Chapter III LEVY AND COLLECTION OF TAX

8. Tax liability on composite and mixed supplies. - The tax liability on a composite or a mixed supply shall be determined in the following manner, namely: — (a) a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply; and (b) a mixed supply comprising two or more supplies shall be treated as a supply of that particular supply which attracts the highest rate of tax.

9. Levy and collection. - (1) Subject to the provisions of sub -section (2), there shall be levied a tax called the Karnataka Goods and Services Tax on all intra -State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption 2[and un -denatured extra neutral alcohol or rectified spirit used for manufacture of alcoholic liquor, for human consumption ]2, on the value determined under section 15 and at such rates, not exceeding twenty 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. (2) The State 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, o n 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 s hall 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. 1[(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 38 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.]1. (5) The Government may, on the recommendations of the Council, by notification, specify categories of services the tax on intra -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 he 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.

7[6[10. Composition levy. - (1) Notwithstanding anything to the contrary contained in this Act but subject to the provisions of sub -sections (3) and (4) of section 9, a registered person, whose aggregate turnover in the preceding financial year did not exceed fifty lakh rupees may opt to pay, 1[in lieu of the tax payable by him under sub -section (1) of section 9, an amount of tax calculated at such rate‖]1 as may be prescribed, but not exceeding, - (a) one per cent. of the turnover in State in case of a manufacturer, (b) two and a half per cent. of the turnover in State in case of persons engaged in making supplies referred to in clause (b) of paragraph 6 of

11. 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 leviabl e thereon with effect from such date as may be specified in such notification. (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 scop e 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. (4) Any notification issued by the Central Government, on the recommendations of the Council, under sub -section (1) of section 11 or order issued under sub -section (2) of the said section of the Central Goods and Services Tax Act shall be deemed to be a notification or, as the case may be, an order issued under this Act. 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 b oth shall not collect the tax, in excess of the effective rate, on such supply of goods or services or both.

general practice