GST on E-commerce operators

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GST

GST (Goods and Service Tax) has been imposed on supply of goods and services.

GST on E-commerce operators remains the same as any other mode of supplies

This article is helpful to those who want to start selling on e-commerce platforms out there and understand the GST requirements.

According to Section 2(44) of CGST Act, 2017 E-commerce means supply of goods or services or both through online mode i.e. using internet.

According to Section 2(45) of CGST Act, 2017 E-commerce operation means any person who owns and manages the online business either directly or indirectly i.e. using internet.

GST Registration for E-commerce Operators

All the persons who manage/own business online are required to obtain GST registration irrespective of the value of supply made by them. In case of services notified u/s 9(5) of CGST Act, 2017 the e-commerce operator is liable to pay tax, on behalf of the suppliers. If such services are supplied through its platform, all the provisions of the Act shall apply to such e-commerce operator as if he is the supplier for this purpose. The process of Registration is as follows:

  • The concerned E-commerce operator is required fill the E- application form REG-07 on the common portal i.e. https://www.gst.gov.in/.
  • The application to be submitted should be duly signed or verified through EVC (Electronic Verification Code).
  • Submit the form, either directly by logging in to the portal or from the facilitation centres notified by the Commissioner.
  • The authorized officer will grant registration after verification and will proceed to  issue a certificate of registration in FORM GST REG-06 within 3 working days from the date of submission of application.

Cancellation of Registration

If the concerned person is not liable to deduct TDS or TCS anymore and it comes to the knowledge of the officer than  where the total value of such supply, under an individual contract, exceeds Rs. 2,50,000.

TCS for E-commerce Operators

E-commerce operator is liable to collect tax (Tax Collected at Source – TCS) from the supplier. The Tax Collected at source acts as a mechanism, wherein, the e-commerce operator collects the part of the tax when the supplier supplies the required goods or service through its portal where the total value of such supply, under an individual contract, exceeds Rs. 2,50,000.. TCS is deducted at the rate of 1% on the net value of the goods or services supplied through the e-commerce operator. The E-commerce operator should collect tax in respect of the supplies by such operator from customers and transfer it to actual supplier. Further, operator should remit to government before 10 days after the end of the month from the date on which the invoice is created.

GST Return Filing for E-Commerce

The return of GST is to be filed by the E-commerce in Form GSTR – 8 every month within 10 days after the end of such month. Under this return, the details of outward supplies of goods and services made by sellers and amount of TCS collected are to be reflected. E-commerce operator is also required to file an annual statement by 31st day December following the end of the financial year in which the tax collected. The amount of TCS which is paid by the e-commerce operator to the government will be reflected in the Form GSTR-2 of the actual registered supplier (on whose account such collection has been made) on the basis of the statement filed by the e-commerce operator. The Government has notified following categories of services, tax on inter-state supplies/intra-state supplies shall be paid by ECO-

S. No.Description of supply of ServiceSupplier of servicePerson Liable to Pay GSTNotification No.
1Transportation of passengers by a radio-taxi, motorcab, maxicab and motor cycleAny personE-commerce operator Notification No. 17/2017-Central Tax (Rate) dt 28th June, 2017 Corresponding IGST Notification No. 14/2017-Integrated Tax (Rate) dt 28th June, 2017
2Providing accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes Any person except who is liable for registration under sub- section (1) of section 22 of the said CGST ActE-commerce operator –do– 
3Services by way of house- keeping, such as plumbing, carpentering etc Any person except who is liable for registration under sub- section (1) of section 22 of the said CGST ActE-commerce operator Inserted vide Notification No. 23/2017-Central Tax(Rate) dated 22nd Aug, 2017Corresponding Notification No. 23/2017-Integrated Tax (Rate) dated 22nd Aug, 2017

Frequently Asked Questions

  1. Is GST required for e commerce?

Ans. Yes, it is mandatory for all the e commerce operators irrespective of sales turnover.

2. Can I sell online without GST?

Ans. There is a scheme called GST Composition Scheme. … In such platforms, you can sell online without GST only if you sell goods that are exempted

3. Who pays GST seller or buyer?

Ans. GST is paid by consumers but it is remitted by the businesses who sell goods or services.

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