IDT is a practical paper in the CA Final, and for most of the CA students, practical subjects are easier to score than theory ones. So why not make full use of this plus point and score as much as you can in IDT?
Many students get to do a lot of practical work in Indirect Taxes during their article-ship phase. This practical knowledge is what helps in building the initial interest in the subject.
In this blog, we are going to dive deep to help you clear out all the obstacles that may come your way for scoring an exemption in IDT. Just read on!
Phase 1: Self-study VS Classes? (2 – 3 months)
It’s a no-brainer question!
Although, very few people might have this query in mind for whether to take IDT classes or go for self-study, for those still questioning the classes, let me clarify that IDT is a very conceptual and lengthy paper. The kind that should not be taken lightly.
IDT is split into two categories: GST (75%) and Customs (25%)
The GST Act is itself so vast that you would not know where to start! To be honest, even if you do try, you would not be able to understand the bare act in the first reading without proper guidance.
Classes not only provide conceptual clarity but also help you with the following:
- Discipline to finish the course promptly.
- Sequence on how to go about chapters.
- Highlight Areas which require more focus as compared to others.
- Relevant questions that can be solved after each concept.
- Helps you understand how to retain keywords and present the language of law.
Pitfall alert! Preparing for IDT on your own could be a very big risk that you might regret taking later on!
Don’t lose sight of these facts while taking the classes:
- IDT classes are quite lengthy and it would take around 2-3 months (up to 200 – 250hrs) to get completed. Further, IDT has a lot of amendments each year, therefore it is suggested to take IDT classes at a time when you can cover the amendment in the class itself.
- Another golden tip is to complete your homework with all the solved questions. IDT has a lot of questions and it is generally seen that students skip doing these questions after the class and regret it later, and then it is too late!!
Phase 2: Self Study after classes (30-40days)
The best strategy to follow in IDT is to start your self–study along with the classes themselves. IDT is one of the last subjects for which students take coaching for, therefore, it is advisable to revise IDT every day after coming back from the class.
What self-study requires? A lot of patience and discipline.
What self-study gives you in return? Sets the tone for future revisions and makes your subject ‘smooth like butter’!
Fresh and hot preparation techniques from the Ranker’s way!
- Practice: Solve all the questions in the question bank either along with the classes or in the first read.
- Where to start from? – Follow the sequence as suggested by your teacher or the sequence followed in the class. You can pick customs and foreign trade policy (“FTP”) first, as it is easier as well as scoring. After you are done with these, you can pick GST.
- Note: – Module 3 of ICAI has a lot of miscellaneous topics such as Job work, offenses and Penalties, appeals, etc. It is advisable to have summary notes for these topics for last-day revision (We highly recommend Wall charts by Vishal Bhattad sir). Students tend to skip these up until the last minute and end up losing easy 15-20 marks!
OUR SUGGESTION:
| Chapter No. | Chapter Name | Category | Sequence |
| 1. | GST in India – An Introduction | B | |
| 2. | Supply under GST | A | |
| 3. | Charge of GST | A | |
| 4. | Exemptions from GST | A | |
| 5. | Place of Supply | A | |
| 6. | Time of Supply | A | |
| 7. | Value of Supply | A | |
| 8. | Input Tax Credit | A | |
| 9. | Registration | B | |
| 10. | Tax Invoice, Credit and Debit Notes | C | |
| 11. | Accounts and Records; E-way Bill | C | |
| 12. | Payment of Tax | B | |
| 13. | Returns | A | |
| 14. | Import And Export Under GST | B | |
| 15. | Refunds | A | |
| 16. | Job Work | B | |
| 17. | Assessment And Audit | B | |
| 18. | Inspection, Search, Seizure And Arrest | C | |
| 19. | Demands And Recovery | C | |
| 20. | Liability to Pay in Certain Cases | C | |
| 21. | Offences And Penalties | B | |
| 22. | Appeals And Revisions | B | |
| 23. | Advance Ruling | C | |
| 24. | Miscellaneous Provisions | C | |
| Customs and FTP | |||
| 1. | Levy of and Exemptions from Customs Duty | A | |
| 2. | Types of Duty | B | |
| 3. | Classification of Imported and Export Goods | C | |
| 4. | Valuation under the Customs Act, 1962 | A | |
| 5. | Importation, Exportation, and Transportation of Goods | A | |
| 6. | Warehousing | B | |
| 7. | Duty Drawback | B | |
| 8. | Refund | B | |
| 9. | Foreign Trade Policy | B |
- Although there are theory questions (especially in appeal and assessment procedures) there is no need to write and practice them, just going through them should be enough.
How to Study? A million-dollar question!
- You will find a lot of techniques for this problem but the best way to study IDT is to go through the section/chapter first and then practice a question. This way the concept gets engraved in your mind!
- Prepare a format for long 12–16-mark questions.
For e.g.: Format for calculation of Input tax credit and refund, Valuation and calculation of custom duty etc. Refer the Institute’s format and stick to it while solving questions. The reason being, when you will practice this again and again, you will get more and more comfortable with the solution’s layout that the ICAI expects, and then there will be no chance for the examiner to cut out any marks in presentation area.
PRO TIPS TO YOUR RESCUE!
- Try to write 1 answer each day (at least on those days when you are preparing IDT). Focus on presentation of the answer because we fail to present answers in our paper.
- After writing, evaluate your own paper and note down the mistake that you did, or the areas of improvement in a separate piece of paper.
- The most difficult aspect is to finish the huge syllabus on time. Keep a check on your time and ensure that daily targets are achieved.
Phase 3: 1st Revision (10-12 days)
After all the hurdles of taking classes, warming up with self-study and whatnot, the time has finally come for our very first revision!
Obviously, first revision is no child’s play, and what you study here will go a long way!
Here are a few points to be kept in mind while starting the First Revision:
- The exemption is scored with just 3 things. Those are Revision, Revision, Revision!
Revise the concepts quickly, by going through the summary book wherein all the sections are summarized along with examples.
Your focus now should be to solve as many questions as possible at this stage.
Moreover, make sure that you put your remarks next to difficult question as to what is the learning from the question (i.e., crux of the question for LDR)
- Identify your weak points!
Take note of the adjustments that seem to be a bit tricky and mark them separately so that you can work on these areas in your second revision.
- Track your time!
Keep a note of the time you have spent on each chapter which will help you plan your 2nd and subsequent revisions.
- MCQs! They can make or break your paper!
Do not take MCQs lightly. MCQs in IDT require a lot of practice. If you are conceptually strong only then you will be able to even attempt the questions! If you don’t trust me, ask the recent attempt students! Your first revision is the best time to start the MCQ practice as you will be thorough with the syllabus.
- Don’t mock the mock test!
Attempt a mock test paper after completing the 1st Revision. Before you appear for the mock test, watch this video so that you don’t have wrong expectations from the mock test – https://youtu.be/eG3D1s_Hbss
Phase 4: 2nd Revision (7 days)
Now that you have come this far, it won’t look good to just leave things here, right? Buckle up folks, it’s time for the 2nd revision, the upgraded brother of 1st revision.
Upgraded how? We’ll tell you don’t worry!
Firstly, the thing to be kept in mind while starting the Second Revision is-
Confidence is the name of this game!
- Be confident about the subject.
- After the first mock test, if you feel there is a lack of understanding in any concept then you must focus on those concepts while you are on your 2nd revision.
Won’t let you leave without our beloved pro tips and tricks!
- All subsequent revisions after the first revision should be focused on bringing down your revision time, increasing your writing speed and improving your answer presentation.
- Get into a group of 3-4 students to help each other with doubts and also to motivate each other to adhere to the revision timeline (if possible).
- Refer your summary book, any markings that you might have done in the Module along with the marked questions of the Question bank.
- A pro-tip here would be to write down, in short, all those “very important points” that you already marked or those that seem tricky to you on a separate sheet of paper so that you can refer all such points in one glance just a day before exam and avoid the frenzy.
- Attempt the latest mock test for the upcoming attempt under timed conditions, this will act like exam day simulation and therefore, in turn you will comparatively feel more at ease during the actual exam.
Phase 5: Last Day Revision – 1.5 days
Ultimately, it all boil downs to these days!
You must have heard – “Anything that you are not able to revise on the day before exam, you will not be able to write it in the exam”. Nahin suna kya? Oops! It’s high time for you to start watching my YT Videos. Search for Shubham Singhal.
Coming back – People who revise the entire syllabus in 1.5 days are able to score better than the ones who do selective studying.
Pro tips coming to your rescue yet again!
- An hour-by-hour study schedule should be prepared at least a month before the start of the exams (Can also be done after the 2nd revision).
- All resources for the revision must be ready – Summary notes and LDR Questions
- It is very important to practice LDR Questions for each important chapter (Input tax credit, Refund, Valuation etc by hand. Do not just go through the questions superficially!
- In the excitement of the papers coming to an end, don’t take IDT last day revision casually. You can plan and day dream everything you want to do once you come back home after battling out with your last exam. So just control yourself for 1.5 days more!
Resources:
- Teacher’s study material/complier/ summary notes – Most important
- Latest amended Question bank
- Past 1 attempt RTP/MTP
Key takeaways:
- Practice makes a man perfect. The more you practice and the more confident you will feel. Practice all LDR questions by hand in each revision no matter how much time it takes.
- NOTES are very important. ICAI has 4 very bulky modules for IDT. Make sure to have a summary book in place so that you don’t feel lost!
- Give mock tests and get them evaluated from an experienced source, if possible.
- Say optimistic affirmations every day before and after studying and practice gratitude. It helps us to stay focused and shoos away the “Exam Anxiety”
- Keep yourself hydrated and eat light meals till the paper
- Do regular stretching/ warm-up to avoid fatigue during those three hours
Don’t fall for the below mentioned traps:
- Do not TALLY questions.
- The presentation of practical questions is very important.
- Working notes are also an important part in IDT so show all the working notes properly at the end of the solution. Give detailed notes and explanations for all adjustments! ICAI does give step marks!
- Do not rely entirely on revision videos. You have to write the paper yourself, therefore make sure to revise yourself!!!
Thank you, Sumedha Bhat and Aishwarya Garg for helping me present this blog in such a formal way.