GST on E- Commerce Operator (ECO) Covered under Section 52 of the CGST Act

 

Generally, ECOS fall under two categories.

Type 1: Section 52 of the CGST Act

  • Taxable supplies of goods and/or services other than specified services made through an ECO.
  • Wherein consideration is to be collected by an ECO on behalf of the actual supplier.

 

Type 2: - Section 9(5) of the CGST Act

  • ‘Specified services’ supplied through an ECO as notified under GST:
    • Restaurant services (including cloud kitchens);
    • Housekeeping services such as plumbing, carpentry, and so forth
    • Accommodation services such as lodging at hotels, inns, guest homes, clubs, campgrounds, or other commercial establishments intended for residential or lodging purposes
    • Passenger transportation services by motor vehicle/s, passenger transportation by radio-taxi, motor cab, maxi cab, and motor bike


Here we Discuss about Type 1: Section 52 of the CGST Act


GST Registration: -

E-Commerce Operator

 

1.     Required to take two Registration

 

A.    TCS Registration: -

Section 24 of the CGST Act - GST REG-07. All such e-commerce operators are mandatory required to obtain GST registration as well as registered for TCS (Tax collection at source).

 

B.    Normal Registration

 

2.     Threshold Limit of Rs. 10 lacs for the registration Not applicable.

 

3.     An e-commerce company must register itself in GST in every state it supplies goods or services.

 

Supplier

 

1.     S.24 (iX) every person supplying goods through an ecommerce operator shall be mandatorily required to register irrespective of the value of supply made by him. 

 

Exemption

 

2.    Service Provider

If their aggregate turnover is less than Rs.20 lakh (assuming they do not make inter-state supplies)

Notification No. 65/2017 – Central Tax. 15th November, 2017 

 

 

3.    Goods Provider

CBIC notifies waiving of the mandatory GST Registration Requirement for persons supplying goods through Electronic Commerce Operator

 

Certain conditions are required to be fulfilled by supplier and ECO both
Notification No. 34/2023- Central Tax dt 31st July,2023

Notification No. 37/2023- Central Tax, Dt 04th August, 2023

 

 

GST Returns :-

A.    TCS Return:-

GSTR- 8 : Due date 10th of the following month

Annual Statement in Form GSTR – 9B. before 31st December

 

B.    Normal Return for Commission Income

 GSTR-1 :- Due date 11th of the following month

 GSTR-3B:-  Due date 20th of the following month

 GSTR-9 :- Due date 31st December ( If Turnover > 2 Cr)

 GSTR-9C :- Due date 31st December ( If Turnover > 5 Cr)

 

GST Rate

A.    TCS

        1 % of net value of taxable supplies.

 

        On Net value of Taxable Supplies (Net of Sales Return/ Debit Note/ Credit Note)

 

        If Supplier of service/Goods is exempted from GST registration

NOT required to collect TCS on supply of services being made by such suppliers through their portal

 

        In case of Exempt Supplies – No TCS applicable.

 

B.    Commission Income: - 18% on Commission Income

 

Time for Collect & Report TCS

        Transaction happens on Feb -24 & Payment received + TCS deduct on Mar-24, Report the same in Feb-24 Return.


FAQ Issued by Government