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

An ECO has no physical presence in the taxable territory but has a person representing it there for some purpose. For a service notified under section 9(5) of the CGST Act, 2017, who is liable to pay the tax?

The person representing the ECO in the taxable territory is liable. The first proviso to section 9(5) provides that where an ECO lacks physical presence in the taxable territory, any person representing it for any purpose there must pay the tax.

  1. AThe recipient of the service in the taxable territory
  2. BThe person representing the ECO in the taxable territoryCorrect
  3. CThe supplier of the service only, and nobody else
  4. DNo one, until the ECO obtains a physical presence

Explanation

The first proviso to section 9(5) says that where the ECO has no physical presence in the taxable territory, any person representing it for any purpose in that territory is liable to pay tax. The recipient is not made liable, and the absence of physical presence does not remove liability.

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