GST Worked Examples Supplement - Comprehensive Cross-Statute Reference

A.1 — Intra-Maharashtra B2B supply of goods

Facts: Mumbai manufacturer supplies steel plates Rs. 10 lakh to Pune-based fabricator; HSN 7208; rate 18%.

Computation / Steps:

Step 1. Intra-State supply (Maharashtra → Maharashtra) per s. 8(1) IGST.

Step 2. Charging: CGST 9% + MGST 9% = Rs. 90,000 + Rs. 90,000 = Rs. 1,80,000.

Step 3. Invoice particulars (Rule 46 CGST): supplier + recipient + HSN 7208 + CGST + MGST split.

Step 4. POS: Pune (per s. 10(1)(a) IGST — termination of movement).

Step 5. Reporting: Mumbai supplier in GSTR-1 Table 4A (B2B intra-State); GSTR-3B Table 3.1(a).

Step 6. ITC chain: Pune fabricator takes Rs. 90,000 CGST + Rs. 90,000 MGST credit.

Result: Intra-State CGST + MGST framework. Standard B2B supply chain. Combined 18% tax.

A.2 — Intra-Delhi B2B supply of services

Facts: Delhi consultancy provides advisory services Rs. 5 lakh to Delhi-registered client; SAC 998311; rate 18%.

Computation / Steps:

Step 1. Intra-Delhi supply (intra-UT-with-Legislature per s. 8(2) IGST).

Step 2. Charging: CGST 9% + DGST 9% = Rs. 45,000 + Rs. 45,000 = Rs. 90,000.

Step 3. POS: Per s. 12(2)(a) IGST — location of registered recipient = Delhi.

Step 4. Reporting: Common GSTN portal — GSTR-1 + GSTR-3B.

Step 5. ITC chain: Delhi client takes Rs. 45,000 CGST + Rs. 45,000 DGST credit.

Result: Intra-Delhi CGST + DGST framework. Standard B2B service. DGST flows to Delhi Department of Trade & Taxes.

A.3 — Intra-Chandigarh B2C goods supply

Facts: Chandigarh retailer sells electronics Rs. 50,000 to walk-in customer; rate 18%.

Computation / Steps:

Step 1. Intra-Chandigarh supply (UT without Legislature).

Step 2. Charging: CGST 9% + UTGST 9% = Rs. 4,500 + Rs. 4,500 = Rs. 9,000.

Step 3. POS: Chandigarh per s. 10(1)(a) / s. 10(1)(c) IGST.

Step 4. B2C invoice — Rule 46 CGST simplified for B2C; CGST + UTGST shown.

Step 5. Reporting: GSTR-1 Table 7A (B2C intra-State) for Chandigarh.

Step 6. No ITC at consumer; supplier's input ITC offsets output liability.

Result: Intra-Chandigarh CGST + UTGST framework. UTGST goes to Centre via Administrator framework.

A.4 — Intra-State movement with bill-to-ship-to (s. 10(1)(b))

Facts: Mumbai supplier (A) delivers goods worth Rs. 2 lakh to Pune warehouse (C) on instruction of Mumbai bill-to party (B). A invoices B; B invoices C. All in Maharashtra.

Computation / Steps:

Step 1. A-to-B leg per s. 10(1)(b) — POS = principal place of business of B = Mumbai. Intra-Maharashtra. CGST + MGST 9% each = Rs. 36,000.

Step 2. B-to-C leg per Circular 184/2022 — separate supply. POS = Pune. Intra-Maharashtra (within same State). CGST + MGST.

Step 3. Both legs intra-State; CGST + MGST framework throughout.

Step 4. B is treated as deemed recipient in A-to-B leg; subsequent transfer to C is separate supply.

Result: Intra-Maharashtra bill-to-ship-to. CGST + MGST on both legs. Documentation under Circular 184/2022.

A.5 — Intra-Delhi composite supply

Facts: Delhi event manager organizes wedding event Rs. 5 lakh comprising venue (Rs. 2 lakh), catering (Rs. 2 lakh), decor (Rs. 1 lakh). Single contract; principal supply = event organisation.

Computation / Steps:

Step 1. Composite supply per s. 8 CGST/DGST.

Step 2. Principal supply = event organisation service.

Step 3. Single rate applies to entire bundle based on principal supply rate.

Step 4. Event organisation typically 18% — CGST 9% + DGST 9% = Rs. 90,000.

Step 5. POS per s. 12(7) IGST — event location Delhi.

Step 6. Single invoice; not three separate supplies.

Result: Single composite supply at principal supply rate 18%. CGST + DGST framework.

A.6 — Intra-Maharashtra works contract for residential property

Facts: Mumbai builder constructs residential apartment for individual buyer; total consideration Rs. 1 cr; rate 1% (affordable) or 5% (other) per FA 2019.

Computation / Steps:

Step 1. Works contract = composite supply of service per Schedule II para 6(a) CGST.

Step 2. Intra-Maharashtra supply.

Step 3. Rate per Notif 11/2017-CT(R) — 5% without ITC for residential other than affordable (or 1% for affordable).

Step 4. CGST 2.5% + MGST 2.5% (or 0.5% + 0.5% for affordable).

Step 5. No ITC for builder; rate is concessional.

Step 6. POS per s. 12(3)(a) — immovable property location = Mumbai.

Result: Intra-Maharashtra works contract; concessional rate without ITC. Critical for real-estate sector.

A.7 — Intra-Delhi restaurant supply (pre vs post 01.01.2022 via Zomato)

Facts: Delhi restaurant supplies food order Rs. 1,000 directly vs via Zomato (ECO).

Computation / Steps:

Step 1. Direct supply: CGST 2.5% + DGST 2.5% = Rs. 50 (5% without ITC).

Step 2. Pre 01.01.2022 via Zomato: Restaurant invoices customer directly; Zomato is intermediary platform only.

Step 3. Post 01.01.2022 (Notif 17/2021-CT(R)): Zomato becomes deemed supplier under s. 9(5) CGST + s. 5(5) IGST framework.

Step 4. Zomato pays CGST 2.5% + DGST 2.5% as deemed supplier.

Step 5. Restaurant no longer charges tax to Zomato for those supplies.

Result: Post 01.01.2022 — Zomato as deemed supplier; restaurant's framework changes. Major operational shift.

A.8 — Intra-Maharashtra inter-branch (distinct person) supply

Facts: Mumbai branch of ABC Ltd supplies Rs. 5 lakh of stock to Pune branch (both registered separately under same legal person).

Computation / Steps:

Step 1. Distinct-person fiction per s. 25(4)/(5) CGST + Explanation 1 to s. 8 IGST.

Step 2. Supply between distinct persons triggers GST per Schedule I para 2 CGST.

Step 3. Both branches in Maharashtra — intra-State supply.

Step 4. CGST + MGST at rate of goods.

Step 5. Value per Rule 28 CGST — open market value / 90% recipient sale value / cost+10%.

Step 6. Recipient branch takes ITC.

Result: Distinct-person framework triggers intra-State CGST + MGST even on inter-branch transfer. Rule 28 valuation critical.

B.1 — Standard inter-State goods supply (Mumbai → Delhi)

Facts: Mumbai manufacturer supplies furniture Rs. 8 lakh to Delhi retailer; rate 18%.

Computation / Steps:

Step 1. Inter-State supply per s. 7(1) IGST.

Step 2. IGST 18% on Rs. 8 lakh = Rs. 1,44,000.

Step 3. POS: Delhi per s. 10(1)(a).

Step 4. Mumbai supplier issues IGST invoice; Delhi retailer takes IGST credit.

Step 5. Apportionment: Per s. 17 IGST — Centre share + Delhi share (destination State).

Step 6. When Delhi retailer onward sells intra-Delhi: CGST + DGST.

Result: Single IGST charge; apportionment to destination Delhi via s. 17.

B.2 — Inter-State services (Bangalore → Mumbai)

Facts: Bangalore IT consultancy provides services Rs. 12 lakh to Mumbai client.

Computation / Steps:

Step 1. Inter-State per s. 7(3) IGST.

Step 2. POS = Mumbai (recipient location per s. 12(2)).

Step 3. IGST 18% = Rs. 2,16,000.

Step 4. Karnataka supplier ≠ POS Maharashtra — inter-State.

Step 5. Mumbai client takes IGST credit; can use for CGST/MGST per Rule 88A.

Result: Inter-State services standard framework. IGST follows recipient location for B2B.

B.3 — Inter-State supply through agent (deemed distinct person)

Facts: Mumbai principal supplies via Delhi agent to end-customer in Mumbai. Two distinct legal entities.

Computation / Steps:

Step 1. Mumbai principal to Delhi agent: Inter-State (s. 7(1)) — IGST.

Step 2. Delhi agent to Mumbai customer: Inter-State (Delhi → Mumbai) — IGST.

Step 3. Each leg separately taxable.

Step 4. Critical: Confirm whether agent or principal-to-principal structure. If principal-to-principal, then standard inter-State framework. If pure agency, then deemed direct supply from principal to customer with agent fee taxed separately.

Result: Multi-leg inter-State supplies. Agent classification (Circular 159/2021 four-fold test) determines structure.

B.4 — Inter-State stock transfer between branches

Facts: ABC Ltd Mumbai branch transfers stock Rs. 10 lakh to Delhi branch.

Computation / Steps:

Step 1. Distinct-person framework per s. 25(4) CGST.

Step 2. Inter-State supply per s. 7(1) IGST.

Step 3. IGST at rate of goods.

Step 4. Value per Rule 28 CGST — open market / 90% recipient sale / cost+10%.

Step 5. Delhi branch takes IGST credit.

Step 6. Rule 28 second proviso — if recipient eligible for full ITC, value declared on invoice is open market.

Result: Inter-State branch transfer = inter-State supply. IGST + Rule 28 valuation. ITC fully chargeable.

B.5 — Inter-State supply of services across multiple States (s. 12(3) Explanation)

Facts: Architect designs property spanning Delhi + Haryana boundaries; consolidated fee Rs. 5 lakh.

Computation / Steps:

Step 1. Immovable property service per s. 12(3) IGST.

Step 2. Property in multiple States; Explanation requires proportionate split.

Step 3. Apply Rule 4 IGST Rules (post 01.01.2019) — area ratio for non-accommodation.

Step 4. Assume area ratio Delhi:Haryana = 3:2.

Step 5. Delhi portion Rs. 3 lakh; Haryana portion Rs. 2 lakh.

Step 6. Inter-State for both — IGST 18% on each portion separately.

Step 7. Separate State invoices required.

Result: Multi-State immovable property — proportionate split per Rule 4 IGST Rules. Two IGST invoices.

B.6 — Inter-State transportation of goods (s. 12(8))

Facts: Mumbai transporter (GTA) transports goods from Mumbai to Bangalore for Mumbai-registered shipper.

Computation / Steps:

Step 1. Per s. 12(8)(a) — POS for registered recipient = Mumbai (recipient location).

Step 2. Supplier Mumbai + POS Mumbai — Intra-Maharashtra.

Step 3. CGST + MGST at 5% (GTA RCM) or 12% (forward charge with ITC).

Step 4. Note: For transportation to outside India (post FA 2018), s. 12(8) proviso — POS = destination.

Result: Intra-Maharashtra GTA — CGST + MGST. For outside-India destination post 01.02.2019, POS shifts to destination.

B.7 — Inter-State passenger transportation (s. 12(9))

Facts: Indian airline IndiGo sells Delhi-Mumbai ticket Rs. 6,000 to passenger; non-registered passenger.

Computation / Steps:

Step 1. Per s. 12(9)(b) — for non-registered passenger, POS = place of embarkation = Delhi.

Step 2. Supplier IndiGo registered in multiple States; for this ticket, deemed in Delhi (embarkation).

Step 3. Intra-Delhi supply — CGST + DGST.

Step 4. Rate: Economy class 5% (with conditions) or 12% per Notif 11/2017-CT(R).

Step 5. Return journey separately analyzed per Explanation to s. 12(9).

Result: Passenger transportation POS = embarkation for non-registered. Delhi embarkation = CGST + DGST.

B.8 — Inter-State telecom services (s. 12(11))

Facts: Bharti Airtel post-paid corporate connection — Delhi billing address; Mumbai SIM holder; monthly bill Rs. 5,000.

Computation / Steps:

Step 1. Per s. 12(11)(b) — post-paid mobile POS = billing address = Delhi.

Step 2. Supplier Bharti Airtel registered in Delhi (for Delhi billing).

Step 3. Intra-Delhi supply — CGST + DGST.

Step 4. Mumbai SIM-holder employee location irrelevant for POS.

Step 5. Corporate ABC takes CGST + DGST credit in Delhi GSTIN.

Result: Telecom post-paid POS = billing address. Delhi billing → CGST + DGST. Formulaic rule.

C.1 — Import of goods + IGST + Compensation Cess

Facts: Mumbai importer imports luxury SUV from Germany; CIF Rs. 50 lakh; BCD 60%; SWS 10% of BCD; IGST 28%; Compensation Cess 22%.

Computation / Steps:

Step 1. Import per s. 7(2) IGST — inter-State.

Step 2. CIF Rs. 50 lakh + BCD Rs. 30 lakh + SWS Rs. 3 lakh = Rs. 83 lakh.

Step 3. IGST 28% on Rs. 83 lakh = Rs. 23.24 lakh.

Step 4. Compensation Cess (per s. 3(9) Customs Tariff Act) 22% on (Rs. 83 lakh + Rs. 23.24 lakh)... or on customs value depending on cess base — typically on value including BCD = Rs. 83 lakh × 22% = Rs. 18.26 lakh.

Step 5. Total customs duty + GST + Cess = Rs. 74.50 lakh on Rs. 50 lakh CIF (149% effective).

Step 6. Importer takes IGST + Cess credit in electronic credit ledger.

Step 7. Cess credit siloed for cess payment only (s. 11(2) Compensation Act).

Result: Luxury SUV import — IGST + Compensation Cess substantial. Cess credit siloed.

C.2 — Export of services under LUT route

Facts: Bangalore software company exports services Rs. 1 cr to US client annually; LUT filed.

Computation / Steps:

Step 1. Export of services per s. 2(6) IGST — five-limb test satisfied.

Step 2. Zero-rated per s. 16(1)(a).

Step 3. LUT filed under Rule 96A — Form GST RFD-11.

Step 4. No IGST charged on export invoice.

Step 5. Accumulated ITC on inputs/input services refundable under Rule 89.

Step 6. Refund formula: (Zero-rated turnover × Net ITC) ÷ Adjusted Total Turnover.

Step 7. Quarterly refund applications typical.

Result: Export of services under LUT — no IGST + accumulated ITC refundable.

C.3 — Export of goods under IGST-paid route

Facts: Mumbai manufacturer exports textiles Rs. 50 lakh to UK; IGST 12% paid.

Computation / Steps:

Step 1. Export of goods per s. 2(5) — physical removal from India.

Step 2. Zero-rated under s. 16(1)(a).

Step 3. IGST-paid route: pay IGST Rs. 6 lakh on export invoice.

Step 4. Shipping Bill flagged for IGST refund.

Step 5. Customs ICEGATE auto-refund process; typically 30-60 days.

Step 6. Critical: GSTR-1 export reporting (Table 6A) must match Shipping Bill data.

Step 7. Post FA 2021 (effective from notified date) — IGST-paid route restricted to notified class via sub-s. (4) framework.

Result: IGST-paid export — Rs. 6 lakh refunded via auto-refund. Faster cash-flow than LUT for low-ITC exporters.

C.4 — SEZ supply via three operational routes

Facts: Bangalore supplier supplies components Rs. 10 lakh to Visakhapatnam SEZ unit.

Computation / Steps:

Step 1. s. 7(5)(b) — inter-State per IGST; zero-rated under s. 16(1)(b).

Step 2. Route 1: LUT under Rule 96A — no IGST charged; refund of accumulated ITC.

Step 3. Route 2: IGST-paid (Rs. 1.8 lakh) + Rule 96 auto-refund.

Step 4. Route 3: Notification 18/2017-IT(R) exemption — no IGST + no LUT; supplier maintains SEZ endorsement.

Step 5. Choice: depends on SEZ recipient's authorized-operations endorsement + supplier's documentation + cash-flow.

Result: SEZ supplies have three operational routes. Notif 18 simplest if recipient certification available.

C.5 — Merchant exporter 0.1% rate chain (Notif 41/2017-IT(R))

Facts: Garment manufacturer supplies inputs Rs. 1 cr to merchant exporter for export within 90 days.

Computation / Steps:

Step 1. Per Notif 41/2017-IT(R) — concessional 0.1% rate for inputs to merchant exporter.

Step 2. Manufacturer charges 0.1% IGST = Rs. 10,000 (vs 5% standard).

Step 3. Manufacturer absorbs ITC against minimal IGST liability + refund.

Step 4. Merchant exporter exports within 90 days under LUT or IGST-paid.

Step 5. Critical conditions: recipient is merchant exporter; export within 90 days; documentation.

Result: 0.1% concessional rate optimizes working capital in export chain. Garment/textile sector primary beneficiary.

C.6 — Cross-border B2B services (import) — RCM

Facts: Mumbai company receives consulting services Rs. 20 lakh from US firm; payment in USD.

Computation / Steps:

Step 1. Import of services per s. 7(4) IGST — inter-State.

Step 2. POS per s. 13(2) — recipient location (India / Mumbai) since US recipient and supplier outside India... wait actually — s. 13 applies when supplier OR recipient outside India. Supplier in US; recipient in India. POS = recipient location India.

Step 3. Indian recipient is registered — RCM under s. 5(3) IGST.

Step 4. Indian recipient pays IGST 18% = Rs. 3.6 lakh on RCM basis.

Step 5. Self-invoice under Rule 36 CGST.

Step 6. Recipient takes IGST credit in GSTR-3B Table 4(A)(3) — RCM inwards.

Result: Import of services — RCM on Indian recipient under s. 5(3) IGST. Self-invoice + credit framework.

C.7 — High-seas sale + import flow

Facts: Importer A in Mumbai imports from China; high-seas sells to B in Delhi before customs clearance. B clears customs and pays IGST.

Computation / Steps:

Step 1. Pre-clearance A-to-B high-seas sale per s. 7(2) IGST — inter-State.

Step 2. Not separately taxed in GST (taxed only at customs clearance per s. 5(1) proviso).

Step 3. B (final importer) pays IGST on landed value (including A's margin per high-seas sale invoice).

Step 4. Customs Tariff Act s. 3(7) framework operative.

Step 5. B's GSTIN — location of importer per s. 11(a).

Step 6. B takes IGST credit upon clearance.

Result: High-seas sale not separately taxed; final import IGST on landed value including HSS margin.

C.8 — Deemed export under s. 147 CGST + Notif 48/2017-CT

Facts: Indian manufacturer supplies inputs Rs. 50 lakh to Advance Authorisation holder in India.

Computation / Steps:

Step 1. Per Notif 48/2017-CT — Advance Authorisation supply notified as deemed export under s. 147 CGST.

Step 2. Goods don't leave India → NOT export under s. 2(5) IGST.

Step 3. Domestic taxable supply at applicable rate (e.g., 18% CGST + DGST for intra-Delhi).

Step 4. Refund under Notif 49/2017-CT framework — to supplier or recipient as elected.

Step 5. Critical: distinct from s. 2(5) IGST export; different refund mechanism.

Result: Deemed export ≠ physical export. Different refund route under s. 147 CGST framework.

D.1 — GTA service to manufacturer (Notif 13/2017-CT(R))

Facts: Mumbai manufacturer receives GTA services Rs. 50,000 from Mumbai-based GTA opting for 5% rate.

Computation / Steps:

Step 1. Notif 13/2017-CT(R) — GTA service RCM on recipient (excluding GTA opting for 12% forward charge).

Step 2. Intra-Maharashtra supply.

Step 3. Manufacturer pays CGST 2.5% + MGST 2.5% on RCM = Rs. 2,500.

Step 4. Self-invoice under Rule 36; payment via electronic cash ledger.

Step 5. ITC claimed in GSTR-3B Table 4(A)(3) — RCM inwards.

Step 6. Reported in GSTR-3B Table 3.1(d) — RCM payable.

Result: GTA RCM standard framework. Net cash impact zero (RCM paid + ITC claimed).

D.2 — Legal services from advocate to corporate

Facts: Delhi company receives legal services Rs. 1 lakh from Delhi-based advocate.

Computation / Steps:

Step 1. Notif 13/2017-CT(R) — legal services by advocate RCM on business entity recipient.

Step 2. Intra-Delhi supply.

Step 3. Company pays CGST 9% + DGST 9% on RCM = Rs. 18,000.

Step 4. Advocate does not charge GST in invoice.

Step 5. Company's RCM payment + ITC claim — net cash neutral.

Result: Legal services RCM on company recipient. Advocate exempt; company pays GST on RCM.

D.3 — Sponsorship service to corporate

Facts: Delhi company sponsors event Rs. 5 lakh; receives sponsorship service from event organizer.

Computation / Steps:

Step 1. Notif 13/2017-CT(R) — sponsorship service RCM on body corporate / partnership firm recipient.

Step 2. Intra-Delhi (if event in Delhi) — CGST + DGST RCM.

Step 3. Company pays CGST 9% + DGST 9% on RCM = Rs. 90,000.

Step 4. Self-invoice + ITC claim.

Result: Sponsorship RCM on corporate sponsor.

D.4 — Director sitting fees / commission

Facts: Mumbai company pays sitting fees Rs. 2 lakh to non-executive director per board meeting.

Computation / Steps:

Step 1. Notif 13/2017-CT(R) — services by director to company RCM on company.

Step 2. Intra-Maharashtra (typically director and company same State).

Step 3. Company pays CGST 9% + MGST 9% on RCM.

Step 4. Director need not register.

Step 5. Self-invoice + ITC claim.

Result: Director services RCM on company. Critical for board fees / commission compliance.

D.5 — Substituted s. 9(4) RCM — real-estate cement procurement

Facts: Delhi real-estate promoter procures cement Rs. 1 cr from unregistered suppliers during quarter.

Computation / Steps:

Step 1. Pre-01.02.2019: Original s. 9(4) — RCM on ALL unregistered procurements (suspended).

Step 2. Post-01.02.2019: Substituted s. 9(4) + Notif 7/2019-CT(R) — RCM on real-estate promoters for cement, capital goods, > 80% input threshold from unregistered.

Step 3. Promoter pays CGST 14% + DGST 14% on RCM = Rs. 28 lakh.

Step 4. ITC typically blocked under s. 17(5)(c)/(d) for construction (subject to Safari Retreats functionality test if leasing-out).

Step 5. Substantial cash outflow without offsetting ITC.

Result: Real-estate cement RCM significant cost. ITC eligibility per Safari Retreats functionality test.

D.6 — Import of services from foreign consultant

Facts: Delhi software company receives consulting services Rs. 30 lakh from US firm; payment in USD.

Computation / Steps:

Step 1. Import of services per s. 7(4) IGST.

Step 2. POS per s. 13(2) — recipient location = Delhi.

Step 3. RCM under s. 5(3) IGST.

Step 4. Delhi company pays IGST 18% on RCM = Rs. 5.4 lakh.

Step 5. Self-invoice + ITC.

Step 6. If foreign supplier has Indian fixed establishment under s. 2(7), may shift to forward charge.

Result: Import of services RCM on Indian recipient. Self-invoice + ITC framework.

E.1 — Amazon facilitating intra-Delhi B2C supply (TCS)

Facts: Amazon facilitates intra-Delhi supply by Delhi seller Rs. 10,000 to Delhi customer post 10.07.2024.

Computation / Steps:

Step 1. Seller charges Rs. 10,000 + GST (CGST + DGST per goods rate).

Step 2. Amazon (ECO) collects TCS at 0.5% combined (post 10.07.2024 Notif 15/2024) = Rs. 50.

Step 3. Split — CGST 0.25% + DGST 0.25% = Rs. 25 + Rs. 25.

Step 4. Amazon deposits TCS to government via GSTR-8.

Step 5. Seller claims TCS credit in GSTR-2A / GSTR-3B.

Result: TCS framework post-10.07.2024 — 0.5% reduced rate. Major working-capital relief.

E.2 — Uber inter-State passenger service (s. 5(5) deemed-supplier)

Facts: Mumbai passenger books Uber from Mumbai to Pune Rs. 1,500.

Computation / Steps:

Step 1. Per Notif 17/2017-IT(R) — radio taxi via ECO under s. 5(5) IGST deemed-supplier framework.

Step 2. Pune is Maharashtra → intra-Maharashtra inter-city.

Step 3. Per s. 12(9) — passenger transportation POS = embarkation = Mumbai.

Step 4. Intra-Maharashtra — CGST + MGST.

Step 5. Uber as deemed supplier pays CGST 2.5% + MGST 2.5% = Rs. 75 (5% rate without ITC).

Step 6. Driver does not charge GST directly; Uber's framework controls.

Step 7. Customer pays Rs. 1,575 inclusive.

Result: Uber as deemed supplier under s. 5(5). Driver de-recognized as primary supplier. 5% rate without ITC.

E.3 — Zomato restaurant delivery post 01.01.2022

Facts: Delhi customer orders restaurant meal Rs. 800 via Zomato; Mumbai restaurant.

Computation / Steps:

Step 1. Inter-State (Mumbai restaurant to Delhi customer) — IGST.

Step 2. Per Notif 17/2021-CT(R) — restaurant services via ECO post 01.01.2022 under s. 5(5) IGST.

Step 3. Zomato pays IGST 5% = Rs. 40 (without ITC).

Step 4. Restaurant does not charge tax separately.

Step 5. Customer pays Rs. 840 inclusive.

Step 6. Major shift post-01.01.2022 for ECO restaurant framework.

Result: Zomato as deemed supplier post-01.01.2022. 5% IGST without ITC. Inter-State framework.

E.4 — Airbnb accommodation booking

Facts: Mumbai customer books accommodation Rs. 5,000/night for 3 nights in Goa via Airbnb; non-registered host.

Computation / Steps:

Step 1. Per Notif 17/2017-IT(R) — accommodation via ECO under s. 5(5) deemed-supplier (where host not required to register under s. 22).

Step 2. Per s. 12(3)(b) — accommodation POS = property location = Goa.

Step 3. Intra-Goa supply — CGST + Goa SGST.

Step 4. Airbnb pays CGST + Goa SGST at applicable rate (12% / 18% per room tariff).

Step 5. Total per night Rs. 5,000 + GST.

Step 6. Host does not register separately if turnover below threshold.

Result: Airbnb as deemed supplier for non-registered hosts. Intra-Goa CGST + Goa SGST framework.

E.5 — UrbanClap (housekeeping services) via ECO

Facts: Delhi customer books plumber Rs. 2,000 via UrbanClap; non-registered plumber.

Computation / Steps:

Step 1. Per Notif 17/2017-IT(R) — housekeeping services via ECO under s. 5(5) where supplier not required to register.

Step 2. Intra-Delhi supply.

Step 3. UrbanClap pays CGST 9% + DGST 9% = Rs. 360 (18% rate).

Step 4. Plumber does not register/charge tax.

Step 5. Customer pays Rs. 2,360 inclusive.

Result: UrbanClap as deemed supplier for non-registered housekeeping providers.

F.1 — Composition trader (goods) in Delhi

Facts: Delhi trader with annual turnover Rs. 1 cr opts for composition under s. 10 CGST.

Computation / Steps:

Step 1. Composition tax: 1% combined (0.5% CGST + 0.5% DGST) of turnover.

Step 2. Annual composition tax = Rs. 1 cr × 1% = Rs. 1 lakh.

Step 3. Quarterly payment + Annual Return.

Step 4. No ITC available.

Step 5. Cannot make inter-State outward supplies.

Step 6. Cannot supply through e-commerce operator (where deemed-supplier framework applies).

Step 7. Cannot collect tax from customer.

Step 8. No Compensation Cess applicable (s. 8(1) proviso GST Compensation Act).

Result: Composition framework — 1% tax + no ITC + restrictions on inter-State/ECO supplies.

F.2 — Composition restaurant in Delhi

Facts: Delhi standalone restaurant with annual turnover Rs. 80 lakh opts for composition.

Computation / Steps:

Step 1. Composition tax for restaurant: 5% combined (2.5% CGST + 2.5% DGST).

Step 2. Annual composition tax = Rs. 80 lakh × 5% = Rs. 4 lakh.

Step 3. Quarterly payment + Annual Return.

Step 4. No ITC available.

Step 5. Cannot make inter-State outward supplies.

Step 6. Cannot supply via Zomato/Swiggy post-01.01.2022 under ECO deemed-supplier framework (those become Zomato's supplies).

Step 7. Cannot collect tax from customer.

Result: Restaurant composition — 5% tax. Post-01.01.2022, ECO supplies excluded from composition.

F.3 — Composition service provider (extended via DGST Amendment Act III + parallel CGST)

Facts: Delhi consulting firm with annual turnover Rs. 30 lakh opts for composition (post-amendment service composition).

Computation / Steps:

Step 1. Per CGST Amendment Act 2018 + DGST Amendment Act III — composition extended to services.

Step 2. Threshold Rs. 50 lakh; tax 6% combined (3% CGST + 3% DGST).

Step 3. Annual composition tax = Rs. 30 lakh × 6% = Rs. 1.8 lakh.

Step 4. Subject to similar restrictions as goods composition.

Step 5. No ITC; quarterly payment; Annual Return.

Result: Service composition (post-amendment). Higher rate 6% reflects service margins.

F.4 — Composition taxpayer exiting threshold

Facts: Delhi composition trader crosses Rs. 1.5 cr threshold mid-year.

Computation / Steps:

Step 1. Liable to register under regular scheme from date threshold crossed.

Step 2. File intimation in Form GST CMP-04 within 7 days.

Step 3. Transition to regular tax framework — CGST + DGST per goods rate + ITC.

Step 4. Stock transition framework — Form GST ITC-01 for ITC on stock on date of transition.

Step 5. Period before crossing — composition tax; after — regular tax.

Result: Composition exit triggers regular registration + ITC transition framework.

G.1 — Aerated water inter-State supply

Facts: Mumbai manufacturer supplies aerated waters Rs. 50,000 to Delhi distributor.

Computation / Steps:

Step 1. Inter-State per s. 7(1) IGST.

Step 2. IGST 28% on Rs. 50,000 = Rs. 14,000.

Step 3. Compensation Cess 12% on Rs. 50,000 = Rs. 6,000.

Step 4. Total tax = Rs. 20,000 (40% effective on Rs. 50,000).

Step 5. Mumbai manufacturer collects + remits.

Step 6. Delhi distributor takes IGST + Cess credit (cess credit siloed).

Result: Aerated waters IGST + Cess combined 40%. Major component of pricing.

G.2 — Cigarettes intra-Delhi supply

Facts: Delhi retailer sells cigarettes (length > 75mm) 1,000 sticks at Rs. 500/stick to walk-in customer.

Computation / Steps:

Step 1. Total value = Rs. 5,00,000.

Step 2. Intra-Delhi — CGST 14% + DGST 14% = Rs. 1,40,000.

Step 3. Compensation Cess: Rs. 4170 per 1000 sticks specific + 290% ad valorem on retail sale price (subject to cap).

Step 4. Per current notification — specific Rs. 4,170 + ad valorem capped (calculation depends on specific cigarette length / type per Schedule).

Step 5. Total tax burden very high — typically 60-70% effective on cigarette value.

Step 6. No ITC at customer (B2C).

Result: Cigarettes — very high tax burden including specific + ad valorem cess. Sin tax design.

G.3 — Coal supply from mine to manufacturer

Facts: Coal India supplies 1,000 tonnes coal Rs. 50 lakh to power plant.

Computation / Steps:

Step 1. Inter-State (if cross-State) or intra-State per supply.

Step 2. CGST + State component or IGST at coal rate 5%.

Step 3. Compensation Cess on coal: Rs. 400 per tonne specific = 1,000 × Rs. 400 = Rs. 4,00,000.

Step 4. Power plant takes IGST/CGST credit + Cess credit (siloed for cess payment).

Step 5. If power plant's downstream supplies (electricity) are exempt, ITC reversal under Rule 42/43.

Step 6. Coal cess significant input cost.

Result: Coal supply — Rs. 400/tonne specific Compensation Cess. Significant cost in coal-intensive industries.

G.4 — Online gaming (post 01.10.2023) 28% Cess

Facts: Delhi-based fantasy sports platform accepts bet Rs. 1,000 from customer post 01.10.2023.

Computation / Steps:

Step 1. Post 01.10.2023 — online gaming notified under GST + Compensation Cess framework.

Step 2. GST 28% on full face value of bet = Rs. 280.

Step 3. Additional Compensation Cess 28% on full face value = Rs. 280.

Step 4. Combined tax = Rs. 560 (56% effective) on bet value.

Step 5. Critical: tax on full face value (not on margin) — substantial sector reset.

Step 6. Foreign gaming platforms register under s. 14 IGST simplified scheme.

Result: Online gaming 28% GST + 28% Cess on full face value post-01.10.2023. Major industry reset.

H.1 — Netflix to Delhi individual subscriber

Facts: Netflix US supplies streaming to Delhi individual subscriber Rs. 500/month.

Computation / Steps:

Step 1. OIDAR per s. 2(17) IGST.

Step 2. Subscriber = non-taxable online recipient per s. 2(16) (post FA 2023 broadened scope — any unregistered).

Step 3. POS per s. 13(12) — recipient location India.

Step 4. s. 14 IGST simplified scheme — Netflix as foreign supplier registers + pays.

Step 5. IGST 18% = Rs. 90/month.

Step 6. Subscriber pays Rs. 590 inclusive.

Step 7. Netflix files GSTR-5A monthly.

Result: OIDAR B2C — foreign supplier pays via simplified scheme. IGST 18%.

H.2 — Foreign cloud service to Indian registered business — RCM

Facts: Microsoft Azure US supplies cloud services Rs. 5 lakh to Delhi registered company.

Computation / Steps:

Step 1. OIDAR but recipient is registered (not 'non-taxable online recipient').

Step 2. RCM under s. 5(3) IGST.

Step 3. Delhi company pays IGST 18% = Rs. 90,000 on RCM.

Step 4. Self-invoice + ITC.

Step 5. Microsoft does not register under s. 14 for this supply (different from B2C).

Result: OIDAR B2B — RCM on Indian registered recipient. Different from B2C s. 14 framework.

H.3 — Indian IT export to US subsidiary

Facts: Delhi IT subsidiary of US parent provides software development to US parent Rs. 5 cr annually.

Computation / Steps:

Step 1. Per s. 13(2) — POS = recipient location US.

Step 2. Apply intermediary test per Circular 159/2021 — Delhi subsidiary provides on own account (not arranging between parties) → NOT intermediary.

Step 3. Apply distinct-person test per s. 2(6)(v) — Delhi subsidiary and US parent are separate legal persons per Circular 161/2021.

Step 4. Qualifies as export of services under s. 2(6).

Step 5. Zero-rated under s. 16; LUT route preferred.

Result: Export of services qualifies; subsidiary-parent treated as separate legal persons. LUT route + ITC refund.

H.4 — Online gaming platform post 01.10.2023 framework

Facts: Foreign gaming platform serves Indian users; bet face value Rs. 1 cr/month.

Computation / Steps:

Step 1. Post 01.10.2023 — online gaming = OIDAR + 28% GST + 28% Compensation Cess on full face value.

Step 2. Foreign platform registers under s. 14 IGST + Compensation Cess framework.

Step 3. Pays 28% IGST + 28% Cess on Rs. 1 cr face value = Rs. 56 lakh tax/month.

Step 4. Monthly GSTR-5A filing.

Step 5. Major compliance burden for foreign gaming platforms.

Result: Foreign gaming post-01.10.2023 — substantial tax burden; full face value taxed.

I.1 — Multi-State hotel chain consolidated bill

Facts: Hotel chain X charges consolidated Rs. 30,000 for 2 nights Delhi + 1 night Agra.

Computation / Steps:

Step 1. Per s. 12(3)(b) + Rule 4(i) IGST Rules — multi-State accommodation POS = property location.

Step 2. Apportionment by nights ratio: Delhi:Agra = 2:1.

Step 3. Delhi UT: Rs. 20,000 → CGST + DGST.

Step 4. Agra UP: Rs. 10,000 → If supplier in UP intra-UP; if elsewhere inter-State IGST.

Step 5. Separate State invoices required.

Result: Multi-State hotel — nights ratio per Rule 4(i). Separate State invoices.

I.2 — Multi-State leased circuit

Facts: Telecom provider installs leased circuit Delhi-Bangalore-Chennai; consolidated charge Rs. 10 lakh.

Computation / Steps:

Step 1. Per s. 12(11) + Rule 6 IGST Rules — multi-State leased circuit POS = point-based allocation.

Step 2. Points: Delhi 1 + Bangalore 1 + Chennai 1 = 3 points total (assuming benefit at each).

Step 3. Ratio 1:1:1.

Step 4. Delhi UT: Rs. 3.33 lakh; Karnataka: Rs. 3.33 lakh; Tamil Nadu: Rs. 3.33 lakh.

Step 5. Separate State invoices.

Result: Multi-State leased circuit — point-based allocation per Rule 6.

I.3 — Internet advertisement to Government (nationwide post 01.01.2019)

Facts: Government issues release order to digital ad agency Rs. 20 lakh for nationwide internet advertisement campaign.

Computation / Steps:

Step 1. Per s. 12(14) + Rule 3(h) IGST Rules — internet advertisement to Government.

Step 2. Post 01.01.2019 amendment — deemed provided all over India.

Step 3. Apportionment by TRAI internet subscriber figures by State (with population ratio for multi-State service areas).

Step 4. Compute State-wise ratio; apply to Rs. 20 lakh.

Step 5. Separate State invoices.

Result: Nationwide internet advertisement — TRAI-data-based State-wise allocation.

I.4 — Cross-border training services to multi-State performance

Facts: UK training provider conducts training Rs. 10 lakh in Mumbai + Delhi for non-registered Indian recipients.

Computation / Steps:

Step 1. Per s. 13(3)(b) + Rule 7(iii) IGST Rules — services to individuals requiring physical presence; cross-border; multi-State performance.

Step 2. GAAP-based allocation per Rule 7(iii).

Step 3. Assume GAAP ratio Mumbai:Delhi = 60:40.

Step 4. Mumbai portion Rs. 6 lakh; Delhi portion Rs. 4 lakh.

Step 5. POS Mumbai + Delhi.

Step 6. RCM on Indian recipients per s. 5(3) IGST.

Result: Cross-border training multi-State — GAAP allocation per Rule 7. RCM on Indian recipients.

I.5 — Bill-to-ship-to with three different States

Facts: Mumbai supplier A delivers goods to Pune warehouse C on instruction of Delhi bill-to party B.

Computation / Steps:

Step 1. Per s. 10(1)(b) IGST + Circular 184/2022.

Step 2. A-to-B leg: POS = principal place of business of B = Delhi.

Step 3. A (Mumbai) ≠ POS (Delhi) — inter-State IGST.

Step 4. B-to-C leg: separate supply per Circular 184/2022. POS = Pune (destination).

Step 5. B (Delhi) ≠ POS (Pune) — inter-State IGST.

Step 6. Both legs inter-State IGST.

Result: Bill-to-ship-to with three States — two inter-State IGST supplies. Each leg separately invoiced.

J.1 — IGST wrongly paid; held intra-State (s. 19(1) refund + s. 12 UTGST/DGST no-interest)

Facts: Delhi supplier paid IGST Rs. 1.8 lakh on Rs. 10 lakh supply; subsequently held intra-Delhi; correct CGST + DGST Rs. 1.8 lakh payable.

Computation / Steps:

Step 1. Apply s. 19(1) IGST — refund of IGST Rs. 1.8 lakh.

Step 2. File Form RFD-01 under Rule 89.

Step 3. Relevant date per Circular 162/2021 — date of correct CGST + DGST payment.

Step 4. Pay correct CGST 9% + DGST 9% = Rs. 1.8 lakh.

Step 5. Per s. 19(2) IGST + s. 12 DGST — no interest on CGST + DGST payable.

Step 6. Net cash neutral (subject to refund processing time).

Step 7. ITC chain adjustments at recipient.

Result: Mis-classification correction — refund + no-interest framework. Circular 162/2021 operative.

J.2 — Inverted-duty refund (VKC Footsteps framework)

Facts: Footwear manufacturer pays GST 18% on inputs; sells outputs at 5% (inverted duty); accumulated ITC Rs. 10 lakh.

Computation / Steps:

Step 1. Inverted-duty refund per s. 54(3) CGST + Rule 89(5).

Step 2. Formula: (Net ITC × Inverted-rated turnover) ÷ Adjusted Total Turnover.

Step 3. Refund limited to ITC on inputs (goods) per Rule 89(5) — excludes input services (VKC Footsteps doctrine).

Step 4. File Form RFD-01 under category 'Refund of unutilized ITC on inverted duty structure'.

Step 5. Within 2 years of relevant date.

Result: Inverted-duty refund — input goods ITC only per VKC Footsteps. Critical for inverted-duty sectors.

J.3 — Zero-rated refund of accumulated ITC (export of services)

Facts: Delhi IT exporter has accumulated ITC Rs. 5 lakh; zero-rated export turnover Rs. 50 lakh; total turnover Rs. 60 lakh.

Computation / Steps:

Step 1. Export of services per s. 16(1)(a) IGST under LUT route.

Step 2. Refund under Rule 89(4): Refund = (Zero-rated turnover × Net ITC) ÷ Adjusted Total Turnover.

Step 3. Refund = (50 lakh × 5 lakh) ÷ 60 lakh = Rs. 4.17 lakh.

Step 4. File Form RFD-01 quarterly.

Step 5. 60-day acknowledgement; 90% provisional refund.

Result: Zero-rated services refund per Rule 89(4) formula. Practitioner standard framework.

J.4 — Safari Retreats ITC functionality test (post-judgment)

Facts: Mumbai mall developer constructed mall Rs. 100 cr (CGST + MGST on construction inputs Rs. 18 cr). Mall leased out (taxable rental).

Computation / Steps:

Step 1. Pre-Safari Retreats: s. 17(5)(d) CGST blocks ITC on construction of immovable property other than plant or machinery.

Step 2. Post-Safari Retreats (2024): Functionality test — building used to make taxable outward supplies (rental) may qualify as 'plant' under s. 17(5)(d).

Step 3. Mumbai mall used for taxable rental → may qualify as plant.

Step 4. ITC Rs. 18 cr may be claimable subject to functionality test application.

Step 5. Matter remanded by SC; fact-specific application required.

Step 6. Practitioner reassessment of historical blocked ITC opportunity.

Result: Safari Retreats reset on construction ITC. Functionality test enables ITC for buildings used to make taxable supplies. Major retrospective opportunity.