Section 9 is within Chapter III - LEVY AND COLLECTION OF TAX.
This is charging and computation section both. This also provide about exceptions. Methods of computation of taxable amount, rates of tax , levy, and collection are covered or prescribed by way of reference to other provisions within the Chapter III and as usual other provisions will be relevant. The entire Act will be integrated Code and it cannot be restricted to one Chapter.
In all provisions notification by the Government on the recommendations of the Council are crucial. Therefore, if one want to be perfect, notifications in the Gazettee must also be actually obtained and kept for records. Publishers (on line and off line both) will do well to keep all notifications and recommendations ready and handy for future references and make sure that notification has actually been published in the official gazette
Two expressions are used for person liable to pay tax namely ‘taxable person’ and ‘person liable to pay tax’. Significance of both will be important and shall perhaps come into light only in due course of interpretation of all provisions.
This section has till now (last seen on 23.07.2022 at 11:56 hours on this website) been amended only once. The amended and substituted sub-section (4) have also been discussed suitably in this article.
Provisions including Chapter and its heading are important and are reproduced suitably with highlights added and observations are given in tabular form.
CENTRAL GOODS AND SERVICES TAX ACT, 2017
CHAPTER III
LEVY AND COLLECTION OF TAX
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From provisions with highlights
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Observations
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Levy and collection.
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9. (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.
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Charging section for Central Tax by the Central Government on intra state supply of goods and / or services.
This is about intra state supply of goods and / or services. That is supply within state. In such cases Central and Sate Governments both levy tax.
Is subject to sub-section (2) which relates to tax on some specified items of petrol and another exception is provided by using words ‘except on the supply of alcoholic liquor for human consumption’. These are continuing to be taxed by States.
Value will be determined under section 15.
Rates will be notified on recommendation of the GST Council.
Maximum rate will be 20%.
Recommendations of GST Council, and Notifications are crucial. Therefore, validity of the same must be ensured as per law and prescribed procedures. Any defect in them can result into illegal levy.
Liability will be on taxable person.
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(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.
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Tax on petroleum products has not been notified till now.
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(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.
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Reverse Charge Mechanism (RCM) is one of method for levy of tax on receiver of goods and services.
In this sub-section specified and notified categories of goods and /or services will be covered
In such cases receiver will be considered as person liable for paying tax.
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1[(4) The Government may, on the recommendations of the Council, by notification, specify a class of registered persons who shall, in respect of supply of specified categories of goods or services or both 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.]
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As . Substituted vide Central Goods and Services Tax (Amendment) Act, 2018 w.e.f 01-02-2019. Old provision is discussed in foot note.
RCM in respect of a class of registered persons who will be liable to pay in respect of goods and / or services received from an unregistered supplier.
In such cases receiver will be considered as person liable for paying tax.
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(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:
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Tax levied on or through electronic commerce operator .
First of all categories of services are to be specified.
It will be in relation to intra state supply of specified services if such services are supplied through electronic commerce operator.
electronic commerce operator shall be subjected to provisions of Act as if he is the supplier liable for paying the tax.
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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:
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Contingency has been dealt with to impose tax on representative of electronic commerce operator who will be electronic commerce operator.
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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.
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Contingency has been dealt for a situation when electronic commerce operator has not even a representative. In that case a mandatory obligation is imposed to appoint a representative so that he can be made liable to pay tax and make compliances.
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New and old sub-section (4 ) Substituted vide Central Goods and Services Tax (Amendment) Act, 2018 w.e.f 01-02-2019 are compared in the following table with remarks and observations.
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New sub-section (4) w.e.f. 01.02.2019 Material changes are marked in itallic
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Old sub-section till 31.01.2019
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[(4) The Government may, on the recommendations of the Council, by notification, specify a class of registered persons who shall, in respect of supply of specified categories of goods or services or both 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.]
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"(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."
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