1. Presented by – CA Gagan Kedia 15.02.2017
– Exemptions
Presented by –
CA Gagan Kedia
MRG KEDIA & CO. | EXEMPTIONS |

2. The MAHABHARATA ~The Lesson to Learn
MRG KEDIA & CO. – GST TRANSITION|

3. REVERSE
CHARGE
MRG KEDIA & CO. | EXEMPTIONS |

4. Sec. 9(3) & 9(4) Section - 9 (3) Section - 9 (4)
- Govt Will issue a Notification in this case.
- in the notification, it will specify the Categories of Supplies of Goods / Services on which RCM would be applicable.
- And all the provisions of GST act shall apply on the receiver as if he is the person liable to pay tax
Section - 9 (4)
- Applicable in case of supply of taxable goods or services by an unregistered supplier to a receiver who is registered under GST.
- In such cases, the registered receiver has to pay tax to the government under Reverse Charge.
MRG KEDIA & CO. | EXEMPTIONS |

5. RCM List for Services
This is draft list.
May be changed.
List similar to present day Service tax List, with minor changes.
Items like RCM on works contract / manpower – missing
Items like RCM on Imports, GTA, Advocates, Sponsorship, Govt Services, Directors, Insurance Agents/Recovery Agents, GTV, Radio Taxi- continue
MRG KEDIA & CO. | EXEMPTIONS |

6. COMPOSITION SCHEME
MRG KEDIA & CO. | EXEMPTIONS |

7. Sec. 10: Who Can Opt: Who Cannot Opt:
Aggregate TO in PREECEEDING FY < 50L (PAN India Basis)
Manufacturer 1.0% of TO
Trader % of TO
Services of Sch-II, 6(b) 2.5% of TO
Who Cannot Opt:
Other Service providers
Inter-state supplier
Supplier through e-commerce operator
Manufacturer of Such goods
MRG KEDIA & CO. | EXEMPTIONS |

8. Sec. 10: Do’s Don’ts File CMP-01 within 30 days – migration cases.
File CMP-03 within 60 days with stock details & inward supply from unreg person.
Fill part B of REG-01 – for new registrations.
File CMP-02 prior to commencement of FY & also ITC-3
Don’ts
Cross 50L. The day you cross, Composition option gone.
Collect any taxes
Claim any ITC
Do any inter-state sale.
MRG KEDIA & CO. | EXEMPTIONS |

9. EXEMPTIONS
MRG KEDIA & CO. | EXEMPTIONS |

10. What’s the Difference b/w EXEMPTED Supply & NON TAXABLE SUPPLY
CONTENTS :
What’s the Difference b/w EXEMPTED Supply & NON TAXABLE SUPPLY
Exemption from Tax – Powers of Govt.
Various Exemptions under GST - Overview
Various Exemptions - Details
ZERO RATED SUPPLY
MRG KEDIA & CO. | EXEMPTIONS |

11. Exemption from Tax –
Powers of Govt.
MRG KEDIA & CO. | EXEMPTIONS |

12. Sec. 11 : Powers of Govt. to Grant Exemption
POWER NO. 1
If the Central or a State Government is satisfied;
that it is necessary in the public interest;
on recommendation of the Council,;
by way of a notification
MRG KEDIA & CO. | EXEMPTIONS |

13. Of Specified Description
Exemption
Absolute
Or Conditional
of Goods / Services
Of Specified Description
MRG KEDIA & CO. | EXEMPTIONS |

14. Quantum of Exemption Or ANY PART OF TAX Either WHOLE From
Any OTHER DATE mentioned in Notification
DATE OF ISSUE of Notification
MRG KEDIA & CO. | EXEMPTIONS |

15. Goods – Refer the Rate Chart (Nil%)
LIST OF EXEMPTIONS
Goods – Refer the Rate Chart (Nil%)
Services – Refer the Exemption List (83 items)
MRG KEDIA & CO. | EXEMPTIONS |

16. Sec. 11 : Contd.. POWER NO. 2 - order
If the Central or a State Government is satisfied;
that it is necessary in the public interest;
on recommendation of the Council;
by way of a special order in each case
Exempt from payment of tax
Circumstances of exceptional nature
MRG KEDIA & CO. | EXEMPTIONS |

17. Sec. 11 : Contd.. POWER NO. 3 – Retrospective
For the purpose of clarifying the scope of applicability of any exemption Notification or order;
The CG / SG may insert an explanation;
At any time within one year from ?
Will have retrospective effect.
MRG KEDIA & CO. | EXEMPTIONS |

18. Various Exemptions under GST - Overview
MRG KEDIA & CO. | EXEMPTIONS |

19. Over View – Exemptions in
Registrations
Invoices
Tax Payments
Returns
Maintaining Books
CA Audit
MRG KEDIA & CO. | EXEMPTIONS |

20. Various Exemptions under GST - DETAILS
MRG KEDIA & CO. | EXEMPTIONS |

21. Over View – Exemptions in
REGISTRATIONS
Invoices
Tax Payments
Returns
Every Supplier.
In the State from where supply
Agg TO > 20L in a FY
20L - inclding as agents
Excl Reg. Job work
Maintaining Books
CA Audit
Aggregate Turnover
Taxable supply / Exempt supply
Export / Inter-state
Same PAN / All India basis
MRG KEDIA & CO. | EXEMPTIONS |

22. Over View – Exemptions in
Registrations
INVOICES
Tax Payments
Returns
If Supplying EXEMPTED G/S
OR Composition Dealers
Exempted from issuing Invoice
Have to issue ‘Bill of Supply’ instead.
Maintaining Books
CA Audit
MRG KEDIA & CO. | EXEMPTIONS |

23. Over View – Exemptions in
Registrations
Invoices
TAX PAYMENTS
Returns
Generally online mode.
For OTC payment – limit is 10K per challan per tax period
Some persons are exempt from this 10K limit in case of OTC payments.
Maintaining Books
CA Audit
Like:
Govt Depts or
Persons authorised by them;
PO – for recovery / investigation
MRG KEDIA & CO. | EXEMPTIONS |

24. Over View – Exemptions in
Registrations
Invoices
Tax Payments
RETURNS
Generally - 3 x Monthly Returns
BUT following are exempted from monthly returns:
Maintaining Books
CA Audit
ISD
Composition NR
TDS / TCS
MRG KEDIA & CO. | EXEMPTIONS |

25. Over View – Exemptions in
Registrations
Invoices
Tax Payments
Returns
Every Registered Person shall
Maintain books of:
Production, /Manufacture;
Inward / Outward Supply;
Stock of goods
ITC
Tax Payable & Paid
MAINTAINING BOOKS
CA Audit
SEEK PERMISSION from Commissioner / Chief Commissioner
He may exempt from maintain all the above and
Instead ask to maintain simpler books.
MRG KEDIA & CO. | EXEMPTIONS |

26. Over View – Exemptions in
Registrations
Invoices
Tax Payments
Returns
Every Registered Person shall
Get his Accounts Audited
by a CA / CWA
If the Agg. TO exceeds 1Cr
And also file it with a Recon Statement
Maintaining Books
CA AUDIT
Those below the limit:
Neither get Accounts Audited
Nor file the Recon Statement ( GSTR-9B)
MRG KEDIA & CO. | EXEMPTIONS |

27. Exemptions from Demand & Recovery
5 Years in case of intent to evade tax.
3 years if not
MRG KEDIA & CO. | EXEMPTIONS |

28. ZERO RATED SUPPLY
MRG KEDIA & CO. | EXEMPTIONS |

29. ZERO RATED SUPPLY Taxed @ ZERO rate (0%) But ITC AVAILABLE
How is it Different From Nil Rated Supply ?
MRG KEDIA & CO. | EXEMPTIONS |

30. What are ZERO RATED SUPPLY ?
Export of G/S
Supply to SEZ Dev/Unit
MRG KEDIA & CO. | EXEMPTIONS |

31. For any queries, feel free to contact -
THANK YOU
For any queries, feel free to contact -
CA GAGAN KEDIA, Partner – Indirect Tax
MRG KEDIA & CO.
(Chartered Accountants)
Unit No. 408, 4th Floor, Kamalalaya Centre
156A, Lenin Sarani, Dharamtalla, Kol-13
# ;
MRG KEDIA & CO. | EXEMPTIONS |