Case Law Details
In re Juspay Technologies Pvt. Ltd. (GST AAR Karnataka)
Introduction: In the case of Juspay Technologies Pvt. Ltd., a GST Advance Ruling was sought to determine the company’s status as an e-commerce operator and its liability for GST. The ruling addresses critical questions regarding the definition of an e-commerce operator and the nature of the supply, particularly in relation to Section 9(5) of the CGST Act, 2017, and Notification No. 17/2017 dated 28.06.2017.
Detailed Analysis:
Definition of E-commerce Operator: The first question addressed whether Juspay Technologies qualifies as an e-commerce operator. According to Section 2(45) of the CGST Act, an e-commerce operator is defined as any person who owns, operates, or manages a digital or electronic facility or platform for electronic commerce, which includes the supply of goods or services over digital or electronic networks. The ruling confirms that Juspay Technologies, as the owner of the “Namma Yatri” APP, falls within this definition.
Nature of Supply: The second question examined the nature of supply in accordance with Section 9(5) of the CGST Act. This section allows the government to specify categories of services for which the tax liability falls upon the e-commerce operator if the services are supplied through their platform. Notification No. 17/2017-Central Tax (Rate) dated 28.06.2017 specified that the tax liability for services related to transportation of passengers by vehicles like radio-taxis, motor cabs, etc., would be on the e-commerce operator. However, the crucial point of contention was whether the services provided through the “Namma Yatri” APP were supplied through Juspay Technologies.
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