1. Explain the provisions relating to tax liability on Composite supply and mixed supply.

Ans:
Composite Supply
 It includes two or more goods or services supplied together.
 These are naturally bundled and usually provided together in the normal course of business.
 One of the supplies is the main item, called the principal supply.
 The tax rate applicable to the principal supply is charged on the entire composite supply.
 Example: Air ticket with a meal. The main service is air travel, so GST is charged as per air
travel.
Mixed Supply
 It also includes two or more goods or services supplied together for a single price.
 These items are not naturally bundled and can be sold separately.
 There is no principal supply.
 The highest GST rate among the items in the supply is applied.
 Example: Diwali gift pack containing sweets, chocolates, and dry fruits. GST is charged at the
highest applicable rate among them.
Key Differences
 Composite supply is naturally bundled; mixed supply is not.
 Composite supply has a principal supply; mixed supply does not.
 Composite supply is taxed at the rate of the principal item.
 Mixed supply is taxed at the highest rate among the items.

2. Briefly explain the concept of TDS and TCS under GST Law.
Ans:
TDS
 TDS means Tax Deducted at Source.
 It is a method where the buyer deducts a certain percentage of tax when making
payment to the supplier.
 This concept was first used under Income Tax and is now also in GST.
 It helps the government in tracking transactions and stopping tax evasion.
 Section 51 of the CGST Act deals with TDS under GST.
 It mentions who has to deduct tax, at what rate, and how to deposit it.
 The tax deducted is shown in the supplier’s electronic cash ledger.
TCS
 TCS means Tax Collected at Source.
 It is used when sellers sell goods or services through an e-commerce platform.
 The e-commerce operator collects the payment from the customer and deducts a small
percentage as TCS.
 Then the operator gives the rest of the payment to the seller.
 Section 52 of the CGST Act explains the rules of TCS under GST.
 It tells who must collect TCS, the rate, and how to deposit it.
 The amount collected is also shown in the seller’s electronic cash ledger.
0.5% Total Tax CGST 0.25% & SGST 0.25%

 TDS and TCS both are ways to collect tax early.

 They help the government keep a record of transactions and prevent tax fraud.
 The amount collected or deducted is available for the supplier to use for paying future
GST.

TCS Not Collected – Penalty under Sec. 122(1)(vi): ₹10,000 or amount not collected,
 whichever is higher
2. TCS Collected but Not Paid – Recovery under Sec. 76: TCS + interest. Penalty under Sec.
122(1)(vi) may also apply after hearing
3. Late Filing of TCS Returns – No late fee under Sec. 47. General penalty up to ₹25,000
under Sec. 125. Supplier won't get credit until return is filed

3. Explain “Related persons” and “distinct persons” under GST.

Ans:
Related Persons (as per Explanation to Section 15 of CGST Act)
 Two persons are considered related if:
o They are officers or directors in each other’s businesses
o They are business partners
o They have an employer-employee relationship
o One person owns or controls 25% or more shares or voting power in both
o One person controls the other person directly or indirectly
o Both are controlled by a third person
o Together, they control another person
o They are members of the same family
 The term “person” also includes companies, firms, and other legal entities
 If one person is the sole agent, sole distributor, or sole concessionaire of another, they
are also treated as related
Distinct Persons (as per Section 25 of CGST Act)
 When a person has more than one GST registration in the same or different
states/UTs, each registration is treated as a separate or distinct person
 Section 25(4):
o If one person takes multiple registrations in one or more states/UTs, each
registration is treated as a distinct person
 Section 25(5):
o If a person has establishments in different states/UTs, they are considered
distinct persons under GST law.

4. Briefly discuss Remission of Duties and Taxes on Export Promotion scheme [RODTEP]

The government replaced the old export benefit scheme MEIS with a new one called
RoDTEP starting from January 1, 2021.

 RoDTEP helps exporters by giving refunds on certain taxes and duties that were not
refunded earlier.
 The main goal is to remove hidden taxes that increase the cost of exported goods.
 It refunds taxes like mandi tax, municipal tax, property tax, VAT, coal cess, central
excise on fuel, electricity duty, stamp duty on export documents, and more.
 RoDTEP covers all items that were previously under MEIS and RoSCTL schemes.
 This scheme aims to support Indian exporters and make them competitive
internationally.

5. Analyze the Concept of “Deemed exports” with reference to Foreign Trade Policy.
Here’s a simple bullet-point summary for the Deemed Exports information:
  Deemed Exports mean goods made in India and supplied from Domestic Tariff Area
(DTA) to units like EOU, EHTP, STP, and BTP.
 Suppliers in DTA get export incentives for these deemed exports.
Types of deemed exports:
 Goods supplied by a manufacturer:
1. Against Advance Authorization or DFIA.
2. To units in EOU, STP, BTP, or EHTP.
3. Capital goods supplied against EPCG authorization.
4. Marine freight containers supplied by 100% EOU to another 100% EOU (if
exported within 6 months).
 Goods supplied by contractors or sub-contractors:
1. To projects financed by multilateral/bilateral agencies under international
bidding.
2. To projects allowing zero customs duty imports.
3. To mega power projects via international bidding.
4. To UN or international organizations.
5. To nuclear projects through competitive bidding (not necessarily
international).
Benefits of deemed exports:
 Eligible for Advance Authorization or DFIA.
 Can claim Deemed Export Drawback.
 Supplies to EOUs are treated as deemed exports under GST laws with tax refund
benefits.

6. Prepare a list of the contents of Form GSTR 3B.

Ans : Form GSTR-3B has 6 main parts:

1. GSTIN number of the registered person

2. Legal name of the registered person
3. Summary of sales (outward supplies) and purchases under reverse charge, split
by buyer type (unregistered, composite, UIN holders)
4. Summary of Input Tax Credit (ITC) claimed, split into IGST, CGST,
SGST/UTGST, and Cess
5. Summary of exempted, zero-rated, and non-GST purchases
6. Details of tax payment, including tax owed, ITC used, TDS credit, cash
payment, interest, and late fees

7. Briefly summarize the provisions relating to TDS under GST Law

Tax deducted at source is a way to collect tax by deducting a percentage from payments for goods or
services.
 Who must deduct TDS?
Government departments, local authorities, government agencies, boards set up by law,
societies registered under Societies Act, and public sector undertakings.
 When to deduct TDS?
If payment for goods or services under a contract is over ₹2.5 lakh (excluding GST).
 Conditions for deduction:
  Contract value of taxable supplies > ₹2.5 lakh.
 If contract includes both taxable and exempted supplies, only taxable part over ₹2.5
lakh counts.
 For intra-state supply (same state), deduct 1% CGST + 1% SGST.
 For inter-state supply, deduct 2% IGST.
 Deduct TDS even on advance payments made after 1 Oct 2018.

8. Explain Online information and database access retrieval service (OIDAR)? Identify few
services which are notified under section 9(5) of CGST Act.

From 1st October 2023, Online Information and Database Access or Retrieval Services
(OIDAR) means services delivered over the internet or electronic networks that can’t be
supplied without IT.

 These include:
o Internet advertising
o Cloud services
o E-books, movies, music, software online
o Providing data electronically
o Online digital content like movies, music, shows
o Digital data storage
o Online gaming (except online money gaming)
 Services notified under Section 9(5) of CGST Act include:

1. Passenger transport
2. Accommodation
3. Housekeeping
4. From 1 Jan 2022, Restaurant services (like Cloud Kitchens)

9. Analyze the Advance Authorization Scheme with reference to Foreign Trade Policy.

 Advance Authorisation allows duty-free import of inputs used to make export

products (including fuel, oil, catalyst used in production).
 Who can apply? Manufacturer exporters or merchant exporters tied to a
manufacturer.
 Only manufacturer exporters can get AA for pharmaceutical products made by Non-
Infringing processes.
 Eligible supplies: Physical exports (including SEZ), intermediate supplies, deemed
exports, and supplies of stores on foreign vessels/aircraft (with specific norms).
 How is AA issued? Based on:
o Standard Input Output Norms (SION),
o Self-declaration,
o Prior norms fixed by Norms Committee,
o Or Self Ratification Scheme.
 Exporters with AEO certificate or certain status holders (2-star or above) can apply,
but DGFT can deny based on risk.
 Some products and inputs are excluded from this scheme.

10. Analyse the provisions of E-Way Bill and also discuss when it should be issued and who should
generate the same.
  E-Way Bill is an electronic document needed for moving goods worth over ₹50,000 in a
vehicle.
 It can be generated on the E-Way Bill Portal, or via SMS, app, or API integration.
 Once generated, a unique number (EBN) is shared with the supplier, buyer, and transporter.
 In ‘Bill To – Ship To’ cases, either the seller or buyer can generate it.
When is it required?
 When goods worth over ₹50,000 are moved:
o For supply (sale, transfer, exchange)
o For reasons other than supply (like returns)
o From an unregistered person to a registered one
Mandatory even if value is below ₹50,000 for:
1. Inter-State supply to a job worker
2. Inter-State transport of handicrafts by unregistered dealers
Who should generate it?
1. Registered persons – when moving goods worth over ₹50,000 (optional for lower value)
2. Unregistered persons – if supplying to registered ones, the receiver must comply
3. Transporters – must generate it if supplier hasn’t

11. The penal provisions for not filing return are

📄 Late Fees for GSTR-1, GSTR-3B, GSTR-4, GSTR-7

✅ Nil Returns (All Forms):
 ₹500 total (₹250 CGST + ₹250 SGST or ₹500 IGST)
📊 Tax Returns (Turnover-Based):
Annual Turnover (Previous FY) Late Fee
Up to ₹1.5 crore ₹2,000 (₹1,000 CGST + ₹1,000 SGST or ₹2,000 IGST)
₹1.5 crore – ₹5 crore ₹5,000 (₹2,500 CGST + ₹2,500 SGST or ₹5,000 IGST)
Above ₹5 crore Max ₹5,000 under Section 47
🧾 GSTR-4 (Composition Scheme)
 Nil return: ₹500 (₹250 CGST + ₹250 SGST)
 With tax: ₹2,000 (₹1,000 CGST + ₹1,000 SGST)

📥 GSTR-7 (TDS Return)

 ₹25 per day (per Act), max ₹100/day (CGST + SGST combined)

📅 GSTR-9 (Annual Return)

Turnover in FY Late Fee Maximum Cap
Up to ₹5 crore ₹50/day (₹25 CGST + ₹25 SGST) 0.04% of turnover (0.02% CGST + 0.02% SGST)
₹5 crore – ₹20 crore ₹100/day (₹50 CGST + ₹50 SGST) 0.04% of turnover (0.02% CGST + 0.02% SGST)
 ✅ Waiver: For FYs 2017–18 to 2021–22, if return is filed between 1st April to 30th June
2023, late fee capped at ₹10,000.

12. Discuss various Trade Facilitation Measures taken by Indian Customs

1) Facility of deferred payment 2) Introduction of Revised Authorised Economic

Programme(AEO) 3) Relaxation in Insurance cover/Bond/BG 4) Setting Up of Customs
Clearance Facilitation Committee (CCFC) 5) Amendments in Warehousing provisions for
introducing record based controls 6) Indian Customs Single Window Project –Online
message exchange7) Reduction in mandatory documents for imports and exports 8) Adoption
of Digital Signature: 9) 24×7 Customs Clearance 10) Abolition of Mate Receipt 11)
Reducing/eliminating printouts in Customs Clearance 12) The Courier Imports and Exports
(Clearance) Amendment Regulations,2016 13) Import Data Processing and Management
System (IDPMS) 14) Email notification 15) Single Window Interface for Facilitation of
Trade has now been extended to Export 16) Roll Out of Express Cargo Clearance System
(ECCS) at Courier Terminal, Sahar Mumbai 17) Ease of doing business 18) Streamlining of
process of Arrival Manifest or Import Manifest amendment for import through sea.
Summary :
"FAIR SWIFT C-IDEAS POWERED"

Each letter stands for a keyword related to the points:

F – Facility of deferred payment

A – AEO (Authorised Economic Operator) revised program
I – Insurance/Bond/BG relaxation
R – Record-based warehousing control

S – Single Window Project (imports/exports)

W – Warehousing provisions amended
I – IDPMS (Import Data Processing & Management System)
F – Facilitation Committee (CCFC setup)
T – 24×7 Customs clearance

C – Courier regulations amended

I – Interface (Single Window Interface for Exports)
D – Digital Signature adoption
E – ECCS (Express Cargo Clearance System)
A – Arrival Manifest simplification
S – Streamlining clearance process

P – Printouts eliminated
O – Online messaging
W – Withdrawal of Mate Receipt
E – Email notifications
R – Reduction in mandatory documents
D – Doing business made easier

13. Contents of Form GSTR-9C:

GSTR-9C has 2 main parts:

Part-A: Reconciliation Statement

 Part-I: Basic Details – FY, GSTIN, Legal/Trade Name, audit applicability

 Part-II: Turnover Reconciliation – Match turnover in GSTR-9 with audited
financials (PAN-level split to GSTIN)
 Part-III: Tax Reconciliation – Match tax paid in GSTR-9 with books, rate-wise, and
report any extra liability
  Part-IV: ITC Reconciliation – Match ITC claimed with financials, show
eligible/ineligible ITC and reversals

Part-B: Self-Certification

 Now only self-certification is needed (by taxpayer) or by CA or cost accountant

certification required

14. QRMP Sceme

QRMP Scheme (Quarterly Return, Monthly Payment)

For small taxpayers with turnover up to ₹5 crore (PAN-based in previous FY)
Key Features:
 Returns:
o GSTR-1 and GSTR-3B to be filed quarterly
o Monthly payment via Form GST PMT-06 for first two months
 Turnover Limit Breach:
o If turnover crosses ₹5 crore during a quarter, QRMP scheme not allowed
from next quarter
 GSTIN-wise Option:
o Can be opted separately for each GSTIN under the same PAN
Invoice Furnishing Facility (IFF):
 Optional monthly upload of B2B invoices for first 2 months
 Max limit: ₹50 lakh per month
 Upload window: 1st to 13th of the next month
 Reflected in recipient’s GSTR-2A and 2B
Form GSTR-3B:
 Filed quarterly
 Due dates:
o 22nd for Category 1 States
o 24th for Category 2 States
 Excess payment: Can be refunded or carried forward
Tax Payment (Form PMT-06):
 Pay tax monthly for first 2 months
 Due by 25th of the next month
 Adjusted in quarterly GSTR-3B.

15. EPCG Scheme (Export Promotion Capital Goods):

 Allows duty-free import or indigenous procurement of capital goods for export

production
 Objective: Enhance India's manufacturing competitiveness by reducing capital cost
 Zero customs duty; also exempted from IGST & Compensation Cess (if not
claiming ITC)
 Actual User Condition: Capital goods must be used by the importer until export
obligation (EO) is fulfilled
 Validity: EPCG Authorisation valid for 24 months from issue date; no revalidation
allowed
 Domestic Sourcing: Allowed via Invalidation Letter or Advance Release Order;
domestic supplier gets deemed export benefits; sourcing from 100% EOUs also
allowed
 Export Obligation (EO):
o Total EO = 6 times of duties/taxes/cess saved
o To be fulfilled within 6 years from authorization date
o Includes Average EO and Specific EO (Specific is over & above Average)
 Eligible exports for EO:
o Physical exports
o Specified deemed exports
o Supplies under Advance Authorisation, DFIA, Duty Drawback, RoSCTL,
RoDTEP
o Exports from DTA only
o Supply of ITA-1 items to DTA (payment in free foreign exchange)