0The basis of ‘charge of tax’ as per any law is the ‘taxable event’. In case of GST, the ‘taxable event’ is the supply of goods or services.
Supply of goods or services may be divided into 2 categories:
- Intra-State Supplies
- Inter-State Supplies.
Intra-State Supplies: Intra-State Supplies cover the supply of goods and services where the location of the supplier and the place of supply are in the same State or Union Territory. The GST levied on Intra-State Supplies comprises of: CGST (Central GST) and SGST (State GST) / UTGST (Union Territory GST).
It is to be noted that there is single legislation, CGST Act, 2017, for levying CGST. Whereas Union Territories without State legislatures (Andaman and Nicobar Islands, Lakshadweep, Dadra and Nagar Haveli, Daman and Diu and Chandigarh) are governed by UTGST Act, 2017 for levying UTGST. States and Union territories with their own legislatures (Delhi and Puducherry) have their own GST legislation for levying SGST.
Inter-State Supplies: Inter-State Supplies cover the supply of goods and services where services where the location of the supplier and the place of supply are in: (a). Two different States (b). Two different Union Territories (c). A State and a Union Territory. The GST levied on Intra-State Supplies comprises of IGST (Integrated Goods and Service Tax). It is to be noted that IGST is approximately the sum total of CGST and SGST/UTGST.
In case of goods Imported into India, IGST is levied as per section 3 of the Customs Tariff Act, 1975 on the value as determined under the said Act.
Rates: In case of CGST the rates of tax are the rates as notified by the Government. (Maximum rate of CGST is 20%). In case of IGST the rate are approximately CGST rate + SGST/UTGST rate. (Maximum rate of IGST is 40%).
Supplies outside the purview of GST: The supply of alcoholic liquor for human consumption is outside the purview of CGST/UTGST/SGST/IGST. Whereas CGST/UTGST/SGST/IGST on supply of the following items is to be levied w.e.f. a notified date:
- Petroleum crude.
- High speed diesel.
- Motor spirit (commonly known as petrol).
- Natural gas and.
- Aviation turbine fuel.
Note: GST is to be collected and paid by a Taxable Person (as defined as per the act). The Value for the levy of the tax will be the transaction value under Section 15 of the act.
