The levy and collection of Goods and Services Tax (GST) in India are governed by the provisions of the Central Goods and Services Tax Act, 2017 (CGST Act) and the respective State Goods and Services Tax Acts (SGST Acts), which were enacted following the introduction of GST.

Here’s an overview of the process of levy and collection of GST:

1. Levy of GST:
   • GST is levied on the supply of goods and services made within the territory of India.
   • The term “supply” encompasses all forms of supply of goods or services, including sale, transfer, barter, exchange, license, rental, lease, or disposal made or agreed to be made for a consideration by a person in the course of business.
2. Types of GST:
   • Central GST (CGST): Levied by the central government on intra-state supplies of goods and services.
   • State GST (SGST): Levied by the respective state governments on intra-state supplies of goods and services.
   • Integrated GST (IGST): Levied by the central government on inter-state supplies of goods and services, as well as on imports into India. The revenue collected under IGST is shared between the central and state governments.
3. Registration:
   • Businesses involved in the supply of taxable goods and services are required to register for GST if their aggregate turnover exceeds the threshold prescribed by the GST law.
   • Registered taxpayers are issued a unique Goods and Services Tax Identification Number (GSTIN), which serves as their identification for GST compliance.
4. Tax Rates:
   • GST rates are categorized into different slabs, including nil, 5%, 12%, 18%, and 28%, depending on the nature of goods or services.
   • Some goods and services may attract special rates or cesses, such as tobacco products, aerated drinks, and luxury cars.
5. Collection of GST:
   • Registered taxpayers collect GST from their customers (output tax) on the taxable supplies made by them.
   • The tax collected (output tax) is deposited with the government after adjusting any input tax credit (ITC) available on the GST paid on inputs, input services, and capital goods used in the course of business operations.
   • The GST collected by businesses is reported in their periodic GST returns, which are filed electronically on the GST portal.
6. Compliance:
   • GST compliance involves various activities, including filing periodic GST returns, payment of GST liabilities, maintenance of proper records and accounts, and compliance with GST laws, rules, and regulations.
   • Non-compliance with GST requirements may attract penalties, interest, and other consequences as prescribed under the GST law.
7. Enforcement:
   • The levy and collection of GST are enforced by the respective tax authorities, including the Central Board of Indirect Taxes and Customs (CBIC) for CGST and the state tax authorities for SGST.
   • Tax authorities conduct audits, inspections, and assessments to ensure compliance with GST laws and regulations and take enforcement actions against non-compliant taxpayers.

Overall, the levy and collection of GST involve a comprehensive framework of laws, procedures, and compliance requirements aimed at ensuring the efficient and transparent taxation of goods and services in India.