CHARGE OF GST

Power to levy any tax is drawn from the Constitution of India.

Introduction of GST necessitated the amendment of
Constitution of India to enable integration of central excise
duty including additional duties of customs, State VAT and
certain state specific taxes and service tax levied by the
Central Government into a comprehensive Goods & Services
Tax.
The very basis for the charge of tax in any taxing statute is the
taxable event, i.e. the point of time at which the levy of tax
gets attracted. Under the erstwhile indirect taxes regime,
each indirect tax levy had a separate taxable event (such
as manufacture in case of excise, provision of services in case
of service tax, sale of goods in case of VAT/CST, etc). Under
the GST regime, the taxable event is supply of goods and/or
services. The scope of the word supply has been discussed in
detail in the next chapter.
 EXTENT OF
CGST ACT / SGST ACT /UTGST ACT / IGST ACT

➢ Central GST Act, 2017 extends to the whole of India including

the UTs of J&K & Ladakh.
➢ Integrated GST Act, 2017 extends to the whole of India including
the UTs of J&K & Ladakh.
➢ State GST law of the respective State/Union Territory with State
Legislative (i.e. Delhi, Puducherry & Union Territory of Jammu &
Kashmir) extends to the whole of that State/Union Territory.
➢ Union Territory Goods and Services Tax Act, 2017 extends to the
following Union Territories of India where there is no State
Legislature:

❖ The Andaman and Nicobar Islands;

❖ The Lakshadweep Islands;
❖ Dadra and Nagar Haveli and Daman and Diu;
❖ Chandigarh; and
❖ The Union Territory of Ladakh.
 LEVY & COLLECTION OF CGST/IGST
(Sections 9(1) & 9(2) of GST Act (+) Sections 5(1) & 5(2) of IGST Act)

LEVY OF CGST/SGST/UTGST/IGST:
➢ Central Goods and Services Tax (CGST) shall be levied on all
intra- state supplies of goods or services or both.
➢ State Goods and Services Tax (SGST) is levied on those intra-
state supplies of goods or services or both where the
transaction takes place within a State/Union Territory with
State Legislature.
➢ Union Territory Goods and Services Tax (UTGST) is levied on
those intra-state supplies of goods or services where the
transaction takes place within a Union Territory without State
Legislature.
➢ Integrated Goods and Services Tax (IGST) shall be levied on all
inter-state supplies of goods or services or both.
 MEANING OF INTRA-STATE SUPPLY
(Section 8 of IGST Act}

Where the location of the supplier and the place of supply of goods
or services are in the same State/Union Territory, the supply is
treated as intra-state supply of goods or services.
 MEANING OF INTER-STATE SUPPLY
(Section 7 of IGST Act)

➢ Where the location of the supplier and the place of supply of goods
or services are in:
❖ two different States; or
❖ two different Union Territories; or
❖ a State and a Union Territory,
The supply is treated as inter-state supply of goods or services.
➢ Section 7 of IGST provides that the following supplies shall be
deemed as inter-state supplies:
❖Supply of goods or services imported into the territory of India;
❖Supply of goods or services when the supplier is located
in India and the place of supply is outside India; and
❖ Supply of goods or services to or by a SEZ
Developer/ SEZ Unit.
 IMPORT OF GOODS-COMPONENTS OF CUSTOM DUTIES

➢ Basic Custom Duty

(section 12 of the customs act, 1962)

➢ Counter Vailing Duty (CVD)/ additional customs duty in

lieu of excise duty
(section 3(1) of the customs tariff act, 1975)

➢ Special Additional Duty (sad)/ additional customs duty in

lieu of vat
(section 3(5) of the customs tariff act, 1975)

➢ BCD+IGST
GOODS PERMANENTLY EXCLUDED FROM THE
PURVIEW OF GST LAW:

Supply of alcoholic liquor for human consumption is

outside the purview of CGST as well as IGST law.
 GOODS TEMPORARILY EXCLUDED FROM THE PURVIEW OF
GST LAW
(To Be Taxed Under GST At A Later Point Of Time):

➢ Presently, CGST/SGST/UTGST/IGST is not applicable on the supply of the

following items:
❖ petroleum crude;
❖ high speed diesel;
❖ motor spirit (commonly known as petrol);
❖ natural gas; and
❖ Aviation turbine fuel.
➢ The above-mentioned products shall be brought under the ambit of GST law
with effect from such date as may be notified by the Government on the
recommendations of the GST Council.
 VALUE FOR LEVY OF CGST/IGST:

Transaction Value u/s 15 of CGST Act

 RATES OF CGST/IGST:

➢ IGST is approximately the sum total of CGST and SGST/UTGST. Maximum

rate of CGST is 20% whereas maximum rate of IGST is 40%.
➢ Multi-tier rate structure has been introduced under GST. The following
are the different types of GST rates which are applicable presently (These
rates are the sum total of CGST (+) SGST/UT GST in case of intra state
supplies):
❖ 0% (Exempted Supplies)
❖ 5%
❖ 12%
❖ 18%
❖ 28%
Note:
GST rate of 0.25 % has been prescribed for supply of
raw/unprocessed precious stones. GST rate of 3% has been
prescribed for supply of gold, gold jewellery, precious metals,
etc.
 LEVY & COLLECTION OF CGST
(SECTION 9 OF 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), and 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.
 LEVY & COLLECTION OF IGST (SECTION 5 OF IGST ACT)
➢ Section 5(1):
Subject to the provisions of sub-section (2), there shall be levied a
tax called the integrated goods and services tax on all inter-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 of the Central Goods and Services Tax Act and at
such rates, not exceeding forty 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.
Provided that the integrated tax on goods imported into
India shall be levied and collected in accordance with the
provisions of section 3 of the Customs Tariff Act, 1975 on
the value as determined under the said Act at the point
when duties of customs are levied on the said goods under
section 12 of the Customs Act, 1962.
➢ Section 5(2):
The integrated 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.
TAXATION OF ELECTRONICS COMMERCE OPERATORS
(SECTION 9(5) OF CGST ACT (+) SECTION 5(5) OF IGST ACT)

Introduction:
➢ Electronic Commerce Operators (‘ECO’) display products as well as
services on their electronic portal which are actually supplied by
some other person to the consumer. 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.
 Liability of ECO to Pay GST:
➢ The Government may notify specific categories of services,
on the recommendations of the GST Council, the tax on
which shall be paid by the ECO if such services are supplied
through it.
❖ Services by way of house-keeping such as plumbing, carpentering, etc.
except where the person supplying such service through Electronic
Commerce Operator is liable for registration u/s 22(1) of CGST Act.
LIKE URBAN COMPANY-
-Urban Beauty
-Urban Spa
-Urban Painting
-Urban Grooming
-Urban Repairs
-Urban Cleaning
 Person Liable to Pay GST for above Specified Services
when Supplied Through ECO:

➢ If the Electronic Commerce Operator is located in India, tax is to be

paid by the Electronic Commerce Operator.
➢ If the Electronic Commerce Operator does not have any physical
presence in the taxable territory, tax is to be paid by the Electronic
Commerce Operator’s representative located in the taxable territory.
➢ If the Electronic Commerce Operator neither has physical
presence nor any representative in the taxable territory, the
Electronic Commerce Operator would be required to appoint a person in
India who would discharge tax liability its behalf.
 Taxation of electronic commerce operators

Transaction is covered within the scope of Transaction is not covered within the
section 9(5)/5 (5) scope of section 9(5)/5(5)
example: Amazon, Snapdeal Flipkart
etc.
ECO liable to pay tax in the manner of provision of section 9(5)/5(5) shall not
specified under section 9(5)/ 5(5) apply.
The actual vendor supplying goods/
services shall pay tax on the total
amount charged from the actual
Customer. Further ECO shall pay tax
tax on the commission charge by ECO
from the vendor
1. Transportation of Passengers

(a) OMNIBUS ---------------------- Actual supplier is a company ---------------- section 9(5)/5(5) Not applicable

Actual supplier is a non- Section 9(5)/5(5) shall

corporate entity apply

(b) Radio taxi , motor cab, motorcycle etc ---------------------- section 9(5)/5(5) applicable irrespective of the
status of the supplier
2. Hotel accommodation booking + House keeping services

- If actual supplier is liable for registration as per sec 22 ------------- section 9(5)/5(5) Not applicable

- If actual supplier is not liable for registration as per sec 22 ------------- section 9(5)/5(5) applicable
3. Food delivery from resturants through swiggy , Zomato etc

- If restaurant is located at high end hotels -------------- section 9(5)/5(5) Not applicable

- Other cases -------------- section 9(5)/5(5) shall apply irrespective of the turnover of the restaurant