The Central Goods and Services Tax Act, 2017 is the primary legislation governing GST on intra-state supplies. With 174 sections across 21 chapters, it covers levy, collection, ITC, registration, returns, payments, refunds, assessment, audit, appeals, offences, and penalties — forming the backbone of India's indirect tax system.
Short title, commencement, definitions. Section 2 defines 121 key terms including 'aggregate turnover', 'business', 'capital goods', 'casual taxable person', 'composite supply', 'continuous supply', 'exempt supply', 'input tax credit', 'mixed supply', 'output tax', 'person', 'reverse charge', 'supply', 'taxable supply', and 'zero-rated supply'.
Appointment of officers — Commissioner, Additional/Joint/Deputy/Assistant Commissioner, Inspector. Class of officers and their jurisdictions. Powers to delegate authority.
Section 7: Scope of supply (includes sale, transfer, barter, exchange, license, rental, lease, disposal for consideration in course of business). Section 9: Levy rate, reverse charge. Section 10: Composition scheme (≤₹1.5 Cr turnover, 1-6% tax).
Section 12: Time of supply for goods (invoice date or payment date, whichever is earlier). Section 13: Time of supply for services. Section 14: Change in rate of tax.
Section 15: Transaction value as the basis. Inclusions: packing, commission, interest, late fees, subsidies. Exclusions: discounts before or at supply time. Rules for related-party transactions, pure agent deductions.
Section 16: Eligibility and conditions for ITC (possession of invoice, goods/services received, tax paid to government, return filed). Section 17: Apportionment and blocked credits. Section 18: ITC availability in special circumstances. Section 19: ITC on job work.
Section 22: Mandatory registration (T/O > ₹20L/₹40L). Section 24: Compulsory registration regardless of turnover (casual taxable person, NRI, reverse charge, e-commerce operator, TDS/TCS). Section 25: Deemed registration in 3 working days.
Section 31: Tax invoice (time limits, contents). Section 33: Amount of tax to be indicated. Section 34: Credit and debit notes — issuance, timelines, and reporting in returns.
Section 37: GSTR-1 (outward supplies). Section 38: GSTR-2A/2B (auto-drafted). Section 39: GSTR-3B (monthly summary). Section 44: Annual return GSTR-9. Section 45: Final return GSTR-10.
Section 49: Electronic cash/credit ledger. Section 50: Interest on delayed payment (18% p.a., reduced to net liability from Sep 2020). Section 51: TDS by government. Section 52: TCS by e-commerce operators.
Section 54: Claim of refund (exports, inverted duty, excess payment). 2-year time limit. Section 56: Interest on delayed refund (6% p.a. after 60 days). Section 57: Consumer Welfare Fund.
Self-assessment (Section 59), provisional assessment (Section 60), scrutiny (Section 61), best judgment assessment (Section 62–63), summary assessment (Section 64). Tax officer powers to assess when returns not filed.
Section 65: Audit by tax authorities (notice period, documentation). Section 66: Special audit — ordered by Commissioner if complexity or revenue leakage suspected. CA/CMA appointed by Commissioner.
Section 67: Power of inspection, search, and seizure (reasons to believe tax evasion). Section 69: Power to arrest (tax evasion > ₹5 Cr = cognizable and non-bailable). Section 70: Power to summon.
Section 73: Demand for non-fraud cases (3-year limitation, 10% penalty). Section 74: Demand for fraud/willful misstatement (5-year limitation, 100% penalty). Section 79: Recovery methods — deduction from bank, attachment of property, civil imprisonment.
Transfer of business, guardian liability, agent liability, joint liability of partners, amalgamation, demerger provisions.
Section 95: Definitions (advance ruling, applicant). Section 97: Application process (₹5,000 fee per question). Section 98: Procedure — pronouncement within 90 days. Section 103: Ruling binding on applicant and jurisdictional officer.
Section 107: Appeal to Appellate Authority (3 months). Section 109: GST Appellate Tribunal (GSTAT). Section 112: Appeal to GSTAT (3 months). Section 117–118: Appeal to High Court and Supreme Court.
Section 122: Penalty for specified offences (₹10,000 or tax amount). Section 129: Detention of goods in transit. Section 130: Confiscation of goods. Section 132: Punishment for certain offences (imprisonment up to 5 years for tax evasion > ₹5 Cr).
Migration of existing taxpayers, CENVAT credit carry-forward, pending proceedings, treatment of inputs in stock/transit on appointed day.
Job work provisions, GST Practitioners, anti-profiteering (Section 171), power to make rules/regulations, removal of difficulties, repeal and savings.
Total taxable supplies + exempt supplies + exports + inter-state supplies, excluding inward supplies under reverse charge. Computed on all-India basis for every PAN.
Supply of two or more goods/services naturally bundled in the ordinary course of business, where one is the principal supply (e.g., goods + insurance + transport).
Supply of two or more goods/services NOT naturally bundled, for a single price. Taxed at the rate of the supply attracting the highest tax rate.
Supply where goods are provided on a recurrent basis under a contract, and invoicing is linked to payment milestones or periods.
Office of supplier that receives invoices for input services and distributes ITC among its branches using GSTR-6.
Tax liability falls on recipient instead of supplier — applies to specified goods/services (Section 9(3)) and purchases from unregistered persons (Section 9(4)).
The CGST Act, 2017 has 174 sections organized into 21 chapters, covering everything from definitions and levy to offences, penalties, and transitional provisions. It was enacted on April 12, 2017 and came into force on July 1, 2017.
CGST (Central GST) is the tax levied by the Central Government on intra-state supplies. SGST (State GST) is levied by the respective State Government on the same intra-state supply. Both are charged at equal rates. For inter-state supplies, IGST (Integrated GST) is levied by the Central Government at a rate equal to CGST + SGST.
The CGST Act was passed by Parliament on March 29, 2017, received Presidential assent on April 12, 2017, and came into effect on July 1, 2017 — the date GST was launched across India, replacing 17 indirect taxes including Central Excise, Service Tax, and VAT.
Section 9 is the charging section — it levies CGST on all intra-state supplies of goods or services at rates notified by the government (0%, 5%, 12%, 18%, 28%). Section 9(3) specifies goods/services under reverse charge. Section 9(4) deals with reverse charge on purchases from unregistered persons.
No. CGST credit can only be utilized for payment of CGST and IGST (in that order). It cannot be used for SGST/UTGST payment. Similarly, SGST credit can only be used for SGST and IGST. This cross-utilization restriction is prescribed under Section 49 of the CGST Act.
Auto-calculate CGST/SGST/IGST, generate compliant invoices, file returns — all from one platform.
Start Free Trial