Levy and collection
Section 9, CGST Act
Straight from CBIC
Official source, not a summary of a summary
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Amendment history
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In one line
Section 9 is the CHARGING section – it levies CGST on all intra-State supplies (except alcohol for human consumption) at notified rates on the transaction value, collected from the supplier. It also fixes REVERSE CHARGE (9(3)/(4)) where the recipient pays, and makes notified e-commerce operators liable for certain services (9(5)). Petroleum products are to be taxed from a future notified date.
What this means in practice
The parts that actually decide cases — the things a practitioner checks first.
The maximum rate in section 9(1) was raised to forty per cent by the Finance (No.2) Act 2025, which is what allows the 40 per cent demerit slab notified on 22-09-2025.
9(3) reverse charge applies to notified supplies – GTA, legal services from an advocate, sponsorship, director’s services, security services, renting of motor vehicles and others in Notification 13/2017-Central Tax (Rate).
9(4) reverse charge on purchases from unregistered persons is confined to notified classes of registered recipients – it is not a general levy.
9(5) makes the e-commerce operator liable as if it were the supplier for notified services – passenger transport, accommodation, housekeeping and restaurant service through the platform (Notification 17/2017-CTR as amended by 17/2025).
Alcoholic liquor for human consumption is permanently outside; petroleum crude, high speed diesel, petrol, natural gas and ATF are inside the Act but not yet notified for levy.
Questions people actually ask
Real questions we get on this provision, answered straight.
We pay rent to an unregistered landlord for our office. Is reverse charge due?+
Renting of commercial property by an unregistered person to a registered person was brought under reverse charge from 10-10-2024. Check the current entry in Notification 13/2017-CTR for the exact scope before applying it, and remember the self-invoice must be issued within thirty days under Rule 47A.
How this provision is built
The skeleton, clause by clause — useful when a notice cites a specific sub-clause.
The exact words of the law
2,881 characters, uneditedReproduced from the CBIC text. We explain it above — but you should always be able to read it yourself.
Read the full provision+
(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 2 [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) 1 [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.
High Court cases on this section
Judgments in our index that cite this provision. Being listed does not make a case good law — it may have been appealed or distinguished since. Read it before relying on it.
AEROCOM CUSHIONS PVT. LTD., NAGPUR v. ASSISTANT COMMISSIONER (ANTI-EVASION), CGST AND CX, NAGPUR-1, COMMISSIONERATE, NAGPUR AND AN
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M/S.KANDAN HARDWARE MART v. THE ASSISTANT COMMISSIONER (ST) (FAC)
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Kundan Singh v. The Superintendent of CGST and central Excise,
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P.M.S. TRANSPORTS, v. THE STATE TAX OFFICER
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Shri Chakra Agencies v. State Tax officer
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M/s.Samy Traders v. State Tax Officer
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Tvl.PMS Transports v. THE STATE TAX OFFICER,
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Sri Avantika Contractors (I) Limited, v. Appellate Authority for Advance Ruling (GST),
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What changed, and when
The amendment trail, newest first — because the version that applies to your case depends on the period.
date not stated · Inserted
Inserted by section 114 of The Finance Act (No. 2) Act, 2024 No. 15 of 2024 dated 16.08.2024 …
Where this comes from
Text reproduced from the Central Board of Indirect Taxes and Customs, as available on 2026-09-05. The explanation and practice notes above are GSTZone’s own, written for this hub. If you spot anything out of date, tell us and we’ll fix it — this hub is checked daily against CBIC.
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