Section 9(5)-GST for supply of notified services

As we know certain services are added in list of notified services w.e.f 01.01.2022 so let us discuss Section  9(5) of CGST Act, 2017 in simplified manner-

Section 9(5) deals with taxability of supply of services –output tax of which shall be paid by e-commerce operator even though e-commerce operator is not the actual supplier.

E-commerce liable to comply with GST provisions as if he is supplier of services and liable to pay tax .

In case services are notified u/s 9(5), actual supplier of services need not required to get registration even if turnover exceeds threshold limit.

List of services notified under section 9(5)

1. Passenger Transport Service-Services by way of transportation of passengers by a radio-taxi, motorcab, maxicab and motor cycle;

With effect from 1st January 2022, the scope of Passenger Transport Service expanded to include service provided through Omnibus and any other motor vehicle. (N/N 17/2021 dated 18.11.2021)

Explanations:-

(a) “radio taxi” means a taxi including a radio cab, by whatever name called, which is in two-way radio communication with a central control office and is enabled for tracking using Global Positioning System (GPS) or General Packet Radio Service (GPRS);

(b) “maxicab”, “motorcab”, motor cycle, motor vehicle and omnibus shall have the same meanings as assigned to them respectively in clauses (22), (25), (27), (28) and (29) of section 2 of the Motor Vehicle Act, 1988 (59 of 1988).

2. Accommodation Services : Services by way of providing accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes, except where the person supplying such service through electronic commerce operator is liable for registration under sub-section (1) of section 22 of the said Central Goods and Services Tax Act.

3. Housekeeping Services: Services by way of house-keeping, such as plumbing, carpentering etc, except where the person supplying such service through electronic commerce operator is liable for registration under sub-section (1) of section 22 of the said Central Goods and Services Tax Act.

4. Restaurant Services (Cloud Kitchen) :- Supply of restaurant service other than the services supplied by restaurant, eating joints etc. located at specified premises.

“Specified premises means premises providing hotel accommodation service having declared tariff of any unit of accommodation above seven thousand five hundred rupees per unit (Rs 7500/- per unit) per day or equivalent.”

This service is added with effect from 1st January 2022 vide N/N 17/2021 dated 18.11.2021

Certain clarifications also issued-

• Restaurant is supplying services through E-COM only, he is not required to get registered under GST. In case, he is already registered, he may continue with such registration or get them de-registered under GST.
• Reporting for registered persons supplying restaurant services through E-COM in GSTR-1-

Table No 8 of GSTR-1

Reporting in GSTR-3B

Table 3.1 (c) of GSTR-3B,

Besides, ECO may also, for the time being, furnish the details of such supplies of restaurant services under section 9(5) in Table 7A(1) or Table 4A of GSTR-1, as the case maybe, for accounting purpose.

• ‘Restaurant service’ and goods or services other than restaurant service sold by a restaurant to a customer under the same order be billed differently AS Invoice for non –restaurant services shall be issued by respective supplier only.
• The liability of payment of tax by ECO as per section 9(5) shall be discharged in cash.
• Aggregate turnover of person supplying restaurant service through ECOs shall be computed as defined in section 2(6) of the CGST Act,2017 and shall include the aggregate value of supplies made by the restaurant through ECOs. Accordingly, for threshold consideration or any other purpose in the Act, the person providing restaurant service through ECO shall account such services in his aggregate turnover.