Ch 21 - Basic Procedures in GST | GST Saral by CA Dhruv Aggarwal PDF Download

 Page 1


CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
 
 
 
 
 
 
 
 
 
 
CHAPTER 21 - Basic procedures i n GST 
 
 
 
 
 
 
 
 
 
21.1 Background 
CHAPTER 21 
 
Basic procedures in GST 
 
GST is a very procedure oriented legislation. Substantial benefits can be lost and penalties can be imposed 
simply because proper procedures were not fo lowed. 
GST procedures are based on e-governance. Submission of papers and physical inter-face with department is 
minimum. 
Basic Procedures are as follows — 
 
(a)   Registration with GST which is common for IGST, SGST, UTGST and CGST 
(b)   Electronic payment of taxes 
(c)   Filing of returns which are common for IGST, SGST, UTGST and CGST 
These core procedures are discussed under di fferent chapters. 
No statutory records or registers have been specified in GST Act. Normal records of taxable person, giving 
required details are sufficient. 
Self assessment  - Assessment under GST is basica ly a self assessment. However, there are provisions of 
audit, inspection, visits (raids) etc. Tax liability can arise during such inspection, audit, visits etc. 
Government  can specify specific procedures  for registration, payment, return  etc. - The Government 
may, on the recommendations  of the Council,  and subject to such conditions  and safeguards  as may be 
prescribed, notify certain classes of registered persons, and the special procedures to be fo lowed by such 
persons including those with regard to registration, furnishing of return, payment of tax and administration of 
such persons - section 148 of CGST Act. 
21.1-1 Taxable Person 
 
Taxable person means a person who is registered or liable to be registered under section 22 or 24 of CGST 
Act - section 2(107) of CGST Act. 
Separate  GST Registration  means  distinct  and  separate  taxable  person,  even if PAN is same - A 
person who has obtained or is required to obtain more than one registration, whether in one State or Union 
Territory or more than one State or Union Territory, sha l, in respect of each such registration, be treated as 
distinct persons for the purposes of this Act- section 25(4) of CGST Act. 
Separate Registration practically    means separate 'taxable person' for purpose of GST. Each separate 
taxable person will require  separate  GST registration,  separate  payment  of taxes,  separate  services  of 
invoices, separate returns, separate assessments, separate demands etc. 
Establishment in another  State is distinct person even if not registered under GST - Where a person 
who  has  obtained  or  is  required  to  obtain  registration  in a  State  or  Union  territory  in respect  of an 
Page 2


CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
 
 
 
 
 
 
 
 
 
 
CHAPTER 21 - Basic procedures i n GST 
 
 
 
 
 
 
 
 
 
21.1 Background 
CHAPTER 21 
 
Basic procedures in GST 
 
GST is a very procedure oriented legislation. Substantial benefits can be lost and penalties can be imposed 
simply because proper procedures were not fo lowed. 
GST procedures are based on e-governance. Submission of papers and physical inter-face with department is 
minimum. 
Basic Procedures are as follows — 
 
(a)   Registration with GST which is common for IGST, SGST, UTGST and CGST 
(b)   Electronic payment of taxes 
(c)   Filing of returns which are common for IGST, SGST, UTGST and CGST 
These core procedures are discussed under di fferent chapters. 
No statutory records or registers have been specified in GST Act. Normal records of taxable person, giving 
required details are sufficient. 
Self assessment  - Assessment under GST is basica ly a self assessment. However, there are provisions of 
audit, inspection, visits (raids) etc. Tax liability can arise during such inspection, audit, visits etc. 
Government  can specify specific procedures  for registration, payment, return  etc. - The Government 
may, on the recommendations  of the Council,  and subject to such conditions  and safeguards  as may be 
prescribed, notify certain classes of registered persons, and the special procedures to be fo lowed by such 
persons including those with regard to registration, furnishing of return, payment of tax and administration of 
such persons - section 148 of CGST Act. 
21.1-1 Taxable Person 
 
Taxable person means a person who is registered or liable to be registered under section 22 or 24 of CGST 
Act - section 2(107) of CGST Act. 
Separate  GST Registration  means  distinct  and  separate  taxable  person,  even if PAN is same - A 
person who has obtained or is required to obtain more than one registration, whether in one State or Union 
Territory or more than one State or Union Territory, sha l, in respect of each such registration, be treated as 
distinct persons for the purposes of this Act- section 25(4) of CGST Act. 
Separate Registration practically    means separate 'taxable person' for purpose of GST. Each separate 
taxable person will require  separate  GST registration,  separate  payment  of taxes,  separate  services  of 
invoices, separate returns, separate assessments, separate demands etc. 
Establishment in another  State is distinct person even if not registered under GST - Where a person 
who  has  obtained  or  is  required  to  obtain  registration  in a  State  or  Union  territory  in respect  of an 
CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
establishment,  has an establishment  in another State or Union territory,  then such establishments  shall be 
treated as establishments of distinct persons for the purposes of this Act. 
This will be so even if the establishment in another State is not registered under GST- section 25(5) of CGST 
Act. 
Persons  with small  turnover  are  not  taxable  person  - A person will not be taxable person until his 
aggregate turnover in a financial year exceeds specified limits. 
21.2 Administration of GST 
 
The apex body for deciding policies in respect of GST is 'Goods and Services Tax Council'  which is a 
constitutional body. 
The CGST and IGST will be is administered by department of CGST [present Central Excise and Service 
Tax Department] 
 
SGST is administered by Commissioner of SGT of each State and officers subordinate to him. 
The administrative set up at Centre is briefly as follows - 
Ministry of Finance, Central  Government  - Ministry of Finance, Government of India is the administrative 
ministry for CGST and IGST. 
Tax Policy Research  Unit (TPRU) - A Tax Policy Research Unit has been set up (TPRU). It is common 
for direct and indirect taxes. Further, Tax Policy Council has been established with Finance Minister as its 
Chairman - Press release dated 2-2-2016. 
CBE&C  -  A Central Board  of Excise  and Customs  (CBE&C  -  ca led 'Board')  has been formed  with 
headquarters at New Delhi. This Board, consisting of six/seven members, headed by Chairman, has powers to 
administer the CGST law. CBE&C functions under Ministry of Finance, Government of India. 
CBE&C is proposed to be converted into Central Board of Indirect Taxes and Customs [CBIC]. 
Section 3 of CGST Act specifies various classes of officers. 
CBE&C is empowered to appoint officers under CGST Act - section 4(1) of CGST Act. 
 
CBE&C  can authorise  Assistant  Commissioner  and  above  to  appoint  officers  below  rank  of Assistant 
Commissioner - section 4(2) of CGST Act. 
 
Commissioner can delegate their powers to any officer subordinate to him, , subject to conditions as may be 
specified - section 5(3) of CGST Act. 
Commissioner  includes  Principal Commissioner  - "Commissioner" means the Commissioner of central 
tax (CGST) and includes  the Principal Commissioner  of Central Tax appointed  under section 3 and the 
Commissioner of integrated tax appointed under the Integrated Goods and Services Tax Act - section 2(24) 
of CGST Act. 
21.2-1 Officers under CGST 
 
Fo lowing are officers under GST. 
 
Principal Chief Commissioner/Chief Commissioner  of CGST - Country is divided in several zones. 
Each 'zone' is under supervision of 'Principal  Chief Commissioner of CGST' or 'Chief Commissioner of 
CGST'. Principal Chief Commissioner/Chief Commissioner has administrative control over Principal 
Commissioners,   Commissioners   and   First  Appe late  Authority  within  his  zone.   Senior   grade   Chief 
Commissioner will be designated as Principal Chief Commissioner, though both have same powers. 
Similarly there are posts of Principal Director General and Director General of para lel ranks for various 
Page 3


CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
 
 
 
 
 
 
 
 
 
 
CHAPTER 21 - Basic procedures i n GST 
 
 
 
 
 
 
 
 
 
21.1 Background 
CHAPTER 21 
 
Basic procedures in GST 
 
GST is a very procedure oriented legislation. Substantial benefits can be lost and penalties can be imposed 
simply because proper procedures were not fo lowed. 
GST procedures are based on e-governance. Submission of papers and physical inter-face with department is 
minimum. 
Basic Procedures are as follows — 
 
(a)   Registration with GST which is common for IGST, SGST, UTGST and CGST 
(b)   Electronic payment of taxes 
(c)   Filing of returns which are common for IGST, SGST, UTGST and CGST 
These core procedures are discussed under di fferent chapters. 
No statutory records or registers have been specified in GST Act. Normal records of taxable person, giving 
required details are sufficient. 
Self assessment  - Assessment under GST is basica ly a self assessment. However, there are provisions of 
audit, inspection, visits (raids) etc. Tax liability can arise during such inspection, audit, visits etc. 
Government  can specify specific procedures  for registration, payment, return  etc. - The Government 
may, on the recommendations  of the Council,  and subject to such conditions  and safeguards  as may be 
prescribed, notify certain classes of registered persons, and the special procedures to be fo lowed by such 
persons including those with regard to registration, furnishing of return, payment of tax and administration of 
such persons - section 148 of CGST Act. 
21.1-1 Taxable Person 
 
Taxable person means a person who is registered or liable to be registered under section 22 or 24 of CGST 
Act - section 2(107) of CGST Act. 
Separate  GST Registration  means  distinct  and  separate  taxable  person,  even if PAN is same - A 
person who has obtained or is required to obtain more than one registration, whether in one State or Union 
Territory or more than one State or Union Territory, sha l, in respect of each such registration, be treated as 
distinct persons for the purposes of this Act- section 25(4) of CGST Act. 
Separate Registration practically    means separate 'taxable person' for purpose of GST. Each separate 
taxable person will require  separate  GST registration,  separate  payment  of taxes,  separate  services  of 
invoices, separate returns, separate assessments, separate demands etc. 
Establishment in another  State is distinct person even if not registered under GST - Where a person 
who  has  obtained  or  is  required  to  obtain  registration  in a  State  or  Union  territory  in respect  of an 
CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
establishment,  has an establishment  in another State or Union territory,  then such establishments  shall be 
treated as establishments of distinct persons for the purposes of this Act. 
This will be so even if the establishment in another State is not registered under GST- section 25(5) of CGST 
Act. 
Persons  with small  turnover  are  not  taxable  person  - A person will not be taxable person until his 
aggregate turnover in a financial year exceeds specified limits. 
21.2 Administration of GST 
 
The apex body for deciding policies in respect of GST is 'Goods and Services Tax Council'  which is a 
constitutional body. 
The CGST and IGST will be is administered by department of CGST [present Central Excise and Service 
Tax Department] 
 
SGST is administered by Commissioner of SGT of each State and officers subordinate to him. 
The administrative set up at Centre is briefly as follows - 
Ministry of Finance, Central  Government  - Ministry of Finance, Government of India is the administrative 
ministry for CGST and IGST. 
Tax Policy Research  Unit (TPRU) - A Tax Policy Research Unit has been set up (TPRU). It is common 
for direct and indirect taxes. Further, Tax Policy Council has been established with Finance Minister as its 
Chairman - Press release dated 2-2-2016. 
CBE&C  -  A Central Board  of Excise  and Customs  (CBE&C  -  ca led 'Board')  has been formed  with 
headquarters at New Delhi. This Board, consisting of six/seven members, headed by Chairman, has powers to 
administer the CGST law. CBE&C functions under Ministry of Finance, Government of India. 
CBE&C is proposed to be converted into Central Board of Indirect Taxes and Customs [CBIC]. 
Section 3 of CGST Act specifies various classes of officers. 
CBE&C is empowered to appoint officers under CGST Act - section 4(1) of CGST Act. 
 
CBE&C  can authorise  Assistant  Commissioner  and  above  to  appoint  officers  below  rank  of Assistant 
Commissioner - section 4(2) of CGST Act. 
 
Commissioner can delegate their powers to any officer subordinate to him, , subject to conditions as may be 
specified - section 5(3) of CGST Act. 
Commissioner  includes  Principal Commissioner  - "Commissioner" means the Commissioner of central 
tax (CGST) and includes  the Principal Commissioner  of Central Tax appointed  under section 3 and the 
Commissioner of integrated tax appointed under the Integrated Goods and Services Tax Act - section 2(24) 
of CGST Act. 
21.2-1 Officers under CGST 
 
Fo lowing are officers under GST. 
 
Principal Chief Commissioner/Chief Commissioner  of CGST - Country is divided in several zones. 
Each 'zone' is under supervision of 'Principal  Chief Commissioner of CGST' or 'Chief Commissioner of 
CGST'. Principal Chief Commissioner/Chief Commissioner has administrative control over Principal 
Commissioners,   Commissioners   and   First  Appe late  Authority  within  his  zone.   Senior   grade   Chief 
Commissioner will be designated as Principal Chief Commissioner, though both have same powers. 
Similarly there are posts of Principal Director General and Director General of para lel ranks for various 
CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
specified functions. 
 
Principal Director General  - Offices of Principal Director General have been created for monitoring some 
specified functions e.g., Director General of Central Excise Inte ligence (DGCEI), Director General (Revenue 
Inte ligence) (DGRI), Directorate General of Inspection (Customs and Central Excise), Director General of 
Export  Promotion  (DGEP),  Director  General Service  Tax (DGST),  Director  General (Vigilance),  Duty 
Drawback Directorate etc. [Their main function is to create more and more promotion avenues to revenue 
officers and create more confusion and nuisance]. 
Principal  Commissioner/Commissioner of  Central   Excise  -  Each  'zone'  covers  various 
Commissionerates  and Principal Commissioner  of CGST or Commissioner  of CGST is Administrative  in- 
charge of the 'Commissionerate'. 
Similarly there are posts of Principal Additional Director General and Additional Director General of para lel 
ranks for various specified functions. 
First Appellate Authority of CGST - He is of rank of Commissioner. 
 
Additional and Joint Commissioners  - There are Additional Commissioner/s and Joint Commissioner/s in 
each Commissionerate. The para lel posts are Additional Directors and Joint Directors. 
Deputy Commissioner, Assistant Commissioner and Superintendent - Each Commissionerate is divided 
into  divisions  and  each  division  is  under  administrative  control  of 'Deputy  Commissioner'  or  'Assistant 
Commissioner of Central Excise'. The para lel posts are Deputy Directors and Assistant Directors 
The division under each Deputy/Assistant Commissioner is further divided into various ranges. 
 
21.2-2 Commissioner in Board or Joint Secretary in Board 
 
Various sections authorise Commissioner for various purposes. There are numerous Commissioners in India. 
They may fo low divergent practices. Hence, it is provided by such powers will be delegated by Commissioner 
or Joint Secretary posted in Board (i.e. CBE&C). 
Such Commissioner in Board will exercise fo lowing powers on a l India basis [section 168(2) of CGST Act]- 
(a)   Appointment of 'proper officer' for various functions - section 2(91) of CGST Act. 
(b)   Officer can exercise powers of officer subordinate to him - section 5(2) of CGST Act. 
(c)   notifying any person who may be granted UIN (Unique Identity Number) (instead of registration 
number) - section 25(9)(b) of CGST Act. 
(d)   Notifying class of persons to maintain additional accounts or permitting class of persons to maintain 
accounts in di fferent manner - section 35(3) and 35(4) of CGST Act. 
(e)   Extending time limit for filing return for certain class of persons - section 37(1) of CGST Act. 
(f)  Extending time limit for furnishing details for certain class of persons - section 38(2) of CGST Act. 
(g)   Extending time limit for filing return for certain class of persons - section 39(6) of CGST Act. 
(h)   Expenses of special audit by Chartered/Cost Accountant - section 66(5) of CGST Act. 
(i)   Where principal need not disclose place of job worker as additional place of business - section 
143(1) of CGST Act. 
(j)   Direction to co lect statistics - section 151(1) of CGST Act. 
(k)  Publish information relating to class of taxable persons or class of transactions  in public interest 
section 158(3)(i) of CGST Act. 
(l)   Delegating power of Commissioner to another authority - section 167 of CGST Act. 
Page 4


CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
 
 
 
 
 
 
 
 
 
 
CHAPTER 21 - Basic procedures i n GST 
 
 
 
 
 
 
 
 
 
21.1 Background 
CHAPTER 21 
 
Basic procedures in GST 
 
GST is a very procedure oriented legislation. Substantial benefits can be lost and penalties can be imposed 
simply because proper procedures were not fo lowed. 
GST procedures are based on e-governance. Submission of papers and physical inter-face with department is 
minimum. 
Basic Procedures are as follows — 
 
(a)   Registration with GST which is common for IGST, SGST, UTGST and CGST 
(b)   Electronic payment of taxes 
(c)   Filing of returns which are common for IGST, SGST, UTGST and CGST 
These core procedures are discussed under di fferent chapters. 
No statutory records or registers have been specified in GST Act. Normal records of taxable person, giving 
required details are sufficient. 
Self assessment  - Assessment under GST is basica ly a self assessment. However, there are provisions of 
audit, inspection, visits (raids) etc. Tax liability can arise during such inspection, audit, visits etc. 
Government  can specify specific procedures  for registration, payment, return  etc. - The Government 
may, on the recommendations  of the Council,  and subject to such conditions  and safeguards  as may be 
prescribed, notify certain classes of registered persons, and the special procedures to be fo lowed by such 
persons including those with regard to registration, furnishing of return, payment of tax and administration of 
such persons - section 148 of CGST Act. 
21.1-1 Taxable Person 
 
Taxable person means a person who is registered or liable to be registered under section 22 or 24 of CGST 
Act - section 2(107) of CGST Act. 
Separate  GST Registration  means  distinct  and  separate  taxable  person,  even if PAN is same - A 
person who has obtained or is required to obtain more than one registration, whether in one State or Union 
Territory or more than one State or Union Territory, sha l, in respect of each such registration, be treated as 
distinct persons for the purposes of this Act- section 25(4) of CGST Act. 
Separate Registration practically    means separate 'taxable person' for purpose of GST. Each separate 
taxable person will require  separate  GST registration,  separate  payment  of taxes,  separate  services  of 
invoices, separate returns, separate assessments, separate demands etc. 
Establishment in another  State is distinct person even if not registered under GST - Where a person 
who  has  obtained  or  is  required  to  obtain  registration  in a  State  or  Union  territory  in respect  of an 
CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
establishment,  has an establishment  in another State or Union territory,  then such establishments  shall be 
treated as establishments of distinct persons for the purposes of this Act. 
This will be so even if the establishment in another State is not registered under GST- section 25(5) of CGST 
Act. 
Persons  with small  turnover  are  not  taxable  person  - A person will not be taxable person until his 
aggregate turnover in a financial year exceeds specified limits. 
21.2 Administration of GST 
 
The apex body for deciding policies in respect of GST is 'Goods and Services Tax Council'  which is a 
constitutional body. 
The CGST and IGST will be is administered by department of CGST [present Central Excise and Service 
Tax Department] 
 
SGST is administered by Commissioner of SGT of each State and officers subordinate to him. 
The administrative set up at Centre is briefly as follows - 
Ministry of Finance, Central  Government  - Ministry of Finance, Government of India is the administrative 
ministry for CGST and IGST. 
Tax Policy Research  Unit (TPRU) - A Tax Policy Research Unit has been set up (TPRU). It is common 
for direct and indirect taxes. Further, Tax Policy Council has been established with Finance Minister as its 
Chairman - Press release dated 2-2-2016. 
CBE&C  -  A Central Board  of Excise  and Customs  (CBE&C  -  ca led 'Board')  has been formed  with 
headquarters at New Delhi. This Board, consisting of six/seven members, headed by Chairman, has powers to 
administer the CGST law. CBE&C functions under Ministry of Finance, Government of India. 
CBE&C is proposed to be converted into Central Board of Indirect Taxes and Customs [CBIC]. 
Section 3 of CGST Act specifies various classes of officers. 
CBE&C is empowered to appoint officers under CGST Act - section 4(1) of CGST Act. 
 
CBE&C  can authorise  Assistant  Commissioner  and  above  to  appoint  officers  below  rank  of Assistant 
Commissioner - section 4(2) of CGST Act. 
 
Commissioner can delegate their powers to any officer subordinate to him, , subject to conditions as may be 
specified - section 5(3) of CGST Act. 
Commissioner  includes  Principal Commissioner  - "Commissioner" means the Commissioner of central 
tax (CGST) and includes  the Principal Commissioner  of Central Tax appointed  under section 3 and the 
Commissioner of integrated tax appointed under the Integrated Goods and Services Tax Act - section 2(24) 
of CGST Act. 
21.2-1 Officers under CGST 
 
Fo lowing are officers under GST. 
 
Principal Chief Commissioner/Chief Commissioner  of CGST - Country is divided in several zones. 
Each 'zone' is under supervision of 'Principal  Chief Commissioner of CGST' or 'Chief Commissioner of 
CGST'. Principal Chief Commissioner/Chief Commissioner has administrative control over Principal 
Commissioners,   Commissioners   and   First  Appe late  Authority  within  his  zone.   Senior   grade   Chief 
Commissioner will be designated as Principal Chief Commissioner, though both have same powers. 
Similarly there are posts of Principal Director General and Director General of para lel ranks for various 
CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
specified functions. 
 
Principal Director General  - Offices of Principal Director General have been created for monitoring some 
specified functions e.g., Director General of Central Excise Inte ligence (DGCEI), Director General (Revenue 
Inte ligence) (DGRI), Directorate General of Inspection (Customs and Central Excise), Director General of 
Export  Promotion  (DGEP),  Director  General Service  Tax (DGST),  Director  General (Vigilance),  Duty 
Drawback Directorate etc. [Their main function is to create more and more promotion avenues to revenue 
officers and create more confusion and nuisance]. 
Principal  Commissioner/Commissioner of  Central   Excise  -  Each  'zone'  covers  various 
Commissionerates  and Principal Commissioner  of CGST or Commissioner  of CGST is Administrative  in- 
charge of the 'Commissionerate'. 
Similarly there are posts of Principal Additional Director General and Additional Director General of para lel 
ranks for various specified functions. 
First Appellate Authority of CGST - He is of rank of Commissioner. 
 
Additional and Joint Commissioners  - There are Additional Commissioner/s and Joint Commissioner/s in 
each Commissionerate. The para lel posts are Additional Directors and Joint Directors. 
Deputy Commissioner, Assistant Commissioner and Superintendent - Each Commissionerate is divided 
into  divisions  and  each  division  is  under  administrative  control  of 'Deputy  Commissioner'  or  'Assistant 
Commissioner of Central Excise'. The para lel posts are Deputy Directors and Assistant Directors 
The division under each Deputy/Assistant Commissioner is further divided into various ranges. 
 
21.2-2 Commissioner in Board or Joint Secretary in Board 
 
Various sections authorise Commissioner for various purposes. There are numerous Commissioners in India. 
They may fo low divergent practices. Hence, it is provided by such powers will be delegated by Commissioner 
or Joint Secretary posted in Board (i.e. CBE&C). 
Such Commissioner in Board will exercise fo lowing powers on a l India basis [section 168(2) of CGST Act]- 
(a)   Appointment of 'proper officer' for various functions - section 2(91) of CGST Act. 
(b)   Officer can exercise powers of officer subordinate to him - section 5(2) of CGST Act. 
(c)   notifying any person who may be granted UIN (Unique Identity Number) (instead of registration 
number) - section 25(9)(b) of CGST Act. 
(d)   Notifying class of persons to maintain additional accounts or permitting class of persons to maintain 
accounts in di fferent manner - section 35(3) and 35(4) of CGST Act. 
(e)   Extending time limit for filing return for certain class of persons - section 37(1) of CGST Act. 
(f)  Extending time limit for furnishing details for certain class of persons - section 38(2) of CGST Act. 
(g)   Extending time limit for filing return for certain class of persons - section 39(6) of CGST Act. 
(h)   Expenses of special audit by Chartered/Cost Accountant - section 66(5) of CGST Act. 
(i)   Where principal need not disclose place of job worker as additional place of business - section 
143(1) of CGST Act. 
(j)   Direction to co lect statistics - section 151(1) of CGST Act. 
(k)  Publish information relating to class of taxable persons or class of transactions  in public interest 
section 158(3)(i) of CGST Act. 
(l)   Delegating power of Commissioner to another authority - section 167 of CGST Act. 
CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
21.2-3 Administrative set up in State  for SGST 
 
Administration of SGST in every State will be under Ministry of Finance of that State. 
 
The Officers will be Principal/Chief Commissioner  of SGST, Special Commissioner  of SGST, Additional 
Commissioner  of SGST,  Joint  Commissioner  of SGST,  Deputy  Commissioner  of SGST  and  Assistant 
Commissioner of SGST. 
21.2-4 Officer can exercise powers of officer subordinate to him 
 
An officer of central tax (CGST) may exercise the powers and discharge the duties conferred or imposed 
under this Act on any other officer of central tax who is subordinate to him - section 5(2) of CGST Act. 
21.2-5 Avoidance  of dual control 
 
A taxable person is required to pay both CGST and SGST. Thus, for same transaction, he will have to face 
two  authorities.  This  will make  his  life  miserable  as  two  authorities  may  take  di fferent  view  on  same 
transactions. He will face with dual assessments, dual audits, dual demands etc. There will be two revisions, 
two rectifications and two appeals. 
Such dual control is unworkable. A taxable person should be under one authority - either Centre or State. 
This has been agreed upon in GST Council. 
Principle of avoiding dual control is laudable.  However,  how bifurcation of taxable persons will be made 
between State and Centre is not clear. 
 
It seems such bifurcation will be done on random basis. If so, this will lead to chaos. In case of taxable 
persons having multi-state businesses, they may be assessed by State Government authorities in some States 
and by Central Government  authorities  in some other States.  This will lead to di fferent authorities  taking 
di fferent view on same transaction. Idea ly, taxable persons having multi-state businesses (including telecom, 
insurance) and those predominantly in export and import field should be under control of Central Government. 
Industries and businesses restricted to one State should be under control of State Government. This will ensure 
avoidance of conf licting views by tax authorities on same issue. 
This will create problems for consultants also. Some of their clients may be under State Government Control 
while others may be under Central Government control. Thus, they will have to deal with two authorities. 
21.2-6 Powers under CGST can be delegated to officers of State  Government and vice versa 
 
To avoid dual control, section 6(1) of CGST Act provides that officer of SGST can be appointed as 'proper 
officer' for purpose of CGST. 
Any proceedings for rectification, appeal and revision, wherever applicable, of any order passed by an officer 
appointed under this Act shall not lie before an officer appointed under the State Goods and Services Tax Act 
or the Union Territory Goods and Services Tax Act - section 6(3) of CGST Act. 
Section 167 of CGST Act read with section 168(2) of CGST Act empowers Commissioner or Joint in Board 
to issue notification for delegation of powers. 
There are para lel provisions in SGST and UTGST Act also. 
 
21.3 Proper Officer 
 
Various sections in CGST Act mention about action by 'proper officer'. 
 
"Proper officer" in relation to any function to be performed under this Act, means the Commissioner or the 
officer of the central tax who is assigned that function by the Commissioner in the Board - section 2(91) of 
CGST Act. 
Page 5


CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
 
 
 
 
 
 
 
 
 
 
CHAPTER 21 - Basic procedures i n GST 
 
 
 
 
 
 
 
 
 
21.1 Background 
CHAPTER 21 
 
Basic procedures in GST 
 
GST is a very procedure oriented legislation. Substantial benefits can be lost and penalties can be imposed 
simply because proper procedures were not fo lowed. 
GST procedures are based on e-governance. Submission of papers and physical inter-face with department is 
minimum. 
Basic Procedures are as follows — 
 
(a)   Registration with GST which is common for IGST, SGST, UTGST and CGST 
(b)   Electronic payment of taxes 
(c)   Filing of returns which are common for IGST, SGST, UTGST and CGST 
These core procedures are discussed under di fferent chapters. 
No statutory records or registers have been specified in GST Act. Normal records of taxable person, giving 
required details are sufficient. 
Self assessment  - Assessment under GST is basica ly a self assessment. However, there are provisions of 
audit, inspection, visits (raids) etc. Tax liability can arise during such inspection, audit, visits etc. 
Government  can specify specific procedures  for registration, payment, return  etc. - The Government 
may, on the recommendations  of the Council,  and subject to such conditions  and safeguards  as may be 
prescribed, notify certain classes of registered persons, and the special procedures to be fo lowed by such 
persons including those with regard to registration, furnishing of return, payment of tax and administration of 
such persons - section 148 of CGST Act. 
21.1-1 Taxable Person 
 
Taxable person means a person who is registered or liable to be registered under section 22 or 24 of CGST 
Act - section 2(107) of CGST Act. 
Separate  GST Registration  means  distinct  and  separate  taxable  person,  even if PAN is same - A 
person who has obtained or is required to obtain more than one registration, whether in one State or Union 
Territory or more than one State or Union Territory, sha l, in respect of each such registration, be treated as 
distinct persons for the purposes of this Act- section 25(4) of CGST Act. 
Separate Registration practically    means separate 'taxable person' for purpose of GST. Each separate 
taxable person will require  separate  GST registration,  separate  payment  of taxes,  separate  services  of 
invoices, separate returns, separate assessments, separate demands etc. 
Establishment in another  State is distinct person even if not registered under GST - Where a person 
who  has  obtained  or  is  required  to  obtain  registration  in a  State  or  Union  territory  in respect  of an 
CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
establishment,  has an establishment  in another State or Union territory,  then such establishments  shall be 
treated as establishments of distinct persons for the purposes of this Act. 
This will be so even if the establishment in another State is not registered under GST- section 25(5) of CGST 
Act. 
Persons  with small  turnover  are  not  taxable  person  - A person will not be taxable person until his 
aggregate turnover in a financial year exceeds specified limits. 
21.2 Administration of GST 
 
The apex body for deciding policies in respect of GST is 'Goods and Services Tax Council'  which is a 
constitutional body. 
The CGST and IGST will be is administered by department of CGST [present Central Excise and Service 
Tax Department] 
 
SGST is administered by Commissioner of SGT of each State and officers subordinate to him. 
The administrative set up at Centre is briefly as follows - 
Ministry of Finance, Central  Government  - Ministry of Finance, Government of India is the administrative 
ministry for CGST and IGST. 
Tax Policy Research  Unit (TPRU) - A Tax Policy Research Unit has been set up (TPRU). It is common 
for direct and indirect taxes. Further, Tax Policy Council has been established with Finance Minister as its 
Chairman - Press release dated 2-2-2016. 
CBE&C  -  A Central Board  of Excise  and Customs  (CBE&C  -  ca led 'Board')  has been formed  with 
headquarters at New Delhi. This Board, consisting of six/seven members, headed by Chairman, has powers to 
administer the CGST law. CBE&C functions under Ministry of Finance, Government of India. 
CBE&C is proposed to be converted into Central Board of Indirect Taxes and Customs [CBIC]. 
Section 3 of CGST Act specifies various classes of officers. 
CBE&C is empowered to appoint officers under CGST Act - section 4(1) of CGST Act. 
 
CBE&C  can authorise  Assistant  Commissioner  and  above  to  appoint  officers  below  rank  of Assistant 
Commissioner - section 4(2) of CGST Act. 
 
Commissioner can delegate their powers to any officer subordinate to him, , subject to conditions as may be 
specified - section 5(3) of CGST Act. 
Commissioner  includes  Principal Commissioner  - "Commissioner" means the Commissioner of central 
tax (CGST) and includes  the Principal Commissioner  of Central Tax appointed  under section 3 and the 
Commissioner of integrated tax appointed under the Integrated Goods and Services Tax Act - section 2(24) 
of CGST Act. 
21.2-1 Officers under CGST 
 
Fo lowing are officers under GST. 
 
Principal Chief Commissioner/Chief Commissioner  of CGST - Country is divided in several zones. 
Each 'zone' is under supervision of 'Principal  Chief Commissioner of CGST' or 'Chief Commissioner of 
CGST'. Principal Chief Commissioner/Chief Commissioner has administrative control over Principal 
Commissioners,   Commissioners   and   First  Appe late  Authority  within  his  zone.   Senior   grade   Chief 
Commissioner will be designated as Principal Chief Commissioner, though both have same powers. 
Similarly there are posts of Principal Director General and Director General of para lel ranks for various 
CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
specified functions. 
 
Principal Director General  - Offices of Principal Director General have been created for monitoring some 
specified functions e.g., Director General of Central Excise Inte ligence (DGCEI), Director General (Revenue 
Inte ligence) (DGRI), Directorate General of Inspection (Customs and Central Excise), Director General of 
Export  Promotion  (DGEP),  Director  General Service  Tax (DGST),  Director  General (Vigilance),  Duty 
Drawback Directorate etc. [Their main function is to create more and more promotion avenues to revenue 
officers and create more confusion and nuisance]. 
Principal  Commissioner/Commissioner of  Central   Excise  -  Each  'zone'  covers  various 
Commissionerates  and Principal Commissioner  of CGST or Commissioner  of CGST is Administrative  in- 
charge of the 'Commissionerate'. 
Similarly there are posts of Principal Additional Director General and Additional Director General of para lel 
ranks for various specified functions. 
First Appellate Authority of CGST - He is of rank of Commissioner. 
 
Additional and Joint Commissioners  - There are Additional Commissioner/s and Joint Commissioner/s in 
each Commissionerate. The para lel posts are Additional Directors and Joint Directors. 
Deputy Commissioner, Assistant Commissioner and Superintendent - Each Commissionerate is divided 
into  divisions  and  each  division  is  under  administrative  control  of 'Deputy  Commissioner'  or  'Assistant 
Commissioner of Central Excise'. The para lel posts are Deputy Directors and Assistant Directors 
The division under each Deputy/Assistant Commissioner is further divided into various ranges. 
 
21.2-2 Commissioner in Board or Joint Secretary in Board 
 
Various sections authorise Commissioner for various purposes. There are numerous Commissioners in India. 
They may fo low divergent practices. Hence, it is provided by such powers will be delegated by Commissioner 
or Joint Secretary posted in Board (i.e. CBE&C). 
Such Commissioner in Board will exercise fo lowing powers on a l India basis [section 168(2) of CGST Act]- 
(a)   Appointment of 'proper officer' for various functions - section 2(91) of CGST Act. 
(b)   Officer can exercise powers of officer subordinate to him - section 5(2) of CGST Act. 
(c)   notifying any person who may be granted UIN (Unique Identity Number) (instead of registration 
number) - section 25(9)(b) of CGST Act. 
(d)   Notifying class of persons to maintain additional accounts or permitting class of persons to maintain 
accounts in di fferent manner - section 35(3) and 35(4) of CGST Act. 
(e)   Extending time limit for filing return for certain class of persons - section 37(1) of CGST Act. 
(f)  Extending time limit for furnishing details for certain class of persons - section 38(2) of CGST Act. 
(g)   Extending time limit for filing return for certain class of persons - section 39(6) of CGST Act. 
(h)   Expenses of special audit by Chartered/Cost Accountant - section 66(5) of CGST Act. 
(i)   Where principal need not disclose place of job worker as additional place of business - section 
143(1) of CGST Act. 
(j)   Direction to co lect statistics - section 151(1) of CGST Act. 
(k)  Publish information relating to class of taxable persons or class of transactions  in public interest 
section 158(3)(i) of CGST Act. 
(l)   Delegating power of Commissioner to another authority - section 167 of CGST Act. 
CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
21.2-3 Administrative set up in State  for SGST 
 
Administration of SGST in every State will be under Ministry of Finance of that State. 
 
The Officers will be Principal/Chief Commissioner  of SGST, Special Commissioner  of SGST, Additional 
Commissioner  of SGST,  Joint  Commissioner  of SGST,  Deputy  Commissioner  of SGST  and  Assistant 
Commissioner of SGST. 
21.2-4 Officer can exercise powers of officer subordinate to him 
 
An officer of central tax (CGST) may exercise the powers and discharge the duties conferred or imposed 
under this Act on any other officer of central tax who is subordinate to him - section 5(2) of CGST Act. 
21.2-5 Avoidance  of dual control 
 
A taxable person is required to pay both CGST and SGST. Thus, for same transaction, he will have to face 
two  authorities.  This  will make  his  life  miserable  as  two  authorities  may  take  di fferent  view  on  same 
transactions. He will face with dual assessments, dual audits, dual demands etc. There will be two revisions, 
two rectifications and two appeals. 
Such dual control is unworkable. A taxable person should be under one authority - either Centre or State. 
This has been agreed upon in GST Council. 
Principle of avoiding dual control is laudable.  However,  how bifurcation of taxable persons will be made 
between State and Centre is not clear. 
 
It seems such bifurcation will be done on random basis. If so, this will lead to chaos. In case of taxable 
persons having multi-state businesses, they may be assessed by State Government authorities in some States 
and by Central Government  authorities  in some other States.  This will lead to di fferent authorities  taking 
di fferent view on same transaction. Idea ly, taxable persons having multi-state businesses (including telecom, 
insurance) and those predominantly in export and import field should be under control of Central Government. 
Industries and businesses restricted to one State should be under control of State Government. This will ensure 
avoidance of conf licting views by tax authorities on same issue. 
This will create problems for consultants also. Some of their clients may be under State Government Control 
while others may be under Central Government control. Thus, they will have to deal with two authorities. 
21.2-6 Powers under CGST can be delegated to officers of State  Government and vice versa 
 
To avoid dual control, section 6(1) of CGST Act provides that officer of SGST can be appointed as 'proper 
officer' for purpose of CGST. 
Any proceedings for rectification, appeal and revision, wherever applicable, of any order passed by an officer 
appointed under this Act shall not lie before an officer appointed under the State Goods and Services Tax Act 
or the Union Territory Goods and Services Tax Act - section 6(3) of CGST Act. 
Section 167 of CGST Act read with section 168(2) of CGST Act empowers Commissioner or Joint in Board 
to issue notification for delegation of powers. 
There are para lel provisions in SGST and UTGST Act also. 
 
21.3 Proper Officer 
 
Various sections in CGST Act mention about action by 'proper officer'. 
 
"Proper officer" in relation to any function to be performed under this Act, means the Commissioner or the 
officer of the central tax who is assigned that function by the Commissioner in the Board - section 2(91) of 
CGST Act. 
CA DHRUV AGRAWAL – National Chairman Taxation Committee-All India Confederation of Small & Micro Industries Association  
 
 
Thus, di fferent 'proper officers' can be appointed for di fferent purposes. 
 
To ensure uniformity alloverIndia, such assignment will be done by Commissioner or Joint Secretary in Board 
- section 168(2) of CGST Act. 
 
21.4 Competent Authority 
 
"Competent authority" means such authority as may be notified by the Government - section 2(29) of CGST 
Act. 
What are his functions is not clear from CGST Act. 
 
21.5 Accounts  and other records 
 
Every registered  person shall keep  and  maintain,  at his principal place  of business,  as mentioned  in the 
certificate of registration, a true and correct account of - (a) production or manufacture of goods (b) inward or 
outward supply of goods or services or both (c) stock of goods (d) input tax credit availed (e) output tax 
payable and paid, and (f) such other particulars as may be prescribed - section 35(1) of CGST Act. 
Where more than one place of business is specified in the certificate of registration, the accounts relating to 
each place of business shall be kept at such places of business - first proviso to section 35(1) of CGST Act. 
Records in electronic  form in prescribed  manner  - The registered person may keep and maintain such 
accounts and other particulars in the electronic form in the prescribed manner - second proviso to section 
35(1) of CGST Act. 
 
Commissioner  can  ask  class  of taxable  persons  to maintain additional  records  or  in  prescribed 
manner  -  The  Commissioner  may notify a  class  of taxable  persons  to  maintain  additional accounts  or 
documents for such purpose as may be specified therein- section 35(3) of CGST Act. 
To ensure uniformity alloverIndia, such notification will be issued by Commissioner or Joint Secretary in 
Board - section 168(2) of CGST Act. 
 
Relaxation  in maintaining records - Where the Commissioner considers that any class of taxable persons 
is not in a position to keep and maintain accounts in accordance with the provisions of this section, he may, for 
reasons to be recorded in writing, permit such class of taxable persons to maintain accounts in such manner as 
may be prescribed - section 35(4) of CGST Act. 
To ensure uniformity alloverIndia, such permission will be granted by Commissioner or Joint Secretary in 
Board - section 168(2) of CGST Act. 
 
21.6 Records of inventory even by unregistered person 
 
Every owner or operator of warehouse or godown or any other place used for storage of goods irrespective 
of whether he is a registered person or not shall maintain records of consignor, consignee and other relevant 
details of the goods as may be prescribed - section 35(2) of CGST Act. 
21.7 Demand if goods are not properly accounted for 
 
Subject  to  the  provisions  of section 17(5)(h)  of CGST Act (goods,  stolen,  lost,  destroyed,  written of, 
disposed of by way of gift or samples), where the registered person fails to account for the goods or services 
or both in accordance with section 35(1) of CGST Act, the proper officer shall determine the amount of tax 
payable on the goods or services or both that are not accounted for, as if such goods or services or both had 
been supplied by such person and the provisions of section 73 or section 74, as the case may be, sha l, 
mutatis mutandis, apply for determination of such tax - section 35(5) of CGST Act. 
21.8 Audit by Chartered/Cost Accountant 
 
Every registered  person whose turnover during a financial year exceeds  the prescribed  limit shall get his