Direct and Indirect Taxation · Charge of Tax including Reverse Charge

GST Payable by E-commerce Operator under Section 9(5)

Updated 10 October 2026 · Fact-checked

Under section 9(5) of the CGST Act, 2017, the Government may notify categories of services on which the electronic commerce operator, not the supplier, pays tax on intra-State supplies made through it. The operator is treated as the supplier liable to pay. To solve questions, check the service is notified, supplied through the operator, and intra-State.

Understand Reverse Charge on Electronic Commerce and Other Special Cases

Normally the supplier pays GST. Reverse charge under section 9(3) and 9(4) shifts liability to the recipient. Section 9(5) is a different shift: it moves liability to the electronic commerce operator (the platform), for services the Government notifies on the Council's recommendation.

The text says the tax on intra-State supplies of the notified services "shall be paid by the electronic commerce operator if such services are supplied through it". All provisions of the Act then apply to the operator "as if he is the supplier liable for paying the tax". So the operator pays the tax, but the legal position is that of a supplier, not a recipient. This is why it is often called a forward-charge-type liability, though students loosely group it with reverse charge.

The notification decides which services are covered. A common exam illustration is restaurant service supplied through an app, but the actual list and conditions come from the notification, so read the question for what it tells you. Do not assume a service is covered unless the question says it is notified.

If the operator has no physical presence in the taxable territory, the first proviso makes any person representing the operator liable to pay tax. If there is no representative either, the second proviso requires the operator to appoint a person in the taxable territory to pay tax, and that person is liable.

Registration follows. Section 24 makes registration compulsory for persons required to pay tax under section 9(5), with no threshold relief. The same section also covers persons required to pay tax under reverse charge, and persons supplying through an operator that must collect tax at source under section 52.

Key rules to remember

Section 9(5) liability: Notified service + supplied through e-commerce operator + intra-State supply ⇒ operator pays CGST as if it were the supplier; The Government notifies categories of services on the Council's recommendation. Without notification, section 9(5) does not apply.
Operator without presence in taxable territory: Representative in taxable territory pays; if none, operator must appoint a person who pays; These are the first and second provisos to section 9(5).
Compulsory registration: Section 24(iv): persons required to pay tax under section 9(5) must register; section 24(iii): persons paying tax under reverse charge must register; Section 24 applies notwithstanding section 22(1), so the normal threshold does not help.
Reverse charge on unregistered supplier: Section 9(4): notified class of registered persons pays tax on notified supplies received from an unregistered supplier; Applies only to the class and categories notified.
ITC eligibility (section 16): Used or intended for business + tax invoice or prescribed document + goods or services received + tax actually paid to Government + return under section 39 furnished + not restricted under section 38; Reverse charge ITC depends on the recipient having paid the tax; also subject to the section 16(4) time limit.
ITC time limit: Cannot be taken after 30 November following the financial year of the invoice or debit note, or the annual return date, whichever is earlier; Section 16(4).

How to solve Reverse Charge on Electronic Commerce and Other Special Cases questions

Use this order for any question on section 9(5) and reverse charge credit.

1Identify who pays under normal rules: the supplier. Then ask whether a rule shifts liability.
2Check whether the supply is of a service notified under section 9(5), and whether it is supplied through an e-commerce operator. If the question does not state it, say you assume it is notified.
3Confirm the supply is intra-State. Section 9(5) as given covers intra-State supplies; inter-State supplies are handled under the IGST Act.
4Name the person liable: the operator, or its representative or appointed person if the operator has no physical presence in the taxable territory.
5Compute tax on the value under section 15 at the notified rate (CGST and SGST each half of the total rate for intra-State).
6State the registration consequence under section 24 and who must register.
7For credit, test each section 16(2) condition, the 180-day payment proviso where it applies, and the section 16(4) time limit. Conclude whether ITC is allowed.

Quickest way: Three-question check

When to use it: For MCQs asking who pays or whether credit is available.

Q1: Is the service notified under section 9(5) and supplied through an operator? If yes, the operator pays.
Q2: Is it a notified reverse charge case under 9(3) or 9(4)? If yes, the recipient pays.
Q3: For ITC, has the tax actually been paid to the Government and has the recipient got a valid document and received the supply? If any condition fails, credit is denied or delayed.

Common mistakes in Reverse Charge on Electronic Commerce and Other Special Cases

Treating section 9(5) as ordinary reverse charge where the recipient pays.
Both shift liability away from the supplier, and books group them together.
Fix: Remember 9(3) and 9(4) make the recipient liable. Section 9(5) makes the operator liable as if it were the supplier.
Assuming every service supplied through an app falls under section 9(5).
Students memorise restaurant service as the standard example.
Fix: Only notified categories are covered. Apply the rule only when the question states or implies notification.
Claiming that a small operator can avoid registration under the threshold.
The section 22 threshold is learnt first and over-applied.
Fix: Section 24(iv) requires registration of persons paying tax under section 9(5), notwithstanding section 22(1).
Allowing ITC on reverse charge tax before paying it.
Students think self-assessed tax is automatically a credit.
Fix: Section 16(2)(c) needs the tax to be actually paid to the Government, in cash or by utilising admissible credit. Pay first, then claim.
Forgetting the section 16(4) time limit or the return condition.
Focus stays on the liability rules.
Fix: Always check the 30 November cut-off following the financial year, or the annual return date if earlier, and that the section 39 return is filed.

Worked examples

Example 1

A restaurant in Pune supplies food worth ₹1,000 to a customer through an app run by an e-commerce operator. Assume the service is notified under section 9(5) and the supply is intra-State. Who pays the CGST, and under what provision? Does the operator need registration?

Show the solution

Normal rule: supplier pays. Check if a rule shifts it.
The service is notified and supplied through the operator, and the supply is intra-State, so section 9(5) applies.
The operator pays the tax, and the Act applies to it as if it were the supplier liable to pay.
Section 24(iv) requires persons who pay tax under section 9(5) to be registered, notwithstanding section 22(1).

Answer: The e-commerce operator pays the CGST (with SGST) under section 9(5) and must be registered under section 24(iv), irrespective of turnover.

Example 2

A registered company receives a service on which it must pay tax under reverse charge. It paid that tax in cash through its return on 20 June, holds the invoice, and received the service. It files its return under section 39. Is ITC available, and what limit applies to when it can be taken?

Show the solution

Section 16(1): ITC is allowed on input tax used in the course or furtherance of business, subject to conditions.
Test section 16(2): invoice or prescribed document held; service received; tax actually paid to the Government in cash; return furnished.
All conditions are met, assuming the details are not restricted under section 38 and the service is for business use.
Section 16(4): credit cannot be taken after 30 November following the end of the financial year of the invoice or debit note, or the annual return date, whichever is earlier.

Answer: ITC is available once the reverse charge tax has been paid, subject to the section 16(2) conditions and the section 16(4) time limit.

Exam tips

Write the section number: 9(5) for operator liability, 9(3) and 9(4) for recipient liability, and 24 for registration.
In MCQs on who pays, check whether the service is notified. If it is not stated, avoid choosing an option that applies the rule to every supply.
For written answers, list section 16(2) conditions as separate points so each earns a mark.
Mention the two provisos when the operator has no physical presence in the taxable territory.
Do not quote notification numbers or exact rates unless the question supplies them.

Practice questions from Charge of Tax including Reverse Charge

Reverse Charge on Electronic Commerce and Other Special Cases in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Reverse Charge on Electronic Commerce and Other Special Cases: frequently asked questions

Who pays GST on restaurant service through an e-commerce operator?

If the restaurant service is notified under section 9(5) and supplied through the operator, the operator pays the tax. It is treated as the supplier for that purpose. Check the notification wording in the question.

Is registration compulsory for a person paying tax under section 9(5)?

Yes. Section 24(iv) requires registration of persons required to pay tax under section 9(5). Section 24 applies notwithstanding the threshold in section 22(1).

Is ITC available on reverse charge tax?

Yes, if the section 16 conditions are met. A key condition is that the tax has actually been paid to the Government. The invoice or prescribed document, receipt of supply, return filing and time limit also matter.

What if the e-commerce operator has no physical presence in India?

A person representing the operator in the taxable territory is liable to pay tax. If there is no representative, the operator must appoint a person in the taxable territory to pay tax.