GST India Forum – Goods and Services Tax (GST) in India › Forums › Bare Law › Sec 9 – Levy and collection
- CA Ashish BadalaModeratorApril 14, 2017 at 11:38 AMPost count: 184Topics: 181
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(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.
(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.Adarsh MadrechaModeratorApril 15, 2017 at 9:14 PMPost count: 57Topics: 36
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About Section 9: Section 9 is the charging provision of the CGST Act 2017. It provides that all intra- State supplies would be liable to CGST. It also provides for the value on which tax shall be paid, the rate of tax applicable on such supplies, the manner of collection of tax by the Government and the person who will be liable to pay such tax.
The importance of Charging Section: Article 265 of the Constitution of India mandates that no tax shall be levied or collected except by the authority of law. The Charging Section is a must in any taxing statute for levy and collection of tax. Before imposing any tax, it must be shown that the transaction falls within the ambit of the taxable event and that the person on whom the tax is so imposed also gets covered within the scope and ambit of the charging Section by clear words used in the Section. No one can be taxed by implication.
Non-Applicability: CGST will not be applicable on alcoholic liquor for human consumption. Current tax law has excluded the following supply of goods from its purview. These will continue to be governed by existing State VAT Laws.
- Petroleum crude
- High-speed diesel
- Petrol (aka motor spirit)
- Natural gas
- Aviation turbine fuel
Reverse Charge: In the normal course, the tax would be payable by the supplier of goods and/or services. However, in specific cases (as may be notified), the onus of payment of tax is shifted to the recipient of goods and/or services. This is called as tax payment by Reverse Charge. The scenario under which Reverse Charge will be applicable shall be notified by govt [Sec 9(3)]. Tax on Reverse Charge will be applicable in the case of taxable supply from Non-Registered Supplier to Registered Person [Sec 9(4)].
Special Case of Electronic Commerce Operator: Where any supply of services is effected through e-commerce operators, Government may notify that the e-commerce operator will be liable to discharge the tax on such supplies. It is important to note that, in such supplies, the e-commerce operator is neither the supplier of service/s nor the recipient of services. It is important to note that this exception is carved out only in respect of a supply of services through an Electronic Operator and will not be applicable to supply of any goods through an e-commerce operator. Where the e-commerce operator does not have a physical presence in the taxable territory, the representative (being agent / any other person) of the operator shall be the person liable to pay tax. Where such representative also does not have a presence in such territory, the operator should appoint a person specifically for this purpose.
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