CA Final PAPER 5: INDIRECT TAX LAWS Syllabus

PAPER 5: INDIRECT TAX LAWS syllabus — full chapter and topic list

Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for PAPER 5: INDIRECT TAX LAWS in CA Final, not a summary of it.

1. 1

   PART I: GOODS AND SERVICES TAX

   13 topics

   • Goods and Services Tax (GST) Law
     • Central Goods and Services Tax (CGST) Act, 2017
     • Integrated Goods and Services Tax (IGST) Act, 2017
   • Case Studies based on GST Law
     • Levy and collection of CGST and IGST
     • Concept of supply
     • Inter-State supply
     • Intra-State supply
     • Supplies in territorial waters
     • Charge of tax including reverse charge
     • Classification
     • Exemption from tax
     • Place of supply
     • Time of Supply
     • Value of supply
     • Input tax credit
     • Computation of GST liability
   • Procedures under GST
     • Registration
     • Tax invoice
     • Credit and debit notes
     • Electronic way-bill
     • Accounts and records
     • Returns
     • Payment of tax
   • Refunds under GST
     • Refund provisions
   • Job Work
   • Liability to pay in certain cases
   • Administration of GST; Assessment and Audit
   • Inspection, Search, Seizure and Arrest
   • Demand and Recovery; Offences and Penalties
   • Appeals and Revision
   • Advance Ruling
   • Ethics under GST
   • Other Provisions
2. 2

   PART II: CUSTOMS & FTP

   11 topics

   • Customs Law
     • Customs Act, 1962
     • Customs Tariff Act, 1975
   • Introduction to Customs Law
     • Constitutional aspects
   • Levy of Customs Duties
     • Taxable event
     • Charge of customs duty
     • Exceptions to levy of customs duty
     • Exemption from custom duty
   • Types of Customs Duties
   • Classification and Valuation of Imported and Export Goods
   • Import and Export Procedures
     • Special procedures relating to baggage
     • Goods imported or exported by post
     • Stores
   • Warehousing
   • Refund
   • Foreign Trade Policy
     • Legislation governing FTP
     • Salient features of FTP
     • Administration of FTP
     • Contents of FTP and other related provisions
   • Basic Concepts relating to Import and Export
   • Basic Concepts relating to Export Promotion Schemes under FTP

PAPER 5: INDIRECT TAX LAWS flashcards for CA Final

20 of 55 cards from the PAPER 5: INDIRECT TAX LAWS deck — real questions with worked answers.

1. Under the GST law, what is the taxable event that triggers levy of GST?

   "Supply" of goods or services or both. GST is levied on supply, not on manufacture, sale, or provision of service (Section 9 of CGST Act / Section 7 defines scope of supply).

2. What are the key elements that constitute a "supply" under Section 7 of the CGST Act?

   A transaction must (a) involve goods/services, (b) be made for consideration, and (c) be in the course or furtherance of business. Plus deemed supplies under Schedule I (even without consideration) and activities in Schedule II (classified as goods or services).

3. Distinguish between a "composite supply" and a "mixed supply" under GST.

   Composite supply: naturally bundled supplies with one principal supply; taxed at the rate of the principal supply. Mixed supply: two or more independent supplies for a single price not naturally bundled; taxed at the rate of the item attracting the highest rate.

4. What is the rate of GST applicable on inter-State supply versus intra-State supply?

   Inter-State supply attracts IGST. Intra-State supply attracts CGST + SGST/UTGST (split equally, so total equals the IGST rate).

5. Define "input tax credit" (ITC) under GST.

   ITC means credit of CGST, SGST/UTGST, IGST, or cess charged on any supply of goods/services used or intended to be used in the course or furtherance of business, which can be set off against output tax liability.

6. State the four cumulative conditions under Section 16 for availing input tax credit.

   (1) Possession of a valid tax invoice/debit note; (2) receipt of goods or services; (3) tax actually paid to the government by the supplier (and invoice reflected in GSTR-2B); (4) the recipient has furnished the return under Section 39.

7. What is the time limit for availing input tax credit on an invoice?

   Earlier of: 30th November following the end of the financial year to which the invoice/debit note pertains, OR the date of furnishing the annual return.

8. Under the reverse charge mechanism (RCM), who is liable to pay GST?

   The recipient of goods or services, instead of the supplier. Applies to notified categories of supplies and to supplies received by a registered person from an unregistered supplier (where notified).

9. What is the threshold turnover limit for compulsory GST registration for suppliers of goods (normal category states)?

   Aggregate turnover exceeding Rs. 40 lakh in a financial year for exclusive suppliers of goods (Rs. 20 lakh for special category states). For services, the limit is Rs. 20 lakh (Rs. 10 lakh for special category states).

10. What is the maximum rate of CGST that can be levied under Section 9 of the CGST Act?

    20% (so combined CGST + SGST can be up to 40%). IGST maximum is 40% under the IGST Act.

11. What is the time of supply of goods under forward charge (Section 12)?

    Earlier of: (a) date of issue of invoice or the last date on which invoice was required to be issued, or (b) date of receipt of payment. (Note: for goods, GST on advances is generally not payable; tax is on invoice date.)

12. How is the value of supply determined under Section 15 of the CGST Act?

    Transaction value, i.e., the price actually paid or payable where supplier and recipient are unrelated and price is the sole consideration. Inclusions: taxes (other than GST), incidental expenses, interest/late fees, subsidies (except government subsidies).

13. What is the place of supply for services by way of transportation of goods to a registered person?

    The location of the registered recipient. If the recipient is unregistered, it is the location at which the goods are handed over for transportation.

14. In a case study where a registered dealer sends goods for job work and the job worker is in another state, what GST treatment applies to the movement?

    Movement to a job worker is not a supply (no GST) if sent under a delivery challan; the principal can send goods without payment of tax under Section 143, subject to return/supply within the prescribed period.

15. Under Section 143 (Job Work), within what time must inputs and capital goods sent for job work be returned to the principal?

    Inputs: within 1 year. Capital goods: within 3 years (excluding moulds, dies, jigs, fixtures, or tools). If not returned, it is deemed a supply by the principal on the date the goods were sent out.

16. Can a principal supply goods directly from the job worker's premises? What is the condition?

    Yes. The principal may supply directly from the job worker's place of business by declaring it as an additional place of business, or if the job worker is registered, or if the goods are notified.

17. What is the structure of a refund claim under Section 54 of the CGST Act and the general time limit?

    Refund must be claimed within 2 years from the "relevant date" (which varies by type of refund) by filing Form GST RFD-01. Covers refund of tax, interest, or any other amount paid.

18. In the case of refund on account of zero-rated supplies (exports), what are the two options available?

    (1) Export under Letter of Undertaking (LUT)/bond without payment of IGST and claim refund of unutilised ITC; or (2) Export on payment of IGST and claim refund of the IGST paid.

19. What is the formula for refund of unutilised ITC on account of zero-rated supply without payment of tax?

    Refund Amount = (Turnover of zero-rated supply of goods + Turnover of zero-rated supply of services) x Net ITC / Adjusted Total Turnover.

20. What is the threshold below which a refund is not granted under GST?

    No refund is granted if the amount is less than Rs. 1,000.

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