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CMA Intermediate · Direct and Indirect Taxation · Levy and Collection of CGST and IGST

Regarding the levy of integrated tax on goods imported into India under the IGST Act, 2017, which statement is correct?

IGST on imported goods, other than notified goods, is levied and collected under section 3 of the Customs Tariff Act, 1975, on the value determined under that Act, at the point customs duties are levied under section 12 of the Customs Act, 1962.

  1. AIt is levied under section 9 of the CGST Act at the time of clearance from the port
  2. BIt is levied and collected under section 3 of the Customs Tariff Act, 1975, on the value determined under that Act, when customs duties are levied under section 12 of the Customs Act, 1962Correct
  3. CIt is levied only when the importer is a registered person, on the transaction value under section 15 of the CGST Act
  4. DIt is levied by the State Government where the goods are first sold after import

Explanation

The proviso to section 5(1) IGST Act says IGST on imported goods (other than goods notified) is levied and collected under section 3 of the Customs Tariff Act, 1975 on the value determined under that Act, at the point when customs duties are levied under section 12 of the Customs Act. Valuation under CGST section 15 is therefore not used for imports.

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