5. Levy and collection.––(1) Subject to the provisions of sub-section (2), there shall be levied a tax
called the integrated goods and services tax on all inter-State supplies of goods or services or both, except
on the supply of alcoholic liquor for human consumption, on the value determined under section 15 of the
Central Goods and Services Tax Act and at such rates, not exceeding forty per cent., as may be notified by
the Government on the recommendations of the Council and collected in such manner as may be
prescribed and shall be paid by the taxable person:
Provided that the integrated tax on goods 1
[other than the goods as may be notified by the
Government on the recommendations of the Council] imported into India shall be levied and collected in
accordance with the provisions of section 3 of the Customs Tariff Act, 1975 (51 of 1975) on the value as
determined under the said Act at the point when duties of customs are levied on the said goods under
section 12 of the Customs Act, 1962 (52 of 1962).
(2) The integrated tax on the supply of petroleum crude, high speed diesel, motor spirit (commonly
known as petrol), natural gas and aviation turbine fuel shall be levied with effect from such date as may be
notified by the Government on the recommendations of the Council.
(3) The Government may, on the recommendations of the Council, by notification, specify categories
of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the
recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient
as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.
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[(4) The Government may, on the recommendations of the Council, by notification, specify a class of
registered persons who shall, in respect of supply of specified categories of goods or services or both
received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply
of goods or services or both, and all the provisions of this Act shall apply to such recipient as if he is the
person liable for paying the tax in relation to such supply of goods or services or both.]
(5) The Government may, on the recommendations of the Council, by notification, specify categories
of services, the tax on inter-State supplies of which shall be paid by the electronic commerce operator if
such services are supplied through it, and all the provisions of this Act shall apply to such electronic
commerce operator as if he is the supplier liable for paying the tax in relation to the supply of such
services:
Provided that where an electronic commerce operator does not have a physical presence in the taxable
territory, any person representing such electronic commerce operator for any purpose in the taxable
territory shall be liable to pay tax:
Provided further that where an electronic commerce operator does not have a physical presence in the
taxable territory and also does not have a representative in the said territory, such electronic commerce
operator shall appoint a person in the taxable territory for the purpose of paying tax and such person shall
be liable to pay tax.
6. Power to grant exemption from tax.–– (1) Where the Government is satisfied that it is necessary
in the public interest so to do, it may, on the recommendations of the Council, by notification, exempt
generally, either absolutely or subject to such conditions as may be specified therein, goods or services or
both of any specified description from the whole or any part of the tax leviable thereon with effect from
such date as may be specified in such notification.
1. Ins. by Act 31 of 2023, s. 3 (w.e.f. 1-10-2023).
2. Subs. by Act 32 of 2018, s. 3, for sub-section (4) (w.e.f. 1-2-2019).
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(2) Where the Government is satisfied that it is necessary in the public interest so to do, it may, on the
recommendations of the Council, by special order in each case, under circumstances of an exceptional
nature to be stated in such order, exempt from payment of tax any goods or services or both on which tax
is leviable.
(3) The Government may, if it considers necessary or expedient so to do for the purpose of clarifying
the scope or applicability of any notification issued under sub-section (1) or order issued under
sub-section (2), insert an Explanation in such notification or order, as the case may be, by notification at
any time within one year of issue of the notification under sub-section (1) or order under sub-section (2),
and every such Explanation shall have effect as if it had always been the part of the first such notification
or order, as the case may be.
Explanation.––For the purposes of this section, where an exemption in respect of any goods or
services or both from the whole or part of the tax leviable thereon has been granted absolutely, the
registered person supplying such goods or services or both shall not collect the tax, in excess of the
effective rate, on such supply of goods or services or both.