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Levy and Collection of CGST, SGST, IGST – Complete Details

Levy and Collection of CGST, SGST, IGST – Complete Details. Check details for Levy of GST and Collection of GST, Everything you want to know about Levy and Collection of CGST/SGST/IGST. Hi Friends in this article we provide complete details “Levy and Collection of CGST, SGST, IGST” Now check more details from below….

Levy and Collection of CGST, SGST, IGST

Levy and Collection of CGST, SGST, IGST

When we look back under the provisions of Excise, it was a levy on Manufacture and in Value Added Tax, the concept of Intra and Inter State Sale was the focus. Similar such provision exists under the imposition of service Tax, where the provision of service is the key.

Whereas under the GST regime, there is a paradigm shift from an Origin Based Tax to a Destination based Tax. All the above aspects like Manufacture, Sale, Provision of Service become irrelevant and the term Supply linked to destination is the key.

Moving on to Section 8 of the Revised Model GST Law, which talks about Levy and Collection of Central/State Goods and Services Tax, synopsis of which is given below:

  • a) A Tax called Central/State Goods and Services Tax ( CGST/SGST)
  • b) On all Intra state supplies of goods and/ or services
  • c) On Value determined under Section 15
  • d) Not exceeding Fourteen Percent, on recommendation of council.

Intra-state supplies of the goods and/or services are liable to CGST and SGST. The term intra-State supply and inter-State supply have not been defined in CGST/SGST Act and has been defined at Section 3 and Section 4 of IGST Act. As per Section 4 of the IGST Act intra-State trade or commerce is defined to mean any supply where the ‘location of the supplier’ and theplace of supply are in the same state.

Thus, to determine whether particular supply is intra-State or inter-State will be determined on the basis of location of the supplier and place of supply as per IGST Act.

It is also provided that the intra-State supply of goods shall not include:

  • (i) Supply of goods to or by a SEZ developer or to or by an SEZ unit;
  • (ii) Supply of goods brought into India in the course of import till they cross the customs frontiers of India.

Similar such provisions exist for Intra state supply of Services, as defined under section 4(2) of the IGST Act. It is also provided that the intra-State supply of services shall not include supply of services to or by a SEZ developer or to or by an SEZ unit.

Under the provisions of Section 5 of the IGST Act, IGST shall be levied on

  • a) All supplies of goods and/or services made in the course of inter-State trade or commerce
  • b) On the value determined under Section 15 of CGST Act
  • c) At such rates not exceeding twenty eight percent as may be notified by the Central Government.

Further, IGST on the goods imported into India shall be levied and collected in accordance with the provisions of the Section 3 of the Custom Tariff Act, 1975 at the time when duties of the custom are levied.

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