It has been made clear under sub-section 1 of  section 9 of the GST Act, 2017 that for all intra state supplies of taxable goods or services or both there shall be levied a tax called Central Goods & Service Tax (CGST) on the value as determined under Section 15 of the said act.

It has been clarified that supply of alcoholic liquor for human consumption is kept out of the purview of the same.

Sub-section 2, states that the CGST on crude oil, high speed diesel, aviation turbine, motor spirit(petrol), shall be levied with effect from the date as may be notified by the Government  on the recommendations of Council.

Sub-section 3, sates that Government may by notification, specify categories of supply of goods or services or both, where the tax shall be paid on reverse charge basis by the recipient of such goods or services or both. It clarifies that all the provisions of this Act, shall apply to the recipient as if he is the person liable for paying the tax.

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In sub-section 4, it has been further clarified that the supply of goods or services or both by unregistered person to a registered person, tax in this case shall be paid on the reverse charge basis, i.e. tax is to be paid by the recipient of such taxable goods or services or both, as if he is the person liable to pay tax.

Sub-section 5 deals with the intra-state supply of specific services through electronic commerce operator. It states that if the above stated services are supplied through the electronic commerce operator, then the electronic commerce operator shall be liable for paying tax.

It provides that if the 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

It further provides that if the electronic commerce operator does not have a physical presence in the taxable territory and also he does not have a representative on a said territory, then electronic commerce operator shall appoint a person in the taxable territory for the purpose of paying tax.

Some important definitions:

  1. Section 15: Value of Taxable Supply
  2. “Council: means the Goods and Service Tax Council established under Article 279-A of the Constitution” Section 2(36)
  3. “Reverse Charge: means the liability to pay tax by the recipient of supply of goods or services or both instead of supplier of such goods or services or both sub-section (3) or sub-section (4) of section 9, or under sub-section (3) or sub-section (4) of section 5 of the Integrated Goods and Servaboveabove1Section 15: Value of Taxable Supply
  4. “Council: means the Goods and Service Tax Council established under Article 279-A of the Constitution” Section 2(36)ice Tax Act.”

For further clarification I am providing some notifications.

Title Notification No. Date
CGST on intra-State supplies of certain Services by e-commerce operator Notification No. 17/2017-Central Tax (Rate)/ G.S.R. 696(E) 28/06/2017
CGST: Services under reverse charge mechanism Notification No. 13/2017- Central Tax (Rate)/ G.S.R. 692(E) 28/06/2017
Rates for supply of services under CGST Act, 2017 Notification No. 11/2017-Central Tax (Rate)/ G.S.R. 690(E) 28/06/2017
CGST: List of goods on which tax is payable under Reverse charge Notification No. 4/2017-Central Tax (Rate)/ G.S.R. 676(E) 28/06/2017
CGST Rate Schedule notified under section 9(1) Notification No. 1/2017-Central Tax (Rate)/ G.S.R. 673(E) 28/06/2017

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Qualification: CS
Company: Ayush Sinha & Associates
Location: Allahabad, Uttar Pradesh, IN
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