Levy of and Exemption

Levy and Exemptions from Tax under GST

GST derives its constitutional validity from Article 246A, which was introduced by the 101st Amendment, 2016 which provides both the parliament as well as states concurrent powers to make laws with respect to GST i. e. central tax (CGST) and state tax (SGST) or union territory tax (UTGST).

However, clause 2 of Article 246A read with Article 269A provides exclusive power to the Parliament to legislate with respect to inter-State trade or commerce i.e. integrated tax (IGST).

What is the taxable event under GST

Taxable event under GST is the supply of goods or services or both. CGST and SGST/ UTGST will be levied on intra-State supplies While IGST will be levied on inter-State supplies.

 

If the Aggregate Turnover is over the 19 lakh then the business is eligible to register on the GST Portal and if the aggregate turnover exceeds 20 lakh,  then the business becomes liable to pay GST. The aggregate turnover has been kept lower for the north-east states at 9 lakh for the registration and 10 lakhs for the paying taxes.

Click Here to: –Search taxpayer opted In/ Out for Composition

The pointwise summary of Levy  and Exemptions under Act

  1. The charging section of CGST and SGST Act is section 7 whereas IGST Act is Section 4.
  2. On the recommendations of Council, the state govt/ central govt shall specify categories of supply of goods and services on which the tax is payable by reverse charge
  3. Composition Scheme is applicable to taxable persons, whose turnover during the financial year does not exceed 50 lacs.
  4. Return filing under Composition Scheme has been prescribed under GSTN Quarterly return under GSTN 4 by 18th of the Next Month for the quarter ending. That means the date for quarterly returns will be 1st Quarter- by 18th July, 2nd Quarter –by 18th Oct, 3rd Quarter by 18th Jan, 4th Quarter by 18th April.

A business take care of interstate trade of Goods and Services under Section 24(i)

  1. Casual Taxable Person(Section2(20))- A person who begins, in any capacity, to make transactions in a state or union territory and has no fixed place of business under Section 24(ii) (Not defined under the act).
  2. Reverse Charge (Section 2(98))- Liability to pay tax by the recipient of the supply of goods and services or both instead of the supplier of the same under Integrated GST under Section 24(iii).
  3. Non-Resident Taxable Person (Section 2(77))- It is the same as the casual taxable person, but has not fixed the place of residence also in India under Section 24(v).
  4. People who act on behalf of a taxable person indulged in trade of Goods and Services under Section 24(vii)
  5. Businesses involved in E-Commerce under Section 24(x)
  6. Input Service Distributors(ISD)– The supplier of goods and services or both which receives tax invoices against the receipt of input services and issues a recommended document for the purposes of assigning the credit of Central tax , State tax, Integrated Tax or Union Territory tax paid on the said services to a supplier to taxable goods and services or both having the same PAN Number details as that of the said office under Section 24(viii)
  7. Businesses indulged in Trade in E-Commerce under Section 24(ix)
  8. An online business based upon aggregator model under Section 24(xi)
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