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

Under Section 9(3) of the CGST Act, 2017, when the Government notifies a category of supply to be taxed on reverse charge, who pays the tax?

On notified categories under Section 9(3), the recipient of the goods or services pays the tax on reverse charge. All provisions of the Act apply to the recipient as if he were the person liable for paying the tax, instead of the supplier.

  1. AThe supplier, as usual, with the recipient only claiming credit
  2. BThe recipient of the goods or services, treated as the person liable to pay the taxCorrect
  3. CThe electronic commerce operator in every case
  4. DThe Government, which collects it directly from the consumer

Explanation

Section 9(3) lets the Government specify categories of supply on which tax is paid on reverse charge by the recipient. The Act's provisions then apply to the recipient as if he were the person liable to pay the tax. The supplier does not pay the tax on such supplies.

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