The higher GST rate would apply on SUVs and luxury cars, whereas the standard rate would apply on smaller cars.

Considering wide powers given to revenue authorities, the GST regime could see a revival of the old Fiat principles in a slew of litigation.

The CGST bill specifically excludes subsidies received from the government from the ambit transaction value for valuation. This may provide relief to the industry which is facing litigation under the current regime.

Deduction for discounts is allowed provided it is agreed at the time of or prior to the supply. Post supply discounts are allowed as deduction when they are predetermined and linked to the individual supply invoices. Methodologies of linking discounts to specific invoices may be explored – from all perspectives (amendment in contracts, ERP systems, commercial terms, etc.)

The valuation rules provide for determination of value by comparison with like kind and quality goods.


Job worker premises would be required to be included as an “additional place of business” in the registration certificate of the principal manufacturer. One of the exceptions to this rule is when the job worker is himself registered. It may be noted that this provision may be attracted in cases of small job workers who only undertake the principal manufacturer’s activity.


CGST bill makes specific provisions for carry forward of credits lying in stock with first stage dealers, persons manufacturing exempted goods, person not liable to be registered under the earlier law, etc.

Under the CGST bill, one of the conditions of availment of goods is receipt of goods. However an exception (deemed receipt) is carved out which reads as under:

For the purposes of this clause, it shall be deemed that the registered person has received the goods where the goods are delivered by the supplier to the recipient or any other person on the direction of such registered person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to goods or otherwise


PLACE OF SUPPLY: The CGST Bill specifies that a return journey would be treated as a separate journey even if the ticket is issued at the same time. For ex: Flight ticket

Air Craft Maintenance:  Under the GST Regime, the place of supply would be the location of the supplier, i.e  India when services are rendered by an Indian service provider and hence GST may apply.

Zero rated exports of goods and services. However, the international travel per se is not zero-rated as the services are provided to the recipient in India.

Taxes, duties, fees and charges levied under any statue would be included in the value of service. Hence, GST would be charged on all such duties and levies, irrespective of the fact that such levies may be by an overseas Government or airport.