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

Which statement about the levy of IGST under Section 5 of the IGST Act, 2017 is correct?

IGST is levied on all inter-State supplies of goods or services or both at rates notified on the Council's recommendation, not exceeding forty per cent. The twenty per cent ceiling belongs to CGST on intra-State supplies, and IGST covers services as well as goods.

  1. AIGST is levied on inter-State supplies at notified rates not exceeding twenty per cent
  2. BIGST is levied on inter-State supplies at notified rates not exceeding forty per centCorrect
  3. CIGST is levied only on supplies of goods and never on services
  4. DIGST is levied on intra-State supplies at rates not exceeding forty per cent

Explanation

Section 5(1) of the IGST Act levies integrated tax on all inter-State supplies of goods or services or both at rates not exceeding forty per cent. The twenty per cent ceiling applies to CGST under its Section 9, so that option is wrong.

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