LEVY AND COLLECTION UNDER
IGST ACT

Section 5
Levy and collection
Sub-Section (1)	Levy & collection of Integrated Goods and Services Tax (IGST) • IGST shall be levied on all inter-state supply of goods or services or both, except on the supply of alcoholic liquor for human consumption. • Such tax shall be levied at the rate, not exceeding 40%, as notified by the Central Government on the recommendations of the Council. • Such tax shall be levied on the value determined under section 15 of the Central Goods and Services Tax Act, 2017. • Such tax shall be paid by the taxable person. • IGST shall be levied and collected, on goods imported into India, as per the provisions of section 3 of the Customs Tariff Act, 1975 and 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.
Sub-Section (2)	Specified goods to be taxable from future date to be notified 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.
Sub-Section (3)	Applicability of Reverse Charge Mechanism on supply of specified (notified) goods or services • Government, on the recommendation of GST council, vide notification shall specify certain goods or services or both on which the tax shall be paid by the recipient on reverse charge basis. • All the provisions of this Act shall be applicable to the service recipient as if he is the person liable to pay tax in relation to such supply of goods or services or both.
Sub-Section (4)	Applicability of Reverse Charge Mechanism on specified (notified) supply of goods or services from unregistered supplier1 • A class of registered person shall be specified, by notification, by Government, on recommendations of the Council, who shall pay the tax on reverse charge basis as the recipient. • On supply of specified goods or services or both received from unregistered supplier. • 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. • Thus, currently reverse charge is applicable only in cases of notified goods or services or both supplied by unregistered supplier instead of all goods or services or both supplied by unregistered supplier.
Sub-Section (5)	Taxability on supply of specified categories of services through E-Commerce Operator • The Government may, on the recommendations of the Council, by notification • 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. • where an electronic commerce operator does not have a physical presence in India, any person representing such electronic commerce operator for any purpose in India shall be liable to pay tax. • where an electronic commerce operator does not have a physical presence in India and also he does not have a representative in India, such electronic commerce operator shall appoint a person in India for the purpose of paying tax and such person shall be liable to pay tax.
Section 6
Power to grant exemption from tax
Sub-Section (1)	General Exemptions • Where the Government is satisfied that it is necessary in the public interest so to do, it may, • on the recommendations of the Council, by notification, • exempt generally, either absolutely or subject to such conditions as may be specified therein, • goods or services or both of any specified description from the whole or any part of the tax leviable thereon with effect from such date as may be specified in such notification.
Sub-Section (2)	Exemptions under circumstances of exceptional nature • Where the Government is satisfied that it is necessary in the public interest so to do, it may, • on the recommendations of the Council, • by special order in each case, • under circumstances of an exceptional nature to be stated in such order, • exempt from payment of tax any goods or services or both on which tax is leviable.
Sub-Section (3)	Clarification on scope or applicability of exemption and time period for issuance of such clarification • The Government may, if it considers necessary or expedient so to do • for the purpose of clarifying the scope or applicability of any notification issued under sub-section (1) or order issued under sub-section (2), • insert an explanation in such notification or order, as the case may be, • by notification at any time within one year of issue of the notification under sub-section (1) or order under sub-section (2), and • every such explanation shall have effect as if it had always been the part of the first such notification or order, as the case may be. Explanation.— • For the purposes of this section, where an exemption in respect of any goods or services or both from the whole or part of the tax leviable thereon has been granted absolutely, • the registered person supplying such goods or services or both shall not collect the tax in excess of the effective rate, on such supply of goods or services or both.

*The said provision is effective from 1-2-2019, and prior to said substitution supply of all goods or services or both (subject to certain limit) by an unregistered supplier was liable to tax under reverse charge basis.

[1] The said provision is effective from 1-2-2019, and prior to said substitution supply of all goods or services or both by an unregistered supplier was liable to tax under reverse charge basis.