Levy, Collection and Composition Schemes under Model GST, 2016
CA Ankit Gulgulia (Jain) | firstname.lastname@example.org. Levy and Collection of Central/State Goods and Services Tax
(1) There shall be levied a tax called the Central/State Goods and Services Tax (CGST/SGST) on all intra-State supplies of goods and/or services at the rate specified in the Schedule . . . to this Act and collected in such manner as may be prescribed.
(2) The CGST/SGST shall be paid by every taxable person in accordance with the provisions of this Act.
(3) The Central/State Government may, by notification, specify categories of supply of services the tax on which is payable on reverse charge basis and all the provisions of this Act shall apply mutatis mutandis for collection of such tax.
8. Compounded Levy
(1) Notwithstanding anything to the contrary contained in the Act, the Central or a Government may, subject to such conditions and restrictions as may be prescribed, permit a registered taxable person, whose turnover in a financial year does not exceed fifty lacs of rupees, to pay, in lieu of the tax payable by him, an amount calculated at such rate, not less than one percent, of the turnover during the year:
Provided that no such permission shall be granted to a taxable person who effects any inter-state supplies of goods and/or services or to a person who is liable to pay tax under sub-section (3) of section 7 of this Act.
(2) A taxable person to whom the provisions of sub-section (1) apply shall not charge any tax on supplies made by him nor shall he be entitled to any credit of input tax.
(3) If the proper officer has reasons to believe that a taxable person was not eligible to pay tax under sub-section (1), such person shall, in addition to any tax that may be payable by him under other provisions of this Act, be liable to a penalty equivalent to the amount of tax payable as aforesaid:
Provided that no penalty shall be imposed without affording a reasonable opportunity of being heard to the person proceeded against.
(4) Notwithstanding anything to the contrary contained in the Act, the Central or a State Government may, subject to such conditions, restrictions and limitations as may be prescribed in this behalf, permit a registered taxable person engaged in providing a specified category of taxable service to pay, in lieu of the tax payable by him, an amount calculated at such rate not exceeding . . . percent, as may be notified by the Central or a State Government on the recommendation of the Council.
Source:- Sub Committe II Report on Model GST Law