Section 9 of CGST Act 2017: Levy and Collection

Provisions under Section 9 of the Central Goods and Services Tax (CGST) Act, 2017 relating to “Levy and Collection”, are as under:

Section 9 of CGST Act 2017: Levy and Collection (CHAPTER III – LEVY AND COLLECTION OF TAX)

(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, on the value determined under section 15 and at such rates, not exceeding twenty per cent, as may be notified 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, 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.

(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. 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, 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.

Amendments History:

1. CBEC notifies 1st July 2017 as the Commencement date for Section 6 of the CGST Act 2017, vide Notification 9/2017 Central Tax.

2. Section 9(4) of the CGST Act, 2017 substituted, vide Section 4 of the CGST (Amendment) Act, 2018: GOI Notification dt. 30 Aug. 2018, followed with CBIC Notification on commencement date of 1st Feb. 2019 vide Notification 2/2019 Central Tax dt. 29 Jan. 2019.

3. Related notifications issued by CBEC/ CBIC from time to time:

i) Notification 1/2017 Central Tax Rate dt. 28 June 2017 under Section 9(1); (CGST Rate Schedule for Goods)

ii) Notification 11/2017 Central Tax Rate dt. 28 June 2017 under Section 9(1); (CGST Rate Schedule for Services)

iii) Notification 17/2017 Central Tax Rate dt. 28 June 2017 under Section 9(5); (to prescribe categories of services on which tax shall be paid by e-commerce operator in respect of intra-State supplies)

iv) Notification 37/2017 Central Tax Rate dt. 13 Oct. 2017 under Section 9(1); (to prescribe Central Tax rate on the leasing of motor vehicles)

v) Notification 39/2017 Central Tax Rate dt. 18 Oct. 2017 under Section 9(1); (to reduces GST rate on Food preparations put up in unit containers and intended for free distribution to economically weaker sections of the society under a programme duly approved by the Central Government or any State Government)

vi) Notification 2/2019 Central Tax Rate dt. 7 March 2019 & Notification 2/2019 UT Tax Rate dt. 7 March 2019 under Section 9(1); (Central tax rate on first supplies of goods or services or both upto an aggregate turnover of fifty lakh rupees made on or after the 1st day of April 2019 in any financial year, by a registered person, i.e. composition scheme for supplier of services with a tax rate of 6% having annual turn over in preceding year upto Rs 50 lakhs)

vii) Circular 35/9/2018 GST dt. 5 March 2018. (Clarification regarding taxable services provided by the member of the Joint Venture (JV) to the JV and vice versa and inter se between the members of the JV)

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Govt. has notified the CGST Act, 2017 on 12th April, 2017, followed with Central Goods and Services Tax (CGST) (Amendment) Act, 2018 on 30 Aug. 2018. CBEC/ CBIC has subsequently issued various Notifications on commencement date of various Sections/ Provisions of the CGST/ Amendment Acts from time to time, except where specifically mentioned in the respective CGST/ Amendment Acts.

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