Notification No. 17/2017 - Central Tax (Rate) Explained

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Notification No. 17/2017 - Central Tax (Rate): To notify the categories of services the tax on intra-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 9 of the Central Goods and Services Tax Act, 2017 (12 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 intra-State supplies shall be paid by the electronic commerce operator –

i. services by way of transportation of passengers by a radio-taxi, motor cab, maxi cab and motor cycle;

ii. 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 sub-section (1) of section 22 of the said Central Goods and Services Tax Act.

Explanation.- For the purposes of this notification,-

a. “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);

b. “maxi cab”, “motor cab” and “motor cycle” 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 1^st day of July, 2017

(Ruchi Bisht)
Under Secretary to the
Government of India

📚 Frequently Asked Questions (FAQs): Notification No. 17/2017 – Central Tax (Rate)

Q1: What is Notification 17/2017 in GST?

Answer: It shifts GST liability to ECO.
Certain services supplied via e-commerce platforms are taxed in the hands of the platform.

Q2: What is Section 9(5) in GST?

Answer: It defines ECO liability.
It makes e-commerce operators responsible for paying GST on specified services.

Q3: Which services are covered?

Answer: Taxi and accommodation services.
Only specific categories like passenger transport and certain lodging services are covered.

Q4: Does driver need to pay GST?

Answer: No, in covered cases.
ECO (like Uber/Ola) pays GST instead.

Q5: Are all hotels covered?

Answer: No, only certain cases.
Applies when supplier is not required to register.

Q6: What is ECO in GST?

Answer: Electronic Commerce Operator.
Platforms facilitating supply of services or goods.

Q7: Can both ECO and supplier pay GST?

Answer: No, only one should pay.
Double taxation should be avoided.

Q8: Is GST applicable on all app-based services?

Answer: No, limited scope.
Only notified services fall under this rule.

Q9: Do small service providers need GST registration?

Answer: Not always.
Depends on applicability of Section 9(5).

Q10: What is a radio taxi?

Answer: GPS-enabled taxi service.
Defined under Motor Vehicles Act.

Q11: Is this still applicable?

Answer: Yes, with updates.
Always check latest notifications.

Q12: Can wrong application lead to penalty?

Answer: Yes, it can.
Incorrect GST treatment leads to demand notices.

Q13: Who benefits from this?

Answer: Small service providers.
They avoid GST compliance burden.

Q14: Does this affect pricing?

Answer: Slightly, yes.
GST is factored into platform pricing.

Q15: Where to get GST help?

Answer: Professional help is useful.
Many businesses rely on experts for compliance.

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