The revised provision
is as follows: “Where the accounts and records are stored electronically by any registered person, he shall,
on demand, provide the details of such files, passwords of such files where necessary for access and any
information which is required for such access along with sample copy in print form of the information
stored in such files”.
(vi) During the meeting of officers of the Central Government and the State Governments on 11 June,
2017, it was also suggested to make an amendment in sub-rule (4) of Rule 3 to provide that any person
engaged in the business of transporting goods shall maintain record of goods transported, delivered and
goods stored in transit by him along with GSTIN of the registered consignor or consignee, for each of
his branches.
6.2. After discussion, the Council approved the Rules and related Forms on Accounts and Records
including the changes made therein.
7. For agenda item 2, the Council approved the GST Rules on Accounts and Records and the related
Form along with the amendments proposed by the Law Committee of Officers and during the officers’
meeting held just prior to the Council meeting on 11 June 2017 as enumerated at paragraph 6 above.

Agenda Item 3: Rate adjustments, if any, based on representations received from Trade and
Industry:

Discussion on GST rates for goods:

8.1. Introducing the above agenda item, the Secretary recalled that during the 15th Meeting of the Council
(held on 3 June, 2017), it was decided that all representations regarding reduction in rates were to be
submitted within a day or two of the conclusion of the 15th Council Meeting, and these were to be
considered by the Fitment Committee and its recommendations were to be placed before the Council in
its next Meeting. He informed that the Fitment Committee met on 7-8 June, 2017 and examined the
representations received from the Central Government and/or State Governments, subsequent to the
declaration of the GST rates as approved by the Council in its 14th Meeting (held in Srinagar on 18-19
May 2017). He informed that the Fitment Committee examined these representations with reference to
the present tax incidence [estimates based on present Central Excise duty/embedded Central Excise duty,
VAT rates/weighted average VAT rates {provided by the Fitment Committee members during the
meeting}, cascading on account of VAT on excise duty, CST, octroi, entry tax, etc.] and has recommended
reduction of tax rates in 66 cases. He further drew attention to the addendum to agenda item 3 circulated
on 10 June 2017 in which certain IGST exemptions and rate of tax on job work services related to printing
of books, journals and periodicals were proposed.
8.2. The Hon’ble Deputy Chief Minister of Delhi stated that before taking up discussion on individual
items, he wanted to place before the Council a general point relating to small scale industries. He stated
that in Delhi, 90% of units in sectors like footwear, toys, electrical fittings and plastic goods had a turnover
below Rs. 1.5 crore and due to Central Excise exemption, they paid a lower rate of tax than the present
rate slabs of 18% to 28% recommended by the Council. He stated that this would adversely affect the
‘Make in India’ campaign. He added that keeping this in mind, he would suggest certain changes in tax
rates during discussion on individual items. The Hon’ble Minister from Telangana stated that a large
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number of small and medium enterprises (SMEs) in his State had a turnover below Rs. 1.5 crore. He
stated that the marble industry was very big in his State, which was exempt from Central Excise duty up
to a turnover of Rs. 1.5 crore and it was now proposed to be taxed at the rate of 28%. He stated that there
were several cheap varieties of marble slabs costing between Rs. 10 and Rs. 15 per square feet and the
rate of tax for such goods should be lower.
8.3. The Hon’ble Minister from Chhattisgarh suggested to increase the turnover limit for availing
Composition scheme from the present Rs. 50 lakh to Rs. 1 crore and to reduce the rate of tax for the
manufacturing sector under the Composition scheme from 2% to 1%. The Hon’ble Deputy Chief Minister
of Delhi and the Hon’ble Minister from Punjab supported this suggestion and expressed that this would
help the SMEs. The Hon’ble Minister from Maharashtra suggested that the turnover limit for availing
Composition scheme for manufacturers and restaurants should be increased to Rs. 1 crore. The Hon’ble
Minister from Telangana supported this proposal. The Secretary stated that the Composition scheme
might not be attractive to relatively bigger units as they could not avail the input tax credit on their
purchases and their buyers could not get input tax credit on sales made by them. The Hon’ble Minister
from Chhattisgarh stated that the traders had the choice not to opt for the Composition scheme. The
Secretary invited comments from the officers as well. The Hon’ble Chairperson stated that discussion on
this subject should also cover the revenue aspect.
8.4. Shri R.K. Tiwari, Additional Chief Secretary (ACS), Uttar Pradesh, stated that his State had a large
number of SMEs falling within the annual turnover of Rs. 1 crore and if all of them opted for Composition
scheme, they would suffer a very large scale revenue loss to the tune of about Rs. 50,000 crore. The
Hon’ble Deputy Chief Minister of Gujarat stated that his State also had a very large number of SMEs. He
proposed to increase the turnover limit for Composition scheme to Rs. 75 lakh so that loss of revenue to
the Government was comparatively less and suggested to keep the rate of tax at 2%. Dr. P.D. Vaghela,
CCT, Gujarat, stated that originally, they had opposed the proposal to extend the benefit of Composition
scheme to manufacturers as this could lead to evasion of tax. He stated that some industries should not be
extended the benefit of Composition scheme as this could lead to windfall profit for them, particularly
where the rate of tax on inputs was Nil. He gave the example of the ice cream manufacturing units which
would procure milk at the Nil rate of tax and pay minimal duty on their final product. He further observed
that the rate of tax of 2% under the Composition scheme for manufacturers was too low. He also pointed
out that only three States extended the benefit of Composition scheme to manufacturers.

8.5. The Hon’ble Minister from Andhra Pradesh stated that SMEs in his State as well as in the country
as a whole were in doldrums and seeking concessions. He stated that GST should not have adverse impact
on SMEs and there should be a different treatment for them as the largest number of employment came
from this sector. He suggested to increase the turnover limit for Composition scheme to Rs.1 crore. The
Hon’ble Minister from Telangana stated that the small-scale industries would be adversely affected as no
Central Excise duty was presently charged on the units with a turnover upto Rs. 1.5 crore. The Secretary
stated that States were charging VAT on all units with turnover of more than Rs. 10 lakh and except for
three States, Composition scheme for manufacturers was to be extended for the first time in the other
States.
8.6. The Hon’ble Minister from Rajasthan stated that there was a mistake in calculation of total tax
incidence on granite and marble. He observed that marble was not a luxury item and its price ranged from
Rs. 15 per square feet to Rs. 1,500 per square feet and there were mostly small suppliers of marble. He
added that marble was a labour intensive sector which provided employment to lakhs of people and units
with turnover of less than Rs. 1.5 crore should be taxed at the rate of 18% instead of 28%. He added that
if tax rate on marble was kept very high, it would lead to large scale evasion of tax and there were also
chances of the consumer shifting from local marble to imported marble. The Hon’ble Minister from
Uttarakhand suggested to keep the turnover limit of Composition scheme at Rs. 1.5 crore and to reduce
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the rate of tax to 1% as otherwise the SME sector would collapse. The Hon’ble Chairperson enquired
regarding the revenue impact of this suggestion. The Hon’ble Minister from Uttarakhand stated that if the
rate was kept low, the turnover of these units would increase and more revenue would come to the State.
The Hon’ble Minister from West Bengal stated that there was a need to strike a balance between
safeguarding revenue for the States and to protecting the interest of SMEs. He expressed his support for
the proposal made by the Hon’ble Minister from Chhattisgarh. He observed that manufacturers with
turnover below Rs. 1.5 crore did not pay any Central Excise duty but units with turnover above Rs. 10
lakh were paying VAT, and hence there was justification to levy some tax on them. He suggested that the
turnover limit for Composition scheme could be kept at Rs. 75 lakh. He observed that if the scheme of
Composition was extended to units having annual ,turnover upto Rs. 1 crore, the rate of tax under the
Composition scheme could be tweaked but if the turnover limit for Composition was kept at Rs. 75 lakh,
then the present rate of tax could be maintained. He observed that it was important to safeguard the SME
sector as they had made an investment of Rs. 1,000 crore in this sector which gave employment to about
6,000 workers.
8.7. The Hon’ble Minister from Kerala stated that the turnover limit for Composition scheme should be
increased to Rs. 1 crore and the rate of tax under the Composition scheme could be increased for various
segments: for traders 2%, for manufacturers 3% and for restaurants 5% but have a differentiated rate of
tax between air-conditioned and non-air-conditioned restaurants, with the latter being taxed only at the
rate of 2%. The Hon’ble Chairperson observed that the principles enunciated by the Hon’ble Minister
from West Bengal were valid and there was merit in the suggestions made by the Hon’ble Deputy Chief
Minister of Delhi and the Hon’ble Minister from Chhattisgarh to safeguard the interest of SMEs. The
Hon’ble Minister from Telangana stated that, in his State, about 49,377 units had turnover between Rs.
20 lakh and Rs. 1.5 crore from which revenue came to only Rs. 565 crore. He suggested to keep the
turnover limit for availing Composition scheme for SMEs to Rs. 1.5 crore but to increase the rate of tax.
He observed that this would encourage local industries. The Hon’ble Minister from Jammu & Kashmir
stated that if the turnover limit for availing Composition scheme was kept at Rs. 1 crore or Rs. 1.5 crore,
in some States, almost 100% of units could fall in the Composition scheme. He observed that the
description of SMEs would differ from State to State and data was needed to analyse gains and losses to
different States. The Hon’ble Minister from Haryana agreed with the observations of the Hon’ble
Minister from Jammu & Kashmir and stated that there was a need to protect SMEs to generate
employment but it was equally important to arrive at a rational limit for availing Composition scheme.
He suggested that an officers’ committee could examine this issue further.
8.8. The Hon’ble Chief Minister of Puducherry stated that the impact of increasing the turnover threshold
for availing Composition scheme would need to be examined and to be placed before the Council. He
observed that if a dealer had a daily turnover of Rs. 15,000, he would cross the threshold of Rs. 20 lakh
and would start paying tax. He observed that 28% tax rate for hotels with room rent above Rs. 5,000 per
night would affect the business of hotels and suggested that hotels with room rent between Rs. 5,000 and
Rs. 10,000 per night should be charged at the rate of 18% and hotels with room rent above Rs. 10,000 per
night should be charged at the rate of 28%. The Principal Secretary, Telangana, stated that the main
problem was in calculating the incidence of tax rate. He informed that the granite industry was willing to
pay tax at the rate of 14.5% but for units with turnover below Rs. 1.5 crore, the tax rate of 28% was very
high. He suggested that to calculate the tax incidence for units with turnover below Rs. 1.5 crore, only the
tax incidence of VAT should be taken into account and as a general principle, such units should be charged
tax at one slab lower than the presently proposed rate. The Hon’ble Minister from Kerala stated that the
revenue of the consuming State should also be protected and the proposed reduction in the rate of tax
would adversely affect the revenue of the consuming States.
8.9. The CCT, Gujarat, stated that the scheme of Composition was discussed at length in the Officers’
Committee and the rate of 2% for manufacturers was fixed as a thumb rule, rather than after any scientific
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analysis. He pointed out that if all manufacturers got the benefit of the Composition scheme, then Gujarat
would lose about Rs. 150 crore revenue from ice cream manufacturers alone as their input, namely, milk
was exempt from tax whereas ice cream was taxed at the rate of 28%. He informed that his State had
worked out a GST rate for composition for different manufacturing sectors but after discussion, it was
felt that this would not be viable. He stated that revenue of the States of North-East would be hit very
hard if all manufacturers were allowed to come under the Composition scheme. The Secretary stated that
a negative list of industries that would not be extended the benefit of Composition scheme would be
prepared. The CCT, Gujarat, informed that they had already prepared such a list. The Hon’ble Deputy
Chief Minister of Gujarat suggested that it would be desirable to discuss first the negative list of
manufacturers under the Composition scheme before discussing the Composition rate so that revenue was
protected.
8.10. Shri Sanjeev Kaushal, ACS, Haryana, stated that the Composition scheme was presently available
to a very few manufacturers. They extended the benefit of Composition scheme to plywood manufacturers
at the rate of Rs. 9.7 lakh for one press and taking an approximate monthly turnover for a press to be Rs.
3 crore to Rs. 5 crore, the tax came to about 3% per month. He stated that the Composition scheme was
also allowed for brick kiln owners at the rate of about 2% to 3% per month. He stated that the
preponderance of SMEs was in those sectors which were reserved for small scale industries till 2006-07,
and suggested that the sectors with preponderance of SMEs could be listed and incidence of Central
Excise could be reduced by half and the combined incidence of tax could be worked out accordingly. The
ACS, Uttar Pradesh, stated that extending the Composition benefit to manufacturing units which were
presently paying VAT would bring down the effective rate of taxation from the present about 10% (VAT
rate 14.5% minus input tax credit roughly at the rate of 4%) to 2%. He also expressed an apprehension
that this gave an opportunity to the units to split their books of account. He further stated that if the
Composition limit was increased to Rs. 1 crore, their State would suffer a loss of revenue of about Rs.
7,000 to Rs. 10,000 crore. He suggested that if the turnover limit under the Composition scheme was
proposed to be increased to Rs. 1 crore, the Composition rate for manufacturing units should be fixed at
the rate ranging from 7% to 10% to make the rate revenue neutral.
8.11. The Hon’ble Deputy Chief Minister of Delhi pointed out that for manufacturers of goods like
electrical fittings, footwear and toys, there was strong competition from goods imported from China. Even
a slight increase in the rate of tax would make them uncompetitive vis-à-vis the imported goods leading
to closure of SMEs in Delhi which in turn would lead to loss of jobs and decline in consumption and
people might even move out of Delhi. The Hon’ble Deputy Chief Minister of Gujarat stated that imports
from China would also attract IGST, and therefore, they would not become cheaper. The Hon’ble
Chairperson enquired whether the proposal was to increase the Composition limit only for manufacturers
or also for traders and restaurants. The Hon’ble Minister from Punjab stated that the Composition limit
should be increased only for manufacturers and that manufacturers of marble, granite and air-conditioners
should be kept in the negative list. He also expressed a fear that units might create multiple entities by
splitting them amongst the family members. Shri V.K. Garg, Advisor (Financial Resources) to Chief
Minister, Punjab, stated that for products falling under the tax bracket of 28%, the Composition rate could
be kept at 5% to 6% and observed that the scheme of Composition would normally be availed by those
units which directly sold their products to consumers.
8.12. The Secretary invited Shri Prakash Kumar, Chief Executive Officer (CEO), Goods and Services
Tax Network (GSTN), to present the data available with GSTN on the Composition dealers. The CEO,
GSTN, stated that he had sought data on the Composition dealers from the States one year back and the
data was received from 10 States. He stated that as per the data, the Composition dealers as a percentage
of the total dealers and the threshold for composition dealers (in brackets) were as follows: Andhra
Pradesh – 36% (Rs. 50 lakh); West Bengal – 22% (Resellers - Up to Rs. 50 lakh and Works Contractors
- Unlimited; Karnataka – 8% (Hoteliers - Rs. 25 lakh and Contractors – No limit); Maharashtra – 4%
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(Restaurant, Caterers, Eating houses, etc/Second hand Motor Car Dealers – No turnover limit, Bakers –
First Rs. 50 lakh and Retailers – Previous Year turnover should be less than Rs. 50 lakh and Works
Contractors – No limit); Kerala – 12% (Rs. 60 lakh); Chhattisgarh – 17% (Rs. 60 lakh); Tamil Nadu –
7% (Rs. 50 lakh); Jharkhand – 2% (Rs. 50 lakh); Haryana – 4% (Ply board and Brick kiln – According to
capacity) and Odisha – 7% (Rs. 50 lakh).
8.13. Shri Udai Singh Kumawat, Joint Secretary (Revenue) stated that the Committee on Dual Control,
Threshold and Exemptions set up by the Empowered Committee had estimated in its report that the VAT
revenue from dealers with turnover of less than Rs. 1.5 crore was 7.2% of the total VAT revenue collected.
He further stated that the total VAT revenue for 2015-16 reported by the State Governments was around
Rs. 4.2 lakh crores. This would translate to Rs. 30,000 crore of revenue only from VAT from this category
of taxpayers. He further mentioned that if one calculated the tax incidence on this sector on a
Compounding basis pre-GST, a 30% value added estimation with 14.5% VAT rate of products made by
taxpayers of this sector (as had been mentioned by the Principal Secretary from Uttar Pradesh) translated
to 4.35%. If embedded Central Excise duty on the products were added to the tune of about 4%-5% even
on a conservative estimate, the tax incidence on this category of tax payers on a compounding basis pre-
GST came to 8%-9%. He further mentioned that against this, the Council had already approved a
Compounding rate of 2% on taxpayers with turnover below Rs. 50 lakh. Any further increase in threshold
for compounding along with the fact that compounding option encouraged taxpayers to split up their units,
as the Hon’ble Deputy Chief Minister of Gujarat mentioned, could have serious adverse revenue
implications.
8.14. The Hon’ble Minister from Chhattisgarh stated that in order to increase employment in the States,
10-year Sales Tax holiday for large industries was part of the industrial policy of almost all States. Under
the GST regime too, to encourage industrial investment, many States were planning to reimburse SGST
portion to the industries. He added that the SMEs had the largest employment potential and that the
Central Excise exemption to SMEs should, to the extent possible, be protected under the GST regime.
He, therefore, suggested to increase the turnover limit for Composition scheme to Rs. 1 crore and to
reduce the rate of Compounding tax to 1% and expressed that this would not lead to large scale revenue
loss. The Hon’ble Minister from Goa stated that States had been giving subsidies for water, power, etc.
to encourage industrial investment for employment generation. He added that SMEs should not be seen
only through the prism of revenue. He observed that SMEs had a big role to play in the success of ‘Make
in India’ policy. He supported the proposal to increase the threshold limit for Composition scheme and
observed that this might lead to gain for some States and loss for others but it would serve the larger
national purpose of encouraging ‘Make in India’ policy. The ACS, Tamil Nadu, stated that if the turnover
limit for Composition was increased to Rs. 75 lakh, the revenue loss would not be much. He stated that
keeping in view the fact that all inter-State suppliers would be outside the scheme of Composition and the
method of calculation of turnover was based on all-India aggregate turnover of persons having the same
Permanent Account Number (PAN), increasing the turnover limit for Composition scheme to Rs. 1 crore
annually would not affect the revenue much. He pointed out that the limit of Rs. 50 lakh turnover for
Composition scheme was set in 2006 and keeping in view the inflation, there was justification to increase
this turnover limit to Rs. 75 lakh or Rs. 1 crore. The Hon’ble Minister from Telangana suggested to make
a Committee of officers to assess the gains and losses. He supported the view of the Hon’ble Minister
from Goa that employment was a very important issue and for this, States were already giving subsidies
on power, water and land.
8.15. The Hon’ble Chairperson observed that many States were agreeable to increase the turnover
threshold to Rs. 1 crore per annum and enquired the views of the Hon’ble Members regarding what should
be the tax rate and whether it should be graded in respect of turnover up to Rs. 50 lakh and above Rs. 50
lakh to Rs. 1 crore. The Hon’ble Chief Minister of Puducherry suggested that data could be collected from
all States and also sounded a note of caution that increasing the turnover limit could lead to traders
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splitting their units to remain within the threshold limit. The Hon’ble Minister from West Bengal stated
that a turnover limit of Rs. 1 crore annually for Composition scheme appeared acceptable though as per
their rough calculation, it could lead to loss of revenue of about 3%-4%. He observed that the
Composition scheme was voluntary and many taxpayers in his State chose not to opt for this scheme. As
regards rates of tax, he suggested that traders could be taxed at the rate of 1%-2% and manufacturers at
the rate of 3%-4%. The Hon’ble Chairperson stated that rough calculation indicated that products in the
28% rate slab would, in terms of revenue, break even if the Composition rate was fixed at 5% and products
in the 18% rate slab would break even, if the Composition rate was fixed at 3%. The Hon’ble Minister
from West Bengal stated that this could be a sensible approach but it could lead to complications in the
tax regime.
8.16. The Hon’ble Chairperson observed that as rates were prescribed in the law (Section 10 of the CGST
Act and the SGST Acts), changing the rate of Composition would require amendment in the law which
was not possible at this stage. He, therefore, suggested to only increase the annual turnover threshold for
Composition from Rs. 50 lakh to Rs. 75 lakh and to keep the rates unchanged. The Secretary stated that
on a rough calculation, taking into account items in the 18% rate slab, on which there was no Central
Excise duty and 9% VAT, an annual turnover limit of Rs. 80 to Rs. 85 lakh for Composition would be
the break-even point and so he suggested to keep the annual turnover threshold at Rs. 75 lakh. The Hon’ble
Minister from Chhattisgarh reiterated to keep the Composition threshold as Rs. 1 crore annual turnover
and stated that raw materials would attract Nil rate of tax only where they came from mining sector
whereas in many cases, the raw materials would also attract tax at the rate of 28%. He stated that it would
not be possible to make an estimate of revenue calculation for increasing the Composition threshold. He
also suggested that there was no necessity to have a negative list of manufacturers for exclusion from the
Composition scheme. The Hon’ble Chairperson observed that the considerations of protection of revenue
and that of the interest of SMEs needed to be balanced and the revenue loss could be minimized by having
a negative list of manufacturers ineligible for the Composition scheme. The Hon’ble Minister from
Maharashtra and the Hon’ble Deputy Chief Minister of Gujarat also stated that there should be a negative
list of manufacturers who would not be allowed to avail the Composition scheme. The ACS, Uttar
Pradesh, stated that only smaller SMEs should be kept under the Composition scheme and the bigger ones
should come under the normal system of taxation with input tax credit and audit. He pointed out that
under the Composition scheme, the raw materials also went out of the audit trail. He observed that for
new units under the SME sector, a provision could be made to refund VAT and this would maintain the
sanctity of accounts. He observed that the Composition scheme was distortionary and it should not be
allowed for the larger units. The CCT, Gujarat, also observed that the Composition scheme was
distortionary and did not permit an audit trail. He suggested that States could give incentive to SMEs
through Direct Benefit Transfer (DBT) route. The Hon’ble Minister from West Bengal observed that if
the annual turnover limit for Composition was kept at Rs. 1 crore, then a negative list of manufacturing
sectors could be kept but if the turnover threshold was Rs. 75 lakh, the revenue loss would not be very
high and the Council could take a decision regarding keeping a negative list of manufacturing sectors.
The Hon’ble Minister from Telangana once again suggested to keep the turnover threshold for the
Composition scheme at Rs. 1 crore. The Hon’ble Chairperson suggested that since the rates under the
Composition scheme could not be changed, the annual turnover threshold could be kept at Rs. 75 lakh for
all taxpayers eligible for the scheme and to have a list of manufacturers who shall be ineligible for
Composition scheme. The Council agreed to these proposals.
Discussion on rate of tax for specific goods:
8.17. The Secretary stated that the Fitment Committee had reviewed 133 items and in several cases, it
had recalculated the weighted VAT rate after getting the VAT rates from the States. He said that due to
such recalculation, the Committee had suggested a lower incidence of tax on several goods. He added
that on some goods like school bags and rucksacks, a higher rate of 28% appeared to be odd and were
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proposed to be reduced to 18%. He stated that the rate reduction was suggested for 66 items and further
suggested that the Council should take up for discussion only those goods where Hon’ble Members had
some objection and the proposed rate for other goods could be taken as approved. With this understanding,
he invited comments of the Hon’ble Members on the list of products presented in the agenda notes for
agenda item 3 and the discussion on the same is recorded as below:-
(i) Pasta, Macaroni (Sl. No. 14 of the List): The Hon’ble Minister from Uttarakhand stated that pasta
and macaroni should not be taxed at the rate of 18% as they were made from maida and the procedure
was almost similar to that for sewiyan which was to be taxed at the rate of 5%. Shri Alok Shukla, Joint
Secretary (TRU-I), CBEC, stated that the present incidence of tax on pasta and macaroni was about 23%
and these goods were already recommended to be taxed at a lower rate of 18%. The Council agreed not
to change the already approved rate of tax for pasta and macaroni at the rate of 18%.
(ii) Cakes: The Hon’ble Minister from Goa stated that when mithai was to be taxed at the rate of 5%,
cakes should also be taxed at the rate of 5% as it was made at every home in Goa. Shri Anurag Goel,
CCT, Assam, stated that cakes made at home would be Nil rated and if the tax rate was reduced, the
benefit would go to the bakery industry which was not warranted. The Council agreed not to change the
already approved rate of tax of 18% for cakes.
(iii) Fishnet: The Hon’ble Minister from Goa stated that when tyre cord fabric was proposed to be taxed
at the rate of 5%, there was no justification to tax fishnet at the rate of 18%. He further stated that the tax
rate of 18% on fishnet would lead to increase in the cost of fish by Rs. 30 to Rs. 50 per kg. The Secretary
stated that the raw material for fishnet was polyester which was to be taxed at the rate of 18% and if
fishnet was taxed at 5%, large scale refund would arise due to duty inversion. The Hon’ble Minister from
Goa stated that they did not want input tax credit on fishnet nor refund due to duty inversion and simply
wanted the tax rate to be lowered from 18% to 5%. The Joint Secretary (TRU-I), CBEC, stated that
fishnet was taxable at the rate of 12% and not 18% and that value addition in the manufacture of fishnet
was such that the difference in the rate between the raw material and the finished goods could be absorbed
and the entire tax could be paid through input tax credit. He added that if tax rate was reduced to 5%,
fishnet would get imported in large quantities. The Hon’ble Chairperson stated that fishnet manufacturers
would get input tax credit on raw material which was also proposed to be taxed at the rate of 12% . The
Council agreed not to change the already approved rate of tax of 12% for fishnet.
(iv) Farsan (Sl. No. 24 of the List): The Hon’ble Minister from Maharashtra suggested to tax farsan at
the rate of 5% at par with the rate of tax for sweets. The Joint Secretary (TRU-I), CBEC, stated that the
present incidence of tax on farsan was more than 12%. The Council agreed not to change the already
approved rate of tax for farsan at the rate of 12%.
(v) Malt (Sl. No. 10 of the List): The Hon’ble Minister from Haryana pointed out that the present
incidence of tax on malt was about 29.58% whereas the proposed rate of tax under GST was 18% and
wanted to know why there was so much variation in the rate and why there was a departure from the
agreed principle of fitment of rates. The Secretary explained that all intermediate products were proposed
to be taxed at the rate of 18% and malt was also an intermediate product used for making drinks like
Horlicks and it was for this reason that it was kept in the 18% tax bracket. The Council agreed not to
change the already approved rate of tax for malt at the rate of 18%.
(vi) LT Switch Gears and Switch Boards and Electronic components (Sl. No. 114 & 115 of the List):
The Hon’ble Minister from Haryana pointed out that for these goods, the proposed 28% rate of tax was
higher than the current incidence of tax of about 21.89%. The CCT, Gujarat, stated that there were
different rates of VAT for switches for household use and industrial use due to which the current incidence
of tax was coming lower than the proposed tax rate and that the issue was discussed in the Fitment
Committee and it was felt that in order to avoid the scope for mis-declaration and duty evasion, a uniform
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rate of 28% could be kept on these goods. The Council agreed not to change the already approved rate of
tax for these goods at the rate of 28%.
(vii) Other Dry Fruits and Nuts (Sl. No. 8 of the List): The Hon’ble Minister from Uttar Pradesh stated
that since cashew nut was being taxed at the rate of 5%, singhada and makhana should not be taxed at the
rate of 12%. He further stated that as it was consumed by people during fasting, it was exempt from VAT
and proposed that it should also be exempted under GST. The Secretary raised a question whether these
goods would fall in the category of dry fruits and the ACS, Uttar Pradesh, clarified that they would fall in
this category. Joint Secretary (TRU-I), CBEC clarified that fresh singhada (chestnut) was classifiable
under HS 0802 and was at 0% rate of tax whereas dried singhada (chestnut) was to be taxed at the rate of
12%, as in the case of other dry fruits (other than cashew and raisins). Similarly, makhana fresh was at
0% whereas makhana dried was at 12%. After discussion, the Council agreed not to make any change in
the tax rate of 12% for these products.
(viii) Masala powder (Sl. No. 19 of the List): The Hon’ble Minister from Tamil Nadu stated that curry,
other spices and mixture of spice powder known as masala powder should be taxed at a lower rate of 5%
instead of the proposed rate of 18%. He stated that condiments, being mixed seasonings, could be taxed
at a different rate but pure spice mixture should be at a lower rate and the entry should also be clarified
suitably. The Joint Secretary (TRU-I), CBEC stated that the Supplementary Note (3) to Chapter 9 provides
that the addition of other substances to spices shall not affect their inclusion in spices provided the
resulting mixtures retain the essential character of spices and spices also include products commonly
known as “masalas” and it would be taxable at the rate of 5% under Chapter 9. The Council agreed to this
proposal.
(ix) Instant Coffee (Sl. No. 17 of the List): The Hon’ble Chief Minister of Puducherry observed that
28% rate of tax on instant coffee was too high. The Secretary explained that such coffee was sold only by
multinational brands and the benefit of lower tax rate might not get passed on to the consumers. He
further clarified that coffee powder other than instant coffee was to be taxed at a lower rate of 5%. The
Council agreed not to change the already approved rate of tax for instant coffee at the rate of 28%.
(x) Fruit and vegetable items and other food products; Pickles, Murabba, Chutney; Ketchup and
Sauces (Sl. No. 15, 16 & 18 of the List): The Hon’ble Minister from Uttarakhand stated that the tax on
these goods was proposed to be lowered from 18% to 12% but in order to encourage reprocessing of
agricultural products, they should be taxed at a still lower rate of 5%. He stated that fruits worth crores
were lost every year in India due to spoilage of vegetables and fruit. He further stated that in India, only
2% of agricultural and fruit products were reprocessed whereas it was done on a very large scale in
countries like USA and China. He added that VAT was only charged at the rate of 5%, and therefore, the
rate of tax could be brought down to 5% and this would encourage the growth of food processing industry
in India. The Secretary stated that the combined incidence of tax on fruit, vegetables, pickles, etc. was
about 13% and the proposed tax rate at the rate of 12% was reasonable. The Council agreed to change the
proposed rate of tax from 18% to 12% on these products.
(xi) Ayurvedic medicines (Sl. No. 33 of the List): Hon’ble Deputy Chief Minister of Delhi suggested
that ayurvedic medicines should be taxed at a lower rate of 5%. The Secretary stated that the current
incidence of tax on ayurvedic medicines was about 13%, and therefore, it would be reasonable to tax them
at 12%, as proposed in the agenda notes. The Council agreed to this proposal.
(xii) Granite Slabs (Sl. No. 29 of the List): The Hon’ble Minister from Telangana stated that presently
there was only 2% CST (Central Sales Tax) on granite slabs and levying 28% tax on them was too high.
He stated that lakhs of people were employed in this sector and the cost of slabs varied from Rs. 16 per
square feet to Rs. 80 per square feet. He suggested to reduce the rate of tax on granite slabs. He further
stated that the present incidence of tax on granite slabs was only about 16.32%, and therefore, it should
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be taxed at the rate of 12%. The Hon’ble Minister from Karnataka stated that it was ironic that on a luxury
consumption item like granite slab, there was no Central Excise duty. He added that there could be evasion
of tax if the rate of tax was kept at 28%. The Secretary stated that evasion was earlier possible due to
lower rate of CST at 2% but now all suppliers of this good supplying inter-State would be required to pay
tax at the rate of 28%. He added that taxpayers whose annual turnover was below Rs. 75 lakh could sell
these goods in the State at a lower Composition rate and the rest would pay tax at the rate of 28%. The
Hon’ble Minister from Telangana warned that the granite industry would be finished due to such high
incidence of tax. The Hon’ble Minister from West Bengal stated that if the rate was reduced, import of
granite slabs would go up. The Hon’ble Chairperson observed that other States were not agreeable to
reduce the rate of tax on this good. Joint Secretary (TRU-I), CBEC clarified that the issue was deliberated
during the 14th Council Meeting (held on 18-19 May, 2017) and after discussion, it was decided to
prescribe a uniform rate of 28% on marble slabs as well as granite slabs to avoid misclassification and
disputes. The Council agreed not to change the already approved rate of tax for granite slabs at 28%.
(xiii) Insulin (Sl. No. 34 of the List): The Hon’ble Minister from Jharkhand stated that rate of medicines
had been generally reduced and the rate of tax on insulin should also be reduced from the proposed rate
of 12%. The Hon’ble Deputy Chief Minister of Gujarat stated that a very large number of people used
insulin and it should be taxed at the rate of 5%. He added that since tax on dental wax was proposed to be
reduced from 28% to 18%, tax on insulin should also be reduced from 12% to 5%. The Hon’ble Ministers
from Maharashtra and West Bengal supported this proposal. The Secretary suggested that insulin
formulations of all types could be taxed at the rate of 5%. The Council agreed to tax insulin of all types
at the rate of 5%.
(xiv) Bio gas (Sl. No. 31 of the List): The Hon’ble Minister from Haryana suggested that bio gas should
be kept in the exempt category like e-vehicle. The Secretary stated that the rate of tax on bio gas plants
was kept at par with other renewable energy devices such as wind and solar energy and thus, a tax rate of
5% on bio gas would enable pass through of the input tax credit. The Hon’ble Minister from Haryana
stated that the input for bio gas was waste, and therefore, no input tax credit was involved. The Hon’ble
Minister from Uttar Pradesh suggested that machines operated on bio diesel should also be taxed at the
rate of 5%. The Secretary stated that all machines were in the tax slab of 18%. The Secretary stated that
for bio gas, tax was proposed to be lower at 5% instead of the earlier approved rate of 12% as the current
incidence of tax was about 8.6%. The Council agreed to the proposed rate of 5% for bio gas.
(xv) Marble slabs (Sl. No. 30 of the List): The Hon’ble Minister from Rajasthan stated that there was
no Central Excise duty on marble and granite for manufacturers up to an annual turnover of Rs. 1.5 crore
and that a tax rate of 28% would make the domestic products very costly. The Secretary stated that
imported marble would also be charged to IGST at the rate of 28% and in addition, Customs Duty was
also leviable. The Hon’ble Minister from Telangana stated that the current incidence of tax on granite
slabs was about 16.32% and enquired why it was proposed to be taxed at the rate of 28%. The Joint
Secretary (TRU-I), CBEC, stated that the rate of tax on granite and marble tiles was 28%, and therefore,
the intermediate products i.e. the granite and marble slabs were also kept in the tax bracket of 28%. He
further clarified that the issue was deliberated during the 14th Council Meeting (held on 18-19 May, 2017)
and after discussion, it was decided to prescribe a uniform tax rate of 28% on marble slabs as well as
granite slabs to avoid misclassification and disputes. The CCT, Assam, stated that the revenue for his
State would be affected if the tax rate was reduced from 28%. The Council agreed not to change the
already approved rate of tax for marble slabs and granite slabs at the rate of 28%.
(xvi) Mineral Water (Sl. No. 27 of the List): The Hon’ble Minister from Tamil Nadu stated that water
was sold in bottles, sachets and 20-litre cans and a lower rate of tax should be applied for sachets and 20-
litre cans. The Joint Secretary (TRU-I), CBEC, stated that the rate of tax on mineral water was 18% as
approved earlier by the Council and the same rate was proposed to be retained by the Fitment Committee
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and the rate shown against both columns as 28% was a typographical error. The Secretary stated that
water supplied in 20-litre cans could be taxed at a lower rate of 12%. The CCT, Gujarat, stated that States
had removed such classification and it was not desirable to reintroduce them. Shri Ritvik Pandey, CCT,
Karnataka supported the view of the CCT, Gujarat. He also expressed an apprehension that as cans could
be refilled, the taxpayer would declare even supplies of bottled water as supplies in 20-litre cans. The
Secretary stated that it would not be difficult to detect this kind of mis-declaration. The Hon’ble Deputy
Chief Minister of Delhi stated that there would be more scope for evasion of tax if more rate slabs were
kept. The ACS, Uttar Pradesh, supported the proposal to keep the same tax rate on mineral water supplied
in different forms. The Hon’ble Minister from Jharkhand observed that very few people drank mineral
water and suggested to increase the tax rate to 28%. After discussion, the Council agreed not to change
the already approved rate of tax for mineral water at 18%.
(xvii) Children’s picture, drawing or coloring books (Sl. No. 57 of the List): The Hon’ble Minister
from Jharkhand suggested that the tax on these items should be reduced from the proposed rate of 12%
to 5% as it was meant for use by children. The Hon’ble Minister from West Bengal stated that it would
be bad optics to tax these goods at the rate of 12% and the Council should not be seen to be taxing coloring
books for children at a high rate. The Secretary stated that if tax was lowered, the producers of these goods
would become eligible to claim refund on the input tax credit on paper leviable to tax at the rate of 12%.
The Hon’ble Deputy Chief Minister of Delhi stated that since books were kept at Nil rate, there was no
justification to levy tax on children’s picture, drawing or coloring books. He added that today young
parents from all strata of society gave such books to their children. The Secretary informed that even the
producers of books had requested to levy tax on them as they suffered an embedded tax of 8% to 9% but
this suggestion was not acted upon as levying tax on books would have caused public uproar as it was
connected to the freedom of speech. The Hon’ble Deputy Chief Minister of Delhi stated that text books
and picture books did not have much difference. The Hon’ble Deputy Chief Minister of Gujarat stated
that in his State, books were given free to about 1 crore children. After discussion, the Council agreed to
exempt tax on children’s picture, drawing or coloring books instead of the proposed tax rate of 12%.
(xviii) Spectacle Cases; Glasses for Corrective Spectacles and Flint Buttons (Sl. No. 49 & 67 of the
List): The Hon’ble Deputy Chief Minister of Delhi stated that manufacturers of spectacle cases were
small entrepreneurs and instead of taxing them at 28%, it would be desirable to tax them at the rate of
12%, particularly when glasses for corrective spectacles were proposed to be taxed at the rate of 12%.
The Joint Secretary (TRU-I), CBEC stated that the present incidence of tax on the spectacle cases was
around 29.58% and that the manufacturers would get credit of tax paid on inputs. He suggested that no
rate rationalization was required. The Council agreed not to change the rate of tax on spectacle cases
proposed at the rate of 28%.
(xix) Ply board (Particle board, fiber board) and Plywood (Sl. No. 53 of the List): The Hon’ble
Minister from Kerala stated that ply boards made of agro-waste products and other particle boards were
competitive products, and therefore, there should be no rate differential between them. The Secretary
stated that the particle boards were made of saw dust and if rate for both kinds of product was kept the
same, then there would not be much market for boards made out of bagasse. The Hon’ble Minister from
Kerala stated that saw dust was also virtually the same as an agro waste product. The Hon’ble Minister
from Uttarakhand stated that when timber and wood was being charged to tax at the rate of 18%, the tax
rate on ply board should be reconsidered and should be taxed at a lower rate of 18%. The Hon’ble
Chairperson stated that the present incidence of tax on this product was 29.58%. The Hon’ble Minister
from Uttarakhand stated that the rate of tax on ply board should be reduced so that the forest cover was
not cut for use in construction activities. The Hon’ble Minister from Haryana stated that ply board industry
supported agro-forestry programme of the Government and informed that poplar and eucalyptus were
new agriculture produce developed for industrial production of ply board, etc. He also observed that it
was a labour intensive industry; was presently in the Compounding scheme and did not have much input
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tax credit. He pointed out that if malt was to be charged at the rate of 18% on the consideration that it was
an intermediate product, then ply board should also be considered as an intermediate product used in
making houses, furniture, etc. The Hon’ble Minister from Punjab supported the view of the Hon’ble
Minister from Haryana. The Secretary stated that ply board was in the nature of finished goods. The
Hon’ble Minister from Kerala stated that rubber wood based board (at Sl. No. 51 of the List) should be
treated as plywood as they were competitive products. The Hon’ble Minister from Jammu & Kashmir
stated that if rate of tax on goods was to be based on goods of special importance in various States, then
this was akin to going back to the VAT regime. The Hon’ble Chairperson stated that if rate was to be
reduced on a large number of goods, then one would need to consider how to make up for the lost revenue.
The Hon’ble Minister from Haryana stated that taxing ply board at the rate of 18% would improve
compliance as a high rate of 28% would make it highly evasion prone commodity. The CCT, Assam
observed that while deciding the rates, the interest of the consuming States should also be kept in mind.
After discussion, the Council agreed to keep the tax rate on ply board (Particle board, fiber board) and
plywood at the proposed rate of 28%.
(xx) Laundry detergents and dish washing products (Sl. No. 38 of the List): The Hon’ble Minister
from Odisha stated that laundry detergent was an item of mass consumption and also played an important
role in Swacha Bharat campaign and suggested that it should be taxed at a lower rate. The Hon’ble
Minister from Karnataka stated that as soaps were being taxed at the rate of 18%, laundry detergents
should also be taxed at the rate of 18%. The Secretary stated that the volume of turnover of these products
was very high and reduction in rate of duty would lead to a loss of revenue of about Rs. 5,000-10,000
crore. He suggested that any lowering of rate could be considered after observing the revenue trend. The
Hon’ble Chairperson observed that the current incidence of tax on these products was about 29.58%. The
Council agreed to keep the rate of tax for these products at 28%.
(xxi) Kites (Sl. No. 56 of the List): The Hon’ble Minister from Jharkhand stated that there was no
justification to tax kites at the rate of 5% as it was not a mass consumption item and today kite flying was
limited to some specific festival. In this view, he suggested to tax it at a higher rate. The Hon’ble Deputy
Chief Minister of Gujarat stated that in his State, all sections of society, including the poor, flew kite
during the festival season and it was also manufactured by the poor artisans and so the proposed rate of
5% was justified. The Council agreed to keep the rate of tax for kite at 5%.
(xxii) Human hair, dressed, thinned, bleached or otherwise worked (Sl. No. 60 of the List): The
Hon’ble Minister from Jharkhand stated that poor persons did not use wigs and there was no justification
to keep the rate of tax on human hair as Nil and that this product should be taxed. The Joint Secretary
(TRU-I), CBEC stated that the products mentioned under this heading were intermediate products which
were subject to chemical treatment, combing, etc. before they were made into wigs. He informed that the
rate of tax on wigs was fixed at 28%. The Hon’ble Minister from West Bengal stated that very poor people
collected hair in its normal state, cleaned and bleached it and then sent it to Gujarat for making wigs which
was a high-end product. The Hon’ble Minister from Haryana raised a question as to why the rate of tax
on this product was proposed to be brought down from 28% to Nil on the recommendation of only one
State whereas Council was not agreeable to reduce the rate of tax on ply board which was demanded by
at least five States. The Secretary stated that the volume of sale of ply board was very high and there
would be substantial revenue loss if rate of tax on ply board was reduced. The Council agreed to keep the
rate of tax for human hair dressed, thinned, bleached or otherwise worked at Nil.
(xxiii) Bamboo based products (Sl. No. 50 of the List): The Hon’ble Minister from Kerala suggested
that rate of tax on bamboo based products should be reduced. The Joint Secretary (TRU-I), CBEC stated
that the present incidence of tax on these products was about 18.65%. After discussion, the Council agreed
to keep the rate of tax for bamboo based products at 18%.
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(xxiv) Coir mats, matting and floor covering (Sl. No. 58 of the List): The Hon’ble Minister from Kerala
suggested that the products coming from handloom industry should be exempted and the other categories
of coir mats, etc. should be taxed at the rate of 5%. The Secretary stated that handloom was made across
various sectors and it was a very big item in the textile industry. He added that it was very difficult to
distinguish between textiles made from handloom and power loom, and therefore, all were proposed to
be taxed at same rate. He stated that the same logic applied for coir mats etc. The Council agreed to keep
the rate of tax for coir mats etc. at 5%.
(xxv) Agarbatti (Sl. No. 37 of the List): The Hon’ble Minister from Karnataka stated that they had earlier
suggested that agarbatti should be taxed at a lower rate but it was not considered and the tax rate was
kept at 12% and now it was suddenly reduced to 5%. He stated that he was happy at this reduction in rate
but wanted to bring the position of his State on record.
(xxvi) Fly Ash Bricks (Sl. No. 61 of the List): The Hon’ble Minister from Telangana stated that the rate
of tax on fly ash bricks should be reduced to 5% instead of the presently proposed rate of 12% as a lot of
fly ash was produced as waste material in the large number of thermal power stations located in his State
and these thermal power stations had to spend money to dispose of fly ash. The Secretary stated that the
Fitment Committee had recommended a tax rate of 18% which had already been reduced to 12% during
the 14th Council Meeting (held on 18-19 May, 2017) and requested not to reopen this issue. The Hon’ble
Chairperson stated that there was no strong justification to further reduce the tax rate on fly ash bricks.
The Council agreed to keep the rate of tax for fly ash brick, along with fly ash blocks at 12%.
(xxvii) Electric Conductors not exceeding 1000 V; Electric Wires and Cables Industrial (Sl. No. 105,
106 and 109 of the List): The Hon’ble Minister from Bihar suggested that the rate of tax on electric
conductors and electric wires and cables for industrial use should be reduced from the presently proposed
rate of 28% as these goods were used for village electrification and increase in price of these goods would
cause higher financial burden to the States. The Secretary stated that the rate of tax on these goods was
fixed on the basis of the present incidence which was in the range of around 29.5% to 26.9%. The Council
agreed to keep the rate of tax for electric conductors and electric wires and cables for industrial use at the
rate of 28%.
(xxviii) Tractor Components (Engines; Tyres and Tubes; Transaxles and parts thereof, Gear box
and parts thereof and Hydraulics) (Sl. No. 75, 76 and 77 of the List): The Hon’ble Minister from
Haryana stated that when tractors were to be taxed at the rate of 12%, it was not justifiable to tax parts
and components of tractors at the rate of 18% and 28%. He observed that a lot of repair activities took
place for tractors and their spare parts were easily distinguishable and were only used in tractors. The
Joint Secretary (TRU-I), CBEC, stated that tractor parts that were distinguishable as exclusively being
used in tractors were proposed to be taxed at the rate of 18% by taking a carve out in Chapter heading
4011 (tyres and tubes) and in Chapter heading 8708 (parts and accessories of motor vehicles) and other
parts, including engines, were proposed to be taxed at the rate of 28% in order to avoid misclassification
and duty evasion. The Hon’ble Chief Minister of Puducherry stated that when the rate of tax on fixed
speed diesel engines (Sl. No.74 of the List) was reduced from 28% to 12%, there was no justification to
levy tax on tractor engines at the rate of 28%. The Secretary clarified that for the sake of parity, the rate
of tax on submersible pumps and fixed speed diesel engines of up to 15HP was kept at 12%. He further
pointed out that tractor engines would get full input tax credit and would be eligible for refund of input
tax credit because the final goods, namely, tractors were charged to tax at the rate of 12%. After further
discussion, the Council agreed not to further reduce the rate of tax on these goods.
(xxix) Phul-jhadoo (Sl. No. 130 of the List): The Hon’ble Deputy Chief Minister of Delhi stated that
even plastic jhadoo should be kept at Nil rate of tax instead of being taxed at 5%. The Secretary stated
that other than phul-jhadoo, there would be input tax credit for other types of jhadoo, and therefore, they
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were proposed to be taxed at the rate of 5% to avoid embedding of tax in the final product. The Council
agreed to keep Nil rate of tax for phul bahari jhadoo and 5% for other types of jhadoo.
(xxx) Rough precious and semi-precious stones (Sl. No. 68 of the List): The Hon’ble Minister from
Rajasthan stated that these should be taxed at Nil rate instead of the proposed rate of 0.25% because these
were not that precious in nature and all of them were exported. The Secretary stated that a very low rate
of 0.25% was proposed on these goods as it was only meant to establish an audit trail. The Council agreed
to keep the proposed rate of tax at 0.25% for rough precious and semi-precious stones.
(xxxi) Bamboo furniture (Sl. No. 127 of the List): The Hon’ble Minister from Kerala stated that the
proposed 28% rate of tax on bamboo furniture was prohibitively high and this would affect the producers
of North-Eastern States. The Hon’ble Minister from Maharashtra stated that the Government of India had
been encouraging bamboo products and the rate of 28% was too high. He added that China had developed
bamboo furniture on a large scale and India should also encourage the same. The Hon’ble Chairperson
suggested that the rate of tax on bamboo furniture could be brought down to 18% from 28%. The Council
agreed to this suggestion.
(xxxii) Hybrid cars: The Hon’ble Minister from Karnataka stated that due to imposition of 15%
Compensation Cess on large hybrid cars, the rate of tax under GST would become higher than the present
incidence of tax on hybrid cars. He stated that this could not be the intention of the Council and it was not
fair to penalize an environment friendly good. The Secretary stated that a detailed note on costing of
hybrid cars would be shared with him. He added that fuel efficiency of hybrid cars was 20%-25% more
than normal cars and this was incentive enough for the consumers to pay a higher price inclusive of a
higher tax. He added that the study had indicated that even when duty was reduced, the car manufacturers
did not pass the benefit of the same to the consumers. The Hon’ble Minister from Karnataka reiterated
that in addition to the cost of fitting extra equipment, there would be an additional cost for these cars due
to imposition of 15% Compensation Cess, which was not desirable for an environment-friendly product.
The Hon’ble Minister from Kerala stated that he did not support taxing an environment-friendly product
at a high rate. The Hon’ble Minister from Goa stated that 15% Compensation Cess should not be imposed
on environment-friendly car. The Hon’ble Chairperson stated that the note on hybrid cars should be
circulated by the Secretariat to all the Hon’ble Members of the Council after which, if need be, it could
be discussed during the next meeting of the Council.
(xxxiii) Molasses: The Hon’ble Minister from Karnataka stated that they had concerns on the rate of tax
on molasses and invited the CCT, Karnataka, to explain the issue. The CCT, Karnataka, stated that under
the VAT regime, the tax paid on molasses was set off against the excise duty on clearance of alcoholic
liquor for human consumption. In the GST regime, as alcoholic liquor for human consumption was out
of GST, credit could not be taken for the tax paid on molasses. The Secretary stated that this kind of
cascading would be an issue for all commodities which were not being subsumed in GST.
(xxxiv) Textiles: The Hon’ble Minister from Punjab stated that they had sent in writing that the tax rate
for man-made fibre should be 18%, for yarn 12% and for cloth 5%. The Secretary stated that man-made
fibre and man-made yarn were to be taxed at the rate of 18%. He stated that on fabric, 5% tax would help
in the flow of credit and no tax would need to be paid in cash though refund of the accumulated credit
was not allowed. The Hon’ble Minister from Punjab stated that fabric was being taxed at the rate of 5%
but tax on job workers’ charges would be 18%. He suggested to reduce the rate of tax on job work to 5%
since no tax refund was being allowed. The Advisor (Financial Resources) to Chief Minister, Punjab
stated that small job workers, who bought yarn and made cloth, would be wiped out as no refund was
being allowed on credit overflow whereas the bigger manufacturers who bought fibre and made yarn and
fabric in their own units would not suffer any disadvantage. The Hon’ble Minister from Rajasthan stated
that there should be fibre neutrality for textile industry so that there was lesser accumulation of input tax
credit for smaller units, in ratio of integrated textile units. He added that accumulation of input tax credit
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would make all the difference and would put the small units at a disadvantage. The Advisor to Chief
Minister, Punjab stated that this distortion could be addressed by charging tax on fibre at the rate of 18%,
on yarn at the rate of 12% and on garments at the rate of 5%. The Secretary stated that Agenda Item No.
3 also included a proposal to levy 5% tax on job work services in relation to Textile yarns (other than
man-made fibre/filament) and textile fabrics instead of the present rate of 18%. After discussion, the
Council decided not to change the rates for man-made fibre and yarn.
(xxxv) Cullet and other waste and scrap of glass; glass in the mass: The CCT, Madhya Pradesh, stated
that the rate of tax on these products should be reduced from 18% to 5% as presently, alcohol industry
mostly used recycled bottles, which gave employment to a large number of rag pickers. He added that
this also helped to reduce pollution which could be caused due to piling of scrap bottles in the
environment, if they were not reused. He added that the present rate of VAT on this item varied from 0%
to 5%. After discussion, the Council decided not to change the rate of tax on these goods.
(xxxvi) IGST Exemptions: The Secretary stated the certain IGST exemptions were proposed to be
continued/introduced due to reasons like bilateral commitments between India and Pakistan/Bangladesh
for regulation of bus services (notification 4/99-Customs dated 08.01.1999); technical exemption for
temporary import/re-import (notification 40/2015-Cus dated 21.07.2015; 9/2012-Cus dated 09.03.2012);
and declaring inter-State movement of any mode of conveyance for carrying goods or passengers or both
or for repairs and maintenance as neither a supply of goods nor a supply of service. The Council approved
these proposals.
9. For agenda item 3, the Council approved the rates of GST on supply of goods as presented in the
agenda notes with the following modifications:-
(i) For Composition scheme, to increase the annual turnover threshold from Rs. 50 lakh to Rs. 75 lakh for
eligible taxpayers and to have a list of manufacturers who shall be ineligible for Composition scheme.
However, no clear decision was taken regarding the applicability of this decision to the Special Category
States;
(ii) To tax insulin formulations of all types at the rate of 5% instead of the proposed rates of 12%/5%;
(iii) to exempt tax on children’s picture, drawing or coloring books instead of the proposed tax rate of
12%;
(iv) To tax bamboo furniture at the rate of 18% instead of the proposed rate of 28%;
(v) Approved the exemption from IGST on certain imports, namely, bilateral commitments between India
and Pakistan/Bangladesh for regulation of bus services; technical exemption for temporary import/re-
import; and to declare inter-State movement of any mode of conveyance for carrying goods or passengers
or both or for repairs and maintenance as neither a supply of goods nor a supply of services.
Discussion on GST rates of tax for services:
10. Presenting the agenda item regarding rates for services, the Secretary stated that the Fitment
Committee of Officers in its meeting held on 8th June, 2017 at New Delhi had considered various
proposals in respect of exemptions and rates of tax relating to services covering the following issues: (i)
Proposals for exemption from tax; (ii) Tax rate on job work services provided in Textile, Diamond
processing and jewellery sector and printing of books, journals and periodicals (Chapter heading 4901,
4902 of HSN); (iii) Tax proposals on Legal Services; (iv) Tax proposals on Sponsorship Services; (v) tax
rate on admission to cinema theatres. He took up discussion on each of these issues separately.

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Proposals for exemption from tax:
10.1. The Secretary stated that the Fitment Committee had recommended exemption from GST on four
different categories of services. He stated that the first proposal was a recommendation to exempt from
tax the Insurance services provided under Mukhya Mantri Vyapari Durghatna Beema Yojana. The ACS,
Uttar Pradesh informed that traders were issued Mukhya Mantri Vyapari Durghatna Beema Yojana for
an amount of Rs. 5 lakh and the Government paid the entire premium and that it should be exempted from
tax. The Council agreed to the proposal.
10.2. The Secretary stated that the second proposal on exemption related to services provided to
Government, a local authority or a Governmental authority by way of any activity in relation to any
function entrusted to a Panchayat under Article 243G of the Constitution or to any function entrusted to
a Municipality under Article 243W of the Constitution. He stated that in the Officers meeting held in the
morning, it had been suggested that only supply of pure service contract provided to Government, a local
authority or a Governmental authority by way of any activity in relation to any function entrusted to a
Panchayat under Article 243G of the Constitution or any function entrusted to a Municipality under
Article 243W of the Constitution may be exempted. After discussion, the Council agreed to the proposal.
10.3. The Secretary stated that the third proposal on exemption related to services provided to the
Government under any insurance scheme for which total premium was paid by the Government. He
informed that the recommendation of the Fitment Committee was to exempt services provided to the
Government under any insurance scheme provided 100% premium was paid by the Central Government
or the State Government. The ACS, Uttar Pradesh recalled that during the Officers’ meeting held today
in the morning, he had stated that under some of the Government of India schemes, even if part premium
was paid by the Government, Service Tax on the same was exempted. The Secretary stated that where
100% premium was paid by the Government, the exemption from tax already stood approved by the
Council. However, if there were other schemes where Government paid part premium and if a State
Government wanted exemption from tax, it should be brought before the Council for approval. Secretary
also added that since insurance schemes where 100% premium was paid by the Government have been
decided to be exempted, there would be no need to separately exempt Mukhya Mantri Vyapari Durghatna
Beema Yojana of Uttar Pradesh. The Council approved the proposal.
10.4. The Secretary informed that the fourth proposal on exemption related to services provided to the
Government under any training programme for which total expenditure was borne by the Government.
He informed that the recommendation of the Fitment Committee was to exempt services provided to the
Government under any training programme provided hundred percent expenditure for training
programme is borne by the Central Government or the State Government. After discussion, the Council
approved the proposal.
GST Rate on job work services provided in the sectors of Textile; Diamond processing and
Jewellery; and Printing of books, journals and periodicals
10.5. The Secretary stated that the appropriate rate of tax on job work services provided in the sectors of
textiles, diamond cutting and polishing and gold jewellery and printing of books, journals and periodicals
were examined by the Fitment Committee in its meeting held on 8th June, 2017. The Committee noted
that the Council had decided the rate of tax on textile fabrics at 5%, and on cut and polished diamonds
and gold jewellery at 3%, but various job work services provided in these sectors would attract tax at the
standard rate of 18%. The Committee felt that this could create tax inversion and consequent input tax
credit accumulation in these sectors. It would also create a tax disadvantage for manufacturers who
outsourced intermediate processes to job workers vis-a-vis those manufacturers who carried out all the
processes in house. This would discourage outsourcing and would be against the interest of a large number
of small job workers in these sectors. He recalled that in the 14th Meeting of the Council (held on 18-19
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May 2017), it was decided to withdraw the exemption in respect of job-work services relating to textiles
and cut and polished diamonds and gold jewellery and as a result, these job-work services would attract
the standard rate of 18%.

10.5.1. The Secretary informed that to resolve this issue, the Fitment Committee had recommended that
job work services in relation to (a) textile yarns (other than manmade fibre/filament) and textile fabrics
and (b) cut and polished diamonds; precious and semi- precious stones, or plain and studded jewellery of
gold and other precious metals, falling under chapter 71 of the HS Code, could be taxed at the rate of 5%.
He explained that tax on job-work service charge was with reference to job charges only while tax on
supply of goods was with reference to the full value of goods supplied.

10.9.2. The Secretary informed that an additional agenda note had been circulated pointing out similar
difficulties for job work services in relation to printing of books, journals and periodicals. He explained
that the tax rate on supply of newspapers, journals, periodicals and printed books (including braille books)
was Nil and the rate on selling of space for advertisements in print media was at 5%. He recalled that
keeping in view the fact that sale of space for advertisements in newspapers would attract tax at the rate
of 5%, the Council had decided that job work services in relation to printing of newspapers would attract
tax at the rate of 5%. However, job work services in relation to printing of books, journals and periodicals
would attract the tax rate of 18% as against the currently applicable Nil rate of Service Tax. He recalled
that the Council in its 14th Meeting (held on 18-19 May 2017) had decided to withdraw the exemption in
respect of job-work services relating to printing and as a result, these job-work services would attract the
standard rate of 18%. He observed that this could create tax inversion and consequent input tax credit
accumulation in case of journals and periodicals and additional cost in case of books. This would also
create a tax disadvantage for publishers of books, journals and periodicals who outsourced printing to job
workers vis-a-vis those publishers who carried out all processes in house. This would discourage
outsourcing and would be against the interest of job workers in these sectors. He added that this would
also create disparity between job workers/printers who printed newspapers and those who printed books,
journals and periodicals. In view of this, it had been decided in the officers meeting that like job work
services in relation to printing of newspapers, job work services in relation to printing of books (including
braille books), journals and periodicals, could also be taxed at the rate of 5%. He requested that the
Council may approve this recommendation.

10.9.3. The Hon’ble Minister from West Bengal stated that he supported the proposed tax rate on job
work for textile; diamond processing and jewellery; and printing of books, journals and periodicals. He
suggested that a similar rate of tax at 5% should also be prescribed for job work on raw hide and tanned
hide. He stated that presently, the rate of tax on such job work was 18% whereas the rate of tax on finished
leather was 12% and on the same analogy, this would lead to accumulation of input tax credit. The Council
approved this suggestion.

Legal Services
10.10. The Secretary explained that the Fitment Committee had proposed to tax the services provided by
partnership firm of advocates and LLPs (Limited Liability Partnership) under forward charge. He stated
that this would help them utilise their input tax credit. However, it was proposed to exempt individual
advocates (including senior advocates) from obtaining registration under CGST/SGST Act [section 23
(2) of the CGST Act].
10.10.1. Explaining the rationale for the proposal, he stated that services provided by (i) an individual
advocate or a partnership firm of advocates to another advocate or partnership firm of advocates or (ii) an
individual advocate or a partnership firm of advocates to any person other than business entity were
exempt from tax under GST regime. Services provided by an individual advocate or firm of advocates by
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way of legal services were under reverse charge for payment of tax. He further explained that a partnership
firm did not include an LLP, but a firm of advocates was said to include LLP. Therefore, an individual
advocate providing services to LLP would be taxable under reverse charge in the GST regime and legal
services provided by an LLP to a business entity would also be liable to tax under reverse charge. He
stated that some of the law firms had asked for putting tax liability for them in forward charge instead of
reverse charge. He added that in this proposal, individual advocates are proposed to be exempted from
registration under GST so that they did not face compliance burden and the liability was cast on business
entity on reverse charge basis for GST compliance.
10.10.2. The Secretary informed that this issue was discussed during the Officers’ meeting held today in
the morning and it was felt that status quo should be maintained and tax should be paid on reverse charge
basis. The Council decided not to approve the proposal to tax the services provided by partnership firms
of advocates and LLPs under forward charge and to maintain status quo of charging tax under reverse
charge. The Council approved that individual advocates (including senior advocates) shall be exempt
from registration requirement but decided to maintain status quo in respect of mode of taxation of legal
services by partnership firm of advocates and LLP.
Sponsorship Services
10.11. The Secretary explained that under this agenda item, it was proposed to tax the sponsorship services
provided by body corporate [as defined in section 2 (11) of Companies Act 2013] under forward charge
as this would help them utilise their input tax credit. He stated that the Fitment Committee had proposed
to exempt individual sponsorship service providers (including players) from obtaining registration under
CGST/SGST Act [section 23 (2) of the CGST Act]. He stated that the justification for exemption from
registration for individuals providing sponsorship service was that they would face no compliance burden
and the same would be cast on business.
10.11.1. The Secretary further informed that during the Officers’ meeting held today in the morning,
similar concerns were raised on this proposal as in respect of the law firms and it was felt that tax on
sponsorship services provided by body corporates should not be allowed under forward charge basis and
it should continue to be under reverse charge. The Council approved this proposal. Council approved the
proposal to exempt individual sponsorship service providers (including players) from registration but
decided to maintain status quo in respect of mode of taxation of sponsorship services.
GST Rate on admission to Cinema Theatres
10.12. The Secretary informed that the Fitment Committee could not reach a consensus on the rate of tax
on admission to cinema theatres; It had presented in the agenda note, the view points of the different
States. Gujarat wanted the rate of tax on admission to cinema theatres to be reviewed and to be reduced
from 28% to 18%, so that the local bodies were also able to tax the same. West Bengal wanted a lower
rate of tax for regional films or no tax below a certain threshold, say Rs 100 per ticket for regional films.
West Bengal had informed that presently Bengali films attracted lower rate of entertainment tax, and their
representative was of the view that a lower rate was required to support and promote the regional film
industry. Karnataka stated that they had issued a Government Order that no cinema theatre including
multiplexes would charge more than Rs. 200 per ticket for a regional film. Rajasthan and Kerala supported
the rate of tax at 28% (as approved by the Council) for admission to cinema theatres for all films. They
did not want a carve-out for regional films as it would be distortionary. Haryana wanted to continue with
the tax rate of 28% for admission to cinema theatres. Uttar Pradesh did not support a lower rate for
regional films and stated that if a lower rate was provided for films in regional language of the States, the
benefit should also be extended to Hindi films screened in Uttar Pradesh as Hindi was the regional
language in their State.

10.12.1. During the deliberations of the Fitment Committee, the officers of the Central Government had
explained that the weighted average all-India incidence of entertainment tax rates on admission to cinema
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theatres was about 30.8%. Further, revenue to be protected worked out to about Rs. 4,500 crore per year
(based on 2015-16 data of entertainment tax of the Department of Revenue). Moreover, as Entry 62 of
List II had been replaced with an entry that enables the local bodies to levy entertainment tax, it was
decided that compensation cess may not be levied on admission to cinema theatres. It was also pointed
out that regional films enjoyed a lower tax rate only in the Sate concerned. The States did not levy a lower
rate of entertainment tax on all regional films but only films in their language. As the country was going
in for One India-One Tax under GST, it might not be possible to have a lower rate in different States for
different regional films. It would be better if the States reimbursed the regional film industry or the cinema
theatres screening regional films in any manner that would best promote regional films.

10.12.2. The Hon’ble Minister from West Bengal stated that almost 90% of the States had Nil rate of tax
on regional cinema and not to have a lower rate of tax on regional cinema would tantamount to killing
regional diversity. The Hon’ble Minister from Andhra Pradesh stated that there should be difference
between the rate of tax for national films and regional films. He suggested that the rate of tax for regional
films should be Nil. The Hon’ble Minister from Kerala suggested that tax should be imposed on all cinema
tickets. The Hon’ble Minister from Tamil Nadu stated that films made in the local language of the State
should be subject to a lower rate of tax. He suggested that if the rate of tax on all types of films was kept
at 28% and then local bodies also imposed additional tax on the films, it would amount to double taxation
and would put a very heavy burden on the public. He suggested that the tax rate on films should be kept
at 12%. The Hon’ble Minister from Telangana suggested to keep the rate of tax at 12% so that local bodies
could impose additional tax and get some revenue. The Hon’ble Minister from Karnataka stated that
regional language cinema was a sign of cultural diversity and it should be encouraged. The Hon’ble
Chairperson stated that the rate of entertainment tax across the States varied from 20% to 110% and the
weighted all-India average rate of entertainment tax was about 31%. He observed that several States
granted tax exemption to regional films and it was the only item under GST where local bodies could also
impose tax. He observed that States could give refund of SGST for regional language films as each State
would have different regional language. The Hon’ble Chief Minister of Puducherry stated that States did
not have adequate resources to provide reimbursement. The Hon’ble Minister from Uttar Pradesh opposed
the suggestion of exempting regional cinema from tax and stated that this would lead to loss of revenue
for every State. The Hon’ble Deputy Chief Minister of Delhi stated that the Government as well as the
society supported some kinds of cinema and theatre, and this should be encouraged through imposition
of lower rate of tax. The Hon’ble Chief Minister of Puducherry stated that there was still some difference
in the film viewing habits between rural and urban areas/population. The Hon’ble Minister from Kerala
stated that he had discussed this issue with a few film organisations and they had expressed willingness
to pay tax at the rate of 28% as they would be eligible for input tax credit. He proposed that for supporting
regional cinema, the States could resort to Direct Benefit Transfer scheme.

10.12.3. The Hon'ble Minister from West Bengal stated that during discussion on CSD (Canteen Stores
Department) in the 15th Meeting of the Council (held on 3 June 2017), it was decided that the Central
Government and the State Governments would equally share the burden of refunding the tax to CSD. He
suggested that the same approach should be adopted in the case of regional films. The Hon’ble Minister
from Karnataka supported this suggestion. The Hon'ble Chairperson suggested that there could be two
rates of entertainment tax - one 28% normal rate and the second 18% for tickets sold below a certain
value. The Hon'ble Minister from West Bengal suggested that the ticket value for 18% tax rate could be
Rs. 200. The Secretary suggested that the ticket rate could be Rs. 100. The Hon’ble Deputy Chief Minister
of Delhi stated that no cinema in Delhi would be covered under the exemption scheme if the ticket value
was kept at Rs. 100. The Hon'ble Minister from Maharashtra suggested that the rate of tax on admission
to cinema theatres should be kept at 18% so that there was room for local bodies to levy tax over and
above this rate. He added that a service charge of 10% was also being charged by every State for cleaning
the theatres. The Hon'ble Chairperson stated that normal ticket for cinema theatres, particularly
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multiplexes, was Rs.400 to Rs.500 per head. The Hon'ble Minister from Karnataka stated that differential
rate of tax on cinema theatre based on the ticket price would not serve the purpose of the vernacular
language. The Principal Secretary, Telangana, stated that the rate of 28% was optically very high and
suggested to keep the rate at 18%. He stated that this would also enable local bodies to levy additional
tax.

10.12.4. The Hon’ble Chairperson stated that in order to encourage cinema as a means of entertainment
for middle class, it would be desirable to keep a lesser rate of tax for some types of cinema whereas others
could be charged tax at the rate of 28%. He suggested to charge tax at a lower rate for tickets sold below
Rs. 100. The Hon'ble Minister from Kerala stated that the tax imposed at the level of the producer and the
distributor would be 18%, and if tax on the final product was 12%, then the question was as to who would
bear this extra 6%. He suggested that the minimum rate of tax should be 18%. The Secretary stated that
the ticket rate in multiplexes was never less than Rs. 100. The Hon'ble Minister from Kerala reiterated
that tax on cinema tickets should not be less than 18% even for tickets sold at a price below Rs. 100. The
Hon'ble Ministers from Haryana and Andhra Pradesh supported this proposal. The Hon'ble Minister from
Maharashtra reiterated his reservation and suggested that the rate of tax on admission to cinema theatre
should be 18%. After further discussion, the Council agreed that the rate of tax on admission to cinema
theatres shall be 28% with the exception that the rate of tax shall be 18% if the price of the ticket for
admission to cinema theatre was Rs. 100 or less.

11. For agenda item 2, in respect of rate of tax on supply of services, the Council approved the following:
11.1. To exempt from tax, supply of pure services provided to Government, a local authority or a
Governmental authority by way of any activity in relation to any function entrusted to a Panchayat under
Article 243G of the Constitution or any function entrusted to a Municipality under Article 243W of the
Constitution;
11.2. To exempt from tax, services provided to the Government under any insurance scheme provided
hundred percent premium was paid by the Central Government or the State Government and this would
also cover the Mukhya Mantri Vyapari Durghatna Beema Yojana of Uttar Pradesh;
11.3. If there were insurance schemes where Government paid part premium and if any Government
wanted exemption from tax, it shall be brought before the Council for approval;
11.4. To exempt services provided to the Government under any training programme provided hundred
percent expenditure for training programme is borne by the Central Government or the State Government;
11.5. To tax job work services in relation to the following services at the rate of 5%: (a) textile yarns
(other than manmade fibre/filament) and textile fabrics; (b) cut and polished diamonds; precious and semi-
precious stones, or plain and studded jewellery of gold and other precious metals; (c) printing of books
(including braille books), journals and periodicals; (d) raw hide and tanned hide;
11.6. To exempt individual advocates (including senior advocates) from obtaining registration under
CGST/SGST Act [Section 23 (2) of the CGST Act] and to continue with the status quo in respect of mode
of taxation of legal services by partnership firm of advocates and LLPs;
11.7. To exempt individuals providing sponsorship service from registration under the GST regime and
to continue with the status quo in respect of mode of taxation of sponsorship services;
11.8. To tax admission to cinema theatres at the rate of 28% with the exception that the rate of tax shall
be 18% if the price of the ticket for admission to cinema theatre was Rs. 100 or less.
Agenda Item 4: Any other agenda item with the permission of the Chairperson:

12. Introducing this agenda item, the Secretary stated that with the permission of the Chairperson, the
following two additional agenda items had been placed before the Council: (i) Notification of certain
sections of the GST Acts; (ii) Amendment in Rule 19 of the Registration Rules for additional method of
authentication. He took up discussion on these two agenda items.
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(i) Notification of certain sections of the GST Acts
12.1. The Secretary recalled that in its 15th Meeting (held on 3 June 2017), the Council had approved to
notify with effect from 19 June 2017, the Sections of the CGST Act (as also the SGST Acts in the States
where the SGST Acts were enacted) containing provisions relating to registration and composition levy.
He stated that some more provisions of the CGST and the SGST Acts needed to be notified. Section 2 of
the CGST Act, 2017 and the IGST (Integrated Goods and Services Tax) Act 2017 contained definitions
of various terms used in the respective Acts and since some of these defined terms were used in Sections
relating to registration and composition levy, these would also need to be notified with effect from 19
June, 2017. Similarly, Section 14 of the IGST Act, which provides for the registration of the supplier of
online information and database access or retrieval services under the Simplified Registration Scheme,
was required to be notified so that such suppliers could be allowed to take registration. He further stated
that during its 14th Meeting (held on 18-19 May 2017), the Council had approved the issuance of a
notification under Section 146 of the CGST Act to the effect that www.gst.gov.in shall be the Common
Goods and Services Tax Electronic Portal for facilitating conduct of different business processes.
Therefore, it was required that section 146 of the CGST Act should be notified. He further added that
during the 14th and 15th Meeting of the Council, nine GST Rules namely, registration; composition levy;
payment; refund; return; input tax credit; tax invoice; valuation; and transition were approved. Section
164 of the CGST Act and Section 22 of the IGST Act provided for power to the Government to make
rules, on the recommendations of the Council, to carry out the provisions of the respective Acts. In order
to notify the above mentioned nine Rules, in particular Rules on Registration and Composition levy, it
was essential to notify Section 164 and Section 22 of the CGST Act and the IGST Act respectively.
12.1.1. The Secretary further stated that Section 15 of the CGST Act related to valuation provisions.
Section 16 to 21 of the CGST Act related to Input Tax Credit provisions. Section 31 to 34 of the CGST
Act related to invoice provisions. Section 37 to 48 of the CGST Act relates to return provisions. Section
49 to 50 of the CGST Act relates to payment provisions. Section 54 to 58 of the CGST Act relates to
refund provisions. Section 140 to 142 of the CGST Act and Section 21 of the IGST Act related to
transition provisions. In order to notify the above-mentioned Rules (Sections related to Registration and
Composition levy have been already approved), it was essential that these Sections should be notified.
Similarly, Sections 22 to 30 of the CGST Act contained provisions for registration of taxpayers under
GST. In terms of section 22 (1) of the CGST Act, every supplier of goods or services crossing a specified
threshold of aggregate turnover was required to get registered. Section 9 (3) of the CGST Act and Section
5 (3) of the IGST Act empowered the Government to notify categories of supply of goods or services or
both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or
both. In the 14th Meeting of the Council (held on 18-19 May 2017), list of services on which reverse
charge liability would be created under GST was approved by the GST Council. In some cases, the
liability under the Act had been fully cast upon the recipient of supply (100% reverse charge). In terms
of Section 9 (3) and Section 5 (3) of the CGST Act and IGST Act respectively, though the supplies were
taxable but the liability of payment of tax and compliance with the law had been shifted upon the recipient.
Therefore, suppliers, whose supplies were taxable under 100% reverse charge basis, were required to be
exempted from registration. Sub-section (2) of section 23 of the CGST Act provided that the Government,
on the recommendations of the Council, by notification, specify the category of persons who may be
exempted from obtaining registration.
12.1.2 In view of the above, the Secretary proposed that the Council may approve the following:
i. notifying Section 2 of the CGST Act and Section 2 of the IGST Act from 19 June, 2017;
ii. notifying Section 14 of the IGST Act from 19 June, 2017;
iii. notifying Section 146 of the CGST Act with effect from 19 June, 2017;
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iv. notifying Section 164 of the CGST Act and Section 22 of the IGST Act with effect from 19
June, 2017;
v. notifying Section 15 (Valuation), Sections 16-21 (Input Tax Credit), Sections 31-34 (Invoice),
Sections 37-48 (Returns), Sections 49-50 (Payment), Sections 54-58 (Refund) and Sections 140-
142 (Transition) with effect from appointed date; and
vi. that the suppliers whose supplies are taxable under 100% reverse charge basis may be
exempted, using powers under sub-section (2) of section 23, from obtaining registration;
vii. that those States which had enacted their SGST Acts could also notify the same Sections.
12.1.3. The Secretary explained that this agenda item proposed to notify all those Sections where Rules
were approved so that the relevant Rules could be notified. He suggested that as Rules on Accounts and
Records had been approved, Sections 35 and 36 relating to accounts and records could also now be added
to the list of Sections to be notified from the appointed date. The Council approved the proposal to notify
various Sections of the CGST Act contained in the agenda notes as also Sections 35 and 36 of the CGST
Act. The Council also approved that the States that had enacted their SGST Acts could also notify the
same Sections.
(ii) Amendment in Rule 19 of the Registration Rules for additional method of authentication
12.2. Introducing this agenda item, the Secretary stated that the Council had approved the GST
Registration Rules in its 14th Meeting (held on 18-19 May, 2017). He stated that Rule 19 of the Rules
provided for three modes of authentication for filing applications, including reply, if any, to the notices,
returns including the details of outward and inward supplies, appeals or any other document required to
be submitted under the GST Rules. Presently, the modes of authentication provided in Rule 19 of the GST
Registration Rules were: (i) with digital signature certificate; (ii) with e-signature; (iii) verification
through aadhaar based electronic verification code. He stated that Aadhaar had not yet been implemented
in Assam due to illegal immigration problem. The Hon'ble Supreme Court has directed to first update the
National Register of Citizens (NRC) and after the publication of final NRC list, the Aadhaar
implementation was feasible. Presently, the process of NRC updation was going on. Therefore, the
taxpayers in Assam could submit the enrolment application only with Digital Signature Certificate (DSC)
which was costly (approximately Rs. 2500, valid for a period ranging from one year to three years) and
cumbersome with several documentary requirements. The companies giving one-time e-signature were
limited in number and their quality of service was uneven. The taxpayers in other States were able to
migrate with Aadhaar based EVC which was free of cost. He stated that it was reported that this had
effectively prevented the small and medium dealers of Assam from migrating to GST from the existing
tax regime. Similar problem was being faced in the State of Meghalaya where Aadhaar had not yet been
implemented. He stated that keeping in view the problems faced by Assam and Meghalaya, it was
proposed to provide another alternative for authentication in Rule 19 of the GST Registration Rules,
namely, authentication based on bank account of the taxpayer and that a suitable text in this regard was
presented, in Rule 19, namely “through electronic verification service provided by banks based on net-
banking or any other mode of verification provided by bank.”

12.2.1. The Secretary further informed that during the meeting of the officers of the Central Government
and the State Governments held on 11 June, 2017, a view was expressed that only those methods of
authentication be mentioned in the Rules which were mentioned in the Information Technology Act 2000
and all other means of verification could be notified by the Central Board of Excise Customs (CBEC).
The Council agreed to this proposal.

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13. In respect of agenda item 4, the Council approved the following:
13.1. To notify Sections 2, 146 and 164 of the CGST Act, 2017 with effect from 19 June 2017 and the
States that had enacted their SGST Acts could also notify the same Sections with effect from 19 June
2017;
13.2. To notify Sections 2, 14 and 22 of the IGST Act, 2017 from 19 June 2017;
13.3. To notify Sections 15, 16-21, 31-34, 35, 36, 37-48, 49, 50, 54-58, 140-142 of the CGST Act, 2017
and of the SGST Acts with effect from the appointed date;
13.4. Suppliers whose supplies are taxable under 100% reverse charge basis shall be exempted from
obtaining registration by exercising powers under sub-section (2) of Section 23 of the CGST Act and the
SGST Acts;
13.5. To amend Rule 19 of Registration Rules and retain only those methods of authentication as
mentioned in the Information Technology Act 2000 and all other means of verification to be notified by
the Central Board of Excise Customs (CBEC).
Other Issues
14. The Hon'ble Minister from West Bengal stated that there was a front-page news in today’s edition of
the Times of India that Delhi traders were not ready for GST implementation and that there would be
serious problems if GST was implemented from 1 July, 2017 as many tasks were still to be completed.
He stated that States were in a comfortable situation as they were assured of compensation for five years
at a fixed annual growth rate of 14% but it should be considered at the national level and the deadline for
GST implementation should be extended by one month. The Hon'ble Chairperson stated that whenever
new ideas came, there would always be some people who would not be ready for implementation and this
would be true even if implementation was extended to September, 2017. He further observed that when
a new system was introduced, there was bound to be some glitches irrespective of the date when it was
implemented. He stated that the need was to start the implementation and to be ready to address the
problems that might arise The Hon'ble Minister from West Bengal stated that the date for implementation
should be reviewed objectively in the next Meeting of the Council. The Hon’ble Chief Minister of
Puducherry stated that after the GSTN website was opened on 1 June, 2017, the dealers were finding it
difficult to access it. He added that it was also a problem to get the digital signature certificate. He
requested that the technical issues should be resolved.
15. The Hon’ble Deputy Chief Minister of Delhi stated that about six or seven States had not yet passed
the SGST Act and this could potentially create problems in GST roll out. The Hon'ble Chairperson stated
that all States which had not yet passed the SGST Act had indicated tentative dates by when they were
likely to pass their SGST Acts.
Agenda Item 5: Date of the next meeting of the GST Council:
16. The Hon’ble Chairperson suggested that the Council could meet again on next Sunday, 18 June, 2017
in New Delhi to take up remaining issues for discussion. The Council agreed to this suggestion.
17. The meeting ended with a vote of thanks to the Chair.
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Annexure – 1
List of Ministers who attended the 16th GST Council Meeting on 11 June 2017
S No State/Centre Name of the Minister Charge
1 Govt. of India Shri Arun Jaitley Finance Minister
2 Govt. of India Shri Santosh Kumar Gangwar Minister of State (Finance)
3 Puducherry Shri V. Narayanasamy Chief Minister
4 Delhi Shri Manish Sisodia Deputy Chief Minister
5 Gujarat Shri Nitinbhai Patel Deputy Chief Minister
6 Andhra Pradesh
Shri Yanamala
RamaKrishnudu
Minister - Finance, Planning, Commercial
Taxes & Legislative Affairs
7 Bihar Shri Bijendra Prasad Yadav Minister - Commercial Taxes & Energy
8 Chhattisgarh Shri Amar Agrawal Finance Minister
9 Goa Shri Mauvin Godinho Minister - Panchayat
10 Haryana Captain Abhimanyu Minister - Excise & Taxation
11 Jammu & Kashmir Dr. Haseeb Drabu Finance Minister
12 Jharkhand Shri C.P. Singh
Minister - Urban Development, Housing &
Transport
13 Karnataka Shri Krishna Byregowda Minister - Agriculture
14 Kerala Dr. Thomas Isaac Finance Minister
15 Maharashtra Shri Sudhir Mungantiwar Finance Minister
- Maharashtra Shri Deepak Kesarkar Minister of State (Finance)
16 Mizoram Shri Lalsawta Minister - Taxation
17 Odisha Shri Shashi Bhusan Behera Finance Minister
18 Punjab Shri Manpreet Singh Badal Finance Minister
19 Rajasthan Shri Rajpal Singh Shekhawat Minister, Industries
20 Tamil Nadu Shri D. Jayakumar
Minister - Fisheries, Finance, Personnel &
Admin. Reforms
21 Telangana Shri Etela Rajender Finance Minister
22 Uttar Pradesh Shri Rajesh Agrawal Finance Minister
23 Uttarakhand Shri Prakash Pant Finance Minister
24 West Bengal Dr. Amit Mitra Finance Minister

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Annexure – 2
List of Officials who attended the 16th GST Council Meeting on 11 June 2017
S No State/Centre Name of the Officer Charge
1 Govt. of India Dr. Hasmukh Adhia Revenue Secretary
2 Govt. of India Ms. Vanaja N. Sarna Chairman, CBEC
3 Govt. of India Shri Mahender Singh Member (GST), CBEC
4 Govt. of India Shri R.K. Mahajan Member (Budget), CBEC
5 Govt. of India Shri P.K. Jain Chief Commissioner, (AR), CESTAT, CBEC
6 Govt. of India Shri B.N. Sharma Additional Secretary, Dept. of Revenue
7 Govt. of India Shri P.K. Mohanty Advisor (GST), CBEC
8 Govt. of India Shri P.K. Shrivastava Joint Secretary, Ministry of Home Affairs
9 Govt. of India Shri Alok Shukla Joint Secretary (TRU), Dept. of Revenue
10 Govt. of India Shri Upender Gupta Commissioner (GST), CBEC
11 Govt. of India Shri Udai Singh Kumawat Joint Secretary, Dept. of Revenue
12 Govt. of India Shri Amitabh Kumar Joint Secretary (TRU), Dept. of Revenue
13 Govt. of India Shri Manish Kumar Sinha Commissioner, CBEC
14 Govt. of India Shri G.D. Lohani Commissioner, CBEC
15 Govt. of India Shri Ranjit Kumar Commissioner, CBEC
16 Govt. of India Shri D.S.Malik ADG, Press, Ministry of Finance
17 Govt. of India Shri Hemant Jain OSD to MoS (Finance)
18 Govt. of India Shri Manu Tentiwal PS to MoS (Finance)
19 Govt. of India Shri S.K. Rai Director (UT), Ministry of Home Affairs
20 Govt. of India Shri G.G. Pai Director, TRU
21 Govt. of India Shri Reyaz Ahmed Director, TRU
22 Govt. of India Shri Somesh Chander Director, TRU
23 Govt. of India Ms. Aarti Saxena Deputy Secretary, Dept. of Revenue
24 Govt. of India Ms. Himani Bhayana Joint Commissioner, GST Policy Wing
25 Govt. of India Shri Promod Kumar OSD, TRU
26 Govt. of India Shri Paras Sankhla OSD to FM
27 Govt. of India Shri Ravneet Singh Khurana Deputy Commissioner, CBEC Policy Wing
28 Govt. of India Shri Siddharth Jain Assistant Commissioner, GST Policy
29 Govt. of India Ms. Rachna Technical Officer (TRU)
30 Govt. of India Shri Hemant Singh Office Assistant, PIB
31 GST Council Shri Arun Goyal Additional Secretary
32 GST Council Shri Shashank Priya Commissioner
33 GST Council Shri G.S. Sinha Joint Commissioner
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S No State/Centre Name of the Officer Charge
34 GST Council Shri Jagmohan Joint Commissioner
35 GST Council Ms. Thari Sitkil Deputy Commissioner
36 GST Council Shri Rakesh Agarwal Assistant Commissioner
37 GST Council Shri Kaushik TG Assistant Commissioner
38 GST Council Shri Shekhar Khansili Superintendent
39 GST Council Shri Mukesh Gaur Superintendent
40 GST Council Shri Sandeep Bhutani Superintendent
41 GST Council Shri Amit Soni Inspector
42 GST Council Shri Anis Alam Inspector
43 GST Council Shri Vikas Kumar TA
44 GSTN Shri Navin Kumar Chairman
45 GSTN Shri Prakash Kumar CEO
46 GSTN Shri Jagmal Singh Vice President
47 Andaman & Nicobar Shri S.C.L. Das Principal Secretary (Finance)
48 Andaman & Nicobar Shri Sanjeev Khirwar Commissioner (Power/PWD)
49 Andhra Pradesh Shri D.Sambasiva Rao Special Chief Secretary
50 Andhra Pradesh Shri J.Syamala Rao Commissioner (Commercial Taxes)
51 Andhra Pradesh Shri T.Ramesh Babu Additional Commissioner (CT)
52 Andhra Pradesh Shri D.Venkateswara Rao OSD to Special Chief Secretary
53 Arunachal Pradesh Shri Marnya Ete Commissioner, Commercial Taxes
54 Arunachal Pradesh Shri Tapas Dutta Asst. Commissioner
55 Assam Dr. Ravi Kota Principal Secretary (Finance)
56 Assam Shri Anurag Goel Commissioner, Commercial Taxes
57 Bihar Ms. Sujata Chaturvedi Principal Secretary & Commissioner, Commercial
Taxes 58 Bihar Shri Arun Mishra Additional Secretary, Commercial Taxes
59 Chandigarh Shri Parimal Rai Adviser/Chief Secretary
60 Chandigarh Shri Ajit Joshi Commissioner Excise & Tax
61 Chandigarh Shri Bhartendu Shandilya Deputy Resident Commissioner
62 Chhattisgarh Shri Amitabh Jain Principal Secretary (Finance)
63 Chhattisgarh Shri Shankar Agrawal Additional Commissioner, Commercial Taxes
64 Daman & Diu/Dadra &
Nagar Haveli
Shri Gaurav Singh Rajawat Commissioner, VAT
65 Delhi Shri H. Rajesh Prasad Commissioner, VAT
66 Delhi Shri S.K. Kamra Assistant Commissioner (GST)
67 Goa Shri Dipak Bandekar Commissioner, Commercial Taxes
68 Gujarat Dr. P.D. Vaghela Commissioner, Commercial Taxes
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S No State/Centre Name of the Officer Charge
69 Gujarat Ms. Mona Khandhar Secretary (Economic Affairs)
70 Haryana Shri Sanjeev Kaushal Additional Chief Secretary (Finance)
71 Haryana Shri Shyamal Misra Excise & Taxation Commissioner
72 Haryana Shri Vidya Sagar Additional Excise & Taxation Commissioner
73 Haryana Shri Rajeev Chaudhary Deputy Excise & Taxation Commissioner
74 Haryana Shri R. Mehra Additional Commissioner
75 Himachal Pradesh Dr. Shrikant Baldi Additional Chief Secretary (Finance)
76 Himachal Pradesh Shri Pushpendra Rajput Excise & Taxation Commissioner
77 Jammu & Kashmir Shri Naveen K. Choudhary Principal Secretary
78 Jammu & Kashmir Shri Shamim Ahmed Wani Additional Commissioner
79 Jharkhand Shri Sanjay Kumar Prasad Joint Commissioner
80 Jharkhand Shri G.S. Kapardar Assistant Commissioner
81 Karnataka Shri Ritvik Pandey Commissioner, Commercial Taxes
82 Karnataka Shri Basavaraj K.S Joint Commissioner, Commercial Taxes
83 Karnataka Dr. M.P. Ravi Prasad Joint Commissioner, Commercial Taxes
84 Karnataka Shri D. Jagannatha Sagar Joint Commissioner, Commercial Taxes
85 Kerala Dr. Rajan Khobragade Commissioner, Commercial Taxes
86 Madhya Pradesh Shri Raghwendra Kumar Singh Commissioner, Commercial Taxes
87 Madhya Pradesh Shri Sudip Gupta Deputy Commissioner
88 Maharashtra Shri Rajiv Jalota Commissioner, Commercial Taxes
89 Maharashtra Shri Dhananjay Akhade Joint Commissioner
90 Manipur Shri R.K. Khurkishor Assistant Commissioner
91 Mizoram Shri Vanlalchhuanga Secretary
92 Mizoram Shri H.T. Mawia Superintendent
93 Nagaland Shri Abhijit Sinha Finance Commissioner
94 Nagaland Shri Jyoti Kalash Principal Resident Commissioner
95 Nagaland Shri Asangba Chuba Ao Commissioner, Commercial Taxes
96 Odisha Shri Saswat Mishra Commissioner, Commercial Taxes
97 Odisha Shri Sahadev Sahu Joint Commissioner
98 Puducherry Shri G. Srinivas Commissioner, Commercial Taxes
99 Punjab Shri V.K. Garg Advisor to CM
100 Punjab Shri Anurag Agarwal Financial Commissioner
101 Punjab Shri Vivek Pratap Singh Excise & Taxation Commissioner
102 Punjab Shri Pawan Garg Deputy Excise and Taxation Commissioner
103 Rajasthan Shri Praveen Gupta Secretary, Finance
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S No State/Centre Name of the Officer Charge
104 Rajasthan Shri Alok Gupta Commissioner, Commercial Taxes
105 Rajasthan Shri Ketan Sharma Deputy Commissioner, Commercial Taxes
106 Sikkim Ms. Dipa Basnet Commissioner, Commercial Taxes
107 Sikkim Shri Manoj Rai Joint Commissioner, Commercial Taxes
108 Tamil Nadu Dr. C. Chandramouli Additional Chief Secretary
109 Tamil Nadu Shri K. Gnanasekaran Additional Commissioner, Commercial Taxes
110 Telangana Shri Somesh Kumar Principal Secretary
111 Telangana Shri Anil Kumar Commissioner, Commercial Taxes
112 Telangana Shri Laxminarayan Jannu Joint Commissioner
113 Tripura Shri Shailendra Singh Resident Commissioner, Tripura Bhavan
114 Uttarakhand Shri Shridhar Babu Addanki Commissioner, Commercial Taxes
115 Uttarakhand Shri Vipin Chand Additional Commissioner, Commercial Taxes
116 Uttarakhand Shri Yashpal Singh Deputy Commissioner, Commercial Taxes
117 Uttar Pradesh Shri R.K. Tiwari Additional Chief Secretary (Finance)
118 Uttar Pradesh Shri Mukesh Kumar Meshram Commissioner, Commercial Taxes
119 Uttar Pradesh Shri S.C. Dwivedi OSD
120 Uttar Pradesh Shri Vivek Kumar Additional Commissioner
121 West Bengal Shri H K Dwivedi Principal Secretary (Finance)
122 West Bengal Ms. Smaraki Mahapatra Commissioner, Commercial Taxes
123 West Bengal Shri Khalid A. Anwar Senior Joint Commissioner



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Page 35 of 163
Agenda Item 2: Approval of draft GST Rules and related Forms
The draft rules on Assessment & Audit and e-way bills as drafted by the Law Committee were put in
public domain on 13 April 2017 for feedback from the trade and industry. Similarly, the Rules relating to
Advance Ruling and Appeals & Revisions as drafted by the Law Committee were put in public domain
on 19 April 2017 for inviting comments and feedback from the stakeholders.
2. Based on the feedback received from the concerned stakeholders, the following 4 draft rules have been
modified by the Law Committee:
i. Rules on Advance Ruling and Forms thereto
ii. Rules on Appeal and Revision and Forms thereto
iii. Rules on Assessment and Audit and Forms thereto
iv. Rules on e-way bills and Forms thereto
3. The draft e-Way Bill being circulated is as recommended by the Law Committee. However, the
Revenue Secretary has reservations on certain provisions of the draft law and these will be discussed
during the officers' meeting and in the Council meeting.
4. The Anti-profiteering provisions were discussed in the 15th GST Council meeting held on 3 June 2017.
Accordingly, Rules on Anti-profiteering were drafted taking into account the same.
5. These five Rules and related Forms are placed before the Council for discussion and approval.

Detailed Agenda Notes - Agenda for 17th GSTCM
Page 36 of 163
i. Advance Ruling Rules

1. Qualification and appointment of members of the Authority for Advance Ruling
The Central Government and the State Government shall appoint an officer having the experience
of not less than three years in the rank of Joint Commissioner as member of the Authority for
Advance Ruling.
2. Form and manner of application to the Authority for Advance Ruling
(1) An application for obtaining an advance ruling under sub-section (1) of section 97 of the Act
shall be made on the common portal in FORM GST ARA-1 and shall be accompanied by a
fee of five thousand rupees, to be deposited in the manner specified in section 49 of the Act.
(2) The application referred to in sub-rule (1), the verification contained therein and all relevant
documents accompanying such application shall be signed in the manner specified in rule
Registration.19.
3. Certification of copies of the advance rulings pronounced by the Authority
A copy of the advanced ruling shall be certified to be a true copy of its original by any member of the
Authority for Advance Ruling.
4. Form and manner of appeal to the Appellate Authority for Advance Ruling
(1) An appeal against the advance ruling issued under sub-section (6) of section 98 of the Act
shall be made on the common portal in FORM GST ARA-2 and shall be accompanied by a
fee of ten thousand rupees, to be deposited in the manner specified in section 49 of the Act.
(2) The appeal referred to in sub-rule (1), the verification contained therein and all relevant
documents accompanying such appeal shall be signed, -
(a) in case of concerned officer or jurisdictional officer, by an officer authorized in writing
by such officer; and
(b) in the case of an applicant, in the manner specified in rule Registration.19.
5. Certification of copies of the advance rulings pronounced by the Authority
A copy of the advance ruling pronounced by the Appellate Authority for Advance Ruling and duly
signed by the Members shall be sent to-
(a) the applicant and the appellant;
(b) the concerned officer of central tax and State / Union territory tax;
(c) the jurisdictional officer of central Tax and State / Union territory tax; and
(d) the Authority,
in accordance with the provisions of sub-section (4) of section 101 of the Act.

Detailed Agenda Notes - Agenda for 17th GSTCM
Page 37 of 163
DRAFT
GOODS AND SERVICES TAX RULES, 2017
ADVANCE RULING FORMS








List of Forms

Sr. No. Form No. Description
1. GST ARA-01
Application Form for Advance Ruling
2. GST ARA-02
Application Form for Appeal to the Appellate Authority for Advance Ruling















Detailed Agenda Notes - Agenda for 17th GSTCM
Page 38 of 163
Form GST ARA -01
[See Rule -----]
Application Form for Advance Ruling
1. GSTIN Number/ User-id
2. Legal Name of Applicant
3. Trade Name of Applicant (Optional)
4. Status of the Applicant [registered / un-
registered]

5. Registered Address / Address provided
while obtaining user id

6. Correspondence address, if different
from above

7. Mobile No. [with STD/ISD code]
8. Telephone No. [with STD/ISD code]
9. Email address
10. Jurisdictional Authority <<name, designation, address>>
11. i. Name of authorized representative Optional
ii. Mobile No. iii. Email Address
12. Nature of activity(s) (proposed / present) in respect of which advance ruling sought
A. Category ⏏
Factory / Manufacturing Wholesale Business Retail Business
Warehouse/Deport Bonded Warehouse Service Provision
Office/Sale Office Leasing Business Service Recipient
EOU/ STP/ EHTP SEZ Input Service Distributor (ISD)
Works Contract
B. Description (in brief) In case the size of the description exceeds ____words, please submit facts as
separate attachment.
Link
13. Issue/s on which advance ruling required (Tick whichever is applicable) :-
(i) classification of goods and/or services
or both

(ii) applicability of a notification issued
under the provisions of the Act

(iii) determination of time and value of
supply of goods or services or both

(iv) admissibility of input tax credit of tax
paid or deemed to have been paid

Detailed Agenda Notes - Agenda for 17th GSTCM
Page 39 of 163
(v) determination of the liability to pay
tax on any goods or services or both

(vi) whether applicant is required to be
registered under the Act

(vii) whether any particular thing done by
the applicant with respect to any goods
and/or services or both amounts to or
results in a supply of goods and/or
services or both, within the meaning of
that term

14. Question(s) on which advance ruling is
required

15. Statement of relevant facts having a
bearing on the question(s) raised.

16. Statement containing the applicant’s
interpretation of law and/or facts, as the
case may be, in respect of the aforesaid
question(s) (i.e. applicant’s view point
and submissions on issues on which the
advance ruling is sought).

17. I hereby declare that the question raised in the application is not (tick) -
a. Already pending in any proceedings in the applicant’s case under any of the provisions of the Act
b. Already decided in any proceedings in the applicant’s case under any of the provisions of the Act
18. Payment of the prescribed fees CIN and Date (in case over the counter payment)

VERIFICATION
I, ____________________ (name in full and in block letters), son/daughter/wife of
___________________ do hereby solemnly declare that to the best of my knowledge and belief what is
stated above and in the annexure(s), including the documents are correct. I am making this application in
my capacity as ___________________ (designation) and that I am competent to make this application
and verify it.
Place _______________________ Name of Applicant/Authorized Signatory
Date _______________________ Designation
DSC/EVC/ E-Sign


Detailed Agenda Notes - Agenda for 17th GSTCM
Page 40 of 163

Form GST ARA -02
[See Rule -----]
Appeal to the Appellate Authority for Advance Ruling
Sr. No. Particulars Remarks
1 Advance Ruling No.
2 Date of communication of the advance ruling DD/MM/YYYY
3 GSTIN / User id of the appellant
4 Legal Name of the appellant.
5 Trade Name of the appellant (optional).
6 Address of appellant at which notices may be sent
7 Email Address of the appellant
8 Mobile number of the appellant
9 Jurisdictional officer / concerned officer
10 Designation of jurisdictional officer / concerned officer
11 Email Address of jurisdictional officer / concerned officer
12 Mobile number of jurisdictional officer / concerned officer
13 Whether the appellant wishes to be heard in person? Yes/No
14. The facts of the case (in brief)
15. Ground of Appeal
16. Payment of the prescribed fees CIN and Date (in case over
the counter payment)
Prayer

In view of the foregoing, it is respectfully prayed that the Ld. Appellate Authority, <Place>
may be pleased to:
a. set aside/modify the impugned advance ruling passed by the Authority for Advance
Ruling as prayed above;
b. grant a personal hearing; and
c. pass any such further or other order (s) as may be deemed fit and proper in facts and
circumstances of the case.
And for this act of kindness, the appellant, as is duty bound, shall every pray.

VERIFICATION
I, ____________________ (name in full and in block letters), son/daughter/wife of
___________________ do hereby solemnly declare that to the best of my knowledge and belief what is
stated above and in the annexure(s), including the documents are correct. I am making this application in
Detailed Agenda Notes - Agenda for 17th GSTCM
Page 41 of 163
my capacity as ___________________ (designation) and that I am competent to make this application
and verify it.

Place _________ Name of Appellant/Authorized Signatory
Date_________ Designation

Signature










Detailed Agenda Notes - Agenda for 17th GSTCM
Page 42 of 163
ii. Appeals and Revision Rules
1. Appeal to the Appellate Authority
(1) An appeal to the Appellate Authority under sub-section (1) of section 107 of the Act shall be filed
in FORM GST APL-01, [either] electronically [or otherwise] as may be notified by the
Commissioner, and a provisional acknowledgement shall be issued to the appellant immediately.
(2) The grounds of appeal and the form of verification as contained in FORM GST APL-01 shall
be signed in the manner specified in rule Registration.19.
(3) A hard copy of the appeal in FORM GST APL-01 shall be submitted in triplicate to the Appellate
Authority and shall be accompanied by a certified copy of the decision or order appealed against
along with the supporting documents within seven days of filing the appeal under sub-rule (1)
and a final acknowledgement, indicating appeal number shall be issued thereafter in FORM GST
APL-02 by the Appellate Authority or an officer authorised by him in this behalf:
Provided that where the hard copy of the appeal and documents are submitted within
seven days from the date of filing the FORM GST APL-01, the date of filing of the appeal shall
be the date of issue of provisional acknowledgement and where the hard copy of the appeal and
documents are submitted after seven days, the date of filing of the appeal shall be the date of
submission of documents.

Explanation. – The appeal shall be treated as filed only when the final acknowledgement,
indicating the appeal number is issued.
2. Application to the Appellate Authority
(1) An application to the Appellate Authority under sub-section (2) of section 107 of the Act shall
be made in FORM GST APL-03, [either] electronically [or otherwise] as may be notified by
the Commissioner.
(2) A hard copy of the application in FORM GST APL-03 shall be submitted in triplicate to the
Appellate Authority and shall be accompanied by a certified copy of the decision or order
appealed against along with the supporting documents within seven days of filing the application
under sub-rule (1) and an appeal number shall be generated by the Appellate Authority or an
officer authorised by him in this behalf.
3. Appeal to the Appellate Tribunal
(1) An appeal to the Appellate Tribunal under sub-section (1) of section 112 of the Act shall be filed either
electronically or otherwise as may be notified by the Registrar, in FORM GST APL-05, on the common
portal and a provisional acknowledgement shall be issued to the appellant immediately.
(2) A memorandum of cross-objections to the Appellate Tribunal under sub-section (5) of section 112 of
the Act shall be filed in quintuplicate to the Registrar in FORM GST APL-06.
(3) The appeal and the memorandum of cross objections shall be signed in the manner specified in rule
Registration.19.
(4) A hard copy of the appeal in FORM GST APL-05 shall be submitted to the Registrar in quintuplicate
and shall be accompanied by a certified copy of the decision or order appealed against along with the
supporting documents and a fees as specified in sub-rule (5) within seven days of filing of the appeal
under sub-rule (1) and a final acknowledgement, indicating the appeal number shall be issued thereafter
in FORM GST APL-02 by the Registrar:
Detailed Agenda Notes - Agenda for 17th GSTCM
Page 43 of 163
Provided that where the hard copy of the appeal and documents are submitted within seven days from the
date of filing the FORM GST APL-05, the date of filing of the appeal shall be the date of issue of
provisional acknowledgement and where the hard copy of the appeal and documents are submitted after
seven days, the date of filing of the appeal shall be the date of submission of documents.
Explanation. – The appeal shall be treated as filed only when the final acknowledgement indicating the
appeal number is issued.
(5) The fees for filing of appeal or and restoration of appeal shall be one thousand rupees for every one
lakh rupees of tax or input tax credit involved or the difference in tax or input tax credit involved or the
amount of fine, fee or penalty determined in the order appealed against, subject to maximum of twenty
five thousand rupees.
(6) There shall be no fee for application made before the Appellate Tribunal for rectification of errors
referred to in sub-section (10) of section 112.
4. Application to the Appellate Tribunal
(1) An application to the Appellate Tribunal under sub-section (3) of section 112 of the Act shall be made
electronically, in FORM GST APL-07, on the common portal.

(2) A hard copy of the application in FORM GST APL-07 shall be submitted to the Registrar in
quintuplicate and shall be accompanied by a certified copy of the decision or order appealed against along
with supporting documents within seven days of filing the application under sub-rule (1) and an appeal
number shall be generated by the Registrar.
5. Production of additional evidence before the Appellate Authority or the Appellate Tribunal
(1) The appellant shall not be allowed to produce before the Appellate Authority or the Appellate
Tribunal any evidence, whether oral or documentary, other than the evidence produced by him
during the course of the proceedings before the adjudicating authority or, as the case may be, the
Appellate Authority except in the following circumstances, namely –
(a) where the adjudicating authority or, as the case may be, the Appellate Authority has
refused to admit evidence which ought to have been admitted; or
(b) where the appellant was prevented by sufficient cause from producing the evidence
which he was called upon to produce by the adjudicating authority or, as the case may
be, the Appellate Authority; or
(c) where the appellant was prevented by sufficient cause from producing before the
adjudicating authority or, as the case may be, the Appellate Authority any evidence
which is relevant to any ground of appeal; or
(d) where the adjudicating authority or, as the case may be, the Appellate Authority has made
the order appealed against without giving sufficient opportunity to the appellant to
adduce evidence relevant to any ground of appeal.
(2) No evidence shall be admitted under sub-rule (1) unless the Appellate Authority or the Appellate
Tribunal records in writing the reasons for its admission.
(3) The Appellate Authority or the Appellate Tribunal shall not take any evidence produced under
sub-rule (1) unless the adjudicating authority or an officer authorised in this behalf by the said
authority has been allowed a reasonable opportunity -
(a) to examine the evidence or document or to cross-examine any witness produced by the
appellant; or
(b) to produce any evidence or any witness in rebuttal of the evidence produced by the
appellant under sub-rule (1).
Detailed Agenda Notes - Agenda for 17th GSTCM
Page 44 of 163
(4) Nothing contained in this rule shall affect the power of the Appellate Authority or the Appellate
Tribunal to direct the production of any document, or the examination of any witness, to enable
it to dispose of the appeal.
6. Order of Appellate Authority or Appellate Tribunal
(1) The Appellate Authority shall, along with its order under sub-section (11) of section 107 of the
Act, issue a summary of the order in FORM GST APL-04 clearly indicating the final amount of demand
confirmed.
(2) The jurisdictional officer shall issue a statement in FORM GST APL-04 clearly indicating the
final amount of demand confirmed by the Appellate Tribunal.
7. Appeal to the High Court
(1) An appeal to the High Court under sub-section (1) of section 117 of the Act shall be filed in FORM
GST APL-08.

(2) The grounds of appeal and the form of verification as contained in FORM GST APL-08 shall be
signed in the manner specified in rule Registration.19.
8. Demand confirmed by the Court
The jurisdictional officer shall issue a statement in FORM GST APL-04 clearly indicating the final
amount of demand confirmed by the High Court or, as the case may be, Supreme Court.

89. Disqualification for misconduct of an authorised representative

Where an authorised representative, other than those referred to in clause (b) or clause (c) of sub-
section (2) of section 116 of the Act is found, upon an enquiry into the matter, guilty of misconduct
in connection with any proceedings under the Act, the Commissioner may, after providing him an
opportunity of being heard, disqualify him from appearing as an authorised representative.
*****

Detailed Agenda Notes - Agenda for 17th GSTCM
Page 45 of 163


DRAFT
GOODS AND SERVICES TAX RULES, 2017
APPEAL AND REVISION FORMS



Sr. No Form No. Content
1. GST APL-01 Application Form for filing appeal to Appellate Authority

2. GST APL-02 Acknowledgement of submission of appeal
3. GST APL-03 Application Form for appeal to the Appellate Authority under sub
section (2) of Section 107 of the < CGST/ SGST > Act, < 2017 >
4. GST APL-04 Summary of the demand after issue of order by the Appellate
Authority, Tribunal or Court
5. GST APL-05 Application Form for Appeal to the Appellate Tribunal
6. GST APL-06 Application Form for filing Cross-Objections to the First Appellate /
Appellate Tribunal
7. GST APL-07 Application Form to file appeal the Appellate Tribunal under sub
section (3) of Section 112 of the < CGST/ SGST > Act, < 2017 >
8. GST APL -08 Application Form to file Appeal to the High Court Judicature
at<Name of the Place >under section 117 of the State/Centre Goods
and Service Tax Act, 2017

Detailed Agenda Notes - Agenda for 17th GSTCM
Page 46 of 163
Form GST APL - 01
[See Rule ------]

Form for filing appeal to Appellate Authority
1. GSTIN/ Temporary ID/UIN –
2. Legal name of the appellant -
3. Trade name, if any –
4. Address -
5. Order no. - Order date -
6. Designation and address of the officer passing the order appealed against -
7. Date of communication of the order appealed against -
8. Name of the authorized representative -
9. Details of the case under dispute -

(i) Brief issue of the case under dispute -
(ii) Description and classification of goods/ services in dispute-

(iii) Period of dispute-
(iv) Amount under dispute:

CGST SGST/UTGST IGST Cess
a) Tax/ Cess
b) Interest
c) Penalty
d) Fees
e) Other charges

(v) Market value of seized goods
10. Whether the appellant wishes to be heard in person – Yes / No
11. Statement of facts: -
12. Grounds of appeal: -
13. Prayer: -

14. Amount of demand created, admitted and disputed
Particulars
of
demand/
refund
Particulars CGST
SGST/
UTGST
IGST Cess Total amount
Amount
of
demand
created
(A)
a) Tax/ Cess
<
total
> < total
>
b) Interest
<
total
>
Detailed Agenda Notes - Agenda for 17th GSTCM
Page 47 of 163
c) Penalty
<
total
>
d) Fees
<
total
>
e) Other
charges
<
total
>
Amount
of
demand
admitted
(B)
a) Tax/ Cess

<
total
>
< total
>
b) Interest
<
total
>
c) Penalty
<
total
>
d) Fees
<
total
>
e) Other
charges
<
total
>
Amount
of
demand
disputed
(C)
a) Tax/ Cess

<
total
>
< total
>
b) Interest
<
total
>
c) Penalty
<
total
>
d) Fees
<
total
>
e) Other
charges
<
total
>

15. Details of payment of admitted amount and pre-deposit:-

(a) Details of payment required
Particulars
CGS
T
SGST/
UTGST
IGS
T
Ces
s
Total amount

a) Admitted
amount
Tax/ Cess
<
total
>
< total
>
Detailed Agenda Notes - Agenda for 17th GSTCM
Page 48 of 163
Interest
<
total
>
Penalty
<
total
>
Fees
<
total
>
Other
charges
<
total
>
b) Pre-deposit
(10% of
disputed tax)
Tax/ Cess
<
total
>

(b) Details of payment of admitted amount and pre-deposit (pre-deposit 10% of the
disputed tax and cess)
Sr.
No.
Description
Tax
payable
Paid
through
Cash/
Credit
Ledger
Debit
entry
no.
Amount of tax paid
IGST CGST SGST/UTGST CESS
1 2 3 4 5 6 7 8 9
1. IGST
Cash
Ledger

Credit
Ledger

2. CGST
Cash
Ledger

Credit
Ledger

3. SGST/UTGST
Cash
Ledger

Credit
Ledger

4. CESS
Cash
Ledger

Credit
Ledger











Detailed Agenda Notes - Agenda for 17th GSTCM
Page 49 of 163
(c) Interest, penalty, late fee and any other amount payable and paid
Sr.
No
.
Descripti
on
Amount payable Debi
t
entr
y
no.
Amount paid
IGS
T
CGS
T
SGST/UTG
ST
CES
S
IGS
T
CGS
T
SGST/UTG
ST
CES
S
1 2 3 4 5 6 7 8 9 10 11
1. Interest
2. Penalty
3. Late fee
4.
Others
(specify)

16. Whether appeal is being filed after the prescribed period - Yes / No
17. If ‘Yes’ in item 17 –
(a) Period of delay –
(b) Reasons for delay -



Verification
I, < _________________________ >, hereby solemnly affirm and declare that the
information given hereinabove is true and correct to the best of my knowledge and belief and
nothing has been concealed therefrom.


Place:
Date: <Signature>

Name of the Applicant:


Detailed Agenda Notes - Agenda for 17th GSTCM
Page 50 of 163
Form GST APL – 02
[See Rule < __ >]

Acknowledgment for submission of appeal

<Name of applicant><GSTIN/Temp ID/UIN/Reference Number with date >

Your appeal has been successfully filed against < Application Reference Number >

1. Reference Number-
2. Date of filing-
3. Time of filing-
4. Place of filing-
5. Name of the person filing the appeal-
6. Amount of pre-deposit-
7. Date of acceptance/rejection of appeal-
8. Date of appearance- Date:
Time:
9. Court Number/ Bench Court: Bench:

Place:

Date:

< Signature>


Name:
Designation:

On behalf of Appellate Authority/Appellate
Tribunal/ Commissioner / Additional or Joint
Commissioner

Detailed Agenda Notes - Agenda for 17th GSTCM
Page 51 of 163
Form GST APL - 03
[See Rule < __ >]

Application to the Appellate Authority under sub-section (2) of Section 107

1. Name and designation of the appellant Name-
Designation-
Jurisdiction-
State/Center-
Name of the State-
2. GSTIN/ Temporary ID /UIN-
3. Order no. Date-
4. Designation and address of the officer passing the order appealed against-
5. Date of communication of the order appealed against-
6. Details of the case under dispute-
(i) Brief issue of the case under dispute-
(ii) Description and classification of goods/ services in dispute-
(iii) Period of dispute-
(iv) Amount under dispute-
CGST SGST/UTGST IGST Cess
a) Tax/ Cess
b) Interest
c) Penalty
d) Fees
e) Other charges

7. Statement of facts-
8. Grounds of appeal-
9. Prayer-
10. Amount of demand in dispute, if any -

Particulars of
demand/refund
, if any
Particulars
CGS
T
SGST/UTGS
T
IGS
T
Ces
s
Total
amount
Amoun
t of
demand
created,
if any
(A)
a) Tax/
Cess
<
tota
l >
<
tota
l >
b)
Interest
<
tota
l >
Detailed Agenda Notes - Agenda for 17th GSTCM
Page 52 of 163
c)
Penalty
<
tota
l >
d) Fees
<
tota
l >
e)
Other
charge
s
<
tota
l >
Amoun
t under
dispute
(B)
a) Tax/
Cess

<
tota
l >
<
tota
l >
b)
Interest
<
tota
l >
c)
Penalty
<
tota
l >
d) Fees
<
tota
l >
e)
Other
charge
s
<
tota
l >


Place:
Date:
< Signature>


Name of the Applicant Officer:
Designation:
Jurisdiction:

Detailed Agenda Notes - Agenda for 17th GSTCM
Page 53 of 163
Form GST APL – 04
[Refer Rule < __ >]

Summary of the demand after issue of order by the Appellate Authority, Tribunal
or Court

Order no. - Date of
order -

1. GSTIN/ Temporary ID/UIN -
2. Name of the appellant-
3. Address of the appellant-
4. Order appealed against- Number- Date-
5. Appeal no. Date-
6. Personal Hearing –
7. Order in brief-
8. Status of order- Confirmed/Modified/Rejected
9. Amount of demand confirmed:
Particulars CGST SGST/UTGST IGST Cess Total
Dispute
d
Amount
Determi
ned
Amount
Dispu
ted
Amo
unt
Determi
ned
Amount
Dispute
d
Amount
Deter
mined
Amou
nt
Disput
ed
Amou
nt
Determi
ned
Amount
Dispute
d
Amount
Determin
ed
Amount
a) Tax
b) Interest
c) Penalty
d) Fees
e) Others
f) Refund




Place:
Date:

< Signature>


< Name of the Appellate Authority>
Designation:
Jurisdiction:

Detailed Agenda Notes - Agenda for 17th GSTCM
Page 54 of 163
Form GST APL – 05
[See Rule ------]

Appeal to the Appellate Tribunal

1. GSTIN/ Temporary ID /UIN -
2. Name of the appellant -
3. Address of the appellant –
4. Order appealed against- Number- Date-
5. Name and Address of the Authority passing the order appealed against -
6. Date of communication of the order appealed against -
7. Name of the representative -
8. Details of the case under dispute:
(i) Brief issue of the case under dispute
(ii) Description and classification of goods/ services in dispute
(iii) Period of dispute
(vi) Amount under dispute:
CGST SGST/UTGST IGST Cess
a) Tax/ Cess
b) Interest
c) Penalty
d) Fees
e) Other charges

(vii) Market value of seized goods

9. Whether the appellant wishes to be heard in person?
10. Statement of facts
11. Grounds of appeal
12. Prayer

13. Details of demand created, disputed and admitted
Particulars
of demand
Particulars CGST SGST/UTGST IGST Cess
Total
amount
Amount
demanded/
rejected >,
a) Tax/
Cess
<
total
>
<
total
>
Detailed Agenda Notes - Agenda for 17th GSTCM
Page 55 of 163
if any
(A)
b)
Interest
<
total
>
c)
Penalty
<
total
>
d) Fees
<
total
>
e) Other
charges
<
total
>
Amount
under
dispute
(B)
a) Tax/
Cess

<
total
>
<
total
>
b)
Interest
<
total
>
c)
Penalty
<
total
>
d) Fees
<
total
>
e) Other
charges
<
total
>
Amount
admitted
(C)
a) Tax/
Cess

<
total
>
<
total
>
b)
Interest
<
total
>
c)
Penalty
<
total
>
d) Fees
<
total
>
e) Other
charges
<
total
>
14. Details of payment of admitted amount and pre-deposit:
(a) Details of amount payable :
Particulars CGST SGST/UTGST IGST Cess
Total
amount

a) Admitted
amount
Tax/ Cess
<
total
>
<
total
>
Detailed Agenda Notes - Agenda for 17th GSTCM
Page 56 of 163
Interest
<
total
>
Penalty
<
total
>
Fees
<
total
>
Other
charges
<
total
>
b) Pre-
deposit (20%
of disputed
tax)
Tax/ Cess
<
total
>

(b) Details of payment of admitted amount and pre-deposit (pre-deposit 20% of the
disputed admitted tax and cess)
Sr.
No.
Description
Tax
payable
Paid
through
Cash/
Credit
Ledger
Debit
entry
no.
Amount of tax paid
IGST CGST SGST/UTGST CESS
1 2 3 4 5 6 7 8 9
1. IGST
Cash
Ledger

Credit
Ledger

2. CGST
Cash
Ledger

Credit
Ledger

3. SGST/UTGST
Cash
Ledger

Credit
Ledger

4. CESS
Cash
Ledger

Credit
Ledger







(c) Interest, penalty, late fee and any other amount payable and paid:
Detailed Agenda Notes - Agenda for 17th GSTCM
Page 57 of 163
Sr.
No.

Description
Amount payable Debit
entry
no.
Amount paid
IGST CGST SGST/UTGST CESS IGST CGST SGST/UTGST CESS
1 2 3 4 5 6 7 8 9 10 11
1. Interest
2. Penalty
3. Late fee
4.
Others
(specify)




Verification

I, < _________________________ >, hereby solemnly affirm and declare that the information
given hereinabove is true and correct to the best of my knowledge and belief and nothing has
been concealed therefrom.


Place:

Date:

< Signature>



Name of the Applicant/
Officer:
Designation of officer:
Jurisdiction of the officer:

Detailed Agenda Notes - Agenda for 17th GSTCM
Page 58 of 163
Form GST APL – 06
[See Rule < __ >]
Cross-objections before the Appellate Authority / Appellate Tribunal
Sr. No. Particulars
1 Appeal No. - Date of filing -
2 GSTIN/ Temporary ID/UIN-
3 Name of the appellant-
4 Permanent address of the appellant-
5 Address for communication-
6 Order no. Date-
7. Designation and Address of the officer passing the order appealed against-
8. Date of communication of the order appealed against-
9. Name of the representative-
10. Details of the case under dispute-
(i) Brief issue of the case under dispute-
(ii) Description and classification of goods/ services in dispute-
(iii) Period of dispute-
(iv) Amount under dispute IGST CGST SGST/UTGST Cess
a) Tax
b) Interest
c) Penalty
d) Fees
e) Other charges (specify)
(v) Market value of seized goods-
11
State or Union Territory and the Commissionerate (Centre) in which the order or
decision was passed (Jurisdiction details)-
12
Date of receipt of notice of appeal or application filed with the Appellate Tribunal
by the appellant or the Commissioner of SGST/CGST/UTGST, as the case may be-
Detailed Agenda Notes - Agenda for 17th GSTCM
Page 59 of 163
13
Whether the decision or order appealed against involves any question relating to
place of supply -
Yes No
14
In case of cross-objections filed by a person other than the Commissioner of
SGST/UTGST/CGST

(i) Name of the Adjudicating Authority-
(ii) Order Number and date of Order-
(iii) GSTIN/UIN/Temporary ID-
(iv) Amount involved:
Head Tax Interest Penalty Refund Total
IGST


CGST


SGST/UTGST


Cess


15 Details of payment
Head Tax Interest Penalty Refund Total
IGST
CGST
SGST/UTGST
Cess
Total
16
In case of cross-objections filed by the Commissioner SGST/UTGST/CGST:

(i) Amount of tax demand dropped or reduced
for the period of dispute

(ii)
Amount of interest demand dropped or
reduced for the period of dispute

(iii)
Amount of refund sanctioned or allowed for
the period of dispute

(iv) Whether no or lesser amount imposed as
penalty

TOTAL
Detailed Agenda Notes - Agenda for 17th GSTCM
Page 60 of 163


















17 Reliefs claimed in memorandum of cross -objections.
18

Grounds of Cross objection



VERIFICATION
I, the respondent, do hereby
declare that what is stated above is true to the best of my information and belief.

Verified today, the day of 20…



Place:
Date: <Signature>

Signature of the Authorized Representative/ Tax Official/
Applicant Taxpayer

Name of the Applicant/ Officer:
Designation of officer:
Jurisdiction of officer:

Detailed Agenda Notes - Agenda for 17th GSTCM
Page 61 of 163
Form GST APL – 07
[See Rule ------]

Application to the Appellate Tribunal under sub section (3) of Section 112
1. Name and Designation of the appellant Name:
Designation
Jurisdiction
State/Center-
Name of the State:
2. GSTIN/ Temporary ID /UIN-
3. Appellate Order no. Date-
4. Designation and Address of the Appellate Authority passing the order appealed against-
5. Date of communication of the order appealed against-
6. Details of the case under dispute:
(i) Brief issue of the case under dispute-
(ii) Description and classification of goods/ services in dispute-
(iii) Period of dispute-
(iv) Amount under dispute:
Description CGST SGST/UTGST IGST Cess
a) Tax/ Cess
b) Interest
c) Penalty
d) Fees
e) Other charges

7. Statement of facts-
8. Grounds of appeal-
9. Prayer-
10. Amount demanded, disputed and admitted:
Particulars
of
demand, if
any
Particulars
CGS
T
SGS
T/UT
GST
IGS
T
Cess Total amount
Amount
of
demand
created, if
any
(A)
a) Tax/ Cess















< total
>
<
total
>
b) Interest < total
>
c) Penalty < total
>
Detailed Agenda Notes - Agenda for 17th GSTCM
Page 62 of 163
d) Fees < total
>
e) Other
charges
< total
>
Amount
under
dispute
(B)
a) Tax/ Cess
















< total
>
<
total
>
b) Interest < total
>
c) Penalty < total
>
d) Fees < total
>
e) Other
charges
< total
>


Place:
Date: < Signature >

Name of the Officer:
Designation:

Jurisdiction:-



Detailed Agenda Notes - Agenda for 17th GSTCM
Page 63 of 163
Form GST APL – 08
[See Rule-----]

Appeal to the High Court under section 117


1. Appeal filed by -----------------------Taxable person / Government of <-->
2. GSTIN/ Temporary ID/UIN-

Name of the appellant/ officer-
Designation / Jurisdiction—
3. Permanent address of the appellant, if applicable-
4. Address for communication-
5. Order appealed against Number Date-

6. Name and Address of the Appellate Tribunal passing the order appealed against-
7. Date of communication of the order appealed against-
8. Name of the representative
9. Details of the case under dispute:
(i) Brief issue of the case under dispute with synopsis
(ii) Description and classification of goods/ services in dispute
(iii) Period of dispute
(iv) Amount under dispute
Description CGST SGST/UTGST IGST Cess
a) Tax/ Cess
b) Interest
c) Penalty
d) Fees
e) Other charges

(v) Market value of seized goods





10. Statement of facts
Detailed Agenda Notes - Agenda for 17th GSTCM
Page 64 of 163
11. Grounds of appeal
12. Prayer
13. Annexure(s) related to grounds of appeal

Verification

I, < _________________________ >, hereby solemnly affirm and declare that the information
given hereinabove is true and correct to the best of my knowledge and belief and nothing has
been concealed therefrom.


Place:

Date:


<Signature>

Name of the Officer:
Designation:
Jurisdiction


Detailed Agenda Notes - Agenda for 17th GSTCM
Page 65 of 163
iii. Assessment and Audit Rules
1. Provisional Assessment

(1) Every registered person requesting for payment of tax on a provisional basis in accordance with the
provisions of sub-section (1) of section 60 shall furnish an application in FORM GST ASMT-01, along
with the documents in support of his request, electronically, in FORM GST ASMT-01 through on the
Common Portal, either directly or through a Facilitation Centre notified by the Commissioner.

(2) The proper officer may, on receipt of the application under sub-rule (1), issue a notice in FORM GST
ASMT-02 requiring the registered person to appear in person or furnish additional information or
documents in support of his request and the applicant shall file a reply to the notice in FORM GST
ASMT – 03.

(3) The proper officer shall issue an order in FORM GST ASMT-04, either rejecting the application,
stating the grounds for such rejection or allowing payment of tax on a provisional basis indicating the
value or the rate or both on the basis of which the provisional assessment is to be allowed made on a
provisional basis and the amount for which the bond is to be executed and security to be furnished not
exceeding twenty five per cent. of the amount covered under the bond.

(4) The registered person shall execute a bond in accordance with the provisions of sub-section (2) of
section 60 in FORM GST ASMT-05 along with a security in the form of a bank guarantee for an amount
as determined under sub rule (3):

Provided that a bond furnished to the proper officer under the Central/State Goods and Services Tax Act
or Integrated Goods and Services Tax Act shall be deemed to be a bond furnished under the provisions of
this Act and the rules made thereunder.

Explanation.- For the purposes of this rule, the term “amount” shall include the amount of integrated tax,
central tax, State tax or Union territory tax and cess payable in respect of such the transaction.

(5) The proper officer shall issue a notice in FORM GST ASMT-06, calling for information and records
required for finalization of assessment under sub-section (3) of section 60 and shall issue a final
assessment order, specifying the amount payable by the registered person or the amount refundable, if
any, in FORM GST ASMT-07.

(6) The applicant may file an application in FORM GST ASMT- 08 for release of security furnished
under sub-rule (4) after issue of order under sub-rule (5).

(7) The proper officer shall release the security furnished under sub-rule (4), after ensuring that the
applicant has paid the amount specified in sub-rule (5) and issue an order in FORM GST ASMT–09
within a period of seven working days from the date of receipt of the application under sub-rule (6).

2. Scrutiny of returns

(1) Where any return furnished by a registered person is selected for scrutiny, the proper officer shall
scrutinize the same in accordance with the provisions of section 61 with reference to the information
available with him, and in case of any discrepancy, he shall issue a notice to the said person in FORM
GST ASMT-10, informing him of such discrepancy and seeking his explanation thereto within such time,
not exceeding fifteen thirty days from the date of service of the notice or such further period as may be
specified in the noticepermitted by him and also quantifying the amount of tax, interest and any other
amount payable in relation to such discrepancy.

(2) The registered person may accept the discrepancy mentioned in the notice issued under sub-rule (1),
and pay the tax, interest and any other amount arising from such discrepancy and inform the same or
furnish an explanation for the discrepancy in FORM GST ASMT-11 to the proper officer.
Detailed Agenda Notes - Agenda for 17th GSTCM
Page 66 of 163
(3) Where the explanation furnished by the taxable registered person or the information submitted under
sub-rule (2) is found to be acceptable, the proper officer shall inform the registered personhim accordingly
in FORM GST ASMT-12.

3. Assessment in certain cases.

(1) The order of assessment made under sub-section (1) of section 62 shall be issued in FORM GST
ASMT-13.

(2) The proper officer shall issue a notice to an unregistereda taxable person in accordance with the
provisions of section 63 in FORM GST ASMT-14 containing the grounds on which the assessment is
proposed to be made on best judgment basis and after allowing a time of fifteen days to such person to
furnish his reply, if any, pass an order in FORM GST ASMT-15.

(3) The order of summary assessment under sub-section (1) of section 64 shall be issued in FORM GST
ASMT-16.

(4) The person referred to in sub-section (2) of section 64 may file an application for withdrawal of the
summary assessment order in FORM GST ASMT–17.

(5) The order of withdrawal or, as the case may be, rejection of the application under sub-section (2) of
section 64 shall be issued in FORM GST ASMT-18.

4. Audit

(1) The period of audit to be conducted under sub-section (1) of section 65 shall be a financial year or
multiples thereof.

(2) Where it is decided to undertake the audit of a registered person in accordance with the provisions of
section 65, the proper officer shall issue a notice in FORM GST ADT-01 in accordance with the
provisions of within the time specified in sub-section (3) of the said section.

(3) The proper officer authorised to conduct audit of the records and books of account of the registered
person shall, with the assistance of the team of officers and officials accompanying him, verify the
documents on the basis of which the books of account are maintained and the returns and statements
furnished under the Act and the rules made there under, the correctness of the turnover, exemptions and
deductions claimed, the rate of tax applied in respect of supply of goods or services or both, the input tax
credit availed and utilized, refund claimed, and other relevant issues and record the observations in his
audit notes.

(4) The proper officer may inform the registered person of the discrepancies noticed, if any, noticed as
observations of the audit and the said person may file his reply and the proper officer shall finalise the
findings of the audit after due consideration of the reply furnished.

(5) On conclusion of the audit, the proper officer shall inform the findings of audit to the registered person
in accordance with the provisions of sub-section (6) of section 65 in FORM GST ADT-02.

5. Special Audit

(1) Where special audit is required to be conducted under in accordance with the provisions of section 66,
the officer referred to in the said section shall issue a direction in FORM GST ADT-03 to the registered
person to get his records audited by the a chartered accountant or a cost accountant specified in the said
direction.

(2) On conclusion of special audit, the registered person shall be informed of the findings of special audit
in FORM GST ADT-04.
Detailed Agenda Notes - Agenda for 17th GSTCM
Page 67 of 163

DRAFT
GOODS AND SERVICES TAX RULES, 2017
ASSESSMENT FORMS














Detailed Agenda Notes - Agenda for 17th GSTCM
Page 68 of 163
Form GST ASMT - 01
[See rule ----]
Application for Provisional Assessment under section 60

1.GSTIN
2. Name
3. Address

4. Details of Commodity / Service for which tax rate / valuation is to be determined
Sr. No. HSN/SAC Name of
commodity
/service
Tax rate Valuation Average
monthly
turnover of
the
commodity
/ service
CGST SGST/
UTGST
IGST Cess
1 2 3 4 5 6 7 8 9


5. Reason for seeking provisional assessment


6. Documents filed
7. Verification-
I ________ hereby solemnly affirm and declare that the information given hereinabove is true
and correct to the best of my knowledge and belief and nothing has been concealed therefrom.

Signature of Authorized Signatory
Name
Designation / Status -------
Date -----
Detailed Agenda Notes - Agenda for 17th GSTCM
Page 69 of 163
Form GST ASMT - 02
[See rule ----]
Reference No.: Date:
To
_______________ GSTIN
----------------------Name
_______________ (Address)

Application Reference No. (ARN) ………… Dated ………..

Notice for Seeking Additional Information / Clarification / Documents for provisional
assessment

Please refer to your application referred to above. While examining your request for provisional
assessment, it has been found that the following information/documents are required for
processing the same:

<< text >>


You are, therefore, requested to provide the information /documents within a period of << 15
days>> from the date of service of this notice to enable this office to take a decision in the matter.
Please note that in case no information is received by the stipulated date your application is liable
to be rejected without any further reference to you.
You are requested to appear before the undersigned for personal hearing on << Date ---
Time ---Venue --->>.

Signature
Name
Designation


Detailed Agenda Notes - Agenda for 17th GSTCM
Page 70 of 163
Form GST ASMT – 03
[See rule ----]
Reply to the notice seeking additional information

1. GSTIN
2. Name
3. Details of notice vide which additional
information sought
Notice No. Notice date
4. Reply



5. Documents filed






6. Verification-
I ________________________________________ hereby solemnly affirm and declare that the
information given hereinabove is true and correct to the best of my knowledge and belief and
nothing has been concealed therefrom.
Signature of Authorized Signatory
Name
Designation / Status -------
Date


Detailed Agenda Notes - Agenda for 17th GSTCM
Page 71 of 163
Form GST ASMT – 04
[See rule ----]
Reference No.: ………… Date

To

GSTIN -
Name -
Address -

Application Reference No. (ARN) ……….. Dated ……..
Order of Acceptance or Rejection of Provisional Assessment
This has reference to your application mentioned above and reply dated-------, furnishing
information/documents in support of your request for provisional assessment. Upon examination
of your application and the reply, the provisional assessment is allowed as under:
<< text >>
The provisional assessment is allowed subject to furnishing of security amounting to Rs.---------
------ (in words) in the form of ----------- (mode) and bond in the prescribed format by ----------
---- (date).
Please note that if the bond and security are not furnished within the stipulated date, the
provisional assessment order will be treated as null and void as if no such order has been issued.
Or
This has reference to your application mentioned above and reply dated-------, furnishing
information/documents in support of your request for provisional assessment.
Your request for provisional assessment has been examined and it has not been found to be
acceptable due to the following reasons:
<< text >>

Signature
Name
Designation


Detailed Agenda Notes - Agenda for 17th GSTCM
Page 72 of 163
Form GST ASMT - 05
[See rule ----]
Furnishing of Security
1. GSTIN
2. Name
3. Order vide which security is prescribed Order No. Order date
4. Details of the security furnished
Sr. No. Mode Reference no. /
Debit entry no.
(for cash payment)
Date Amount Name of Bank
1 2 3 4 5 6


Note – Hard copy of the bank guarantee and bond shall be submitted on or before the due date mentioned in the
order.
5. Declaration -
(i) The above-mentioned bank guarantee is submitted to secure the differential tax on the
supply of goods and/or services in respect of which I/we have been allowed to pay taxes on
provisional basis.
(ii) I undertake to renew the bank guarantee well before its expiry. In case I/We fail to do so
the department will be at liberty to get the payment from the bank against the bank guarantee.
(iii) The department will be at liberty to invoke the bank guarantee provided by us to cover
the provisional assessment in case we fail to furnish the required documents/ information to
facilitate finalization of provisional assessment.
Signature of Authorized Signatory
Name
Designation / Status -------
Date ----------
Detailed Agenda Notes - Agenda for 17th GSTCM
Page 73 of 163
Form GST ASMT - 06
[See rule ----]
Reference No.: Date:
To
GSTIN -
Name -
Address -
Application Reference No. (ARN) ………… Date ………..
Provisional Assessment order no. - Date ----

Notice for seeking additional information / clarification / documents for final assessment

Please refer to your application and provisional assessment order referred to above. The
following information / documents are required for finalization of provisional assessment:

<< text >>

You are, therefore, requested to provide the information /documents within a period of << 15
days>> from the date of receipt of this notice to enable this office to take a decision in the matter.
Please note that in case no information is received by the stipulated date your application is liable
to be rejected without making any further reference to you.
You are requested to appear before the undersigned for personal hearing on << Date ---
Time ---Venue --->>.

Signature
Name
Designation



Detailed Agenda Notes - Agenda for 17th GSTCM
Page 74 of 163
Form GST ASMT – 07
[See rule-----]
Reference No.: ………… Date

To
GSTIN
Name
Address

Provisional Assessment order No. ……….. dated ……..
Final Assessment Order
Preamble - << Standard >>
In continuation of the provisional assessment order referred to above and on the
basis of information available / documents furnished, the final assessment order is issued as
under:
Brief facts –
Submissions by the applicant -
Discussion and finding -
Conclusion and order -
The security furnished for the purpose can be withdrawn after compliance with
the order by filing an application.


Signature
Name

Designation



Detailed Agenda Notes - Agenda for 17th GSTCM
Page 75 of 163
Form GST ASMT - 08
[See rule ----]

Application for Withdrawal of Security
1. GSTIN
2. Name
3. Details vide which security furnished ARN Date
4. Details of the security to be withdrawn
Sr. No. Mode Reference no. /
Debit entry no. (for
cash payment)
Date Amount Name of Bank
1 2 3 4 5 6



5. Verification-
I ________________________________________ hereby solemnly affirm and declare that the
information given hereinabove is true and correct to the best of my knowledge and belief and
nothing has been concealed therefrom.


Signature of Authorized Signatory
Name
Designation / Status -
Date -

Detailed Agenda Notes - Agenda for 17th GSTCM
Page 76 of 163
Form GST ASMT – 09
[See rule-----]
Reference No.: ………… Date

To
_______________ GSTIN
----------------------- Name
_______________ Address

Application Reference No. ……….. dated ……..
Order for release of security or rejecting the application
This has reference to your application mentioned above regarding release of
security amounting to Rs. ------------- [------------ Rupees (in words)]. Your application has been
examined and the same is found to be in order. The aforesaid security is hereby released. Or
Your application referred to above regarding release of security was examined but the same was
not found to be in order for the following reasons:

<< text >>

Therefore, the application for release of security is rejected.


Signature
Name
Designation
Date
Detailed Agenda Notes - Agenda for 17th GSTCM
Page 77 of 163
Form GST ASMT - 10
[See rule ----]

Reference No.: Date:
To__________
GSTIN:
Name :
Address :

Tax period - F.Y. -

Notice for intimating discrepancies in the return after scrutiny

This is to inform that during scrutiny of the return for the tax period referred to above, the
following discrepancies have been noticed:

<< text >>

You are hereby directed to explain the reasons for the aforesaid discrepancies by ----------------
(date). If no explanation is received by the aforesaid date, it will be presumed that you have
nothing to say in the matter and proceedings in accordance with law may be initiated against you
without making any further reference to you in this regard.

Signature
Name
Designation



Detailed Agenda Notes - Agenda for 17th GSTCM
Page 78 of 163
Form GST ASMT - 11
[See rule ----]

Reply to the notice issued under section 61 intimating discrepancies in the return

1. GSTIN
2. Name
3. Details of the notice Reference No. Date
4. Tax Period
5. Reply to the discrepancies
Sr. No. Discrepancy Reply

6. Amount admitted and paid, if any -
Act Tax Interest Others Total


7. Verification-
I ________________________________________ hereby solemnly affirm and declare that the
information given hereinabove is true and correct to the best of my knowledge and belief and
nothing has been concealed therefrom.
Signature of Authorized Signatory
Name
Designation / Status -------
Date –


Detailed Agenda Notes - Agenda for 17th GSTCM
Page 79 of 163
Form GST ASMT–12
[See rule ----]
Reference No.: Date:

To
GSTIN
Name
Address

Tax period - F.Y. -
ARN - Date -

Order of acceptance of reply against the notice issued under section 61

This has reference to your reply dated ------- in response to the notice issued vide reference no. -
--------- dated --- . Your reply has been found to be satisfactory and no further action is required
to be taken in the matter.



Signature
Name
Designation




Detailed Agenda Notes - Agenda for 17th GSTCM
Page 80 of 163
Form GST ASMT - 13
[See rule ---- ]
Reference No.: Date:
To_____________
GSTIN -
Name -
Address -
Tax Period - F.Y. – Return Type -
Notice Reference No.- Date -
Assessment order under section 62
Preamble - << standard >>
The notice referred to above was issued to you under section 46 of the Act for failure to furnish
the return for the said tax period. From the records available with the department, it has been
noticed that you have not furnished the said return till date.
Therefore, on the basis of information available with the department, the amount assessed and
payable by you is as under:
Introduction
Submissions, if any
Discussions and Findings
Conclusion
Amount assessed and payable (Details at Annexure):
(Amount in Rs.)



Please note that interest has been calculated upto the date of passing the order. While making
payment, interest for the period between the date of order and the date of payment shall also be
worked out and paid along with the dues stated in the order.
You are also informed that if you furnish the return within a period of 30 days from the date of
service of this order, the order shall be deemed to have been withdrawn; otherwise, proceedings
shall be initiated against you after the aforesaid period to recover the outstanding dues.
Signature
Name
Designation
Sr.
No.
Tax Period Act Tax Interest Penalty Others Total
1 2 3 4 5 6 7 8


Total
Detailed Agenda Notes - Agenda for 17th GSTCM
Page 81 of 163
Form GST ASM - 14
[See rule ----]

Reference No: Date:

To___________
Name
Address

Tax Period -- F.Y. -------

Show Cause Notice for assessment under section 63

It has come to my notice that you/your company/firm, though liable to be registered under section
------ of the Act, have/has failed to obtain registration and failed to discharge the tax and other
liabilities under the said Act as per the details given below:
Brief Facts –
Grounds –
Conclusion -
OR
It has come to my notice that your registration has been cancelled under sub-section (2) of section
29 with effect from ------ and that you are liable to pay tax for the above mentioned period.

Therefore, you are hereby directed to show cause as to why a tax liability along with interest not
be created against you for conducting business without registration despite being liable for
registration and why penalty should not be imposed for violation of the provisions of the Act or
the rules made thereunder.
In this connection, you are directed to appear before the undersigned on --------- (date) at -------
(time)


Signature
Name
Designation



Detailed Agenda Notes - Agenda for 17th GSTCM
Page 82 of 163
Form GST ASM - 15
[See rule ----]
Reference No.: Date:
To
Temporary ID
Name
Address
Tax Period - F.Y. –
SCN reference no. - Date -
Assessment order under section 63
Preamble - << standard >>
The notice referred to above was issued to you to explain the reasons for continuing to conduct
business as an un-registered person, despite being liable to be registered under the Act.
OR
The notice referred to above was issued to you to explain the reasons as to why you should not
pay tax for the period …………. as your registration has been cancelled under sub-section (2) of
section 29 with effect from------------
Whereas, no reply was filed by you or your reply was duly considered during proceedings held
on --------- date(s).
On the basis of information available with the department / record produced during proceedings,
the amount assessed and payable by you is as under:
Introduction
Submissions, if any
Conclusion (to drop proceedings or to create demand)
Amount assessed and payable:- (details at Annexure)
(Amount in Rs.)
Sr
No.
Tax
Period
Act Tax Interest Penalty Others Total
1 2 3 4 5 6 7 8

Total
Please note that interest has been calculated upto the date of passing the order. While making
payment, interest for the period between the date of order and the date of payment shall also be
worked out and paid along with the dues stated in the order.
You are hereby directed to make the payment by << date >> failing which proceedings shall be
initiated against you to recover the outstanding dues.

Signature
Name
Detailed Agenda Notes - Agenda for 17th GSTCM
Page 83 of 163
Form GST ASM - 16
[See rule ----]
Reference No.: Date:
To
GSTIN/ID
Name
Address
Tax Period - F.Y. –
Assessment order under section 64
Preamble - << standard >>
It has come to my notice that un-accounted for goods are lying in stock at godown ----------
(address) or in a vehicle stationed at -------------- (address & vehicle detail) and you were not
able to, account for these goods or produce any document showing the detail of the goods.
Therefore, I proceed to assess the tax due on such goods as under:
Introduction
Discussion & finding
Conclusion
Amount assessed and payable (details at Annexure)
(Amount in Rs.)
Sr. No. Tax
Period
Act Tax Interest,
if any
Penalty Others Total
1 2 3 4 5 6 7 8

Total
Please note that interest has been calculated upto the date of passing the order. While making
payment, interest for the period between the date of order and the date of payment shall also be
worked out and paid along with the dues stated in the order.
You are hereby directed to make the payment by << date >> failing which proceedings shall be
initiated against you to recover the outstanding dues.

Signature
Name
Detailed Agenda Notes - Agenda for 17th GSTCM
Page 84 of 163
Form GST ASM – 17
[See rule ----]

Application for withdrawal of assessment order issued under section 64

1. GSTIN /ID
2. Name
3. Details of the order Reference No. Date of issue of order
4. Tax Period, if any
5. Grounds for withdrawal





6. Verification-
I ________________________________________ hereby solemnly affirm and declare that the
information given hereinabove is true and correct to the best of my knowledge and belief and
nothing has been concealed therefrom.
Signature of Authorized Signatory
Name ___________
Designation / Status -------
Date -



Detailed Agenda Notes - Agenda for 17th GSTCM
Page 85 of 163
Form GST ASM - 18
[See rule ----]

Reference No.: Date:

GSTIN/ID
Name
Address

ARN - Date –
Acceptance or Rejection of application filed under section 64 (2)

The reply furnished by you vide application referred to above has been considered and found to
be in order and the assessment order no. ---------- dated ----------- stands withdrawn.
OR
The reply furnished by you vide application referred above has not been found to be in order for
the following reasons:

<<Text box>>
Therefore, the application filed by you for withdrawal of the order is hereby rejected.

Signature
Name
Designation






Detailed Agenda Notes - Agenda for 17th GSTCM
Page 86 of 163







DRAFT
GOODS AND SERVICES TAX RULES, 2017
AUDIT FORMS

Detailed Agenda Notes - Agenda for 17th GSTCM
Page 87 of 163
Form GST ADT - 01

[See rule ………………]


Reference No.: Date:

To,
--------------------------
GSTIN …………………………………….
Name ………………………………………
Address ……………………………………

Period - F.Y.(s) - ……………………………..
Notice for conducting audit

Whereas it has been decided to undertake audit of your books of account and records for the
financial year(s) ……….. to ……….. in accordance with the provisions of section 65. I propose
to conduct the said audit at my office/at your place of business on -------.

And whereas you are required to:-
(i) afford the undersigned the necessary facility to verify the books of account and records or
other documents as may be required in this context, and
(ii) furnish such information as may be required and render assistance for timely completion of
the audit.

You are hereby directed to attend in person or through an authorised representative on
………………….. (date) at……………………………(place) before the undersigned and to
produce your books of account and records for the aforesaid financial year(s) as required for
audit.

In case of failure to comply with this notice, it would be presumed that you are not in possession
of such books of account and proceedings as deemed fit may be initiated as per the provisions of
the Act and the rules made thereunder against you without making any further correspondence
in this regard.

Signature …
Name ……………………………
Designation ……………………….




Detailed Agenda Notes - Agenda for 17th GSTCM
Page 88 of 163
Form GST ADT – 02
[See rule ……………………………]

Reference No.: Date:

To,
--------------------------
GSTIN ………………………………..
Name ……………………………………
Address ………………………………….

Audit Report No. ……….. dated ……..
Audit Report under section 65(6)

Your books of account and records for the F.Y.…………… has been examined and this Audit
Report is prepared on the basis of information available / documents furnished by you and the
findings are as under:

Short payment
of
Integrated tax Central tax
State /Union
territory tax
Cess
Tax
Interest
Any other
amount


[Upload pdf file containing audit observation]

You are directed to discharge your statutory liabilities in this regard as per the provisions of the
Act and the rules made thereunder, failing which proceedings as deemed fit may be initiated
against you under the provisions of the Act.

Signature ………………………….
Name ……………………………..
Designation ……………………….




Detailed Agenda Notes - Agenda for 17th GSTCM
Page 89 of 163
Form GST ADT - 03
[See rule ………………]

Reference No.: Date:

To,
----------------------------------------------------
GSTIN …………………………………….
Name ………………………………………
Address ……………………………………

Tax period - F.Y.(s) - ……………………………..
Communication to the registered person for conduct of special audit under section 66

Whereas the proceedings of scrutiny of return /enquiry/investigation/…….. are going on;

And whereas it is felt necessary to get your books of account and records examined and audited
by ………………………………(name), chartered accountant / cost accountant nominated by
the Commissioner;

You are hereby directed to get your books of account and records audited by the said chartered
accountant / cost accountant.



Signature ………………..
Name ……………………………
Designation ……………………….
















Detailed Agenda Notes - Agenda for 17th GSTCM
Page 90 of 163
Form GST ADT – 04
[See rule ……………………………]

Reference No.: Date:

To,
------------------------------------------------
GSTIN ………………………………..
Name ……………………………………
Address ………………………………….
Information of Findings upon Special Audit
Your books of account and records for the F.Y.…………… has been examined by ---------------
(chartered accountant/cost accountant) and this Audit Report is prepared on the basis of
information available / documents furnished by you and the findings/discrepancies are as under:

Short payment
of
Integrated tax Central tax
State /Union
territory tax
Cess
Tax
Interest
Any other
amount


[Upload pdf file containing audit observation]

You are directed to discharge your statutory liabilities in this regard as per the provisions of the
Act and the rules made thereunder, failing which proceedings as deemed fit may be initiated
against you under the provisions of the Act.

Signature ………………………….
Name ……………………………..
Designation ……………………….


Detailed Agenda Notes - Agenda for 17th GSTCM
Page 91 of 163
iv. E-Way Bill Rules
1. Information to be furnished prior to commencement of movement of goods and generation
of e-way bill
(1) Every registered person who causes movement of goods of consignment value exceeding fifty
thousand rupees—
(i) in relation to a supply; or
(ii) for reasons other than supply; or
(iii) due to inward supply from an unregistered person,
shall, before commencement of movement, furnish information relating to the said goods in Part A of
FORM GST INS-06, electronically, on the common portal and
(a) where the goods are transported by the registered person as a consignor or the recipient
of supply as the consignee, whether in his own conveyance or a hired one or by railways or by
air or by vessel, the said person or the recipient may generate the e-way bill in FORM GST INS-
06electronically on the common portal after furnishing information in Part B of FORM GST
INS-06; or
(b) where the e-way bill is not generated under clause (a) and the goods are handed over to
a transporter for transportation by road, the registered person shall furnish the information relating
to the transporter in Part B of FORM GST INS-06 on the common portal and the e-way bill
shall be generated by the transporter on the said portal on the basis of the information furnished
by the registered person in Part A of FORM GST INS-06:
Provided that the registered person or, as the case may be, the transporter may, at his option,
generate and carry the e-way bill even if the value of the consignment is less than fifty thousand rupees:
Provided further that where the movement is caused by an unregistered person either in his own
conveyance or a hired one or through a transporter, he or the transporter may, at their option, generate the
e-way bill in FORM GST INS-06on the common portal in the manner prescribed in this rule:
Provided also that where the goods are transported for a distance of less than ten kilometers from
the place of business of the supplier to the place of business of the transporter for further transportation,
the supplier or the transporter may not furnish the details of conveyance in Part B of FORM GST INS-
06.
Explanation 1.– For the purposes of this sub-rule, where the goods are supplied by an unregistered
supplier to a recipient who is registered, the movement shall be said to be caused by such recipient if the
recipient is known at the time of commencement of movement of goods.
Explanation 2.- The information in Part A of FORM GST INS-06 shall be furnished by the
consignor or the recipient of the supply as consignee where the goods are being transported by railways
or by air or by vessel.
(2) Upon generation of the e-way bill on the common portal, a unique e-way bill number (EBN) shall
be made available to the supplier, the recipient and the transporter on the common portal.
(3) Any transporter transferring goods from one conveyance to another in the course of transit shall,
before such transfer and further movement of goods, update the details of conveyance in the e-way bill
on the common portal in FORM GST INS-06;
Provided that where the goods are transported for a distance of less than ten kilometers from the
place of business of the transporter finally to the place of business of the recipient, the details of
conveyance may not be updated in the e-way bill.
Detailed Agenda Notes - Agenda for 17th GSTCM
Page 92 of 163

(4) After the e-way bill has been generated in accordance with the provisions of sub-rule (1), where
multiple consignments are intended to be transported in one conveyance, the transporter may indicate the
serial number of e-way bills generated in respect of each such consignment electronically on the common
portal and a consolidated e-way bill in FORM GST INS-07 maybe generated by him on the common
portal prior to the movement of goods.
(5) Where the consignor or the consignee has not generated FORM GST INS-06 in accordance with
provisions of sub-rule (1) and the value of goods carried in the conveyance is more than fifty thousand
rupees, the transporter shall generate FORM GSTINS-06 on the basis of invoice or bill of supply or
delivery challan, as the case may be, and may also generate a consolidated e-way bill in FORM GST
INS-07on the common portal prior to the movement of goods.
(6) The information furnished in Part A of FORM GST INS-06shall be made available to the
registered supplier on the common portal who may utilize the same for furnishing details in FORM
GSTR-1:
Provided that when information has been furnished by an unregistered supplier in FORM GST
INS-06, he shall be informed electronically, if the mobile number or the e mail is available.
(7) Where an e-way bill has been generated under this rule, but goods are either not being transported
or are not being transported as per the details furnished in the e-way bill, the e-way bill may be cancelled
electronically on the common portal, either directly or through a Facilitation Centre notified by the
Commissioner, within 24 hours of generation of the e-way bill:
Provided that an e-way bill cannot be cancelled if it has been verified in transit in accordance
with the provisions of rule 3.

(8) An e-way bill or a consolidated e-way bill generated under this rule shall be valid for the period
as mentioned in column (3) of the Table below from the relevant date, for the distance the goods have to
be transported, as mentioned in column (2):



Table
Sr. no. Distance Validity period
(1) (2) (3)
1. Less than 100 km One day
2. 100 km or more but less than 300km Three days
3. 300 km or more but less than 500km Five days
4. 500 km or more but less than 1000km Ten days
5. 1000 km or more Twenty days

Provided that the Commissioner may, by notification, extend the validity period of e-way bill for
certain categories of goods as may be specified therein:
Detailed Agenda Notes - Agenda for 17th GSTCM
Page 93 of 163
Provided further that where, under circumstances of an exceptional nature, the goods cannot be
transported within the validity period of e-way bill the transporter may generate another e-way bill after
updating the details in Part B of FORM GSTINS-06.
Explanation.—For the purposes of this rule, the “relevant date” shall mean the date on which the e-way
bill has been generated and the period of validity shall be counted from the time at which the e-way bill
has been generated and each day shall be counted as twenty-four hours.
(9) The details of e-way bill generated under sub-rule (1) shall be made available to the recipient, if
registered, on the common portal, who shall communicate his acceptance or rejection of the consignment
covered by the e-way bill.
(10) Where the recipient referred to in sub-rule (9) does not communicate his acceptance or rejection
within seventy-two hours of the details being made available to him on the common portal, it shall be
deemed that he has accepted the said details.
(11) The e-way bill generated under rule 1 of the CGST rules or GST rules of any other State or Union
territory shall be valid in the State or Union territory.
(12) Notwithstanding anything contained in this rule, no e-way bill is required to be generated where—
(a) the goods being transported are specified in Annexure 1;
(b) the goods are being transported by a non-motorized conveyance; and
(c) the goods are being transported from the port, airport, air cargo complex and land customs
station to an inland container depot or a container freight station for clearance by Customs.
Explanation. - The facility of generation and cancellation of e-way bill may also be made available
through SMS.

2. Documents and devices to be carried by a person-in-charge of a conveyance
(1) The person in charge of a conveyance shall carry—
(a) the invoice or bill of supply or delivery challan, as the case may be; and
(b) a copy of the e-way bill or the e-way bill number, either physically or mapped to a Radio
Frequency Identification Device (RFID) embedded on to the conveyance in such manner as may
be notified by the Commissioner.
(2) A registered person may obtain an Invoice Reference Number from the common portal by
uploading, on the said portal, a tax invoice issued by him in FORM GST INV-1, and produce the same
for verification by the proper officer in lieu of the tax invoice and such number shall be valid for a period
of thirty days from the date of uploading.
(3) Where the registered person uploads the invoice under sub-rule (1), the information in Part A of
FORM GST INS-06 shall be auto-populated by the common portal on the basis of the information
furnished in FORM GST INV-1.
(4) The Commissioner may, by notification, require a class of transporters to obtain a unique RFID
and get the said device embedded on to the conveyance and map the e-way bill to the RFID prior to the
movement of goods:
(5) Notwithstanding anything contained in clause (b) of sub-rule (1), where circumstances so warrant,
the Commissioner may, by notification, require the person-in-charge of conveyance to carry the following
documents instead of the e-way bill:
(a) tax invoice or bill of supply or bill of entry; or
Detailed Agenda Notes - Agenda for 17th GSTCM
Page 94 of 163
(b) a delivery challan, where the goods are transported other than by way of supply.

3. Verification of documents and conveyances
(1) The Commissioner or an officer empowered by him in this behalf may authorise the proper officer to
intercept any conveyance to verify the e-way bill or the e-way bill number in physical form for all inter-
State and intra-State movement of goods.
(2) The Commissioner shall get RFID readers installed at places where verification of movement of goods
is required to be carried out and verification of movement of vehicles shall be done through such RFID
readers where the e-way bill has been mapped with RFID.
(3) Physical verification of conveyances shall be carried out by the proper officer as authorized by the
Commissioner or an officer empowered by him in this behalf:
Provided that on receipt of specific information of evasion of tax, physical verification of a
specific conveyance can also be carried out by any officer after obtaining necessary approval of the
Commissioner or an officer authorized by him in this behalf.

4. Inspection and verification of goods
(1) A summary report of every inspection of goods in transit shall be recorded online by the proper
officer in Part A of FORM GST INS- 08within twenty-four hours of inspection and the final report in
Part B of FORMGST INS- 08shall be recorded within three days of the inspection.
(2) Where the physical verification of goods being transported on any conveyance has been done
during transit at one place within the State or in any other State, no further physical verification of the
said conveyance shall be carried out again in the State, unless specific information relating to evasion of
tax is made available subsequently.

5. Facility for uploading information regarding detention of vehicle
Where a vehicle has been intercepted and detained for a period exceeding thirty minutes, the transporter
may upload the said information in FORM GST INS-09 on the common portal.

Detailed Agenda Notes - Agenda for 17th GSTCM
Page 95 of 163
Annexure 1
List of exempted items under GST (exempted from the provisions of E-Way Bill)
1. Live animals and live poultry, ducks, geese and guinea fowls (Chapter 1)
2. Meat and edible offal, fresh or chilled (Chapter 2)
3. Fish, crustaceans, molluscs and other aquatic invertebrates, fresh or chilled; live fish (Chapter
3)
4. Fresh milk, other than UTH milk, and cream (0401)
5. Eggs (0407)
6. Human hair, unworked, whether or not washed or scoured; waste of human hair (0501)
7. Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage (Chapter
6)
8. Edible vegetables, roots and tubers, fresh or chilled; sago pith (Chapter 7)
9. Coconuts, fresh or dried (0801); bananas, including plantains, fresh or dried (0803); all other
edible fruit and nuts, fresh (Chapter 8); and peel of citrus fruit or melons, fresh (Chapter 8)
10. Dried leguminous vegetables, shelled, whether or not skinned or split, other than those put up in
unit containers under a registered brand name
11. Cereals, other than those put up in unit containers under a registered brand name
12. Atta, besan, suji, dalia and maida, other than those put up in unit containers under a registered
brand name
13. Liquefied petroleum gas for supply to household and non domestic exempted category (NDEC)
customers
14. Kerosene oil sold under PDS
15. Aquatic feed, poultry feed and cattle feed including grass, hay, straw and husks of cereals and
pulses (Chapter 23)
16. Salt, all types (Chapter 2501)
17. Human blood (3002)
18. All types of contraceptives (3006); condoms and contraceptives (4014)
19. Organic manure, other than those sold in unit containers under a registered brand name
20. Books (4901), newspapers, journals; and periodicals (4902); children’s picture, drawing or
colouring books (4903)
21. Kumkum, bindi, alta and sindoor, kajal (other than kajal pencil sticks) [3304]
22. Puffed rice (Muri), flattened or beaten rice (chiura) parched rice, commonly known as khoi,
parched paddy or rice coated with sugar or gur, commonly known as Murki [1904]
23. Pappad (1905)
24. Earthen pot and clay lamps (6912)
25. Spacecraft (including satellites) and suborbital and spacecraft launch vehicles and parts and
components thereof
26. Postal baggage transported by Department of Posts
27. Natural or cultured pearls and precious or semi-precious stones; precious metals and metals clad
with precious metal (Chapter 71)
28. Jewellery, goldsmiths’ and silversmiths’ wares and other articles (Chapter 71)
29. Currency
30. Used personal and household effects

Detailed Agenda Notes - Agenda for 17th GSTCM
Page 96 of 163
Annexure 2
(This Annexure is NOT part of the e-Way Bill Rules. It is being included for information only)
List of exempted items under GST (not exempted from the provisions of E-Way Bill)
S.
No.
Chapter /
Heading /
Sub-heading /
Tariff item
Description of Goods
1. 0201 to 0209 Meat, other than in frozen state and put up in unit containers
2. 0209 Pig fat, free of lean meat, and poultry fat, not rendered or otherwise extracted, salted,
in brine, dried or smoked, other than put up in unit containers
3. 0210 Meat and edible meat offal, salted, in brine, dried or smoked; edible flours and meals
of meat or meat offal, other than put up in unit containers
4. 3 Fish seeds, prawn / shrimp seeds whether or not processed, cured or in frozen state
5. 0403 Curd; Lassi; Butter milk
6. 0409 Natural honey, other than put up in unit container and bearing a registered brand
name
7. 0506 All goods i.e. Bones and horn-cores, unworked, defatted, simply prepared (but not
cut to shape), treated with acid or gelatinised; powder and waste of these products
8. 0507 90 All goods i.e. Hoof meal; horn meal; hooves, claws, nails and beaks; antlers; etc.
9. 0511 Semen including frozen semen
10. 0712 Dried vegetables, whole, cut, sliced, broken or in powder, but not further prepared
11. 9 All goods of seed quality
12. 0901 Coffee beans, not roasted
13. 0902 Unprocessed green leaves of tea
14. 0910 11 10 Fresh ginger, other than in processed form
15. 0910 30 10 Fresh turmeric, other than in processed form
16. 1102 Flour [other than those put up in unit container and bearing a registered brand name]
17. 1103 Cereal groats, meal and pellets, other than those put up in unit container and bearing
a registered brand name
18. 1104 Cereal grains hulled
19. 1105, 1106 Flour [other than those put up in unit container and bearing a registered brand name]
20. 12 All goods of seed quality
21. 1301 Lac and Shellac

22. 1404 90 40 Betel leaves
23. 1701 Cane jaggery (gur)
24. 1702 Palmyra jaggery
25. 1905 Bread (branded or otherwise), except when served for consumption and pizza bread
26. 2106 Prasadam supplied by religious places like temples, mosques, churches, gurudwaras,
dargahs, etc.
27. 2201 Water [other than aerated, mineral, purified, distilled, medicinal, ionic, battery, de-
mineralized and water sold in sealed container]
28. 2201 Non-alcoholic Toddy, Neera
29. 2202 90 90 Tender coconut water other than put up in unit container and bearing a registered
brand name
30. Chapter 23 Concentrates & additives, wheat bran & de-oiled cake
31. 3825 Municipal waste, sewage sludge, clinical waste
32. 3926 Plastic bangles
33. 4401 Firewood or fuel wood
34. 4402 Wood charcoal (including shell or nut charcoal), whether or not agglomerated
35. 4802 / 4907 Judicial, Non-judicial stamp papers, Court fee stamps when sold by the Government
Treasuries or Vendors authorized by the Government
36. 4817 / 4907 Postal items, like envelope, Post card etc., sold by Government
37. 48 / 4907 Rupee notes when sold to the Reserve Bank of India
Detailed Agenda Notes - Agenda for 17th GSTCM
Page 97 of 163
S.
No.
Chapter /
Heading /
Sub-heading /
Tariff item
Description of Goods
38. 4907 Cheques, lose or in book form
39. 4905 Maps and hydrographic or similar charts of all kinds, including atlases, wall maps,
topographical plans and globes, printed
40. 5001 Silkworm laying, cocoon
41. 5002 Raw silk
42. 5003 Silk waste
43. 5101 Wool, not carded or combed
44. 5102 Fine or coarse animal hair, not carded or combed
45. 5103 Waste of wool or of fine or coarse animal hair
46. 52 Gandhi Topi
47. 52 Khadi yarn
48. 5303 Jute fibres, raw or processed but not spun
49. 5305 Coconut, coir fibre
50. 63 Indian National Flag
51. 6703 Human hair, dressed, thinned, bleached or otherwise worked
52. 7018 Bangles (except those made from precious metals)
53. 8201

Agricultural implements manually operated or animal driven i.e. Hand tools, such as
spades, shovels, mattocks, picks, hoes, forks and rakes; axes, bill hooks and similar
hewing tools; secateurs and pruners of any kind; scythes, sickles, hay knives, hedge
shears, timber wedges and other tools of a kind used in agriculture, horticulture or
forestry.
54. 8445 Amber charkha
55. 8803 Parts of goods of heading 8801
56. 9021 Hearing aids
57. 92 Indigenous handmade musical instruments
58. 9603 Muddhas made of sarkanda and phool bahari jhadoo
59. 9609 Slate pencils and chalk sticks
60. 9610 00 00 Slates
61. 9803 Passenger baggage


Detailed Agenda Notes - Agenda for 17th GSTCM
Page 98 of 163
FORM GST INS-06
(See Rule__)
E-Way Bill
PART-A
A.1 GSTIN of Recipient
A.2 Place of Delivery
A.3 Invoice/Challan Number
A.4 Invoice/Challan Date
A.5 Value of Goods
A.6 HSN Code
A.7 Reason for Transportation
A.8 Transport Document Number
PART-B
B. Vehicle Number
Notes:
1. HSN Code in column A.6 shall be indicated at minimum four digit.
2. Transport Document number indicates Goods Receipt Number/ Railway Receipt
Number/ Airway Bill Number/ Bill of Lading Number.
3. Place of Delivery shall indicate the PIN Code of place of delivery.
4. Reason for Transportation shall be chosen from one of the following:

Code Description
1 Supply
2 Export/Import
3 Job Work
4 SKD/CKD
5 Recipient not known
6 Sales Return
7 For own use
0 Others
FORM GST INS-07
(See Rule__)
Consolidated E-Way Bill
Number of E-Way Bills
E-Way Bill Number





Detailed Agenda Notes - Agenda for 17th GSTCM
Page 99 of 163
FORM GST INS-08
(See Rule__)
Verification Report
Part A
Name of the Officer
Place of inspection
Time of inspection
Vehicle Number
E-Way Bill Number
Invoice/Challan/Bill Date
Invoice/Challan/Bill Number
Name of person in-charge of vehicle
Description of goods
Declared quantity of goods
Declared value of goods
Brief description of the discrepancy
Whether goods were detained?
If yes, date and time of release of vehicle
Part B
Actual quantity of goods
Actual value of the Goods
Tax payable
Integrated tax
Central tax
State/UT tax
Cess
Penalty payable
Integrated tax
Central tax
State/UT tax
Cess
Details of Notice
Date
Number
Summary of findings
Detailed Agenda Notes - Agenda for 17th GSTCM
Page 100 of 163
FORM GST INS-09
(See Rule__)
Report of detention
E-Way Bill Number
Approximate Location
of detention

Period of detention
Name of Officer in-
charge
(if known)
Date
Time


Detailed Agenda Notes - Agenda for 17th GSTCM
Page 101 of 163
Form GST INV – 1
(See Rule --------)

Generation of Invoice Reference Number
[Invoice Reference no. -- Date --]
1. GSTIN
2. Legal Name
3. Trade name, if any
4. Address
5. Serial No. of Invoice
6. Date of Invoice
Details of Recipient (Billed to)
Name
Address
State (name & code)
GSTIN/Unique ID/Temp. ID, if available
Type of supply –
(i) Supplies attracting reverse charge
(ii) Supplies made through e-commerce attracting TCS
(iii) B to B supplies (including UIN holders)
[other than (i) & (ii)]
(iv) B to C supplies
(v) Export
(vi) Supplies made to SEZ
(vii) Deemed export
Details of Consignee (Shipped to)
Name
Address
State (name & code)
GSTIN/Unique ID/ Temp. ID, if available

Detailed Agenda Notes - Agenda for 17th GSTCM
Page 102 of 163

Sr.
No
.
Description
of Goods
HS
N
Qty. Uni
t
Price
(per
unit)
Tota
l
valu
e
Discoun
t, if any
Taxabl
e value
CGST SGST IGST Cess
Rate Amt. Rate Amt. Rate A
mt
.
Ra
te
A
mt
.

Freight
Insurance
Packing and Forwarding Charges etc.


Total
Total Invoice Value (In figure)
Total Invoice Value (In Words)






Signature

Name of the Signatory
Designation / Status

Detailed Agenda Notes - Agenda for 17th GSTCM
Page 103 of 163

v. Anti-profiteering Rules
In exercise of the powers conferred by section 164 read with section 171 of the Central Goods and
Services Tax Act, 2017(12 of 2017) the Central Government hereby makes the following rules, namely:

1. Short title, extent and commencement.-
(1) These rules may be called the Anti-profiteering Rules, 2017.
(2) They extend to the whole of India except the State of Jammu and Kashmir.
(3) They shall come into force on the date of their publication in the Official gazette.
2. Definitions.-
In these rules, unless the context otherwise requires,-
(a) “Act” means the Central Goods and Services Tax Act, 2017;
(b) “Committee” means Standing Committee on Anti-profiteering constituted by the Council in
terms of rule 4 of these rules.
(c) “Authority” means the National Anti-profiteering Authority constituted under rule 3;
(d) “Interested party” includes-
(i) suppliers of goods or services under the proceedings; and
(ii) recipients of goods or services under the proceedings;

(e) Words and expressions used and not defined herein but defined in the Act, shall have the same
meaning respectively, assigned to them, in the Act.
3. Constitution of the Authority.- The Authority shall consist of
(a) a Chairman who is or has been—
(i) a judge of any High Court, or
(ii) a member of the Indian Legal Service and has held a post not less than Additional
Secretary for three years;
(b) two Members Technical (Centre) who are or have been Commissioners of central tax to be
nominated by the Board;
(c) two Members Technical (State) who are or have been Commissioners of State tax to be
nominated by the Council; and
(b) four Technical Members who are or have been Commissioners of State tax or central tax to
be nominated by the Council.
4. Constitution of the Standing Committee:-
(1) The Council may constitute a Standing Committee on Anti-profiteering.
(2) The Committee shall consist of such officers of the State Government and Central
Government as may be nominated by the [Council]/[Board].
5. Appointment, salary, allowances and other terms and conditions of service of the
Chairman and Members of the Authority:-
(1) The Chairman and Members of the Authority shall be appointed by the Central
Government on the recommendations of a Selection Committee to be constituted for
the purpose by the [Council]/[Board].
Detailed Agenda Notes - Agenda for 17th GSTCM
Page 104 of 163

(2) The Chairman shall be paid a monthly salary of Rs. 2,25,000 (fixed) and other
allowances and benefits as are admissible to a Central Government officer holding
posts carrying the same pay.
(3) The Technical Member shall be paid a monthly salary of Rs. 2,05,400 (fixed) and shall
be entitled to draw allowances as are admissible to a Government of India officer
holding Group ‘A’ post carrying the same pay. Where a retired officer is selected as a
Technical Member, he shall be paid a monthly salary of Rs. 2,05,400 reduced by the
amount of pension.
(4) The Chairman shall hold office for a term of three years from the date on which he
enters upon his office, or until he attains the age of sixty-seven years, whichever is
earlier and shall be eligible for reappointment. A person shall not be selected as the
Chairman if he has attained the age of sixty-four years.
(5) The Technical Member of the Authority shall hold office for a term of three years from
the date on which he enters upon his office, or until he attains the age of sixty-five
years, whichever is earlier and shall be eligible for reappointment. A person shall not
be selected as a Technical Member if he has attained the age of sixty-two years.
6. Secretary to Authority
The Additional Director General of Safeguards under the Board shall be the Secretary to the
Authority.
7. Power to determine the methodology and procedure:-
The Authority may determine the methodology and procedure for determination as to whether
the reduction in rate of tax on the supply of goods or services or the benefit of input tax credit
has been passed on by the registered person to the recipient by way of commensurate reduction
in prices.
8. Duties of the Authority- It shall be the duty of the Authority:-
(1) to determine whether any reduction in rate of tax on any supply of goods or services or
the benefit of the input tax credit has been passed on to the recipient by way of
commensurate reduction in prices;
(2) to identify the registered person who has not passed on the benefit of reduction
in rate of tax on supply of goods or services or the benefit of input tax credit to the
recipient by way of commensurate reduction in prices;
(3) to order,
(a) reduction in prices;
(b) return to the recipient, an amount equivalent to the amount not
passed on by way of commensurate reduction in prices along with
interest at the rate of eighteen percent from the date of collection of
higher amount till the date of return ; or
(c) recovery of the amount not returned under clause (b), in case the
person eligible for return is not available and depositing the same in
the Fund referred to in section 57.

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9. Examination of application by the Standing Committee Initiation of proceedings:-
(1) Save as provided in sub-rule (4), The Authority Standing Committee shall, on receipt
of a written application, in such form and manner as may be specified by it, from an
interested party or from a Commissioner or any other person, examine the accuracy and
adequacy of the evidence provided in the application initiate proceedings to determine
whether any reduction in rate of tax on any supply of goods or services or the benefit of
the input tax credit has been passed on to the recipient by way of commensurate
reduction in prices.
An application under sub-rule (1) shall be in such form as may be specified by the
Authority in this behalf and such application shall be supported by there is prima-facie
evidence to support the claim of the applicant that a reduction in rate of tax on any
supply of goods or services or the benefit of input tax credit has not been passed on to
the recipient by way of commensurate reduction in prices.
b. The Authority Standing Committee shall not initiate the proceedings pursuant
to an application under sub-rule (1) unless it examines the accuracy and
adequacy of the evidence provided in the application and satisfies itself that
there is a prima-facie evidence showing that the supplier has not passed on
benefit of reduction in rate of tax on the supply of goods or services or the
benefit of input tax credit to the recipient by way of commensurate reduction
in prices.
(2) Notwithstanding anything contained in sub-rule (1), the Authority may initiate
proceedings suomotu if it is satisfied, based on any information received from a
Commissioner or any other source, that sufficient evidence exists as referred to in
sub-rule (3) for initiation of proceedings.

10. Initiation and principles governing the proceedings:-
(1) Where the Standing Committee is satisfied that there is a prima-facie evidence to show
that the supplier has not passed on the benefit of reduction in rate of tax on the supply
of goods or services or the benefit of input tax credit to the recipient by way of
commensurate reduction in prices, it shall refer the matter to Directorate General of
Safeguards for a detailed investigation.
(2) The Directorate General of Safeguards shall conduct investigation and collect evidence
necessary to determine whether any reduction in rate of tax on any supply of goods or
services or the benefit of the input tax credit has been passed on to the recipient by way
of commensurate reduction in prices.
(3) The Directorate General of Safeguards shall, before initiation of investigation, shall
after it has decided to initiate the proceedings, issue a notice to the interested parties
containing, inter alia, adequate information on the following, namely:-
(a) the description of the goods or services in respect of which the proceedings have been
initiated;
(b) summary of statement of facts on which the allegations are based;
(c) the time limit allowed to the interested parties and other persons who may have
information related to the proceedings for furnishing their reply.
(4) The Directorate General of Safeguards may also issue notices to such other persons as
deemed fit for fair enquiry into the matter.
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(1) The Authority may require the Directorate General of Safeguards to conduct
investigation and collect evidence necessary to determine whether any reduction in rate
of tax on any supply of goods or services or the benefit of the input tax credit has been
passed on to the recipient by way of commensurate reduction in prices.
(5) The Directorate General of Safeguards may issue a notice calling for any information
in such form as may be specified by it from the suppliers or recipients of goods or
services covered under the proceedings or any person who may have information
related to the proceedings initiated and such information shall be furnished by such
persons in writing within fifteen days from the date of receipt of the notice or within
such extended period not exceeding further fifteen days as the Directorate may allow
on sufficient cause being shown.
(6) The Directorate General of Safeguards shall make available the evidence presented to
it by one interested party to the other interested parties, participating in the proceedings.
(7) The Directorate General of Safeguards shall complete the investigation within a period
of three months of receipt of reference from the Standing Committee or within such
extended period not exceeding a further period of three months for reasons to be
recorded in writing as allowed by the Standing Committee and, upon completion of the
investigation, furnish to the Authority a report of its findings, along with the relevant
records.
11. Confidentiality of Information:-
(1) Notwithstanding anything contained in sub-rules (3), (5) and (5) of rule 10 and sub-
rule (2) of rule 14 15, the provisions of section 11 of the Right to Information Act, 2005
shall apply mutatis mutandis to the disclosure of any information which is provided on
a confidential basis.
(2) The Directorate General of Safeguards may require the parties providing information
on confidential basis to furnish non-confidential summary thereof and if, in the opinion
of the party providing such information, such information cannot be summarised, such
party may submit to the Authority Directorate General of Safeguards a statement of
reasons why summarisation is not possible.


12. Cooperation with other agencies or statutory authorities:-
Where the Directorate General of Safeguards deems fit, it may seek opinion of any other agency
or statutory authorities in discharge of its duties.
13. Power to summon persons to give evidence and produce documents:-
(1) The Director General of Safeguards shall be deemed to be the proper officer to exercise
power to summon any person whose attendance he considers necessary either to give
evidence or to produce a document or any other thing under section 70 and shall have
power in any inquiry in the same manner, as provided in the case of a civil court under
the provisions of the Code of Civil Procedure, 1908(5 of 1908).
(2) Every such inquiry referred to in sub-rule (1) shall be deemed to be a “judicial
proceedings” within the meaning of section 193 and section 228 of the Indian Penal
Code (45 of 1860).

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14. Order of the Authority:-
(1) The Authority shall, within a period of three months from the date of receipt of the report
from the Directorate General of Safeguards within three months of initiation of the
proceedings or within such extended period not exceeding a further period of three months
for reasons to be recorded in writing, determine whether a registered person has passed on
the reduction in rate of tax on the supply of goods or services or the benefit of input tax
credit to the recipient by way of commensurate reduction in prices.
(2) Where the Authority determines that a registered person has not passed on the reduction in
rate of tax on the supply of goods or services or the benefit of input tax credit to the recipient
by way of commensurate reduction in prices, the Authority may order -
(a) reduction in prices;
(b) return to the recipient, an amount equivalent to the amount not
passed on by way of commensurate reduction in prices along with
interest at the rate of eighteen percent from the date of collection of
higher amount till the date of return ; or
(c) recovery of the amount including interest not returned under clause
(b), in case the person eligible for return is not available and
depositing the same in the Fund referred to in section 57, and
(d) imposition of penalty as prescribed under the Act; and
(e) cancellation of registration under the Act.
15. Decision to be by the majority:-
If the Members of the Authority differ in opinion on any point, the point shall be decided
according to the opinion of the majority.
16. Compliance by the registered person:-
Any order passed by the Authority under these rules shall be immediately complied with by the
registered person failing which action shall be initiated to recover the amount in accordance
with the provisions of the Integrated Goods and Services Tax Act or the Central Goods and
Services Tax Act or the Union Territory Goods and Services Tax Act or the State Goods and
Services Tax Act of the respective States, as the case may be.
17. Monitoring of the order:-
The Authority may require any authority of central tax, State tax or Union territory tax to
monitor implementation of the order passed by it.

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Agenda Item 3: Fitment/adjustment of GST Rates on certain items
i. Applicability of increased turnover limit for Composition Levy to Special Category States
Background: Sub section (1) of section 10 read with sub-section (2) of the same section of the Central
Goods and Services Tax Act, 2017 [CGST Act] provides that an eligible registered person, whose
aggregate turnover in the preceding financial year did not exceed Rs.50 lakh, may opt to pay, in lieu of
the tax payable by him, an amount calculated at the rate of:
1. 1% of turnover in State or turnover in Union Territory in case of a manufacturer;
2. 2.5% of turnover in State or turnover in Union Territory in case of persons engaged in making
supplies referred to in Paragraph 6(b) of Schedule II to the CGST Act; and
3. 0.5% of turnover in State or turnover in Union Territory in case of other suppliers.

2. The said sub-section also provides that the said limit may be increased upto Rs.1 crore on the
recommendations of the GST Council.

3. In this context, the GST Council, in its 16th Meeting held on 11 June, 2017, has recommended
an increase in the turnover limit for Composition Levy for CGST and SGST purposes from Rs.50 lakh
to Rs.75 lakh, in respect of all eligible registered persons, referred to in the aforesaid sub-section.
However, no clear view was taken as to whether or not the same increased turnover limit for
Composition levy will apply in case of Special Category States. After the aforesaid meeting, certain
Special Category Sates had raised their concerns regarding such increased turnover limit for
Composition levy applying to their States, as it would severely reduce their tax base. That being so, the
GST Council may take a clear view regarding the applicability of the increased turnover limit for
Composition levy to the Special Category States.

4. The threshold limit for exemption in GST is Rs. 20 lakh for all the States, except for the Special
Category States for which it is Rs. 10 lakh. However, prior to the 11th June, 2017 Meeting of GST
Council, the turnover limit for Composition Levy for all States (including Special Category States) was
Rs. 50 lakh.

5. The GST Council may consider as to whether the increased turnover limit of Rs. 75 lakh for
the Composition levy will apply to Special Category States or not, and recommend appropriate turnover
limit for Composition levy for such States.
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ii. IGST on Shipping Vessels
Briefly stated, 5% rate of tax on ship was approved during the 14th GST Council meeting held
at Srinagar on 18-19 May 2017. The same GST rate would apply on imports of
ships/vessels/dredger/tankers.
2.1 Against the proposed levy of 5% IGST on ships/vessels, Ministry of Sipping has made
reference, inter alia, stating that:
a) The shipping industry will not be in a position to utilize the credits of such IGST for a long
period of time for the reason of quantum and restricted availability of credit.
b) The new GST regime clearly puts Indian Shipping Industry in a disadvantageous position as
foreign owners who bring ships to India are not getting burdened with the tax but only Indian
owners are charged with tax in similar situation.
c) Under the new GST Law, if an Indian Owner sells a ship abroad to a foreign buyer outside
India, delivers the ship outside India (such a ship may have never come to India) and receives
convertible foreign exchange, Indian Owner has to pay 5% IGST and here it seems the Indian
Owner is getting taxed merely because the ship is registered in India.
d) The transportation services of goods (voyage charter) have been brought to tax, however with
curtailed input tax credit wherein input tax credit on goods will not be available, which
will cause tremendous accumulation of credit with no avenue for set off.
e) Export cargo services provided to Indian consignor by an Indian Shipping Company will be
liable for GST due to the customer being located in India. However, the same service by a
foreign shipping company will escape tax based on the place of supply provisions. It is natural
that an Indian charterer would prefer to engage a foreign shipping line over an Indian shipping
line since Indian shipping company would charge 5% GST on its freight invoice and foreign
shipping line would not charge any tax on its freight invoice.
f) Additional tax burden will adversely affect the Indian shipping industry, competitiveness and
viability as the Shipping sector is already under severe stress.
g) Indian shipping companies import second hand ships as such vessels are not manufactured in
Indian Shipping yards.
2.2 In this context, the Ministry of Sipping has recommended for NIL IGST on:
S.
No
Chapter/
heading
Description of Vessels
1 89 All vessels imported under essentiality certificate issued by Directorate
General of Hydrocarbons for petroleum operation.
2 89012000 All tankers including gas carriers of 40,000 DWT and above
3 8901 90 00 All bulk carriers of 40,000 DWT and above
4 8905 10 00 Dredgers

3.1 As may be recalled, 5% GST (with ITC of input Service) has been proposed on supply of
service for Transport of goods in a vessel, including services provided or agreed to be provided by a
person located in non-taxable territory to a person located in non-taxable territory by way of
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transportation of goods by a vessel from a place outside India up to the Customs station of clearance in
India.

3.2 Thus, ITC of 5% GST paid on purchase of ship cannot be used for payment of GST on supply
of service for Transport of goods in a vessel, which puts domestic shipping lines at a disadvantage. The
Indian National Ship-owners Association (INSA) has also pointed out this aspect while requesting for
Nil IGST on ships and vessels. As such, this seems to be the main reason for the industry to seek Nil
IGST on imported vessels/ships. However, this logic does not hold good in case of dredgers, as
dredging services attract 18% GST with full ITC of GST paid on inputs and input services.

3.3 That being so, if credit of GST paid on ships/vessels is allowed to be used for payment of
GST on supply of Service, the problem faced by the domestic shipping lines (along with the
associated dis-advantage) will be resolved.
4.1 Import values of above goods, during 2015-16, is as under:
Chapter/
Heading
Description of Vessels Imports
Rs Crore
89 All vessels imported under essentiality
certificate issued by Directorate General of
Hydrocarbons for petroleum operation
1228
8901 20 00 All tankers including gas carriers of 40,000
DWT and above
750
[This value includes
tankers of below 40, 000
DWT also]
8901 90 00 All bulk carriers of 40,000 DWT and above
(smaller vessels are built in Indian yards)
765
[This value includes Self-
propelled Platform
Supply Vessels (PSV)
other items also]
8905 10 00 Dredgers 1815


4.2 As regards imports of “all vessels imported under essentiality certificate issued by Directorate
General of Hydrocarbons for petroleum operation” imports of these vessels during 2015-16 were about
Rs. 1228 crore. As per decision of the Hon’ble GST Council, these vessels will also attract 5% GST, a
rate approved for all goods imported or domestically procured for petroleum operations.
4.3 Thus, volume of total import of ships, vessels, tankers (other than dredgers) was about Rs. 2440
crore during 2015-16. Out of this, imports of tankers and bulk carriers used by shipping lines would be
less than Rs. 1500 crore. 5% IGST on such ships/vessels/tankers would be less than Rs. 75 crore. As
these imports presently attract Nil CVD and SAD, and would be paying IGST in proposed regime, if
the ITC of IGST paid on imported ships is allowed it may not result in any fresh revenue loss, as the
industry would be taking ITC of this newly imposed tax paid in the GST regime. Though, there might
be some revenue loss, if these shipping lines have been purchasing some ships/vessels/tankers
domestically.
4.4 From the information available on web, it appears that some of these vessels/ships like tankers
upto capacity of 95000 DWT, bulk carriers, platform supply vessels are manufactured by domestic
shipyards. [Cochin Shipyard’s website refers].

5.1 On the other hand, if IGST exemption is extended on such imported vessels, it would put
domestic shipbuilders at a disadvantage vis-à-vis imported vessels/ships/floating structures, as
domestic goods will continue to bear input tax burden of about 18% (the general GST rate on
intermediates and capital goods and services). To mitigate similar dis-advantage to domestic
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industry, in past, full exemption from excise/CV duty and SAD had to be extended on all raw
materials/components for shipbuilding. Such an exemption may not be possible in the GST regime.
6.1 Lastly, allowing usage of ITC of GST paid on input services only for paying the service tax on
transportation of goods by vessels/ships services, puts shipping lines taking ships on lease at an
advantage vis-à-vis shipping which go for outright purchase of ships/vessels/tankers. Allowing
ITC of GST paid on ships would provide level playing field to shipping lines which go for outright
purchase of vessels/ships/tankers.
7. In view of the above, it is for the consideration of the GST Council whether to;
i. allow ITC of GST paid on ships which would provide level playing field to shipping lines which
go for outright purchase of vessels/ships/tankers
or
ii. exempt 5% CSGT and SGST / IGST on ships/vessels/dredger/tankers as recommended by the
Ministry of Shipping.

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iii. Lottery
1. Introduction
As per the decision of the Constitution Bench of the Hon’ble Supreme Court of India in the case of
Sunrise Associates vs Govt. of NCT of Delhi & others 2006 (5) SCC 603, sale of Lottery ticket has
been held to be transfer of an actionable claim. Actionable claims have been included in the
definition of “goods” in section 2(52) of the CGST Act. Further, Clause 6 of Schedule III of the
CGST Act specifies, inter alia, actionable claims other than lottery, betting and gambling neither
as a supply of goods nor a supply of services. Therefore, supply of lottery tickets is to be taxed as
supply of goods in GST.
2. Present Taxation Details
A. Lotteries (Regulation) Act, 1998 [17 of 1998] was enacted by the Central Government under Entry
40, List –I of the Constitution. Lottery Regulation Rules 2010 have been made by the Central
Government in exercise of the powers conferred under Section 11 (1) of the Lotteries Regulation
Act, 1998. As per information provided, lottery is currently organized and conducted in 10 States.
Under the said Rules, the Organizing State Government/Autonomous Region charges a minimum
amount of Rs. 5 lakh per draw for bumper draw of lottery and a minimum amount of Rs. 10,000/-
per draw for all other forms of lottery. The said amount paid to the organizing State
Governments/Autonomous Region for the FY 2015-16 is as shown in Table 1. This amount shall
continue to accrue, as at present, in the GST regime to the organizing States/Autonomous Region.

Table 1: Amount paid to Organizing States (In INR Crore)
State/Autonomo
us region
Amount State Amount
Arunachal 12.5 Mizoram 17
Bodoland 13.5 Nagaland 15
Goa 43 Punjab 35
Kerala 1070 Sikkim 63
Maharashtra 16 West Bengal 140
Total 1,155 Total 270
Grand Total 1,425 (~3% of the total turnover)
[Source: All India Federation of Lottery Trade & Allied Industries]

B. Lottery Tax – Three conducting states, Maharashtra, Punjab and Kerala, have enacted their own
State Lottery Tax Acts (under erstwhile Entry 62 of the State List) which empowers them to levy
Lottery tax. This entry has been amended by the 101st Constitutional Amendment Act, and tax
levied by the States under this entry has been subsumed in GST. The lottery tax paid to the
conducting States under these Acts for the FY 2015-16 is as shown in Table 2.
Table 2: Lottery Tax to Conducting States (In INR Crore)
State Turnover Lottery Tax Lottery Tax (%)
Kerala 6000 181 3.02%
Maharashtra 18800 165 0.88%
Punjab 1367 115 8.41%
Total 26,167 461 3.02%
Weighted Average 1.76%
[Source: All India Federation of Lottery Trade & Allied Industries]
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C. Service Tax –
• Lottery is in the Negative List of Services. However, the activities of lottery distributor or
selling agent on behalf of the State Government, in relation to promotion, marketing,
organising, selling of lottery or facilitating in organising lottery of any kind, in any other
manner, in accordance with the provisions of the Lotteries (Regulation) Act, 1998 is included
in the definition of service under the Finance Act, 1994.
• Consideration for a service has been defined in the Finance Act 1994 to include any amount
retained by the lottery distributor or selling agent from gross sale amount of lottery ticket in
addition to the fee or commission, if any, or, as the case may be, the discount received, that is
to say, the difference in the face value of lottery ticket and the price at which the distributor or
selling agent gets such ticket. Thus, the total amount retained by the lottery distributor
(including discount/ Commission) is part of taxable value.
• Further, there is an alternate option available with the lottery distributors under Service Tax
Rules [Rule 7C] which allows them to pay service tax at the rate of Rs 8200/- on every Rs 10
Lakh (or part of Rs 10 Lakh) of aggregate face value of lottery tickets printed by the organising
State for a draw if the lottery or lottery scheme is one where the guaranteed prize payout is
more than 80% and Rs 12800/- where the guaranteed prize payout is less than 80%.
• Service tax is also applicable on the amount paid by the distributors/ selling agents to the
organizing State Government under section 66D(a)(iv) of the Finance Act, 1994

Assuming commission to be 30% of the face value (based on data for lottery organized by Mizoram
conducted in West Bengal, data by AIFLTAI), service tax incidence works out as given below:

Table 3: Service Tax
Service Tax On Face Value
On Lottery Distribution
(15%*30%)
4.50%
On Amount paid under the
Lotteries (Regulation) Act
(15%*3%)
0.45%
Total 4.95%
3. Revenue Analysis
Effective overall tax incidence of service tax and lottery tax comes to 6.71% on Face Value
(4.95%+1.76%). In addition, there are embedded taxes on account of inputs, input services and
capital goods.
4. Considering the unorganized nature of business, the small players involved in selling lotteries,
the practice of not issuing invoices by lottery selling agents to consumers, it would be in the interest of
revenue and lower compliance burden on the sector, if the tax is levied only at the stage at which the
State Govt. sells the lottery tickets to distributors/ selling agents appointed by them and the liability of
such tax is placed on such lottery distributors on reverse charge basis and the lottery selling agents
below the distributors appointed by the State Government are exempted from GST. A view was
expressed in the meeting with the State Government officials of lottery organizing and conducting
States that lottery ticket becomes an actionable claim in the hands of the customer who purchases the
same from the hawker and not at the earlier stage. It is felt that by taxing it under reverse charge in the
hands of the lottery distributor, the taxing of actionable claim is simply being preponed. Another
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challenge that may be faced while taxing lottery at a single point could be with respect to place of
supply, where it would have to be ensured that the GST revenue flows to the concerned States.

5. GST Council has decided in the previous meetings with regard to fitment of rates that the rates
should be fitted according to the current total incidence of Central Excise and VAT on Goods. It may
be mentioned in this regard that Lotteries are proposed to be taxed as Goods for the first time. Therefore,
the existing central excise or VAT incidence is not available.

6. Discussions on the issue of levy of GST on supply of lottery tickets have been held with the
organizing States and the States where lottery tickets are sold on 4.06.2017 and 11.06.2017 with a view
to evolve consensus on the issue. The meeting was attended by the States of Nagaland, Sikkim,
Arunachal Pradesh, Mizoram, Assam, West Bengal and Punjab. CCT, Kerala could not attend the
meeting but orally confirmed that the lottery ticket may be taxed at 28% of the face value. [The
argument in their favour is that lottery is demerit goods. Tax of 18% on the face value of lottery ticket
will translate into the price of lottery ticket going up from Rs. 2.10 to Rs. 2.36 which a consumer would
pay for the chance to win bumper prize in lakhs. The miniscule rise in price of the ticket is unlikely to
induce any behavioral change in the consumers and thus shall not affect Lottery business. However, it
shall yield substantial revenue to the Government: Rs. 9000 crore as against combined revenue of Rs.
833 crore currently received as Lottery Tax and Service Tax].
7. Record of Discussion of the said Committee of officials of State Governments on 11.6.2017
is enclosed as Annexure I. The Committee recommended 2 options of levying GST on lottery as
under:-

(i) GST rate of 5% on face value (MRP) of lottery tickets sold;
(ii) GST rate of 28% on MRP of lottery tickets sold less prize payout (as published in the
Official Gazette of the State Government)

Under both options, GST may be levied on the first point of sale of lottery tickets by the State
Government to the lottery distributor or selling agent appointed by the State Government while
exempting agents/stockists below the distributor. If the second option is accepted, then the price payout
will be suitably defined for certainty of tax.

8. Council may consider the options recommended by the Committee of the States for levying
GST on lottery tickets. A provision may be made in the GST Valuation Rules that value of the lottery
ticket shall be equal to the face value printed on it.



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Annexure I
GST on Lottery – record of discussion with States organizing/ conducting lotteries, on 11
June, 2017 at Vigyan Bhawan.
A meeting was convened with the organizing States and the States where lottery tickets are sold
to decide upon the issue of levy of GST on supply of lottery tickets. The meeting was attended by the
States of Nagaland, Sikkim, Arunachal Pradesh, Mizoram, Assam, West Bengal and Punjab.
2. The organizing States were of the view that if the GST rate on lottery is very high, it will affect
them indirectly in as much the revenue accruing to these States (in the nature of royalty) will come
down as there may not be enough buyers of lottery in the States where the lottery tickets are sold. The
organizing States stated that high GST rate on lottery tickets will result in a reduction in prize payout
amount which will make lottery less attractive to customers. Therefore, they were of the view that GST
rate on lottery should be reasonable.
3. The organizing States also informed that they were assured of a MINIMUM ASSURED
REVENUE from the lottery distributors, which is fixed per draw wise.
4. It was informed by the States that about Rs 450 crore is collected annually as lottery tax and
the approximate turnover (face value) of the lottery trade is about Rs 59,621 crore. However, it is
difficult to work out the exact incidence because of unsold tickets. Based on this data, the approximate
tax incidence coms to about 0.75%. The States were of the view that if the GST rate of 5% is applied
on the face value, then also the amount of revenue will increase a lot (about Rs 2500 crore), which is
more than what the States are getting now.
5. Sikkim (and some of the other organizing States) informed that prize payout varies from 70%-
90% of the face value, depending on the lottery scheme. Therefore, another alternative suggested was
that we could levy GST on the face value less prize payout. Prize payout is in cash (money), which is
outside the definition of both goods and services in GST. However, the tax incidence may go up slightly,
depending on the quantum of prize payout, which, in turn, varies for different schemes.
6. The issue of levying GST on the entire chain of lottery distributors, agents and stockists was
also discussed. The States felt that most of the persons in the supply chain at the end would be below
the threshold. Therefore, it may be prudent to tax the main distributor, who is appointed by the State
Government on tender-basis while exempting agents/stockists below the distributor.
7. The issue of unsold lottery tickets was also discussed. West Bengal stated that the distributor
can return only upto 10% of the tickets while Sikkim stated that there are no unsold tickets.
8. An official from Nagaland brought to the notice of the Committee that as per a judgement of
the Bombay High Court (in the context of State VAT on lottery tickets on per draw basis), only the
right to participate in the draw (CPD) can be taxed while right to claim the prize contingent upon the
purchaser winning the lottery (CPF) cannot be subjected to tax. [State VAT on lottery tickets were being
subjected to tax on per draw basis instead of on sale basis. It was held that shifting the taxation from
sale to draw basis resulted in taxing both the above rights which was contrary to Supreme Court order.
Subsequently, Supreme Court (Constitutional Bench) held that the right to participate in the draw and
the right to win a prize contingent upon winning the lottery are inseparable and there is no value as such
in the mere right to participate.]

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9. Conclusion: -
The committee of State Governments recommended 2 options of levying GST. These are as
given below: -
(i) GST rate of 5% on face value (MRP) of lottery tickets sold;
(ii) GST rate of 28% on MRP of lottery tickets sold less prize payout (as published in the
Official Gazette of the State Government)
Under both options, GST may be levied on the first point of sale of lottery tickets by the State
Government to the lottery distributor or selling agent appointed by the State Government while
exempting agents/stockists below the distributor.
(iii) As far as unsold tickets are concerned, a system of refund of tax paid by the State
Government, under whose jurisdiction lottery tickets are sold, to the lottery distributor may
be put in place, based on the accounts submitted by the distributors to the State Lotteries
department.


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Agenda Item 4: Any other agenda item with the permission of the Chairperson
i. High Sea Sales
Exemption to supplies of goods taking place in the High Sea before the goods cross the
Customs frontier
In common parlance, high sea sales refer to the sales which are effected by transfer of documents of
title to the goods, while they are on high seas and have not yet crossed the customs frontier of India.
2. The legal position regarding taxability of supplies of goods taking place in the High Sea before
the goods cross the customs frontier is discussed hereunder. Sub-section (2) of section 7 of the
Integrated Goods and Services Tax Act, 2017 (hereinafter referred to as, “IGST Act”) provides that
supply of goods imported into the territory of India, till they cross the customs frontiers of India, shall
be treated to be a supply of goods in the course of inter-State trade or commerce. So the supplies taking
place in the High Sea before the goods cross the customs frontier will be falling within the ambit of
inter-State supply.
3. Further the proviso to sub-section (1) of section 5 of the IGST Act provides that the integrated
tax on goods imported into India shall be levied and collected in accordance with the provisions of
section 3 of the Customs Tariff Act, 1975 on the value as determined under the said Act at the point
when duties of customs are levied on the said goods under section 12 of the Customs Act, 1962.
4. So, the combined reading of both sections might lead to a situation wherein the goods being
imported and subject to high sea supply before their clearance from the custom frontier may suffer
double taxation. That is IGST may be levied on the high sea supplies and then customs duties along
with IGST may be levied on clearance of goods from customs frontier. Thus to avoid this scenario the
supplies of goods taking place in the High Sea before the goods cross the customs frontier need to be
exempted from payment of IGST by exercising the power under section 6 of the IGST Act.
4. It is proposed that the Council may approve the proposal to issue notification for grant of
exemption from IGST to supplies of goods taking place in the High Sea before the goods cross the
customs frontier.

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ii. Notifying Sections
Notification of remaining sections of the Central Goods and Services Tax Act, 2017 and
Integrated Goods and Services Tax Act, 2017 from 1st July, 2017 and power to GST
Implementation Committee

It may be recalled that in its 15th and 16th Meeting, the Council had approved the notification
of the following Sections under the Central Goods and Services Tax Act, 2017 (CGST Act) and
Integrated Goods and Services Tax Act, 2017 (IGST Act) from 19th of June, 2017:
Table: Sections proposed to be notified from19th June, 2017.
SR.
NO.
MEETING OF
GST COUNCIL
ACT SECTIONS
1. 15 Central Goods and Services Tax Act,
2017 (respective SGST Acts also)
1,3,4,5,10,22-30, 139
2. 15 Integrated Goods and Services Tax Act,
2017
1,3,20
3. 16 Central Goods and Services Tax Act,
2017 (respective SGST Acts also)
2, 146, 164
4. 16 Integrated Goods and Services Tax Act,
2017
2,14,22

2. Besides the Sections tabulated above, the Council had approved the notification of certain other
sections from the appointed day i.e. 1st July, 2017. Now, the remaining Sections have to be notified
from 1st July, 2017. Further, looking at the timeline for the implementation of GST, there might be a
requirement that certain Sections of the Act may not be notified from the appointed day. Since it would
be difficult to call the GST Council meeting at short interval and there may be a requirement to take
some quick decisions on the matter, it may be beneficial if the Council delegates the power to not to
bring certain Sections into force from the appointed day to the GST Implementation Committee
(hereinafter referred to as “GIC”).
3. Further, in its 15th and 16th Meeting, the Council had approved the notification of Sections
relating to Registration from 19th June, 2017. But looking at the status of legal vetting and unforeseen
exigencies, a requirement may arise warranting the extension of this date. The power to extend the date
for notification of Sections may also be exercised by the GIC, if delegated by the Council.
4. It is proposed that the Council may approve the notification of remaining sections of the CGST
Act, 2017 and IGST Act, 2017 from 1st July, 2017. Further the Council may delegate the power to GIC
to decide that certain Sections of the Act may not be notified from the said date. The Council may also
delegate the power to GIC to extend the date of notification of Sections, earlier approved to be notified
with effect from 19th June, 2017, beyond the said date but not later than 01st July, 2017.

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iii. Exemption under Section 9(4) of the CGST Act, 2017
Exemption to supplies of goods or services or both of certain amount from the purview
of sub-section (4) of section 9 of the Central Goods and Services Tax Act, 2017 etc.
Sub-section (4) of Section 9 of the Central Goods and Services Tax Act, 2017 (hereinafter
referred to as “CGST Act”) provides that the central tax in respect of the supply of taxable goods or
services or both by a supplier, who is not registered, to a registered person shall be paid by such person
on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipient
as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.
2. Accordingly, any supply from unregistered supplier to registered recipient would fall within
the purview of central tax and the registered recipient will not only be liable for the payment of tax on
such inward supplies on reverse charge basis but would also be responsible for the compliance. This
would create hardship for such registered recipients as they would be liable for compliance with sub-
section (4) of Section 9 for inward supplies even of petty amount. It is understood that omnibus
application of the said provision to all inward supplies may be counter-productive and would increase
compliance hardship for the registered recipient. This would also make the option of purchasing from
such unregistered suppliers unattractive.
3. Looking at all these aspects, it was considered by the Law Committee that supplies from unregistered
suppliers up to a certain monetary limit may be exempted from the purview of application of sub-section
(4) of Section 9. Accordingly, it is proposed that inward supplies of goods or services or both, the value
of which is five thousand rupees or less received by a registered person from an unregistered person per
day may be exempted from the application of sub-section (4) of section 9 by exercising the power of
exemption under Section 11 of the CGST Act.
4. It is proposed that the Council may approve the issuance of notification for grant of exemption
under Section 11 of the CGST Act, 2017 from sub-section (4) of Section 9 of the CGST Act, 2017 to
inward supplies of goods or services or both, the value of which is five thousand rupees or less received
by a registered recipient from an unregistered person per day. Similar exemption notification would be
issued under section 6 of the IGST Act, 2017 (for exemption from application of sub-section (4) of
section 5 of the IGST Act, 2017), under section 11 of the respective SGST Act (for exemption from
application of sub-section (4) of section 9 of the respective SGST Act) and section 8 of the UTGST
Act, 2017 (for exemption from application of sub-section (4) of section 7 of the UTGST Act, 2017).

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iv. Fund Settlement Rules
Chapter -
Funds Settlement Mechanism
(1) The Goods and Services Tax Network (GSTN) shall transmit reports in the manner prescribed
below electronically to the Central Board of Excise and Customs (CBEC), concerned State Tax
nodal authority as notified by the respective State Governments, Principal CCA (CBEC) and
Accounting Authorities of the respective States as notified by the State Government, by 5th of
the month following the submission of GST returns, in case of monthly reports, and by the 5th
of October of the subsequent financial year, in case of annual reports. If 5th of the month is a
holiday, then the reports shall be sent by the first working day after the holiday.

2. Report of Cross-Utilization and Apportionment of Integrated Tax between Centre
(Integrated Tax) and State (State Tax)/ Centre (Union Territory Tax):

The following Reports showing details relating to the transfer of funds between Centre
(Integrated Tax) and State (State Tax)/ Centre (Union Territory Tax) to be made shall be sent
by GSTN to authorities referred to in Rule 1 of this Chapter in FORMS GST STL 01.01 to
GST STL – 01.12 for each State and Union Territory:
(a) A monthly Consolidated statement for each State in FORM GST STL – 01.01
containing the following details relating to the total amount to be transferred from the
Centre (Integrated Tax) to the State (State Tax) or the Centre (Union Territory Tax),
or vice-versa, on account of cross-utilization of credit as per section 53 of the Central
Goods and Services tax Act(hereinafter referred to as CGST Act) and the Goods and
Services tax Act of the concerned State(hereinafter referred to as SGST Act), section
21 of the Union Territory Goods and Services tax Act(hereinafter referred to as
UTGST Act) and section 18 of the Integrated Goods and Services tax Act(hereinafter
referred to as IGST Act) , and from the Centre (Integrated Tax) to the State (State
Tax) or the Centre (Union Territory Tax) on account of apportionment as provided
for in section 17 of the IGST Act.

(b) Further, the following monthly reports containing GSTIN-wise, State-wise details
pertaining to the information contained in FORM GST STL – 01.01:
(i) List of registered persons of the State/Union Territory who have adjusted
liability of Integrated Tax from the input tax credit of State Tax or Union
Territory Tax and Central Tax, as provided under section 53 of the CGST
Act and SGST Act, or section 21 of the UTGST Act, as the case may be,
in FORM GST STL – 01.02. The summary of Integrated Tax paid from
the input tax credit of Central Tax and from the input tax credit of State
Tax/Union Territory Tax shall be reflected in column 3 of FORMS GST
STL 1.01 and 2.01 respectively.
(ii) List of registered persons of the State/Union Territory who have adjusted
liability of State Tax or Union Territory Tax, as the case may be, from the
input tax credit of Integrated Tax, as provided under section 18 of the
IGST Act, in FORM GST STL – 01.03. The summary of State Tax/Union
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Territory Tax paid from the input tax credit of the Integrated Tax shall be
reflected in column 4 of FORM GST STL 1.01.
(iii) List of registered persons of other State/Union Territory who have made
outward inter-state supply including ISD distribution to unregistered
persons or units of the concerned State/Union Territory, under sections 17
of the IGST Act, in FORM GST STL – 01.04. The summary of State
Tax/Union Territory Tax and Central Tax portion of Integrated Tax from
this statement shall be reflected in column 5 of both FORM GST STL
1.01 and FORM GST STL 2.01, respectively.
(iv) List of registered persons of other State/Union Territory who have made
inter-state supply to composition taxable person /Non-resident taxpayer/
UIN holders of the State, under sections 17 of the IGST Act, in FORM
GST STL – 01.05. The summary of State Tax/Union Territory Tax and
Central Tax portion of Integrated Tax from this statement shall be
reflected in column 6 of both FORM GST STL 1.01 and FORM GST
STL 2.01, respectively.
(v) List of registered persons of other State/Union Territory who have made
inter-state inward supplies for which input tax credit is declared as
ineligible as provided for in section 17 of the CGST Act and SGST Act
and section 21 of the UTGST Act, and input tax credit lapsed due to opting
into composition scheme as provided for in section 18(4) of the CGST Act
and SGST Act, in FORM GST STL – 01.06. The summary of State
Tax/Union Territory Tax and Central Tax portion of Integrated Tax from
this statement shall be reflected in column 7 of both FORM GST STL
1.01 and FORM GST STL 2.01, respectively.
(vi) List of unregistered persons who have made imports in the concerned
State/Union Territory, under sections 17(1)(d) of the IGST Act, in FORM
GST STL – 01.08. The summary of State Tax/Union Territory Tax and
Central Tax portion of Integrated Tax from this statement shall be
reflected in column 9 of both FORM GST STL 1.01 and FORM GST
STL 2.01, respectively.
(vii) List of composition taxpayer/ Non-resident taxpayer/ UIN holders in a
State/Union Territory who have made imports, under sections 17(1)(d) of
the IGST Act, in FORM GST STL – 01.09. The summary of State
Tax/Union Territory Tax and Central Tax portion of Integrated Tax from
this statement shall be reflected in column 10 of both FORM GST STL
1.01 and FORM GST STL 2.01, respectively.
(viii) List of registered persons in a State/Union Territory who have made
imports, on which input tax credit is declared as ineligible as provided for
in section 17 of the CGST Act and SGST Act, under sections 17(1)(e) of
the IGST Act , in FORM GST STL – 01.10. The summary of State
Tax/Union Territory Tax and Central Tax portion of Integrated Tax from
this statement shall be reflected in column 11 of both FORM GST STL
1.01 and FORM GST STL 2.01, respectively.
(ix) List of registered persons in a State/Union Territory who have paid interest
on Integrated Tax, in FORM GST STL – 01.12. The summary of State
Tax/Union Territory Tax and Central Tax portion of Integrated Tax from
this statement shall be reflected in column 13 of both FORM GST STL
1.01 and FORM GST STL 2.01, respectively.
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(c) Further, the following annual reports containing GSTIN-wise, State-wise details
pertaining to the information contained in FORM GST STL – 01.01:
(i) List of registered persons in a State/Union Territory who have made inter-
state inward supplies on which input tax remains unutilized till end of
September of the subsequent financial year, under sections 17(1)(c) of the
IGST Act, in FORM GST STL – 01.07. The summary of State Tax/Union
Territory Tax and Central Tax portion of Integrated Tax from this
statement shall be reflected in column 8 of both FORM GST STL 1.01
and FORM GST STL 2.01, respectively.
(ii) List of registered persons in a State/Union Territory who have made
import on which input tax credit remains unutilized till end of September
of the subsequent financial year under sections 17(1)(f) of the IGST Act,
in FORM GST STL – 01.11. The summary of State Tax/Union Territory
Tax and Central Tax portion of Integrated Tax from this statement shall
be reflected in column 12 of both FORM GST STL 1.01 and FORM
GST STL 2.01, respectively.
3. Report of Cross-Utilization and Apportionment of Integrated Tax between Centre
(Integrated Tax) and Centre (Central Tax):
The following Reports showing details relating to the transfer of funds between Centre (Integrated
Tax) and Centre (Central Tax) to be made in a particular month relating in FORMS GST STL
02.01 to GST STL – 02.03:
(a) A monthly Consolidated statement in FORM GST STL – 02.01 containing the following
month-wise details relating to the total amount to be transferred from the Centre (Integrated
Tax) to the Centre (Centre Tax), or vice-versa, on account of cross-utilization of credit as
provided for in section 53 of the CGST Act and section 18 of the IGST Act, and from the
Centre (Integrated Tax) to the Centre (Central Tax) on account of apportionment as
provided for in section 17 of the IGST Act.

(b) Further, the following monthly reports containing GSTIN-wise, State-wise details
pertaining to the information contained in FORM GST STL – 02.01:
i. List of registered persons who have adjusted liability of Central Tax from the input
tax credit of Integrated Tax, as provided under section 18 of the Integrated Goods
and Services Act, in FORM GST STL – 02.02. The summary of Central Tax paid
from the input tax credit of Integrated Tax shall be reflected in column 4 of FORM
GST STL 02.01;
ii. A monthly Consolidated statement in FORM GST STL – 02.03 containing the
State-wise details relating to the total amount to be transferred from the Centre
(Integrated Tax) to the Centre (Centre Tax), or vice-versa, on account of cross-
utilization of credit, and from the Centre (Integrated Tax) to the Centre (Central
Tax).
4. Report relating to apportionment of Integrated Tax recovered against demand,
compounding amount paid and amount pre-deposited for filing appeal between Centre
(Central Tax) and State (State Tax)/Centre (Union Territory Tax):
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The following Reports showing details relating to the apportionment of Integrated Tax to State
(State Tax)/Centre (Union Territory Tax), and to Centre (Central Tax), as provided under section
17(5) of the CGST Act and SGST Act, section 21 of the UTGST Act and section 17 of the IGST
Act, in a particular month relating to recoveries of Integrated Tax, and the interest and penalty
thereon, or compounding amount against demand, or pre-deposited for filing appeal of the
Integrated Goods and Services Act as provided for in sections 79, 107, 112 and 138 of the CGST
Act and the SGST Act of the concerned State and section 21 of the UTGST Act in FORMS GST
STL 03.01 to GST STL – 03.02 shall be sent for each State and Union Territory:
(a) A monthly State-wise consolidated statement showing a summary of apportionment of
amount recovered as Integrated Tax, and the interest and penalty thereon, or compounding
amount, or pre-deposited for filing appeal, to State (State Tax)/Centre (Union Territory Tax),
and to Centre (Central Tax), in FORM GST STL 03.01.
(b) List of registered persons from whom recovery of Integrated Tax has been made with interest
and penalty thereon, or compounding amount against demand, or pre-deposited for filing
appeal of the Integrated Goods and Services Act as provided for in sections 79, 107, 112
and 138 of the CGST Act and the SGST Act of the concerned State and section 21 of the
UTGST Act, in FORM GST STL 03.02.
5. Report relating to apportionment of Integrated Tax amount, where place of supply could
not be determined or taxable person making such supply is not identifiable, between
Centre (Central Tax) and State (State Tax)/Centre (Union Territory Tax):
The following Reports showing details relating to the apportionment of Integrated Tax to State
(State Tax)/Centre (Union Territory Tax), and to Centre (Central Tax), in a particular month, in
FORMS GST STL 04.01 to GST STL – 04.03 shall be sent for each State and Union Territory:
(a) A monthly State-wise consolidated statement showing a summary of the apportionment of
Integrated Tax to State (State Tax)/Centre (Union Territory Tax), and to Centre (Central
Tax), in a particular month relating to Integrated Tax collected in respect of which place of
supply could not be determined or the taxable person making such supplies is not
identifiable, as provided under the provisos of sub-section (2) of section 17 of the Integrated
Goods and Services Act, in FORM GST STL 04.01.
(b) List of registered persons from whom Integrated Tax has been collected in respect of which
place of supply made by taxable person could not be determined, as provided under first
proviso of sub-section (2) of section 17 of the Integrated Goods and Services Act, in FORM
GST STL 04.02.
(c) State-wise list of Taxpayers from whom IGST Integrated Tax has been collected in respect
of which the taxable person making such supplies is not identifiable, as provided under
second proviso of sub-section (2) of section 17 of the Integrated Goods and Services Act, in
FORM GST STL 04.03.

6. Report relating to recovery of Integrated Tax amount already apportioned to Centre
(Central Tax) and State (State Tax)/Centre (Union Territory Tax):
The following Reports showing details relating to the recovery of Integrated Tax already
apportioned to Centre (Central Tax) and from State (State Tax)/Centre (Union Territory Tax), in a
particular month, in FORMS GST STL 05.01 to GST STL – 05.12 shall be sent for each State
and Union Territory:
(a) A monthly State-wise consolidated statement showing a summary wherein Integrated
Tax paid by taxpayer has already been apportioned but subsequently the liability of
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Integrated tax of the taxpayer is reduced due to various provisions of the CGST Act
and SGST Act leading to a reduction in amount to be apportioned to Centre (Central
Tax) and from State (State Tax)/Centre (Union Territory Tax), in a particular month,
in FORM GST STL 05.01.
(b) List of registered taxpayers who had made inter State supply of goods and the said
Integrated Tax was already apportioned as per provisions of section 17(2) of the IGST
Act. The demand was subsequently reduced due to issuance of credit notes/ ISD Credit
notes to taxpayers for the said supply, as provided under sections 20 and 34 of the
CGST Act and the Goods and Services Tax Act of the concerned State (or section_21
of the Union Territory Goods and Services Act), in FORM GST STL 05.02.
(c) List of registered taxpayers who had paid Integrated Tax and the said Integrated Tax
was already apportioned, and whose demand was subsequently reduced due to issuance
of credit notes to composition taxpayers, as provided under sections 10 and 34 of the
Central Goods and Services Tax Act and the Goods and Services Tax Act of the
concerned State (or section_21of the Union Territory Goods and Services Act), in
FORM GST STL 05.03.
(d) List of registered taxpayers who had paid Integrated Tax and the said Integrated Tax
was already apportioned, and whose demand was subsequently reduced due to issuance
of credit notes to un-registered persons, as provided under section 34 of the CGST Act
and the SGST Act (or section_21of the Union Territory Goods and Services Act), in
FORM GST STL 05.04.
(e) List of registered taxpayers who had paid Integrated Tax and the said Integrated Tax
was already apportioned, and whose demand was subsequently reduced due to refund
of pre-deposit and interest, as provided under sections 107(6) and 112(8) of the CGST
Act and the SGST Act (or section_21 of the Union Territory Goods and Services Act)
leading to reduction in demand to be apportioned, in FORM GST STL 05.05.
(f) List of registered taxpayers from whom Integrated Tax was recovered with interest due
to non-acceptance of a supply, which was not eligible for credit as per provisions of
section 17 of the CGST Act and SGST Act, by a supplier, and the input tax credit of
the buyer was reversed with interest as provided under sections 42 and 43 of the Central
Goods and Services Tax Act and the Goods and Services Tax Act of the concerned
State (or section 21of the Union Territory Goods and Services Act) and the interest
amount has been apportioned. Upon the supplier subsequently accepting the supply,
would result in reduction of amount of interest to be apportioned, in FORM GST STL
05.06.
(g) List of registered taxpayers where Integrated Tax paid was apportioned due to inter-
state inward supplies for which input tax credit was declared as ineligible previously
and was apportioned but has now become eligible, as provided under sections 42 and
43 of the CGST Act and SGST Act (or section_21 of the Union Territory Goods and
Services Act), in FORM GST STL 05.07.
(h) List of registered taxpayers where Integrated Tax paid due to a demand raised by the
proper officer is apportioned, and the demand is subsequently reversed by a Court
Order leading to a reduction from the Central Tax and State Tax/Union Territory Tax,
as provided under sections 79,107,112,117 and 118 of the Central Goods and Services
Tax Act and the Goods and Services Tax Act of the concerned State (or section_21 of
the Union Territory Goods and Services Act), in FORM GST STL 05.08.
(i) List of registered taxpayers where the liability of payment of Integrated Tax is reduced
due to an amendment in the amount payable after the payment on account of
rectification of return as provided under sections 37, 38 and 39 of the Central Goods
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and Services Tax Act and the Goods and Services Tax Act of the concerned State (or
section_21 of the Union Territory Goods and Services Act), and the excess Integrated
Tax so paid has been apportioned, and is now to be reduced from the Central Tax and
State Tax/Union Territory Tax, in FORM GST STL 05.09.
7. Report relating to recovery of various taxes from refunds:
Report of settlement arising between Centre (Central Tax) and State (state Tax)/Centre
(Union Territory Tax) on account of recovery of any tax, interest, penalty, fees or any other
amount from refund as provided in section 54(10) of the CGST Act and SGST Act (or
section_21 of the Union Territory Goods and Services Act), in FORM GST STL 06.01.
8. Report relating to Consolidated Settlement Register for each State and Union Territory
and for the Centre
(a) A monthly consolidated settlement register for each State and Union Territory, in
FORM GST STL 07.01 shall be sent. This register shall give consolidated details of
transfer of funds to be made from State tax account to Central tax account or Integrated
tax account and vice versa based on consolidated summary of settlement details
contained in Report Form GST STL 1.01, 3.01, 4.01, 5.01 and 6.01.
(b) A monthly consolidated settlement register for the Centre, in FORM GST STL
07.02 shall be sent. This register shall give consolidated details of transfer of funds
to be made from Central tax account to Integrated tax account and vice versa based
on consolidated summary of settlement details contained in Report Form GST STL
1.01, 2.01, 4.01, 5.01 and 6.01.

9. Issue of provisional and final sanction orders for each month:

(1) Issue of provisional sanction order for each month: The Pr. CCA shall maintain a login based
Centralised Accounting portal which shall be accessible to State accounting authorities, CBEC and
State taxation authorities. On the receipt of above ledgers, the Pr. CCA shall calculate the net
payment to be made from IGST account to each State or vice versa and shall upload a Statewise
summary of the same on the Centralised Accounting portal within three days of receipt of the data
from GSTN. Thereafter based on uploading of this data a provisional sanction order for the month
shall be issued by Department of Revenue as per the procedure laid down below.
(2) Resolution of any discrepancy in data provided by GSTN and issue of final sanction order
for each month:
(a) On the basis of the above ledgers provided by GSTN for every month by the 3rd of
subsequent month, the Central and respective State Accounting Authorities will
reconcile the details of the payments received, ITC cross-utilization and apportionment
details received from GSTN, and will revert to GSTN in case of any discrepancy by
18th of the month.
(b) If any discrepancy is pointed out by the Central/State(s) Accounting Authority or
taxation authority within this period, the GSTN will look into it and prepare a Revised
Calculation, if required and send it again to both the Central as well as State Accounting
and taxation Authorities by 21st of the month.
Based on the revised calculation received from GSTN, in case any changes have been
made with respect to any State, the Pr. CCA shall calculate the net payment to be made
from IGST account to each State or vice versa and shall upload a final Statewise
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summary of the same on the Centralised Accounting portal within three days of receipt
of the revised data from GSTN. Thereafter based on uploading of this data a final
sanction order for the month shall be issued by Department of Revenue as per the
procedure laid down below.
(3) The Centralized Accounting Portal of Central Accounting Authority will be used by the
Department of Revenue, Ministry of Finance to download the details of the State-wise fund
settlement with States. A designated officer in the Department of Revenue will issue the
Sanction order of funds to be transferred from IGST account to each State or vice versa after
obtaining necessary approvals of the competent authority. The provisional sanction order for
each month for each State shall be issued based on details uploaded by Pr. CCA at (1) above. The
final sanction order for each month for each State, in case needed, shall be issued based on details
uploaded by Pr. CCA at (2) above.
(4) The electronic Sanction (digitally signed) addressed to Central Accounting Authority containing
State-wise details will then be uploaded on the portal of the Central Accounting Authority (Office
of Principal CCA, CBEC) through login based system. As the sanction letter will also contain
the details of settlement, it will be available in records of State Government for future
reconciliation and audit purposes. State Governments will come to know about the fund being
transferred by Centre through the sanction. Copy of sanction will also be endorsed to concerned
State Accountant General (A&E).
(5) The Central Accounting Authority will generate an Inter Government Advice (IGA) on the
basis of Sanction received from Department of Revenue and send it to RBI [CAS, Nagpur]
electronically.
(6) Reserve Bank of India will make the necessary fund settlement between the CFI and the CFS of
the respective State, on the basis of electronic IGA; generate the ‘Clearance Memo’ and transmit
the same to Central Accounting Authority and State Accounting Authorities and Accountant
General (A&E).
(7) The Central Accounting Authorities will make appropriate accounting entries at the time of
issuance of inter Government Advice to RBI.
(8) The respective State Accounting Authorities and Accountant General (A&E) will make
appropriate accounting entries at the time of receipt of clearance Memo from RBI.
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DRAFT
GOODS AND SERVICES TAX RULES, 2017
SETTLEMENT REPORT FORMS












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Index of Reports
Sr. No. Report No. Title of the Report
1. GST STL - 01.01 Statement of transfer of funds between Centre and State/UT based on returns, other than returns and
information received from Customs authorities
2. GST STL - 01.02 List of registered persons of the State/UT who have adjusted IGST liability from ITC of SGST/
UTGST and CGST
3. GST STL - 01.03 List of registered persons of the State/UT who have adjusted SGST/ UTGST liability from ITC of
IGST
4. GST STL - 01.04 List of other State/UT registered persons who have made outward inter-State supply including ISD
distribution to unregistered persons or units of the State/UT (including Online Services supplied to
unregistered persons) including non-return filers up to specified period.
5. GST STL - 01.05 List of other State/UT registered persons who have made inter-State supply to composition taxable
person /Non-resident taxable person/ UIN holder of the State/UT
6. GST STL - 01.06
List of registered persons who have made inter-State inward supplies for which ITC is declared as
ineligible including ITC lapsed due to opting into composition scheme
7. GST STL - 01.07 List of registered persons who have made inter-state inward supplies on which ITC remains unutilized
till specified period
8. GST STL - 01.08 List of unregistered persons who have made import of goods
9. GST STL - 01.09 List of composition taxable person/ Non-resident taxable person/ UIN holders who have made imports
10. GST STL - 01.10 List of registered persons who have made import on which ITC is declared as ineligible
11. GST STL - 01.11 List of registered persons who have made import on which ITC remains unutilized till specified period
12. GST STL - 01.12 List of registered persons who have paid interest on IGST related to returns
13. GST STL - 02.01 Book adjustment between CGST and IGST based on returns, other than returns and information
received from Customs authorities
14. GST STL - 02.02 List of registered persons who have adjusted CGST liability from ITC of IGST
15. GST STL - 02.03 State/UT wise book adjustment between CGST and IGST based on returns, other than returns and
information received from Customs authorities
16. GST STL - 03.01 Distribution of IGST amount recovered against demand, compounding amount paid and amount
deposited for filing appeal
Detailed Agenda Notes - Agenda for 17th GSTCM
Page 129 of 163
17. GST STL - 03.02 List of registered persons from whom IGST amount recovered against demand, compounding amount
paid and amount deposited for filing appeal
18. GST STL - 04.01 Distribution of IGST amount where place of supply or taxable person could not be determined
19. GST STL - 04.02 List of Taxpayers from whom IGST has been collected and place of supply could not be known
20. GST STL - 04.03 Distribution of IGST that has been collected where taxable person are not known
21. GST STL - 05.01 Reduction of the amount apportioned already due to issue of credit notes, refund of deposit made for
filing of appeal etc.
22. GST STL - 05.02 Reduction of the amount apportioned already due to issue of credit notes/ ISD Credit notes to taxpayers
where ITC was declared as non-eligible (List of taxpayers)
23. GST STL - 05.03 Reduction of the amount apportioned already due to issue of credit notes to composition taxable person
(List of taxpayers)
24. GST STL - 05.04 Reduction of the amount apportioned already due to issue of credit notes to un-registered persons (List
of taxpayers)
25. GST STL - 05.05 Reduction of the amount apportioned already due to refund of deposit made for filing appeal and
interest thereof (List of taxpayers)
26. GST STL - 05.06 Reduction due to interest apportioned earlier on account of mismatch of ITC/ Credit Note but now
reclaimed (List of taxpayers)
27. GST STL - 05.07 Reduction due to inter-State inward supplies for which ITC was declared as ineligible but now becomes
eligible (List of taxpayers)
28. GST STL - 05.08 Reduction due to recovery of outstanding dues and subsequently refunded due to appeal order and
interest thereof (List of taxpayers)
29. GST STL - 05.09 Reduction due to Amendment in amount already apportioned (List of Taxpayer)
30. GST STL - 06.01 Settlement between Centre and State/UT on account of recovery made out of refund
31. GST STL - 07.01 Consolidated Settlement Register for State/UT
32. GST STL - 07.02 Consolidated Settlement Register for Centre (Book adjustment between CGST, IGST or Cess)

Detailed Agenda Notes - Agenda for 17th GSTCM
Page 130 of 163
Report GST STL - 01.01
Statement of transfer of funds between Centre and State/UT based on returns, other than returns and information received from Customs
authorities
[Sec 17 and 18 of IGST Act and Sec 53 of CGST/SGST Act]
[As per Rule ……….]
State/UT -
Year -
Month -/ All
(Amount in Rs.)
Sr.
No.
Month IGST
liability
adjusted
against
SGST/
UTGST
ITC
(includi
ng cross
utilizati
on by
ISD)

SGST/
UTGST
liability
adjusted
against
IGST
ITC
including
cross
utilizatio
n by ISD

SGST/
UTGST
portion
of IGST
collecte
d on
B2C
supplies
includin
g ISD
distribut
ion to
unregist
ered
unit
SGST/
UTGST
portion of
IGST for
inter-
State/UT
supplies
made to
Compositi
on taxable
person
/Non-
resident
taxable
person/
UIN
holders
SGST/
UTGST
portion of
IGST
collected
on B to B
supplies
where ITC
is declared
as
ineligible,
including
lapsed ITC
due to
opting
compositio
n scheme
SGST/
UTGST
portion of
IGST
collected on
B to B
supplies
where ITC
remains
unutilized
till specified
period
SGST
/
UTGS
T
portio
n of
IGST
collect
ed on
suppli
es
import
ed by
unregi
stered
person
s
SGST/
UTGST
portion of
IGST for
supplies
imported
by
Compositio
n taxable
persons/
Non-
resident
taxable
person/
UIN
holders
SGST/
UTGST
portion of
IGST
collected on
goods/service
s imported by
registered
person (other
than
composition)
where ITC is
declared as
ineligible
SGST/
UTGST
portion of
IGST
collected on
goods
imported by
registered
person where
ITC remains
unutilized till
specified
period
SGST/
UTGST
portion
of
interest
related
to
returns
paid on
IGST
Net
Amount
payable (-)
by
State/UT to
Centre/
receivable
(+) from
Centre to
State/UT
[sum of col.
4 to 13 -
col. 3]
1 2 3 4 5 6 7 8 9 10 11 12 13 14






Detailed Agenda Notes - Agenda for 17th GSTCM
Page 131 of 163
Report GST STL - 01.02
List of registered persons of the State/UT who have adjusted IGST liability from ITC of SGST/ UTGST and CGST
(for col. 3 of 01.01& 02.01)
[Sec 53 of CGST/SGST Act]

State/UT -
Year -
Month -
(Amount in Rs.)
Sr. No. GSTIN Trade name
(Legal
name, if not
available)
Category of
cross-
utilization
(Returns/Other
than returns)
ARN/ IGST
Demand id
Tax period
of return
IGST paid
from CGST
ITC
IGST paid
from SGST/
UTGST ITC
1 2 3 4 5 6 7 8

Total
Note: 1. Invalid return of supplier shall not be taken into consideration for the purpose of apportionment/settlement. Invalid return of buyer, however, shall be
considered in case he uses cross utilization for payment of liability since the supplier has already made payment and revenue has accrued to the Government
from supplier.
2. In case of cross-utilization of the credit for purposes other than returns, demand id will be mentioned.
3. ARN refers to Acknowledgement Reference Number of Return



Detailed Agenda Notes - Agenda for 17th GSTCM
Page 132 of 163
Report GST STL - 01.03
List of registered persons of the State/UT who have adjusted SGST/ UTGST liability from ITC of IGST
(for col. 4 of 01.01)
[Sec 18(c) of IGST Act]

State/UT -
Year -
Month -
(Amount in Rs.)
Sr. No. GSTIN Trade name
(Legal
name, if not
available)
Category of cross-
utilization
(Returns/Other
than returns)
ARN/
SGST/UTGST
Demand id
ARN Tax period
of return
SGST/
UTGST
paid from
IGST ITC
1 2 3 4 5 6 7 8

Total
Note: Invalid return in case of cross-utilization will also be considered for settlement.
In case of cross-utilization of the credit for purposes other than returns, demand id will be mentioned.




Detailed Agenda Notes - Agenda for 17th GSTCM
Page 133 of 163
Report GST STL - 01.04
List of persons registered in other State/UT who have made outward inter-State supply, including ISD distribution, to unregistered persons or
units of the State/UT (including Online Services supplied to unregistered persons) including non-return filers up to specified period.
(for col. 5 of 01.01& 02.01)
[Sec 17(1) (a) of IGST Act]

State/UT -
Year -
Month -
(Amount in Rs.)
Sr. No. State/UT of
supplier
GSTIN of
supplier
Category of
Supply
Trade name
(Legal
name, if not
available)
ARN Tax period
of return
GSTIN of
non-return
filers of
the State, if
any
IGST paid SGST/
UTGST
portion of
IGST
CGST
portion of
IGST
1 2 3 4 5 6 7 8 9 10 11

Total
Note: Column (4) shall be given in the following categories:
Category A : Inter State supplies made to unregistered persons or ISD distributed to unregistered units
Category B : Information relating to online services supplied to unregistered persons by persons located outside country.
Category C : Details of recipient taxable persons who have not filed the return till the specified period as provided for in section 37 and 38 of the
CGST/SGST Act.
Category D : Details of recipient taxable persons who have received ITC credit post filing of annual return


Detailed Agenda Notes - Agenda for 17th GSTCM
Page 134 of 163
Report GST STL - 01.05
List of other State/UT registered persons who have made inter-State supply to composition taxable person /Non-resident taxable person/ UIN
holder of the State/UT
(for col. 6 of 01.01& 02.01)
[Sec 17(1)(a) of IGST Act]

State/UT -
Year -
Month -
(Amount in Rs.)
Sr. No. State/UT
of
supplier
GSTIN of
supplier
Trade
name
(Legal
name, if
not
available)
Category of
persons
GSTIN of
Recipient/
UIN
Trade
name
(Legal
name, if
not
available)
ARN Tax
period of
return
IGST
paid
SGST/
UTGST
portion of
IGST
CGST
portion of
IGST
1 2 3 4 5 6 7 8 9 10 11 12

Total
Note: Column 5 shall have following categories :
(a) Category A: Composition taxable persons,
(b) Category B: non-resident taxable persons and
(c) Category C : UIN holders

Detailed Agenda Notes - Agenda for 17th GSTCM
Page 135 of 163
Report GST STL - 01.06
List of registered persons who have made inter-State inward supplies for which ITC is declared as ineligible including ITC lapsed due to opting
into composition scheme
(for col. 7 of 01.01& 02.01)
[Sec 17 of IGST Act]

State/UT -
Year -
Month -
(Amount in Rs.)
Sr. No. GSTIN of
recipient
Category of
ITC to be
distributed

Trade name
(Legal
name, if not
available)
ARN Tax period
of return/
Month of
filing Stock
intimation
Amount of
IGST
available for
distribution
SGST/
UTGST
portion of
IGST
CGST
portion of
IGST
1 2 3 4 5 6 7 8 9

Total
Note : 1. Relevant section for claiming and reversing ITC - Section 17(5) and 18(4) of CGST/SGST Act
2. Categories of Column 3 shall be as follows :
Category A : Supply for which ITC is ineligible as per section 17(5) of CGST/SGST Act
Category B : ITC lapsed due to opting for composition scheme as per section 18(4) of CGST/SGST Act
Category C : ITC lapsed due to cancellation of Registration as per section



Detailed Agenda Notes - Agenda for 17th GSTCM
Page 136 of 163
Report GST STL - 01.07
List of registered persons who have made inter-state inward supplies on which ITC remains unutilized till specified period
(for col. 8 of 01.01 & 02.01)
[Sec 17(10)(c) of IGST Act]

State/UT -
Year -
Month -
(Amount in Rs.)
Sr. No. GSTIN Trade name
(Legal
name, if not
available)
ARN Tax period
of return
IGST
available for
distribution
SGST/
UTGST
portion of
unutilized
portion of
IGST
CGST
portion of
unutilized
portion of
IGST
1 2 3 4 5 6 7 8

Total
Note: This report will include the details of those recipient taxable persons who have filed the return but not claimed ITC till the specified period as provided
for in section 37,38 and 44 of CGST/SGST Act
Detailed Agenda Notes - Agenda for 17th GSTCM
Page 137 of 163
Report GST STL - 01.08
List of unregistered persons who have made import of goods
(for col. 9 of 01.01 & 02.01)
[Sec 17(1) (d) of IGST Act]
State/UT -
Year -
Month –
(Amount in Rs.)
Sr. No. Name of
unregistered
Person
Address IGST paid
including
interest, if
any
SGST/
UTGST
portion of
IGST
CGST
portion of
IGST
1 2 3 4 5 6

Total
Note: This report will include details of persons as received from Customs authorities, if made available.
Source: Import data from Custom authorities

Detailed Agenda Notes - Agenda for 17th GSTCM
Page 138 of 163
Report GST STL - 01.09
List of composition taxable person/ UIN holder who have made imports
(for col. 10 of 01.01 & 02.01)
[Sec 17(1)(d) of IGST Act]
State/UT -
Year -
Month –
(Amount in Rs.)
Sr. No. GSTIN of
importer/UIN
Trade name
(Legal
name, if not
available)
Category of
taxpayers
ARN, if any Tax period Goods/
Services
(G/S)
IGST paid SGST/
UTGST
portion of
IGST
CGST
portion of
IGST
1 2 3 4 5 6 7 8 9 10

Total
Note:
1) This report will include information about import of goods as received from custom authorities.
2) Data of import of services will be as declared in return
3) Column 5 shall have following categories :
(a) Category A: Composition taxable persons,
(b) Category B: non-resident taxable persons and
(c) Category C : UIN holders


Detailed Agenda Notes - Agenda for 17th GSTCM
Page 139 of 163
Report GST STL - 01.10
List of registered persons who have made import on which ITC is declared as ineligible
(for col. 11 of 01.01 & 02.01)
[Sec 17(1)(e) of IGST Act]
State/UT -
Year -
Month -
(Amount in Rs.)
Sr. No. GSTIN of
importer
Trade name
(Legal
name, if not
available)
ARN Tax period
of return
IGST
available
SGST/
UTGST
portion of
IGST
CGST
portion of
IGST
1 2 3 4 5 6 7 8

Total

Detailed Agenda Notes - Agenda for 17th GSTCM
Page 140 of 163
Report GST STL - 01.11
List of registered persons who have made import on which ITC remains unutilized till specified period as provided for in section 37,38 and 44 of
CGST/SGST Act
(for col. 12 of 01.01 & 02.01)
[Sec 17(1)(f) of IGST Act]

State/UT -
Year -
Month -

(Amount in Rs.)
Sr. No. GSTIN of
importer
Trade name
(Legal
name, if not
available)
ARN Tax period
of return
IGST
available
SGST/
UTGST
portion of
unutilized
portion of
IGST
CGST
portion of
unutilized
portion of
IGST
1 2 3 4 5 6 7 8

Total
Note: This report will cover the cases which were not reported by importer in his GSTR 2/ GSTR 5
Detailed Agenda Notes - Agenda for 17th GSTCM
Page 141 of 163
Report GST STL - 01.12
List of registered persons who have paid interest on IGST related to returns
(for col. 13 of 01.01 & 02.01)
[Sec 17(3) of IGST Act]
State/UT -
Year -
Month -
(Amount in Rs.)
Sr. No. GSTIN Trade name
(Legal
name, if not
available)
ARN Tax period
of return
IGST
interest paid
SGST/
UTGST
portion of
interest paid
on IGST
CGST
portion of
interest paid
on IGST
1 2 3 4 5 6 7 8

Total
Note:
1) The interest will be apportioned among the States of recipient.




Detailed Agenda Notes - Agenda for 17th GSTCM
Page 142 of 163
Report GST STL - 02.01
Book adjustment between CGST and IGST based on returns, other than returns and information received from Customs authorities
[Sec 17 and 18 of IGST Act and Sec 53 of CGST/SGST Act]

State/UT -
Year -
Month -/ All
(Amount in Rs.)
Sr No. Month IGST
Liabilit
y
adjuste
d
against
CGST
ITC
(includi
ng cross
utilizati
on by
ISD)
CGST
Liabilit
y
adjuste
d
against
IGST
ITC
includi
ng
cross
utilizati
on by
ISD
CGST
portion of
IGST
collected
on B2C
supplies
including
ISD
distributi
on to
unregister
ed unit
CGST
portion of
IGST for
inter-state
supplies
made to
Composit
ion
taxable
person
/Non-
resident
taxable
person/
UIN
holders
CGST
portion of
IGST
collected on
B to B
supplies
where ITC is
declared as
ineligible,
including
lapsed ITC
due to opting
composition
scheme
CGST
portion
of IGST
collected
on B to B
supplies
where
ITC
remains
unutilize
d till
specified
period
CGST
portion
of IGST
collected
on
supplies
imported
by
unregiste
red
persons
CGST
portion of
IGST for
supplies
imported
by
Compositio
n taxable
persons/
Non-
resident
taxable
person/
UIN
holders
CGST
portion of
IGST
collected on
goods/service
s imported by
registered
person (other
than
composition)
where ITC is
declared as
ineligible
CGST
portion of
IGST
collected on
goods
imported by
registered
person where
ITC remains
unutilized till
specified
period
CGST
portion
of
interest
related
to
returns
paid on
IGST
Net
Amount
payable (-)
by
State/UT to
Centre/
receivable
(+) from
Centre to
State/UT
[sum of
col. 4 to 13
- col. 3]
1 2 3 4 5 6 7 8 9 10 11 12 13 14





Detailed Agenda Notes - Agenda for 17th GSTCM
Page 143 of 163
Report GST STL - 02.02
List of registered persons who have adjusted CGST liability from ITC of IGST
(for col. 4 of 02.01)
[Sec 18(a) of IGST Act]
State/UT -
Year -
Month -
(Amount in Rs.)
Sr. No. GSTIN Trade name
(Legal
name, if not
available)
Category of cross-
utilization
(Returns/Other
than returns)
ARN/ Demand id Tax period
of return
CGST paid
from IGST
ITC
1 2 3 4 5 6 7

Total
In case of cross-utilization of the credit for purposes other than returns, demand id will be mentioned.


Detailed Agenda Notes - Agenda for 17th GSTCM
Page 144 of 163
Report GST STL - 02.03
State/UT wise book adjustment between CGST and IGST based on returns, other than returns and information received from Customs
authorities

Year -
Month -
(Amount in Rs.)
Sr No. State/U
T
IGST
Liabilit
y
adjuste
d
against
CGST
ITC
(includi
ng cross
utilizati
on by
ISD)
CGST
Liabilit
y
adjuste
d
against
IGST
ITC
includin
g cross
utilizati
on by
ISD
CGST
portion of
IGST
collected
on B2C
supplies
including
ISD
distributi
on to
unregister
ed unit
CGST
portion of
IGST for
inter-
State
supplies
made to
Composit
ion
taxable
person
/Non-
resident
taxable
person/
UIN
holders
CGST
portion of
IGST
collected on
B to B
supplies
where ITC is
declared as
ineligible,
including
lapsed ITC
due to opting
composition
scheme
CGST
portion
of IGST
collected
on B to B
supplies
where
ITC
remains
unutilize
d till
specified
period
CGST
portion
of IGST
collected
on
supplies
imported
by
unregiste
red
persons
CGST
portion of
IGST for
supplies
imported
by
Compositio
n taxable
persons/
Non-
resident
taxable
person/
UIN
holders
CGST
portion of
IGST
collected on
goods/service
s imported by
registered
person (other
than
composition)
where ITC is
declared as
ineligible
CGST
portion of
IGST
collected on
goods
imported by
registered
person where
ITC remains
unutilized till
specified
period
CGST
portion
of
interest
related
to
returns
paid on
IGST
Net
Amount
payable (-)
by
State/UT to
Centre/
receivable
(+) from
Centre to
State/UT
[sum of
col. 4 to 13
- col. 3]
1 2 3 4 5 6 7 8 9 10 11 12 13 14




Total


Detailed Agenda Notes - Agenda for 17th GSTCM
Page 145 of 163
Report GST STL - 03.01
Distribution of IGST amount recovered against demand, compounding amount paid and amount deposited for filing appeal
[Sec 17 of IGST Act]

Year -
Month -
(Amount in Rs.)







Note:
1) Relevant Section: Sec 79, Sec 107, Sec 112 and Sec 138 of CGST/SGST Act
2) Category mentioned in column 3 above shall be as follows :
(a) Category A : IGST amount recovered on demand under section 79 of CGST/SGST Act
(b) Category B : IGST amount deposited for filing appeal under section 107,112 of CGST/SGST Act
(c) Category C: IGST compounding amount deposited under section 138 of CGST/SGST Act
Sr No. State/UT Category
of IGST
amount to
be
distributed
Amount of IGST recovered or deposited for filing appeal Amount apportioned
Tax Interest Penalty Compounding
amount
Total CGST portion
of the IGST
SGST/
UTGST
portion of the
IGST
1 2 3 4 5 6 7 8 9 10




Total
Detailed Agenda Notes - Agenda for 17th GSTCM
Page 146 of 163
Report GST STL - 03.02
List of registered persons from whom IGST amount recovered against demand, compounding amount paid and amount deposited for filing
appeal

State/UT -
Year -
Month -
(Amount in Rs.)
Sr.
No.
GSTIN Trade
name
(Legal
name, if
not
available)
Order
number
Order
date
Category of
IGST amount
to be
distributed
Debit entry
of cash
ledger
Debit entry
of credit
ledger
Recovery under IGST head or deposit made for
filing appeal
Amount
apportioned
Tax Interest Penalty Compounding
amount
Total CGST SGST/
UTGST
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Total
Note:
1) Relevant Section: Sec 79, Sec 107, Sec 112 and Sec 138 of CGST/SGST Act
2) Category mentioned in column 6 above shall be as follows :
(a) Category A : IGST amount recovered on demand under section 79 of CGST/SGST Act
(b) Category B : IGST amount deposited for filing appeal under section 107,112 of CGST/SGST Act
(c) Category C: IGST compounding amount deposited under section 138 of CGST/SGST Act
Detailed Agenda Notes - Agenda for 17th GSTCM
Page 147 of 163
Report GST STL - 04.01
Distribution of IGST amount where place of supply or taxable person could not be determined
[Sec 17 of IGST Act]


State/UT/All -
Year -
Month -

(Amount in Rs.)
Sr. no. Distribution of IGST where POS not
known
Distribution of IGST where taxable
person is not known
Total amount distributed
SGST/ UTGST
portion
CGST portion SGST/ UTGST
portion
CGST portion SGST/ UTGST CGST
1 2 3 4 5 6 7
Total


Detailed Agenda Notes - Agenda for 17th GSTCM
Page 148 of 163
Report GST STL - 04.02
List of taxable persons from whom IGST has been collected and place of supply could not be known
[Sec 17 of IGST Act]
(For column 2 and 3 of 4.01)

Year -
Month -
a) GSTIN of supplier
b) Amount of IGST to be distributed ………….
c) CGST Portion out of the amount mentioned at (b) …….
d) Balance amount to distributed among States/UT’s (b-c) …..

(Amount in Rs.)
Sr No. State/UT to whom
supplies were
made in previous
period
Amount of
supplies made
to state
Ratio of
supplies
SGST/ UTGST
portion of IGST
1 2 3 4 5

Total

Note - Apportionment is to done in the State/UT in same proportion in which supplies were made to each state
Detailed Agenda Notes - Agenda for 17th GSTCM
Page 149 of 163
Report GST STL - 04.03
Distribution of IGST that has been collected where taxable person is not known
[Sec 17 of IGST Act]
(For column 4 and 5 of 4.01)

Year -
Month -
a) Amount of IGST to be distributed ………….
b) CGST Portion out of the amount mentioned at (a) …….
c) Balance amount to distributed among States/UT’s (a-b) …..

(Amount in Rs.)
Sr No. State/UT Amount of
tax collected
in previous
year
Ratio of Tax
collected
SGST/
UTGST
portion of
IGST
1 2 3 4 5

Total

Note - Apportionment is to done in the ratio of tax collection in the preceding year.

Detailed Agenda Notes - Agenda for 17th GSTCM
Page 150 of 163
Report GST STL - 05.01
State-wise consolidated statement showing a summary wherein Integrated Tax paid by taxpayer has already been apportioned but subsequently
the liability of Integrated tax of the taxpayer is reduced due to various provisions of the CGST Act and SGST Act leading to a reduction in
amount to be apportioned to Centre (Central Tax) and from State (State Tax)/Centre (Union Territory Tax)
[Sec 17 of IGST Act]

State/UT/All -
Year -
Month -
(Amount in Rs.)
Sr. No. Description Reduction in amount
SGST/ UTGST CGST
1 2 3 4
1. Issue of credit notes by suppliers
where ITC had been declared by
recipient as non-business purpose
(details coming from STL 5.02)

2. Reduction due to issue of credit notes
to Composition taxable person
(details coming from STL 5.03)

3. Reduction due to issue of credit notes
to unregistered persons
(details coming from STL 5.04)

4. Reduction due to refund of deposit
made for filing appeal alongwith
interest
(details coming from STL 5.05)

5. Reduction on account of interest
apportioned earlier on account of
mismatch of ITC/Credit Note but
now reclaimed
(details coming from STL 5.06)

6. Amount apportioned on account of
inter-State inward supplies for which

Detailed Agenda Notes - Agenda for 17th GSTCM
Page 151 of 163
Sr. No. Description Reduction in amount
SGST/ UTGST CGST
1 2 3 4
ITC was declared as ineligible but
now becomes eligible
(details coming from STL 5.07)
7. Amount apportioned on account of
recovery of outstanding dues and
subsequently refunded with interest
due to appeal order
(details coming from STL 5.08)

8. Reduction due to amendment in
amount already apportioned
(details coming from STL 5.09)

Total
Note: Relevant Section : Sec 34(2) and Sec 42 of CGST/SGST Act
Detailed Agenda Notes - Agenda for 17th GSTCM
Page 152 of 163
Report GST STL - 05.02
(for item 1 of 5.01)

List of registered taxpayers who had made inter State supply of goods and the said Integrated Tax was already apportioned as per provisions of
section 17(2) of the IGST Act. The demand was subsequently reduced due to issuance of credit notes/ ISD Credit notes to taxpayers for the said
supply

State/UT -
Year -
Month -
(Amount in Rs.)
Sr. No. GSTIN Trade name
(Legal
name, if not
available)
ARN Tax period
of return
Credit note
no.
Credit note
date
Amount of
IGST
involved in
the note
SGST/
UTGST
portion of
IGST
CGST
portion of
IGST
1 2 3 4 5 6 7 8 9 10

Total
Relevant section - Section 20 and 34(2) of CGST/SGST Act


Detailed Agenda Notes - Agenda for 17th GSTCM
Page 153 of 163
Report GST STL - 05.03
(for item 2 of 5.01)

List of registered taxpayers who had paid Integrated Tax and the said Integrated Tax was already apportioned, and whose demand was
subsequently reduced due to issuance of credit notes to composition taxpayers

State/UT -
Year -
Month -
(Amount in Rs.)
Sr. No. GSTIN Trade name
(Legal
name, if not
available)
ARN Tax period
of return
Credit note
no.
Credit note
date
Amount of
IGST
involved in
the note
SGST/
UTGST
portion of
IGST
CGST
portion of
IGST
1 2 3 4 5 6 7 8 9 10

Total
Relevant section - Section 10 and 34(2) of CGST/SGST Act




Detailed Agenda Notes - Agenda for 17th GSTCM
Page 154 of 163
Report GST STL - 05.04
(for item 3 of 5.01)

List of registered taxpayers who had paid Integrated Tax and the said Integrated Tax was already apportioned, and whose demand was
subsequently reduced due to issuance of credit notes to un-registered persons

State/UT -
Year -
Month -
(Amount in Rs.)
Sr. No. Name ARN Tax period
of return
Credit note
no.
Credit note
date
Amount of
IGST
involved in
the note
SGST/
UTGST
portion of
IGST
CGST
portion of
IGST
1 2 3 4 5 6 7 8 9

Total
Relevant section - Section 34(2) of CGST/SGST Act










Detailed Agenda Notes - Agenda for 17th GSTCM
Page 155 of 163
Report GST STL - 05.05
(for item 4 of 5.01)

List of registered taxpayers who had paid Integrated Tax and the said Integrated Tax was already apportioned, and whose demand was
subsequently reduced due to refund of pre-deposit and interest
State/UT -
Year -
Month -
(Amount in Rs.)
Sr. No. GSTIN/
Temporary
ID
Trade
name
(Legal
name, if
not
available)
Appeal
order no.
Appeal
order
date
Demand
Order
Number
Demand
Order Date
Amount of
IGST
deposit
made for
filing
appeal
SGST/
UTGST
portion of
IGST
CGST
portion of
IGST
Amount
of
interest
accrued
due to
refund of
pre-
deposit
SGST/
UTGST
portion
of
interest
CGST
portion
of
interest
1 2 3 4 5 6 7 8 9 10 11 12 13

Total
Relevant section - Section 107(6) and 112(8) of CGST/SGST Act along with Section 56 of CGST/SGST Act









Detailed Agenda Notes - Agenda for 17th GSTCM
Page 156 of 163
Report GST STL - 05.06
(for item 5 of 5.01)

Reduction due to interest apportioned earlier on account of mismatch of ITC/Credit Note but now reclaimed
(List of taxpayers)
State/UT -
Year -
Month -
(Amount in Rs.)
Sr. No. GSTIN Trade name
(Legal
name, if not
available)
Category of
IGST
available for
distribution
(mismatch of
ITC/mismatch
of Credit
note)
Original
Invoice
number
Date of
original
Apportionment
Reclaim
Date
Amount of
Interest
reclaimed
SGST/
UTGST
portion of
IGST
CGST
portion of
IGST
1 2 3 4 5 6 7 8 9 10

Total

Relevant Section number: Sec 42(7) and Sec 43(7) of CGST/ SGST Act.








Detailed Agenda Notes - Agenda for 17th GSTCM
Page 157 of 163
Report GST STL - 05.07
(for item 6 of 5.01)

Reduction due to inter-State inward supplies for which ITC was declared as ineligible but now becomes eligible
(List of taxpayers)
State/UT -
Year -
Month -
(Amount in Rs.)
Sr. No. GSTIN Trade name
(Legal
name, if not
available)
ARN
number
Tax Period
of ARN
Invoice
number in
which ITC
was
declared
ineligible, if
any
Invoice date
in which
ITC was
declared
ineligible, if
any
Amount of
ITC
declared as
ineligible
earlier
Amount of
ITC now
claimed as
eligible
SGST/
UTGST
portion of
IGST
CGST
portion of
IGST
1 2 3 4 5 6 7 8 9 10 11

Total
Relevant section - Section 42(8) and 48(10) along with Sec 43(8) and 43(10) of CGST/SGST Act









Detailed Agenda Notes - Agenda for 17th GSTCM
Page 158 of 163
Report GST STL - 05.08
(for item 7 of 5.01 )

Reduction due to recovery of outstanding dues and subsequently refunded due to appeal order and interest thereof
(List of taxpayers)
State/UT -
Year -
Month -
(Amount in Rs.)
Sr. No. GSTIN Trade
name
(Legal
name, if
not
available)
Demand
Order
Number
Demand
Order date
Appeal
Order
Number
Appeal
Order
Date
Amount of
outstanding
dues
refunded
due to
appeal order
SGST/
UTGST
portion of
IGST
CGST
portion of
IGST
Amount
of
interest
due to
refund
(col. 8)
SGST/
UTGST
portion
of IGST
CGST
portion
of IGST
1 2 3 4 5 6 7 8 9 10 11 12 13

Total


Relevant section - Sec 79, 107, 112, 117 and 118 of CGST/SGST Act along with Sec 50 of CGST/ SGST Act



Detailed Agenda Notes - Agenda for 17th GSTCM
Page 159 of 163
Report GST STL - 05.09
(for item 8 of 5.01

List of registered taxpayers where the liability of payment of Integrated Tax is reduced due to an amendment in the amount payable after the
payment on account of rectification of return
State/UT -
Year -
Month -
( Amount in Rs.)
Sr. No. GSTIN Trade name
(Legal
name, if not
available)
ARN Tax period
of ARN
Reduction
due to
Amendment
of amount
already
apportioned.
SGST/
UTGST
portion of
IGST
CGST
portion of
IGST
1 2 3 4 5 6 7 8

Total
Relevant Section: Section 37(3), 38(5) and 39(a) of CGST/SGST Act






Detailed Agenda Notes - Agenda for 17th GSTCM
Page 160 of 163
Report GST STL - 06.01
Settlement between Centre and State/UT on account of recovery made out of refund

State –
Year -
Month -
(Amount in Rs.)
Sr.
no.
GSTIN/
temporary
ID
Demand
order
no.
Demand
order
date
Refund
order
number
Refund
date
Amount of refund claimed under Act
(CGST/SGST/ UTGST/IGST/CESS)
Amount of recovery made out of refund
claimed
(CGST/SGST/UTGST/IGST/CESS)
Net
amount
to be
credited
to
State/UT

Net
amount
to be
credited
to
Centre

Tax Interest Penalty Fees Others Tax Interest Penalty Fees Others
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Total
Relevant Section: Section 79(1) and 54(10) of CGST/SGST Act







Detailed Agenda Notes - Agenda for 17th GSTCM
Page 161 of 163
Report GST STL - 07.01
Consolidated Settlement Register for State/UT
State/UT -
Year -
Month -
(Amount in Rs.)
Sr. no. Details Amount to be credited Amount to be
debited
Net Settlement
Amount
1. Settlement of accounts between Centre and State/UT
relating to Returns (GST STL 1.01)

2. Distribution of IGST amount recovered, compounding
amount and amount of pre-deposit (STL 3.01)

3. Distribution of IGST amount where place of supply
could not be determined (STL 4.01)

4. Reduction of the amount apportioned already due to
issue of credit notes, refund of deposit made for filing
appeal etc.
( STL 5.01)

5. Settlement between Centre and State/UT on account of
recovery made out of refund (STL 6.01)

Total




Detailed Agenda Notes - Agenda for 17th GSTCM
Page 162 of 163

Report GST STL - 07.02
Consolidated Settlement Register for Centre
(Book adjustment between CGST, IGST or Cess)

State/UT /All-
Year -
Month -
(Amount in Rs.)
Sr. no. Details Amount
Credited
Amount Debited Net Settlement
Amount
1. Book adjustment between CGST and IGST for a
State/UT relating to Returns (STL 2.01)

2. Distribution of IGST amount recovered, compounding
amount and amount of pre-deposit (STL 3.01)

3. Distribution of IGST amount where place of supply
could not be determined (STL 4.01)

4. Reduction of the amount apportioned already due to
issue of credit notes, refund of pre-deposit etc.
( STL 5.01)

5. Settlement between Centre and State/UT on account of
recovery made out of refund (STL 6.01)

Total


Detailed Agenda Notes - Agenda for 17th GSTCM
Page 163 of 163
Notes:
1) Settlement of funds between Centre and States under section 53 of CGST/SGST Act and section 18 of IGST Act on cross- utilization of credit of
IGST for discharging liabilities of SGST/ UTGST, CGST and vice-versa shall be made after filing of return irrespective of return status whether
valid or invalid.
2) Apportionment of IGST will be done on the basis of valid return filed by the taxable person.
3) Apportionment of IGST borne on import of goods, under section 17 of IGST Act, will be done on the basis of information received from Customs
authorities.
4) Apportionment of IGST amount collected due to issue of debit note will be done in original tables.
5) Month represents the month in which apportionment is being done
6) Tax period represents the period to which the return or the information supplied by Custom authority pertains
7) ARN refers to Application Reference Number

Detailed Agenda Notes - Agenda for 17th GSTCM