Explain Levy and Collection under CGST.

Ans.

Levy and Collection Under Cgst (CGST Act, 2017 Sec. 9)

Section 9 is the charging section and provides following provisions related to Levy and Collection of GST:

Normal Charge

[Section 9(1)]

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, who is the supplier of goods/ services or both.

General Principles/Conditions for Normal Levy/Charge

(i) Intra-state supply.

(ii) Supply must be capable of being valued u/s 15 to levy GST.

(iii) Applicability of prescribed rate of concerned supply.

(iv) Items must not been temporarily kept out of GST.

(v) Except supply of alcoholic liquor for human consumption.

(vi) Payable by taxable person.

Supply of Petroleum Products

[Section 9(2)]

The State 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 commendations of the Council.

Tax on Reverse Charge

[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.

Supply by Unregistered Supplier

[Section 9(4)]

The State 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.

E-Commerce Operator

[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 E-Commerce Operator if such services are supplied through it, and all the provisions of this Act shall apply to such E-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 E-Commerce Operator does not have a physical presence the taxable territory, any person representing such E-Commerce Operator for any purpose in the taxable territory shall be liable to pay tax.