What is the maximum rate prescribed under CGST act?

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what is the maximum rate of CGST prescribed under CGST Act

? Here is your complete answer.

The CGST is governed by the provisions of the CGST Act, 2017. There are 5 tax slabs through which GST is collected. Those are 0%, 5%, 12%, 18%, and 28%. This GST is divided between the central government and state government. So,

• It is clearly given in Section 8 of the CGST Act that the rate of tax shall not be exceeding 14%.

• Any tax liability obtained under CGST can be set off against CGST or IGST input tax credit only.

For example, if a company sells a luxury product which attracts 28% GST and the cost of that product is Rs 10,000. Top of Form

The GST will be 28% of 10,000. It will be Rs 2800. The share of central government and state government will be Rs1400 each, which is 14%.

I hope with this example the maximum

CGST rate in India

is clear to you.

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The Central Government of India collects the Central Goods and Services Tax (CGST), which is levied on all intra-state supplies of goods or services. After I read about it, I found that it is regulated by the CGST Act, which stipulates that the CGST cannot exceed 14%. This assumes that the federal and state governments will agree to combine their taxes in a proportion that is equitable for profit sharing. Its goal is to replace the former multi-stage, destination-based tax data with a single PAN India tax system. The following details will guide you on the maximum rate of CGST.

What is the maximum rate prescribed under CGST act?

According to section 9 (1), a tax known as the central goods and services tax shall be levied on all intra-State shipments of services or goods or both, other than on the supply of alcoholic liquor for drinking purposes. The CGST tax should not surpass twenty percent on the calculation done under section 15 and at such rates. It is informed by the Government on the suggestions of the Council and obtained in a certain prescribed manner, based on the provisions of sub-section (2).

If a dealer from West Bengal sells items worth Rs.7,000 to a consumer in West Bengal, the GST on the deal will be split between CGST and SGST. If the GST rate is 18 percent, it will be split into 9 percent CGST and 9 percent SGST. In this situation, the total sum charged by the trader will be Rs.7900. The GST revenue under the heading of CGST, i.e. Rs.630, shall be sent to the Central Government in the form of CGST.

1) The right to impose taxes has been delegated to both the Centre and the States in India, which is a federal country. 

2) According to the Constitution, both governments have unique obligations to fulfil, for which they must raise tax income.

3) The GST is levied by both the federal government and the states at the same time.

4) The three tax structures are in place to assist taxpayers in claiming credits against each other, providing "One Nation, One Tax."

5) It's a replacement for the broad range of indirect taxes imposed upon each production throughout the supply chain.

This is your guide on the maximum rate of CGST.