Explanation: The Goods and Services Tax (GST) in India is a comprehensive, multi-stage, destination-based tax that is levied on every value addition. It is a single tax on the supply of goods and services, right from the manufacturer to the consumer. The GST system in India comprises three types of taxes: CGST (Central Goods and Services Tax), SGST (State Goods and Services Tax), and IGST (Integrated Goods and Services Tax).
IGST is applicable for inter-state supplies of goods and services within India and for international supplies. Section 7 of the IGST Act specifically deals with the provisions for international supplies. When a supply is made to a place outside India, IGST is charged under this section.
In the context of the question, the courier service is being sent from a location within Uttar Pradesh to a destination outside India. This constitutes an international supply. According to the IGST Act, Section 7, IGST is applicable for such international supplies. Therefore, the correct answer is that the supply is covered under Section 7 of the IGST Act.
It is important to note that CGST and SGST are applicable for intra-state supplies within India. CGST is levied on the transaction value of the supply of goods and services by the Central Government, while SGST is levied by the State Government. However, for international supplies, IGST is the applicable tax, as it is designed to handle the complexities of cross-border transactions.
Understanding the distinction between IGST, CGST, and SGST is crucial for correctly applying the tax laws in different scenarios. For international supplies, IGST is the appropriate tax to be charged, and this is governed by Section 7 of the IGST Act.