Levy and Collection of GST - Section 9 - GST Ready Reckoner - GST

As Per Section 9 Levy Collection CGST Act Levy collection of tax Read With the provisions of section 9(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 [ and un-denatured extra neutral alcohol or rectified spirit used for manufacture of alcoholic liquor, for human consumption (w.e.f. 01.11.2024 vide N.No. 17/2024 dated 27.09.2024) inserted vide Finance (No 2) act, 2024 ] , on the value determined under section 15 and at such rates, not exceeding 20% , 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. [ Section 9(1) of CGST Act ] 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(2) of CGST Act ] For better understanding : CGST along with SGST / UTGST is leviable on intra-State supplies. The maximum rate at which Government can levy CGST is 20%. However currently, the highest rate at which it has been levied is 14% (as decided in the 14th GST council meeting). Alcoholic liquor for human consumption [ and un-denatured extra neutral alcohol or rectified spirit used for manufacture of alcoholic liquor, for human consumption (w.e.f. 01.11.2024 vide N.No. 17/2024 dated 27.09.2024) inserted vide Finance (No 2) act, 2024 ] is outside the ambit of GST. Further petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel is also kept outside GST for the time being, but can be brought under it s regime from such date as may be notified. Case Law K.K. RAMESH VERSUS THE UNION OF INDIA( 2018 (3) TMI 1451 - MADRAS HIGH COURT ) This Court cannot issue any direction for the reason that it is for the Goods and Service Tax council to take a call in that aspect and Section 9(2) of the 'Act' also deals with the Central Tax on the supply of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel. The Goods and Service Tax council is having representation of the State Governments also and therefore, their views have also to be elicited, before the Goods and Service Tax council take a call as to bring the petrol and diesel prices within the ambit of Goods and Service Tax. Specify categories of supply of goods or service on which tax levied under RCM 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. [ Section 9(3) of CGST Act, 2017 ] Category of Supply of Goods on which tax paid under Reverse Charge Notification No. 4/2017-Central Tax (Rate) Dated 28th June, 2017 Category of Supply of Services on which tax paid under Reverse Charge Notification No. 13/2017- Central Tax (Rate) Dated 28th June, 2017 Additional services (Import of Service or goods) on which GST paid under RCM, has been notified by the Central Government Notification No.10/2017-Integrated Tax (Rate) Dated 28-06-2017 Specify the class of person (Recipient of goods or services) who is liable to pay tax under RCM if supplier is unregistered person 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. [ Section 9(4) of CGST Act, 2017 ] Notified / specified class of registered person: Promotors under Real State Sector has been notified for discharging GST under reverse charge method (RCM) where the goods or services have been procured from unregistered person in certain circumstances. - See Notification No. 07/2019- Central Tax (Rate) dated 29-3-2019 Supply of services through an e-commerce operator 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. [ Section 9(5) of CGST Act, 2017 ] Appointment of any representative person, in case of where E-Commerce Operator does not have a physical presence In case, 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: [ First Proviso of section 9(5) of CGST Act, 2017 ] In case, 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. [ Second Proviso of section 9(5) of CGST Act, 2017 ]