CGST §9 — Levy and collection (reverse charge basics)

CGST is levied on intra-state supplies at rates notified by Government (5 / 12 / 18 / 28%). REVERSE CHARGE MECHANISM (RCM): recipient pays GST instead of supplier when notified categories are involved — e.g. legal services from advocate, GTA services, services by director to company, RCM on residential rent to registered tenant.

Key points

• §9(1) levies CGST on all INTRA-STATE supplies of goods or services or both (except alcoholic liquor for human consumption, which stays under state VAT) at rates notified by Government on the recommendation of the GST Council.
• Standard slabs: 5%, 12%, 18%, 28% (plus cess on luxury / sin goods).
• §9(3) empowers Government to notify categories of supply on which TAX IS PAID ON REVERSE CHARGE by the RECIPIENT — Notification 13/2017-CT(R) covers: (a) GTA services to specified recipients, (b) legal services by individual advocate / firm of advocates to a business entity, (c) services by ARBITRAL TRIBUNAL to a business entity, (d) sponsorship services by any person to body corporate / partnership firm, (e) services by Government to business (some exclusions), (f) services by a DIRECTOR to the COMPANY in personal / professional capacity (not as employee), (g) recovery agent services to banking company, (h) author / music composer copyright to publisher, (i) since Jul 2022: renting of RESIDENTIAL DWELLING to a REGISTERED person.
• §9(4) (currently suspended for most procurements except notified items like real estate developer's specified inputs) reverses charge when REGISTERED recipient buys from UNREGISTERED supplier.
• §9(5) makes ELECTRONIC COMMERCE OPERATOR pay GST on certain notified intra-supplier services it facilitates (cab aggregators, accommodation, restaurant).

Reference: §9 CGST Act 2017 read with Notification 13/2017-CT(R)