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

Which statement about the effect of a notification under section 9(3) of the CGST Act, 2017 is correct?

Under section 9(3), once a supply is notified, all provisions of the CGST Act apply to the recipient as if he were the person liable to pay tax on that supply. Liability shifts to the recipient, who must comply fully, rather than merely reporting tax payable by the supplier.

  1. AOnly the charging provisions apply to the recipient, not the compliance provisions
  2. BAll provisions of the Act apply to the recipient as if he is the person liable for paying the tax on that supplyCorrect
  3. CThe supplier remains liable for paying the tax and the recipient only reports it
  4. DThe recipient pays tax only on the portion exceeding the supplier's threshold

Explanation

Section 9(3) states that all provisions of the Act apply to the recipient as if he is the person liable for paying the tax for the notified supply. The recipient therefore takes on the supplier's liability, including related compliance. Option C is wrong because liability shifts to the recipient.

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