The Central Goods and Services Tax Act, 2017
Chapter-III Levy and Collection of Tax
Section 9: Levy and collection.
9. (1) Subject to the provisions of sub-section (2), there shall be levied a tax called the central goods and services tax on all intra-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption 1[and un-denatured extra neutral alcohol or rectified spirit used for manufacture of alcoholic liquor, for human consumption], on the value determined under section 15 and at such rates, not exceeding twenty per cent., as may be notifiedn3 by the Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person.
(2) The central tax on the supply of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel shall be levied with effect from such date as may be notified by the Government on the recommendations of the Council.
(3) The Government may, on the recommendations of the Council, by notification,n1 specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.
2[(4) The Government may, on the recommendations of the Council, by notification, specify a class of registered persons who shall, in respect of supply of specified categories of goods or services or both received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply of goods or services or both, and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to such supply of goods or services or both.]
(5) The Government may, on the recommendations of the Council, by notification,n2 specify categories of services the tax on intra-State supplies of which shall be paid by the electronic commerce operator if such services are supplied through it, and all the provisions of this Act shall apply to such electronic commerce operator as if he is the supplier liable for paying the tax in relation to the supply of such services:
Provided that where an electronic commerce operator does not have a physical presence in the taxable territory, any person representing such electronic commerce operator for any purpose in the taxable territory shall be liable to pay tax:
Provided further that where an electronic commerce operator does not have a physical presence in the taxable territory and also he does not have a representative in the said territory, such electronic commerce operator shall appoint a person in the taxable territory for the purpose of paying tax and such person shall be liable to pay tax.
References
Enforcement:
Enforced w.e.f. July 01, 2017 [Notification No. G.S.R. 658(E) dated 28.06.2017].
Amendments:
1. Inserted by Finance (No. 2) Act, 2024, w.e.f. 01.11.2024 [Notification No. 17/2024–Central Tax dated 27.09.2024].
2. Substituted by Central Goods and Services Tax (Amendment) Act, 2018, w.e.f. 01.02.2019 [vide Notification No. 2/2019–Central Tax dated 29.01.2019], for the sub-section:
“(4) The central tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.”.
Notifications:
n1. Central Govt. vide Notification No. 04/2017-Central Tax (Rate) dated 28.06.2017 [amended] specifies the supply of goods and vide Notification No. 13/2017- Central Tax (Rate) dated 28.06.2017 specifies the supply of services on which the GST shall be paid on reverse charge basis (RCM) by the recipient of the intra-state supply.
n2. Notifies categories of services, the tax on intra-State supplies shall be paid by the electronic commerce operator (ECO). [Notification No. 17/2017- Central Tax (Rate) dated 28.06.2017]
n3. For rates, refer Notification No. 37/2017-Central Tax (Rate) dated 13th October, 2017, No. 39/2017-Central Tax (Rate) dated 18th October, 2017, conditional rates of GST, Notification No. 02/2019- Central Tax (Rate) dated 07.03.2019, No. 05/2021-Central Tax (Rate) dated 14th June, 2021, No. 12/2021-Central Tax (Rate) dated 30th September, 2021, No. 02/2022-Central Tax (Rate) dated 31st March, 2022.
Circulars:
C1. The activity of transfer of tenancy right against consideration in the form of tenancy premium is a supply of service liable to GST. It is a form of lease or renting of property and such activity is specifically declared to be a service in para 2 of Schedule II i.e. any lease, tenancy, easement, licence to occupy land is a supply of services. The transfer of tenancy rights cannot be treated as sale of land or building declared as neither a supply of goods nor of services in para 5 of Schedule III to CGST Act, 2017. Thus a consideration for the said activity shall attract levy of GST.0[Circular No.44/18/2018-CGST dated 02.05.2018]
C2. GST on service supplied by restaurants through e-commerce operators. [Circular No. 167/23/2021-GST dated 17.12.2021]
C3. Electronic Commerce Operator(ECO), who is liable to pay tax under section 9(5) of the CGST Act in respect of specified services, is not required to reverse the ITC on his inputs and input services proportionately under section 17(1) or section 17(2) of CGST Act to the extent of supplies made under section 9(5) of the CGST Act. ECO will be required to pay the full tax liability on account of supplies under section 9(5) of the CGST Act only through electronic cash ledger. The credit availed by him in relation to the inputs and input services used to facilitate such supplies cannot be used for discharge of such tax liability under section 9(5) of the CGST Act. However, such credit can be utilized by him for discharge of tax liability in respect of supply of services on his own account.[Circular No. 240/34/2024-GST dated 31.12.2024]