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

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.

You May Also Like:

GST: FAQ's on Meaning and Scope of Supply (Section 3)

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,