SECTION 9 – LEVY AND COLLECTION OF TAX
(Section 9 of the Central Goods and Services Tax Act, 2017)
1. BARE PROVISION (STRUCTURE OF SECTION 9)
Section 9(1)
CGST shall be levied on all intra-state supplies of goods or services or both, except alcoholic liquor for human consumption, on the value determined under the Act.
Section 9(2)
GST on petroleum products (petrol, diesel, crude oil, natural gas, ATF) will be levied from a date notified by the government.
Section 9(3)
Government may notify certain goods or services where tax is payable by the recipient (Reverse Charge Mechanism).
Section 9(4)
In certain notified cases, registered person pays GST on purchases from unregistered supplier.
Section 9(5)
For certain services supplied through e-commerce platforms, tax is payable by the e-commerce operator.
2. SECTION 9(1) – BASIC LEVY
Easy Explanation
This is the main charging section.
GST is charged when there is intra-state supply.
Both CGST and SGST are charged equally.
Examples
Example 1
A shop in Uttar Pradesh sells goods worth 10,000 rupees within the state.
GST rate is 18 percent
CGST 9 percent = 900
SGST 9 percent = 900
Example 2
A restaurant provides food services within the state → GST applicable.
Problem-Based Question
A trader sells goods within the same state. What tax applies?
Answer
Both CGST and SGST under Section 9(1)
3. SECTION 9(2) – PETROLEUM PRODUCTS
Easy Explanation
Certain petroleum products are kept outside GST for now.
Government will decide later when GST will apply.
Examples
Petrol and diesel are still taxed under old system (excise and VAT).
Problem-Based Question
Is GST charged on petrol today?
Answer
No, currently excluded under Section 9(2)
4. SECTION 9(3) – REVERSE CHARGE MECHANISM (RCM)
Easy Explanation
Normally supplier pays GST.
But in some cases, recipient pays GST.
Examples
Example 1
A company takes legal services from a lawyer → company pays GST
Example 2
Goods transport agency service → recipient pays GST
Problem-Based Question
A business hires a lawyer. Who pays GST?
Answer
Business pays GST under reverse charge (Section 9(3))
5. SECTION 9(4) – PURCHASE FROM UNREGISTERED PERSON
Easy Explanation
If a registered person buys goods/services from an unregistered person, he may have to pay GST.
Examples
A registered company purchases goods from a small unregistered supplier → company pays GST (if notified)
Problem-Based Question
A registered dealer buys goods from an unregistered seller. Who pays tax?
Answer
Registered dealer pays GST under Section 9(4), if applicable.
6. SECTION 9(5) – E-COMMERCE OPERATORS
Easy Explanation
For certain services, GST is paid by the e-commerce platform, not the service provider.
Examples
Cab booking through app → platform pays GST
Food delivery services → platform may be liable
Problem-Based Question
A customer books a cab through an app. Who pays GST?
Answer
E-commerce operator pays GST under Section 9(5)
7. IMPORTANT CASE LAWS (DETAILED)
1. Mohit Minerals Pvt. Ltd. v. Union of India
Facts
GST was imposed on ocean freight under reverse charge.
Issue
Whether GST can be levied twice on same transaction.
Judgment
Supreme Court held it invalid.
Easy Understanding
Double taxation is not allowed under GST.
Relevance
Important for Section 9(3) (Reverse Charge)
2. Union of India v. VKC Footsteps India Pvt. Ltd.
Facts
Issue related to refund of input tax credit.
Judgment
Court upheld restriction on refund.
Easy Understanding
Government has power to regulate tax collection and refund.
3. Bharat Sanchar Nigam Ltd. v. Union of India
Relevance
Helps understand supply classification, which affects tax levy under Section 9.
8. COMBINED PRACTICAL PROBLEM
A company purchases legal services, buys goods from unregistered supplier, and sells goods within state.
Step 1
Sale within state → Section 9(1) applies
Step 2
Legal service → Section 9(3) reverse charge
Step 3
Unregistered purchase → Section 9(4)
Step 4
If service through app → Section 9(5)
9. KEY FEATURES OF SECTION 9
Tax on intra-state supply
Dual system (CGST + SGST)
Reverse charge mechanism
Special provisions for e-commerce
Petroleum products excluded
10. CONCLUSION
Section 9 is the main charging section of GST. It explains when tax is levied and who is responsible to pay it.
Each clause covers a different situation like normal supply, reverse charge, unregistered suppliers, and e-commerce transactions.
Understanding Section 9 with examples and case laws is essential for solving practical problems in exams.
FINAL EXAM TIP
Write all clauses clearly
Section 9(1) basic levy
Section 9(2) petroleum
Section 9(3) reverse charge
Section 9(4) unregistered supplier
Section 9(5) e-commerce
Add examples, one problem and one case law for full marks.
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