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

Under Section 9(1) of the CGST Act, 2017, the maximum rate of central tax that the Government may notify on the Council's recommendation is:

The central tax rate cannot exceed twenty per cent under Section 9(1) of the CGST Act. The forty per cent ceiling applies to integrated tax under the IGST Act, so it is not the CGST limit.

  1. A14 per cent
  2. B20 per centCorrect
  3. C28 per cent
  4. D40 per cent

Explanation

Section 9(1) says central tax is levied at rates not exceeding twenty per cent. The forty per cent ceiling belongs to integrated tax under Section 5 of the IGST Act. So 40 is wrong for CGST.

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