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CS Executive · Tax Laws and Practice · Levy and Collection of GST

A foreign electronic commerce operator supplies notified services through its platform in India. It has no physical presence and no representative in the taxable territory. Under Section 9(5) of the CGST Act, 2017, what is required?

Under the second proviso to Section 9(5), an e-commerce operator with no physical presence and no representative in the taxable territory must appoint a person there for paying the tax, and that appointed person is liable to pay it. Lack of presence does not remove liability.

  1. ANo one is liable, since there is no physical presence
  2. BThe operator must appoint a person in the taxable territory to pay the tax, and that person is liable to pay itCorrect
  3. CThe recipient of each service must pay the tax on forward charge
  4. DThe supplier on the platform is relieved from tax

Explanation

Section 9(5) second proviso: where the operator has no physical presence and no representative in the taxable territory, it shall appoint a person in the taxable territory for paying tax, and that person is liable to pay tax. Absence of presence does not remove liability, and the tax is not shifted to recipients under this provision.

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