LEVY AND COLLECTION

OF GST
Dr. Meenu Chopra
Associate Professor
Department of Laws
Guru Nanak Dev University
 The Constitution mandates that no tax shall be levied or collected by a taxing Statute
 except by authority of law. While no one can be taxed by implication, a person can be
 subject to tax in terms of the charging section only.
 Power to levy any tax is derived from the Constitution of India. As per article 265 of
The Constitution of India no tax shall be imposed or collected except by the authority
of any
 Law. The charging section is the must in any Taxing Law for levy ( impose) and
collection(payment) of taxes.
 The very basic for the charge of tax in any taxing statute is taxable event, i.e. the point
of time when tax will be imposed.
Components of GST:

 (i) Central tax (CGST) (Levied & collected under the authority of CGST Act, 2017
passed by the Parliament) 2/12
 (ii) State tax (SGST) (Levied & collected under the authority of SGST Act, 2017
passed by respective State)
 Centre will levy and administer CGST and IGST while respective States/ UTs will levy
and administer SGST/UTGST.
 Import will be treated as inter-States supply and IGST will be chargeable along with
basic Customs duty.
 However, in GST Export will be treated as Zero rated supplies and no IGST is payable
 GST will be calculated on value of supply of goods and services, which is transaction
value. (subject to some exceptions)
 Under GST, every suppliers who have made taxable supply shall required to get himself
registered under GST Law.
 A registered person is entitled to take credit (deduction) of input tax paid from the
output tax (if any) subject to some restriction.
 Under GST regime there is a seamless (without any obstruction) credit flow in case of
inter-state supplies, which was not possible in pre GST period. No credit was available
for CST paid by the buyer.
 Levy and collection as per CGST Act, 2017
 Levy and collection as per IGST Act, 2017
 Levy and Collection of GST Under UTGST Act.
 U/s 9(1) of CGST Act, 2017

There shall be levied a tax –

 Called the Central Goods and Services Tax(CGST);
 On all the intra-state supplies of goods or services or both, except on supply of
 alcoholic liquor for human consumption;
 On the value determined u/s 15; and
 At such a rate (maximum 20%,) as notified by the Central Government on
 recommendation of GST Council; and
 Collected in such a manner as may be prescribed; and
 Shall be paid by the taxable person.
 U/s 9(2) of CGST Act 2017
The CGST of following supply shall be levied with the effect from such date as
notified by the Central Government on recommendation of GSTCouncil-

 Petroleum crude
 High speed diesel
 Motor spirit (commonly known as petrol)
 Natural gas
 Aviation turbine fuel
U/S 9(3)

 CGST is to be paid on reverse charge basis by the recipient on notified

 goods/ services or both (liability to pay tax by the recipient of supply of goods /
services rather than supplier of goods/ services under forward charge)
 U/s 9(4), CGST on taxable supply of goods/ services to registered supplier from
unregistered supplier is to be paid on reverse charge basis by the recipient.
 (e) U/s 9(5), E-Commerce operator is liable to pay CGST on notified intra-state
supplies.
 As per section 2(45) of the CGST Act, 2017, “electronic commerce operator” means
any person who owns, operates or manages digital or electronic facility or platform for
electronic commerce.

 Further, “electronic commerce” means the supply of goods or services or both,

including digital products over digital or electronic network
 Eg Flipkart, Make mytrip etc
 Electronic Commerce Operators (ECO), like flipkart, uber, makemy-trip, display products as well
as services which are actually supplied by some other person to the consumer, on their electronic
portal. The consumers buy such goods/services through these portals. On placing the order for a
particular product/service, the actual supplier supplies the selected product/service to the
consumer. The price/consideration for the product/service is collected by the ECO from the
consumer and passed on to the actual supplier after the deduction of commission by the ECO.

 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 (ECO), if such services are supplied through it.

 Further, all the provisions of this Act shall apply to such electronic commerce operator (ECO) as if
he is the supplier liable for paying the tax in relation to the supply of such services.

 However, where an electronic commerce operator (ECO) does not have a physical presence in the
taxable territory, any person representing such electronic commerce operator (ECO) for any
purpose in the taxable territory shall be liable to pay tax.

 Where an electronic commerce operator (ECO) 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.
Levy and collection as per IGST Act, 2017

U/s 5(1) of IGST Act, 2017 there shall be levied a tax –Called the Integrated Goods and
Services Tax (IGST);
 On all the inter-state supplies of goods or services or both, except on supply of
alcoholic liquor for human consumption;
 On the value determined u/s 15 of CGST Act, 2017; and
 At such a rate (maximum 40%,) as notified by the Central Government on
recommendation of GST Council; and
 Collected in such a manner as may be prescribed; and
 Shall be paid by the taxable person.
Provided further that IGST will be imposed on goods/ services imported into India
U/s 5(2) of IGST Act, 2017, the CGST of following supply shall be levied with the effect
from such date as notified by the Central Government on recommendation of GST
Council-
 Petroleum crude
 High speed diesel
 Motor spirit (commonly known as petrol)
 Natural gas
 Aviation turbine fuel
 U/s 5(3), IGST is to be paid on reverse charge basis by the recipient on notified
goods/services or both (liability to pay tax by the recipient of supply of goods/ services
rather than supplier of goods/ services under forward charge).
 U/s 5(4), IGST on taxable inter-state supply of goods/ services to registered supplier in
respect of specified categories of goods or services or both received from unregistered
supplier is to be paid on reverse charge basis by the recipient.
 U/s 5(5), E-Commerce operator is liable to pay CGST on notified inter-state supplies.
LEVY ON ELECTRONIC COMMERCE
OPERATOR
 (5) The Government may, on the recommendations of the Council,
 by notification,3
 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:
 Notified categories are:
S. No. Category of Supply of Services Supplier of service Person Liable to
Pay GST
1 Transportation of passengers by a radio-taxi, motorcab, maxicab and Any person E-commerce
motor cycle. operator
Notification No. 17/2017-Central Tax (Rate) dt 28th June, 2017 and
Notification No. 14/2017-Integrated Tax (Rate) dt 28th June, 2017

2 Providing accommodation in hotels, inns, guest houses, clubs, Any person except who is liable for E-commerce
campsites or other commercial places meant for residential or lodging registration under sub- section (1) of operator
purposes. section 22 of the said CGST Act
Notification No. 17/2017-Central Tax (Rate) dt 28th June, 2017 and
Notification No. 14/2017-Integrated Tax (Rate) dt 28th June, 2017

3 Services by way of house- keeping, such as plumbing, carpentering Any person except who is liable for E-commerce
etc. registration under sub- section (1) of operator
Notification No. 23/2017-Central Tax(Rate) dated 22 Aug, 2017
nd
section 22 of the said CGST Act
and Notification No. 23/2017-Integrated Tax (Rate) dated 22 Aug, 2017
nd

https://taxguru.in/goods-and-service-tax/section-9-cgst-act-levy-collection.html
Who shall be liable to pay GST

 Supplier of goods or services Sec 9(1)

 Recipient of Supply Section 9(4)
 E Commerce operator Section 9 (5) In respect of services only
GST RATES ON SUPPLY OF GOODS
GST RATES ON NOTIFIED GOODS AND
SERVICES
GST RATES ON SUPPLY OF SERVICES

It may be noted that 18% GST is applicable on almost all the services. For complete
schedule please refer to CBEC website