Levy, Charge of GST and Reverse Charge
Section 9 is the charging section of GST — the legal spine that levies CGST on intra-state supplies at notified rates, and creates the reverse-charge mechanism (RCM) that shifts the payment obligation to the recipient for notified supplies.
The provision, in plain terms
CGST is levied on all intra-state supplies of goods or services (except alcoholic liquor for human consumption and, per later amendment, un-denatured extra neutral alcohol) at rates notified up to 20% (mirrored by SGST, making 40% the ceiling), collected as prescribed. Petroleum products (crude, petrol, diesel, ATF, natural gas) are within GST's scope but taxed from a date to be notified. Sub-section (3) empowers notification of supplies where tax is payable on reverse charge by the recipient (e.g., GTA services, advocate services, sponsorship, imports of services). Sub-section (4) applies RCM on supplies from unregistered persons to notified classes of registered persons (currently limited categories like promoters). Sub-section (5) makes e-commerce operators liable for notified services supplied through them (passenger transport, accommodation, restaurant services).
Points worth memorising
- Charging section: CGST on intra-state supply, valued under section 15, at notified rates (ceiling 20% CGST).
- Excluded: alcoholic liquor for human consumption; petroleum products deferred until notified.
- 9(3) RCM list: GTA, legal services by advocates, arbitral tribunals, sponsorship, director services to companies, import of services and more.
- 9(4): unregistered-to-registered RCM now limited to notified persons (chiefly real-estate promoters).
- 9(5): e-commerce operator pays tax on notified services (cab aggregators, hotel booking for unregistered hotels, restaurant delivery).
How the exam tests it
Charge-of-GST is an opening chapter in both Intermediate and Final indirect tax papers — RCM lists under 9(3)/9(5) generate recurring MCQs, and every computation question implicitly rides on this section.
Tested at: intermediate · final
Related sections
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Talk to usWhat is reverse charge under GST?
Normally the supplier pays GST; under reverse charge, the recipient pays it directly to the government for notified supplies (section 9(3)) or notified unregistered purchases (9(4)). The recipient can generally claim the tax paid as ITC if otherwise eligible.
Is petrol covered under GST?
Constitutionally within GST's scope, but section 9 defers levy on petroleum crude, petrol, diesel, ATF and natural gas until a date recommended by the GST Council — so they currently remain under excise/VAT.