GST: Levy and Collection of Central/State Goods and Services Tax (Section 8)

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GST: Levy and Collection of Central/State Goods and Services Tax, GST Levy and Collection, Levy and Collection of GST, GST

 

GST:Levy and Collection of Central/State Goods and Services Tax (Section 8)

Q 1. What are the taxes that could get levied on an intrastate transaction?
Ans. CGST and SGST will be levied on an intrastate transaction as defined under Sec 4 of the IGST Act, 2016.

Q 2. On what value CGST/SGST be levied?
Ans. CGST / SGST shall be levied on the value of the transaction as determined under Sec15 of the CGST / SGST Act.

Q 3. Is there any maximum rate prescribed under CGST/SGST?
Ans. Yes, rate shall be notified by Central/State Government not exceeding 14%. So the maximum GST rate for any Goods/Service that could be prescribed together is 14+14 = 28%.

Q 4. Who shall decide the rate to be notified?
Ans. Central/State government shall decide the rates of CGST/SGST on recommendation of the GST Council.

Q 5. Who is responsible to pay the GST?
Ans. Generally, the supplier of goods / services is liable to pay GST.However, in certain cases, to be prescribed by Central/State Government, the responsibility will be on the recipient of supply. This is popularly known as reverse charge mechanism (“RCM”).

Q 6. Is reverse charge mechanism applicable only to services?
Ans. No, Reverse charge applies to supplies of both goods and services.

Q 7. Will CGST/SGST be levied on Imports?
Ans. Imports will not be liable to CGST/SGST as imports are covered under ‘inter-State’ transaction.

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GST: Levy and Collection of Central/State Goods and Services Tax, GST Levy and Collection, Levy and Collection of GST, GST: Levy and Collection of Central/State Goods and Services Tax, GST Levy and Collection, Levy and Collection of GST,

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