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

A non-resident e-commerce operator has no physical presence in the taxable territory and no representative there. It supplies notified services through its platform. What does the second proviso to section 9(5) of the CGST Act require?

The operator must appoint a person in the taxable territory for the purpose of paying tax, and that appointed person becomes liable to pay the tax. This applies where the operator has neither physical presence nor any representative there.

  1. AThe operator must appoint a person in the taxable territory for paying tax, and that person is liable to pay taxCorrect
  2. BThe recipient of each service must pay tax on reverse charge
  3. CThe Government must appoint a representative on its behalf
  4. DThe tax is waived until a physical presence is established

Explanation

The second proviso applies when there is neither physical presence nor a representative. The operator must appoint a person in the taxable territory for paying tax, and that person is liable to pay tax. The duty to appoint lies on the operator, not the Government, and tax is not waived.

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