READING DOWN MODEL IGST ACT (PART-5)
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
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
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s which will be specified in Schedule to Act, i.e., on such supplies, no tax 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 provisi
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