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

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

The electronic commerce operator is liable. For services notified under section 9(5), the ECO pays the tax, and the Act applies to it as if it were the supplier liable for paying tax. This is different from reverse charge, where the recipient pays.

  1. AThe ECO, as if it were the supplier liable for paying the tax on such servicesCorrect
  2. BThe recipient of the service, on reverse charge basis
  3. CThe actual supplier of the service, with the ECO only collecting the tax
  4. DThe Central Government, through a notified authority

Explanation

Section 9(5) lets the Government notify categories of services whose tax is paid by the ECO if the services are supplied through it. All provisions of the Act then apply to the ECO as if it were the supplier liable to pay tax. Reverse charge under section 9(3) places liability on the recipient, which is a different mechanism.

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