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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.
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Section 9(1) Intra-State Supply
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there shall be levied a tax called the CGST
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Section 9(2) Intrastate supply of petroleum products
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The central tax on the supply of
Shall be levied with effect from such date as may be notified by the Government on the recommendations of the Council. |
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Section 9(3) REVERSE CHARGE MECHANISM
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The Government may, via notification,
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. |
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Section 9(4)
Reverse charge – Unregistered Supplier |
The Government may, via notification,
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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 |
| 1 | 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
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| 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:
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Central or State Government, Union Territory, Local Authority | Any Business Entity located in the taxable territory. | Notification No. 32/2017- CT (Rate)
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| 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 |
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