CMA Intermediate · Direct and Indirect Taxation · Levy and Collection of CGST and IGST
Under the CGST Act, 2017, the central tax levied on intra-State supplies of goods or services is charged at rates that the Government notifies on the Council's recommendation. What is the maximum rate the Act permits for the central tax?
The maximum CGST rate is twenty per cent. Section 9(1) allows the Government to notify rates on the Council's recommendation, but it fixes an upper limit of twenty per cent on the value of supply determined under section 15.
- AFive per cent
- BTwelve per cent
- CTwenty per centCorrect
- DTwenty-eight per cent
Explanation
Section 9(1) levies CGST on intra-State supplies on the value determined under section 15, at notified rates 'not exceeding twenty per cent'. Twenty-eight per cent was a combined historical slab rate, not the CGST cap in the Act. Twelve and five per cent are only notified rates, not the statutory ceiling.
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