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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, who is made liable to pay tax on a category of supply that the Government has notified for reverse charge?

Under section 9(3), for categories of supply notified for reverse charge, the recipient of the goods or services pays the tax. All provisions of the Act apply to that recipient as though he were the person liable to pay the tax on that supply.

  1. AThe recipient of the goods or services, to whom all provisions of the Act apply as if he were the person liable for paying the taxCorrect
  2. BThe supplier, who then recovers the tax from the recipient as a separate debt
  3. CThe electronic commerce operator through which the supply is made
  4. DThe Central Government, which collects the tax directly at the time of supply

Explanation

Section 9(3) lets the Government notify categories of supply on which tax is paid on reverse charge by the recipient. All provisions of the Act then apply to the recipient as if he were the person liable for paying the tax. The supplier is not the payer for such notified categories, so the second option is wrong.

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