. Introduction Of Levy and Collection
Article 265 of the Constitution of India mandates that no tax shall be levied or collected except by the authority of law. The charging section is a must in any taxing statute for levy and collection of tax. Before imposing any tax, it must be shown that the transaction falls within the ambit of the taxable event and that the person on whom the tax is so imposed also gets covered within the scope and ambit of the charging Section by clear words used in the Section. No one can be taxed by implication. The scope of the taxable event being ‘supply’ has been discussed in the earlier part of this Chapter. This Section will provide an insight into the chargeability of tax on a supply. Section 9 is the charging provision of the CGST Act. It provides the maximum rate of tax that can be levied on supplies leviable to tax under this law, the manner of collection of tax and the person responsible for paying such tax.
It is interesting to note that the 4 pillars of taxation that together constitute the cornerstone for levy are couched in Section 9(1). The taxable event, tax rate, collection or levy, and the person to pay are so worded that there is no escape. It appears that the law laid down by the Honourable Supreme Court in Govind Saran Ganga Saran’s Case has been carried to its logical end.