Section 5 IGST Act 2017 : Levy and collection

By | April 22, 2017
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(Last Updated On: January 3, 2019)

Section 5 IGST Act 2017.

[ Section 5 IGST Act 2017 Notified w.e.f 01.07.2017 vide  Notification No. 3/2017 – Integrated Tax Dated 28th June, 2017 ]

Section 5 IGST Act 2017 explains Levy and collection of IGST and is covered in CHAPTER III LEVY AND COLLECTION OF TAX

( Note IGST Act 2017 also known as THE INTEGRATED GOODS AND SERVICES TAX ACT, 2017 received the Assent of the President of India on 12th April 2017. This is an Act to make a provision for levy and collection of tax on inter-State supply of goods or services or both by the Central Government and for matters connected therewith or incidental thereto.)

Levy and collection.

5. (1) Subject to the provisions of sub-section (2), there shall be levied a tax called the integrated goods and services tax on all inter-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under Section 15 of the Central Goods and Services Tax Act and at such rates, not exceeding forty per cent., as may be notified [ Note -1 , 2 ,3 , 4 , 6 ,7 ,8, 10 , 11 , 12 ,13 , 14 , 17 ,18,20B,20C,20D,21,22,25 ] by the Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person:

Provided that the integrated tax on goods imported into India shall be levied and collected in accordance with the provisions of section 3 of the Customs Tariff Act, 1975 on the value as determined under the said Act at the point when duties of customs are levied on the said goods under section 12 of the Customs Act, 1962.

(2) The integrated tax on the supply of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel shall be levied with effect from such date as may be notified by the Government on the recommendations of the Council.

(3) The Government may, on the recommendations of the Council, by notification [ Note-5 8,15,20,20A, 21A,24,26 ], specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.

27 [ (4) The Government may, on the recommendations of the Council, by  notification, specify a class of registered persons who shall, in respect of supply of specified categories of goods or services or both received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply of goods or services or both, and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to such supply of goods or services or both. ] [ Note -19 ,23]

(5) The Government may, on the recommendations of the Council, by notification [ Note -9 ,16  ], specify categories of services, the tax on inter-State supplies of which shall be paid by the electronic commerce operator if such services are supplied through it, and all the provisions of this Act shall apply to such electronic commerce operator as if he is the supplier liable for paying the tax in relation to the supply of such services:

Provided that where an electronic commerce operator does not have a physical presence in the taxable territory, any person representing such electronic commerce operator for any purpose in the taxable territory shall be liable to pay tax:

Provided further that where an electronic commerce operator does not have a physical presence in the taxable territory and also does not have a representative in the said territory, such electronic commerce operator shall appoint a person in the taxable territory for the purpose of paying tax and such person shall be liable to pay tax.

Notifications issued under Section 5 IGST Act 2017

27. Substituted by the Integrated Goods and Services Tax (Amendment) Act, 2018, w.e.f. 1-2-2019. Prior to its substitution, sub-section (4) read as under :

“(4) The integrated tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.”

26 Notification No 16/2018 Integrated Tax (Rate) Dated 26 th July, 2018 Seeks to amend notification No. 10/2017- Integrated Tax (Rate) so as to specify services supplied by individual Direct Selling Agents (DSAs) to banks/ non-banking financial company (NBFCs) to be taxed under Reverse Charge Mechanism (RCM).

25 Notification No 14/2018 Integrated Tax (Rate)  Dated 26 th July, 2018 Seeks to amend notification No. 8/2017- Integrated Tax (Rate) so as to notify IGST rates of various services as recommended by Goods and Services Tax Council in its 28th meeting held on 21.07.2018.

24 Seeks to amend notification No. 04/2017- Integrated Tax (Rate) dated 28.06.2017 so as to notify levy of Priority Sector Lending Certificate (PSLC) under Reverse Charge Mechanism (RCM) via  Notification No 12/2018 Integrated Tax (Rate) New Delhi, the May 28th 2018

23A Seeks to amend notification No. 10/2017- Integrated Tax (Rate) so as to specify services supplied by the Central Government, State Government, Union territory or local authority by way of renting of immovable property to a registered person under CGST Act, 2017 to be taxed under Reverse Charge Mechanism (RCM)  vide Notification No 3/2018 Integrated Tax (Rate) Dated 25th January, 2018

23 Seeks to exempt payment of tax under section 5(4) of the IGST Act, 2017 till 30.09.2019 vide  Notification No 11/2018 Integrated Tax (Rate) Dated 23rd March, 2018 ,Notification No 13/2018  Integrated Tax (Rate) Dated 29th June, 2018 , Notification No 23/2018 Integrated Tax (Rate) Dated 6th August, 2018

22. Clarification on issues regarding treatment of supply by an artist in various States and supply of goods by artists from galleries vide Circular No 22/22/2017 GST Dated 21st December, 2017

  1. The Central Government, on the recommendations of the Council, notifies the rate of the integrated tax. vide Notification No.1/2017-Integrated Tax (Rate) Dated 28th June, 2017
  2. Schedule of items exempts for inter-State supplies of goods vide  Notification No.2/2017-Integrated Tax (Rate) Dated 28th June, 2017 
  3. Concessional IGST rate for supplies to Exploration and Production notified vide Notification No.3/2017-Integrated Tax (Rate) Dated 28th June, 2017
  4. Exemption from IGST supplies by CSD to Unit Run Canteens and supplies by CSD / Unit Run Canteens to authorised customers under section 6 (1) of IGST Act 2017 – Notification No.7/2017-Integrated Tax (Rate) Dated 28th June, 2017
  5. Reverse charge on certain specified supplies of goods under section 5 (3) of IGST Act 2017 vide Notification No.4/2017-Integrated Tax (Rate) Dated 28th June, 2017
  6. To notify the rates for supply of services under IGST Act vide Notification No. 8/2017-Integrated Tax (Rate) Dated 28th June, 2017
  7. To notify the exemptions on supply of services under IGST Act vide Notification No. 9/2017-Integrated Tax (Rate) Dated 28th June, 2017
  8. To notify the categories of services on which integrated tax will be payable under reverse charge mechanism under IGST Act vide Notification No. 10/2017-Integrated Tax (Rate) Dated 28th June, 2017
  9. To notify the categories of services the tax on inter-State supplies of which shall be paid by the electronic commerce operator vide Notification No. 14/2017-Integrated Tax (Rate) Dated 28th June, 2017
  10. Seek to reduce the Integrated Tax rate on fertilisers from 12% to 5% vide Notification No.16/2017-Integrated Tax (Rate) Dated 30th June 2017
  11. IGST exemption to SEZs on import of Services by a unit/developer in an SEZ  vide Notification No. 18/2017 -Integrated Tax (Rate) Dated 5th July, 2017
  12.  IGST exemption to SEZs on import of Goods by a unit/developer in an SEZ vide Notification 64/2017-Custom,dated. 05-07-2017 
  13. Seeks to reduce IGST rate on specified parts of tractors from 28% to 18 %. vide Notification No 19/2017 Integrated Tax (Rate) Dated  18th August, 2017
  14. Seeks to amend notification No. 08/2017-IT(R) to reduce IGST rate on specified supplies of Works Contract Services, job work for textile & textile products, printing service of books, newspapers etc, admission to planetarium, and, also to provide option to GTA & transport of passengers by motorcab service providers to avail full ITC & discharge IGST @ 12% Vide Notification No 20/2017 Integrated Tax (Rate) Dtd 22nd Aug 2017
  15. Seeks to amend notification No. 10/2017-IT(R) to amend RCM provisions for GTA and to insert explanation for LLP. vide  Notification No 22/2017 Integrated Tax (Rate) Dtd 22nd Aug 2017
  16. Seeks to amend notification No. 14/2017-IT(R) to make ECO responsible for payment of GST on services provided by way of house-keeping such as plumbing, carpentering etc.  vide  Notification No 23/2017 Integrated Tax (Rate) Dtd 22nd Aug 2017
  17. Seeks to amend notification No. 08/2017-IT(R) to reduce IGST rate on specified supplies of Works Contract Services. vide Notification No. 24/2017-Integrated Tax (Rate) dated  the 21st September, 2017
  18. Exempt certain supplies to NPCIL vide Notification No 26/2017 Integrated Tax (Rate) Dated 21st September, 2017
  19. Seeks to exempt payment of tax under section 5(4) of the IGST Act, 2017 till 31.03.2018 vide Notification No. 32/2017 – Integrated Tax (Rate) dated 13th October, 2017
  20. Seeks to amend notification No. 4/2017-Integrated Tax (Rate) vide Notification No 37/2017 Integrated Tax (Rate) Dated 13th October, 2017

20A Seeks to amend notification No. 10/2017-IT(R) regarding services provided by Overseeing Committee members to RBI under RCM vide Notification No 34/2017 Integrated Tax (Rate) Dated 13th October, 2017

20B Notification No 35/2017 Integrated Tax (Rate) Dated 13th October, 2017 Seeks to amend notification No. 1/2017-Integrated Tax (Rate)

20C Notification No 39/2017 Integrated Tax (Rate) dated 13th October, 2017 Seeks to amend notification No. 8/2017-Integrated Tax (Rate).

20D Notification No 38/2017 Integrated Tax (Rate) Dated 13th October, 2017 Seeks to prescribe Integrated Tax rate on the leasing of motor vehicles

21 Seeks to prescribe Integrated Tax rate of 0.1% on inter-State supply of taxable goods by a registered supplier to a registered recipient for export subject to specified conditions vide Notification No 41/2017 Integrated Tax (Rate) 23rd October, 2017

21A seeks to amend notification no. 4/2017- Integrated tax(rate) dated 28.06.2017 to give effect to gst council decision regarding reverse charge on raw cotton vide Notification No 45/2017 Integrated Tax (Rate) Dated 14th November, 2017

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