THE INCIDENCE OF CGST AND SGST :

Section 7(1) of the CGST /SGST Act levies the tax on all intra-State supplies of goods and/or services.Section 7(3)levies CGST/SGST on specific categories of supply of goods and/or services on which tax is payable on reverse charge basis. These will be notified by the Central/State government (on the recommendation of the GST Council)  Note : Reverse charge means the liability to pay tax by the person receiving goods and / or services instead of the person supplying the goods and / or services (Section 2(85)]. The Section is cited as follows :

Section 7 :
(1)There shall be levied a tax called the Central/State Goods and Services Tax (CGST/SGST) on all intra-State supplies of goods and/or services at the rate specified in the Schedule . . . to this Act and collected in such manner as may be prescribed.
(2) The CGST/SGST 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 or a State Government may, on the 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.