THE INCIDENCE OF IGST :

Section 4(1) levies IGST on all supplies of goods and/or services made in the course of inter-State trade or commerce. Section 4(3) levies IGST on specific categories of supply of goods and/or services the tax on which is payable on reverse charge basis. These are to be notified by the Central/State government ( on the recommendation  of the GST Council) Section 4 of IGST Act is cited as follows :

Section 4 :

(1) There shall be levied a tax called the Integrated Goods and Services Tax on all supplies of goods and/or services made in the course of inter-State trade or commerce at the rate specified in the Schedule to this Act and collected in such manner as may be prescribed.

(2) The Integrated Goods and Services Tax shall be paid by every taxable person in accordance with the provisions of this Act.

(3) Notwithstanding anything contained in sub-section (2), the Central Government may, on recommendation of the Council, by notification, specify categories of supply of goods and/or services the tax on which is payable on reverse charge basis and the tax thereon shall be paid by the person receiving such goods and/or services and all
the provisions of this Act shall apply to such person as if he is the person liable for paying the tax in relation to such goods and/or services.

(4) Notwithstanding anything contained in sub-section (1) but subject to such conditions as may be notified in this behalf, no tax under this Act shall be payable by any taxable person in respect of such supplies of goods and/or services as are specified in Schedule . . . to the Act.

Thus it has been well established that at what point tax is to be levied in the new taxation regime. Now the question arises that the tax is to be levied on whom. The next section of the write-up dwells on this very aspect of who is liable to be taxed.