Case Law Details
In re Balat Enterprises Private Limited (GST AAR Tamilnadu)
In the case of Re Balat Enterprises Private Limited, the Authority for Advance Ruling (AAR) of Tamil Nadu deliberated on whether the applicant meets the criteria for an e-commerce operator as defined in Section 2(45) of the CGST Act, 2017, and whether the supplies facilitated through their mobile-based digital platform “Vyayshay” fall under the scope of Section 9(5) of the CGST Act, 2017 with respect to Notification No. 17/2017 dated 28.06.2017.
The applicant sought an advance ruling on these matters, asserting that they merely provide a platform for small business owners to connect with customers across various sectors, with charges collected based on app usage, and they do not intervene in the supply process between the partners and customers.
The AAR meticulously examined the definitions of e-commerce and e-commerce operator and concluded that the applicant qualifies as an e-commerce operator since they own and manage the digital platform “Vyayshay,” through which services are supplied. The platform facilitates the registration of service providers and users, booking of services, confirmation, and feedback collection, thus enabling end-to-end service provision.
Regarding whether the supplies made through the platform fall under Section 9(5) of the CGST Act, 2017, the applicant contended that since they do not initiate, carry out, or conclude the service provision, they should not be liable under this section. However, the AAR emphasized that the language of Section 9(5) mandates e-commerce operators as deemed suppliers for specified services supplied through their platform.
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