If you're preparing for CS, CA, or CMA exams, GST is one subject you can’t afford to ignore. With the vast syllabus and ever-evolving laws, focusing on the most expected and high-yield topics can give you a strategic edge. Here's a curated summary of the "Top 45 Most Expected Points for Exams" by Vivek Gaba Sir (VG Sir) to help you revise smartly.
📌 GST Key Concepts & Time Limits
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Invoice Time Limits:
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Movement of Goods: Date of Removal.
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No Movement: Date of Delivery.
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Depreciation & ITC:
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If depreciation is claimed on the GST component under Income Tax, ITC is not allowed.
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Books of Account Retention:
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Keep for 72 months from the due date of the Annual Return.
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CTP/NRTP Registration Validity:
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Valid for 90 days + extension up to 90 days.
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E-way Bill Validity:
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It depends on the distance and timenull from the generation date.
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💡 ITC (Input Tax Credit) Insights
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Goods Received in Lots:
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Full ITC on receipt of the last lot.
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No Time Limit for re-availing the reversed ITC.
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Blocked Credits Include:
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Membership fees, food/catering for employees, and construction costs are capitalised.
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Purchase from Composition Dealer:
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No ITC allowed.
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ITC via GSTR-2B:
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Only available if the invoice is uploaded by the supplier.
💰 Valuation & Discounts
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Subsidies:
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Govt Subsidy: Excluded from value.
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Non-Govt Subsidy: Included in value.
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Discounts:
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Pre-agreed/Linked to Invoice: Deductible.
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Secondary Discount: Not deductible.
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Interest/Late Fee/Penalty:
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Deemed included if not extra charged.
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🧾 GSTR & Returns Related
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Rectification in GSTR:
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Allowed up to 30th Nov of next FY.
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GSTR-3B Rule:
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Can’t file the current month's return if the previous month's return is pending.
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Composition Scheme Dealers:
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Cannot make the interstate outward supply.
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Returns: CMP-08 by the 18th of the next quarter, GSTR-9A by the 31st Dec.
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ICSI Dec 2025: Notes for CS Executive and CS Professional: Handwritten Notes - Click Here
🏠 Renting and Real Estate
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Residential Dwelling:
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To be unregistered for residence → Exempt.
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For commercial use → Taxable.
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Warehousing Services:
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For agricultural produce → Exempt.
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For processed items like tomato chips,s → Taxable.
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💼 Employment & Directors
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Director Services: In Theesourcee of employment → Not taxable.
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Independent/Not employee → RCM applicable.
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Gifts by Employer:
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Up to ₹50,000/year → Not taxable.
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🚚 Place of Supply & Movement
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Over-the-counter purchase, transported to another state:
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B2C – a place of delivery is decisive.
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Stock Transfer:
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Same GSTIN: No GST.
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Different GSTIN: GST is applicable.
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Transportation of Goods:
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To URP → Place = Handover location.
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📖 Miscellaneous Exam-Focused Points
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Hotel Accommodation:
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Up to ₹20,000/person/month for ≥90 days → Exempt.
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Sponsorship to Body Corporate/Firm:
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Covered under RCM.
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Online Monthly Magazines for Students:
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Exempt.
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Canteen Services:
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School students: Exempt
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College students: Taxable
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Booking Flight Tickets:
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Taxable under GST.
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Services by Charitable Trust (Sports Training):
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Exempt.
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Remuneration as Selector/Commentator:
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Taxable.
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✅ High-Impact Quick Reminders
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Mixed Supply: The Highest GST rate applies.
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Composite Supply: Rate of principal item.
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Trial Run ITC: Allowed.
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Advance Received in Previous Month: Taxable in the month of invoice.
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GSTR-1 → GSTR-2B → ITC claimable only if reflected.
📄 Final Word
These 45 points touch upon highly testable areas in GST and should be part of your last-minute revision list. Make flashcards, revise regularly, and link concepts with practical examples for better retention.
ICSI Dec 2025: Notes for CS Executive and CS Professional: Handwritten Notes - Click Here
1. What is the time limit to issue a tax invoice in case of movement of goods under GST?
Answer:
In case of movement of goods, the tax invoice must be issued before or at the time of removal of goods for supply to the recipient. This is governed by Section 31 of the CGST Act. The rationale is that tax liability arises at the time of supply, and issuing the invoice before removal ensures proper tracking of the transaction.
2. When should a tax invoice be issued if there is no movement of goods?
Answer:
If there is no movement of goods, the invoice must be issued at the time of delivery or making the goods available to the recipient. This applies in cases like works contract or job work, where the goods are consumed or used at the supplier’s place.
3. Can a registered person claim ITC if they have claimed depreciation on GST component under Income Tax?
Answer:
No. If depreciation under the Income Tax Act is claimed on the GST amount (i.e., tax component of the cost of capital goods), then Input Tax Credit (ITC) is not allowed under GST law. This avoids double benefit to the taxpayer – once under IT and once under GST.
4. For how long must books of accounts be retained under GST?
Answer:
As per Section 36 of the CGST Act, the records must be kept for 72 months (6 years) from the due date of filing of the annual return for that particular financial year. This ensures that in case of audit, inspection, or demand, records are readily available.
5. What is the validity of registration for a Casual Taxable Person (CTP) or Non-Resident Taxable Person (NRTP)?
Answer:
A CTP or NRTP can take registration for a maximum of 90 days, which can be further extended by another 90 days upon request to the proper officer. This allows temporary taxpayers to comply without registering permanently.
6. When can ITC be claimed on goods received in lots or instalments?
Answer:
ITC can be claimed only upon receipt of the last lot or instalment of goods. This rule ensures that full quantity ordered is received before ITC is availed, avoiding misuse of credit on partial receipts.
7. Is there a time limit to re-avail reversed ITC?
Answer:
There is no time limit for re-availing ITC that was reversed earlier, provided the conditions for availing ITC are met later. For example, if payment to a supplier is delayed beyond 180 days and ITC is reversed, it can be re-availed once payment is made.
8. What are blocked credits under GST and give examples?
Answer:
Blocked credits are those explicitly disallowed under Section 17(5) of the CGST Act. Examples include:
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Membership of clubs/gyms.
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Food/catering for employees.
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Construction of immovable property (capitalized).
These are disallowed to prevent misuse and ensure credit is taken only for business inputs.
9. Can ITC be claimed on purchases made from a composition dealer?
Answer:
No. Purchases made from composition dealers are not eligible for ITC because composition dealers do not charge tax on invoices and pay a flat tax from their own pocket.
10. What is the role of GSTR-2B in ITC availability?
Answer:
GSTR-2B is an auto-drafted ITC statement generated monthly based on GSTR-1 and IFF filed by suppliers. As per Rule 36(4), ITC can be claimed only if the invoice appears in GSTR-2B, making it a critical compliance document.
ICSI Dec 2025: Notes for CS Executive and CS Professional: Handwritten Notes - Click Here
11. Are government subsidies included in the transaction value under GST?
Answer:
No. As per Section 15 of the CGST Act, government subsidies are excluded from the value of supply. However, subsidies provided by non-government entities are included in the transaction value as they directly affect the pricing of goods/services.
12. When are discounts deductible from the transaction value under GST?
Answer:
Discounts are deductible if:
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They are pre-agreed (before or at the time of supply),
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Mentioned in the invoice,
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And linked to relevant invoices.
Post-supply discounts (like year-end discounts) are not deductible unless established in an agreement made before the supply.
13. What is the GST implication on interest or late fee charged on delayed payment?
Answer:
Any interest, late fee, or penalty charged for delay in receiving payment is considered as part of the value of supply under Section 15(2)(d) and is taxable under GST.
14. What is the last date for rectification of errors in GSTR-1 or GSTR-3B?
Answer:
Errors can be rectified up to 30th November of the next financial year or date of filing the annual return, whichever is earlier. Beyond this, corrections are not permitted.
15. Can a registered person file GSTR-3B of the current period if the previous period's return is pending?
Answer:
No. GSTR-3B of the current month cannot be filed unless the return for the immediately preceding tax period has been filed. This ensures chronological filing and reduces defaulting.
16. What is the implication of supply by a composition dealer to another state?
Answer:
A composition dealer cannot make inter-state outward supply of goods or services. Doing so violates the composition scheme and may lead to cancellation of registration and penalty.
17. What is the due date for filing returns by a composition taxpayer?
Answer:
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CMP-08 (quarterly payment return): 18th of the month succeeding the quarter.
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GSTR-9A (annual return): 31st December of the next financial year.
18. What is the GST treatment for renting residential property for residential use?
Answer:
Renting residential dwelling to a registered person is taxable, but renting to an unregistered person for residential use is exempt under Notification No. 12/2017.
19. Are warehousing services for agricultural produce exempt under GST?
Answer:
Yes. Warehousing of raw agricultural produce is exempt. However, warehousing of processed food like packed tomato chips is taxable as it’s no longer unprocessed produce.
ICSI Dec 2025: Notes for CS Executive and CS Professional: Handwritten Notes - Click Here
20. Are director services under GST covered under reverse charge mechanism (RCM)?
Answer:
Yes, if the director is not an employee, the company is liable to pay GST under RCM on director’s fees. But if he is an employee, the salary is not taxable under GST.
21. What is the GST implication of gifts given by employers to employees?
Answer:
Gifts up to ₹50,000 per employee per year are exempt. If it exceeds ₹50,000, the excess amount is taxable. Regular salary and perquisites remain non-taxable under GST.
22. In case of over-the-counter purchase with delivery in another state, what is the place of supply?
Answer:
For B2C transactions, place of supply is the location where delivery terminates. So if delivery is in another state, it becomes interstate supply, even if the purchase was over-the-counter.
23. Is GST applicable on stock transfer between branches?
Answer:
If transfer is between branches with different GSTINs, GST is applicable. If transfer is within the same GSTIN (same PAN and state), no GST is payable.
24. What is the place of supply when goods are handed over to a transporter for delivery to an unregistered buyer?
Answer:
The place of handover to the transporter is deemed as the place of supply. This ensures that IGST or CGST+SGST is charged based on handover location.
25. Is hotel accommodation exempt under GST for long stays?
Answer:
Yes. If the accommodation is for more than 90 days and charged less than ₹20,000 per person per month, it is exempt from GST as it is treated akin to residential rental.
26. Who is liable to pay GST on sponsorship services?
Answer:
If sponsorship services are provided to a body corporate or firm, then RCM applies. The recipient is liable to pay tax under reverse charge.
27. Are online magazines provided to students exempt from GST?
Answer:
Yes. If the magazine is part of educational content provided online for educational purposes, it is exempt under GST as per education service notifications.
28. Is food provided in college hostels taxable under GST?
Answer:
Yes. Food services in college hostels are taxable, unlike school canteens, which are exempt as part of education services.
29. What is the GST status of flight ticket booking services?
Answer:
Booking flight tickets is a taxable service under GST. The travel agent has to charge GST on their commission and also pass on applicable airline GST to the customer.
ICSI Dec 2025: Notes for CS Executive and CS Professional: Handwritten Notes - Click Here
30. Is GST applicable on services provided by a charitable trust for sports training?
Answer:
No. If the charitable trust is providing sports training to students, it is exempt as per Notification 12/2017 under education-related services.
31. What is the GST treatment of services by selectors, coaches, and commentators in sports?
Answer:
Such services are taxable as they are not covered under exemptions. They are considered professional services liable to GST at applicable rates.
32. What is composite supply under GST? Give an example.
Answer:
Composite supply involves two or more goods/services naturally bundled, where one is the principal supply. The tax rate of principal supply applies.
Example: Selling a phone with charger – phone is principal.
33. What is mixed supply under GST?
Answer:
Mixed supply includes two or more independent goods/services sold together for a single price. The highest rate among the items applies.
Example: Diwali gift box with sweets, perfume, and toys.
34. Can ITC be claimed on inputs used for trial runs of machinery?
Answer:
Yes. ITC is allowed on goods and services used for trial runs, as they are part of the capital commissioning process of machinery before commercial use.
35. When is advance received taxable under GST?
Answer:
Advance is taxable in the month of receipt for services. For goods, GST on advance is not applicable, except for notified persons like composition taxpayers.
36. Can ITC be claimed on goods that are lost, stolen, or destroyed?
Answer:
No. As per Section 17(5)(h), ITC is not allowed on goods lost, stolen, destroyed, written off, or given as gifts/free samples.
37. Are CSR (Corporate Social Responsibility) expenses eligible for ITC?
Answer:
There’s ambiguity, but generally CSR expenses are not eligible for ITC as they are not incurred in the course of business. However, case-specific judgments may differ.
38. What are the conditions for availing ITC under Section 16(2)?
Answer:
A person must:
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Possess tax invoice,
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Have received goods/services,
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Tax must be paid to government,
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Return must be filed (GSTR-3B).
39. What is the time limit to avail ITC for a financial year?
Answer:
ITC must be availed by 30th November of the next financial year or filing of annual return, whichever is earlier.
ICSI Dec 2025: Notes for CS Executive and CS Professional: Handwritten Notes - Click Here
40. What is the GST implication of free promotional items?
Answer:
ITC is not allowed on goods given as free promotional items, as they are not supplied for consideration and are treated as non-taxable supplies.
41. What is the GST liability on employee reimbursements?
Answer:
If the expense is incurred in the course of employment, it is not a supply under Schedule III. But if the employer reimburses third-party services in the employee’s name, GST may apply.
42. When is e-way bill required for goods movement?
Answer:
When consignment value exceeds ₹50,000, an e-way bill must be generated for inter/intra-state movement of goods, except in exempted cases.
43. Is an e-way bill needed for hand delivery of goods?
Answer:
Yes, if the value exceeds ₹50,000. Mode of transport (hand/courier/vehicle) doesn’t exempt from e-way bill requirement unless specifically notified.
44. Can a person take multiple GST registrations in one state?
Answer:
Yes, if he has multiple business verticals in a state, he can take separate GST registrations for each as per Rule 11.
45. What is the time of supply in case of reverse charge?
Answer:
Time of supply for RCM is earlier of:
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Payment date
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60 days from supplier’s invoice date (services)
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30 days (goods)
46. What is the composition tax rate for manufacturers?
Answer:
Manufacturers under composition scheme pay 1% GST (0.5% CGST + 0.5% SGST) of turnover.
47. Is GST applicable on security deposits?
Answer:
If the deposit is adjusted as consideration, it becomes taxable. But if it remains a pure security deposit, it’s not considered a supply and hence not taxable.
48. Can a person voluntarily register under GST even if turnover is below the threshold?
Answer:
Yes. Voluntary registration is allowed, and once registered, all GST compliances apply including return filing and tax payment.
49. What happens if a registered person fails to file GST returns?
Answer:
Late filing attracts late fees and interest. Non-filing can also lead to cancellation of registration, and subsequent recovery actions by department.
50. What is the penalty for not generating an e-way bill?
Answer:
A penalty of ₹10,000 or the tax evaded, whichever is higher, applies. The vehicle can also be detained or seized until penalty is paid.
ICSI Dec 2025: Notes for CS Executive and CS Professional: Handwritten Notes - Click Here
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