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[F. No. 334/1/2017-TRU]
Government of India
Ministry of Finance
(Department of Revenue)
New Delhi, the 28th June, 2017
Notification No. 14/2017 - Integrated Tax (Rate): To notify the categories of services the tax on inter-State supplies of which shall be paid by the electronic commerce operator.
GST: [TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
G.S.R......(E).- In exercise of the powers conferred by sub-section (5) of section 5 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), the Central Government, on the recommendations of the Council, hereby notifies that in case of the following categories of services, the tax on inter-State supplies shall be paid by the electronic commerce operator –
- services by way of transportation of passengers by a radio-taxi, motorcab, maxicab and motor cycle;
- services by way of providing accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes, except where the person supplying such service through electronic commerce operator is liable for registration under clause (v) of section 20 of the Integrated Goods and Services Tax Act, 2017 read with sub-section (1) of section 22 of the said Central Goods and Services Tax Act.
Explanation.- For the purposes of this notification,-
- “radio taxi” means a taxi including a radio cab, by whatever name called, which is in two- way radio communication with a central control office and is enabled for tracking using Global Positioning System (GPS) or General Packet Radio Service (GPRS);
- “Maxi cab”, “motorcar” and “motorcycle” shall have the same meanings as assigned to them respectively in clauses (22), (25) and (26) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988).
2. This notification shall come into force with effect from the 1st day of July, 2017.
(Ruchi Bisht)
Under Secretary to the
Government of India
📚 Frequently Asked Questions (FAQs): Notification No. 14/2017 — Integrated Tax (Rate)
Q1: What is Notification 14/2017 IGST?
Answer: It shifts GST liability to e-commerce operators.
For certain services like cab rides and hotel bookings, the operator pays GST instead of the supplier.
Q2: Who pays GST in this case?
Answer: The e-commerce operator.
This is a special provision overriding normal GST rules.
Q3: Does it apply to all online services?
Answer: No.
Only specific services notified by the government are covered.
Q4: Are cab drivers required to pay GST?
Answer: No, in most cases.
The operator pays GST for services like radio taxi.
Q5: What about hotel bookings?
Answer: Depends on conditions.
If supplier is liable for registration, rules may differ.
Q6: Is this applicable for intra-state supply?
Answer: Similar provisions exist under CGST.
This notification specifically deals with IGST (inter-state).
Q7: What is the benefit of this rule?
Answer: Simplifies compliance.
Small suppliers don’t have to handle GST directly.
Q8: What is the biggest risk?
Answer: Misunderstanding applicability.
Applying it incorrectly can lead to tax issues.
Q9: Do suppliers need GST registration?
Answer: In some cases, no.
But it depends on their turnover and service type.
Q10: What records should be maintained?
Answer: All transaction details.
Even if operator pays tax, supplier must maintain records.
Q11: Is TCS applicable here?
Answer: Different concept.
TCS under GST is separate from this liability shift.
Q12: Can operator recover GST from supplier?
Answer: Commercially yes, legally operator pays.
Business arrangements may vary.
Download PDF: Notification No. 14/2017 — Integrated Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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