Tax Laws and Practice · Levy and Collection of GST

E-commerce Operator Liability under Section 9(5) of CGST Act

Updated 11 October 2026 · Fact-checked

Under section 9(5) of the CGST Act, 2017, the Government may notify categories of services supplied through an electronic commerce operator. For those services, the operator, not the actual supplier, pays the intra-State tax and is treated as the supplier. Solve questions by checking the service is notified, supplied through the operator, and intra-State.

Understand Electronic Commerce Operator Liability under Section 9(5)

Normally the person who supplies goods or services pays the GST on it. Section 9(5) is an exception. It lets the Government, on the Council's recommendation, name certain services where the electronic commerce operator pays the tax instead of the person who actually provides the service.

The section says the Government may notify categories of services, the tax on intra-State supplies of which is paid by the operator if the services are supplied through it. All provisions of the Act then apply to the operator as if he is the supplier liable to pay tax. So the operator issues the invoice, pays the tax and files returns for that supply.

The common examples are the ones students search for: ride hailing (passenger transport by motor vehicle, such as taxi rides booked on an app) and restaurant services supplied through an app such as a food delivery platform. The exact list of notified services and the conditions sit in notifications. Learn the examples from your study material, as the Act itself only gives the power.

The section also covers operators with no physical presence in the taxable territory. Any person representing the operator for any purpose in the taxable territory is liable to pay the tax. If there is no such representative either, the operator must appoint a person in the taxable territory to pay the tax, and that person is liable.

Do not confuse this with section 52. Section 52 is tax collection at source (TCS) by the operator, at a rate not exceeding one per cent. of the net value of taxable supplies made through it. Services notified under section 9(5) are excluded from the net value for TCS, so the two do not overlap.

Key rules to remember

Core rule of section 9(5): Notified service + supplied through e-commerce operator + intra-State supply → operator pays tax, as if he is the supplier; The Government notifies the categories of services on the Council's recommendations.
Operator with no physical presence in the taxable territory: Representative in taxable territory is liable; if none, operator must appoint a person to pay tax; These are the two provisos to section 9(5).
Compulsory registration: Section 24(iv): persons required to pay tax under section 9(5) must be registered; Applies whatever the turnover; it overrides the threshold in section 22(1).
Link with section 52 (TCS): Net value for TCS excludes services notified under section 9(5); TCS rate not exceeding 1%; Use this to show the two provisions are mutually exclusive for the same service.

How to solve Electronic Commerce Operator Liability under Section 9(5) questions

Use the same sequence for any question on who pays tax when a supply is made through an app or platform.

1Identify the platform and check it is an electronic commerce operator and that the supply is made through it.
2Identify the service supplied, such as a taxi ride or restaurant service.
3Check whether that category is notified under section 9(5). If not notified, the supplier pays tax as usual.
4Confirm the supply is intra-State, since section 9(5) speaks of tax on intra-State supplies.
5State that the operator is liable to pay the tax, as if he is the supplier, and not the actual service provider.
6If the operator has no physical presence in India, apply the provisos: representative first, then an appointed person.
7Mention related rules, such as compulsory registration under section 24(iv) and exclusion from section 52 TCS, then conclude.

Quickest way: Three-check test for section 9(5)

When to use it: Use when a short question asks who pays GST on a platform-based service.

Notified service? If no, supplier pays.
Through an operator? If no, supplier pays.
Intra-State? If yes to all three, the operator pays as supplier.
Write the section number, apply to facts, give the conclusion in one line.

Common mistakes in Electronic Commerce Operator Liability under Section 9(5)

Saying the operator pays tax on every supply made through its platform.
Students generalise from food delivery and ride examples.
Fix: Section 9(5) applies only to categories of services notified by the Government. Other supplies are taxed in the supplier's hands.
Confusing section 9(5) with section 52 TCS.
Both involve e-commerce operators and tax payment.
Fix: Under 9(5) the operator is the supplier and pays full tax. Under 52 it collects a small percentage (not exceeding 1%) from the supplier's payments. Notified 9(5) services are excluded from 52.
Confusing section 9(5) with reverse charge under section 9(3) and 9(4).
In all three the person liable is not the actual supplier.
Fix: Reverse charge makes the recipient liable. Section 9(5) makes the operator liable, as if he is the supplier.
Applying section 9(5) to inter-State supplies.
The word intra-State is overlooked.
Fix: The section covers tax on intra-State supplies. Read it carefully before applying.
Forgetting the provisos on operators without a physical presence.
Students stop at the main sub-section.
Fix: Add that the representative is liable, or else a person the operator appoints in the taxable territory.

Worked examples

Example 1

An app-based platform, an electronic commerce operator, connects passengers in Pune with independent taxi drivers, who are unregistered. Passenger transport by motor vehicle through the operator is a service notified under section 9(5). A ride within Maharashtra is booked through the app. Who is liable to pay GST on the ride?

Show the solution

Provision: section 9(5) allows the Government to notify services the tax on intra-State supplies of which is paid by the operator if supplied through it.
Facts: the service is notified, supplied through the operator, and the ride is within Maharashtra, so it is intra-State.
Effect: the operator is treated as the supplier liable to pay tax on this service, and all provisions of the Act apply to it as such.
The driver is not liable to pay the tax on this supply under the section.

Answer: The electronic commerce operator is liable to pay the GST on the ride under section 9(5), as if it were the supplier.

Example 2

A foreign operator runs an app through which restaurant services are supplied in India. It has no physical presence and no representative in India. Restaurant services through operators are notified under section 9(5). Who must pay the tax?

Show the solution

Provision: under the first proviso to section 9(5), where the operator has no physical presence in the taxable territory, any person representing it in the territory is liable to pay tax.
Under the second proviso, where it also has no representative, the operator must appoint a person in the taxable territory for paying tax, and that person is liable.
Facts: there is no representative, so the second proviso applies.
Registration: under section 24(iv), persons required to pay tax under section 9(5) must be registered.

Answer: The operator must appoint a person in the taxable territory, and that person is liable to pay the tax under section 9(5). The person must be registered under section 24(iv).

Exam tips

Write the section number and the phrase 'as if he is the supplier' in your answer.
Learn two or three notified examples, such as ride hailing and restaurant services through an app, but state that the list comes from notifications.
Keep a one-line contrast ready: 9(3) and 9(4) recipient pays; 9(5) operator pays; 52 operator collects TCS.
In case-study answers, follow the order: provision, facts, conclusion.
Mention section 24(iv) compulsory registration when the question asks about compliance.

Practice questions from Levy and Collection of GST

Electronic Commerce Operator Liability under Section 9(5) in other exams

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

Electronic Commerce Operator Liability under Section 9(5): frequently asked questions

Who pays GST on Uber or Zomato services?

It depends on whether the service is notified under section 9(5). For notified services such as passenger transport through an app or restaurant services through a platform, the operator pays the tax. For other supplies, the actual supplier pays.

Is the operator the supplier under section 9(5)?

The Act treats the operator as if he is the supplier liable to pay tax for the notified services. All provisions of the Act apply to him in that respect.

Does section 9(5) apply to goods?

The section speaks of notified categories of services. Goods supplied through an operator are dealt with through the supplier's own liability and the TCS provision in section 52.

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

Yes. Section 24(iv) requires persons who are required to pay tax under section 9(5) to be registered, whatever their turnover.