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

Under section 9(3) of the CGST Act, 2017, the Government may notify categories of supply on which tax is paid on reverse charge basis. In such a case, who is treated as the person liable for paying the tax?

For categories notified under section 9(3), tax is paid on reverse charge by the recipient of the goods or services. All provisions of the Act apply to that recipient as if he were the person liable for paying the tax.

  1. AThe supplier of the goods or services
  2. BThe recipient of the goods or services, as if he is the person liable for paying the taxCorrect
  3. CThe electronic commerce operator through which the supply is made
  4. DThe Central Government through the proper officer

Explanation

Section 9(3) provides that for notified categories the tax is paid by the recipient, and all provisions of the Act apply to the recipient as if he is the person liable to pay the tax. The e-commerce operator is covered separately in section 9(5), so it is not the answer here.

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