Page 17 - Ch3_RCM

Ü The promoter i.e. M/s Goyal Ganga is liable to pay GST under reverse charge @18% on ₹

84,000 as under:-
CGST = ₹ 7560/- (₹ 84000 *9%)
SGST = ₹ 7560/- (₹ 84000 *9%)
2 Ü M/s Goyal Ganga (the promoter) is liable to pay GST on entire cement purchased from an
unregistered supplier.

05. Section 9(5):- Liability of Electronic Commerce Operator (ECO)

CCP 03.05.19.00
A hotel owner provided accommodation in Haryana, through an electronic commerce operator Cool
Trips. The hotel owner is not liable to get registered as per the provisions of section 22(1) of the CGST
Act. Who is the person liable to pay GST in this case? Would your answer be different if the
Electronic Commerce Operator Cool Trips does not have a physical presence in India?

Answer:
Legal Provision:-
Ü On recommendation of Council, Government notified specific categories of services the tax on intra
state or inter State supplies of which shall be paid by electronic commerce operator (ECO), if such

services are supplied through it.
Ü One of such services as per section 9(5) of CGST Act, 2017, is as under:-
Services by way of providing accommodation in hotels meant for residential or lodging purposes,
except where person supplying such services through ECO is liable for registration under section 22(1)

of CGST Act.
Discussion & Conclusion:-
Ü In view of above provision, person liable to pay GST in this case is the ECO - Cool Trips as the hotel
owner is not liable to get registered under section 22(1) of the CGST Act & also supplying its services

through ECO.
Ü All the provisions of the GST law shall apply to such ECO as if he is the supplier liable for paying the tax in
relation to the supply of such services.
Ü If Cool Trips does not have a physical presence in India, person liable to pay tax is the person
representing the ECO -Cool Trips for any purpose in India.

CCP 03.05.20.00
Mr. X wants to Open Cloud Kitchen and supply restaurant services only through Swiggy. The
restaurant owner- Mr. X is not liable to get registered as per the provisions of section 22(1) of the

CGST Act. Answer the following questions:-
1. Who is liable to pay tax in this case.
2. Whether ECO (i.e Swiggy) is required to collect TCS on the supply made by Mr. X.
3. Can ECOs use ITC to pay tax on restaurant services supplied through ECO?
Answer:

Legal Provision:-
Ü On recommendation of Council, Government notified specific categories of services the tax on intra
state or inter State supplies of which shall be paid by electronic commerce operator (ECO), if such
services are supplied through it.

CA VISHAL BHATTAD 09850850800 www.vsmartacademy.com V’Smart Academy 45