Charges under CGST is covered under Section 9 (1) & 9 (2) of CGST Act, 2017 while Charges under IGST Falls under Section 5 (1) & 5 (2) of IGST Act, 2017.
| CGST | IGST | |
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Levy and collection under section |
> A taxable person shall pay CGST on any intra-state supply of goods/services or both, > As per the value determined under section 15 (Value of supply) of CGST Act, 2017 > At the rate notified by the government.
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> A taxable person shall pay IGST on inter-state supply of goods/services or both, > As per the value determined under section 15 (Value of supply) of CGST Act, 2017 > At the rate notified by the government or, Import of Goods into India: IGST on import shall be as per the provision, section 3 of customs Act, 1975 on the value determined u/s 15 of CGST Act, 2017 At the point when Duties and taxes are levied on the goods u/s 12 of Customs Act, 1975.
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Provided that GST shall not be levied on:
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> Petroleum crude > High-speed diesel > Natural gas > Aviation turbine fuel. > Motor spirit (commonly known as petrol) > Alcoholic liquor for human consumption
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> Petroleum crude > High-speed diesel > Natural gas > Aviation turbine fuel. > Motor spirit (commonly known as petrol) > Alcoholic liquor for human consumption
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Rates notified by the Government are:
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> 0% also known as exempted (section 11) & Negative list (schedule III), 0.125%, 0.75%, 1.5%, 2.5%, 3%, 3.75%, 6%, 9%, 14%, Up to a maximum of 20%.
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> 0% also known as exempted (section 11) & Negative list (schedule III), 0.25%, 3%, 5%, 7.5%, 12%, 18%, 28%, Up to a maximum of 40%.
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Concessional Rate:
From 1st April 2019 a registered taxable person, whose aggregate turnover on the first day of April in a financial year does not exceed 50 lakh rupees, can opt for charging GST at a concessional rate of 3%
1. Conditions for opting for concessional rate:
Person making supply of services:
A. Aggregate Turnover does not exceed 50 lakhs in the previous financial year.
B. Who is:
a) Not eligible to opt for composition levy (section 10)
b) Not a CTP/NRTP
c) Not engaged in making non – taxable supply/any inter state outward supply/supply through E-commerce operator.
d) Not engaged in supply of ice cream/any other edible ice, whether/not containing coco, Pan masala, Tobacco and manufactured tobacco substitutes.
C. More than 1 registered person having same PAN.
D. The registered person shall not collect any tax from recipient on supplies also he is not eligible for ITC.
E. Person opting for this scheme shall issue bill of supply, he shall also mention that he is not eligible for collecting tax on supplies made in the bill of supply.
F. Person opting for this scheme shall pay CT at applicable rates on inward supply chargeable under RCM basis.
First Supplies of Goods or Services or Both:
Eligibility: date from 1st April of the Financial Year to the date on which he becomes liable for registration shall be included.
Tax Liability: supply made from 1st April of the Financial Year to the date he became liable for registration shall not be included.
| Basic | CGST
(Section 9 (3) & 9 (4) of CGST Act, 2017) |
IGST
(Section 5 (3) & 5 (4) of IGST Act, 2017) |
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Supplier |
> As notified by the government 9 (3),
> Supply made by an unregistered person to a specified class of registered person as notified by the government 9 (4). |
> As notified by the government 5 (3), > Supply made by an unregistered person to a specified class of registered person as notified by the government 5 (4). |
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Governments official notification
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> Notification 13/2017 of CTR has notified certain supply of services u/s 9 (3) (Refer to the table below). |
> Notification 10/2017 of ITR has notified certain supply of services u/s 5 (3) (Refer to the table below). |
Reverse Charge Mechanism
GST is payable by the person supplying goods or services. However, there are certain circumstances where the GST is paid by the recipient of the transaction.
| Government Notification 9 (3) vide Notification No 13/ 2017 Central Tax (Rate) “&” 5 (3) vide Notification No 10/ 2017 Integrated Tax (Rate) | |
| Supply of services by | Recipient of Service Located in a taxable territory |
| Goods Transport Agency (GTA) |
A. Any factory/ society/ any co-operative society/ body corporate or any partnership (including AOP) whether registered or not established by or under any law, or B. Any person registered under the CGST/ IGST/ or any SGCT Act, or C. Any casual taxable person. * RCM is applicable only if GTA is not paying IGST at 12%. |
| Individual advocate including a senior advocate or Firm of advocates | Any business entity. |
| An arbitral tribunal. | Any business entity. |
| Any person | Any Body corporate or partnership firm. |
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Central Government, State Government, Union territory or local authority
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Any business entity.
Excluding the services mentioned herein: A. Renting of immovable property, and B. The services specified below:
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| A director of a company or a body Corporate | The company or a body corporate. |
| An insurance agent | Any person carrying on insurance business, |
| A recovery agent to a banking company or a financial institution or a non-banking financial institution | A banking company or a financial institution or a non-banking financial company. |
| Transfer or permitting to use the copyright | Publisher, music company, producer or the like, |
| Renting of immovable property by Central Government, State Government, Union territory or local authority. | Person registered under CGST/ IGST respectively. |
| Service by way of:
A. Transfer of development rights or Floor Space Index. B. Long term lease of land/ Periodic rent. For construction of a project by a promoter. |
Promoter |
| Member of overseeing committee constituted by RBI | RBI |
| Individual Direct Selling Agent (DSA’s) other than body corporate, partnership or LLP firm to Bank or NBFC. | Banking or NBFC |
| Business facilitator w.e.f. 01.01.2019 | Banking Company |
| Agent of Business correspondent w.e.f. 01.01.2019 | Business Correspondent |
| Security services provided by a person other than body corporate to a registered person. | A registered Person |
| Lending of securities under securities lending scheme, 1997 of SEBI. | Borrower |
| Renting of motor vehicle by any person other than body corporate.
* Paying CT at 2.5% with ITC only of input service in the same line of business. |
Any body corporate |
| Author permitting or transferring the copyright relating to original literary work.
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Publishers
* This shall not apply to an author who has taken registration under CGST Act, 2017: Filed declaration in the form at Annexure I, within the time limit prescribed therein, with the jurisdictional CGST or SGST commissioner, as the case may be, that he exercises the option to pay central tax on the services specified in column (2), under forward charge in accordance with section 9 (1) of CGST Act, 2017 under FC., and to comply with all the provisions of CGST Act, 2017 as they apply to a person liable for paying the tax in relation to the supply of any goods or services or both and that he shall not withdraw the said option within a period of 1 year from the date of exercising such option. He makes a declaration, as prescribed in Annexure II, on the invoice issued by him in Form GST Inv-1 to the publisher. |
In addition to the above, the below mentioned supply of services will apply only to IGST:
| Service supplied by a person located in taxable territory | Person located in taxable territory other than non-taxable online recipient. |
| Services by a person located in Non-taxable territory by way of transportation of goods by a vessel from a place outside India to the customs station of clearance in India. | Importer |
Composition Levy Section 10
The composition scheme under GST is currently applicable to businesses with aggregate turnover of Rs. 1.5 crores and 75 lakhs in special category state (namely: Arunachal Pradesh, Uttarakhand, Meghalaya, Manipur, Mizoram, Nagaland, Sikkim, Tripura.
A taxable person who opt composition scheme is not required to maintain detailed records and fling of detailed returns.
Aggregate Turnover:
Includes:
- Taxable supply other than RCM
- Exempted supplies
- Exports
- Inter-state Supplies
Excludes:
- CGST/ SGST/ IGST/ UTGST/ Cess of a person having same PAN.
Person are not liable for this scheme:
Manufacturer of ice cream, pan masala, or tobacco
A person making inter-state supplies
A casual taxable person or a non-resident taxable person
Businesses which supply goods through an e-commerce operator
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