In re DSoft Innovations LLP (GST AAR Gujarat)
Gujarat GST AAR ruled that Freedeem App is an electronic commerce operator under GST and must obtain mandatory registration. RCM does not apply for restaurant services through the platform. GST authority clarified that voucher transactions via Freedeem App are neither supply of goods nor services, but TCS collection under section 52 is required. Gujarat GST AAR confirms electronic commerce registration, TCS obligations, and exemption from RCM for restaurant services for Freedeem App. All state-wise registrations are mandatory. AAR rules vouchers are actionable claims, not supplies; RCM under section 9(5) does not apply, but TCS collection is mandatory. GST AAR clarifies GST compliance for e-commerce platforms, covering registration, TCS collection, and scope of reverse charge liability under section 9(5).
The Gujarat Authority for Advance Ruling (AAR) has delivered its decision in the case of M/s DSoft Innovations LLP, which operates the “Freedeem” mobile application that facilitates local businesses in offering discounts and deals to customers. The applicant sought clarity on whether it qualifies as an “e-commerce operator” under the Central Goods & Services Tax Act, 2017 (CGST Act) and its related obligations regarding tax collection at source (TCS) and liability under reverse charge mechanism (RCM) for services supplied through the platform.
