Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 21-7-2016 – Chapter III of the Model IGST Act provides for levy and collection of tax (IGST) vide section 4. Section 4 is the charging section for levy of IGST corresponding to section 6 of CST Act, 1956 dealing with liability to tax on inter-state sales. For the purpose of charging IGST, following points are important – Tax to be levied shall be called IGST IGST shall be levied on all supplies of goods and / or services made in course of inter-state trade on commerce Rate of IGST shall be as per Schedule to the Act (yet to be prescribed) IGST shall be collected in the prescribed manner for which rules shall be prescribed. Report on Business Processes for GST on GST payment
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shall be payable. It may be noted that sub-section (1) on levy of IGST shall be subject to provisions of sub-section (3) and (4) as these are over riding provisions. Sub-section (3) which provides for payment of IGST under Reverse Charge Mechanism (RCM) provides that reverse charge shall apply subject to the following – GST Council shall have to recommend the RCM. Central Government shall notify the RCM by way of a notification after GST Council has recommended RCM may be notified for specified categories of supplies of goods and / or services In RCM, tax shall be paid by the person receiving such goods and/ or services In RCM, all the provisions of IGST Act shall apply to such person as if he is the person liable for paying the tax in rel
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