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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Overview of Goods and Services Tax

Under section 9(4) of the CGST Act, 2017 as substituted, who may be required to pay tax on reverse charge for specified supplies received from an unregistered supplier?

A class of registered persons notified by the Government on the Council's recommendation must pay tax on reverse charge as recipients of specified supplies from unregistered suppliers. The provision does not apply to all recipients automatically.

  1. AEvery unregistered supplier making such supplies
  2. BA class of registered persons specified by notification on the Council's recommendation, as recipientsCorrect
  3. COnly an electronic commerce operator
  4. DAny recipient, whether registered or not, without notification

Explanation

Section 9(4) lets the Government, on the Council's recommendations and by notification, specify a class of registered persons who must pay tax on reverse charge for specified goods or services received from an unregistered supplier. It is not automatic for all recipients, and e-commerce operators are covered by section 9(5).

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