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CS Executive · Tax Laws and Practice · Levy and Collection of GST

As per the statutory text, what is the maximum rate at which central tax on intra-State supplies and integrated tax on inter-State supplies may be notified, respectively?

Central tax on intra-State supplies can be notified at rates not exceeding twenty per cent, while integrated tax on inter-State supplies can be notified at rates not exceeding forty per cent, in each case on the GST Council's recommendation.

  1. A20 per cent for central tax and 40 per cent for integrated taxCorrect
  2. B40 per cent for central tax and 20 per cent for integrated tax
  3. C20 per cent for both central tax and integrated tax
  4. D28 per cent for central tax and 28 per cent for integrated tax

Explanation

The CGST Act caps the notified central tax rate at twenty per cent, while the IGST Act caps the integrated tax rate at forty per cent. Option two reverses the caps. Option three wrongly applies the CGST ceiling to IGST. Option four uses a past slab rate, not a statutory ceiling.

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