GST Levy and Collection (Grade A)

Summary:

CGST is levied on all intra-State supplies of goods or services, excluding alcoholic liquor for human consumption. The value and rates of CGST are determined by Section 15 and the Central Government, with a maximum rate of 20%. CGST is collected from taxable persons in the prescribed manner.

There is currently no CGST on petroleum products, but they may be levied in the future. The government may specify categories of goods or services to be taxed on a reverse charge basis. When supplies are made to a registered person by an unregistered person, the recipient pays the tax on a reverse charge basis.

For notified services, the government may require electronic commerce operators (e.g., Flipkart, Uber, MakeMyTrip) to pay tax on intra-State supplies made through their platforms.

Excerpt:

GST Levy and Collection

Levy of central goods and service tax 9(1)
– CGST shall be levied on all intra-State supplies
– Tax shall be levied on goods or services or both (alcoholic liquor for human consumption excluded) on the value (Section 15 determines the value)
– Rates of CGST shall be prescribed by Central Government (Maximum rate of CGST 20%)
– Shall be collected in the prescribed manner from the taxable person

CGST on petroleum products to be levied from the  date to be notified 9(2)
As of date, there is no CGST on petroleum products- petroleum crude, high-speed diesel, motor spirit (commonly known  as petrol), natural gas, and aviation turbine fuel

Tax payable on reverse charge basis 9(3)
Govt may specify categories of supply of goods or services or both on which the tax shall be paid on a reverse charge basis.

Tax payable on a reverse charge if the supplies are made to a  registered person by an unregistered person 9(4)
Tax on the supply of taxable goods or services or both by an unregistered supplier to a registered person shall be paid by the recipient of such goods or services or both on a reverse charge basis