Short Summary Related to E-Commerce Operators
E-Commerce
Electronic commerce means the supply of goods and service or both including digital product or electronic network. (Defined in Sec.2(44) of the CGST Act, 2017).
E-Commerce Operator (E.C.O)
ECO means any person who owns, electronic facility or operator or manages digital or platform for electronic commerce. (Defined in Sec.2(45) of the CGST Act, 2017)
1. Threshold Exemption is not available to e-commerce operators. They are liable to be registered irrespective of the value of supply made by theme. (Sec. 24(x/ix) of the CGST Act,2017)
2. The E-Commerce Operator is required to collect an amount at the rate of 1% (.5% CGST+.5% SGST) of the net value of taxable supplies made thought. The amount so collected is called as TCS (Tax Collection at Source). (Sec. 52(1) of the CGST Act,2017)
3. An E-Commerce company is required to collect tax only on the Net Value of taxable supplies.
Net Value of taxable supplies the aggregate value of taxable supplies of goods or services or both, other than the service on which entire tax is payable by the ECO, made during any month by all registered person through such operators reduced by the aggregate value of taxable supplies returned to the suppliers during the said month. (Sec. 52(1) of the CGST Act,2017)
4. ECO should make the collection during the month in which the consideration amount is collected from the recipient.
5. The amount collected by the operator is to be paid to the Govt. within 10 days after the end the month in which amount was so collected. (Sec.52(3) of the CGST Act,2017)
6. Online travel agent providing services through digital or electronic platform will fall under the category of ECOs liable to deduct TCS (Sec. 52 of the CGST Act,2017)
On GST Portal
3.1.1. Details of supplies notified under sub-section (5) of section 9 of the Central Goods and Services Tax Act, 2017 and corresponding provisions in Integrated Goods and Services Tax/Union Territory Goods and Services Tax/State Goods and Services Tax Acts.
Table
|
Description |
Total Taxable Value | Integrated Tax (IGST) | Central Tax (CGST) | State/UT Tax (SGST) | Cess |
| 1 | 2 | 3 | 4 | 5 | 6 |
| (i) Taxable supplies on which electronic commerce operator pays tax under Sub-section (5) of Section 9 [To be furnished by the electronic commerce operator] | XXXX | XXXX | XXXX | XXXX | XXXX |
| (ii) Taxable supplies made by the registered person through electronic commerce operator, on which electronic commerce operator is required to pay tax under Sub-section (5) of Section 9 [To be furnished by the registered person making supplies through electronic commerce operator] | XXXX |
Author Bio
Not every person owing operating an electronic platform would be considered as an ECO. It was further clarified that only electronic platforms using their platforms to supply goods of third party are considered as ECO. If a person is owning and operating electronic platform but supplying only own goods he would not be considered as an ECO.