UNDERSTANDING ON Sec-9 CGST ACT

Section -9 CGST ACT- Understanding On – Levy And Collection

Sec-9 of CGST ACT is basically a charging section which ask for charging the tax on intrastate supplies of goods or services, Sec -9 says that GST would be charge on the Value which is determined under sec-15 of the Act. So First we need to check” if there is any supply”, if the answer is  yes then we need to charge GST on it , and for charging the GST we need to look at the Section 15 to derive the value on which GST is to be charge.

AS Per Sec-9(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. In other words we can said that as per this subsection the Central Govt. is empowered to charge CGST on these products from such date which will be notified by Central Govt.

In case of Import the integrated Tax on goods imported into India shall be levied and collected on the value which is determined under Custom Tariff Act at the point when duties are levied on the said goods under section -12 of Custom Tariff Act.

Sec 9(3) of CGST ACT and Sec5(3) of IGST deals with Reverse Charge on specified categories of supply of Goods or Services. We will discuss the Reverse Charge separately not here in this section.

In my words, I can say that Sec 9(3) of CGST Act talks about the power which given to Government under which Govt can Notify the Specified Categories on Goods and services on which the Tax (GST) Should be paid on Reverse Charge Basis. And govt has notifies Various Goods and Services by notifications which are effective from 01/07/2017 in simple way we can say that in these specified services and goods the recipient of these will have to pay the GST to the Govt.

Example:-Some of these Services are –

Some of These Goods Are:-

So above is the list of some Services/Goods on Which are specified By the Govt for Charging the Reverse Charge.

There are Basically to kind of Charges One is Forward Charge and Second will be Reverse Charge. In case of Reverse Charge, the liability to Pay the GST is on the recipient of Goods and Services Received.

What we have discussed in Sec-9(3) of CGST Act, more or Less same is Specified Conceptually in Sec5(3) of IGST Act. The only difference is CGST/SGST AND IGST

 Sec 9(4) Of CGST and sec 5(4) of IGST Deals with Reverse charge On procurements of specified categories of goods and services from unregistered suppliers. by a notification the govt there is an exemption has been provided for charging reverse under sec9(4) and 5(4).

Section 9(5) Deals with Levy on Specified Services supplied through E-Commerce Operators

According to this subsection the Central Govt is empowered to notify those specified supplies on which e-commerce operator is liable to pay tax under GST. Specified services are -1) Transportation of passenger ola uber.

2) Hotel, guest house etc…except where the person supplying such through e-commerce is liable for registration. oyo

3) House keeping … except where the person supplying such through e-commerce is liable for registration.

Exception here means that if the person supplying through e commerce is liable to get registration under the GST ACT , in that case TCS provision will applicable.

In this case the person liable to pay tax i.e. E-commerce is mandatorily required to get its registration irrespective of the Threshold Limit.

Actually the Sec 9 is Linked with Some major concept of the GST , Like Reverse Charge , As I said that Govt by notification can specify the goods and services on which RCM is applicable.

RCM is altogether a different concept. Which can be discuss separately.

To summaries The Sec-9 of CGST Act few Major issue must be keep in Mind.-

There must be Supply Supply is the Back Bon of GST If there is Supply and we look in to Sec 9 about Chargeability of GST. Sec -9 deals with Chargeability of GST , but we need to Get Value as per Sec -15 of the act. Sec-9 empower the Govt to The central tax on the supply of petroleum crude, high speed diesel, motor spirit (Commonly known as petrol), natural gas and aviation turbine fuel. Sec-9 Empower the Govt . to notify the Categories of Goods and Services on which RCM is Payable. Sec-9 Specifies the Categories of goods and services on which RCM when they procure from Unregistered dealer by Register Dealer. Sec-9 Specify the Chargeability of GST in case of E-COMM operators.

Thanks N Regards

CA Mohit Gupta