Section 9 – Levy and collection

- February 05, 2026

Section 9 of CGST Act, 2017 – Levy and Collection of Central Tax

Updated on: February 2026 (as amended and applicable till date)
Prepared by: Yours Tax Consultant

1. Bare Act Text – Section 9 (Effective Provisions)

Section 9(1):
There shall be levied a tax called the central goods and services tax (CGST) on all intra-State supplies of goods or services or both, 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.

Section 9(2):
CGST on petroleum crude, high speed diesel, motor spirit (petrol), natural gas and aviation turbine fuel shall be levied from such date as may be notified by the Government.

Section 9(3):
The Government may notify categories of supply of goods or services on which tax shall be paid on reverse charge basis by the recipient of such supply.

Section 9(4):
Tax on supplies received by a registered person from an unregistered supplier shall be paid by such person on reverse charge basis, to the extent notified.

Section 9(5):
In respect of specified services supplied through an electronic commerce operator, the operator shall be liable to pay tax as if he is the supplier.

2. Meaning and Scope of Levy under Section 9

Section 9 is the charging section of the CGST Act. No GST can be levied unless it is supported by Section 9.

GST liability arises only when:

There is an intra-State supply
The activity qualifies as supply under Section 7
The value is determined under Section 15
The rate is notified by Government

3. Intra-State Supply – Core Requirement

CGST is applicable only on intra-State supplies.

Inter-State supplies are taxable under the IGST Act. Therefore, determination of place of supply is critical.

4. Reverse Charge Mechanism (RCM) – Section 9(3) & 9(4)

🔹 Section 9(3) – Notified Supplies

Under this provision, the recipient is liable to pay CGST on notified goods or services, such as:

Legal services by advocates
Goods transport agency services
Security services (in specified cases)

🔹 Section 9(4) – Supplies from Unregistered Persons

RCM under Section 9(4) applies only to notified cases.

At present, it is mainly applicable to:

Promoters in real estate projects
Specific notified transactions

5. E-commerce Operator Liability – Section 9(5)

In specified services supplied through an e-commerce operator, the operator is deemed to be the supplier.

Examples include:

Passenger transportation services
Accommodation services
Housekeeping services

This provision overrides the general charging mechanism.

6. Section 9 Read with Relevant CGST Rules

Levy and collection under Section 9 must be read together with the following CGST Rules:

7. Notifications and Rate of Tax

Rates of CGST are not specified in the Act itself. They are notified through rate notifications issued under Section 9(1).

Any tax demand without a valid rate notification is legally unsustainable.

8. Litigation Aspects of Section 9

Common disputes under Section 9 include:

Wrong levy on non-supply transactions
Incorrect invocation of reverse charge
Levy without valid rate notification
Wrong classification of intra-State vs inter-State supply

Courts have consistently held that charging provisions must be strictly construed.

9. Related Provisions

10. Professional Tip

Always test a GST demand on the foundation of Section 9. If there is no valid levy, rate notification or taxable supply, the entire demand collapses, irrespective of computation.

Disclaimer: This article is based on the CGST Act, Rules, notifications and legal position applicable till date. Future amendments or judicial rulings may change the interpretation.

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