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CA Final · Indirect Tax Laws · Charge of GST

Quickbuy Online, an e-commerce operator based outside India with no physical presence in the taxable territory and no representative there, supplies through its platform a category of services notified under section 9(5), where tax is payable by the operator. What does the Act require?

The operator must appoint a person in the taxable territory for the purpose of paying tax, and that appointed person is liable to pay it. This follows from the second proviso to section 9(5), which prevents the lack of physical presence or representative from avoiding GST liability.

  1. AThe operator must appoint a person in the taxable territory to pay the tax, and that person is liable to pay itCorrect
  2. BThe service providers must each pay tax, as the operator is outside India
  3. CThe recipient must pay tax on reverse charge in all cases
  4. DNo tax is payable, as the operator has no presence in India

Explanation

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

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