CBIC notifies special procedure to be followed by the electronic commerce operators in respect of supplies of goods through them by unregistered persons vide Notification No. 37/2023- Central Tax, Dated: 04th August, 2023.
Ministry of Finance, through the Central Board of Indirect Taxes and Customs, has issued Notification No. 37/2023 detailing special procedures that eCommerce operators need to adhere to concerning supplies of goods by unregistered persons.
As per the notification, eCommerce operators must follow specific procedures for goods supplied through them by unregistered persons. Operators can only allow supplies if the person has an enrolment number on the common portal. They cannot permit inter-State supply of goods and are not required to collect tax at source for such supplies. Operators must also furnish supply details in FORM GSTR-8 on the common portal. When multiple operators are involved in a single supply, the operator releasing the final payment is considered responsible.
This new regulation, effective from October 1, 2023, introduces additional requirements for eCommerce operators regarding supplies by unregistered persons
Ministry of Finance
(Department of Revenue)
Central Board of Indirect Taxes and Customs
Notification No. 37/2023- Central Tax, Dated: 04th August, 2023
G.S.R. 589(E).— In exercise of the powers conferred by section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act), the Central Government, on the recommendations of the Council, hereby notifies the electronic commerce operator who is required to collect tax at source under section 52 as the class of persons who shall follow the following special procedure in respect of supply of goods made through it by the persons exempted from obtaining registration (hereinafter referred to as the said person) in accordance with the notification issued under sub-section (2) of section 23 vide notification number 34/2023- Central Tax, dated the 31st July, 2023, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 577(E), dated the 31st July, 2023, namely: —
(i) the electronic commerce operator shall allow the supply of goods through it by the said person only if enrolment number has been allotted on the common portal to the said person;
(ii) the electronic commerce operator shall not allow any inter-State supply of goods through it by the said person;
(iii) the electronic commerce operator shall not collect tax at source under sub-section (1) of section 52 in respect of supply of goods made through it by the said person; and
(iv) the electronic commerce operator shall furnish the details of supplies of goods made through it by the said person in the statement in FORM GSTR-8 electronically on the common portal.
2. Where multiple electronic commerce operators are involved in a single supply of goods through electronic commerce operator platform, “the electronic commerce operator” shall mean the electronic commerce operator who finally releases the payment to the said person for the said supply made by the said person through him.
3. This notification shall come into force with effect from the 1st day of October, 2023.
[F. No. CBIC-20006/20/2023-GST]
ALOK KUMAR, Director
