As per Notification No 66 – Central Tax , GST is not required to be levied on receipt of advance from the customers in case of supply of goods. This notification suppresses the Notification No. 40/2017-Central Tax which exempted for levy of GST of advance receipts from customers with a turnover less than Rs 150 Lacs.
As per Notification No. 48/2017-Central Tax deemed exports concept is introduced in GST and the following are classified as deemed exports
- Supply of goods by a registered person against Advance Authorisation
- Supply of capital goods by a registered person against Export Promotion Capital Goods Authorisation
- Supply of gold by a bank or Public Sector Undertaking specified in the notification No. 50/2017-Customs, dated the 30th June, 2017 (as amended) against Advance Authorisation
Exempted Supplies under GST means supplies which attract Nil or Zero rate under GST for the supply of goods or services or both. It also includes non-taxable supplies under GST. Refer to Notification No.2/2017-Central Tax (Rate) for the list of exempted goods.
Notification No. 14/2017-Central Tax (Rate), activities or transactions undertaken by the Central Government or State Government or any local authority in which they are engaged as public authority, shall be treated neither as a supply of goods nor a supply of service, namely:- “Services by way of any activity in relation to a function entrusted to a Panchayat under article 243G of the Constitution.”
Every tax invoice issued by the taxpayer under GST should have HSN (Harmonized System Nomenclature) Code in the case of supply of goods and in the case of supply of services SAC (Services Accounting Code)
Tax Deducted at source is applicable under GST also. It is different from TDS under Income Tax Act. It is applicable on the supply of goods and services as notified by the Government through GST council. Whenever payment is being made to the supplier of goods or services, GST TDS will be recovered / deducted from the payment and then only balance amount is paid.
Composite Supply as per MGL is, is a supply made by a taxable person having more than on supply of goods or services or in any combination. Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is the principal supply.