Supply under GST: Levy and Collection

 10. Levy and Collection 

Levy and collection
Intra-state supply (supply within State)   Basis of charge as per CGST z Basis of charge as per IGST Act, Act, 2017  Basis of charge as per respective SGST Act, 2017/ UTGST Act, 2017 (Most of the provisions are same as CGST Act, 2017)	Inter-state supply (supply from one state to another state) Basis of charge as per IGST Act, 2017 PLUS

1. Levy and collection as per CGST Act, 2017 

1. U/s 9(1) of CGST Act, 2017 there shall be levied a tax – 

• Called the Central Goods and Services Tax(CGST); 
• On all the intra-state supplies of goods or services or both, except on supply of alcoholic liquor for human consumption; 
• On the value determined u/s 15; and 
• At such a rate (maximum 20%,) as notified by the Central Government on recommendation of GST Council; and 
• Collected in such a manner as may be prescribed; and 
• Shall be paid by the taxable person.

(b) U/s 9(2) of CGST Act 2017, the CGST of following supply shall be levied with the effect from such date as notified by the Central Government on recommendation of GST Council

• Petroleum crude 
• High speed diesel 
• Motor spirit (commonly known as petrol) 
• Natural gas 
• Aviation turbine fuel

(c) U/s 9(3), CGST is to be paid on reverse charge basis by the recipient on notified goods/ services or both (liability to pay tax by the recipient of supply of goods / services rather than supplier of goods/ services under forward charge) 

(d) U/s 9(4), CGST on taxable supply of goods/ services to registered supplier from unregistered supplier is to be paid on reverse charge basis by the recipient. 

(e) U/s 9(5), E-Commerce operator is liable to pay CGST on notified intra-state supplies.

2. Levy and collection as per IGST Act, 2017 

(a) U/s 5(1) of IGST Act, 2017 there shall be levied a tax – 

• Called the Integrated Goods and Services Tax (IGST); 
• On all the inter-state supplies of goods or services or both, except on supply of alcoholic liquor for human consumption; 
• On the value determined u/s 15 of CGST Act, 2017; and 
• At such a rate (maximum 40%,) as notified by the Central Government on recommendation of GST Council; and 
• Collected in such a manner as may be prescribed; and 
• Shall be paid by the taxable person. 

Provided further that IGST will be imposed on goods/ services imported into India.

(b) U/s 5(2) of IGST Act, 2017, the CGST of following supply shall be levied with the effect from such date as notified by the Central Government on recommendation of GST Council 

• Petroleum crude 
• High speed diesel 
• Motor spirit (commonly known as petrol) 
• Natural gas 
• Aviation turbine fuel

(c) U/s 5(3), IGST is to be paid on reverse charge basis by the recipient on notified goods/ services or both (liability to pay tax by the recipient of supply of goods / services rather than supplier of goods/ services under forward charge). 

(d) U/s 5(4), IGST on taxable inter-state supply of goods/ services to registered supplier from unregistered supplier (agriculturist) is to be paid on reverse charge basis by the recipient. 

(e) U/s 5(5), E-Commerce operator is liable to pay CGST on notified inter-state supplies.

3. 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

11. Goods and Service Tax (GST) Payable on Reverse Charge Basis [Section 9(3) of CGST Act, section 5(3) of IGST Act and  section 7(3) of the UTGST Act]

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 the relevant 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. 

1. Reverse Charge in respect of Supply of Goods under GST :

In respect of supply of the following goods,  the tax on such goods shall be paid on reverse charge basis by the recipient of such goods 

Categories of supply of goods mentioned in column (2) of the Table below, supplied by a person as  specified in column (3) of the said Table, the whole of central tax leviable under section 9 of the said  Central Goods and Services Tax Act, shall be paid on reverse charge basis by the recipient of the such  goods as specified in column (4) of the said Table:—

Sl. No.	Description of supply of Goods	Supplier of goods	Recipient of supply who has to pay tax on reverse charge basis
(1)	(2)	(3)	(4)
1	Cashew nuts, not shelled or peeled	Agriculturist	Any registered person
2	Bidi wrapper leaves (tendu)	Agriculturist	Any registered person
4	Silk yarn	Any person who manufactures silk yarn from raw silk or silk worm cocoons for supply of silk yarn	Any registered person
4A.	Raw Cotton	Agriculturist	Any registered person
5	Supply of lottery.	State Government, Union Territory or any local authority	Lottery distributor or selling agent. Explanation .—For the purposes of this entry, lottery distributor or selling agent has the same meaning as assigned to it in clause (c) of Rule 2 of the Lotteries (Regulation) Rules, 2010, made under the
6	Used vehicles, seized and confiscated goods, old and used goods, waste and scrap	Central Government, State Government, Union territory or a local authority	Any registered person

2. Reverse Charge in respect of Supply of Services under GST: 

In respect of supply of the following services the tax on such supply shall be paid on reverse charge basis by  the recipient of such services 

Categories of supply of services mentioned in column (2) of the Table below, supplied by a person as  specified in column (3) of the said Table, the whole of central tax leviable under section 9 of the said  Central Goods and Services Tax Act, shall be paid on reverse charge basis by the recipient of the such  services as specified in column (4) of the said Table:—  Table

Sl. No.	Category of Supply of Services	Supplier of service	Recipient of Service who has to pay tax on reverse charge basis
(1)	(2)	(3)	(4)
1	Services by a goods transport agency (GTA) in respect of transportation of goods by road to—
	(a) any factory registered under or governed by the Factories Act, 1948;or		(a) Any factory registered under or governed by the Factories Act, 1948;
	(b) any society registered under the Societies Registration Act, 1860 or under any other law for the time being in force in any part of India; or		(b) any society registered under the Societies Registration Act, 1860 or under any other law for the time being in force in any part of India; or
	(c) any co-operative society established by or under any law; or		(c) any co-operative society established by or under any law; or
	(d) any person registered under the Central Goods and Services Tax Act or the Integrated Goods and Services Tax Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act: or		(d) any person registered under the Central Goods and Services Tax Act or the Integrated Goods and Services Tax Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act; or
	(e) any body corporate established, by or under any law; or		(e) any body corporate established, by or under any law; or
	(f) any partnership firm whether registered or not under any law including association of persons: or		(f) any partnership firm whether registered or not under any law including association of persons; or
	(g) any casual taxable person.		(g) any casual taxable person: located in the taxable territory.
2	Services supplied by an individual advocate including a senior advocate— - by way of representational services before any court, tribunal or authority, directly or indirectly, - to any business entity located in the taxable territory, including where contract for provision of such service has been entered through another advocate or a firm of advocates, or by a firm of advocates, by way of legal services, to a business entity.	An individual advocate including a senior advocate or firm of advocates	Any business entity located in the taxable territory.
3	Services supplied by an arbitral tribunal to a business entity.	An arbitral tribunal,	Any business entity located in the taxable territory.
4	Services provided by way of sponsorship to any body corporate or partnership firm.	Any person	Any body corporate or partnership firm located in the taxable territory.
5	Services supplied by the Central Any business entity located in the taxable Government, State Government, Union Government, territory. territory or local authority to a business State entity excluding,— (1) renting of immovable property, and (2) services specified below— (i)  services by the Department of Posts by way of speed post, express parcel post, life insurance, and agency services provided to a person other than Central Government, State Government or Union territory or local authority; (ii) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport; (iii) transport of goods or passengers.	Central Government, State Government, Union Territory or Local Authority	Any business entity located in the taxable territory.
5A	Services supplied by the Central Government, State Government, Union territory or local authority by way of renting of immovable property to a person registered under the Central Goods and Services Tax Act, 2017	Central Government. State Gorernment. Union territory or local authority	Any person registered under the Central Goods and Services Tax Act 2017
6	Services supplied by a director of a company or a body corporate to the said company or the body corporate.	A director of a company or a body corporate	The company or a body corporate located in the taxable territory.
7	Services supplied by an insurance agent to any person carrying on insurance business.	An insurance agent	Any person carrying on insurance business, located in the taxable territory.
8	Services supplied by a recovery agent to a banking company or a financial institution or a non-banking financial company.	A recovery agent	A banking company or a financial institution or a non-banking financial company, located in the taxable territory.
9	Supply of services b an author, music composer, photographer, artist or the like by way of transfer or permitting the use or enjoyment of a copyright covered under section 13(1)(a) of the Copyright Act, 1957 relating to original literary, dramatic, musical or artistic works to a publisher, music company, producer or the like.	Author or music composer, photographer, artist, or the like	Publisher, music company, producer or the like, located in the taxable territory.

1. The person who pays or is liable to pay freight for the transportation of goods by road in goods carriage, located in the taxable territory shall be treated as the person who receives the service for the purpose of this notification.
2. the business entity located in the taxable territory who is litigant, applicant or petitioner, as the case may be, shall be treated as the person who receives the legal services for the purpose of this notification.