Section 5 IGST Act 2017 levies IGST on:
Aonly services (cf. IGST Act 2017, Section 5) (cf. IGST Act 2017, Section 5) (cf. IGST Act 2017, Section 5) (cf. IGST Act 2017, Section 5) (cf. IGST Act 2017, Section 5) (cf. IGST Act 2017, Section 5)
Bonly goods (cf. IGST Act 2017, Section 5) (cf. IGST Act 2017, Section 5) (cf. IGST Act 2017, Section 5) (cf. IGST Act 2017, Section 5) (cf. IGST Act 2017, Section 5) (cf. IGST Act 2017, Section 5)
CINTER-STATE supply of goods or services or both — at rates not exceeding 40%, notified on GST Council recommendations; IGST is COMBINATION of CGST + SGST (effectively); collected by Centre, distributed to State of consumption
Donly domestic (cf. IGST Act 2017, Section 5) (cf. IGST Act 2017, Section 5) (cf. IGST Act 2017, Section 5) (cf. IGST Act 2017, Section 5) (cf. IGST Act 2017, Section 5) (cf. IGST Act 2017, Section 5)
Answer & Solution
Correct answer: C. INTER-STATE supply of goods or services or both — at rates not exceeding 40%, notified on GST Council recommendations; IGST is COMBINATION of CGST + SGST (effectively); collected by Centre, distributed to State of consumption
1. Section 5 IGST Act 2017: LEVY and COLLECTION of IGST (INTEGRATED GST) on inter-State supplies of goods and services.
2. RATE: not exceeding 40%; current rates 0%, 5%, 12%, 18%, 28% (matching CGST + SGST combined).
3. EFFECTIVELY: IGST = CGST + SGST equivalents on inter-State supply;
4. Section 7 IGST Act defines INTER-STATE SUPPLIES.
5. Section 9 IGST Act: APPORTIONMENT — IGST collected by Centre is distributed between Centre (CGST share) and consumption State (SGST share).
6. Importation of goods: IGST levied along with Customs duty.
7. Hence option B is correct.
_Source: CS Executive Paper 4 Tax Laws (ICSI BoS) + Income Tax Act 1961 + CGST Act 2017 — IGST Act 2017, Section 5_
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