Section 9 – Levy and Collection

Defines how GST is charged and collected.
Tax applies on all intra-State supplies (except alcohol and certain fuels) at rates up to 20%.
Introduces Reverse Charge Mechanism (RCM) where the recipient pays tax, and makes e-commerce operators liable for GST on services supplied through them.

Section 7 of the CGST Act defines what constitutes a “supply” under GST. It includes all forms of supply of goods or services such as sale, transfer, barter, exchange, lease, or disposal made for a consideration in the course or furtherance of business. It also covers import of services for consideration, and specific activities listed in Schedule I even if made without consideration. Activities listed under Schedule III and certain government functions are excluded from the definition of supply. The section further empowers the government to classify transactions as either supply of goods or services as recommended by the GST Council.

The Central Goods and Services Tax Act, 2017 clearly defines the appointment, powers, and authorisation of officers at central, state, and union territory levels. Sections 4–6 ensure structured administration, prevent duplication of proceedings, and provide a legal framework for effective governance of GST, including the reversal of input tax credit and refund provisions.

Section 3 of the CGST Act, 2017 empowers the Government to appoint various officers for effective administration, ranging from Principal Chief Commissioners to Assistant Commissioners. Rule 42 provides the framework for determining, attributing, and reversing input tax credit (ITC) when inputs or services are used for both taxable and exempt purposes. Rule 89 outlines the procedure for claiming refunds of taxes, interest, penalties, fees, or unutilized ITC, including supplies to SEZs and zero-rated supplies, ensuring compliance and transparency in GST operations.

The Central Goods and Services Tax Act, 2017, is a landmark legislation that governs the framework of GST in India. Section 1 outlines its short title, extent, and commencement, stating that the Act applies to the whole of India and came into effect on dates notified by the Central Government. Section 2 defines essential terms such as aggregate turnover, composite supply, input tax credit, place of business, and taxable person, ensuring clarity and uniform interpretation across the GST system. Together, these sections form the legal foundation of GST implementation in India.