Section 9 of CGST Act/SGST Act and Section 5 of IGST Act are the Charging Sections for the

purposes of levy of GST. CGST and SGST shall be levied on all intra-state supplies of goods and/or
services and IGST shall be levied on all inter-state supplies of goods and/or services respectively.

Let us discuss the statutory provisions of Section 9 of the CGST Act.

Section 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.

Section 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.

Section 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.

Exhibit

Reverse Charge Mechanism

The supplier of goods or services is liable to pay GST in general situations. However, under the
reverse charge mechanism, the liability to pay GST is cast on the recipient of the goods or services.
Reverse charge is basically the liability to pay tax is on the recipient of supply of goods or services
instead of the supplier of such goods or services in respect of notified categories of supply [Section
2(98)].

Under normal circumstances, the statutory liability to deposit GST and undertake compliances [i.e. to
obtain registration under GST, deposit the tax with the Government, filing returns, etc.] is on the
supplier while he may recover the same from its recipient. However, under the reverse charge
mechanism, the statutory liability to deposit GST and undertaking compliance requirements, [i.e. to
obtain registration under GST, deposit the tax with the government, filing returns, etc.] shifts from
supplier to recipient.

There are two types of reverse charge scenarios provided in law, which are:

 In case of supply of specified categories of goods or services, covered by section 9(3) of the
CGST/ SGST (UTGST) Act. Similar provisions are contained under section 5(3) of the IGST
Act.
 In case of supply of specified categories of goods or services made by an unregistered
supplier to specified class of registered recipients, covered by section 9(4) of the CGST Act.
Similar provisions are contained under section 5(4) of the IGST Act.
Section 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.

Section 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.

The tax shall be collected in such manner as may be prescribed and shall be paid by the taxable
person. Any person who carries out a business at any place throughout India, who is already
registered or needs to get registered under the GST Act can be called a taxable person. Additionally, a
person who is engaged in any kind of economic activity, involving in trade and commerce will also be
considered a taxable person.

GST Rates Prescribed for Various Goods

Six rates of CGST have been notified broadly in six Schedules of rate notification for goods, which
are 0.125%, 1.5%, 2.5%, 6%, 9% and 14%. SGST/ UTGST at the equivalent rate is also leviable.
With regard to IGST, broadly six rates have been notified in six Schedules of rate notification for
goods, which are 0.25%, 3%, 5%, 12%, 18% and 28%.

GST Rates Prescribed for Various Services

Broadly, six rates of CGST have been notified for services, viz., 0.75%, 2.5%, 3.75%, 6%, 9 % and
14%. Equivalent rate of SGST/ UTGST will also be levied. For IGST, six rates have been notified for
services, viz., 1.5%, 5%, 7.5%, 12%, 18% and 28%.

Exhibit

GST Slabs in India

GST Slab of 5%
Under this slab, the goods of basic amenities are covered such as sugar, oil, coffee, coal, fertiliser, tea,
cashew nuts, lifeboat, and so on.

The services under this slab include railways, airways, takeaway food, AC/non-AC restaurants, hotel
rooms with a tarrif less than ` 7,500 and special flights for pilgrims.

GST Slab of 12%

Under this slab, products like cell phones, sewing machines, umbrella, jewellery box, along with
processed foods like frozen meat, fruit juices, butter, cheese, ghee are covered.

The services under this slab include business class flight tickets and movie tickets below ` 100.

GST Slab of 18%

Under this slab, products like hair oil, safety glass, pasta, pastries, ice-cream, mineral water, hair
shampoo, oil powder, water heaters, washing machine, detergent, scent sprays, leather coating,
cookers, video games, etc. are covered.

GST Slab of 28%

Under this slab, over 200 products are covered like cars, cigarettes, durable consumer products, high-
end motorcycles, pan masala, weighing machine, cement are covered.