Levy of central / state Goods and Service Tax

Levy of central / state Goods and Service Tax

There shall be levied a tax called the Central / State Goods and Service Tax on all intra state supplies of goods and/or services at the rate specified in the schedule …. to this Act and collected in such manner as may be prescribed.

The CGST/SGST shall be paid by every taxable person in accordance with the provisions of this act.

The liability to pay CGST/SGST on the goods shall arise at the time of supply as determined in terms of the provisions of this section.

The liability to pay CGST/SGST on services shall arise at the time of supply, as determine in terms of the provision of this section.

The following conditions shall be satisfied for levy of CGST/SGST:

1. There must be a person.
2. There must be a taxable person.
3. There must be some goods and/or services
4. Such goods must be specified in schedule …. of this act.
5. There must be an intra state supply (supply within state) of such goods and/or services.
6. The tax shall be paid at the time of supply.

In any of the above ingredient is missing the tax is not payable.

Taxable person:

Taxable person means a person who carries on any business at any place in India / state of ….. and who is registered or required to be registered under Schedule III of this act.

Who are person in the act.	Places to be consider in India	+	Who are required to be registered	Persons not considered as taxable person
Individual HUF Company Firm LLP AOP / BOI Corporation or government company Body corporate of a country outside India Co-operative society Local authority Society Trust Artificial Judicial person	A place from where the business is ordinarily carried on Warehouse Godown Other places where goods are stored or provides / receives goods and/or services Places where account books are maintained.Place of agent		I.   Person making inter- state supply II.   Casual person III.   Person liable under RCM. IV.   Person undertaking transaction in India without having fixed place in India.V.   Persons required to deduct tax.VI.   Person who supply on behalf of others. VII.   Input service distributor. VIII.   Supply via e commerce. IX.   Supply exceeding rupees nine lakh.	I.   Agriculturist II.   Employee III.   Person engaged in business of exclusively supplying goods and/or services that are not specified in schedule……IV.   Person liable to pay tax under reverse charge mechanism, if receiving services of value <= ……. rupees in a financial year.
Calculation of Nine lakh: Gross Turnover (Including export turnover) of a person having same PAN Add: Turnover of supplies not levy able to tax Add: Turnover of supplies made as an agent Less: taxes charges under the CGST Act, SGST Act and the IGST Act Less: Value of supplies on which tax is levied on reverse charge basis Less: Value of inward supplies Less: Supply of goods after completion of job-work by a registered job worker Total suppliesOnce the threshold limit is crossed the supplier shall be liable to be registered in all such states from where he makes a supply of goods and/or services on which tax is levyable.

Hence it is always of immense importance to see whether supplies are being made by taxable person or not. In case supplies are made by non taxable person same are not taxable and no input credit will be given in case tax is wrongly paid to such person. Other element of CGST / SGST will be discussed in out forthcoming blogs.