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Microlesson · 5-min read

Charging Sections under GST

# Charging Sections under GST

## The Two Charging Provisions

GST is levied through two parallel charging sections:

StatuteSectionLevies
CGST Act, 2017Section 9CGST (and SGST/UTGST through respective state Acts) on intra-State supplies
IGST Act, 2017Section 5IGST on inter-State supplies and imports

## Why Two Sections?

GST is a dual tax model in India: the Centre and State both levy tax on the same intra-State transaction (via Section 9 CGST + matching SGST). For inter-State movement, only the Centre levies IGST under Section 5 (later apportioned between the Centre and the destination State).

## Structure of a Charging Section

A typical charging section answers four questions:

1. Taxable event — supply of goods/services.

2. Person liable — the supplier (or recipient under RCM, or ECO under Sec 9(5)).

3. Rate — as notified.

4. Value — as per Section 15.

Worked example

### Example 1

Identifying applicability: A manufacturer in Maharashtra sells goods to a buyer in Maharashtra → levy is under Section 9 of CGST Act (CGST + SGST). The same manufacturer sells to a buyer in Karnataka → levy is under Section 5 of IGST Act (IGST).

⚠️ Common exam mistakes

  • Treating Section 9 of CGST as the only charging section — Section 5 of IGST is equally fundamental for inter-State supplies.
  • Mixing up the taxable event (supply) with the point of levy.
Reference: Section 9 of CGST Act / Section 5 of IGST Act — CGST Act, 2017 / IGST Act, 2017
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