Skip to content

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

Under the CGST Act, 2017, section 9(5) lets the Government, on the Council's recommendation, notify certain categories of services for which tax on intra-State supplies is payable by the electronic commerce operator. What is the legal effect of such a notification on the operator?

The operator is treated as if it were the supplier liable to pay the tax on the notified services supplied through it. The Act's provisions apply to it in that capacity. This is not reverse charge and does not depend on the actual supplier being unregistered.

  1. AThe operator is treated as the supplier liable for paying tax on those services supplied through itCorrect
  2. BThe operator becomes liable only as a recipient under reverse charge
  3. CThe operator is liable only if the actual supplier is unregistered
  4. DThe operator pays tax only on goods supplied through its platform

Explanation

Section 9(5) says all provisions of the Act apply to the e-commerce operator as if he is the supplier liable for paying tax on the notified services. It is not a reverse charge, because the operator is deemed the supplier, not the recipient. The provision is not limited to unregistered suppliers and it covers services, not goods.

Did you get it right without looking?

One question tells you little. A timed set on Levy and Collection of GST shows your real accuracy, how long you take and where you lose marks.

Practise Levy and Collection of GSTFree diagnostic mock

More Levy and Collection of GST questions