Notified Services u/s 9(5) — ECO as Deemed Supplier
# Notified Services u/s 9(5) CGST / 5(5) IGST
Where any of the six notified categories are supplied through an ECO, the ECO is treated as the deemed supplier and pays GST as if it had supplied the service itself. The actual supplier drops out of the tax-collection mechanism for these transactions.
## The Six Notified Service Categories
#
Notified Service
Examples
Important Exception (when supplier — NOT ECO — pays tax)
1
Passenger transport by Radio Taxi / Motor Cab / Maxi Cab / Motor Cycle / any other motor vehicle
Ola, Uber, Rapido
Transport by Omnibus (covered separately at #2)
2
Transport of passenger by Omnibus
—
If the supplier is a company → supplier pays tax
3
Accommodation services in hotel / inn / guest house / club / campsite for residential or lodging
OYO, Airbnb
If supplier is liable to register u/s 22 → supplier pays
4
Housekeeping services (plumbing, carpentry, etc.)
Urban Company
If supplier is liable to register u/s 22 → supplier pays
5
Restaurant services
Zomato, Swiggy
Services from 'Specified Premises' → supplier pays
6
Local Delivery Services
Porter, Dunzo
If supplier is liable to register u/s 22 → supplier pays
## What is a 'Specified Premises'? (Critical for #5 — Restaurant Services)
For a financial year, a premise is 'specified premise' if:
1. Tariff-based test: Hotel accommodation service was provided from that premise in the preceding FY, AND value of supply for any room was > ₹7,500 per day (if tariff isn't per full day, convert to per-day basis).
OR
2. Declaration-based test: The registered person providing hotel accommodation has filed a declaration opting in:
If already registered: declaration filed between 1st January – 31st March of preceding FY.
If applying for registration: within 15 days of acknowledgment of application.
> Why this matters: Restaurant in a 'specified premises' = high-end hotel restaurant — these are excluded from 9(5); the hotel itself charges GST. Standalone or low-tariff hotel restaurants supplied via Zomato/Swiggy = ECO pays.
## Decision Framework for #5 — Restaurant Service via ECO
```
Is the restaurant inside a 'Specified Premises'?
├── YES → Restaurant (supplier) pays GST normally
└── NO → ECO (Zomato/Swiggy) pays GST u/s 9(5)
```
## Quick Memory Aid: Common Carve-Out Pattern
For services 3, 4, and 6 (Accommodation, Housekeeping, Local Delivery), the carve-out is identical: if the supplier is liable to register under Section 22, the supplier pays — not the ECO. This is because once the supplier is a registered taxable person, GST law allows him to discharge tax directly.
Worked example
### Example 1
Example 1 — Zomato Restaurant Order
Mr. A orders food from 'Cafe Delight' (a small, independent restaurant not in any hotel) via Zomato. Bill: ₹500 + GST.
Analysis:
Restaurant service ✓ (#5)
Cafe Delight is NOT in a Specified Premises
Conclusion: Zomato (ECO) pays GST u/s 9(5); Zomato issues the invoice.
### Example 2
Example 2 — Hotel Restaurant via Swiggy
Mr. B orders food from 'Spice Court', a restaurant inside a 5-star hotel where room tariff was ₹12,000/day in FY 2025-26. The order is placed via Swiggy in FY 2026-27.
Analysis:
The hotel premise qualifies as Specified Premises (room tariff > ₹7,500/day in preceding FY).
Restaurant service from specified premises is excluded from 9(5).
Conclusion: Spice Court (the supplier) pays GST. Swiggy collects TCS instead.
### Example 3
Example 3 — Urban Company (Housekeeping)
A registered plumber with turnover of ₹40 lakh provides services via Urban Company.
Analysis:
Housekeeping ✓ (#4)
If the plumber is NOT liable to register u/s 22: Urban Company pays GST u/s 9(5).
If the plumber IS liable to register u/s 22: the plumber pays GST directly.
### Example 4
Example 4 — Rapido Bike Ride
Mr. C books a Rapido bike ride.
Analysis:
Passenger transport via motor cycle ✓ (#1)
No carve-out applies.
Conclusion: Rapido (ECO) pays GST u/s 9(5).
⚠️ Common exam mistakes
Forgetting the 'company' carve-out for omnibus — if an omnibus operator is a company, the company (not ECO) pays.
Applying the ₹7,500/day specified-premises threshold to the CURRENT FY — it's based on PRECEDING FY tariffs.
Missing that the specified-premises declaration window is fixed: 1 Jan – 31 Mar of preceding FY for already-registered persons.
Treating Section 9(5) and TCS as concurrent — they are MUTUALLY EXCLUSIVE. ECO either pays the tax (9(5)) OR collects TCS, never both for the same transaction.
Ignoring that ECO must issue the invoice for 9(5) services — many students assume the underlying supplier issues it.
Adding 9(5) supply value to the ECO's aggregate turnover — it always counts toward the supplier's turnover (even though supplier doesn't pay GST on it).
Bare-Act text Section 9(5) of CGST Act and Section 5(5) of IGST Act · CGST Act, 2017 and Notification No. 17/2017-Central Tax (Rate) · click to expand
Section 9(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...
[Notification No. 17/2017-Central Tax (Rate) dated 28.06.2017, as amended] — notifies for the purpose of Section 9(5): (i) services by way of transportation of passengers by a radio-taxi, motorcab, maxicab, motor cycle, omnibus or any other motor vehicle (with specified exceptions); (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 Section 22(1) of the CGST Act; (iii) services by way of house-keeping, such as plumbing, carpentering etc., except where the person supplying such service through electronic commerce operator is liable for registration under Section 22(1) of the CGST Act; (iv) supply of restaurant service other than the services supplied by restaurant, eating joints etc. located at specified premises.