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CMA Intermediate · Direct and Indirect Taxation · Charge of Tax including Reverse Charge

Under section 9(5) of the CGST Act, 2017, for notified categories of services supplied through an electronic commerce operator (ECO), who is deemed to be the person liable to pay tax on intra-State supplies?

The electronic commerce operator pays the tax. Under section 9(5), for notified services supplied through it, the operator is treated as if it were the supplier liable to pay tax, so the liability moves from the actual service provider to the platform, and it is not a recipient reverse charge.

  1. AThe recipient of the service, under reverse charge
  2. BThe service provider who uses the platform
  3. CThe electronic commerce operator, as if it were the supplierCorrect
  4. DThe proper officer of the State where the service is supplied

Explanation

Section 9(5) allows notification of categories of services on which the ECO pays the tax, and all provisions of the Act apply to the ECO as if it were the supplier liable for paying tax. It is not the recipient, so reverse charge under 9(3) is not the mechanism.

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