02 Charging Section GST Part 1

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Charging Section
LEVY & COLLECTION OF CGST & IGST [SECTION 9 OF THE CGST

ACT & SECTION 5 OF THE IGST ACT
9(1)
● Subject to the provisions of sub-section (2),

● there shall be levied a tax called the central goods and services tax on all intra-State supplies of goods or
services or both,
● except on the supply of alcoholic liquor for human consumption,
● on the value determined under section 15
● and at such rates,
○ not exceeding twenty per cent.,
○ as may be notified by the Government on
■ the recommendations of the Council and
● collected in such manner as may be prescribed and shall be paid by the taxable person.
Definition of Goods 2(52)

"goods" means every kind of movable property other than money and securities but includes actionable claim, growing
crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a
contract of supply
Definition of Service 2 (102)

"services" means anything other than goods, money and securities but includes activities relating to the use of money or
its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or
denomination for which a separate consideration is charged.
Definition of taxable person 2(107)

“taxable person" means a person who is registered or liable to be registered under section 22 or section 24
Definition of India - 2(56)

"India" means the territory of India as referred to in article 1 of the Constitution, its territorial waters, seabed and
subsoil underlying such waters, continental shelf, exclusive economic zone or any other maritime zone as referred to in
the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976 (80 of 1976),
and the air space above its territory and territorial waters;
9(2)
● The central tax on the supply of petroleum crude, high speed diesel, motor spirit (commonly known as petrol),
natural gas and aviation turbine fuel
● shall be levied with effect from such date as may be notified by the Government on the recommendations of the
Council.

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9(3)
The Government may, on the recommendations of the Council,
● by notification,
● specify categories of supply of goods or services or both,
● the tax on which shall be paid on reverse charge basis
○ by the recipient of such goods or services or both and
○ all the provisions of this Act shall apply to such recipient
○ as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.
9(4)
The Government may, on the recommendations of the Council, by notification, specify a class of registered persons who
shall, in respect of supply of specified categories of goods or services or both received from an unregistered
supplier, pay the tax on reverse charge basis as the recipient of such supply of goods or services or both, and all the
provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to such supply of
goods or services or both.
9(4) old
● The central tax in respect of the supply of taxable goods or services or both
○ by a supplier,
○ who is not registered,
■ to a registered person
● shall be paid by such person on reverse charge basis as the recipient and all the provisions of this Act shall apply
to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services
or both.
9(5)
The Government may, on the recommendations of the Council, by notification,

● specify categories of services
● the tax on intra- State supplies of which shall be paid
● by the electronic commerce operator
● if such services are supplied through it,
● and all the provisions of this Act shall apply to such electronic commerce operator as if he is the supplier liable
for paying the tax in relation to the supply of such services.
● Provided that where an electronic commerce operator does not have a physical presence in the taxable
territory, any person representing such electronic commerce operator for any purpose in the taxable territory
shall be liable to pay tax:


● Provided further that where an electronic commerce operator does not have a physical presence in the taxable
territory and also he does not have a representative in the said territory, such electronic commerce operator
shall appoint a person in the taxable territory for the purpose of paying tax and such person shall be liable to
pay tax.
Definition of “electronic commerce operator" 2(45)
ECO means any person who owns, operates or manages digital or electronic facility or platform for electronic
commerce;
Notification
In exercise of the powers conferred by sub-section (5) of section 9 of the Central Goods and Services Tax Act, 2017 the
Central Government, on the recommendations of the Council, hereby notifies that in case of the following categories of
services, the tax on intra-State supplies shall be paid by the electronic commerce operator—
● services by way of transportation of passengers by a radio-taxi, motor cab, maxi cab and motorcycle;
● services by way of providing accommodation in hotels, inns, guest houses, clubs, campsites or other commercial
places meant for residential or lodging purposes, except where the person supplying such service through
electronic commerce operator is liable for registration under sub-section (1) of section 22 of the said Central
Goods and Services Tax Act;
● services by way of housekeeping, such as plumbing, carpentering etc., except where the person supplying such
service through electronic commerce operator is liable for registration under sub-section (1) of section 22 of the
said Central Goods and Services Tax Act.
Unregistered
Reg u/s 22
Reg u/s 24


GST Rates prescribed for various goods.

Broadly, six rates of CGST have been notified for goods, viz., 0.125%, 1.5%, 2.5%, 6%, 9% and 14%. Some items have
been kept at Nil rate. SGST/ UTGST at the equivalent rate is also leviable. With regard to IGST, broadly six rates have
been notified for goods, viz., 0.25%, 3%, 5%, 12%, 18% and 28%
GST Rates prescribed for various services

Broadly, four rates of CGST have been notified for services, viz., 2.5%, 6%, 9% and 14%. Equivalent rate of SGST/ UTGST
will also be levied. For IGST, four rates have been notified for services, viz., 5%, 12%, 18% and 28%. For certain
specified goods and services, nil rate of tax has been notified.
Services not covered under any specific heading are taxed at the rate of 18% (CGST @ 9% and SGST @9%).


Reverse Charge
For understanding Reverse Charges we must know
● Section 9(1)
● Section 9(3)
● Definition of Reverse Charge
● Notification No. 13/2017
● Notification No. 12/ 2017
Definition of Reverse Charge

"reverse charge" means the liability to pay tax by the recipient of supply of goods or services or both instead of the
supplier of such goods or services or both under subsection (3)or subsection (4)of section 9, or under subsection (3)or
subsection (4)of section 5 of the Integrated Goods and Services Tax Act;
NOTIFICATION NO. 13/2017-CENTRAL TAX (RATE), DATED 28-6-2017

In exercise of the powers conferred by sub-section (3) of section 9 of the Central Goods and Services Tax Act, 2017 (12
of 2017), the Central Government on the recommendations of the Council hereby notifies that on categories of supply of
services he whole of central tax leviable under section 9 of the Central Goods and Services Tax Act, 2017 shall be paid
on reverse charge basis by the recipient of the such services.
Supply of Services by a goods transport agency
Service
Supply of Services by a goods transport agency (GTA) ,who has not paid central tax at the rate of 6%, in respect of
transportation of goods by road to
a. any factory registered under or governed by the Factories Act, 1948 (63 of 1948);or
b. any s ociety registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the
time being in force in any part of India;or
c. any cooperative society established by or under any law;or
d. any person registered under the Central Goods and Services Tax Act or the Integrated Goods and
Services Tax Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax
Act;or
e. any body corporate established, by or under any law;or
f. any partnership firm whether registered or not under any law including association of persons;or
g. any casual taxable person:
Supplier of Service
GTA
Recipient of Service


b. any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the
d. any person registered under the Central Goods and Services Tax Act or the Integrated Goods and Services Tax
Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act;or
e. any body corporate established, by or under any law;or
f. any partnership firm whether registered or not under any law including association of persons;or
g. any casual taxable person:
Provided that nothing contained in this entry shall apply to services provided by a goods transport agency, by way of
transport of goods in a goods carriage by road, to
a. Department or Establishment of the Central Government or State Government or Union territory;
b. local authority;or
c. Governmental agencies,
which has taken registration under the Central Goods and Services Tax Act, 2017 (12 of 2017) only for the purpose of
deducting tax under section 51 and not for making a taxable supply of goods or services.
Related Exemption - Entry No. 21B

Services provided by a goods transport agency, by way transport of goods in a goods carriage by road, to
d. Department or Establishment of the Central Government or State Government or Union territory;
e. local authority;or
f. Governmental agencies,
which has taken registration under the Central Goods and Services Tax Act, 2017 (12 of 2017) only for the purpose of
deducting tax under section 51 and not for making a taxable supply of goods or services.
Related Exemption Entry No. 21

Services provided by a goods transport agency, by way of transport in a goods carriage of
a. agricultural produce;
b. goods, where consideration charged for the transportation of goods on a consignment transported in a single
carriage does not exceed one thousand five hundred rupees;
c. goods, where consideration charged for transportation of all such goods for a single consignee does not exceed
rupees seven hundred and fifty;
d. milk, salt and food grain including flour, pulses and rice;
e. organic manure;
f. newspaper or magazines registered with the Registrar of Newspapers;
g. relief materials meant for victims of natural or manmade disasters, calamities, accidents or mishap;or
h. defence or military equipments.
Related Exemption Entry No. 21A

Services provided by a goods transport agency to an unregistered person, including an unregistered casual taxable
person, other than the following recipients, namely


b. any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the
d. any body corporate established, by or under any law;or
e. any partnership firm whether registered or not under any law including association of persons;or
f. any casual taxable person registered under the Central Goods and Services Tax Act or the Integrated Goods and
Services Tax Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act.
Who is Recipient ?
the person who pays or is liable to pay freight for the transportation of goods by road in goods carriage, located in the
taxable territory shall be treated as the person who receives the service for the purpose of this notification
What is Body Corporate?

"Body Corporate" has the same meaning as assigned to it in clause (11) of section 2 of the Companies Act, 2013
LLP = Partnership.
a "Limited Liability Partnership" formed and registered under the provisions of the Limited Liability Partnership Act,
2008 (6 of 2009) shall also be considered as a partnership firm or a firm




Service
Services provided by an
● individual advocate
● including a senior advocate or
● firm of advocates
○ by way of legal services,
○ directly or indirectly.
Explanation.—"Legal service" means any service provided in relation to advice, consultancy or assistance in any branch
of law, in any manner and includes representational services before any court, tribunal or authority.
Supplier
An individual advocate including a senior advocate or firm of advocates.
Recipient (Liable to Pay GST)

Any business entity located in the taxable territory.
NOTE : The business entity located in the taxable territory who is a litigant, applicant or petitioner, as the case may be,
shall be treated as the person who receives the legal services for the purpose of this notification;
Business Entity
"business entity" means any person carrying out business;
Related Exemptions
Entry No. 45

Services Provided by
a. an arbitral tribunal to
i. any person other than a business entity;
ii. a business entity with an aggregate turnover up to such amount in the preceding financial year as
makes it eligible for exemption from registration under the Central Goods and Services Tax Act,
2017;or
iii. the Central Government, State Government, Union territory, local authority, Governmental
Authority or Government Entity;
b. a partnership firm of advocates or an individual as an advocate other than a senior advocate, by way of legal
services to
i. an advocate or partnership firm of advocates providing legal services;
ii. any person other than a business entity;
iii. a business entity with an aggregate turnover up to such amount in the preceding financial year as makes
it eligible for exemption from registration under the Central Goods and Services Tax Act, 2017;or


iv.the Central Government, State Government, Union territory, local authority, Governmental Authority or
Government Entity;
c. a senior advocate by way of legal services to
i. any person other than a business entity;
ii. a business entity with an aggregate turnover up to such amount in the preceding financial year as makes
it eligible for exemption from registration under the Central Goods and Services Tax Act, 2017;or
iii. the Central Government, State Government, Union territory, local authority, Governmental Authority or
Government Entity.
An arbitral tribunal (or arbitration tribunal) is a panel of one or more adjudicators which is convened and sits to
resolve a dispute by way of arbitration.
The tribunal may consist of a sole arbitrator, or there may be two or more arbitrators, which might include either a
chairman or an umpire.
Members selected to serve on the tribunal are typically professionals with expertise in law and mediation.
Arbitration is a procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators
who make a binding decision on the dispute. In choosing arbitration, the parties opt for a private dispute resolution
procedure instead of going to court.
Definition of Taxable Territory 2(109)

"Taxable territory" means the territory to which the provisions of this Act apply;
Reverse Charge - Service 3

Service Services supplied by an arbitral tribunal to a business entity
Supplier An arbitral tribunal.
Recipient Any business entity located in the taxable territory.

Service Services provided by way of sponsorship to any body corporate or partnership firm.
Supplier Any person
Recipient Any body corporate or partnership firm located in the taxable territory.

Service Services supplied by the Central Government, State Government, Union territory or local
authority to a business entity excluding
1. Renting of immovable property, and
2. Services specified below—
i. Services by the Department of Posts by way of speed post, express parcel post,


life insurance, and agency services provided to a person other than Central
Government, State Government or Union territory or local authority;
ii. services in relation to an aircraft or a vessel, inside or outside the precincts of a
port or an airport;
iii. transport of goods or passengers
Supplier Central Government, State Government, Union territory or local authority.
Recipient Any business entity located in the taxable territory.
Reverse Charge - Service 5A

Service Services supplied by the Central Government, State Government, Union territory or local
Government, authority by way of renting of immovable property State to a person registered
under the Central Goods Government, and Services Tax Act,
Supplier Central Government, State Government, Union territory or local authority.
Recipient Any person registered under CGST Act, 2017
Related Exemption - Entry No. 6
Services by the Central Government, State Government, Union territory or local authority excluding the following
services—
a. services by the Department of Posts by way of speed post, express parcel post, life insurance, and agency
services provided to a person other than the Central Government, State Government, Union territory;
b. services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;
c. transport of goods or passengers; or
d. any service, other than services covered under entries (a) to (c) above, provided to business entities.
Reverse Charge - Service 5B

Service Services supplied by any person by way of transfer of development rights or Floor Space Index
(FSI) (including additional FSI) for construction of a project by a promoter.
Supplier Any person
Recipient Promoter
"Floor space index (FSI)" shall mean the ratio of a building's total floor area (gross floor area) to the size of the piece of
land upon which it is built.]
Reverse Charge - Service 5C


Service Long term lease of land (30 years or more) by any person against consideration in the form of
upfront amount (called as premium, salami, cost, price, development charges or by any other
name) and/or periodic rent for construction of a project by a promoter.
Supplier Any person
Recipient Promoter

Service Services supplied by a director of a company or a body corporate to the said company or the
body corporate.
Supplier A director of a company or a body corporate
Recipient The company or a body corporate located in the taxable territory.

Service Services supplied by an insurance agent to any person carrying on insurance business.
Supplier An insurance agent
Recipient Any person carrying on insurance business, located in the taxable territory.

Service Services supplied by a recovery agent to a banking company or a financial institution or a
non-banking financial company.
Supplier A recovery agent
Recipient A banking company or a financial institution or a non-banking financial company, located in the
taxable territory.


Service Supply of services by an author, music composer, photographer, artist or the like by way of
transfer or permitting the use or enjoyment of a copyright covered under clause (a) of
subsection (1) of section 13 of the Copyright Act, 1957 relating to original literary, dramatic,
musical or artistic works to a publisher, music company, producer or the like.
Supplier Author or music, composer, photographer, artist, or the like
Recipient Publisher, music company, producer or the like, located in the taxable territory.
Reverse Charge - Service 9A

Service Supply of services by an author by way of transfer or permitting the use or enjoyment of a
copyright covered under clause (a) of sub-section (1) of section 13 of the Copyright Act, 1957
relating to original l iterary works to a publisher.
Supplier Author
Recipient Publisher located in the taxable territory:
Provided that nothing contained in this entry shall a

pply where,—
● the author has taken registration under the Central Goods and Services Tax Act, 2017
(12 of 2017),
● and filed a d eclaration, in the form at Annexure I,
○ within the time limit prescribed therein,
○ with the jurisdictional CGST or SGST Commissioner, as the case may be,
ay central tax on the service specified in column (2),
● that he exercises the option to p
under f orward c
harge in accordance with section 9(1) of the Central Goods and
Services Tax Act, 2017
● and to comply with all the provisions of Central Goods and Services Tax Act, 2017 (12 of


2017) as they apply to a person liable for paying the tax in relation to the supply of any
goods or services or both and
● that he shall not withdraw the said option within a period of 1 year from the date of
exercising such option;
● the author makes a declaration, as prescribed in Annexure II on the invoice issued by
him in Form GST Inv-I to the publisher.
Connection with ITC - Section 17(2) Taxable + Exempt Supply. ITC attributable for taxable supply will be allowed.
Section 17(3) Supply under reverse charge is exempt supply for the purpose of Section 17 and hence GST Credit will be
apportioned. (Discussion in classes and videos)


Service Supply of services by the members of Overseeing Committee to Reserve Bank of India
Supplier Members of Overseeing Committee constituted by the Reserve Bank of India
Recipient Reserve Bank of India.

Service Services supplied by Individual Direct Selling Agents other than a body corporate, partnership or
limited liability partnership firm to bank or non-banking financial company
Supplier Individual direct selling agents other than a body corporate, partnership or limited liability
partnership firm
Recipient bank or non-banking financial company located in taxable territory

Service Services provided by business facilitator (BF) to a banking company
Supplier Business Facilitator
Recipient Banking company located in TT

Service Services provided by an agent of business correspondent to business correspondent
Supplier An agent of business correspondent
Recipient A business correspondent located in TT
Related Exemption
Entry No. 39 NN. 12/2017
Services by the following persons in respective capacities -

a. business facilitator or a business correspondent to a banking company with respect to accounts in its rural area
branch;
b. any person as an intermediary to a business facilitator or a business correspondent with respect to services
mentioned in entry (a); or
c. business facilitator or a business correspondent to an insurance company in a rural area.


Service Security services (services provided by way of supply of security personnel) provided to a
registered person
Provided that nothing contained in this entry shall apply to,—

1.
● A Department or Establishment of the Central Government or State Government or
Union territory;
● Local authority
● Governmental Agencies
which has taken registration under the Central Goods and Services Tax Act, 2017 (12 of
2017) only for the purpose of deducting tax under section 51 of the said Act and not for
making a taxable supply of goods or services;or
2. a registered person paying tax under section 10 of the said Act.
Supplier Any person other than a body corporate
Recipient A registered person, located in the taxable territory.

Service Services provided by way of renting any motor vehicle designed to carry passengers where the
cost of fuel is included in the consideration charged from the service recipient, provided to a
body corporate.
Supplier Any person, other than a body corporate who supplies the service to a body corporate and does
not issue an invoice charging central tax at the rate of 6 per cent. to the service recipient
Recipient Any body corporate located in the taxable territory.


Service Services of lending of securities under Securities Lending Scheme, 1997 of Securities and
Exchange Board of India.
Supplier Lender i.e., a person who deposits the securities registered in his name or in the name of any
other person duly authorised on his behalf with an approved intermediary for the purpose of
lending under the Scheme of SEBI
Recipient Borrower i.e., a person who borrows the securities under the Scheme through an approved
intermediary of SEBI


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LEVY & COLLECTION OF CGST & IGST [SECTION 9 OF THE CGST

● Subject to the provisions of sub-section (2),

Definition of Goods 2(52)

Definition of Service 2 (102)

Definition of taxable person 2(107)

Definition of India - 2(56)

The Government may, on the recommendations of the Council, by notification,

Definition of “electronic commerce operator" 2(45)

GST Rates prescribed for various goods.

GST Rates prescribed for various services

Definition of Reverse Charge

NOTIFICATION NO. 13/2017-CENTRAL TAX (RATE), DATED 28-6-2017

Supply of Services by a goods transport agency

Related Exemption - Entry No. 21B

Related Exemption Entry No. 21

Related Exemption Entry No. 21A

What is Body Corporate?

Recipient (Liable to Pay GST)

Entry No. 45

Definition of Taxable Territory 2(109)

Reverse Charge - Service 3

Supplier An arbitral tribunal.

Recipient Any business entity located in the taxable territory.

Reverse Charge - Service 4

Supplier Any person

Reverse Charge - Service 5

Supplier Central Government, State Government, Union territory or local authority.

Recipient Any business entity located in the taxable territory.

Reverse Charge - Service 5A

Supplier Central Government, State Government, Union territory or local authority.

Recipient Any person registered under CGST Act, 2017

Related Exemption - Entry No. 6

Reverse Charge - Service 5B

Supplier Any person

Reverse Charge - Service 5C

Supplier Any person

Reverse Charge - Service 6

Supplier A director of a company or a body corporate

Recipient The company or a body corporate located in the taxable territory.

Reverse Charge - Service 7

Supplier An insurance agent

Reverse Charge - Service 8

Supplier A recovery agent

Supplier Author​ or music, composer, photographer, artist, or the like

Reverse Charge - Service 9A

Recipient Publisher​ located in the ​taxable​ ​territory​:

Provided that ​nothing​ contained in this entry shall a

Supplier Members of Over​seeing Committee constituted by the Reserve Bank of India

Recipient Reserve Bank of India.

Reverse Charge - Service 11

Recipient bank or non-banking financial company located in taxable territory

Reverse Charge - Service 12

Supplier Business Facilitator

Recipient Banking company located in TT

Reverse Charge - Service 13

Supplier An agent of business correspondent

Recipient A business correspondent located in TT

Services by the following persons in respective capacities -

Provided that nothing contained in this entry shall apply to,—

Supplier Any person other than a body corporate

Recipient A registered person, located in the taxable territory.

Reverse Charge - Service 15

Supplier Author or music, composer, photographer, artist, or the like

Recipient Publisher located in the taxable territory:

Provided that nothing contained in this entry shall a

Supplier Members of Overseeing Committee constituted by the Reserve Bank of India