E-COMMERENCE & GST
This industry has increasing rapidly. If a person has doing its business through its own website then whether such transaction falls under E-Commerce? Whether he is required to do the registration in GST? This all issues are discussed in this article. There is a thin line of difference between E-Commerce Operator (ECO), E- Commerce Vendor, E-Commerce seller.
In E-Commerce business, while doing any transaction three people is involved i.e. E-Commerce operator, E- Commerce Vendor, and buyer
- E-Commerce operator (ECO)-According to section 2(45) means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce.
- E-Commerce seller-Means any person who is doing the business by its own website.
- E-Commerce Vendor-Who supplies goods to E-Commerce operator.
With respect to ECO-
- ECO is required to obtain compulsory registration irrespective of any limit, as the threshold limit is not applicable to such e-commerce operator.
- Also a person who is required to pay taxes under section 9(5) is also required to obtain registration irrespective of any limit.
With respect to E-Commerce Vendor- Persons who supply goods or services or both to E-Commerce operator then he is required to obtain registration only if the vendor’s turnover exceeds the threshold limit.
Benefit of Composition Scheme-
A person who is supplying the goods through E-commerce operator & who is required to collect TCS under section 52 is not able to take the benefit of this scheme.
Provision of Tax Collected at Source-
According to section 52, every ECO, other than agent, shall be liable to collect the TCS at such rate not exceeding 1% of CGST and SGST respectively of NET taxable supplies made through it by other suppliers where the consideration with respect to such supplies is to be collected by the operator.
The amount so collected by the ECO is to be deposited to the Government and ECO is required to furnish a statement in Form GSTR-8, electronically within 10 days after the end of month in which amount is collected.
Who is a specified person u/s 9(5)
The Government has notified following categories of services, the tax on intra-State/ inter-state supplies shall be paid by the ECO –
- a) Transportation of passengers by a radio-taxi, motorcab, maxicab and motor cycle
- b) Providing accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes
- c) Services by way of house-keeping, such as plumbing, carpentering etc
Note: These above mentioned person are required to take compulsory registration without any threshold limit.
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