Section 9 is the CGST charging section — the intra-State twin of section 5 of the IGST Act. Every CGST liability traces to one of its five sub-sections; each State GST Act has a matching charge for State tax.
Key points
- Section 9(1) of the CGST Act, 2017 levies central tax on all intra-State supplies of goods or services at notified rates not exceeding 20%, on the value under section 15; State tax is levied alongside at the same rate under the State GST Acts.
- Alcoholic liquor for human consumption, and from 01.11.2024 un-denatured extra neutral alcohol or rectified spirit used to make it, are outside the charge.
- Central tax on petroleum crude, diesel, petrol, natural gas and aviation turbine fuel is deferred until notified (section 9(2)).
- Reverse charge applies to notified supplies (section 9(3); Notifications 4/2017 for goods and 13/2017 for services) and to notified purchases by a notified class from unregistered suppliers (section 9(4); real-estate promoters, Notification 07/2019).
- For notified services supplied through a platform — passenger transport by motor vehicle (and by omnibus from 20.10.2023, unless the supplier is a company), accommodation, housekeeping, restaurant services other than at specified premises (from 01.01.2022) and local delivery (from 22.09.2025) — the e-commerce operator pays the tax (section 9(5); Notification 17/2017-Central Tax (Rate) as amended).
The provisions
9(1)The charge on intra-State supplies
Statutory text
(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.
*Enforced w.e.f. 1st July 2017.
2. Inserted by section 114 of The Finance Act (No. 2) Act, 2024 No. 15 of 2024 dated 16.08.2024
Case on this provision
Skill Lotto Solutions Pvt Ltd v Union of India
2020 SCC OnLine SC 990 · 2020 INSC 676 · 03.12.2020 · Supreme Court, 3 Judges (Ashok Bhushan, R. Subhash Reddy, M.R. Shah JJ.)
- Facts
- A lottery distributor challenged GST on lottery, arguing that lottery tickets are actionable claims outside the power to tax goods, and that prize money should be excluded from value.
- Held
- Levy upheld: actionable claims are validly included in "goods"; taxing lottery, betting and gambling is a permissible classification; prize money is not deducted from value.
- Here
- The charge under sub-section (1) validly reaches supplies of specified actionable claims.
9(2)Petroleum — deferred
Statutory text
(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.
What it means
The five petroleum products are within GST but untaxed under it until a date is notified on the Council's recommendation. Until then, central excise and State VAT continue to apply to them.
9(3)–(4)Reverse charge
Statutory text
(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.]
1. Substituted for "(4) The central tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient 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." by s. 4 of The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) - Brought into force w.e.f. 01st February, 2019.
What it means
Under sub-section (3) the recipient pays tax on notified categories as if it were the supplier: Notification 4/2017-Central Tax (Rate) for goods (for example raw cashew and tendu leaves from agriculturists, and used vehicles and scrap sold by government) and Notification 13/2017-Central Tax (Rate) for services (for example goods transport agencies, advocates, sponsorship, directors, and most services by government to businesses).
Sub-section (4), as substituted from 01.02.2019, is confined to a notified class of registered persons buying notified supplies from unregistered suppliers. The one operative notification covers promoters of real-estate projects — cement, capital goods and the shortfall below 80% purchases from registered suppliers (Notification 07/2019-Central Tax (Rate)). The original, universal version was suspended from 13.10.2017 until its substitution.
A reverse-charge notification can only shift liability for a supply the section already charges; in Union of India v Mohit Minerals (2022) the Supreme Court refused to allow a reverse-charge levy that split a composite supply.
- Notification 4/2017-Central Tax (Rate) — goods
- Notification 13/2017-Central Tax (Rate) — services
- Notification 07/2019-Central Tax (Rate) — promoters
9(5)E-commerce operator as the supplier
Statutory text
(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.
What it means
For notified services supplied through a platform, the operator pays tax as if it were the supplier. Notification 17/2017-Central Tax (Rate), as amended, now covers: transport of passengers by any motor vehicle other than an omnibus; transport by omnibus, from 20.10.2023 (Notification 16/2023), except where the supplier is a company; accommodation and housekeeping services; restaurant services other than at specified premises, including cloud kitchens, from 01.01.2022 (Notification 17/2021); and local delivery services, from 22.09.2025 (Notification 17/2025). For accommodation, housekeeping and local delivery the operator pays only where the supplier is not liable to register under section 22(1). Supplies taxed on the operator under this sub-section carry no TCS. A foreign operator acts through its representative in India or, failing one, an appointed person.
- Notification 17/2017-Central Tax (Rate)
- Notification 17/2021-Central Tax (Rate) — restaurants from 01.01.2022
- Notification 16/2023-Central Tax (Rate) — omnibus from 20.10.2023
- Notification 17/2025-Central Tax (Rate) — local delivery from 22.09.2025
Statutory text as published on the CBIC tax information portal, as on 03.10.2026; the numbered notes record each amendment. Official source
Common questions
- What is the maximum CGST rate?
- 20% under section 9(1) of the CGST Act; with the matching State tax the combined ceiling is 40%.
- Who pays GST on food ordered through Swiggy or Zomato?
- The e-commerce operator, under section 9(5) of the CGST Act and Notification 17/2017-Central Tax (Rate) as amended from 01.01.2022.
- When must a buyer pay GST on purchases from unregistered suppliers?
- Only if it belongs to a notified class buying notified supplies under section 9(4) — at present, promoters of real-estate projects.
Commentary and case notes checked against the judgments and CBIC sources on 04.10.2026.
What it means