Section 9(5) notified services and the platform as deemed supplier
A provision that moves the liability to the platform for services the platform never supplied.
Section 9(5) empowers the Government to notify categories of services supplied through an electronic commerce operator where the tax shall be paid by the operator as if it were the supplier. The notified categories include passenger transportation by radio taxi and similar means, accommodation in hotels and similar establishments where the person supplying is not liable to register, housekeeping services where the supplier is not liable to register, and restaurant service supplied through the platform other than at specified premises. For those supplies the operator pays the tax and the actual supplier does not.
The consequences for the platform
The operator pays the tax as if it were the supplier, on the value of the service, at the rate applicable to that service.
TCS does not apply to those supplies, because the operator is the person liable.
The operator cannot generally use credit against the Section 9(5) liability in the manner it might for its own supplies, and the position on credit utilisation for these supplies must be examined against the current rules and clarifications.
Invoicing obligations shift, and the operator must issue the invoice for the service in the manner prescribed.
Reporting is separate in the return, and the reconciliation between Section 9(5) supplies and TCS supplies must be clean.
The consequences for the supplier
The restaurant, the driver or the accommodation provider does not pay tax on the supply made through the platform, and must not charge it.
It must still report the turnover in its own return as a supply on which the operator pays tax, in the manner prescribed, so that its turnover reconciles.
Credit on inputs used for those supplies is affected, and the position depends on the rate structure applicable to the service.
A supplier that charges tax on a Section 9(5) supply collects tax it was not liable to collect, which creates a refund and unjust enrichment problem.
The boundary questions
Whether the platform is an electronic commerce operator for the transaction at all, which turns on whether it owns, operates or manages the platform and whether the supply is made through it.
Whether the supplier is a person liable to register, which determines the applicability for accommodation and housekeeping.
For restaurant service, whether the premises are specified premises, which takes the supply outside Section 9(5).
Aggregators that also supply their own services, where the classification has to be made transaction by transaction.
What to do on Monday
Map every service category on the platform against the Section 9(5) notification, and record the mapping.
Configure the system so Section 9(5) supplies are excluded from the TCS base automatically.
Tell suppliers in writing not to charge tax on Section 9(5) supplies, and how to report them.
Reconcile Section 9(5) and TCS reporting monthly so no supply falls into both or neither.
This page states the general position. A reader with a specific question on their own facts may write to the GST practice at AMLEGALS.
Write to the GST practiceQuestions we are asked on this
Does the restaurant charge tax on a delivery platform order?
For restaurant service through the platform other than at specified premises, the platform pays and the restaurant does not charge.
Does TCS apply as well?
No. Section 9(5) supplies are excluded from the TCS base.
Must the supplier still report the turnover?
Yes, in the manner prescribed, as a supply on which the operator pays the tax.
What if the supplier is registered and supplies accommodation?
The accommodation entry applies where the supplier is not liable to register. Where it is registered and liable, the ordinary rules apply.
Can the platform use credit against this liability?
The position on credit utilisation for Section 9(5) supplies must be examined against the current rules and clarifications.
In this cluster
- GST for electronic commerce operators: the complete obligation set
- Section 52 tax collection at source: collection, credit and mismatch disputes
- Cloud kitchens, food delivery and the restaurant service fiction
- Ride hailing, aggregators and the driver's registration question
- Marketplace sellers: registration, warehouse states and returns
- Coupons, cashbacks and platform funded discounts
- Convenience fees, delivery charges and composite supply on platforms
- Cross border digital supplies and the OIDAR overlap
- Influencer, creator and affiliate income under GST
GST Insights is published by AMLEGALS for general information. Law stated as on 3 September 2026. Not advice on any particular set of facts; not an advertisement or a solicitation under Rule 36 of the Bar Council of India Rules. Readers with a question on their own facts may write to the GST practice of their own accord.