Section 9 Levy and collection of GST

Tripti Malu 22 Jun 2022 7,530 Views 0 comment Print Goods and Services Tax | Articles

Today’s topic of deliberation is Section 9 of the CGST Act, 2017, Levy and collection of GST. I would like to mention this before hand that this post does not include Section 9(5) i.e., The E-commerce Operator, which itself is a separate topic which calls for separate attention.

Let’s begin the understanding, as we always do, limb by limb.

Section 9(1)

Intra-State Supply

there shall be levied a tax called the CGST

on all intrastate supplies of goods &/ or services,
- except on the supply of alcoholic liquor for human consumption,
on the value determined u/s 15 and at such rates,
- not exceeding 20%, as may be notified by the Government
collected in manner prescribed (in Rule 85-87of CGST Rules, 2017, i.e., E-Credit, E-Liability, E-Cash Ledgers )
shall be paid by the taxable person.

Section 9(2)

Intrastate supply of petroleum products

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.

Section 9(3) REVERSE CHARGE MECHANISM

The Government may, via notification,

specify categories of supply of goods &/or services,
the tax on which shall be paid on reverse charge basis,
by the recipient of such goods &/or services 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.

Notification 13/2017, dated 28^th June,2017

Notification 4/2017, dated 28^th June,2017

Section 9(4)

Reverse charge – Unregistered Supplier

The Government may, via notification,

specify a class of registered persons who shall, in respect of supply of specified categories of goods &/ or services 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.

Notification 7/2019, dated 29^th March,2019

List of Goods under RCM Mechanism

Following goods have been notified by the Government where recipient of goods is liable to pay GST under RCM, via:

Notification No.4/2017-Integrated Tax (Rate)

Sr. No.	Tariff item/sub-heading / heading / Chapter	Description of supply of Goods	Supplier of Goods	Recipient of Goods
1	0801	Cashew nuts (not shelled or peeled)	Agriculturist	Any registered person
2	1404 90 10	Bidi Wrapper Leaves (tendu),	Agriculturist	Any registered person
3	2401	Tobacco Leaves	Agriculturist	Any registered person
4	5004 to 5006	Silk Yarn	Manufacturer of silk yarn from raw silk or silk worm cocoons	Any registered person
5		Lottery	State Government, Union Territory or local authority	Lottery distributor or selling agent

Notification No. 36 /2017-Central Tax (Rate)

Sr. No.	Tariff item/sub-heading / heading / Chapter	Description of supply of Goods	Supplier of Goods	Recipient of Goods
1	Any Chapter	Used vehicles, seized and confiscated goods, old and used goods, waste and scrap	Central Government, State Government, Union Territory or local authority	Any registered person

Notification No. 43 /2017-Central Tax (Rate)

Sr. No.	Tariff item/sub-heading / heading / Chapter	Description of supply of Goods	Supplier of Goods	Recipient of Goods
1	5201	Raw Cotton	Agriculturist	Any registered person

Notification No. 11 /2018-Central Tax (Rate)

Sr. No.	Tariff item/sub-heading / heading / Chapter	Description of supply of Goods	Supplier of Goods	Recipient of Goods
1		Purchase of priority sector lending certificate	Registered person	Any registered person

Notification No.10/2021 – Integrated Tax (Rate)

Sr. No.

Tariff item/sub-heading / heading / Chapter

Description of supply of Goods

Supplier of Goods

Recipient of Goods

33012400, 33012510,

33012520, 33012530,

33012540

Following essential oils other than those of citrus fruit namely: –

a)peppermint oil

b)Spearmint oil, Water mint-oil, Horsemint oil, Bargemen oil

Any Unregistered Person

Any registered person

List of services under RCM

Following services have been notified by the Government where recipient of services is liable to pay GST under RCM via

Notification no 13/2017- CT (Rate)

Sr. No.	Description of supply of services	Supplier of services	Recipient of services	Remarks
1	Goods Transport Agency (GTA) services by road	Goods Transport Agency	Any factory, society, cooperative society, registered person under GST, body corporate, partnership firm including AOP, casual taxable person located in the taxable territory	Notification No. 22/2017- CT (Rate): If GTA charges GST as Forward charge @12% then recipient is not liable to pay GST under RCM
2	Legal services provided directly or indirectly, by advocate including a senior advocate or firm of advocates	An individual advocate including a senior advocate or firm of advocates	Any business entity located in the taxable territory shall be liable under reverse charge.
3	Services provided by an arbitral tribunal to a business entity	An Arbitral Tribunal	Any business entity located in the taxable territory.
4	Sponsorship services provided to any Body corporate or partnership firm	Any person	Any Body Corporate or partnership firm located in taxable territory.
5	Services supplied by the Central Government, State Government, Union Territory or local authority to a business entity excluding: Renting of immovable property Services by the Department of Posts by way of speed post, express parcel post, life insurance, and agency services provided to a person other than Central Government Services in relation to an aircraft or vessel, inside or outside the precincts of a port or airport Transport of goods or passengers	Central or State Government, Union Territory, Local Authority	Any Business Entity located in the taxable territory.	Notification No. 32/2017- CT (Rate)
5A	Renting of immovable property services by Central Government, State Government, Union Territory or Local Authority to a person registered under GST	Central or State Government, Union Territory, Local Authority	Any person registered under GST
6	Services supplied by a director of a company or a body corporate to the said company or body corporate	A director	The company or body corporate located in the taxable territory.
7	Services by an insurance agent to any person carrying on insurance business	Insurance Agent	Any person carrying on insurance business
8	Recovery Agent Services to a bank or financial institution or NBFC	Recovery Agent	Bank or Financial Institution or NBFC
9	Copyright services by a music composer, photographer, artist or like relating to original dramatic, musical or artistic works to a music company, producer or the like	Music Composer, Photographer, artist or the like	Music Company, producer or the like located in the taxable territory	Amended in Notification No. 22/2019- Central Tax (Rate) by segregation of Author of literary works, from Entry 9 to Entry 9A

Notification No. 33/2017- Central Tax (Rate)

Sr. No.	Description of supply of services	Supplier of services	Recipient of services
10	Supply of services by the members of Overseeing Committee to Reserve Bank of India	Members of Overseeing Committee constituted by the Reserve Bank of India	Reserve Bank of India

Notification No. 3/2018- Central Tax (Rate)

Sr. No.	Description of supply of services	Supplier of services	Recipient of services
5A	Renting of immovable property services by Central Government, State Government, Union Territory or Local Authority to a person registered under GST	Central or State Government, Union Territory, Local Authority	Any person registered under GST

Notification No. 15/2018- Central Tax (Rate)

Sr. No.	Description of supply of services	Supplier of services	Recipient of services
11	Supply of services by individual Direct Selling Agents (DSA) other than a body corporate, partnership or LLP to a bank or NBFC	Individual DSA other than a body corporate, partnership or LLP to a bank or NBFC	Banking company or NBFC located in taxable territory

Notification No. 29/2018- Central Tax (Rate)

Sr. No.	Description of supply of services	Supplier of services	Recipient of services
12	Services provided by a business facilitator to a banking company	Business Facilitator	Banking company located in taxable territory
13	Services provided by an agent of business correspondent to business correspondent	An agent of business correspondent	Business Correspondent located in taxable territory
14	Security services (by way of supply of security personnel)	Any person other than body corporate	Registered Person

Notification 5/2019 – CT (Rate)

Sr. No.	Description of supply of services	Supplier of services	Recipient of services
5B	Transfer of development rights or Floor Space Index (FSI) (including additional FSI) for construction of a project	Any Person	Promoter
5C	Long Term Lease (30 years or more) by any person against consideration in the form of upfront amount (called as premium, salami, cost, price, development charges or by any other name) and/ or periodic rent for construction of a project by a promoter.	Any Person	Promoter

Notification 22/2019 – CT (Rate)

Sr. No.	Description of supply of services	Supplier of services	Recipient of services	Remarks
9A	Supply of services by an author by way of transfer or permitting the use or enjoyment of a copyright covered under the Copyright Act, 1957 relating to original literary works to a publisher	Author of original literary work	Publisher located in the taxable territory.	RCM not applicable if Author takes GST registration and gave declaration as to GST payment on FCM basis
15	Services provided by way of renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient	Any person other than a body corporate , paying central tax at the rate of 2.5% on renting of motor vehicles with input tax credit only of input service in the same line of business	Any Body-corporate located in the taxable territory	Amended in Notification 29/2019 – CT (Rate) “Any person, other than a body corporate who supplies the service to a body corporate and does not issue an invoice charging central tax at the rate of 6% to the service recipient.”
16	Services of lending of securities under Securities Lending Scheme, 1997 of SEBI	Lender i.e. a person who deposits the securities registered in his name or in the name of any other person duly authorized on his behalf with an approved intermediary for the purpose of lending under the scheme of SEBI	Borrower i.e. a person who borrows the securities under the scheme through an approved intermediary of SEBI

List of Services under RCM as per IGST Act, 2017 (other than the above)

Notification No. 10/2017- Integrated Tax (Rate)

Sr. No.	Description of supply of services	Supplier of services	Recipient of services
1	Any service supplied by any person who is located in a non-taxable territory to any person other than non-taxable online recipient	Any person located in a non-taxable territory	Any person located in the taxable territory other than non-taxable online recipient.
10	Services supplied by a person located in non- taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India	A person located in nontaxable territory	Importer, as defined in clause (26) of section 2 of the Customs Act, 1962(52 of 1962), located in the taxable territory.

List of Goods & Services under RCM u/s 9(4) of CGST Act, 2017 when received from an unregistered supplier

Notification No. 7/2019- Integrated Tax (Rate)

Sr. No.	Description of supply of services	Recipient of services
1	Supply of such goods and services or both [other than services by way of grant of development rights, long term lease of land (against upfront payment in the form of premium, salami, development charges etc.) or FSI (including additional FSI)] which constitute the shortfall from the minimum value of goods or services or both required to be purchased by a promoter for construction of project, in a financial year (or part of the financial year till the date of issuance of completion certificate or first occupation, whichever is earlier) as prescribed in notification No. 11/ 2017-Central Tax (Rate)	Promoter
2	Cement falling in chapter heading 2523 in the first schedule to the Customs Tariff Act, 1975 (51 of 1975) which constitute the shortfall from the minimum value of goods or services or both required to be purchased by a promoter for construction of project, in a financial year (or part of the financial year till the date of issuance of completion certificate or first occupation, whichever is earlier) as prescribed in notification No. 11/ 2017-Central Tax (Rate),	Promoter
3	Capital goods falling under any chapter in the first schedule to the Customs Tariff Act, 1975 (51 of 1975)supplied to a promoter for construction of a project on which tax is payable or paid at the rate prescribed for in notification No. 11/ 2017-Central Tax (Rate),	Promoter