Skip to content

CMA Intermediate · Direct and Indirect Taxation · Levy and Collection of CGST and IGST

Section 9(4) of the CGST Act, 2017 (and section 5(4) of the IGST Act) deals with reverse charge in which situation?

Section 9(4) allows the Government to notify a class of registered persons who must pay tax on reverse charge in respect of specified categories of goods or services received from an unregistered supplier. It applies only to notified classes and categories, not to all purchases.

  1. AA specified class of registered persons pays tax on reverse charge for specified goods or services received from an unregistered supplier, as notifiedCorrect
  2. BEvery registered person pays tax on reverse charge on all purchases from any supplier
  3. COnly unregistered persons pay tax on reverse charge on supplies received from registered suppliers
  4. DAn electronic commerce operator pays tax on reverse charge on goods imported into India

Explanation

Section 9(4) empowers the Government, on the Council's recommendation, to notify a class of registered persons who pay tax on reverse charge for specified categories received from an unregistered supplier. It is not a blanket rule for all purchases, which rules out the second option.

Did you get it right without looking?

One question tells you little. A timed set on Levy and Collection of CGST and IGST shows your real accuracy, how long you take and where you lose marks.

Practise Levy and Collection of CGST and IGSTFree diagnostic mock

More Levy and Collection of CGST and IGST questions