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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Overview of Goods and Services Tax

Under the CGST Act, 2017, central goods and services tax is levied on which kind of supplies, at rates not exceeding a stated ceiling?

CGST is levied on intra-State supplies of goods or services or both, on the value under section 15, at notified rates on the Council's recommendation not exceeding twenty per cent. Inter-State supplies fall under the IGST Act instead.

  1. AIntra-State supplies of goods or services or both, at rates not exceeding twenty per centCorrect
  2. BInter-State supplies of goods or services or both, at rates not exceeding twenty per cent
  3. CIntra-State supplies of goods only, at rates not exceeding twenty-eight per cent
  4. DAll supplies including imports, at rates not exceeding forty per cent

Explanation

Section 9(1) levies CGST on all intra-State supplies of goods or services or both, on the value determined under section 15, at rates notified on the Council's recommendation and not exceeding twenty per cent. Inter-State supplies attract integrated tax, not central tax.

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