Levy & Collection (Sec. 1-11)

Date on which provisions come into force:

Sections of CGST Act

Date

Notification

Sections 1 to 5, 10, 22 to 30, 139,
146 and 164

22-Jun-17

1/2017

Section 51 / 52

01-Oct-18

50/2018, 51/2018

GST Amendment Act, 2018

01-Feb-19

02/2019

Proviso to section 42(9) and proviso
to section 43(9)

Not yet notified

–

All other sections

1-Jul-17

9/2017

Finance (No.2) Act, 2019

01-Sep-19/

01-Jan-20 /

01-Sep-20/

10-Nov-20

39/2019, 01/2020 , 01/2020, 63/2020 , 81/2020

Finance Act, 2020

18-May-20 /

30-Jun-20 / 01-Jan-21

43/2020 ,
49/2020 ,
04/2020 ,
92/2020

Finance Act, 2021

01-Jan-22

39/2021

III:
Levy & Collection of Tax

7

Scope of supply: Supply includes:

►   
All forms
of supply of goods
or services or both such as sale,
transfer, exchange, license, lease etc. made for a consideration, for
business

►   
Import of services for a
consideration, whether or not for business

►   
The
activities referred to in Schedule I

The classification of supply of goods or services shall be
made as per Schedule II.

Supply excludes:

►     
Activities referred in Schedule III

►     Services by way of any activity in relation to a function
entrusted to a Panchayat under article 243G of the Constitution undertaken by
Government or local authority [Notification No. 14/2017]

►   
Service by
way of grant of alcoholic liquor licence, against consideration in the form
of licence fee or application fee or by whatever name it is called undertaken
by the State Government. [Notification No. 25/2019]

8

A composite /mixed supply
shall be treated as if supply consists of principal supply & if there is no principal
supply, then it consists of supply which attracts highest rate of tax.

9

CGST charging section:

►    
GST shall
be at notified
rate not exceeding 20% on all intra-State supplies except liquor. Note:- 20% as per CGST Act and 20% as per SGST Act. Therefore, total GST shall not exceed 40%.

►    
Tax on
supply of petroleum, diesel etc. will be levied from date to be notified
separately.

►    
Tax is to
be paid by the recipient on reverse charge on
supplies
Notified u/s 9(3) or 9(4).

►     
Tax shall
be paid by e-commerce
operator on following intra-State
services supplied through it:

◆     
Transportation
of passengers by radio-taxi, motorcab, maxicab and motor cycle

◆     
Following
services except where the person supplying such service through e-commerce
operator is liable for registration u/s 22(1):

✽  
Providing
accommodation in hotels, inns, guest houses, clubs, campsites or other
commercial places meant for residential or lodging purposes

✽  
Services
by way of house-keeping, such as plumbing, carpentering
etc.

[Notification No. 17/2017] & [Notification No. 23/2017]

10

Composition Levy: If total turnover in the preceding FY
is Rs.1.5
crore or below (Rs.75 lakhs or below for Special Category States specified in
Notification No. 14/2019), may opt to pay an amount at following rate on turnover:

Category of persons

Rate*

Up to 31.12.17 [8/2017]

From 01.01.18

[1/2018], [03/2019]

Manufacturer      

1%

0.5%

Composite
supplier of food or drink for human use [6(b) of Schedule II]

2.5%

2.5%

Other
suppliers of goods

0.5%

0.5%of
turnover of taxable supplies of goods & services

Others
suppliers covered u/s 10(2A)

(service
providers)

–

3%

*Note: SGST
Act also prescribes the same rate. Therefore, the total rate will be twice
the above given rate.

Conditions:

►    
Cannot collect tax from the
recipient

►    
Not entitled to ITC

►    
Not applicable for non-resident or
casual taxpayer

►    
Not applicable for the
supply of

◆     
non-GST goods or services

◆     
inter-State outward
supplies of goods or services

◆     
Supply of
services through
e-commerce operator who is required
to collect TCS u/s 52

◆     
manufacture of
following goods [Notification No. 14/2019, 43/2019]

✽  
Ice cream
& other edible ice, whether or not containing cocoa [2105 00 00]

✽  
Pan masala
[2106 90 20]

✽  
Aerated
Water [2202 10 10]

✽  
All goods,
i.e. Tobacco and manufactured tobacco substitutes [24]

►     First 3 category of persons mentioned in above table cannot supply services (other than composite supply of food/drink) of value exceeding 10% of turnover in FY or Rs. 5 lakh, whichever is higher

Note: Exempt services provided by way of extending deposits,
loans or advances are excluded.

The
option shall lapse from the day on which turnover during a FY exceeds the
limit.