CS Executive Tax Laws Syllabus

What is Input Tax Credit (ITC) under GST?

ITC is the credit a registered taxpayer can claim for GST paid on inputs, input services and capital goods used in the course of business, set off against output GST liability to avoid cascading of tax.

What is the threshold turnover limit for mandatory GST registration (goods)?

Aggregate turnover exceeding Rs. 40 lakh for suppliers of goods in normal category states (Rs. 20 lakh for special category states); Rs. 20 lakh / Rs. 10 lakh respectively for services.

What is the Composition Scheme under GST?

A scheme for small taxpayers (turnover up to Rs. 1.5 crore) to pay GST at a low fixed rate of turnover (e.g. 1% for traders/manufacturers, 5% for restaurants) without ITC and with simplified quarterly compliance.

What is Reverse Charge Mechanism (RCM) under GST?

RCM is where the recipient of goods/services, instead of the supplier, is liable to pay GST to the government (e.g. on notified supplies or supplies from unregistered persons).

What is the 'place of supply' concept under GST and why does it matter?

Place of supply determines whether a transaction is intra-state or inter-state, and hence whether CGST+SGST or IGST applies. It is essential because GST is a destination-based consumption tax.

What is the GST formula to compute net tax payable using ITC?

Net GST Payable = Output GST (on outward supplies) - Input Tax Credit (on inward supplies). IGST credit is used first, then CGST and SGST in the prescribed order.

What is an HSN code under GST?

HSN (Harmonized System of Nomenclature) is an internationally standardized numeric code used to classify goods for determining the applicable GST rate. Services are classified using SAC (Services Accounting Code).

What is the Customs Act, 1962, and what does it regulate?

The Customs Act, 1962 is the law governing the levy and collection of customs duty on goods imported into and exported from India, and regulates the import/export procedure, valuation, and prevention of smuggling.

What are the main types of customs duties levied under the Customs Act?

Basic Customs Duty (BCD), IGST on imports, Social Welfare Surcharge, Anti-dumping duty, Countervailing/Safeguard duty, and Protective duty (with the erstwhile CVD/SAD now subsumed into IGST).

What is the taxable event for customs duty under the Customs Act, 1962?

The taxable event for import duty is when goods cross the customs barrier / are entered for home consumption in India; for export duty it is when goods are entered for export (cross the territorial waters).

How is the assessable value for customs duty generally determined?

Generally on the transaction value (price actually paid or payable) under Section 14, on a CIF basis — Cost + Insurance + Freight — converted at the notified exchange rate.

What is a Bill of Entry under the Customs Act?

A Bill of Entry is the declaration filed by an importer (or agent) with customs for clearance of imported goods for home consumption or warehousing, giving details and value of the goods.

What is Excise Duty and on what is it levied?

Excise duty (Central Excise) is an indirect tax on the manufacture or production of goods within India. Post-GST, central excise survives mainly on petroleum products, tobacco and alcohol (outside GST).

What is the taxable event for excise duty?

The taxable event for excise duty is the manufacture or production of excisable goods in India; duty becomes payable on removal of goods from the factory/place of manufacture.

Distinguish between excise duty and customs duty.

Excise duty is levied on goods manufactured within India (taxable event: manufacture). Customs duty is levied on goods imported into or exported from India (taxable event: crossing the customs frontier).

Who is the apex administrative body for direct taxes in India?

The Central Board of Direct Taxes (CBDT), functioning under the Department of Revenue, Ministry of Finance, is the apex body administering direct tax laws including the Income Tax Act.

Who administers indirect taxes (GST, customs, excise) in India at the apex level?

The Central Board of Indirect Taxes and Customs (CBIC), under the Department of Revenue, Ministry of Finance.

What is the GST Council and what is its role?

The GST Council is a constitutional body (Article 279A) chaired by the Union Finance Minister with state finance ministers as members, making recommendations on GST rates, exemptions, thresholds and laws.

List the hierarchy of income tax authorities under Section 116 (top to bottom).

CBDT → Principal Chief Commissioners/Chief Commissioners → Principal Commissioners/Commissioners → Additional/Joint Commissioners → Deputy/Assistant Commissioners → Income Tax Officers → Inspectors of Income Tax.

What is the due date for filing income tax returns for individuals not requiring audit?

Generally 31 July of the relevant assessment year for individuals/non-audit cases; 31 October for taxpayers whose accounts require audit.

What is a 'belated return' and a 'revised return' under the Income Tax Act?

A belated return (Section 139(4)) is filed after the due date but before the prescribed deadline. A revised return (Section 139(5)) corrects an omission/error in an originally filed return, within the prescribed time.

What is Self-Assessment under Section 140A of the Income Tax Act?

Self-assessment is where the assessee computes total income and tax payable, pays any balance tax (after TDS and advance tax) along with interest, before filing the return.

Distinguish between Summary Assessment (143(1)) and Scrutiny Assessment (143(3)).

Summary assessment under Section 143(1) is automated processing for arithmetic errors/prima facie adjustments. Scrutiny assessment under Section 143(3) is a detailed examination after notice to verify the correctness of the return.

What is Best Judgment Assessment under Section 144?

An assessment made by the Assessing Officer to the best of his judgment when the assessee fails to file a return, comply with notices, or maintain proper accounts, based on available material and after giving an opportunity of being heard.

What is income escaping assessment / reassessment under Section 147?

It empowers the Assessing Officer to assess or reassess income that has escaped assessment for an assessment year, after following due procedure (notice under Section 148 based on information suggesting escaped income).

What is the penalty for under-reporting of income under Section 270A?

Penalty of 50% of the tax payable on under-reported income; and 200% of the tax payable where the under-reporting results from misreporting of income.

What is the penalty for failure to file a return / late filing fee under Section 234F?

A late filing fee of up to Rs. 5,000 (Rs. 1,000 if total income does not exceed Rs. 5 lakh) is levied for filing the income tax return after the due date.

What is the difference between a penalty and a prosecution under tax law?

A penalty is a monetary punishment imposed in addition to tax for default/non-compliance (civil consequence). Prosecution is criminal proceedings leading to imprisonment and/or fine for serious offences like wilful evasion or false statements.

What is the penalty under GST for tax not paid / short paid due to fraud (Section 122)?

For fraud cases, the penalty is 100% of the tax due or Rs. 10,000, whichever is higher. For non-fraud cases (genuine errors), the penalty is 10% of the tax due or Rs. 10,000, whichever is higher.

What are interest provisions under Sections 234A, 234B and 234C of the Income Tax Act?

234A: interest for late filing of return; 234B: interest for default in payment of advance tax (less than 90% paid); 234C: interest for deferment/shortfall in advance tax installments. All charged at 1% per month.