Levy and Collection of Tax Under IGST, Levy under Integrated GST

Levy and Collection of Tax Under IGST, Levy under Integrated GST Levy of tax Under IGST, Collection of Tax Under IGST, Chapter III of the Model IGST Act attends to levy and collection of tax (IGST) vide section 5. Area 5 of the IGST Act, 2017 sets the arrangements of Levy and Collection of integrated goods and services tax on all inter-State materials of products or services or both. Couple of points to be kept in mind consist of. Now Scroll down below n check more information for “Levy and Collection of Tax Under IGST (Integrated GST)”

Levy and Collection

It will be levied exception the supply of alcoholic alcohol for human usage

  • Integrated tax on goods imported into India shall be levied and collected according to area 3 of the Customs Tariff Act, 1975 on the worth as identified under the said Act at the point when tasks of customs are levied on the stated goods under area 12 of the Customs Act, 1962
  • The Government may, on the suggestions of the Council, by notification, specify classifications of supply of goods or services or both, the tax on which will be paid on reverse charge basis
  • Integrated tax on the supply of petroleum crude, high speed diesel, motor spirit, gas and air travel turbine fuel will be imposed when informed by the Government on the recommendations of the Council
  • The Government may, on the suggestions of the Council, by notice, specify classifications of services, the tax on inter-State products of which shall be paid by the electronic commerce operator
  • Under reverse charge, all the arrangements of this Act shall apply to such recipient as if he is the individual accountable for paying the tax in relation to the supply of such products or services or both
  • It will be levied on the value identified under section 15 of CGST Act and not exceeding 40%

Introduction

The Constitution mandates that no tax shall be imposed or gathered by a taxing Statute except by authority of law. While no can be taxed by ramification, a person can be based on tax in regards to the charging area only.

This is the charging arrangement of the IGST Act. It provides that all inter-State materials would be accountable to IGST at rate advised by the council and alerted based on a ceiling rate of 40%. The arrangement of this area is equivalent to the arrangement under Section 9 of the CGST Act and Section 7 of the UTGST Act.

The levy is on all goods or services or both except alcoholic liquor for human usage. Further, GST may be imposed in supply of petroleum crude, high spirit diesels, motor spirit (fuel), gas and air travel turbine fuel with result from the date notified by the Government on the suggestion of GST Council.

The levy of tax on supply of products and/ or services remains in three parts– (i) in the hands of the supplier and (ii) in the hands of the recipient of items/ services under reverse charge system and, (iii) in case of specified services, in the hands of electronic commerce operator

Analysis

In terms of Section 2(24) of the Act, any words or expression which are used in this Act, however are not defined must be assigned the meaning as offered to such words or expressions in the CGST Act, the UTGST Act, and the GST (Compensation to States) Act.

With particular recommendation to this Section, the following words/ expressions would matter.

  • Supply
  • Inter-State supply
  • Goods
  • Services
  • Taxable person

The meaning to the expression ‘ inter-State supply‘ can be comprehended from Section 7 of this Act. However, the meaning of ‘supply’ and ‘ taxable person’ should be borrowed from the CGST Act. Reference might be made to the CGST Act for an in-depth understanding of such expressions and words.

Levy of tax: Every inter-State supply will be liable to tax, if:

  • ( i) There is a Supply either of goods or services or both, even when a supply includes items or services or both the law offers that such supply would be classifiable just as goods or services in terms of Schedule II of the Act.
  • ( ii) The supply is an inter-State supply– viz. normally, the area of the supplier and the place of supply remain in different States. (Refer Section 7 of the IGST Act to comprehend the meaning of inter-State supply);-LRB-
  • ( iii) The tax shall be payable by a ‘taxable individual’ as described in Section 2(107) checked out with Section 22 and Section 24 of the CGST Act.

Supply: Refer conversation under Section 7 the CGST Act for a detailed understanding of the expression ‘supply’. Furthermore, the comments associating with ‘composite supply’ and ‘blended supply’ will equally get products taxable under IGST Act.

Tax shall be payable by: The tax will be payable by a ‘taxable person’ as specified under Section 2(107) checked out with Section 22 and Section 24 of the CGST Act. Broadly, a taxable individual is one who is signed up or who is required to be signed up under the GST law. Please describe the conversation under the CGST Act for a thorough understanding of this concept.

Tax payable: Every inter-State supply falling under Section 7 of the IGST Act will attract IGST, if it gets covered by section 5. Nevertheless, all deals covered within meaning of supply in the course of inter state trade or commerce within significance of area 7 does not suggest that it is always subject to levy of GST unless it falls in area 5 i.e. charging area.

Tax on import of products: This Act offers that IGST shall be imposed on import of items in terms of Section 3 of the Customs Tariff Act,1975 It suggests that on such importation of goods IGST will be payable in addition to the Basic Customs Duty (BCD). The proviso to Section 5( 1) of the IGST Act likewise clarifies that the worth and point at which IGST would be payable will be figured out in accordance with Section 12 of the Customs Act, 1962.

Rate and worth of tax: The rate of tax will be notified individually, however will not exceed 40%, and the value of products would be as determined under Section 15 of the CGST Act.

Applicability in regard of e-commerce operators: Refer conversation under area 9( 5) of the CGST Act for an understanding of the applicability of this arrangement for e-commerce operators.

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