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Levy and Collection of GST under CGST Act, IGST Act and UTGST Act.

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.

A. Levy and Collection of GST Under CGST Act. (Section 9)

1. Levy of central goods and service tax [Section 9(1)]:

Under  CGST Act, central tax called as the central goods and services tax  (CGST) shall be levied on all intra-State supplies of goods or  services or both, except on the supply of alcoholic liquor for  human consumption. 

It shall be levied on the value determined under section 15 and  at such rates, not exceeding 20%, 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. [Similar rates have been prescribed under  SGST/UTGST] 

2. Central tax on petroleum products to be levied from the  date to be notified [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. 

3. Tax payable on reverse charge basis [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. 

Further, 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. 

4. Tax payable on reverse charge if the supplies are made to a  registered person by unregistered person [Section 9(4)]:

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. [Section 9(4) has been deferred till  30.6.2018]

5. Tax payable on intra-State supplies by the electronic commerce operator on notified services  [Section 9(5)] 

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. 

Thus, 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. 

The Government vide Notification No. 17/2017 CT (R) dated 28.06.2017 has notified the following  categories of services supplied through ECO for this purpose— 

  1. services by way of transportation of passengers by a radio-taxi, motorcab, maxicab and motor cycle;

  2. 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 section 22(1) of the CGST  Act.

B. Levy and Collection of GST Under IGST Act. (Section 5)

The provisions  under section 5  of the IGST Act  are similar to  section 9 of  CGST Act  except— 

  1. the word  CGST has  been  substituted by  IGST under  IGST Act 

  2. under IGST  Act, tax  called  integrated tax  is to be levied  on all interState  supplies and on goods  imported  into India. 

  3. maximum  rate under  section 5(1)  of the IGST  Act is 40%  (i.e. 20%  CGST + 20%  UTGST).

C. Levy and Collection of GST Under UTGST Act. (Section 7)

The provisions  under section 7 of  the UTGST Act  are similar to  section 9 of CGST  Act except— 

  1. the word  CGST has been  substituted by  the word  UTGST under  the UTGST  Act. 

  2. under UTGST  Act, tax called  UT tax is be  levied on all  intra-State  supplies, 

  3. maximum rate 7(1) of UTGST  Act is 20%.

Taxability of ECO for specified services

Taxability of ECO for specified services

 
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