Chapter III - Levy and collection of tax
Section 9
Section 9: Levy and collection of CGST
Section 9 is the principal CGST charging provision. It levies central tax on covered intra-State supplies, and it also permits notified reverse-charge categories and specified e-commerce operator liability.
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Need advice on Section 9?
This article is for general information. Refer to the Central Goods and Services Tax Act, 2017 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(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, 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.
(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.
Introduction
The Act sets the charging framework, while the current rate, exemption and reverse-charge details depend on separate notifications. A business should therefore identify the supply and its location first, then check the notification applicable to the exact goods or services and date.
Key takeaways
Intra-State supply is the normal CGST base
Section 9(1) levies CGST on covered intra-State supplies on value determined under section 15, at notified rates within the statutory ceiling.
Specified products sit outside or await a notified date
Alcoholic liquor for human consumption and the specified undenatured extra neutral alcohol/rectified spirit are excluded by section 9(1). Petroleum crude, high-speed diesel, petrol, natural gas and aviation turbine fuel are subject to section 9(2)'s notified-date mechanism.
Reverse charge is notification-specific
Under section 9(3), specified supply categories can put tax liability on the recipient; section 9(4) permits specified classes of registered recipients for specified purchases from unregistered suppliers.
Some platforms pay as deemed supplier
Section 9(5) can put liability on an e-commerce operator for notified categories of services supplied through it.
Find the charge and correct tax
Confirm that section 7 treats the transaction as a supply, then determine under the IGST Act whether it is intra-State. If so, section 9 is the CGST charge; the applicable SGST or UTGST law and notifications also need review.
Value, rate and product exceptions
Use section 15 for taxable value. Check the exact current rate and exemption notifications; section 9 does not itself set a rate for every product or service. Apply the express alcohol exclusion and the special notified-date rule for listed petroleum products.
Who pays: supplier, recipient or platform
The taxable person normally pays under section 9(1). For notified reverse-charge supplies under subsections (3) or (4), identify the recipient liability and supporting invoice/payment process. For notified services supplied through an e-commerce operator, test subsection (5).
Practical checklist
Do
- Document place-of-supply and intra-State classification.
- Check current rate, exemption and reverse-charge notifications for the exact supply date.
- Record why the supplier, recipient or platform is the liable person.
Avoid
- Apply reverse charge to all purchases from unregistered suppliers.
- Read the statutory rate ceiling as the rate actually payable.
- Assume every platform transaction falls within section 9(5).
Glossary
- Reverse charge
- A statutory arrangement where the recipient pays tax on a notified supply instead of the supplier.
- Intra-State supply
- A supply whose location and place-of-supply satisfy section 8 of the IGST Act, subject to its exclusions.
- Electronic commerce operator
- A person owning, operating or managing a digital/electronic facility or platform for electronic commerce, as defined in section 2(45).
Frequently asked questions
Does section 9 itself state the GST rate for my product?
No. It authorises notified rates within the statutory ceiling; the applicable rate notification must be checked.
Does buying from any unregistered person always trigger reverse charge?
No. Section 9(4) requires the Government to notify the relevant class of registered recipients and specified categories of goods or services.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026