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

Under the CGST Act, 2017, which statement correctly describes the effect of a notification issued under section 9(3)?

Under section 9(3), the Government may notify categories of supply for which the recipient pays tax on reverse charge, and all provisions of the Act apply to that recipient as if he were the person liable for paying the tax on that supply.

  1. AThe recipient pays tax on the specified supplies on reverse charge basis and the Act applies to him as the person liable to pay the taxCorrect
  2. BThe supplier continues to pay the tax and the recipient only claims credit of it
  3. COnly a recipient who is an unregistered person is made liable to pay the tax
  4. DThe tax is payable by the electronic commerce operator through which the supply is made

Explanation

Section 9(3) lets the Government notify categories of supply on which tax is paid by the recipient on reverse charge. All provisions of the Act then apply to the recipient as if he were the person liable to pay tax. The e-commerce operator route is section 9(5), a different provision.

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