CS Professional · Paper 7.2
CS Professional GST and Corporate Tax Planning Paper Guide
Paper 7.2 (Elective 2) is a 100-mark, open-book, written paper: GST carries 70 marks and Corporate Tax Planning 30. You answer case-based questions in the order of provision, analysis of facts, conclusion. Prepare by mastering the GST flow from supply to tax liability, then compliance, then tax planning.
Paper 7.2 is an elective in Group 2 of the CS Professional Programme. It has two parts: Goods and Services Tax (70 marks) and Corporate Tax Planning (30 marks). It is a descriptive paper of 3 hours, with 15 minutes extra for reading the question paper. There are no MCQs and no negative marking. The paper is open book, so the examiner tests whether you can apply the law to facts, not whether you can recall it.
The GST part tests the chain of liability: whether a transaction is a supply, when tax becomes payable (time of supply), on what amount (value of supply), how much can be offset (input tax credit), and what you must file and when. It then moves to the enforcement side: assessment, audit, demand and recovery, advance ruling, appeals, inspection, search, seizure, offences and penalties. Questions give a short fact pattern and ask for the tax treatment or the correct procedure.
The Corporate Tax Planning part tests how business choices affect tax: the nature of the business, its location, managerial decisions and restructuring. From the June 2027 session, this paper examines the Income-tax Act, 2025 as amended by the Finance Act, 2026. Students usually score well when they write structured answers that state the rule, apply it to the numbers or facts, and conclude clearly. Marks are lost by quoting the rule without applying it, or by hunting through the open book during the exam because the material was never practised.
Goods and Services Tax (GST) and Corporate Tax Planning: chapters and topics
Part I: Goods and Services Tax
Overview of Goods and Services Tax
Part I: Goods and Services Tax
Supply under GST
- Meaning and Scope of Supply under Section 7
- Schedule I, II and III: Deemed Supply, Goods or Services, Neither
- Composite and Mixed Supply
- Levy and Collection of Tax under Section 9
- Composition Levy
- Time of Supply of Goods under Section 12
- Time of Supply of Services and Change in Rate of Tax
- Value of Taxable Supply under Section 15
Part I: Goods and Services Tax
Time of Supply
Part I: Goods and Services Tax
Value of Supply
Part I: Goods and Services Tax
Input Tax Credit and Computation of GST Liability
- Eligibility and Conditions for Taking Input Tax Credit
- Availment of Input Tax Credit under Section 41
- Communication of Details of Inward Supplies and ITC
- Blocked Credits and Apportionment of Credit
- Utilisation of ITC and Order of Set-off under Section 49A
- Special Cases: Transitions, Transfers and Distribution of Credit
- Computation of GST Liability and Payment of Tax
Part I: Goods and Services Tax
Procedural Compliance under GST
Part I: Goods and Services Tax
Assessment, Audit, Scrutiny, Demand and Recovery, Advance Ruling, Appeals and Revision
Part I: Goods and Services Tax
Inspection, Search, Seizure, Offences and Penalties
Part I: Goods and Services Tax
Compliance Rating, Anti-Profiteering, GST Practitioners and Authorised Representative
Part II: Corporate Tax Planning
Corporate Tax Planning
- Concept of Tax Planning, Avoidance and Evasion
- Residential Status and Tax Incidence of Companies
- Tax Planning for Setting Up a New Business
- Tax Planning for Financial Management Decisions
- Tax Planning for Specific Managerial Decisions
- Deductions for Donations to Funds and Charitable Institutions
- Tax Planning for Amalgamation, Demerger and Business Reorganisation
- Minimum Alternate Tax and Corporate Tax Rate Options
Part II: Corporate Tax Planning
Tax Planning and Nature of Business
Part II: Corporate Tax Planning
Tax Planning and Location of Business
Part II: Corporate Tax Planning
Tax Planning and Managerial Decisions
Part II: Corporate Tax Planning
Tax Planning and Business Restructuring
How to prepare Goods and Services Tax (GST) and Corporate Tax Planning
The paper rewards a clear mental map of GST and practice at applying it. Open book helps only if you can find and use the text quickly. Plan your preparation around that.
- Start with the Overview chapter and draw one page showing the GST flow: supply, time of supply, value, input tax credit, payment, return. Every later chapter hangs on this flow.
- Study Supply, Time of Supply and Value of Supply together. For each, write the rule in two lines, note its conditions and exceptions, and solve at least five fact-based problems with rupee figures.
- Spend extra time on Input Tax Credit and Computation of GST Liability. Practise full computations: output tax, eligible credit, blocked credit, set-off order and net cash payable. Recheck every figure.
- Learn procedural compliance as a calendar: registration, invoices, returns, payment, records. Make a one-page table of what is due, who files it and the consequence of delay.
- Treat the enforcement chapters as a sequence of steps and time limits: assessment, audit, scrutiny, demand, recovery, advance ruling, appeals, then inspection, search, seizure, offences and penalties. Write each as a short procedure so you can answer in the provision, analysis, conclusion format.
- Cover Compliance Rating, Anti-Profiteering, GST Practitioners and Authorised Representative as short, scoring topics. Revise them last in the GST part, since they are brief.
- Prepare Corporate Tax Planning from the Income-tax Act, 2025 as amended by the Finance Act, 2026. Do not use older notes based on the 1961 Act. For each of the four planning chapters, list the decision, the tax effect and a numerical comparison of two options.
- In the last weeks, attempt full 3-hour papers with your books open. Tag and index your bare Act and study material by chapter and section so you can reach any rule in under a minute, then review your answers for structure.
Time management in the exam
- Use the 15 minutes of reading time to choose questions and mark the ones where you know the exact provision. Start with your strongest.
- Split time roughly in line with the marks: GST is 70 marks, so it should take about two-thirds of your writing time. Corporate Tax Planning should not eat into it.
- Give each question a time budget based on its marks and stick to it. Move on when time is up and return if minutes remain.
- In computation questions, write the working in clean steps. Partial marks come from method, so do not spend time rechecking one figure at the cost of a whole question.
- Use the open book for confirming a provision, not for reading it for the first time. If you cannot find a reference in about a minute, state the rule in your own words and continue.
- Keep the last 10 minutes for reading answers, fixing figures and making sure each case answer ends with a clear conclusion.
Mistakes that cost marks in Goods and Services Tax (GST) and Corporate Tax Planning
Treating the open book as a substitute for preparation
Fix: Prepare as if it were closed book. Use the book only to confirm exact wording or limits, and index it by chapter in advance.
Stating the rule but not applying it to the facts
Fix: Use three parts every time: the provision, analysis using the facts given, and a conclusion that answers the question asked.
Errors in GST computations
Fix: Fix the value first, then compute output tax, then eligible credit, then set-off. Practise full problems and show each step.
Ignoring time limits and procedure in enforcement topics
Fix: Learn each as a step-by-step procedure with the authority, the time limit and the next remedy. Confirm limits against the text before writing them.
Preparing Corporate Tax Planning from outdated income tax notes
Fix: Use only material based on the Income-tax Act, 2025 as amended by the Finance Act, 2026 for the June 2027 session, and check section references in your own copy.
Neglecting the 30-mark tax planning part
Fix: Allot fixed study time to it. Practise comparing two options with numbers and recommending one, as the questions are decision-based.
Goods and Services Tax (GST) and Corporate Tax Planning: frequently asked questions
How many marks does the GST part carry in Paper 7.2?
Goods and Services Tax carries 70 marks and Corporate Tax Planning carries 30 marks, out of 100. Plan your study and exam time in that proportion.
Is the GST and Corporate Tax Planning paper open book?
Yes. Elective papers are open book. You still need to know where each rule is and how to apply it, because the questions are case-based and time is limited.
Which law applies to Corporate Tax Planning from June 2027?
From the June 2027 session, the paper examines the Income-tax Act, 2025 as amended by the Finance Act, 2026. The December 2026 session uses the Income-tax Act, 1961 as amended by the Finance Act, 2025.
What is the pass requirement for this paper?
You need at least 40% in each paper and 50% in the aggregate of the group at one sitting. If you fail the group but score 60% or more in a paper, and at least 25% in each other paper of the group, you can claim exemption in that paper later, subject to applying before the enrolment deadline.
How should I practise for the GST part?
Solve fact-based problems from every chapter, especially value of supply and input tax credit computations. Write each answer as provision, analysis and conclusion, and time yourself in full 3-hour practice papers.