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

Which of the following correctly distinguishes section 9(3)/(4) from section 9(5) of the CGST Act, 2017?

Sections 9(3) and 9(4) place the liability to pay tax on the recipient on reverse charge. Section 9(5) instead makes the electronic commerce operator liable, as if he were the supplier, for notified categories of services supplied through it, so the persons liable differ.

  1. AUnder 9(3) and 9(4) the recipient pays tax on reverse charge, while under 9(5) the electronic commerce operator pays tax as if he were the supplier for notified services supplied through itCorrect
  2. BUnder 9(3) the supplier pays, under 9(4) the recipient pays, and under 9(5) the Government pays
  3. CUnder 9(5) the recipient pays tax on reverse charge, and under 9(3) the e-commerce operator pays
  4. DAll three sub-sections make the supplier liable but allow the recipient to collect the tax in advance

Explanation

Sections 9(3) and 9(4) shift liability to the recipient. Section 9(5) makes the e-commerce operator liable as if he were the supplier for notified services supplied through it. The other options misassign the liability.

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