CGST Act Overview and Exemptions

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Questions and Answers

How many days can an appeal before AAAR be filed?

30 days

90 days

60 days (correct)

120 days

Within how many hours must a person arrested for an offence under section 132 be produced before a Magistrate?

25 hours

26 hours

24 hours (correct)

4 hours

What should an assessee do to comply with anti-profiteering provisions?

Pay a fee to the authorities

Pass on the benefit of input tax credit

Reduce the rate of tax on supplies

Both (a) and (b) (correct)

What taxes can have jurisdiction over an applicant?

Union tax and territorial tax Signup and view all the answers

What is the time frame under section 69(2) of CGST Act, 2017 for the officer to inform the grounds of arrest?

Within 24 hours Signup and view all the answers

What is the maximum number of days for the state government to forward the SEZ approval proposal to the Board of Approval (BoA)?

Forty-five days Signup and view all the answers

When an SEZ supplies goods/services to a Domestic Tariff Area (DTA), what does the receiver in the DTA have to pay?

IGST under reverse charge mechanism Signup and view all the answers

Which of the following does not qualify as supply under the provided content?

Money and securities Signup and view all the answers

What is excluded from the meaning of supply?

Money and securities Signup and view all the answers

In the case of M/s R Associates receiving consultancy services from A Inc. of USA, why does it not classify as supply?

The services were provided without any consideration Signup and view all the answers

What classification applies to X Ltd's transfer of business assets as part of CSR without consideration?

Does not qualify as supply Signup and view all the answers

Under which scenario does a supply not take place according to the information given?

Provision of services without consideration Signup and view all the answers

What schedule outlines items that are out of the purview of supply?

Schedule III Signup and view all the answers

Who grants permission for manufacturing or other operations in the bonded facility?

Commissioner of Customs Signup and view all the answers

Which operations are currently not allowed in a bonded warehouse?

Both (a) and (b) Signup and view all the answers

What is the maximum duty drawback rate on the FOB value of exports?

33% Signup and view all the answers

What happens once a Bill of Entry is cleared for home consumption?

The bond is debited automatically Signup and view all the answers

What is the full form of IIN?

Import of Goods at Concessional Rate Identification Number Signup and view all the answers

What is the maximum value of goods that can be exported as a gift in a licensing year?

₹ 5,00,000.00 Signup and view all the answers

What is the minimum value addition required under DFIA?

20% Signup and view all the answers

What is the minimum investment required in plant & machinery for establishing EOUs?

₹ 1 crore Signup and view all the answers

What is the value of the baggage liable to duty when Mr. K brought a laptop valued at ₹76,000 and personal effects valued at ₹1,20,000?

₹22,000 Signup and view all the answers

What is the value of the baggage that Mr. K brought to India after deducting his duty-free allowance of ₹1,00,000?

₹10,000 Signup and view all the answers

What is the new limit for duty-free import of samples as enhanced by NT 154/94-Customs?

₹30 lakh per annum Signup and view all the answers

What should the proper officer consider when raising doubts on the declared value of imported goods?

Abnormal discounts and competitive pricing Signup and view all the answers

If the value of a personal computer is ₹1,10,000 and personal effects are valued at ₹60,000, how much is duty-free allowance applicable?

₹50,000 Signup and view all the answers

Which of the following constitutes a reason for the officer to raise doubts about the accuracy of declared value?

Special discounts and pricing structures Signup and view all the answers

What should be the correct understanding of 'abnormal discount' in relation to customs duties?

Discounts that exceed regular pricing strategies Signup and view all the answers

What does the term 'personal effects' refer to in the context of customs duties?

Items designated solely for personal use Signup and view all the answers

What is the maximum turnover in the preceding financial year for a service provider to opt for the GST composition scheme?

Rs. 150 lakh or below Signup and view all the answers

Which section of the CGST Act allows the government to issue a general exemption notification?

Section 11(1) Signup and view all the answers

Which section of the IGST Act relates to the exemption provided by way of a special order?

Section 6(2) Signup and view all the answers

Under what condition are services by a hotel not exempted for residential purposes?

If the actual tariff is above Rs. 1,000 Signup and view all the answers

Which of the following is exempted from GST?

A business exhibition outside India Signup and view all the answers

At what stage can exemption be claimed even if not claimed at a prior stage?

Any stage Signup and view all the answers

What is the turnover limit for a service provider to qualify for the GST composition scheme in a preceding financial year?

Rs. 150 lakh or below Signup and view all the answers

Which section of CGST Act is related to special orders for exemption?

Section 11(2) Signup and view all the answers

When is a hotel service exempt from GST for residential purposes?

When the tariff is below Rs. 10,000 Signup and view all the answers

Which of the following stages can exemption be claimed?

Any relevant stage Signup and view all the answers

Study Notes

Composition Scheme

A service provider other than providers mentioned in section 10 of the CGST Act, 2017 can opt for the Composition Scheme if their aggregate turnover in the preceding financial year was below 50lakh rupees.
A provider of goods or services, other than those specified in section 10 of the CGST Act, 2017, can opt for the Composition Scheme if their aggregate turnover in the preceding financial year was below 75 lakh rupees.

Exemptions

Government can issue general exemptions based on section 11(1) of the CGST Act & section 6(1) of the IGST Act.
Government can issue exemptions via special order based on section 11(2)of the CGST Act & section 6(2) of the IGST Act.

Hotel/ Inn/ Guest Houses

Hotels, inns, guest houses, clubs, and campsites are not exempted from GST for residential/lodging purposes.

Business Exhibitions

A business exhibition in India is exempt from GST.

Claims

Exemption can be claimed at the adjudication stage even if not claimed at the investigation stage.

Appeal

Appeals to the AAAR (Advance Ruling Authority) must be filed within 30 days.

Arrest

A person arrested under section 132 of the CGST Act, 2017 for an offense specified under sub-section (5) of section 132, must be informed of the grounds for arrest and produced before a magistrate within 24 hours.

Anti-Profiteering

An assessee must produce the imported goods, pass on the benefit of input tax credit, and reduce the rate of tax on any supply of goods or services to satisfy anti-profiteering provisions when the sale involves an abnormal discount or special discounts.

Adjudicating Authority

The Adjudicating Authority has the power to raise doubts on the truth or accuracy of the declared value.

Value of Baggage

The value of baggage liable to duty is calculated by subtracting the duty-free allowance from the total value of personal belongings.

SEZ - State Government

The State government forwards the proposal to the Board of Approval (BoA) along with its recommendation within 45 days of receiving the SEZ application.

SEZ - IGST

When an SEZ supplies goods/services to a Domestic Tariff Area (DTA), it is exempt from paying taxes, although the receiver in the DTA has to pay IGST under reverse charge.

GST

Money and securities are not considered goods under the GST law.

Exempt Supplies

Exempt supplies are listed in Schedule III of the GST law.

A transfer of business assets as a part of corporate social responsibility (CSR) without consideration is not considered a supply.

Bonded Warehouse

The Commissioner of Customs grants permission for manufacturing or other operations in a bonded facility.

Duty Drawback

The maximum duty drawback rate on FOB value of exports is 33%.

Bill Of Entry

Once a Bill of Entry is cleared for home consumption, the bond submitted by the importer is automatically debited in the customs automated system.

Import of Goods at Concessional Rate Identification Number (IIN)

The importer who intends to avail the benefit of exemption shall mention the IIN, continuity bond number, and details while filing the Bill Of Entry.

IGCR-3

The importer shall submit a monthly statement on the common portal in the Form IGCR-3 (Import of Goods at Concessional Rate of Duty) by the tenth day of the following month.

Gift

The value of goods exported as a gift cannot exceed ₹5,00,000.00 in a licensing year.

DFIA

The minimum value addition required to be achieved under the Duty Free Import Authorization (DFIA) scheme is 20%.

EOUs

Projects for establishment as Export Oriented Units (EOUs) must have a minimum investment of ₹1 crore in plant & machinery.

Status Holders

Status holders can export freely exportable items (excluding Gems and Jewelry, Articles of Gold and precious metals) for export promotion subject to a yearly limit of either ₹1 crore or 2% of average annual export realization during the preceding three licensing years, whichever is lower.

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Description

Test your knowledge on the Composition Scheme under the CGST Act, 2017, and understand the exemptions applicable to various services and sectors. This quiz covers the aggregate turnover thresholds and specific exemptions for businesses in India, including provisions regarding hotels and exhibitions.