LEVY AND COLLECTION

OF GST
BY ABHISHEK M N
SCOPE OF SUPPLY
 Schedule I: Activities to be treated supply – without consideration.
 Schedule II: Activities to be treated supply of goods and services.
 Schedule III: Activities not to be treated supply.

 Section 7(1)- Supply includes

 all forms of supply of goods or services or both such as sale,
transfer, barter, exchange, licence, rental, lease or disposal
made or agreed to be made for a consideration by a person in
the course or furtherance of business.
 import of services for a consideration whether or not in the
course or furtherance of business.
 the activities specified in Schedule I, made or agreed to be
made without a consideration.
 the activities to be treated as supply of goods or supply of
services as referred to in Schedule II.
 Section 7(2)- Notwithstanding anything contained in sub-section (1)-
 activities or transactions specified in Schedule III.
 such activities or transactions undertaken by the Central
Government, a State Government or any local authority in which
they are engaged as public authorities, as may be notified by the
Government on the recommendations of the Council.
 shall be treated neither as a supply of goods nor a supply of
services.
 Section 7(3)- Subject to the provisions of sub-sections (1) and (2), the
Government may, on the recommendations of the Council, specify, by
notification, the transactions that are to be treated as—
 a supply of goods and not as a supply of services.
 a supply of services and not as a supply of goods.
TAX LIABILITY ON
COMPOSITE AND MIXED
SUPPLIES
 A composite supply comprising two or more
supplies, one of which is a principal supply,
shall be treated as a supply of such principal
supply.
 A mixed supply comprising two or more
supplies shall be treated as a supply of that
particular supply which attracts the highest
rate of tax.
SCOPE OF GST

 The jurisdiction of the GST Act passed by the

parliament shall extends to the whole of India.
 GST will be applied to all goods and services
except Alcohol for human consumption.
 GST on five specified petroleum products (crude,
Petrol, Diesel, Automatic transmission fluid(ATF),
& Natural gas) would be applicable from a date
to be recommended by the GST Council(GSTC).
[Sec 9(2) CGST/SGST & Sec 5(2) of IGST]
TAXABLE EVENT IN GST
 The taxable event in GST regime is the
supply of goods or services or both.
 If the supplied are intra state /UT, there is a
levy of Central Tax(CGST) and SGST/UTGST.
 If the supplied are inter-state, there is a levy
of IGST.
 Import of goods or services is treated as
inter-state supply.
CHARGING SECTIONS OF
STATE AND CENTRAL GST
 The charging section of CGST and SGST is
Section 9(1).
 GST is levied on the value determined under
Section 15 and at the maximum rate of 20%.
 The charging rate of IGST is Section 5(1) of
the IGST act with similar provisions and with
the upper limit of IGST is 40%.
GST ON IMPORTED GOODS
 The provision of Section 5(1) of IGST act
stipulates that the IGST on goods imported to
India shall be levied and collected in accordance
with the provisions of Section 3 of the Customs
Tariff Act,1975 as ACD.
 IGST rates are equal to CGST+SGST.
 Full Input tax credit shall be available on such
IGST. No credit available on the Basic Customs
Duty(BCD).
TAX ON REVERSE CHARGE BASIS
BY RECIPIENT
 GST is usually discharged by ‘supplier’ of goods or services.

 On specified supplies, recipient is liable to pay GST under

Reverse Charge Mechanism(RCM) according to Section 9(3) of
the CGST Act.

 The recipient must fulfill all the obligation in the Act as if he is

the person liable for paying the tax.

 TAX IN RESPECT TO AN UNREGISTERED SUPPLIER

 The GST in respect to supplies made from an unregistered

supplier to a registered supplier, should be paid by such
registered person on reverse charge basis as the recipient and
all the provisions of this Act shall apply to such recipient
TAX ON E-COMMERCE
OPERATOR
 ‘E-Commerce operator’ to pay GST under section 9(5)
of the Act.
a. By the E-Com in case of inter-state supplies as
specified by government.
b. By a person representing them if E-Com doesn't
have a physical presence in the taxable territory.
c. Or else, the E-Com shall appoint a person in the
taxable territory for the purpose of paying tax
and such person shall be liable to pay tax.
COMPENSATION CESS IN GST
 GST Cess or the compensation cess is levied
under Section 8 of the GST (Compensation to
state) Act, 2017.
 The cess is levied on all intra-state and inter-
state supplies of goods or services.
TAX INVOICE
 The tax invoice issued must clearly mention information
under the following 15 headings:
1. Name, address and GSTIN of the supplier

2. Tax invoice number (it must be generated consecutively

and each tax invoice will have a unique number for that
financial year)
3. Date of issue

4. If the buyer (recipient) is registered then the name,

address and GSTIN of the recipient
5. If the recipient is not registered and the value is more
than Rs. 50,000 then the invoice should carry:
A. name and address of the recipient
B. address of delivery
C. state name and state code
6. HSN code of goods or accounting code of services
7. Description of the goods/services
8. Quantity of goods (number) and unit (metre, kg etc.)
9. Total value of supply of goods/services
10. Taxable value of supply after adjusting any discount
11. Applicable rate of GST (Rates of CGST, SGST, IGST,
UTGST and cess clearly mentioned)
12. Amount of tax (With breakup of amounts of CGST,
SGST, IGST, UTGST and cess)
13. Place of supply and name of destination state for
inter-state sales
14. Delivery address if it is different from the place of
supply
THANK
YOU