Provisions under Section 9 of the CGST Act, 2017 relating to “Levy and Collection”:
Bare text of Section 9
Levy and Collection [*1]
(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 and un-denatured extra neutral alcohol or rectified spirit used for manufacture of alcoholic liquor, for human consumption, [*3] 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.
(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.
(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.
(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. [*2]
(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:
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:
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.
Bare Text Amendments History
1. CGST Section 9 introduced vide GOI Notification dated 12/04/2017, followed with CBEC Notification 9/2017 on commencement date of 01/07/2017.
2. Sub-section (4) substituted, vide Section 4 of the CGST (Amendment) Act, 2018, followed with Notification 2/2019 on commencement date of 01/02/2019. Please refer Notification dated 12/04/2017 for text thereof before substitution.
3. In sub-section (1), the text “and un-denatured extra neutral alcohol or rectified spirit used for manufacture of alcoholic liquor, for human consumption” inserted after the text “alcoholic liquor for human consumption” vide Section 114 of the Finance Act (No. 2) 2024, followed with Notification 17/2024 on commencement date of 01/11/2024.
Commentary on Section 9 of CGST Act 2017
Section 9 is the charging provision for central GST. It creates the statutory levy, prescribes the taxable event, identifies the person liable to pay tax, and provides enabling authority for special mechanisms such as reverse charge and e-commerce operator liability. Every CGST demand ultimately traces its legal origin to this section.
Sub-section (1): Charging Provision for CGST
This sub-section levies central goods and services tax (CGST) on:
All intra-State supplies of goods or services or both
Except:
alcoholic liquor for human consumption, and
un-denatured extra neutral alcohol or rectified spirit used for manufacture of alcoholic liquor for human consumption
Key Elements
Taxable event: Intra-State supply
Valuation: As per Section 15
Rate ceiling: Not exceeding 20% CGST
Rate notification: By Government on recommendation of the Goods and Services Tax Council
Person liable: Taxable person supplying goods or services
Legal Significance
This provision:
Establishes CGST as a statutory levy
Constitutionally aligns with Article 246A
Makes rate notifications and valuation rules subordinate to the Act
The exclusion of alcoholic liquor and specified alcohol products preserves the constitutional exclusion of State excise powers from GST.
Sub-section (2): Deferred Levy on Petroleum Products
This sub-section covers:
petroleum crude
high speed diesel
motor spirit (petrol)
natural gas
aviation turbine fuel
CGST on these products shall be levied only from a date to be notified on GST Council recommendation.
Practical Effect
These products remain outside GST until notified.
Existing central excise and VAT regimes continue to apply.
Ensures fiscal stability for States and Centre.
This is a dormant charging provision, not an exemption.
Sub-section (3): Reverse Charge on Notified Supplies
This enables the Government to notify categories of supplies where CGST is payable by the recipient, instead of the supplier.
Key Features
Applicable to both goods and services
Recipient deemed to be the person liable for tax
All provisions of CGST Act apply to the recipient
Practical Usage
This sub-section is widely used for:
specified services (e.g., legal services, GTA services)
ensuring tax collection from organised recipients
Reverse charge under this clause is supply-specific, not supplier-specific.
Sub-section (4): Reverse Charge on Supplies from Unregistered Suppliers
Post amendment, this sub-section authorises the Government to:
notify a class of registered persons, and
specify categories of supplies received from unregistered suppliers,
on which tax shall be paid by the recipient.
Post-2018 Position
Blanket reverse charge on all unregistered purchases removed
Reverse charge applies only when specifically notified
Compliance Impact
This amendment reduced compliance burden on small suppliers and prevented unnecessary reverse charge exposure for routine purchases.
Sub-section (5): Tax Liability on Electronic Commerce Operators
This sub-section shifts CGST liability to the electronic commerce operator (ECO) for notified categories of services supplied through its platform.
Core Rule
The ECO is treated as the deemed supplier for tax purposes.
Provisos – Non-resident Operators
If ECO has no physical presence in India → local representative liable
If no representative → ECO must appoint a person in India
Rationale
Ensures tax collection in platform-based service models
Prevents revenue leakage in digital economy
Overrides traditional supplier-recipient tax logic
This provision operates independently of reverse charge.
Practical and Litigation Significance
Section 9 is central to disputes involving:
validity of levy
scope of intra-State supply
reverse charge applicability
liability shifts to recipients or e-commerce operators
taxability of petroleum and alcohol-related products
Any GST demand failing to satisfy Section 9 conditions is void at inception.
Section 9 gives GST its statutory force. Through carefully structured sub-sections, it balances constitutional limits, federal consensus, revenue certainty, and modern business models. Correct interpretation of this section is fundamental for levy sustainability, compliance structuring, and litigation strategy under the CGST law.
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