Services Notified under Section 9(5) of CGST Act 2017

What is Section 9(5) of CGST Act?

Section 9(5) of CGST Act mainly relates with the E-commerce Operators. On Supply of services taxes are required to be paid like housekeeping services, passenger transport services, accommodation services and restaurant services. If services are provided throught E-Commerce then they are considered as supplier and they will be liable to pay the tax. They must appoint the representative to take the tax liability.

Section 9(5) of CGST Act make e-commerce to get the compulsory GST Registration inspite of the turnover. Get help from Professional Utilities to solve any problem related to the GST.

 

Table Of Content

 

What is the section 9(5) of cgst act?

Section 9(5) of GGST Act is defined as output tax which e-commerce who is not the actual supplier will pay. GST Provision is applicable on the E-Commerce as he is liable to pay the tax as supplier of the services.

 

GST Registration under section 9(5) of CGST Act

E-commerce who is supplying service to the actual supplier need to get GST Registration regardless of the limit of the turnover during the financial year.

The actual supplier have to get the GST Registration if turnover does not exceeds threshold limit.

 

Supplies notified under section 9(5) of CGST Act 

List of the notified services under section 9(5) of cgst act as mentioned below - 

• Service of the passenger transport - Transportation of the passenger by way of the motor cycle, radio-taxi motorcab, motor cycle and maxicab. 
•  Radio taxi is defined as taxi which is is capable of being tracked using the      

           Global Positioning System (GPS) or General Packet Radio Service (GPRS),         

            and is in two-way radio communication with a central control office.

• Motor cycle , motorcab,omnibus and maxicab described in same manner as in clauses (22), (25), (27), (28) and (29) of section 2 of the Motor Vehicle Act, 1988 (59 of 1988).
• Housekeeping Services - House Keeping services such as carpenting,  plumbing etc such services aer provided by person through electronic commerce operator need to registered under section such as sub-section (1) of section 22 of the said Central Goods and Services Tax Act.
• Accommodation services - Providing accommodation in inn, club, guest house, hotel, compsites or any other commercial places which are intended for lodging purpose or residential besides when services are provided by the person through electronic commerce operator is liable for registration under sub-section (1) of section 22 of the said Central Goods and Services Tax Act. 
• Restaurant service (cloud Kitchen)  - Services which are other than services provided by the eating joints, restaurant etc. suited at the specified premises. Specified premises means Premises providing hotel accommodations are referred to as specified premises if their declared tariff for any unit of lodging exceeds seven thousand five hundred rupees per unit (Rs 7500/- per unit) per day or its equivalent.

 

GST on the restaurant services under section 9(5) of CGST Act 

Under section 9(5) of CGST Act restaurant services refers to the services provided by the cafes, restaurants and alike plus other services such as room services, door delivery of food  and takeaway services.

• Under section 9(5) of CGST Act 2017 E-commerce Operater can not deduct TCS on restaurant services such as 
• Invoices are issued by the  E-commerce Operater while providing restaurant services.
• When restaurant services provided for the unregistered person then E-commerce Operater is liable to pay the taxes.
• Supplies to the E-commerce Operater are not considered as the input as ECO is not the receipent of the services.

 

Conclusion 

Section 9(5) of CGST Act E-commerce provide the service such as accommodation, passenger transport services, housekeeping and restaurant borne the liability under GST. There are different services which are provided by the E-Commerce operator like Service of the passenger transport, Housekeeping Services, Accommodation services and Restaurant service (cloud Kitchen). Under section 9(5) of CGST Act eco need to get the compulsory registration.